Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 24, 2022 | Jun. 30, 2021 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-51821 | ||
Entity Registrant Name | Lake Shore Bancorp, Inc. | ||
Entity Incorporation, State or Country Code | X1 | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 24,278,690 | ||
Entity Common Stock, Shares Outstanding | 5,696,987 | ||
Documents Incorporated by Reference | Part of 10-Kwhere incorporatedPortions of the registrant’s Proxy Statement for the 2022 Annual Meeting of Stockholders III | ||
Auditor Name | Baker Tilly US, LLP | ||
Auditor Location | Pittsburgh, Pennsylvania | ||
Auditor Firm ID | 23 | ||
Entity Central Index Key | 0001341318 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 37,533 | $ 7,867 |
Interest earning deposits | 30,052 | 35,108 |
Cash and Cash Equivalents | 67,585 | 42,975 |
Securities | 88,816 | 79,285 |
Federal Home Loan Bank stock, at cost | 1,606 | 1,905 |
Loans receivable, net of allowance for loan losses 2021 $6,118; 2020 $5,857 | 517,206 | 524,143 |
Premises and equipment, net | 8,736 | 8,974 |
Accrued interest receivable | 2,483 | 2,987 |
Bank owned life insurance | 22,877 | 22,461 |
Other assets | 4,430 | 3,470 |
Total Assets | 713,739 | 686,200 |
Liabilities | ||
Deposits: Interest bearing | 482,508 | 468,313 |
Deposits: Non-interest bearing | 110,676 | 91,946 |
Total Deposits | 593,184 | 560,259 |
Long-term debt | 21,950 | 29,750 |
Advances from borrowers for taxes and insurance | 3,198 | 3,183 |
Other liabilities | 7,431 | 7,084 |
Total Liabilities | 625,763 | 600,276 |
Stockholders' Equity | ||
Common stock, $0.01 par value per share, 25,000,000 shares authorized; 6,836,514 shares issued and 5,692,410 shares outstanding at December 31, 2021 and 6,836,514 shares issued and 5,823,786 shares outstanding at December 31, 2020 | 68 | 68 |
Additional paid-in capital | 31,350 | 31,201 |
Treasury stock, at cost (1,144,104 shares at December 31, 2021 and 1,012,728 shares at December 31, 2020) | (13,660) | (11,584) |
Unearned shares held by ESOP | (1,194) | (1,279) |
Unearned shares held by compensation plans | (157) | (118) |
Retained earnings | 70,591 | 65,488 |
Accumulated other comprehensive income | 978 | 2,148 |
Total Stockholders' Equity | 87,976 | 85,924 |
Total Liabilities and Stockholders' Equity | $ 713,739 | $ 686,200 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Statements of Financial Condition [Abstract] | ||
Allowance for loan losses | $ 6,118 | $ 5,857 |
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 | 6,836,514 |
Common Stock, Shares Outstanding | 5,692,410 | 5,823,786 |
Treasury Stock, Shares | 1,144,104 | 1,012,728 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Income | ||
Loans, including fees | $ 22,752 | $ 22,069 |
Investment securities, taxable | 735 | 971 |
Investment securities, tax-exempt | 1,137 | 1,192 |
Other | 35 | 104 |
Total Interest Income | 24,659 | 24,336 |
Interest Expense | ||
Deposits | 2,094 | 3,668 |
Long-term debt | 508 | 668 |
Other | 63 | 68 |
Total Interest Expense | 2,665 | 4,404 |
Net Interest Income | 21,994 | 19,932 |
Provision for Loan Losses | 650 | 1,625 |
Net Interest Income after Provision for Loan Losses | 21,344 | 18,307 |
Non-Interest Income | ||
Service charges and fees | 1,049 | 878 |
Debit card fees | 873 | 763 |
Earnings on bank owned life insurance | 416 | 492 |
Unrealized loss on equity securities | (33) | (15) |
Unrealized gain (loss) on interest rate swap | 199 | (132) |
Recovery on previously impaired investment securities | 59 | 73 |
Net gain on sale of loans | 547 | 844 |
Other | 78 | 89 |
Total Non-Interest Income | 3,188 | 2,992 |
Non-Interest Expense | ||
Salaries and employee benefits | 8,999 | 8,635 |
Occupancy and equipment | 2,837 | 2,569 |
Data processing | 1,352 | 1,478 |
Professional services | 1,560 | 968 |
Advertising | 602 | 671 |
Postage and supplies | 304 | 277 |
FDIC insurance | 183 | 124 |
Other | 1,220 | 1,195 |
Total Non-Interest Expense | 17,057 | 15,917 |
Income before Income Taxes | 7,475 | 5,382 |
Income Tax Expense | 1,288 | 824 |
Net Income | $ 6,187 | $ 4,558 |
Basic and diluted earnings per common share | $ 1.05 | $ 0.77 |
Dividends declared per share | $ 0.54 | $ 0.49 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 6,187 | $ 4,558 |
Other Comprehensive (Loss) Income, net of tax benefit (expense): | ||
Unrealized holding (losses) gains on securities, net of tax benefit (expense) | (1,122) | 875 |
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income, net of tax expense | (48) | (58) |
Total Other Comprehensive (Loss) Income | (1,170) | 817 |
Total Comprehensive Income | $ 5,017 | $ 5,375 |
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 [Member] | Total |
Beginning Balance at Dec. 31, 2019 | $ 68 | $ 31,078 | $ (10,184) | $ (1,364) | $ (39) | $ 61,950 | $ 1,331 | $ 82,840 |
Net income | 4,558 | 4,558 | ||||||
Other comprehensive income (loss), net of tax expense (benefit) | 817 | 817 | ||||||
ESOP shares earned | 17 | 85 | 102 | |||||
Stock based compensation | 45 | 45 | ||||||
Compensation plan shares granted | 196 | (196) | ||||||
Compensation plan shares forfeited | (3) | 3 | ||||||
Compensation plan shares earned | 61 | 114 | 175 | |||||
Purchase of treasury stock, at cost | (1,593) | (1,593) | ||||||
Cash dividends declared | (1,020) | (1,020) | ||||||
Ending Balance at Dec. 31, 2020 | 68 | 31,201 | (11,584) | (1,279) | (118) | 65,488 | 2,148 | 85,924 |
Net income | 6,187 | 6,187 | ||||||
Other comprehensive income (loss), net of tax expense (benefit) | (1,170) | (1,170) | ||||||
ESOP shares earned | 32 | 85 | 117 | |||||
Stock based compensation | 36 | 36 | ||||||
Compensation plan shares granted | 196 | (196) | ||||||
Compensation plan shares forfeited | (17) | 17 | ||||||
Compensation plan shares earned | 81 | 140 | 221 | |||||
Purchase of treasury stock, at cost | (2,255) | (2,255) | ||||||
Cash dividends declared | (1,084) | (1,084) | ||||||
Ending Balance at Dec. 31, 2021 | $ 68 | $ 31,350 | $ (13,660) | $ (1,194) | $ (157) | $ 70,591 | $ 978 | $ 87,976 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Stockholders' Equity [Abstract] | ||
Other comprehensive (loss) income, tax expense (benefit) | $ 311 | $ 218 |
ESOP, shares earned | 7,935 | 7,935 |
Compensation plan shares granted | 20,958 | 20,830 |
Compensation plan shares forfeited | 1,792 | 332 |
Compensation plan shares earned | 14,448 | 11,386 |
Purchase of treasury stock, shares | 150,542 | 121,051 |
Cash dividends declared, value per share | $ 0.54 | $ 0.49 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 6,187 | $ 4,558 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of investment securities | 157 | 59 |
Net amortization of deferred loan costs | 509 | 566 |
Provision for loan losses | 650 | 1,625 |
Recovery on previously impaired investment securities | (59) | (73) |
Unrealized loss on equity securities | 33 | 15 |
Unrealized (gain) loss on interest rate swap | (199) | 132 |
Originations of loans held for sale | (13,264) | (19,086) |
Proceeds from sales of loans held for sale | 13,590 | 19,930 |
Gain on sale of loans held for sale | (326) | (844) |
Depreciation and amortization | 865 | 840 |
Deferred income tax expense (benefit) | 217 | (492) |
Increase in bank owned life insurance, net | (416) | (492) |
ESOP shares committed to be released | 117 | 102 |
Stock based compensation expense | 257 | 220 |
Decrease (increase) in accrued interest receivable | 504 | (834) |
Increase in other assets | (542) | (1,020) |
Writedowns of foreclosed real estate | 8 | 19 |
Gains from sale of foreclosed real estate | (24) | (36) |
Decrease in other liabilities | 287 | 414 |
Net Cash Provided by Operating Activities | 8,551 | 5,603 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Activity in debt securities: Maturities, prepayments and calls | 18,822 | 20,912 |
Activity in debt securities: Purchases | (29,965) | (27,962) |
Purchases of Federal Home Loan Bank Stock | (54) | (93) |
Redemptions of Federal Home Loan Bank Stock | 353 | 243 |
Loan origination and principal collections, net | 5,558 | (55,518) |
Proceeds from sale of foreclosed real estate | 171 | 680 |
Additions to premises and equipment | (627) | (399) |
Net Cash Used in Investing Activities | (5,742) | (62,137) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 32,925 | 76,783 |
Net increase (decrease) in advances from borrowers for taxes and insurance | 15 | (50) |
Proceeds from issuance of long-term debt | 1,200 | |
Repayment of long-term debt | (7,800) | (6,100) |
Purchase of treasury stock | (2,255) | (1,593) |
Cash dividends paid | (1,084) | (1,020) |
Net Cash Provided by Financing Activities | 21,801 | 69,220 |
Net Increase in Cash and Cash Equivalents | 24,610 | 12,686 |
CASH AND CASH EQUIVALENTS - BEGINNING | 42,975 | 30,289 |
CASH AND CASH EQUIVALENTS - ENDING | 67,585 | 42,975 |
SUPPLEMENTARY CASH FLOWS INFORMATION | ||
Interest paid | 2,680 | 4,413 |
Income taxes paid | 1,350 | $ 1,101 |
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Foreclosed real estate acquired in settlement of loans | $ 258 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Nature of Operations [Abstract] | |
Organization and Nature of Operations | Note–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 63.9% of the Company’s outstanding common stock as of December 31, 2021. 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 9, 2022 of its members to vote on a proposal to authorize the MHC to waive its right to receive dividends aggregating up to $0.68 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 March 10, 2022, 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 9, 2023. 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, 2021, the MHC elected to waive approximately $16.1 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, 2021 | |
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 EstimatesTo 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 EquivalentsCash 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 SecuritiesAll 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 earnings.Federal Home Loan Bank StockFederal 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. The investment is periodically evaluated for impairment based on the ultimate recoverability of cost.Loans ReceivableLoans 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 LossesThe 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 EquipmentLand 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. LeasesThe Company determines if an arrangement is a lease at the contract’s inception. 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 leases are recorded under a right of use (“ROU”) model that requires a lessee to record (for all operating leases with terms longer than 12 months) an asset representing its right to use (“ROU”) the underlying asset and a lease liability. The ROU asset and lease liability are included in other assets and other liabilities, respectively, on the consolidated statements of financial condition. Finance leases are recorded in premises and equipment on the consolidated statements of financial condition. 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.Mortgage Servicing Rights Certain low-yielding, fixed rate residential, one to- four- family loans are sold on the secondary market in order to manage interest rate risk. The individual loans are normally sold to an investor immediately after loan closing. The Company retains servicing rights on these loans. Originated mortgage servicing rights are recorded at their fair value at the time of transfer of the related loans and are amortized in proportion to, and over the period of, estimated net servicing income or loss. The carrying value of the originated mortgage servicing rights are periodically evaluated for impairment. The mortgage servicing rights asset is recorded in other assets on the consolidated statements of financial condition. The amortization of the mortgage servicing asset is netted against service fee income and recorded in service charges and fees on the consolidated statements of income. Transfers of Financial AssetsTransfers 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 EstateForeclosed 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 $123,000 and $58,000 at December 31, 2021 and 2020, 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, 2021 and 2020 were $171,000 and $680,000, respectively. This resulted in a net gain on sale of $24,000 and $36,000 for the years ended December 31, 2021 and 2020, respectively, and was included as a component of other non-interest expenses in the consolidated statements of income. Bank Owned Life InsuranceThe 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 CostsThe Company follows the policy of charging the costs of advertising to expense as incurred. Total advertising expense for the years ended December 31, 2021 and 2020 was $602,000 and $671,000, respectively.Income TaxesThe 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. 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 PlansAt December 31, 2021, the Company had stock-based employee and non-employee compensation plans, which are described more fully in Note 13. 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. When restricted shares are granted, the shares are released from treasury stock. 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 ShareBasic 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 InstrumentsIn 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 IncomeAccounting 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 BanksThe Federal Reserve Board regulations required savings banks to maintain noninterest-earning reserves against their transaction accounts, such as negotiable order of withdrawal and regular checking accounts. In March 2020, due to a change in its approach to monetary policy, the Board of Governors of the Federal Reserve System announced an interim rule to amend Regulation D requirements and reduce reserve requirement ratios to zero. The Federal Reserve Board finalized the interim rule in December 2020 and has indicated that it has no plans to re-impose reserve requirements but may do so in the future if conditions warrant. Subsequent EventsThe Company evaluated events occurring subsequent to December 31, 2021 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.Accounting Standards to be Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. The Company is required to adopt this guidance on January 1, 2023. ReclassificationsCertain amounts in the 2020 consolidated financial statements have been reclassified to conform with the 2021 presentation format. These reclassifications had no effect on net income. |
COVID-19
COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
COVID-19 [Abstract] | |
COVID-19 | Note 3 – COVID-19 Federal, state and local governments have taken and continue to take actions in response to the COVID-19 pandemic to mitigate the effect on public health and to address the economic impact from the virus. The effects of COVID-19, and its related variants, such as Omicron and Delta, could, among other risks, result in an increased risk of the Bank’s borrowers requesting loan deferrals, modifications to loan terms, or other borrower accommodations. In addition, there is an increased risk of the pandemic having a material impact on the financial condition of the Bank’s customers, potentially impacting their ability to make loan payments as scheduled, resulting in increased delinquencies and related loan losses, which would impact the Company’s income as a result of increased provisions for loan losses. The pandemic may also result in the demand for loans decreasing or negatively impact the Company’s ability to access capital. These situations could have a material adverse impact on the Company’s and its customers’ business, financial conditions and results of operation. In March 2020, the Coronavirus Aid, Relief and Economic Security Act of 2020 (the “CARES Act”), in addition to providing financial assistance to both businesses and consumers, created a forbearance program for federally-backed mortgage loans and protected borrowers from negative credit reporting due to loan accommodations related to the national emergency. This legislation allowed the Company to provide loan payment deferrals to those borrowers that had incurred a significant economic impact as a result of the pandemic and allowed the Company to provide this relief without accounting for such loans as past due or as a TDR. Through December 31, 2021, the Bank had applied this guidance and provided loan deferrals of principal and interest payments for 90 days, and up to 180 days in some instances, with the loan repayment period extended by the deferral period. During the year ended December 31, 2020, the Bank had provided loan deferrals on 219 individual loans with aggregate principal balances of $103.1 million, or 19.6% of the Bank’s loan portfolio. There were no loan deferrals granted during the year ended December 31, 2021. As of December 31, 2021, all loan deferrals had expired and the loans had returned to their contractual payments terms. New York State also passed legislation which prevented residential evictions, foreclosure proceedings, tax lien sales or foreclosures, credit discrimination and negative credit reporting related to the COVID-19 pandemic. These moratoriums were originally going to last until May 1, 2021, but were extended until January 15, 2022 by New York State legislation. The New York state moratorium expired in January 2022. The Bank was a participating lender in the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the PPP requirements. The loans have a fixed rate of 1.00% and a term of two years (if loan was made prior to June 5, 2020) or five years (for loans originated after June 5, 2020), if not forgiven in whole or part. Payments are deferred until either the date on which the SBA remits the amount of forgiveness proceeds to the lender or the date that is 10 months after the last day of the covered period, if the borrower does not apply for forgiveness within that 10 month period. Fees generated based on the origination of PPP loans are deferred and amortized into interest income over the contractual period of 24 months or 60 months, as applicable. Upon SBA forgiveness, unamortized fees are recognized into interest income. In 2020: The Bank originated 252 PPP loans totaling $26.9 million in principal.$8.8 million of PPP loans originated in 2020, were forgiven or paid off in 2020;Total net fees of $113,000 were recognized. In 2021: The Bank originated 33 PPP loans totaling $11.4 million in principal.$18.1 million of PPP loans originated in 2020, were forgiven or paid off in 2021;$6.8 million of PPP loans originated in 2021, were forgiven or paid off in 2021;Total net fees of $232,000 were recognized. As of December 31, 2021, nine PPP loans originated during 2021 totaling $4.6 million in principal remained outstanding and total net fees of $90,000 remain unrecognized. The Company continues to evaluate the disruption caused by the pandemic and the impact of the federal and state regulations that have been enacted due to the pandemic, as these events may have a material adverse impact on the Company’s future results, operations, financial position, capital and liquidity. At this time the Company cannot quantify the potential impact of the pandemic on future operations. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investment Securities [Abstract] | |
Investment Securities | Note 4 – Investment SecuritiesThe amortized cost and fair value of securities are as follows: December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands)SECURITIES Debt Securities Available for Sale U.S. government agencies $ 2,009 $ 204 $ - $ 2,213 Municipal bonds 49,812 1,085 (141) 50,756 Mortgage-backed securities: Collateralized mortgage obligations-private label 14 1 - 15 Collateralized mortgage obligations-government sponsored entities 17,798 209 (193) 17,814 Government National Mortgage Association 76 7 - 83 Federal National Mortgage Association 10,773 53 (66) 10,760 Federal Home Loan Mortgage Corporation 7,068 87 (119) 7,036 Asset-backed securities-private label - 110 - 110 Asset-backed securities-government sponsored entities 9 1 - 10 Total Debt Securities Available for Sale $ 87,559 $ 1,757 $ (519) $ 88,797 Equity Securities 22 - (3) 19 Total Securities $ 87,581 $ 1,757 $ (522) $ 88,816 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands)SECURITIES Debt Securities Available for Sale U.S. government agencies $ 2,010 $ 327 $ - $ 2,337 Municipal bonds 43,466 1,430 (3) 44,893 Mortgage-backed securities: Collateralized mortgage obligations-private label 16 - - 16 Collateralized mortgage obligations-government sponsored entities 22,527 549 (25) 23,051 Government National Mortgage Association 116 11 - 127 Federal National Mortgage Association 4,209 130 - 4,339 Federal Home Loan Mortgage Corporation 4,143 152 (2) 4,293 Asset-backed securities-private label - 147 - 147 Asset-backed securities-government sponsored entities 27 3 - 30 Total Debt Securities Available for Sale $ 76,514 $ 2,749 $ (30) $ 79,233 Equity Securities 22 30 - 52 Total Securities $ 76,536 $ 2,779 $ (30) $ 79,285 Debt SecuritiesAll of our collateralized mortgage obligations are backed by one- to four-family residential mortgages. At December 31, 2021, twenty-nine municipal bonds with a cost of $10.6 million and fair value of $11.0 million were pledged under a collateral agreement with the Federal Reserve Bank (“FRB”) of New York for liquidity borrowing. At December 31, 2020, thirty-one municipal bonds with a cost of $10.8 million and fair value of $11.2 million were pledged with the FRB. In addition, at December 31, 2021, twenty municipal bonds with a cost of $6.0 million and fair value of $6.2 million were pledged as collateral for customer deposits in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2020, sixteen municipal bonds with a cost of $4.2 million and fair value of $4.4 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, 2021 Municipal bonds $ 9,601 (120) $ 857 $ (21) $ 10,458 $ (141)Mortgage-backed securities 21,141 (211) 3,083 (167) 24,224 (378) $ 30,742 $ (331) $ 3,940 $ (188) $ 34,682 $ (519) December 31, 2020 Municipal bonds $ 539 (3) $ - $ - $ 539 $ (3)Mortgage-backed securities 7,166 (26) 76 (1) 7,242 (27) $ 7,705 $ (29) $ 76 $ (1) $ 7,781 $ (30) The Company reviews all investment securities on an ongoing basis for the presence of OTTI with formal reviews performed quarterly. At December 31, 2021, the Company’s investment portfolio included forty-one securities in the “unrealized losses less than twelve months” category and five 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 following table presents a summary of the credit-related OTTI charges recognized as components of income: For The Years Ended December 31, 2021 2020 (Dollars in thousands)Beginning balance $ 221 $ 294 Additions: Credit loss not previously recognized - -Reductions: Losses realized during the period on OTTI previously recognized - -Receipt of cash flows on previously recorded OTTI (59) (73)Ending balance $ 162 $ 221 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, 2021 and 2020, the Company did not sell any available for sale debt securities. Scheduled contractual maturities of available for sale debt securities are as follows: Amortized Fair Cost Value (Dollars in thousands)December 31, 2021: Less than one year $ 220 $ 220 After one year through five years 3,877 3,894 After five years through ten years 9,948 10,235 After ten years 37,776 38,620 Mortgage-backed securities 35,729 35,708 Asset-backed securities 9 120 $ 87,559 $ 88,797 Equity Securities At December 31, 2021 and 2020, equity securities consisted of 22,368 shares of Federal Home Loan Mortgage Corporation (“FHLMC”) common stock. During the years ended December 31, 2021 and 2020, the Company recognized an unrealized loss of $33,000 and $15,000, 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, 2021 and 2020. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Loans Receivable [Abstract] | |
Loans Receivable | Note 5 - Loans ReceivableLoans receivable, net consists of the following: December 31, 2021 2020 (Dollars in thousands)Real Estate Loans: Residential, one- to four-family(1) $ 158,826 $ 150,660 Home equity 48,071 47,603 Commercial 266,525 257,321 Construction - commercial 21,824 28,923 495,246 484,507 Commercial 23,216 40,772 Consumer 1,317 1,353 Total Loans 519,779 526,632 Allowance for loan losses (6,118) (5,857)Net deferred loan costs 3,545 3,368 Loans Receivable, net $ 517,206 $ 524,143 (1)Includes one- to four-family construction loans. The Company participated in the SBA PPP program under the CARES Act during the years ended December 31, 2021 and 2020, respectively, as indicated in Note 3. As of December 31, 2021 and 2020 there were $4.6 million and $18.1 million, respectively, of PPP loans outstanding and recorded as commercial business loans. At December 31, 2021, there were $90,000 in loan fees remaining to be amortized on the outstanding balance of PPP loans. The Bank expects that the PPP loans will be forgiven by the SBA during the next six months upon which any unamortized deferred fees will be recognized as an adjustment to interest income. Residential real estate loans serviced for others by the Company totaled $44.6 million and $37.3 million at December 31, 2021 and 2020, respectively. At December 31, 2021, $114.3 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, 2021, the Company held concentrations of credit in the particular industries noted below: $119.0 million in investor-owned multifamily real estate loans, which equated to 130.3% of the Bank’s capital reserves; and$53.7 million in real estate loans on office properties, which equated to 58.8% of the Bank’s capital reserves; and$24.0 million in other real estate loans, which equated to 26.3% 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. At December 31, 2021 and 2020, loans to related parties including officers and directors were immaterial as a percentage of our loan portfolio. 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, 2021 | |
Allowance for Loan Losses [Abstract] | |
Allowance for Loan Losses | Note 6 - 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 following tables summarize the activity in the allowance for loan losses for the years ended December 31, 2021 and 2020 the distribution of the allowance for loan losses and loans receivable by loan portfolio class and impairment method as of December 31, 2021 and 2020: Real Estate Loans Other Loans One- to Four-Family(2) Home Equity Commercial Construction - Commercial Commercial Consumer Unallocated Total (Dollars in thousands)December 31, 2021 Allowance for Loan Losses: Balance – January 1, 2021 $ 346 $ 172 $ 4,052 $ 434 $ 676 $ 27 $ 150 $ 5,857 Charge-offs (12) - (427) - - (39) - (478) Recoveries 49 2 6 - 23 9 - 89 Provision (credit) - 37 746 (74) (168) 35 74 650 Balance – December 31, 2021 $ 383 $ 211 $ 4,377 $ 360 $ 531 $ 32 $ 224 $ 6,118 Ending balance: individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ -Ending balance: collectively evaluated for impairment $ 383 $ 211 $ 4,377 $ 360 $ 531 $ 32 $ 224 $ 6,118 Gross Loans Receivable (1): Ending balance $ 158,826 $ 48,071 $ 266,525 $ 21,824 $ 23,216 $ 1,317 $ - $ 519,779 Ending balance: individually evaluated for impairment $ 261 $ 24 $ 7,002 $ - $ - $ - $ - $ 7,287 Ending balance: collectively evaluated for impairment $ 158,565 $ 48,047 $ 259,523 $ 21,824 $ 23,216 $ 1,317 $ - $ 512,492 (1)Gross Loans Receivable does not include allowance for loan losses of $(6,118) or deferred loan costs of $3,545.(2)Includes one- to-family 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, 2020 Allowance for Loan Losses: Balance – January 1, 2020 $ 436 $ 129 $ 2,682 $ 388 $ 478 $ 26 $ 128 $ 4,267 Charge-offs (26) (6) - - (5) (42) - (79) Recoveries 23 2 1 - 4 14 - 44 Provision (credit) (87) 47 1,369 46 199 29 22 1,625 Balance – December 31, 2020 $ 346 $ 172 $ 4,052 $ 434 $ 676 $ 27 $ 150 $ 5,857 Ending balance: individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ -Ending balance: collectively evaluated for impairment $ 346 $ 172 $ 4,052 $ 434 $ 676 $ 27 $ 150 $ 5,857 Gross Loans Receivable (1): Ending Balance $ 150,660 $ 47,603 $ 257,321 $ 28,923 $ 40,772 $ 1,353 $ - $ 526,632 Ending balance: individually evaluated for impairment $ 238 $ 15 $ - $ - $ - $ - $ - $ 253 Ending balance: collectively evaluated for impairment $ 150,422 $ 47,588 $ 257,321 $ 28,923 $ 40,772 $ 1,353 $ - $ 526,379 (1)Gross Loans Receivable does not include allowance for loan losses of $(5,857) or deferred loan costs of $3,368.(2)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, 2021 December 31, 2021 (Dollars in thousands)With no related allowance recorded: Residential, one- to four-family $ 261 $ 261 $ - $ 269 $ 13 Home equity 24 24 - 25 1 Commercial real estate 7,002 7,002 - 8,786 219 Total impaired loans with no related allowance 7,287 7,287 - 9,080 233 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2020 December 31, 2020 (Dollars in thousands)With no related allowance recorded: Residential, one- to four-family $ 238 $ 238 $ - $ 306 $ 15 Home equity 15 15 - 16 1 Total impaired loans 253 253 - 322 16 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, 2021: Real Estate Loans: Residential, one- to four-family(1) $ 373 $ 758 $ 1,096 $ 2,227 $ 156,599 $ 158,826 $ 1,878 Home equity 265 146 532 943 47,128 48,071 636 Commercial(2) - - - - 266,525 266,525 7,002 Construction - commercial - - - - 21,824 21,824 -Other Loans: Commercial(3) - - - - 23,216 23,216 -Consumer 7 7 5 19 1,298 1,317 5 Total $ 645 $ 911 $ 1,633 $ 3,189 $ 516,590 $ 519,779 $ 9,521 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, 2020: Real Estate Loans: Residential, one- to four-family(1) $ 920 $ 552 $ 1,361 $ 2,833 $ 147,827 $ 150,660 $ 2,392 Home equity 173 64 645 882 46,721 47,603 706 Commercial - - - - 257,321 257,321 -Construction - commercial - - - - 28,923 28,923 -Other Loans: Commercial(3) - - - - 40,772 40,772 -Consumer 12 4 4 20 1,333 1,353 3 Total $ 1,105 $ 620 $ 2,010 $ 3,735 $ 522,897 $ 526,632 $ 3,101 (1)Includes one- to four-family construction loans.(2)Commercial Real Estate loans on non-accrual consists of one $7.0 million loan relationship which was moved to non-accrual status during the year ended December 31, 2021.(3)Includes $4.6 million and $18.1 million of PPP loans at December 31, 2021 and December 31, 2020, respectively, which do not require payments for a certain amount of time under the CARES Act and are 100% guaranteed by the SBA. 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. 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, 2021 and 2020: Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands)December 31, 2021 Real Estate Loans: Residential, one- to four-family(1) $156,931 $- $1,895 $- $- $158,826Home equity 47,167 - 904 - - 48,071Commercial(2) 252,391 6,682 7,452 - - 266,525Construction - commercial 21,824 - - - - 21,824Other Loans: Commercial(3) 18,076 1,742 3,398 - - 23,216Consumer 1,308 - 4 - 5 1,317 Total $497,697 $8,424 $13,653 $- $5 $519,779 Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands)December 31, 2020 Real Estate Loans: Residential, one- to four-family(1) $148,291 $- $2,369 $- $- $150,660Home equity 46,543 - 1,060 - - 47,603Commercial 242,527 14,202 592 - - 257,321Construction - commercial 28,923 - - - - 28,923Other Loans: Commercial(3) 35,507 1,022 4,243 - - 40,772Consumer 1,350 - 3 - - 1,353 Total $503,141 $15,224 $8,267 $- $- $526,632 (1)Includes one- to four-family construction loans.(2)The Substandard classification category for Commercial Real Estate loans includes one $7.0 million loan relationship that was deemed to be impaired during the year ended December 31, 2021. (3)The Pass/Performing category for Commercial Loans includes $4.6 million and $18.1 million of PPP loans at December 31, 2021 and December 31, 2020, respectively, which do not require payments for a certain amount of time under the CARES Act and are 100% guaranteed by SBA. 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, 2021 Real Estate Loans: Residential, one- to four-family 7 $261 1 $11 6 $250 - $ -Home equity 2 24 1 15 1 9 1 15Commercial 1 7,002 1 7,002 - - - - Total 10 $7,287 3 $7,028 7 $259 1 $15 At December 31, 2020 Real Estate Loans: Residential, one- to four-family 6 $238 1 $18 5 $220 - $ -Home equity 1 15 - - 1 15 - - Total 7 $253 1 $18 6 $235 - $- No additional loan commitments were outstanding to these borrowers at December 31, 2021 and 2020. The following table details the activity in loans which were first deemed to be TDRs during the years ended December 31, 2021 and 2020: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands)Real Estate Loans: Residential, one- to four-family 1 $ 38 $ 38 3 $ 150 $ 150 Home equity 1 10 10 1 16 16 Commercial 1 7,483 7,060 - - - Total 3 $ 7,531 $ 7,108 4 $ 166 $ 166 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 $123,000 and $58,000 at December 31, 2021 and 2020, 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 $1.7 million and $1.8 million at December 31, 2021 and December 31, 2020, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 7 - Premises and EquipmentPremises and equipment consist of the following: December 31, 2021 2020 (Dollars in thousands) Land $ 1,209 $ 1,209 Buildings and improvements 13,022 12,905 Furniture and equipment 7,201 6,698 21,432 20,812 Accumulated depreciation (12,696) (11,838) $ 8,736 $ 8,974 Depreciation and amortization of premises and equipment amounted to $865,000, and $840,000 for the years ended December 31, 2021 and 2020, respectively, and is included in occupancy and equipment expense in the accompanying consolidated statements of income. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits | Note 8 - DepositsDeposits consist of the following at the dates indicated: December 31, 2021 2020 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands)Demand deposits: Non-interest bearing $ 110,676 -% $ 91,946 -%Interest bearing 95,104 0.09 84,839 0.12 Money market accounts 175,886 0.20 158,505 0.26 Savings accounts 74,155 0.05 65,643 0.06 Time deposits 137,363 0.73 159,326 1.38 $ 593,184 0.25% $ 560,259 0.49% Scheduled maturities of time deposits at December 31, 2021 were as follows (dollars in thousands): 2022 $ 72,588 2023 18,802 2024 12,316 2025 10,939 2026 22,718 $ 137,363 Time deposit accounts with balances in excess of $250,000 amounted to $27.3 million and $28.2 million at December 31, 2021 and 2020, respectively. Interest expense on deposits was as follows: Years Ended December 31, 2021 2020 (Dollars in thousands) Interest bearing checking accounts $ 75 $ 105 Money market accounts 347 919 Savings accounts 38 35 Time deposits 1,634 2,609 $ 2,094 $ 3,668 At December 31, 2021 and 2020, deposits of directors, executive officers and their affiliates totaled $11.1 million and $9.1 million, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings [Abstract] | |
Borrowings | Note 9 - BorrowingsAt December 31, 2021 and 2020, the Company had no short-term borrowings. At December 31, 2021, 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, 2021 and 2020, our maximum lending value was $114.3 million and $109.8 million, respectively, and was collateralized by a pledge of certain, fixed-rate residential, one- to four-family loans. At December 31, 2021 and 2020, we had advances outstanding under this agreement of $22.0 million and $29.8 million, respectively. All of the advances outstanding at December 31, 2021 and 2020 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 $10.6 million and $10.8 million at December 31, 2021 and 2020, respectively. Fair value of the pledged securities was equal to $11.0 million and $11.2 million as of December 31, 2021 and 2020. There were no balances outstanding with the Federal Reserve Bank as of December 31, 2021 and 2020.The Company has also established lines of credit with other correspondent banks, currently totaling $42.0 million, of which $40.0 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, 2021 and 2020, there were no balances outstanding on these lines of credit. Long-term debt from the FHLBNY and related contractual maturities consisted of the following: At December 31, 2021 At December 31, 2020Maturity AmountWeighted Average Interest Rate Amount Weighted Average Interest Rate(Dollars in thousands) In one year $ 2,0002.18% $ 7,800 2.30%In two years 4,9502.31% 2,000 2.18%In three years 13,0001.73% 4,950 2.31%In four years 2,0001.94% 13,000 1.73%In five years --% 2,000 1.94% $ 21,950 1.92% $ 29,750 2.02% |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Lease Obligations [Abstract] | |
Lease Obligations | Note 10 - Lease ObligationsThe 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, 2021 and 2020, two of the Company’s branch offices were under an operating lease and the Company’s operating lease ROU assets were $511,000 and $645,000, respectively, and its lease liabilities were $534,000 and $675,000, respectively. Operating lease costs that were recorded in occupancy and equipment expense on the consolidated statements of income for the years ended December 31, 2021 and 2020 were $150,000. The table below summarizes information related to our lease liabilities at or for the years ended December 31, 2021 and 2020: For the Years Ended December 31, (in thousands, except for percent and period data) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 157 $ 145 Operating cash flows from finance leases 126 126 Weighted-average remaining lease term, operating leases, in years 3.6 4.6 Weighted-average discount rate – operating leases 2.61 % 2.61 % The Company has one long-term finance lease agreement for a branch location and the outstanding balance of the finance lease (included in other liabilities) at December 31, 2021 and 2020 was $623,000 and $686,000, respectively, with a weighted-average discount rate of 9.22%. The remaining term of this lease is 6.5 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 $673,000 and $631,000 at December 31, 2021 and 2020, respectively. The table below summarizes the maturity of remaining lease liabilities as of December 31, 2021: Operating Finance Leases Lease (Dollars in thousands)2022 $ 157 $ 1262023 157 1312024 157 1362025 90 1362026 - 1362027 and thereafter - 204Total Lease Payments $ 561 $ 869Less: Amounts representing interest (27) (246)Present value of lease liabilities $ 534 $ 623 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Note 11- Income TaxesThe 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. The provision for income tax expense consists of the following: Years Ended December 31, 2021 2020 (Dollars in thousands) Current: Federal $ 1,063 $ 1,311State 8 5Total Current 1,071 1,316 Deferred: Federal 217 492State - -Total Deferred 217 492 Total Income Tax Expense $ 1,288 $ 1,808 A reconciliation of the statutory federal income tax at a rate of 21% for the years ended December 31, 2021 and 2020 to the income tax expense included in the statements of income is as follows: Years Ended December 31, 2021 2020 Federal income tax at statutory rate 21.0% 21.0%State expense (benefit), net of federal (expense) benefit 8.1 (3.9) Tax-exempt interest income (3.1) (4.7) Deferred tax valuation allowance (8.0) 4.0 Life insurance income (1.2) (1.9) Other 0.4 0.8 Total Income Tax Expense 17.2% 15.3% The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: December 31, 2021 2020 (Dollars in thousands)Deferred tax assets: Allowance for loan losses $ 1,579 $ 1,508Deferred compensation 1,237 1,134Accrued expenses 145 170Impairment of equity investments 129 128Right of use liability 110 171Net operating loss ("NOL") 52 626Stock options granted 21 18Other 21 66Total Deferred Tax Assets 3,294 3,821 Deferred tax liabilities: Deferred loan origination costs (915) (867)Depreciation (622) (394)Unrealized gains on securities available for sale (260) (571)Right of use asset (107) (166)Prepaid expenses (106) (94)Other (57) -Total Deferred Tax Liabilities (2,067) (2,092) Deferred tax valuation allowance (452) (1,048) Net Deferred Tax Asset $ 775 $ 681 The net deferred tax asset was recorded in other assets on the consolidated statements of financial condition at December 31, 2021 and 2020. 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, 2021, except for the following: Valuation allowance of $129,000 on the deferred tax asset for the 2011 other than temporary impairment charge; and Valuation allowance of $323,000 on state deferred tax assets with anticipated net operating loss expiration dates of 2035 through 2041. 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. There was a $597,000 decrease in the deferred tax valuation recorded during 2021, while there was a $214,000 increase in the deferred tax valuation recorded during 2020. 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, 2021 and 2020, 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, 2021 and 2020. As of December 31, 2021, 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, 2018, 2019 and 2020 remain subject to examination by the IRS. The state tax returns for the years ended December 31, 2019 and 2020 for New York State remains subject to examination. |
Employee and Director Benefit P
Employee and Director Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employee and Director Benefit Plans [Abstract] | |
Employee and Director Benefit Plans | Note 12 - 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, 2021 and 2020 was $529,000 and $543,000, respectively. 1999 Supplemental Benefit PlansEffective 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 such bank owned life insurance amounted to $7.8 million and $7.7 million at December 31, 2021 and 2020, 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 $582,000 and $702,000 at December 31, 2021 and 2020, respectively. This liability was included in other liabilities on the consolidated statements of financial condition and was calculated using an assumed discount rate of 6.17% in 2021 and 2020. The Company’s expense for the 1999 Plans was $42,000 and $50,000 for the years ended December 31, 2021 and 2020, 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 $2.5 million and $2.4 million at December 31, 2021 and 2020, respectively. This liability was included in other liabilities on the consolidated statements of financial condition and was calculated using an assumed discount rate of 6.17% in 2021 and 2020. 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 $1.1 million and $902,000 as of December 31, 2021 and 2020, respectively. This liability was included in other liabilities on the consolidated statements of financial condition and was calculated using an assumed discount rate of 5.12% in 2021 and 2020. 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 $11.7 million and $11.5 million at December 31, 2021 and 2020, respectively. The Company’s expense for the 2001 and 2012 Plans was $489,000 and $427,000 for the years ended December 31, 2021 and 2020, 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 has a liability under this plan of $370,000 and $258,000 as of December 31, 2021 and 2020, respectively. This liability was included in other liabilities on the consolidated statements of financial condition and was calculated using an assumed discount rate of 5.12% in 2021 and 2020. The Company purchased bank owned life insurance for the purpose of funding the liability of the 2018 Plan. The cash surrender value of the bank owned life insurance for this agreement was $3.4 million and $3.3 million at December 31, 2021 and 2020, respectively. The Company’s expense for the 2018 Plan was $112,000 and $102,000 for the years ended December 31, 2021 and 2020, respectively. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Stock-based Compensation [Abstract] | |
Stock-based Compensation | Note 13 – Stock-based Compensation As of December 31, 2021, 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 $374,000 and $322,000 for the years ended December 31, 2021 and 2020. 2006 Stock Option PlanThe 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, 2021 and 2020 is presented below: 20212020 Options Weighted Average Exercise PriceRemaining Contractual LifeOptions Weighted Average Exercise PriceRemaining Contractual LifeOutstanding at beginning of year 64,548 $ 14.38 64,548 $ 14.38 Granted - - - - Exercised - - - - Outstanding at end of period 64,548 $ 14.38 4.8 years 64,548 $ 14.38 5.8 years Options exercisable at end of period 64,548 $ 14.38 4.8 years 51,636 $ 14.38 5.8 years Fair value of options granted - $ - - $ - At December 31, 2021, stock options outstanding had an intrinsic value of $34,000 and there were no remaining options available for grant under the Stock Option Plan. There were no stock options exercised during the years ended December 31, 2021 and 2020. Compensation expense related to the Stock Option Plan amounted to $27,000 and $34,000 for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, all compensation cost related to the Stock Option Plan has been recognized. 2006 Recognition and Retention PlanThe 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, 2021, there were 119,025 shares vested or distributed to eligible participants under the RRP. Compensation expense amounted to $19,000 for the year ended December 31, 2021 and $24,000 for the year ended December 31, 2020. As of December 31, 2021, all compensation cost related to the RRP has been recognized. A summary of the status of unvested shares under the RRP for the years ended December 31, 2021 and 2020 is as follows: At December 31, 2021 Weighted Average Grant Price (per Share) At December 31, 2020 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 1,618 $ 14.38 3,255 $ 14.37 Granted - - - - Vested (1,618) 14.38 (1,637) 14.37 Unvested shares outstanding at end of period - $ - 1,618 $ 14.38 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 2021 as follows: Grant Date Number of Restricted Stock Awards Vesting Fair Value per Share of Award on Grant Date Awardees February 24, 2021 4,656 100% on December 10, 2021 $15.65 Non-employee directorsMarch 24, 2021 16,302 100% on February 24, 2024 if three year performance metric is achieved 15.10 Employees A summary of the status of unvested restricted stock awards under the EIP for the years ended December 31, 2021 and 2020 is as follows: At December 31, 2021 Weighted Average Grant Price (per Share) At December 31, 2020 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 14,985 $ 15.39 - $ - Granted 20,958 15.22 20,830 15.42 Vested (4,656) 15.65 (5,513) 15.51 Forfeited (1,792) 15.25 (332) 15.39 Unvested shares outstanding at end of period 29,495 $ 15.24 14,985 $ 15.39 As of December 31, 2021, there were 93,741 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 $202,000 and $151,000 for the years ended December 31, 2021 and 2020, respectively. At December 31, 2021, $255,000 of unrecognized compensation cost related to unvested restricted stock awards is expected to be recognized over a period of 26 months. A summary of the status of stock options under the EIP for the years ended December 31, 2021 and 2020 is as follows: 20212020 Options Exercise PriceRemaining Contractual LifeOptions Exercise PriceRemaining Contractual LifeOutstanding at beginning of year 20,000 $ 14.38 20,000 $ 14.38 Granted - - - - Exercised - - - - Forfeited - - - - Outstanding at end of period 20,000 $ 14.38 4.8 years 20,000 $ 14.38 5.8 years Options exercisable at end of period 20,000 $ 14.38 4.8 years 15,998 $ 14.38 5.8 years Fair value of options granted - - - - At December 31, 2021, stock options outstanding had an intrinsic value of $10,000 and there were no remaining options available for grant under the EIP. Compensation expense related to stock options outstanding under the EIP amounted to $9,000 and $11,000 for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, all compensation cost related to the stock options granted under the EIP has been recognized. 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, 2021, the balance of the loan to the ESOP was $1.4 million and the fair value of unallocated shares was $1.7 million. As of December 31, 2021, there were 83,408 allocated shares and 111,088 unallocated shares compared to 83,781 allocated shares and 119,025 unallocated shares at December 31, 2020. The ESOP compensation expense was $117,000 for the year ended December 31, 2021 and $102,000 for the year ended December 31, 2020 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, 2021 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 14 - Fair Value of Financial InstrumentsManagement 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, 2021 and 2020 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, 2021 and 2020 were as follows: Fair Value Measurements at December 31, 2021 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: Debt Securities Available for Sale U.S. government agencies $ 2,213 $ - $ 2,213 $ -Municipal bonds 50,756 - 50,756 -Mortgage-backed securities: Collateralized mortgage obligations-private label 15 - 15 -Collateralized mortgage obligations-government sponsored entities 17,814 - 17,814 -Government National Mortgage Association 83 - 83 -Federal National Mortgage Association 10,760 - 10,760 -Federal Home Loan Mortgage Corporation 7,036 - 7,036 -Asset-backed securities: Private label 110 - 110 - Government sponsored entities 10 - 10 -Total Debt Securities Available for Sale $ 88,797 $ - $ 88,797 $ -Equity securities 19 19 - -Total Securities $ 88,816 $ 19 $ 88,797 $ -Interest Rate Swap(1) $ (60) $ - $ (60) $ - (1)Included in Other Liabilities on the consolidated statements of financial condition. Fair Value Measurements at December 31, 2020 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: Debt Securities Available for Sale U.S. government agencies $ 2,337 $ - $ 2,337 $ -Municipal bonds 44,893 - 44,893 -Mortgage-backed securities: Collateralized mortgage obligations-private label 16 - 16 -Collateralized mortgage obligations-government sponsored entities 23,051 - 23,051 -Government National Mortgage Association 127 - 127 -Federal National Mortgage Association 4,339 - 4,339 -Federal Home Loan Mortgage Corporation 4,293 - 4,293 -Asset-backed securities: - Private label 147 - 147 -Government sponsored entities 30 - 30 -Total Debt Securities Available for Sale $ 79,233 $ - $ 79,233 $ -Equity securities 52 52 - -Total Securities $ 79,285 $ 52 $ 79,233 $ -Interest Rate Swap(1) $ (259) $ - $ (259) $ - (1)Included in Other Assets on the consolidated statements of financial condition. 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. 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, 2021 and 2020 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, 2021 Foreclosed real estate $ 35 $ - $ - $ 35 Mortgage servicing rights 220 - - 220 At December 31, 2020 Foreclosed real estate $ 58 $ - $ - $ 58 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 Weighted AverageAt December 31, 2021 Foreclosed real estate$ 35 Market valuation of property (1) Direct Disposal Costs (2) 7.00% 7.00%Mortgage servicing rights 220 Discounted Cash Flow Model (3) Servicing Fees and Costs (3) 0.10% 0.10%At December 31, 2020 Foreclosed real estate$ 58 Market valuation of property (1) Direct Disposal Costs (2) 7.00% 7.00% (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.(3)The fair value is based on a discounted cash flow model. The model’s key assumptions are the estimated life of loans sold with servicing retained and the estimated cost to service the loan. At December 31, 2021 foreclosed real estate valued using Level 3 inputs had a carrying amount of $73,000 and valuation allowances of $38,000. By comparison at December 31, 2020, foreclosed real estate valued using Level 3 inputs had a carrying amount of $67,000 and valuation allowances of $9,000. 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, 2021 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 $ 67,585 $ 67,585 $ 67,585 $ - $ -Securities 88,816 88,816 19 88,797 -Federal Home Loan Bank stock 1,606 1,606 - 1,606 -Loans receivable, net 517,206 504,018 - - 504,018Accrued interest receivable 2,483 2,483 - 2,483 -Mortgage servicing rights 220 220 - - 220Financial liabilities: Deposits 593,184 596,273 - 596,273 -Long-term debt 21,950 22,073 - 22,073 -Accrued interest payable 55 55 - 55 -Interest rate swap 60 60 - 60 -Off-balance-sheet financial instruments - - - - - Fair Value Measurements at December 31, 2020 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 $ 42,975 $ 42,975 $ 42,975 $ - $ -Securities 79,285 79,285 52 79,233 -Federal Home Loan Bank stock 1,905 1,905 - 1,905 -Loans receivable, net 524,143 519,551 - - 519,551Accrued interest receivable 2,987 2,987 - 2,987 -Financial liabilities: Deposits 560,259 565,655 - 565,655 -Long-term debt 29,750 30,811 - 30,811 -Accrued interest payable 70 70 - 70 -Interest rate swap 259 259 - 259 -Off-balance-sheet financial instruments - - - - - |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Note 15 - 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. 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. As a result of the Economic Growth, Regulatory Relief, and Consumer Act, the federal banking agencies have developed a minimum “Community Bank Leverage Ratio” (bank’s tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion and limited amounts of off-balance-sheet exposures and trading assets and liabilities. A “qualifying community bank” may elect to utilize the Community Bank Leverage Ratio (“CBLR”) in lieu of the general applicable risk-based capital requirements under Basel III. If the community bank’s capital levels exceed the CBLR it will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Basel III. The federal banking agencies may consider a financial institution’s risk profile when evaluating whether it qualifies as a community bank for purposes of the capital ratio requirement. The federal banking agencies set the minimum CBLR at 9.00%. Pursuant to the CARES Act, the federal banking agencies lowered the minimum CBLR to 8% beginning in the second quarter of 2020 through the end of 2020. Beginning in 2021, the minimum CBLR increased to 8.5% for the calendar year. Community banks had until January 1, 2022, before the CBLR minimum returned to 9%. The Bank elected to be subject to the CBLR when it became effective on January 1, 2020. . As of December 31, 2021 and 2020, the Bank was considered a “qualifying community bank” and its CBLR was 11.96% and 11.82%, respectively, so it was deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. Following is a reconciliation of the Bank’s GAAP capital to regulatory Tier 1 and CET 1 capital for December 31, 2021 and 2020: December 31, 2021 2020 (Dollars in thousands) GAAP (Equity) Capital: $ 85,223 $ 82,782Plus: Unrealized gains on available-for-sale debt securities, net of tax (978) (2,148)Less: Additional tier 1 capital deductions - - Tier 1 Capital and CET1 Capital $ 84,245 $ 80,634 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per Share [Abstract] | |
Earnings per Share | Note 16 – Earnings per Share Earnings per share was calculated for the years ended December 31, 2021 and 2020, 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, 2021 2020Numerator – net income $ 6,187,000 $ 4,558,000 Denominator: Basic weighted average shares outstanding 5,885,005 5,955,327 Increase in weighted average shares outstanding due to: Stock options 2,859 -Diluted weighted average shares outstanding (1) 5,887,864 5,955,327 Earnings per share: Basic $ 1.05 $ 0.77 Diluted $ 1.05 $ 0.77 (1)Stock options to purchase 64,548 shares under the Stock Option Plan and 20,000 shares under the EIP at $14.38 were outstanding during 2020, 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, 2021 | |
Commitments to Extend Credit [Abstract] | |
Commitments to Extend Credit | Note 17 – 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, 2021 and 2020. 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, 2021 2020 (Dollars in thousands) Commitments to grant loans $ 61,234 $ 47,065 Unfunded commitments under lines of credit 73,387 66,134 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, 2021 | |
Parent Company Only Financial Information [Abstract] | |
Parent Company Only Financial Information | Note 18 – Parent Company Only Financial InformationThe 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, 2021 and 2020 and for the years ended December 31, 2021 and 2020.Statements of Financial Condition December 31, 2021 2020 (Dollars in thousands)Assets Cash and due from banks $ 1,085 $ 1,414Investment in subsidiary 85,223 82,781ESOP loan receivable 1,420 1,477Other assets 274 275 Total assets $ 88,002 $ 85,947 Liabilities and Stockholders' Equity Other liabilities 26 23Total stockholders' equity 87,976 85,924 Total liabilities and stockholders' equity $ 88,002 $ 85,947 Statements of Income For the Years Ended December 31, 2021 2020 (Dollars in thousands) Interest Income $ 112 $ 120Dividend distributed by bank subsidiary 3,000 2,500Other 3 -Total Income 3,115 2,620Non-interest Expenses 404 421Income before income taxes and equity in undistributed net income of subsidiary 2,711 2,199Income tax benefit (83) (84)Income before undistributed net income of subsidiary 2,794 2,283Equity in undistributed net income of subsidiary 3,393 2,275Net Income $ 6,187 $ 4,558 Statements of Comprehensive Income For the Years Ended December 31, 2021 2020 (Dollars in thousands) Net Income $ 6,187 $ 4,558Other Comprehensive (Loss) Income, net of tax benefit (expense): Unrealized holding (loss) gains on securities available for sale of subsidiary, net of tax benefit (expense) 2021 $300; 2020 $(233) (1,122) 875Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense 2021 $11; 2020 $15 (48) (58)Total Other Comprehensive (Loss) Income (1,170) 817Total Comprehensive Income $ 5,017 $ 5,375 Statements of Cash Flows For the Years Ended December 31, 2021 2020 (Dollars in thousands)Cash Flows from Operating Activities: Net income $ 6,187 $ 4,558Adjustments to reconcile net income to net cash provided by operating activities: ESOP shares committed to be released 117 102Stock based compensation expense 257 220Increase in other assets (218) (408)Increase (decrease) in other liabilities 3 (15)Equity in undistributed earnings of subsidiary (3,393) (2,275)Net Cash Provided by Operating Activities 2,953 2,182Cash Flows from Investing Activities: Payments received on ESOP loan 57 52Net Cash Provided by Investing Activities 57 52Cash Flows from Financing Activities: Purchase of treasury stock (2,255) (1,593)Cash dividends paid (1,084) (1,020)Net Cash Used in Financing Activities (3,339) (2,613)Net Decrease in Cash and Cash Equivalents (329) (379)Cash and Cash Equivalents - Beginning 1,414 1,793Cash and Cash Equivalents - Ending $ 1,085 $ 1,414 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2021 | |
Treasury Stock [Abstract] | |
Treasury Stock | Note 19 – Treasury Stock During the year ended December 31, 2021, the Company repurchased 150,542 shares of common stock at an average cost of $14.98 per share. The Company repurchased 149,928 of these shares at an average cost of $14.98 per share pursuant to the Company’s publicly announced common stock repurchase programs. As of December 31, 2021, there were 36,327 shares remaining to be repurchased under the existing stock repurchase program. The remaining 614 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 $14.97 per share. During the year ended December 31, 2021, the Company transferred 20,958 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 plan. During the year ended December 31, 2021, there were 1,792 shares transferred back into treasury stock reserved for the 2012 Equity Incentive Plan at an average cost of $9.39 per share due to forfeitures. During the year ended December 31, 2020, the Company repurchased 121,051 shares of common stock at an average cost of $13.16 per share. The Company repurchased 120,821 of these shares at an average cost of $13.16 pursuant to the Company’s publicly announced common stock repurchase programs. As of December 31, 2020, there were 79,707 shares remaining to be repurchased under the existing stock repurchase program. The remaining 230 shares were repurchased from the trustee of the Company’s unvested RRP and EIP stock holdings, when awardees sold vested shares at an average cost of $13.40 per share. During the year ended December 31, 2020, the Company transferred 20,830 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 plan. During the year ended December 31, 2020, there were 332 shares transferred back into treasury stock reserved for the 2012 Equity Incentive Plan at an average cost of $9.39 per share due to forfeitures. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive (Loss) Income [Abstract] | |
Other Comprehensive (Loss) Income | Note 20 – Other Comprehensive (Loss) Income 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 (loss) income for the periods presented: For the Years Ended December 31, 2021 For The Years Ended December 31, 2020 Pre-Tax Amount Tax Benefit Net of Tax Amount Pre-Tax Amount Tax (Expense) Benefit Net of Tax Amount (Dollars in thousands)Net unrealized (losses) gains on securities available for sale: Net unrealized (losses) gains arising during the period $ (1,422) $ 300 $ (1,122) $ 1,108 $ (233) $ 875 Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (59) 11 (48) (73) 15 (58)Total Other Comprehensive (Loss) Income $ (1,481) $ 311 $ (1,170) $ 1,035 $ (218) $ 817 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 OtherOther Comprehensive IncomeAffected Line ItemComprehensive Incomefor the years ended December 31,on the Consolidated Components2021 2020Statements of Income (Dollars in thousands) Net unrealized (losses) gains on securities available for sale: Recovery on previously impaired investment securities$ (59) $ (73)Recovery on previously impaired investment securitiesProvision for income tax expense 11 15Income Tax ExpenseTotal reclassification for the period$ (48) $ (58)Net Income |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
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. Debit Card FeesDebit card fees are 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. The Company’s performance obligation for interchange income are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically immediately. Service Charges on Deposit AccountsService 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 and Other Service ChargesFees and other service charges are primarily comprised of ATM fees, merchant services income and other service charges. 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 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. OtherOther 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, 2021, where the Company financed the sale of the property. During the year ended December 31, 2020, the Company financed the sale of two OREO properties to separate buyers. After assessing the applicable criteria under ASU 2014-09, the Company recognized a $31,000 gain on sale of these properties. Contract Balances The Company’s non-interest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2021 and 2020, the Company did not have any significant contract balances. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2021 and 2020: For the years ended December 31, 2021 2020 (Dollars in thousands) Non-Interest Income In-Scope of Topic 606: Debit card fees$ 873 $ 763 Service charges on deposit accounts 608 606 Fees and other service charges 147 130 Other 35 36 Non-interest Income (in-scope of Topic 606) 1,663 1,535 Non-interest Income (out of scope of Topic 606) 1,525 1,457 Total Non-Interest Income$ 3,188 $ 2,992 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 – Subsequent Events On February 9, 2022, the Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company’s common stock, payable on March 17, 2022 to shareholders of record as of February 24, 2022. Lake Shore, MHC, which holds 3,636,875 shares, or approximately 63.9% of the Company’s total outstanding stock as of the record date, elected to waive its right to receive this cash dividend of approximately $582,000. On February 9, 2022, 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 $0.68 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 March 10 2022, 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 9, 2023, aggregating up to $0.68 per share. The MHC waived $2.0 million of dividends during the year ended December 31, 2021. Cumulatively, Lake Shore, MHC has waived approximately $16.1 million of cash dividends as of December 31, 2021. The dividends waived by Lake Shore, MHC are considered a restriction on the retained earnings of the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2021 | |
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 EstimatesTo 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 EquivalentsCash 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 SecuritiesAll 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 earnings. |
Federal Home Loan Bank Stock | Federal Home Loan Bank StockFederal 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. The investment is periodically evaluated for impairment based on the ultimate recoverability of cost. |
Loans Receivable | Loans ReceivableLoans 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 LossesThe 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 EquipmentLand 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. |
Leases | LeasesThe Company determines if an arrangement is a lease at the contract’s inception. 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 leases are recorded under a right of use (“ROU”) model that requires a lessee to record (for all operating leases with terms longer than 12 months) an asset representing its right to use (“ROU”) the underlying asset and a lease liability. The ROU asset and lease liability are included in other assets and other liabilities, respectively, on the consolidated statements of financial condition. Finance leases are recorded in premises and equipment on the consolidated statements of financial condition. 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. |
Mortgage Servicing Rights | Mortgage Servicing Rights Certain low-yielding, fixed rate residential, one to- four- family loans are sold on the secondary market in order to manage interest rate risk. The individual loans are normally sold to an investor immediately after loan closing. The Company retains servicing rights on these loans. Originated mortgage servicing rights are recorded at their fair value at the time of transfer of the related loans and are amortized in proportion to, and over the period of, estimated net servicing income or loss. The carrying value of the originated mortgage servicing rights are periodically evaluated for impairment. The mortgage servicing rights asset is recorded in other assets on the consolidated statements of financial condition. The amortization of the mortgage servicing asset is netted against service fee income and recorded in service charges and fees on the consolidated statements of income. |
Transfers of Financial Assets | Transfers of Financial AssetsTransfers 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 EstateForeclosed 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 $123,000 and $58,000 at December 31, 2021 and 2020, 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, 2021 and 2020 were $171,000 and $680,000, respectively. This resulted in a net gain on sale of $24,000 and $36,000 for the years ended December 31, 2021 and 2020, respectively, and was included as a component of other non-interest expenses in the consolidated statements of income. |
Bank Owned Life Insurance | Bank Owned Life InsuranceThe 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 CostsThe Company follows the policy of charging the costs of advertising to expense as incurred. Total advertising expense for the years ended December 31, 2021 and 2020 was $602,000 and $671,000, respectively. |
Income Taxes | Income TaxesThe 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. 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 PlansAt December 31, 2021, the Company had stock-based employee and non-employee compensation plans, which are described more fully in Note 13. 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. When restricted shares are granted, the shares are released from treasury stock. 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 ShareBasic 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 InstrumentsIn 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 IncomeAccounting 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 BanksThe Federal Reserve Board regulations required savings banks to maintain noninterest-earning reserves against their transaction accounts, such as negotiable order of withdrawal and regular checking accounts. In March 2020, due to a change in its approach to monetary policy, the Board of Governors of the Federal Reserve System announced an interim rule to amend Regulation D requirements and reduce reserve requirement ratios to zero. The Federal Reserve Board finalized the interim rule in December 2020 and has indicated that it has no plans to re-impose reserve requirements but may do so in the future if conditions warrant. |
Subsequent Events | Subsequent EventsThe Company evaluated events occurring subsequent to December 31, 2021 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. |
Accounting Standards to be Adopted | Accounting Standards to be Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. The Company is required to adopt this guidance on January 1, 2023. |
Reclassifications | ReclassificationsCertain amounts in the 2020 consolidated financial statements have been reclassified to conform with the 2021 presentation format. These reclassifications had no effect on net income. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment Securities [Abstract] | |
Amortized Cost and Fair Value of Securities | December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands)SECURITIES Debt Securities Available for Sale U.S. government agencies $ 2,009 $ 204 $ - $ 2,213 Municipal bonds 49,812 1,085 (141) 50,756 Mortgage-backed securities: Collateralized mortgage obligations-private label 14 1 - 15 Collateralized mortgage obligations-government sponsored entities 17,798 209 (193) 17,814 Government National Mortgage Association 76 7 - 83 Federal National Mortgage Association 10,773 53 (66) 10,760 Federal Home Loan Mortgage Corporation 7,068 87 (119) 7,036 Asset-backed securities-private label - 110 - 110 Asset-backed securities-government sponsored entities 9 1 - 10 Total Debt Securities Available for Sale $ 87,559 $ 1,757 $ (519) $ 88,797 Equity Securities 22 - (3) 19 Total Securities $ 87,581 $ 1,757 $ (522) $ 88,816 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands)SECURITIES Debt Securities Available for Sale U.S. government agencies $ 2,010 $ 327 $ - $ 2,337 Municipal bonds 43,466 1,430 (3) 44,893 Mortgage-backed securities: Collateralized mortgage obligations-private label 16 - - 16 Collateralized mortgage obligations-government sponsored entities 22,527 549 (25) 23,051 Government National Mortgage Association 116 11 - 127 Federal National Mortgage Association 4,209 130 - 4,339 Federal Home Loan Mortgage Corporation 4,143 152 (2) 4,293 Asset-backed securities-private label - 147 - 147 Asset-backed securities-government sponsored entities 27 3 - 30 Total Debt Securities Available for Sale $ 76,514 $ 2,749 $ (30) $ 79,233 Equity Securities 22 30 - 52 Total Securities $ 76,536 $ 2,779 $ (30) $ 79,285 |
Investment in Debt Securities 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, 2021 Municipal bonds $ 9,601 (120) $ 857 $ (21) $ 10,458 $ (141)Mortgage-backed securities 21,141 (211) 3,083 (167) 24,224 (378) $ 30,742 $ (331) $ 3,940 $ (188) $ 34,682 $ (519) December 31, 2020 Municipal bonds $ 539 (3) $ - $ - $ 539 $ (3)Mortgage-backed securities 7,166 (26) 76 (1) 7,242 (27) $ 7,705 $ (29) $ 76 $ (1) $ 7,781 $ (30) |
Summary of Credit-Related OTTI Charges Recognized as Components of Income | For The Years Ended December 31, 2021 2020 (Dollars in thousands)Beginning balance $ 221 $ 294 Additions: Credit loss not previously recognized - -Reductions: Losses realized during the period on OTTI previously recognized - -Receipt of cash flows on previously recorded OTTI (59) (73)Ending balance $ 162 $ 221 |
Scheduled Contractual Maturities of Debt Securities | Amortized Fair Cost Value (Dollars in thousands)December 31, 2021: Less than one year $ 220 $ 220 After one year through five years 3,877 3,894 After five years through ten years 9,948 10,235 After ten years 37,776 38,620 Mortgage-backed securities 35,729 35,708 Asset-backed securities 9 120 $ 87,559 $ 88,797 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans Receivable [Abstract] | |
Schedule of Loans Receivable, Net | December 31, 2021 2020 (Dollars in thousands)Real Estate Loans: Residential, one- to four-family(1) $ 158,826 $ 150,660 Home equity 48,071 47,603 Commercial 266,525 257,321 Construction - commercial 21,824 28,923 495,246 484,507 Commercial 23,216 40,772 Consumer 1,317 1,353 Total Loans 519,779 526,632 Allowance for loan losses (6,118) (5,857)Net deferred loan costs 3,545 3,368 Loans Receivable, net $ 517,206 $ 524,143 (1)Includes one- to four-family construction loans. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Allowance for Loan Losses: Balance – January 1, 2021 $ 346 $ 172 $ 4,052 $ 434 $ 676 $ 27 $ 150 $ 5,857 Charge-offs (12) - (427) - - (39) - (478) Recoveries 49 2 6 - 23 9 - 89 Provision (credit) - 37 746 (74) (168) 35 74 650 Balance – December 31, 2021 $ 383 $ 211 $ 4,377 $ 360 $ 531 $ 32 $ 224 $ 6,118 Ending balance: individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ -Ending balance: collectively evaluated for impairment $ 383 $ 211 $ 4,377 $ 360 $ 531 $ 32 $ 224 $ 6,118 Gross Loans Receivable (1): Ending balance $ 158,826 $ 48,071 $ 266,525 $ 21,824 $ 23,216 $ 1,317 $ - $ 519,779 Ending balance: individually evaluated for impairment $ 261 $ 24 $ 7,002 $ - $ - $ - $ - $ 7,287 Ending balance: collectively evaluated for impairment $ 158,565 $ 48,047 $ 259,523 $ 21,824 $ 23,216 $ 1,317 $ - $ 512,492 (1)Gross Loans Receivable does not include allowance for loan losses of $(6,118) or deferred loan costs of $3,545.(2)Includes one- to-family 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, 2020 Allowance for Loan Losses: Balance – January 1, 2020 $ 436 $ 129 $ 2,682 $ 388 $ 478 $ 26 $ 128 $ 4,267 Charge-offs (26) (6) - - (5) (42) - (79) Recoveries 23 2 1 - 4 14 - 44 Provision (credit) (87) 47 1,369 46 199 29 22 1,625 Balance – December 31, 2020 $ 346 $ 172 $ 4,052 $ 434 $ 676 $ 27 $ 150 $ 5,857 Ending balance: individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ -Ending balance: collectively evaluated for impairment $ 346 $ 172 $ 4,052 $ 434 $ 676 $ 27 $ 150 $ 5,857 Gross Loans Receivable (1): Ending Balance $ 150,660 $ 47,603 $ 257,321 $ 28,923 $ 40,772 $ 1,353 $ - $ 526,632 Ending balance: individually evaluated for impairment $ 238 $ 15 $ - $ - $ - $ - $ - $ 253 Ending balance: collectively evaluated for impairment $ 150,422 $ 47,588 $ 257,321 $ 28,923 $ 40,772 $ 1,353 $ - $ 526,379 (1)Gross Loans Receivable does not include allowance for loan losses of $(5,857) or deferred loan costs of $3,368.(2)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, 2021 December 31, 2021 (Dollars in thousands)With no related allowance recorded: Residential, one- to four-family $ 261 $ 261 $ - $ 269 $ 13 Home equity 24 24 - 25 1 Commercial real estate 7,002 7,002 - 8,786 219 Total impaired loans with no related allowance 7,287 7,287 - 9,080 233 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2020 December 31, 2020 (Dollars in thousands)With no related allowance recorded: Residential, one- to four-family $ 238 $ 238 $ - $ 306 $ 15 Home equity 15 15 - 16 1 Total impaired loans 253 253 - 322 16 |
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, 2021: Real Estate Loans: Residential, one- to four-family(1) $ 373 $ 758 $ 1,096 $ 2,227 $ 156,599 $ 158,826 $ 1,878 Home equity 265 146 532 943 47,128 48,071 636 Commercial(2) - - - - 266,525 266,525 7,002 Construction - commercial - - - - 21,824 21,824 -Other Loans: Commercial(3) - - - - 23,216 23,216 -Consumer 7 7 5 19 1,298 1,317 5 Total $ 645 $ 911 $ 1,633 $ 3,189 $ 516,590 $ 519,779 $ 9,521 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, 2020: Real Estate Loans: Residential, one- to four-family(1) $ 920 $ 552 $ 1,361 $ 2,833 $ 147,827 $ 150,660 $ 2,392 Home equity 173 64 645 882 46,721 47,603 706 Commercial - - - - 257,321 257,321 -Construction - commercial - - - - 28,923 28,923 -Other Loans: Commercial(3) - - - - 40,772 40,772 -Consumer 12 4 4 20 1,333 1,353 3 Total $ 1,105 $ 620 $ 2,010 $ 3,735 $ 522,897 $ 526,632 $ 3,101 (1)Includes one- to four-family construction loans.(2)Commercial Real Estate loans on non-accrual consists of one $7.0 million loan relationship which was moved to non-accrual status during the year ended December 31, 2021.(3)Includes $4.6 million and $18.1 million of PPP loans at December 31, 2021 and December 31, 2020, respectively, which do not require payments for a certain amount of time under the CARES Act and are 100% guaranteed by the SBA. |
Summary of Internal Loan Grades Applied to Loan Portfolio | Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands)December 31, 2021 Real Estate Loans: Residential, one- to four-family(1) $156,931 $- $1,895 $- $- $158,826Home equity 47,167 - 904 - - 48,071Commercial(2) 252,391 6,682 7,452 - - 266,525Construction - commercial 21,824 - - - - 21,824Other Loans: Commercial(3) 18,076 1,742 3,398 - - 23,216Consumer 1,308 - 4 - 5 1,317 Total $497,697 $8,424 $13,653 $- $5 $519,779 Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands)December 31, 2020 Real Estate Loans: Residential, one- to four-family(1) $148,291 $- $2,369 $- $- $150,660Home equity 46,543 - 1,060 - - 47,603Commercial 242,527 14,202 592 - - 257,321Construction - commercial 28,923 - - - - 28,923Other Loans: Commercial(3) 35,507 1,022 4,243 - - 40,772Consumer 1,350 - 3 - - 1,353 Total $503,141 $15,224 $8,267 $- $- $526,632 (1)Includes one- to four-family construction loans.(2)The Substandard classification category for Commercial Real Estate loans includes one $7.0 million loan relationship that was deemed to be impaired during the year ended December 31, 2021. (3)The Pass/Performing category for Commercial Loans includes $4.6 million and $18.1 million of PPP loans at December 31, 2021 and December 31, 2020, respectively, which do not require payments for a certain amount of time under the CARES Act and are 100% guaranteed by SBA. |
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, 2021 Real Estate Loans: Residential, one- to four-family 7 $261 1 $11 6 $250 - $ -Home equity 2 24 1 15 1 9 1 15Commercial 1 7,002 1 7,002 - - - - Total 10 $7,287 3 $7,028 7 $259 1 $15 At December 31, 2020 Real Estate Loans: Residential, one- to four-family 6 $238 1 $18 5 $220 - $ -Home equity 1 15 - - 1 15 - - Total 7 $253 1 $18 6 $235 - $- |
Troubled Debt Restructurings on Financing Receivables, Current Period | For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands)Real Estate Loans: Residential, one- to four-family 1 $ 38 $ 38 3 $ 150 $ 150 Home equity 1 10 10 1 16 16 Commercial 1 7,483 7,060 - - - Total 3 $ 7,531 $ 7,108 4 $ 166 $ 166 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment [Abstract] | |
Schedule of Premises and Equipment | December 31, 2021 2020 (Dollars in thousands) Land $ 1,209 $ 1,209 Buildings and improvements 13,022 12,905 Furniture and equipment 7,201 6,698 21,432 20,812 Accumulated depreciation (12,696) (11,838) $ 8,736 $ 8,974 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Schedule of Deposits | December 31, 2021 2020 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands)Demand deposits: Non-interest bearing $ 110,676 -% $ 91,946 -%Interest bearing 95,104 0.09 84,839 0.12 Money market accounts 175,886 0.20 158,505 0.26 Savings accounts 74,155 0.05 65,643 0.06 Time deposits 137,363 0.73 159,326 1.38 $ 593,184 0.25% $ 560,259 0.49% |
Schedule of Maturities of Time Deposits | 2022 $ 72,588 2023 18,802 2024 12,316 2025 10,939 2026 22,718 $ 137,363 |
Schedule of Interest Expense on Deposits | Years Ended December 31, 2021 2020 (Dollars in thousands) Interest bearing checking accounts $ 75 $ 105 Money market accounts 347 919 Savings accounts 38 35 Time deposits 1,634 2,609 $ 2,094 $ 3,668 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings [Abstract] | |
Long-term Debt from FHLBNY and Related Contractual Maturities | At December 31, 2021 At December 31, 2020Maturity AmountWeighted Average Interest Rate Amount Weighted Average Interest Rate(Dollars in thousands) In one year $ 2,0002.18% $ 7,800 2.30%In two years 4,9502.31% 2,000 2.18%In three years 13,0001.73% 4,950 2.31%In four years 2,0001.94% 13,000 1.73%In five years --% 2,000 1.94% $ 21,950 1.92% $ 29,750 2.02% |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases Obligations [Abstract] | |
Summary of Information Related to Lease Liabilities | For the Years Ended December 31, (in thousands, except for percent and period data) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 157 $ 145 Operating cash flows from finance leases 126 126 Weighted-average remaining lease term, operating leases, in years 3.6 4.6 Weighted-average discount rate – operating leases 2.61 % 2.61 % |
Summary of Maturity of Remaining Lease Liabilities | Operating Finance Leases Lease (Dollars in thousands)2022 $ 157 $ 1262023 157 1312024 157 1362025 90 1362026 - 1362027 and thereafter - 204Total Lease Payments $ 561 $ 869Less: Amounts representing interest (27) (246)Present value of lease liabilities $ 534 $ 623 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Schedule of Provision for Income Tax Expense | Years Ended December 31, 2021 2020 (Dollars in thousands) Current: Federal $ 1,063 $ 1,311State 8 5Total Current 1,071 1,316 Deferred: Federal 217 492State - -Total Deferred 217 492 Total Income Tax Expense $ 1,288 $ 1,808 |
Schedule of Reconciliation of Statutory Federal Income Tax | Years Ended December 31, 2021 2020 Federal income tax at statutory rate 21.0% 21.0%State expense (benefit), net of federal (expense) benefit 8.1 (3.9) Tax-exempt interest income (3.1) (4.7) Deferred tax valuation allowance (8.0) 4.0 Life insurance income (1.2) (1.9) Other 0.4 0.8 Total Income Tax Expense 17.2% 15.3% |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2021 2020 (Dollars in thousands)Deferred tax assets: Allowance for loan losses $ 1,579 $ 1,508Deferred compensation 1,237 1,134Accrued expenses 145 170Impairment of equity investments 129 128Right of use liability 110 171Net operating loss ("NOL") 52 626Stock options granted 21 18Other 21 66Total Deferred Tax Assets 3,294 3,821 Deferred tax liabilities: Deferred loan origination costs (915) (867)Depreciation (622) (394)Unrealized gains on securities available for sale (260) (571)Right of use asset (107) (166)Prepaid expenses (106) (94)Other (57) -Total Deferred Tax Liabilities (2,067) (2,092) Deferred tax valuation allowance (452) (1,048) Net Deferred Tax Asset $ 775 $ 681 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
2006 Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Status of Stock Option Plan | 20212020 Options Weighted Average Exercise PriceRemaining Contractual LifeOptions Weighted Average Exercise PriceRemaining Contractual LifeOutstanding at beginning of year 64,548 $ 14.38 64,548 $ 14.38 Granted - - - - Exercised - - - - Outstanding at end of period 64,548 $ 14.38 4.8 years 64,548 $ 14.38 5.8 years Options exercisable at end of period 64,548 $ 14.38 4.8 years 51,636 $ 14.38 5.8 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 | At December 31, 2021 Weighted Average Grant Price (per Share) At December 31, 2020 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 1,618 $ 14.38 3,255 $ 14.37 Granted - - - - Vested (1,618) 14.38 (1,637) 14.37 Unvested shares outstanding at end of period - $ - 1,618 $ 14.38 |
2012 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Status of Stock Option Plan | 20212020 Options Exercise PriceRemaining Contractual LifeOptions Exercise PriceRemaining Contractual LifeOutstanding at beginning of year 20,000 $ 14.38 20,000 $ 14.38 Granted - - - - Exercised - - - - Forfeited - - - - Outstanding at end of period 20,000 $ 14.38 4.8 years 20,000 $ 14.38 5.8 years Options exercisable at end of period 20,000 $ 14.38 4.8 years 15,998 $ 14.38 5.8 years Fair value of options granted - - - - |
Schedule of Unvested Restricted Stock Activity | At December 31, 2021 Weighted Average Grant Price (per Share) At December 31, 2020 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 14,985 $ 15.39 - $ - Granted 20,958 15.22 20,830 15.42 Vested (4,656) 15.65 (5,513) 15.51 Forfeited (1,792) 15.25 (332) 15.39 Unvested shares outstanding at end of period 29,495 $ 15.24 14,985 $ 15.39 |
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 24, 2021 4,656 100% on December 10, 2021 $15.65 Non-employee directorsMarch 24, 2021 16,302 100% on February 24, 2024 if three year performance metric is achieved 15.10 Employees |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 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: Debt Securities Available for Sale U.S. government agencies $ 2,213 $ - $ 2,213 $ -Municipal bonds 50,756 - 50,756 -Mortgage-backed securities: Collateralized mortgage obligations-private label 15 - 15 -Collateralized mortgage obligations-government sponsored entities 17,814 - 17,814 -Government National Mortgage Association 83 - 83 -Federal National Mortgage Association 10,760 - 10,760 -Federal Home Loan Mortgage Corporation 7,036 - 7,036 -Asset-backed securities: Private label 110 - 110 - Government sponsored entities 10 - 10 -Total Debt Securities Available for Sale $ 88,797 $ - $ 88,797 $ -Equity securities 19 19 - -Total Securities $ 88,816 $ 19 $ 88,797 $ -Interest Rate Swap(1) $ (60) $ - $ (60) $ - (1)Included in Other Liabilities on the consolidated statements of financial condition. Fair Value Measurements at December 31, 2020 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: Debt Securities Available for Sale U.S. government agencies $ 2,337 $ - $ 2,337 $ -Municipal bonds 44,893 - 44,893 -Mortgage-backed securities: Collateralized mortgage obligations-private label 16 - 16 -Collateralized mortgage obligations-government sponsored entities 23,051 - 23,051 -Government National Mortgage Association 127 - 127 -Federal National Mortgage Association 4,339 - 4,339 -Federal Home Loan Mortgage Corporation 4,293 - 4,293 -Asset-backed securities: - Private label 147 - 147 -Government sponsored entities 30 - 30 -Total Debt Securities Available for Sale $ 79,233 $ - $ 79,233 $ -Equity securities 52 52 - -Total Securities $ 79,285 $ 52 $ 79,233 $ -Interest Rate Swap(1) $ (259) $ - $ (259) $ - (1)Included in Other Assets on the consolidated statements of financial condition. |
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, 2021 Foreclosed real estate $ 35 $ - $ - $ 35 Mortgage servicing rights 220 - - 220 At December 31, 2020 Foreclosed real estate $ 58 $ - $ - $ 58 |
Carrying Amount and Estimated Fair Value of Financial Instruments | Fair Value Measurements at December 31, 2021 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 $ 67,585 $ 67,585 $ 67,585 $ - $ -Securities 88,816 88,816 19 88,797 -Federal Home Loan Bank stock 1,606 1,606 - 1,606 -Loans receivable, net 517,206 504,018 - - 504,018Accrued interest receivable 2,483 2,483 - 2,483 -Mortgage servicing rights 220 220 - - 220Financial liabilities: Deposits 593,184 596,273 - 596,273 -Long-term debt 21,950 22,073 - 22,073 -Accrued interest payable 55 55 - 55 -Interest rate swap 60 60 - 60 -Off-balance-sheet financial instruments - - - - - Fair Value Measurements at December 31, 2020 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 $ 42,975 $ 42,975 $ 42,975 $ - $ -Securities 79,285 79,285 52 79,233 -Federal Home Loan Bank stock 1,905 1,905 - 1,905 -Loans receivable, net 524,143 519,551 - - 519,551Accrued interest receivable 2,987 2,987 - 2,987 -Financial liabilities: Deposits 560,259 565,655 - 565,655 -Long-term debt 29,750 30,811 - 30,811 -Accrued interest payable 70 70 - 70 -Interest rate swap 259 259 - 259 -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 Weighted AverageAt December 31, 2021 Foreclosed real estate$ 35 Market valuation of property (1) Direct Disposal Costs (2) 7.00% 7.00%Mortgage servicing rights 220 Discounted Cash Flow Model (3) Servicing Fees and Costs (3) 0.10% 0.10%At December 31, 2020 Foreclosed real estate$ 58 Market valuation of property (1) Direct Disposal Costs (2) 7.00% 7.00% (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.(3)The fair value is based on a discounted cash flow model. The model’s key assumptions are the estimated life of loans sold with servicing retained and the estimated cost to service the loan. |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements [Abstract] | |
Reconciliation of GAAP Capital to Regulatory Tier 1 and Total Capital | December 31, 2021 2020 (Dollars in thousands) GAAP (Equity) Capital: $ 85,223 $ 82,782Plus: Unrealized gains on available-for-sale debt securities, net of tax (978) (2,148)Less: Additional tier 1 capital deductions - - Tier 1 Capital and CET1 Capital $ 84,245 $ 80,634 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per Share [Abstract] | |
Calculated Basic and Diluted Earnings Per Share | Years Ended December 31, 2021 2020Numerator – net income $ 6,187,000 $ 4,558,000 Denominator: Basic weighted average shares outstanding 5,885,005 5,955,327 Increase in weighted average shares outstanding due to: Stock options 2,859 -Diluted weighted average shares outstanding (1) 5,887,864 5,955,327 Earnings per share: Basic $ 1.05 $ 0.77 Diluted $ 1.05 $ 0.77 (1)Stock options to purchase 64,548 shares under the Stock Option Plan and 20,000 shares under the EIP at $14.38 were outstanding during 2020, 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, 2021 | |
Commitments to Extend Credit [Abstract] | |
Outstanding Commitments to Extend Credit | Contract Amount December 31, December 31, 2021 2020 (Dollars in thousands) Commitments to grant loans $ 61,234 $ 47,065 Unfunded commitments under lines of credit 73,387 66,134 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Statements of Financial Condition | December 31, 2021 2020 (Dollars in thousands)Assets Cash and due from banks $ 1,085 $ 1,414Investment in subsidiary 85,223 82,781ESOP loan receivable 1,420 1,477Other assets 274 275 Total assets $ 88,002 $ 85,947 Liabilities and Stockholders' Equity Other liabilities 26 23Total stockholders' equity 87,976 85,924 Total liabilities and stockholders' equity $ 88,002 $ 85,947 |
Statements of Income | Statements of Income For the Years Ended December 31, 2021 2020 (Dollars in thousands) Interest Income $ 112 $ 120Dividend distributed by bank subsidiary 3,000 2,500Other 3 -Total Income 3,115 2,620Non-interest Expenses 404 421Income before income taxes and equity in undistributed net income of subsidiary 2,711 2,199Income tax benefit (83) (84)Income before undistributed net income of subsidiary 2,794 2,283Equity in undistributed net income of subsidiary 3,393 2,275Net Income $ 6,187 $ 4,558 |
Statements of Comprehensive Income | Statements of Comprehensive Income For the Years Ended December 31, 2021 2020 (Dollars in thousands) Net Income $ 6,187 $ 4,558Other Comprehensive (Loss) Income, net of tax benefit (expense): Unrealized holding (loss) gains on securities available for sale of subsidiary, net of tax benefit (expense) 2021 $300; 2020 $(233) (1,122) 875Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense 2021 $11; 2020 $15 (48) (58)Total Other Comprehensive (Loss) Income (1,170) 817Total Comprehensive Income $ 5,017 $ 5,375 |
Statements of Cash Flows | Statements of Cash Flows For the Years Ended December 31, 2021 2020 (Dollars in thousands)Cash Flows from Operating Activities: Net income $ 6,187 $ 4,558Adjustments to reconcile net income to net cash provided by operating activities: ESOP shares committed to be released 117 102Stock based compensation expense 257 220Increase in other assets (218) (408)Increase (decrease) in other liabilities 3 (15)Equity in undistributed earnings of subsidiary (3,393) (2,275)Net Cash Provided by Operating Activities 2,953 2,182Cash Flows from Investing Activities: Payments received on ESOP loan 57 52Net Cash Provided by Investing Activities 57 52Cash Flows from Financing Activities: Purchase of treasury stock (2,255) (1,593)Cash dividends paid (1,084) (1,020)Net Cash Used in Financing Activities (3,339) (2,613)Net Decrease in Cash and Cash Equivalents (329) (379)Cash and Cash Equivalents - Beginning 1,414 1,793Cash and Cash Equivalents - Ending $ 1,085 $ 1,414 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive (Loss) Income [Abstract] | |
Tax Effects Allocated to Single Component of Other Comprehensive (Loss) Income | For the Years Ended December 31, 2021 For The Years Ended December 31, 2020 Pre-Tax Amount Tax Benefit Net of Tax Amount Pre-Tax Amount Tax (Expense) Benefit Net of Tax Amount (Dollars in thousands)Net unrealized (losses) gains on securities available for sale: Net unrealized (losses) gains arising during the period $ (1,422) $ 300 $ (1,122) $ 1,108 $ (233) $ 875 Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (59) 11 (48) (73) 15 (58)Total Other Comprehensive (Loss) Income $ (1,481) $ 311 $ (1,170) $ 1,035 $ (218) $ 817 |
Reclassification Out of Accumulated Other Comprehensive Income | Amounts Reclassified from Accumulated Details about Accumulated OtherOther Comprehensive IncomeAffected Line ItemComprehensive Incomefor the years ended December 31,on the Consolidated Components2021 2020Statements of Income (Dollars in thousands) Net unrealized (losses) gains on securities available for sale: Recovery on previously impaired investment securities$ (59) $ (73)Recovery on previously impaired investment securitiesProvision for income tax expense 11 15Income Tax ExpenseTotal reclassification for the period$ (48) $ (58)Net Income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 (Dollars in thousands) Non-Interest Income In-Scope of Topic 606: Debit card fees$ 873 $ 763 Service charges on deposit accounts 608 606 Fees and other service charges 147 130 Other 35 36 Non-interest Income (in-scope of Topic 606) 1,663 1,535 Non-interest Income (out of scope of Topic 606) 1,525 1,457 Total Non-Interest Income$ 3,188 $ 2,992 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 01, 2022 | Feb. 09, 2022 | Dec. 31, 2021 |
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 | 63.90% | ||
Cumulative cash dividend waived | $ 16.1 | ||
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 | 63.90% | ||
Dividends Waived [Member] | MHC [Member] | Subsequent Event [Member] | |||
Organization And Nature Of Operations [Line Items] | |||
Aggregate annual dividend per share | $ 0.68 | $ 0.68 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Foreclosed real estate | $ 123 | $ 58 |
Proceeds from sale of foreclosed real estate | 171 | 680 |
Net gain on sale of foreclosed real estate | 24 | 36 |
Total advertising expense | $ 602 | $ 671 |
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 |
COVID-19 (Details)
COVID-19 (Details) - COVID-19, CARES Act [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Number of loans approved for payment deferral | loan | 0 | |
Number of PPP loans originated | loan | 33 | 252 |
Number of PPP loans remained outstanding | loan | 9 | |
PPP loan principal amount | $ 11,400 | $ 26,900 |
Net PPP fees recognized including fees recognized upon forgiveness | 232 | 113 |
PPP loans outstanding | 4,600 | |
Net PPP fees remain unrecognized | 90 | |
PPP Loans Originated In 2020 [Member] | ||
PPP loans amount paid off or forgiven | 18,100 | $ 8,800 |
PPP Loans Originated In 2021 [Member] | ||
PPP loans amount paid off or forgiven | $ 6,800 | |
Minimum [Member] | ||
Loan deferrals period granted for deferral of principal and interest payments | 90 days | |
Maximum [Member] | ||
Loan deferrals period granted for deferral of principal and interest payments | 180 days | |
Number of loans approved for payment deferral | loan | 219 | |
Loans outstanding balances with payment deferrals | $ 103,100 | |
Loans balances with payment deferrals, percent of total loans | 19.60% |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)securityshares | Dec. 31, 2020USD ($)securityshares | |
Schedule of Investments [Line Items] | ||
Number of securities in unrealized losses less than twelve months category | security | 41 | |
Number of securities in unrealized losses twelve months or more category | security | 5 | |
Unrealized loss on equity securities | $ 33,000 | $ 15,000 |
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 | 29 | 31 |
Investment owned, at cost | $ 10,600,000 | $ 10,800,000 |
Investment owned, at fair value | $ 11,000,000 | $ 11,200,000 |
Municipal bonds [Member] | SecuritiesPledged As Collateral For Customer Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Investment owned balance, positions | security | 20 | 16 |
Investment owned, at cost | $ 6,000,000 | $ 4,200,000 |
Investment owned, at fair value | 6,200,000 | 4,400,000 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for sale securities sold | 0 | 0 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for sale securities sold | 0 | 0 |
Unrealized loss on equity securities | $ 33,000 | $ 15,000 |
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, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 87,581 | $ 76,536 |
Gross Unrealized Gains | 1,757 | 2,779 |
Gross Unrealized Losses | (522) | (30) |
Fair Value | 88,816 | 79,285 |
U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 2,009 | 2,010 |
Gross Unrealized Gains | 204 | 327 |
Fair Value | 2,213 | 2,337 |
Municipal bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 49,812 | 43,466 |
Gross Unrealized Gains | 1,085 | 1,430 |
Gross Unrealized Losses | (141) | (3) |
Fair Value | 50,756 | 44,893 |
Collateralized mortgage obligations - private label [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 14 | 16 |
Gross Unrealized Gains | 1 | |
Fair Value | 15 | 16 |
Collateralized mortgage obligations - government sponsored entities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 17,798 | 22,527 |
Gross Unrealized Gains | 209 | 549 |
Gross Unrealized Losses | (193) | (25) |
Fair Value | 17,814 | 23,051 |
Government National Mortgage Association [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 76 | 116 |
Gross Unrealized Gains | 7 | 11 |
Fair Value | 83 | 127 |
Federal National Mortgage Association [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 10,773 | 4,209 |
Gross Unrealized Gains | 53 | 130 |
Gross Unrealized Losses | (66) | |
Fair Value | 10,760 | 4,339 |
Federal Home Loan Mortgage Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 7,068 | 4,143 |
Gross Unrealized Gains | 87 | 152 |
Gross Unrealized Losses | (119) | (2) |
Fair Value | 7,036 | 4,293 |
Asset-backed securities - Private label [Member] | ||
Schedule of Investments [Line Items] | ||
Gross Unrealized Gains | 110 | 147 |
Fair Value | 110 | 147 |
Asset-backed securities - Government sponsored entities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 9 | 27 |
Gross Unrealized Gains | 1 | 3 |
Fair Value | 10 | 30 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 87,559 | 76,514 |
Gross Unrealized Gains | 1,757 | 2,749 |
Gross Unrealized Losses | (519) | (30) |
Fair Value | 88,797 | 79,233 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 22 | 22 |
Gross Unrealized Gains | 30 | |
Gross Unrealized Losses | (3) | |
Fair Value | $ 19 | $ 52 |
Investment Securities (Investme
Investment Securities (Investment in Debt Securities Gross Unrealized Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | $ 30,742 | $ 7,705 |
Less than 12 Months, Gross Unrealized Losses | (331) | (29) |
12 Months or More, Fair Value | 3,940 | 76 |
12 Months or More, Gross Unrealized Losses | (188) | (1) |
Fair Value | 34,682 | 7,781 |
Gross Unrealized Losses | (519) | (30) |
Municipal bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 9,601 | 539 |
Less than 12 Months, Gross Unrealized Losses | (120) | (3) |
12 Months or More, Fair Value | 857 | |
12 Months or More, Gross Unrealized Losses | (21) | |
Fair Value | 10,458 | 539 |
Gross Unrealized Losses | (141) | (3) |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 21,141 | 7,166 |
Less than 12 Months, Gross Unrealized Losses | (211) | (26) |
12 Months or More, Fair Value | 3,083 | 76 |
12 Months or More, Gross Unrealized Losses | (167) | (1) |
Fair Value | 24,224 | 7,242 |
Gross Unrealized Losses | $ (378) | $ (27) |
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, 2021 | Dec. 31, 2020 | |
Investment Securities [Abstract] | ||
Beginning balance | $ 221 | $ 294 |
Reductions: Receipt of cash flows on previously recorded OTTI | (59) | (73) |
Ending balance | $ 162 | $ 221 |
Investment Securities (Schedule
Investment Securities (Scheduled Contractual Maturities Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 87,581 | $ 76,536 |
Fair Value | 88,816 | 79,285 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 22 | $ 22 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than one year- Amortized Cost | 220 | |
After one year through five years - Amortized Cost | 3,877 | |
After five years through ten years - Amortized Cost | 9,948 | |
After ten years - Amortized Cost | 37,776 | |
Amortized Cost | 87,559 | |
Less than one year- Fair Value | 220 | |
After one year through five years - Fair Value | 3,894 | |
After five years through ten years - Fair Value | 10,235 | |
After ten years - Fair Value | 38,620 | |
Fair Value | 88,797 | |
Debt Securities [Member] | Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Other securities - Amortized Cost | 35,729 | |
Other securities - Fair Value | 35,708 | |
Debt Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Other securities - Amortized Cost | 9 | |
Other securities - Fair Value | $ 120 |
Loans Receivable (Narrative) (D
Loans Receivable (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 44,600 | $ 37,300 |
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 | 114,300 | |
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 | $ 119,000 | |
Concentration of credit risk, percent | 130.30% | |
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 | $ 53,700 | |
Concentration of credit risk, percent | 58.80% | |
Other Loans: Commercial [Member] | SBA PPP Loans Under Cares Act [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
PPP loans outstanding | $ 4,600 | $ 18,100 |
Loan fees | 90 | |
Other 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 | $ 24,000 | |
Concentration of credit risk, percent | 26.30% |
Loans Receivable (Schedule of L
Loans Receivable (Schedule of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 519,779 | $ 526,632 | |
Allowance for loan losses | (6,118) | (5,857) | $ (4,267) |
Net deferred loan costs | 3,545 | 3,368 | |
Loans Receivable, Net | 517,206 | 524,143 | |
Total Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 495,246 | 484,507 | |
Real Estate Loans Including One-To Four-Family Construction Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 158,826 | 150,660 | |
Allowance for loan losses | (383) | (346) | (436) |
Real Estate Loans: Home Equity [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 48,071 | 47,603 | |
Allowance for loan losses | (211) | (172) | (129) |
Real Estate Loans: Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 266,525 | 257,321 | |
Allowance for loan losses | (4,377) | (4,052) | (2,682) |
Real Estate Loans: Construction - Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 21,824 | 28,923 | |
Allowance for loan losses | (360) | (434) | (388) |
Other Loans: Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 23,216 | 40,772 | |
Allowance for loan losses | (531) | (676) | (478) |
Other Loans: Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 1,317 | 1,353 | |
Allowance for loan losses | $ (32) | $ (27) | $ (26) |
Allowance for Loan Losses (Narr
Allowance for Loan Losses (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Past Due [Line Items] | ||
Loan commitments to lend additional funds to TDR | $ | $ 0 | $ 0 |
Loans restructured and classified as TDRs | 10 | 7 |
Foreclosed real estate property | $ | $ 123,000 | $ 58,000 |
Real Estate Loans: One-to-Four Family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans restructured and classified as TDRs | 7 | 6 |
Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans restructured and classified as TDRs | 2 | 1 |
Real Estate Loans: Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans restructured and classified as TDRs | 1 | |
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Mortgage loans in process of foreclosure | $ | $ 1,700,000 | $ 1,800,000 |
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, 2021 | Dec. 31, 2020 | |
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | $ 5,857 | $ 4,267 |
Charge-offs | (478) | (79) |
Recoveries | 89 | 44 |
Provision (credit) | 650 | 1,625 |
Balance, ending | 6,118 | 5,857 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 6,118 | 5,857 |
Ending balance: Gross Loans Receivable | 519,779 | 526,632 |
Loans Receivable: Ending balance: individually evaluated for impairment | 7,287 | 253 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 512,492 | 526,379 |
Deferred loan costs | 3,545 | 3,368 |
Real Estate Loans Including One-To Four-Family Construction Loans [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | 346 | 436 |
Charge-offs | (12) | (26) |
Recoveries | 49 | 23 |
Provision (credit) | (87) | |
Balance, ending | 383 | 346 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 383 | 346 |
Ending balance: Gross Loans Receivable | 158,826 | 150,660 |
Loans Receivable: Ending balance: individually evaluated for impairment | 261 | 238 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 158,565 | 150,422 |
Real Estate Loans: Home Equity [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | 172 | 129 |
Charge-offs | (6) | |
Recoveries | 2 | 2 |
Provision (credit) | 37 | 47 |
Balance, ending | 211 | 172 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 211 | 172 |
Ending balance: Gross Loans Receivable | 48,071 | 47,603 |
Loans Receivable: Ending balance: individually evaluated for impairment | 24 | 15 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 48,047 | 47,588 |
Real Estate Loans: Commercial [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | 4,052 | 2,682 |
Charge-offs | (427) | |
Recoveries | 6 | 1 |
Provision (credit) | 746 | 1,369 |
Balance, ending | 4,377 | 4,052 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 4,377 | 4,052 |
Ending balance: Gross Loans Receivable | 266,525 | 257,321 |
Loans Receivable: Ending balance: individually evaluated for impairment | 7,002 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 259,523 | 257,321 |
Real Estate Loans: Construction - Commercial [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | 434 | 388 |
Provision (credit) | (74) | 46 |
Balance, ending | 360 | 434 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 360 | 434 |
Ending balance: Gross Loans Receivable | 21,824 | 28,923 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 21,824 | 28,923 |
Other Loans: Commercial [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | 676 | 478 |
Charge-offs | (5) | |
Recoveries | 23 | 4 |
Provision (credit) | (168) | 199 |
Balance, ending | 531 | 676 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 531 | 676 |
Ending balance: Gross Loans Receivable | 23,216 | 40,772 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 23,216 | 40,772 |
Other Loans: Consumer [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | 27 | 26 |
Charge-offs | (39) | (42) |
Recoveries | 9 | 14 |
Provision (credit) | 35 | 29 |
Balance, ending | 32 | 27 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 32 | 27 |
Ending balance: Gross Loans Receivable | 1,317 | 1,353 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,317 | 1,353 |
Unallocated Financing Receivables [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Balance, beginning | 150 | 128 |
Charge-offs | ||
Recoveries | ||
Provision (credit) | 74 | 22 |
Balance, ending | 224 | 150 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 224 | $ 150 |
Ending balance: Gross Loans Receivable | ||
Loans Receivable: Ending balance: individually evaluated for impairment | ||
Loans Receivable: Ending balance: collectively evaluated for impairment |
Allowance for Loan Losses (Su_2
Allowance for Loan Losses (Summary of Information Pertaining to Impaired Loans ) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with no related allowance | $ 7,287 | $ 253 |
Unpaid principal balance, with no related allowance | 7,287 | 253 |
Average recorded investment, with no related allowance | 9,080 | 322 |
Interest income recognized, with no related allowance | 233 | 16 |
Real Estate Loans: One-to-Four Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with no related allowance | 261 | 238 |
Unpaid principal balance, with no related allowance | 261 | 238 |
Average recorded investment, with no related allowance | 269 | 306 |
Interest income recognized, with no related allowance | 13 | 15 |
Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with no related allowance | 24 | 15 |
Unpaid principal balance, with no related allowance | 24 | 15 |
Average recorded investment, with no related allowance | 25 | 16 |
Interest income recognized, with no related allowance | 1 | $ 1 |
Real Estate Loans: Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with no related allowance | 7,002 | |
Unpaid principal balance, with no related allowance | 7,002 | |
Average recorded investment, with no related allowance | 8,786 | |
Interest income recognized, with no related allowance | $ 219 |
Allowance for Loan Losses (Anal
Allowance for Loan Losses (Analysis of Past Due Loans and Non-Accruing Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 3,189 | $ 3,735 |
Total Loans Receivable | 519,779 | 526,632 |
Loans on Non-Accrual | 9,521 | 3,101 |
Real Estate Loans: One-to-Four Family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,227 | 2,833 |
Total Loans Receivable | 158,826 | 150,660 |
Loans on Non-Accrual | 1,878 | 2,392 |
Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 943 | 882 |
Total Loans Receivable | 48,071 | 47,603 |
Loans on Non-Accrual | 636 | 706 |
Real Estate Loans: Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 266,525 | 257,321 |
Loans on Non-Accrual | 7,002 | |
Real Estate Loans: Construction - Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 21,824 | 28,923 |
Other Loans: Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 23,216 | 40,772 |
PPP loans outstanding | $ 4,600 | $ 18,100 |
PPP loans guaranteed by SBA, percent | 100.00% | 100.00% |
Other Loans: Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 19 | $ 20 |
Total Loans Receivable | 1,317 | 1,353 |
Loans on Non-Accrual | 5 | 3 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 645 | 1,105 |
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 | 373 | 920 |
Financial Asset, 30 to 59 Days Past Due [Member] | Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 265 | 173 |
Financial Asset, 30 to 59 Days Past Due [Member] | Other Loans: Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7 | 12 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 911 | 620 |
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 | 758 | 552 |
Financial Asset, 60 to 89 Days Past Due [Member] | Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 146 | 64 |
Financial Asset, 60 to 89 Days Past Due [Member] | Other Loans: Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7 | 4 |
Financial Asset, 90 Days or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,633 | 2,010 |
Financial Asset, 90 Days or More Past Due [Member] | Real Estate Loans: One-to-Four Family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,096 | 1,361 |
Financial Asset, 90 Days or More Past Due [Member] | Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 532 | 645 |
Financial Asset, 90 Days or More Past Due [Member] | Other Loans: Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5 | 4 |
Financial Asset, Current Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 516,590 | 522,897 |
Financial Asset, Current Due [Member] | Real Estate Loans: One-to-Four Family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 156,599 | 147,827 |
Financial Asset, Current Due [Member] | Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 47,128 | 46,721 |
Financial Asset, Current Due [Member] | Real Estate Loans: Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 266,525 | 257,321 |
Financial Asset, Current Due [Member] | Real Estate Loans: Construction - Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 21,824 | 28,923 |
Financial Asset, Current Due [Member] | Other Loans: Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 23,216 | 40,772 |
Financial Asset, Current Due [Member] | Other Loans: Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 1,298 | $ 1,333 |
Allowance for Loan Losses (Su_3
Allowance for Loan Losses (Summary of Internal Loan Grades Applied to Loan Portfolio) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan Losses [Line Items] | ||
Total | $ 519,779 | $ 526,632 |
Pass/ Performing [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 497,697 | 503,141 |
Special Mention [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 8,424 | 15,224 |
Substandard [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 13,653 | 8,267 |
Loss [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 5 | |
Real Estate Loans: One-to-Four Family [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 158,826 | 150,660 |
Real Estate Loans: One-to-Four Family [Member] | Pass/ Performing [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 156,931 | 148,291 |
Real Estate Loans: One-to-Four Family [Member] | Substandard [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 1,895 | 2,369 |
Real Estate Loans: Home Equity [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 48,071 | 47,603 |
Real Estate Loans: Home Equity [Member] | Pass/ Performing [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 47,167 | 46,543 |
Real Estate Loans: Home Equity [Member] | Substandard [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 904 | 1,060 |
Real Estate Loans: Commercial [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 266,525 | 257,321 |
Real Estate Loans: Commercial [Member] | Pass/ Performing [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 252,391 | 242,527 |
Real Estate Loans: Commercial [Member] | Special Mention [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 6,682 | 14,202 |
Real Estate Loans: Commercial [Member] | Substandard [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 7,452 | 592 |
Deemed to be impaired | 7,000 | |
Real Estate Loans: Construction - Commercial [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 21,824 | 28,923 |
Real Estate Loans: Construction - Commercial [Member] | Pass/ Performing [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 21,824 | 28,923 |
Other Loans: Commercial [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 23,216 | 40,772 |
PPP loans outstanding | $ 4,600 | $ 18,100 |
PPP loans guaranteed by SBA, percent | 100.00% | 100.00% |
Other Loans: Commercial [Member] | Pass/ Performing [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | $ 18,076 | $ 35,507 |
PPP loans outstanding | $ 4,600 | $ 18,100 |
PPP loans guaranteed by SBA, percent | 100.00% | 100.00% |
Other Loans: Commercial [Member] | Special Mention [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | $ 1,742 | $ 1,022 |
Other Loans: Commercial [Member] | Substandard [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 3,398 | 4,243 |
Other Loans: Consumer [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 1,317 | 1,353 |
Other Loans: Consumer [Member] | Pass/ Performing [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 1,308 | 1,350 |
Other Loans: Consumer [Member] | Substandard [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | 4 | $ 3 |
Other Loans: Consumer [Member] | Loss [Member] | ||
Allowance for Loan Losses [Line Items] | ||
Total | $ 5 |
Allowance for Loan Losses (Su_4
Allowance for Loan Losses (Summary of Loans Classified as TDRs) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 10 | 7 |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 15 | |
Performing Financial Instruments [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Recorded Investment | $ | $ 7,287 | $ 253 |
Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 3 | 1 |
Recorded Investment | $ | $ 7,028 | $ 18 |
Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 7 | 6 |
Recorded Investment | $ | $ 259 | $ 235 |
Real Estate Loans: One-to-Four Family [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 7 | 6 |
Real Estate Loans: One-to-Four Family [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Recorded Investment | $ | $ 261 | $ 238 |
Real Estate Loans: One-to-Four Family [Member] | Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | 1 |
Recorded Investment | $ | $ 11 | $ 18 |
Real Estate Loans: One-to-Four Family [Member] | Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 6 | 5 |
Recorded Investment | $ | $ 250 | $ 220 |
Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 2 | 1 |
Real Estate Loans: Home Equity [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 15 | |
Real Estate Loans: Home Equity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Recorded Investment | $ | $ 24 | $ 15 |
Real Estate Loans: Home Equity [Member] | Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Recorded Investment | $ | $ 15 | |
Real Estate Loans: Home Equity [Member] | Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | 1 |
Recorded Investment | $ | $ 9 | $ 15 |
Real Estate Loans: Commercial [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Real Estate Loans: Commercial [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Recorded Investment | $ | $ 7,002 | |
Real Estate Loans: Commercial [Member] | Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Recorded Investment | $ | $ 7,002 |
Allowance for Loan Losses (Acti
Allowance for Loan Losses (Activity in Loans First Deemed to be TDRs) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 10 | 7 |
Loans First Deemed To Be TDRs [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 3 | 4 |
Pre-Modification Outstanding Recorded Investment | $ | $ 7,531 | $ 166 |
Post-Modification Outstanding Recorded Investment | $ | $ 7,108 | $ 166 |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | |
Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 3 | 1 |
Real Estate Loans: One-to-Four Family [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 7 | 6 |
Real Estate Loans: One-to-Four Family [Member] | Loans First Deemed To Be TDRs [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | $ | $ 38 | $ 150 |
Post-Modification Outstanding Recorded Investment | $ | $ 38 | $ 150 |
Real Estate Loans: One-to-Four Family [Member] | Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | 1 |
Real Estate Loans: Home Equity [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 2 | 1 |
Real Estate Loans: Home Equity [Member] | Loans First Deemed To Be TDRs [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ | $ 10 | $ 16 |
Post-Modification Outstanding Recorded Investment | $ | $ 10 | $ 16 |
Real Estate Loans: Home Equity [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | |
Real Estate Loans: Home Equity [Member] | Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | |
Real Estate Loans: Commercial [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | |
Real Estate Loans: Commercial [Member] | Loans First Deemed To Be TDRs [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | |
Pre-Modification Outstanding Recorded Investment | $ | $ 7,483 | |
Post-Modification Outstanding Recorded Investment | $ | $ 7,060 | |
Real Estate Loans: Commercial [Member] | Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Premises and Equipment [Abstract] | ||
Depreciation and amortization of premises and equipment | $ 865 | $ 840 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 21,432 | $ 20,812 |
Accumulated depreciation | (12,696) | (11,838) |
Premises and equipment, net | 8,736 | 8,974 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 1,209 | 1,209 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 13,022 | 12,905 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 7,201 | $ 6,698 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Time Deposit, $250,000 or More | $ 27.3 | $ 28.2 |
Deposits of directors, executive officers and their affiliates | $ 11.1 | $ 9.1 |
Deposits (Schedule of Deposits)
Deposits (Schedule of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Demand deposits: Non-interest bearing | $ 110,676 | $ 91,946 |
Demand deposits: Interest bearing | 95,104 | 84,839 |
Money market accounts | 175,886 | 158,505 |
Savings accounts | 74,155 | 65,643 |
Time deposits | 137,363 | 159,326 |
Total Deposits | $ 593,184 | $ 560,259 |
Weighted Average Rate - Demand deposits: Interest bearing | 0.09% | 0.12% |
Weighted Average Rate - Money market accounts | 0.20% | 0.26% |
Weighted Average Rate - Savings accounts | 0.05% | 0.06% |
Weighted Average Rate - Time deposits | 0.73% | 1.38% |
Weighted Average Rate on Total Deposits | 0.25% | 0.49% |
Deposits (Schedule of Maturitie
Deposits (Schedule of Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
2022 | $ 72,588 | |
2023 | 18,802 | |
2024 | 12,316 | |
2025 | 10,939 | |
2026 | 22,718 | |
Time deposits | $ 137,363 | $ 159,326 |
Deposits (Schedule of Interest
Deposits (Schedule of Interest Expense on Deposits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits [Abstract] | ||
Interest bearing checking accounts | $ 75 | $ 105 |
Money market accounts | 347 | 919 |
Savings accounts | 38 | 35 |
Time deposits | 1,634 | 2,609 |
Interest expense on deposits | $ 2,094 | $ 3,668 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 0 | $ 0 |
Federal home loan bank maximum lending value | 114,300,000 | 109,800,000 |
Federal home loan bank advances outstanding | 22,000,000 | 29,800,000 |
Federal Reserve Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
Book value of securities pledged as collateral to borrow | 10,600,000 | 10,800,000 |
Fair value of securities pledged as collateral | 11,000,000 | 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 | 42,000,000 | |
Line of credit outstanding balances | 0 | $ 0 |
Unsecured Debt [Member] | Correspondent Bank [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 40,000,000 | |
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, 2021 | Dec. 31, 2020 |
Borrowings [Abstract] | ||
Amount Outstanding, Maturity in Year One | $ 2,000 | $ 7,800 |
Amount Outstanding, Maturity in Year Two | 4,950 | 2,000 |
Amount Outstanding, Maturity in Year Three | 13,000 | 4,950 |
Amount Outstanding, Maturity in Year Four | 2,000 | 13,000 |
Amount Outstanding, Maturity in Year Five | 2,000 | |
Long-term Federal Home Loan Bank Advances, Total | $ 21,950 | $ 29,750 |
Weighted Average Interest Rate, Maturity in Year One | 2.18% | 2.30% |
Weighted Average Interest Rate, Maturity in Year Two | 2.31% | 2.18% |
Weighted Average Interest Rate, Maturity in Year Three | 1.73% | 2.31% |
Weighted Average Interest Rate, Maturity in Year Four | 1.94% | 1.73% |
Weighted Average Interest Rate, Maturity in Year Five | 1.94% | |
Long-term Federal Home Loan Bank Advances, Weighted Average Interest Rate | 1.92% | 2.02% |
Leases Obligations (Narrative)
Leases Obligations (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)agreementitem | Dec. 31, 2020USD ($)agreementitem | |
Operating lease extention options | 5 years | |
Number of branch offices under operating lease | item | 2 | 2 |
Operating lease ROU assets | $ 511 | $ 645 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets Standard Label | Other assets Standard Label |
Operating lease liabilities | $ 534 | $ 675 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Operating lease costs | $ 150 | $ 150 |
Number of long-term finance lease agreement | agreement | 1 | 1 |
Outstanding balance of finance lease | $ 623 | $ 686 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Finance lease weighted-average discount rate | 9.22% | 9.22% |
Finance lease remaning term | 6 years 6 months | |
Premises and equipment | $ 21,432 | $ 20,812 |
Accumulated depreciation | 12,696 | 11,838 |
Finance Lease [Member] | ||
Premises and equipment | 1,100 | 1,100 |
Accumulated depreciation | $ 673 | $ 631 |
Lease Obligations (Summary of I
Lease Obligations (Summary of Information Related to Leases Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 157 | $ 145 |
Operating cash flows from finance leases | $ 126 | $ 126 |
Weighted-average remaining lease term, operating leases, in years | 3 years 7 months 6 days | 4 years 7 months 6 days |
Weighted-average discount rate – operating leases | 2.61% | 2.61% |
Lease Obligations (Summary of M
Lease Obligations (Summary of Maturity of Remaining Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 157 | |
2023 | 157 | |
2024 | 157 | |
2025 | 90 | |
Total Lease Payments | 561 | |
Less: Amounts representing interest | (27) | |
Present value of lease liabilities | 534 | $ 675 |
Finance Lease | ||
2022 | 126 | |
2023 | 131 | |
2024 | 136 | |
2025 | 136 | |
2026 | 136 | |
2027 and thereafter | 204 | |
Total Lease Payments | 869 | |
Less: Amounts representing interest | (246) | |
Present value of lease liabilities | $ 623 | $ 686 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal income tax at statutory rate | 21.00% | 21.00% |
Deferred tax asset valuation allowance | $ 452 | $ 1,048 |
Amount of unrecognized deferred tax liability, bad debt reserve | 2,200 | 2,200 |
Deferred Tax Asset for 2011 Other Than Temporary Impairment Charge [Member] | ||
Deferred tax asset valuation allowance | 129 | |
Anticipated Net Operating Loss Expiration Dates Of 2035 Through 2041 [Member] | ||
Deferred tax asset valuation allowance | $ 323 | |
IRS [Member] | Tax Year 2018 [Member] | ||
Tax year subject to examination | 2018 | |
IRS [Member] | Tax Year 2019 [Member] | ||
Tax year subject to examination | 2019 | |
IRS [Member] | Tax Year 2020 [Member] | ||
Tax year subject to examination | 2020 | |
New York State Taxation [Member] | ||
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] | ||
(Decrease) Increase in deferred tax asset valuation | $ (597) | $ 214 |
New York State Taxation [Member] | Tax Year 2019 [Member] | ||
Tax year subject to examination | 2019 | |
New York State Taxation [Member] | Tax Year 2020 [Member] | ||
Tax year subject to examination | 2020 |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision for Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Current: Federal | $ 1,063 | $ 1,311 |
Current: State | 8 | 5 |
Total Current | 1,071 | 1,316 |
Deferred: Federal | 217 | 492 |
Total Deferred | 217 | (492) |
Tax Expense Benefit | $ 1,288 | $ 1,808 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Statutory Federal Income Tax) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Federal income tax at statutory rate | 21.00% | 21.00% |
State benefit, net of federal expense | 8.10% | (3.90%) |
Tax-exempt interest income | (3.10%) | (4.70%) |
Deferred tax valuation allowance | (8.00%) | 4.00% |
Life insurance income | (1.20%) | (1.90%) |
Other | 0.40% | 0.80% |
Total Income Tax Expense | 17.20% | 15.30% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes [Abstract] | ||
Deferred tax assets: Allowance for loan losses | $ 1,579 | $ 1,508 |
Deferred tax assets: Deferred compensation | 1,237 | 1,134 |
Deferred tax assets: Net Operating Loss ("NOL") | 52 | 626 |
Deferred tax assets: Right of use liability | 110 | 171 |
Deferred tax assets: Accrued expenses | 145 | 170 |
Deferred tax assets: Impairment of equity investments | 129 | 128 |
Deferred tax assets: Stock options granted | 21 | 18 |
Deferred tax assets: Other | 21 | 66 |
Total Deferred Tax Assets | 3,294 | 3,821 |
Deferred tax liabilities: Deferred loan origination costs | (915) | (867) |
Deferred tax liabilities: Unrealized gains on securities available for sale | (260) | (571) |
Deferred tax liabilities: Depreciation | (622) | (394) |
Deferred tax liabilities: Right of use assets | (107) | (166) |
Deferred Tax Liabilities: Prepaid Expenses | (106) | (94) |
Deferred tax liabilities: Other | (57) | |
Total Deferred Tax Liabilities | (2,067) | (2,092) |
Deferred tax valuation allowance | (452) | (1,048) |
Net Deferred Tax Assets | $ 775 | $ 681 |
Employee and Director Benefit_2
Employee and Director Benefit Plans (Details) $ in Thousands | Mar. 29, 2018USD ($)itememployee | May 18, 2016 | Jan. 27, 2016 | Dec. 31, 2021USD ($)itememployee | Dec. 31, 2020USD ($) |
401(k) [Member] | |||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||
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 | $ 529 | $ 543 | |||
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 | $ 7,800 | 7,700 | |||
Benefit obligation | $ 582 | $ 702 | |||
Discount rate for projected benefit obligation | 6.17% | 6.17% | |||
Benefit plan postretirement benefit payout period | 15 years | ||||
Compensation cost | $ 42 | $ 50 | |||
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 | $ 2,500 | $ 2,400 | |||
Discount rate for projected benefit obligation | 6.17% | 6.17% | |||
Supplemental Executive Retirement Plan - 2012 Plan [Member] | |||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||
Benefit obligation | $ 1,100 | $ 902 | |||
Discount rate for projected benefit obligation | 5.12% | 5.12% | |||
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 | $ 11,700 | $ 11,500 | |||
Compensation cost | 489 | 427 | |||
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] | |||||
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 | 3,400 | 3,300 | |||
Benefit obligation | $ 370 | $ 258 | |||
Discount rate for projected benefit obligation | 5.12% | 5.12% | |||
Aggregate amount payable under retention agreement | $ 1,400 | ||||
Compensation cost | $ 112 | $ 102 | |||
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, 2021USD ($)itemshares | Dec. 31, 2020USD ($)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 | |||
ESOP compensation expense | $ | $ 117 | $ 102 | ||
ESOP, shares earned | 7,935 | 7,935 | ||
2006 Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ | $ 27 | $ 34 | ||
Stock option award vesting period | 5 years | |||
Stock options outstanding intrinsic value | $ | $ 34 | |||
Stock options exercised, shares | ||||
Stock awards available for grant, shares | 0 | |||
2006 Recognition and Retention Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ | $ 19 | $ 24 | ||
Share-based compensation number of stock shares vested | 1,618 | 1,637 | ||
Number of RRP shares vested or distributed to eligible participants | 119,025 | |||
2012 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation number of stock shares vested | 4,656 | 5,513 | ||
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 | $ | $ 1,400 | $ 2,600 | ||
ESOP, shares acquired | 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 | $ | $ 1,700 | |||
ESOP, number of allocated shares | 83,408 | 83,781 | ||
ESOP, number of unallocated shares | 111,088 | 119,025 | ||
ESOP compensation expense | $ | $ 117 | $ 102 | ||
ESOP, shares earned | 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 | $ | $ 202 | $ 151 | ||
Unrecognized compensation cost related to options | $ | $ 255 | |||
Unrecognized compensation cost, recognition period | 26 months | |||
Shares vested or distributed to eligible participants | 93,741 | |||
Stock Option [Member] | 2012 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ | $ 9 | 11 | ||
Stock options outstanding intrinsic value | $ | $ 10 | |||
Stock awards available for grant, shares | 0 | |||
Non-Interest Expense Section [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ | $ 374 | $ 322 | ||
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 | 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 | 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 | 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 | 20,000 |
Stock-based Compensation (Summa
Stock-based Compensation (Summary of Status of Stock Option Plan) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at beginning of year, Weighted Average Exercise Price | $ 14.38 | $ 14.38 |
Outstanding at end of period, Weighted Average Exercise Price | $ 14.38 | |
2006 Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at beginning of year | 64,548 | 64,548 |
Granted | ||
Exercised | ||
Outstanding at end of period | 64,548 | 64,548 |
Options exercisable at end of period | 64,548 | 51,636 |
Outstanding at beginning of year, Weighted Average Exercise Price | $ 14.38 | $ 14.38 |
Outstanding at end of period, Weighted Average Exercise Price | 14.38 | 14.38 |
Options exercisable at end of period, Weighted Average Exercise Price | $ 14.38 | $ 14.38 |
Options Outstanding at end of period, Remaining Contractual Life | 4 years 9 months 18 days | 5 years 9 months 18 days |
Options Exercisable at end of period, Remaining Contractual Life | 4 years 9 months 18 days | 5 years 9 months 18 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 |
Outstanding at end of period | 20,000 | 20,000 |
Options exercisable at end of period | 20,000 | 15,998 |
Outstanding at beginning of year, Weighted Average Exercise Price | $ 14.38 | |
Outstanding at end of period, Weighted Average Exercise Price | 14.38 | $ 14.38 |
Options exercisable at end of period, Weighted Average Exercise Price | $ 14.38 | $ 14.38 |
Options Outstanding at end of period, Remaining Contractual Life | 4 years 9 months 18 days | 5 years 9 months 18 days |
Options Exercisable at end of period, Remaining Contractual Life | 4 years 9 months 18 days | 5 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, 2021 | Dec. 31, 2020 | |
2006 Recognition and Retention Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested shares outstanding at beginning of year | 1,618 | 3,255 |
Granted | ||
Vested | (1,618) | (1,637) |
Unvested shares outstanding at end of period | 1,618 | |
Unvested shares outstanding at beginning of year, Weighted Average Grant Price | $ 14.38 | $ 14.37 |
Granted, Weighted Average Grant Price | ||
Vested, Weighted Average Grant Price | $ 14.38 | 14.37 |
Unvested shares outstanding at end of period, Weighted Average Grant Price | $ 14.38 | |
2012 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested shares outstanding at beginning of year | 14,985 | |
Granted | 20,958 | 20,830 |
Vested | (4,656) | (5,513) |
Forfeited | (1,792) | (332) |
Unvested shares outstanding at end of period | 29,495 | 14,985 |
Unvested shares outstanding at beginning of year, Weighted Average Grant Price | $ 15.39 | |
Granted, Weighted Average Grant Price | 15.22 | $ 15.42 |
Vested, Weighted Average Grant Price | 15.65 | 15.51 |
Forfeited, Weighted average Grant Price | 15.25 | 15.39 |
Unvested shares outstanding at end of period, Weighted Average Grant Price | $ 15.24 | $ 15.39 |
Stock-based Compensation (Sch_2
Stock-based Compensation (Schedule of Awards Granted ) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | $ 15.22 | $ 15.42 |
Restricted Stock [Member] | 2012 Equity Incentive Plan [Member] | February 24, 2021 [Member] | Non Employee Directors and Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Restricted Stock Awards | 4,656 | |
Percentage of Awards Vesting | 100.00% | |
Fair Value per Share of Award on Grant Date | $ 15.65 | |
Restricted Stock [Member] | 2012 Equity Incentive Plan [Member] | March 24, 2021 [Member] | Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Restricted Stock Awards | 16,302 | |
Percentage of Awards Vesting | 100.00% | |
Fair Value per Share of Award on Grant Date | $ 15.10 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - Foreclosed Real Estate [Member] - Significant Unobservable Inputs (Level 3) [Member] - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded investment, with related allowance | $ 73 | $ 67 |
Impaired financing receivable, related allowance | $ 38 | $ 9 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Fair Value of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | $ 88,816 | $ 79,285 |
Derivative, Fair Value | (60) | (259) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 19 | 52 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 88,797 | 79,233 |
Derivative, Fair Value | (60) | (259) |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 2,213 | 2,337 |
Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 50,756 | 44,893 |
Collateralized mortgage obligations - private label [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 15 | 16 |
Collateralized mortgage obligations - government sponsored entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 17,814 | 23,051 |
Asset-backed securities - Private label [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 110 | 147 |
Asset-backed securities - Government sponsored entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 10 | 30 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 88,797 | 79,233 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 19 | 52 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 88,816 | 79,285 |
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] | ||
Securities | 19 | 52 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 88,797 | 79,233 |
Fair Value, Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 2,213 | 2,337 |
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] | ||
Securities | 2,213 | 2,337 |
Fair Value, Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 50,756 | 44,893 |
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] | ||
Securities | 50,756 | 44,893 |
Fair Value, Recurring [Member] | Collateralized mortgage obligations - private label [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 15 | 16 |
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] | ||
Securities | 15 | 16 |
Fair Value, Recurring [Member] | Collateralized mortgage obligations - government sponsored entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 17,814 | 23,051 |
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] | ||
Securities | 17,814 | 23,051 |
Fair Value, Recurring [Member] | Government National Mortgage Association [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 83 | 127 |
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] | ||
Securities | 83 | 127 |
Fair Value, Recurring [Member] | Federal National Mortgage Association [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 10,760 | 4,339 |
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] | ||
Securities | 10,760 | 4,339 |
Fair Value, Recurring [Member] | Federal Home Loan Mortgage Corporation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 7,036 | 4,293 |
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] | ||
Securities | 7,036 | 4,293 |
Fair Value, Recurring [Member] | Asset-backed securities - Private label [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 110 | 147 |
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] | ||
Securities | 110 | 147 |
Fair Value, Recurring [Member] | Asset-backed securities - Government sponsored entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 10 | 30 |
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] | ||
Securities | 10 | 30 |
Fair Value, Recurring [Member] | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 88,797 | 79,233 |
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] | ||
Securities | 88,797 | 79,233 |
Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities | 19 | 52 |
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] | ||
Securities | 19 | 52 |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, Fair Value | (60) | (259) |
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 | $ (60) | $ (259) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Assets Measured at Fair Value on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Foreclosed real estate | $ 123 | $ 58 |
Fair Value, Nonrecurring [Member] | ||
Foreclosed real estate | 35 | 58 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Foreclosed real estate | 35 | 58 |
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Estimate | 35 | $ 58 |
Fair Value, Nonrecurring [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Estimate | 220 | |
Fair Value, Nonrecurring [Member] | Mortgage Servicing Rights [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Estimate | $ 220 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Additional Quantitative Information About Assets Measured at Fair Value) (Details) - Fair Value, Nonrecurring [Member] $ in Thousands | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Foreclosed Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Estimate | $ | $ 35 | $ 58 |
Foreclosed Real Estate [Member] | Measurement Input, Direct Disposal Costs [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Measurement Input | 0.0700 | 0.0700 |
Foreclosed Real Estate [Member] | Measurement Input, Direct Disposal Costs [Member] | Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Measurement Input | 0.0700 | 0.0700 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Estimate | $ | $ 220 | |
Mortgage Servicing Rights [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Estimate | $ | $ 220 | |
Mortgage Servicing Rights [Member] | Measurement Input, Servicing Fees And Costs [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Measurement Input | 0.0010 | |
Mortgage Servicing Rights [Member] | Measurement Input, Servicing Fees And Costs [Member] | Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Measurement Input | 0.0010 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Carrying Amount and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets: Cash and cash equivalents | $ 67,585 | $ 42,975 |
Financial assets: Securities | 88,816 | 79,285 |
Financial assets: Federal Home Loan Bank stock | 1,606 | 1,905 |
Financial assets: Loans receivable, net | 504,018 | 519,551 |
Financial assets: Accrued interest receivable | 2,483 | 2,987 |
Financial assets: Mortgage Servicing Rights | 220 | |
Financial liabilities: Deposits | 596,273 | 565,655 |
Financial liabilities: Long-term debt | 22,073 | 30,811 |
Financial liabilities: Accrued interest payable | 55 | 70 |
Financial liabilities: Interest rate swap | 60 | 259 |
Financial assets: Cash and cash equivalents, Carrying Amount | 67,585 | 42,975 |
Financial assets: Federal Home Loan Bank stock, Carrying Amount | 1,606 | 1,905 |
Financial assets: Loans receivable, net, Carrying Amount | 517,206 | 524,143 |
Financial assets: Accrued interest receivable, Carrying Amount | 2,483 | 2,987 |
Financial assets: Mortgage Servicing Rights, Carrying Amount | 220 | |
Financial liabilities: Deposits, Carrying Amount | 593,184 | 560,259 |
Financial liabilities: Long-term debt, Carrying Amount | 21,950 | 29,750 |
Financial liabilities: Accrued interest payable, Carrying Amount | 55 | 70 |
Financial liabilities: Interest rate swap, Carrying Amount | 60 | 259 |
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 | 67,585 | 42,975 |
Financial assets: Securities | 19 | 52 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets: Securities | 88,797 | 79,233 |
Financial assets: Federal Home Loan Bank stock | 1,606 | 1,905 |
Financial assets: Accrued interest receivable | 2,483 | 2,987 |
Financial liabilities: Deposits | 596,273 | 565,655 |
Financial liabilities: Long-term debt | 22,073 | 30,811 |
Financial liabilities: Accrued interest payable | 55 | 70 |
Financial liabilities: Interest rate swap | 60 | 259 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets: Loans receivable, net | 504,018 | $ 519,551 |
Financial assets: Mortgage Servicing Rights | $ 220 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Narrative ) (Details) $ in Thousands | Jan. 01, 2022 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020 |
Tier 1 Capital level | $ 84,245 | $ 80,634 | ||
Community bank leverage ratio | 0.1196 | 0.1182 | ||
Minimum [Member] | ||||
Community bank leverage ratio | 0.085 | 0.08 | 0.0900 | |
Minimum [Member] | Subsequent Event [Member] | ||||
Community bank leverage ratio | 0.09 |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements (Reconciliation of GAAP Capital to Regulatory Tier 1 and Total Capital) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Capital Requirements [Abstract] | ||
GAAP (Equity) Capital: | $ 85,223 | $ 82,782 |
Plus: Unrealized gains on available-for-sale debt securities, net of tax | (978) | (2,148) |
Tier 1 Capital and CET1 Capital | $ 84,245 | $ 80,634 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Numerator- net income | $ 6,187 | $ 4,558 | |
Denominator: Basic weighted average shares outstanding | 5,885,005 | 5,955,327 | |
Increase in weighted average shares outstanding due to: Stock options | 2,859 | ||
Diluted weighted average shares outstanding | 5,887,864 | 5,955,327 | |
Earnings per share: Basic | $ 1.05 | $ 0.77 | |
Earnings per share: Diluted | $ 1.05 | 0.77 | |
Stock options outstanding weighted average exercise price | $ 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 | 64,548 | ||
Stock options outstanding weighted average exercise price | $ 14.38 | $ 14.38 | |
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 |
Commitments to Extend Credit (D
Commitments to Extend Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments to grant loans [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 61,234 | $ 47,065 |
Unfunded commitments under lines of credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 73,387 | $ 66,134 |
Parent Company Only Financial_3
Parent Company Only Financial Information (Statements of Financial Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and due from banks | $ 37,533 | $ 7,867 | |
Other assets | 4,430 | 3,470 | |
Total Assets | 713,739 | 686,200 | |
Other liabilities | 7,431 | 7,084 | |
Total stockholders' equity | 87,976 | 85,924 | $ 82,840 |
Total Liabilities and Stockholders' Equity | 713,739 | 686,200 | |
Parent Company [Member] | |||
Cash and due from banks | 1,085 | 1,414 | |
Investment in subsidiary | 85,223 | 82,781 | |
ESOP loan receivable | 1,420 | 1,477 | |
Other assets | 274 | 275 | |
Total Assets | 88,002 | 85,947 | |
Other liabilities | 26 | 23 | |
Total stockholders' equity | 87,976 | 85,924 | |
Total Liabilities and Stockholders' Equity | $ 88,002 | $ 85,947 |
Parent Company Only Financial_4
Parent Company Only Financial Information (Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Non-Interest Expenses | $ 17,057 | $ 15,917 |
Income before Income Taxes | 7,475 | 5,382 |
Income tax benefit | 1,288 | 824 |
Net Income | 6,187 | 4,558 |
Parent Company [Member] | ||
Interest income | 112 | 120 |
Dividend distributed by bank subsidiary | 3,000 | 2,500 |
Other | 3 | |
Total Income | 3,115 | 2,620 |
Non-Interest Expenses | 404 | 421 |
Income before Income Taxes | 2,711 | 2,199 |
Income tax benefit | (83) | (84) |
Income (Loss) before undistributed net income of subsidiary | 2,794 | 2,283 |
Equity in undistributed net income of subsidiary | 3,393 | 2,275 |
Net Income | $ 6,187 | $ 4,558 |
Parent Company Only Financial_5
Parent Company Only Financial Information (Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 6,187 | $ 4,558 |
Other Comprehensive Income, net of tax: | ||
Unrealized holding gains on securities available for sale of subsidiary, net of tax expense | (1,122) | 875 |
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense | (48) | (58) |
Total Other Comprehensive (Loss) Income | (1,170) | 817 |
Total Comprehensive Income | 5,017 | 5,375 |
Parent Company [Member] | ||
Net income | 6,187 | 4,558 |
Other Comprehensive Income, net of tax: | ||
Unrealized holding gains on securities available for sale of subsidiary, net of tax expense | (1,122) | 875 |
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense | (48) | (58) |
Total Other Comprehensive (Loss) Income | (1,170) | 817 |
Total Comprehensive Income | $ 5,017 | $ 5,375 |
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, 2021 | Dec. 31, 2020 | |
Other comprehensive income, Recovery on previously impaired investment securities included in net income, tax | $ (11) | $ (15) |
Subsidiary [Member] | ||
Unrealized holding losses on securities available for sale, tax benefit | 300 | (233) |
Other comprehensive income, Recovery on previously impaired investment securities included in net income, tax | $ 11 | $ 15 |
Parent Company Only Financial_7
Parent Company Only Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 6,187 | $ 4,558 |
ESOP shares committed to be released | 117 | 102 |
(Increase) in other assets | (542) | (1,020) |
(Decrease) Increase in other liabilities | 287 | 414 |
Net Cash Provided by Operating Activities | 8,551 | 5,603 |
Net Cash Provided by Investing Activities | (5,742) | (62,137) |
Purchase of treasury stock | (2,255) | (1,593) |
Cash dividends paid | (1,084) | (1,020) |
Net Cash Used in Financing Activities | 21,801 | 69,220 |
CASH AND CASH EQUIVALENTS - BEGINNING | 42,975 | |
CASH AND CASH EQUIVALENTS - ENDING | 67,585 | 42,975 |
Parent Company [Member] | ||
Net income | 6,187 | 4,558 |
ESOP shares committed to be released | 117 | 102 |
Stock based compensation expense | 257 | 220 |
(Increase) in other assets | (218) | (408) |
(Decrease) Increase in other liabilities | 3 | (15) |
Equity in undistributed earnings of subsidiary | (3,393) | (2,275) |
Net Cash Provided by Operating Activities | 2,953 | 2,182 |
Payments received on ESOP Loan | 57 | 52 |
Net Cash Provided by Investing Activities | 57 | 52 |
Purchase of treasury stock | (2,255) | (1,593) |
Cash dividends paid | (1,084) | (1,020) |
Net Cash Used in Financing Activities | (3,339) | (2,613) |
Net Decrease in Cash and Cash Equivalents | (329) | (379) |
CASH AND CASH EQUIVALENTS - BEGINNING | 1,414 | 1,793 |
CASH AND CASH EQUIVALENTS - ENDING | $ 1,085 | $ 1,414 |
Treasury Stock (Details)
Treasury Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||
Shares of common stock repurchased at average cost | 150,542 | 121,051 |
Repurchased shares of common stock average cost per share | $ 14.98 | $ 13.16 |
Common Stock Repurchase Program [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares of common stock repurchased at average cost | 149,928 | 120,821 |
Repurchased shares of common stock average cost per share | $ 14.98 | $ 13.16 |
Remaining number of shares authorized to be repurchased under stock repurchase program | 36,327 | 79,707 |
Unvested RRP And EIP Stock Holdings [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares of common stock repurchased at average cost | 614 | 230 |
Repurchased shares of common stock average cost per share | $ 14.97 | $ 13.40 |
2012 Equity Incentive Plan [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares of common stock repurchased at average cost | 1,792 | 332 |
Repurchased shares of common stock average cost per share | $ 9.39 | $ 9.39 |
Treasury stock transferred to fund awards granted | 20,958 | 20,830 |
Treasury stock transferred, average cost per share | $ 9.39 | $ 9.39 |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income (Tax Effects Allocated to Single Component of Other Comprehensive (Loss) Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Comprehensive (Loss) Income [Abstract] | ||
Net unrealized (losses) gains on securities available for sale arising during the year, before tax | $ (1,422) | $ 1,108 |
Less: reclassification adjustments related to: Recovery on previously impaired investment securities included in net income, before tax | (59) | (73) |
Total Other Comprehensive (Loss) Income, before tax | (1,481) | 1,035 |
Net unrealized (losses) gains on securities available for sale arising during the year, tax (expense) benefit | 300 | (233) |
Less: reclassification adjustments related to: Recovery on previously impaired investment securities included in net income, tax expense | 11 | 15 |
Total Other Comprehensive (Loss) Income, tax expense | (311) | (218) |
Net unrealized (losses) gains on securities available for sale arising during the year, net of tax | (1,122) | 875 |
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense | (48) | (58) |
Total Other Comprehensive (Loss) Income | $ (1,170) | $ 817 |
Other Comprehensive (Loss) In_4
Other Comprehensive (Loss) Income (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Recovery on previously impaired investment securities | $ 59 | $ 73 |
Income tax expense | (1,288) | (824) |
Net income | 6,187 | 4,558 |
Net 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 | (59) | (73) |
Income tax expense | 11 | 15 |
Net income | $ (48) | $ (58) |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)property | |
Number of OREO properties sold | property | 2 | |
Gain on sale of property | $ 24 | $ 36 |
ASU 2014-09 [Member] | ||
Gain on sale of property | $ 31 |
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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Non-Interest Income | $ 3,188 | $ 2,992 |
Debit card fees [Member] | ||
Non-Interest Income | 873 | 763 |
Service charges on deposit accounts [Member] | ||
Non-Interest Income | 608 | 606 |
Fees and other service charges [Member] | ||
Non-Interest Income | 147 | 130 |
Other [Member] | ||
Non-Interest Income | 35 | 36 |
Non-interest Income (out of scope of Topic 606) [Member] | ||
Non-Interest Income | 1,525 | 1,457 |
Non-interest Income (in-scope of Topic 606) [Member] | ||
Non-Interest Income | $ 1,663 | $ 1,535 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2022 | Feb. 09, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||
Dividends declared per share | $ 0.54 | $ 0.49 | ||
Amortized cost of securities sold | $ 87,581 | $ 76,536 | ||
MHC [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity securities common stock shares owned | 3,636,875 | |||
Equity method investment, ownership percentage | 63.90% | |||
Cumulative cash dividends waived | $ 16,100 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share | $ 0.16 | |||
Dividends payable, date to be paid | Mar. 17, 2022 | |||
Dividends payable, date of record | Feb. 24, 2022 | |||
Subsequent Event [Member] | MHC [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity securities common stock shares owned | 3,636,875 | |||
Equity method investment, ownership percentage | 63.90% | |||
Dividend Declared [Member] | Subsequent Event [Member] | MHC [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate annual dividend to be waived per share | $ 0.68 | |||
Dividends Waived [Member] | MHC [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividends waived | $ 2,000 | |||
Dividends Waived [Member] | Subsequent Event [Member] | MHC [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividends waived | $ 582 | |||
Aggregate annual dividend per share | $ 0.68 | $ 0.68 |