Esquire Financial (ESQ) 10-Q13 May 222022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	May 01, 2022
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Entity File Number	001-38131
Entity Registrant Name	Esquire Financial Holdings, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	27-5107901
Entity Address, Address Line One	100 Jericho Quadrangle, Suite 100,
Entity Address, City or Town	Jericho
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11753
City Area Code	516
Local Phone Number	535-2002
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	ESQ
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,076,320
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Amendment Flag	false
Entity Central Index Key	0001531031

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 148,940	$ 149,156
Securities purchased under agreements to resell, at cost	48,143	50,271
Securities available-for-sale, at fair value	134,161	148,384
Securities held to maturity (fair value $44,296 at March 31, 2022)	47,544	0
Securities, restricted, at cost	2,680	2,680
Loans held for investment	817,997	784,517
Less: allowance for loan losses	(9,491)	(9,076)
Loans, net of allowance	808,506	775,441
Premises and equipment, net	3,163	3,334
Accrued interest receivable	4,343	4,197
Other assets	45,349	45,307
Total assets	1,242,829	1,178,770
Deposits:
Demand	488,960	409,350
Savings, NOW and money market	581,721	599,747
Time	19,239	19,312
Total deposits	1,089,920	1,028,409
Accrued expenses and other liabilities	9,524	6,626
Total liabilities	1,099,444	1,035,035
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01; authorized 2,000,000 shares; none issued
Common stock, par value $0.01; authorized 15,000,000 shares; 8,112,402 and 8,123,152 shares issued, respectively; and 8,076,320 and 8,088,846 shares outstanding, respectively	81	81
Additional paid-in capital	94,172	93,611
Retained earnings	56,802	51,460
Accumulated other comprehensive loss	(7,044)	(850)
Treasury stock at cost, 36,082 and 34,306 shares, respectively	(626)	(567)
Total stockholders' equity	143,385	143,735
Total liabilities and stockholders' equity	$ 1,242,829	$ 1,178,770

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Securities held to maturity, fair value	$ 44,926
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	8,112,402	8,123,152
Common stock, shares outstanding	8,076,320	8,088,846
Treasury stock, shares	36,082	34,306

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest income:
Loans	$ 11,020	$ 9,579
Securities	815	468
Securities purchased under agreements to resell	132	161
Interest earning deposits and other	57	40
Total interest income	12,024	10,248
Interest expense:
Savings, NOW and money market deposits	218	174
Time deposits	19	20
Borrowings	1	1
Total interest expense	238	195
Net interest income	11,786	10,053
Provision for loan losses	640	1,800
Net interest income after provision for loan losses	11,146	8,253
Noninterest income:
Total noninterest income	5,502	5,464
Noninterest expense:
Employee compensation and benefits	6,134	4,996
Occupancy and equipment	751	699
Professional and consulting services	611	775
FDIC and regulatory assessments	123	98
Advertising and marketing	225	332
Travel and business relations	90	39
Data processing	1,008	851
Other operating expenses	438	398
Total noninterest expense	9,380	8,188
Net income before income taxes	7,268	5,529
Income tax expense	1,926	1,355
Net income	$ 5,342	$ 4,174
Earnings per share
Basic (in dollars per share)	$ 0.70	$ 0.56
Diluted (in dollars per share)	$ 0.66	$ 0.53
Payment processing fees
Noninterest income:
Noninterest income	$ 5,316	$ 5,370
Customer related fees, service charges and other
Noninterest income:
Noninterest income	$ 186	$ 94

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 5,342	$ 4,174
Other comprehensive (loss) income:
Unrealized losses arising during the period on securities available-for-sale	(8,526)	(2,076)
Tax effect	2,332	591
Total other comprehensive loss	(6,194)	(1,485)
Total comprehensive (loss) income	$ (852)	$ 2,689

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive (loss) income.	Treasury stock	Total
Balance at Dec. 31, 2020	$ 78	$ 91,622	$ 33,535	$ 1,408	$ (567)	$ 126,076
Balance (in shares) at Dec. 31, 2020	7,793,482
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			4,174			4,174
Other comprehensive loss				(1,485)		(1,485)
Exercise of stock options, net of repurchases	$ 1	9				10
Exercise of stock options, net of repurchases (in shares)	36,333
Stock compensation expense		491				491
Balance at Mar. 31, 2021	$ 79	92,122	37,709	(77)	(567)	129,266
Balance (in shares) at Mar. 31, 2021	7,829,815
Balance at Dec. 31, 2021	$ 81	93,611	51,460	(850)	(567)	143,735
Balance (in shares) at Dec. 31, 2021	8,088,846
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			5,342			5,342
Other comprehensive loss				(6,194)		(6,194)
Restricted stock award forfeitures (in shares)	(10,750)
Vested restricted stock awards settlement					(59)	(59)
Vested restricted stock awards settlement (in shares)	(1,776)
Stock compensation expense		561				561
Balance at Mar. 31, 2022	$ 81	$ 94,172	$ 56,802	$ (7,044)	$ (626)	$ 143,385
Balance (in shares) at Mar. 31, 2022	8,076,320

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2021shares
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Repurchase of shares	40,468

CONDENSED CONSOLIDATED STATEM_7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 5,342	$ 4,174
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	640	1,800
Depreciation	182	154
Stock compensation expense	561	491
Gain on loans held for sale	(90)
Net amortization (accretion):
Securities	124	254
Loans	(239)	(181)
Right of use asset	119	115
Software	301	257
Changes in other assets and liabilities:
Accrued interest receivable	(146)	(308)
Other assets	3,196	3,756
Operating lease liability	(142)	(132)
Accrued expenses and other liabilities	1,297	2,903
Net cash provided by operating activities	11,145	13,283
Cash flows from investing activities:
Net change in loans	(34,316)	(30,284)
Net change in securities purchased under agreements to resell	2,128	1,225
Purchases of securities available-for-sale		(33,617)
Purchases of securities held-to-maturity	(47,544)
Principal repayments on securities available-for-sale	7,316	17,346
Purchases of premises and equipment	(11)	(83)
Development of capitalized software	(386)	(779)
Net cash used in investing activities	(72,813)	(46,192)
Cash flows from financing activities:
Net increase in deposits	61,511	55,607
Exercise of stock options		10
Tax withholding payments for vested equity awards	(59)
Net cash provided by financing activities	61,452	55,617
(Decrease) increase in cash and cash equivalents	(216)	22,708
Cash and cash equivalents at beginning of the period	149,156	65,185
Cash and cash equivalents at end of the period	148,940	87,893
Cash paid during the period for:
Interest	238	195
Taxes	342	$ 275
Noncash transactions:
Transfer from loans held for investment to held for sale	850
Securities purchased but not yet settled	$ 1,743

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies	NOTE 1 — Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The Interim Consolidated Financial Statements include the accounts of Esquire Financial Holdings, Inc. and its wholly owned subsidiary, Esquire Bank, N.A., are collectively referred to as “the Company.” All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial information. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are recurring in nature. These financial statements and the accompanying notes should be read in conjunction with the Company’s audited financial statements for the years ended December 31, 2021 and 2020. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other period. Certain balances in the prior year financial statements were reclassified to conform to current presentation. The reclassifications had no effect on prior year net income or stockholders’ equity. Risks and Uncertainties On March 11, 2020, the World Health Organization declared COVID-19, the disease caused by the novel coronavirus, a pandemic as a result of the global spread of the coronavirus illness. In response to the outbreak, federal and state authorities in the U.S. introduced various measures to try to limit or slow the spread of the virus, including travel restrictions, nonessential business closures, stay-at-home orders, and strict social distancing. The full impact of COVID-19 is unknown and rapidly evolving. We implemented a customer payment deferral program (principal and interest) to assist business borrowers and certain consumers that may be experiencing financial hardship due to COVID-19 related challenges. These loans will continue to accrue interest during the deferral period unless otherwise classified as nonperforming. Consistent with regulatory guidance and the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals will continue to be reported as current loans during the deferral period and not evaluated as to whether they are troubled debt restructurings (“TDR”). There were no delinquent loans upon adoption of our payment deferral program. At March 31, 2022 there were no participants in the COVID-19 payment deferral program. At this time, it is difficult to quantify the impact COVID-19 will have on future periods. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of an increase in the allowance for loan losses, valuation impairments on our investments or deferred tax assets. The Company has evaluated the impact of the effects of COVID-19 and determined that there were no material or systematic adverse impacts on the Company's first quarter 2022 Consolidated Statement of Financial Condition and Consolidated Statement of Income. Subsequent Events On April 1, 2022, the Company finalized the sale of its legacy NFL consumer post settlement loan portfolio to a third part sponsored entity (or “Fund”) in exchange for a nonvoting economic interest in the Fund valued at $13.5 million. On April 28, 2022, the Company announced its first regular quarterly cash dividend of $0.09 per share of common stock, payable on June 1, 2022 to each stockholder of record on May 16, 2022. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the Consolidated Financial Statements. Loans Held for Sale Loans held for sale are accounted for at lower of cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans held for sale is included with Other assets on the Consolidated Statement of Financial Condition. New Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (the ASU). This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (CECL) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable and certain other contracts. This ASU will be effective for a smaller reporting company on January 1, 2023. The Company plans to adopt ASU 2016-13 on January 1, 2023, using the required modified retrospective method with a cumulative effect adjustment as of the beginning of the reporting period. The Company has gathered the necessary data and continues to prepare for the implementation of this standard. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. Adoption of the standard is not expected to have a material impact on the Company’s operating results or financial condition. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures”. ASU 2022-02 eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, “Receivables — Troubled Debt Restructurings by Creditors”, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments in this ASU require that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASU 326-20, “Financial Instruments — Credit Losses: Measured at Amortized Cost”. The Company is in the process of evaluating the ASU in conjunction with its adoption of CECL on January 1, 2023.

Debt Securities

Debt Securities	3 Months Ended
Debt Securities	Mar. 31, 2022
Debt Securities
Debt Securities	NOTE 2 — Debt Securities The following tables summarize the amortized cost and fair value of securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses: March 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 120,157 $ 107 $ (8,774) $ 111,490 Collateralized mortgage obligations (CMOs) – agency 23,720 4 (1,053) 22,671 Total available-for-sale $ 143,877 $ 111 $ (9,827) $ 134,161 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: Collateralized mortgage obligations (CMOs) – agency $ 47,544 $ — $ (2,618) $ 44,926 Total held-to-maturity $ 47,544 $ — $ (2,618) $ 44,926 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 122,258 $ 673 $ (2,050) $ 120,881 Collateralized mortgage obligations (CMOs) – agency 27,316 237 (50) 27,503 Total available-for-sale $ 149,574 $ 910 $ (2,100) $ 148,384 As of December 31, 2021, there were no securities held-to-maturity. Mortgage-backed securities include all pass-through certificates guaranteed by FHLMC, FNMA, or GNMA and the CMOs are backed by government agency pass-through certificates. CMOs, by virtue of the underlying residential collateral or structure, are fixed rate current pay sequentials or planned amortization classes (PACs). As actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations, these securities are not considered to have a single maturity date. There were no sales or calls of securities for the three months ended March 31, 2022 and 2021. At March 31, 2022, securities having a carrying value of $155.4 million were pledged to the Federal Home Loan Bank of New York (FHLB) for borrowing capacity totaling $133.9 million. At December 31, 2021, securities having a fair value of $121.5 million were pledged to the FHLB for borrowing capacity totaling $115.4 million. At March 31, 2022 and December 31, 2021, the Company had no outstanding FHLB advances. At March 31, 2022, securities having a fair value of $24.6 million were pledged to the Federal Reserve Bank of New York (FRB) for borrowing capacity totaling $23.8 million. At December 31, 2021, securities having a fair value of $26.9 million were pledged to the FRB for borrowing capacity totaling $26.1 million. At March 31, 2022 and December 31, 2021, the Company had no outstanding FRB borrowings. The following table provides the gross unrealized and unrecognized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized or unrecognized loss position as of: March 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 63,981 $ (4,256) $ 39,448 $ (4,518) $ 103,429 $ (8,774) CMOs – agency 19,562 (981) 1,037 (72) 20,599 (1,053) Total temporarily impaired securities $ 83,543 $ (5,237) $ 40,485 $ (4,590) $ 124,028 $ (9,827) Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses (In thousands) Securities held-to-maturity: CMOs – agency $ 44,926 $ (2,618) $ — $ — $ 44,926 $ (2,618) Total temporarily impaired securities $ 44,926 $ (2,618) $ — $ — $ 44,926 $ (2,618) December 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) Securities available-for-sale: Mortgage-backed securities - agency $ 101,235 $ (1,813) $ 4,503 $ (237) $ 105,738 $ (2,050) CMOs - Agency 7,416 (50) — — 7,416 (50) Total temporarily impaired securities $ 108,651 $ (1,863) $ 4,503 $ (237) $ 113,154 $ (2,100) Management reviews the investment portfolio on a quarterly basis to determine the cause, magnitude and duration of declines in the fair value of each security. In estimating other-than-temporary impairment (OTTI), management considers many factors including: (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The assessment of whether any other than temporary decline exists may involve a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At March 31, 2022, securities in unrealized or unrecognized loss positions were issuances from government sponsored entities. Due to the decline in fair value being attributable to changes in interest rates, not credit quality and because the Company does not have the intent to sell the securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider the securities to be other-than-temporarily impaired at March 31, 2022. No impairment charges were recorded for the three months ended March 31, 2022 and 2021.

Loans

Loans	3 Months Ended
Loans	Mar. 31, 2022
Loans
Loans	NOTE 3 — Loans The composition of loans by class is summarized as follows: At March 31, At December 31, 2022 2021 (In thousands) Real estate: 1 – 4 family $ 33,468 $ 40,753 Multifamily 262,465 254,852 Commercial real estate 62,447 48,589 Construction — — Total real estate 358,380 344,194 Commercial 451,930 432,108 Consumer 8,281 8,681 Total loans held for investment $ 818,591 $ 784,983 Deferred loan fees and unearned premiums, net (594) (466) Allowance for loan losses (9,491) (9,076) Loans held for investment, net $ 808,506 $ 775,441 At December 31, 2021, the commercial loans balance included Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans of $4.2 million. There were no PPP loans outstanding at March 31, 2022. The following tables present the activity in the allowance for loan losses by class for the three months ending March 31, 2022 and 2021: Commercial 1 ‑ 4 Family Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2022 Allowance for loan losses: Beginning balance $ 285 $ 6,319 $ 1,789 $ 552 $ — $ 131 $ 9,076 Provision (credit) for loan losses (54) 254 253 136 — 51 640 Recoveries — 2 — — — — 2 Loans charged-off — — (178) — — (49) (227) Total ending allowance balance $ 231 $ 6,575 $ 1,864 $ 688 $ — $ 133 $ 9,491 March 31, 2021 Allowance for loan losses: Beginning balance $ 342 $ 5,003 $ 1,278 $ 597 $ — $ 4,182 $ 11,402 Provision (credit) for loan losses (23) 753 247 16 — 807 1,800 Recoveries — — — — — — — Loans charged-off — — — — — (21) (21) Total ending allowance balance $ 319 $ 5,756 $ 1,525 $ 613 $ — $ 4,968 $ 13,181 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by class and based on impairment method as of March 31, 2022 and December 31, 2021: Commercial 1 ‑ 4 Family Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2022 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 231 6,575 1,864 688 — 133 9,491 Total ending allowance balance $ 231 $ 6,575 $ 1,864 $ 688 $ — $ 133 $ 9,491 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 33,468 451,930 262,465 62,447 — 8,281 818,591 Total ending loans balance $ 33,468 $ 451,930 $ 262,465 $ 62,447 $ — $ 8,281 $ 818,591 Commercial 1 ‑ 4 Family Commercial Multifamily Real Estate Construction Consumer Total (In thousands) December 31, 2021 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 285 6,319 1,789 552 — 131 9,076 Total ending allowance balance $ 285 $ 6,319 $ 1,789 $ 552 $ — $ 131 $ 9,076 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 40,753 432,108 254,852 48,589 — 8,681 784,983 Total ending loans balance $ 40,753 $ 432,108 $ 254,852 $ 48,589 $ — $ 8,681 $ 784,983 Recorded investment is not adjusted for accrued interest, deferred fees and costs, and unearned premiums and discounts due to immateriality. There were no impaired loans as of March 31, 2022 and December 31, 2021. The following table provides an analysis of average recorded investment and interest income recognized by segment on impaired loans during the three months ended March 31, 2022. For the Three Months Ended March 31, 2022 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) 1-4 family $ — $ — $ — $ — Commercial — — — — Multifamily 515 — 180 — Commercial real estate — — — — Construction — — — — Consumer 2 — 2,120 — Total $ 517 $ — $ 2,300 $ — The following tables present the aging of the recorded investment in past due loans by class of loans as of March 31, 2022 and December 31, 2021: Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) March 31, 2022 1 – 4 family $ — $ — $ — $ — $ — $ 33,468 $ 33,468 Commercial 111 64 — — 175 451,755 451,930 Multifamily — — — — — 262,465 262,465 Commercial real estate — — — — — 62,447 62,447 Construction — — — — — — — Consumer 44 7 — 7 58 8,223 8,281 Total $ 155 $ 71 $ — $ 7 $ 233 $ 818,358 $ 818,591 Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) December 31, 2021 1 – 4 family $ — $ — $ — $ — $ — $ 40,753 $ 40,753 Commercial — — — — — 432,108 432,108 Multifamily 1,034 — — — 1,034 253,818 254,852 Commercial real estate — — — — — 48,589 48,589 Construction — — — — — — — Consumer 21 10 — 6 37 8,644 8,681 Total $ 1,055 $ 10 $ — $ 6 $ 1,071 $ 783,912 $ 784,983 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed whenever a credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. The Company uses the following definitions for risk ratings: Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful (In thousands) March 31, 2022 1 – 4 family $ 30,453 $ 3,015 $ — $ — Commercial 426,081 22,624 3,225 — Multifamily 261,744 — 721 — Commercial real estate 58,629 3,818 — — Construction — — — — Consumer 8,281 — — — Total $ 785,188 $ 29,457 $ 3,946 $ — Pass Special Mention Substandard Doubtful (In thousands) December 31, 2021 1 – 4 family $ 37,738 $ 3,015 $ — $ — Commercial 410,548 17,977 3,583 — Multifamily 254,131 — 721 — Commercial real estate 44,771 3,818 — — Construction — — — — Consumer 8,681 — — — Total $ 755,869 $ 24,810 $ 4,304 $ — The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For smaller dollar commercial and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The Company has no loans identified as TDRs at March 31, 2022 and December 31, 2021. Furthermore, there were no loans modified during the three months ended March 31, 2022 and 2021 as TDRs. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. Pledged Loans At March 31, 2022, loans totaling $27.3 million were pledged to the Federal Home Loan Bank of New York for borrowing capacity totaling $20.9 million. At December 31, 2021, loans totaling $33.9 million were pledged to the Federal Home Loan Bank of New York for borrowing capacity totaling $26.0 million.

Noninterest Income

Noninterest Income	3 Months Ended
Noninterest Income	Mar. 31, 2022
Noninterest Income.
Noninterest Income	NOTE 4 — Noninterest Income Descriptions of revenue-generating activities that are within the scope of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, and are presented in the Consolidated Statements of Income as components of noninterest income, are as follows: For the Three Months Ended March 31, 2022 2021 (In thousands) Payment processing fees Payment processing income $ 5,100 $ 5,167 ACH income 216 203 Customer related fees, service charges and other Administrative service income 9 18 Gain on loans held for sale (1) 90 — Other 87 76 Total noninterest income $ 5,502 $ 5,464 (1) Represents a valuation adjustment on loans held for sale, not within the scope of ASC 606. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from the above-described contracts with customers. ● Payment processing income – We provide payment processing services as an acquiring bank through the third-party or independent sales organization (ISO) business model in which we process credit and debit card transactions on behalf of merchants. We enter into a tri-party merchant agreement, between the Company, ISO and each merchant. The Company’s performance obligation is clearing and settling credit and debit transactions on behalf of the merchants. The Company recognizes revenue monthly once it summarizes and computes all revenue and expenses applicable to each ISO, which is our performance obligation. ● ACH income – We provide ACH services for merchants and other commercial customers. Contracts are entered into with third parties that require ACH transactions processed on behalf of their customers. Fees are variable and based on the volume of transactions within a given month. Our performance obligations are processing and settling ACHs on behalf of the customers. Our obligation is satisfied within each business day when the transactions (ACH files) are sent to the Federal Reserve Bank for clearing. Revenue is recognized based on the total volume of transactions processed that month for a given customer. ● Administrative service income – Administrative service income is derived primarily from the management of qualified settlement funds (QSFs), which are funds from settled mass torts and class action lawsuits. Our performance obligations with the QSFs are outlined in court approved orders which includes ensuring funds are invested into safe investment vehicles such as U.S. treasuries and FDIC insured products. Our fees for placing these funds in appropriate vehicles are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. ● Other – The other category includes revenue from service charges on deposit accounts, debit card fees, and certain loan related fees where revenue is recognized as performance obligations are satisfied.

Share-Based Payment Plans

Share-Based Payment Plans	3 Months Ended
Share-Based Payment Plans	Mar. 31, 2022
Share-Based Payment Plans
Share-Based Payment Plans	NOTE 5 — Share-Based Payment Plans The Company issues incentive and nonqualified stock options and restricted stock awards to certain employees and directors pursuant to its equity incentive plans, which have been approved by the stockholders. Share-based awards are granted by the Compensation Committee of the Board of Directors. Under the plans, options are granted with an exercise price equal to the fair value of the Company’s stock at the date of the grant. Options granted vest over three four The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on peer volatility. The Company uses peer data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on peer data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no stock options granted during the three months ended March 31, 2022 and 2021. The following table presents a summary of the activity related to options as of March 31, 2022: Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) March 31, 2022 Outstanding at beginning of year 649,600 $ 16.66 Granted — — Exercised — — Forfeited (6,334) 25.68 Expired — — Outstanding at period end 643,266 $ 16.57 5.27 Vested or expected to vest 643,266 $ 16.57 5.27 Exercisable at period end 532,364 $ 14.43 4.44 The Company recognized compensation expense related to options of $124 thousand and $134 thousand for the three months ended March 31, 2022 and 2021, respectively. At March 31, 2022, unrecognized compensation cost related to nonvested options was approximately $1.1 million and is expected to be recognized over a weighted average period of 2.32 years. The intrinsic value for outstanding options and for options vested or expected to vest was $11.0 million and $10.2 million for exercisable options at March 31, 2022. Information related to stock option exercises during each period is as follows: For the Three Months Ended March 31, 2022 2021 (In thousands) Intrinsic value of options exercised $ — $ 861 Cash received from option exercises — 10 Excess tax benefit from option exercises — 164 The following table presents a summary of the activity related to restricted stock as of March 31, 2022: Weighted Average Grant Date Shares Fair Value March 31, 2022 Outstanding at beginning of year 482,750 $ 24.59 Granted — — Vested (20,497) 19.25 Forfeited (10,750) 24.32 Outstanding at period end 451,503 $ 24.84 The Company recognized compensation expense related to restricted stock of $437 thousand and $357 thousand for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was $7.9 million of total unrecognized compensation cost related to nonvested shares granted under the plan. The cost is expected to be recognized over a weighted-average period of 4.48

Earnings per Share

Earnings per Share	3 Months Ended
Earnings per Share	Mar. 31, 2022
Earnings per Share
Earnings per Share	NOTE 6 — Earnings per Share The factors used in the earnings per share computation follow: For the Three Months Ended March 31, 2022 2021 (Dollars in thousands, except per share data) Basic Net income $ 5,342 $ 4,174 Weighted average shares outstanding 7,620,241 7,426,139 Basic earnings per share $ 0.70 $ 0.56 Diluted Net income $ 5,342 $ 4,174 Weighted average shares outstanding for basic earnings per share 7,620,241 7,426,139 Add: Dilutive effects of share based awards 527,234 420,137 Average shares and dilutive potential shares 8,147,475 7,846,276 Diluted earnings per share $ 0.66 $ 0.53 Share-based awards totaling 69,150 and 118,350 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2022 and March 31, 2021, respectively, because they were anti-dilutive.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2022
Leases
Leases	NOTE 7 — Leases The Company recognizes the present value of its operating lease payments related to its office facilities and retail branch as operating lease assets and corresponding lease liabilities on the Consolidated Statements of Financial Condition. These operating lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term. As these leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date in order to determine present value. As of March 31, 2022, right of use (“ROU”) lease assets liabilities assets liabilities Maturities of the Company’s operating lease liabilities at March 31, 2022 are as follows: Operating Lease Liabilities (In thousands) 2022 $ 480 2023 636 2024 652 2025 668 2026 627 Thereafter — Total operating lease payments $ 3,063 Less: interest 217 Present value of operating lease liabilities $ 2,846 As of March 31, 2022 2021 Weighted-average remaining lease term 4.65 years 5.59 years Weighted-average discount rate 3.07 % 3.04 % The components of total lease cost are as follows: For the Three Months Ended March 31, 2022 2021 (In thousands) Operating lease cost $ 142 $ 142 Short-term lease cost — — Total lease cost $ 142 $ 142 Cash paid for operating leases $ 163 $ 159

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2022
Fair Value Measurements
Fair Value Measurements	NOTE 8 — Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values. Level 1 Level 2 Level 3 For available-for-sale securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Quoted Prices In Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2022 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 111,490 $ — CMOs – agency — 22,671 — Total $ — $ 134,161 $ — December 31, 2021 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 120,881 $ — CMOs – agency — 27,503 — Total $ — $ 148,384 $ — There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2022 and 2021. The legacy NFL consumer loan portfolio was measured on a nonrecurring basis and assigned a Level 3 fair value of $14.2 million and $14.1 million as of March 31, 2022 and December 31, 2021, respectively, as the loans are accounted for at the lower of cost or fair value. The fair value was determined using the discounted cash flow method under the income approach where the significant unobservable inputs include the cash flows and related timing, and an approximately 9% discount rate applied which reflects the rate of return market participants would expect to earn on investments of equivalent risk. A partial release of the valuation allowance was recorded during the first quarter 2022 which totaled $90 thousand. We also had a multifamily loan held for sale with a Level 2 fair value of $850 thousand which was measured utilizing an offer from a market participant. The following tables present the carrying amounts and fair values (represents exit price) of financial instruments not carried at fair value at March 31, 2022 and December 31, 2021: Fair Value Measurement at March 31, 2022, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 148,940 $ 1,100 $ 147,840 $ — $ 148,940 Securities purchased under agreements to resell, at cost 48,143 — — 48,143 48,143 Securities, held-to-maturity 47,544 — 44,926 — 44,926 Securities, restricted, at cost 2,680 N/A N/A N/A N/A Loans held for investment, net 808,506 — — 801,863 801,863 Accrued interest receivable 4,343 — 278 3,972 4,250 Financial Liabilities: Time deposits 19,239 — 19,178 — 19,178 Demand and other deposits 1,070,681 1,070,681 — — 1,070,681 Secured borrowings 48 — 48 — 48 Accrued interest payable — — — — — Fair Value Measurement at December 31, 2021, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 149,156 $ 2,202 $ 146,954 $ — $ 149,156 Securities purchased under agreements to resell, at cost 50,271 — — 50,271 50,271 Securities, restricted, at cost 2,680 N/A N/A N/A N/A Loans held for investment, net 775,441 — — 774,114 774,114 Accrued interest receivable 4,197 — 252 3,945 4,197 Financial Liabilities: Time deposits 19,312 — 19,330 — 19,330 Demand and other deposits 1,009,097 1,009,097 — — 1,009,097 Secured borrowings 48 — 48 — 48 Accrued interest payable — — — — —

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income	3 Months Ended
Accumulated Other Comprehensive (Loss) Income	Mar. 31, 2022
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income	NOTE 9 — Accumulated Other Comprehensive (Loss) Income The following presents changes in accumulated other comprehensive (loss) income by component, net of tax, for the three months ending March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In thousands) Unrealized (Losses) Gains on Available-for-Sale Securities Beginning balance $ (850) $ 1,408 Other comprehensive loss before reclassifications, net of tax (6,194) (1,485) Amounts reclassified from accumulated other comprehensive income — — Net current period other comprehensive loss (6,194) (1,485) Ending balance $ (7,044) $ (77) There were no reclassifications out of accumulated other comprehensive (loss) income for the three months ended March 31, 2022 and 2021.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The Interim Consolidated Financial Statements include the accounts of Esquire Financial Holdings, Inc. and its wholly owned subsidiary, Esquire Bank, N.A., are collectively referred to as “the Company.” All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial information. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are recurring in nature. These financial statements and the accompanying notes should be read in conjunction with the Company’s audited financial statements for the years ended December 31, 2021 and 2020. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other period. Certain balances in the prior year financial statements were reclassified to conform to current presentation. The reclassifications had no effect on prior year net income or stockholders’ equity.
Risks and Uncertainties	Risks and Uncertainties On March 11, 2020, the World Health Organization declared COVID-19, the disease caused by the novel coronavirus, a pandemic as a result of the global spread of the coronavirus illness. In response to the outbreak, federal and state authorities in the U.S. introduced various measures to try to limit or slow the spread of the virus, including travel restrictions, nonessential business closures, stay-at-home orders, and strict social distancing. The full impact of COVID-19 is unknown and rapidly evolving. We implemented a customer payment deferral program (principal and interest) to assist business borrowers and certain consumers that may be experiencing financial hardship due to COVID-19 related challenges. These loans will continue to accrue interest during the deferral period unless otherwise classified as nonperforming. Consistent with regulatory guidance and the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals will continue to be reported as current loans during the deferral period and not evaluated as to whether they are troubled debt restructurings (“TDR”). There were no delinquent loans upon adoption of our payment deferral program. At March 31, 2022 there were no participants in the COVID-19 payment deferral program. At this time, it is difficult to quantify the impact COVID-19 will have on future periods. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of an increase in the allowance for loan losses, valuation impairments on our investments or deferred tax assets. The Company has evaluated the impact of the effects of COVID-19 and determined that there were no material or systematic adverse impacts on the Company's first quarter 2022 Consolidated Statement of Financial Condition and Consolidated Statement of Income.
Subsequent Events	Subsequent Events On April 1, 2022, the Company finalized the sale of its legacy NFL consumer post settlement loan portfolio to a third part sponsored entity (or “Fund”) in exchange for a nonvoting economic interest in the Fund valued at $13.5 million. On April 28, 2022, the Company announced its first regular quarterly cash dividend of $0.09 per share of common stock, payable on June 1, 2022 to each stockholder of record on May 16, 2022.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the Consolidated Financial Statements.
Loans Held for Sale	Loans Held for Sale Loans held for sale are accounted for at lower of cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans held for sale is included with Other assets on the Consolidated Statement of Financial Condition.
New Accounting Pronouncements	New Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (the ASU). This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (CECL) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable and certain other contracts. This ASU will be effective for a smaller reporting company on January 1, 2023. The Company plans to adopt ASU 2016-13 on January 1, 2023, using the required modified retrospective method with a cumulative effect adjustment as of the beginning of the reporting period. The Company has gathered the necessary data and continues to prepare for the implementation of this standard. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. Adoption of the standard is not expected to have a material impact on the Company’s operating results or financial condition. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures”. ASU 2022-02 eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, “Receivables — Troubled Debt Restructurings by Creditors”, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments in this ASU require that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASU 326-20, “Financial Instruments — Credit Losses: Measured at Amortized Cost”. The Company is in the process of evaluating the ASU in conjunction with its adoption of CECL on January 1, 2023.

Debt Securities (Tables)

Debt Securities (Tables)	3 Months Ended
Debt Securities (Tables)	Mar. 31, 2022
Debt Securities
Schedule of amortized cost, gross unrealized gains and losses and estimated fair value of securities available-for-sale and held to maturity	March 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 120,157 $ 107 $ (8,774) $ 111,490 Collateralized mortgage obligations (CMOs) – agency 23,720 4 (1,053) 22,671 Total available-for-sale $ 143,877 $ 111 $ (9,827) $ 134,161 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: Collateralized mortgage obligations (CMOs) – agency $ 47,544 $ — $ (2,618) $ 44,926 Total held-to-maturity $ 47,544 $ — $ (2,618) $ 44,926 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 122,258 $ 673 $ (2,050) $ 120,881 Collateralized mortgage obligations (CMOs) – agency 27,316 237 (50) 27,503 Total available-for-sale $ 149,574 $ 910 $ (2,100) $ 148,384
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position	March 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 63,981 $ (4,256) $ 39,448 $ (4,518) $ 103,429 $ (8,774) CMOs – agency 19,562 (981) 1,037 (72) 20,599 (1,053) Total temporarily impaired securities $ 83,543 $ (5,237) $ 40,485 $ (4,590) $ 124,028 $ (9,827) Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses (In thousands) Securities held-to-maturity: CMOs – agency $ 44,926 $ (2,618) $ — $ — $ 44,926 $ (2,618) Total temporarily impaired securities $ 44,926 $ (2,618) $ — $ — $ 44,926 $ (2,618) December 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) Securities available-for-sale: Mortgage-backed securities - agency $ 101,235 $ (1,813) $ 4,503 $ (237) $ 105,738 $ (2,050) CMOs - Agency 7,416 (50) — — 7,416 (50) Total temporarily impaired securities $ 108,651 $ (1,863) $ 4,503 $ (237) $ 113,154 $ (2,100)

Loans (Tables)

Loans (Tables)	3 Months Ended
Loans (Tables)	Mar. 31, 2022
Loans
Schedule of composition of loans	At March 31, At December 31, 2022 2021 (In thousands) Real estate: 1 – 4 family $ 33,468 $ 40,753 Multifamily 262,465 254,852 Commercial real estate 62,447 48,589 Construction — — Total real estate 358,380 344,194 Commercial 451,930 432,108 Consumer 8,281 8,681 Total loans held for investment $ 818,591 $ 784,983 Deferred loan fees and unearned premiums, net (594) (466) Allowance for loan losses (9,491) (9,076) Loans held for investment, net $ 808,506 $ 775,441
Schedule of activity in allowance for loan losses	Commercial 1 ‑ 4 Family Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2022 Allowance for loan losses: Beginning balance $ 285 $ 6,319 $ 1,789 $ 552 $ — $ 131 $ 9,076 Provision (credit) for loan losses (54) 254 253 136 — 51 640 Recoveries — 2 — — — — 2 Loans charged-off — — (178) — — (49) (227) Total ending allowance balance $ 231 $ 6,575 $ 1,864 $ 688 $ — $ 133 $ 9,491 March 31, 2021 Allowance for loan losses: Beginning balance $ 342 $ 5,003 $ 1,278 $ 597 $ — $ 4,182 $ 11,402 Provision (credit) for loan losses (23) 753 247 16 — 807 1,800 Recoveries — — — — — — — Loans charged-off — — — — — (21) (21) Total ending allowance balance $ 319 $ 5,756 $ 1,525 $ 613 $ — $ 4,968 $ 13,181 Commercial 1 ‑ 4 Family Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2022 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 231 6,575 1,864 688 — 133 9,491 Total ending allowance balance $ 231 $ 6,575 $ 1,864 $ 688 $ — $ 133 $ 9,491 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 33,468 451,930 262,465 62,447 — 8,281 818,591 Total ending loans balance $ 33,468 $ 451,930 $ 262,465 $ 62,447 $ — $ 8,281 $ 818,591 Commercial 1 ‑ 4 Family Commercial Multifamily Real Estate Construction Consumer Total (In thousands) December 31, 2021 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 285 6,319 1,789 552 — 131 9,076 Total ending allowance balance $ 285 $ 6,319 $ 1,789 $ 552 $ — $ 131 $ 9,076 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 40,753 432,108 254,852 48,589 — 8,681 784,983 Total ending loans balance $ 40,753 $ 432,108 $ 254,852 $ 48,589 $ — $ 8,681 $ 784,983
Schedule of impaired loans	For the Three Months Ended March 31, 2022 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) 1-4 family $ — $ — $ — $ — Commercial — — — — Multifamily 515 — 180 — Commercial real estate — — — — Construction — — — — Consumer 2 — 2,120 — Total $ 517 $ — $ 2,300 $ —
Schedule of aging of recorded investment in past due loans	Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) March 31, 2022 1 – 4 family $ — $ — $ — $ — $ — $ 33,468 $ 33,468 Commercial 111 64 — — 175 451,755 451,930 Multifamily — — — — — 262,465 262,465 Commercial real estate — — — — — 62,447 62,447 Construction — — — — — — — Consumer 44 7 — 7 58 8,223 8,281 Total $ 155 $ 71 $ — $ 7 $ 233 $ 818,358 $ 818,591 Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) December 31, 2021 1 – 4 family $ — $ — $ — $ — $ — $ 40,753 $ 40,753 Commercial — — — — — 432,108 432,108 Multifamily 1,034 — — — 1,034 253,818 254,852 Commercial real estate — — — — — 48,589 48,589 Construction — — — — — — — Consumer 21 10 — 6 37 8,644 8,681 Total $ 1,055 $ 10 $ — $ 6 $ 1,071 $ 783,912 $ 784,983
Schedule of risk category of loans	Pass Special Mention Substandard Doubtful (In thousands) March 31, 2022 1 – 4 family $ 30,453 $ 3,015 $ — $ — Commercial 426,081 22,624 3,225 — Multifamily 261,744 — 721 — Commercial real estate 58,629 3,818 — — Construction — — — — Consumer 8,281 — — — Total $ 785,188 $ 29,457 $ 3,946 $ — Pass Special Mention Substandard Doubtful (In thousands) December 31, 2021 1 – 4 family $ 37,738 $ 3,015 $ — $ — Commercial 410,548 17,977 3,583 — Multifamily 254,131 — 721 — Commercial real estate 44,771 3,818 — — Construction — — — — Consumer 8,681 — — — Total $ 755,869 $ 24,810 $ 4,304 $ —

Noninterest Income (Tables)

Noninterest Income (Tables)	3 Months Ended
Noninterest Income (Tables)	Mar. 31, 2022
Noninterest Income.
Schedule of Consolidated of Income as components of noninterest income	For the Three Months Ended March 31, 2022 2021 (In thousands) Payment processing fees Payment processing income $ 5,100 $ 5,167 ACH income 216 203 Customer related fees, service charges and other Administrative service income 9 18 Gain on loans held for sale (1) 90 — Other 87 76 Total noninterest income $ 5,502 $ 5,464 (1) Represents a valuation adjustment on loans held for sale, not within the scope of ASC 606.

Share-Based Payment Plans (Tabl

Share-Based Payment Plans (Tables)	3 Months Ended
Share-Based Payment Plans (Tables)	Mar. 31, 2022
Share-Based Payment Plans
Schedule of option activity	Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) March 31, 2022 Outstanding at beginning of year 649,600 $ 16.66 Granted — — Exercised — — Forfeited (6,334) 25.68 Expired — — Outstanding at period end 643,266 $ 16.57 5.27 Vested or expected to vest 643,266 $ 16.57 5.27 Exercisable at period end 532,364 $ 14.43 4.44
Schedule of information related to stock option exercises	For the Three Months Ended March 31, 2022 2021 (In thousands) Intrinsic value of options exercised $ — $ 861 Cash received from option exercises — 10 Excess tax benefit from option exercises — 164
Schedule of activity related to restricted stock	Weighted Average Grant Date Shares Fair Value March 31, 2022 Outstanding at beginning of year 482,750 $ 24.59 Granted — — Vested (20,497) 19.25 Forfeited (10,750) 24.32 Outstanding at period end 451,503 $ 24.84

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
Earnings per Share (Tables)	Mar. 31, 2022
Earnings per Share
Schedule of earnings per share	For the Three Months Ended March 31, 2022 2021 (Dollars in thousands, except per share data) Basic Net income $ 5,342 $ 4,174 Weighted average shares outstanding 7,620,241 7,426,139 Basic earnings per share $ 0.70 $ 0.56 Diluted Net income $ 5,342 $ 4,174 Weighted average shares outstanding for basic earnings per share 7,620,241 7,426,139 Add: Dilutive effects of share based awards 527,234 420,137 Average shares and dilutive potential shares 8,147,475 7,846,276 Diluted earnings per share $ 0.66 $ 0.53

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2022
Leases
Schedule of maturities of operating lease liabilities	Operating Lease Liabilities (In thousands) 2022 $ 480 2023 636 2024 652 2025 668 2026 627 Thereafter — Total operating lease payments $ 3,063 Less: interest 217 Present value of operating lease liabilities $ 2,846
Schedule of lease assumptions	As of March 31, 2022 2021 Weighted-average remaining lease term 4.65 years 5.59 years Weighted-average discount rate 3.07 % 3.04 %
Schedule of lease cost	For the Three Months Ended March 31, 2022 2021 (In thousands) Operating lease cost $ 142 $ 142 Short-term lease cost — — Total lease cost $ 142 $ 142 Cash paid for operating leases $ 163 $ 159

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2022
Fair Value Measurements
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurements Using Quoted Prices In Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2022 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 111,490 $ — CMOs – agency — 22,671 — Total $ — $ 134,161 $ — December 31, 2021 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 120,881 $ — CMOs – agency — 27,503 — Total $ — $ 148,384 $ —
Schedule of carrying amounts and fair values of financial instruments	Fair Value Measurement at March 31, 2022, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 148,940 $ 1,100 $ 147,840 $ — $ 148,940 Securities purchased under agreements to resell, at cost 48,143 — — 48,143 48,143 Securities, held-to-maturity 47,544 — 44,926 — 44,926 Securities, restricted, at cost 2,680 N/A N/A N/A N/A Loans held for investment, net 808,506 — — 801,863 801,863 Accrued interest receivable 4,343 — 278 3,972 4,250 Financial Liabilities: Time deposits 19,239 — 19,178 — 19,178 Demand and other deposits 1,070,681 1,070,681 — — 1,070,681 Secured borrowings 48 — 48 — 48 Accrued interest payable — — — — — Fair Value Measurement at December 31, 2021, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 149,156 $ 2,202 $ 146,954 $ — $ 149,156 Securities purchased under agreements to resell, at cost 50,271 — — 50,271 50,271 Securities, restricted, at cost 2,680 N/A N/A N/A N/A Loans held for investment, net 775,441 — — 774,114 774,114 Accrued interest receivable 4,197 — 252 3,945 4,197 Financial Liabilities: Time deposits 19,312 — 19,330 — 19,330 Demand and other deposits 1,009,097 1,009,097 — — 1,009,097 Secured borrowings 48 — 48 — 48 Accrued interest payable — — — — —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive (Loss) Income (Tables)	3 Months Ended
Accumulated Other Comprehensive (Loss) Income (Tables)	Mar. 31, 2022
Accumulated Other Comprehensive (Loss) Income
Schedule of changes in accumulated other comprehensive (loss) income by component, net of tax	Three Months Ended March 31, 2022 2021 (In thousands) Unrealized (Losses) Gains on Available-for-Sale Securities Beginning balance $ (850) $ 1,408 Other comprehensive loss before reclassifications, net of tax (6,194) (1,485) Amounts reclassified from accumulated other comprehensive income — — Net current period other comprehensive loss (6,194) (1,485) Ending balance $ (7,044) $ (77)

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Millions	Apr. 28, 2022$ / shares	Apr. 01, 2022USD ($)	Mar. 31, 2022loan
Subsequent Event
Accounting Policies [Line Items]
Cash dividend declared \| $ / shares	$ 0.09
Payment deferral program
Accounting Policies [Line Items]
Number of delinquent loans \| loan			0
NFL Portfolio \| Fund \| Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations \| Subsequent Event
Accounting Policies [Line Items]
Non-voting economic interest \| $		$ 13.5

Debt Securities - Summary of re

Debt Securities - Summary of reconciliation of amortized cost to fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			$ 143,877	$ 149,574
Gross Unrealized Gains			111	910
Gross Unrealized Losses			(9,827)	(2,100)
Fair Value	$ 134,161	$ 148,384	134,161	148,384
Mortgage-backed securities - agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			120,157	122,258
Gross Unrealized Gains			107	673
Gross Unrealized Losses			(8,774)	(2,050)
Fair Value			111,490	120,881
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			23,720	27,316
Gross Unrealized Gains			4	237
Gross Unrealized Losses			(1,053)	(50)
Fair Value			$ 22,671	$ 27,503

Debt Securities - Summary of _2

Debt Securities - Summary of reconciliation of amortized cost to fair value for Held to maturity securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 47,544	$ 0
Gross Unrecognized Gains	0
Gross Unrecognized Losses	(2,618)
Fair Value	44,926
CMO's - agency
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	47,544
Gross Unrecognized Gains	0
Gross Unrecognized Losses	(2,618)
Fair Value	$ 44,926

Debt Securities - Summary of se

Debt Securities - Summary of securities in unrealized loss position (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	$ 83,543	$ 108,651
Gross Unrealized Losses, Less than 12 Months	(5,237)	(1,863)
Fair Value, 12 Months or Longer	40,485	4,503
Gross Unrealized Losses, 12 Months or Longer	(4,590)	(237)
Fair Value, Total	124,028	113,154
Gross Unrealized Losses, Total	(9,827)	(2,100)
Mortgage-backed securities - agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	63,981	101,235
Gross Unrealized Losses, Less than 12 Months	(4,256)	(1,813)
Fair Value, 12 Months or Longer	39,448	4,503
Gross Unrealized Losses, 12 Months or Longer	(4,518)	(237)
Fair Value, Total	103,429	105,738
Gross Unrealized Losses, Total	(8,774)	(2,050)
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	19,562	7,416
Gross Unrealized Losses, Less than 12 Months	(981)	(50)
Fair Value, 12 Months or Longer	1,037
Gross Unrealized Losses, 12 Months or Longer	(72)
Fair Value, Total	20,599	7,416
Gross Unrealized Losses, Total	$ (1,053)	$ (50)

Summary of securities in unreal

Summary of securities in unrealized loss position, held to maturity securities (Details) $ in Thousands	Mar. 31, 2022USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Fair Value, Less than 12 Months	$ 44,926
Gross Unrecognized Losses, Less than 12 Months	(2,618)
Fair Value, Total	44,926
Gross Unrecognized Losses, Total	(2,618)
CMO's - agency
Schedule of Held-to-maturity Securities [Line Items]
Fair Value, Less than 12 Months	44,926
Gross Unrecognized Losses, Less than 12 Months	(2,618)
Fair Value, Total	44,926
Gross Unrecognized Losses, Total	$ (2,618)

Debt Securities - Additional di

Debt Securities - Additional disclosures (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Sales or calls of securities		$ 0		$ 0	$ 0	$ 0
Fair value of pledged securities	$ 2,680						$ 2,680
Impairment charges	0		$ 0
Federal Home Loan Bank Advances
Debt Securities, Available-for-sale [Line Items]
Short-term debt		0			0			$ 0
Federal Reserve Bank Advances
Debt Securities, Available-for-sale [Line Items]
Short-term debt		0			0			0
Federal Reserve Bank of New York (FRB)
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities		24,600			24,600			26,900
Securities pledged borrowed amount		23,800			23,800			26,100
Federal Home Loan Bank of New York (FHLB)
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	$ 155,400							121,500
Securities pledged borrowed amount		$ 133,900			$ 133,900			$ 115,400

Loans - Summary of loan composi

Loans - Summary of loan composition (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	$ 818,591	$ 784,983
Deferred loan fees and unearned premiums, net	(594)	(466)
Allowance for loan losses	(9,491)	(9,076)	$ (13,181)	$ (11,402)
Loans held for investment, net	808,506	775,441
Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	358,380	344,194
Real Estate \| 1 - 4 Family Residential
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	33,468	40,753
Allowance for loan losses	(231)	(285)	(319)	(342)
Real Estate \| Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	262,465	254,852
Allowance for loan losses	(1,864)	(1,789)	(1,525)	(1,278)
Real Estate \| Commercial Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	62,447	48,589
Allowance for loan losses	(688)	(552)	(613)	(597)
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	451,930	432,108
Allowance for loan losses	(6,575)	(6,319)	(5,756)	(5,003)
Commercial \| SBA paycheck protection program loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	0	4,200
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	8,281	8,681
Allowance for loan losses	$ (133)	$ (131)	$ (4,968)	$ (4,182)

Loans - Summary of activity in

Loans - Summary of activity in allowance for loan losses by class (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Allowance for loan losses:
Beginning balance	$ 9,076	$ 11,402
Provision (credit) for loan losses	640	1,800
Recoveries	2	0
Loans charged-off	(227)	(21)
Total ending allowance balance	9,491	13,181
Real Estate \| 1 - 4 Family Residential
Allowance for loan losses:
Beginning balance	285	342
Provision (credit) for loan losses	(54)	(23)
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	231	319
Real Estate \| Multifamily
Allowance for loan losses:
Beginning balance	1,789	1,278
Provision (credit) for loan losses	253	247
Recoveries	0	0
Loans charged-off	(178)	0
Total ending allowance balance	1,864	1,525
Real Estate \| Commercial Real Estate
Allowance for loan losses:
Beginning balance	552	597
Provision (credit) for loan losses	136	16
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	688	613
Real Estate \| Construction
Allowance for loan losses:
Recoveries	0	0
Loans charged-off	0	0
Commercial
Allowance for loan losses:
Beginning balance	6,319	5,003
Provision (credit) for loan losses	254	753
Recoveries	2	0
Loans charged-off	0	0
Total ending allowance balance	6,575	5,756
Consumer
Allowance for loan losses:
Beginning balance	131	4,182
Provision (credit) for loan losses	51	807
Recoveries	0	0
Loans charged-off	(49)	(21)
Total ending allowance balance	$ 133	$ 4,968

Loans - Summary of balance in a

Loans - Summary of balance in allowance for loan losses and recorded investment in loans by class and based on impairment method (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 0	$ 0
Collectively evaluated for impairment	9,491	9,076
Total ending allowance balance	9,491	9,076	$ 13,181	$ 11,402
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	818,591	784,983
Total ending loans balance	818,591	784,983
Real Estate
Loans:
Total ending loans balance	358,380	344,194
Real Estate \| 1 - 4 Family Residential
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	231	285
Total ending allowance balance	231	285	319	342
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	33,468	40,753
Total ending loans balance	33,468	40,753
Real Estate \| Multifamily
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,864	1,789
Total ending allowance balance	1,864	1,789	1,525	1,278
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	262,465	254,852
Total ending loans balance	262,465	254,852
Real Estate \| Commercial Real Estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	688	552
Total ending allowance balance	688	552	613	597
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	62,447	48,589
Total ending loans balance	62,447	48,589
Real Estate \| Construction
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Loans:
Loans individually evaluated for impairment	0	0
Commercial
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	6,575	6,319
Total ending allowance balance	6,575	6,319	5,756	5,003
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	451,930	432,108
Total ending loans balance	451,930	432,108
Consumer
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	133	131
Total ending allowance balance	133	131	$ 4,968	$ 4,182
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	8,281	8,681
Total ending loans balance	$ 8,281	$ 8,681

Loans - Summary of impaired loa

Loans - Summary of impaired loans by segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 517	$ 2,300
Consumer
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	2	2,120
Real Estate \| Multifamily
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 515	$ 180

Loans - Summary of loans by pas

Loans - Summary of loans by past due status (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	$ 7	$ 6
Total Past Due & Nonaccrual Loans	233	1,071
Loans Not Past Due	818,358	783,912
Total loans held for investment	818,591	784,983
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	155	1,055
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	71	10
Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans held for investment	358,380	344,194
Real Estate \| 1 - 4 Family Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Loans Not Past Due	33,468	40,753
Total loans held for investment	33,468	40,753
Real Estate \| 1 - 4 Family Residential \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| 1 - 4 Family Residential \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| 1 - 4 Family Residential \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	1,034
Loans Not Past Due	262,465	253,818
Total loans held for investment	262,465	254,852
Real Estate \| Multifamily \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	1,034
Real Estate \| Multifamily \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Multifamily \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Loans Not Past Due	62,447	48,589
Total loans held for investment	62,447	48,589
Real Estate \| Commercial Real Estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Commercial Real Estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Commercial Real Estate \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Construction \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Construction \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Real Estate \| Construction \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	175	0
Loans Not Past Due	451,755	432,108
Total loans held for investment	451,930	432,108
Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	111	0
Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	64	0
Commercial \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	0	0
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	7	6
Total Past Due & Nonaccrual Loans	58	37
Loans Not Past Due	8,223	8,644
Total loans held for investment	8,281	8,681
Consumer \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	44	21
Consumer \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	7	10
Consumer \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	$ 0	$ 0

Loans - Summary of loans by cre

Loans - Summary of loans by credit quality indicator based on internally assigned credit grade (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)item	Mar. 31, 2021item	Dec. 31, 2021USD ($)item
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	$ 818,591		$ 784,983
Number of loans identified as troubled debt restructuring \| item	0		0
Number of loans modified \| item	0	0
Federal Reserve Bank Advances
Financing Receivable, Recorded Investment [Line Items]
Loans pledged	$ 27,300		$ 33,900
Federal Reserve Bank of New York (FRB)
Financing Receivable, Recorded Investment [Line Items]
Maximum borrowing capacity	20,900		26,000
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	785,188		755,869
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	29,457		24,810
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	3,946		4,304
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	358,380		344,194
Real Estate \| 1 - 4 Family Residential
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	33,468		40,753
Real Estate \| 1 - 4 Family Residential \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	30,453		37,738
Real Estate \| 1 - 4 Family Residential \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	3,015		3,015
Real Estate \| 1 - 4 Family Residential \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| 1 - 4 Family Residential \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| Multifamily
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	262,465		254,852
Real Estate \| Multifamily \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	261,744		254,131
Real Estate \| Multifamily \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| Multifamily \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	721		721
Real Estate \| Multifamily \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	62,447		48,589
Real Estate \| Commercial Real Estate \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	58,629		44,771
Real Estate \| Commercial Real Estate \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	3,818		3,818
Real Estate \| Commercial Real Estate \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| Commercial Real Estate \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| Construction \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| Construction \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Real Estate \| Construction \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	451,930		432,108
Commercial \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	426,081		410,548
Commercial \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	22,624		17,977
Commercial \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	3,225		3,583
Commercial \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	8,281		8,681
Consumer \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	8,281		8,681
Consumer \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Consumer \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0		0
Consumer \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	$ 0		$ 0

Noninterest Income (Details)

Noninterest Income (Details) - USD ($) $ in Thousands	3 Months Ended
Noninterest Income (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Noninterest income
Gain on loans held for sale	$ 90
Total non-interest income	5,502	$ 5,464
Payment processing income
Noninterest income
Noninterest income	5,100	5,167
ACH income
Noninterest income
Noninterest income	216	203
Administrative service income
Noninterest income
Noninterest income	9	18
Other
Noninterest income
Noninterest income	$ 87	$ 76

Share-Based Payment Plans - (De

Share-Based Payment Plans - (Details)	3 Months Ended
Share-Based Payment Plans - (Details)	Mar. 31, 2022
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of awards	10 years
Stock Options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	6 years
Vesting percentage after years four, five and six	33.30%

Share-Based Payment Plans - Sum

Share-Based Payment Plans - Summary of options activity (Details) - Stock Options - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Options
Outstanding at beginning of year	649,600
Granted	0	0
Forfeited	(6,334)
Outstanding at period end	643,266
Vested or expected to vest	643,266
Exercisable at period end	532,364
Weighted Average Exercise Price
Outstanding at beginning of year	$ 16.66
Granted	0
Forfeited	25.68
Outstanding at period end	16.57
Vested or expected to vest	16.57
Exercisable at period end	$ 14.43
Weighted Average Remaining Contractual Life (Years), outstanding at period end	5 years 3 months 7 days
Weighted Average Remaining Contractual Life (Years), vested or expected to vest	5 years 3 months 7 days
Weighted Average Remaining Contractual Life (Years), exercisable at period end	4 years 5 months 8 days

Share-Based Payment Plans - S_2

Share-Based Payment Plans - Summary of restricted stock activity (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Shares
Outstanding at beginning of year \| shares	482,750
Vested \| shares	(20,497)
Forfeited \| shares	(10,750)
Outstanding at period end \| shares	451,503
Weighted Average Grant Date Fair Value
Outstanding at beginning of year \| $ / shares	$ 24.59
Vested \| $ / shares	19.25
Forfeited \| $ / shares	24.32
Outstanding at period end \| $ / shares	$ 24.84

Share-Based Payment Plans - Add

Share-Based Payment Plans - Additional disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash received from option exercises		$ 10
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options issued	0	0
Stock options expense	$ 124	$ 134
Unrecognized compensation cost related to non-vested options	$ 1,100
Recognition period of nonvested stock options	2 years 3 months 25 days
Intrinsic value of outstanding options	$ 11,000
Intrinsic value of exercisable options	10,200
Intrinsic value of options exercised		861
Cash received from option exercises		10
Excess tax benefit from option exercises		164
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expense	437	$ 357
Unrecognized compensation cost related to non-vested options	$ 7,900
Recognition period of nonvested stock options	4 years 5 months 23 days

Earnings per Share - Summary of

Earnings per Share - Summary of earnings per share computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic
Net income	$ 5,342	$ 4,174
Weighted average shares outstanding for basic earnings per share	7,620,241	7,426,139
Basic earnings per share (in dollars per share)	$ 0.70	$ 0.56
Diluted
Net income	$ 5,342	$ 4,174
Weighted average shares outstanding for basic earnings per share	7,620,241	7,426,139
Add: Dilutive effects of share based awards	527,234	420,137
Average shares and dilutive potential shares	8,147,475	7,846,276
Diluted earnings per share (in dollars per share)	$ 0.66	$ 0.53
Stock options and restricted shares not considered in computing diluted earnings per share because they were anti-dilutive	69,150	118,350

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Leases
ROU lease assets	$ 2,300	$ 2,400
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
lease liability	$ 2,846	$ 3,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities

Leases - Maturities of operatin

Leases - Maturities of operating lease (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Maturities of operating lease liabilities
2022	$ 480
2023	636
2024	652
2025	668
2026	627
Total lease payments	3,063
Less: interest	217
Present value of operating lease liabilities	$ 2,846	$ 3,000

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Lease cost
Weighted-average remaining lease term	4 years 7 months 24 days	5 years 7 months 2 days
Weighted-average discount rate	3.07%	3.04%
Operating lease cost	$ 142	$ 142
Total lease cost	142	142
Cash paid for operating lease liability	$ 163	$ 159

Fair Value Measurements - Summa

Fair Value Measurements - Summary of assets and liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Available-for-sale securities
Securities available-for-sale, at fair value	$ 134,161	$ 148,384	$ 134,161		$ 148,384
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0			$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0			$ 0
Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value			111,490		120,881
CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value			$ 22,671		$ 27,503
Recurring \| (Level 1)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 1) \| Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 1) \| CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 2)
Available-for-sale securities
Securities available-for-sale, at fair value	134,161	148,384
Recurring \| (Level 2) \| Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value	111,490	120,881
Recurring \| (Level 2) \| CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	22,671	27,503
Recurring \| (Level 3)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 3) \| Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 3) \| CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	$ 0	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (as a percent)		9.00%
Valuation adjustment	$ 90
(Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	14,200		$ 14,100
(Level 2) \| Multifamily
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 850

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Financial Assets:
Securities purchased under agreements to resell, at cost	$ 48,143	$ 50,271
Securities available for sale	134,161	148,384	$ 134,161		$ 148,384
Securities, held to maturity	47,544	0
Securities, restricted, at cost	2,680	2,680
Loans held for investment, net	808,506	775,441
Accrued interest receivable	4,343	4,197
Financial Liabilities:
Time deposits	19,239	19,312
(Level 3)
Financial Assets:
Other assets - loans held for sale	14,200			$ 14,100
Carrying Value
Financial Assets:
Cash and cash equivalents	148,940	149,156
Securities purchased under agreements to resell, at cost	48,143	50,271
Securities, held to maturity	47,544
Securities, restricted, at cost	2,680	2,680
Loans held for investment, net	808,506	775,441
Accrued interest receivable	4,343	4,197
Financial Liabilities:
Time deposits	19,239	19,312
Demand and other deposits	1,070,681	1,009,097
Secured borrowings	48	48
Accrued interest payable	0	0
Fair Value
Financial Assets:
Cash and cash equivalents	148,940	149,156
Securities purchased under agreements to resell, at cost	48,143	50,271
Securities, held to maturity	44,926
Loans held for investment, net	801,863	774,114
Accrued interest receivable	4,250	4,197
Financial Liabilities:
Time deposits	19,178	19,330
Demand and other deposits	1,070,681	1,009,097
Secured borrowings	48	48
Accrued interest payable	0	0
Fair Value \| (Level 1)
Financial Assets:
Cash and cash equivalents	1,100	2,202
Loans held for investment, net	0	0
Accrued interest receivable	0	0
Financial Liabilities:
Time deposits		0
Demand and other deposits	1,070,681	1,009,097
Secured borrowings	0	0
Accrued interest payable	0	0
Fair Value \| (Level 2)
Financial Assets:
Cash and cash equivalents	147,840	146,954
Securities, held to maturity	44,926
Loans held for investment, net	0	0
Accrued interest receivable	278	252
Financial Liabilities:
Time deposits	19,178	19,330
Demand and other deposits	0	0
Secured borrowings	48	48
Accrued interest payable	0	0
Fair Value \| (Level 3)
Financial Assets:
Cash and cash equivalents	0	0
Securities purchased under agreements to resell, at cost	48,143	50,271
Loans held for investment, net	801,863	774,114
Accrued interest receivable	3,972	3,945
Financial Liabilities:
Time deposits		0
Demand and other deposits	0	0
Secured borrowings	0	0
Accrued interest payable	$ 0	$ 0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive (Loss) Income - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Unrealized (Losses) Gains on Available-for-Sale Securities
Beginning balance	$ (850)	$ 1,408
Other comprehensive loss before reclassifications, net of tax	(6,194)	(1,485)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current period other comprehensive loss	(6,194)	(1,485)
Ending balance	(7,044)	(77)
Reclassifications	$ 0	$ 0