Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.01 par value | |
Trading Symbol | ESQ | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,204,186 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Entity Central Index Key | 0001531031 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 120,646 | $ 164,122 |
Securities purchased under agreements to resell, at cost | 49,567 | |
Securities available-for-sale, at fair value | 114,373 | 109,269 |
Securities held-to-maturity, at cost (fair value $67,754 and $69,346, at September 30, 2023 and December 31, 2022, respectively) | 78,779 | 78,377 |
Securities, restricted, at cost | 2,928 | 2,810 |
Loans held for investment | 1,113,438 | 947,295 |
Less: allowance for loan losses | (15,328) | (12,223) |
Loans, net of allowance | 1,098,110 | 935,072 |
Premises and equipment, net | 2,503 | 2,704 |
Accrued interest receivable | 7,808 | 5,768 |
Other assets | 57,265 | 47,950 |
Total assets | 1,482,412 | 1,395,639 |
Deposits: | ||
Demand | 472,073 | 444,324 |
Savings, NOW and money market | 802,332 | 764,354 |
Time | 8,188 | 19,558 |
Total deposits | 1,282,593 | 1,228,236 |
Accrued expenses and other liabilities | 14,209 | 9,245 |
Total liabilities | 1,296,802 | 1,237,481 |
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; 8,257,673 and 8,238,041 shares issued, respectively; and 8,203,259 and 8,195,333 shares outstanding, respectively | 83 | 82 |
Additional paid-in capital | 98,868 | 96,387 |
Retained earnings | 105,405 | 77,712 |
Accumulated other comprehensive loss | (17,401) | (15,117) |
Treasury stock at cost, 54,414 and 42,708 shares, respectively | (1,345) | (906) |
Total stockholders' equity | 185,610 | 158,158 |
Total liabilities and stockholders' equity | $ 1,482,412 | $ 1,395,639 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Securities held to maturity, fair value | $ 67,754 | $ 69,346 |
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 | 8,257,673 | 8,238,041 |
Common stock, shares outstanding | 8,203,259 | 8,195,333 |
Treasury stock, shares | 54,414 | 42,708 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Loans held for investment | $ 21,408 | $ 14,055 | $ 58,160 | $ 37,499 |
Securities, includes restricted stock | 1,238 | 1,126 | 3,581 | 2,975 |
Securities purchased under agreements to resell | 158 | 377 | 1,526 | 699 |
Interest earning cash and other | 1,097 | 402 | 3,054 | 767 |
Total interest income | 23,901 | 15,960 | 66,321 | 41,940 |
Interest expense: | ||||
Savings, NOW and money market deposits | 1,988 | 368 | 4,809 | 841 |
Time deposits | 187 | 44 | 406 | 90 |
Borrowings | 1 | 1 | 3 | 3 |
Total interest expense | 2,176 | 413 | 5,218 | 934 |
Net interest income | 21,725 | 15,547 | 61,103 | 41,006 |
Provision for credit losses | 1,200 | 650 | 3,025 | 2,140 |
Net interest income after provision for loan losses | 20,525 | 14,897 | 58,078 | 38,866 |
Noninterest income: | ||||
Payment processing fees | 5,621 | 5,458 | 16,898 | 16,287 |
Administrative service income | 619 | 886 | 1,887 | 1,512 |
Gain on equity investment | (14) | 4,013 | ||
Customer related fees, service charges and other | 302 | 88 | 687 | 344 |
Total noninterest income | 6,528 | 6,432 | 23,485 | 18,143 |
Noninterest expense: | ||||
Employee compensation and benefits | 8,433 | 6,519 | 23,720 | 18,952 |
Occupancy and equipment | 836 | 760 | 2,500 | 2,260 |
Professional and consulting services | 1,325 | 840 | 4,483 | 2,298 |
FDIC and regulatory assessments | 261 | 142 | 587 | 401 |
Advertising and marketing | 467 | 480 | 1,216 | 1,109 |
Travel and business relations | 254 | 179 | 648 | 403 |
Data processing | 1,375 | 1,107 | 3,757 | 3,167 |
Other operating expenses | 808 | 811 | 2,305 | 2,019 |
Total noninterest expense | 13,759 | 10,838 | 39,216 | 30,609 |
Net income before income taxes | 13,294 | 10,491 | 42,347 | 26,400 |
Income tax expense | 3,457 | 2,780 | 11,218 | 6,996 |
Net income | $ 9,837 | $ 7,711 | $ 31,129 | $ 19,404 |
Earnings per share | ||||
Basic | $ 1.27 | $ 1.01 | $ 4.04 | $ 2.54 |
Diluted | $ 1.17 | $ 0.94 | $ 3.74 | $ 2.37 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 9,837 | $ 7,711 | $ 31,129 | $ 19,404 |
Other comprehensive income (loss): | ||||
Unrealized (losses) gains arising during the period on securities available-for-sale | (4,081) | (6,434) | (3,150) | (20,799) |
Tax effect | 1,122 | 1,769 | 866 | 5,707 |
Total other comprehensive (loss) income | (2,959) | (4,665) | (2,284) | (15,092) |
Total comprehensive income | $ 6,878 | $ 3,046 | $ 28,845 | $ 4,312 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Pre-CECL Adoption Common stock | Pre-CECL Adoption Additional paid-in capital | Pre-CECL Adoption Retained earnings | Pre-CECL Adoption Accumulated other comprehensive loss | Pre-CECL Adoption Treasury stock | Pre-CECL Adoption | Revision of Prior Period, Change in Accounting Principle, Adjustment Retained earnings | Revision of Prior Period, Change in Accounting Principle, Adjustment | As Reported Under CECL Common stock | As Reported Under CECL Additional paid-in capital | As Reported Under CECL Retained earnings | As Reported Under CECL Accumulated other comprehensive loss | As Reported Under CECL Treasury stock | As Reported Under CECL | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total |
Balance, beginning at Dec. 31, 2021 | $ 81 | $ 93,611 | $ 51,460 | $ (850) | $ (567) | $ 143,735 | ||||||||||||||
Balance, beginning (in shares) at Dec. 31, 2021 | 8,088,846 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 19,404 | 19,404 | ||||||||||||||||||
Other comprehensive income (loss) | (15,092) | (15,092) | ||||||||||||||||||
Exercise of stock options, net of repurchases | 178 | 178 | ||||||||||||||||||
Exercise of stock options, net of repurchases (in shares) | 9,598 | |||||||||||||||||||
Restricted stock forfeitures (in shares) | (13,750) | |||||||||||||||||||
Stock compensation expense | 1,827 | 1,827 | ||||||||||||||||||
Shares received related to tax withholding | (59) | (59) | ||||||||||||||||||
Shares received related to tax withholding (in shares) | (1,776) | |||||||||||||||||||
Cash dividends declared to common stockholders | (1,455) | (1,455) | ||||||||||||||||||
Balance, ending at Sep. 30, 2022 | $ 81 | 95,616 | 69,409 | (15,942) | (626) | 148,538 | ||||||||||||||
Balance, ending (in shares) at Sep. 30, 2022 | 8,082,918 | |||||||||||||||||||
Balance, beginning at Jun. 30, 2022 | $ 81 | 94,923 | 62,426 | (11,277) | (626) | 145,527 | ||||||||||||||
Balance, beginning (in shares) at Jun. 30, 2022 | 8,080,486 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 7,711 | 7,711 | ||||||||||||||||||
Other comprehensive income (loss) | (4,665) | (4,665) | ||||||||||||||||||
Exercise of stock options, net of repurchases | 7 | 7 | ||||||||||||||||||
Exercise of stock options, net of repurchases (in shares) | 2,432 | |||||||||||||||||||
Stock compensation expense | 686 | 686 | ||||||||||||||||||
Cash dividends declared to common stockholders | (728) | (728) | ||||||||||||||||||
Balance, ending at Sep. 30, 2022 | $ 81 | 95,616 | 69,409 | (15,942) | (626) | 148,538 | ||||||||||||||
Balance, ending (in shares) at Sep. 30, 2022 | 8,082,918 | |||||||||||||||||||
Balance, beginning (Accounting Standards Update 2016-13) at Dec. 31, 2022 | $ 82 | $ 96,387 | $ 77,712 | $ (15,117) | $ (906) | $ 158,158 | $ (568) | $ (568) | $ 82 | $ 96,387 | $ 77,144 | $ (15,117) | $ (906) | $ 157,590 | ||||||
Balance, beginning at Dec. 31, 2022 | 158,158 | |||||||||||||||||||
Balance, beginning (in shares) (Accounting Standards Update 2016-13) at Dec. 31, 2022 | 8,195,333 | 8,195,333 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 31,129 | 31,129 | ||||||||||||||||||
Other comprehensive income (loss) | (2,284) | (2,284) | ||||||||||||||||||
Exercise of stock options, net of repurchases | $ 1 | 102 | 103 | |||||||||||||||||
Exercise of stock options, net of repurchases (in shares) | 19,632 | |||||||||||||||||||
Stock compensation expense | 2,379 | 2,379 | ||||||||||||||||||
Shares received related to tax withholding | (153) | (153) | ||||||||||||||||||
Shares received related to tax withholding (in shares) | (3,706) | |||||||||||||||||||
Cash dividends declared to common stockholders | (2,868) | (2,868) | ||||||||||||||||||
Purchase of common stock | (286) | (286) | ||||||||||||||||||
Purchase of common stock (in shares) | (8,000) | |||||||||||||||||||
Balance, ending at Sep. 30, 2023 | $ 83 | 98,868 | 105,405 | (17,401) | (1,345) | 185,610 | ||||||||||||||
Balance, ending (in shares) at Sep. 30, 2023 | 8,203,259 | |||||||||||||||||||
Balance, beginning at Jun. 30, 2023 | $ 82 | 98,018 | 96,593 | (14,442) | (1,345) | 178,906 | ||||||||||||||
Balance, beginning (in shares) at Jun. 30, 2023 | 8,192,379 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 9,837 | 9,837 | ||||||||||||||||||
Other comprehensive income (loss) | (2,959) | (2,959) | ||||||||||||||||||
Exercise of stock options, net of repurchases | $ 1 | 49 | 50 | |||||||||||||||||
Exercise of stock options, net of repurchases (in shares) | 10,880 | |||||||||||||||||||
Stock compensation expense | 801 | 801 | ||||||||||||||||||
Cash dividends declared to common stockholders | (1,025) | (1,025) | ||||||||||||||||||
Balance, ending at Sep. 30, 2023 | $ 83 | $ 98,868 | $ 105,405 | $ (17,401) | $ (1,345) | $ 185,610 | ||||||||||||||
Balance, ending (in shares) at Sep. 30, 2023 | 8,203,259 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||
Stock options, shares repurchased | 3,728 | 2,734 | 7,146 | 2,734 |
Cash dividends per share | $ 0.125 | $ 0.09 | $ 0.35 | $ 0.09 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 31,129 | $ 19,404 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 3,025 | 2,140 |
Depreciation and amortization of premises and equipment | 529 | 533 |
Stock compensation expense | 2,379 | 1,827 |
Gain on equity investment | (4,013) | |
Gain on loans held for sale | (88) | |
Net amortization (accretion): | ||
Securities | 331 | 426 |
Loans | (1,054) | (747) |
Right of use asset | 428 | 354 |
Software | 944 | 911 |
Changes in other assets and liabilities: | ||
Accrued interest receivable | (2,040) | (1,031) |
Other assets | (9,897) | 1,619 |
Operating lease liability | (452) | (424) |
Accrued expenses and other liabilities | 4,569 | 5,355 |
Net cash provided by operating activities | 25,878 | 30,279 |
Cash flows from investing activities: | ||
Net change in loans | (165,009) | (90,181) |
Net change in securities purchased under agreements to resell | 49,567 | 46 |
Purchases of securities available-for-sale | (17,879) | (1,739) |
Purchases of securities held-to-maturity | (5,978) | (84,092) |
Principal repayments on securities available-for-sale | 9,370 | 17,602 |
Principal repayments on securities held-to-maturity | 5,500 | 3,911 |
Purchase of securities, restricted | (118) | (130) |
Payoff of loans held for sale | 600 | |
Proceeds from sale of equity investment | 5,973 | |
Purchases of premises and equipment | (328) | (51) |
Development of capitalized software | (1,884) | (1,067) |
Net cash used in investing activities | (120,786) | (155,101) |
Cash flows from financing activities: | ||
Net increase in deposits | 54,357 | 159,048 |
Decrease in borrowings | (1) | (1) |
Exercise of stock options, net of repurchases | 103 | 178 |
Tax withholding payments for vested equity awards | (153) | (59) |
Cash dividends paid to common stockholders | (2,588) | (1,375) |
Purchase of common stock | (286) | |
Net cash provided by financing activities | 51,432 | 157,791 |
(Decrease) increase in cash and cash equivalents | (43,476) | 32,969 |
Cash and cash equivalents at beginning of the period | 164,122 | 149,156 |
Cash and cash equivalents at end of the period | 120,646 | 182,125 |
Cash paid during the period for: | ||
Interest | 5,181 | 924 |
Taxes | 13,865 | 5,879 |
Noncash transactions: | ||
Dividends declared but not paid | 280 | 80 |
Cumulative change in accounting principle (Note 1) | (568) | |
Exchange of equity investment for note receivable | $ 1,750 | |
Contribution of loans held for sale in exchange for an equity interest in a variable interest entity | $ 13,500 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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 including 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 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, 2022 and 2021. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 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. Subsequent Events The Company has evaluated events for recognition and disclosure through the date of issuance. Investment in Variable Interest Entity On April 1, 2022, the Company sold its legacy National Football League (“NFL”) consumer post-settlement loan portfolio to a variable interest entity (“VIE”) in exchange for a nonvoting interest valued at $13.5 million where the Company will remain as servicer of the loan portfolio at the discretion of the VIE manager. The Company’s investment is considered a significant variable interest, but it does not have the power to direct the activities that most significantly impact the VIE’s economic performance. Therefore, the Company is not considered the primary beneficiary of this VIE and does not consolidate the entity in the Company’s financial statements. The Company’s maximum exposure to loss is limited to the carrying amount of its investment and accounted for under the equity method which is presented within other assets on the Consolidated Statement of Financial Condition. The Company recognized an equity method loss of $1.3 million on its investment in the third quarter of 2023, which is also representative of the nine months ended September 30, 2023. The NFL fund’s primary model assumptions were adjusted to extend the expected weighted average life of the underlying assets by approximately one year. As of September 30, 2023, the investment’s carrying amount was $10.7 million with a remaining life of 5.5 years. Equity Investment Without Readily Determinable Fair Value In 2018, the Company purchased a 4.95% interest in Litify, Inc. (“Litify”), a technology solution to automate and manage a law firm’s business and cases, for a cost of $2.4 million. As Litify is a private company, the investment does not have a readily determinable fair value and management has elected to determine the recorded carrying amount based on its cost adjusted for observable price changes less impairment. In 2023, Litify was reorganized into a partnership and an unrelated third party acquired a majority ownership in the reorganized entity. As party to the reorganization and sale transaction, the Company’s partnership interests were exchanged for cash and noncash consideration, resulting in a gain on its investment of $5.3 million in 2023. In addition, the Company has recorded a note receivable of $1.8 million as of September 30, 2023.There was no gain or loss on its equity investment in 2022. The equity investment and note receivable are presented within Other assets on the Consolidated Statements of Financial Condition. 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. Adoption of New Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, as amended, which replaces the incurred loss methodology with an expected loss methodology, referred to as the “current expected credit loss” (“CECL” or the “CECL Standard”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and securities held-to-maturity, as well as off-balance sheet credit exposures, including loan commitments, standby letters of credit, and financial guarantees. It significantly made changes to estimates of credit losses related to financial assets measured at amortized cost, including loans receivable and certain other contracts. In addition, the CECL Standard made changes to the accounting for available-for-sale securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale securities that management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023, are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable GAAP with a cumulative effect adjustment as of the beginning of the reporting period. The adoption of the CECL Standard resulted in an initial increase of $283 thousand to the allowance for credit losses and an increase of $500 thousand to the reserve for unfunded commitments in other liabilities. The after-tax cumulative effect of adopting the CECL Standard was a decrease to retained earnings of $568 thousand as of January 1, 2023. The following table illustrates the allowance for credit losses impact of the CECL Standard: January 1, 2023 As Reported Impact of Under Pre-CECL CECL CECL Adoption Adoption (In thousands) Assets: Loans Multifamily $ 2,025 $ 2,017 $ 8 Commercial real estate 913 1,022 (109) 1 – 4 family 61 192 (131) Commercial 9,159 8,645 514 Consumer 348 347 1 Allowance for credit losses on loans $ 12,506 $ 12,223 $ 283 Liabilities: Allowance for credit losses on unfunded commitments $ 500 $ — $ 500 Allowance for credit losses on loans held for investment. The methodology for determining the allowance for credit losses on loans held for investment is considered a critical accounting policy by management given the judgment required for determining assumptions used, uncertainty of economic forecasts, and subjectivity of any qualitative factors considered. The Company utilizes the Static Pool methodology to evaluate the adequacy of the allowance for credit losses for its entire loan portfolio. The Static Pool methodology leverages the historical loss rates on a pool of loans over a period equal to the weighted average remaining life of the portfolio. The Company incorporates reasonable and supportable forecasts as qualitative adjustments applied to the historical loss rates over the reasonable and supportable forecast period, with reversion to historical loss rates thereafter. The Company has elected a one-year reasonable and supportable forecast period and straight-line reversion to the historical loss rate over a one-year period. Forecast adjustments reflect the extent to which the Company expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. Further adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as changes in environmental conditions, such as unemployment rates, property values, or other relevant factors. Management evaluates the adequacy of the allowance on a quarterly basis. The CECL Standard requires an entity to assess whether financial assets share similar risk characteristics. If similar risk characteristics exist, management must measure expected credit losses of financial assets on a collective (pool) basis, considering the risk associated with the designated pool. If similar risk characteristics do not exist based on various factors, management must measure the financial asset for expected credit losses on an individual basis. Management may consider changes to a borrower’s circumstances impacting cash collections, delinquency and non-accrual status, probability of default, industry, or other facts and circumstances when determining whether a loan shares risk characteristics with other loans in a pool. For a loan that does not share risk characteristics with other loans in a pool and is not collateral dependent, expected credit loss is measured based on the discounted value of the expected future cash flows and the amortized cost of the loan. If an entity determines that foreclosure of the collateral is probable, or that the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, the CECL Standard requires the entity to measure expected credit losses of collateral dependent loans based on the difference between the current fair value of the collateral and the amortized cost basis of the financial asset. The fair value of the collateral is adjusted for estimated costs to sell the collateral in instances where the repayment of the loan is dependent on the sale of the collateral. As of September 30, 2023, there were no individually analyzed loans and no collateral dependent loans on the Consolidated Statements of Financial Condition. The Company evaluates its loan pooling methodology at least annually. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods: Commercial Loans and Lines of Credit (“Commercial”). Consumer. Multifamily. Commercial Real Estate (“CRE”). 1 – 4 Family. Accrued Interest Receivable. Nonaccrual. Off-Balance Sheet Credit Exposures Allowance for credit losses on securities held-to-maturity. Allowance for credit losses on securities available-for-sale. the security’s amortized cost basis is written down to fair value through income. For securities available-for-sale that do not meet these criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of the expected cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. All of the Company’s securities available-for-sale have no expected credit losses under current conditions and reasonable and supportable forecasts. Accordingly, there was no allowance for credit losses on securities available-for-sale as of September 30, 2023. Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on securities available-for-sale is excluded from the Company’s estimate of credit losses. On January 1, 2023, the Company adopted 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 adoption of the standard did not have an impact on the Company’s operating results or financial condition as there were no TDRs on January 1, 2023. Pursuant to this update, the allowance for credit losses does not need to consider anticipatory TDRs and a discounted cash flow methodology is no longer required for interest rate concessions and term extension modifications. Further, disclosure requirements which were previously relevant for TDRs have been amended and expanded generally for modifications to borrowers experiencing financial difficulty (explained further below). The Company has determined to adopt the ASU prospectively meaning that the previously applicable accounting requirements for specific allowance measurement of TDRs no longer applies to modifications executed after January 1, 2023. The Company has not historically identified TDRs prior to adoption of this ASU, and therefore does not need to determine the continued allowance measurement approach for TDRs that existed prior to January 1, 2023 because the Company has none. The Company continues to apply the guidance in ASC 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or continuation of an existing loan. If the terms of the new loan resulting from refinancing or restructuring are as favorable to the lender as the terms for comparable loans to other customers with similar risk characteristics who are not refinancing or modifying the loan with the lender, then the modification or refinancing would be accounted for as a new loan. To meet this condition, the new loan’s effective yield must be at least equal to the yield for similar loans and that the modifications of the original loan are more than minor. In this situation, any unamortized fees or costs and any prepayment penalties from the original loan are recognized in interest income. If the characteristics of the modifications do not meet those above (thus are not considered more than minor), the unamortized fees and costs will be carried forward in the amortized cost basis of the modified loan, along with any new fees received and direct costs associated with the restructuring. A modification is considered more than minor if the present value of the cash flows under the terms of the new loan are at least 10% different from the present value of cash flows under the original terms. To the extent that the allowance for credit losses on modifications is estimated through use of a discounted cash flow methodology, beginning January 1, 2023, the effective interest rate used in this measurement calculation shall be based on the post-modified contractual rate rather than the original rate of the note. Because the TDR concept no longer applies for modifications after January 1, 2023, the second TDR criterion (that a concession be provided to the borrower) is also no longer relevant to these modifications. ASU 2022-02 amends and expands modification disclosure requirements and applies to modifications to borrowers experiencing financial difficulty. |
Debt Securities
Debt Securities | 9 Months Ended |
Sep. 30, 2023 | |
Debt Securities | |
Debt Securities | NOTE 2 — Debt Securities The following tables summarize the major categories of securities as of the dates indicated: September 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 104,480 $ — $ (21,325) $ 83,155 Collateralized mortgage obligations ("CMOs") – agency 33,894 — (2,676) 31,218 Total available-for-sale $ 138,374 $ — $ (24,001) $ 114,373 September 30, 2023 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: CMOs – agency $ 78,779 $ — $ (11,025) $ 67,754 Total held-to-maturity $ 78,779 $ — $ (11,025) $ 67,754 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 111,445 $ — $ (18,500) $ 92,945 CMOs – agency 18,675 — (2,351) 16,324 Total available-for-sale $ 130,120 $ — $ (20,851) $ 109,269 December 31, 2022 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: CMOs – agency $ 78,377 $ — $ (9,031) $ 69,346 Total held-to-maturity $ 78,377 $ — $ (9,031) $ 69,346 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 and nine months ended September 30, 2023 and 2022. At September 30, 2023, securities having a fair value of $124.0 million were pledged to the Federal Home Loan Bank of New York (“FHLB”) for borrowing capacity totaling $113.0 million. At December 31, 2022, securities having a fair value of $141.5 million were pledged to the FHLB for borrowing capacity totaling $135.1 million. At September 30, 2023 and December 31, 2022, the Company had no outstanding FHLB advances. At September 30, 2023, securities having a fair value of $58.1 million were pledged to the Federal Reserve Bank of New York (“FRB”) for borrowing capacity totaling $58.2 million. At December 31, 2022, securities having a fair value of $37.1 million were pledged to the FRB for borrowing capacity totaling $36.1 million. At September 30, 2023 and December 31, 2022, 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: September 30, 2023 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 $ — $ — $ 83,155 $ (21,325) $ 83,155 $ (21,325) CMOs – agency 17,774 (84) 13,444 (2,592) 31,218 (2,676) Total available-for-sale $ 17,774 $ (84) $ 96,599 $ (23,917) $ 114,373 $ (24,001) 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 $ 5,462 $ (95) $ 62,292 $ (10,930) $ 67,754 $ (11,025) Total held-to-maturity $ 5,462 $ (95) $ 62,292 $ (10,930) $ 67,754 $ (11,025) December 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 $ 8,902 $ (725) $ 84,043 $ (17,775) $ 92,945 $ (18,500) CMOs - agency 11,798 (992) 4,526 (1,359) 16,324 (2,351) Total available-for-sale $ 20,700 $ (1,717) $ 88,569 $ (19,134) $ 109,269 $ (20,851) 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 $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) Total held-to-maturity $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) Management evaluates securities available-for-sale in unrealized loss positions to determine whether the impairment is due to credit-related factors. 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 impaired at September 30, 2023. As of September 30, 2023, none of the Company’s available-for-sale securities were in an unrealized loss position due to credit, and therefore no allowance for credit losses on available-for-sale securities was required. Additionally, there was no allowance for credit losses on securities held-to-maturity due to the high credit quality composition consisting of issuances from government sponsored agencies. Accrued interest receivable on securities totaling $499 thousand at September 30, 2023, was included in Accrued interest receivable in the Consolidated Statements of Financial Condition and excluded from amortized cost and estimated fair value in the tables above. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2023 | |
Loans | |
Loans | NOTE 3 — Loans The composition of loans by class is summarized as follows: September 30, December 31, 2023 2022 (In thousands) Real estate: Multifamily $ 327,653 $ 262,489 Commercial real estate 90,052 91,837 1 – 4 family 20,974 25,565 Construction — — Total real estate 438,679 379,891 Commercial 662,272 552,082 Consumer 13,390 16,580 Total loans held for investment 1,114,341 948,553 Deferred fees and unearned premiums, net (903) (1,258) Allowance for credit losses (15,328) (12,223) Loans held for investment, net $ 1,098,110 $ 935,072 The following tables present the activity in the allowance for credit losses by class for the three months ending September 30, 2023, under the CECL methodology, and September 30, 2022 under the incurred loss methodology: Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total (In thousands) September 30, 2023 Allowance for credit losses: Beginning balance $ 2,423 $ 867 $ 65 $ — $ 10,566 $ 258 $ 14,179 Provision (credit) for credit losses 652 (23) (2) — 462 111 1,200 Recoveries — — — — — 12 12 Loans charged-off — — — — — (63) (63) Total ending allowance balance $ 3,075 $ 844 $ 63 $ — $ 11,028 $ 318 $ 15,328 September 30, 2022 Allowance for credit losses: Beginning balance $ 1,916 $ 902 $ 253 $ — $ 7,045 $ 155 $ 10,271 Provision (credit) for credit losses 11 35 (15) — 418 201 650 Recoveries — — — — — — — Loans charged-off — — — — — (36) (36) Total ending allowance balance $ 1,927 $ 937 $ 238 $ — $ 7,463 $ 320 $ 10,885 The following tables present the activity in the allowance for credit losses by class for the nine months ending September 30, 2023, under the CECL methodology, and September 30, 2022 under the incurred loss methodology: Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total (In thousands) September 30, 2023 Allowance for credit losses: Beginning balance, prior to adoption of CECL Standard $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 Impact of adopting CECL Standard 8 (109) (131) — 514 1 283 Provision (credit) for credit losses 1,050 (69) 2 — 1,874 168 3,025 Recoveries — — — — — 28 28 Loans charged-off — — — — (5) (226) (231) Total ending allowance balance $ 3,075 $ 844 $ 63 $ — $ 11,028 $ 318 $ 15,328 September 30, 2022 Allowance for credit losses: Beginning balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 Provision (credit) for credit losses 299 385 (47) — 1,206 297 2,140 Recoveries 17 — — — 2 — 19 Loans charged-off (178) — — — (64) (108) (350) Total ending allowance balance $ 1,927 $ 937 $ 238 $ — $ 7,463 $ 320 $ 10,885 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method, prior to the adoption of the CECL Standard, as of the dates indicated. The recorded investment in loans is not adjusted for accrued interest, deferred fees and costs, and unearned premiums and discounts. Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total (In thousands) December 31, 2022 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 2,017 1,022 192 — 8,645 347 12,223 Total ending allowance balance $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 262,489 91,837 25,565 — 552,082 16,580 948,553 Total ending loans balance $ 262,489 $ 91,837 $ 25,565 $ — $ 552,082 $ 16,580 $ 948,553 There were no impaired loans as of December 31, 2022. As of September 30, 2023, there were no collateral dependent loans on the Consolidated Statements of Financial Condition. The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2023 and December 31, 2022: Total Past 30-59 60-89 90 Days Due & Days Days or More Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) September 30, 2023 Multifamily $ — $ — $ — $ — $ — $ 327,653 $ 327,653 Commercial real estate — — — — — 90,052 90,052 1 – 4 family — — — — — 20,974 20,974 Construction — — — — — — — Commercial — — — — — 662,272 662,272 Consumer 15 13 98 — 126 13,264 13,390 Total $ 15 $ 13 $ 98 $ — $ 126 $ 1,114,215 $ 1,114,341 Total Past 30-59 60-89 90 Days Due & Days Days or More Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) December 31, 2022 Multifamily $ — $ — $ — $ — $ — $ 262,489 $ 262,489 Commercial real estate — — — — — 91,837 91,837 1 – 4 family — — — — — 25,565 25,565 Construction — — — — — — — Commercial — — — — — 552,082 552,082 Consumer 36 8 — 4 48 16,532 16,580 Total $ 36 $ 8 $ — $ 4 $ 48 $ 948,505 $ 948,553 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. The following is a summary of the credit risk profile of loans, net of deferred fees and unearned premiums, by internally assigned grade as of the periods indicated, the years represent the year of originations for non-revolving loans: September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Revolving-Term Total (In thousands) Multifamily: Pass $ 81,401 $ 29,216 $ 110,458 $ 23,639 $ 22,272 $ 49,819 $ — $ — $ 316,805 Special Mention — — — 10,991 — — — — 10,991 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total 81,401 29,216 110,458 34,630 22,272 49,819 — — 327,796 Current period gross charge-offs — — — — — — — — — Commercial real estate: Pass — 58,741 10,621 1,768 5,689 9,604 — — 86,423 Special Mention 3,570 — — — — — — — 3,570 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total 3,570 58,741 10,621 1,768 5,689 9,604 — — 89,993 Current period gross charge-offs — — — — — — — — — 1-4 family: Pass — 1,870 — — 4,316 14,794 — — 20,980 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total — 1,870 — — 4,316 14,794 — — 20,980 Current period gross charge-offs — — — — — — — — — Commercial: Pass 44,459 77,569 10,810 551 — 492 523,574 1,025 658,480 Special Mention — — — — — — 2,375 — 2,375 Substandard — — — — — — 280 — 280 Doubtful — — — — — — — — — Total 44,459 77,569 10,810 551 — 492 526,229 1,025 661,135 Current period gross charge-offs — — — — — 5 — — 5 Consumer: Pass 4,824 6,741 307 459 1,155 39 — — 13,525 Special Mention — — — — — — — — — Substandard — — — — — — 9 — 9 Doubtful — — — — — — — — — Total 4,824 6,741 307 459 1,155 39 9 — 13,534 Current period gross charge-offs — 204 22 — — — — — 226 Total: Pass 130,684 174,137 132,196 26,417 33,432 74,748 523,574 1,025 1,096,213 Special Mention 3,570 — — 10,991 — — 2,375 — 16,936 Substandard — — — — — — 289 — 289 Doubtful — — — — — — — — — Total loans $ 134,254 $ 174,137 $ 132,196 $ 37,408 $ 33,432 $ 74,748 $ 526,238 $ 1,025 $ 1,113,438 Total current period gross charge-offs $ — $ 204 $ 22 $ — $ — $ 5 $ — $ — $ 231 The risk category of loans by class of loans as of December 31, 2022 is as follows: Pass Special Mention Substandard Doubtful (In thousands) December 31, 2022 Multifamily $ 258,413 $ 3,355 $ 721 $ — Commercial real estate 88,019 3,818 — — 1 – 4 family 25,565 — — — Construction — — — — Commercial 547,412 4,670 — — Consumer 14,692 1,888 — — Total $ 934,101 $ 13,731 $ 721 $ — The Company considers the performance of the loan portfolio and its impact on the allowance for credit 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. Loan Modifications 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. During the three and nine months ended September 30, 2023 and 2022, the Company did not modify the terms of any loans or commitments to lend to borrowers experiencing financial difficulty in the form of an interest rate reduction, term extension, principal forgiveness or other-than-insignificant payment delay. Pledged Loans At September 30, 2023, loans totaling $225.8 million were pledged to the FHLB for borrowing capacity totaling $167.1 million. At December 31, 2022, loans totaling $20.6 million were pledged to the FHLB for borrowing capacity totaling $14.2 million. |
Noninterest Income
Noninterest Income | 9 Months Ended |
Sep. 30, 2023 | |
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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Payment processing fees: Payment processing income $ 5,400 $ 5,250 $ 16,250 $ 15,651 ACH income 221 208 648 636 Total payment processing fees 5,621 5,458 16,898 16,287 Customer related fees, service charges and other: Administrative service income 619 886 1,887 1,512 Net (loss) gain on equity investments (1) (14) — 4,013 — Gain on loans held for sale (1) — — — 88 Other 302 88 687 256 Total customer related fees, service charges and other 907 974 6,587 1,856 Total noninterest income $ 6,528 $ 6,432 $ 23,485 $ 18,143 (1) Represents a valuation adjustment 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. During the third quarter of 2023, the Company’s remaining partnership interests in Litify were exchanged for cash and noncash consideration, resulting in a gain on its equity investment of $1.3 million. Additionally in the third quarter of 2023, the Company recognized an equity method loss of $1.3 million on its investment in a third party sponsored NFL consumer post settlement loan fund. The resulting impact was a $14 thousand net loss on equity investments in the third quarter of 2023. In the first quarter of 2023, the Company recorded a gain on its Litify investment of $4.0 million. The resulting impact to the nine months ended September 30, 2023 was a net gain on equity investments of $4.0 million. |
Share-Based Payment Plans
Share-Based Payment Plans | 9 Months Ended |
Sep. 30, 2023 | |
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 five six third 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 and nine months ended September 30, 2023 and 2022. The following table presents a summary of the activity related to options for the nine months ended September 30, 2023: Nine Months Ended September 30, 2023 Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) Outstanding at beginning of year 633,984 $ 18.61 Granted — — Exercised (26,778) 15.98 Forfeited (3,501) 36.50 Expired — — Outstanding at period end 603,705 $ 18.62 4.24 Vested or expected to vest 603,705 $ 18.62 4.24 Exercisable at period end 497,261 $ 15.16 3.32 The Company recognized compensation expense related to options of $165 thousand and $112 thousand for the three months ended September 30, 2023 and 2022, respectively. The Company recognized compensation expense related to options of $490 thousand and $347 thousand for the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023, unrecognized compensation cost related to nonvested options was approximately $826 thousand and is expected to be recognized over a weighted average period of 1.78 years. The intrinsic value for outstanding options and for options vested or expected to vest was $16.3 million and $15.2 million for exercisable options at September 30, 2023. Information related to stock option exercises during each period is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Intrinsic value of options exercised $ 476 $ 86 $ 806 $ 166 Cash received from option exercises 50 7 103 178 Excess tax benefit from option exercises 108 15 181 15 The following table presents a summary of the activity related to restricted stock for the nine months ended September 30, 2023: Nine Months Ended September 30, 2023 Weighted Average Grant Date Shares Fair Value Outstanding at beginning of year 503,225 $ 27.92 Granted — — Vested (20,500) 19.25 Forfeited — — Outstanding at period end 482,725 $ 28.28 The Company recognized compensation expense related to restricted stock of $636 thousand and $574 thousand for the three months ended September 30, 2023 and 2022, respectively. The Company recognized compensation expense related to restricted stock of $1.9 million and $1.5 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, there was $8.1 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 4.02 |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings per Share | |
Earnings per Share | NOTE 6 — Earnings per Share The factors used in the earnings per share computation follow: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands, except per share data) Basic: Net income $ 9,837 $ 7,711 $ 31,129 $ 19,404 Weighted average shares outstanding 7,717,971 7,637,407 7,711,722 7,628,903 Basic earnings per share $ 1.27 $ 1.01 $ 4.04 $ 2.54 Diluted: Net income $ 9,837 $ 7,711 $ 31,129 $ 19,404 Weighted average shares outstanding for basic earnings per share 7,717,971 7,637,407 7,711,722 7,628,903 Add: Dilutive effects of share based awards 661,141 588,807 618,387 557,194 Weighted average shares and dilutive potential shares 8,379,112 8,226,214 8,330,109 8,186,097 Diluted earnings per share $ 1.17 $ 0.94 $ 3.74 $ 2.37 Share-based awards totaling 50,500 and 61,900 shares of common stock were not considered in computing diluted earnings per common share for the three months ended September 30, 2023 and 2022, respectively, because they were anti-dilutive. Share-based awards totaling 50,500 and 65,367 shares of common stock were not considered in computing diluted earnings per common share for the nine months ended September 30, 2023 and 2022, respectively, because they were anti-dilutive. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023, right of use (“ROU”) lease assets liabilities assets liabilities As of September 30, 2023, the Company was obligated under several non-cancelable leases for certain premises and equipment. The minimum annual rental commitments, exclusive of taxes and other charges, under non-cancelable lease agreements for premises at September 30, 2023, are summarized as follows: Operating Lease Liabilities (In thousands) 2023 $ 169 2024 784 2025 803 2026 754 2027 — Thereafter — Total operating lease payments 2,510 Less: interest 152 Present value of operating lease liabilities $ 2,358 September 30, 2023 2022 Weighted-average remaining lease term 3.17 years 4.17 years Weighted-average discount rate 3.30 % 3.08 % The components of total lease cost are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Operating lease cost $ 158 $ 135 $ 473 $ 419 Short-term lease cost 55 — 176 — Total lease cost $ 213 $ 135 $ 649 $ 419 Cash paid for operating leases $ 237 $ 162 $ 673 $ 490 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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) September 30, 2023 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 83,155 $ — CMOs – agency — 31,218 — Total available-for-sale $ — $ 114,373 $ — December 31, 2022 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 92,945 $ — CMOs – agency — 16,324 — Total available-for-sale $ — $ 109,269 $ — There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2023 and 2022. The following tables present the carrying amounts and fair values (represents exit price) of financial instruments not carried at fair value at September 30, 2023 and December 31, 2022: Fair Value Measurement at September 30, 2023, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 120,646 $ 120,646 $ — $ — $ 120,646 Securities, held-to-maturity 78,779 — 67,754 — 67,754 Securities, restricted, at cost 2,928 N/A N/A N/A N/A Loans held for investment, net 1,098,110 — — 1,084,675 1,084,675 Accrued interest receivable 7,808 — 636 7,172 7,808 Financial Liabilities: Time deposits 8,188 — 8,033 — 8,033 Demand and other deposits 1,274,405 1,274,405 — — 1,274,405 Secured borrowings 45 — — 45 45 Accrued interest payable 47 — 47 — 47 Fair Value Measurement at December 31, 2022, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 164,122 $ 164,122 $ — $ — $ 164,122 Securities purchased under agreements to resell, at cost 49,567 — — 49,567 49,567 Securities, held-to-maturity 78,377 — 69,346 — 69,346 Securities, restricted, at cost 2,810 N/A N/A N/A N/A Loans held for investment, net 935,072 — — 927,481 927,481 Accrued interest receivable 5,768 — 449 5,319 5,768 Financial Liabilities: Time deposits 19,558 — 19,459 — 19,459 Demand and other deposits 1,208,678 1,208,678 — — 1,208,678 Secured borrowings 46 — — 46 46 Accrued interest payable 30 — 30 — 30 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive (Loss) Income | NOTE 9 — Accumulated Other Comprehensive Loss The following presents changes in accumulated other comprehensive loss by component, net of tax, for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Unrealized Losses on Securities Available-for-Sale Beginning balance $ (14,442) $ (11,277) $ (15,117) $ (850) Other comprehensive loss before reclassifications, net of tax (2,959) (4,665) (2,284) (15,092) Net current period other comprehensive loss (2,959) (4,665) (2,284) (15,092) Ending balance $ (17,401) $ (15,942) $ (17,401) $ (15,942) There were no reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The Interim Consolidated Financial Statements including 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 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, 2022 and 2021. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 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. |
Subsequent Events | Subsequent Events The Company has evaluated events for recognition and disclosure through the date of issuance. |
Investment in Variable Interest Entity | Investment in Variable Interest Entity On April 1, 2022, the Company sold its legacy National Football League (“NFL”) consumer post-settlement loan portfolio to a variable interest entity (“VIE”) in exchange for a nonvoting interest valued at $13.5 million where the Company will remain as servicer of the loan portfolio at the discretion of the VIE manager. The Company’s investment is considered a significant variable interest, but it does not have the power to direct the activities that most significantly impact the VIE’s economic performance. Therefore, the Company is not considered the primary beneficiary of this VIE and does not consolidate the entity in the Company’s financial statements. The Company’s maximum exposure to loss is limited to the carrying amount of its investment and accounted for under the equity method which is presented within other assets on the Consolidated Statement of Financial Condition. The Company recognized an equity method loss of $1.3 million on its investment in the third quarter of 2023, which is also representative of the nine months ended September 30, 2023. The NFL fund’s primary model assumptions were adjusted to extend the expected weighted average life of the underlying assets by approximately one year. As of September 30, 2023, the investment’s carrying amount was $10.7 million with a remaining life of 5.5 years. |
Equity Investment without Readily Determinable Fair Value | Equity Investment Without Readily Determinable Fair Value In 2018, the Company purchased a 4.95% interest in Litify, Inc. (“Litify”), a technology solution to automate and manage a law firm’s business and cases, for a cost of $2.4 million. As Litify is a private company, the investment does not have a readily determinable fair value and management has elected to determine the recorded carrying amount based on its cost adjusted for observable price changes less impairment. In 2023, Litify was reorganized into a partnership and an unrelated third party acquired a majority ownership in the reorganized entity. As party to the reorganization and sale transaction, the Company’s partnership interests were exchanged for cash and noncash consideration, resulting in a gain on its investment of $5.3 million in 2023. In addition, the Company has recorded a note receivable of $1.8 million as of September 30, 2023.There was no gain or loss on its equity investment in 2022. The equity investment and note receivable are presented within Other assets on the Consolidated Statements of Financial Condition. |
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. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, as amended, which replaces the incurred loss methodology with an expected loss methodology, referred to as the “current expected credit loss” (“CECL” or the “CECL Standard”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and securities held-to-maturity, as well as off-balance sheet credit exposures, including loan commitments, standby letters of credit, and financial guarantees. It significantly made changes to estimates of credit losses related to financial assets measured at amortized cost, including loans receivable and certain other contracts. In addition, the CECL Standard made changes to the accounting for available-for-sale securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale securities that management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023, are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable GAAP with a cumulative effect adjustment as of the beginning of the reporting period. The adoption of the CECL Standard resulted in an initial increase of $283 thousand to the allowance for credit losses and an increase of $500 thousand to the reserve for unfunded commitments in other liabilities. The after-tax cumulative effect of adopting the CECL Standard was a decrease to retained earnings of $568 thousand as of January 1, 2023. The following table illustrates the allowance for credit losses impact of the CECL Standard: January 1, 2023 As Reported Impact of Under Pre-CECL CECL CECL Adoption Adoption (In thousands) Assets: Loans Multifamily $ 2,025 $ 2,017 $ 8 Commercial real estate 913 1,022 (109) 1 – 4 family 61 192 (131) Commercial 9,159 8,645 514 Consumer 348 347 1 Allowance for credit losses on loans $ 12,506 $ 12,223 $ 283 Liabilities: Allowance for credit losses on unfunded commitments $ 500 $ — $ 500 |
Allowance for credit losses on loans held for investment | Allowance for credit losses on loans held for investment. The methodology for determining the allowance for credit losses on loans held for investment is considered a critical accounting policy by management given the judgment required for determining assumptions used, uncertainty of economic forecasts, and subjectivity of any qualitative factors considered. The Company utilizes the Static Pool methodology to evaluate the adequacy of the allowance for credit losses for its entire loan portfolio. The Static Pool methodology leverages the historical loss rates on a pool of loans over a period equal to the weighted average remaining life of the portfolio. The Company incorporates reasonable and supportable forecasts as qualitative adjustments applied to the historical loss rates over the reasonable and supportable forecast period, with reversion to historical loss rates thereafter. The Company has elected a one-year reasonable and supportable forecast period and straight-line reversion to the historical loss rate over a one-year period. Forecast adjustments reflect the extent to which the Company expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. Further adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as changes in environmental conditions, such as unemployment rates, property values, or other relevant factors. Management evaluates the adequacy of the allowance on a quarterly basis. The CECL Standard requires an entity to assess whether financial assets share similar risk characteristics. If similar risk characteristics exist, management must measure expected credit losses of financial assets on a collective (pool) basis, considering the risk associated with the designated pool. If similar risk characteristics do not exist based on various factors, management must measure the financial asset for expected credit losses on an individual basis. Management may consider changes to a borrower’s circumstances impacting cash collections, delinquency and non-accrual status, probability of default, industry, or other facts and circumstances when determining whether a loan shares risk characteristics with other loans in a pool. For a loan that does not share risk characteristics with other loans in a pool and is not collateral dependent, expected credit loss is measured based on the discounted value of the expected future cash flows and the amortized cost of the loan. If an entity determines that foreclosure of the collateral is probable, or that the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, the CECL Standard requires the entity to measure expected credit losses of collateral dependent loans based on the difference between the current fair value of the collateral and the amortized cost basis of the financial asset. The fair value of the collateral is adjusted for estimated costs to sell the collateral in instances where the repayment of the loan is dependent on the sale of the collateral. As of September 30, 2023, there were no individually analyzed loans and no collateral dependent loans on the Consolidated Statements of Financial Condition. The Company evaluates its loan pooling methodology at least annually. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods: Commercial Loans and Lines of Credit (“Commercial”). Consumer. Multifamily. Commercial Real Estate (“CRE”). 1 – 4 Family. |
Accrued Interest Receivable | Accrued Interest Receivable. |
Nonaccrual | Nonaccrual. |
Off-Balance Sheet Credit Exposures | Off-Balance Sheet Credit Exposures |
Allowance for credit losses on securities held-to-maturity | Allowance for credit losses on securities held-to-maturity. |
Allowance for credit losses on securities available-for-sale | Allowance for credit losses on securities available-for-sale. the security’s amortized cost basis is written down to fair value through income. For securities available-for-sale that do not meet these criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of the expected cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. All of the Company’s securities available-for-sale have no expected credit losses under current conditions and reasonable and supportable forecasts. Accordingly, there was no allowance for credit losses on securities available-for-sale as of September 30, 2023. Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on securities available-for-sale is excluded from the Company’s estimate of credit losses. On January 1, 2023, the Company adopted 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 adoption of the standard did not have an impact on the Company’s operating results or financial condition as there were no TDRs on January 1, 2023. Pursuant to this update, the allowance for credit losses does not need to consider anticipatory TDRs and a discounted cash flow methodology is no longer required for interest rate concessions and term extension modifications. Further, disclosure requirements which were previously relevant for TDRs have been amended and expanded generally for modifications to borrowers experiencing financial difficulty (explained further below). The Company has determined to adopt the ASU prospectively meaning that the previously applicable accounting requirements for specific allowance measurement of TDRs no longer applies to modifications executed after January 1, 2023. The Company has not historically identified TDRs prior to adoption of this ASU, and therefore does not need to determine the continued allowance measurement approach for TDRs that existed prior to January 1, 2023 because the Company has none. The Company continues to apply the guidance in ASC 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or continuation of an existing loan. If the terms of the new loan resulting from refinancing or restructuring are as favorable to the lender as the terms for comparable loans to other customers with similar risk characteristics who are not refinancing or modifying the loan with the lender, then the modification or refinancing would be accounted for as a new loan. To meet this condition, the new loan’s effective yield must be at least equal to the yield for similar loans and that the modifications of the original loan are more than minor. In this situation, any unamortized fees or costs and any prepayment penalties from the original loan are recognized in interest income. If the characteristics of the modifications do not meet those above (thus are not considered more than minor), the unamortized fees and costs will be carried forward in the amortized cost basis of the modified loan, along with any new fees received and direct costs associated with the restructuring. A modification is considered more than minor if the present value of the cash flows under the terms of the new loan are at least 10% different from the present value of cash flows under the original terms. To the extent that the allowance for credit losses on modifications is estimated through use of a discounted cash flow methodology, beginning January 1, 2023, the effective interest rate used in this measurement calculation shall be based on the post-modified contractual rate rather than the original rate of the note. Because the TDR concept no longer applies for modifications after January 1, 2023, the second TDR criterion (that a concession be provided to the borrower) is also no longer relevant to these modifications. ASU 2022-02 amends and expands modification disclosure requirements and applies to modifications to borrowers experiencing financial difficulty. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Schedule of Current Expected Credit Losses (CECL) accounting standards adoption | January 1, 2023 As Reported Impact of Under Pre-CECL CECL CECL Adoption Adoption (In thousands) Assets: Loans Multifamily $ 2,025 $ 2,017 $ 8 Commercial real estate 913 1,022 (109) 1 – 4 family 61 192 (131) Commercial 9,159 8,645 514 Consumer 348 347 1 Allowance for credit losses on loans $ 12,506 $ 12,223 $ 283 Liabilities: Allowance for credit losses on unfunded commitments $ 500 $ — $ 500 |
Debt Securities (Tables)
Debt Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Securities | |
Schedule of available-for-sale and held-to-maturity debt securities by date | September 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 104,480 $ — $ (21,325) $ 83,155 Collateralized mortgage obligations ("CMOs") – agency 33,894 — (2,676) 31,218 Total available-for-sale $ 138,374 $ — $ (24,001) $ 114,373 September 30, 2023 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: CMOs – agency $ 78,779 $ — $ (11,025) $ 67,754 Total held-to-maturity $ 78,779 $ — $ (11,025) $ 67,754 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Mortgage-backed securities – agency $ 111,445 $ — $ (18,500) $ 92,945 CMOs – agency 18,675 — (2,351) 16,324 Total available-for-sale $ 130,120 $ — $ (20,851) $ 109,269 December 31, 2022 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: CMOs – agency $ 78,377 $ — $ (9,031) $ 69,346 Total held-to-maturity $ 78,377 $ — $ (9,031) $ 69,346 |
Schedule of gross unrealized and unrecognized losses and fair value for available-for-sale and held-to-maturity debt securities in continuous unrealized loss positions | September 30, 2023 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 $ — $ — $ 83,155 $ (21,325) $ 83,155 $ (21,325) CMOs – agency 17,774 (84) 13,444 (2,592) 31,218 (2,676) Total available-for-sale $ 17,774 $ (84) $ 96,599 $ (23,917) $ 114,373 $ (24,001) 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 $ 5,462 $ (95) $ 62,292 $ (10,930) $ 67,754 $ (11,025) Total held-to-maturity $ 5,462 $ (95) $ 62,292 $ (10,930) $ 67,754 $ (11,025) December 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 $ 8,902 $ (725) $ 84,043 $ (17,775) $ 92,945 $ (18,500) CMOs - agency 11,798 (992) 4,526 (1,359) 16,324 (2,351) Total available-for-sale $ 20,700 $ (1,717) $ 88,569 $ (19,134) $ 109,269 $ (20,851) 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 $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) Total held-to-maturity $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans | |
Schedule of composition of loans by class | September 30, December 31, 2023 2022 (In thousands) Real estate: Multifamily $ 327,653 $ 262,489 Commercial real estate 90,052 91,837 1 – 4 family 20,974 25,565 Construction — — Total real estate 438,679 379,891 Commercial 662,272 552,082 Consumer 13,390 16,580 Total loans held for investment 1,114,341 948,553 Deferred fees and unearned premiums, net (903) (1,258) Allowance for credit losses (15,328) (12,223) Loans held for investment, net $ 1,098,110 $ 935,072 |
Schedule of activity in the allowance for credit losses by class (CECL and incurred loss methodologies) | Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total (In thousands) September 30, 2023 Allowance for credit losses: Beginning balance $ 2,423 $ 867 $ 65 $ — $ 10,566 $ 258 $ 14,179 Provision (credit) for credit losses 652 (23) (2) — 462 111 1,200 Recoveries — — — — — 12 12 Loans charged-off — — — — — (63) (63) Total ending allowance balance $ 3,075 $ 844 $ 63 $ — $ 11,028 $ 318 $ 15,328 September 30, 2022 Allowance for credit losses: Beginning balance $ 1,916 $ 902 $ 253 $ — $ 7,045 $ 155 $ 10,271 Provision (credit) for credit losses 11 35 (15) — 418 201 650 Recoveries — — — — — — — Loans charged-off — — — — — (36) (36) Total ending allowance balance $ 1,927 $ 937 $ 238 $ — $ 7,463 $ 320 $ 10,885 Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total (In thousands) September 30, 2023 Allowance for credit losses: Beginning balance, prior to adoption of CECL Standard $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 Impact of adopting CECL Standard 8 (109) (131) — 514 1 283 Provision (credit) for credit losses 1,050 (69) 2 — 1,874 168 3,025 Recoveries — — — — — 28 28 Loans charged-off — — — — (5) (226) (231) Total ending allowance balance $ 3,075 $ 844 $ 63 $ — $ 11,028 $ 318 $ 15,328 September 30, 2022 Allowance for credit losses: Beginning balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 Provision (credit) for credit losses 299 385 (47) — 1,206 297 2,140 Recoveries 17 — — — 2 — 19 Loans charged-off (178) — — — (64) (108) (350) Total ending allowance balance $ 1,927 $ 937 $ 238 $ — $ 7,463 $ 320 $ 10,885 |
Schedule of balance in the allowance for loan losses and recorded investment in loans by portfolio segment (prior to the adoption of CECL) | Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total (In thousands) December 31, 2022 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 2,017 1,022 192 — 8,645 347 12,223 Total ending allowance balance $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 262,489 91,837 25,565 — 552,082 16,580 948,553 Total ending loans balance $ 262,489 $ 91,837 $ 25,565 $ — $ 552,082 $ 16,580 $ 948,553 |
Schedule of the aging of the recorded investment in past due loans by class | Total Past 30-59 60-89 90 Days Due & Days Days or More Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) September 30, 2023 Multifamily $ — $ — $ — $ — $ — $ 327,653 $ 327,653 Commercial real estate — — — — — 90,052 90,052 1 – 4 family — — — — — 20,974 20,974 Construction — — — — — — — Commercial — — — — — 662,272 662,272 Consumer 15 13 98 — 126 13,264 13,390 Total $ 15 $ 13 $ 98 $ — $ 126 $ 1,114,215 $ 1,114,341 Total Past 30-59 60-89 90 Days Due & Days Days or More Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) December 31, 2022 Multifamily $ — $ — $ — $ — $ — $ 262,489 $ 262,489 Commercial real estate — — — — — 91,837 91,837 1 – 4 family — — — — — 25,565 25,565 Construction — — — — — — — Commercial — — — — — 552,082 552,082 Consumer 36 8 — 4 48 16,532 16,580 Total $ 36 $ 8 $ — $ 4 $ 48 $ 948,505 $ 948,553 |
Schedule of credit risk profile of loans, net of deferred fees and unearned premium, by internally assigned grade for non-revolving loans | September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Revolving-Term Total (In thousands) Multifamily: Pass $ 81,401 $ 29,216 $ 110,458 $ 23,639 $ 22,272 $ 49,819 $ — $ — $ 316,805 Special Mention — — — 10,991 — — — — 10,991 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total 81,401 29,216 110,458 34,630 22,272 49,819 — — 327,796 Current period gross charge-offs — — — — — — — — — Commercial real estate: Pass — 58,741 10,621 1,768 5,689 9,604 — — 86,423 Special Mention 3,570 — — — — — — — 3,570 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total 3,570 58,741 10,621 1,768 5,689 9,604 — — 89,993 Current period gross charge-offs — — — — — — — — — 1-4 family: Pass — 1,870 — — 4,316 14,794 — — 20,980 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total — 1,870 — — 4,316 14,794 — — 20,980 Current period gross charge-offs — — — — — — — — — Commercial: Pass 44,459 77,569 10,810 551 — 492 523,574 1,025 658,480 Special Mention — — — — — — 2,375 — 2,375 Substandard — — — — — — 280 — 280 Doubtful — — — — — — — — — Total 44,459 77,569 10,810 551 — 492 526,229 1,025 661,135 Current period gross charge-offs — — — — — 5 — — 5 Consumer: Pass 4,824 6,741 307 459 1,155 39 — — 13,525 Special Mention — — — — — — — — — Substandard — — — — — — 9 — 9 Doubtful — — — — — — — — — Total 4,824 6,741 307 459 1,155 39 9 — 13,534 Current period gross charge-offs — 204 22 — — — — — 226 Total: Pass 130,684 174,137 132,196 26,417 33,432 74,748 523,574 1,025 1,096,213 Special Mention 3,570 — — 10,991 — — 2,375 — 16,936 Substandard — — — — — — 289 — 289 Doubtful — — — — — — — — — Total loans $ 134,254 $ 174,137 $ 132,196 $ 37,408 $ 33,432 $ 74,748 $ 526,238 $ 1,025 $ 1,113,438 Total current period gross charge-offs $ — $ 204 $ 22 $ — $ — $ 5 $ — $ — $ 231 |
Schedule of the risk category of loans by class | Pass Special Mention Substandard Doubtful (In thousands) December 31, 2022 Multifamily $ 258,413 $ 3,355 $ 721 $ — Commercial real estate 88,019 3,818 — — 1 – 4 family 25,565 — — — Construction — — — — Commercial 547,412 4,670 — — Consumer 14,692 1,888 — — Total $ 934,101 $ 13,731 $ 721 $ — |
Noninterest Income (Tables)
Noninterest Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Noninterest Income. | |
Schedule of revenue from contracts with customers, components of noninterest income | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Payment processing fees: Payment processing income $ 5,400 $ 5,250 $ 16,250 $ 15,651 ACH income 221 208 648 636 Total payment processing fees 5,621 5,458 16,898 16,287 Customer related fees, service charges and other: Administrative service income 619 886 1,887 1,512 Net (loss) gain on equity investments (1) (14) — 4,013 — Gain on loans held for sale (1) — — — 88 Other 302 88 687 256 Total customer related fees, service charges and other 907 974 6,587 1,856 Total noninterest income $ 6,528 $ 6,432 $ 23,485 $ 18,143 (1) Represents a valuation adjustment not within the scope of ASC 606. |
Share-Based Payment Plans (Tabl
Share-Based Payment Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Plans | |
Schedule of activity related to stock options | Nine Months Ended September 30, 2023 Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) Outstanding at beginning of year 633,984 $ 18.61 Granted — — Exercised (26,778) 15.98 Forfeited (3,501) 36.50 Expired — — Outstanding at period end 603,705 $ 18.62 4.24 Vested or expected to vest 603,705 $ 18.62 4.24 Exercisable at period end 497,261 $ 15.16 3.32 |
Schedule of stock option exercises during the period | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Intrinsic value of options exercised $ 476 $ 86 $ 806 $ 166 Cash received from option exercises 50 7 103 178 Excess tax benefit from option exercises 108 15 181 15 |
Schedule of activity related to restricted stock | Nine Months Ended September 30, 2023 Weighted Average Grant Date Shares Fair Value Outstanding at beginning of year 503,225 $ 27.92 Granted — — Vested (20,500) 19.25 Forfeited — — Outstanding at period end 482,725 $ 28.28 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings per Share | |
Schedule of components used in computation of earnings per share | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands, except per share data) Basic: Net income $ 9,837 $ 7,711 $ 31,129 $ 19,404 Weighted average shares outstanding 7,717,971 7,637,407 7,711,722 7,628,903 Basic earnings per share $ 1.27 $ 1.01 $ 4.04 $ 2.54 Diluted: Net income $ 9,837 $ 7,711 $ 31,129 $ 19,404 Weighted average shares outstanding for basic earnings per share 7,717,971 7,637,407 7,711,722 7,628,903 Add: Dilutive effects of share based awards 661,141 588,807 618,387 557,194 Weighted average shares and dilutive potential shares 8,379,112 8,226,214 8,330,109 8,186,097 Diluted earnings per share $ 1.17 $ 0.94 $ 3.74 $ 2.37 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of minimum annual rental commitments, exclusive of taxes and other charges, under under non-cancellable lease agreements | Operating Lease Liabilities (In thousands) 2023 $ 169 2024 784 2025 803 2026 754 2027 — Thereafter — Total operating lease payments 2,510 Less: interest 152 Present value of operating lease liabilities $ 2,358 |
Schedule of weighted-average remaining term and discount rates associated with non-cancelable lease agreements | September 30, 2023 2022 Weighted-average remaining lease term 3.17 years 4.17 years Weighted-average discount rate 3.30 % 3.08 % |
Schedule of total lease cost components | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Operating lease cost $ 158 $ 135 $ 473 $ 419 Short-term lease cost 55 — 176 — Total lease cost $ 213 $ 135 $ 649 $ 419 Cash paid for operating leases $ 237 $ 162 $ 673 $ 490 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Schedule of assets and liabilities 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) September 30, 2023 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 83,155 $ — CMOs – agency — 31,218 — Total available-for-sale $ — $ 114,373 $ — December 31, 2022 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 92,945 $ — CMOs – agency — 16,324 — Total available-for-sale $ — $ 109,269 $ — |
Schedule of carrying amounts and fair values (exit prices) of financial instruments not carried at fair value | Fair Value Measurement at September 30, 2023, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 120,646 $ 120,646 $ — $ — $ 120,646 Securities, held-to-maturity 78,779 — 67,754 — 67,754 Securities, restricted, at cost 2,928 N/A N/A N/A N/A Loans held for investment, net 1,098,110 — — 1,084,675 1,084,675 Accrued interest receivable 7,808 — 636 7,172 7,808 Financial Liabilities: Time deposits 8,188 — 8,033 — 8,033 Demand and other deposits 1,274,405 1,274,405 — — 1,274,405 Secured borrowings 45 — — 45 45 Accrued interest payable 47 — 47 — 47 Fair Value Measurement at December 31, 2022, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 164,122 $ 164,122 $ — $ — $ 164,122 Securities purchased under agreements to resell, at cost 49,567 — — 49,567 49,567 Securities, held-to-maturity 78,377 — 69,346 — 69,346 Securities, restricted, at cost 2,810 N/A N/A N/A N/A Loans held for investment, net 935,072 — — 927,481 927,481 Accrued interest receivable 5,768 — 449 5,319 5,768 Financial Liabilities: Time deposits 19,558 — 19,459 — 19,459 Demand and other deposits 1,208,678 1,208,678 — — 1,208,678 Secured borrowings 46 — — 46 46 Accrued interest payable 30 — 30 — 30 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Loss | |
Schedule of changes in accumulated other comprehensive loss by component, net of tax | Three Months Ended Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Unrealized Losses on Securities Available-for-Sale Beginning balance $ (14,442) $ (11,277) $ (15,117) $ (850) Other comprehensive loss before reclassifications, net of tax (2,959) (4,665) (2,284) (15,092) Net current period other comprehensive loss (2,959) (4,665) (2,284) (15,092) Ending balance $ (17,401) $ (15,942) $ (17,401) $ (15,942) |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2022 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2018 | |
Litify LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment ownership percentage | 4.95% | ||||
Equity investment aggregate cost | $ 2.4 | ||||
Cash and cash equivalents received in partial sale of equity investment | $ 5.3 | ||||
Gain (loss) on equity investment | $ 4 | 4 | |||
Notes receivable | $ 1.8 | 1.8 | |||
Legacy NFL Portfolio | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain (loss) on equity investment | (1.3) | 14 | |||
Legacy NFL Portfolio | Exchange of Portfolio for Interest in Non-voting VIE | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Post-settlement loan portfolio fair value | $ 13.5 | ||||
Non-voting Interest in VIE | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment carrying amount | 10.7 | 10.7 | |||
Gain (loss) on equity investment | $ 1.3 | $ (1.3) |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Adoption of CECL (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans | |||||||
Allowance for credit losses on loans | $ 15,328 | $ 12,223 | $ 10,885 | $ 10,271 | $ 9,076 | ||
Liabilities | |||||||
Retained earnings | (105,405) | (77,712) | |||||
Real Estate Loans Segment | Multifamily | |||||||
Loans | |||||||
Allowance for credit losses on loans | 3,075 | 2,017 | 1,927 | 1,916 | 1,789 | ||
Real Estate Loans Segment | Commercial real estate | |||||||
Loans | |||||||
Allowance for credit losses on loans | 844 | 1,022 | 937 | 902 | 552 | ||
Real Estate Loans Segment | 1-4 family | |||||||
Loans | |||||||
Allowance for credit losses on loans | 63 | 192 | 238 | 253 | 285 | ||
Commercial Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 11,028 | 8,645 | 7,463 | 7,045 | 6,319 | ||
Consumer Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | $ 318 | 347 | $ 320 | $ 155 | $ 131 | ||
As Reported Under CECL | |||||||
Loans | |||||||
Allowance for credit losses on loans | $ 12,506 | ||||||
Liabilities | |||||||
Allowance for credit losses on unfunded commitments | 500 | ||||||
As Reported Under CECL | Real Estate Loans Segment | Multifamily | |||||||
Loans | |||||||
Allowance for credit losses on loans | 2,025 | ||||||
As Reported Under CECL | Real Estate Loans Segment | Commercial real estate | |||||||
Loans | |||||||
Allowance for credit losses on loans | 913 | ||||||
As Reported Under CECL | Real Estate Loans Segment | 1-4 family | |||||||
Loans | |||||||
Allowance for credit losses on loans | 61 | ||||||
As Reported Under CECL | Commercial Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 9,159 | ||||||
As Reported Under CECL | Consumer Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 348 | ||||||
Pre-CECL Adoption | |||||||
Loans | |||||||
Allowance for credit losses on loans | 12,223 | ||||||
Pre-CECL Adoption | Real Estate Loans Segment | Multifamily | |||||||
Loans | |||||||
Allowance for credit losses on loans | 2,017 | ||||||
Pre-CECL Adoption | Real Estate Loans Segment | Commercial real estate | |||||||
Loans | |||||||
Allowance for credit losses on loans | 1,022 | ||||||
Pre-CECL Adoption | Real Estate Loans Segment | 1-4 family | |||||||
Loans | |||||||
Allowance for credit losses on loans | 192 | ||||||
Pre-CECL Adoption | Commercial Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 8,645 | ||||||
Pre-CECL Adoption | Consumer Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 347 | ||||||
Impact of CECL Adoption | |||||||
Loans | |||||||
Allowance for credit losses on loans | 283 | ||||||
Liabilities | |||||||
Allowance for credit losses on unfunded commitments | 500 | ||||||
Impact of CECL Adoption | Real Estate Loans Segment | Multifamily | |||||||
Loans | |||||||
Allowance for credit losses on loans | 8 | ||||||
Impact of CECL Adoption | Real Estate Loans Segment | Commercial real estate | |||||||
Loans | |||||||
Allowance for credit losses on loans | (109) | ||||||
Impact of CECL Adoption | Real Estate Loans Segment | 1-4 family | |||||||
Loans | |||||||
Allowance for credit losses on loans | (131) | ||||||
Impact of CECL Adoption | Commercial Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 514 | ||||||
Impact of CECL Adoption | Consumer Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 1 | ||||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | |||||||
Loans | |||||||
Allowance for credit losses on loans | $ 14,179 | 12,223 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Real Estate Loans Segment | Multifamily | |||||||
Loans | |||||||
Allowance for credit losses on loans | 2,423 | 2,017 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Real Estate Loans Segment | Commercial real estate | |||||||
Loans | |||||||
Allowance for credit losses on loans | 867 | 1,022 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Real Estate Loans Segment | 1-4 family | |||||||
Loans | |||||||
Allowance for credit losses on loans | 65 | 192 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Commercial Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 10,566 | 8,645 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Consumer Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | $ 258 | 347 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | |||||||
Loans | |||||||
Allowance for credit losses on loans | 283 | ||||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Real Estate Loans Segment | Multifamily | |||||||
Loans | |||||||
Allowance for credit losses on loans | 8 | ||||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Real Estate Loans Segment | Commercial real estate | |||||||
Loans | |||||||
Allowance for credit losses on loans | (109) | ||||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Real Estate Loans Segment | 1-4 family | |||||||
Loans | |||||||
Allowance for credit losses on loans | (131) | ||||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Commercial Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 514 | ||||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Consumer Loans Segment | |||||||
Loans | |||||||
Allowance for credit losses on loans | $ 1 | ||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Loans | |||||||
Allowance for credit losses on loans | 283 | ||||||
Liabilities | |||||||
Allowance for credit losses on unfunded commitments | 500 | ||||||
Retained earnings | $ 568 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Forecast period for expected loan losses | 1 year |
Held-to-maturity securities, historical credit losses | $ 0 |
Held-to-maturity securities, allowance for credit losses | 0 |
Available-for-sale securities, allowance for credit losses | $ 0 |
Minimum | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Loan modifications, threshold to determine minor changes | 10% |
Nonaccrual Loans Past Due | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Days of non-payment before delinquent | 90 days |
Days of non-payment until charged-off | 120 days |
Days on non-payment until loan reclassified as nonaccrual | 90 days |
Debt Securities - Summary of re
Debt Securities - Summary of reconciliation of amortized cost to fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 138,374 | $ 130,120 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (24,001) | (20,851) |
Fair Value | 114,373 | 109,269 |
Mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 104,480 | 111,445 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (21,325) | (18,500) |
Fair Value | 83,155 | 92,945 |
CMO's - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 33,894 | 18,675 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,676) | (2,351) |
Fair Value | $ 31,218 | $ 16,324 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 78,779 | $ 78,377 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | (11,025) | (9,031) |
Fair Value | 67,754 | 69,346 |
CMO's - agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 78,779 | 78,377 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | (11,025) | (9,031) |
Fair Value | $ 67,754 | $ 69,346 |
Debt Securities - Summary of un
Debt Securities - Summary of unrealized loss position, available for sale securities (Details) - Temporarily Impaired Securities - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 17,774 | $ 20,700 |
Gross Unrealized Losses, Less than 12 Months | (84) | (1,717) |
Fair Value, 12 Months or Longer | 96,599 | 88,569 |
Gross Unrealized Losses, 12 Months or Longer | (23,917) | (19,134) |
Fair Value, Total | 114,373 | 109,269 |
Gross Unrealized Losses, Total | (24,001) | (20,851) |
Mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 8,902 | |
Gross Unrealized Losses, Less than 12 Months | (725) | |
Fair Value, 12 Months or Longer | 83,155 | 84,043 |
Gross Unrealized Losses, 12 Months or Longer | (21,325) | (17,775) |
Fair Value, Total | 83,155 | 92,945 |
Gross Unrealized Losses, Total | (21,325) | (18,500) |
CMO's - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 17,774 | 11,798 |
Gross Unrealized Losses, Less than 12 Months | (84) | (992) |
Fair Value, 12 Months or Longer | 13,444 | 4,526 |
Gross Unrealized Losses, 12 Months or Longer | (2,592) | (1,359) |
Fair Value, Total | 31,218 | 16,324 |
Gross Unrealized Losses, Total | $ (2,676) | $ (2,351) |
Debt Securities - Summary of _3
Debt Securities - Summary of unrealized loss position, held to maturity securities (Details) - Temporarily Impaired Securities - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 5,462 | $ 69,346 |
Gross Unrecognized Losses, Less than 12 Months | (95) | (9,031) |
Fair Value, 12 Months or Longer | 62,292 | |
Gross Unrecognized Losses, 12 Months or Longer | (10,930) | |
Fair Value, Total | 67,754 | 69,346 |
Gross Unrecognized Losses, Total | (11,025) | (9,031) |
CMO's - agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 Months | 5,462 | 69,346 |
Gross Unrecognized Losses, Less than 12 Months | (95) | (9,031) |
Fair Value, 12 Months or Longer | 62,292 | |
Gross Unrecognized Losses, 12 Months or Longer | (10,930) | |
Fair Value, Total | 67,754 | 69,346 |
Gross Unrecognized Losses, Total | $ (11,025) | $ (9,031) |
Debt Securities - Additional In
Debt Securities - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||
Sales or calls of securities | $ 0 | $ 0 | |
Fair value of pledged securities | 2,928,000 | $ 2,810,000 | |
Available-for-sale securities, allowance for credit losses | 0 | ||
Held-to-maturity securities, allowance for credit losses | 0 | ||
Accrued interest, available-for-sale securities | 499,000 | ||
Federal Home Loan Bank Advances | |||
Debt Securities, Available-for-sale [Line Items] | |||
Short-term debt | 0 | 0 | |
Federal Reserve Bank Advances | |||
Debt Securities, Available-for-sale [Line Items] | |||
Short-term debt | 0 | 0 | |
Federal Reserve Bank of New York (FRB) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value of pledged securities | 58,100,000 | 37,100,000 | |
Securities pledged borrowed amount | 58,200,000 | 36,100,000 | |
Federal Home Loan Bank of New York (FHLB) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value of pledged securities | 124,000,000 | 141,500,000 | |
Securities pledged borrowed amount | $ 113,000,000 | $ 135,100,000 |
Loans - Summary of loan composi
Loans - Summary of loan compositions by class (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans held for investment | $ 1,114,341 | $ 948,553 | |||
Deferred loan fees and unearned premiums, net | (903) | (1,258) | |||
Allowance for loan losses | (15,328) | (12,223) | $ (10,885) | $ (10,271) | $ (9,076) |
Loans held for investment, net | 1,098,110 | 935,072 | |||
Real Estate Loans Segment | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans held for investment | 438,679 | 379,891 | |||
Real Estate Loans Segment | Multifamily | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans held for investment | 327,653 | 262,489 | |||
Allowance for loan losses | (3,075) | (2,017) | (1,927) | (1,916) | (1,789) |
Real Estate Loans Segment | Commercial real estate | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans held for investment | 90,052 | 91,837 | |||
Allowance for loan losses | (844) | (1,022) | (937) | (902) | (552) |
Real Estate Loans Segment | 1-4 family | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans held for investment | 20,974 | 25,565 | |||
Allowance for loan losses | (63) | (192) | (238) | (253) | (285) |
Commercial Loans Segment | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans held for investment | 662,272 | 552,082 | |||
Allowance for loan losses | (11,028) | (8,645) | (7,463) | (7,045) | (6,319) |
Consumer Loans Segment | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans held for investment | 13,390 | 16,580 | |||
Allowance for loan losses | $ (318) | $ (347) | $ (320) | $ (155) | $ (131) |
Loans - Summary of activity in
Loans - Summary of activity in allowance for loan losses by class (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for loan losses: | ||||
Beginning balance | $ 10,271 | $ 12,223 | $ 9,076 | |
Provision (credit) for loan losses | $ 1,200 | 650 | 3,025 | 2,140 |
Recoveries | 12 | 0 | 28 | 19 |
Loans charged-off | (63) | (36) | (231) | (350) |
Total ending allowance balance | 15,328 | 10,885 | 15,328 | 10,885 |
Accounting Standards Update 2016-13 | Pre-CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 14,179 | 12,223 | ||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 283 | |||
Real Estate Loans Segment | Multifamily | ||||
Allowance for loan losses: | ||||
Beginning balance | 1,916 | 2,017 | 1,789 | |
Provision (credit) for loan losses | 652 | 11 | 1,050 | 299 |
Recoveries | 0 | 0 | 17 | |
Loans charged-off | 0 | 0 | (178) | |
Total ending allowance balance | 3,075 | 1,927 | 3,075 | 1,927 |
Real Estate Loans Segment | Multifamily | Accounting Standards Update 2016-13 | Pre-CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 2,423 | 2,017 | ||
Real Estate Loans Segment | Multifamily | Accounting Standards Update 2016-13 | Impact of CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 8 | |||
Real Estate Loans Segment | Commercial real estate | ||||
Allowance for loan losses: | ||||
Beginning balance | 902 | 1,022 | 552 | |
Provision (credit) for loan losses | (23) | 35 | (69) | 385 |
Recoveries | 0 | 0 | ||
Loans charged-off | 0 | 0 | ||
Total ending allowance balance | 844 | 937 | 844 | 937 |
Real Estate Loans Segment | Commercial real estate | Accounting Standards Update 2016-13 | Pre-CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 867 | 1,022 | ||
Real Estate Loans Segment | Commercial real estate | Accounting Standards Update 2016-13 | Impact of CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | (109) | |||
Real Estate Loans Segment | 1-4 family | ||||
Allowance for loan losses: | ||||
Beginning balance | 253 | 192 | 285 | |
Provision (credit) for loan losses | (2) | (15) | 2 | (47) |
Recoveries | 0 | 0 | ||
Loans charged-off | 0 | 0 | ||
Total ending allowance balance | 63 | 238 | 63 | 238 |
Real Estate Loans Segment | 1-4 family | Accounting Standards Update 2016-13 | Pre-CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 65 | 192 | ||
Real Estate Loans Segment | 1-4 family | Accounting Standards Update 2016-13 | Impact of CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | (131) | |||
Real Estate Loans Segment | Construction | ||||
Allowance for loan losses: | ||||
Recoveries | 0 | 0 | ||
Loans charged-off | 0 | 0 | ||
Commercial Loans Segment | ||||
Allowance for loan losses: | ||||
Beginning balance | 7,045 | 8,645 | 6,319 | |
Provision (credit) for loan losses | 462 | 418 | 1,874 | 1,206 |
Recoveries | 0 | 0 | 2 | |
Loans charged-off | 0 | 0 | (5) | (64) |
Total ending allowance balance | 11,028 | 7,463 | 11,028 | 7,463 |
Commercial Loans Segment | Accounting Standards Update 2016-13 | Pre-CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 10,566 | 8,645 | ||
Commercial Loans Segment | Accounting Standards Update 2016-13 | Impact of CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | 514 | |||
Consumer Loans Segment | ||||
Allowance for loan losses: | ||||
Beginning balance | 155 | 347 | 131 | |
Provision (credit) for loan losses | 111 | 201 | 168 | 297 |
Recoveries | 12 | 0 | 28 | |
Loans charged-off | (63) | (36) | (226) | (108) |
Total ending allowance balance | 318 | $ 320 | 318 | $ 320 |
Consumer Loans Segment | Accounting Standards Update 2016-13 | Pre-CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | $ 258 | 347 | ||
Consumer Loans Segment | Accounting Standards Update 2016-13 | Impact of CECL Adoption | ||||
Allowance for loan losses: | ||||
Beginning balance | $ 1 |
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 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | $ 0 | ||||
Collectively evaluated for impairment | 12,223 | ||||
Total ending allowance balance | $ 15,328 | 12,223 | $ 10,885 | $ 10,271 | $ 9,076 |
Loans: | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 948,553 | ||||
Total ending loans balance | 1,114,341 | 948,553 | |||
Real Estate Loans Segment | |||||
Loans: | |||||
Total ending loans balance | 438,679 | 379,891 | |||
Real Estate Loans Segment | Multifamily | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 2,017 | ||||
Total ending allowance balance | 3,075 | 2,017 | 1,927 | 1,916 | 1,789 |
Loans: | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 262,489 | ||||
Total ending loans balance | 327,653 | 262,489 | |||
Real Estate Loans Segment | Commercial real estate | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 1,022 | ||||
Total ending allowance balance | 844 | 1,022 | 937 | 902 | 552 |
Loans: | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 91,837 | ||||
Total ending loans balance | 90,052 | 91,837 | |||
Real Estate Loans Segment | 1-4 family | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 192 | ||||
Total ending allowance balance | 63 | 192 | 238 | 253 | 285 |
Loans: | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 25,565 | ||||
Total ending loans balance | 20,974 | 25,565 | |||
Real Estate Loans Segment | Construction | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Loans: | |||||
Loans individually evaluated for impairment | 0 | ||||
Commercial Loans Segment | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 8,645 | ||||
Total ending allowance balance | 11,028 | 8,645 | 7,463 | 7,045 | 6,319 |
Loans: | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 552,082 | ||||
Total ending loans balance | 662,272 | 552,082 | |||
Consumer Loans Segment | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 347 | ||||
Total ending allowance balance | 318 | 347 | $ 320 | $ 155 | $ 131 |
Loans: | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 16,580 | ||||
Total ending loans balance | $ 13,390 | $ 16,580 |
Loans - Summary of loans by pas
Loans - Summary of loans by past due status (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual Loans | $ 4 | |
Total Past Due & Nonaccrual Loans | $ 126 | 48 |
Loans Not Past Due | 1,114,215 | 948,505 |
Total loans held for investment | 1,114,341 | 948,553 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 15 | 36 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 13 | 8 |
Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 98 | 0 |
Real Estate Loans Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans held for investment | 438,679 | 379,891 |
Real Estate Loans Segment | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Loans Not Past Due | 327,653 | 262,489 |
Total loans held for investment | 327,653 | 262,489 |
Real Estate Loans Segment | Multifamily | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | Multifamily | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | Multifamily | Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Loans Not Past Due | 90,052 | 91,837 |
Total loans held for investment | 90,052 | 91,837 |
Real Estate Loans Segment | 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 Loans Segment | 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 Loans Segment | 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 Loans Segment | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Loans Not Past Due | 20,974 | 25,565 |
Total loans held for investment | 20,974 | 25,565 |
Real Estate Loans Segment | 1-4 family | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | 1-4 family | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | 1-4 family | Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | Construction | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | Construction | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Real Estate Loans Segment | Construction | Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Commercial Loans Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Loans Not Past Due | 662,272 | 552,082 |
Total loans held for investment | 662,272 | 552,082 |
Commercial Loans Segment | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Commercial Loans Segment | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Commercial Loans Segment | Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 0 | 0 |
Consumer Loans Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual Loans | 4 | |
Total Past Due & Nonaccrual Loans | 126 | 48 |
Loans Not Past Due | 13,264 | 16,532 |
Total loans held for investment | 13,390 | 16,580 |
Consumer Loans Segment | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 15 | 36 |
Consumer Loans Segment | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | 13 | 8 |
Consumer Loans Segment | Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due & Nonaccrual Loans | $ 98 | $ 0 |
Loans - Summary of loans by cre
Loans - Summary of loans by credit quality indicator based on internally assigned credit grade (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 1,114,341 | $ 948,553 |
Non-revolving loans internally assigned grade | 1,113,438 | |
Current period gross charge-offs | 231 | |
Federal Reserve Bank Advances | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Pledged to FHLB | 225,800 | 20,600 |
Federal Reserve Bank of New York (FRB) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Maximum borrowing capacity | 167,100 | 14,200 |
2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 134,254 | |
2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 174,137 | |
Current period gross charge-offs | 204 | |
2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 132,196 | |
Current period gross charge-offs | 22 | |
2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 37,408 | |
2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 33,432 | |
2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 74,748 | |
Current period gross charge-offs | 5 | |
Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 526,238 | |
Revolving-Term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,025 | |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 934,101 | |
Non-revolving loans internally assigned grade | 1,096,213 | |
Pass | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 130,684 | |
Pass | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 174,137 | |
Pass | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 132,196 | |
Pass | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 26,417 | |
Pass | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 33,432 | |
Pass | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 74,748 | |
Pass | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 523,574 | |
Pass | Revolving-Term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,025 | |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 13,731 | |
Non-revolving loans internally assigned grade | 16,936 | |
Special Mention | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 3,570 | |
Special Mention | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 10,991 | |
Special Mention | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 2,375 | |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 721 | |
Non-revolving loans internally assigned grade | 289 | |
Substandard | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 289 | |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 438,679 | 379,891 |
Real Estate Loans Segment | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 327,653 | 262,489 |
Non-revolving loans internally assigned grade | 327,796 | |
Real Estate Loans Segment | Multifamily | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 81,401 | |
Real Estate Loans Segment | Multifamily | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 29,216 | |
Real Estate Loans Segment | Multifamily | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 110,458 | |
Real Estate Loans Segment | Multifamily | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 34,630 | |
Real Estate Loans Segment | Multifamily | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 22,272 | |
Real Estate Loans Segment | Multifamily | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 49,819 | |
Real Estate Loans Segment | Multifamily | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 258,413 | |
Non-revolving loans internally assigned grade | 316,805 | |
Real Estate Loans Segment | Multifamily | Pass | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 81,401 | |
Real Estate Loans Segment | Multifamily | Pass | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 29,216 | |
Real Estate Loans Segment | Multifamily | Pass | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 110,458 | |
Real Estate Loans Segment | Multifamily | Pass | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 23,639 | |
Real Estate Loans Segment | Multifamily | Pass | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 22,272 | |
Real Estate Loans Segment | Multifamily | Pass | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 49,819 | |
Real Estate Loans Segment | Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,355 | |
Non-revolving loans internally assigned grade | 10,991 | |
Real Estate Loans Segment | Multifamily | Special Mention | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 10,991 | |
Real Estate Loans Segment | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 721 | |
Real Estate Loans Segment | Multifamily | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 90,052 | 91,837 |
Non-revolving loans internally assigned grade | 89,993 | |
Real Estate Loans Segment | Commercial real estate | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 3,570 | |
Real Estate Loans Segment | Commercial real estate | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 58,741 | |
Real Estate Loans Segment | Commercial real estate | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 10,621 | |
Real Estate Loans Segment | Commercial real estate | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,768 | |
Real Estate Loans Segment | Commercial real estate | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 5,689 | |
Real Estate Loans Segment | Commercial real estate | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 9,604 | |
Real Estate Loans Segment | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 88,019 | |
Non-revolving loans internally assigned grade | 86,423 | |
Real Estate Loans Segment | Commercial real estate | Pass | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 58,741 | |
Real Estate Loans Segment | Commercial real estate | Pass | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 10,621 | |
Real Estate Loans Segment | Commercial real estate | Pass | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,768 | |
Real Estate Loans Segment | Commercial real estate | Pass | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 5,689 | |
Real Estate Loans Segment | Commercial real estate | Pass | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 9,604 | |
Real Estate Loans Segment | Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,818 | |
Non-revolving loans internally assigned grade | 3,570 | |
Real Estate Loans Segment | Commercial real estate | Special Mention | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 3,570 | |
Real Estate Loans Segment | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 20,974 | 25,565 |
Non-revolving loans internally assigned grade | 20,980 | |
Real Estate Loans Segment | 1-4 family | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,870 | |
Real Estate Loans Segment | 1-4 family | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 4,316 | |
Real Estate Loans Segment | 1-4 family | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 14,794 | |
Real Estate Loans Segment | 1-4 family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 25,565 | |
Non-revolving loans internally assigned grade | 20,980 | |
Real Estate Loans Segment | 1-4 family | Pass | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,870 | |
Real Estate Loans Segment | 1-4 family | Pass | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 4,316 | |
Real Estate Loans Segment | 1-4 family | Pass | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 14,794 | |
Real Estate Loans Segment | 1-4 family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | 1-4 family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | 1-4 family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Real Estate Loans Segment | Construction | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Commercial Loans Segment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 662,272 | 552,082 |
Non-revolving loans internally assigned grade | 661,135 | |
Current period gross charge-offs | 5 | |
Commercial Loans Segment | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 44,459 | |
Commercial Loans Segment | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 77,569 | |
Commercial Loans Segment | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 10,810 | |
Commercial Loans Segment | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 551 | |
Commercial Loans Segment | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 492 | |
Current period gross charge-offs | 5 | |
Commercial Loans Segment | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 526,229 | |
Commercial Loans Segment | Revolving-Term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,025 | |
Commercial Loans Segment | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 547,412 | |
Non-revolving loans internally assigned grade | 658,480 | |
Commercial Loans Segment | Pass | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 44,459 | |
Commercial Loans Segment | Pass | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 77,569 | |
Commercial Loans Segment | Pass | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 10,810 | |
Commercial Loans Segment | Pass | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 551 | |
Commercial Loans Segment | Pass | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 492 | |
Commercial Loans Segment | Pass | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 523,574 | |
Commercial Loans Segment | Pass | Revolving-Term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,025 | |
Commercial Loans Segment | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 4,670 | |
Non-revolving loans internally assigned grade | 2,375 | |
Commercial Loans Segment | Special Mention | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 2,375 | |
Commercial Loans Segment | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Non-revolving loans internally assigned grade | 280 | |
Commercial Loans Segment | Substandard | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 280 | |
Commercial Loans Segment | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Consumer Loans Segment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 13,390 | 16,580 |
Non-revolving loans internally assigned grade | 13,534 | |
Current period gross charge-offs | 226 | |
Consumer Loans Segment | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 4,824 | |
Consumer Loans Segment | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 6,741 | |
Current period gross charge-offs | 204 | |
Consumer Loans Segment | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 307 | |
Current period gross charge-offs | 22 | |
Consumer Loans Segment | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 459 | |
Consumer Loans Segment | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,155 | |
Consumer Loans Segment | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 39 | |
Consumer Loans Segment | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 9 | |
Consumer Loans Segment | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 14,692 | |
Non-revolving loans internally assigned grade | 13,525 | |
Consumer Loans Segment | Pass | 2023 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 4,824 | |
Consumer Loans Segment | Pass | 2022 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 6,741 | |
Consumer Loans Segment | Pass | 2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 307 | |
Consumer Loans Segment | Pass | 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 459 | |
Consumer Loans Segment | Pass | 2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 1,155 | |
Consumer Loans Segment | Pass | 2018 and Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | 39 | |
Consumer Loans Segment | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,888 | |
Consumer Loans Segment | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | |
Non-revolving loans internally assigned grade | 9 | |
Consumer Loans Segment | Substandard | Revolving | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Non-revolving loans internally assigned grade | $ 9 | |
Consumer Loans Segment | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 0 |
Noninterest Income (Details)
Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Noninterest income | |||||
Total non-interest income | $ 6,528 | $ 6,432 | $ 23,485 | $ 18,143 | |
Litify LLC | |||||
Noninterest income | |||||
Gain (loss) on equity investment | $ 4,000 | 4,000 | |||
Legacy NFL Portfolio | |||||
Noninterest income | |||||
Gain (loss) on equity investment | (1,300) | 14,000 | |||
Non-voting Interest in VIE | |||||
Noninterest income | |||||
Gain (loss) on equity investment | 1,300 | (1,300) | |||
Payment processing fees | |||||
Noninterest income | |||||
Total non-interest income | 5,621 | 5,458 | 16,898 | 16,287 | |
Payment processing income | |||||
Noninterest income | |||||
Total non-interest income | 5,400 | 5,250 | 16,250 | 15,651 | |
ACH income | |||||
Noninterest income | |||||
Total non-interest income | 221 | 208 | 648 | 636 | |
Client related fees, service charges and other | |||||
Noninterest income | |||||
Total non-interest income | 907 | 974 | 6,587 | 1,856 | |
Administrative service income | |||||
Noninterest income | |||||
Total non-interest income | 619 | 886 | 1,887 | 1,512 | |
Gain on equity investment (1) | |||||
Noninterest income | |||||
Total non-interest income | (14) | 4,013 | |||
Gain on loans held for sale (1) | |||||
Noninterest income | |||||
Total non-interest income | 88 | ||||
Other | |||||
Noninterest income | |||||
Total non-interest income | $ 302 | $ 88 | $ 687 | $ 256 |
Share-Based Payment Plans - (De
Share-Based Payment Plans - (Details) | 9 Months Ended |
Sep. 30, 2023 | |
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% |
Share-Based Payment Plans - Sum
Share-Based Payment Plans - Summary of options activity (Details) - Stock Options | 9 Months Ended | |
Sep. 30, 2023 $ / shares shares | Sep. 30, 2022 shares | |
Options | ||
Outstanding at beginning of year | shares | 633,984 | |
Granted | shares | 0 | 0 |
Exercised | shares | (26,778) | |
Forfeited | shares | (3,501) | |
Outstanding at period end | shares | 603,705 | |
Vested or expected to vest | shares | 603,705 | |
Exercisable at period end | shares | 497,261 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of year | $ / shares | $ 18.61 | |
Granted | $ / shares | 0 | |
Exercised | $ / shares | 15.98 | |
Forfeited | $ / shares | 36.50 | |
Outstanding at period end | $ / shares | 18.62 | |
Vested or expected to vest | $ / shares | 18.62 | |
Exercisable at period end | $ / shares | $ 15.16 | |
Weighted Average Remaining Contractual Life (Years), outstanding at period end | 4 years 2 months 26 days | |
Weighted Average Remaining Contractual Life (Years), vested or expected to vest | 4 years 2 months 26 days | |
Weighted Average Remaining Contractual Life (Years), exercisable at period end | 3 years 3 months 25 days |
Share-Based Payment Plans - S_2
Share-Based Payment Plans - Summary of restricted stock activity (Details) - Restricted stock | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Outstanding at beginning of year | shares | 503,225 |
Vested | shares | (20,500) |
Outstanding at period end | shares | 482,725 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of year | $ / shares | $ 27.92 |
Vested | $ / shares | 19.25 |
Outstanding at period end | $ / shares | $ 28.28 |
Share-Based Payment Plans - Add
Share-Based Payment Plans - Additional disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options expense | $ 2,379 | $ 1,827 | ||
Cash received from option exercises | $ 103 | $ 178 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options issued | 0 | 0 | ||
Stock options expense | $ 165 | $ 112 | $ 490 | $ 347 |
Unrecognized compensation cost related to non-vested options | 826,000 | $ 826,000 | ||
Recognition period of nonvested stock options | 1 year 9 months 10 days | |||
Intrinsic value of outstanding options | 16,300 | $ 16,300 | ||
Intrinsic value of exercisable options | 15,200 | 15,200 | ||
Intrinsic value of options exercised | 476 | 86 | 806 | 166 |
Cash received from option exercises | 50 | 7 | 103 | 178 |
Excess tax benefit from option exercises | 108 | 15 | 181 | 15 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options expense | 636 | $ 574 | 1,900 | $ 1,500 |
Unrecognized compensation cost related to non-vested options | $ 8,100 | $ 8,100 | ||
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic | ||||
Net income | $ 9,837 | $ 7,711 | $ 31,129 | $ 19,404 |
Weighted average shares outstanding for basic earnings per share | 7,717,971 | 7,637,407 | 7,711,722 | 7,628,903 |
Basic earnings per share (in dollars per share) | $ 1.27 | $ 1.01 | $ 4.04 | $ 2.54 |
Diluted | ||||
Net income | $ 9,837 | $ 7,711 | $ 31,129 | $ 19,404 |
Weighted average shares outstanding for basic earnings per share | 7,717,971 | 7,637,407 | 7,711,722 | 7,628,903 |
Add: Dilutive effects of share based awards | 661,141 | 588,807 | 618,387 | 557,194 |
Average shares and dilutive potential shares | 8,379,112 | 8,226,214 | 8,330,109 | 8,186,097 |
Diluted earnings per share (in dollars per share) | $ 1.17 | $ 0.94 | $ 3.74 | $ 2.37 |
Stock options and restricted shares not considered in computing diluted earnings per share because they were anti-dilutive | 50,500 | 61,900 | 50,500 | 65,367 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Leases | ||
ROU lease assets | $ 1.9 | $ 2.3 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating lease liability | $ 2.4 | $ 2.8 |
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) $ in Thousands | Sep. 30, 2023 USD ($) |
Maturities of operating lease liabilities | |
2023 | $ 169 |
2024 | 784 |
2025 | 803 |
2026 | 754 |
Total lease payments | 2,510 |
Less: interest | 152 |
Present value of operating lease liabilities | $ 2,358 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lease cost | ||||
Weighted-average remaining lease term | 3 years 2 months 1 day | 4 years 2 months 1 day | 3 years 2 months 1 day | 4 years 2 months 1 day |
Weighted-average discount rate | 3.30% | 3.08% | 3.30% | 3.08% |
Operating lease cost | $ 158 | $ 135 | $ 473 | $ 419 |
Short-term Lease, Cost | 55 | 176 | ||
Total lease cost | 213 | 135 | 649 | 419 |
Cash paid for operating lease liability | $ 237 | $ 162 | $ 673 | $ 490 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Litify LLC | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Notes receivable | $ 1.8 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of assets and liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale securities | ||
Securities available-for-sale, at fair value | $ 114,373 | $ 109,269 |
Held-to-Maturity Debt Securities | ||
Securities held to maturity, fair value | 67,754 | 69,346 |
Mortgage-backed securities - agency | ||
Available-for-sale securities | ||
Securities available-for-sale, at fair value | 83,155 | 92,945 |
CMO's - agency | ||
Available-for-sale securities | ||
Securities available-for-sale, at fair value | 31,218 | 16,324 |
Held-to-Maturity Debt Securities | ||
Securities held to maturity, fair value | 67,754 | 69,346 |
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 | 114,373 | 109,269 |
Recurring | (Level 2) | Mortgage-backed securities - agency | ||
Available-for-sale securities | ||
Securities available-for-sale, at fair value | 83,155 | 92,945 |
Recurring | (Level 2) | CMO's - agency | ||
Available-for-sale securities | ||
Securities available-for-sale, at fair value | 31,218 | 16,324 |
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 - Sum_2
Fair Value Measurements - Summary of estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Securities purchased under agreements to resell, at cost | $ 49,567 | |
Securities available for sale | $ 114,373 | 109,269 |
Securities, held to maturity | 78,779 | 78,377 |
Securities, restricted, at cost | 2,928 | 2,810 |
Loans held for investment, net | 1,098,110 | 935,072 |
Accrued interest receivable | 7,808 | 5,768 |
Financial Liabilities: | ||
Time deposits | 8,188 | 19,558 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 120,646 | 164,122 |
Securities purchased under agreements to resell, at cost | 49,567 | |
Securities, held to maturity | 78,779 | 78,377 |
Securities, restricted, at cost | 2,928 | 2,810 |
Loans held for investment, net | 1,098,110 | 935,072 |
Accrued interest receivable | 7,808 | 5,768 |
Financial Liabilities: | ||
Time deposits | 8,188 | 19,558 |
Demand and other deposits | 1,274,405 | 1,208,678 |
Secured borrowings | 45 | 46 |
Accrued interest payable | 47 | 30 |
Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 120,646 | 164,122 |
Securities purchased under agreements to resell, at cost | 49,567 | |
Securities, held to maturity | 67,754 | 69,346 |
Loans held for investment, net | 1,084,675 | 927,481 |
Accrued interest receivable | 7,808 | 5,768 |
Financial Liabilities: | ||
Time deposits | 8,033 | 19,459 |
Demand and other deposits | 1,274,405 | 1,208,678 |
Secured borrowings | 45 | 46 |
Accrued interest payable | 47 | 30 |
Fair Value | (Level 1) | ||
Financial Assets: | ||
Cash and cash equivalents | 120,646 | 164,122 |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities: | ||
Time deposits | 0 | |
Demand and other deposits | 1,274,405 | 1,208,678 |
Secured borrowings | 0 | 0 |
Accrued interest payable | 0 | |
Fair Value | (Level 2) | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities, held to maturity | 67,754 | 69,346 |
Loans held for investment, net | 0 | 0 |
Accrued interest receivable | 636 | 449 |
Financial Liabilities: | ||
Time deposits | 8,033 | 19,459 |
Demand and other deposits | 0 | 0 |
Secured borrowings | 0 | 0 |
Accrued interest payable | 47 | 30 |
Fair Value | (Level 3) | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities purchased under agreements to resell, at cost | 49,567 | |
Loans held for investment, net | 1,084,675 | 927,481 |
Accrued interest receivable | 7,172 | 5,319 |
Financial Liabilities: | ||
Time deposits | 0 | |
Demand and other deposits | 0 | 0 |
Secured borrowings | 45 | $ 46 |
Accrued interest payable | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Unrealized (Losses) Gains on Available-for-Sale Securities | ||||
Beginning Balance, Unrealized (Losses) Gains on Securities Available-for-Sale | $ (15,117) | $ (850) | $ (14,442) | $ (11,277) |
Other comprehensive (loss) income before reclassifications, net of tax | (2,959) | (4,665) | (2,284) | (15,092) |
Net current period other comprehensive (loss) income | (2,959) | (4,665) | (2,284) | (15,092) |
Ending Balance, Unrealized (Losses) Gains on Securities Available-for-Sale | $ (17,401) | $ (15,942) | (17,401) | (15,942) |
Reclassifications | $ 0 | $ 0 |