Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55005 | |
Entity Registrant Name | Vecta Inc. | |
Entity Central Index Key | 0001571398 | |
Entity Tax Identification Number | 46-3001280 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | One World Trade Center | |
Entity Address, Address Line Two | Suite 8500 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10007 | |
City Area Code | 212 | |
Local Phone Number | 280-1000 | |
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 | 17,906,285 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 9,636,346 | $ 13,286,059 |
Certificates of deposit | 250,000 | 250,000 |
Securities held to maturity, net | 412,267 | 415,605 |
Securities available for sale, at fair value | 28,932,645 | 33,735,037 |
Loans receivable, net | 32,008,045 | 28,562,632 |
Premises and equipment, net | 5,315,385 | 5,355,021 |
Federal Home Loan Bank of New York and other stock, at cost | 134,100 | 139,100 |
Accrued interest receivable | 421,884 | 398,389 |
Cash surrender value of life insurance | 2,621,186 | 2,571,968 |
Goodwill | 5,632,477 | 5,622,899 |
Core deposit intangible | 1,218,357 | 1,323,792 |
Other assets | 513,292 | 236,353 |
Total assets | 87,095,984 | 91,896,855 |
Liabilities: | ||
Deposits | 68,486,272 | 74,555,554 |
Advances from borrowers for taxes and insurance | 445,840 | 578,246 |
Other liabilities | 761,351 | 445,644 |
Total liabilities | 69,693,463 | 75,579,444 |
Commitments and contingencies | ||
Stockholder’s equity: | ||
Serial preferred stock; par value $.01, 2,000,000 shares authorized, no shares issued or outstanding | ||
Common stock; par value $.01, 100,000,000 shares authorized; 17,906,285 (September 30, 2023), 15,930,976 (December 31, 2022) shares issued and outstanding | 179,063 | 159,310 |
Additional paid-in capital | 21,045,910 | 18,565,663 |
Accumulated deficit | (802,702) | (202,722) |
Accumulated other comprehensive loss | (3,019,750) | (2,204,840) |
Total stockholder’s equity | 17,402,521 | 16,317,411 |
Total liabilities and stockholder’s equity | $ 87,095,984 | $ 91,896,855 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Serial preferred stock, par value | $ 0.01 | $ 0.01 |
Serial preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Serial preferred stock, shares issued | 0 | 0 |
Serial preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,906,285 | 15,930,976 |
Common stock, shares outstanding | 17,906,285 | 15,930,976 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | |
Interest and dividend income: | ||||
Loans | $ 602,619 | $ 369,489 | $ 473,212 | $ 1,476,976 |
Investment securities | 125,653 | 166,391 | 216,413 | 376,626 |
Mortgage-backed securities | 311,592 | 273,978 | 362,014 | 950,183 |
Federal funds sold and other earning assets | 111,108 | 48,914 | 52,716 | 297,184 |
Total interest and dividend income | 1,150,972 | 858,772 | 1,104,355 | 3,100,969 |
Interest expense: | ||||
Deposits | 178,866 | 49,945 | 66,594 | 422,886 |
Borrowings | 1,149 | |||
Total interest expense | 178,866 | 49,945 | 67,743 | 422,886 |
Net interest income | 972,106 | 808,827 | 1,036,612 | 2,678,083 |
Provision for credit losses | 25,768 | 7,136 | 9,538 | 38,668 |
Net interest income after provision for credit losses | 946,338 | 801,691 | 1,027,074 | 2,639,415 |
Non-interest income: | ||||
Fees and service charges | 25,308 | 22,218 | 28,204 | 61,890 |
Income on bank owned life insurance | 16,497 | 16,946 | 22,468 | 49,218 |
Total non-interest income | 41,805 | 39,164 | 50,672 | 111,108 |
Non-interest expense: | ||||
Compensation and benefits | 664,464 | 407,082 | 523,597 | 1,892,558 |
Occupancy and equipment, net | 105,980 | 80,067 | 103,605 | 293,927 |
Data processing service fees | 133,537 | 103,156 | 130,734 | 363,256 |
Merger related expenses | 538 | 19,702 | ||
Professional fees | 99,944 | 124,900 | 233,117 | 343,290 |
Federal deposit insurance premiums | 9,920 | 7,227 | 8,957 | 22,387 |
Amortization of core deposit intangible | 35,145 | 35,145 | 46,860 | 105,435 |
Advertising and promotion | 34,041 | 13,791 | 18,077 | 107,840 |
Other | 71,538 | 59,625 | 82,952 | 206,238 |
Total non-interest expense | 1,154,569 | 831,531 | 1,167,601 | 3,334,931 |
(Loss) income before income tax | (166,426) | 9,324 | (89,855) | (584,408) |
Income tax expense (benefit) | 7,953 | 1,072 | (14,227) | 15,572 |
Net (loss) income | $ (174,379) | $ 8,252 | $ (75,628) | $ (599,980) |
Basic net loss per share | $ (0.01) | $ (0.01) | $ (0.04) | |
Diluted net loss per share | $ (0.01) | $ (0.01) | $ (0.04) | |
Weighted average shares outstanding, basic | 17,906,285 | 15,930,976 | 15,114,948 | 16,603,883 |
Weighted average shares outstanding, diluted | 17,906,285 | 15,930,976 | 15,114,948 | 16,603,883 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | |
Income Statement [Abstract] | ||||
Net loss | $ (174,379) | $ 8,252 | $ (75,628) | $ (599,980) |
Defined benefit pension plan: | ||||
Amortization of loss | 18 | 52 | ||
Unrealized gains (losses) on securities available for sale: | ||||
Unrealized holding gains (losses) arising during the period | (945,225) | (1,671,308) | (2,053,507) | (814,962) |
Other comprehensive income (loss), before tax | (945,207) | (1,671,308) | (2,053,507) | (814,910) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (350,974) | (431,236) | ||
Other comprehensive income (loss), net of tax | (945,207) | (1,320,334) | (1,622,271) | (814,910) |
Comprehensive loss | $ (1,119,586) | $ (1,312,082) | $ (1,697,899) | $ (1,414,890) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholder's Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at May. 31, 2022 | |||||
Net income (loss) | (75,628) | (75,628) | |||
Net proceeds from the sale of common stock | 159,310 | 18,565,663 | 18,724,973 | ||
Other comprehensive income (loss), net of tax | (1,622,271) | (1,622,271) | |||
Balance at Sep. 30, 2022 | 159,310 | 18,565,663 | (75,628) | (1,622,271) | 17,027,074 |
Balance at Jun. 30, 2022 | 159,310 | 18,565,663 | (83,880) | (301,937) | 18,339,156 |
Net income (loss) | 8,252 | 8,252 | |||
Other comprehensive income (loss), net of tax | (1,320,334) | (1,320,334) | |||
Balance at Sep. 30, 2022 | 159,310 | 18,565,663 | (75,628) | (1,622,271) | 17,027,074 |
Balance at Dec. 31, 2022 | 159,310 | 18,565,663 | (202,722) | (2,204,840) | 16,317,411 |
Net income (loss) | (599,980) | (599,980) | |||
Net proceeds from the sale of common stock | 19,753 | 2,480,247 | 2,500,000 | ||
Other comprehensive income (loss), net of tax | (814,910) | (814,910) | |||
Balance at Sep. 30, 2023 | 179,063 | 21,045,910 | (802,702) | (3,019,750) | 17,402,521 |
Balance at Jun. 30, 2023 | 179,063 | 21,045,910 | (628,323) | (2,074,543) | 18,522,107 |
Net income (loss) | (174,379) | (174,379) | |||
Net proceeds from the sale of common stock | |||||
Other comprehensive income (loss), net of tax | (945,207) | (945,207) | |||
Balance at Sep. 30, 2023 | $ 179,063 | $ 21,045,910 | $ (802,702) | $ (3,019,750) | $ 17,402,521 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 4 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (75,628) | $ (599,980) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 48,180 | 125,608 |
Amortization of premiums and accretion of discounts, net | (225,332) | (469,026) |
Amortization of deferred loan fees and costs, net | (30,998) | 3,575 |
Amortization of core deposit intangible | 46,860 | 105,435 |
Provision for credit losses | 9,538 | 38,668 |
(Increase) decrease in accrued interest receivable | 4,684 | (23,495) |
Increase in cash surrender value of life insurance | (22,468) | (49,218) |
Increase in other assets | (138,972) | (286,517) |
Increase in other liabilities | 54,478 | 315,759 |
Net cash used in operating activities | (329,658) | (839,191) |
Cash flows from investing activities: | ||
Repayments and maturities of securities held to maturity | 1,459 | 3,162 |
Repayments and maturities of securities available for sale | 7,936,998 | 4,292,450 |
Loans purchased | (1,153,712) | |
Loan originations, net of principal repayments | 1,386,690 | (2,163,838) |
Purchase of premises and equipment | (6,980) | (85,972) |
Redemption of FHLB stock | 38,300 | 5,000 |
Cash paid for acquisition, net of cash acquired | (9,714,795) | |
Net cash provided by (used in) investing activities | (358,328) | 897,090 |
Cash flows from financing activities: | ||
Net decrease in deposits | (3,925,949) | (6,075,206) |
Net decrease in advances from borrowers for taxes and insurance | (137,965) | (132,406) |
Repayment of long-term borrowings | (849,027) | |
Proceeds from sale of stock | 18,724,973 | 2,500,000 |
Net cash (used in) provided by financing activities | 13,812,032 | (3,707,612) |
Net (decrease) increase in cash and cash equivalents | 13,124,046 | (3,649,713) |
Cash and cash equivalents at beginning of period | 13,286,059 | |
Cash and cash equivalents at end of period | 13,124,046 | 9,636,346 |
Cash paid for: | ||
Interest | 69,306 | 421,635 |
Income taxes | $ 52,408 | |
Non-cash assets acquired: | ||
Certificates of Deposit | 250,000 | |
Securities Held to Maturity | 418,301 | |
Securities Available for Sale | 48,838,559 | |
Loans receivable, net | 26,693,944 | |
Premises and equipment | 5,403,734 | |
Federal Home Loan Bank of New York and other stock, at cost | 177,400 | |
Accrued interest receivable | 386,128 | |
Cash surrender value of life insurance | 2,532,543 | |
Goodwill | 5,622,899 | |
Core deposit intangible | 1,405,797 | |
Other assets | 195,916 | |
Total non-cash assets acquired | 91,925,221 | |
Liabilities assumed: | ||
Deposits | 80,693,767 | |
Borrowings | 849,027 | |
Advances from borrowers for taxes and insurance | 406,459 | |
Other liabilities | 261,173 | |
Total liabilities assumed | 82,210,426 | |
Net non-cash assets acquired | 9,714,795 | |
Cash and cash equivalents acquired in acquisition, net | 4,510,178 | |
Cash paid for acquisition, net of transaction costs | $ 14,224,973 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | |
Pay vs Performance Disclosure [Table] | ||||
Net Income (Loss) Attributable to Parent | $ (174,379) | $ 8,252 | $ (75,628) | $ (599,980) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Corporate History, Nature of Business and Merger Acquisition Vecta Inc. (formerly known as Sunnyside Bancorp, Inc.) (“Vecta”, “Vecta Inc.” or the “Company”) was incorporated in the State of Maryland in March 2013 for the purpose of becoming the savings and loan holding company for Sunnyside Federal Savings and Loan Association of Irvington (“Sunnyside Federal” or the “Bank”), a federally-chartered savings and loan association founded in 1930, and the wholly-owned subsidiary of Vecta Inc. upon consummation of Sunnyside Federal’s mutual to stock conversion. The Bank conversion was consummated in July 2013, at which time Sunnyside Bancorp, Inc. became the registered savings and loan holding company of the Bank. Prior to the Closing Date (as referenced below) of the Merger (as referenced below), other than holding all of the issued and outstanding stock of Sunnyside Federal and making a loan to the Sunnyside Federal’s employee stock ownership plan, Vecta Inc. has not engaged in any material business. On June 1, 2022 (the “Closing Date”), Vecta Partners LLC (formerly known as Rhodium BA Holdings LLC), a Delaware limited liability company (“Vecta Partners”), completed its acquisition of Vecta Inc., pursuant to the Agreement and Plan of Merger, dated as of June 16, 2021, as amended on August 26, 2021 (the “Merger Agreement”), by and among Vecta Partners, Rhodium BA Merger Sub, Inc., a Maryland corporation (“Merger Sub”), Mark Silber, Vecta Inc. and Sunnyside Federal. Pursuant to the Merger Agreement and subject to the terms and conditions thereof, on the Closing Date, Merger Sub merged with and into Vecta Inc. (the “Merger”), with Vecta Inc. continuing as the surviving corporation and a wholly-owned subsidiary of Vecta Partners. The Merger was accounted for under the acquisition method of accounting and accordingly the results of Vecta Inc.’s operations were included in Vecta Inc.’s December 31, 2022 consolidated financial statements from the date of acquisition, or June 1, 2022. On June 1, 2022, the Board of Directors of Vecta Inc. authorized and approved a 15-for-1 stock dividend 15-for-1 stock dividend On June 29, 2022, Vecta Partners made an additional capital contribution of $ 4.5 222,222 On July 18, 2022, Vecta Inc. also increased its authorized shares of common stock to 100,000,000 0.01 2,000,000 0.01 17,906,285 no On July 18, 2022, Vecta Inc. also amended its Articles of Incorporation to change its name from “ Sunnyside Bancorp, On June 30, 2023, Vecta Partners made an additional capital contribution of $ 2.5 1,975,309 Sunnyside Federal is a community-oriented savings institution whose primary business is accepting deposits from customers within its market area (Westchester County, New York) and investing those funds in mortgage loans secured by one-to-four family residences, multi-family and commercial real estate properties. To a lesser extent, funds are invested in commercial loans, small business administration (“SBA”) loans, consumer loans and mortgage-backed securities and other securities. Customer deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (“FDIC”). As a federally-chartered savings association, Sunnyside Federal’s primary regulator is the Office of the Controller of the Currency (the “OCC”). 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Financial Statement Presentation The unaudited consolidated financial statements of Vecta Inc. are comprised of the accounts of Vecta Inc., a registered bank holding company under the Bank Holding Company Act of 1956, and its wholly owned subsidiary, Sunnyside Federal. The accounting and reporting policies of Vecta conform to accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included in the consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. Prior period amounts have been reclassified when necessary to conform to the current period’s presentation. Such reclassifications did not have an impact on the operating results or financial position of Vecta. The operating results and financial position of Vecta for the three and nine months ended September 30, 2023 may not be indicative of future results of operations and financial position that may be expected for the current year ending December 31, 2023. The financial data presented herein should be read in conjunction with the audited consolidated finanical statements and accompanying notes as of and for the period from June 1, 2022 through December 31, 2022 included in the Annual Report on Form 10-K for the period ended December 31, 2022 (“2022 Form 10-K”). Significant Estimates: In preparing the unaudited consolidated financial statements in conformity with GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change in the near term are the allowance for credit losses (“ACL”), securities’ valuation and evaluation for credit impairment, the evaluation of goodwill and other intangible assets for impairment and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Actual results may differ from those estimates. In making estimates, Vecta has evaluated events and transactions occurring subsequent to September 30, 2023, the balance sheet date, for items that could potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the issuance date of these consolidated financial statements. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ACL. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. The disclosures below update and supplement the accounting policies previously disclosed in Note 1, “Summary of Significant Accounting Policies” included the 2022 Form 10-K and reflect the adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments,” by Vecta on January 1, 2023. ASU 2016-13 is also commonly referred to as Accounting Standards Codification (“ASC”) 326 or Current Expected Credit Loss (“CECL”) model. ACL on Debt Securities: Upon adoption of ASU 2016-13, management no longer evaluates securities for other than temporary impairment, as ASC Subtopic 326-30, “Financial Instruments—Credit Losses—Available-for-Sale Debt Securities,” changes the accounting for recognizing impairment on available-for-sale debt securities. Each quarter management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party credit support, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow (“DCF”) method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance on available-for-sale debt securities 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 is recognized in other comprehensive (loss) income. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Vecta’s estimate of expected credit losses includes a measure of the expected risk of credit loss even if that risk is remote. However, Vecta does not measure expected credit losses on an investment security in which historical credit loss information adjusted for current conditions and reasonable and supportable forecast results is an expectation that nonpayment of the amortized cost basis is zero. Management does not expect nonpayment of the amortized cost basis to be zero solely on the basis of the current value of collateral securing the security but, instead, also considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral. Vecta performed an analysis that determined that the following securities have a zero expected credit loss: U.S. government agencies, mortgage-backed securities of U.S. government and government-sponsored agencies, as all of the U.S. government agencies and U.S. government agency backed securities have the full faith and credit backing of the United States Government or one of its agencies. The allowance on available-for-sale debt securities may be in full or a portion thereof, and is recorded as an expense (credit) within the provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale debt security is confirmed based on the above-described analysis. As of September 30, 2023, and January 1, 2023 (i.e. ASU 2016-13 adoption), there was no allowance established for Vecta’s available-for-sale debt securities. Loans: Vecta reports loans and leases held for sale in the portfolio at amortized cost. Amortized cost is the principal balance outstanding net of the unamortized balance of any deferred fees or costs and the unamortized balance of any premiums or discounts on loans purchased through third-party originators. Generally, for originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method over the estimated lives of the related loans. When a loan is paid off, the unamortized portion of deferred fees or costs are recognized in interest income. Interest income on originated loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For purchased loans, interest income is accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan that was recognized based on the acquisition date fair value. When a loan is paid off, the unamortized portion of any premiums or discounts on loans are recognized in interest income. ACL on Loans: An ACL is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the provision for loan losses considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. On January 1, 2023, the Company adopted Financial Accounting Standards Board (“FASB”) ASU 2016-13 Financial Instruments - Credit Losses (“Topic 326”), which replaced the incurred loss methodology for determining our allowance for credit losses and related provision for credit losses with an expected loss methodology that is referred to as the CECL model. CECL is a significant accounting estimate used in the preparation of the Company’s consolidated financial statements. Upon adoption of ASU 2016-13, the Company replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. CECL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis. Arriving at an appropriate level of credit losses involves a high degree of judgment. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Management has determined that peer loss experience provides the best basis for its assessment of expected credit losses to determine expected credit losses. The Company utilizes peer data to measure historical credit loss experience with similar risk characteristics within the segments over an economic cycle. Management also considers certain qualitative factors in its evaluation of expected credit losses including lending practices, ability and experience of the credit staff, the overall lending environment and external factors such as the regulatory environment and competition. Individually Evaluated Loans: Prior to the adoption of ASU 2016-13 on January 1, 2023, a loan was individually evaluated when the loan was considered impaired. A loan was considered to be impaired when based on current information and events, it was probable that the Company would not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. With the adoption of ASU 2016-13, loans that do not share risk characteristics with existing pools are evaluated on an individual basis. The Company considers a loan to be collateral dependent when management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the financial asset is expected to be provided substantially through the operation or sale of the collateral. When repayment is expected to be from the operation of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the net present value (“NPV”) from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Upon completion of the Merger on June 1, 2022, the Company recorded the fair value of loans which included the elimination of the allowance for loan losses and the establishment of a credit mark. For purposes of the credit mark, the loan portfolio was segregated into performing and non-performing loans. The credit component of total loans reflected an aggregate pre-tax discount of $ 895,330 600 The credit mark is reduced by charge-offs and amortization based on the proportionate reduction in the principal of the loans acquired. Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less to be cash equivalents. Investment and Mortgage-Backed Securities Securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Securities classified as available-for-sale securities are reported at fair value, with unrealized holding gains or losses reported in stockholder’s equity as accumulated other comprehensive income (loss). As of September 30, 2023, the Company had no securities classified as held for trading. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Premiums on securities are amortized to the earliest of call date or maturity and discounts on securities are amortized by use of the level-yield method, over the life of the individual securities. Gain or loss on sales of securities is based upon the specific identification method. Federal Home Loan Bank of New York Stock As a member of the Federal Home Loan Bank of New York (“FHLB”), the Company is required to acquire and hold shares of FHLB Class B stock. The holding requirement varies based on the Company’s outstanding borrowings with the FHLB and residential loan balances. The investment in FHLB stock is carried at cost. The Company conducts a periodic review and evaluation of its FHLB stock to determine if any impairment exists. Premises and Equipment Premises and equipment are comprised of land, building, and furniture, fixtures, and equipment, at cost, less accumulated depreciation. Depreciation charges are computed on the straight-line method over the following estimated useful lives: SCHEDULE OF PREMISES AND EQUIPMENT ESTIMATED USEFUL LIVES Building and improvements 5 40 Furniture, fixtures and equipment 2 10 Bank-Owned Life Insurance Bank-owned life insurance (“BOLI”) is accounted for in accordance with FASB ASC 325-30” Investments in Insurance Contracts”. The cash surrender value of BOLI is recorded on the statement of financial condition as an asset and the change in the cash surrender value is recorded as non-interest income. The amount by which any death benefits received exceeds a policy’s cash surrender value is recorded in non-interest income at the time of receipt. A liability is also recorded on the statement of financial condition for postretirement death benefits provided by the split-dollar endorsement policy. A corresponding expense is recorded in non-interest expense for the accrual of benefits over the period during which employees provide services to earn the benefits. Income Taxes Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax return differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing The Company accounts for uncertainty in income taxes recognized in the financial statements in accordance with accounting guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the Company’s evaluation, no significant income tax uncertainties have been identified. Therefore, the Company recognized no not 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Employee Benefits Defined Benefit Plans: The accounting guidance related to retirement benefits requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize, in comprehensive income, changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. The accounting guidance requires that plan assets and benefit obligations be measured as of the date of the employer’s fiscal year-end statement of financial condition. 401(k) Plan: The Company has a 401(k) plan covering substantially all employees. The Company matches 50 6 Equity Incentive Plan: The Company maintains an equity incentive plan (the “Stock Incentive Plan”). Stock options and restricted stock may be granted to directors, officers and other employees of the Company. The maximum number of shares which may be issued upon exercise of the options under the plan cannot exceed 1,190,250 357,075 The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024. Under FASB ASC Topic 718, the Company will recognize compensation expense on its statement of operations over the requisite service period or performance period based on the grant date fair value of stock options and other equity-based compensation (such as restricted stock). Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, and the actuarial gains and losses of the pension plan, are reported as a separate component of the equity section of the statement of financial condition, such items, along with net income (loss), are components of comprehensive income (loss). Concentration of Credit Risk and Interest-Rate Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Investment securities include securities backed by the U.S. Government and other highly rated instruments. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the State of New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State. The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans secured by real estate in the State of New York. The potential for interest-rate risk exists as a result of the shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Advertising Costs It is the Company’s policy to expense advertising costs in the period in which they are incurred. For the three and nine month periods ended September 30, 2023, the Company expensed advertising cost totaling $ 34,041 107,840 13,791 18,077 Goodwill Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and other intangible assets (see the section titled “Core Deposit Intangible” below). Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired and is not amortized. The initial recording of goodwill and other intangible assets requires subjective judgments concerning estimates of the fair value of the acquired assets and assumed liabilities. During the second quarter of 2023,Vecta performed the annual goodwill impairment test at its annual measurement date of May 31. The results of the 2023 annual impairment test under a qualitative analysis resulted in no triggering events that would more likely than not reduce the fair value Vecta’s only reporting unit, Sunnyside Federal and require a formal quantitative impairment analysis. Core Deposit Intangible The core deposit intangible is the portion of an acquisition purchase price which represents value assigned to the existing deposit base and is amortized on a straight line basis over a ten year Leases The Company leases an office facility that is not significant. For operating leases other than those considered to be short-term, defined as leases of 12 months or less, the Company recognizes operating lease right-of-use (“ROU”) assets and related lease liabilities at the time of lease commencement. ROU assets represent the Company’s right to use the underlying asset for the lease term and the lease liabilities represent the Company’s obligation to make lease payments under the leases. ROU assets and operating lease liabilities are reported as components of other assets and other liabilities, respectively, on our accompanying consolidated balance sheets. Leases with terms of 12 months or less are recognized in the income statement over the lease term. In recognizing ROU assets and related lease liabilities, the Company accounts for lease and non-lease components (such as taxes, insurance, and common area maintenance costs) separately as such amounts are generally readily determinable under our lease contracts. To estimate the present value of lease payments over the expected lease term, the Company uses interest rates on advances from the FHLB at the time of commencement. The Company’s lease term may include options to extend or terminate the leases when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term and is included in net occupancy expense in the consolidated statements of operations. Durning the quarter ended March 31, 2023, the Company entered into one three year operating lease 173,000 144,000 $ 15,000 and $ 35,000 Business Combinations Business combinations are accounted for under the acquisition method of accounting. Acquired assets, including separately identifiable intangible assets, and assumed liabilities are recorded at their acquisition-date estimated fair values. The excess of the cost of acquisition over these fair values is recognized as goodwill. During the measurement period, which cannot exceed one year from the acquisition date, changes to estimated fair values are recognized as an adjustment to goodwill. Certain transaction costs are expensed as incurred. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock. Diluted earnings (loss) per share is computed by adjusting the weighted average number of shares of common stock outstanding to include the effect of outstanding stock options and compensation grants, if dilutive, using the treasury stock method. Recent Accounting Pronouncements In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02 ” ” The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, for public business entities, ASU 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments Credit Losses-Measured at Amortized Cost in the vintage disclosures required by paragraph 326-20-50-6. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company may elect to apply the updated guidance on TDR recognition and measurement by using a modified retrospective transition method, which would result in a cumulative-effect adjustment to retained earnings, or to adopt the amendments prospectively. The Company intends to elect to adopt the updated guidance on TDR recognition and measurement prospectively; therefore, the guidance will be applied to modifications occurring after the date of adoption. The amendments on TDR disclosures and vintage disclosures must be adopted prospectively. The adoption of this guidance on January 1, 2023 did not have a material impact on the Company’s consolidated financial statements. In June, 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” (Topic 326), which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. In April, 2019, FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses”. ASU 2019-04 made amendments to the following categories in ASU 2016-13 which include Accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projections of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures and extension and renewal options. In May, 2019, FASB issued ASU 2019-05, “Financial Instruments –Credit Losses (Topic 326); Targeted Transition Relief”, ASU 2019-05 allows the Company to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of Topic 326 if the instruments are eligible for the fair value option under authoritative guidance for fair value. The fair value option election does not apply to held-to-maturity debt securities. We are required to make this election on an instrument-by-instrument basis. This ASU was effective for public business entities that are a smaller reporting company in fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2023 did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in ASC 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | 2. BUSINESS COMBINATION On June 1, 2022, Vecta Partners completed its acquisition of Vecta Inc. pursuant to the Merger Agreement, by and among Vecta Partners, Merger Sub, Mark Silber, Vecta Inc. and Sunnyside Federal. Pursuant to the Merger Agreement and subject to the terms and conditions thereof, on the Closing Date, Merger Sub merged with and into Vecta Inc., with Vecta Inc continuing as the surviving corporation and a wholly-owned subsidiary of Vecta Partners. Under the terms of the Merger Agreement, as of the Closing Date and as a result of the Merger, Vecta Partners acquired all of the outstanding common stock of Vecta Inc. at a price of $ 20.25 15.3 The Merger was accounted for under the acquisition method of accounting and accordingly the results of the Company’s consolidated operations have been included in the Company’s December 31, 2022 consolidated financial statements from the Closing Date of the Merger, or June 1, 2022. The following table sets forth assets acquired, and liabilities assumed in connection with the Merger, at their estimated fair values as of the Closing Date of the Merger: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ( In thousands) Assets acquired: Cash and cash equivalents $ 4,510 Certificates of deposit 250 Securities held to maturity 418 Securities available for sale 48,839 Loans receivable, net 26,694 Premises and equipment 5,404 Federal Home Loan Bank of New York and other stock, at cost 177 Accrued interest receivable 386 Cash surrender value of life insurance 2,533 Goodwill 5,623 Core deposit intangible 1,406 Other assets 195 Total assets Acquired 96,435 Liabilities assumed: Deposits: Non-interest bearing 7,795 Savings, NOW and money market 47,863 Time deposits 25,036 Total deposits 80,694 Borrowings 849 Advances from borrowers for taxes and insurance 406 Other liabilities 262 Total liabilities assumed 82,211 Net assets acquired 14,224 Transaction cost, net 1,042 Price paid $ 15,266 2. Business combination The determination of the fair value of the assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. The fair value estimates are subject to change for up to one year after the closing date of the transaction if additional information (existing at the date of closing) relative to closing date fair values becomes available. Fair Value Measurement of Assets Acquired and Liabilities Assumed: Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in this acquisition. Cash and cash equivalents - Investment securities - Loans - The fair value of the performing loan portfolio includes both a yield component and a credit component. The yield component utilizes a discounted cash flow analysis, including prepayment speed assumptions, to compare the difference between the present values of projected cash flows of the loan portfolio at portfolio rates versus cash flows at current market rates. The yield component reflected a pre-tax discount of $ 405,796 895,330 600 Core Deposit Intangible - Core deposit intangibles (CDI) are measures of the value of non-maturity checking, savings, NOW and money market customer deposits that are acquired in a business combination. The fair value for CDI was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative costs of funds, and the interest costs associated with the customer deposits. The CDI is amortized over an estimated useful life of 10 Premises and equipment- The fair value of the office building and land was based on an appraisal using the income approach. Deposits - The fair values of deposit liabilities with no stated maturity (i.e., non-interest bearing accounts and savings, NOW and money market accounts) are equal to the carrying amounts payable on demand. The fair values of certificates of deposit represent contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities |
LIQUIDATION ACCOUNT
LIQUIDATION ACCOUNT | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDATION ACCOUNT | 3. LIQUIDATION ACCOUNT On July 15, 2013, the Bank completed a mutual-to-stock conversion and in accordance with applicable federal conversion regulations, at the time of the completion of the mutual-to-stock conversion, the holding company, Sunnyside Bancorp Inc., now Vecta Inc. established a liquidation account in the Bank in an amount equal to the Bank’s total retained earnings as of the latest balance sheet date in the final prospectus used in the Conversion. Each eligible account holder or supplemental account holder is entitled to a proportionate share of this liquidation account in the event of a complete liquidation of the Bank, and only in such event. This share is reduced if the eligible account holder’s or supplemental account holder’s deposit balance falls below the amounts on the date of record as of any December 31 and will cease to exist if the account is closed. The liquidation account will never be increased despite any increase after conversion in the related deposit balance. The Company may not declare, pay a dividend on, or repurchase any of its capital stock, if the effect thereof would cause its capital to be reduced below the liquidation account amount or regulatory capital requirements. |
CERTIFICATES OF DEPOSIT
CERTIFICATES OF DEPOSIT | 9 Months Ended |
Sep. 30, 2023 | |
Certificates Of Deposit | |
CERTIFICATES OF DEPOSIT | 4. CERTIFICATES OF DEPOSIT SCHEDULE OF FAIR VALUE OF CERTIFICATES BY REMAINING PERIOD TO CONTRACTUAL MATURITY September 30, December 31, 2023 2022 Maturing in: After one to five years $ 250,000 $ 250,000 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | 5. SECURITIES SCHEDULE OF HELD TO MATURITY AND AVAILABLE FOR SALE SECURITIES September 30, 2023 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 350,023 $ - $ 29,967 $ 320,056 Mortgage-backed securities 62,244 - 2,458 59,786 $ 412,267 $ - $ 32,425 $ 379,842 Securities available for sale: U.S. government and agency obligations $ 13,052,196 $ - $ 1,599,195 $ 11,453,001 Mortgage-backed securities 18,689,575 - 1,209,931 17,479,644 $ 31,741,771 $ - $ 2,809,126 $ 28,932,645 December 31, 2022 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 350,226 $ - $ 6,720 $ 343,506 Mortgage-backed securities 65,379 - 2,320 63,059 $ 415,605 $ - $ 9,040 $ 406,565 Securities available for sale: U.S. government and agency obligations $ 12,862,316 $ - $ 1,193,169 $ 11,669,147 Mortgage-backed securities 22,866,886 239 801,235 22,065,890 $ 35,729,202 $ 239 $ 1,994,404 $ 33,735,037 Mortgage-backed securities consist of securities guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac with amortized costs of $ 224,000 4.6 7.3 256,000 5.2 8.0 6.5 9.5 There were no 5. SECURITIES The following is a summary of the amortized cost and fair value of securities at September 30, 2023 and December 31, 2022 by remaining period to contractual maturity. Actual maturities may differ from these amounts because certain debt security issuers have the right to call or redeem their obligations prior to contractual maturity. In addition, mortgage backed securities that amortize monthly are listed in the period the security is legally set to pay off in full. SUMMARY OF AMORTIZED COST AND FAIR VALUE OF SECURITIES BY REMAINING PERIOD TO CONTRACTUAL MATURITY September 30, 2023 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,599,993 $ 2,592,170 After one to five years - - 5,990,921 5,897,072 After five to ten years - - 6,685,387 5,941,034 After ten years 412,267 379,842 16,465,470 14,502,369 $ 412,267 $ 379,842 $ 31,741,771 $ 28,932,645 December 31, 2022 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,598,318 $ 2,589,582 After one to five years - - 8,953,594 8,820,721 After five to ten years - - 6,861,502 6,303,252 After ten years 415,605 406,565 17,315,788 16,021,482 $ 415,605 $ 406,565 $ 35,729,202 $ 33,735,037 The following tables summarize the fair values and unrealized losses of securities with an unrealized loss at September 30, 2023 and December 31, 2022, segregated between securities that have been in an unrealized loss position for less than one year, or one year or longer, at the respective dates. SCHEDULE OF FAIR VALUES AND UNREALIZED LOSS September 30, 2023 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ 320,056 $ 29,967 $ - $ - Mortgage-backed securities - - 59,786 2,458 320,056 29,967 59,786 2,458 Securities available for sale: U.S. government and agency obligations - - 11,453,001 1,599,195 Mortgage-backed securities 131,547 1,454 17,348,096 1,208,477 131,547 1,454 28,801,097 2,807,672 $ 451,603 $ 31,421 $ 28,860,883 $ 2,810,130 5. SECURITIES December 31, 2022 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ 343,506 $ 6,720 $ - $ - Mortgage-backed securities 63,059 2,320 - - 406,565 9,040 - - Securities available for sale: U.S. government and agency obligations 11,669,147 1,193,169 - - Mortgage-backed securities 21,946,311 801,235 - - 33,615,458 1,994,404 - - $ 34,022,023 $ 2,003,444 $ - $ - The unrealized losses are primarily due to changes in market interest rates subsequent to purchase. A total of 46 securities were in an unrealized loss position at September 30, 2023 (45 at December 31, 2022). The Company generally purchases securities issued by Government Sponsored Enterprises (“GSE”). Accordingly, it is expected that the GSE securities would not be settled at a price less than the Company’s amortized cost basis. The Company does not consider these investments to be other-than-temporarily impaired at September 30, 2023 and at December 31, 2022 since the decline in market value is attributable to changes in interest rates and not credit quality and the Company has the intent and ability to hold these investments until there is a full recovery of the unrealized loss, which may be at maturity. At September 30, 2023 and December 31, 2022, securities available for sale with a carrying value of approximately $ 3.3 3.6 |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 6. LOANS RECEIVABLE, NET SCHEDULE OF LOANS RECEIVABLES, NET September 30, December 31, 2023 2022 Mortgage loans: Residential 1-4 family $ 8,813,771 $ 9,676,089 Commercial and multi-family 19,799,081 16,438,436 Home equity lines of credit 25,471 170,468 Total Mortgage loans 28,638,323 26,284,993 Other loans: Passbook 1,791 5,789 Student 1,871,487 2,337,460 Commercial 2,557,700 1,164,210 Total 4,430,978 3,507,459 Total loans 33,069,301 29,792,452 Less: Purchase Accounting Credit Adjustment 554,089 774,063 Purchase Accounting Discount 330,566 373,626 Deferred loan fees (costs and premiums), net 24,135 2,841 Allowance for credit losses 152,466 79,290 Total loans after deduction of Deferred loan fees (costs and premiums), net and allowance for loan losses 1,061,256 1,229,820 Total loans, net $ 32,008,045 $ 28,562,632 In the ordinary course of business, the Company makes loans to its directors, executive officers, and their associates (related parties) on the same terms as those prevailing at the time of origination for comparable loans with other borrowers. The unpaid principal balances of related party loans were approximately $ 89,000 98,000 As a result of the acquisition of Sunnyside Federal, the loan portfolio was segregated into performing and non-performing loans to determine the credit adjustment. The credit component of total loans reflected an aggregate original pre-tax discount of $ 895,330 600 Activity in this credit adjustment is summarized as follows: SUMMARY OF ACTIVITY IN CREDIT ADJUSTMENT Three months ended September 30, 2023 Balance at beginning of period $ 647,727 Amortization (60,387 ) Charge -offs (33,251 ) Balance at end of period $ 554,089 Nine months ended September 30, 2023 Balance at beginning of period $ 774,063 Amortization (127,046 ) Charge -offs (92,928 ) Balance at end of period $ 554,089 In addition to the above credit adjustment, the Company maintains an ACL for new loans originated subsequent to the Merger and for qualitative changes in the existing loan portfolio. 6. LOANS RECEIVABLE, NET Activity in the ACL is summarized as follows: SUMMARY OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES Three months ended September 30, 2023 Balance at beginning of period $ 120,468 Provision for credit losses 25,768 Recoveries 6,230 Balance at end of period $ 152,466 Nine months ended September 30, 2023 Balance at beginning of period $ 79,290 Provision for credit losses 38,668 Recoveries 34,508 Balance at end of period $ 152,466 An ACL is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the ACL considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. On January 1, 2023, the Company adopted FASB ASU 2016-13 Financial Instruments - Credit Losses (“Topic 326”), which replaced the incurred loss methodology for determining our allowance for credit losses and related provision for credit losses with an expected loss methodology that is referred to as the CECL model. CECL is a significant accounting estimate used in the preparation of the Company’s consolidated financial statements. Upon adoption of ASU 2016 13, not Management has determined that peer loss experience provides the best basis for its assessment of expected credit losses to determine expected credit losses. The Company utilizes peer data to measure historical credit loss experience with similar risk characteristics within the segments over an economic cycle. 6. LOANS RECEIVABLE, NET Management also considers certain qualitative factors in its evaluation of expected credit losses including: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions including the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Experience, ability, and depth of lending management and staff and the quality of the Company’s loan review system. 5. Volume and severity of past due, classified and nonaccrual loans. 6. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 7. Effect of external factors, such as competition and legal and regulatory requirements. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for credit loss calculation. Individually Evaluated Loans: Prior to the adoption of ASU 2016 13 , not With the adoption of ASU 2016 13, Upon completion of the merger on June 1, 2022, the Company recorded the fair value of loans which included the elimination of the Allowance for Loan Losses and the establishment of a credit mark. For purposes of the credit mark, the loan portfolio was segregated into performing and non-performing loans. The credit component of total loans reflected an aggregate pre-tax discount of $ 895,330 600 The credit mark is reduced by charge-offs and amortization based on the proportionate reduction in the principal of the loans acquired. 6. LOANS RECEIVABLE, NET The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are Loan classifications are defined as follows: ● Pass — These loans are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. ● Special Mention — These loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects. ● Substandard — These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. ● Doubtful — These loans have all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make the full recovery of our principal balance highly questionable and improbable on the basis of currently known facts, conditions, and values. The likelihood of a loss on an asset or portion of an asset classified as doubtful is high. Its classification as Loss is not appropriate, however, because pending events are expected to materially affect the amount of loss. ● Loss — These loans are considered uncollectible and of such little value that a charge-off is warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur. One of the primary methods the Company uses as an indicator of the credit quality of its portfolio is the regulatory classification system. The following table reflects the credit quality indicators by portfolio segment and class, at the dates indicated: SCHEDULE OF CREDIT QUALITY INDICATORS BY PORTFOLIO SEGMENT September 30, 2023 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 8,814 $ 19,799 $ 25 $ 1,810 $ 2,560 $ 33,008 Special Mention - - - - - - Substandard - - - 61 - 61 Total $ 8,814 $ 19,799 $ 25 $ 1,871 $ 2,560 $ 33,069 6. LOANS RECEIVABLE, NET December 31, 2022 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 9,676 $ 14,497 $ 170 $ 2,132 $ 1,170 $ 27,645 Special Mention - 767 - 137 - 904 Substandard - 1,174 - 69 - 1,243 Total $ 9,676 $ 16,438 $ 170 $ 2,338 $ 1,170 $ 29,792 The following table provides information about loan delinquencies at the dates indicated: SCHEDULE OF INFORMATION ABOUT LOAN DELINQUENCIES September 30, 2023 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ - $ - $ - $ 8,814 $ 8,814 $ - Commercial real estate and multi-family - - - - 19,799 19,799 - Home equity lines of credit - - - - 25 25 - Student 43 - - 43 1,828 1,871 - Commercial and other - - - - 2,560 2,560 - $ 43 $ - $ - $ 43 $ 33,026 $ 33,069 $ - December 31, 2022 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ - $ - $ - $ 9,676 $ 9,676 $ - Commercial real estate and multi-family - - 234 234 16,204 16,438 - Home equity lines of credit - - - - 170 170 - Student 134 38 - 172 2,166 2,338 - Commercial and other - - - - 1,170 1,170 - $ 134 $ 38 $ 234 $ 406 $ 29,386 $ 29,792 $ - 6. LOANS RECEIVABLE, NET The following is a summary of loans, by loan type, on which the accrual of income has been discontinued and loans that are contractually past due 90 days or more but have not been classified as non-accrual at the dates indicated: SUMMARY OF LOANS BY LOAN TYPE September 30, December 31, 2023 2022 (In thousands) Non-accrual loans: Residential 1-4 family $ - $ - Commercial real estate and multi-family - 234 Home equity lines of credit - - Student 61 69 Commercial and other - - Total non-accrual loans 61 303 Accruing loans delinquent 90 days or more - - Total non-performing loans $ 61 $ 303 The total amount of interest income on non-accrual loans that would have been recognized if interest on all such loans had been recorded based upon original contract terms amounted to approximately $ 3,300 15,400 6,900 9,500 no 30,400 ASU 2022 02 no 6. LOANS RECEIVABLE, NET The following table presents the activity in the ACL by loan type for the period indicated: SCHEDULE OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES BY LOAN TYPE 1-4 Family Multi-Family Equity Student Other Unallocated Total Three months ended September 30, 2023 Mortgage Loans Commercial Residential and Home 1-4 Family Multi-Family Equity Student Other Unallocated Total (In thousands) Beginning balance $ 6 $ 78 $ - $ 33 $ 3 $ - $ 120 Provision for credit losses (2 ) - - (2 ) 30 26 Recoveries - - - 5 1 - 6 Ending Balance $ 4 $ 78 $ - $ 36 $ 34 $ - $ 152 Nine months ended September 30, 2023 Mortgage Loans Commercial Residential and Home 1-4 Family Multi-Family Equity Student Other Unallocated Total (In thousands) Beginning balance $ - $ 56 $ - $ 23 $ - $ - $ 79 Provision for credit losses 4 22 - (21 ) 34 39 Recoveries - - - 34 - - 34 Ending Balance $ 4 $ 78 $ - $ 36 $ 34 $ - $ 152 |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLE | 7. GOODWILL AND CORE DEPOSIT INTANGIBLE As a result of the Merger pursuant to which Vecta Partners LLC acquired all of the outstanding shares of Vecta Inc., goodwill of $ 5.6 In addition to goodwill, a core deposit intangible of $ 1.4 140,580 1.2 |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 8. BORROWINGS At September 30, 2023, the Company had a borrowing capacity at the FHLB of $ 26.3 2.0 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss included in equity are as follows: SCHEDULE OF COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS September 30, December 31, 2023 2022 Unrealized net loss on pension plan (210,623 ) (210,675 ) Unrealized loss on securities available for sale (2,809,127 ) (1,994,165 ) Accumulated other comprehensive loss before taxes (3,019,750 ) (2,204,840 ) Tax effect - - Accumulated other comprehensive loss $ (3,019,750 ) $ (2,204,840 ) |
REGULATORY CAPITAL
REGULATORY CAPITAL | 9 Months Ended |
Sep. 30, 2023 | |
REGULATORY CAPITAL | 10. REGULATORY CAPITAL The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary, actions by regulators, that if undertaken could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations. As of September 30, 2023, and December 31, 2022, the Bank exceeded all capital adequacy requirements to which it was subject (see tables below). There were no conditions or events since September 30, 2023 that management believes have changed the Bank’s capital ratings. The following table presents the Bank’s actual capital positions and ratios at the dates indicated: SCHEDULE OF ACTUAL CAPITAL POSITIONS AND RATIOS Actual Minimum Capital Requirements To be Well Capitalized Under Prompt Corrective Action Provisions To be Well Capitalized With Capital Conservation Buffer Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2023 Tangible Capital $ 13,276 16.02 % $ 1,243 1.50 % N/A N/A N/A N/A Total Risked-based Capital 13,428 28.82 % 4,892 10.50 % $ 4,659 10.00 % $ 4,892 10.50 % Common Equity Tier 1 Capital 13,276 28.49 % 3,261 7.00 % 3,028 6.50 % 3,261 7.00 % Tier 1 Risk-based Capital 13,276 28.49 % 3,960 8.50 % 3,727 8.00 % 3,960 8.50 % Tier 1 Leverage Capital 13,276 16.02 % 531 4.00 % 4,143 5.00 % N/A N/A December 31, 2022 Tangible Capital $ 11,278 13.04 % $ 1,298 1.50 % N/A N/A N/A N/A Total Risked-based Capital 11,357 24.67 % 4,834 10.50 % $ 4,604 10.00 % $ 4,834 10.50 % Common Equity Tier 1 Capital 11,278 24.50 % 3,223 7.00 % 2,992 6.50 % 3,223 7.00 % Tier 1 Risk-based Capital 11,278 24.50 % 3,913 8.50 % 3,683 8.00 % 3,913 8.50 % Tier 1 Leverage Capital 11,278 13.04 % 3,460 4.00 % 4,325 5.00 % N/A N/A |
FAIR VALUE MEASUREMENTS AND DIS
FAIR VALUE MEASUREMENTS AND DISCLOSURES | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND DISCLOSURES | 11. FAIR VALUE MEASUREMENTS AND DISCLOSURES A. Fair Value Measurements ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 applies only to fair value measurements already required or permitted by other accounting standards and does not impose requirements for additional fair value measures. ASC Topic 820 was issued to increase consistency and comparability in reporting fair values. The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at September 30, 2023. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as foreclosed real estate owned and certain impaired loans. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses. In accordance with ASC Topic 820, the Company groups its assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: ● Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets. ● Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. ● Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. The Company bases its fair values on the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. ASC Topic 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets that are measured on a recurring basis are limited to the available-for-sale securities portfolio. The available-for-sale portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. Substantially all of the available-for-sale portfolio consists of investment securities issued by government-sponsored enterprises. The fair values for substantially all of these securities are obtained from an independent securities broker. Based on the nature of the securities, the securities broker provides the Company with prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the portfolio. The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022: SCHEDULE OF ASSETS MEASURED AT FAIR VALUE ON RECURRING BASIS Fair Value Measurements Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) September 30, 2023: Securities available for sale $ 28,932,645 $ - $ 28,932,645 $ - December 31, 2022: Securities available for sale $ 33,735,037 $ - $ 33,735,037 $ - There were no assets measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022. 11. FAIR VALUE MEASUREMENTS AND DISCLOSURES B. Fair Value Disclosures The following methods and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein. Cash and Cash Equivalents and Certificates of Deposit For cash and due from banks and federal funds sold, the carrying amount approximates the fair value (Level 1). Securities The fair value of securities is estimated based on bid quotations received from securities dealers, if available (Level 1). If a quoted market price was not available, fair value was estimated using quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued (Level 2). Loans Receivable Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential mortgage, commercial, and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories (Level 3). FHLB and Other Stock, at Cost The fair value for FHLB stock is its carrying value, since this is the amount for which it could be redeemed. There is no active market for this stock, and the Company is required to maintain a minimum balance based upon the unpaid principal of home mortgage loans (Level 2). Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand (Level 1). The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits with similar remaining maturities (Level 2). Off-Balance-Sheet Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the financial statements when they are funded. Their fair value would approximate fees currently charged to enter into similar agreements. 11. FAIR VALUE MEASUREMENTS AND DISCLOSURES B. Fair Value Disclosures (Cont’d) The carrying values and estimated fair values of financial instruments are as follows (in thousands): SCHEDULE OF ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENT Value Fair Value Value Fair Value September 30, December 31, 2023 2022 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Financial assets: Cash and cash equivalents $ 9,636 $ 9,636 $ 13,286 $ 13,286 Certificates of deposit 250 250 250 250 Securities held to maturity 412 380 416 407 Loans receivable 32,008 31,236 28,563 28,102 FHLB and other stock, at cost 134 134 139 139 Accrued interest receivable 422 422 398 398 Financial liabilities: Deposits 68,486 68,127 74,556 74,646 The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all of the financial instruments were offered for sale. In addition, the fair value estimates were based on existing on-and-off balance sheet financial instruments without attempting to value the anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment and advances from borrowers for taxes and insurance. In addition, the tax ramifications related to the realization of the unrealized gains and losses have a significant effect on fair value estimates and have not been considered in any of the estimates. Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. The lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The unaudited consolidated financial statements of Vecta Inc. are comprised of the accounts of Vecta Inc., a registered bank holding company under the Bank Holding Company Act of 1956, and its wholly owned subsidiary, Sunnyside Federal. The accounting and reporting policies of Vecta conform to accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included in the consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. Prior period amounts have been reclassified when necessary to conform to the current period’s presentation. Such reclassifications did not have an impact on the operating results or financial position of Vecta. The operating results and financial position of Vecta for the three and nine months ended September 30, 2023 may not be indicative of future results of operations and financial position that may be expected for the current year ending December 31, 2023. The financial data presented herein should be read in conjunction with the audited consolidated finanical statements and accompanying notes as of and for the period from June 1, 2022 through December 31, 2022 included in the Annual Report on Form 10-K for the period ended December 31, 2022 (“2022 Form 10-K”). Significant Estimates: In preparing the unaudited consolidated financial statements in conformity with GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change in the near term are the allowance for credit losses (“ACL”), securities’ valuation and evaluation for credit impairment, the evaluation of goodwill and other intangible assets for impairment and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Actual results may differ from those estimates. In making estimates, Vecta has evaluated events and transactions occurring subsequent to September 30, 2023, the balance sheet date, for items that could potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the issuance date of these consolidated financial statements. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ACL. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. The disclosures below update and supplement the accounting policies previously disclosed in Note 1, “Summary of Significant Accounting Policies” included the 2022 Form 10-K and reflect the adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments,” by Vecta on January 1, 2023. ASU 2016-13 is also commonly referred to as Accounting Standards Codification (“ASC”) 326 or Current Expected Credit Loss (“CECL”) model. ACL on Debt Securities: Upon adoption of ASU 2016-13, management no longer evaluates securities for other than temporary impairment, as ASC Subtopic 326-30, “Financial Instruments—Credit Losses—Available-for-Sale Debt Securities,” changes the accounting for recognizing impairment on available-for-sale debt securities. Each quarter management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party credit support, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow (“DCF”) method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance on available-for-sale debt securities 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 is recognized in other comprehensive (loss) income. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Vecta’s estimate of expected credit losses includes a measure of the expected risk of credit loss even if that risk is remote. However, Vecta does not measure expected credit losses on an investment security in which historical credit loss information adjusted for current conditions and reasonable and supportable forecast results is an expectation that nonpayment of the amortized cost basis is zero. Management does not expect nonpayment of the amortized cost basis to be zero solely on the basis of the current value of collateral securing the security but, instead, also considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral. Vecta performed an analysis that determined that the following securities have a zero expected credit loss: U.S. government agencies, mortgage-backed securities of U.S. government and government-sponsored agencies, as all of the U.S. government agencies and U.S. government agency backed securities have the full faith and credit backing of the United States Government or one of its agencies. The allowance on available-for-sale debt securities may be in full or a portion thereof, and is recorded as an expense (credit) within the provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale debt security is confirmed based on the above-described analysis. As of September 30, 2023, and January 1, 2023 (i.e. ASU 2016-13 adoption), there was no allowance established for Vecta’s available-for-sale debt securities. Loans: Vecta reports loans and leases held for sale in the portfolio at amortized cost. Amortized cost is the principal balance outstanding net of the unamortized balance of any deferred fees or costs and the unamortized balance of any premiums or discounts on loans purchased through third-party originators. Generally, for originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method over the estimated lives of the related loans. When a loan is paid off, the unamortized portion of deferred fees or costs are recognized in interest income. Interest income on originated loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For purchased loans, interest income is accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan that was recognized based on the acquisition date fair value. When a loan is paid off, the unamortized portion of any premiums or discounts on loans are recognized in interest income. ACL on Loans: An ACL is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the provision for loan losses considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. On January 1, 2023, the Company adopted Financial Accounting Standards Board (“FASB”) ASU 2016-13 Financial Instruments - Credit Losses (“Topic 326”), which replaced the incurred loss methodology for determining our allowance for credit losses and related provision for credit losses with an expected loss methodology that is referred to as the CECL model. CECL is a significant accounting estimate used in the preparation of the Company’s consolidated financial statements. Upon adoption of ASU 2016-13, the Company replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. CECL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis. Arriving at an appropriate level of credit losses involves a high degree of judgment. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Management has determined that peer loss experience provides the best basis for its assessment of expected credit losses to determine expected credit losses. The Company utilizes peer data to measure historical credit loss experience with similar risk characteristics within the segments over an economic cycle. Management also considers certain qualitative factors in its evaluation of expected credit losses including lending practices, ability and experience of the credit staff, the overall lending environment and external factors such as the regulatory environment and competition. Individually Evaluated Loans: Prior to the adoption of ASU 2016-13 on January 1, 2023, a loan was individually evaluated when the loan was considered impaired. A loan was considered to be impaired when based on current information and events, it was probable that the Company would not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. With the adoption of ASU 2016-13, loans that do not share risk characteristics with existing pools are evaluated on an individual basis. The Company considers a loan to be collateral dependent when management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the financial asset is expected to be provided substantially through the operation or sale of the collateral. When repayment is expected to be from the operation of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the net present value (“NPV”) from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Upon completion of the Merger on June 1, 2022, the Company recorded the fair value of loans which included the elimination of the allowance for loan losses and the establishment of a credit mark. For purposes of the credit mark, the loan portfolio was segregated into performing and non-performing loans. The credit component of total loans reflected an aggregate pre-tax discount of $ 895,330 600 The credit mark is reduced by charge-offs and amortization based on the proportionate reduction in the principal of the loans acquired. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less to be cash equivalents. |
Investment and Mortgage-Backed Securities | Investment and Mortgage-Backed Securities Securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Securities classified as available-for-sale securities are reported at fair value, with unrealized holding gains or losses reported in stockholder’s equity as accumulated other comprehensive income (loss). As of September 30, 2023, the Company had no securities classified as held for trading. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Premiums on securities are amortized to the earliest of call date or maturity and discounts on securities are amortized by use of the level-yield method, over the life of the individual securities. Gain or loss on sales of securities is based upon the specific identification method. |
Federal Home Loan Bank of New York Stock | Federal Home Loan Bank of New York Stock As a member of the Federal Home Loan Bank of New York (“FHLB”), the Company is required to acquire and hold shares of FHLB Class B stock. The holding requirement varies based on the Company’s outstanding borrowings with the FHLB and residential loan balances. The investment in FHLB stock is carried at cost. The Company conducts a periodic review and evaluation of its FHLB stock to determine if any impairment exists. |
Premises and Equipment | Premises and Equipment Premises and equipment are comprised of land, building, and furniture, fixtures, and equipment, at cost, less accumulated depreciation. Depreciation charges are computed on the straight-line method over the following estimated useful lives: SCHEDULE OF PREMISES AND EQUIPMENT ESTIMATED USEFUL LIVES Building and improvements 5 40 Furniture, fixtures and equipment 2 10 |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance (“BOLI”) is accounted for in accordance with FASB ASC 325-30” Investments in Insurance Contracts”. The cash surrender value of BOLI is recorded on the statement of financial condition as an asset and the change in the cash surrender value is recorded as non-interest income. The amount by which any death benefits received exceeds a policy’s cash surrender value is recorded in non-interest income at the time of receipt. A liability is also recorded on the statement of financial condition for postretirement death benefits provided by the split-dollar endorsement policy. A corresponding expense is recorded in non-interest expense for the accrual of benefits over the period during which employees provide services to earn the benefits. |
Income Taxes | Income Taxes Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax return differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing The Company accounts for uncertainty in income taxes recognized in the financial statements in accordance with accounting guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the Company’s evaluation, no significant income tax uncertainties have been identified. Therefore, the Company recognized no not 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Employee Benefits | Employee Benefits Defined Benefit Plans: The accounting guidance related to retirement benefits requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize, in comprehensive income, changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. The accounting guidance requires that plan assets and benefit obligations be measured as of the date of the employer’s fiscal year-end statement of financial condition. 401(k) Plan: The Company has a 401(k) plan covering substantially all employees. The Company matches 50 6 Equity Incentive Plan: The Company maintains an equity incentive plan (the “Stock Incentive Plan”). Stock options and restricted stock may be granted to directors, officers and other employees of the Company. The maximum number of shares which may be issued upon exercise of the options under the plan cannot exceed 1,190,250 357,075 The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024. Under FASB ASC Topic 718, the Company will recognize compensation expense on its statement of operations over the requisite service period or performance period based on the grant date fair value of stock options and other equity-based compensation (such as restricted stock). |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, and the actuarial gains and losses of the pension plan, are reported as a separate component of the equity section of the statement of financial condition, such items, along with net income (loss), are components of comprehensive income (loss). |
Concentration of Credit Risk and Interest-Rate Risk | Concentration of Credit Risk and Interest-Rate Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Investment securities include securities backed by the U.S. Government and other highly rated instruments. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the State of New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State. The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans secured by real estate in the State of New York. The potential for interest-rate risk exists as a result of the shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Advertising Costs | Advertising Costs It is the Company’s policy to expense advertising costs in the period in which they are incurred. For the three and nine month periods ended September 30, 2023, the Company expensed advertising cost totaling $ 34,041 107,840 13,791 18,077 |
Goodwill | Goodwill Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and other intangible assets (see the section titled “Core Deposit Intangible” below). Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired and is not amortized. The initial recording of goodwill and other intangible assets requires subjective judgments concerning estimates of the fair value of the acquired assets and assumed liabilities. During the second quarter of 2023,Vecta performed the annual goodwill impairment test at its annual measurement date of May 31. The results of the 2023 annual impairment test under a qualitative analysis resulted in no triggering events that would more likely than not reduce the fair value Vecta’s only reporting unit, Sunnyside Federal and require a formal quantitative impairment analysis. |
Core Deposit Intangible | Core Deposit Intangible The core deposit intangible is the portion of an acquisition purchase price which represents value assigned to the existing deposit base and is amortized on a straight line basis over a ten year |
Leases | Leases The Company leases an office facility that is not significant. For operating leases other than those considered to be short-term, defined as leases of 12 months or less, the Company recognizes operating lease right-of-use (“ROU”) assets and related lease liabilities at the time of lease commencement. ROU assets represent the Company’s right to use the underlying asset for the lease term and the lease liabilities represent the Company’s obligation to make lease payments under the leases. ROU assets and operating lease liabilities are reported as components of other assets and other liabilities, respectively, on our accompanying consolidated balance sheets. Leases with terms of 12 months or less are recognized in the income statement over the lease term. In recognizing ROU assets and related lease liabilities, the Company accounts for lease and non-lease components (such as taxes, insurance, and common area maintenance costs) separately as such amounts are generally readily determinable under our lease contracts. To estimate the present value of lease payments over the expected lease term, the Company uses interest rates on advances from the FHLB at the time of commencement. The Company’s lease term may include options to extend or terminate the leases when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term and is included in net occupancy expense in the consolidated statements of operations. Durning the quarter ended March 31, 2023, the Company entered into one three year operating lease 173,000 144,000 $ 15,000 and $ 35,000 |
Business Combinations | Business Combinations Business combinations are accounted for under the acquisition method of accounting. Acquired assets, including separately identifiable intangible assets, and assumed liabilities are recorded at their acquisition-date estimated fair values. The excess of the cost of acquisition over these fair values is recognized as goodwill. During the measurement period, which cannot exceed one year from the acquisition date, changes to estimated fair values are recognized as an adjustment to goodwill. Certain transaction costs are expensed as incurred. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock. Diluted earnings (loss) per share is computed by adjusting the weighted average number of shares of common stock outstanding to include the effect of outstanding stock options and compensation grants, if dilutive, using the treasury stock method. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02 ” ” The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, for public business entities, ASU 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments Credit Losses-Measured at Amortized Cost in the vintage disclosures required by paragraph 326-20-50-6. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company may elect to apply the updated guidance on TDR recognition and measurement by using a modified retrospective transition method, which would result in a cumulative-effect adjustment to retained earnings, or to adopt the amendments prospectively. The Company intends to elect to adopt the updated guidance on TDR recognition and measurement prospectively; therefore, the guidance will be applied to modifications occurring after the date of adoption. The amendments on TDR disclosures and vintage disclosures must be adopted prospectively. The adoption of this guidance on January 1, 2023 did not have a material impact on the Company’s consolidated financial statements. In June, 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” (Topic 326), which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. In April, 2019, FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses”. ASU 2019-04 made amendments to the following categories in ASU 2016-13 which include Accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projections of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures and extension and renewal options. In May, 2019, FASB issued ASU 2019-05, “Financial Instruments –Credit Losses (Topic 326); Targeted Transition Relief”, ASU 2019-05 allows the Company to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of Topic 326 if the instruments are eligible for the fair value option under authoritative guidance for fair value. The fair value option election does not apply to held-to-maturity debt securities. We are required to make this election on an instrument-by-instrument basis. This ASU was effective for public business entities that are a smaller reporting company in fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2023 did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in ASC 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04, as amended, was effective for annual reporting periods beginning after December 15, 2022. The adoption of this guidance on January 1, 2023 did not have a material impact on the Company’s consolidated financial statements. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Subsequent Events | Subsequent Events The Company evaluated its September 30, 2023 unaudited condensed consolidated financial statements for subsequent events through the date the unaudited condensed consolidated financial statements were issued and has determined that there are no subsequent events that require accounting or disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF PREMISES AND EQUIPMENT ESTIMATED USEFUL LIVES | SCHEDULE OF PREMISES AND EQUIPMENT ESTIMATED USEFUL LIVES Building and improvements 5 40 Furniture, fixtures and equipment 2 10 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED | The following table sets forth assets acquired, and liabilities assumed in connection with the Merger, at their estimated fair values as of the Closing Date of the Merger: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ( In thousands) Assets acquired: Cash and cash equivalents $ 4,510 Certificates of deposit 250 Securities held to maturity 418 Securities available for sale 48,839 Loans receivable, net 26,694 Premises and equipment 5,404 Federal Home Loan Bank of New York and other stock, at cost 177 Accrued interest receivable 386 Cash surrender value of life insurance 2,533 Goodwill 5,623 Core deposit intangible 1,406 Other assets 195 Total assets Acquired 96,435 Liabilities assumed: Deposits: Non-interest bearing 7,795 Savings, NOW and money market 47,863 Time deposits 25,036 Total deposits 80,694 Borrowings 849 Advances from borrowers for taxes and insurance 406 Other liabilities 262 Total liabilities assumed 82,211 Net assets acquired 14,224 Transaction cost, net 1,042 Price paid $ 15,266 |
CERTIFICATES OF DEPOSIT (Tables
CERTIFICATES OF DEPOSIT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Certificates Of Deposit | |
SCHEDULE OF FAIR VALUE OF CERTIFICATES BY REMAINING PERIOD TO CONTRACTUAL MATURITY | SCHEDULE OF FAIR VALUE OF CERTIFICATES BY REMAINING PERIOD TO CONTRACTUAL MATURITY September 30, December 31, 2023 2022 Maturing in: After one to five years $ 250,000 $ 250,000 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SCHEDULE OF HELD TO MATURITY AND AVAILABLE FOR SALE SECURITIES | SCHEDULE OF HELD TO MATURITY AND AVAILABLE FOR SALE SECURITIES September 30, 2023 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 350,023 $ - $ 29,967 $ 320,056 Mortgage-backed securities 62,244 - 2,458 59,786 $ 412,267 $ - $ 32,425 $ 379,842 Securities available for sale: U.S. government and agency obligations $ 13,052,196 $ - $ 1,599,195 $ 11,453,001 Mortgage-backed securities 18,689,575 - 1,209,931 17,479,644 $ 31,741,771 $ - $ 2,809,126 $ 28,932,645 December 31, 2022 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 350,226 $ - $ 6,720 $ 343,506 Mortgage-backed securities 65,379 - 2,320 63,059 $ 415,605 $ - $ 9,040 $ 406,565 Securities available for sale: U.S. government and agency obligations $ 12,862,316 $ - $ 1,193,169 $ 11,669,147 Mortgage-backed securities 22,866,886 239 801,235 22,065,890 $ 35,729,202 $ 239 $ 1,994,404 $ 33,735,037 |
SUMMARY OF AMORTIZED COST AND FAIR VALUE OF SECURITIES BY REMAINING PERIOD TO CONTRACTUAL MATURITY | SUMMARY OF AMORTIZED COST AND FAIR VALUE OF SECURITIES BY REMAINING PERIOD TO CONTRACTUAL MATURITY September 30, 2023 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,599,993 $ 2,592,170 After one to five years - - 5,990,921 5,897,072 After five to ten years - - 6,685,387 5,941,034 After ten years 412,267 379,842 16,465,470 14,502,369 $ 412,267 $ 379,842 $ 31,741,771 $ 28,932,645 December 31, 2022 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,598,318 $ 2,589,582 After one to five years - - 8,953,594 8,820,721 After five to ten years - - 6,861,502 6,303,252 After ten years 415,605 406,565 17,315,788 16,021,482 $ 415,605 $ 406,565 $ 35,729,202 $ 33,735,037 |
SCHEDULE OF FAIR VALUES AND UNREALIZED LOSS | SCHEDULE OF FAIR VALUES AND UNREALIZED LOSS September 30, 2023 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ 320,056 $ 29,967 $ - $ - Mortgage-backed securities - - 59,786 2,458 320,056 29,967 59,786 2,458 Securities available for sale: U.S. government and agency obligations - - 11,453,001 1,599,195 Mortgage-backed securities 131,547 1,454 17,348,096 1,208,477 131,547 1,454 28,801,097 2,807,672 $ 451,603 $ 31,421 $ 28,860,883 $ 2,810,130 5. SECURITIES December 31, 2022 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ 343,506 $ 6,720 $ - $ - Mortgage-backed securities 63,059 2,320 - - 406,565 9,040 - - Securities available for sale: U.S. government and agency obligations 11,669,147 1,193,169 - - Mortgage-backed securities 21,946,311 801,235 - - 33,615,458 1,994,404 - - $ 34,022,023 $ 2,003,444 $ - $ - |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF LOANS RECEIVABLES, NET | SCHEDULE OF LOANS RECEIVABLES, NET September 30, December 31, 2023 2022 Mortgage loans: Residential 1-4 family $ 8,813,771 $ 9,676,089 Commercial and multi-family 19,799,081 16,438,436 Home equity lines of credit 25,471 170,468 Total Mortgage loans 28,638,323 26,284,993 Other loans: Passbook 1,791 5,789 Student 1,871,487 2,337,460 Commercial 2,557,700 1,164,210 Total 4,430,978 3,507,459 Total loans 33,069,301 29,792,452 Less: Purchase Accounting Credit Adjustment 554,089 774,063 Purchase Accounting Discount 330,566 373,626 Deferred loan fees (costs and premiums), net 24,135 2,841 Allowance for credit losses 152,466 79,290 Total loans after deduction of Deferred loan fees (costs and premiums), net and allowance for loan losses 1,061,256 1,229,820 Total loans, net $ 32,008,045 $ 28,562,632 |
SUMMARY OF ACTIVITY IN CREDIT ADJUSTMENT | Activity in this credit adjustment is summarized as follows: SUMMARY OF ACTIVITY IN CREDIT ADJUSTMENT Three months ended September 30, 2023 Balance at beginning of period $ 647,727 Amortization (60,387 ) Charge -offs (33,251 ) Balance at end of period $ 554,089 Nine months ended September 30, 2023 Balance at beginning of period $ 774,063 Amortization (127,046 ) Charge -offs (92,928 ) Balance at end of period $ 554,089 |
SUMMARY OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES | Activity in the ACL is summarized as follows: SUMMARY OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES Three months ended September 30, 2023 Balance at beginning of period $ 120,468 Provision for credit losses 25,768 Recoveries 6,230 Balance at end of period $ 152,466 Nine months ended September 30, 2023 Balance at beginning of period $ 79,290 Provision for credit losses 38,668 Recoveries 34,508 Balance at end of period $ 152,466 |
SCHEDULE OF CREDIT QUALITY INDICATORS BY PORTFOLIO SEGMENT | SCHEDULE OF CREDIT QUALITY INDICATORS BY PORTFOLIO SEGMENT September 30, 2023 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 8,814 $ 19,799 $ 25 $ 1,810 $ 2,560 $ 33,008 Special Mention - - - - - - Substandard - - - 61 - 61 Total $ 8,814 $ 19,799 $ 25 $ 1,871 $ 2,560 $ 33,069 6. LOANS RECEIVABLE, NET December 31, 2022 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 9,676 $ 14,497 $ 170 $ 2,132 $ 1,170 $ 27,645 Special Mention - 767 - 137 - 904 Substandard - 1,174 - 69 - 1,243 Total $ 9,676 $ 16,438 $ 170 $ 2,338 $ 1,170 $ 29,792 |
SCHEDULE OF INFORMATION ABOUT LOAN DELINQUENCIES | The following table provides information about loan delinquencies at the dates indicated: SCHEDULE OF INFORMATION ABOUT LOAN DELINQUENCIES September 30, 2023 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ - $ - $ - $ 8,814 $ 8,814 $ - Commercial real estate and multi-family - - - - 19,799 19,799 - Home equity lines of credit - - - - 25 25 - Student 43 - - 43 1,828 1,871 - Commercial and other - - - - 2,560 2,560 - $ 43 $ - $ - $ 43 $ 33,026 $ 33,069 $ - December 31, 2022 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ - $ - $ - $ 9,676 $ 9,676 $ - Commercial real estate and multi-family - - 234 234 16,204 16,438 - Home equity lines of credit - - - - 170 170 - Student 134 38 - 172 2,166 2,338 - Commercial and other - - - - 1,170 1,170 - $ 134 $ 38 $ 234 $ 406 $ 29,386 $ 29,792 $ - |
SUMMARY OF LOANS BY LOAN TYPE | SUMMARY OF LOANS BY LOAN TYPE September 30, December 31, 2023 2022 (In thousands) Non-accrual loans: Residential 1-4 family $ - $ - Commercial real estate and multi-family - 234 Home equity lines of credit - - Student 61 69 Commercial and other - - Total non-accrual loans 61 303 Accruing loans delinquent 90 days or more - - Total non-performing loans $ 61 $ 303 |
SCHEDULE OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES BY LOAN TYPE | The following table presents the activity in the ACL by loan type for the period indicated: SCHEDULE OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES BY LOAN TYPE 1-4 Family Multi-Family Equity Student Other Unallocated Total Three months ended September 30, 2023 Mortgage Loans Commercial Residential and Home 1-4 Family Multi-Family Equity Student Other Unallocated Total (In thousands) Beginning balance $ 6 $ 78 $ - $ 33 $ 3 $ - $ 120 Provision for credit losses (2 ) - - (2 ) 30 26 Recoveries - - - 5 1 - 6 Ending Balance $ 4 $ 78 $ - $ 36 $ 34 $ - $ 152 Nine months ended September 30, 2023 Mortgage Loans Commercial Residential and Home 1-4 Family Multi-Family Equity Student Other Unallocated Total (In thousands) Beginning balance $ - $ 56 $ - $ 23 $ - $ - $ 79 Provision for credit losses 4 22 - (21 ) 34 39 Recoveries - - - 34 - - 34 Ending Balance $ 4 $ 78 $ - $ 36 $ 34 $ - $ 152 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
SCHEDULE OF COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | The components of accumulated other comprehensive loss included in equity are as follows: SCHEDULE OF COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS September 30, December 31, 2023 2022 Unrealized net loss on pension plan (210,623 ) (210,675 ) Unrealized loss on securities available for sale (2,809,127 ) (1,994,165 ) Accumulated other comprehensive loss before taxes (3,019,750 ) (2,204,840 ) Tax effect - - Accumulated other comprehensive loss $ (3,019,750 ) $ (2,204,840 ) |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SCHEDULE OF ACTUAL CAPITAL POSITIONS AND RATIOS | The following table presents the Bank’s actual capital positions and ratios at the dates indicated: SCHEDULE OF ACTUAL CAPITAL POSITIONS AND RATIOS Actual Minimum Capital Requirements To be Well Capitalized Under Prompt Corrective Action Provisions To be Well Capitalized With Capital Conservation Buffer Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2023 Tangible Capital $ 13,276 16.02 % $ 1,243 1.50 % N/A N/A N/A N/A Total Risked-based Capital 13,428 28.82 % 4,892 10.50 % $ 4,659 10.00 % $ 4,892 10.50 % Common Equity Tier 1 Capital 13,276 28.49 % 3,261 7.00 % 3,028 6.50 % 3,261 7.00 % Tier 1 Risk-based Capital 13,276 28.49 % 3,960 8.50 % 3,727 8.00 % 3,960 8.50 % Tier 1 Leverage Capital 13,276 16.02 % 531 4.00 % 4,143 5.00 % N/A N/A December 31, 2022 Tangible Capital $ 11,278 13.04 % $ 1,298 1.50 % N/A N/A N/A N/A Total Risked-based Capital 11,357 24.67 % 4,834 10.50 % $ 4,604 10.00 % $ 4,834 10.50 % Common Equity Tier 1 Capital 11,278 24.50 % 3,223 7.00 % 2,992 6.50 % 3,223 7.00 % Tier 1 Risk-based Capital 11,278 24.50 % 3,913 8.50 % 3,683 8.00 % 3,913 8.50 % Tier 1 Leverage Capital 11,278 13.04 % 3,460 4.00 % 4,325 5.00 % N/A N/A |
FAIR VALUE MEASUREMENTS AND D_2
FAIR VALUE MEASUREMENTS AND DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF ASSETS MEASURED AT FAIR VALUE ON RECURRING BASIS | The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022: SCHEDULE OF ASSETS MEASURED AT FAIR VALUE ON RECURRING BASIS Fair Value Measurements Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) September 30, 2023: Securities available for sale $ 28,932,645 $ - $ 28,932,645 $ - December 31, 2022: Securities available for sale $ 33,735,037 $ - $ 33,735,037 $ - |
SCHEDULE OF ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENT | The carrying values and estimated fair values of financial instruments are as follows (in thousands): SCHEDULE OF ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENT Value Fair Value Value Fair Value September 30, December 31, 2023 2022 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Financial assets: Cash and cash equivalents $ 9,636 $ 9,636 $ 13,286 $ 13,286 Certificates of deposit 250 250 250 250 Securities held to maturity 412 380 416 407 Loans receivable 32,008 31,236 28,563 28,102 FHLB and other stock, at cost 134 134 139 139 Accrued interest receivable 422 422 398 398 Financial liabilities: Deposits 68,486 68,127 74,556 74,646 |
SCHEDULE OF PREMISES AND EQUIPM
SCHEDULE OF PREMISES AND EQUIPMENT ESTIMATED USEFUL LIVES (Details) | Sep. 30, 2023 |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Jul. 18, 2022 | Jun. 29, 2022 | Jun. 01, 2022 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||||||||||
Dividends payable, nature | 15-for-1 stock dividend | 15-for-1 stock dividend | ||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Common stock, shares outstanding | 17,906,285 | 17,906,285 | 15,930,976 | |||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||||
Assets fair value adjustment | $ 600,000,000 | $ 600,000,000 | ||||||||
Adjustment for unrecognized income tax benefits | 0 | |||||||||
Unrecognized tax benefits, interest and penalties | ||||||||||
Advertising cost | $ 34,041 | $ 13,791 | $ 18,077 | $ 107,840 | ||||||
Useful life of asset | 10 years | 10 years | ||||||||
Operating lease, description | one three year operating lease | |||||||||
ROU asset | $ 144,000 | $ 173,000 | $ 144,000 | |||||||
ROU liability | 144,000 | $ 173,000 | 144,000 | |||||||
Lease expense | $ 15,000 | $ 35,000 | ||||||||
401(K) Plan [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Employer matching contribution percent of match | 50% | |||||||||
Maximum annual contributions per employee percent | 6% | |||||||||
Stock Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member] | Maximum [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Number of shares which may be issued | 1,190,250 | 1,190,250 | ||||||||
Stock Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Number of shares which may be issued | 357,075 | 357,075 | ||||||||
Credit Component [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Pre tax discount | $ 895,330 | $ 895,330 | $ 895,330 | |||||||
Vecta Partners [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Capital contribution for shares | $ 4,500,000 | $ 2,500,000 | ||||||||
Number of common stock issued | 222,222 | 1,975,309 |
SCHEDULE OF ASSETS ACQUIRED AND
SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 01, 2022 |
Business Combination and Asset Acquisition [Abstract] | |||
Cash and cash equivalents | $ 4,510,000 | ||
Certificates of deposit | 250,000 | ||
Securities held to maturity | 418,000 | ||
Securities available for sale | 48,839,000 | ||
Loans receivable, net | 26,694,000 | ||
Premises and equipment | 5,404,000 | ||
Federal Home Loan Bank of New York and other stock, at cost | 177,000 | ||
Accrued interest receivable | 386,000 | ||
Cash surrender value of life insurance | 2,533,000 | ||
Goodwill | $ 5,632,477 | $ 5,622,899 | 5,623,000 |
Core deposit intangible | 1,406,000 | ||
Other assets | 195,000 | ||
Total assets Acquired | 96,435,000 | ||
Non-interest bearing | 7,795,000 | ||
Savings, NOW and money market | 47,863,000 | ||
Time deposits | 25,036,000 | ||
Total deposits | 80,694,000 | ||
Borrowings | 849,000 | ||
Advances from borrowers for taxes and insurance | 406,000 | ||
Other liabilities | 262,000 | ||
Total liabilities assumed | 82,211,000 | ||
Net assets acquired | 14,224,000 | ||
Transaction cost, net | 1,042,000 | ||
Price paid | $ 15,266,000 |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 01, 2022 | Sep. 30, 2023 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Assets fair value adjustment | $ 600,000,000 | $ 600,000,000 |
Estimated useful life | 10 years | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 10 years | |
Yield Component [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Pre tax discount | $ 405,796 | |
Credit Component [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Pre tax discount | $ 895,330 | $ 895,330 |
Merger Agreement [Member] | Vecta Partners LLC [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Share Price | $ 20.25 | |
Aggregate value of merger consideration | $ 15,300,000 |
SCHEDULE OF FAIR VALUE OF CERTI
SCHEDULE OF FAIR VALUE OF CERTIFICATES BY REMAINING PERIOD TO CONTRACTUAL MATURITY (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
After One To Five Years [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
After one to five years | $ 250,000 | $ 250,000 |
SCHEDULE OF HELD TO MATURITY AN
SCHEDULE OF HELD TO MATURITY AND AVAILABLE FOR SALE SECURITIES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | $ 412,267 | $ 415,605 |
Securities held to maturity,Gross Unrealized Gains | ||
Securities held to maturity,Gross Unrealized Losses | 32,425 | 9,040 |
Securities held to maturity,Fair Value | 379,842 | 406,565 |
Securities available for sale, Amortized Cost | 31,741,771 | 35,729,202 |
Securities available for sale,Gross Unrealized Gains | 239 | |
Securities available for sale,Gross Unrealized Losses | 2,809,126 | 1,994,404 |
Securities available for sale,Fair Value | 28,932,645 | 33,735,037 |
State, County and Municipal Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | 350,023 | 350,226 |
Securities held to maturity,Gross Unrealized Gains | ||
Securities held to maturity,Gross Unrealized Losses | 29,967 | 6,720 |
Securities held to maturity,Fair Value | 320,056 | 343,506 |
Collateralized Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | 62,244 | 65,379 |
Securities held to maturity,Gross Unrealized Gains | ||
Securities held to maturity,Gross Unrealized Losses | 2,458 | 2,320 |
Securities held to maturity,Fair Value | 59,786 | 63,059 |
Securities available for sale, Amortized Cost | 18,689,575 | 22,866,886 |
Securities available for sale,Gross Unrealized Gains | 239 | |
Securities available for sale,Gross Unrealized Losses | 1,209,931 | 801,235 |
Securities available for sale,Fair Value | 17,479,644 | 22,065,890 |
U.S. Government and Agency Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 13,052,196 | 12,862,316 |
Securities available for sale,Gross Unrealized Gains | ||
Securities available for sale,Gross Unrealized Losses | 1,599,195 | 1,193,169 |
Securities available for sale,Fair Value | $ 11,453,001 | $ 11,669,147 |
SUMMARY OF AMORTIZED COST AND F
SUMMARY OF AMORTIZED COST AND FAIR VALUE OF SECURITIES BY REMAINING PERIOD TO CONTRACTUAL MATURITY (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Held to Maturity, Within one year, Amortized Cost | ||
Held to maturity, Within one year, Fair Value | ||
Available for Sale, Within one year, Amortized Cost | 2,599,993 | 2,598,318 |
Available for Sale, Within one year, Fair Value | 2,592,170 | 2,589,582 |
Held to Maturity, After one to five years, Amortized Cost | ||
Held to maturity, After one to five years, Fair Value | ||
Available for Sale, After one to five years, Amortized Cost | 5,990,921 | 8,953,594 |
Available for Sale, After one to five years, Fair Value | 5,897,072 | 8,820,721 |
Held to Maturity, After five to ten years, Amortized Cost | ||
Held to maturity, After five to ten years, Fair Value | ||
Available for Sale, After five to ten years, Amortized Cost | 6,685,387 | 6,861,502 |
Available for Sale, After five to ten years, Fair Value | 5,941,034 | 6,303,252 |
Held to Maturity, After ten years, Amortized Cost | 412,267 | 415,605 |
Held to maturity, After ten years, Fair Value | 379,842 | 406,565 |
Available for Sale, After ten years, Amortized Cost | 16,465,470 | 17,315,788 |
Available for Sale,After ten years, Fair Value | 14,502,369 | 16,021,482 |
Held to Maturity, Amortized Cost | 412,267 | 415,605 |
Held to maturity, Within one year, Fair Value | 379,842 | 406,565 |
Available for Sale, Amortized Cost | 31,741,771 | 35,729,202 |
Available for Sale, Fair Value | $ 28,932,645 | $ 33,735,037 |
SCHEDULE OF FAIR VALUES AND UNR
SCHEDULE OF FAIR VALUES AND UNREALIZED LOSS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | $ 379,842 | $ 406,565 |
Securities held to maturity, Gross Unrealized Loss | 32,425 | 9,040 |
Securities available for sale, at fair value | 28,932,645 | 33,735,037 |
Securities available for sale,Gross Unrealized Loss | 2,809,126 | 1,994,404 |
Under One Year [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | 320,056 | 406,565 |
Securities held to maturity, Gross Unrealized Loss | 29,967 | 9,040 |
Securities available for sale, at fair value | 131,547 | 33,615,458 |
Securities available for sale,Gross Unrealized Loss | 1,454 | 1,994,404 |
Securities held to maturity and available for sale,Fair Value | 451,603 | 34,022,023 |
Securities held to maturity and available for sale,Gross Unrealized Loss | 31,421 | 2,003,444 |
One Year Or More [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | 59,786 | |
Securities held to maturity, Gross Unrealized Loss | 2,458 | |
Securities available for sale, at fair value | 28,801,097 | |
Securities available for sale,Gross Unrealized Loss | 2,807,672 | |
Securities held to maturity and available for sale,Fair Value | 28,860,883 | |
Securities held to maturity and available for sale,Gross Unrealized Loss | 2,810,130 | |
State, County and Municipal Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | 320,056 | 343,506 |
Securities held to maturity, Gross Unrealized Loss | 29,967 | 6,720 |
State, County and Municipal Obligations [Member] | Under One Year [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | 320,056 | 343,506 |
Securities held to maturity, Gross Unrealized Loss | 29,967 | 6,720 |
State, County and Municipal Obligations [Member] | One Year Or More [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | ||
Securities held to maturity, Gross Unrealized Loss | ||
Collateralized Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | 59,786 | 63,059 |
Securities held to maturity, Gross Unrealized Loss | 2,458 | 2,320 |
Securities available for sale, at fair value | 17,479,644 | 22,065,890 |
Securities available for sale,Gross Unrealized Loss | 1,209,931 | 801,235 |
Collateralized Mortgage-Backed Securities [Member] | Under One Year [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | 63,059 | |
Securities held to maturity, Gross Unrealized Loss | 2,320 | |
Securities available for sale, at fair value | 131,547 | 21,946,311 |
Securities available for sale,Gross Unrealized Loss | 1,454 | 801,235 |
Collateralized Mortgage-Backed Securities [Member] | One Year Or More [Member] | ||
Marketable Securities [Line Items] | ||
Securities held to maturity, Fair Value | 59,786 | |
Securities held to maturity, Gross Unrealized Loss | 2,458 | |
Securities available for sale, at fair value | 17,348,096 | |
Securities available for sale,Gross Unrealized Loss | 1,208,477 | |
U.S. Government and Agency Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Securities available for sale, at fair value | 11,453,001 | 11,669,147 |
Securities available for sale,Gross Unrealized Loss | 1,599,195 | 1,193,169 |
U.S. Government and Agency Obligations [Member] | Under One Year [Member] | ||
Marketable Securities [Line Items] | ||
Securities available for sale, at fair value | 11,669,147 | |
Securities available for sale,Gross Unrealized Loss | 1,193,169 | |
U.S. Government and Agency Obligations [Member] | One Year Or More [Member] | ||
Marketable Securities [Line Items] | ||
Securities available for sale, at fair value | 11,453,001 | |
Securities available for sale,Gross Unrealized Loss | $ 1,599,195 |
SECURITIES (Details Narrative)
SECURITIES (Details Narrative) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||||
Proceeds from sale of equity securities held to maturity or available for sale | $ 0 | $ 0 | $ 0 | $ 0 | |
Available securities for sale | 3,300,000 | 3,300,000 | $ 3,600,000 | ||
Government National Mortgage Association Certificates and Obligations (GNMA) [Member] | |||||
Schedule of Investments [Line Items] | |||||
Mortgage-backed securities | 224,000 | 224,000 | 256,000 | ||
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | |||||
Schedule of Investments [Line Items] | |||||
Mortgage-backed securities | 4,600,000 | 4,600,000 | 5,200,000 | ||
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | |||||
Schedule of Investments [Line Items] | |||||
Mortgage-backed securities | 7,300,000 | 7,300,000 | 8,000,000 | ||
Other Commercial Mortgage Backed Securities [Member] | |||||
Schedule of Investments [Line Items] | |||||
Mortgage-backed securities | $ 6,500,000 | $ 6,500,000 | $ 9,500,000 |
SCHEDULE OF LOANS RECEIVABLES,
SCHEDULE OF LOANS RECEIVABLES, NET (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 33,069,301 | $ 29,792,452 | |
Purchase Accounting Credit Adjustment | 554,089 | 774,063 | |
Purchase Accounting Discount | 330,566 | 373,626 | |
Deferred loan fees (costs and premiums), net | 24,135 | 2,841 | |
Allowance for credit losses | 152,466 | $ 120,468 | 79,290 |
Total loans after deduction of Deferred loan fees (costs and premiums), net and allowance for loan losses | 1,061,256 | 1,229,820 | |
Total loans, net | 32,008,045 | 28,562,632 | |
Mortgage Loans Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 28,638,323 | 26,284,993 | |
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 8,813,771 | 9,676,089 | |
Allowance for credit losses | 4,000 | 6,000 | |
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi Family Mortgage Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 19,799,081 | 16,438,436 | |
Allowance for credit losses | 78,000 | $ 78,000 | 56,000 |
Mortgage Loans Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 25,471 | 170,468 | |
Mortgage Loans Portfolio Segment [Member] | Student [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,871,000 | 2,338,000 | |
Commercial and Other Loans Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,430,978 | 3,507,459 | |
Commercial and Other Loans Portfolio Segment [Member] | Passbook [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,791 | 5,789 | |
Commercial and Other Loans Portfolio Segment [Member] | Student [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,871,487 | 2,337,460 | |
Commercial and Other Loans Portfolio Segment [Member] | Commercial Loan [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 2,557,700 | $ 1,164,210 |
SUMMARY OF ACTIVITY IN CREDIT A
SUMMARY OF ACTIVITY IN CREDIT ADJUSTMENT (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 647,727 | $ 774,063 |
Amortization | (60,387) | (127,046) |
Charge -offs | (33,251) | (92,928) |
Balance at end of period | $ 554,089 | $ 554,089 |
SUMMARY OF ACTIVITY IN ALLOWANC
SUMMARY OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | |
Receivables [Abstract] | ||||
Balance at beginning of period | $ 120,468 | $ 79,290 | ||
Provision for loan losses | 25,768 | $ 7,136 | $ 9,538 | 38,668 |
Recoveries | 6,230 | 34,508 | ||
Balance at end of period | $ 152,466 | $ 152,466 |
SCHEDULE OF CREDIT QUALITY INDI
SCHEDULE OF CREDIT QUALITY INDICATORS BY PORTFOLIO SEGMENT (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | $ 33,069,301 | $ 29,792,452 |
Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 33,008,000 | 27,645,000 |
Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 904,000 | |
Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 61,000 | 1,243,000 |
Student Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 1,871,000 | 2,338,000 |
Student Loan [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 1,810,000 | 2,132,000 |
Student Loan [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 137,000 | |
Student Loan [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 61,000 | 69,000 |
Commercial and Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 2,560,000 | 1,170,000 |
Commercial and Other Loans [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 2,560,000 | 1,170,000 |
Commercial and Other Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | ||
Commercial and Other Loans [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | ||
Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 28,638,323 | 26,284,993 |
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 8,813,771 | 9,676,089 |
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 8,814,000 | 9,676,000 |
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | ||
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | ||
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 19,799,000 | 16,438,000 |
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 19,799,000 | 14,497,000 |
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 767,000 | |
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 1,174,000 | |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 25,000 | 170,000 |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | 25,000 | 170,000 |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | ||
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio segment | $ 2,560,000 | $ 1,170,000 |
SCHEDULE OF INFORMATION ABOUT L
SCHEDULE OF INFORMATION ABOUT LOAN DELINQUENCIES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 43,000 | $ 406,000 |
Current Loans | 33,026,000 | 29,386,000 |
Total Loans | 33,069,301 | 29,792,452 |
90 Days or More Past Due and Accruing | ||
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 43,000 | 134,000 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 38,000 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 234,000 | |
Commercial and Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,560,000 | 1,170,000 |
Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 28,638,323 | 26,284,993 |
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current Loans | 8,814,000 | 9,676,000 |
Total Loans | 8,813,771 | 9,676,089 |
90 Days or More Past Due and Accruing | ||
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi Family Mortgage Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 234,000 | |
Current Loans | 19,799,000 | 16,204,000 |
Total Loans | 19,799,081 | 16,438,436 |
90 Days or More Past Due and Accruing | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi Family Mortgage Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi Family Mortgage Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi Family Mortgage Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 234,000 | |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current Loans | 25,000 | 170,000 |
Total Loans | 25,000 | 170,000 |
90 Days or More Past Due and Accruing | ||
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Student [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 43,000 | 172,000 |
Current Loans | 1,828,000 | 2,166,000 |
Total Loans | 1,871,000 | 2,338,000 |
90 Days or More Past Due and Accruing | ||
Mortgage Loans Portfolio Segment [Member] | Student [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 43,000 | 134,000 |
Mortgage Loans Portfolio Segment [Member] | Student [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 38,000 | |
Mortgage Loans Portfolio Segment [Member] | Student [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current Loans | 2,560,000 | 1,170,000 |
Total Loans | 2,560,000 | 1,170,000 |
90 Days or More Past Due and Accruing | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Other Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Other Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Other Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due |
SUMMARY OF LOANS BY LOAN TYPE (
SUMMARY OF LOANS BY LOAN TYPE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | $ 61 | $ 303 |
Accruing loans delinquent 90 days or more | ||
Total non-performing loans | 61 | 303 |
Student [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 61 | 69 |
Commercial And Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | ||
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | ||
Accruing loans delinquent 90 days or more | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi Family Mortgage Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 234 | |
Accruing loans delinquent 90 days or more | ||
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | ||
Accruing loans delinquent 90 days or more | ||
Mortgage Loans Portfolio Segment [Member] | Student [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing loans delinquent 90 days or more |
SCHEDULE OF ACTIVITY IN ALLOWAN
SCHEDULE OF ACTIVITY IN ALLOWANCE FOR LOAN LOSSES BY LOAN TYPE (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | |
Financing Receivable, Past Due [Line Items] | ||||
Balance at beginning of period | $ 120,468 | $ 79,290 | ||
Provision for credit losses | 25,768 | $ 7,136 | $ 9,538 | 38,668 |
Recoveries | 6,230 | 34,508 | ||
Balance at end of period | 152,466 | 152,466 | ||
Student Loan [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Balance at beginning of period | 33,000 | 23,000 | ||
Provision for credit losses | (2,000) | (21,000) | ||
Recoveries | 5,000 | 34,508 | ||
Balance at end of period | 36,000 | 36,000 | ||
Other Loans Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Balance at beginning of period | 3,000 | |||
Provision for credit losses | 30,000 | 34,000 | ||
Recoveries | 1,000 | |||
Balance at end of period | 34,000 | 34,000 | ||
Unallocated Financing Receivables [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Balance at beginning of period | ||||
Recoveries | ||||
Balance at end of period | ||||
Mortgage Loans Portfolio Segment [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Balance at beginning of period | 6,000 | |||
Provision for credit losses | (2,000) | 4,000 | ||
Recoveries | ||||
Balance at end of period | 4,000 | 4,000 | ||
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi Family Mortgage Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Balance at beginning of period | 78,000 | 56,000 | ||
Provision for credit losses | 22,000 | |||
Recoveries | ||||
Balance at end of period | 78,000 | 78,000 | ||
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Balance at beginning of period | ||||
Provision for credit losses | ||||
Recoveries | ||||
Balance at end of period |
LOANS RECEIVABLE, NET (Details
LOANS RECEIVABLE, NET (Details Narrative) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||
Jun. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Credit adjustment for merger | $ 895,330 | |||||
Assets fair value adjustment | $ 600,000,000 | 600,000,000 | ||||
Interest income on non-accrual loans contract term | $ 3,300 | $ 6,900 | $ 9,500 | 15,400 | ||
Interest income on non-accrual loans | 0 | $ 30,400 | $ 30,400 | 0 | ||
Credit Component [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pre tax discount | $ 895,330 | 895,330 | 895,330 | |||
Related Party [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Unpaid principal balances of related party loans | $ 89,000 | $ 89,000 | $ 98,000 |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLE (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 01, 2022 |
Goodwill | $ 5,632,477 | $ 5,622,899 | $ 5,623,000 |
Intangible Assets, Net | 1,200,000 | ||
Amortization of Intangible Assets | 140,580 | ||
Vecta Inc [Member] | |||
Goodwill | 5,600,000 | ||
Intangible Assets, Net | $ 1,400,000 |
BORROWINGS (Details Narrative)
BORROWINGS (Details Narrative) $ in Millions | Sep. 30, 2023 USD ($) |
Atlantic Community Bankers Bank [Member] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Line of credit | $ 2 |
Federal Home Loan Bank of Atlanta [Member] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Line of credit | $ 26.3 |
SCHEDULE OF COMPONENTS OF ACCUM
SCHEDULE OF COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | $ (3,019,750) | $ (2,204,840) |
Tax effect | ||
Accumulated other comprehensive loss | (3,019,750) | (2,204,840) |
Unrealized Net Losson Pension Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | (210,623) | (210,675) |
Unrealized Gain Loss On Securities Availablefor Sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | $ (2,809,127) | $ (1,994,165) |
SCHEDULE OF ACTUAL CAPITAL POSI
SCHEDULE OF ACTUAL CAPITAL POSITIONS AND RATIOS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Tangible Capital, Actual, Amount | $ 13,276 | $ 11,278 |
Tangible Capital, Actual, Ratio | 16.02% | 13.04% |
Tangible Capital, Minimum Capital Requirements, Amount | $ 1,243 | $ 1,298 |
Tangible Capital, Minimum Capital Requirements, Ratio | 1.50% | 1.50% |
Total Risked-based Capital, Actual, Amount | $ 13,428 | $ 11,357 |
Total Risked-based Capital, Actual, Ratio | 28.82% | 24.67% |
Total Risked-based Capital, Minimum Capital Requirements, Amount | $ 4,892 | $ 4,834 |
Total Risked-based Capital, Minimum Capital Requirements, Ratio | 10.50% | 10.50% |
Total Risked-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 4,659 | $ 4,604 |
Total Risked-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10% | 10% |
Total Risked-based Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | $ 4,892 | $ 4,834 |
Total Risked-based Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio | 10.50% | 10.50% |
Common Equity Tier 1 Capital, Actual, Amount | $ 13,276 | $ 11,278 |
Common Equity Tier 1 Capital, Actual, Ratio | 28.49% | 24.50% |
Common Equity Tier 1 Capital, Minimum Capital Requirements, Amount | $ 3,261 | $ 3,223 |
Common Equity Tier 1 Capital, Minimum Capital Requirements, Ratio | 7% | 7% |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 3,028 | $ 2,992 |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Common Equity Tier 1 Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | $ 3,261 | $ 3,223 |
Common Equity Tier 1 Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio | 7% | 7% |
Tier 1 Risk-based Capital, Actual, Amount | $ 13,276 | $ 11,278 |
Tier 1 Risk-based Capital, Actual, Ratio | 28.49% | 24.50% |
Tier 1 Risk-based Capital, Minimum Capital Requirements, Amount | $ 3,960 | $ 3,913 |
Tier 1 Risk-based Capital, Minimum Capital Requirements, Ratio | 8.50% | 8.50% |
Tier 1 Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 3,727 | $ 3,683 |
Tier 1 Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8% | 8% |
Tier 1 Risk-based Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | $ 3,960 | $ 3,913 |
Tier 1 Risk-based Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio | 8.50% | 8.50% |
Tier 1 Leverage Capital, Actual, Amount | $ 13,276 | $ 11,278 |
Tier 1 Leverage Capital, Actual, Ratio | 16.02% | 13.04% |
Tier 1 Leverage Capital, Minimum Capital Requirements, Amount | $ 531 | $ 3,460 |
Tier 1 Leverage Capital, Minimum Capital Requirements, Ratio | 4% | 4% |
Tier 1 Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 4,143 | $ 4,325 |
Tier 1 Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5% | 5% |
SCHEDULE OF ASSETS MEASURED AT
SCHEDULE OF ASSETS MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - Fair Value, Recurring [Member] - Available-for-Sale Securities [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 28,932,645 | $ 33,735,037 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 28,932,645 | 33,735,037 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale |
SCHEDULE OF ESTIMATED FAIR VALU
SCHEDULE OF ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENT (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities held to maturity,Fair Value | $ 379,842 | $ 406,565 |
Reported Value Measurement [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash and cash equivalents | 9,636,000 | 13,286,000 |
Certificates of deposit | 250,000 | 250,000 |
Securities held to maturity,Fair Value | 412,000 | 416,000 |
Loans receivable | 32,008,000 | 28,563,000 |
FHLB and other stock, at cost | 134,000 | 139,000 |
Accrued interest receivable | 422,000 | 398,000 |
Deposits | 68,486,000 | 74,556,000 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash and cash equivalents | 9,636,000 | 13,286,000 |
Certificates of deposit | 250,000 | 250,000 |
Securities held to maturity,Fair Value | 380,000 | 407,000 |
Loans receivable | 31,236,000 | 28,102,000 |
FHLB and other stock, at cost | 134,000 | 139,000 |
Accrued interest receivable | 422,000 | 398,000 |
Deposits | $ 68,127,000 | $ 74,646,000 |