Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | Mid-Southern Bancorp, Inc. | |
Entity Central Index Key | 0001734875 | |
Trading Symbol | msvb | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Entity Common Stock, Shares Outstanding | 3,174,657 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 1,944 | $ 1,577 |
Interest-bearing deposits with banks | 13,520 | 17,240 |
Cash and cash equivalents | 15,464 | 18,817 |
Securities available for sale, at fair value | 79,712 | 58,417 |
Securities held to maturity | 32 | 42 |
Loans, net | 115,267 | 123,272 |
Federal Home Loan Bank stock, at cost | 778 | 778 |
Real estate held for sale | 99 | 135 |
Premises and equipment | 1,822 | 1,874 |
Accrued interest receivable: | ||
Loans | 388 | 410 |
Securities | 459 | 455 |
Cash value of life insurance | 3,847 | 3,794 |
Other assets | 413 | 442 |
Total Assets | 218,281 | 208,436 |
Deposits: | ||
Noninterest-bearing | 22,287 | 17,796 |
Interest-bearing | 136,221 | 129,173 |
Total deposits | 158,508 | 146,969 |
Advance from Federal Home Loan Bank | 10,000 | 10,000 |
Accrued interest payable | 9 | 7 |
Accrued expenses and other liabilities | 918 | 647 |
Total Liabilities | 169,435 | 157,623 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, 1,000,000 shares authorized, $0.01 par value, no shares issued and outstanding | ||
Common stock, 30,000,000 shares authorized, $0.01 par value, 3,565,430 shares issued and 3,214,168 shares outstanding (3,557,728 in 2019) | 36 | 36 |
Additional paid-in capital | 30,487 | 30,415 |
Retained earnings, substantially restricted | 22,159 | 21,363 |
Accumulated other comprehensive income | 2,545 | 1,281 |
Unearned ESOP shares | (1,805) | (1,883) |
Unearned stock compensation plan | (235) | (300) |
Treasury stock, at cost - 351,262 shares (7,702 in 2019) | (4,341) | (99) |
Total Stockholders' Equity | 48,846 | 50,813 |
Total Liabilities and Stockholders' Equity | $ 218,281 | $ 208,436 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 3,565,430 | 3,565,430 |
Common stock, shares outstanding | 3,214,168 | 3,557,728 |
Treasury stock, shares | 351,262 | 7,702 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST INCOME | ||||
Loans, including fees | $ 1,354 | $ 1,529 | $ 4,203 | $ 4,612 |
Investment securities: | ||||
Mortgage-backed securities | 97 | 130 | 306 | 418 |
Municipal tax exempt | 312 | 174 | 794 | 503 |
Other debt securities | 62 | 68 | 196 | 206 |
Federal Home Loan Bank dividends | 5 | 11 | 20 | 34 |
Interest-bearing deposits with banks and time deposits | 3 | 115 | 58 | 205 |
Total interest income | 1,833 | 2,027 | 5,577 | 5,978 |
INTEREST EXPENSE | ||||
Deposits | 183 | 221 | 607 | 612 |
Borrowings | 43 | 46 | 131 | 46 |
Total interest expense | 226 | 267 | 738 | 658 |
Net interest income | 1,607 | 1,760 | 4,839 | 5,320 |
Provision for loan losses | 30 | 6 | 102 | 6 |
Net interest income after provision for loan losses | 1,577 | 1,754 | 4,737 | 5,314 |
NONINTEREST INCOME | ||||
Fees and commission | 184 | 196 | 498 | 566 |
Net gain on sales of securities available for sale | 104 | 7 | ||
Increase in cash value of life insurance | 17 | 18 | 51 | 54 |
Other income | 30 | 9 | 63 | 28 |
Total noninterest income | 202 | 215 | 657 | 631 |
NONINTEREST EXPENSE | ||||
Compensation and benefits | 882 | 788 | 2,478 | 2,362 |
Occupancy and equipment | 124 | 109 | 340 | 308 |
Data processing | 80 | 414 | 283 | 1,011 |
Professional fees | 145 | 166 | 440 | 487 |
Impairment loss on real estate held for sale | 37 | 104 | 37 | 104 |
Directors' compensation | 71 | 41 | 223 | 133 |
Stockholders' meeting expense | 17 | 45 | 44 | 73 |
Supervisory examinations | 15 | 17 | 47 | 52 |
Deposit insurance premiums | 13 | 8 | 13 | 33 |
Other expenses | 142 | 196 | 424 | 534 |
Total noninterest expense | 1,526 | 1,888 | 4,329 | 5,097 |
Income before income taxes | 253 | 81 | 1,065 | 848 |
Income tax expense (benefit) | (11) | (24) | 74 | 84 |
Net Income | $ 264 | $ 105 | $ 991 | $ 764 |
Earnings per common share: | ||||
Basic | $ 0.09 | $ 0.03 | $ 0.31 | $ 0.23 |
Diluted | $ 0.09 | $ 0.03 | $ 0.31 | $ 0.23 |
Deposit account service charges | ||||
NONINTEREST INCOME | ||||
Fees and commission | $ 45 | $ 86 | $ 127 | $ 253 |
ATM and debit card fee income | ||||
NONINTEREST INCOME | ||||
Fees and commission | $ 110 | $ 102 | $ 312 | $ 289 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||
Net Income | $ 264 | $ 105 | $ 991 | $ 764 |
Unrealized gains (losses) on securities available for sale: | ||||
Net unrealized holding gains (losses) arising during the period | (12) | 426 | 1,786 | 2,259 |
Income tax benefit (expense) | 3 | (106) | (444) | (561) |
Net of tax amount | (9) | 320 | 1,342 | 1,698 |
Reclassification adjustment for realized gains included in net income during the period | 0 | 104 | 7 | |
Income tax expense | 0 | (26) | (2) | |
Net of tax amount | 0 | 78 | 5 | |
Other Comprehensive Income (Loss), net of tax | (9) | 320 | 1,264 | 1,693 |
Total Comprehensive Income | $ 255 | $ 425 | $ 2,255 | $ 2,457 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unearned ESOP Shares | Unearned Stock Compensation | Treasury Stock | Total |
Balances at Dec. 31, 2018 | $ 36 | $ 30,302 | $ 20,672 | $ (166) | $ (1,997) | $ (1) | $ (3) | $ 48,843 |
Net income | 362 | 362 | ||||||
Other comprehensive income (loss) | 441 | 441 | ||||||
Cash dividends ($0.02 per share) | (67) | (67) | ||||||
ESOP shares committed to be released | 7 | 26 | 33 | |||||
Balances at Mar. 31, 2019 | 36 | 30,309 | 20,967 | 275 | (1,971) | (1) | (3) | 49,612 |
Balances at Dec. 31, 2018 | 36 | 30,302 | 20,672 | (166) | (1,997) | (1) | (3) | 48,843 |
Net income | 764 | |||||||
Other comprehensive income (loss) | 1,693 | |||||||
Balances at Sep. 30, 2019 | 36 | 30,322 | 21,234 | 1,527 | (1,919) | (1) | (310) | 50,889 |
Balances at Mar. 31, 2019 | 36 | 30,309 | 20,967 | 275 | (1,971) | (1) | (3) | 49,612 |
Net income | 297 | 297 | ||||||
Other comprehensive income (loss) | 932 | 932 | ||||||
Cash dividends ($0.02 per share) | (67) | (67) | ||||||
ESOP shares committed to be released | 6 | 26 | 32 | |||||
Balances at Jun. 30, 2019 | 36 | 30,315 | 21,197 | 1,207 | (1,945) | (1) | (3) | 50,806 |
Net income | 105 | 105 | ||||||
Other comprehensive income (loss) | 320 | 320 | ||||||
Cash dividends ($0.02 per share) | (68) | (68) | ||||||
ESOP shares committed to be released | 7 | 26 | 33 | |||||
Purchase of treasury shares | (307) | (307) | ||||||
Balances at Sep. 30, 2019 | 36 | 30,322 | 21,234 | 1,527 | (1,919) | (1) | (310) | 50,889 |
Balances at Dec. 31, 2019 | 36 | 30,415 | 21,363 | 1,281 | (1,883) | (300) | (99) | 50,813 |
Net income | 385 | 385 | ||||||
Other comprehensive income (loss) | (1,487) | (1,487) | ||||||
Cash dividends ($0.02 per share) | (67) | (67) | ||||||
ESOP shares committed to be released | 7 | 26 | 33 | |||||
Purchase of treasury shares | (206) | (206) | ||||||
Stock compensation expense | 18 | 22 | 40 | |||||
Balances at Mar. 31, 2020 | 36 | 30,440 | 21,681 | (206) | (1,857) | (278) | (305) | 49,511 |
Balances at Dec. 31, 2019 | 36 | 30,415 | 21,363 | 1,281 | (1,883) | (300) | (99) | 50,813 |
Net income | 991 | |||||||
Other comprehensive income (loss) | 1,264 | |||||||
Balances at Sep. 30, 2020 | 36 | 30,487 | 22,159 | 2,545 | (1,805) | (235) | (4,341) | 48,846 |
Balances at Mar. 31, 2020 | 36 | 30,440 | 21,681 | (206) | (1,857) | (278) | (305) | 49,511 |
Net income | 342 | 342 | ||||||
Other comprehensive income (loss) | 2,760 | 2,760 | ||||||
Cash dividends ($0.02 per share) | (66) | (66) | ||||||
ESOP shares committed to be released | 7 | 26 | 33 | |||||
Purchase of treasury shares | (1,677) | (1,677) | ||||||
Stock compensation expense | 16 | 22 | 38 | |||||
Balances at Jun. 30, 2020 | 36 | 30,463 | 21,957 | 2,554 | (1,831) | (256) | (1,982) | 50,941 |
Net income | 264 | 264 | ||||||
Other comprehensive income (loss) | (9) | (9) | ||||||
Cash dividends ($0.02 per share) | (62) | (62) | ||||||
ESOP shares committed to be released | 6 | 26 | 32 | |||||
Purchase of treasury shares | (2,359) | (2,359) | ||||||
Stock compensation expense | 18 | 21 | 39 | |||||
Balances at Sep. 30, 2020 | $ 36 | $ 30,487 | $ 22,159 | $ 2,545 | $ (1,805) | $ (235) | $ (4,341) | $ 48,846 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) | ||||||
Cash dividend, per share amount | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 |
Treasury stock, shares, acquired | 188,030 | 137,630 | 17,900 | 24,100 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 991 | $ 764 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of premiums and accretion of discounts on securities, net | 175 | 143 |
Provision for loan losses | 102 | 6 |
Stock compensation expense | 117 | |
Depreciation expense | 117 | 81 |
ESOP compensation expense | 98 | 98 |
Impairment loss on real estate held for sale | 37 | 104 |
Deferred income taxes | (40) | (18) |
Increase in cash value of life insurance | (51) | (54) |
Net gain on sales of securities available for sale | (104) | (7) |
Decrease in accrued interest receivable | 18 | 92 |
Increase in accrued interest payable | 2 | |
Net change in other assets and liabilities | (127) | (7) |
Net Cash Provided By Operating Activities | 1,335 | 1,202 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of securities available for sale | (30,593) | (8,636) |
Principal collected on mortgage-backed securities available for sale | 4,881 | 5,685 |
Proceeds from maturities of securities available for sale | 1,505 | 506 |
Proceeds from sales of securities available for sale | 4,525 | 278 |
Principal collected on mortgage-backed securities held to maturity | 10 | 11 |
Proceeds from maturities of securities held to maturity | 45 | |
Net decrease in loans receivable | 7,903 | 2,082 |
Purchase of premises and equipment | (19) | (31) |
Investment in cash value of life insurance | (2) | (3) |
Net Cash Used In Investing Activities | (11,790) | (63) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 11,539 | (3,452) |
Advances from Federal Home Loan Bank | 10,000 | |
Purchase of treasury stock | (4,242) | (307) |
Cash dividends paid | (195) | (202) |
Net Cash Provided By Financing Activities | 7,102 | 6,039 |
Net Increase (Decrease) in Cash and Cash Equivalents | (3,353) | 7,178 |
Cash and cash equivalents at beginning of year | 18,817 | 12,700 |
Cash and Cash Equivalents at End of Year | 15,464 | 19,878 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | 736 | 658 |
Net tax payments (refunds) | $ 74 | $ (43) |
Presentation of Interim Informa
Presentation of Interim Information | 9 Months Ended |
Sep. 30, 2020 | |
Presentation of Interim Information | |
Presentation of Interim Information | 1. Mid-Southern Bancorp, Inc., (the "Company") was incorporated in January 2018 and became the holding company for Mid-Southern Savings Bank, FSB (the "Bank"), on July 11, 2018, upon the completion of the Bank’s conversion from the mutual holding company ownership structure and the Company’s related public stock offering. Please see Note 2 – Conversion and Stock Issuance for more information. The accompanying unaudited consolidated financial statements and notes have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10‑K filed with the SEC on March 26, 2020 ("2019 Form 10‑K"). In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary for a fair presentation of the unaudited interim consolidated financial statements in accordance with GAAP. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited consolidated financial statements. Interim results are not necessarily indicative of results for a full year or any other period. The unaudited consolidated financial statements include the accounts of the Company and its subsidiary. All material intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. The reclassifications had no effect on net income or stockholders’ equity. In preparing the unaudited consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the allowance for loan losses, the valuation of foreclosed real estate and the underlying collateral of impaired loans, deferred tax assets, and the fair value of financial instruments. On April 5, 2012, the Jumpstart Our Business Startups Act ("JOBS Act") was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an "emerging growth company" we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our condensed consolidated financial statements may not be comparable to companies that comply with such new or revised accounting standards. |
Conversion and Stock Issuance
Conversion and Stock Issuance | 9 Months Ended |
Sep. 30, 2020 | |
Conversion and Stock Issuance | |
Conversion and Stock Issuance | 2. Conversion and Stock Issuance The Company, an Indiana corporation, was organized by Mid-Southern, M.H.C. (the “MHC") and the Bank in connection with the MHC’s plan of conversion from mutual to stock form of ownership (the "Conversion"). Upon consummation of the Conversion, which occurred on July 11, 2018, the Company became the holding company for the Bank and now owns all of the issued and outstanding shares of the Bank’s common stock. In connection with the Conversion, the Company sold a total of 2,559,871 shares of common stock in an offering to certain depositors of the Bank and others, including 204,789 shares purchased by the Bank’s employee stock ownership plan ("ESOP") funded by a loan from the Company (see Note 6 of the Notes to Consolidated Financial Statements). All shares were sold at a purchase price of $10.00 per share. Costs to complete the stock offering were deducted from the gross proceeds of the offering. Proceeds from the offering, net of $1.2 million in expenses, totaled $24.4 million. The Company used $2.0 million of the net proceeds to fund the ESOP and made a $10.2 million capital contribution to the Bank. In addition, concurrent with the offering, each share of Bank common stock owned by public stockholders was exchanged for 2.3462 shares of the Company’s common stock, with cash being paid in lieu of issuing any fractional shares. As a result of the offering, exchange and cash in lieu of fractional shares, the Company issued 3,565,430 shares. The Company has established a liquidation account in an amount equal to the MHC’s ownership interest in the stockholders’ equity of the Bank as reflected in the latest consolidated balance sheet contained in the final prospectus plus the value of the net assets of the MHC as reflected in the latest balance sheet of the MHC prior to the effective date of the conversion (excluding its ownership of Bank common stock). The liquidation account will be maintained for the benefit of eligible account holders who maintain deposit accounts with the Bank after conversion. The conversion was accounted for as a change in corporate form with the historic basis of the Bank’s assets, liabilities and equity unchanged as a result. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investment Securities | |
Investment Securities | 3. Investment Securities Investment securities have been classified in the consolidated balance sheets according to management’s intent. Debt securities held by the Company include mortgage-backed securities and other debt securities issued by the Government National Mortgage Association ("GNMA"), a U.S. government agency, and mortgage-backed securities and collateralized mortgage obligations issued by the Federal National Mortgage Association ("FNMA") and the Federal Home Loan Mortgage Corporation ("FHLMC"), which are government-sponsored enterprises. Mortgage-backed securities ("MBS") represent participating interests in pools of long-term first mortgage loans originated and serviced by the issuers of the securities. Collateralized mortgage obligations ("CMO") are complex mortgage-backed securities that restructure the cash flows and risks of the underlying mortgage collateral. The Company also holds debt securities issued by municipalities and political subdivisions of state and local governments. Investment securities at September 30, 2020 and December 31, 2019 are summarized as follows: Gross Gross (In thousands) Amortized Unrealized Unrealized Fair September 30, 2020 Cost Gains Losses Value Securities available for sale: Mortgage-backed securities: Agency MBS $ 7,250 $ 128 $ — $ 7,378 Agency CMO 16,068 228 42 16,254 23,318 356 42 23,632 Other debt securities: Municipal obligations 53,007 3,143 70 56,080 Total securities available for sale $ 76,325 $ 3,499 $ 112 $ 79,712 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 32 $ — $ — $ 32 Total securities held to maturity $ 32 $ — $ — $ 32 December 31, 2019 Securities available for sale: Mortgage-backed securities: Agency MBS $ 9,803 $ 3 $ 36 $ 9,770 Agency CMO 10,520 209 17 10,712 20,323 212 53 20,482 Other debt securities: Municipal obligations 36,390 1,649 104 37,935 Total securities available for sale $ 56,713 $ 1,861 $ 157 $ 58,417 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 42 $ — $ — $ 42 Total securities held to maturity $ 42 $ — $ — $ 42 The amortized cost and fair value of debt securities as of September 30, 2020, by contractual maturity, are shown below. Expected maturities of MBS and CMO may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due in one year or less $ — $ — $ — $ — Due after one year through five years 4,185 4,341 — — Due after five years through ten years 6,961 7,595 — — Due after ten years 41,861 44,144 — — 53,007 56,080 — — MBS and CMO 23,318 23,632 32 32 $ 76,325 $ 79,712 $ 32 $ 32 Information pertaining to investment securities available for sale with gross unrealized losses at September 30, 2020, aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows. At September 30, 2020, the Company did not have any securities in a continuous loss position for more than 12 months. Number of Gross (Dollars in thousands) Investment Fair Unrealized September 30, 2020 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: Agency CMO 5 $ 7,975 $ 42 Municipal obligations 4 3,560 70 Total less than 12 months 9 11,535 112 Total securities available for sale 9 $ 11,535 $ 112 Information pertaining to investment securities available for sale with gross unrealized losses at December 31, 2019, aggregated by investment category and the length of time that individual investment securities have been in a continuous loss position, follows. Number of Gross (Dollars in thousands) Investment Fair Unrealized December 31, 2019 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: Agency MBS 3 $ 3,304 $ 9 Agency CMO 2 1,942 6 Municipal obligations 10 7,030 104 Total less than 12 months 15 12,276 119 Continuous loss position more than 12 months: Agency MBS 6 3,696 27 Agency CMO 1 1,089 11 Total more than 12 months 7 4,785 38 Total securities available for sale 22 $ 17,061 $ 157 Management evaluates securities for other-than-temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recover in fair value. At September 30, 2020, the debt securities available for sale in a loss position had depreciated approximately 0.96% from the amortized cost basis. All of the debt securities in a loss position at September 30, 2020 were backed by residential first mortgage loans or were obligations issued by federal or local government-sponsored enterprises. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition for purposes of evaluating whether declines in value are other-than-temporary, management considers whether the securities are issued by the federal government, its agencies or sponsored enterprises or local governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As the Company has the ability to hold the debt securities until maturity, or for the foreseeable future if classified as available for sale, no declines are deemed to be other-than-temporary. Additional deterioration in market and economic conditions related to the recent Coronavirus Disease 2019 (“COVID-19”) pandemic, may have an adverse impact on credit quality in the future and result in other-than-temporary impairment charges. There were no securities sales during the three-month period ended September 30, 2020. During the nine-month period ended September 30, 2020, the Company realized gross gains of $111,000 on the sale of available for sale MBS and municipal obligations and gross losses of $7,000 on the sale of available for sale municipal obligations. There were no securities sales during the three-month period ended September 30, 2019. During the nine-month period ended September 30, 2019, the Company realized a gross gain of $7,000 on the sale of an available for sale municipal security. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | 4. Loans and Allowance for Loan Losses The Company’s loan and allowance for loan loss policies are as follows: Loans Held for Investment. Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for loan losses. The Company grants real estate mortgages, commercial business and consumer loans. A substantial portion of the loan portfolio is represented by mortgage loans to customers in southern Indiana. The ability of the Company’s customers to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of net deferred loan fees is discontinued when a loan is placed on nonaccrual status. Nonaccrual Loans. The recognition of income on a loan is discontinued and previously accrued interest is reversed when interest or principal payments become 90 days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Generally, by applying the cash receipts method, interest income is subsequently recognized only as received until the loan is returned to accrual status. The cash receipts method is used when the likelihood of further loss on the loan is remote. Otherwise, the Company applies the cost recovery method and applies all payments as a reduction of the unpaid principal balance until the loan qualifies for return to accrual status. Interest income on impaired loans is recognized using the cost recovery method, unless the likelihood of further loss on the loan is remote. A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six consecutive months. Allowance for Loan Losses. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Additions to the allowance for loan losses are made by the provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company uses a disciplined process and methodology to evaluate the allowance for loan losses on at least a quarterly basis that is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated for impairment or loans otherwise classified as doubtful or substandard. For such loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and classified loans that are found, upon individual evaluation, to not be impaired. Such loans are pooled by portfolio segment and losses are modeled using annualized historical loss experience adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the Company’s actual loss history over the most recent twenty calendar quarters unless the historical loss experience is not considered indicative of the level of risk in the remaining balance of a particular portfolio segment, in which case an adjustment is determined by management. The Company’s historical loss experience is then adjusted for qualitative factors that are reviewed on a quarterly basis. Management’s determination of the allowance for loan losses considers changes and trends in the following qualitative loss factors: lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices and management experience, national and local economic conditions, new loan trends, past due and nonaccrual loans, loan reviews, collateral values, credit concentrations and other internal and external factors such as competition, legal and regulatory changes. Each loan pool’s historical loss rate is adjusted based on positive or negative changes in the qualitative loss factor. This adjustment is what determines the adjusted loss rate used in management’s allowance for loan loss adequacy calculation. Management exercises significant judgment in evaluating the relevant historical loss experience and the qualitative factors. Management also monitors the differences between estimated and actual incurred loan losses for loans considered impaired in order to evaluate the effectiveness of the estimation process and make any changes in the methodology as necessary. The following portfolio segments are considered in the allowance for loan loss analysis: one-to-four family residential real estate, multi-family residential real estate, residential construction, commercial construction, commercial real estate non owner occupied, commercial real estate owner occupied, junior liens, home equity lines of credit, commercial business, and consumer loans. Residential real estate loans primarily consist of loans to individuals for the purchase or refinance of their primary residence, with a smaller portion of the segment secured by non-owner-occupied residential investment properties and multi-family residential investment properties. Also, included within the residential real estate loan portfolio are home equity loans and junior lien loans, which are secured by liens on the borrower’s personal residence. The risks associated with residential real estate loans are closely correlated to the local housing market and general economic conditions, as repayment of the loans is primarily dependent on the borrower’s or tenant’s personal cash flow and employment status. The Company’s construction loan portfolio consists of single-family residential properties, multi-family properties and commercial projects, and includes both owner-occupied and speculative investment properties. Risks inherent in construction lending are related to the market value of the property held as collateral, the cost and timing of constructing or improving a property, the borrower’s ability to use funds generated by a project to service a loan until a project is completed, movements in interest rates and the real estate market during the construction phase, and the ability of the borrower to obtain permanent financing. Commercial real estate loans are comprised of loans secured by various types of collateral including farmland, office buildings, warehouses, retail space and mixed-use buildings located in the Company’s primary lending area. Risks related to commercial real estate lending are related to the market value of the property taken as collateral, the underlying cash flows and general economic condition of the local real estate market. Repayment of these loans is generally dependent on the ability of the borrower to attract tenants at lease rates or general business operating cash flows that provide for adequate debt service and can be impacted by local economic conditions which impact vacancy rates and the general level of business activity. The Company generally obtains loan guarantees from financially capable parties for commercial real estate loans. Commercial business loans include lines of credit to businesses, term loans and letters of credit secured by business assets such as equipment, accounts receivable, inventory, or other assets excluding real estate and are generally made to finance capital expenditures or fund operations. Commercial loans contain risks related to the value of the collateral securing the loan and the repayment is primarily dependent upon the financial success and viability of the borrower. As with commercial real estate loans, the Company generally obtains loan guarantees from financially capable parties for commercial business loans. Consumer loans consist primarily of home improvement loans, automobile and truck loans, boat loans, mobile home loans, loans secured by savings deposits, and other personal loans. The risks associated with these loans are related to the local housing market and local economic conditions including the unemployment level. Loan Charge-Offs. For portfolio segments other than consumer loans, the Company’s practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, the depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons. A partial charge-off is recorded on a loan when the collectability of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not be repaid. A specific reserve is recognized as a component of the allowance for estimated losses on loans individually evaluated for impairment. Partial charge-offs on nonperforming and impaired loans are included in the Company’s historical loss experience used to estimate the general component of the allowance for loan losses as discussed above. Specific reserves are not considered charge-offs in management’s evaluation of the general component of the allowance for loan losses because they are estimates and the outcome of the loan relationship is undetermined. At September 30, 2020, the Company had seven loans for which partial charge-offs in the aggregate of $158,000 had been recorded. Consumer loans not secured by real estate are typically charged off at 90 days past due, or earlier if deemed uncollectible, unless the loans are in the process of collection. Overdrafts are charged off after 60 days past due. A charge-off is typically recorded on a loan secured by real estate when the property is foreclosed upon when the carrying value of the loan exceeds the property’s fair value less the estimated costs to sell. Impaired Loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Values for collateral dependent loans are generally based on appraisals obtained from independent licensed real estate appraisers, with adjustments applied for estimated costs to sell the property, costs to complete unfinished or repair damaged property and other factors. New appraisals or valuations are generally obtained for all significant properties (if the value is estimated to exceed $100,000) when a loan is identified as impaired. Subsequent appraisals are obtained or an internal evaluation is prepared annually, or more frequently if management believes there has been a significant change in the market value of a collateral property securing a collateral dependent impaired loan. In instances where it is not deemed necessary to obtain a new appraisal, management bases its impairment evaluation on the original appraisal with adjustments for current conditions based on management’s assessment of market factors and inspection of the property. At September 30, 2020 and December 31, 2019, there were no loans secured by residential real estate property for which formal foreclosure proceedings were in process. Loans at September 30, 2020 and December 31, 2019 consisted of the following: September 30, December 31, (In thousands) 2020 2019 Real estate mortgage loans: One-to-four family residential $ 67,468 $ 71,606 Multi-family residential 8,613 9,260 Residential construction 689 367 Commercial real estate 29,232 32,311 Commercial real estate construction 3,244 2,867 Commercial business loans 6,162 6,456 Consumer loans 1,445 1,875 Total loans 116,853 124,742 Deferred loan origination fees and costs, net (4) 28 Allowance for loan losses (1,582) (1,498) Loans, net $ 115,267 $ 123,272 The following table provides the components of the Company’s recorded investment in loans at September 30, 2020: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 67,468 $ 8,613 $ 3,933 $ 29,232 $ 6,162 $ 1,445 $ 116,853 Accrued interest receivable 208 32 10 117 16 5 388 Net deferred loan fees/costs 5 (6) (32) (12) 6 35 (4) Recorded investment in loans $ 67,681 $ 8,639 $ 3,911 $ 29,337 $ 6,184 $ 1,485 $ 117,237 Recorded Investment in Loans as Evaluated for Impairments: Individually evaluated for impairment $ 1,497 $ — $ — $ 610 $ 396 $ — $ 2,503 Collectively evaluated for impairment 66,184 8,639 3,911 28,727 5,788 1,485 114,734 Ending balance $ 67,681 $ 8,639 $ 3,911 $ 29,337 $ 6,184 $ 1,485 $ 117,237 The following table provides the components of the Company’s recorded investment in loans at December 31, 2019: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 71,606 $ 9,260 $ 3,234 $ 32,311 $ 6,456 $ 1,875 $ 124,742 Accrued interest receivable 254 25 11 88 26 6 410 Net deferred loan fees/costs 23 (11) (36) (6) 10 48 28 Recorded investment in loans $ 71,883 $ 9,274 $ 3,209 $ 32,393 $ 6,492 $ 1,929 $ 125,180 Recorded Investment in Loans as Evaluated for Impairments: Individually evaluated for impairment $ 1,431 $ — $ — $ 600 $ 412 $ — $ 2,443 Collectively evaluated for impairment 70,452 9,274 3,209 31,793 6,080 1,929 122,737 Ending balance $ 71,883 $ 9,274 $ 3,209 $ 32,393 $ 6,492 $ 1,929 $ 125,180 An analysis of the allowance for loan losses as of September 30, 2020 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ 24 $ — $ — $ 25 $ 28 $ — $ 77 Collectively evaluated for impairment 968 101 53 304 55 24 1,505 Ending balance $ 992 $ 101 $ 53 $ 329 $ 83 $ 24 $ 1,582 An analysis of the allowance for loan losses as of December 31, 2019 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ 25 $ — $ — $ 19 $ 34 $ — $ 78 Collectively evaluated for impairment 930 83 44 270 68 25 1,420 Ending balance $ 955 $ 83 $ 44 $ 289 $ 102 $ 25 $ 1,498 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2020 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 984 $ 94 $ 50 $ 320 $ 83 $ 25 $ 1,556 Provisions 9 7 3 9 — 2 30 Charge-offs (2) — — — — (4) (6) Recoveries 1 — — — — 1 2 Ending balance $ 992 $ 101 $ 53 $ 329 $ 83 $ 24 $ 1,582 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2020 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 955 $ 83 $ 44 $ 289 $ 102 $ 25 $ 1,498 Provisions 48 18 9 40 (19) 6 102 Charge-offs (14) — — — — (14) (28) Recoveries 3 — — — — 7 10 Ending balance $ 992 $ 101 $ 53 $ 329 $ 83 $ 24 $ 1,582 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2019 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 952 $ 86 $ 30 $ 296 $ 98 $ 26 $ 1,488 Provisions (15) 1 1 8 1 10 6 Charge-offs — — — — — (6) (6) Recoveries — — — — — — — Ending balance $ 937 $ 87 $ 31 $ 304 $ 99 $ 30 $ 1,488 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2019 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 1,012 $ 59 $ 48 $ 259 $ 98 $ 28 $ 1,504 Provisions (57) 28 (17) 45 1 6 6 Charge-offs (32) — — — — (12) (44) Recoveries 14 — — — — 8 22 Ending balance $ 937 $ 87 $ 31 $ 304 $ 99 $ 30 $ 1,488 The following table summarizes the Company’s impaired loans as of September 30, 2020 and for the three and nine months ended September 30, 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the three- and nine-month periods ended September 30, 2020. Three Months Ended Nine Months Ended At September 30, 2020 September 30, 2020 September 30, 2020 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 1,244 $ 1,338 $ — $ 1,255 $ 1 $ 1,188 $ 4 Commercial real estate 273 259 — 281 — 262 — Commercial business 21 22 — 22 — 27 1 $ 1,538 $ 1,619 $ — $ 1,558 $ 1 $ 1,477 $ 5 Loans with an allowance recorded: One-to-four family residential $ 253 $ 279 $ 24 $ 253 $ 2 $ 256 $ 5 Commercial real estate 337 348 25 328 5 345 13 Commercial business 375 394 28 380 5 378 15 $ 965 $ 1,021 $ 77 $ 961 $ 12 $ 979 $ 33 Total: One-to-four family residential $ 1,497 $ 1,617 $ 24 $ 1,508 $ 3 $ 1,444 $ 9 Commercial real estate 610 607 25 609 5 607 13 Commercial business 396 416 28 402 5 405 16 $ 2,503 $ 2,640 $ 77 $ 2,519 $ 13 $ 2,456 $ 38 The following table summarizes the Company’s impaired loans for the three- and nine-month periods ended September 30, 2019. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the three- and nine-month periods ended September 30, 2019. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 1,258 $ 2 $ 1,341 $ 18 Commercial real estate 350 1 368 3 Commercial business 38 1 43 2 Consumer 1 — 1 — $ 1,647 $ 4 $ 1,753 $ 23 Loans with an allowance recorded: One-to-four family residential $ 261 $ 3 $ 358 $ 8 Commercial real estate 296 4 325 13 Commercial business 395 6 405 18 Consumer — — — — $ 952 $ 13 $ 1,088 $ 39 Total: One-to-four family residential $ 1,519 $ 5 $ 1,699 $ 26 Commercial real estate 646 5 693 16 Commercial business 433 7 448 20 Consumer 1 — 1 — $ 2,599 $ 17 $ 2,841 $ 62 The following table summarizes the Company’s impaired loans as of December 31, 2019: At December 31, 2019 Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 1,172 $ 1,457 $ — Commercial real estate 235 389 — Commercial business 32 32 — $ 1,439 $ 1,878 $ — Loans with an allowance recorded: One-to-four family residential $ 259 $ 284 $ 25 Commercial real estate 365 364 19 Commercial business 380 426 34 $ 1,004 $ 1,074 $ 78 Total: One-to-four family residential $ 1,431 $ 1,741 $ 25 Commercial real estate 600 753 19 Commercial business 412 458 34 $ 2,443 $ 2,952 $ 78 Nonperforming loans consists At September 30, 2020 At December 31, 2019 Loans 90+ Loans 90+ Days Total Days Total Nonaccrual Past Due Nonperforming Nonaccrual Past Due Nonperforming Loans Still Accruing Loans Loans Still Accruing Loans (In thousands) One-to-four family residential $ 1,166 $ — $ 1,166 $ 947 $ — $ 947 Commercial real estate 273 — 273 235 — 235 Total $ 1,439 $ — $ 1,439 $ 1,182 $ — $ 1,182 The following tables present the aging of the recorded investment in loans at September 30, 2020 and December 31, 2019: Over 30‑59 Days 60‑89 Days 90 Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) September 30, 2020 One-to-four family residential $ 624 $ 409 $ 65 $ 1,098 $ 66,583 $ 67,681 Multi-family residential — — — — 8,639 8,639 Construction — — — — 3,911 3,911 Commercial real estate 2 38 — 40 29,297 29,337 Commercial business — — — — 6,184 6,184 Consumer 50 — — 50 1,435 1,485 Total $ 676 $ 447 $ 65 $ 1,188 $ 116,049 $ 117,237 December 31, 2019 One-to-four family residential $ 1,425 $ 575 $ 238 $ 2,238 $ 69,645 $ 71,883 Multi-family residential — — — — 9,274 9,274 Construction 152 — — 152 3,057 3,209 Commercial real estate 477 134 — 611 31,782 32,393 Commercial business — — — — 6,492 6,492 Consumer 7 — — 7 1,922 1,929 Total $ 2,061 $ 709 $ 238 $ 3,008 $ 122,172 $ 125,180 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, public information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings: Special Mention : Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss : Loans classified as loss are considered uncollectible and of such little value that their continuance on the institution’s books as an asset is not warranted. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table presents the recorded investment in loans by risk category as of the dates indicated: One-to- Multi- Four Family Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) September 30, 2020 Pass $ 66,290 $ 8,639 $ 3,679 $ 28,702 $ 5,788 $ 1,485 $ 114,583 Special mention — — 232 215 — — 447 Substandard 1,391 — — 420 396 — 2,207 Doubtful — — — — — — — Loss — — — — — — — Total $ 67,681 $ 8,639 $ 3,911 $ 29,337 $ 6,184 $ 1,485 $ 117,237 December 31, 2019 Pass $ 70,611 $ 9,274 $ 3,209 $ 31,949 $ 6,080 $ 1,929 $ 123,052 Special mention — — — — — — — Substandard 1,272 — — 444 412 — 2,128 Doubtful — — — — — — — Loss — — — — — — — Total $ 71,883 $ 9,274 $ 3,209 $ 32,393 $ 6,492 $ 1,929 $ 125,180 Modification of a loan is considered to be a troubled debt restructuring ("TDR") if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. By granting the concession, the Company expects to obtain more cash or other value from the debtor, or to increase the probability of receipt, than would be expected by not granting the concession. The concession may include, but is not limited to, reduction of the stated interest rate of the loan, reduction of accrued interest, extension of the maturity date or reduction of the face amount of the debt. A concession will be granted when, as a result of the restructuring, the Company does not expect to collect all amounts due, including interest at the original stated rate. A concession may also be granted if the debtor is not able to access funds elsewhere at a market rate for debt with similar risk characteristics as the restructured debt. The Company’s determination of whether a loan modification is a TDR considers the individual facts and circumstances surrounding each modification. A TDR can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the restructuring. A TDR on nonaccrual status is restored to accrual status when the borrower has demonstrated the ability to make future payments in accordance with the restructured terms, including consistent and timely payments for at least six consecutive months in accordance with the restructured terms. The Coronavirus Aid, Relief, and Economic Security Act of 2020 signed into law on March 27, 2020 ("CARES Act") provides guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined under the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. On March 22, 2020, federal banking regulators issued an interagency statement that included guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic. The guidance interprets current accounting standards and indicates that a lender can conclude that a borrower is not experiencing financial difficulty if short-term modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to the loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. The agencies confirmed in working with the staff of the Financial Accounting Standards Board (“FASB”) that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. Loan modifications in accordance with the CARES Act and related regulatory guidance are still subject to an evaluation in regard to determining whether or not a loan is deemed to be impaired. At September 30, 2020, the Bank had modified 89 loans with $18.6 million in total principal outstanding and had no pending requests for additional payment relief. The following table summarizes the Company’s TDRs by accrual status as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Related Related Allowance for Allowance for Accruing Nonaccrual Total Loan Losses Accruing Nonaccrual Total Loan Losses (In thousands) One-to-four family residential $ 331 $ 230 $ 561 $ 24 $ 484 $ — 484 $ 25 Commercial real estate 337 178 515 25 365 137 502 19 Commercial business 396 — 396 28 412 — 412 34 Total $ 1,064 $ 408 $ 1,472 $ 77 $ 1,261 $ 137 $ 1,398 $ 78 At both September 30, 2020 and December 31, 2019 there were no commitments to lend additional funds to debtors whose loan terms have been modified in a TDR (both accruing and nonaccruing). The following table summarizes information in regards to TDRs that were restructured during the three and nine months ended September 30, 2020. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Pre-Modification Post-Modification Pre-Modification Post-Modification Number of Outstanding Outstanding Number of Outstanding Outstanding Contracts Balance Balance Contracts Balance Balance (Dollars in thousands) One-to-four family residential 2 $ 81 $ 81 5 $ 230 $ 230 Commercial real estate — — — 1 51 51 Total 2 $ 81 $ 81 6 $ 281 $ 281 The following table summarizes information in regard to TDRs that were restructured during the nine months ended September 30, 2019: Nine Months Ended September 30, 2019 Pre-Modification Post-Modification Number of Outstanding Outstanding Contracts Balance Balance (Dollars in thousands) Commercial real estate 1 $ 155 $ 155 Total 1 $ 155 $ 155 There were no TDRs that were restructured during the three months ended September 30, 2019. For the three-month period ended September 30, 2020, two loans were reclassified as TDRs. For TDRs that were restructured during the nine months ended September 30, 2020, the terms of the modifications included a three-month payment deferral associated with the COVID-19 pandemic. For the TDR that was restructured during the nine months ended September 30, 2019, the terms of modification included an extension of the maturity date. There were no principal charge-offs recorded as a result of TDRs and there was no specific allowance for loan losses related to TDRs modified during both the three- and nine-month periods ended September 30, 2020 and 2019. There were no TDRs modified within the previous 12 months for which there was a subsequent payment default (defined as the loan becoming more than 90 days past due, being moved to nonaccrual status, or the collateral being foreclosed upon) during the three- and nine-month periods ended September 30, 2020 and 2019. In the event that a TDR subsequently defaults, the Company evaluates the restructuring for possible impairment. As a result, the related allowance for loan losses may be increased or charge-offs may be taken to reduce the carrying amount of the loan. |
Supplemental Disclosure for Ear
Supplemental Disclosure for Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Disclosure for Earnings Per Share | |
Supplemental Disclosure for Earnings Per Share | 5. Supplemental Disclosure for Earnings Per Share Nonvested restricted stock shares and unallocated ESOP shares are not considered as outstanding for purposes of computing weighted average common shares outstanding. No stock options for common stock and no restricted stock awards were excluded from the calculation of diluted net income per common share because their effect was antidilutive for the three- and nine-month periods ended September 30, 2020 and 2019. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands, except per share data) Basic Earnings: Net income $ 264 $ 105 $ 991 $ 764 Shares: Weighted average common shares outstanding 3,106,371 3,364,526 3,237,533 3,366,472 Net income per common share, basic $ 0.09 $ 0.03 $ 0.31 $ 0.23 Diluted Earnings: Net income $ 264 $ 105 $ 991 $ 764 Shares: Weighted average common shares outstanding 3,106,371 3,364,526 3,237,533 3,366,472 Add: Dilutive effect of stock options 1,142 1,298 1,140 1,288 Add: Dilutive effect of restricted stock 2,803 101 984 121 Weighted average common shares outstanding, as adjusted 3,110,316 3,365,925 3,239,657 3,367,881 Net income per common share, Diluted $ 0.09 $ 0.03 $ 0.31 $ 0.23 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2020 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | 6. Employee Stock Ownership Plan In connection with the Conversion, the Bank established a leveraged ESOP for eligible employees of the Company and the Bank. The ESOP trust purchased 204,789 shares of Company common stock at the initial public offering price of $10.00 per share financed by a 20‑year term loan with the Company. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Company’s discretionary contributions to the ESOP and earnings on ESOP assets. The employer loan and the related interest income are not recognized in the consolidated financial statements as the debt is serviced by employer contributions. Dividends payable on allocated shares are charged to retained earnings and are satisfied by the allocation of cash dividends to participant accounts. Dividends payable on unallocated shares are not considered dividends for financial reporting purposes. Shares held by the ESOP trust are held in a suspense account and allocated to participant accounts as principal and interest payments are made by the ESOP to the Company. Payments of principal and interest are due annually on December 31st, the Company’s fiscal year end. As shares are committed to be released for allocation to participant accounts from collateral, the Company reports compensation expense equal to the average fair value of shares committed to be released during the year with a corresponding credit to stockholders’ equity and the shares become outstanding for earnings per share computations. The compensation expense is accrued throughout the year. Compensation expense recognized for the three- and nine-month periods ended September 30, 2020 was $32,000 and $98,000, respectively. Compensation expense recognized for the three- and nine-month periods ended September 30, 2019 was $33,000 and $98,000, respectively. The ESOP trust held 16,498 allocated shares and 188,291 unallocated shares of Company common stock at September 30, 2020. The fair value of the unallocated shares was $2.4 million at September 30, 2020. |
Stock-based Compensation Plans
Stock-based Compensation Plans | 9 Months Ended |
Sep. 30, 2020 | |
Stock-based Compensation Plans | |
Stock-based Compensation Plans | 7. Stock-based Compensation Plans The Company’s stock-based compensation plans are described below. 2010 Equity Incentive Plan The Bank had an equity incentive plan (the “2010 Plan”) adopted on July 27, 2010 which was assumed by the Company in connection with the Conversion. Under the 2010 Plan, 127,849 shares of common stock, as adjusted for the Conversion exchange ratio, were approved for awards of stock options and restricted stock. As of September 30, 2020, on an adjusted basis, awards for stock options totaling 93,488 shares and awards for restricted stock totaling 34,250 shares of Company common stock have been granted, net of any forfeitures, to participants in the 2010 Plan. The vesting dates for stock option awards are determined by the Compensation Committee appointed by the board of directors. All unvested options become exercisable upon an option holder’s death or disability and in the event of a change in control. Option prices may not be less than the fair market value of the underlying stock at the date of the grant of the award. Restricted stock awards generally vest over a period of five years. The Plans provides that unvested restricted stock awards become fully vested upon a holder’s death or disability and in the event of a change in control. Compensation expense is recognized over the requisite service period with a corresponding credit to stockholders' equity. The requisite service period for restricted shares is the vesting period. The fair market value of stock options granted is determined at the date of grant using the binomial option pricing model. Expected volatilities are based on historical volatility of the Company's stock (for periods prior to the Conversion, the historical volatility of the Bank’s common stock). The expected term of options granted represents the period of time that options are expected to be outstanding and is based on historical trends. The risk-free rate for the expected life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. A summary of option activity under the 2010 Plan as of September 30, 2020, and changes during the nine-month period then ended is presented below: Weighted Average Number Weighted Remaining Aggregate of Average Exercise Contractual Intrinsic Shares Price Term Value Outstanding at beginning of year 93,488 $ 13.17 Granted — — Exercised — — Forfeited or expired — — Outstanding at end of period 93,488 $ 13.17 $ 15,000 Vested and expected to vest 93,488 $ 13.17 $ 15,000 Exercisable at end of period 23,429 $ 12.65 $ 15,000 For the three- and nine-month periods ended September 30, 2020 the Company recognized $18,000 and $52,000, respectively, in compensation expense related to the stock option plan. At September 30, 2020, there was $175,000 of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 3.0 years. For the three- and nine-month periods ended September 30, 2019, the Company recognized no compensation expense related to the stock option plan as the amount of compensation cost determined under FASB Accounting Standards Codification (“ASC”) Topic 718 was insignificant. A summary of the activity for the Company’s nonvested restricted shares as of September 30, 2020 and changes during the nine-month period then ended is presented below: Weighted Number Average of Grant-Date Shares Fair Value Nonvested at beginning of year 22,553 $ 13.32 Granted — — Vested (47) 5.00 Forfeited — — Nonvested at end of period 22,506 $ 13.34 At September 30, 2020, unrecognized compensation expense related to nonvested restricted shares was $234,000. The compensation expense is expected to be recognized over the remaining weighted average vesting period of 3.1 years. 2019 Equity Incentive Plan In September 2019, the Company’s stockholders approved the 2019 Equity Incentive Plan (the “2019 Plan”) which provides for the award of stock options and restricted stock. Under the 2019 Plan, the Compensation Committee may grant stock options that, upon exercise, result in the issuance of 255,987 shares of common stock and may grant 102,395 shares of restricted stock. At September 30, 2020, no awards of stock options or restricted stock have been granted under the 2019 Plan. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | 8 . Fair Value Measurements FASB ASC Topic 820 , Fair Value Measurement, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are described as follows: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets Level 2: Inputs to the valuation methodology include quoted market prices for similar assets or liabilities in active markets; quoted market prices for identical or similar assets or liabilities in markets that are not active; or inputs that are derived principally from or can be corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth on the following page. These valuation methodologies were applied to all of the Company’s financial and nonfinancial assets carried at fair value or the lower of cost or fair value. The table below presents the balances of assets measured at fair value on a recurring and nonrecurring basis as of September 30, 2020 and December 31, 2019. The Company had no liabilities measured at fair value as of September 30, 2020 and December 31, 2019. Carrying Value Level 1 Level 2 Level 3 Total (In thousands) September 30, 2020 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 7,378 $ — $ 7,378 Agency CMO — 16,254 — 16,254 Municipal obligations — 56,080 — 56,080 Total securities available for sale $ — $ 79,712 $ — $ 79,712 Assets Measured on a Nonrecurring Basis Impaired loans: One-to-four family residential $ — $ — $ 1,473 $ 1,473 Commercial real estate — — 585 585 Commercial business — — 368 368 Total impaired loans $ — $ — $ 2,426 $ 2,426 Real estate held for sale $ — $ — $ 99 $ 99 December 31, 2019 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 9,770 $ — $ 9,770 Agency CMO — 10,712 — 10,712 Municipal obligations — 37,935 — 37,935 Total securities available for sale $ — $ 58,417 $ — $ 58,417 Assets Measured on a Nonrecurring Basis Impaired loans: One-to-four family residential $ — $ — $ 1,406 $ 1,406 Commercial real estate — — 581 581 Commercial business — — 378 378 Total impaired loans $ — $ — $ 2,365 $ 2,365 Real estate held for sale $ — $ — $ 135 $ 135 Fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters or a matrix pricing model that employs the Bond Market Association’s standard calculations for cash flow and price/yield analysis and observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, or the lower of cost or fair value. These adjustments may include unobservable parameters. Any such valuation adjustments have been applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available for Sale. Securities classified as available for sale are reported at fair value on a recurring basis. These securities are classified as Level 1 of the valuation hierarchy where quoted market prices from reputable third-party brokers are available in an active market. If quoted market prices are not available, the Company obtains fair value measurements from an independent pricing service. These securities are reported using Level 2 inputs and the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. Changes in fair value of securities available for sale are recorded in other comprehensive income, net of income tax effect. Impaired Loans . Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. The fair value of impaired loans is classified as Level 3 in the fair value hierarchy. Impaired loans are carried at the present value of estimated future cash flows using the loan’s effective interest rate or the fair value of collateral less estimated costs to sell if the loan is collateral dependent. At both September 30, 2020 and December 31, 2019, all impaired loans other than performing TDRs were considered to be collateral dependent for the purpose of determining fair value. Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable. The fair value of the collateral is generally determined based on real estate appraisals or other independent evaluations by qualified professionals, adjusted for estimated costs to sell the property, costs to complete or repair the property and other factors to reflect management’s estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. At both September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurement of collateral dependent impaired loans included a discount from appraised value (including estimated costs to sell the collateral) of 10%. The Company recognized a reduction in the allowance for loan losses allocated to impaired loans of $3,000 each for both the three months ended September 30, 2020 and 2019. For the nine-months ended September 30, 2020, the allowance for loan losses allocated to impaired loans remained unchanged, while the Company recognized a reduction of $19,000 for the nine months ended September 30, 2019. Real Estate Held for Sale . Real estate held for sale is reviewed and evaluated on at least an annual basis for additional impairment and adjusted accordingly. The fair value of real estate held for sale is classified as Level 3 in the fair value hierarchy. At both September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurement of real estate held for sale included a discount from appraised value (including estimated costs to sell the property) of 10%. The Company recognized charges to write down real estate held for sale of $37,000 during both the three and nine months ended September 30, 2020. The Company recognized charges to write down real estate held for sale of $104,000 during both the three- and nine-month periods ended September 30, 2019. There have been no changes in the valuation techniques and related inputs used for assets measured at fair value on a recurring and nonrecurring basis during the three and nine months ended September 30, 2020 and 2019. There were no transfers into or out of the Company’s Level 3 financial assets for the three- and nine-month periods ended September 30, 2020 and 2019. GAAP requires disclosure of the fair value of financial assets and financial liabilities, whether or not recognized in the balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair values of the Company’s financial instruments are as follows: Carrying Fair Value Measurements Using Value Level 1 Level 2 Level 3 (In thousands) September 30, 2020 Financial assets: Cash and cash equivalents $ 15,464 $ 15,464 $ — $ — Securities available for sale 79,712 — 79,712 — Securities held to maturity 32 — 32 — Loans, net 115,267 — — 120,548 FHLB stock 778 N/A N/A N/A Accrued interest receivable 847 — 847 — Financial liabilities: Deposits 158,508 — — 159,015 Advance from FHLB 10,000 — 10,477 — Accrued interest payable 9 — 9 — December 31, 2019 Financial assets: Cash and cash equivalents $ 18,817 $ 18,817 $ — $ — Securities available for sale 58,417 — 58,417 — Securities held to maturity 42 — 42 — Loans, net 123,272 — — 126,187 FHLB stock 778 N/A N/A N/A Accrued interest receivable 865 — 865 — Financial liabilities: Deposits 146,969 — — 146,831 Advance from FHLB 10,000 — 10,080 — Accrued interest payable 7 — 7 — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 9. Revenue from Contracts with Customers Substantially all of the Company’s revenue from contracts with customers in the scope of FASB ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income and other income within the scope of FASB ASC 606 for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Service charges on deposit accounts $ 45 $ 86 $ 127 $ 253 ATM transaction and point-of-sale interchange fees 110 102 312 289 Other income 29 8 59 24 Revenue from contracts with customers 184 196 498 566 Net gains on investments — — 104 Increase in cash surrender value of life insurance 17 18 51 54 Other income 1 1 4 4 Other noninterest income 18 19 159 65 Total noninterest income $ 202 $ 215 $ 657 $ 631 A description of the Company’s revenue streams accounted for under FASB ASC 606 follows: Service Charges on Deposit Accounts : The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as stop payment charges and statement rendering, are recognized at the time the transaction is executed as that is the time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. ATM Transaction and Point-of-Sale Interchange Fees : The Company earns ATM usage fees and interchange fees from debit cardholder transactions conducted through a payment network. ATM fees are recognized at the point in time the transaction occurs. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Other Income : Other income from contracts with customers includes safe deposit box fees, check cashing and cashier’s check fees, and wire transfer fees. This revenue is recognized at the time the transaction is executed or over the period the Company satisfies the performance obligation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 10 . Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company: In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU requires lessees to recognize on the balance sheet the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. For public entities the amendments in the ASU became effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, the original effective date of the guidance was for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. In November 2019, the FASB issued ASU 2019-10 which delayed the effective date of ASU 2016-02 for nonpublic entities until fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application of the amendments in the ASU is permitted. In June 2020, the FASB issued ASU 2020-05 which delayed the effective date of ASU 2016-02 for nonpublic entities until fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early application of the amendments in the ASU continues to be permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements . This ASU amended the new leases standard to give entities another option for transition and to provide lessors with a practical expedient. The transition option allows entities to not apply the new leases standard in the comparative periods they present in their financial statements in the year of adoption. The practical expedient provides lessors with an option to not separate non-lease components from the associated lease components when certain criteria are met and requires them to account for the combined component in accordance with the new revenue standard if the associated non-lease components are the predominant components. The amendments have the same effective date as ASU 2016-02. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842), Codification Improvements . This ASU amended the new leases standard to reinstate the exception in Leases (Topic 842) for lessors that are not manufacturers or dealers in regards to determining the fair value of the underlying assets. Specifically, those lessors will use their cost, reflecting any volume or trade discounts that may apply, as the fair value of the underlying asset unless a significant lapse of time occurs between the acquisition of the underlying asset and lease commencement, in which case, those lessors will be required to apply the definition of fair value (exit price) in Fair Value Measurements and Disclosures (Topic 820) . In addition, this ASU amended the new leases standard to clarify the presentation on the statement of cash flows principal payments received under leases for depository and lending institutions for Sales-Type and Direct Financing Leases. Specifically for these entities and leases, all principal payments received under leases will be presented within investing activities on the statement of cash flows. Finally, this ASU amended the new leases standard to explicitly provide an exception to paragraph 250-10-50-3 interim disclosure requirements for an entity electing the transition method of implementation. The amendments have the same effective date as ASU 2016-02. The effect of the adoption of these ASUs will depend on leases at the time of adoption. Once adopted, the Company expects to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices under noncancelable operating lease agreements; however, based on current leases, the adoption is expected to increase our consolidated balance sheets by less than 5% and not to have a material impact on our regulatory capital ratios. The FASB originally issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) as amended by ASU 2018-19, ASU 2019-04 and ASU 2019-05, in June 2016. This ASU, commonly referred to as the current expected credit loss methodology (“CECL”), replaces the incurred loss methodology for recognizing credit losses under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. ASU 2019-05, issued in April 2019, further provides that entities that have certain financial instruments measured at amortized cost that have credit losses, to irrevocably elect the fair value option in Subtopic 825-10, upon adoption of Topic 326. The fair value option applies to available-for-sale debt securities. In November 2019, the FASB issued ASU No. 2019-10 which delayed the effective date of ASU 2016-13 for smaller reporting companies (as defined by the SEC) and other non-SEC reporting entities to fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is a smaller reporting company as defined by the SEC. Once adopted, the Company expects its allowance for loan losses to increase through a one-time adjustment to retained earnings; however, until its evaluation is complete, the magnitude of the increase will be unknown. In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for certain callable debt securities held at a premium. The standard will take effect for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For nonpublic business entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. In October 2020, the FASB issued ASU No. 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs. The ASU amends the guidance under Subtopic 310-20 to provide that for each reporting period, to the extent that the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess (that is, the premium) shall be amortized to the next call date unless the premium of the individual callable debt security is amortized based on consideration of estimated prepayments. The standard will take effect for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted for public entities. For nonpublic business entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early application is permitted for nonpublic business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments of ASU No. 2020-08 do not change the effective dates for ASU No. 2017-08. The adoption of these ASUs is not expected to have a material impact on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU amends the accounting for shared-based payments awards to nonemployees to align with the accounting for employee awards. Under the new guidance, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. For public entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic business entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . This ASU removes, modifies and adds certain disclosure requirements for fair value measurements. Among other changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements, but will be required to disclose the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements held at the end of the reporting period. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the ASU. The adoption of the ASU effective January 1, 2020 did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes . The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public entities this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For nonpublic entities this ASU is effective for fiscal years beginning after December 31, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
Presentation of Interim Infor_2
Presentation of Interim Information (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Presentation of Interim Information | |
Presentation of Interim Information | Presentation of Interim Information Mid-Southern Bancorp, Inc., (the "Company") was incorporated in January 2018 and became the holding company for Mid-Southern Savings Bank, FSB (the "Bank"), on July 11, 2018, upon the completion of the Bank’s conversion from the mutual holding company ownership structure and the Company’s related public stock offering. Please see Note 2 – Conversion and Stock Issuance for more information. The accompanying unaudited consolidated financial statements and notes have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10‑K filed with the SEC on March 26, 2020 ("2019 Form 10‑K"). In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary for a fair presentation of the unaudited interim consolidated financial statements in accordance with GAAP. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited consolidated financial statements. Interim results are not necessarily indicative of results for a full year or any other period. The unaudited consolidated financial statements include the accounts of the Company and its subsidiary. All material intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. The reclassifications had no effect on net income or stockholders’ equity. In preparing the unaudited consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the allowance for loan losses, the valuation of foreclosed real estate and the underlying collateral of impaired loans, deferred tax assets, and the fair value of financial instruments. On April 5, 2012, the Jumpstart Our Business Startups Act ("JOBS Act") was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an "emerging growth company" we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our condensed consolidated financial statements may not be comparable to companies that comply with such new or revised accounting standards. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company: In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU requires lessees to recognize on the balance sheet the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. For public entities the amendments in the ASU became effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, the original effective date of the guidance was for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. In November 2019, the FASB issued ASU 2019-10 which delayed the effective date of ASU 2016-02 for nonpublic entities until fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application of the amendments in the ASU is permitted. In June 2020, the FASB issued ASU 2020-05 which delayed the effective date of ASU 2016-02 for nonpublic entities until fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early application of the amendments in the ASU continues to be permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements . This ASU amended the new leases standard to give entities another option for transition and to provide lessors with a practical expedient. The transition option allows entities to not apply the new leases standard in the comparative periods they present in their financial statements in the year of adoption. The practical expedient provides lessors with an option to not separate non-lease components from the associated lease components when certain criteria are met and requires them to account for the combined component in accordance with the new revenue standard if the associated non-lease components are the predominant components. The amendments have the same effective date as ASU 2016-02. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842), Codification Improvements . This ASU amended the new leases standard to reinstate the exception in Leases (Topic 842) for lessors that are not manufacturers or dealers in regards to determining the fair value of the underlying assets. Specifically, those lessors will use their cost, reflecting any volume or trade discounts that may apply, as the fair value of the underlying asset unless a significant lapse of time occurs between the acquisition of the underlying asset and lease commencement, in which case, those lessors will be required to apply the definition of fair value (exit price) in Fair Value Measurements and Disclosures (Topic 820) . In addition, this ASU amended the new leases standard to clarify the presentation on the statement of cash flows principal payments received under leases for depository and lending institutions for Sales-Type and Direct Financing Leases. Specifically for these entities and leases, all principal payments received under leases will be presented within investing activities on the statement of cash flows. Finally, this ASU amended the new leases standard to explicitly provide an exception to paragraph 250-10-50-3 interim disclosure requirements for an entity electing the transition method of implementation. The amendments have the same effective date as ASU 2016-02. The effect of the adoption of these ASUs will depend on leases at the time of adoption. Once adopted, the Company expects to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices under noncancelable operating lease agreements; however, based on current leases, the adoption is expected to increase our consolidated balance sheets by less than 5% and not to have a material impact on our regulatory capital ratios. The FASB originally issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) as amended by ASU 2018-19, ASU 2019-04 and ASU 2019-05, in June 2016. This ASU, commonly referred to as the current expected credit loss methodology (“CECL”), replaces the incurred loss methodology for recognizing credit losses under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. ASU 2019-05, issued in April 2019, further provides that entities that have certain financial instruments measured at amortized cost that have credit losses, to irrevocably elect the fair value option in Subtopic 825-10, upon adoption of Topic 326. The fair value option applies to available-for-sale debt securities. In November 2019, the FASB issued ASU No. 2019-10 which delayed the effective date of ASU 2016-13 for smaller reporting companies (as defined by the SEC) and other non-SEC reporting entities to fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is a smaller reporting company as defined by the SEC. Once adopted, the Company expects its allowance for loan losses to increase through a one-time adjustment to retained earnings; however, until its evaluation is complete, the magnitude of the increase will be unknown. In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for certain callable debt securities held at a premium. The standard will take effect for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For nonpublic business entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. In October 2020, the FASB issued ASU No. 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs. The ASU amends the guidance under Subtopic 310-20 to provide that for each reporting period, to the extent that the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess (that is, the premium) shall be amortized to the next call date unless the premium of the individual callable debt security is amortized based on consideration of estimated prepayments. The standard will take effect for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted for public entities. For nonpublic business entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early application is permitted for nonpublic business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments of ASU No. 2020-08 do not change the effective dates for ASU No. 2017-08. The adoption of these ASUs is not expected to have a material impact on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU amends the accounting for shared-based payments awards to nonemployees to align with the accounting for employee awards. Under the new guidance, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. For public entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic business entities the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . This ASU removes, modifies and adds certain disclosure requirements for fair value measurements. Among other changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements, but will be required to disclose the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements held at the end of the reporting period. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the ASU. The adoption of the ASU effective January 1, 2020 did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes . The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public entities this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For nonpublic entities this ASU is effective for fiscal years beginning after December 31, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investment Securities | |
Schedule of fair values of debt securities available-for-sale or held-to-maturity | Gross Gross (In thousands) Amortized Unrealized Unrealized Fair September 30, 2020 Cost Gains Losses Value Securities available for sale: Mortgage-backed securities: Agency MBS $ 7,250 $ 128 $ — $ 7,378 Agency CMO 16,068 228 42 16,254 23,318 356 42 23,632 Other debt securities: Municipal obligations 53,007 3,143 70 56,080 Total securities available for sale $ 76,325 $ 3,499 $ 112 $ 79,712 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 32 $ — $ — $ 32 Total securities held to maturity $ 32 $ — $ — $ 32 December 31, 2019 Securities available for sale: Mortgage-backed securities: Agency MBS $ 9,803 $ 3 $ 36 $ 9,770 Agency CMO 10,520 209 17 10,712 20,323 212 53 20,482 Other debt securities: Municipal obligations 36,390 1,649 104 37,935 Total securities available for sale $ 56,713 $ 1,861 $ 157 $ 58,417 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 42 $ — $ — $ 42 Total securities held to maturity $ 42 $ — $ — $ 42 |
Schedule of maturities of debt securities | Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due in one year or less $ — $ — $ — $ — Due after one year through five years 4,185 4,341 — — Due after five years through ten years 6,961 7,595 — — Due after ten years 41,861 44,144 — — 53,007 56,080 — — MBS and CMO 23,318 23,632 32 32 $ 76,325 $ 79,712 $ 32 $ 32 |
Schedule of fair value and related unrealized losses of temporarily impaired investment securities, aggregated by investment category | Number of Gross (Dollars in thousands) Investment Fair Unrealized September 30, 2020 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: Agency CMO 5 $ 7,975 $ 42 Municipal obligations 4 3,560 70 Total less than 12 months 9 11,535 112 Total securities available for sale 9 $ 11,535 $ 112 Information pertaining to investment securities available for sale with gross unrealized losses at December 31, 2019, aggregated by investment category and the length of time that individual investment securities have been in a continuous loss position, follows. Number of Gross (Dollars in thousands) Investment Fair Unrealized December 31, 2019 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: Agency MBS 3 $ 3,304 $ 9 Agency CMO 2 1,942 6 Municipal obligations 10 7,030 104 Total less than 12 months 15 12,276 119 Continuous loss position more than 12 months: Agency MBS 6 3,696 27 Agency CMO 1 1,089 11 Total more than 12 months 7 4,785 38 Total securities available for sale 22 $ 17,061 $ 157 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans and Allowance for Loan Losses | |
Schedule of loans | September 30, December 31, (In thousands) 2020 2019 Real estate mortgage loans: One-to-four family residential $ 67,468 $ 71,606 Multi-family residential 8,613 9,260 Residential construction 689 367 Commercial real estate 29,232 32,311 Commercial real estate construction 3,244 2,867 Commercial business loans 6,162 6,456 Consumer loans 1,445 1,875 Total loans 116,853 124,742 Deferred loan origination fees and costs, net (4) 28 Allowance for loan losses (1,582) (1,498) Loans, net $ 115,267 $ 123,272 |
Schedule of components of Company's recorded investment in loans | The following table provides the components of the Company’s recorded investment in loans at September 30, 2020: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 67,468 $ 8,613 $ 3,933 $ 29,232 $ 6,162 $ 1,445 $ 116,853 Accrued interest receivable 208 32 10 117 16 5 388 Net deferred loan fees/costs 5 (6) (32) (12) 6 35 (4) Recorded investment in loans $ 67,681 $ 8,639 $ 3,911 $ 29,337 $ 6,184 $ 1,485 $ 117,237 Recorded Investment in Loans as Evaluated for Impairments: Individually evaluated for impairment $ 1,497 $ — $ — $ 610 $ 396 $ — $ 2,503 Collectively evaluated for impairment 66,184 8,639 3,911 28,727 5,788 1,485 114,734 Ending balance $ 67,681 $ 8,639 $ 3,911 $ 29,337 $ 6,184 $ 1,485 $ 117,237 The following table provides the components of the Company’s recorded investment in loans at December 31, 2019: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 71,606 $ 9,260 $ 3,234 $ 32,311 $ 6,456 $ 1,875 $ 124,742 Accrued interest receivable 254 25 11 88 26 6 410 Net deferred loan fees/costs 23 (11) (36) (6) 10 48 28 Recorded investment in loans $ 71,883 $ 9,274 $ 3,209 $ 32,393 $ 6,492 $ 1,929 $ 125,180 Recorded Investment in Loans as Evaluated for Impairments: Individually evaluated for impairment $ 1,431 $ — $ — $ 600 $ 412 $ — $ 2,443 Collectively evaluated for impairment 70,452 9,274 3,209 31,793 6,080 1,929 122,737 Ending balance $ 71,883 $ 9,274 $ 3,209 $ 32,393 $ 6,492 $ 1,929 $ 125,180 |
Schedule of analysis of allowance for loan losses | An analysis of the allowance for loan losses as of September 30, 2020 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ 24 $ — $ — $ 25 $ 28 $ — $ 77 Collectively evaluated for impairment 968 101 53 304 55 24 1,505 Ending balance $ 992 $ 101 $ 53 $ 329 $ 83 $ 24 $ 1,582 An analysis of the allowance for loan losses as of December 31, 2019 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ 25 $ — $ — $ 19 $ 34 $ — $ 78 Collectively evaluated for impairment 930 83 44 270 68 25 1,420 Ending balance $ 955 $ 83 $ 44 $ 289 $ 102 $ 25 $ 1,498 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2020 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 984 $ 94 $ 50 $ 320 $ 83 $ 25 $ 1,556 Provisions 9 7 3 9 — 2 30 Charge-offs (2) — — — — (4) (6) Recoveries 1 — — — — 1 2 Ending balance $ 992 $ 101 $ 53 $ 329 $ 83 $ 24 $ 1,582 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2020 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 955 $ 83 $ 44 $ 289 $ 102 $ 25 $ 1,498 Provisions 48 18 9 40 (19) 6 102 Charge-offs (14) — — — — (14) (28) Recoveries 3 — — — — 7 10 Ending balance $ 992 $ 101 $ 53 $ 329 $ 83 $ 24 $ 1,582 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2019 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 952 $ 86 $ 30 $ 296 $ 98 $ 26 $ 1,488 Provisions (15) 1 1 8 1 10 6 Charge-offs — — — — — (6) (6) Recoveries — — — — — — — Ending balance $ 937 $ 87 $ 31 $ 304 $ 99 $ 30 $ 1,488 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2019 is as follows: One-to-Four Family Multi-Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 1,012 $ 59 $ 48 $ 259 $ 98 $ 28 $ 1,504 Provisions (57) 28 (17) 45 1 6 6 Charge-offs (32) — — — — (12) (44) Recoveries 14 — — — — 8 22 Ending balance $ 937 $ 87 $ 31 $ 304 $ 99 $ 30 $ 1,488 |
Schedule of impaired loans | The following table summarizes the Company’s impaired loans as of September 30, 2020 and for the three and nine months ended September 30, 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the three- and nine-month periods ended September 30, 2020. Three Months Ended Nine Months Ended At September 30, 2020 September 30, 2020 September 30, 2020 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 1,244 $ 1,338 $ — $ 1,255 $ 1 $ 1,188 $ 4 Commercial real estate 273 259 — 281 — 262 — Commercial business 21 22 — 22 — 27 1 $ 1,538 $ 1,619 $ — $ 1,558 $ 1 $ 1,477 $ 5 Loans with an allowance recorded: One-to-four family residential $ 253 $ 279 $ 24 $ 253 $ 2 $ 256 $ 5 Commercial real estate 337 348 25 328 5 345 13 Commercial business 375 394 28 380 5 378 15 $ 965 $ 1,021 $ 77 $ 961 $ 12 $ 979 $ 33 Total: One-to-four family residential $ 1,497 $ 1,617 $ 24 $ 1,508 $ 3 $ 1,444 $ 9 Commercial real estate 610 607 25 609 5 607 13 Commercial business 396 416 28 402 5 405 16 $ 2,503 $ 2,640 $ 77 $ 2,519 $ 13 $ 2,456 $ 38 The following table summarizes the Company’s impaired loans for the three- and nine-month periods ended September 30, 2019. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the three- and nine-month periods ended September 30, 2019. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 1,258 $ 2 $ 1,341 $ 18 Commercial real estate 350 1 368 3 Commercial business 38 1 43 2 Consumer 1 — 1 — $ 1,647 $ 4 $ 1,753 $ 23 Loans with an allowance recorded: One-to-four family residential $ 261 $ 3 $ 358 $ 8 Commercial real estate 296 4 325 13 Commercial business 395 6 405 18 Consumer — — — — $ 952 $ 13 $ 1,088 $ 39 Total: One-to-four family residential $ 1,519 $ 5 $ 1,699 $ 26 Commercial real estate 646 5 693 16 Commercial business 433 7 448 20 Consumer 1 — 1 — $ 2,599 $ 17 $ 2,841 $ 62 The following table summarizes the Company’s impaired loans as of December 31, 2019: At December 31, 2019 Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 1,172 $ 1,457 $ — Commercial real estate 235 389 — Commercial business 32 32 — $ 1,439 $ 1,878 $ — Loans with an allowance recorded: One-to-four family residential $ 259 $ 284 $ 25 Commercial real estate 365 364 19 Commercial business 380 426 34 $ 1,004 $ 1,074 $ 78 Total: One-to-four family residential $ 1,431 $ 1,741 $ 25 Commercial real estate 600 753 19 Commercial business 412 458 34 $ 2,443 $ 2,952 $ 78 |
Schedule of recorded investment in nonperforming loans | At September 30, 2020 At December 31, 2019 Loans 90+ Loans 90+ Days Total Days Total Nonaccrual Past Due Nonperforming Nonaccrual Past Due Nonperforming Loans Still Accruing Loans Loans Still Accruing Loans (In thousands) One-to-four family residential $ 1,166 $ — $ 1,166 $ 947 $ — $ 947 Commercial real estate 273 — 273 235 — 235 Total $ 1,439 $ — $ 1,439 $ 1,182 $ — $ 1,182 |
Schedule of aging of the recorded investment in past due loans | Over 30‑59 Days 60‑89 Days 90 Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) September 30, 2020 One-to-four family residential $ 624 $ 409 $ 65 $ 1,098 $ 66,583 $ 67,681 Multi-family residential — — — — 8,639 8,639 Construction — — — — 3,911 3,911 Commercial real estate 2 38 — 40 29,297 29,337 Commercial business — — — — 6,184 6,184 Consumer 50 — — 50 1,435 1,485 Total $ 676 $ 447 $ 65 $ 1,188 $ 116,049 $ 117,237 December 31, 2019 One-to-four family residential $ 1,425 $ 575 $ 238 $ 2,238 $ 69,645 $ 71,883 Multi-family residential — — — — 9,274 9,274 Construction 152 — — 152 3,057 3,209 Commercial real estate 477 134 — 611 31,782 32,393 Commercial business — — — — 6,492 6,492 Consumer 7 — — 7 1,922 1,929 Total $ 2,061 $ 709 $ 238 $ 3,008 $ 122,172 $ 125,180 |
Schedule of risk category of loans by recorded investment | One-to- Multi- Four Family Family Commercial Commercial Residential Residential Construction Real Estate Business Consumer Total (In thousands) September 30, 2020 Pass $ 66,290 $ 8,639 $ 3,679 $ 28,702 $ 5,788 $ 1,485 $ 114,583 Special mention — — 232 215 — — 447 Substandard 1,391 — — 420 396 — 2,207 Doubtful — — — — — — — Loss — — — — — — — Total $ 67,681 $ 8,639 $ 3,911 $ 29,337 $ 6,184 $ 1,485 $ 117,237 December 31, 2019 Pass $ 70,611 $ 9,274 $ 3,209 $ 31,949 $ 6,080 $ 1,929 $ 123,052 Special mention — — — — — — — Substandard 1,272 — — 444 412 — 2,128 Doubtful — — — — — — — Loss — — — — — — — Total $ 71,883 $ 9,274 $ 3,209 $ 32,393 $ 6,492 $ 1,929 $ 125,180 |
Schedule of TDRs by accrual status | September 30, 2020 December 31, 2019 Related Related Allowance for Allowance for Accruing Nonaccrual Total Loan Losses Accruing Nonaccrual Total Loan Losses (In thousands) One-to-four family residential $ 331 $ 230 $ 561 $ 24 $ 484 $ — 484 $ 25 Commercial real estate 337 178 515 25 365 137 502 19 Commercial business 396 — 396 28 412 — 412 34 Total $ 1,064 $ 408 $ 1,472 $ 77 $ 1,261 $ 137 $ 1,398 $ 78 |
Schedule of troubled debt restructurings | The following table summarizes information in regards to TDRs that were restructured during the three and nine months ended September 30, 2020. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Pre-Modification Post-Modification Pre-Modification Post-Modification Number of Outstanding Outstanding Number of Outstanding Outstanding Contracts Balance Balance Contracts Balance Balance (Dollars in thousands) One-to-four family residential 2 $ 81 $ 81 5 $ 230 $ 230 Commercial real estate — — — 1 51 51 Total 2 $ 81 $ 81 6 $ 281 $ 281 The following table summarizes information in regard to TDRs that were restructured during the nine months ended September 30, 2019: Nine Months Ended September 30, 2019 Pre-Modification Post-Modification Number of Outstanding Outstanding Contracts Balance Balance (Dollars in thousands) Commercial real estate 1 $ 155 $ 155 Total 1 $ 155 $ 155 |
Supplemental Disclosure for E_2
Supplemental Disclosure for Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Disclosure for Earnings Per Share | |
Schedule of supplemental disclosure for earnings per share | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands, except per share data) Basic Earnings: Net income $ 264 $ 105 $ 991 $ 764 Shares: Weighted average common shares outstanding 3,106,371 3,364,526 3,237,533 3,366,472 Net income per common share, basic $ 0.09 $ 0.03 $ 0.31 $ 0.23 Diluted Earnings: Net income $ 264 $ 105 $ 991 $ 764 Shares: Weighted average common shares outstanding 3,106,371 3,364,526 3,237,533 3,366,472 Add: Dilutive effect of stock options 1,142 1,298 1,140 1,288 Add: Dilutive effect of restricted stock 2,803 101 984 121 Weighted average common shares outstanding, as adjusted 3,110,316 3,365,925 3,239,657 3,367,881 Net income per common share, Diluted $ 0.09 $ 0.03 $ 0.31 $ 0.23 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-based Compensation Plans | |
Schedule of stock option activity | Weighted Average Number Weighted Remaining Aggregate of Average Exercise Contractual Intrinsic Shares Price Term Value Outstanding at beginning of year 93,488 $ 13.17 Granted — — Exercised — — Forfeited or expired — — Outstanding at end of period 93,488 $ 13.17 $ 15,000 Vested and expected to vest 93,488 $ 13.17 $ 15,000 Exercisable at end of period 23,429 $ 12.65 $ 15,000 |
Schedule of nonvested restricted shares activity | Weighted Number Average of Grant-Date Shares Fair Value Nonvested at beginning of year 22,553 $ 13.32 Granted — — Vested (47) 5.00 Forfeited — — Nonvested at end of period 22,506 $ 13.34 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements | |
Schedule of assets measured at fair value on a recurring and nonrecurring basis | Carrying Value Level 1 Level 2 Level 3 Total (In thousands) September 30, 2020 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 7,378 $ — $ 7,378 Agency CMO — 16,254 — 16,254 Municipal obligations — 56,080 — 56,080 Total securities available for sale $ — $ 79,712 $ — $ 79,712 Assets Measured on a Nonrecurring Basis Impaired loans: One-to-four family residential $ — $ — $ 1,473 $ 1,473 Commercial real estate — — 585 585 Commercial business — — 368 368 Total impaired loans $ — $ — $ 2,426 $ 2,426 Real estate held for sale $ — $ — $ 99 $ 99 December 31, 2019 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 9,770 $ — $ 9,770 Agency CMO — 10,712 — 10,712 Municipal obligations — 37,935 — 37,935 Total securities available for sale $ — $ 58,417 $ — $ 58,417 Assets Measured on a Nonrecurring Basis Impaired loans: One-to-four family residential $ — $ — $ 1,406 $ 1,406 Commercial real estate — — 581 581 Commercial business — — 378 378 Total impaired loans $ — $ — $ 2,365 $ 2,365 Real estate held for sale $ — $ — $ 135 $ 135 |
Schedule of estimated fair values of financial instruments | Carrying Fair Value Measurements Using Value Level 1 Level 2 Level 3 (In thousands) September 30, 2020 Financial assets: Cash and cash equivalents $ 15,464 $ 15,464 $ — $ — Securities available for sale 79,712 — 79,712 — Securities held to maturity 32 — 32 — Loans, net 115,267 — — 120,548 FHLB stock 778 N/A N/A N/A Accrued interest receivable 847 — 847 — Financial liabilities: Deposits 158,508 — — 159,015 Advance from FHLB 10,000 — 10,477 — Accrued interest payable 9 — 9 — December 31, 2019 Financial assets: Cash and cash equivalents $ 18,817 $ 18,817 $ — $ — Securities available for sale 58,417 — 58,417 — Securities held to maturity 42 — 42 — Loans, net 123,272 — — 126,187 FHLB stock 778 N/A N/A N/A Accrued interest receivable 865 — 865 — Financial liabilities: Deposits 146,969 — — 146,831 Advance from FHLB 10,000 — 10,080 — Accrued interest payable 7 — 7 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contracts with Customers | |
Summary of revenue from contracts with customers | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Service charges on deposit accounts $ 45 $ 86 $ 127 $ 253 ATM transaction and point-of-sale interchange fees 110 102 312 289 Other income 29 8 59 24 Revenue from contracts with customers 184 196 498 566 Net gains on investments — — 104 Increase in cash surrender value of life insurance 17 18 51 54 Other income 1 1 4 4 Other noninterest income 18 19 159 65 Total noninterest income $ 202 $ 215 $ 657 $ 631 |
Conversion and Stock Issuance -
Conversion and Stock Issuance - Additional Information (Details) - Conversion $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Conversion And Stock Issuance [Line Items] | |
Plan of conversion from mutual to stock form of ownership, number of shares issued | shares | 2,559,871 |
Expenses related to stock offering | $ | $ 1.2 |
Amount of net proceeds in plan of conversion | $ | 24.4 |
Contribution to Bank in plan of conversion | $ | $ 10.2 |
Number of shares exchanged to public stockholders | shares | 2.3462 |
Number of shares outstanding | shares | 3,565,430 |
Employee stock ownership plan ("ESOP") | |
Conversion And Stock Issuance [Line Items] | |
Plan of conversion from mutual to stock form of ownership, number of shares issued | shares | 204,789 |
Purchase price per share for shares issued in plan of conversion | $ / shares | $ 10 |
Proceeds to fund ESOP | $ | $ 2 |
Investment Securities - Availab
Investment Securities - Available of sale (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available for sale: | ||
Amortized Cost | $ 76,325 | $ 56,713 |
Gross Unrealized Gains | 3,499 | 1,861 |
Gross Unrealized Losses | 112 | 157 |
Fair Value | 79,712 | 58,417 |
Agency MBS | ||
Securities available for sale: | ||
Amortized Cost | 7,250 | 9,803 |
Gross Unrealized Gains | 128 | 3 |
Gross Unrealized Losses | 36 | |
Fair Value | 7,378 | 9,770 |
Agency CMO | ||
Securities available for sale: | ||
Amortized Cost | 16,068 | 10,520 |
Gross Unrealized Gains | 228 | 209 |
Gross Unrealized Losses | 42 | 17 |
Fair Value | 16,254 | 10,712 |
Mortgage-backed securities | ||
Securities available for sale: | ||
Amortized Cost | 23,318 | 20,323 |
Gross Unrealized Gains | 356 | 212 |
Gross Unrealized Losses | 42 | 53 |
Fair Value | 23,632 | 20,482 |
Municipal obligations | ||
Securities available for sale: | ||
Amortized Cost | 53,007 | 36,390 |
Gross Unrealized Gains | 3,143 | 1,649 |
Gross Unrealized Losses | 70 | 104 |
Fair Value | $ 56,080 | $ 37,935 |
Investment Securities - Held to
Investment Securities - Held to maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities held to maturity: | ||
Amortized Cost | $ 32 | $ 42 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 32 | 42 |
Agency MBS | ||
Securities held to maturity: | ||
Amortized Cost | 32 | 42 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 32 | $ 42 |
Investment Securities - Amortiz
Investment Securities - Amortized cost and fair value of debt securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available for Sale Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 0 | |
Due after one year through five years, Amortized Cost | 4,185 | |
Due after five years through ten years, Amortized Cost | 6,961 | |
Due after ten years, Amortized Cost | 41,861 | |
Available for Sale, Amortized Cost | 53,007 | |
Amortized Cost | 76,325 | $ 56,713 |
Available for Sale Fair Value | ||
Due in one year or less, Fair Value | 0 | |
Due after one year through five years, Fair Value | 4,341 | |
Due after five years through ten years, Fair Value | 7,595 | |
Due after ten years, Fair Value | 44,144 | |
Available for Sale, Fair Value | 56,080 | |
Fair Value | 79,712 | 58,417 |
Mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Amortized Cost | 23,318 | 20,323 |
Available for Sale Fair Value | ||
Fair Value | $ 23,632 | $ 20,482 |
Investment Securities - Contrac
Investment Securities - Contractual maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Held to Maturity, Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 0 | |
Amortized Cost | 32 | $ 42 |
Held to Maturity, Fair Value | ||
Due in one year or less, Fair Value | 0 | |
Fair Value | 32 | $ 42 |
Mortgage-backed securities | ||
Held to Maturity, Amortized Cost | ||
Amortized Cost | 32 | |
Held to Maturity, Fair Value | ||
Fair Value | $ 32 |
Investment Securities - Investm
Investment Securities - Investment securities available for sale with gross unrealized loss (Details) $ in Thousands | Sep. 30, 2020USD ($)position | Dec. 31, 2019USD ($)position |
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 9 | 15 |
Continuous loss position less than 12 months: Fair Value | $ 11,535 | $ 12,276 |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 112 | $ 119 |
Continuous loss position more than 12 months: Number of Investment Positions | position | 0 | 7 |
Continuous loss position more than 12 months: Fair Value | $ 4,785 | |
Continuous loss position more than 12 months: Gross Unrealized Losses | $ 38 | |
Total securities available for sale: Number of Investment Positions | position | 9 | 22 |
Total securities available for sale: Fair Value | $ 11,535 | $ 17,061 |
Total securities available for sale: Gross Unrealized Losses | $ 112 | $ 157 |
Agency MBS | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 3 | |
Continuous loss position less than 12 months: Fair Value | $ 3,304 | |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 9 | |
Continuous loss position more than 12 months: Number of Investment Positions | position | 6 | |
Continuous loss position more than 12 months: Fair Value | $ 3,696 | |
Continuous loss position more than 12 months: Gross Unrealized Losses | $ 27 | |
Agency CMO | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | 5 | 2 |
Continuous loss position less than 12 months: Fair Value | $ 7,975 | $ 1,942 |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 42 | $ 6 |
Continuous loss position more than 12 months: Number of Investment Positions | position | 1 | |
Continuous loss position more than 12 months: Fair Value | $ 1,089 | |
Continuous loss position more than 12 months: Gross Unrealized Losses | $ 11 | |
Municipal obligations | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 4 | 10 |
Continuous loss position less than 12 months: Fair Value | $ 3,560 | $ 7,030 |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 70 | $ 104 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Percentage of deprecation in loss position for available-for-sale debt securities from amortized cost basis | 0.96% | 0.96% | ||
Realized gross gain loss | $ 0 | $ 0 | ||
Municipal obligations | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Realized gross gains | $ 7,000 | |||
Realized gross loss | $ 7,000 | |||
Mortgage-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Realized gross gains | $ 111,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 116,853 | $ 124,742 | ||||
Deferred loan origination fees and costs, net | (4) | 28 | ||||
Allowance for loan losses | (1,582) | $ (1,556) | (1,498) | $ (1,488) | $ (1,488) | $ (1,504) |
Loans, net | 115,267 | 123,272 | ||||
Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 3,933 | 3,234 | ||||
Deferred loan origination fees and costs, net | (32) | (36) | ||||
Residential real estate | One-to-four family residential | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 67,468 | 71,606 | ||||
Deferred loan origination fees and costs, net | 5 | 23 | ||||
Allowance for loan losses | (992) | (984) | (955) | (937) | (952) | (1,012) |
Residential real estate | Multi-family residential | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 8,613 | 9,260 | ||||
Deferred loan origination fees and costs, net | (6) | (11) | ||||
Allowance for loan losses | (101) | (94) | (83) | (87) | (86) | (59) |
Residential real estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 689 | 367 | ||||
Commercial Real Estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 29,232 | 32,311 | ||||
Deferred loan origination fees and costs, net | (12) | (6) | ||||
Allowance for loan losses | (329) | (320) | (289) | (304) | (296) | (259) |
Commercial Real Estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 3,244 | 2,867 | ||||
Allowance for loan losses | (53) | (50) | (44) | (31) | (30) | (48) |
Commercial business | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 6,162 | 6,456 | ||||
Deferred loan origination fees and costs, net | 6 | 10 | ||||
Allowance for loan losses | (83) | (83) | (102) | (99) | (98) | (98) |
Consumer loans | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 1,445 | 1,875 | ||||
Deferred loan origination fees and costs, net | 35 | 48 | ||||
Allowance for loan losses | $ (24) | $ (25) | $ (25) | $ (30) | $ (26) | $ (28) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Components of Company’s recorded investment in loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Recorded Investment in Loans: | ||
Principal loan balance | $ 116,853 | $ 124,742 |
Accrued interest receivable | 388 | 410 |
Net deferred loan fees/costs | (4) | 28 |
Recorded investment in loans | 117,237 | 125,180 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 2,503 | 2,443 |
Collectively evaluated for impairment | 114,734 | 122,737 |
Total Loans | 117,237 | 125,180 |
Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 3,933 | 3,234 |
Accrued interest receivable | 10 | 11 |
Net deferred loan fees/costs | (32) | (36) |
Recorded investment in loans | 3,911 | 3,209 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,911 | 3,209 |
Total Loans | 3,911 | 3,209 |
Residential real estate | One-to-four family residential | ||
Recorded Investment in Loans: | ||
Principal loan balance | 67,468 | 71,606 |
Accrued interest receivable | 208 | 254 |
Net deferred loan fees/costs | 5 | 23 |
Recorded investment in loans | 67,681 | 71,883 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,497 | 1,431 |
Collectively evaluated for impairment | 66,184 | 70,452 |
Total Loans | 67,681 | 71,883 |
Residential real estate | Multi-family residential | ||
Recorded Investment in Loans: | ||
Principal loan balance | 8,613 | 9,260 |
Accrued interest receivable | 32 | 25 |
Net deferred loan fees/costs | (6) | (11) |
Recorded investment in loans | 8,639 | 9,274 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 8,639 | 9,274 |
Total Loans | 8,639 | 9,274 |
Residential real estate | Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 689 | 367 |
Commercial Real Estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 29,232 | 32,311 |
Accrued interest receivable | 117 | 88 |
Net deferred loan fees/costs | (12) | (6) |
Recorded investment in loans | 29,337 | 32,393 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 610 | 600 |
Collectively evaluated for impairment | 28,727 | 31,793 |
Total Loans | 29,337 | 32,393 |
Commercial Real Estate | Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 3,244 | 2,867 |
Recorded investment in loans | 3,911 | 3,209 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Total Loans | 3,911 | 3,209 |
Commercial business | ||
Recorded Investment in Loans: | ||
Principal loan balance | 6,162 | 6,456 |
Accrued interest receivable | 16 | 26 |
Net deferred loan fees/costs | 6 | 10 |
Recorded investment in loans | 6,184 | 6,492 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 396 | 412 |
Collectively evaluated for impairment | 5,788 | 6,080 |
Total Loans | 6,184 | 6,492 |
Consumer loans | ||
Recorded Investment in Loans: | ||
Principal loan balance | 1,445 | 1,875 |
Accrued interest receivable | 5 | 6 |
Net deferred loan fees/costs | 35 | 48 |
Recorded investment in loans | 1,485 | 1,929 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,485 | 1,929 |
Total Loans | $ 1,485 | $ 1,929 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Analysis of allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 77 | $ 78 | ||||
Collectively evaluated for impairment | 1,505 | 1,420 | ||||
Ending balance | 1,582 | $ 1,556 | 1,498 | $ 1,488 | $ 1,488 | $ 1,504 |
Residential real estate | One-to-four family residential | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 24 | 25 | ||||
Collectively evaluated for impairment | 968 | 930 | ||||
Ending balance | 992 | 984 | 955 | 937 | 952 | 1,012 |
Residential real estate | Multi-family residential | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 101 | 83 | ||||
Ending balance | 101 | 94 | 83 | 87 | 86 | 59 |
Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 25 | 19 | ||||
Collectively evaluated for impairment | 304 | 270 | ||||
Ending balance | 329 | 320 | 289 | 304 | 296 | 259 |
Commercial Real Estate | Construction | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 53 | 44 | ||||
Ending balance | 53 | 50 | 44 | 31 | 30 | 48 |
Commercial business | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 28 | 34 | ||||
Collectively evaluated for impairment | 55 | 68 | ||||
Ending balance | 83 | 83 | 102 | 99 | 98 | 98 |
Consumer loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 24 | 25 | ||||
Ending balance | $ 24 | $ 25 | $ 25 | $ 30 | $ 26 | $ 28 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Analysis of the changes in the allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Allowance for Loan Losses: | ||||
Beginning balance | $ 1,556 | $ 1,488 | $ 1,498 | $ 1,504 |
Provisions | 30 | 6 | 102 | 6 |
Charge-offs | (6) | (6) | (28) | (44) |
Recoveries | 2 | 0 | 10 | 22 |
Ending balance | 1,582 | 1,488 | 1,582 | 1,488 |
Residential real estate | One-to-four family residential | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 984 | 952 | 955 | 1,012 |
Provisions | 9 | (15) | 48 | (57) |
Charge-offs | (2) | 0 | (14) | (32) |
Recoveries | 1 | 0 | 3 | 14 |
Ending balance | 992 | 937 | 992 | 937 |
Residential real estate | Multi-family residential | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 94 | 86 | 83 | 59 |
Provisions | 7 | 1 | 18 | 28 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 101 | 87 | 101 | 87 |
Commercial Real Estate | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 320 | 296 | 289 | 259 |
Provisions | 9 | 8 | 40 | 45 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 329 | 304 | 329 | 304 |
Commercial Real Estate | Construction | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 50 | 30 | 44 | 48 |
Provisions | 3 | 1 | 9 | (17) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 53 | 31 | 53 | 31 |
Commercial business | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 83 | 98 | 102 | 98 |
Provisions | 0 | 1 | (19) | 1 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 83 | 99 | 83 | 99 |
Consumer loans | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 25 | 26 | 25 | 28 |
Provisions | 2 | 10 | 6 | 6 |
Charge-offs | (4) | (6) | (14) | (12) |
Recoveries | 1 | 0 | 7 | 8 |
Ending balance | $ 24 | $ 30 | $ 24 | $ 30 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired loans using the cash receipts method of accounting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Loans with no related allowance recorded: | |||||
Recorded Investment | $ 1,538 | $ 1,538 | $ 1,439 | ||
Unpaid Principal Balance | 1,619 | 1,619 | 1,878 | ||
Average Recorded Investment | 1,558 | $ 1,647 | 1,477 | $ 1,753 | |
Interest Income Recognized | 1 | 4 | 5 | 23 | |
Loans with an allowance recorded: | |||||
Recorded Investment | 965 | 965 | 1,004 | ||
Unpaid Principal Balance | 1,021 | 1,021 | 1,074 | ||
Related Allowance | 77 | 77 | 78 | ||
Average Recorded Investment | 961 | 952 | 979 | 1,088 | |
Interest Income Recognized | 12 | 13 | 33 | 39 | |
Total Recorded Investment | 2,503 | 2,503 | 2,443 | ||
Total Unpaid Principal Balance | 2,640 | 2,640 | 2,952 | ||
Related Allowance for Loan Losses | 77 | 77 | 78 | ||
Total Average Recorded Investment | 2,519 | 2,599 | 2,456 | 2,841 | |
Total Interest Income Recognized | 13 | 17 | 38 | 62 | |
Residential real estate | One-to-four family residential | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 1,244 | 1,244 | 1,172 | ||
Unpaid Principal Balance | 1,338 | 1,338 | 1,457 | ||
Average Recorded Investment | 1,255 | 1,258 | 1,188 | 1,341 | |
Interest Income Recognized | 1 | 2 | 4 | 18 | |
Loans with an allowance recorded: | |||||
Recorded Investment | 253 | 253 | 259 | ||
Unpaid Principal Balance | 279 | 279 | 284 | ||
Related Allowance | 24 | 24 | 25 | ||
Average Recorded Investment | 253 | 261 | 256 | 358 | |
Interest Income Recognized | 2 | 3 | 5 | 8 | |
Total Recorded Investment | 1,497 | 1,497 | 1,431 | ||
Total Unpaid Principal Balance | 1,617 | 1,617 | 1,741 | ||
Related Allowance for Loan Losses | 24 | 24 | 25 | ||
Total Average Recorded Investment | 1,508 | 1,519 | 1,444 | 1,699 | |
Total Interest Income Recognized | 3 | 5 | 9 | 26 | |
Commercial Real Estate | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 273 | 273 | 235 | ||
Unpaid Principal Balance | 259 | 259 | 389 | ||
Average Recorded Investment | 281 | 350 | 262 | 368 | |
Interest Income Recognized | 0 | 1 | 3 | ||
Loans with an allowance recorded: | |||||
Recorded Investment | 337 | 337 | 365 | ||
Unpaid Principal Balance | 348 | 348 | 364 | ||
Related Allowance | 25 | 25 | 19 | ||
Average Recorded Investment | 328 | 296 | 345 | 325 | |
Interest Income Recognized | 5 | 4 | 13 | 13 | |
Total Recorded Investment | 610 | 610 | 600 | ||
Total Unpaid Principal Balance | 607 | 607 | 753 | ||
Related Allowance for Loan Losses | 25 | 25 | 19 | ||
Total Average Recorded Investment | 609 | 646 | 607 | 693 | |
Total Interest Income Recognized | 5 | 5 | 13 | 16 | |
Commercial business | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 21 | 21 | 32 | ||
Unpaid Principal Balance | 22 | 22 | 32 | ||
Average Recorded Investment | 22 | 38 | 27 | 43 | |
Interest Income Recognized | 0 | 1 | 1 | 2 | |
Loans with an allowance recorded: | |||||
Recorded Investment | 375 | 375 | 380 | ||
Unpaid Principal Balance | 394 | 394 | 426 | ||
Related Allowance | 28 | 28 | 34 | ||
Average Recorded Investment | 380 | 395 | 378 | 405 | |
Interest Income Recognized | 5 | 6 | 15 | 18 | |
Total Recorded Investment | 396 | 396 | 412 | ||
Total Unpaid Principal Balance | 416 | 416 | 458 | ||
Related Allowance for Loan Losses | 28 | 28 | $ 34 | ||
Total Average Recorded Investment | 402 | 433 | 405 | 448 | |
Total Interest Income Recognized | $ 5 | 7 | $ 16 | 20 | |
Consumer loans | |||||
Loans with no related allowance recorded: | |||||
Average Recorded Investment | 1 | 1 | |||
Loans with an allowance recorded: | |||||
Total Average Recorded Investment | $ 1 | $ 1 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Nonperforming loans of nonaccrual loans and loans over 90 days past due recorded investment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual Loans | $ 1,439 | $ 1,182 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 1,439 | 1,182 |
Residential real estate | One-to-four family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual Loans | 1,166 | 947 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 1,166 | 947 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual Loans | 273 | 235 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | $ 273 | $ 235 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Aging of recorded investment in loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 1,188 | $ 3,008 |
Current | 116,049 | 122,172 |
Total Loans | 117,237 | 125,180 |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 676 | 2,061 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 447 | 709 |
Over 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 65 | 238 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 3,911 | 3,209 |
Residential real estate | One-to-four family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,098 | 2,238 |
Current | 66,583 | 69,645 |
Total Loans | 67,681 | 71,883 |
Residential real estate | One-to-four family residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 624 | 1,425 |
Residential real estate | One-to-four family residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 409 | 575 |
Residential real estate | One-to-four family residential | Over 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 65 | 238 |
Residential real estate | Multi-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 8,639 | 9,274 |
Total Loans | 8,639 | 9,274 |
Residential real estate | Multi-family residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | Multi-family residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | Multi-family residential | Over 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 40 | 611 |
Current | 29,297 | 31,782 |
Total Loans | 29,337 | 32,393 |
Commercial Real Estate | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2 | 477 |
Commercial Real Estate | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 38 | 134 |
Commercial Real Estate | Over 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 152 |
Current | 3,911 | 3,057 |
Total Loans | 3,911 | 3,209 |
Commercial Real Estate | Construction | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 152 |
Commercial Real Estate | Construction | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate | Construction | Over 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 6,184 | 6,492 |
Total Loans | 6,184 | 6,492 |
Commercial business | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial business | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial business | Over 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 50 | 7 |
Current | 1,435 | 1,922 |
Total Loans | 1,485 | 1,929 |
Consumer loans | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 50 | 7 |
Consumer loans | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer loans | Over 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Recorded investment in loans by risk category (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 117,237 | $ 125,180 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 114,583 | 123,052 |
Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 447 | 0 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 2,207 | 2,128 |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 3,911 | 3,209 |
Residential real estate | One-to-four family residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 67,681 | 71,883 |
Residential real estate | One-to-four family residential | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 66,290 | 70,611 |
Residential real estate | One-to-four family residential | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Residential real estate | One-to-four family residential | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 1,391 | 1,272 |
Residential real estate | One-to-four family residential | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Residential real estate | One-to-four family residential | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Residential real estate | Multi-family residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 8,639 | 9,274 |
Residential real estate | Multi-family residential | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 8,639 | 9,274 |
Residential real estate | Multi-family residential | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Residential real estate | Multi-family residential | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Residential real estate | Multi-family residential | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Residential real estate | Multi-family residential | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Real Estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 29,337 | 32,393 |
Commercial Real Estate | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 28,702 | 31,949 |
Commercial Real Estate | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 215 | 0 |
Commercial Real Estate | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 420 | 444 |
Commercial Real Estate | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Real Estate | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Real Estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 3,911 | 3,209 |
Commercial Real Estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 3,679 | 3,209 |
Commercial Real Estate | Construction | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 232 | 0 |
Commercial Real Estate | Construction | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Real Estate | Construction | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Real Estate | Construction | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial business | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 6,184 | 6,492 |
Commercial business | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 5,788 | 6,080 |
Commercial business | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial business | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 396 | 412 |
Commercial business | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Commercial business | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Consumer loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 1,485 | 1,929 |
Consumer loans | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 1,485 | 1,929 |
Consumer loans | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Consumer loans | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Consumer loans | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 0 | 0 |
Consumer loans | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Troubled Debt Restructuring by accrual status (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accruing | $ 1,064 | $ 1,261 |
Nonaccrual | 408 | 137 |
Total | 1,472 | 1,398 |
Related Allowance for Loan Losses | 77 | 78 |
Residential real estate | One-to-four family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accruing | 331 | 484 |
Nonaccrual | 230 | 0 |
Total | 561 | 484 |
Related Allowance for Loan Losses | 24 | 25 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accruing | 337 | 365 |
Nonaccrual | 178 | 137 |
Total | 515 | 502 |
Related Allowance for Loan Losses | 25 | 19 |
Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accruing | 396 | 412 |
Nonaccrual | 0 | 0 |
Total | 396 | 412 |
Related Allowance for Loan Losses | $ 28 | $ 34 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Troubled Debt Restructuring that were restructured (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020contract | Sep. 30, 2020loan | Sep. 30, 2020USD ($) | Sep. 30, 2020contract | Sep. 30, 2020loan | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of Contracts | 2 | 2 | 6 | 89 | 1 | ||
Pre-Modification Outstanding Balance | $ 81 | $ 281 | $ 155 | ||||
Post-Modification Outstanding Balance | 81 | 281 | $ 155 | ||||
Residential real estate | One-to-four family residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of Contracts | contract | 2 | 5 | |||||
Pre-Modification Outstanding Balance | 81 | 230 | |||||
Post-Modification Outstanding Balance | $ 81 | 230 | |||||
Commercial Real Estate | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of Contracts | 1 | 1 | |||||
Pre-Modification Outstanding Balance | 51 | $ 155 | |||||
Post-Modification Outstanding Balance | $ 51 | $ 155 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Loans with no related allowance recorded: | ||||
Average Recorded Investment | $ 1,558 | $ 1,647 | $ 1,477 | $ 1,753 |
Interest Income Recognized | 1 | 4 | 5 | 23 |
Loans with an allowance recorded: | ||||
Average Recorded Investment | 961 | 952 | 979 | 1,088 |
Interest Income Recognized | 12 | 13 | 33 | 39 |
Total Average Recorded Investment | 2,519 | 2,599 | 2,456 | 2,841 |
Total Interest Income Recognized | 13 | 17 | 38 | 62 |
Residential real estate | One-to-four family residential | ||||
Loans with no related allowance recorded: | ||||
Average Recorded Investment | 1,255 | 1,258 | 1,188 | 1,341 |
Interest Income Recognized | 1 | 2 | 4 | 18 |
Loans with an allowance recorded: | ||||
Average Recorded Investment | 253 | 261 | 256 | 358 |
Interest Income Recognized | 2 | 3 | 5 | 8 |
Total Average Recorded Investment | 1,508 | 1,519 | 1,444 | 1,699 |
Total Interest Income Recognized | 3 | 5 | 9 | 26 |
Commercial Real Estate | ||||
Loans with no related allowance recorded: | ||||
Average Recorded Investment | 281 | 350 | 262 | 368 |
Interest Income Recognized | 0 | 1 | 3 | |
Loans with an allowance recorded: | ||||
Average Recorded Investment | 328 | 296 | 345 | 325 |
Interest Income Recognized | 5 | 4 | 13 | 13 |
Total Average Recorded Investment | 609 | 646 | 607 | 693 |
Total Interest Income Recognized | 5 | 5 | 13 | 16 |
Commercial business | ||||
Loans with no related allowance recorded: | ||||
Average Recorded Investment | 22 | 38 | 27 | 43 |
Interest Income Recognized | 0 | 1 | 1 | 2 |
Loans with an allowance recorded: | ||||
Average Recorded Investment | 380 | 395 | 378 | 405 |
Interest Income Recognized | 5 | 6 | 15 | 18 |
Total Average Recorded Investment | 402 | 433 | 405 | 448 |
Total Interest Income Recognized | $ 5 | 7 | $ 16 | 20 |
Consumer loans | ||||
Loans with no related allowance recorded: | ||||
Average Recorded Investment | 1 | 1 | ||
Loans with an allowance recorded: | ||||
Total Average Recorded Investment | $ 1 | $ 1 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020USD ($)contractloan | Sep. 30, 2020USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)contract | Sep. 30, 2020USD ($)contractloan | Sep. 30, 2020USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)contract | |
Loans and Allowance for Loan Losses | ||||||||
Number of loans | loan | 7 | 7 | 7 | 7 | 7 | 7 | ||
Aggregate partial charge-offs loan | $ 158,000 | $ 158,000 | $ 158,000 | $ 158,000 | $ 158,000 | $ 158,000 | ||
Value of estimated to exceed | $ 100,000 | $ 100,000 | 100,000 | $ 100,000 | $ 100,000 | 100,000 | ||
Number of loans modified | 2 | 2 | 6 | 89 | 1,000 | |||
Outstanding principal | $ 18,600,000 | $ 18,600,000 | 18,600,000 | $ 0 | $ 18,600,000 | $ 18,600,000 | 18,600,000 | $ 0 |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 0 | 0 | 0 | 0 | ||||
Financing Receivable, Troubled Debt Restructuring, Modified Allowance for Credit Loss | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Supplemental Disclosure for E_3
Supplemental Disclosure for Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings: | ||||||||
Net income | $ 264 | $ 342 | $ 385 | $ 105 | $ 297 | $ 362 | $ 991 | $ 764 |
Shares: | ||||||||
Weighted average common shares outstanding | 3,106,371 | 3,364,526 | 3,237,533 | 3,366,472 | ||||
Net income per common share, basic (in dollars per share) | $ 0.09 | $ 0.03 | $ 0.31 | $ 0.23 | ||||
Earnings: | ||||||||
Net income | $ 264 | $ 342 | $ 385 | $ 105 | $ 297 | $ 362 | $ 991 | $ 764 |
Shares: | ||||||||
Weighted average common shares outstanding | 3,106,371 | 3,364,526 | 3,237,533 | 3,366,472 | ||||
Add: Dilutive effect of stock options | 1,142 | 1,298 | 1,140 | 1,288 | ||||
Add: Dilutive effect of restricted stock | 2,803 | 101 | 984 | 121 | ||||
Weighted average common shares outstanding, as adjusted | 3,110,316 | 3,365,925 | 3,239,657 | 3,367,881 | ||||
Net income per common share, diluted (in dollars per share) | $ 0.09 | $ 0.03 | $ 0.31 | $ 0.23 |
Supplemental Disclosure for E_4
Supplemental Disclosure for Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares of common stock excluded from the calculation of diluted net income per common share | 0 | 0 | 0 | 0 |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares of common stock excluded from the calculation of diluted net income per common share | 0 | 0 | 0 | 0 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Compensation expense | $ 32,000 | $ 33,000 | $ 98,000 | $ 98,000 |
Conversion | Employee stock ownership plan ("ESOP") | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Plan of conversion from mutual to stock form of ownership, number of shares issued | 204,789 | |||
Purchase price per share for shares issued in plan of conversion | $ 10 | |||
Term of loan | 20 years | 20 years | ||
Allocated shares | 16,498 | 16,498 | ||
Unallocated shares | 188,291 | 188,291 | ||
Value unallocated shares of common stock | $ 2,400,000 | $ 2,400,000 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans - Stock option activity (Details) | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares |
Weighted Average Exercise Price | ||
Weighted Average Remaining Contractual Term, options vested and expected to vest | 3 years 1 month 6 days | 3 years |
Stock options | ||
Number of shares | ||
Outstanding at beginning of year | shares | 93,488 | |
Granted | shares | 0 | |
Exercise | shares | 0 | |
Forfeited or expired | shares | 0 | |
Outstanding at end of period | shares | 93,488 | 93,488 |
Vested and expected to vest | shares | 93,488 | 93,488 |
Exercisable at end of period | shares | 23,429 | 23,429 |
Weighted Average Exercise Price | ||
Outstanding at beginning of year | $ / shares | $ 13.17 | |
Granted | $ / shares | 0 | |
Exercise | $ / shares | 0 | |
Forfeited or expired | $ / shares | 0 | |
Outstanding at end of period | $ / shares | $ 13.17 | 13.17 |
Vested and expected to vest | $ / shares | 13.17 | 13.17 |
Exercisable at end of period | $ / shares | $ 12.65 | $ 12.65 |
Weighted Average Remaining Contractual Term | 9 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, options vested and expected to vest | 9 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, options exercisable | 8 years 7 months 6 days | |
Outstanding shares, Aggregate Intrinsic Value | $ | $ 15,000 | $ 15,000 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 15,000 | 15,000 |
Exercisable at end of period Aggregate Intrinsic Value | $ | $ 15,000 | $ 15,000 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans - Nonvested restricted shares activity (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of shares | |
Nonvested at beginning of year | shares | 22,553 |
Granted | shares | 0 |
Vested | shares | (47) |
Forfeited | shares | 0 |
Nonvested at end of period | shares | 22,506 |
Weighted Average Grant-Date Fair Value | |
Nonvested at beginning of year | $ / shares | $ 13.32 |
Granted | $ / shares | 0 |
Vested | $ / shares | 5 |
Forfeited | $ / shares | 0 |
Nonvested at end of period | $ / shares | $ 13.34 |
Stock-based Compensation Plan_4
Stock-based Compensation Plans - Additional information (Details) - USD ($) | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost charged against income | $ 18,000 | $ 0 | $ 52,000 | $ 0 | |
Unrecognized compensation expense related to nonvested stock options | $ 175,000 | $ 175,000 | 175,000 | ||
Unrecognized compensation expense related to nonvested restricted shares | $ 234,000 | ||||
Weighted average vesting period | 3 years 1 month 6 days | 3 years | |||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average vesting period | 9 years 1 month 6 days | ||||
2010 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common shares approved for awards of stock options and restricted stock | 127,849 | 127,849 | 127,849 | ||
Awards adjusted for stock options | 93,488 | ||||
Common stock have been granted, net of forfeitures | 34,250 | ||||
Vesting period | 5 years | ||||
2019 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common shares approved for awards of stock options and restricted stock | 255,987 | 255,987 | |||
Number of restricted stock available for grant | 102,395 | 102,395 | |||
2019 Equity Incentive Plan | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock granted | 0 | ||||
2019 Equity Incentive Plan | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock granted | 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value on a recurring and nonrecurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 79,712 | $ 58,417 |
Real estate held for sale | 99 | 135 |
Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 7,378 | 9,770 |
Agency CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 16,254 | 10,712 |
Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 56,080 | 37,935 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 79,712 | 58,417 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 79,712 | 58,417 |
Assets Measured on a Recurring Basis | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 7,378 | 9,770 |
Assets Measured on a Recurring Basis | Agency CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 16,254 | 10,712 |
Assets Measured on a Recurring Basis | Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 56,080 | 37,935 |
Assets Measured on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | Level 1 | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | Level 1 | Agency CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | Level 1 | Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 79,712 | 58,417 |
Assets Measured on a Recurring Basis | Level 2 | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 7,378 | 9,770 |
Assets Measured on a Recurring Basis | Level 2 | Agency CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 16,254 | 10,712 |
Assets Measured on a Recurring Basis | Level 2 | Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 56,080 | 37,935 |
Assets Measured on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | Level 3 | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | Level 3 | Agency CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Recurring Basis | Level 3 | Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Assets Measured on a Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 2,426 | 2,365 |
Real estate held for sale | 99 | 135 |
Assets Measured on a Nonrecurring Basis | Residential real estate | One-to-four family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 1,473 | 1,406 |
Assets Measured on a Nonrecurring Basis | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 585 | 581 |
Assets Measured on a Nonrecurring Basis | Commercial business | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 368 | 378 |
Assets Measured on a Nonrecurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Real estate held for sale | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 1 | Residential real estate | One-to-four family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 1 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 1 | Commercial business | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Real estate held for sale | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 2 | Residential real estate | One-to-four family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 2 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 2 | Commercial business | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 0 | 0 |
Assets Measured on a Nonrecurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 2,426 | 2,365 |
Real estate held for sale | 99 | 135 |
Assets Measured on a Nonrecurring Basis | Level 3 | Residential real estate | One-to-four family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 1,473 | 1,406 |
Assets Measured on a Nonrecurring Basis | Level 3 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 585 | 581 |
Assets Measured on a Nonrecurring Basis | Level 3 | Commercial business | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | $ 368 | $ 378 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities available for sale | $ 79,712 | $ 58,417 |
Securities held to maturity | 32 | 42 |
Loans, net | 115,267 | 123,272 |
FHLB stock | 778 | 778 |
Financial liabilities: | ||
Accrued interest payable | 9 | 7 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 15,464 | 18,817 |
Securities available for sale | 79,712 | 58,417 |
Securities held to maturity | 32 | 42 |
Loans, net | 115,267 | 123,272 |
FHLB stock | 778 | 778 |
Accrued interest receivable | 847 | 865 |
Financial liabilities: | ||
Deposits | 158,508 | 146,969 |
Advance from FHLB | 10,000 | 10,000 |
Accrued interest payable | 9 | 7 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 15,464 | 18,817 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | |
Accrued interest payable | 0 | |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 79,712 | 58,417 |
Securities held to maturity | 32 | 42 |
Loans, net | 0 | 0 |
Accrued interest receivable | 847 | 865 |
Financial liabilities: | ||
Deposits | 0 | |
Advance from FHLB | 10,477 | 10,080 |
Accrued interest payable | 9 | 7 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 120,548 | 126,187 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | $ 159,015 | 146,831 |
Accrued interest payable | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Provision for loan losses | $ 30,000 | $ 6,000 | $ 102,000 | $ 6,000 | |
Payment of recognized charges write down | 37,000 | 104,000 | 37,000 | 104,000 | |
Real estate held for sale | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Payment of recognized charges write down | 37,000 | $ 104,000 | $ 37,000 | 104,000 | |
Level 3 | Cost approach | Appraised value | Impaired loans | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Provision for loan losses | $ 3,000 | $ 19,000 | |||
Percentage of discount from appraised value | 10.00% | 10.00% | 10.00% | ||
Level 3 | Cost approach | Appraised value | Real estate held for sale | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Percentage of discount from appraised value | 10.00% | 10.00% | 10.00% | ||
Measurement inputs | estimated costs to sell the property | estimated costs to sell the property |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 184 | $ 196 | $ 498 | $ 566 |
Net gains on investments | 104 | 7 | ||
Increase in cash surrender value of life insurance | 17 | 18 | 51 | 54 |
Other income | 1 | 1 | 4 | 4 |
Other noninterest income | 18 | 19 | 159 | 65 |
Total noninterest income | 202 | 215 | 657 | 631 |
Deposit account service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45 | 86 | 127 | 253 |
ATM and debit card fee income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 110 | 102 | 312 | 289 |
Other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 29 | $ 8 | $ 59 | $ 24 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Restatement | ASU 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Percentage of impact on consolidated balance sheet | 5.00% |