Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38491 | |
Entity Registrant Name | Mid-Southern Bancorp, Inc. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 82-4821705 | |
Entity Address, Address Line One | 300 North Water Street | |
Entity Address, City or Town | Salem | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47167 | |
City Area Code | 812 | |
Local Phone Number | 883-2639 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | MSVB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,869,586 | |
Entity Central Index Key | 0001734875 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 1,690 | $ 1,378 |
Interest-bearing deposits with banks | 2,320 | 15,001 |
Cash and cash equivalents | 4,010 | 16,379 |
Securities available for sale, at fair value | 103,684 | 107,293 |
Securities held to maturity | 18 | 21 |
Loans, net of allowance for loan losses of $1,653 and $1,523, respectively | 142,473 | 122,568 |
Federal Home Loan Bank stock, at cost | 1,778 | 778 |
Real estate held for sale | 99 | 99 |
Premises and equipment | 2,208 | 1,952 |
Accrued interest receivable: | ||
Loans | 380 | 296 |
Securities | 700 | 701 |
Cash value of life insurance | 3,811 | 3,930 |
Other assets | 5,387 | 243 |
Total Assets | 264,548 | 254,260 |
Deposits: | ||
Noninterest-bearing | 27,565 | 28,602 |
Interest-bearing | 174,250 | 168,282 |
Total deposits | 201,815 | 196,884 |
Advance from Federal Home Loan Bank | 31,000 | 10,000 |
Accrued interest payable | 31 | 11 |
Accrued expenses and other liabilities | 892 | 836 |
Total Liabilities | 233,738 | 207,731 |
COMMITMENTS AND CONTINGENCIES | ||
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 2,869,586 shares outstanding (3,016,653 in 2021) | 36 | 36 |
Additional paid-in-capital | 30,755 | 30,694 |
Retained earnings, substantially restricted | 24,702 | 23,527 |
Accumulated other comprehensive income (loss) | (12,957) | 2,096 |
Unearned ESOP shares | (1,571) | (1,649) |
Unearned stock compensation plan | (344) | (473) |
Treasury stock, at cost - 695,844 shares (548,777 in 2021) | (9,811) | (7,702) |
Total Stockholders' Equity | 30,810 | 46,529 |
Total Liabilities and Stockholders' Equity | $ 264,548 | $ 254,260 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for loan losses | $ 1,653 | $ 1,523 |
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 | 2,869,586 | 3,016,653 |
Treasury stock, shares | 695,844 | 548,777 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
INTEREST INCOME | ||||
Loans, including fees | $ 1,556 | $ 1,317 | $ 4,326 | $ 3,887 |
Investment securities: | ||||
Mortgage-backed securities | 158 | 137 | 405 | 421 |
Municipal tax exempt | 428 | 381 | 1,233 | 1,130 |
Other debt securities | 122 | 63 | 320 | 190 |
Federal Home Loan Bank dividends | 21 | 4 | 30 | 13 |
Interest-bearing deposits with banks and time deposits | 9 | 1 | 16 | 2 |
Total interest income | 2,294 | 1,903 | 6,330 | 5,643 |
INTEREST EXPENSE | ||||
Deposits | 128 | 121 | 342 | 371 |
Borrowings | 166 | 43 | 275 | 130 |
Total interest expense | 294 | 164 | 617 | 501 |
Net interest income | 2,000 | 1,739 | 5,713 | 5,142 |
Provision for loan losses | 85 | 135 | ||
Net interest income after provision for loan losses | 1,915 | 1,739 | 5,578 | 5,142 |
NONINTEREST INCOME | ||||
Fees and commission | 273 | 280 | 838 | 830 |
Brokered loan fees | 25 | 48 | 126 | 199 |
Increase in cash value of life insurance | 14 | 16 | 43 | 47 |
Gain on life insurance | 36 | |||
Other income | 12 | 12 | 36 | 35 |
Total noninterest income | 295 | 301 | 944 | 900 |
NONINTEREST EXPENSE | ||||
Compensation and benefits | 936 | 902 | 2,752 | 2,743 |
Occupancy and equipment | 161 | 139 | 437 | 405 |
Data processing | 118 | 103 | 354 | 323 |
Professional fees | 145 | 145 | 447 | 423 |
Loss on disposal of premises and equipment | 10 | 17 | ||
Directors' compensation | 84 | 70 | 254 | 242 |
Stockholders' meeting expense | 8 | 12 | 41 | 50 |
Supervisory examinations | 18 | 17 | 53 | 50 |
Deposit insurance premiums | 16 | 10 | 49 | 40 |
Other expenses | 171 | 153 | 524 | 479 |
Total noninterest expense | 1,667 | 1,551 | 4,928 | 4,755 |
Income before income taxes | 543 | 489 | 1,594 | 1,287 |
Income tax expense | 31 | 33 | 89 | 56 |
Net Income | $ 512 | $ 456 | $ 1,505 | $ 1,231 |
Earnings per common share: | ||||
Basic | $ 0.19 | $ 0.16 | $ 0.55 | $ 0.42 |
Diluted | $ 0.19 | $ 0.16 | $ 0.55 | $ 0.42 |
Deposit account service charges | ||||
NONINTEREST INCOME | ||||
Fees and commission | $ 100 | $ 87 | $ 271 | $ 207 |
ATM and debit card fee income | ||||
NONINTEREST INCOME | ||||
Fees and commission | $ 144 | $ 138 | $ 432 | $ 412 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net Income | $ 512 | $ 456 | $ 1,505 | $ 1,231 |
Unrealized losses on securities available for sale: | ||||
Net unrealized holding losses arising during the period | (5,381) | (892) | (20,037) | (1,665) |
Income tax benefit | 1,339 | 221 | 4,984 | 414 |
Net of tax amount | (4,042) | (671) | (15,053) | (1,251) |
Other Comprehensive Loss, net of tax | (4,042) | (671) | (15,053) | (1,251) |
Total Comprehensive Loss | $ (3,530) | $ (215) | $ (13,548) | $ (20) |
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, 2020 | $ 36 | $ 30,559 | $ 22,299 | $ 3,213 | $ (1,769) | $ (422) | $ 49,004 | |
Treasury Stock, beginning balance at Dec. 31, 2020 | $ (4,912) | |||||||
Net income | 378 | 378 | ||||||
Other comprehensive loss | (1,505) | (1,505) | ||||||
Cash dividends | (91) | (91) | ||||||
ESOP shares committed to be released | 15 | 26 | 41 | |||||
Purchase of treasury shares | (5) | (5) | ||||||
Stock compensation expense | 13 | 45 | 58 | |||||
Balances at Mar. 31, 2021 | 36 | 30,587 | 22,586 | 1,708 | (1,743) | (377) | 47,880 | |
Treasury Stock, ending balance at Mar. 31, 2021 | (4,917) | |||||||
Balances at Dec. 31, 2020 | 36 | 30,559 | 22,299 | 3,213 | (1,769) | (422) | 49,004 | |
Treasury Stock, beginning balance at Dec. 31, 2020 | (4,912) | |||||||
Net income | 1,231 | |||||||
Other comprehensive loss | (1,251) | |||||||
Balances at Sep. 30, 2021 | 36 | 30,632 | 23,265 | 1,962 | (1,691) | (315) | 46,218 | |
Treasury Stock, ending balance at Sep. 30, 2021 | (7,671) | |||||||
Balances at Mar. 31, 2021 | 36 | 30,587 | 22,586 | 1,708 | (1,743) | (377) | 47,880 | |
Treasury Stock, beginning balance at Mar. 31, 2021 | (4,917) | |||||||
Net income | 397 | 397 | ||||||
Other comprehensive loss | 925 | 925 | ||||||
Cash dividends | (89) | (89) | ||||||
ESOP shares committed to be released | 14 | 26 | 40 | |||||
Purchase of treasury shares | (86) | (86) | ||||||
Forfeiture of unearned stock awards | 3 | (3) | ||||||
Exercise of stock options | (9) | 16 | 7 | |||||
Stock compensation expense | 13 | 29 | 42 | |||||
Balances at Jun. 30, 2021 | 36 | 30,605 | 22,894 | 2,633 | (1,717) | (345) | 49,116 | |
Treasury Stock, ending balance at Jun. 30, 2021 | (4,990) | |||||||
Net income | 456 | 456 | ||||||
Other comprehensive loss | (671) | (671) | ||||||
Cash dividends | (85) | (85) | ||||||
ESOP shares committed to be released | 14 | 26 | 40 | |||||
Purchase of treasury shares | (2,681) | (2,681) | ||||||
Stock compensation expense | 13 | 30 | 43 | |||||
Balances at Sep. 30, 2021 | 36 | 30,632 | 23,265 | 1,962 | (1,691) | (315) | 46,218 | |
Treasury Stock, ending balance at Sep. 30, 2021 | (7,671) | |||||||
Balances at Dec. 31, 2021 | 36 | 30,694 | 23,527 | 2,096 | (1,649) | (473) | 46,529 | |
Treasury Stock, beginning balance at Dec. 31, 2021 | (7,702) | (7,702) | ||||||
Net income | 467 | 467 | ||||||
Other comprehensive loss | (5,888) | (5,888) | ||||||
Cash dividends | (113) | (113) | ||||||
ESOP shares committed to be released | 13 | 26 | 39 | |||||
Purchase of treasury shares | (241) | (241) | ||||||
Forfeiture of unearned stock awards | 2 | (2) | ||||||
Exercise of stock options | (8) | 111 | 103 | |||||
Stock compensation expense | 13 | 41 | 54 | |||||
Balances at Mar. 31, 2022 | 36 | 30,712 | 23,881 | (3,792) | (1,623) | (430) | 40,950 | |
Treasury Stock, ending balance at Mar. 31, 2022 | (7,834) | |||||||
Balances at Dec. 31, 2021 | 36 | 30,694 | 23,527 | 2,096 | (1,649) | (473) | 46,529 | |
Treasury Stock, beginning balance at Dec. 31, 2021 | (7,702) | (7,702) | ||||||
Net income | 1,505 | |||||||
Other comprehensive loss | (15,053) | |||||||
Balances at Sep. 30, 2022 | 36 | 30,755 | 24,702 | (12,957) | (1,571) | (344) | 30,810 | |
Treasury Stock, ending balance at Sep. 30, 2022 | (9,811) | (9,811) | ||||||
Balances at Mar. 31, 2022 | 36 | 30,712 | 23,881 | (3,792) | (1,623) | (430) | 40,950 | |
Treasury Stock, beginning balance at Mar. 31, 2022 | (7,834) | |||||||
Net income | 526 | 526 | ||||||
Other comprehensive loss | (5,123) | (5,123) | ||||||
Cash dividends | (108) | (108) | ||||||
ESOP shares committed to be released | 11 | 26 | 37 | |||||
Purchase of treasury shares | (1,952) | (1,952) | ||||||
Forfeiture of unearned stock awards | 2 | (2) | ||||||
Stock compensation expense | 11 | 41 | 52 | |||||
Balances at Jun. 30, 2022 | 36 | 30,734 | 24,299 | (8,915) | (1,597) | (387) | 34,382 | |
Treasury Stock, ending balance at Jun. 30, 2022 | (9,788) | |||||||
Net income | 512 | 512 | ||||||
Other comprehensive loss | (4,042) | (4,042) | ||||||
Cash dividends | (109) | (109) | ||||||
ESOP shares committed to be released | 10 | 26 | 36 | |||||
Purchase of treasury shares | (21) | (21) | ||||||
Forfeiture of unearned stock awards | 2 | (2) | ||||||
Stock compensation expense | 11 | 41 | 52 | |||||
Balances at Sep. 30, 2022 | $ 36 | $ 30,755 | $ 24,702 | $ (12,957) | $ (1,571) | $ (344) | 30,810 | |
Treasury Stock, ending balance at Sep. 30, 2022 | $ (9,811) | $ (9,811) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||||
Cash dividend, per share amount | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.03 |
Treasury stock, shares, acquired | 1,589 | 136,780 | 16,117 | 150,663 | 5,612 | 327 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,505,000 | $ 1,231,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of premiums and accretion of discounts on securities, net | 339,000 | 279,000 |
Provision for loan losses | 135,000 | |
Stock compensation expense | 158,000 | 143,000 |
Depreciation expense | 145,000 | 126,000 |
Loss on disposal of premises and equipment | 17,000 | |
ESOP compensation expense | 112,000 | 121,000 |
Deferred income taxes | (104,000) | (28,000) |
Increase in cash value of life insurance | (43,000) | (47,000) |
Gain on life insurance | (36,000) | |
(Increase) decrease in accrued interest receivable | (83,000) | 7,000 |
Increase in accrued interest payable | 20,000 | 1,000 |
Net change in other assets and liabilities | (32,000) | 24,000 |
Net Cash Provided By Operating Activities | 2,133,000 | 1,857,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of securities available for sale | (25,951,000) | (14,084,000) |
Principal collected on mortgage-backed securities available for sale | 6,347,000 | 5,513,000 |
Proceeds from maturities of securities available for sale | 2,837,000 | 2,853,000 |
Principal collected on mortgage-backed securities held to maturity | 3,000 | 8,000 |
Purchase of Federal Home Loan Bank stock | (1,057,000) | |
Proceeds from redemption of Federal Home Loan Bank Stock | 57,000 | |
Net (increase) decrease in loans receivable | (20,040,000) | (4,905,000) |
Purchase of premises and equipment | (386,000) | (100,000) |
Proceeds from settlement of life insurance | 203,000 | |
Investment in cash value of life insurance | (5,000) | (2,000) |
Net Cash Used In Investing Activities | (37,992,000) | (10,717,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 4,931,000 | 21,115,000 |
Repayments to Federal Home Loan Bank | (10,000,000) | (1,000,000) |
Proceeds from Federal Home Loan Bank | 31,000,000 | |
Proceeds from the exercise of stock options | 103,000 | 7,000 |
Purchase of treasury stock | (2,214,000) | (2,772,000) |
Cash dividends paid | (330,000) | (265,000) |
Net Cash Provided By Financing Activities | 23,490,000 | 17,085,000 |
Net Increase (Decrease) in Cash and Cash Equivalents | (12,369,000) | 8,225,000 |
Cash and cash equivalents at beginning of year | 16,379,000 | 9,661,000 |
Cash and Cash Equivalents at End of Period | 4,010,000 | 17,886,000 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | 597,000 | 500,000 |
Net tax payments | $ 145,000 | $ 27,000 |
Presentation of Interim Informa
Presentation of Interim Information | 9 Months Ended |
Sep. 30, 2022 | |
Presentation of Interim Information | |
Presentation of Interim Information | 1. 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 25, 2022 ("2021 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, 2022 | |
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. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
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 U.S. Treasury and other U.S. government agency obligations, 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, 2022 and December 31, 2021 are summarized as follows: Gross Gross (In thousands) Amortized Unrealized Unrealized Fair September 30, 2022 Cost Gains Losses Value Securities available for sale: Mortgage-backed securities: Agency MBS $ 13,585 $ — $ 2,090 $ 11,495 Agency CMO 21,805 2 2,136 19,671 35,390 2 4,226 31,166 Other debt securities: U.S. Treasury securities 9,837 — 421 9,416 U.S. Government agency obligations 1,996 — 178 1,818 Municipal obligations 73,708 3 12,427 61,284 Total securities available for sale $ 120,931 $ 5 $ 17,252 $ 103,684 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 18 $ — $ — $ 18 Total securities held to maturity $ 18 $ — $ — $ 18 December 31, 2021 Securities available for sale: Mortgage-backed securities: Agency MBS $ 11,941 $ 47 $ 135 $ 11,853 Agency CMO 24,196 47 465 23,778 36,137 94 600 35,631 Other debt securities: Municipal obligations 68,366 3,318 22 71,662 Total securities available for sale $ 104,503 $ 3,412 $ 622 $ 107,293 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 21 $ — $ — $ 21 Total securities held to maturity $ 21 $ — $ — $ 21 The amortized cost and fair value of debt securities as of September 30, 2022, 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 $ 2,270 $ 2,229 $ — $ — Due after one year through five years 14,717 14,042 — — Due after five years through ten years 5,451 5,132 — — Due after ten years 63,103 51,115 — — 85,541 72,518 — — MBS and CMO 35,390 31,166 18 18 $ 120,931 $ 103,684 $ 18 $ 18 Information pertaining to investment securities available for sale with gross unrealized losses at September 30, 2022, 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 September 30, 2022 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: US Treasury 6 $ 9,417 $ 421 Agency MBS 8 4,765 650 Agency CMO 10 6,763 273 Federal agency obligations 1 1,818 178 Municipal obligations 118 58,374 11,724 Total less than 12 months 143 81,137 13,246 Continuous loss position more than 12 months: Agency MBS 5 6,730 1,440 Agency CMO 10 11,472 1,863 Municipal obligations 3 1,728 703 Total more than 12 months 18 19,930 4,006 Total securities available for sale 161 $ 101,067 $ 17,252 Information pertaining to investment securities available for sale with gross unrealized losses at December 31, 2021, 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, 2021 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: Agency MBS 4 $ 7,964 $ 113 Agency CMO 4 4,792 46 Municipal obligations 3 2,452 22 Total less than 12 months 11 15,208 181 Continuous loss position more than 12 months: Agency MBS 1 879 22 Agency CMO 8 12,553 419 Total more than 12 months 9 13,432 441 Total securities available for sale 20 $ 28,640 $ 622 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 recovery in fair value. At September 30, 2022, the Company had no debt securities in the held to maturity classification in a loss position. At September 30, 2022, the debt securities available for sale in a loss position were 97.5% of the Company’s total available for sale securities portfolio. All of the debt securities in a loss position at September 30, 2022 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. There were no securities sold during the three- and nine-month periods ended September 30, 2022. There were no securities sold during the three- and nine-month periods ended September 30, 2021. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2022 | |
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. 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. 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 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, farmland, 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, 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. component of the allowance for loan losses because they are estimates and the outcome of the loan relationship is undetermined. 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. 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, 2022, there were seven loans with a recorded investment of $249,000 that are secured by residential real estate property for which formal foreclosure proceedings are in process. The recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure was $19,000 at December 31, 2021. Loans at September 30, 2022 and December 31, 2021 consisted of the following: September 30, December 31, (In thousands) 2022 2021 Real estate mortgage loans: One-to-four family residential $ 64,725 $ 64,098 Multi-family residential 11,350 9,385 Residential construction 1,601 1,406 Commercial real estate 47,865 36,678 Commercial real estate construction 3,996 1,632 Commercial business loans 12,466 8,804 Consumer loans 2,254 2,152 Total loans 144,257 124,155 Deferred loan origination fees and costs, net (131) (64) Allowance for loan losses (1,653) (1,523) Loans, net $ 142,473 $ 122,568 The following table provides the components of the Company’s recorded investment in loans at September 30, 2022: 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 $ 64,725 $ 11,350 $ 5,597 $ 47,865 $ 12,466 $ 2,254 $ 144,257 Accrued interest receivable 159 17 7 147 46 4 380 Net deferred loan fees/costs 9 (31) (24) (104) (23) 42 (131) Recorded investment in loans $ 64,893 $ 11,336 $ 5,580 $ 47,908 $ 12,489 $ 2,300 $ 144,506 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 1,145 $ — $ — $ 139 $ 295 $ 7 $ 1,586 Collectively evaluated for impairment 63,748 11,336 5,580 47,769 12,194 2,293 142,920 Ending balance $ 64,893 $ 11,336 $ 5,580 $ 47,908 $ 12,489 $ 2,300 $ 144,506 The following table provides the components of the Company’s recorded investment in loans at December 31, 2021: 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 $ 64,098 $ 9,385 $ 3,038 $ 36,678 $ 8,804 $ 2,152 $ 124,155 Accrued interest receivable 158 11 7 76 38 6 296 Net deferred loan fees/costs 7 (24) (13) (52) (27) 45 (64) Recorded investment in loans $ 64,263 $ 9,372 $ 3,032 $ 36,702 $ 8,815 $ 2,203 $ 124,387 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 1,041 $ — $ — $ 170 $ 328 $ 3 $ 1,542 Collectively evaluated for impairment 63,222 9,372 3,032 36,532 8,487 2,200 122,845 Ending balance $ 64,263 $ 9,372 $ 3,032 $ 36,702 $ 8,815 $ 2,203 $ 124,387 An analysis of the allowance for loan losses as of September 30, 2022 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 $ 21 $ — $ — $ — $ 18 $ — $ 39 Collectively evaluated for impairment 719 112 17 593 140 33 1,614 Ending balance $ 740 $ 112 $ 17 $ 593 $ 158 $ 33 $ 1,653 An analysis of the allowance for loan losses as of December 31, 2021 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 $ 21 $ — $ — $ — $ 19 $ — $ 40 Collectively evaluated for impairment 852 102 25 363 108 33 1,483 Ending balance $ 873 $ 102 $ 25 $ 363 $ 127 $ 33 $ 1,523 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2022 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 $ 751 $ 112 $ 10 $ 558 $ 109 $ 31 $ 1,571 Provisions (13) — 7 35 49 7 85 Charge-offs — — — — — (8) (8) Recoveries 2 — — — — 3 5 Ending balance $ 740 $ 112 $ 17 $ 593 $ 158 $ 33 $ 1,653 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2022 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 $ 873 $ 102 $ 25 $ 363 $ 127 $ 33 $ 1,523 Provisions (138) 10 (8) 230 31 10 135 Charge-offs — — — — — (14) (14) Recoveries 5 — — — — 4 9 Ending balance $ 740 $ 112 $ 17 $ 593 $ 158 $ 33 $ 1,653 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2021 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 $ 999 $ 103 $ 32 $ 312 $ 137 $ 29 $ 1,612 Provisions (73) (4) (7) 56 21 7 — Charge-offs — — — — — (3) (3) Recoveries 40 — — — — 2 42 Ending balance $ 966 $ 99 $ 25 $ 368 $ 158 $ 35 $ 1,651 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2021 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 $ 992 $ 98 $ 55 $ 306 $ 113 $ 25 $ 1,589 Provisions (70) 1 (30) 62 24 13 — Charge-offs — — — — — (9) (9) Recoveries 44 — — — 21 6 71 Ending balance $ 966 $ 99 $ 25 $ 368 $ 158 $ 35 $ 1,651 The following table summarizes the Company’s impaired loans as of September 30, 2022 and for the three and nine months ended September 30, 2022. 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, 2022. Three Months Ended Nine Months Ended At September 30, 2022 September 30, 2022 September 30, 2022 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 $ 876 $ 945 $ — $ 859 $ — $ 788 $ 1 Commercial real estate 73 73 — 79 1 89 3 Commercial business — — — — — — — Consumer 7 7 — 4 — 3 — $ 956 $ 1,025 $ — $ 942 $ 1 $ 880 $ 4 Loans with an allowance recorded: One-to-four family residential $ 269 $ 276 $ 21 $ 269 $ 3 $ 257 $ 9 Commercial real estate 66 69 — 66 — 67 2 Commercial business 295 295 18 302 4 314 12 Consumer — — — — — — — $ 630 $ 640 $ 39 $ 637 $ 7 $ 638 $ 23 Total: One-to-four family residential $ 1,145 $ 1,221 $ 21 $ 1,128 $ 3 $ 1,045 $ 10 Commercial real estate 139 142 — 145 1 156 5 Commercial business 295 295 18 302 4 314 12 Consumer 7 7 — 4 — 3 — $ 1,586 $ 1,665 $ 39 $ 1,579 $ 8 $ 1,518 $ 27 The following table summarizes the Company’s impaired loans for the three- and nine-month periods ended September 30, 2021. 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, 2021. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 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 $ 785 $ 1 $ 964 $ 2 Commercial real estate 123 1 105 3 Commercial business — — 6 — $ 908 $ 2 $ 1,075 $ 5 Loans with an allowance recorded: One-to-four family residential $ 220 $ 2 $ 228 $ 7 Commercial real estate 123 2 153 5 Commercial business 343 4 352 14 $ 686 $ 8 $ 733 $ 26 Total: One-to-four family residential $ 1,005 $ 3 $ 1,192 $ 9 Commercial real estate 246 3 258 8 Commercial business 343 4 358 14 $ 1,594 $ 10 $ 1,808 $ 31 The following table summarizes the Company’s impaired loans as of December 31, 2021: At December 31, 2021 Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 822 $ 905 $ — Commercial real estate 102 102 — Commercial business — — — Consumer 3 3 — $ 927 $ 1,010 $ — Loans with an allowance recorded: One-to-four family residential $ 219 $ 218 $ 21 Commercial real estate 68 72 — Commercial business 328 328 19 Consumer — — — $ 615 $ 618 $ 40 Total: One-to-four family residential $ 1,041 $ 1,123 $ 21 Commercial real estate 170 174 — Commercial business 328 328 19 Consumer 3 3 — $ 1,542 $ 1,628 $ 40 Nonperforming loans consists of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at September 30, 2022 and December 31, 2021: At September 30, 2022 At December 31, 2021 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 $ 845 $ — $ 845 $ 735 $ — $ 735 Commercial real estate 4 — 4 15 — 15 Consumer 8 — 8 3 — 3 Total $ 857 $ — $ 857 $ 753 $ — $ 753 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, 2022 One-to-four family residential $ 540 $ 252 $ 78 $ 870 $ 64,023 $ 64,893 Multi-family residential — — — — 11,336 11,336 Construction — — — — 5,580 5,580 Commercial real estate — — — — 47,908 47,908 Commercial business — — — — 12,489 12,489 Consumer — — — — 2,300 2,300 Total $ 540 $ 252 $ 78 $ 870 $ 143,636 $ 144,506 December 31, 2021 One-to-four family residential $ 545 $ 248 $ 57 $ 850 $ 63,413 $ 64,263 Multi-family residential — — — — 9,372 9,372 Construction — — — — 3,032 3,032 Commercial real estate 451 — — 451 36,251 36,702 Commercial business — — — — 8,815 8,815 Consumer — — 3 3 2,200 2,203 Total $ 996 $ 248 $ 60 $ 1,304 $ 123,083 $ 124,387 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 Substandard Doubtful Loss Pass 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, 2022 Pass $ 64,048 $ 11,336 $ 5,580 $ 47,904 $ 12,489 $ 2,293 $ 143,650 Special mention — — — — — — — Substandard 845 — — 4 — 7 856 Doubtful — — — — — — — Loss — — — — — — — Total $ 64,893 $ 11,336 $ 5,580 $ 47,908 $ 12,489 $ 2,300 $ 144,506 December 31, 2021 Pass $ 63,399 $ 9,372 $ 3,032 $ 36,593 $ 8,815 $ 2,200 $ 123,411 Special mention — — — 87 — — 87 Substandard 864 — — 22 — 3 889 Doubtful — — — — — — — Loss — — — — — — — Total $ 64,263 $ 9,372 $ 3,032 $ 36,702 $ 8,815 $ 2,203 $ 124,387 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 following table summarizes the Company’s TDRs by accrual status as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Related Related Allowance for Allowance for Accruing Nonaccrual Total Loan Losses Accruing Nonaccrual Total Loan Losses (In thousands) One-to-four family residential $ 300 $ 88 $ 388 $ 21 $ 306 $ 101 $ 407 $ 21 Commercial real estate 135 — 135 — 155 — 155 — Commercial business 295 — 295 18 328 — 328 19 Total $ 730 $ 88 $ 818 $ 39 $ 789 $ 101 $ 890 $ 40 At both September 30, 2022 and December 31, 2021 there were no commitments to lend additional funds to debtors whose loan terms have been modified in a TDR (both accruing and nonaccruing). There were no TDRs that were restructured during the three and nine months ended September 30, 2022 and 2021. 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, 2022 and 2021. 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, 2022 and 2021. 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. |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 9 Months Ended |
Sep. 30, 2022 | |
Advances from Federal Home Loan Bank | |
Advances from Federal Home Loan Bank | 5. Advances from Federal Home Loan Bank At September 30, 2022 and December 31, 2021, the Company had $31.0 million and $10.0 million in advances outstanding from the FHLB, respectively. On June 27, 2019, the Company borrowed $10.0 million from the FHLB as a putable fixed-rate advance with an original maturity date of June 27, 2024 and bearing an interest rate of 1.73%. On June 27, 2022 the FHLB exercised its put option on this advance. During the three- and nine-month periods ended September 30, 2022, the Company utilized a series of short-term fixed-rate bullet advances from the FHLB in order to meet daily liquidity requirements and to fund growth in earning assets. The advances had an average term of seven days. The following table sets forth information on the short-term FHLB advances during the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Outstanding at period-end $ 31,000 $ — $ 31,000 $ — Average amount outstanding 28,125 — 12,438 — Maximum amount outstanding at any month-end 31,000 — 31,000 — Weighted average interest rate: During period 2.36 % — % 2.00 % — % End of period 3.03 % — % 3.03 % — % In addition, during the nine-month period ended September 30, 2022, the Company utilized a $5.0 million line of credit with the FHLB. The following table sets forth information on the FHLB line of credit advances during the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Outstanding at period-end $ — $ — $ — $ — Average amount outstanding — — 264 — Maximum amount outstanding at any month-end — — 3,566 — Weighted average interest rate: During period — % — % 1.70 % — % End of period — % — % — % — % The advances are secured under a blanket collateral agreement with the FHLB. At September 30, 2022, the carrying value of mortgage loans pledged as security for advances was $59.2 million. |
Supplemental Disclosure for Ear
Supplemental Disclosure for Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Disclosure for Earnings Per Share | |
Supplemental Disclosure for Earnings Per Share | 6. 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. Potential dilutive common shares are excluded from the computation of diluted net income per common share in the periods where the effect would be antidilutive. Excluded from the computation of diluted net income per common share were weighted-average antidilutive shares totaling 3,913 and 4,708 for the three and nine months ended September 30, 2022, respectively. 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 months ended September 30, 2021. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands, except per share data) Basic Earnings: Net income $ 512 $ 456 $ 1,505 $ 1,231 Shares: Weighted average common shares outstanding 2,679,500 2,875,547 2,737,396 2,935,796 Net income per common share, basic $ 0.19 $ 0.16 $ 0.55 $ 0.42 Diluted Earnings: Net income $ 512 $ 456 $ 1,505 $ 1,231 Shares: Weighted average common shares outstanding 2,679,500 2,875,547 2,737,396 2,935,796 Add: Dilutive effect of stock options 242 5,000 251 4,039 Add: Dilutive effect of restricted stock 5,467 7,627 3,565 5,512 Weighted average common shares outstanding, as adjusted 2,685,209 2,888,174 2,741,212 2,945,347 Net income per common share, diluted $ 0.19 $ 0.16 $ 0.55 $ 0.42 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2022 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | 7. 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 31 st 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, 2022 was $36,000 and $112,000, respectively. Compensation expense recognized for the three- and nine-month periods ended September 30, 2021 was $40,000 and $121,000, respectively. The ESOP trust held 39,847 allocated shares and 164,942 unallocated shares of Company common stock at September 30, 2022. The fair value of the unallocated shares was $2.2 million at September 30, 2022. |
Stock-based Compensation Plans
Stock-based Compensation Plans | 9 Months Ended |
Sep. 30, 2022 | |
Stock-based Compensation Plans | |
Stock-based Compensation Plans | 8. 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, 2022, on an adjusted basis, awards for stock options totaling 78,010 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 2010 Plan expired July 27, 2020. 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 Plan 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. 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, 2022, awards for stock options totaling 4,900 shares and awards for restricted stock totaling 33,100 shares of the Company common stock have been granted, net of any forfeitures, to participants in the 2019 Plan. The fair 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 as of September 30, 2022, 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 98,584 $ 13.42 Granted — — Exercised (7,869) 13.11 Forfeited or expired (16,844) 13.53 Outstanding at end of period 73,871 $ 13.43 7.3 $ 7,000 Vested and expected to vest 73,871 $ 13.43 7.3 $ 7,000 Exercisable at end of period 42,871 $ 13.33 7.2 $ 6,000 For the three- and nine-month periods ended September 30, 2022, the Company recognized $12,000 and $37,000, respectively, in compensation expense related to the stock option plan. For the three- and nine-month periods ended September 30, 2021, the Company recognized $13,000 and $39,000, respectively in compensation expense related to the stock option plan. At September 30, 2022, there was $70,000 of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 1.4 years. A summary of the activity for the Company’s nonvested restricted shares as of September 30, 2022 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 32,578 $ 14.53 Granted — — Vested — — Forfeited (450) 14.74 Nonvested at end of period 32,128 $ 14.52 For the three- and nine-month periods ended September 30, 2022, the Company recognized $40,000 and $121,000, respectively, in compensation expense related to the restricted stock plans. For the three- and nine-month periods ended September 30, 2021, the Company recognized $30,000 and $104,000, respectively, in compensation expense related to the restricted stock plans. At September 30, 2022, unrecognized compensation expense related to nonvested restricted shares was $344,000. The compensation expense is expected to be recognized over the remaining weighted average vesting period of 2.3 years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 9. Fair Value Measurements FASB ASC Topic 820 , Fair Value Measurement, 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 basis as of September 30, 2022 and December 31, 2021. The Company had no liabilities measured at fair value as of September 30, 2022 and December 31, 2021. Carrying Value Level 1 Level 2 Level 3 Total (In thousands) September 30, 2022 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 11,495 $ — $ 11,495 Agency CMO — 19,671 — 19,671 U.S. Treasury securities — 9,416 — 9,416 U.S. Government agency obligations — 1,818 — 1,818 Municipal obligations — 61,284 — 61,284 Total securities available for sale $ — $ 103,684 $ — $ 103,684 December 31, 2021 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 11,853 $ — $ 11,853 Agency CMO — 23,778 — 23,778 Municipal obligations — 71,662 — 71,662 Total securities available for sale $ — $ 107,293 $ — $ 107,293 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. Impaired Loans . Real Estate Held for Sale . At both September 30, 2022 and December 31, 2021, 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 did not recognize any charges to write down real estate held for sale during both the three- and nine-month periods ended September 30, 2022 and 2021. 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, 2022 and 2021. 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, 2022 and 2021. 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, 2022 Financial assets: Cash and cash equivalents $ 4,010 $ 4,010 $ — $ — Securities available for sale 103,684 — 103,684 — Securities held to maturity 18 — 18 — Loans, net 142,473 — — 136,459 FHLB stock 1,778 N/A N/A N/A Accrued interest receivable 1,080 — 1,080 — Financial liabilities: Noninterest-bearing deposits 27,565 27,565 — — Interest-bearing deposits 174,250 — — 172,445 Advance from FHLB 31,000 — 31,000 — Accrued interest payable 31 — 31 — December 31, 2021 Financial assets: Cash and cash equivalents $ 16,379 $ 16,379 $ — $ — Securities available for sale 107,293 — 107,293 — Securities held to maturity 21 — 21 — Loans, net 122,568 — — 123,158 FHLB stock 778 N/A N/A N/A Accrued interest receivable 997 — 997 — Financial liabilities: Noninterest-bearing deposits 28,602 28,602 — — Interest-bearing deposits 168,282 — — 168,168 Advance from FHLB 10,000 — 10,162 — Accrued interest payable 11 — 11 — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 10. 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, 2022 and 2021: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Deposit account service charges $ 100 $ 87 $ 271 $ 207 Brokered loan fees 25 48 126 199 ATM and debit card fee income 144 138 432 412 Other income 4 7 9 12 Revenue from contracts with customers 273 280 838 830 Increase in cash surrender value of life insurance 14 16 43 47 Gain on life insurance — — 36 — Other income 8 5 27 23 Other noninterest income 22 21 106 70 Total noninterest income $ 295 $ 301 $ 944 $ 900 A description of the Company’s revenue streams accounted for under FASB ASC 606 follows: Deposit Account Service Charges Brokered Loan Fees ATM and Debit Card Fee Income Other Income |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 11. Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company. The Company is an emerging growth company, and as such will be subject to the effective dates noted for private companies if they differ from the effective dates noted for public companies. In February 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) Leases (Topic 842), Targeted Improvements Leases (Topic 842), Codification Improvements Leases (Topic 842) 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 adoption of the ASU, as amended, effective January 1, 2022 did not have a material impact on the Company’s consolidated financial statements. The FASB originally issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) cost, regardless of whether the impairment is considered to be other-than-temporary. In March 2022, the FASB issued ASU 2022-02, which eliminates the accounting guidance for TDRs by creditors that have adopted CECL and enhances disclosure requirements for certain loan refinancing and restructurings by creditors to borrowers experiencing financial difficulty. ASU 2019-05, issued in April 2019, further provides entities that have certain financial instruments measured at amortized cost that have credit losses with an option 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 Securities and Exchange Commission (“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, and currently does not intend to early adopt CECL. 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 December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes The Company has determined that all other recently issued accounting pronouncements will not have a material impact on the Company’s consolidated financial statements or do not apply to its operations. |
Presentation of Interim Infor_2
Presentation of Interim Information (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 25, 2022 ("2021 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, 2022 | |
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. The Company is an emerging growth company, and as such will be subject to the effective dates noted for private companies if they differ from the effective dates noted for public companies. In February 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) Leases (Topic 842), Targeted Improvements Leases (Topic 842), Codification Improvements Leases (Topic 842) 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 adoption of the ASU, as amended, effective January 1, 2022 did not have a material impact on the Company’s consolidated financial statements. The FASB originally issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) cost, regardless of whether the impairment is considered to be other-than-temporary. In March 2022, the FASB issued ASU 2022-02, which eliminates the accounting guidance for TDRs by creditors that have adopted CECL and enhances disclosure requirements for certain loan refinancing and restructurings by creditors to borrowers experiencing financial difficulty. ASU 2019-05, issued in April 2019, further provides entities that have certain financial instruments measured at amortized cost that have credit losses with an option 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 Securities and Exchange Commission (“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, and currently does not intend to early adopt CECL. 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 December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes The Company has determined that all other recently issued accounting pronouncements will not have a material impact on the Company’s consolidated financial statements or do not apply to its operations. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Cost Gains Losses Value Securities available for sale: Mortgage-backed securities: Agency MBS $ 13,585 $ — $ 2,090 $ 11,495 Agency CMO 21,805 2 2,136 19,671 35,390 2 4,226 31,166 Other debt securities: U.S. Treasury securities 9,837 — 421 9,416 U.S. Government agency obligations 1,996 — 178 1,818 Municipal obligations 73,708 3 12,427 61,284 Total securities available for sale $ 120,931 $ 5 $ 17,252 $ 103,684 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 18 $ — $ — $ 18 Total securities held to maturity $ 18 $ — $ — $ 18 December 31, 2021 Securities available for sale: Mortgage-backed securities: Agency MBS $ 11,941 $ 47 $ 135 $ 11,853 Agency CMO 24,196 47 465 23,778 36,137 94 600 35,631 Other debt securities: Municipal obligations 68,366 3,318 22 71,662 Total securities available for sale $ 104,503 $ 3,412 $ 622 $ 107,293 Securities held to maturity: Mortgage-backed securities: Agency MBS $ 21 $ — $ — $ 21 Total securities held to maturity $ 21 $ — $ — $ 21 |
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 $ 2,270 $ 2,229 $ — $ — Due after one year through five years 14,717 14,042 — — Due after five years through ten years 5,451 5,132 — — Due after ten years 63,103 51,115 — — 85,541 72,518 — — MBS and CMO 35,390 31,166 18 18 $ 120,931 $ 103,684 $ 18 $ 18 |
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, 2022 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: US Treasury 6 $ 9,417 $ 421 Agency MBS 8 4,765 650 Agency CMO 10 6,763 273 Federal agency obligations 1 1,818 178 Municipal obligations 118 58,374 11,724 Total less than 12 months 143 81,137 13,246 Continuous loss position more than 12 months: Agency MBS 5 6,730 1,440 Agency CMO 10 11,472 1,863 Municipal obligations 3 1,728 703 Total more than 12 months 18 19,930 4,006 Total securities available for sale 161 $ 101,067 $ 17,252 Information pertaining to investment securities available for sale with gross unrealized losses at December 31, 2021, 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, 2021 Positions Value Losses Securities available for sale: Continuous loss position less than 12 months: Agency MBS 4 $ 7,964 $ 113 Agency CMO 4 4,792 46 Municipal obligations 3 2,452 22 Total less than 12 months 11 15,208 181 Continuous loss position more than 12 months: Agency MBS 1 879 22 Agency CMO 8 12,553 419 Total more than 12 months 9 13,432 441 Total securities available for sale 20 $ 28,640 $ 622 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Loans and Allowance for Loan Losses | |
Schedule of loans | September 30, December 31, (In thousands) 2022 2021 Real estate mortgage loans: One-to-four family residential $ 64,725 $ 64,098 Multi-family residential 11,350 9,385 Residential construction 1,601 1,406 Commercial real estate 47,865 36,678 Commercial real estate construction 3,996 1,632 Commercial business loans 12,466 8,804 Consumer loans 2,254 2,152 Total loans 144,257 124,155 Deferred loan origination fees and costs, net (131) (64) Allowance for loan losses (1,653) (1,523) Loans, net $ 142,473 $ 122,568 |
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, 2022: 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 $ 64,725 $ 11,350 $ 5,597 $ 47,865 $ 12,466 $ 2,254 $ 144,257 Accrued interest receivable 159 17 7 147 46 4 380 Net deferred loan fees/costs 9 (31) (24) (104) (23) 42 (131) Recorded investment in loans $ 64,893 $ 11,336 $ 5,580 $ 47,908 $ 12,489 $ 2,300 $ 144,506 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 1,145 $ — $ — $ 139 $ 295 $ 7 $ 1,586 Collectively evaluated for impairment 63,748 11,336 5,580 47,769 12,194 2,293 142,920 Ending balance $ 64,893 $ 11,336 $ 5,580 $ 47,908 $ 12,489 $ 2,300 $ 144,506 The following table provides the components of the Company’s recorded investment in loans at December 31, 2021: 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 $ 64,098 $ 9,385 $ 3,038 $ 36,678 $ 8,804 $ 2,152 $ 124,155 Accrued interest receivable 158 11 7 76 38 6 296 Net deferred loan fees/costs 7 (24) (13) (52) (27) 45 (64) Recorded investment in loans $ 64,263 $ 9,372 $ 3,032 $ 36,702 $ 8,815 $ 2,203 $ 124,387 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 1,041 $ — $ — $ 170 $ 328 $ 3 $ 1,542 Collectively evaluated for impairment 63,222 9,372 3,032 36,532 8,487 2,200 122,845 Ending balance $ 64,263 $ 9,372 $ 3,032 $ 36,702 $ 8,815 $ 2,203 $ 124,387 |
Schedule of analysis of allowance for loan losses | An analysis of the allowance for loan losses as of September 30, 2022 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 $ 21 $ — $ — $ — $ 18 $ — $ 39 Collectively evaluated for impairment 719 112 17 593 140 33 1,614 Ending balance $ 740 $ 112 $ 17 $ 593 $ 158 $ 33 $ 1,653 An analysis of the allowance for loan losses as of December 31, 2021 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 $ 21 $ — $ — $ — $ 19 $ — $ 40 Collectively evaluated for impairment 852 102 25 363 108 33 1,483 Ending balance $ 873 $ 102 $ 25 $ 363 $ 127 $ 33 $ 1,523 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2022 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 $ 751 $ 112 $ 10 $ 558 $ 109 $ 31 $ 1,571 Provisions (13) — 7 35 49 7 85 Charge-offs — — — — — (8) (8) Recoveries 2 — — — — 3 5 Ending balance $ 740 $ 112 $ 17 $ 593 $ 158 $ 33 $ 1,653 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2022 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 $ 873 $ 102 $ 25 $ 363 $ 127 $ 33 $ 1,523 Provisions (138) 10 (8) 230 31 10 135 Charge-offs — — — — — (14) (14) Recoveries 5 — — — — 4 9 Ending balance $ 740 $ 112 $ 17 $ 593 $ 158 $ 33 $ 1,653 An analysis of the changes in the allowance for loan losses for the three months ended September 30, 2021 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 $ 999 $ 103 $ 32 $ 312 $ 137 $ 29 $ 1,612 Provisions (73) (4) (7) 56 21 7 — Charge-offs — — — — — (3) (3) Recoveries 40 — — — — 2 42 Ending balance $ 966 $ 99 $ 25 $ 368 $ 158 $ 35 $ 1,651 An analysis of the changes in the allowance for loan losses for the nine months ended September 30, 2021 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 $ 992 $ 98 $ 55 $ 306 $ 113 $ 25 $ 1,589 Provisions (70) 1 (30) 62 24 13 — Charge-offs — — — — — (9) (9) Recoveries 44 — — — 21 6 71 Ending balance $ 966 $ 99 $ 25 $ 368 $ 158 $ 35 $ 1,651 |
Schedule of impaired loans | The following table summarizes the Company’s impaired loans as of September 30, 2022 and for the three and nine months ended September 30, 2022. 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, 2022. Three Months Ended Nine Months Ended At September 30, 2022 September 30, 2022 September 30, 2022 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 $ 876 $ 945 $ — $ 859 $ — $ 788 $ 1 Commercial real estate 73 73 — 79 1 89 3 Commercial business — — — — — — — Consumer 7 7 — 4 — 3 — $ 956 $ 1,025 $ — $ 942 $ 1 $ 880 $ 4 Loans with an allowance recorded: One-to-four family residential $ 269 $ 276 $ 21 $ 269 $ 3 $ 257 $ 9 Commercial real estate 66 69 — 66 — 67 2 Commercial business 295 295 18 302 4 314 12 Consumer — — — — — — — $ 630 $ 640 $ 39 $ 637 $ 7 $ 638 $ 23 Total: One-to-four family residential $ 1,145 $ 1,221 $ 21 $ 1,128 $ 3 $ 1,045 $ 10 Commercial real estate 139 142 — 145 1 156 5 Commercial business 295 295 18 302 4 314 12 Consumer 7 7 — 4 — 3 — $ 1,586 $ 1,665 $ 39 $ 1,579 $ 8 $ 1,518 $ 27 The following table summarizes the Company’s impaired loans for the three- and nine-month periods ended September 30, 2021. 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, 2021. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 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 $ 785 $ 1 $ 964 $ 2 Commercial real estate 123 1 105 3 Commercial business — — 6 — $ 908 $ 2 $ 1,075 $ 5 Loans with an allowance recorded: One-to-four family residential $ 220 $ 2 $ 228 $ 7 Commercial real estate 123 2 153 5 Commercial business 343 4 352 14 $ 686 $ 8 $ 733 $ 26 Total: One-to-four family residential $ 1,005 $ 3 $ 1,192 $ 9 Commercial real estate 246 3 258 8 Commercial business 343 4 358 14 $ 1,594 $ 10 $ 1,808 $ 31 The following table summarizes the Company’s impaired loans as of December 31, 2021: At December 31, 2021 Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: One-to-four family residential $ 822 $ 905 $ — Commercial real estate 102 102 — Commercial business — — — Consumer 3 3 — $ 927 $ 1,010 $ — Loans with an allowance recorded: One-to-four family residential $ 219 $ 218 $ 21 Commercial real estate 68 72 — Commercial business 328 328 19 Consumer — — — $ 615 $ 618 $ 40 Total: One-to-four family residential $ 1,041 $ 1,123 $ 21 Commercial real estate 170 174 — Commercial business 328 328 19 Consumer 3 3 — $ 1,542 $ 1,628 $ 40 |
Schedule of recorded investment in nonperforming loans | At September 30, 2022 At December 31, 2021 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 $ 845 $ — $ 845 $ 735 $ — $ 735 Commercial real estate 4 — 4 15 — 15 Consumer 8 — 8 3 — 3 Total $ 857 $ — $ 857 $ 753 $ — $ 753 |
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, 2022 One-to-four family residential $ 540 $ 252 $ 78 $ 870 $ 64,023 $ 64,893 Multi-family residential — — — — 11,336 11,336 Construction — — — — 5,580 5,580 Commercial real estate — — — — 47,908 47,908 Commercial business — — — — 12,489 12,489 Consumer — — — — 2,300 2,300 Total $ 540 $ 252 $ 78 $ 870 $ 143,636 $ 144,506 December 31, 2021 One-to-four family residential $ 545 $ 248 $ 57 $ 850 $ 63,413 $ 64,263 Multi-family residential — — — — 9,372 9,372 Construction — — — — 3,032 3,032 Commercial real estate 451 — — 451 36,251 36,702 Commercial business — — — — 8,815 8,815 Consumer — — 3 3 2,200 2,203 Total $ 996 $ 248 $ 60 $ 1,304 $ 123,083 $ 124,387 |
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, 2022 Pass $ 64,048 $ 11,336 $ 5,580 $ 47,904 $ 12,489 $ 2,293 $ 143,650 Special mention — — — — — — — Substandard 845 — — 4 — 7 856 Doubtful — — — — — — — Loss — — — — — — — Total $ 64,893 $ 11,336 $ 5,580 $ 47,908 $ 12,489 $ 2,300 $ 144,506 December 31, 2021 Pass $ 63,399 $ 9,372 $ 3,032 $ 36,593 $ 8,815 $ 2,200 $ 123,411 Special mention — — — 87 — — 87 Substandard 864 — — 22 — 3 889 Doubtful — — — — — — — Loss — — — — — — — Total $ 64,263 $ 9,372 $ 3,032 $ 36,702 $ 8,815 $ 2,203 $ 124,387 |
Schedule of TDRs by accrual status | September 30, 2022 December 31, 2021 Related Related Allowance for Allowance for Accruing Nonaccrual Total Loan Losses Accruing Nonaccrual Total Loan Losses (In thousands) One-to-four family residential $ 300 $ 88 $ 388 $ 21 $ 306 $ 101 $ 407 $ 21 Commercial real estate 135 — 135 — 155 — 155 — Commercial business 295 — 295 18 328 — 328 19 Total $ 730 $ 88 $ 818 $ 39 $ 789 $ 101 $ 890 $ 40 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Advances from Federal Home Loan Bank | |
Schedule of federal home loan bank | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Outstanding at period-end $ 31,000 $ — $ 31,000 $ — Average amount outstanding 28,125 — 12,438 — Maximum amount outstanding at any month-end 31,000 — 31,000 — Weighted average interest rate: During period 2.36 % — % 2.00 % — % End of period 3.03 % — % 3.03 % — % Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Outstanding at period-end $ — $ — $ — $ — Average amount outstanding — — 264 — Maximum amount outstanding at any month-end — — 3,566 — Weighted average interest rate: During period — % — % 1.70 % — % End of period — % — % — % — % |
Supplemental Disclosure for E_2
Supplemental Disclosure for Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Disclosure for Earnings Per Share | |
Schedule of supplemental disclosure for earnings per share | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands, except per share data) Basic Earnings: Net income $ 512 $ 456 $ 1,505 $ 1,231 Shares: Weighted average common shares outstanding 2,679,500 2,875,547 2,737,396 2,935,796 Net income per common share, basic $ 0.19 $ 0.16 $ 0.55 $ 0.42 Diluted Earnings: Net income $ 512 $ 456 $ 1,505 $ 1,231 Shares: Weighted average common shares outstanding 2,679,500 2,875,547 2,737,396 2,935,796 Add: Dilutive effect of stock options 242 5,000 251 4,039 Add: Dilutive effect of restricted stock 5,467 7,627 3,565 5,512 Weighted average common shares outstanding, as adjusted 2,685,209 2,888,174 2,741,212 2,945,347 Net income per common share, diluted $ 0.19 $ 0.16 $ 0.55 $ 0.42 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 98,584 $ 13.42 Granted — — Exercised (7,869) 13.11 Forfeited or expired (16,844) 13.53 Outstanding at end of period 73,871 $ 13.43 7.3 $ 7,000 Vested and expected to vest 73,871 $ 13.43 7.3 $ 7,000 Exercisable at end of period 42,871 $ 13.33 7.2 $ 6,000 |
Schedule of nonvested restricted shares activity | Weighted Number Average of Grant-Date Shares Fair Value Nonvested at beginning of year 32,578 $ 14.53 Granted — — Vested — — Forfeited (450) 14.74 Nonvested at end of period 32,128 $ 14.52 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 11,495 $ — $ 11,495 Agency CMO — 19,671 — 19,671 U.S. Treasury securities — 9,416 — 9,416 U.S. Government agency obligations — 1,818 — 1,818 Municipal obligations — 61,284 — 61,284 Total securities available for sale $ — $ 103,684 $ — $ 103,684 December 31, 2021 Assets Measured on a Recurring Basis Securities available for sale: Agency MBS $ — $ 11,853 $ — $ 11,853 Agency CMO — 23,778 — 23,778 Municipal obligations — 71,662 — 71,662 Total securities available for sale $ — $ 107,293 $ — $ 107,293 |
Schedule of estimated fair values of financial instruments | Carrying Fair Value Measurements Using Value Level 1 Level 2 Level 3 (In thousands) September 30, 2022 Financial assets: Cash and cash equivalents $ 4,010 $ 4,010 $ — $ — Securities available for sale 103,684 — 103,684 — Securities held to maturity 18 — 18 — Loans, net 142,473 — — 136,459 FHLB stock 1,778 N/A N/A N/A Accrued interest receivable 1,080 — 1,080 — Financial liabilities: Noninterest-bearing deposits 27,565 27,565 — — Interest-bearing deposits 174,250 — — 172,445 Advance from FHLB 31,000 — 31,000 — Accrued interest payable 31 — 31 — December 31, 2021 Financial assets: Cash and cash equivalents $ 16,379 $ 16,379 $ — $ — Securities available for sale 107,293 — 107,293 — Securities held to maturity 21 — 21 — Loans, net 122,568 — — 123,158 FHLB stock 778 N/A N/A N/A Accrued interest receivable 997 — 997 — Financial liabilities: Noninterest-bearing deposits 28,602 28,602 — — Interest-bearing deposits 168,282 — — 168,168 Advance from FHLB 10,000 — 10,162 — Accrued interest payable 11 — 11 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Summary of revenue from contracts with customers | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Deposit account service charges $ 100 $ 87 $ 271 $ 207 Brokered loan fees 25 48 126 199 ATM and debit card fee income 144 138 432 412 Other income 4 7 9 12 Revenue from contracts with customers 273 280 838 830 Increase in cash surrender value of life insurance 14 16 43 47 Gain on life insurance — — 36 — Other income 8 5 27 23 Other noninterest income 22 21 106 70 Total noninterest income $ 295 $ 301 $ 944 $ 900 |
Investment Securities - Availab
Investment Securities - Available of sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Securities available for sale: | ||
Amortized Cost | $ 120,931 | $ 104,503 |
Gross Unrealized Gains | 5 | 3,412 |
Gross Unrealized Losses | 17,252 | 622 |
Fair Value | 103,684 | 107,293 |
Agency MBS | ||
Securities available for sale: | ||
Amortized Cost | 13,585 | 11,941 |
Gross Unrealized Gains | 47 | |
Gross Unrealized Losses | 2,090 | 135 |
Fair Value | 11,495 | 11,853 |
Agency CMO | ||
Securities available for sale: | ||
Amortized Cost | 21,805 | 24,196 |
Gross Unrealized Gains | 2 | 47 |
Gross Unrealized Losses | 2,136 | 465 |
Fair Value | 19,671 | 23,778 |
MBS and CMO | ||
Securities available for sale: | ||
Amortized Cost | 35,390 | 36,137 |
Gross Unrealized Gains | 2 | 94 |
Gross Unrealized Losses | 4,226 | 600 |
Fair Value | 31,166 | 35,631 |
U.S. Treasury securities | ||
Securities available for sale: | ||
Amortized Cost | 9,837 | |
Gross Unrealized Losses | 421 | |
Fair Value | 9,416 | |
U.S. Government agency obligations | ||
Securities available for sale: | ||
Amortized Cost | 1,996 | |
Gross Unrealized Losses | 178 | |
Fair Value | 1,818 | |
Municipal obligations | ||
Securities available for sale: | ||
Amortized Cost | 73,708 | 68,366 |
Gross Unrealized Gains | 3 | 3,318 |
Gross Unrealized Losses | 12,427 | 22 |
Fair Value | $ 61,284 | $ 71,662 |
Investment Securities - Held to
Investment Securities - Held to maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Securities held to maturity: | ||
Amortized Cost | $ 18 | $ 21 |
Fair Value | 18 | 21 |
Agency MBS | ||
Securities held to maturity: | ||
Amortized Cost | 18 | 21 |
Fair Value | $ 18 | $ 21 |
Investment Securities - Amortiz
Investment Securities - Amortized cost and fair value of debt securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available for Sale Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 2,270 | |
Due after one year through five years, Amortized Cost | 14,717 | |
Due after five years through ten years, Amortized Cost | 5,451 | |
Due after ten years, Amortized Cost | 63,103 | |
Available for Sale, Amortized Cost | 85,541 | |
Amortized Cost | 120,931 | $ 104,503 |
Available for Sale Fair Value | ||
Due in one year or less, Fair Value | 2,229 | |
Due after one year through five years, Fair Value | 14,042 | |
Due after five years through ten years, Fair Value | 5,132 | |
Due after ten years, Fair Value | 51,115 | |
Available for Sale, Fair value | 72,518 | |
Fair Value | 103,684 | 107,293 |
MBS and CMO | ||
Available for Sale Amortized Cost | ||
Amortized Cost | 35,390 | 36,137 |
Available for Sale Fair Value | ||
Fair Value | $ 31,166 | $ 35,631 |
Investment Securities - Contrac
Investment Securities - Contractual maturity of held to maturity securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Held to Maturity, Amortized Cost | ||
Amortized Cost | $ 18 | $ 21 |
Held to Maturity, Fair Value | ||
Fair Value | 18 | $ 21 |
MBS and CMO | ||
Held to Maturity, Amortized Cost | ||
Amortized Cost | 18 | |
Held to Maturity, Fair Value | ||
Fair Value | $ 18 |
Investment Securities - Investm
Investment Securities - Investment securities available for sale with gross unrealized loss (Details) $ in Thousands | Sep. 30, 2022 USD ($) position | Dec. 31, 2021 USD ($) position |
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 143 | 11 |
Continuous loss position less than 12 months: Fair Value | $ 81,137 | $ 15,208 |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 13,246 | $ 181 |
Continuous loss position more than 12 months: Number of Investment Positions | position | 18 | 9 |
Continuous loss position more than 12 months: Fair Value | $ 19,930 | $ 13,432 |
Continuous loss position more than 12 months: Gross Unrealized Losses | $ 4,006 | $ 441 |
Total securities available for sale: Number of Investment Positions | position | 161 | 20 |
Total securities available for sale: Fair Value | $ 101,067 | $ 28,640 |
Total securities available for sale: Gross Unrealized Losses | $ 17,252 | $ 622 |
U.S. Treasury securities | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 6 | |
Continuous loss position less than 12 months: Fair Value | $ 9,417 | |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 421 | |
Agency MBS | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 8 | 4 |
Continuous loss position less than 12 months: Fair Value | $ 4,765 | $ 7,964 |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 650 | $ 113 |
Continuous loss position more than 12 months: Number of Investment Positions | position | 5 | 1 |
Continuous loss position more than 12 months: Fair Value | $ 6,730 | $ 879 |
Continuous loss position more than 12 months: Gross Unrealized Losses | $ 1,440 | $ 22 |
Agency CMO | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 10 | 4 |
Continuous loss position less than 12 months: Fair Value | $ 6,763 | $ 4,792 |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 273 | $ 46 |
Continuous loss position more than 12 months: Number of Investment Positions | position | 10 | 8 |
Continuous loss position more than 12 months: Fair Value | $ 11,472 | $ 12,553 |
Continuous loss position more than 12 months: Gross Unrealized Losses | $ 1,863 | $ 419 |
U.S. Government agency obligations | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 1 | |
Continuous loss position less than 12 months: Fair Value | $ 1,818 | |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 178 | |
Municipal obligations | ||
Securities available for sale: | ||
Continuous loss position less than 12 months: Number of Investment Positions | position | 118 | 3 |
Continuous loss position less than 12 months: Fair Value | $ 58,374 | $ 2,452 |
Continuous loss position less than 12 months: Gross Unrealized Losses | $ 11,724 | $ 22 |
Continuous loss position more than 12 months: Number of Investment Positions | position | 3 | |
Continuous loss position more than 12 months: Fair Value | $ 1,728 | |
Continuous loss position more than 12 months: Gross Unrealized Losses | $ 703 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investment Securities | ||||
Debt securities held to maturity with unrealized loss | $ 0 | $ 0 | ||
Debt securities available for sale in a loss position as a percentage of total available for sale securities | 97.50% | 97.50% | ||
Realized gross gain loss | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Loans and Allowance for Loan Losses | ||||||
Loans | $ 144,257 | $ 124,155 | ||||
Deferred loan origination fees and costs, net | (131) | (64) | ||||
Allowance for loan losses | (1,653) | $ (1,571) | (1,523) | $ (1,651) | $ (1,612) | $ (1,589) |
Financing Receivable, after Allowance for Credit Loss, Total | 142,473 | 122,568 | ||||
Construction | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 5,597 | 3,038 | ||||
Deferred loan origination fees and costs, net | (24) | (13) | ||||
Allowance for loan losses | (17) | (10) | (25) | (25) | (32) | (55) |
Residential real estate | One-to-four family residential | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 64,725 | 64,098 | ||||
Deferred loan origination fees and costs, net | 9 | 7 | ||||
Allowance for loan losses | (740) | (751) | (873) | (966) | (999) | (992) |
Residential real estate | Multi-family residential | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 11,350 | 9,385 | ||||
Deferred loan origination fees and costs, net | (31) | (24) | ||||
Allowance for loan losses | (112) | (112) | (102) | (99) | (103) | (98) |
Residential real estate | Construction | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 1,601 | 1,406 | ||||
Commercial real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 47,865 | 36,678 | ||||
Deferred loan origination fees and costs, net | (104) | (52) | ||||
Allowance for loan losses | (593) | (558) | (363) | (368) | (312) | (306) |
Commercial real estate | Construction | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 3,996 | 1,632 | ||||
Commercial business | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 12,466 | 8,804 | ||||
Deferred loan origination fees and costs, net | (23) | (27) | ||||
Allowance for loan losses | (158) | (109) | (127) | (158) | (137) | (113) |
Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans | 2,254 | 2,152 | ||||
Deferred loan origination fees and costs, net | 42 | 45 | ||||
Allowance for loan losses | $ (33) | $ (31) | $ (33) | $ (35) | $ (29) | $ (25) |
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, 2022 | Dec. 31, 2021 |
Recorded Investment in Loans: | ||
Principal loan balance | $ 144,257 | $ 124,155 |
Accrued interest receivable | 380 | 296 |
Deferred loan origination fees and costs, net | (131) | (64) |
Recorded investment in loans | 144,506 | 124,387 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,586 | 1,542 |
Collectively evaluated for impairment | 142,920 | 122,845 |
Total Loans | 144,506 | 124,387 |
Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 5,597 | 3,038 |
Accrued interest receivable | 7 | 7 |
Deferred loan origination fees and costs, net | (24) | (13) |
Recorded investment in loans | 5,580 | 3,032 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 5,580 | 3,032 |
Total Loans | 5,580 | 3,032 |
Residential real estate | One-to-four family residential | ||
Recorded Investment in Loans: | ||
Principal loan balance | 64,725 | 64,098 |
Accrued interest receivable | 159 | 158 |
Deferred loan origination fees and costs, net | 9 | 7 |
Recorded investment in loans | 64,893 | 64,263 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,145 | 1,041 |
Collectively evaluated for impairment | 63,748 | 63,222 |
Total Loans | 64,893 | 64,263 |
Residential real estate | Multi-family residential | ||
Recorded Investment in Loans: | ||
Principal loan balance | 11,350 | 9,385 |
Accrued interest receivable | 17 | 11 |
Deferred loan origination fees and costs, net | (31) | (24) |
Recorded investment in loans | 11,336 | 9,372 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 11,336 | 9,372 |
Total Loans | 11,336 | 9,372 |
Residential real estate | Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 1,601 | 1,406 |
Commercial real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 47,865 | 36,678 |
Accrued interest receivable | 147 | 76 |
Deferred loan origination fees and costs, net | (104) | (52) |
Recorded investment in loans | 47,908 | 36,702 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 139 | 170 |
Collectively evaluated for impairment | 47,769 | 36,532 |
Total Loans | 47,908 | 36,702 |
Commercial real estate | Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 3,996 | 1,632 |
Commercial business | ||
Recorded Investment in Loans: | ||
Principal loan balance | 12,466 | 8,804 |
Accrued interest receivable | 46 | 38 |
Deferred loan origination fees and costs, net | (23) | (27) |
Recorded investment in loans | 12,489 | 8,815 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 295 | 328 |
Collectively evaluated for impairment | 12,194 | 8,487 |
Total Loans | 12,489 | 8,815 |
Consumer | ||
Recorded Investment in Loans: | ||
Principal loan balance | 2,254 | 2,152 |
Accrued interest receivable | 4 | 6 |
Deferred loan origination fees and costs, net | 42 | 45 |
Recorded investment in loans | 2,300 | 2,203 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 7 | 3 |
Collectively evaluated for impairment | 2,293 | 2,200 |
Total Loans | $ 2,300 | $ 2,203 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Analysis of allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Loans and Allowance for Loan Losses | ||||||
Individually evaluated for impairment | $ 39 | $ 40 | ||||
Collectively evaluated for impairment | 1,614 | 1,483 | ||||
Ending balance | 1,653 | $ 1,571 | 1,523 | $ 1,651 | $ 1,612 | $ 1,589 |
Construction | ||||||
Loans and Allowance for Loan Losses | ||||||
Collectively evaluated for impairment | 17 | 25 | ||||
Ending balance | 17 | 10 | 25 | 25 | 32 | 55 |
Residential real estate | One-to-four family residential | ||||||
Loans and Allowance for Loan Losses | ||||||
Individually evaluated for impairment | 21 | 21 | ||||
Collectively evaluated for impairment | 719 | 852 | ||||
Ending balance | 740 | 751 | 873 | 966 | 999 | 992 |
Residential real estate | Multi-family residential | ||||||
Loans and Allowance for Loan Losses | ||||||
Collectively evaluated for impairment | 112 | 102 | ||||
Ending balance | 112 | 112 | 102 | 99 | 103 | 98 |
Commercial real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Collectively evaluated for impairment | 593 | 363 | ||||
Ending balance | 593 | 558 | 363 | 368 | 312 | 306 |
Commercial business | ||||||
Loans and Allowance for Loan Losses | ||||||
Individually evaluated for impairment | 18 | 19 | ||||
Collectively evaluated for impairment | 140 | 108 | ||||
Ending balance | 158 | 109 | 127 | 158 | 137 | 113 |
Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Collectively evaluated for impairment | 33 | 33 | ||||
Ending balance | $ 33 | $ 31 | $ 33 | $ 35 | $ 29 | $ 25 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allowance for Loan Losses: | ||||
Beginning balance | $ 1,571 | $ 1,612 | $ 1,523 | $ 1,589 |
Provision for loan losses | 85 | 135 | ||
Charge-offs | (8) | (3) | (14) | (9) |
Recoveries | 5 | 42 | 9 | 71 |
Ending balance | 1,653 | 1,651 | 1,653 | 1,651 |
Construction | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 10 | 32 | 25 | 55 |
Provision for loan losses | 7 | (7) | (8) | (30) |
Ending balance | 17 | 25 | 17 | 25 |
Residential real estate | One-to-four family residential | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 751 | 999 | 873 | 992 |
Provision for loan losses | (13) | (73) | (138) | (70) |
Recoveries | 2 | 40 | 5 | 44 |
Ending balance | 740 | 966 | 740 | 966 |
Residential real estate | Multi-family residential | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 112 | 103 | 102 | 98 |
Provision for loan losses | (4) | 10 | 1 | |
Ending balance | 112 | 99 | 112 | 99 |
Commercial real estate | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 558 | 312 | 363 | 306 |
Provision for loan losses | 35 | 56 | 230 | 62 |
Ending balance | 593 | 368 | 593 | 368 |
Commercial business | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 109 | 137 | 127 | 113 |
Provision for loan losses | 49 | 21 | 31 | 24 |
Recoveries | 21 | |||
Ending balance | 158 | 158 | 158 | 158 |
Consumer | ||||
Allowance for Loan Losses: | ||||
Beginning balance | 31 | 29 | 33 | 25 |
Provision for loan losses | 7 | 7 | 10 | 13 |
Charge-offs | (8) | (3) | (14) | (9) |
Recoveries | 3 | 2 | 4 | 6 |
Ending balance | $ 33 | $ 35 | $ 33 | $ 35 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Loans with no related allowance recorded: | |||||
Recorded Investment | $ 956 | $ 956 | $ 927 | ||
Unpaid Principal Balance | 1,025 | 1,025 | 1,010 | ||
Average Recorded Investment | 942 | $ 908 | 880 | $ 1,075 | |
Interest Income Recognized | 1 | 2 | 4 | 5 | |
Loans with an allowance recorded: | |||||
Recorded Investment | 630 | 630 | 615 | ||
Unpaid Principal Balance | 640 | 640 | 618 | ||
Related Allowance | 39 | 39 | 40 | ||
Average Recorded Investment | 637 | 686 | 638 | 733 | |
Interest Income Recognized | 7 | 8 | 23 | 26 | |
Total Recorded Investment | 1,586 | 1,586 | 1,542 | ||
Total Unpaid Principal Balance | 1,665 | 1,665 | 1,628 | ||
Total Related Allowance | 39 | 39 | 40 | ||
Total Average Recorded Investment | 1,579 | 1,594 | 1,518 | 1,808 | |
Total Interest Income Recognized | 8 | 10 | 27 | 31 | |
Residential real estate | One-to-four family residential | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 876 | 876 | 822 | ||
Unpaid Principal Balance | 945 | 945 | 905 | ||
Average Recorded Investment | 859 | 785 | 788 | 964 | |
Interest Income Recognized | 1 | 1 | 2 | ||
Loans with an allowance recorded: | |||||
Recorded Investment | 269 | 269 | 219 | ||
Unpaid Principal Balance | 276 | 276 | 218 | ||
Related Allowance | 21 | 21 | 21 | ||
Average Recorded Investment | 269 | 220 | 257 | 228 | |
Interest Income Recognized | 3 | 2 | 9 | 7 | |
Total Recorded Investment | 1,145 | 1,145 | 1,041 | ||
Total Unpaid Principal Balance | 1,221 | 1,221 | 1,123 | ||
Total Related Allowance | 21 | 21 | 21 | ||
Total Average Recorded Investment | 1,128 | 1,005 | 1,045 | 1,192 | |
Total Interest Income Recognized | 3 | 3 | 10 | 9 | |
Commercial real estate | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 73 | 73 | 102 | ||
Unpaid Principal Balance | 73 | 73 | 102 | ||
Average Recorded Investment | 79 | 123 | 89 | 105 | |
Interest Income Recognized | 1 | 1 | 3 | 3 | |
Loans with an allowance recorded: | |||||
Recorded Investment | 66 | 66 | 68 | ||
Unpaid Principal Balance | 69 | 69 | 72 | ||
Average Recorded Investment | 66 | 123 | 67 | 153 | |
Interest Income Recognized | 2 | 2 | 5 | ||
Total Recorded Investment | 139 | 139 | 170 | ||
Total Unpaid Principal Balance | 142 | 142 | 174 | ||
Total Average Recorded Investment | 145 | 246 | 156 | 258 | |
Total Interest Income Recognized | 1 | 3 | 5 | 8 | |
Commercial business | |||||
Loans with no related allowance recorded: | |||||
Average Recorded Investment | 6 | ||||
Loans with an allowance recorded: | |||||
Recorded Investment | 295 | 295 | 328 | ||
Unpaid Principal Balance | 295 | 295 | 328 | ||
Related Allowance | 18 | 18 | 19 | ||
Average Recorded Investment | 302 | 343 | 314 | 352 | |
Interest Income Recognized | 4 | 4 | 12 | 14 | |
Total Recorded Investment | 295 | 295 | 328 | ||
Total Unpaid Principal Balance | 295 | 295 | 328 | ||
Total Related Allowance | 18 | 18 | 19 | ||
Total Average Recorded Investment | 302 | 343 | 314 | 358 | |
Total Interest Income Recognized | 4 | $ 4 | 12 | $ 14 | |
Consumer | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 7 | 7 | 3 | ||
Unpaid Principal Balance | 7 | 7 | 3 | ||
Average Recorded Investment | 4 | 3 | |||
Loans with an allowance recorded: | |||||
Total Recorded Investment | 7 | 7 | 3 | ||
Total Unpaid Principal Balance | 7 | 7 | $ 3 | ||
Total Average Recorded Investment | $ 4 | $ 3 |
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, 2022 | Dec. 31, 2021 |
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | $ 857 | $ 753 |
Total Nonperforming Loans | 857 | 753 |
Residential real estate | One-to-four family residential | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 845 | 735 |
Total Nonperforming Loans | 845 | 735 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 4 | 15 |
Total Nonperforming Loans | 4 | 15 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 8 | 3 |
Total Nonperforming Loans | $ 8 | $ 3 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Aging of recorded investment in loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans and Allowance for Loan Losses | ||
Loans | $ 144,257 | $ 124,155 |
Total Loans | 144,506 | 124,387 |
Total past due | ||
Loans and Allowance for Loan Losses | ||
Loans | 870 | 1,304 |
30-59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 540 | 996 |
60-89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 252 | 248 |
Over 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 78 | 60 |
Current | ||
Loans and Allowance for Loan Losses | ||
Loans | 143,636 | 123,083 |
Construction | ||
Loans and Allowance for Loan Losses | ||
Loans | 5,597 | 3,038 |
Total Loans | 5,580 | 3,032 |
Construction | Current | ||
Loans and Allowance for Loan Losses | ||
Loans | 5,580 | 3,032 |
Residential real estate | One-to-four family residential | ||
Loans and Allowance for Loan Losses | ||
Loans | 64,725 | 64,098 |
Total Loans | 64,893 | 64,263 |
Residential real estate | One-to-four family residential | Total past due | ||
Loans and Allowance for Loan Losses | ||
Loans | 870 | 850 |
Residential real estate | One-to-four family residential | 30-59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 540 | 545 |
Residential real estate | One-to-four family residential | 60-89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 252 | 248 |
Residential real estate | One-to-four family residential | Over 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 78 | 57 |
Residential real estate | One-to-four family residential | Current | ||
Loans and Allowance for Loan Losses | ||
Loans | 64,023 | 63,413 |
Residential real estate | Multi-family residential | ||
Loans and Allowance for Loan Losses | ||
Loans | 11,350 | 9,385 |
Total Loans | 11,336 | 9,372 |
Residential real estate | Multi-family residential | Current | ||
Loans and Allowance for Loan Losses | ||
Loans | 11,336 | 9,372 |
Residential real estate | Construction | ||
Loans and Allowance for Loan Losses | ||
Loans | 1,601 | 1,406 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Loans | 47,865 | 36,678 |
Total Loans | 47,908 | 36,702 |
Commercial real estate | Total past due | ||
Loans and Allowance for Loan Losses | ||
Loans | 451 | |
Commercial real estate | 30-59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 451 | |
Commercial real estate | Current | ||
Loans and Allowance for Loan Losses | ||
Loans | 47,908 | 36,251 |
Commercial real estate | Construction | ||
Loans and Allowance for Loan Losses | ||
Loans | 3,996 | 1,632 |
Commercial business | ||
Loans and Allowance for Loan Losses | ||
Loans | 12,466 | 8,804 |
Total Loans | 12,489 | 8,815 |
Commercial business | Current | ||
Loans and Allowance for Loan Losses | ||
Loans | 12,489 | 8,815 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Loans | 2,254 | 2,152 |
Total Loans | 2,300 | 2,203 |
Consumer | Total past due | ||
Loans and Allowance for Loan Losses | ||
Loans | 3 | |
Consumer | Over 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Loans | 3 | |
Consumer | Current | ||
Loans and Allowance for Loan Losses | ||
Loans | $ 2,300 | $ 2,200 |
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, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 144,506 | $ 124,387 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 143,650 | 123,411 |
Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 87 | |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 856 | 889 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 5,580 | 3,032 |
Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 5,580 | 3,032 |
Residential real estate | One-to-four family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 64,893 | 64,263 |
Residential real estate | One-to-four family residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 64,048 | 63,399 |
Residential real estate | One-to-four family residential | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 845 | 864 |
Residential real estate | Multi-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 11,336 | 9,372 |
Residential real estate | Multi-family residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 11,336 | 9,372 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 47,908 | 36,702 |
Commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 47,904 | 36,593 |
Commercial real estate | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 87 | |
Commercial real estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 4 | 22 |
Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 12,489 | 8,815 |
Commercial business | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 12,489 | 8,815 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,300 | 2,203 |
Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,293 | 2,200 |
Consumer | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 7 | $ 3 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Troubled Debt Restructuring by accrual status (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans and Allowance for Loan Losses | ||
Accruing | $ 730 | $ 789 |
Nonaccrual | 88 | 101 |
Total | 818 | 890 |
Related Allowance for Loan Losses | 39 | 40 |
Residential real estate | One-to-four family residential | ||
Loans and Allowance for Loan Losses | ||
Accruing | 300 | 306 |
Nonaccrual | 88 | 101 |
Total | 388 | 407 |
Related Allowance for Loan Losses | 21 | 21 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Accruing | 135 | 155 |
Total | 135 | 155 |
Commercial business | ||
Loans and Allowance for Loan Losses | ||
Accruing | 295 | 328 |
Total | 295 | 328 |
Related Allowance for Loan Losses | $ 18 | $ 19 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) contract loan | Sep. 30, 2021 USD ($) contract | Sep. 30, 2022 USD ($) contract loan | Sep. 30, 2021 USD ($) contract | Dec. 31, 2021 USD ($) | |
Loans and Allowance for Loan Losses | |||||
Appraisals or valuations obtained above threshold amount | $ 100,000 | $ 100,000 | |||
Foreclosure in process | $ 19,000 | ||||
Outstanding principal | 0 | $ 0 | 0 | $ 0 | |
Commitments to lend additional funds to debtors | 0 | 0 | $ 0 | ||
Loans charged-off | 0 | 0 | 0 | 0 | |
Allowance for credit loss | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of contracts in default | contract | 0 | 0 | 0 | 0 | |
Residential real estate properties | |||||
Loans and Allowance for Loan Losses | |||||
Foreclosure in process | $ 249,000 | $ 249,000 | |||
Number of loans foreclosure | loan | 7 | 7 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jul. 27, 2019 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Federal home loan bank | $ 31,000 | $ 31,000 | $ 10,000 | |
Borrowed amount | $ 31,000 | $ 31,000 | $ 10,000 | $ 10,000 |
Interest rate on FHLB | 1.73% | |||
Average term of short-term fixed-rate bullet advances from the FHLB | 7 days | 7 days | ||
Asset Pledged as Collateral [Member] | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Carrying value of mortgage loans pledged as security for advances | $ 59,200 | $ 59,200 |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank - Short-term FHLB Advances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding at period-end | $ 31,000 | $ 31,000 | $ 10,000 |
Utilized amount of line of credit | 5,000 | 5,000 | |
FHLB advances | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Average amount outstanding | 264 | ||
Maximum amount outstanding at any month-end | 3,566 | $ 3,566 | |
During period | 1.70% | ||
FHLB advances | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding at period-end | 31,000 | $ 31,000 | |
Average amount outstanding | 28,125 | 12,438 | |
Maximum amount outstanding at any month-end | $ 31,000 | $ 31,000 | |
During period | 2.36% | 2% | |
End of period | 3.03% | 3.03% |
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, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings: | ||||||||
Net income | $ 512 | $ 526 | $ 467 | $ 456 | $ 397 | $ 378 | $ 1,505 | $ 1,231 |
Shares: | ||||||||
Weighted average common shares outstanding | 2,679,500 | 2,875,547 | 2,737,396 | 2,935,796 | ||||
Net income per common share, basic (in dollars per share) | $ 0.19 | $ 0.16 | $ 0.55 | $ 0.42 | ||||
Earnings: | ||||||||
Net income | $ 512 | $ 526 | $ 467 | $ 456 | $ 397 | $ 378 | $ 1,505 | $ 1,231 |
Shares: | ||||||||
Weighted average common shares outstanding | 2,679,500 | 2,875,547 | 2,737,396 | 2,935,796 | ||||
Add: Dilutive effect of stock options | 242 | 5,000 | 251 | 4,039 | ||||
Add: Dilutive effect of restricted stock | 5,467 | 7,627 | 3,565 | 5,512 | ||||
Weighted average common shares outstanding, as adjusted | 2,685,209 | 2,888,174 | 2,741,212 | 2,945,347 | ||||
Net income per common share, diluted (in dollars per share) | $ 0.19 | $ 0.16 | $ 0.55 | $ 0.42 |
Supplemental Disclosure for E_4
Supplemental Disclosure for Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
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 | 3,913 | 4,708 | ||
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 | ||
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 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
ESOP compensation expense | $ 36,000 | $ 40,000 | $ 112,000 | $ 121,000 |
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 under ESOP | 20 years | |||
Allocated shares | 39,847 | 39,847 | ||
Unallocated shares | 164,942 | 164,942 | ||
Value of unallocated shares of common stock | $ 2,200,000 | $ 2,200,000 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2019 | Jul. 27, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense related to nonvested stock options | $ 70,000 | $ 70,000 | ||||
Unrecognized compensation expense to be recognized over a weighted-average period | 1 year 4 months 24 days | |||||
Unrecognized compensation expense related to nonvested restricted shares | $ 344,000 | |||||
Weighted average vesting period | 2 years 3 months 18 days | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | 12,000 | $ 13,000 | $ 37,000 | $ 39,000 | ||
Weighted average vesting period | 7 years 3 months 18 days | |||||
Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 40,000 | $ 30,000 | $ 121,000 | $ 104,000 | ||
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 | |||||
Awards adjusted for stock options | 78,010 | |||||
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 | |||||
Number of restricted stock available for grant | 102,395 | |||||
Awards adjusted for stock options | 4,900 | |||||
2019 Equity Incentive Plan | Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock granted | 33,100 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans - Stock option activity (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Weighted Average Exercise Price | |
Weighted Average Remaining Contractual Term, options vested and expected to vest | 2 years 3 months 18 days |
Stock options | |
Number of shares | |
Outstanding at beginning of year | shares | 98,584 |
Exercised | shares | (7,869) |
Forfeited or expired | shares | (16,844) |
Outstanding at end of period | shares | 73,871 |
Vested and expected to vest | shares | 73,871 |
Exercisable at end of period | shares | 42,871 |
Weighted Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 13.42 |
Exercised | $ / shares | 13.11 |
Forfeited or expired | $ / shares | 13.53 |
Outstanding at end of period | $ / shares | 13.43 |
Vested and expected to vest | $ / shares | 13.43 |
Exercisable at end of period | $ / shares | $ 13.33 |
Weighted Average Remaining Contractual Term | 7 years 3 months 18 days |
Weighted Average Remaining Contractual Term, options vested and expected to vest | 7 years 3 months 18 days |
Weighted Average Remaining Contractual Term, options exercisable | 7 years 2 months 12 days |
Outstanding shares, Aggregate Intrinsic Value | $ | $ 7,000 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 7,000 |
Exercisable at end of period Aggregate Intrinsic Value | $ | $ 6,000 |
Stock-based Compensation Plan_4
Stock-based Compensation Plans - Nonvested restricted shares activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of shares | |
Nonvested at beginning of year | shares | 32,578 |
Forfeited | shares | (450) |
Nonvested at end of period | shares | 32,128 |
Weighted Average Grant-Date Fair Value | |
Nonvested at beginning of year | $ / shares | $ 14.53 |
Forfeited | $ / shares | 14.74 |
Nonvested at end of period | $ / shares | $ 14.52 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value on a recurring and nonrecurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 103,684 | $ 107,293 |
Liabilities measured at fair value | 0 | 0 |
Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 11,495 | 11,853 |
Agency CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 19,671 | 23,778 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 9,416 | |
U.S. Government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 1,818 | |
Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 61,284 | 71,662 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 103,684 | 107,293 |
Measured on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 103,684 | 107,293 |
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 | 11,495 | 11,853 |
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 | 19,671 | 23,778 |
Measured on a Recurring Basis | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 9,416 | |
Measured on a Recurring Basis | U.S. Government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 1,818 | |
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 | 61,284 | 71,662 |
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 | 103,684 | 107,293 |
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 | 11,495 | 11,853 |
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 | 19,671 | 23,778 |
Measured on a Recurring Basis | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 9,416 | |
Measured on a Recurring Basis | Level 2 | U.S. Government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 1,818 | |
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 | $ 61,284 | $ 71,662 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Securities available for sale | $ 103,684 | $ 107,293 |
Securities held to maturity | 18 | 21 |
Carrying value of mortgage loans pledged as security for advances | 142,473 | 122,568 |
FHLB stock | 1,778 | 778 |
Financial liabilities: | ||
Noninterest-bearing deposits | 27,565 | 28,602 |
Interest-bearing deposits | 174,250 | 168,282 |
Accrued interest payable | 31 | 11 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 4,010 | 16,379 |
Securities available for sale | 103,684 | 107,293 |
Securities held to maturity | 18 | 21 |
Carrying value of mortgage loans pledged as security for advances | 142,473 | 122,568 |
FHLB stock | 1,778 | 778 |
Accrued interest receivable | 1,080 | 997 |
Financial liabilities: | ||
Noninterest-bearing deposits | 27,565 | 28,602 |
Interest-bearing deposits | 174,250 | 168,282 |
Advance from FHLB | 31,000 | 10,000 |
Accrued interest payable | 31 | 11 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 4,010 | 16,379 |
Financial liabilities: | ||
Noninterest-bearing deposits | 28,602 | |
Level 2 | ||
Financial assets: | ||
Securities available for sale | 103,684 | 107,293 |
Securities held to maturity | 18 | 21 |
Accrued interest receivable | 1,080 | 997 |
Financial liabilities: | ||
Advance from FHLB | 31,000 | 10,162 |
Accrued interest payable | 31 | 11 |
Level 3 | ||
Financial assets: | ||
Carrying value of mortgage loans pledged as security for advances | 136,459 | 123,158 |
Financial liabilities: | ||
Interest-bearing deposits | $ 172,445 | $ 168,168 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Transfers in or out of Level 3 financial assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Real estate held for sale | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Recognized charges write down | $ 0 | $ 0 | $ 0 | $ 0 | |
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% | 10% | 10% | ||
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 273 | $ 280 | $ 838 | $ 830 |
Increase in cash surrender value of life insurance | 14 | 16 | 43 | 47 |
Gain on life insurance | 36 | |||
Other income | 8 | 5 | 27 | 23 |
Other noninterest income | 22 | 21 | 106 | 70 |
Total noninterest income | 295 | 301 | 944 | 900 |
Deposit account service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 100 | 87 | 271 | 207 |
Brokered loan fees. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 25 | 48 | 126 | 199 |
ATM and debit card fee income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 144 | 138 | 432 | 412 |
Other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 4 | $ 7 | $ 9 | $ 12 |