Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 01, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | Rhinebeck Bancorp, Inc. | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | RBKB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 11,133,290 | ||
Entity Public Float | $ 27,601,220 | ||
Entity Central Index Key | 0001751783 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 93,485 | $ 11,978 |
Available for sale securities (at fair value) | 102,933 | 114,832 |
Loans receivable (net of allowance for loan losses of $11,633 and $5,954, respectively) | 873,813 | 793,471 |
Federal Home Loan Bank stock | 2,787 | 3,435 |
Accrued interest receivable | 3,819 | 2,903 |
Cash surrender value of life insurance | 18,877 | 18,457 |
Deferred tax assets (net of valuation allowance of $1,760 and $1,202, respectively) | 3,703 | 2,255 |
Premises and equipment, net | 18,839 | 18,338 |
Other real estate owned | 139 | 1,417 |
Goodwill | 1,410 | 1,410 |
Intangible assets, net | 199 | 241 |
Other assets | 8,825 | 5,209 |
Total assets | 1,128,829 | 973,946 |
Deposits | ||
Noninterest bearing | 244,344 | 179,236 |
Interest bearing | 685,020 | 594,107 |
Total deposits | 929,364 | 773,343 |
Mortgagors’ escrow accounts | 8,494 | 8,106 |
Advances from the Federal Home Loan Bank | 50,674 | 66,304 |
Subordinated debt | 5,155 | 5,155 |
Accrued expenses and other liabilities | 18,643 | 11,156 |
Total liabilities | 1,012,330 | 864,064 |
Stockholders' Equity | ||
Preferred stock (par value $0.01 per share; 5,000,000 authorized, no shares issued) | ||
Common stock (par value $0.01 per share; 25,000,000 authorized, 11,133,290 issued and outstanding) | 111 | 111 |
Additional paid-in capital | 46,038 | 45,869 |
Unearned common stock held by the employee stock ownership plan ("ESOP") | (3,928) | (4,146) |
Retained earnings | 78,069 | 72,152 |
Accumulated other comprehensive loss: | ||
Net unrealized gain (loss) on available for sale securities, net of taxes | 993 | (195) |
Defined benefit pension plan, net of taxes | (4,784) | (3,909) |
Total accumulated other comprehensive loss | (3,791) | (4,104) |
Total stockholders' equity | 116,499 | 109,882 |
Total liabilities and stockholders' equity | $ 1,128,829 | $ 973,946 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses on loans receivable | $ 11,633 | $ 5,954 |
Deferred tax valuation allowance | $ 1,760 | $ 1,202 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, share authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common Stock, shares issued | 11,133,290 | 11,133,290 |
Common stock, shares outstanding | 11,133,290 | 11,133,290 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 42,215 | $ 38,255 |
Interest and dividends on securities | 2,133 | 2,671 |
Other income | 47 | 60 |
Total interest and dividend income | 44,395 | 40,986 |
Interest Expense | ||
Interest expense on deposits | 6,671 | 6,989 |
Interest expense on borrowings | 1,348 | 1,750 |
Total interest expense | 8,019 | 8,739 |
Net interest income | 36,376 | 32,247 |
Provision for loan losses | 7,138 | 2,460 |
Net interest income after provision for loan losses | 29,238 | 29,787 |
Noninterest Income | ||
Service charges on deposit accounts | 2,276 | 2,824 |
Net realized loss on sales and calls of securities | (29) | (69) |
Net gain on sales of loans | 3,762 | 1,171 |
Increase in cash surrender value of life insurance | 380 | 398 |
Net gain from sale of other real estate owned | 498 | |
Other real estate owned income | 28 | |
Gain on disposal of premises and equipment | 13 | |
Investment advisory income | 1,288 | 944 |
Other | 115 | 334 |
Total noninterest income | 8,303 | 5,630 |
Noninterest Expense | ||
Salaries and employee benefits | 16,797 | 15,631 |
Occupancy | 3,545 | 3,490 |
Data processing | 1,399 | 1,340 |
Professional fees | 1,648 | 1,386 |
Marketing | 506 | 666 |
FDIC deposit insurance and other insurance | 797 | 478 |
Other real estate owned expense | 154 | 123 |
Amortization of intangible assets | 42 | 43 |
Other | 5,177 | 4,768 |
Total noninterest expense | 30,065 | 27,925 |
Income before income taxes | 7,476 | 7,492 |
Provision for income taxes | 1,559 | 1,529 |
Net income | $ 5,917 | $ 5,963 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.55 | $ 0.56 |
Diluted (in dollars per share) | $ 0.55 | $ 0.56 |
Weighted average shares outstanding, basic | 10,729,596 | 10,707,776 |
Weighted average shares outstanding, diluted | 10,739,841 | 10,707,776 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 5,917 | $ 5,963 |
Other Comprehensive Income: | ||
Unrealized holding gains arising during the period | 1,476 | 2,944 |
Reclassification adjustment for losses included in net realized loss on sales and calls of securities on the consolidated statements of income | 29 | 69 |
Net unrealized gains on available for sale securities | 1,505 | 3,013 |
Tax effect | (317) | (632) |
Unrealized gains on available for sale securities, net of tax | 1,188 | 2,381 |
Defined benefit pension plan: | ||
Actuarial (losses) gains arising during the period | (1,393) | 322 |
Reclassification adjustment for amortization of net actuarial losses | 285 | 346 |
Total | (1,108) | 668 |
Tax effect | 233 | (141) |
Defined benefit pension plan (losses) gains, net of tax | (875) | 527 |
Other comprehensive income | 313 | 2,908 |
Total Comprehensive Income | $ 6,230 | $ 8,871 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unearned common stock held by the ESOP | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2018 | $ 100 | $ 66,189 | $ (7,012) | $ 59,277 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,963 | 5,963 | ||||
Other comprehensive income (loss) | 2,908 | 2,908 | ||||
Common Stock and proceeds of offering | $ 111 | 45,744 | 45,855 | |||
Unearned common stock held by ESOP | $ (4,364) | (4,364) | ||||
ESOP shares committed to be allocated | 25 | 218 | 243 | |||
Balance at Dec. 31, 2019 | 111 | 45,869 | (4,146) | 72,152 | (4,104) | 109,882 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,917 | 5,917 | ||||
Other comprehensive income (loss) | 313 | 313 | ||||
ESOP shares committed to be allocated | (48) | 218 | 170 | |||
Share-based compensation expense | 217 | 217 | ||||
Balance at Dec. 31, 2020 | $ 111 | $ 46,038 | $ (3,928) | $ 78,069 | $ (3,791) | $ 116,499 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,917 | $ 5,963 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and accretion of premiums and discounts on investments, net | 563 | 244 |
Net realized loss on sales and calls of securities | 29 | 69 |
Net realized gain on sale of other real estate owned | (498) | |
Provision for loan losses | 7,138 | 2,460 |
Loans originated for sale | (94,995) | (48,204) |
Proceeds from sale of loans | 98,723 | 49,198 |
Net gain on sale of loans | (3,762) | (1,171) |
Amortization of intangible assets | 42 | 43 |
Depreciation and amortization | 1,379 | 1,291 |
Gain on disposal of premises and equipment | (13) | |
Deferred income tax benefit | (1,531) | (94) |
Increase in cash surrender value of insurance | (380) | (398) |
Increase in accrued interest receivable | (916) | (380) |
Expense of earned ESOP shares | 170 | 243 |
Share-based compensation expense | 217 | |
(Increase) decrease in other assets | (3,616) | 1,133 |
Increase in accrued expenses and other liabilities | 6,378 | 1,714 |
Net cash provided by operating activities | 14,845 | 12,111 |
Cash Flows from Investing Activities | ||
Proceeds from sales and calls of securities | 6,996 | 11,938 |
Proceeds from maturities and principal repayments of securities | 45,031 | 18,322 |
Purchases of securities | (39,215) | (41,078) |
Net sales (purchases) of FHLB Stock | 648 | (1,552) |
Net increase in loans | (89,304) | (117,353) |
Purchases of bank owned life insurance | (40) | (40) |
Purchases of bank premises and equipment | (1,867) | (2,589) |
Net increase of other real estate owned | (225) | (14) |
Proceeds from sale of other real estate owned | 3,859 | 282 |
Net cash used in investing activities | (74,117) | (132,084) |
Cash Flows from Financing Activities | ||
Net increase in demand deposits, NOW, money market and savings accounts | 174,027 | 25,972 |
Net (decrease) increase in time deposits | (18,006) | 62,953 |
Decrease in mortgagors' escrow accounts | 388 | 381 |
Net (decrease) increase in short-term debt | (4,302) | 13,209 |
Net (decrease) increase in long-term debt | (11,328) | 21,497 |
Net decrease in other borrowings | (5,000) | |
Proceeds of stock subscriptions | 9,814 | |
Return of unfulfilled stock subscriptions | (41,082) | |
Offering expenses | (1,898) | |
Loan to ESOP | (4,364) | |
Return of capital to Rhinebeck Bancorp, MHC | (121) | |
Net cash provided by financing activities | 140,779 | 81,361 |
Net increase (decrease) in cash and due from banks | 81,507 | (38,612) |
Cash and Due from Banks | ||
Beginning balance | 11,978 | 50,590 |
Ending balance | 93,485 | 11,978 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for interest | 8,310 | 8,626 |
Cash paid for income taxes | 3,402 | $ 1,690 |
Noncash Investing and Financing Activities | ||
Transfer of loans to other real estate owned | $ 1,858 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Significant Accounting Policies | |
Nature of Business and Significant Accounting Policies | 1. Nature of Business and Significant Accounting Policies The consolidated financial statements include accounts of Rhinebeck Bancorp, Inc. (the “Company”), a stock holding company, and its wholly-owned subsidiary, Rhinebeck Bank (the “Bank”), a New York chartered stock savings bank and its wholly-owned subsidiaries. The primary purpose of the Company is to act as a holding company for the Bank. The Bank provides a full range of banking and financial services to consumer and commercial customers through its eleven branches and two representative offices located in Dutchess, Ulster, Orange, and Albany counties. Financial services including investment advisory and financial product sales are offered through a division of the Bank doing business as Rhinebeck Asset Management (“RAM”). A description of the Company’s significant accounting policies are presented below. Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for lease and loan losses, fair value measurements, the evaluation of investment securities for other-than-temporary impairment, the evaluation of goodwill for impairment, the valuation of deferred tax assets, the determination of pension obligations and contingent liabilities. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. As a result of the reorganization, the consolidation refers to the Company and the Bank for the periods after January 16, 2019 and Rhinebeck Bancorp, MHC, a New York chartered mutual holding company, and the Bank for the periods prior to January 16, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, Columbia, Putnam and Albany. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ abilities to repay their loans is dependent on the economic conditions in the territories in which the Company operates. Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Investment in Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase discounts are recognized in interest income using the interest method over the contractual terms of the security. Purchase premiums are recognized in interest income using the interest method to the instrument’s earliest call date. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities for other-than temporary impairment on a regular basis. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the credit standing of the issuer. When the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its cost basis, the credit loss determined due to a permanent impairment will be recognized in earnings. The credit loss component recognized is identified as the amount of future principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow estimates discounted at the applicable original yield of the security. Investment in FHLB Stock The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for lease and loan losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer automobile and installment loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on non-accrual status or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Lease and Loan Losses The allowance for lease and loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines all or part of the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for lease and loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the 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 calculation methodology involves segregation of the total loan portfolio into segments. The Company’s loans receivable portfolio is comprised of the following segments: commercial real estate, residential real estate, commercial and industrial and consumer. The segments of the Company’s loans receivable portfolio are further disaggregated into classes based on identified risks within those segments. This allows management to better monitor risk and performance. Commercial real estate loans are separated into the three classes: construction, non-residential and multi-family. Non-residential and multi-family loans include long-term loans financing commercial properties and include both owner and non-owner occupied properties. Construction loans, which include land loans, are comprised mostly of non-owner occupied projects, whereby the property is generally under development and tends to have more risk than the owner occupied loans. The Company grants loans for the construction of residential homes, residential developments and land development projects. Repayment of these loans is mostly dependent upon either the ongoing cash flows of the borrowing entity or the resale or lease of the subject property. The underlying cash flows generated by the properties may be negatively impacted by increased vacancy rates due to a downturn in the economy. Residential real estate loans are secured by the borrower’s residential real estate generally in a first lien position. Residential mortgages have varying loan interest rates depending on the financial condition of the borrower, the loan to value ratio and the term of the loan. The overall health of the economy, reflected in unemployment rates and housing prices, will have an effect on the credit quality of this segment. The commercial and industrial loan segment consists of loans made for purposes of financing the activities of commercial customers. The assets financed through commercial and industrial loans are used within the business for its ongoing operations. Repayment of commercial and industrial loans predominately comes from the cash flows of the business or the ongoing operations of assets. A weakened economy and resultant decreased consumer spending could have a negative impact on this line of business. Consumer loans are classified into the following three classes: indirect automobile loans, home equity loans and other consumer loans. Indirect automobile loans are secured by the borrowers’ automobiles and originated through the Company’s relationships with the automobile dealers in the various counties in the Company’s service area. Home equity loans are secured by the borrowers’ residential real estate in a first or second lien position. Other direct consumer loans may be unsecured. The overall health of the economy, reflected in unemployment rates and housing prices, will have an impact on the credit quality of this segment. The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and, in most cases, extends credit of up to 80% of the market value of the collateral at the date of the credit extension, depending on the borrower’s creditworthiness and the type of collateral. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial and industrial and commercial real estate loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, automobiles, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower, past experience with the borrower, the nature of the collateral, competitive offerings and/or the term of the loan. The market value of collateral is monitored on an ongoing basis and additional collateral may be obtained when warranted. While collateral provides some assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrower’s ability to generate continuing sufficient cash flows. The Company’s policy for collateral requires that, generally, the amount of the loan may not exceed 90% of the original appraised value of the property. Private mortgage insurance is usually required for that portion of the loan in excess of 80% of the appraised value of the property. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated at least quarterly or when credit deficiencies arise, such as when loan payments are delinquent. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for lease and loan losses. Loans not classified are rated pass. The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such impaired loans, an allowance is established when the discounted cash flows (or observable market price or collateral value if the loan is collateral dependent) of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans, segregated generally by loan type and is based on historical loss experience with adjustments for qualitative factors which are made after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss data. These qualitative risk factors include: 1. Changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices. 2. Changes in international, national, regional, and local conditions. 3. Changes in the nature and volume of the portfolio and terms of loans. 4. Changes in the experience, depth, and ability of lending management. 5. Changes in the volume and severity of past due loans and other similar conditions. 6. Changes in the quality of the organization’s loan review system. 7. Changes in the value of underlying collateral for collateral dependent loans. 8. The existence and effect of any concentrations of credit and changes in the levels of such concentrations. 9. The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. In the last quarter of 2019, Management employed software in order to upgrade our allowance for lease and loan loss (“ALLL”) analysis. For several months we ran the software in tandem with our then present evaluation system in order to understand the similarities and differences between the approaches and to ascertain that the switch would present reasonable and consistent results in keeping with the prior analysis. At year-end 2019, we made the switch to the new software system as the basis for our ALLL analysis. The outcome led us to a result that was more specific in definition, robust from a qualitative analysis perspective, and detailed in specific support for the final allocated outcomes. This change in methodology did not materially change the amount of the overall reserve but did have some impact on allocated reserves between the lines of business, most specifically evident with the increased reserve amount allocated to the indirect automobile portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls are not necessarily classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loans’ collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the size of the loan, age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. If liquidation is expected, appraised values are discounted for expected sales costs to arrive at the estimated recognizable value of the collateral, which is considered to be the estimated fair value. The recorded investment in consumer mortgages and loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $636 and $781 on December 31, 2020 and 2019, respectively. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan which is then identified as a TDR. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for lease and loan losses. The Company identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, negative trends, or specific conditions may result in a payment default in the near future. Regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for lease and loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for lease and loan losses is adequate. Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in noninterest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. Mortgage service rights are recorded and amortized over the life of the loan. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance and charged to noninterest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Revenue Recognition The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: · Fees for services to customers include service charges on deposits which are included as liabilities in the consolidated statements of financial condition and consist of transaction-based fees: stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, wire fees, official check fees and overdraft services fees for various retail and business checking customers. These fees are charged as earned on the day of the transaction or within the month of the service. Service charges on deposits are withdrawn directly from the customer’s account balance. ATM and debit card fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Sales of checks to depositors earn fees as a contractual discount to the retail price of the sale from a third-party provider. These fees earned are remitted by the third-party to the Company quarterly. · The Company earns interchange fee income from credit/debit cardholder transactions conducted through MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. · The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed; at such time, the OREO asset is derecognized and the gain or loss on the sale is recorded. Rental income received from leased OREO property is recognized during the month it is earned. · Retail brokerage and advisory fee income is accrued monthly to properly record the revenues in the month they are earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Investments into mutual funds and annuities generate fees that are recorded as revenue at the time of the initial sale. In subsequent years the mutual funds and variable annuities generate recurring fees (referred to as 12B‑1 fees) that are paid in advance on the anniversary of the original transaction. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e., trade date). Life insurance products are sold on a commission basis that generates a fee that is recorded as revenue within the month of the approved transaction. Other income includes rental income, mortgage origination and service fees and late fees on serviced mortgages. All items are recorded as revenue within the month that the service is provided. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. Other real estate owned included $0 and $935 of residential real estate and $139 and $482 of commercial property on December 31, 2020 and 2019, respectively. Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Rent expense is charged to operations over the expected lease term using the straight-line method. Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and directors. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of noninterest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. These assets are amortized on a straight-line basis over the related estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. Share-Based Compensation Plans The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide service for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. Management estimated the expected life of the options using the simplified method as allowed under generally accepted accounting principles. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract at the date of grant. Forfeitures are recognized as they occur. Employee Stock Ownership Plan Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated statements of financial condition. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than n |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Dec. 31, 2020 | |
Available for Sale Securities | |
Available for Sale Securities | 2. Available for Sale Securities The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: December 31, 2020 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. government agency mortgage-backed securities–residential $ 88,197 $ 1,350 $ (277) $ 89,270 U.S. government agency securities 7,013 148 — 7,161 Municipal securities (1) 1,445 31 — 1,476 Corporate bonds 4,400 49 (3) 4,446 Other 621 — (41) 580 Total $ 101,676 $ 1,578 $ (321) $ 102,933 December 31, 2019 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. government agency mortgage-backed securities–residential $ 98,842 $ 464 $ (828) $ 98,478 U.S. government agency securities 12,049 53 (26) 12,076 Municipal securities (1) 1,384 17 (5) 1,396 Corporate bonds 2,250 25 (2) 2,273 Other 555 54 — 609 Total $ 115,080 $ 613 $ (861) $ 114,832 (1) The issuers of municipal securities are all within New York State. The following table presents the fair value and unrealized losses of the Company’s available for sale securities with gross unrealized losses aggregated by the length of time the individual securities have been in a continuous unrealized loss position: December 31, 2020 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. government agency mortgage-backed securities-residential $ 30,243 $ (269) $ 293 $ (8) $ 30,536 $ (277) Corporate Bonds 747 (3) — — 747 (3) Other 522 (41) — — 522 (41) Total $ 31,512 $ (313) $ 293 $ (8) $ 31,805 $ (321) December 31, 2019 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. government agency mortgage-backed securities-residential $ 35,612 $ (302) $ 27,252 $ (526) $ 62,864 $ (828) U.S. government agency securities — — 7,001 (26) 7,001 (26) Municipal Securities 490 (5) — — 490 (5) Corporate Bonds 749 (2) — — 749 (2) Total $ 36,851 $ (309) $ 34,253 $ (552) $ 71,104 $ (861) At December 31, 2020 and 2019, the Company had 36 and 80 individual available-for-sale securities with unrealized losses totaling $321 and $861, respectively, with an aggregate depreciation of 1.01% and 1.21%, respectively, from the Company’s amortized cost. Management believes that none of the unrealized losses on available for sale securities are other-than-temporary because substantially all of the unrealized losses in the Company’s investment portfolio relate to market interest rate changes on debt and mortgage-backed securities issued either directly by the government or from government sponsored enterprises. Because the Company does not intend to sell the securities and it is not likely that the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired either at December 31, 2020 or 2019. The amortized cost and fair value of available for sale debt securities at December 31, 2020 and 2019, by contractual maturities, are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary: December 31, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 102 $ 102 $ 175 $ 175 After 1 but within 5 years 2,155 2,155 7,027 7,001 After 5 but within 10 years 9,946 10,162 7,806 7,899 After 10 years 655 664 675 670 Total Maturities 12,858 13,083 15,683 15,745 Mortgage-backed securities 88,197 89,270 98,842 98,478 Other 621 580 555 609 Total $ 101,676 $ 102,933 $ 115,080 $ 114,832 At December 31, 2020 and 2019, available for sale securities with a carrying value of $18,123 and $23,782, respectively, were pledged to secure Federal Home Loan Bank of New York borrowings. In addition, $1,059 and $726 of available for sale securities, respectively, were pledged to secure borrowings at the Federal Reserve Bank of New York (“FRBNY”). Proceeds from the sale of available for sale securities and calls aggregated $6,996 and $11,938 for the years ended December 31, 2020 and 2019, respectively. There were no gross gains during the periods ended December 31, 2020 and December 31, 2019. During the periods ended December 31, 2020 and 2019, there were gross losses of $29 and $69, respectively, realized on the sales of securities. |
Loans and Allowance for Lease a
Loans and Allowance for Lease and Loan Losses | 12 Months Ended |
Dec. 31, 2020 | |
Loans and Allowance for Lease and Loan Losses | |
Loans and Allowance for Lease and Loan Losses | 3. Loans and Allowance for Lease and Loan Losses A summary of the Company’s loan portfolio is as follows: December 31, December 31, 2020 2019 Commercial real estate loans: Construction $ 5,392 $ 20,354 Non-residential 248,349 228,157 Multi-family 30,379 20,129 Residential real estate loans 39,239 43,726 Commercial and industrial loans (1) 154,016 90,554 Consumer loans: Indirect automobile 376,260 360,569 Home equity 14,165 16,276 Other consumer 8,816 9,752 Total gross loans 876,616 789,517 Net deferred loan costs 8,830 9,908 Allowance for loan losses (11,633) (5,954) Total net loans $ 873,813 $ 793,471 (1) Includes $75,366 in SBA PPP loans at December 31, 2020. At December 31, 2020 and 2019, the unpaid principal balances of loans held for sale, included in the residential real estate category above, were $2,718 and $2,684, respectively. The following tables present the classes of the loan portfolio summarized by the pass category and the criticized categories of special mention and substandard within the internal risk system: December 31, 2020 Pass Special Mention Substandard Total Commercial real estate: Construction $ 5,392 $ — $ — $ 5,392 Non-residential 240,778 5,468 2,103 248,349 Multifamily 30,379 — — 30,379 Residential real estate 36,597 — 2,642 39,239 Commercial and industrial 147,748 5,395 873 154,016 Consumer: Indirect automobile 375,270 — 990 376,260 Home equity 13,819 — 346 14,165 Other consumer 8,768 — 48 8,816 Total $ 858,751 $ 10,863 $ 7,002 $ 876,616 December 31, 2019 Pass Special Mention Substandard Total Commercial real estate: Construction $ 20,354 $ — $ — $ 20,354 Non-residential 219,485 4,285 4,387 228,157 Multifamily 19,744 — 385 20,129 Residential real estate 41,385 — 2,341 43,726 Commercial and industrial 88,874 597 1,083 90,554 Consumer: Indirect automobile 359,616 — 953 360,569 Home equity 15,861 — 415 16,276 Other consumer 9,741 — 11 9,752 Total $ 775,060 $ 4,882 $ 9,575 $ 789,517 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The past due status of all classes of loans is determined based on contractual due dates for loan payments. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: December 31, 2020 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 5,392 $ — $ — $ — $ 5,392 $ — Non-residential 244,387 1,985 33 1,944 248,349 1,944 Multifamily 30,379 — — — 30,379 — Residential real estate 36,581 1,351 138 1,169 39,239 2,641 Commercial and industrial 151,771 1,551 511 183 154,016 366 Consumer: Indirect automobile 367,929 6,321 1,063 947 376,260 990 Home equity 13,506 310 101 248 14,165 346 Other consumer 8,663 98 7 48 8,816 48 Total $ 858,608 $ 11,616 $ 1,853 $ 4,539 $ 876,616 $ 6,335 December 31, 2019 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,354 $ — $ — $ — $ 20,354 $ — Non-residential 222,953 409 884 3,911 228,157 3,911 Multifamily 19,744 — — 385 20,129 385 Residential real estate 42,403 427 116 780 43,726 2,341 Commercial and industrial 89,401 288 198 667 90,554 905 Consumer: Indirect automobile 351,840 6,494 1,294 941 360,569 953 Home equity 15,726 142 91 317 16,276 415 Other consumer 9,492 201 48 11 9,752 11 Total $ 771,913 $ 7,961 $ 2,631 $ 7,012 $ 789,517 $ 8,921 There were no loans greater than 90 days past due and still accruing as of December 31, 2020 or 2019. The following tables summarize information in regard to impaired loans by loan portfolio class: December 31, 2020 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 1,944 $ 2,973 $ — $ 3,086 Multifamily — — — 184 Residential real estate 2,641 3,086 — 2,554 Commercial and industrial 345 586 — 426 Consumer: Indirect automobile 397 467 — 293 Home equity 346 351 — 449 Other consumer — — — 21 Total $ 5,673 $ 7,463 $ — $ 7,013 With an allowance recorded: Commercial and industrial $ 21 $ 21 $ 11 $ 30 Consumer: Indirect automobile 593 613 135 591 Other consumer 48 49 7 13 Total $ 662 $ 683 $ 153 $ 634 Total: Commercial real estate: Non-residential $ 1,944 $ 2,973 $ — $ 3,086 Multifamily — — — 184 Residential real estate 2,641 3,086 — 2,554 Commercial and industrial 366 607 11 456 Consumer: Indirect automobile 990 1,080 135 884 Home equity 346 351 — 449 Other consumer 48 49 7 34 Total $ 6,335 $ 8,146 $ 153 $ 7,647 December 31, 2019 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 3,911 $ 5,733 $ — $ 3,209 Multifamily 385 409 — 192 Residential real estate 2,341 2,850 — 2,313 Commercial and industrial 905 1,109 — 601 Consumer: Indirect automobile 607 740 — 441 Home equity 415 467 — 307 Other consumer 11 11 — 10 Total $ 8,575 $ 11,319 $ — $ 7,073 With an allowance recorded: Consumer: Indirect automobile $ 346 $ 376 $ 107 $ 262 Total $ 346 $ 376 $ 107 $ 262 Total: Commercial real estate: Non-residential $ 3,911 $ 5,733 $ — $ 3,209 Multifamily 385 409 — 192 Residential real estate 2,341 2,850 — 2,313 Commercial and industrial 905 1,109 — 601 Consumer: Indirect automobile 953 1,116 107 703 Home equity 415 467 — 307 Other consumer 11 11 — 10 Total $ 8,921 $ 11,695 $ 107 $ 7,335 The Company does not generally recognize interest income on a loan in an impaired status. At December 31, 2020 and 2019, the same three loans totaling $1,571 and $1,659, respectively, which were included in impaired loans, were identified as TDRs. The initial modifications of these loans took place prior to 2019 and included two residential mortgages and one home equity loan that included both rate and term modifications. In 2019 and 2020, there were no new TDRs. Interest income on impaired loans was immaterial during each of the periods presented. At December 31, 2020 and 2019, all loans were performing in accordance with their restructured terms. At December 31, 2020 and 2019, the Company had no commitments to advance additional funds to borrowers under TDR loans. The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying statements of financial condition. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At December 31, 2020 and 2019, the Company was servicing loans for participants aggregating $4,291 and $4,645, respectively. The Company services certain loans that it has sold without recourse to third parties. The aggregate balances of loans serviced for others were $300,700 and $270,730 as of December 31, 2020 and 2019, respectively. The balance of capitalized servicing rights, included in other assets at December 31, 2020 and 2019, were $2,390 and $2,226, respectively. Fair value exceeds carrying value. No impairment charges related to servicing rights were recognized during the years ended December 31, 2020 or 2019. The following tables summarize the segments of the loan portfolio and the allowance for lease and loan losses, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment and the activity in the allowance for lease and loan losses for the periods then ended: Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2020 Allowance for loan losses: Beginning balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Provision for loan losses 3,341 18 585 3,166 28 7,138 Loans charged-off — — (153) (2,307) (47) (2,507) Recoveries 4 — 15 998 31 1,048 Ending balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 Ending balance: Loans deemed impaired $ — $ — $ 11 $ 135 $ 7 $ 153 Loans not deemed impaired $ 5,354 $ 117 $ 1,039 $ 4,839 $ 131 $ 11,480 Loan receivables: Ending balance $ 284,120 $ 39,239 $ 154,016 $ 376,260 $ 22,981 $ 876,616 Ending balance: Loans deemed impaired $ 1,944 $ 2,641 $ 366 $ 990 $ 394 $ 6,335 Loans not deemed impaired $ 282,176 $ 36,598 $ 153,650 $ 375,270 $ 22,587 $ 870,281 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2019 Allowance for loan losses: Beginning balance $ 1,080 $ 320 $ 1,542 $ 2,915 $ 789 $ 6,646 Provision for loan losses 2,679 (302) (645) 1,332 (604) 2,460 Loans charged-off (1,750) — (312) (2,083) (132) (4,277) Recoveries — 81 18 953 73 1,125 Ending balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Ending balance: Loans deemed impaired $ — $ — $ — $ 107 $ — $ 107 Loans not deemed impaired $ 2,009 $ 99 $ 603 $ 3,010 $ 126 $ 5,847 Loan receivables: Ending balance $ 268,640 $ 43,726 $ 90,554 $ 360,569 $ 26,028 $ 789,517 Ending balance: Loans deemed impaired $ 4,296 $ 2,341 $ 905 $ 953 $ 426 $ 8,921 Loans not deemed impaired $ 264,344 $ 41,385 $ 89,649 $ 359,616 $ 25,602 $ 780,596 In the normal course of business, the Company grants loans to officers, directors and other related parties. Balances and activity of such loans during the years presented were not material. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Premises and Equipment | |
Premises and Equipment | 4. Premises and Equipment Premises and equipment are summarized as follows: December 31, December 31, 2020 2019 Land $ 3,732 $ 3,690 Buildings and improvements 26,431 25,371 Furniture, fixtures and equipment 13,042 12,090 Construction in process 93 267 Total 43,298 41,418 Less accumulated depreciation (24,459) (23,080) Net $ 18,839 $ 18,338 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | 5. Deposits Deposits balances are summarized as follows: December 31, December 31, 2020 2019 Noninterest bearing demand deposits $ 244,344 $ 179,236 Interest bearing accounts: NOW 141,580 95,572 Savings 157,414 121,139 Money market 185,383 158,747 Time certificates of deposit 200,643 218,649 Total interest bearing accounts 685,020 594,107 Total deposits $ 929,364 $ 773,343 Included in time certificates of deposit at December 31, 2020 and 2019 were reciprocal deposits totaling $30,012 and $21,270, respectively, with original maturities of one to three years. Time certificates of deposit in denominations of $250 or greater were $34,565 and $44,605 as of December 31, 2020 and 2019, respectively. Contractual maturities of time certificates of deposit at December 31, 2020 are summarized below: December 31, 2020 Within 1 year $ 147,627 1 – 2 years 29,180 2 – 3 years 9,404 3 – 4 years 6,826 4 – 5 years 7,606 Total $ 200,643 |
Long-Term Debt and FHLB Stock
Long-Term Debt and FHLB Stock | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt and FHLB Stock | |
Long-Term Debt and FHLB Stock | 6. Long-Term Debt and FHLB Stock FHLB Borrowings and Stock The Company is a member of the FHLB. At December 31, 2020 and 2019, the Company had access to a preapproved secured line of credit with the FHLB of $564,330 and $486,906, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At December 31, 2020 and 2019, the Company had pledged assets of $175,011 and $168,230, respectively. At December 31, 2020 and 2019, the Company had outstanding overnight line of credit balances with FHLB of $0 and $22,500, respectively. These borrowings mature the following business day. At December 31, 2020, the Company also had structured borrowings in the amount of $50,674. The outstanding principal amounts and the related terms and rates at December 31, 2020 were as follows: Term Principal Maturity Rate Due in one year Long term 1 year bullet 10,000 March 26, 2021 0.80 % 10,000 — 2 year amortizing 2,548 May 17, 2021 2.53 % 2,548 — 2 year bullet 10,000 May 17, 2021 2.46 % 10,000 — 3 year amortizing 1,728 May 17, 2021 2.92 % 1,728 — 3 year amortizing 5,093 May 16, 2022 2.49 % 3,374 1,719 3 year bullet 10,000 May 16, 2022 2.44 % — 10,000 3 year amortizing 11,305 February 28, 2023 1.32 % 4,983 6,322 Total $ 50,674 Weighted Average Rate 1.90 % $ 32,633 $ 18,041 The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Company evaluates for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either December 31, 2020 or 2019. Federal Reserve Bank Borrowings In April 2020, the Bank became a participant in the Federal Reserve’s Payroll Protection Program Lending Facility, which allowed us to present PPP loans as collateral for 100% principal credit at the Federal Reserve’s discount window. The term of these loans mirrored the actual maturity of the underlying collateral and had a fixed interest rate of 0.35%. In April 2020, we borrowed $70,100, which was repaid in full on July 2, 2020. Subordinated Debt During 2005, Rhinebeck Bancorp, MHC formed RSB Capital Trust I (“Trust”), which was transferred to the Company, which owns all of the Trust’s common securities. The Trust has no independent assets or operations and was created for the sole purpose of issuing trust securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures issued by the Company. Trust preferred securities are currently considered Tier 1 capital for purposes of determining the Bank’s capital ratios. The trust securities also bear interest at 3-month LIBOR plus 2.00%. The duration of the Trust is 30 years. The subordinated debt securities of $5,155 are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has entered into a guarantee, which together with its obligations under the subordinated debt securities and the declaration of trust governing the Trust, including its obligations to pay costs, expenses, debts and liabilities, other than trust securities, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at 3-month LIBOR plus 2.00% (2.21% at December 31, 2020 and 3.91% at December 31, 2019) mature on May 23, 2035. Other Borrowings The Company also has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at December 31, 2020 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 7. Income Taxes The components of the provision for income taxes are as follows: Years Ended December 31, 2020 2019 Current expense: Federal $ 3,078 $ 1,621 State 12 2 Total 3,090 1,623 Deferred expense: Federal (1,531) (94) Total provision for income taxes $ 1,559 $ 1,529 The following is a reconciliation between the expected federal statutory income tax rate of 21% (2020 and 2019) and the Company’s actual income tax expense and rate: Years ended December 31, 2020 2019 Provision at statutory rate $ 1,570 % $ 1,573 % Tax exempt income (79) % (84) % State income taxes, net of federal income tax benefit 12 % 12 % Other, net 56 % 28 % Effective income tax and rate $ 1,559 % $ 1,529 % The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 are presented below: December 31, 2020 2019 Deferred tax assets: Allowance for loan losses $ 3,141 $ 1,608 Deferred expenses 47 58 Deferred compensation 1,271 879 Unrecognized pension liability 1,272 1,038 Postretirement liability 954 932 Deferred loss on OREO 83 187 Deferred loan fees 158 — Unrealized loss on securities — 53 State tax NOLs 990 870 Other 324 201 Gross deferred tax assets 8,240 5,826 Deferred tax liabilities: Prepaid expenses (217) (209) Prepaid pension (1,276) (1,248) Deferred loan fees — (207) Depreciation and amortization (375) (104) Unrealized gain on securities (264) — Mortgage servicing rights (645) (601) Gross deferred tax liabilities (2,777) (2,369) Net deferred tax asset 5,463 3,457 Deferred tax valuation allowance (1,760) (1,202) Deferred tax assets, net of allowance $ 3,703 $ 2,255 Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the relative federal or state tax law to the taxable income determined. The Company determines deferred income taxes using the liability (or balance sheet method). Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases at the currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. Deferred income tax expense or benefit results from changes in deferred tax assets (“DTAs”) and liabilities between periods. DTAs are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. As New York State (“NYS”) tax law provides for a permanent deduction of income from “qualified” loans for community banks, management determined that the Company would most likely not pay NYS income tax but will rather generate NYS net operating losses (“NOLs”) for the foreseeable future. In management’s opinion, it is expected that in future years there will be no opportunity to reverse the NYS DTAs to provide a reduction in NYS income taxes, so the Company established a full valuation allowance to recognize the fully diminished value of the NYS DTAs. The Company has NYS NOLs of $990 that expire from 2034 through 2040. Retained earnings at December 31, 2020 and 2019 include a contingency reserve for loan losses of $1,534 which represents the tax reserve balance existing at December 31, 1987 and is maintained in accordance with provisions of the Internal Revenue Code applicable to mutual savings banks. Amounts transferred to the reserve have been claimed as deductions from taxable income and, if the reserve is used for purposes other than to absorb losses on loans, a federal income tax liability could be incurred. It is not anticipated that the Company will incur a federal income tax liability relating to this reserve balance and accordingly, deferred income taxes of $414 at December 31, 2020 and $414 at December 31, 2019 have not been recognized. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2017 through 2020. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2017 are open. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits | |
Employee Benefits | 8. Employee Benefits Employee Stock Ownership Plan On January 1, 2019, the Bank established an ESOP to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified retirement plan for the benefit of Bank employees. On January 16, 2019, the Company granted a loan to the ESOP for the purchase of 436,425 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company to purchase the common stock is payable annually over 20 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (4.25% at January 1, 2020 and 3.25% on January 1, 2021). Loan payments are principally funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. The balance of the ESOP loan was $4,087 and $4,229 at December 31, 2020 and 2019, respectively. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released annually is 21,821 through 2039. Shares held by the ESOP include the following: 2020 2019 Allocated 21,821 — Committed to be allocated 21,821 21,821 Unallocated 392,783 414,604 Paid out to participants (68) — Total shares 436,357 436,425 The fair value of unallocated shares was $3,358 and $4,689 at December 31, 2020 and 2019, respectively. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2020 and 2019 was $170 and $243, respectively. Share-Based Compensation Plan On May 26, 2020, stockholders of the Company approved the 2020 Equity Incentive Plan (the “EIP”). The EIP authorizes the issuance or delivery to participants of up to 763,743 shares of Rhinebeck Bancorp common stock pursuant to grants of incentive and non-qualified stock options, restricted stock awards and restricted stock units. Of this number, the maximum number of shares of Rhinebeck Bancorp common stock that may be issued under the EIP pursuant to the exercise of stock options is 545,531 shares, and the maximum number of shares of Rhinebeck Bancorp common stock that may be issued as restricted stock awards or restricted stock units is 218,212 shares. These amounts represent 4.90% and 1.96%, respectively, of the number of shares of common stock issued in the stock offering of Rhinebeck Bancorp, including the shares issued to Rhinebeck Bancorp, MHC. Pursuant to terms of the EIP, the Board of Directors granted restricted stock and stock options to employees and directors, effective August 25, 2020. All of the awards granted to date vest annually over a three-year period from the date of the grant and the maximum term of each option is ten years. As of December 31, 2020, there were 97,146 stock options and 48,443 restricted stock awards that remain available for future grants. The fair value of each option award for the EIP is estimated on the date of grant using the Black-Scholes Option-Pricing Model. The expected volatility is based on the historical volatility of a peer group of comparable SEC-reporting bank holding companies. The dividend yield assumption is based on the Company’s expectation of dividend payouts. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the date of grant. The Company has elected to recognize forfeitures as they occur. The Company follows SEC safe-harbor guidelines when determining the expected term of the options granted. The weighted average assumptions used and fair value for options granted as of December 31, 2020 are as follows: December 31, 2020 Expected term (years) 6 Expected dividend yield Weighted-average expected volatility Weighted-average risk-free interest rate Weighted-average fair value of options granted $ A summary of options under the 2020 EIP as of December 31, 2020, is presented below: Weighted - Weighted-Average Number of Average Contractual Term Shares Exercise Price (in Years) Options outstanding at beginning of year - $ - - Options granted 448,385 6.61 6.00 Options exercised - - - Forfeited - - - Options outstanding at December 31, 2020 448,385 $ 6.61 6.00 Options exercisable at December 31, 2020 - - - The aggregate intrinsic value, which fluctuates based on changes in the fair market value of the Company’s stock, at December 31, 2020, was $868. The aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of period and the weighted-average exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on December 31, 2020. As of December 31, 2020, there was $662 of unrecognized compensation cost related to the nonvested stock options granted under the 2020 EIP. The cost is expected to be recognized over a remaining period of 2.66 years. The following table summarizes the Company’s restricted stock activity for the year ended December 31, 2020: Weighted-Average Number Grant Date of Shares Fair Value Non-vested restricted stock at beginning of year - $ - Granted 169,769 6.57 Vested - - Forfeited - - Non-vested restricted stock at end of year 169,769 $ 6.57 As of December 31, 2020, there was $984 of unrecognized compensation cost related to the nonvested restricted stock awards granted under the 2020 EIP. The cost is expected to be recognized over a remaining period of 2.65 years. The aggregate grant date fair value of the options and restricted stock granted as of December 31, 2020 was $747 and $1,115, respectively. For the year ended December 31, 2020, share-based compensation expense under the plan was $216. Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering substantially all of its employees 21 years of age or older who have completed at least one year of service. On April 24, 2012, the Board of Directors of Rhinebeck Bank voted to freeze the Bank’s defined benefit plan as of June 30, 2012. The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated statements of financial condition: December 31, December 31, 2020 2019 Projected and accumulated benefit obligation $ (23,964) $ (20,953) Plan assets at fair value 22,634 20,628 Funded status included in accrued expenses and other liabilities $ (1,330) $ (325) Amounts recognized in accumulated other comprehensive loss consisted of the following: Years ended December 31, 2020 2019 Net actuarial loss $ 6,055 $ 4,948 The net periodic pension (benefit) cost and amounts recognized in other comprehensive income are as follows: Year ended Year ended December 31, December 31, 2020 2019 Interest cost $ 670 $ 734 Expected return on plan assets (1,058) (868) Amortization of unrecognized loss 285 345 Net periodic (benefit) cost $ (103) $ 211 In 2020 and 2019, net actuarial loss resulted primarily from changes in the discount rate. Estimated net actuarial loss of $358 will be amortized from accumulated other comprehensive loss into net periodic pension cost in 2021. Weighted-average assumptions used by the Company to determine the pension benefit obligation consisted of the following: Years ended December 31, 2020 2019 Discount rate 2.50 % 3.25 % Rate of compensation increase N/A N/A Weighted-average assumptions used by the Company to determine the net periodic pension cost consisted of the following: Years ended December 31, 2020 2019 Discount rate 3.25 % 4.20 % Expected long-term return on plan assets 5.50 % 5.50 % Rate of compensation increase N/A N/A The expected long-term rate of return on plan assets has been determined by applying historical average investment returns from published indexes relating to the current allocation of assets in the plan. Plan assets are invested in pooled separate accounts consisting of underlying investments in eleven diversified investment funds. As of December 31, 2020 and 2019, the investment funds include seven equity funds, three bond funds and a real estate fund, each with its own investment objectives, investment strategies and risks, as detailed in the Plan’s investment policy statement. The Company determines the appropriate strategic asset allocation versus plan liabilities, as governed by the investment policy statement. The assets of the plan are invested under the supervision of the Company’s investment committee in accordance with the investment policy statement. The investment options of the plan are chosen in a manner consistent with generally accepted standards of fiduciary responsibility. The investment performance of the Company’s individual investment managers, with the assistance of the Company’s investment consultant, is monitored on a quarterly basis and is reviewed at least annually relative to the objectives and guidelines as stated in the Company’s investment policy statement. The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 15,189 $ — $ — $ 15,189 Equity 6,206 — — 6,206 Other 1,239 — — 1,239 Total assets at fair value $ 22,634 $ — $ — $ 22,634 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 14,143 $ — $ — $ 14,143 Equity 5,256 — — 5,256 Other 1,229 — — 1,229 Total assets at fair value $ 20,628 $ — $ — $ 20,628 The pooled separate accounts are valued at the net asset per unit based on either the observable net asset value of the underlying investment or the net asset value of the underlying pool of securities. Net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities and then divided by the number of shares outstanding. Benefit payments are as follows: Year ended December 31, 2020 2019 Benefits paid $ 600 $ 503 As of December 31, 2020 the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Fiscal Year Ending Pension Benefits 2021 $ 780 2022 790 2023 810 2024 890 2025 920 2026 – 2030 5,290 The Company made no contributions to the plan in either 2020 or 2019. Defined Contribution Plan The Company sponsors a 401(k) defined contribution plan. Participants are permitted, in accordance with the provisions of Section 401(k) of the Internal Revenue Code, to contribute up to 25% of their earnings (as defined) into the plan with the Company matching up to 6%, subject to Internal Revenue Service limitations. The Company’s contributions charged to operations amounted to $993 and $828 for the years ended December 31, 2020 and 2019, respectively. Bank Owned Life Insurance The Company has an investment in and is the beneficiary of life insurance policies on the lives of certain officers and directors. The purpose of these life insurance policies is to provide income through the appreciation in cash surrender value of the policies, which is expected to offset the cost of the deferred compensation plans. These policies had aggregate cash surrender values of $18,877 and $18,457 at December 31, 2020 and 2019, respectively. Net earnings on these policies aggregated $380 and $398 for the years ended December 31, 2020 and 2019, respectively, which are included in noninterest income in the consolidated statements of income. Deferred Compensation Arrangements Trustees’ Plan The Company’s 1991 Plan (the “Trustees’ Plan”) covers directors who elect to defer fees earned. Under the terms of the Trustees’ Plan, each participant may elect to defer all or part of their annual director’s fees. Upon resignation, retirement, or death, the participants’ total deferred compensation, including earnings thereon, will be paid out. At December 31, 2020 and 2019, $2,483 and $2,086, respectively, are included in accrued expenses and other liabilities, which represents cumulative amounts deferred and earnings thereon. Total expense related to the Trustees’ Plan years ended December 31, 2020 and 2019 were $178 and $126, respectively, which are included in noninterest expense in the consolidated statements of income. Executive Long-Term Incentive and Retention Plan The Company maintains an Executive Long-Term Incentive and Retention Plan (the “Executive Plan”). Participation in the Executive Plan is limited to officers of the Company designated as participants by the Board of Directors and who filed a properly completed and executed participation agreement in accordance with the terms of the Executive Plan. Under the Executive Plan, the Board of Directors may grant annual incentive awards equal to a percentage of a participant’s base salary at the rate in effect on the last day of the Plan year, as determined by the Board of Directors based on the attainment of criteria established annually by the Board of Directors. Incentive awards under the Executive Plan are credited to the participant’s incentive benefit account as of the last day of the Executive Plan year to which the award relates and earn interest at a rate determined annually by the Board of Directors. Participants vest in their benefit accounts in accordance with the vesting schedule approved by the Board of Directors, which ranges from one to five years of service. At December 31, 2020 and 2019, $1,312 and $1,163, respectively, is included in accrued expenses and other liabilities, which represents the cumulative amounts deferred and earnings thereon. The Company recognized expenses of $413 and $593 for the years ended December 31, 2020 and 2019, respectively, related to this plan and which are included in salaries and employee benefits expense in the consolidated statements of income. Group Term Replacement Plan Under the terms of the “Group Term Replacement Plan”, the Company provides postretirement life insurance benefits to certain officers. The liability related to these postretirement benefits is being accrued over the individual participants’ service period and aggregated $1,387 and $1,330, respectively, at December 31, 2020 and 2019. The Company recognized expenses of $57 and $54 for the years ended December 31, 2020 and 2019, respectively, related to this plan which are included in salaries and employee benefits expense in the consolidated statements of income. Other Director and Officer Postretirement Benefits The Company has individual fee continuation agreements with certain directors and a supplemental retirement agreement with an executive officer which provide for fixed postretirement benefits to be paid to the directors and the officer, or their beneficiaries, for periods ranging from 15 to 20 years. In addition, the Company has agreements with certain directors which provide for certain postretirement life insurance benefits. The liability related to these postretirement benefits is being accrued over the individual participants’ service period and aggregated $2,148 and $2,123, respectively, at December 31, 2020 and 2019. The Company recognized expenses of $86 and $78 for the years ended December 31, 2020 and 2019, respectively, related to these benefits which are included in other noninterest expenses in the consolidated statements of income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 9. Leases As of December 31, 2020, the Company leases real estate for seven branch offices under various lease agreements. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of financial condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s leases have maturities which range from 2021 to 2035, some of which include lessee options to extend the lease term. If the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The weighted average remaining life of the lease terms for these leases was 12.7 years as of December 31, 2020. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company utilized a weighted average discount rate of 2.61% in determining the lease liability as of December 31, 2020. For the year ended December 31, 2020, total operating lease costs were $588 and were included in occupancy and other expense. Deferred rent liability was $176 at December 31, 2020 and $213 at December 31, 2019. The right-of-use asset, included in other assets, was $6,289 and the corresponding lease liability, included in accrued expenses and other liabilities was $6,289 as of December 31, 2020. Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows: Years ending December 31: 2021 $ 637 2022 593 2023 570 2024 566 2025 579 Thereafter 4,507 Total future minimum lease payments 7,452 Amounts representing interest (1,163) Present Value of Net Future Minimum Lease Payments $ 6,289 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Matters The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations. Employment Agreements The Company has entered into employment agreements with certain officers. The agreements provide for base salaries and incentive compensation based on performance criteria outlined in the agreements. The agreements also provide for insurance, various other benefits and addresses other contractual issues, such as a change of control. Financial Instruments with Off-Balance-Sheet Risk In the normal course of business, the Company is a party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include standby letters of credit and commitments to extend credit, which include new loan commitments and undisbursed portions of construction loans and other lines of credit. These financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral become worthless. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments whose contract amounts represent off-balance sheet credit risk are as follows: Years ended December 31, 2020 2019 Commitments to extend credit summarized as follows: Future loan commitments $ 14,356 $ 9,881 Undisbursed construction loans 3,493 10,202 Undisbursed home equity lines of credit 10,686 10,277 Undisbursed commercial and other line of credit 63,911 59,234 Standby letters of credit 5,681 5,290 Total $ 98,127 $ 94,884 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since these commitments could expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include residential and commercial property, deposits and securities. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters | |
Regulatory Matters | 11. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the tables below) of total, common equity Tier 1 and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2020 and 2019, that the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, common equity Tier 1, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since then, which management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios were: To be Well Capitalized under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Rhinebeck Bank Total capital (to risk-weighted assets) $ 121,604 13.97 % $ 69,614 8.00 % $ 87,018 10.00 % Tier 1 capital (to risk-weighted assets) 110,717 12.72 % 52,211 6.00 % 69,614 8.00 % Common equity tier one capital (to risk weighted assets) 110,717 12.72 % 39,158 4.50 % 56,562 6.50 % Tier 1 capital (to average assets) 110,717 9.95 % 44,529 4.00 % 55,662 5.00 % December 31, 2019 Rhinebeck Bank Total capital (to risk-weighted assets) $ 109,799 12.83 % $ 68,481 8.00 % $ 85,602 10.00 % Tier 1 capital (to risk-weighted assets) 103,845 12.13 % 51,361 6.00 % 68,481 8.00 % Common equity tier one capital (to risk weighted assets) 103,845 12.13 % 38,521 4.50 % 55,641 6.50 % Tier 1 capital (to average assets) 103,845 10.84 % 38,325 4.00 % 47,907 5.00 % |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value | |
Fair Value | 12. Fair Value As described in Note 1, the Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. A description of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial and non-financial instruments not recorded at fair value, is set forth below. Cash and Due from Banks The carrying amount is a reasonable estimate of fair value. Available for Sale Securities Where quoted prices are available in an active market for identical securities, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include marketable equity securities and U.S. Treasury obligations. If quoted prices are not available, then fair values are estimated by using pricing models (i.e., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds, mortgage-backed securities and municipal bonds. Level 3 securities include securities for which significant unobservable inputs are utilized. Available for sale securities are recorded at fair value on a recurring basis. FHLB Stock The carrying value of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans Loans receivable are carried at cost. For variable rate loans which reprice frequently carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using the year end rates, estimated using local market data, at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral-dependent impaired loans are recorded to reflect partial write-downs based on the observable market price or current appraised value of collateral. Other Real Estate Owned Other real estate owned represents real estate acquired through foreclosure and is carried at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. These assets are included as Level 3 fair values, based upon the lowest level of input that is utilized in the fair value measurements. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated future net servicing income. Mortgage servicing rights are carried at the lower of amortized cost or estimated fair value and are included in other assets on the consolidated statements of financial condition. Deposits Deposit liabilities are carried at cost. The fair value of NOW, savings and money market deposits is the amount payable on demand at the reporting date. The fair value of time certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities estimated using local market data to a schedule of aggregated expected maturities on such deposits. Mortgagors’ escrow account The carrying amount is a reasonable estimate of fair value. Advances from the FHLB The fair value of the advances is estimated using a discounted cash flow calculation that applies current FHLB interest rates for advances of similar maturity to a schedule of maturities of such advances. Subordinated Debt Based on the floating rate characteristic of these instruments, the carrying value is considered to approximate fair value. Off-Balance-Sheet Instruments Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standings. Such amounts are not significant. The following tables detail the assets that are carried at fair value on a recurring basis as of the periods shown and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2020 U.S. government agency mortgage-backed securities-residential $ 89,270 $ — $ 89,270 $ — U.S. government agency securities 7,161 — 7,161 — Municipal securities 1,476 — 1,316 160 Corporate Bonds 4,446 — 4,446 — Other 580 — 580 — Total $ 102,933 $ — $ 102,773 $ 160 December 31, 2019 U.S. government agency mortgage-backed securities – residential $ 98,478 $ — $ 98,478 $ — U.S. government agency securities 12,076 — 12,076 — Municipal securities 1,396 — 1,216 180 Corporate Bonds 2,273 — 2,273 — Other 609 — 609 — Total $ 114,832 $ — $ 114,652 $ 180 The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of December 31, 2020 and 2019 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2020 Impaired loans, with specific reserves $ 509 $ — $ — $ 509 Other real estate owned 139 — — 139 Total $ 648 $ — $ — $ 648 December 31, 2019 Impaired loans, with specific reserves $ 239 $ — $ — $ 239 Other real estate owned 1,417 — — 1,417 Total $ 1,656 $ — $ — $ 1,656 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Average) December 31, 2020 Impaired loans $ 509 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% Other real estate owned 139 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% December 31, 2019 Impaired loans $ 239 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% Other real estate owned 1,417 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% (1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value. (3) Estimated costs to sell. The Company discloses fair value information about financial instruments, whether or not recognized in the statements of financial condition, for which it is practicable to estimate that value. Certain financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2020 and 2019 have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each year-end. The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. As of the following dates, the carrying value and fair values of the Company’s financial instruments were: December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 1) $ 93,485 $ 93,485 $ 11,978 $ 11,978 Available for sale securities (Level 2) 102,773 102,773 114,652 114,652 Available for sale securities (Level 3) 160 160 180 180 FHLB stock (Level 2) 2,787 2,787 3,435 3,435 Loans, net (Level 3) 873,813 876,699 793,471 796,262 Mortgage servicing rights (Level 3) 2,390 3,569 2,226 4,137 Financial Liabilities: Deposits (Level 2) 929,364 941,460 773,343 762,272 Mortgagors' escrow accounts (Level 2) 8,494 8,501 8,106 8,107 FHLB advances (Level 2) 50,674 51,468 66,304 66,724 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the years ended December 31, 2020 and 2019, is as follows: Accumulated Other Comprehensive Loss (1) Unrealized gains (losses) on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) Other comprehensive (loss) gain before reclassifications (1,100) 1,165 65 Amounts reclassified from accumulated other comprehensive loss 225 23 248 Period change (875) 1,188 313 Balance at December 31, 2020 $ (4,784) $ 993 $ (3,791) Balance at December 31, 2018 $ (4,436) $ (2,576) $ (7,012) Other comprehensive gain before reclassifications 254 2,327 2,581 Amounts reclassified from accumulated other comprehensive loss 273 54 327 Period change 527 2,381 2,908 Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0% in fiscal 2020 and 21.0% in fiscal 2019. Details about accumulated other comprehensive loss components are as follows: Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended Affected Line Item in the Consolidated December 31, Statement of Income 2020 2019 Securities available for sale (1) : Net securities losses reclassified into earnings $ (29) $ (69) Net realized loss on sales and calls of securities Related income tax expense 6 15 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (23) (54) Defined benefit pension plan (2) : Amortization of net loss and prior service costs (285) (346) Other noninterest expense Related income tax expense 60 73 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (225) (273) Total reclassifications for the period $ (248) $ (327) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 2, “Available for Sale Securities.” (2) Included in the computation of net periodic pension cost. See Note 8, “Employee Benefits” for additional details. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share | |
Earnings Per Share | 14. Earnings Per Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents (such as options) were issued during the period. Unearned ESOP shares are not deemed outstanding for earnings per share calculations. For the years ended December 31, 2020, there were 448,385 options outstanding at an average weighted price of $6.61 per share that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive. Year ended December 31, 2020 2019 Net income applicable to common stock $ 5,917 $ 5,963 Average number of common shares outstanding 11,133,290 11,133,290 Less: Average unearned ESOP shares 403,694 425,514 Average number of common shares outstanding used to calculate basic earnings per common share 10,729,596 10,707,776 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 10,245 — Additional common stock equivalents (stock options) used to calculate diluted earnings per share — — Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,739,841 10,707,776 Earnings per Common share: Basic $ 0.55 $ 0.56 Diluted $ 0.55 $ 0.56 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 15. Subsequent Events ASC 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. Rhinebeck Bancorp, Inc. evaluated all events or transactions that occurred after December 31, 2020 through the date of the issued financial statements. On October 26, 2020, the Bank and ConnectOne Bank, the wholly-owned subsidiary of ConnectOne Bancorp, Inc., executed a purchase and assumption agreement (the “Agreement”) providing for the acquisition by the Bank of the two ConnectOne branch offices located in Monroe and Warwick, New York. In accordance with the Agreement, the Bank will assume certain customer deposits and certain other assets and liabilities associated with those branch offices. On February 4, 2021, the Company announced that it had received all required regulatory approvals to acquire the two branches. The branches in Monroe and Warwick will become Rhinebeck Bank branches after the close of business on Friday, March 12 and will open Monday, March 15, as part of the Rhinebeck Bank system. In December, the Company announced its intention to open two new branches, one in Newburgh, New York and one in Middletown, New York, further expanding our footprint in Orange County. The Company has received all required regulatory approvals to continue its expansion in Orange County with the openings of the Newburgh and Middletown branches in the spring of 2021. Other than what is noted above, no other events meeting the requirements of disclosure arose during the time period from December 31, 2020 through the date of the issued financial statements. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Significant Accounting Policies | |
Basis of Financial Statement Presentation | Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for lease and loan losses, fair value measurements, the evaluation of investment securities for other-than-temporary impairment, the evaluation of goodwill for impairment, the valuation of deferred tax assets, the determination of pension obligations and contingent liabilities. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. As a result of the reorganization, the consolidation refers to the Company and the Bank for the periods after January 16, 2019 and Rhinebeck Bancorp, MHC, a New York chartered mutual holding company, and the Bank for the periods prior to January 16, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, Columbia, Putnam and Albany. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ abilities to repay their loans is dependent on the economic conditions in the territories in which the Company operates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. |
Investment in Debt Securities | Investment in Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase discounts are recognized in interest income using the interest method over the contractual terms of the security. Purchase premiums are recognized in interest income using the interest method to the instrument’s earliest call date. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities for other-than temporary impairment on a regular basis. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the credit standing of the issuer. When the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its cost basis, the credit loss determined due to a permanent impairment will be recognized in earnings. The credit loss component recognized is identified as the amount of future principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow estimates discounted at the applicable original yield of the security. |
Investment in FHLB Stock | Investment in FHLB Stock The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. |
Loans Receivable | Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for lease and loan losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer automobile and installment loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on non-accrual status or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Lease and Loan Losses | Allowance for Lease and Loan Losses The allowance for lease and loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines all or part of the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for lease and loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the 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 calculation methodology involves segregation of the total loan portfolio into segments. The Company’s loans receivable portfolio is comprised of the following segments: commercial real estate, residential real estate, commercial and industrial and consumer. The segments of the Company’s loans receivable portfolio are further disaggregated into classes based on identified risks within those segments. This allows management to better monitor risk and performance. Commercial real estate loans are separated into the three classes: construction, non-residential and multi-family. Non-residential and multi-family loans include long-term loans financing commercial properties and include both owner and non-owner occupied properties. Construction loans, which include land loans, are comprised mostly of non-owner occupied projects, whereby the property is generally under development and tends to have more risk than the owner occupied loans. The Company grants loans for the construction of residential homes, residential developments and land development projects. Repayment of these loans is mostly dependent upon either the ongoing cash flows of the borrowing entity or the resale or lease of the subject property. The underlying cash flows generated by the properties may be negatively impacted by increased vacancy rates due to a downturn in the economy. Residential real estate loans are secured by the borrower’s residential real estate generally in a first lien position. Residential mortgages have varying loan interest rates depending on the financial condition of the borrower, the loan to value ratio and the term of the loan. The overall health of the economy, reflected in unemployment rates and housing prices, will have an effect on the credit quality of this segment. The commercial and industrial loan segment consists of loans made for purposes of financing the activities of commercial customers. The assets financed through commercial and industrial loans are used within the business for its ongoing operations. Repayment of commercial and industrial loans predominately comes from the cash flows of the business or the ongoing operations of assets. A weakened economy and resultant decreased consumer spending could have a negative impact on this line of business. Consumer loans are classified into the following three classes: indirect automobile loans, home equity loans and other consumer loans. Indirect automobile loans are secured by the borrowers’ automobiles and originated through the Company’s relationships with the automobile dealers in the various counties in the Company’s service area. Home equity loans are secured by the borrowers’ residential real estate in a first or second lien position. Other direct consumer loans may be unsecured. The overall health of the economy, reflected in unemployment rates and housing prices, will have an impact on the credit quality of this segment. The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and, in most cases, extends credit of up to 80% of the market value of the collateral at the date of the credit extension, depending on the borrower’s creditworthiness and the type of collateral. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial and industrial and commercial real estate loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, automobiles, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower, past experience with the borrower, the nature of the collateral, competitive offerings and/or the term of the loan. The market value of collateral is monitored on an ongoing basis and additional collateral may be obtained when warranted. While collateral provides some assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrower’s ability to generate continuing sufficient cash flows. The Company’s policy for collateral requires that, generally, the amount of the loan may not exceed 90% of the original appraised value of the property. Private mortgage insurance is usually required for that portion of the loan in excess of 80% of the appraised value of the property. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated at least quarterly or when credit deficiencies arise, such as when loan payments are delinquent. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for lease and loan losses. Loans not classified are rated pass. The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such impaired loans, an allowance is established when the discounted cash flows (or observable market price or collateral value if the loan is collateral dependent) of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans, segregated generally by loan type and is based on historical loss experience with adjustments for qualitative factors which are made after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss data. These qualitative risk factors include: 1. Changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices. 2. Changes in international, national, regional, and local conditions. 3. Changes in the nature and volume of the portfolio and terms of loans. 4. Changes in the experience, depth, and ability of lending management. 5. Changes in the volume and severity of past due loans and other similar conditions. 6. Changes in the quality of the organization’s loan review system. 7. Changes in the value of underlying collateral for collateral dependent loans. 8. The existence and effect of any concentrations of credit and changes in the levels of such concentrations. 9. The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. In the last quarter of 2019, Management employed software in order to upgrade our allowance for lease and loan loss (“ALLL”) analysis. For several months we ran the software in tandem with our then present evaluation system in order to understand the similarities and differences between the approaches and to ascertain that the switch would present reasonable and consistent results in keeping with the prior analysis. At year-end 2019, we made the switch to the new software system as the basis for our ALLL analysis. The outcome led us to a result that was more specific in definition, robust from a qualitative analysis perspective, and detailed in specific support for the final allocated outcomes. This change in methodology did not materially change the amount of the overall reserve but did have some impact on allocated reserves between the lines of business, most specifically evident with the increased reserve amount allocated to the indirect automobile portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls are not necessarily classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loans’ collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the size of the loan, age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. If liquidation is expected, appraised values are discounted for expected sales costs to arrive at the estimated recognizable value of the collateral, which is considered to be the estimated fair value. The recorded investment in consumer mortgages and loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $636 and $781 on December 31, 2020 and 2019, respectively. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan which is then identified as a TDR. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for lease and loan losses. The Company identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, negative trends, or specific conditions may result in a payment default in the near future. Regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for lease and loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for lease and loan losses is adequate. |
Loans Held for Sale | Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in noninterest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. Mortgage service rights are recorded and amortized over the life of the loan. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. |
Servicing | Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance and charged to noninterest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. |
Revenue Recognition | Revenue Recognition The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: · Fees for services to customers include service charges on deposits which are included as liabilities in the consolidated statements of financial condition and consist of transaction-based fees: stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, wire fees, official check fees and overdraft services fees for various retail and business checking customers. These fees are charged as earned on the day of the transaction or within the month of the service. Service charges on deposits are withdrawn directly from the customer’s account balance. ATM and debit card fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Sales of checks to depositors earn fees as a contractual discount to the retail price of the sale from a third-party provider. These fees earned are remitted by the third-party to the Company quarterly. · The Company earns interchange fee income from credit/debit cardholder transactions conducted through MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. · The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed; at such time, the OREO asset is derecognized and the gain or loss on the sale is recorded. Rental income received from leased OREO property is recognized during the month it is earned. · Retail brokerage and advisory fee income is accrued monthly to properly record the revenues in the month they are earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Investments into mutual funds and annuities generate fees that are recorded as revenue at the time of the initial sale. In subsequent years the mutual funds and variable annuities generate recurring fees (referred to as 12B‑1 fees) that are paid in advance on the anniversary of the original transaction. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e., trade date). Life insurance products are sold on a commission basis that generates a fee that is recorded as revenue within the month of the approved transaction. Other income includes rental income, mortgage origination and service fees and late fees on serviced mortgages. All items are recorded as revenue within the month that the service is provided. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. Other real estate owned included $0 and $935 of residential real estate and $139 and $482 of commercial property on December 31, 2020 and 2019, respectively. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Rent expense is charged to operations over the expected lease term using the straight-line method. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and directors. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of noninterest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. |
Goodwill and Amortizable Intangible Assets | Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. These assets are amortized on a straight-line basis over the related estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. |
Share-Based Compensation Plans | Share-Based Compensation Plans The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide service for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. Management estimated the expected life of the options using the simplified method as allowed under generally accepted accounting principles. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract at the date of grant. Forfeitures are recognized as they occur. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated statements of financial condition. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. When tax returns are filed, it is highly expected that most positions taken would be sustained upon examination by the taxing authorities, while others may be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company has no liabilities for uncertain tax positions at December 31, 2020 and 2019. Interest and penalties associated with unrecognized tax benefits, if any, would be classified as an additional provision for income taxes in the consolidated statements of income. |
Earnings Per Share (“EPS”) | Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding under the treasury stock method if all potentially dilutive common shares (such as stock options) issued became vested during the period. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for either the basic or diluted earnings per share calculations. See Note 14 for calculation of EPS. |
Comprehensive Income | Comprehensive Income GAAP requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and the net actuarial loss of the defined benefit pension plan, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income. |
Fair Value | Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in certain instances, there are no quoted market prices for certain assets or liabilities. 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. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. Fair value measurements focus on exit prices in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The Company’s fair value measurements are classified into a fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The three categories within the hierarchy are as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active; and model-based valuation techniques for which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Reclassifications | Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. |
Emerging Growth Company Status | Emerging Growth Company Status As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-public companies. The Company intends to take advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the following recent accounting standards reflect those that relate to non-public companies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which created FASB Accounting Standards Codification (“ASC”) Topic 842 (ASC 842) and is intended to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. The principal change required by ASC 842 relates to lessee accounting, and is that for operating leases, a lessee is required to (1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial condition, (2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term generally on a straight-line basis, and (3) classify all cash payments within operating activities in the statement of cash flows. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASC 842 also changes disclosure requirements related to leasing activities and requires certain qualitative disclosures along with specific quantitative disclosures. ASC 842 also provides an optional transition method for adoption, under which an entity initially applies ASC 842 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity's reporting for the comparative periods presented in the financial statements in which it adopts ASC 842 will continue to be in accordance with current GAAP. ASC 842 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early application of ASC 842 is permitted. The Company adopted the provisions of ASC 842 effective January 1, 2020 utilizing the optional transition method and not restate comparative periods. The Company elected the package of practical expedients permitted under ASC 842's transition guidance, which allows the Company to carryforward its historical lease classifications and its assessment as to whether a contract is or contains a lease. The Company elected to not recognize lease assets and lease liabilities for leases with an initial term of 12 months or less. Upon adoption, the Company recorded an increase in other assets and an increase in other liabilities of approximately $6.7 million. In June 2016, the FASB issued ASU No. 2016‑13 on “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU requires credit losses on most financial assets be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The measurement of expected credit losses is based upon relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. On October 16, 2019, the FASB approved a delay for conversion to the CECL methodology to January 2023 for smaller reporting companies, other public business entities, private companies and non-profits. The Company is currently assessing the effect of ASU No. 2016‑13 and has engaged with a software vendor to assist in its efforts. In August 2018, the FASB issued ASU No. 2018‑14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715‑20)”. The amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements. ASU 2018‑14 is effective for the Company in 2021. Early adoption is permitted. This update is not expected to have a material impact on the Company’s financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 , which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses , for smaller reporting companies and emerging growth companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. On December 18, 2019, the FASB issued Accounting Standards Update 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. The FASB’s amendments primarily impact ASC 740, Income Taxes, and may impact both interim and annual reporting periods. This ASU is effective for the Company in 2022. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on the consolidated financial statements and does not expect to early adopt. On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies to contracts and other transactions that reference LIBOR or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract remeasurement or reassessment of a previous accounting determination. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The adoption of ASU 2020-04 did not and is not expected to have a material impact on the Company's future consolidated financial statements. |
Available for Sale Securities (
Available for Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Available for Sale Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities | December 31, 2020 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. government agency mortgage-backed securities–residential $ 88,197 $ 1,350 $ (277) $ 89,270 U.S. government agency securities 7,013 148 — 7,161 Municipal securities (1) 1,445 31 — 1,476 Corporate bonds 4,400 49 (3) 4,446 Other 621 — (41) 580 Total $ 101,676 $ 1,578 $ (321) $ 102,933 December 31, 2019 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. government agency mortgage-backed securities–residential $ 98,842 $ 464 $ (828) $ 98,478 U.S. government agency securities 12,049 53 (26) 12,076 Municipal securities (1) 1,384 17 (5) 1,396 Corporate bonds 2,250 25 (2) 2,273 Other 555 54 — 609 Total $ 115,080 $ 613 $ (861) $ 114,832 (1) The issuers of municipal securities are all within New York State. |
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position | December 31, 2020 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. government agency mortgage-backed securities-residential $ 30,243 $ (269) $ 293 $ (8) $ 30,536 $ (277) Corporate Bonds 747 (3) — — 747 (3) Other 522 (41) — — 522 (41) Total $ 31,512 $ (313) $ 293 $ (8) $ 31,805 $ (321) December 31, 2019 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. government agency mortgage-backed securities-residential $ 35,612 $ (302) $ 27,252 $ (526) $ 62,864 $ (828) U.S. government agency securities — — 7,001 (26) 7,001 (26) Municipal Securities 490 (5) — — 490 (5) Corporate Bonds 749 (2) — — 749 (2) Total $ 36,851 $ (309) $ 34,253 $ (552) $ 71,104 $ (861) |
Schedule of maturities of debt securities | December 31, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 102 $ 102 $ 175 $ 175 After 1 but within 5 years 2,155 2,155 7,027 7,001 After 5 but within 10 years 9,946 10,162 7,806 7,899 After 10 years 655 664 675 670 Total Maturities 12,858 13,083 15,683 15,745 Mortgage-backed securities 88,197 89,270 98,842 98,478 Other 621 580 555 609 Total $ 101,676 $ 102,933 $ 115,080 $ 114,832 |
Loans and Allowance for Lease_2
Loans and Allowance for Lease and Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans and Allowance for Lease and Loan Losses | |
Schedule of summary loan portfolio | A summary of the Company’s loan portfolio is as follows: December 31, December 31, 2020 2019 Commercial real estate loans: Construction $ 5,392 $ 20,354 Non-residential 248,349 228,157 Multi-family 30,379 20,129 Residential real estate loans 39,239 43,726 Commercial and industrial loans (1) 154,016 90,554 Consumer loans: Indirect automobile 376,260 360,569 Home equity 14,165 16,276 Other consumer 8,816 9,752 Total gross loans 876,616 789,517 Net deferred loan costs 8,830 9,908 Allowance for loan losses (11,633) (5,954) Total net loans $ 873,813 $ 793,471 (1) Includes $75,366 in SBA PPP loans at December 31, 2020. |
Schedule of loans by risk rating and portfolio segment | December 31, 2020 Pass Special Mention Substandard Total Commercial real estate: Construction $ 5,392 $ — $ — $ 5,392 Non-residential 240,778 5,468 2,103 248,349 Multifamily 30,379 — — 30,379 Residential real estate 36,597 — 2,642 39,239 Commercial and industrial 147,748 5,395 873 154,016 Consumer: Indirect automobile 375,270 — 990 376,260 Home equity 13,819 — 346 14,165 Other consumer 8,768 — 48 8,816 Total $ 858,751 $ 10,863 $ 7,002 $ 876,616 December 31, 2019 Pass Special Mention Substandard Total Commercial real estate: Construction $ 20,354 $ — $ — $ 20,354 Non-residential 219,485 4,285 4,387 228,157 Multifamily 19,744 — 385 20,129 Residential real estate 41,385 — 2,341 43,726 Commercial and industrial 88,874 597 1,083 90,554 Consumer: Indirect automobile 359,616 — 953 360,569 Home equity 15,861 — 415 16,276 Other consumer 9,741 — 11 9,752 Total $ 775,060 $ 4,882 $ 9,575 $ 789,517 |
Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans | December 31, 2020 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 5,392 $ — $ — $ — $ 5,392 $ — Non-residential 244,387 1,985 33 1,944 248,349 1,944 Multifamily 30,379 — — — 30,379 — Residential real estate 36,581 1,351 138 1,169 39,239 2,641 Commercial and industrial 151,771 1,551 511 183 154,016 366 Consumer: Indirect automobile 367,929 6,321 1,063 947 376,260 990 Home equity 13,506 310 101 248 14,165 346 Other consumer 8,663 98 7 48 8,816 48 Total $ 858,608 $ 11,616 $ 1,853 $ 4,539 $ 876,616 $ 6,335 December 31, 2019 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,354 $ — $ — $ — $ 20,354 $ — Non-residential 222,953 409 884 3,911 228,157 3,911 Multifamily 19,744 — — 385 20,129 385 Residential real estate 42,403 427 116 780 43,726 2,341 Commercial and industrial 89,401 288 198 667 90,554 905 Consumer: Indirect automobile 351,840 6,494 1,294 941 360,569 953 Home equity 15,726 142 91 317 16,276 415 Other consumer 9,492 201 48 11 9,752 11 Total $ 771,913 $ 7,961 $ 2,631 $ 7,012 $ 789,517 $ 8,921 There were no loans greater than 90 days past due and still accruing as of December 31, 2020 or 2019. |
Schedule of information to impaired loans by loan portfolio class | December 31, 2020 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 1,944 $ 2,973 $ — $ 3,086 Multifamily — — — 184 Residential real estate 2,641 3,086 — 2,554 Commercial and industrial 345 586 — 426 Consumer: Indirect automobile 397 467 — 293 Home equity 346 351 — 449 Other consumer — — — 21 Total $ 5,673 $ 7,463 $ — $ 7,013 With an allowance recorded: Commercial and industrial $ 21 $ 21 $ 11 $ 30 Consumer: Indirect automobile 593 613 135 591 Other consumer 48 49 7 13 Total $ 662 $ 683 $ 153 $ 634 Total: Commercial real estate: Non-residential $ 1,944 $ 2,973 $ — $ 3,086 Multifamily — — — 184 Residential real estate 2,641 3,086 — 2,554 Commercial and industrial 366 607 11 456 Consumer: Indirect automobile 990 1,080 135 884 Home equity 346 351 — 449 Other consumer 48 49 7 34 Total $ 6,335 $ 8,146 $ 153 $ 7,647 December 31, 2019 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 3,911 $ 5,733 $ — $ 3,209 Multifamily 385 409 — 192 Residential real estate 2,341 2,850 — 2,313 Commercial and industrial 905 1,109 — 601 Consumer: Indirect automobile 607 740 — 441 Home equity 415 467 — 307 Other consumer 11 11 — 10 Total $ 8,575 $ 11,319 $ — $ 7,073 With an allowance recorded: Consumer: Indirect automobile $ 346 $ 376 $ 107 $ 262 Total $ 346 $ 376 $ 107 $ 262 Total: Commercial real estate: Non-residential $ 3,911 $ 5,733 $ — $ 3,209 Multifamily 385 409 — 192 Residential real estate 2,341 2,850 — 2,313 Commercial and industrial 905 1,109 — 601 Consumer: Indirect automobile 953 1,116 107 703 Home equity 415 467 — 307 Other consumer 11 11 — 10 Total $ 8,921 $ 11,695 $ 107 $ 7,335 |
Schedule of loan balances by segment | Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2020 Allowance for loan losses: Beginning balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Provision for loan losses 3,341 18 585 3,166 28 7,138 Loans charged-off — — (153) (2,307) (47) (2,507) Recoveries 4 — 15 998 31 1,048 Ending balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 Ending balance: Loans deemed impaired $ — $ — $ 11 $ 135 $ 7 $ 153 Loans not deemed impaired $ 5,354 $ 117 $ 1,039 $ 4,839 $ 131 $ 11,480 Loan receivables: Ending balance $ 284,120 $ 39,239 $ 154,016 $ 376,260 $ 22,981 $ 876,616 Ending balance: Loans deemed impaired $ 1,944 $ 2,641 $ 366 $ 990 $ 394 $ 6,335 Loans not deemed impaired $ 282,176 $ 36,598 $ 153,650 $ 375,270 $ 22,587 $ 870,281 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2019 Allowance for loan losses: Beginning balance $ 1,080 $ 320 $ 1,542 $ 2,915 $ 789 $ 6,646 Provision for loan losses 2,679 (302) (645) 1,332 (604) 2,460 Loans charged-off (1,750) — (312) (2,083) (132) (4,277) Recoveries — 81 18 953 73 1,125 Ending balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Ending balance: Loans deemed impaired $ — $ — $ — $ 107 $ — $ 107 Loans not deemed impaired $ 2,009 $ 99 $ 603 $ 3,010 $ 126 $ 5,847 Loan receivables: Ending balance $ 268,640 $ 43,726 $ 90,554 $ 360,569 $ 26,028 $ 789,517 Ending balance: Loans deemed impaired $ 4,296 $ 2,341 $ 905 $ 953 $ 426 $ 8,921 Loans not deemed impaired $ 264,344 $ 41,385 $ 89,649 $ 359,616 $ 25,602 $ 780,596 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Premises and Equipment | |
Schedule of premises and equipment | December 31, December 31, 2020 2019 Land $ 3,732 $ 3,690 Buildings and improvements 26,431 25,371 Furniture, fixtures and equipment 13,042 12,090 Construction in process 93 267 Total 43,298 41,418 Less accumulated depreciation (24,459) (23,080) Net $ 18,839 $ 18,338 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Schedule of deposits | December 31, December 31, 2020 2019 Noninterest bearing demand deposits $ 244,344 $ 179,236 Interest bearing accounts: NOW 141,580 95,572 Savings 157,414 121,139 Money market 185,383 158,747 Time certificates of deposit 200,643 218,649 Total interest bearing accounts 685,020 594,107 Total deposits $ 929,364 $ 773,343 |
Schedule of contractual maturities of time certificates of deposit | December 31, 2020 Within 1 year $ 147,627 1 – 2 years 29,180 2 – 3 years 9,404 3 – 4 years 6,826 4 – 5 years 7,606 Total $ 200,643 |
Long-Term Debt and FHLB Stock (
Long-Term Debt and FHLB Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt and FHLB Stock | |
Schedule of outstanding principal amounts and related terms of FHLBNY borrowings | Term Principal Maturity Rate Due in one year Long term 1 year bullet 10,000 March 26, 2021 0.80 % 10,000 — 2 year amortizing 2,548 May 17, 2021 2.53 % 2,548 — 2 year bullet 10,000 May 17, 2021 2.46 % 10,000 — 3 year amortizing 1,728 May 17, 2021 2.92 % 1,728 — 3 year amortizing 5,093 May 16, 2022 2.49 % 3,374 1,719 3 year bullet 10,000 May 16, 2022 2.44 % — 10,000 3 year amortizing 11,305 February 28, 2023 1.32 % 4,983 6,322 Total $ 50,674 Weighted Average Rate 1.90 % $ 32,633 $ 18,041 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of components of the provision for income taxes | Years Ended December 31, 2020 2019 Current expense: Federal $ 3,078 $ 1,621 State 12 2 Total 3,090 1,623 Deferred expense: Federal (1,531) (94) Total provision for income taxes $ 1,559 $ 1,529 |
Schedule of differences between the provision for income taxes and statutory federal income tax rate | Years ended December 31, 2020 2019 Provision at statutory rate $ 1,570 % $ 1,573 % Tax exempt income (79) % (84) % State income taxes, net of federal income tax benefit 12 % 12 % Other, net 56 % 28 % Effective income tax and rate $ 1,559 % $ 1,529 % |
Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities | December 31, 2020 2019 Deferred tax assets: Allowance for loan losses $ 3,141 $ 1,608 Deferred expenses 47 58 Deferred compensation 1,271 879 Unrecognized pension liability 1,272 1,038 Postretirement liability 954 932 Deferred loss on OREO 83 187 Deferred loan fees 158 — Unrealized loss on securities — 53 State tax NOLs 990 870 Other 324 201 Gross deferred tax assets 8,240 5,826 Deferred tax liabilities: Prepaid expenses (217) (209) Prepaid pension (1,276) (1,248) Deferred loan fees — (207) Depreciation and amortization (375) (104) Unrealized gain on securities (264) — Mortgage servicing rights (645) (601) Gross deferred tax liabilities (2,777) (2,369) Net deferred tax asset 5,463 3,457 Deferred tax valuation allowance (1,760) (1,202) Deferred tax assets, net of allowance $ 3,703 $ 2,255 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits | |
Schedule of employee stock ownership plan | 2020 2019 Allocated 21,821 — Committed to be allocated 21,821 21,821 Unallocated 392,783 414,604 Paid out to participants (68) — Total shares 436,357 436,425 |
Schedule of assumptions used and fair value for options granted | December 31, 2020 Expected term (years) 6 Expected dividend yield Weighted-average expected volatility Weighted-average risk-free interest rate Weighted-average fair value of options granted $ |
Summary of options | Weighted - Weighted-Average Number of Average Contractual Term Shares Exercise Price (in Years) Options outstanding at beginning of year - $ - - Options granted 448,385 6.61 6.00 Options exercised - - - Forfeited - - - Options outstanding at December 31, 2020 448,385 $ 6.61 6.00 Options exercisable at December 31, 2020 - - - |
Summary of Company’s restricted stock activity | Weighted-Average Number Grant Date of Shares Fair Value Non-vested restricted stock at beginning of year - $ - Granted 169,769 6.57 Vested - - Forfeited - - Non-vested restricted stock at end of year 169,769 $ 6.57 |
Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition | December 31, December 31, 2020 2019 Projected and accumulated benefit obligation $ (23,964) $ (20,953) Plan assets at fair value 22,634 20,628 Funded status included in accrued expenses and other liabilities $ (1,330) $ (325) |
Schedule of amounts recognized in accumulated other comprehensive loss | Years ended December 31, 2020 2019 Net actuarial loss $ 6,055 $ 4,948 |
Schedule of net periodic pension cost and amounts recognized in other comprehensive income | Year ended Year ended December 31, December 31, 2020 2019 Interest cost $ 670 $ 734 Expected return on plan assets (1,058) (868) Amortization of unrecognized loss 285 345 Net periodic (benefit) cost $ (103) $ 211 |
Schedule of weighted-average assumptions used to determine the pension benefit obligation | Years ended December 31, 2020 2019 Discount rate 2.50 % 3.25 % Rate of compensation increase N/A N/A Years ended December 31, 2020 2019 Discount rate 3.25 % 4.20 % Expected long-term return on plan assets 5.50 % 5.50 % Rate of compensation increase N/A N/A |
Schedule of fair value of pension plan assets, by fair value hierarchy | December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 15,189 $ — $ — $ 15,189 Equity 6,206 — — 6,206 Other 1,239 — — 1,239 Total assets at fair value $ 22,634 $ — $ — $ 22,634 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 14,143 $ — $ — $ 14,143 Equity 5,256 — — 5,256 Other 1,229 — — 1,229 Total assets at fair value $ 20,628 $ — $ — $ 20,628 |
Schedule of employer contributions and benefit payments | Year ended December 31, 2020 2019 Benefits paid $ 600 $ 503 |
Schedule of benefit payments, which reflect expected future service | Fiscal Year Ending Pension Benefits 2021 $ 780 2022 790 2023 810 2024 890 2025 920 2026 – 2030 5,290 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of future minimum payments for operating leases | Years ending December 31: 2021 $ 637 2022 593 2023 570 2024 566 2025 579 Thereafter 4,507 Total future minimum lease payments 7,452 Amounts representing interest (1,163) Present Value of Net Future Minimum Lease Payments $ 6,289 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Schedule of contract amounts represent off-balance sheet credit risk | Years ended December 31, 2020 2019 Commitments to extend credit summarized as follows: Future loan commitments $ 14,356 $ 9,881 Undisbursed construction loans 3,493 10,202 Undisbursed home equity lines of credit 10,686 10,277 Undisbursed commercial and other line of credit 63,911 59,234 Standby letters of credit 5,681 5,290 Total $ 98,127 $ 94,884 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters | |
Schedule of actual capital amounts and ratios | To be Well Capitalized under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Rhinebeck Bank Total capital (to risk-weighted assets) $ 121,604 13.97 % $ 69,614 8.00 % $ 87,018 10.00 % Tier 1 capital (to risk-weighted assets) 110,717 12.72 % 52,211 6.00 % 69,614 8.00 % Common equity tier one capital (to risk weighted assets) 110,717 12.72 % 39,158 4.50 % 56,562 6.50 % Tier 1 capital (to average assets) 110,717 9.95 % 44,529 4.00 % 55,662 5.00 % December 31, 2019 Rhinebeck Bank Total capital (to risk-weighted assets) $ 109,799 12.83 % $ 68,481 8.00 % $ 85,602 10.00 % Tier 1 capital (to risk-weighted assets) 103,845 12.13 % 51,361 6.00 % 68,481 8.00 % Common equity tier one capital (to risk weighted assets) 103,845 12.13 % 38,521 4.50 % 55,641 6.50 % Tier 1 capital (to average assets) 103,845 10.84 % 38,325 4.00 % 47,907 5.00 % |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value | |
Schedule of assets carried at fair value on a recurring basis | Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2020 U.S. government agency mortgage-backed securities-residential $ 89,270 $ — $ 89,270 $ — U.S. government agency securities 7,161 — 7,161 — Municipal securities 1,476 — 1,316 160 Corporate Bonds 4,446 — 4,446 — Other 580 — 580 — Total $ 102,933 $ — $ 102,773 $ 160 December 31, 2019 U.S. government agency mortgage-backed securities – residential $ 98,478 $ — $ 98,478 $ — U.S. government agency securities 12,076 — 12,076 — Municipal securities 1,396 — 1,216 180 Corporate Bonds 2,273 — 2,273 — Other 609 — 609 — Total $ 114,832 $ — $ 114,652 $ 180 |
Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis | Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2020 Impaired loans, with specific reserves $ 509 $ — $ — $ 509 Other real estate owned 139 — — 139 Total $ 648 $ — $ — $ 648 December 31, 2019 Impaired loans, with specific reserves $ 239 $ — $ — $ 239 Other real estate owned 1,417 — — 1,417 Total $ 1,656 $ — $ — $ 1,656 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Average) December 31, 2020 Impaired loans $ 509 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% Other real estate owned 139 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% December 31, 2019 Impaired loans $ 239 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% Other real estate owned 1,417 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% (1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value. (3) Estimated costs to sell. |
Schedule of carrying value and fair values of the financial instruments | December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 1) $ 93,485 $ 93,485 $ 11,978 $ 11,978 Available for sale securities (Level 2) 102,773 102,773 114,652 114,652 Available for sale securities (Level 3) 160 160 180 180 FHLB stock (Level 2) 2,787 2,787 3,435 3,435 Loans, net (Level 3) 873,813 876,699 793,471 796,262 Mortgage servicing rights (Level 3) 2,390 3,569 2,226 4,137 Financial Liabilities: Deposits (Level 2) 929,364 941,460 773,343 762,272 Mortgagors' escrow accounts (Level 2) 8,494 8,501 8,106 8,107 FHLB advances (Level 2) 50,674 51,468 66,304 66,724 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss. | |
Schedule of accumulated other comprehensive loss components | Accumulated Other Comprehensive Loss (1) Unrealized gains (losses) on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) Other comprehensive (loss) gain before reclassifications (1,100) 1,165 65 Amounts reclassified from accumulated other comprehensive loss 225 23 248 Period change (875) 1,188 313 Balance at December 31, 2020 $ (4,784) $ 993 $ (3,791) Balance at December 31, 2018 $ (4,436) $ (2,576) $ (7,012) Other comprehensive gain before reclassifications 254 2,327 2,581 Amounts reclassified from accumulated other comprehensive loss 273 54 327 Period change 527 2,381 2,908 Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0% in fiscal 2020 and 21.0% in fiscal 2019. Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended Affected Line Item in the Consolidated December 31, Statement of Income 2020 2019 Securities available for sale (1) : Net securities losses reclassified into earnings $ (29) $ (69) Net realized loss on sales and calls of securities Related income tax expense 6 15 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (23) (54) Defined benefit pension plan (2) : Amortization of net loss and prior service costs (285) (346) Other noninterest expense Related income tax expense 60 73 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (225) (273) Total reclassifications for the period $ (248) $ (327) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 2, “Available for Sale Securities.” (2) Included in the computation of net periodic pension cost. See Note 8, “Employee Benefits” for additional details. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | Year ended December 31, 2020 2019 Net income applicable to common stock $ 5,917 $ 5,963 Average number of common shares outstanding 11,133,290 11,133,290 Less: Average unearned ESOP shares 403,694 425,514 Average number of common shares outstanding used to calculate basic earnings per common share 10,729,596 10,707,776 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 10,245 — Additional common stock equivalents (stock options) used to calculate diluted earnings per share — — Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,739,841 10,707,776 Earnings per Common share: Basic $ 0.55 $ 0.56 Diluted $ 0.55 $ 0.56 |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Details) $ in Thousands | Jan. 01, 2020USD ($) | Dec. 31, 2020USD ($)location | Dec. 31, 2019USD ($) |
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Number of branches | location | 11 | ||
Number of representative offices | location | 2 | ||
Percentage of credit extension | 80.00% | ||
Threshold percentage for loan amount against the original appraised value of the property | 90.00% | ||
Threshold percentage for private mortgage insurance required for that portion of loan | 80.00% | ||
Amount of consumer mortgages and loans secured by residential real estate properties in process of foreclosure | $ 636 | $ 781 | |
Amortization method purchased customer accounts | straight-line basis | ||
Real Estate Acquired Through Foreclosure | $ 139 | 1,417 | |
Useful life of purchased customer accounts | 13 years | ||
Lease, Practical Expedients, Package [true false] | true | ||
Other assets | $ 8,825 | 5,209 | |
Accrued expenses and other liabilities | 18,643 | 11,156 | |
Operating Lease, Right-of-Use Asset | $ 6,289 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | ||
Operating Lease, Liability | $ 6,289 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued expenses and other liabilities | ||
Residential Real Estate | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Real Estate Acquired Through Foreclosure | $ 0 | 935 | |
Commercial real estate | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Real Estate Acquired Through Foreclosure | $ 139 | $ 482 | |
Accounting Standards Update 2016-02 | Scenario Forecast Adjustment | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Other assets | $ 6,700 | ||
Accrued expenses and other liabilities | $ 6,700 |
Available for Sale Securities_2
Available for Sale Securities (Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 101,676 | $ 115,080 |
Gross Unrealized Gains | 1,578 | 613 |
Gross Unrealized Losses | (321) | (861) |
Fair Value | 102,933 | 114,832 |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 88,197 | 98,842 |
Gross Unrealized Gains | 1,350 | 464 |
Gross Unrealized Losses | (277) | (828) |
Fair Value | 89,270 | 98,478 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,013 | 12,049 |
Gross Unrealized Gains | 148 | 53 |
Gross Unrealized Losses | (26) | |
Fair Value | 7,161 | 12,076 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,445 | 1,384 |
Gross Unrealized Gains | 31 | 17 |
Gross Unrealized Losses | (5) | |
Fair Value | 1,476 | 1,396 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,400 | 2,250 |
Gross Unrealized Gains | 49 | 25 |
Gross Unrealized Losses | (3) | (2) |
Fair Value | 4,446 | 2,273 |
Other Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 621 | 555 |
Gross Unrealized Gains | 54 | |
Gross Unrealized Losses | (41) | |
Fair Value | $ 580 | $ 609 |
Available for Sale Securities_3
Available for Sale Securities (Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 31,512 | $ 36,851 |
Less Than 12 Months Unrealized Losses | (313) | (309) |
12 Months or Longer Fair Value | 293 | 34,253 |
12 Months or Longer Unrealized Losses | (8) | (552) |
Fair Value | 31,805 | 71,104 |
Unrealized Losses | (321) | (861) |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 30,243 | 35,612 |
Less Than 12 Months Unrealized Losses | (269) | (302) |
12 Months or Longer Fair Value | 293 | 27,252 |
12 Months or Longer Unrealized Losses | (8) | (526) |
Fair Value | 30,536 | 62,864 |
Unrealized Losses | (277) | (828) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
12 Months or Longer Fair Value | 7,001 | |
12 Months or Longer Unrealized Losses | (26) | |
Fair Value | 7,001 | |
Unrealized Losses | (26) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 490 | |
Less Than 12 Months Unrealized Losses | (5) | |
Fair Value | 490 | |
Unrealized Losses | (5) | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 747 | 749 |
Less Than 12 Months Unrealized Losses | (3) | (2) |
Fair Value | 747 | 749 |
Unrealized Losses | (3) | $ (2) |
Other Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 522 | |
Less Than 12 Months Unrealized Losses | (41) | |
Fair Value | 522 | |
Unrealized Losses | $ (41) |
Available for Sale Securities_4
Available for Sale Securities (Schedule of maturities of debt securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Within 1 year | $ 102 | $ 175 |
After 1 but within 5 years | 2,155 | 7,027 |
After 5 but within 10 years | 9,946 | 7,806 |
After 10 years | 655 | 675 |
Total Maturities | 12,858 | 15,683 |
Mortgage-backed securities | 88,197 | 98,842 |
Other | 621 | 555 |
Amortized Cost | 101,676 | 115,080 |
Fair Value | ||
Within 1 year | 102 | 175 |
After 1 but within 5 years | 2,155 | 7,001 |
After 5 but within 10 years | 10,162 | 7,899 |
After 10 years | 664 | 670 |
Total Maturities | 13,083 | 15,745 |
Mortgage-backed securities | 89,270 | 98,478 |
Other | 580 | 609 |
Fair Value | $ 102,933 | $ 114,832 |
Available for Sale Securities_5
Available for Sale Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Available for Sale Securities | ||
Number of individual available-for-sale securities with unrealized losses | security | 36 | 80 |
Unrealized Losses | $ 321 | $ 861 |
Aggregate percentage of depreciation | 1.01% | 1.21% |
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | $ 18,123 | $ 23,782 |
Available for sale securities pledged to secure Federal Reserve Bank of New York ("FRBNY") borrowings | 1,059 | 726 |
Proceeds from the sale of available for sale securities and calls | 6,996 | 11,938 |
Gains on sales of investment securities | 0 | 0 |
Losses on sales of investment securities | $ 29 | $ 69 |
Loans and Allowance for Lease_3
Loans and Allowance for Lease and Loan Losses (Schedule of summary loan portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | $ 876,616 | $ 789,517 | |
Net deferred loan costs | 8,830 | 9,908 | |
Allowance for loan losses | (11,633) | (5,954) | $ (6,646) |
Total net loans | 873,813 | 793,471 | |
Commercial real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 284,120 | 268,640 | |
Allowance for loan losses | (5,354) | (2,009) | (1,080) |
Commercial real estate | Undisbursed construction loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 5,392 | 20,354 | |
Commercial real estate | Non-residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 248,349 | 228,157 | |
Commercial real estate | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 30,379 | 20,129 | |
Residential Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 39,239 | 43,726 | |
Allowance for loan losses | (117) | (99) | (320) |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 154,016 | 90,554 | |
Allowance for loan losses | (1,050) | (603) | (1,542) |
Commercial and industrial | Small Business Administration Paycheck Protection Program | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 75,366 | ||
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 22,981 | 26,028 | |
Allowance for loan losses | (138) | (126) | (789) |
Consumer | Indirect automobile | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 376,260 | 360,569 | |
Allowance for loan losses | (4,974) | (3,117) | $ (2,915) |
Consumer | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 14,165 | 16,276 | |
Consumer | Other consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | $ 8,816 | $ 9,752 |
Loans and Allowance for Lease_4
Loans and Allowance for Lease and Loan Losses (Schedule of loans by risk rating and portfolio segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | $ 876,616 | $ 789,517 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 858,751 | 775,060 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 10,863 | 4,882 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 7,002 | 9,575 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 284,120 | 268,640 |
Commercial real estate | Undisbursed construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 5,392 | 20,354 |
Commercial real estate | Undisbursed construction loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 5,392 | 20,354 |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 248,349 | 228,157 |
Commercial real estate | Non-residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 240,778 | 219,485 |
Commercial real estate | Non-residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 5,468 | 4,285 |
Commercial real estate | Non-residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 2,103 | 4,387 |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 30,379 | 20,129 |
Commercial real estate | Multifamily | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 30,379 | 19,744 |
Commercial real estate | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 385 | |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 39,239 | 43,726 |
Residential Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 36,597 | 41,385 |
Residential Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 2,642 | 2,341 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 154,016 | 90,554 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 147,748 | 88,874 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 5,395 | 597 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 873 | 1,083 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 22,981 | 26,028 |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 376,260 | 360,569 |
Consumer | Indirect automobile | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 375,270 | 359,616 |
Consumer | Indirect automobile | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 990 | 953 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 14,165 | 16,276 |
Consumer | Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 13,819 | 15,861 |
Consumer | Home equity | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 346 | 415 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 8,816 | 9,752 |
Consumer | Other consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 8,768 | 9,741 |
Consumer | Other consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | $ 48 | $ 11 |
Loans and Allowance for Lease_5
Loans and Allowance for Lease and Loan Losses (Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 858,608,000 | $ 771,913,000 |
Total gross loans | 876,616,000 | 789,517,000 |
Nonaccrual | 6,335,000 | 8,921,000 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11,616,000 | 7,961,000 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,853,000 | 2,631,000 |
Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,539,000 | 7,012,000 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 284,120,000 | 268,640,000 |
Commercial real estate | Undisbursed construction loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,392,000 | 20,354,000 |
Total gross loans | 5,392,000 | 20,354,000 |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 244,387,000 | 222,953,000 |
Total gross loans | 248,349,000 | 228,157,000 |
Nonaccrual | 1,944,000 | 3,911,000 |
Commercial real estate | Non-residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,985,000 | 409,000 |
Commercial real estate | Non-residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 33,000 | 884,000 |
Commercial real estate | Non-residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,944,000 | 3,911,000 |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 30,379,000 | 19,744,000 |
Total gross loans | 30,379,000 | 20,129,000 |
Nonaccrual | 385,000 | |
Commercial real estate | Multifamily | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 385,000 | |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 36,581,000 | 42,403,000 |
Total gross loans | 39,239,000 | 43,726,000 |
Nonaccrual | 2,641,000 | 2,341,000 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,351,000 | 427,000 |
Residential Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 138,000 | 116,000 |
Residential Real Estate | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,169,000 | 780,000 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 151,771,000 | 89,401,000 |
Total gross loans | 154,016,000 | 90,554,000 |
Nonaccrual | 366,000 | 905,000 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,551,000 | 288,000 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 511,000 | 198,000 |
Commercial and industrial | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 183,000 | 667,000 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 22,981,000 | 26,028,000 |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 367,929,000 | 351,840,000 |
Total gross loans | 376,260,000 | 360,569,000 |
Nonaccrual | 990,000 | 953,000 |
Consumer | Indirect automobile | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6,321,000 | 6,494,000 |
Consumer | Indirect automobile | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,063,000 | 1,294,000 |
Consumer | Indirect automobile | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 947,000 | 941,000 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,506,000 | 15,726,000 |
Total gross loans | 14,165,000 | 16,276,000 |
Nonaccrual | 346,000 | 415,000 |
Consumer | Home equity | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 310,000 | 142,000 |
Consumer | Home equity | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 101,000 | 91,000 |
Consumer | Home equity | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 248,000 | 317,000 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 8,663,000 | 9,492,000 |
Total gross loans | 8,816,000 | 9,752,000 |
Nonaccrual | 48,000 | 11,000 |
Consumer | Other consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 98,000 | 201,000 |
Consumer | Other consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7,000 | 48,000 |
Consumer | Other consumer | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 48,000 | $ 11,000 |
Loans and Allowance for Lease_6
Loans and Allowance for Lease and Loan Losses (Schedule of information to impaired loans by loan portfolio class) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
With no related allowance recorded: | ||
Recorded Investment | $ 5,673 | $ 8,575 |
Unpaid Principal Balance | 7,463 | 11,319 |
Average Recorded Investment | 7,013 | 7,073 |
With an allowance recorded: | ||
Recorded Investment | 662 | 346 |
Unpaid Principal Balance | 683 | 376 |
Related Allowance | 153 | 107 |
Average Recorded Investment | 634 | 262 |
Total: | ||
Recorded Investment | 6,335 | 8,921 |
Unpaid Principal Balance | 8,146 | 11,695 |
Related Allowance | 153 | 107 |
Average Recorded Investment | 7,647 | 7,335 |
Commercial real estate | Non-residential | ||
With no related allowance recorded: | ||
Recorded Investment | 1,944 | 3,911 |
Unpaid Principal Balance | 2,973 | 5,733 |
Average Recorded Investment | 3,086 | 3,209 |
Total: | ||
Recorded Investment | 1,944 | 3,911 |
Unpaid Principal Balance | 2,973 | 5,733 |
Average Recorded Investment | 3,086 | 3,209 |
Commercial real estate | Multifamily | ||
With no related allowance recorded: | ||
Recorded Investment | 385 | |
Unpaid Principal Balance | 409 | |
Average Recorded Investment | 184 | 192 |
Total: | ||
Recorded Investment | 385 | |
Unpaid Principal Balance | 409 | |
Average Recorded Investment | 184 | 192 |
Residential Real Estate | ||
With no related allowance recorded: | ||
Recorded Investment | 2,641 | 2,341 |
Unpaid Principal Balance | 3,086 | 2,850 |
Average Recorded Investment | 2,554 | 2,313 |
Total: | ||
Recorded Investment | 2,641 | 2,341 |
Unpaid Principal Balance | 3,086 | 2,850 |
Average Recorded Investment | 2,554 | 2,313 |
Commercial and industrial | ||
With no related allowance recorded: | ||
Recorded Investment | 345 | 905 |
Unpaid Principal Balance | 586 | 1,109 |
Average Recorded Investment | 426 | 601 |
With an allowance recorded: | ||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
Related Allowance | 11 | |
Average Recorded Investment | 30 | |
Total: | ||
Recorded Investment | 366 | 905 |
Unpaid Principal Balance | 607 | 1,109 |
Related Allowance | 11 | |
Average Recorded Investment | 456 | 601 |
Consumer | Indirect automobile | ||
With no related allowance recorded: | ||
Recorded Investment | 397 | 607 |
Unpaid Principal Balance | 467 | 740 |
Average Recorded Investment | 293 | 441 |
With an allowance recorded: | ||
Recorded Investment | 593 | 346 |
Unpaid Principal Balance | 613 | 376 |
Related Allowance | 135 | 107 |
Average Recorded Investment | 591 | 262 |
Total: | ||
Recorded Investment | 990 | 953 |
Unpaid Principal Balance | 1,080 | 1,116 |
Related Allowance | 135 | 107 |
Average Recorded Investment | 884 | 703 |
Consumer | Home equity | ||
With no related allowance recorded: | ||
Recorded Investment | 346 | 415 |
Unpaid Principal Balance | 351 | 467 |
Average Recorded Investment | 449 | 307 |
Total: | ||
Recorded Investment | 346 | 415 |
Unpaid Principal Balance | 351 | 467 |
Average Recorded Investment | 449 | 307 |
Consumer | Other consumer | ||
With no related allowance recorded: | ||
Recorded Investment | 11 | |
Unpaid Principal Balance | 11 | |
Average Recorded Investment | 21 | 10 |
With an allowance recorded: | ||
Recorded Investment | 48 | |
Unpaid Principal Balance | 49 | |
Related Allowance | 7 | |
Average Recorded Investment | 13 | |
Total: | ||
Recorded Investment | 48 | 11 |
Unpaid Principal Balance | 49 | 11 |
Related Allowance | 7 | |
Average Recorded Investment | $ 34 | $ 10 |
Loans and Allowance for Lease_7
Loans and Allowance for Lease and Loan Losses (Schedule of loan balances by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for loan losses: | ||
Beginning balance | $ 5,954 | $ 6,646 |
Provision for loan losses | 7,138 | 2,460 |
Loans charged-off | (2,507) | (4,277) |
Recoveries | 1,048 | 1,125 |
Ending balance | 11,633 | 5,954 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 153 | 107 |
Ending balance: Collectively evaluated for impairment | 11,480 | 5,847 |
Loan receivables: | ||
Ending balance | 876,616 | 789,517 |
Ending balance: Individually evaluated for impairment | 6,335 | 8,921 |
Ending balance: Collectively evaluated for impairment | 870,281 | 780,596 |
Commercial real estate | ||
Allowance for loan losses: | ||
Beginning balance | 2,009 | 1,080 |
Provision for loan losses | 3,341 | 2,679 |
Loans charged-off | (1,750) | |
Recoveries | 4 | |
Ending balance | 5,354 | 2,009 |
Allowance for loan losses: | ||
Ending balance: Collectively evaluated for impairment | 5,354 | 2,009 |
Loan receivables: | ||
Ending balance | 284,120 | 268,640 |
Ending balance: Individually evaluated for impairment | 1,944 | 4,296 |
Ending balance: Collectively evaluated for impairment | 282,176 | 264,344 |
Residential Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 99 | 320 |
Provision for loan losses | 18 | (302) |
Recoveries | 81 | |
Ending balance | 117 | 99 |
Allowance for loan losses: | ||
Ending balance: Collectively evaluated for impairment | 117 | 99 |
Loan receivables: | ||
Ending balance | 39,239 | 43,726 |
Ending balance: Individually evaluated for impairment | 2,641 | 2,341 |
Ending balance: Collectively evaluated for impairment | 36,598 | 41,385 |
Commercial and industrial | ||
Allowance for loan losses: | ||
Beginning balance | 603 | 1,542 |
Provision for loan losses | 585 | (645) |
Loans charged-off | (153) | (312) |
Recoveries | 15 | 18 |
Ending balance | 1,050 | 603 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 11 | |
Ending balance: Collectively evaluated for impairment | 1,039 | 603 |
Loan receivables: | ||
Ending balance | 154,016 | 90,554 |
Ending balance: Individually evaluated for impairment | 366 | 905 |
Ending balance: Collectively evaluated for impairment | 153,650 | 89,649 |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 126 | 789 |
Provision for loan losses | 28 | (604) |
Loans charged-off | (47) | (132) |
Recoveries | 31 | 73 |
Ending balance | 138 | 126 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 7 | |
Ending balance: Collectively evaluated for impairment | 131 | 126 |
Loan receivables: | ||
Ending balance | 22,981 | 26,028 |
Ending balance: Individually evaluated for impairment | 394 | 426 |
Ending balance: Collectively evaluated for impairment | 22,587 | 25,602 |
Consumer | Indirect automobile | ||
Allowance for loan losses: | ||
Beginning balance | 3,117 | 2,915 |
Provision for loan losses | 3,166 | 1,332 |
Loans charged-off | (2,307) | (2,083) |
Recoveries | 998 | 953 |
Ending balance | 4,974 | 3,117 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 135 | 107 |
Ending balance: Collectively evaluated for impairment | 4,839 | 3,010 |
Loan receivables: | ||
Ending balance | 376,260 | 360,569 |
Ending balance: Individually evaluated for impairment | 990 | 953 |
Ending balance: Collectively evaluated for impairment | $ 375,270 | $ 359,616 |
Loans and Allowance for Lease_8
Loans and Allowance for Lease and Loan Losses (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount of loan | $ 1,571,000 | $ 1,659,000 | |
Number of loans default | 3 | 3 | |
Balance of capitalized servicing rights | $ 2,390,000 | $ 2,226,000 | |
Aggregate balances of loans serviced to participants | 4,291,000 | 4,645,000 | |
Aggregate balances of loans serviced to third party | 300,700,000 | 270,730,000 | |
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | 0 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 0 | 0 | |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans default | loan | 2 | ||
Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans default | loan | 1 | ||
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balances of loans held for sale | $ 2,718,000 | $ 2,684,000 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of premises and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 43,298 | $ 41,418 |
Less accumulated depreciation | (24,459) | (23,080) |
Net | 18,839 | 18,338 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,732 | 3,690 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 26,431 | 25,371 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 13,042 | 12,090 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 93 | $ 267 |
Deposits (Schedule of deposits)
Deposits (Schedule of deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Noninterest bearing demand deposits | $ 244,344 | $ 179,236 |
Interest bearing accounts: | ||
NOW | 141,580 | 95,572 |
Savings | 157,414 | 121,139 |
Money market | 185,383 | 158,747 |
Time certificates of deposit | 200,643 | 218,649 |
Total interest bearing accounts | 685,020 | 594,107 |
Total deposits | $ 929,364 | $ 773,343 |
Deposits (Schedule of contractu
Deposits (Schedule of contractual maturities of time certificates of deposit) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Within 1 year | $ 147,627 | |
1 - 2 years | 29,180 | |
2 - 3 years | 9,404 | |
3 - 4 years | 6,826 | |
4 - 5 years | 7,606 | |
Total | $ 200,643 | $ 218,649 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deposits [Line Items] | ||
Reciprocal deposits | $ 30,012 | $ 21,270 |
Time certificates of deposit in denominations of $250 or greater | $ 34,565 | $ 44,605 |
Maximum | ||
Deposits [Line Items] | ||
Maturity terms | 3 years | |
Minimum | ||
Deposits [Line Items] | ||
Maturity terms | 1 year |
Long-Term Debt and FHLB Stock_2
Long-Term Debt and FHLB Stock (Schedule of outstanding principal amounts and related terms of FHLBNY borrowings) (Details) - Federal Home Loan Bank of New York ("FHLBNY") $ in Thousands | Dec. 31, 2020USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 50,674 |
Rate | 1.90% |
Due in one year | $ 32,633 |
Long term | 18,041 |
1 year bullet on March 26 , 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 0.80% |
Due in one year | $ 10,000 |
2 year amortizing on May 17, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 2,548 |
Rate | 2.53% |
Due in one year | $ 2,548 |
2 year bullet on May 17, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 2.46% |
Due in one year | $ 10,000 |
3 year amortizing on May 17, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 1,728 |
Rate | 2.92% |
Due in one year | $ 1,728 |
3 year amortizing on May 16, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 5,093 |
Rate | 2.49% |
Due in one year | $ 3,374 |
Long term | 1,719 |
3 year bullet on May 16, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 2.44% |
Long term | $ 10,000 |
3 year amortizing February 28, 2023 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 11,305 |
Rate | 1.32% |
Due in one year | $ 4,983 |
Long term | $ 6,322 |
Long-Term Debt and FHLB Stock_3
Long-Term Debt and FHLB Stock (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||
Advances from Federal Home Loan Banks | $ 50,674 | $ 66,304 | |
Funding received | (4,302) | 13,209 | |
Zions Bank | |||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||
Line of credit, maximum borrowing capacity | 10,000 | ||
Line of credit facility, maximum amount outstanding during period | $ 0 | $ 0 | |
Paycheck Protection Program | |||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||
Interest rate | 0.35% | ||
Percentage of Principal Funding | 100.00% | ||
Funding received | $ 70,100 | ||
Subordinated Debt. | |||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||
Interest rate, variable rate basis | 3-month LIBOR | ||
Interest LIBOR rate | 2.00% | ||
Interest rate | 2.21% | 3.91% | |
Subordinated debt securities | $ 5,155 | ||
Stated maturity date | May 23, 2035 | ||
Subordinated Debt. | RSB Capital Trust I | |||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||
Interest rate, variable rate basis | 3-month LIBOR | ||
Interest LIBOR rate | 2.00% | ||
Trust term | 30 years | ||
Federal Home Loan Bank of New York ("FHLBNY") | |||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | $ 564,330 | $ 486,906 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 175,011 | 168,230 | |
Advances from Federal Home Loan Banks | 50,674 | ||
Impairment Related To Federal Home Loan Stock | 0 | 0 | |
Federal Home Loan Bank of New York ("FHLBNY") | Maturity Overnight [Member] | |||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||
Advances from Federal Home Loan Banks | $ 0 | $ 22,500 |
Income Taxes (Schedule of compo
Income Taxes (Schedule of components of the provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current expense: | ||
Federal | $ 3,078 | $ 1,621 |
State | 12 | 2 |
Total | 3,090 | 1,623 |
Deferred expense: | ||
Federal | 1,531 | 94 |
Total provision for income taxes | $ 1,559 | $ 1,529 |
Income Taxes (Schedule of diffe
Income Taxes (Schedule of differences between the provision for income taxes and statutory federal income tax rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
Provision at statutory rate | $ 1,570 | $ 1,573 |
Tax exempt income | (79) | (84) |
State income taxes, net of federal income tax benefit | 12 | 12 |
Other, net | 56 | 28 |
Effective income tax | $ 1,559 | $ 1,529 |
Provision at statutory rate, Percent | 21.00% | 21.00% |
Tax exempt income, percent | (1.00%) | (1.00%) |
State income taxes, net of federal income tax benefit, percent | 0.00% | 0.00% |
Other, net, percent | 1.00% | 0.00% |
Effective income tax and rate, percent | 21.00% | 20.00% |
Income Taxes (Schedule of tax e
Income Taxes (Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,141 | $ 1,608 |
Deferred expenses | 47 | 58 |
Deferred compensation | 1,271 | 879 |
Unrecognized pension liability | 1,272 | 1,038 |
Postretirement liability | 954 | 932 |
Deferred loss on OREO | 83 | 187 |
Deferred loan fees | 158 | |
Unrealized loss on securities | 53 | |
State tax NOLs | 990 | 870 |
Other | 324 | 201 |
Gross deferred tax assets | 8,240 | 5,826 |
Deferred tax liabilities: | ||
Prepaid expenses | (217) | (209) |
Prepaid pension | (1,276) | (1,248) |
Deferred loan fees | (207) | |
Depreciation and amortization | (375) | (104) |
Unrealized gain on securities | (264) | |
Mortgage servicing rights | (645) | (601) |
Gross deferred tax liabilities | (2,777) | (2,369) |
Net deferred tax asset | 5,463 | 3,457 |
Deferred tax valuation allowance | (1,760) | (1,202) |
Deferred tax assets, net of allowance | $ 3,703 | $ 2,255 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
State tax NOLs | $ 990 | $ 870 |
Expected federal statutory income tax rate | 21.00% | 21.00% |
Retained earnings includes contingency reserve for loan losses | $ 1,534 | $ 1,534 |
Reserve balance under deferred income taxes | $ 414 | $ 414 |
Employee Benefits (Schedule of
Employee Benefits (Schedule of employee stock ownership plan) (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefits | ||
Allocated | 21,821 | |
Committed to be allocated | 21,821 | 21,821 |
Unallocated | 392,783 | 414,604 |
Paid out to participants | (68) | |
Total shares | 436,357 | 436,425 |
Employee Benefits (Employee Sto
Employee Benefits (Employee Stock Ownership Plan (ESOP) Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2020 | Jan. 16, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Number of share purchase under ESOP | 436,357 | 436,425 | ||
Committed to be allocated | 21,821 | 21,821 | ||
Compensation expense | $ 170 | $ 243 | ||
Employee Stock Ownership Plan (ESOP) | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Number of share purchase under ESOP | 436,425 | |||
ESOP share price | $ 10 | |||
Terms of repurchase share under ESOP | 20 years | |||
Interest rate | 3.25% | 4.25% | ||
Balance of ESOP loan | $ 4,087 | 4,229 | ||
Committed to be allocated | 21,821 | |||
Fair value of unallocated shares | $ 3,358 | 4,689 | ||
Compensation expense | $ 170 | $ 243 |
Employee Benefits (Share-Based
Employee Benefits (Share-Based Compensation Plan Narrative) (Details) - USD ($) $ in Thousands | May 26, 2020 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 216 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for future grants | 97,146 | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for future grants | 48,443 | |
2020 EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 763,743 | |
Vesting period | 3 years | |
Maximum term | 10 years | |
2020 EIP | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 545,531 | |
Percentage of shares of common stock issued | 4.90% | |
Aggregate intrinsic value of options | $ 868 | |
Unrecognized compensation cost related to the nonvested stock options granted | $ 662 | |
Period for Recognition | 2 years 7 months 28 days | |
Aggregate grant date fair value | $ 747 | |
2020 EIP | Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 218,212 | |
Percentage of shares of common stock issued | 1.96% | |
Period for Recognition | 2 years 7 months 24 days | |
Unrecognized compensation cost related to the nonvested restricted stock awards granted | $ 984 | |
Aggregate grant date fair value | $ 1,115 |
Employee Benefits (Schedule o_2
Employee Benefits (Schedule of assumptions used and fair value for options granted) (Details) - 2020 EIP - Stock options | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 6 years |
Expected dividend yield | 0.00% |
Expected volatility | 25.45% |
Risk-free interest rate | 0.29% |
Fair value of options granted | $ 1.67 |
Employee Benefits (Summary of o
Employee Benefits (Summary of options) (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Weighted - Average Exercise Price | |
End of year | $ 6.61 |
2020 EIP | Stock options | |
Shares | |
Options granted | shares | 448,385 |
Options outstanding at December 31, 2020 | shares | 448,385 |
Weighted - Average Exercise Price | |
Granted | $ 6.61 |
End of year | $ 6.61 |
Weighted-Average Contractual Term | |
Weighted-Average Contractual Term, Outstanding | 6 years |
Weighted-Average Contractual Term, Granted | 6 years |
Employee Benefits (Summary of C
Employee Benefits (Summary of Company’s restricted stock activity) (Details) - 2020 EIP - Restricted stock | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of shares | |
Granted (in shares) | shares | 169,769 |
Balance at end of period (in shares) | shares | 169,769 |
Weighted-Average Grant Date Fair Value | |
Granted (in dollars per share) | $ / shares | $ 6.57 |
Balance at end of period (in dollars per share) | $ / shares | $ 6.57 |
Employee Benefits (Schedule o_3
Employee Benefits (Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefits | ||
Projected and accumulated benefit obligation | $ (23,964) | $ (20,953) |
Plan assets at fair value | 22,634 | 20,628 |
Funded status included in accrued expenses and other liabilities | $ (1,330) | $ (325) |
Employee Benefits (Schedule o_4
Employee Benefits (Schedule of amounts recognized in accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefits | ||
Net actuarial loss | $ 6,055 | $ 4,948 |
Employee Benefits (Schedule o_5
Employee Benefits (Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefits | ||
Interest cost | $ 670 | $ 734 |
Expected return on plan assets | (1,058) | (868) |
Amortization of unrecognized loss | 285 | 345 |
Net periodic cost | $ (103) | $ 211 |
Employee Benefits (Schedule o_6
Employee Benefits (Schedule of weighted-average assumptions used to determine the pension benefit obligation) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefits | ||
Discount rate | 2.50% | 3.25% |
Rate of compensation increase | ||
Discount rate | 3.25% | 4.20% |
Expected long-term return on plan assets | 5.50% | 5.50% |
Rate of compensation increase |
Employee Benefits (Schedule o_7
Employee Benefits (Schedule of fair value of pension plan assets, by fair value hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 22,634 | $ 20,628 |
Defined Benefit Pension Plan | Investment in separate accounts fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 15,189 | 14,143 |
Defined Benefit Pension Plan | Investment in separate accounts equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 6,206 | 5,256 |
Defined Benefit Pension Plan | Investment in separate accounts other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 1,239 | 1,229 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 22,634 | 20,628 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 15,189 | 14,143 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 6,206 | 5,256 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 1,239 | $ 1,229 |
Employee Benefits (Schedule o_8
Employee Benefits (Schedule of employer contributions and benefit payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefits | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Defined Benefit Plan, Plan Assets, Benefits Paid | $ 600 | $ 503 |
Employee Benefits (Schedule o_9
Employee Benefits (Schedule of benefit payments, which reflect expected future service) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefits | ||
2021 | $ 780 | |
2022 | 790 | |
2023 | 810 | |
2024 | 890 | |
2025 | 920 | |
2026 - 2030 | 5,290 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Employee Benefits (Various Bene
Employee Benefits (Various Benefits - Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)fund | Dec. 31, 2019USD ($)fund | |
Schedule Of Employee Benefits [Line Items] | |||
Percentage of internal revenue contribution | 25.00% | ||
Percentage of internal revenue service limitations | 6.00% | ||
Number of investment funds | fund | 11 | ||
Number of equity funds | fund | 7 | 7 | |
Number of bond funds | fund | 3 | 3 | |
Number of real estate funds | fund | 1 | 1 | |
Accrued expenses and other liabilities | $ 18,643 | $ 11,156 | |
Non interest expense | 30,065 | 27,925 | |
Employer contribution in defined contribution plan | 993 | 828 | |
Scenario, Plan [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Estimated net actuarial loss | $ (358) | ||
Postretirement Life Insurance [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Liability related to these postretirement benefits | 1,387 | 1,330 | |
Postemployment benefit expense | 57 | 54 | |
Postemployment Retirement Benefits [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Non interest expense | 86 | 78 | |
Liability related to these postretirement benefits | 2,148 | 2,123 | |
Officer [Member] | Deferred Compensation, Share-based Payments [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Accrued expenses and other liabilities | 1,312 | 1,163 | |
Non interest expense | 413 | 593 | |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | Director [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Accrued expenses and other liabilities | 2,483 | 2,086 | |
Non interest expense | $ 178 | $ 126 | |
Maximum | Postemployment Retirement Benefits [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Post retirement benefit period | 20 years | ||
Maximum | Officer [Member] | Deferred Compensation, Share-based Payments [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Terms of services | 5 years | ||
Minimum | Postemployment Retirement Benefits [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Post retirement benefit period | 15 years | ||
Minimum | Officer [Member] | Deferred Compensation, Share-based Payments [Member] | |||
Schedule Of Employee Benefits [Line Items] | |||
Terms of services | 1 year |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Leases | ||
Number of leased branch offices | item | 7 | |
Lessee options to extend | true | |
Weighted average remaining life of the lease terms | 12 years 8 months 12 days | |
Weighted average discount rate | 2.61% | |
Operating lease costs | $ 588 | |
Deferred rent liability | 176 | $ 213 |
Operating lease right-of-use asset | $ 6,289 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | |
Operating lease liability | $ 6,289 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities |
Leases - Future minimum payment
Leases - Future minimum payments for operating leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases | |
2021 | $ 637 |
2022 | 593 |
2023 | 570 |
2024 | 566 |
2025 | 579 |
Thereafter | 4,507 |
Total future minimum lease payments | 7,452 |
Amounts representing interest | (1,163) |
Present Value of Net Future Minimum Lease Payments | $ 6,289 |
Commitments and Contingencies_2
Commitments and Contingencies (Schedule of contract amounts represent off-balance sheet credit risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 98,127 | $ 94,884 |
Future loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 14,356 | 9,881 |
Undisbursed construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 3,493 | 10,202 |
Undisbursed home equity lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 10,686 | 10,277 |
Undisbursed commercial and other line of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 63,911 | 59,234 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 5,681 | $ 5,290 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of actual capital amounts and ratios) (Details) - Rhinebeck Bank - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 121,604 | $ 109,799 |
Total capital (to risk-weighted assets) Actual Ratio | 13.97% | 12.83% |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 69,614 | $ 68,481 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 87,018 | $ 85,602 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) Actual Amount | $ 110,717 | $ 103,845 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 12.72% | 12.13% |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 52,211 | $ 51,361 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 69,614 | $ 68,481 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Common equity tier one capital (to risk weighted assets) Actual Amount | $ 110,717 | $ 103,845 |
Common equity tier one capital (to risk weighted assets) Actual Ratio | 12.72% | 12.13% |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 39,158 | $ 38,521 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 56,562 | $ 55,641 |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 capital (to average assets) Actual Amount | $ 110,717 | $ 103,845 |
Tier 1 capital (to average assets) Actual Ratio | 9.95% | 10.84% |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 44,529 | $ 38,325 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 55,662 | $ 47,907 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Fair Value (Schedule of assets
Fair Value (Schedule of assets carried at fair value on a recurring basis) (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 102,933 | $ 114,832 |
U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 89,270 | 98,478 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,161 | 12,076 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,476 | 1,396 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,446 | 2,273 |
Other Debt Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 580 | 609 |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 102,773 | 114,652 |
Significant Observable Inputs (Level 2) | U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 89,270 | 98,478 |
Significant Observable Inputs (Level 2) | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,161 | 12,076 |
Significant Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,316 | 1,216 |
Significant Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,446 | 2,273 |
Significant Observable Inputs (Level 2) | Other Debt Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 580 | 609 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 160 | 180 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 160 | $ 180 |
Fair Value (Schedule of asset_2
Fair Value (Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis) (Details) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | $ 648 | $ 1,656 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 509 | 239 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 139 | 1,417 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Significant Observable Inputs (Level 2) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Significant Observable Inputs (Level 2) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 648 | 1,656 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 509 | 239 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | $ 139 | $ 1,417 |
Fair Value (Schedule of additio
Fair Value (Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis) (Details) - Nonrecurring basis $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 648 | $ 1,656 |
Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | 509 | 239 |
Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | 139 | 1,417 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | 648 | 1,656 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | 509 | 239 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 139 | $ 1,417 |
Significant Unobservable Inputs (Level 3) | Appraisal adjustments | Minimum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Appraisal adjustments | Maximum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0.20 | 0.20 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Minimum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Minimum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Maximum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0.06 | 0.06 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Maximum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0.06 | 0.06 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Appraisal adjustments | Minimum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Appraisal adjustments | Maximum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0.20 | 0.20 |
Fair Value (Schedule of carryin
Fair Value (Schedule of carrying value and fair values of the financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Carrying Value | ||
Financial Assets: | ||
Cash and due from banks (Level 1) | $ 93,485 | $ 11,978 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value. | ||
Financial Assets: | ||
Cash and due from banks (Level 1) | 93,485 | 11,978 |
Significant Observable Inputs (Level 2) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities (Level 2 and 3) | 102,773 | 114,652 |
FHLB stock (Level 2) | 2,787 | 3,435 |
Financial Liabilities: | ||
Deposits (Level 2) | 929,364 | 773,343 |
Mortgagors escrow accounts (Level 2) | 8,494 | 8,106 |
FHLB advances (Level 2) | 50,674 | 66,304 |
Subordinated debt (Level 2) | 5,155 | 5,155 |
Significant Observable Inputs (Level 2) | Fair Value. | ||
Financial Assets: | ||
Available for sale securities (Level 2 and 3) | 102,773 | 114,652 |
FHLB stock (Level 2) | 2,787 | 3,435 |
Financial Liabilities: | ||
Deposits (Level 2) | 941,460 | 762,272 |
Mortgagors escrow accounts (Level 2) | 8,501 | 8,107 |
FHLB advances (Level 2) | 51,468 | 66,724 |
Subordinated debt (Level 2) | 5,155 | 5,155 |
Significant Unobservable Inputs (Level 3) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities (Level 2 and 3) | 160 | 180 |
Loans, net (Level 3) | 873,813 | 793,471 |
Mortgage servicing rights (Level 3) | 2,390 | 2,226 |
Significant Unobservable Inputs (Level 3) | Fair Value. | ||
Financial Assets: | ||
Available for sale securities (Level 2 and 3) | 160 | 180 |
Loans, net (Level 3) | 876,699 | 796,262 |
Mortgage servicing rights (Level 3) | $ 3,569 | $ 4,137 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 109,882 | $ 59,277 |
Balance | $ 116,499 | $ 109,882 |
Income tax rate | 21.00% | 21.00% |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (4,104) | $ (7,012) |
Other comprehensive (loss) gain before reclassifications | 65 | 2,581 |
Amounts reclassified from accumulated other comprehensive loss | (248) | (327) |
Period change | 313 | 2,908 |
Balance | (3,791) | (4,104) |
AOCL Defined Benefit Pension Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (3,909) | (4,436) |
Other comprehensive (loss) gain before reclassifications | (1,100) | 254 |
Amounts reclassified from accumulated other comprehensive loss | (225) | (273) |
Period change | (875) | 527 |
Balance | (4,784) | (3,909) |
AOCL Unrealized gains (losses) on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (195) | (2,576) |
Other comprehensive (loss) gain before reclassifications | 1,165 | 2,327 |
Amounts reclassified from accumulated other comprehensive loss | (23) | (54) |
Period change | 1,188 | 2,381 |
Balance | $ 993 | $ (195) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss components) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Provision for income taxes | $ 1,559 | $ 1,529 |
Net Income | 5,917 | 5,963 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Income | (248) | (327) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net securities losses reclassified into earnings | (29) | (69) |
Provision for income taxes | 6 | 15 |
Net Income | (23) | (54) |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of net loss and prior service costs | (285) | (346) |
Provision for income taxes | 60 | 73 |
Net Income | $ (225) | $ (273) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income applicable to common stock | $ 5,917 | $ 5,963 |
Average number of common shares outstanding | 11,133,290 | 11,133,290 |
Less: Average unearned ESOP shares | 403,694 | 425,514 |
Average number of common shares outstanding used to calculate basic and diluted earnings per common share | 10,729,596 | 10,707,776 |
Earnings per Common share: | ||
Basic (in dollars per share) | $ 0.55 | $ 0.56 |
Diluted (in dollars per share) | $ 0.55 | $ 0.56 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 448,385 | |
Nonvested options outstanding at an average weighted price (in dollars per share) | $ 6.61 | |
Potentially dilutive common stock equivalents | 10,739,841 | 10,707,776 |
Stock options | ||
Earnings per Common share: | ||
Potentially dilutive common stock equivalents | 10,245 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - item | Feb. 04, 2021 | Dec. 31, 2020 | Oct. 26, 2020 |
Subsequent Event [Line Items] | |||
Number Of Branches To Be Opened | 2 | ||
Monroe and Warwick, New York [Member] | |||
Subsequent Event [Line Items] | |||
Number Of Branches Acquired | 2 | ||
Monroe, New York [Member] | |||
Subsequent Event [Line Items] | |||
Number Of Branches To Be Opened | 1 | ||
Warwick, New York [Member] | |||
Subsequent Event [Line Items] | |||
Number Of Branches To Be Opened | 1 | ||
Subsequent Event [Member] | Monroe and Warwick, New York [Member] | |||
Subsequent Event [Line Items] | |||
Number Of Branches Acquired | 2 |