Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38779 | |
Entity Registrant Name | Rhinebeck Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 83-2117268 | |
Entity Address, Address Line One | 2 Jefferson Plaza | |
Entity Address, City or Town | Poughkeepsie | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 12601 | |
City Area Code | 845 | |
Local Phone Number | 454-8555 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RBKB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,296,770 | |
Entity Central Index Key | 0001751783 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 114,587 | $ 93,485 |
Available for sale securities (at fair value) | 240,389 | 102,933 |
Loans receivable (net of allowance for loan losses of $9,034 and $11,633, respectively) | 833,841 | 873,813 |
Federal Home Loan Bank stock | 1,417 | 2,787 |
Accrued interest receivable | 3,743 | 3,819 |
Cash surrender value of life insurance | 28,971 | 18,877 |
Deferred tax assets (net of valuation allowance of $1,694 and $1,760, respectively) | 3,548 | 3,703 |
Premises and equipment, net | 19,164 | 18,839 |
Other real estate owned | 89 | 139 |
Goodwill | 2,235 | 1,410 |
Intangible assets, net | 460 | 199 |
Other assets | 14,261 | 8,825 |
Total assets | 1,262,705 | 1,128,829 |
Deposits | ||
Non-interest bearing | 316,521 | 244,344 |
Interest bearing | 770,866 | 685,020 |
Total deposits | 1,087,387 | 929,364 |
Mortgagors' escrow accounts | 4,264 | 8,494 |
Advances from the Federal Home Loan Bank | 20,145 | 50,674 |
Subordinated debt | 5,155 | 5,155 |
Accrued expenses and other liabilities | 21,550 | 18,643 |
Total liabilities | 1,138,501 | 1,012,330 |
Stockholders' Equity | ||
Preferred stock (par value $0.01 per share; 5,000,000 authorized, no shares issued) | ||
Common stock (par value $0.01; authorized 25,000,000; issued and outstanding 11,296,770 at September 31, 2021 and 11,303,059 at December 31, 2020, respectively) | 112 | 111 |
Additional paid-in capital | 46,468 | 46,038 |
Unearned common stock held by the employee stock ownership plan ("ESOP") | (3,764) | (3,928) |
Retained earnings | 86,640 | 78,069 |
Accumulated other comprehensive loss: | ||
Net unrealized (loss) gain on available for sale securities, net of taxes | (598) | 993 |
Defined benefit pension plan, net of taxes | (4,654) | (4,784) |
Total accumulated other comprehensive loss | (5,252) | (3,791) |
Total stockholders' equity | 124,204 | 116,499 |
Total liabilities and stockholders' equity | $ 1,262,705 | $ 1,128,829 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses on loans receivable | $ 9,034 | $ 11,633 |
Deferred tax valuation allowance | $ 1,694 | $ 1,760 |
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 | 11,296,770 | 11,303,059 |
Common stock, shares outstanding | 11,296,770 | 11,303,059 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest and Dividend Income | ||||
Interest and fees on loans | $ 10,402 | $ 10,386 | $ 30,722 | $ 31,001 |
Interest and dividends on securities | 623 | 476 | 1,560 | 1,790 |
Other income | 34 | 12 | 66 | 36 |
Total interest and dividend income | 11,059 | 10,874 | 32,348 | 32,827 |
Interest Expense | ||||
Interest expense on deposits | 866 | 1,553 | 2,816 | 5,429 |
Interest expense on borrowings | 134 | 293 | 562 | 1,072 |
Total interest expense | 1,000 | 1,846 | 3,378 | 6,501 |
Net interest income | 10,059 | 9,028 | 28,970 | 26,326 |
(Credit to) provision for loan losses | (954) | 2,250 | (2,171) | 5,705 |
Net interest income after (credit to) provision for loan losses | 11,013 | 6,778 | 31,141 | 20,621 |
Non-interest Income | ||||
Service charges on deposit accounts | 664 | 558 | 1,891 | 1,705 |
Net realized loss on sales and calls of securities | (29) | |||
Net gain on sales of loans | 502 | 976 | 2,179 | 2,382 |
Increase in cash surrender value of life insurance | 158 | 97 | 412 | 290 |
Net gain from sale of other real estate owned | 42 | 2 | 42 | |
Gain on disposal of premises and equipment | 13 | 17 | 13 | |
Gain on life insurance | 195 | |||
Investment advisory income | 237 | 380 | 812 | 942 |
Other | 78 | 30 | 228 | 61 |
Total non-interest income | 1,639 | 2,096 | 5,736 | 5,406 |
Non-interest Expense | ||||
Salaries and employee benefits | 5,162 | 4,158 | 14,749 | 12,305 |
Occupancy | 1,060 | 885 | 3,052 | 2,613 |
Data processing | 450 | 325 | 1,269 | 1,040 |
Professional fees | 439 | 380 | 1,375 | 1,055 |
Marketing | 119 | 95 | 353 | 320 |
FDIC deposit insurance and other insurance | 201 | 248 | 542 | 613 |
Other real estate owned expense | 4 | 54 | 7 | 80 |
Amortization of intangible assets | 27 | 11 | 69 | 32 |
Other | 1,676 | 1,276 | 4,551 | 3,438 |
Total non-interest expense | 9,138 | 7,432 | 25,967 | 21,496 |
Income before income taxes | 3,514 | 1,442 | 10,910 | 4,531 |
Provision for income taxes | 829 | 292 | 2,339 | 958 |
Net income | $ 2,685 | $ 1,150 | $ 8,571 | $ 3,573 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.25 | $ 0.10 | $ 0.80 | $ 0.33 |
Diluted (in dollars per share) | $ 0.25 | $ 0.10 | $ 0.79 | $ 0.33 |
Weighted average shares outstanding, basic | 10,774,038 | 10,732,321 | 10,755,342 | 10,726,867 |
Weighted average shares outstanding, diluted | 10,946,935 | 10,732,321 | 10,914,429 | 10,726,867 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net Income | $ 2,685 | $ 1,150 | $ 8,571 | $ 3,573 | |
Other Comprehensive (Loss) Income: | |||||
Unrealized holding (losses) gains arising during the period | (597) | (545) | (2,014) | 2,006 | |
Reclassification adjustment for losses included in net realized loss on sales and calls of securities on the consolidated statements of income | 29 | ||||
Net unrealized (losses) gains on available for sale securities | (597) | (545) | (2,014) | 2,035 | |
Tax effect | [1] | 125 | 114 | 423 | (429) |
Unrealized (losses) gains on available for sale securities, net of tax | (472) | (431) | (1,591) | 1,606 | |
Defined benefit pension plan: | |||||
Actuarial (losses) gains arising during the period | (152) | 806 | (105) | (291) | |
Reclassification adjustment for amortization of net actuarial losses | [2] | 90 | 71 | 269 | 214 |
Total | (62) | 877 | 164 | (77) | |
Tax effect | [3] | 13 | (184) | (34) | 16 |
Defined benefit pension plan (losses) gains, net of tax | (49) | 693 | 130 | (61) | |
Other comprehensive (loss) income | (521) | 262 | (1,461) | 1,545 | |
Total Comprehensive Income | $ 2,164 | $ 1,412 | $ 7,110 | $ 5,118 | |
[1] | Includes $(6) for the nine months ended September 30, 2020, for tax effect of realized losses which are included in the provision for income taxes on the consolidated statements of income. | ||||
[2] | Included in other non-interest expense on the consolidated statements of income. | ||||
[3] | Includes $19 and $56 for the three and nine months ended September 30, 2021, respectively, and $15 and $45 for the three and nine months ended September 30, 2020, respectively, for tax effect of amortization of net actuarial loss included in the provision for income taxes on the consolidated statements of income. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Available-for-sale Securities, gross realized losses | [1] | $ (125) | $ (114) | $ (423) | $ 429 |
Amortization of net actuarial loss | [2] | 13 | (184) | (34) | 16 |
Related income tax expense | |||||
Available-for-sale Securities, gross realized losses | (6) | ||||
Amortization of net actuarial loss | $ 19 | $ 15 | $ 56 | $ 45 | |
[1] | Includes $(6) for the nine months ended September 30, 2020, for tax effect of realized losses which are included in the provision for income taxes on the consolidated statements of income. | ||||
[2] | Includes $19 and $56 for the three and nine months ended September 30, 2021, respectively, and $15 and $45 for the three and nine months ended September 30, 2020, respectively, for tax effect of amortization of net actuarial loss included in the provision for income taxes on the consolidated statements of income. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unallocated common stock held by the ESOP | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
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 | 1,075 | 1,075 | ||||
Other comprehensive income (loss) | 2,885 | 2,885 | ||||
ESOP shares committed to be allocated | 55 | 55 | ||||
Balance at Mar. 31, 2020 | 111 | 45,869 | (4,091) | 73,227 | (1,219) | 113,897 |
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 | 3,573 | |||||
Other comprehensive income (loss) | 1,545 | |||||
Balance at Sep. 30, 2020 | 111 | 45,895 | (3,982) | 75,725 | (2,559) | 115,190 |
Balance at Mar. 31, 2020 | 111 | 45,869 | (4,091) | 73,227 | (1,219) | 113,897 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,348 | 1,348 | ||||
Other comprehensive income (loss) | (1,602) | (1,602) | ||||
ESOP shares committed to be allocated | (17) | 54 | 37 | |||
Balance at Jun. 30, 2020 | 111 | 45,852 | (4,037) | 74,575 | (2,821) | 113,680 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,150 | 1,150 | ||||
Other comprehensive income (loss) | 262 | 262 | ||||
ESOP shares committed to be allocated | (18) | 55 | 37 | |||
Share-based compensation expense | 61 | 61 | ||||
Balance at Sep. 30, 2020 | 111 | 45,895 | (3,982) | 75,725 | (2,559) | 115,190 |
Balance at Dec. 31, 2020 | 111 | 46,038 | (3,928) | 78,069 | (3,791) | 116,499 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,321 | 3,321 | ||||
Other comprehensive income (loss) | (1,169) | (1,169) | ||||
ESOP shares committed to be allocated | (3) | 55 | 52 | |||
Share-based compensation expense | 153 | 153 | ||||
Balance at Mar. 31, 2021 | 111 | 46,188 | (3,873) | 81,390 | (4,960) | 118,856 |
Balance at Dec. 31, 2020 | 111 | 46,038 | (3,928) | 78,069 | (3,791) | 116,499 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 8,571 | |||||
Other comprehensive income (loss) | (1,461) | |||||
Balance at Sep. 30, 2021 | 112 | 46,468 | (3,764) | 86,640 | (5,252) | 124,204 |
Balance at Mar. 31, 2021 | 111 | 46,188 | (3,873) | 81,390 | (4,960) | 118,856 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,565 | 2,565 | ||||
Other comprehensive income (loss) | 229 | 229 | ||||
ESOP shares committed to be allocated | 3 | 54 | 57 | |||
Share-based compensation expense | 155 | 155 | ||||
Balance at Jun. 30, 2021 | 111 | 46,346 | (3,819) | 83,955 | (4,731) | 121,862 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,685 | 2,685 | ||||
Other comprehensive income (loss) | (521) | (521) | ||||
ESOP shares committed to be allocated | 4 | 55 | 59 | |||
Share-based compensation expense | 156 | 156 | ||||
Exercise of options | 39 | 39 | ||||
Share redemption for tax withholding on restricted stock vesting | 1 | (77) | (76) | |||
Balance at Sep. 30, 2021 | $ 112 | $ 46,468 | $ (3,764) | $ 86,640 | $ (5,252) | $ 124,204 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||||
Net income | $ 8,571 | $ 3,573 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Amortization and accretion of premiums and discounts on investments, net | 216 | 542 | |||
Net realized loss on sales and calls of securities | 29 | ||||
Net realized gain on sale of other real estate owned | $ (42) | (2) | (42) | ||
(Credit to) provision for loan losses | $ (954) | 2,250 | (2,171) | 5,705 | |
Loans originated for sale | (56,534) | (65,974) | |||
Proceeds from sale of loans | 58,518 | 68,745 | |||
Net gain on sale of loans | (2,179) | (2,382) | |||
Amortization of intangible assets | 27 | 11 | 69 | 32 | $ 42 |
Depreciation and amortization | 1,111 | 1,014 | |||
Gain from disposal of premises and equipment | (13) | (17) | (13) | ||
Deferred income tax expense (benefit) | 543 | (1,474) | |||
Increase in cash surrender value of insurance | (412) | (290) | |||
Decrease (increase) in accrued interest receivable | 76 | (994) | |||
Expense of earned ESOP shares | 168 | 129 | |||
Share-based compensation expense | 464 | 61 | |||
Increase in other assets | (5,426) | (8,315) | |||
Increase in accrued expenses and other liabilities | 2,818 | 5,914 | |||
Net cash provided by operating activities | 5,813 | 6,260 | |||
Cash Flows from Investing Activities | |||||
Proceeds from sales and calls of securities | 2,000 | 6,997 | |||
Proceeds from maturities and principal repayments of securities | 40,238 | 28,142 | |||
Purchases of securities | (181,924) | (25,210) | |||
Net redemptions of FHLB Stock | 1,370 | 460 | |||
Net decrease (increase) in loans | 42,337 | (104,977) | |||
Purchases of bank owned life insurance | (10,023) | (41) | |||
Purchases of bank premises and equipment | (1,305) | (1,548) | |||
Net proceeds from life insurance | 341 | ||||
Net cash received from acquisition (Note 2) | 32,767 | ||||
Net increase of other real estate owned | (31) | ||||
Proceeds from sale of other real estate owned | 50 | 2,221 | |||
Net cash used in investing activities | (74,149) | (93,987) | |||
Cash Flows from Financing Activities | |||||
Net increase in demand deposits, NOW, money market and savings accounts | 156,442 | 151,023 | |||
Net decrease in time deposits | (32,281) | (8,171) | |||
Decrease in mortgagors' escrow accounts | (4,230) | (4,075) | |||
Net decrease in short-term debt | (15,030) | (2,223) | |||
Net decrease in long-term debt | (15,499) | (9,224) | |||
Proceeds from exercise of stock options | 36 | ||||
Net cash provided by financing activities | 89,438 | 127,330 | |||
Net increase in cash and due from banks | 21,102 | 39,603 | |||
Cash and Due from Banks | |||||
Beginning balance | 93,485 | 11,978 | 11,978 | ||
Ending balance | $ 114,587 | $ 51,581 | 114,587 | 51,581 | $ 93,485 |
Supplemental Disclosures of Cash Flow Information | |||||
Cash paid for interest | 3,464 | 6,650 | |||
Cash (received) paid for income taxes | (40) | 2,897 | |||
Noncash Investing Activities | |||||
Transfer of loans to other real estate owned | $ 1,858 | ||||
Fair value of assets acquired | 1,277 | ||||
Fair value of liabilities assumed | $ 34,044 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Nature of Business and Significant Accounting Policies | |
Nature of Business and Significant Accounting Policies | 1. Nature of Business and Significant Accounting Policies The 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. 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 fifteen 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”). The unaudited consolidated financial statements reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of the results of the interim periods and are of a normal and recurring nature. Operating results for the three or nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or for any other period. The unaudited financial statements and other financial information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements, and related notes, of Rhinebeck Bancorp, Inc. at and for the year ended December 31, 2020 contained in the Company’s Annual Report on Form 10-K For more information regarding the Company’s significant accounting policies, see the Notes to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K Annual Report on Form 10-K Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“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 loan losses, the valuation of securities, the evaluation of investment securities for other-than-temporary impairment, the evaluation of goodwill for impairment, the valuation of deferred tax assets and the determination of pension obligations. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. On March 12, 2021, the Bank completed a branch purchase and assumption transaction with ConnectOne Bank. Management concluded that the acquisition represented a business combination, which is accounted for using the acquisition method, with the results of operations included in the Company’s consolidated financial statements as of the acquisition date. For additional information, see Note 2. Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. COVID-19 Significant progress has been made to combat the outbreak of COVID-19; however, the global pandemic has adversely impacted a broad range of industries in which the Company's customers operate and could still impair their ability to fulfill their financial obligations to the Company. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If there is a resurgence in the virus or variant strains of the virus increase, the Company could experience further adverse effects on its business, financial condition, results of operations and cash flows. It is not possible to know the full extent of the impact of COVID-19 and the effects it will have on the Company's future operations. Impact of Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. 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-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company is taking advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s consolidated 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 recent accounting standards reflect those that relate to non-issuer companies. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Acquisition | |
Acquisition | 2. Acquisition On October 26, 2020, the Bank entered into a branch purchase and assumption agreement with ConnectOne Bank, the wholly-owned subsidiary of ConnectOne Bancorp, Inc., to acquire two branches located in Orange County, New York, as well as certain deposits and other assets and liabilities. The transaction closed on March 12, 2021 with the transfer of $33,863 of deposits. Management concluded that the acquisition represented a business combination, which is accounted for using the acquisition method, with the results of operations included in the Company’s consolidated financial statements as of the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed in the March 12, 2021 transaction with ConnectOne, and reflects all adjustments made to the fair value of the opening balance sheet through September 30, 2021: March 12, Fair value of consideration transferred, assets acquired and liabilities assumed 2021 Total cash received on acquisition $ 32,767 Assets acquired Fixed assets 113 Reimbursed expenses 9 Core deposit intangible (1) 330 Total assets acquired 452 Liabilities assumed Deposits 33,863 Mark-to-market adjustment 181 Total liabilities assumed 34,044 Net liabilities acquired (33,592) Goodwill recognized $ 825 _____________________________ (1) The core deposit intangible was determined to have an estimated life of approximately 13 years . The Company incurred $71 in expenses related to the acquisition during the nine months ended September 30, 2021. Acquisition expenses, including professional fees, are included in the total non-interest expense line item in the condensed consolidated statement of income. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Investment Securities | 3. Investment Securities The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: September 30, 2021 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,397 $ 1 $ (209) $ 40,189 U.S. government agency mortgage-backed securities–residential 157,595 706 (1,404) 156,897 U.S. government agency securities 26,810 107 (39) 26,878 Municipal securities (1) 7,005 32 (27) 7,010 Corporate bonds 8,700 107 (32) 8,775 Other 640 — — 640 Total $ 241,147 $ 953 $ (1,711) $ 240,389 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 (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: September 30, 2021 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ 30,169 $ (209) $ — $ — $ 30,169 $ (209) U.S. government agency mortgage-backed securities-residential 103,868 (1,186) 11,974 (218) 115,842 (1,404) U.S. government agency securities 14,719 (39) — — 14,719 (39) Municipal Securities 2,339 (27) — — 2,339 (27) Corporate Bonds 3,474 (26) 244 (6) 3,718 (32) Total $ 154,569 $ (1,487) $ 12,218 $ (224) $ 166,787 $ (1,711) 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) At September 30, 2021, the Company had 119 individual available-for-sale securities in an unrealized loss position with unrealized losses totaling $1,711 with an aggregate depreciation of 1.03% 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. 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; therefore, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2021. The amortized cost and fair value of available for sale debt securities at September 30, 2021 and December 31, 2020, 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: September 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 12,916 $ 12,915 $ 102 $ 102 After 1 but within 5 years 48,948 48,832 2,155 2,155 After 5 but within 10 years 20,903 20,961 9,946 10,162 After 10 years 145 145 655 664 Total Maturities 82,912 82,853 12,858 13,083 Mortgage-backed securities 157,595 156,896 88,197 89,270 Other 640 640 621 580 Total $ 241,147 $ 240,389 $ 101,676 $ 102,933 At September 30, 2021 and December 31, 2020, available for sale securities with a carrying value of $11,679 and $18,123, respectively, were pledged to secure Federal Home Loan Bank of New York (“FHLB”) borrowings. In addition, at September 30, 2021 and December 31, 2020, $1,053 and $1,059 of available for sale securities were pledged to secure borrowings at the Federal Reserve Bank of New York (“FRB”), respectively. During the nine months ended September 30, 2021, there was $2,000 in proceeds from the call of available for sale securities with no gross gains or losses |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | 4. Loans and Allowance for Loan Losses A summary of the Company’s loan portfolio is as follows: September 30, December 31, 2021 2020 Commercial real estate loans: Construction $ 5,682 $ 5,392 Non-residential 236,240 248,349 Multi-family 41,233 30,379 Residential real estate loans 35,830 39,239 Commercial and industrial loans (1) 117,755 154,016 Consumer loans: Indirect automobile 377,116 376,260 Home equity 12,253 14,165 Other consumer 8,240 8,816 Total gross loans 834,349 876,616 Net deferred loan costs 8,526 8,830 Allowance for loan losses (9,034) (11,633) Total net loans $ 833,841 $ 873,813 (1) Includes $44,080 and $75,366 in U.S. Small Business Administration (“SBA”), paycheck protection program (“PPP”) loans at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021 and December 31, 2020, the unpaid principal balances of loans held for sale, included in the residential real estate category above, were $2,912 and $2,718, respectively. The following tables present the classes of the loan portfolio summarized by the pass category and the criticized and classified categories of special mention and substandard within the internal risk system: September 30, 2021 Pass Special Mention Substandard Total Commercial real estate: Construction $ 5,682 $ — $ — $ 5,682 Non-residential 228,816 5,189 2,235 236,240 Multifamily 41,233 — — 41,233 Residential real estate 33,347 — 2,483 35,830 Commercial and industrial 111,685 5,047 1,023 117,755 Consumer: Indirect automobile 376,639 — 477 377,116 Home equity 12,029 — 224 12,253 Other consumer 8,193 — 47 8,240 Total $ 817,624 $ 10,236 $ 6,489 $ 834,349 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 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 tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: September 30, 2021 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 $ 5,682 $ — $ — $ — $ 5,682 $ — Non-residential 232,909 — 1,243 2,088 236,240 2,088 Multifamily 41,233 — — — 41,233 — Residential real estate 34,561 58 — 1,211 35,830 2,483 Commercial and industrial 116,418 409 186 742 117,755 884 Consumer: Indirect automobile 371,303 4,576 790 447 377,116 477 Home equity 11,868 214 45 126 12,253 224 Other consumer 8,051 107 35 47 8,240 47 Total $ 822,025 $ 5,364 $ 2,299 $ 4,661 $ 834,349 $ 6,203 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 The following tables summarize information regarding impaired loans by loan portfolio class: September 30, 2021 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 2,088 $ 3,148 $ — $ 2,096 Multifamily — — — — Residential real estate 2,483 3,025 — 2,561 Commercial and industrial 884 1,156 — 589 Consumer: Indirect automobile 197 257 — 232 Home equity 224 225 — 357 Other consumer 47 48 — 38 Total $ 5,923 $ 7,859 $ — $ 5,873 With an allowance recorded: Commercial and industrial $ — $ — $ — $ 153 Consumer: Indirect automobile 280 287 68 337 Other consumer — — — 12 Total $ 280 $ 287 $ 68 $ 502 Total: Commercial real estate: Non-residential $ 2,088 $ 3,148 $ — $ 2,096 Multifamily — — — — Residential real estate 2,483 3,025 — 2,561 Commercial and industrial 884 1,156 — 742 Consumer: Indirect automobile 477 544 68 569 Home equity 224 225 — 357 Other consumer 47 48 — 50 Total $ 6,203 $ 8,146 $ 68 $ 6,375 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 real estate: 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 A loan is considered impaired when based on current information and events it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans and loans modified as troubled debt restructurings (“TDRs”). Loan modifications, which resulted in these loans being considered TDRs, are primarily in the form of rate concessions and extensions of maturity dates that are made specifically due to hardships experienced by the customer. The Company does not generally recognize interest income on a loan in an impaired status. At September 30, 2021 and December 31, 2020, three loans totaling $1,468 and $1,571, included in impaired loans, were identified as TDRs. There were no new TDRs in 2020 or the first nine months of 2021. At September 30, 2021 and December 31, 2020, all TDR loans were performing in accordance with their restructured terms. At September 30, 2021 and December 31, 2020, 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 September 30, 2021 and December 31, 2020, the Company was servicing loans for participants aggregating $4,050 and $4,291, respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $946 and $636 at September 30, 2021 and December 31, 2020, respectively. The Company services certain loans that it has sold without recourse to third parties. The aggregate balances of loans serviced for others were $313,037 and $300,700 as of September 30, 2021 and December 31, 2020, respectively. The balances of capitalized servicing rights, included in other assets at September 30, 2021 and December 31, 2020, were $2,639 and $2,390, respectively. Fair value exceeds carrying value, and thus, no impairment charges related to servicing rights were recognized during the period ended September 30, 2021 or the year ended December 31, 2020. The following tables summarize the segments of the loan portfolio and the allowance for 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 loan losses for the periods then ended: Commercial Commercial Real Estate Residential and Industrial Indirect Consumer Totals Three months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 4,833 $ 120 $ 759 $ 4,071 $ 343 $ 10,126 Provision for (credit to) loan losses (792) (67) 491 (294) (292) (954) Loans charged-off — — (12) (527) (5) (544) Recoveries — — 1 390 15 406 Ending balance $ 4,041 $ 53 $ 1,239 $ 3,640 $ 61 $ 9,034 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Three months ended September 30, 2020 Allowance for loan losses: Beginning balance $ 2,673 $ 125 $ 859 $ 4,779 $ 136 $ 8,572 Provision for loan losses 1,217 4 366 653 10 2,250 Loans charged-off — — (88) (499) (3) (590) Recoveries 4 — (3) 325 5 331 Ending balance $ 3,894 $ 129 $ 1,134 $ 5,258 $ 148 $ 10,563 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Nine months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 (Credit to) provision for loan losses (1,313) (67) 113 (803) (101) (2,171) Loans charged-off — — (13) (1,644) (14) (1,671) Recoveries — 3 89 1,113 38 1,243 Ending balance $ 4,041 $ 53 $ 1,239 $ 3,640 $ 61 $ 9,034 Ending balance: Loans deemed impaired $ — $ — $ — $ 68 $ — $ 68 Loans not deemed impaired $ 4,041 $ 53 $ 1,239 $ 3,572 $ 61 $ 8,966 Loan receivables: Ending balance $ 283,155 $ 35,830 $ 117,755 $ 377,116 $ 20,493 $ 834,349 Ending balance: Loans deemed impaired $ 2,088 $ 2,483 $ 884 $ 477 $ 271 $ 6,203 Loans not deemed impaired $ 281,067 $ 33,347 $ 116,871 $ 376,639 $ 20,222 $ 828,146 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Nine months ended September 30, 2020 Allowance for loan losses: Beginning balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Provision for loan losses 1,881 30 651 3,114 29 5,705 Loans charged-off — — (127) (1,688) (21) (1,836) Recoveries 4 — 7 715 14 740 Ending balance $ 3,894 $ 129 $ 1,134 $ 5,258 $ 148 $ 10,563 Ending balance: Loans deemed impaired $ — $ — $ 24 $ 204 $ 2 $ 230 Loans not deemed impaired $ 3,894 $ 129 $ 1,110 $ 5,054 $ 146 $ 10,333 Loan receivables: Ending balance $ 284,862 $ 40,605 $ 170,663 $ 372,863 $ 24,147 $ 893,140 Ending balance: Loans deemed impaired $ 1,291 $ 2,684 $ 422 $ 900 $ 561 $ 5,858 Loans not deemed impaired $ 283,571 $ 37,921 $ 170,241 $ 371,963 $ 23,586 $ 887,282 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals December 31, 2020 Allowance for loan losses: 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 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 periods presented were not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets The changes in the carrying value of goodwill are as follows: Nine Months Year Ended Ended September 30, December 31, 2021 2020 Beginning balance $ 1,410 $ 1,410 Acquisition activity 825 — Ending balance $ 2,235 $ 1,410 Accumulated impairment $ 1,116 $ 1,116 The Company evaluated goodwill and determined that no write-down was required for the first nine months of 2021 or the year ended December 31, 2020. The changes in the carrying value of the customer list and core deposit intangibles are as follows: Nine Months Year Ended Ended September 30, December 31, 2021 2020 Beginning balance $ 199 $ 241 Acquisition activity 330 — Amortization (69) (42) Ending balance $ 460 $ 199 Accumulated amortization and impairment $ 817 $ 748 Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized over their estimated useful lives. The values assigned to customer lists or core deposit intangibles is based upon the application of the income approach. The intangibles are expected to have useful lives of approximately 13 years. The Company recognized $69 and $32 of amortization expense related to its intangible assets for the nine months ended September 30, 2021 and 2020, respectively. The Company recognized $27 and $11 of amortization expense for the three months ended September 30, 2021 and 2020, respectively. At September 30, 2021, based upon a review of the intangibles, the Company determined that the fair value of the amortizable intangible assets exceeded their carrying values. As of September 30, 2021, the future amortization expense for amortizable intangible assets for the respective years is as follows: 2021 $ 26 2022 99 2023 88 2024 80 2025 61 Thereafter 106 Total $ 460 |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Premises and Equipment | |
Premises and Equipment | 6. Premises and Equipment Premises and equipment are summarized as follows: September 30, December 31, 2021 2020 Land $ 3,732 $ 3,732 Buildings and improvements 26,651 26,431 Furniture, fixtures and equipment 13,762 13,042 Construction in process 589 93 Total 44,734 43,298 Less accumulated depreciation (25,570) (24,459) Net $ 19,164 $ 18,839 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Deposits | 7. Deposits Deposits balances are summarized as follows: September 30, December 31, 2021 2020 Non-interest bearing demand deposits $ 316,521 $ 244,344 Interest bearing accounts: NOW 156,330 141,580 Savings 178,913 157,414 Money market 267,261 185,383 Time certificates of deposit 168,362 200,643 Total interest bearing accounts 770,866 685,020 Total deposits $ 1,087,387 $ 929,364 Included in time certificates of deposit at September 30, 2021 and December 31, 2020 were reciprocal deposits totaling $19,568 and $30,012, respectively, with original maturities of one Contractual maturities of time certificates of deposit at September 30, 2021 are summarized below: September 30, 2021 Within 1 year $ 137,305 1 – 2 years 12,740 2 – 3 years 8,754 3 – 4 years 8,537 4 – 5 years 1,026 Total $ 168,362 |
Long-Term Debt and FHLB Stock
Long-Term Debt and FHLB Stock | 9 Months Ended |
Sep. 30, 2021 | |
Long-Term Debt and FHLB Stock | |
Long-Term Debt and FHLB Stock | 8. Long-Term Debt and FHLB Stock FHLB Borrowings and Stock The Bank is a member of the FHLB. At September 30, 2021 and December 31, 2020, the Bank had access to a preapproved secured line of credit with the FHLB of $631,297 and $564,330, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At September 30, 2021 and December 31, 2020, the Bank had pledged assets of $170,587 and $175,011, respectively. The outstanding principal amounts and the related terms and rates at September 30, 2021 were as follows: Term Principal Maturity Rate Due in one year Long term 3 year amortizing $ 2,571 May 16, 2022 2.49 % $ 2,571 — 3 year bullet 10,000 May 16, 2022 2.44 % 10,000 — 3 year amortizing 7,574 February 28, 2023 1.32 % 5,033 2,541 Total $ 20,145 Weighted Average Rate 2.03 % $ 17,604 $ 2,541 The Bank 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 Bank evaluates FHLB stock for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either September 30, 2021 or December 31, 2020. Subordinated Debt In addition to the Bank, the Company has one other wholly-owned subsidiary, RSB Capital Trust I (the “Trust”). In 2005, the Trust issued $5,000 of pooled trust preferred securities in a private placement and issued 155 shares of common stock at $1 par value per share, now owned by the Company. The Trust, which has no independent assets or operations, was formed in 2005 for the sole purpose of issuing trust preferred securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures. The proceeds from the issuance of the trust preferred securities were down-streamed to the Bank and are currently considered Tier 1 capital for purposes of determining the Bank’s capital ratios. The trust securities 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, 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% (2.13% at September 30, 2021 and 2.21% at December 31, 2020) mature on May 23, 2035. As it is anticipated that LIBOR will be discontinued after 2021, the Company is reviewing the agreements for the above debt to determine alternative reference rates and does not anticipate there will be a significant financial statement impact. Other Borrowings The Bank also has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at either September 30, 2021 or December 31, 2020. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Employee Benefits | |
Employee Benefits | 9. Employee Benefits Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering substantially all of its employees 21 years of age or older who had completed at least one year of service as of September 30, 2012, the effective date on which the Board of Directors of the Bank voted to freeze the defined benefit plan. The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated statements of financial condition: September 30, December 31, 2021 2020 Projected and accumulated benefit obligation $ (23,367) $ (23,964) Plan assets at fair value 22,199 22,634 Funded status included in accrued expenses and other liabilities $ (1,168) $ (1,330) The net periodic pension cost and amounts recognized in other comprehensive income are as follows: Nine months ended September 30, 2021 2020 Interest cost $ 442 $ 502 Expected return on plan assets (708) (639) Amortization of unrecognized loss 269 214 Net periodic cost (benefit) $ 3 $ 77 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 ten diversified investment funds. As of September 30, 2021, the investment funds included seven equity funds and three fixed income bond funds, each with its own investment objectives, investment strategies and risks, as detailed in the Company’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 Company did not make a contribution to the plan in the first nine months of 2021 or 2020. The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 15,560 $ — $ — $ 15,560 Equity 6,639 — — 6,639 Total assets at fair value $ 22,199 $ — $ — $ 22,199 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 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. For a detailed disclosure on the Bank’s pension and employee benefits plans, please refer to Note 8 of the Company’s Consolidated Financial Statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K 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 $798 and $732 for the nine months ended September 30, 2021 and 2020, respectively. Deferred Compensation Arrangements Directors’ Plan The Bank’s Deferred Compensation Plan for Fees of Directors, as amended and restated effective January 1, 2005 (the “Directors’ Plan”), covers Directors who elect to defer receipt of all or a portion of their fees until separation from service. Upon resignation, retirement, or death, the participant’s total deferred compensation, including earnings thereon, will be paid out. At September 30, 2021 and December 31, 2020, total amounts due of $2,749 and $2,483, respectively, are included in accrued expenses and other liabilities. Total expenses related to the Directors’ Plan were $106 and $131 for the nine months ended September 30, 2021 and 2020, respectively, which were included in other non-interest expense in the consolidated statements of income. Executive Long-Term Incentive and Retention Plan The Bank 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 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 $1,419 and $1,387, at September 30, 2021 and December 31, 2020, respectively. The Company recognized expenses of $32 and $43 for the nine-month periods ended September 30, 2021 and September 30, 2020, 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 $1,977 and $2,148 at September 30, 2021 and December 31, 2020, respectively. The Company recognized expenses of $56 and $65 for the nine months ended September 30, 2021 and 2020, respectively, related to these benefits, which are included in other non-interest expenses in the consolidated statements of income. Employee Stock Ownership Plan On January 1, 2019, the Bank established an Employee Stock Ownership Plan (“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 is payable annually over 20 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (3.25% at January 1, 2021). Loan payments are 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 at September 30, 2021 was $4,087. 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: Nine months ended Year ended September 30, December 31, 2021 2020 Allocated 43,642 21,821 Committed to be allocated 16,362 21,821 Unallocated 376,421 392,783 Paid out to participants (68) (68) Total shares 436,357 436,357 The fair value of unallocated shares was $4,103 at September 30, 2021. Total compensation expense recognized in connection with the ESOP for the nine months ended September 30, 2021 and 2020 was $168 and $129, 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, on August 25, 2020, the Board of Directors granted restricted stock and stock options to employees and directors. All of the awards vest annually over a three-year period from the date of the grant and the term of each option is ten years. As of September 30, 2021, there were 97,146 stock options and 48,443 restricted stock awards that remain available for future grants. The fair value of each option granted under 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 contractual 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. A summary of options under the 2020 EIP as of September 30, 2021 is presented below: Weighted - Weighted-Average Number of Average Remaining Contractual Shares Exercise Price Term (in Years) Options outstanding at beginning of year 448,385 $ 6.61 9.66 Options granted - - - Options exercised (5,455) 6.57 - Forfeited - - - Options outstanding at September 30, 2021 442,930 $ 6.62 8.92 Options exercisable at September 30, 2021 138,997 6.57 8.91 At September 30, 2021, the aggregate intrinsic value of the shares outstanding, which fluctuates based on changes in the fair market value of the Company’s stock, was $1,898 . 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 September 30, 2021. As of September 30, 2021, there was $476 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 1.91 years. The following table summarizes the Company’s restricted stock activity for the nine months ended September 30, 2021: Weighted-Average Number Grant Date of Shares Fair Value per Share Non-vested restricted stock at beginning of year 169,769 $ 6.57 Granted - - Vested (56,582) 6.57 Forfeited - - Non-vested restricted stock at September 30, 2021 113,187 $ 6.57 As of September 30, 2021, there was $706 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 1.90 years. For the nine months ended September 30, 2021, share-based compensation under the plan was $464. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | 10. Leases As of September 30, 2021, the Company leases real estate for eight branch offices and two administrative 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 Accounting Standards Update 2016-02, Leases (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 2041, 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 September 30, 2021. 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 2.56% in determining the lease liability as of September 30, 2021. For the nine months ended September 30, 2021, total operating lease costs were $539 and were included in occupancy and other expense. Deferred rent liability was $152 at September 30, 2021 and $176 at December 31, 2020. The right-of-use asset, included in other assets, accrued expenses and other liabilities, Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2021 were as follows: Years ending December 31: 2021 $ 198 2022 754 2023 732 2024 729 2025 743 Thereafter 5,822 Total future minimum lease payments 8,978 Amounts representing interest (1,392) Present Value of Net Future Minimum Lease Payments $ 7,586 |
Commitments and Contingencies a
Commitments and Contingencies and Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies and Derivatives | |
Commitments and Contingencies and Derivatives | 11. Commitments and Contingencies and Derivatives 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 and various other benefits. 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 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: September 30, December 31, 2021 2020 Commitments to extend credit summarized as follows: Future loan commitments $ 12,236 $ 14,356 Undisbursed construction loans 2,693 3,493 Undisbursed home equity lines of credit 10,834 10,686 Undisbursed commercial and other line of credit 72,089 63,911 Standby letters of credit 3,050 5,681 Total $ 100,902 $ 98,127 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. Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate loan agreement to a fixed-rate loan agreement. Under these agreements, the Company simultaneously enters into a variable-rate loan and interest rate swap agreements with a customer. The Company then enters into a corresponding and offsetting swap agreement with a third party to hedge its exposure created by the customer agreements. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging, and are marked to market through earnings. The fair values of the swaps are recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal amounts for these transactions. The accrued interest receivable and payable of $9 and $0 related to our swaps is recorded in other assets and other liabilities as of September 30, 2021 and 2020, respectively. Summary information regarding these derivatives is presented below: September 30, December 31, 2021 2020 Notational amount $ 9,018 $ 1,875 Fair value $ 143 $ 41 Weighted average pay rates 3.51 % 3.10 % Weighted average receive rates 2.29 % 2.22 % Weighted average maturity (in years) 9.61 9.92 Number of Contracts 5 1 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Matters | |
Regulatory Matters | 12. 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. The final rules implementing the BASEL Committee on Banking Supervisor’s Capital Guidance for U.S. Banks (BASEL III) became effective for the Bank on January 1, 2016. Compliance with the requirements was phased in over a four year period with full compliance as of January 1, 2019. All presented capital ratios are calculated using BASEL III rules. 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 September 30, 2021 and December 31, 2020, that the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the Federal Deposit Insurance Corporation (“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 September 30, 2021 Rhinebeck Bank Total capital (to risk-weighted assets) $ 128,554 14.12 % $ 72,810 8.00 % $ 91,012 10.00 % Tier 1 capital (to risk-weighted assets) 119,520 13.13 % 54,607 6.00 % 72,810 8.00 % Common equity tier one capital (to risk weighted assets) 119,520 13.13 % 40,955 4.50 % 59,158 6.50 % Tier 1 capital (to average assets) 119,520 9.58 % 49,922 4.00 % 62,403 5.00 % 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 % |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value | |
Fair Value | 13. Fair Value 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 fair value is estimated using a discounted cash flow calculation that applies interest rates currently being offered on deposited escrow accounts of similarly expected maturities. 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. Loan level interest rate Swaps The fair value is based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves. 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) September 30, 2021 Assets: U.S. Treasury securities $ 40,189 $ 40,189 $ — $ — U.S. government agency mortgage-backed securities-residential 156,897 — 156,897 — U.S. government agency securities 26,878 — 26,878 — Municipal securities 7,010 — 6,865 145 Corporate Bonds 8,775 — 8,775 — Other 640 — 640 — Total available for sale securities 240,389 40,189 200,055 145 Loan level interest rate swaps 143 — 143 — Total assets $ 240,532 $ 40,189 $ 200,198 $ 145 Liabilities: Loan level interest rate swaps 143 — 143 — Total liabilities $ 143 $ — $ 143 $ — December 31, 2020 Assets: 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 available for sale securities 102,933 — 102,773 160 Loan level interest rate swaps 41 — 41 — Total assets $ 102,974 $ — $ 102,814 $ 160 Liabilities: Loan level interest rate swaps 41 — 41 — Total liabilities $ 41 $ — $ 41 $ — The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020 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) September 30, 2021 Impaired loans, with specific reserves $ 212 $ — $ — $ 212 Other real estate owned 89 — — 89 Total $ 301 $ — $ — $ 301 December 31, 2020 Impaired loans, with specific reserves $ 509 $ — $ — $ 509 Other real estate owned 139 — — 139 Total $ 648 $ — $ — $ 648 Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans had recorded investments of $280 and $662 with valuation allowances of $68 and $153, resulting fair values of $212 and $509 at September 30, 2021 and December 31, 2020, respectively. The valuation allowance represents specific allocations for the allowance for credit losses for impaired loans. 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) September 30, 2021 Impaired loans $ 212 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% Other real estate owned 89 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% 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% (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 2021 and 2020 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: September 30, December 31, 2021 2020 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 1) $ 114,587 $ 114,587 $ 93,485 $ 93,485 Available for sale securities (Level 1) 40,189 40,189 — — Available for sale securities (Level 2) 200,055 200,055 102,773 102,773 Available for sale securities (Level 3) 145 145 160 160 Loan level interest rate swaps (Level 2) 143 143 41 41 FHLB stock (Level 2) 1,417 1,417 2,787 2,787 Loans, net (Level 3) 833,841 830,263 873,813 876,699 Mortgage servicing rights (Level 3) 2,639 4,486 2,390 3,569 Financial Liabilities: Deposits (Level 2) 1,087,387 1,077,152 929,364 941,460 Mortgagors' escrow accounts (Level 2) 4,264 4,269 8,494 8,501 FHLB advances (Level 2) 20,145 20,349 50,674 51,468 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 143 143 41 41 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 14. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 is as follows: Accumulated Other Comprehensive Loss (1) Unrealized (losses) gains on Defined Benefit available for sale Pension Plan securities Total Balance at June 30, 2021 $ (4,605) $ (126) $ (4,731) Other comprehensive loss before reclassifications (120) (472) (592) Amounts reclassified from accumulated other comprehensive loss 71 — 71 Period change (49) (472) (521) Balance at September 30, 2021 $ (4,654) $ (598) $ (5,252) Balance at June 30, 2020 $ (4,663) $ 1,842 $ (2,821) Other comprehensive gain (loss) before reclassifications 637 (431) 206 Amounts reclassified from accumulated other comprehensive loss 56 — 56 Period change 693 (431) 262 Balance at September 30, 2020 $ (3,970) $ 1,411 $ (2,559) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0%. Accumulated Other Comprehensive Loss (1) Unrealized gains (losses) on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2020 $ (4,784) $ 993 $ (3,791) Other comprehensive loss before reclassifications (83) (1,591) (1,674) Amounts reclassified from accumulated other comprehensive loss 213 — 213 Period change 130 (1,591) (1,461) Balance at September 30, 2021 $ (4,654) $ (598) $ (5,252) Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) Other comprehensive (loss) gain before reclassifications (230) 1,583 1,353 Amounts reclassified from accumulated other comprehensive loss 169 23 192 Period change (61) 1,606 1,545 Balance at September 30, 2020 $ (3,970) $ 1,411 $ (2,559) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0%. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | 15. 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. There were no potentially dilutive common stock equivalents for the three or nine months ended September 30, 2020. Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net income applicable to common stock $ 2,685 $ 1,150 $ 8,571 $ 3,573 Average number of common shares outstanding 11,153,186 11,133,290 11,139,944 11,133,290 Less: Average unearned ESOP shares 379,148 400,969 384,602 406,423 Average number of common shares outstanding used to calculate basic earnings per common share 10,774,038 10,732,321 10,755,342 10,726,867 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 61,444 — 64,311 — Additional common stock equivalents (stock options) used to calculate diluted earnings per share 111,453 — 94,776 — Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,946,935 10,732,321 10,914,429 10,726,867 Earnings per Common share: Basic $ 0.25 $ 0.10 $ 0.80 $ 0.33 Diluted $ 0.25 $ 0.10 $ 0.79 $ 0.33 |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 accounting principles generally accepted in the United States of America (“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 loan losses, the valuation of securities, the evaluation of investment securities for other-than-temporary impairment, the evaluation of goodwill for impairment, the valuation of deferred tax assets and the determination of pension obligations. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. On March 12, 2021, the Bank completed a branch purchase and assumption transaction with ConnectOne Bank. Management concluded that the acquisition represented a business combination, which is accounted for using the acquisition method, with the results of operations included in the Company’s consolidated financial statements as of the acquisition date. For additional information, see Note 2. |
Reclassifications | Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. |
COVID-19 | COVID-19 Significant progress has been made to combat the outbreak of COVID-19; however, the global pandemic has adversely impacted a broad range of industries in which the Company's customers operate and could still impair their ability to fulfill their financial obligations to the Company. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If there is a resurgence in the virus or variant strains of the virus increase, the Company could experience further adverse effects on its business, financial condition, results of operations and cash flows. It is not possible to know the full extent of the impact of COVID-19 and the effects it will have on the Company's future operations. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. |
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-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company is taking advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s consolidated 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 recent accounting standards reflect those that relate to non-issuer companies. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Acquisition | |
Schedule of estimated fair values of the assets acquired and liabilities assumed | March 12, Fair value of consideration transferred, assets acquired and liabilities assumed 2021 Total cash received on acquisition $ 32,767 Assets acquired Fixed assets 113 Reimbursed expenses 9 Core deposit intangible (1) 330 Total assets acquired 452 Liabilities assumed Deposits 33,863 Mark-to-market adjustment 181 Total liabilities assumed 34,044 Net liabilities acquired (33,592) Goodwill recognized $ 825 _____________________________ (1) The core deposit intangible was determined to have an estimated life of approximately 13 years . |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities | September 30, 2021 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,397 $ 1 $ (209) $ 40,189 U.S. government agency mortgage-backed securities–residential 157,595 706 (1,404) 156,897 U.S. government agency securities 26,810 107 (39) 26,878 Municipal securities (1) 7,005 32 (27) 7,010 Corporate bonds 8,700 107 (32) 8,775 Other 640 — — 640 Total $ 241,147 $ 953 $ (1,711) $ 240,389 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 (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 | September 30, 2021 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ 30,169 $ (209) $ — $ — $ 30,169 $ (209) U.S. government agency mortgage-backed securities-residential 103,868 (1,186) 11,974 (218) 115,842 (1,404) U.S. government agency securities 14,719 (39) — — 14,719 (39) Municipal Securities 2,339 (27) — — 2,339 (27) Corporate Bonds 3,474 (26) 244 (6) 3,718 (32) Total $ 154,569 $ (1,487) $ 12,218 $ (224) $ 166,787 $ (1,711) 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) |
Schedule of maturities of debt securities | September 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 12,916 $ 12,915 $ 102 $ 102 After 1 but within 5 years 48,948 48,832 2,155 2,155 After 5 but within 10 years 20,903 20,961 9,946 10,162 After 10 years 145 145 655 664 Total Maturities 82,912 82,853 12,858 13,083 Mortgage-backed securities 157,595 156,896 88,197 89,270 Other 640 640 621 580 Total $ 241,147 $ 240,389 $ 101,676 $ 102,933 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Allowance for Loan Losses | |
Schedule of summary loan portfolio | September 30, December 31, 2021 2020 Commercial real estate loans: Construction $ 5,682 $ 5,392 Non-residential 236,240 248,349 Multi-family 41,233 30,379 Residential real estate loans 35,830 39,239 Commercial and industrial loans (1) 117,755 154,016 Consumer loans: Indirect automobile 377,116 376,260 Home equity 12,253 14,165 Other consumer 8,240 8,816 Total gross loans 834,349 876,616 Net deferred loan costs 8,526 8,830 Allowance for loan losses (9,034) (11,633) Total net loans $ 833,841 $ 873,813 (1) Includes $44,080 and $75,366 in U.S. Small Business Administration (“SBA”), paycheck protection program (“PPP”) loans at September 30, 2021 and December 31, 2020, respectively. |
Schedule of loans by risk rating and portfolio segment | September 30, 2021 Pass Special Mention Substandard Total Commercial real estate: Construction $ 5,682 $ — $ — $ 5,682 Non-residential 228,816 5,189 2,235 236,240 Multifamily 41,233 — — 41,233 Residential real estate 33,347 — 2,483 35,830 Commercial and industrial 111,685 5,047 1,023 117,755 Consumer: Indirect automobile 376,639 — 477 377,116 Home equity 12,029 — 224 12,253 Other consumer 8,193 — 47 8,240 Total $ 817,624 $ 10,236 $ 6,489 $ 834,349 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 |
Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans | September 30, 2021 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 $ 5,682 $ — $ — $ — $ 5,682 $ — Non-residential 232,909 — 1,243 2,088 236,240 2,088 Multifamily 41,233 — — — 41,233 — Residential real estate 34,561 58 — 1,211 35,830 2,483 Commercial and industrial 116,418 409 186 742 117,755 884 Consumer: Indirect automobile 371,303 4,576 790 447 377,116 477 Home equity 11,868 214 45 126 12,253 224 Other consumer 8,051 107 35 47 8,240 47 Total $ 822,025 $ 5,364 $ 2,299 $ 4,661 $ 834,349 $ 6,203 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 |
Schedule of information to impaired loans by loan portfolio class | September 30, 2021 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 2,088 $ 3,148 $ — $ 2,096 Multifamily — — — — Residential real estate 2,483 3,025 — 2,561 Commercial and industrial 884 1,156 — 589 Consumer: Indirect automobile 197 257 — 232 Home equity 224 225 — 357 Other consumer 47 48 — 38 Total $ 5,923 $ 7,859 $ — $ 5,873 With an allowance recorded: Commercial and industrial $ — $ — $ — $ 153 Consumer: Indirect automobile 280 287 68 337 Other consumer — — — 12 Total $ 280 $ 287 $ 68 $ 502 Total: Commercial real estate: Non-residential $ 2,088 $ 3,148 $ — $ 2,096 Multifamily — — — — Residential real estate 2,483 3,025 — 2,561 Commercial and industrial 884 1,156 — 742 Consumer: Indirect automobile 477 544 68 569 Home equity 224 225 — 357 Other consumer 47 48 — 50 Total $ 6,203 $ 8,146 $ 68 $ 6,375 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 real estate: 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 |
Schedule of loan balances by segment | Commercial Commercial Real Estate Residential and Industrial Indirect Consumer Totals Three months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 4,833 $ 120 $ 759 $ 4,071 $ 343 $ 10,126 Provision for (credit to) loan losses (792) (67) 491 (294) (292) (954) Loans charged-off — — (12) (527) (5) (544) Recoveries — — 1 390 15 406 Ending balance $ 4,041 $ 53 $ 1,239 $ 3,640 $ 61 $ 9,034 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Three months ended September 30, 2020 Allowance for loan losses: Beginning balance $ 2,673 $ 125 $ 859 $ 4,779 $ 136 $ 8,572 Provision for loan losses 1,217 4 366 653 10 2,250 Loans charged-off — — (88) (499) (3) (590) Recoveries 4 — (3) 325 5 331 Ending balance $ 3,894 $ 129 $ 1,134 $ 5,258 $ 148 $ 10,563 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Nine months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 (Credit to) provision for loan losses (1,313) (67) 113 (803) (101) (2,171) Loans charged-off — — (13) (1,644) (14) (1,671) Recoveries — 3 89 1,113 38 1,243 Ending balance $ 4,041 $ 53 $ 1,239 $ 3,640 $ 61 $ 9,034 Ending balance: Loans deemed impaired $ — $ — $ — $ 68 $ — $ 68 Loans not deemed impaired $ 4,041 $ 53 $ 1,239 $ 3,572 $ 61 $ 8,966 Loan receivables: Ending balance $ 283,155 $ 35,830 $ 117,755 $ 377,116 $ 20,493 $ 834,349 Ending balance: Loans deemed impaired $ 2,088 $ 2,483 $ 884 $ 477 $ 271 $ 6,203 Loans not deemed impaired $ 281,067 $ 33,347 $ 116,871 $ 376,639 $ 20,222 $ 828,146 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Nine months ended September 30, 2020 Allowance for loan losses: Beginning balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Provision for loan losses 1,881 30 651 3,114 29 5,705 Loans charged-off — — (127) (1,688) (21) (1,836) Recoveries 4 — 7 715 14 740 Ending balance $ 3,894 $ 129 $ 1,134 $ 5,258 $ 148 $ 10,563 Ending balance: Loans deemed impaired $ — $ — $ 24 $ 204 $ 2 $ 230 Loans not deemed impaired $ 3,894 $ 129 $ 1,110 $ 5,054 $ 146 $ 10,333 Loan receivables: Ending balance $ 284,862 $ 40,605 $ 170,663 $ 372,863 $ 24,147 $ 893,140 Ending balance: Loans deemed impaired $ 1,291 $ 2,684 $ 422 $ 900 $ 561 $ 5,858 Loans not deemed impaired $ 283,571 $ 37,921 $ 170,241 $ 371,963 $ 23,586 $ 887,282 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals December 31, 2020 Allowance for loan losses: 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 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying value of goodwill | Nine Months Year Ended Ended September 30, December 31, 2021 2020 Beginning balance $ 1,410 $ 1,410 Acquisition activity 825 — Ending balance $ 2,235 $ 1,410 Accumulated impairment $ 1,116 $ 1,116 |
Schedule of changes in the carrying value of customer list intangible | Nine Months Year Ended Ended September 30, December 31, 2021 2020 Beginning balance $ 199 $ 241 Acquisition activity 330 — Amortization (69) (42) Ending balance $ 460 $ 199 Accumulated amortization and impairment $ 817 $ 748 |
Schedule of future amortization expense for amortizable intangible assets | 2021 $ 26 2022 99 2023 88 2024 80 2025 61 Thereafter 106 Total $ 460 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Premises and Equipment | |
Schedule of premises and equipment | September 30, December 31, 2021 2020 Land $ 3,732 $ 3,732 Buildings and improvements 26,651 26,431 Furniture, fixtures and equipment 13,762 13,042 Construction in process 589 93 Total 44,734 43,298 Less accumulated depreciation (25,570) (24,459) Net $ 19,164 $ 18,839 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Schedule of deposits | September 30, December 31, 2021 2020 Non-interest bearing demand deposits $ 316,521 $ 244,344 Interest bearing accounts: NOW 156,330 141,580 Savings 178,913 157,414 Money market 267,261 185,383 Time certificates of deposit 168,362 200,643 Total interest bearing accounts 770,866 685,020 Total deposits $ 1,087,387 $ 929,364 |
Schedule of contractual maturities of time certificates of deposit | September 30, 2021 Within 1 year $ 137,305 1 – 2 years 12,740 2 – 3 years 8,754 3 – 4 years 8,537 4 – 5 years 1,026 Total $ 168,362 |
Long-Term Debt and FHLB Stock (
Long-Term Debt and FHLB Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 3 year amortizing $ 2,571 May 16, 2022 2.49 % $ 2,571 — 3 year bullet 10,000 May 16, 2022 2.44 % 10,000 — 3 year amortizing 7,574 February 28, 2023 1.32 % 5,033 2,541 Total $ 20,145 Weighted Average Rate 2.03 % $ 17,604 $ 2,541 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Employee Benefits | |
Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition | September 30, December 31, 2021 2020 Projected and accumulated benefit obligation $ (23,367) $ (23,964) Plan assets at fair value 22,199 22,634 Funded status included in accrued expenses and other liabilities $ (1,168) $ (1,330) |
Schedule of net periodic pension cost and amounts recognized in other comprehensive income | Nine months ended September 30, 2021 2020 Interest cost $ 442 $ 502 Expected return on plan assets (708) (639) Amortization of unrecognized loss 269 214 Net periodic cost (benefit) $ 3 $ 77 |
Schedule of fair value of pension plan assets, by fair value hierarchy | The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 15,560 $ — $ — $ 15,560 Equity 6,639 — — 6,639 Total assets at fair value $ 22,199 $ — $ — $ 22,199 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 |
Schedule of employee stock ownership plan | Nine months ended Year ended September 30, December 31, 2021 2020 Allocated 43,642 21,821 Committed to be allocated 16,362 21,821 Unallocated 376,421 392,783 Paid out to participants (68) (68) Total shares 436,357 436,357 |
Summary of options | A summary of options under the 2020 EIP as of September 30, 2021 is presented below: Weighted - Weighted-Average Number of Average Remaining Contractual Shares Exercise Price Term (in Years) Options outstanding at beginning of year 448,385 $ 6.61 9.66 Options granted - - - Options exercised (5,455) 6.57 - Forfeited - - - Options outstanding at September 30, 2021 442,930 $ 6.62 8.92 Options exercisable at September 30, 2021 138,997 6.57 8.91 |
Summary of Company's restricted stock activity | The following table summarizes the Company’s restricted stock activity for the nine months ended September 30, 2021: Weighted-Average Number Grant Date of Shares Fair Value per Share Non-vested restricted stock at beginning of year 169,769 $ 6.57 Granted - - Vested (56,582) 6.57 Forfeited - - Non-vested restricted stock at September 30, 2021 113,187 $ 6.57 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Schedule of future minimum payments for operating leases | Years ending December 31: 2021 $ 198 2022 754 2023 732 2024 729 2025 743 Thereafter 5,822 Total future minimum lease payments 8,978 Amounts representing interest (1,392) Present Value of Net Future Minimum Lease Payments $ 7,586 |
Commitments and Contingencies_2
Commitments and Contingencies and Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies and Derivatives | |
Schedule of contract amounts represent off-balance sheet credit risk | September 30, December 31, 2021 2020 Commitments to extend credit summarized as follows: Future loan commitments $ 12,236 $ 14,356 Undisbursed construction loans 2,693 3,493 Undisbursed home equity lines of credit 10,834 10,686 Undisbursed commercial and other line of credit 72,089 63,911 Standby letters of credit 3,050 5,681 Total $ 100,902 $ 98,127 |
Schedule of information regarding derivatives | September 30, December 31, 2021 2020 Notational amount $ 9,018 $ 1,875 Fair value $ 143 $ 41 Weighted average pay rates 3.51 % 3.10 % Weighted average receive rates 2.29 % 2.22 % Weighted average maturity (in years) 9.61 9.92 Number of Contracts 5 1 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 Rhinebeck Bank Total capital (to risk-weighted assets) $ 128,554 14.12 % $ 72,810 8.00 % $ 91,012 10.00 % Tier 1 capital (to risk-weighted assets) 119,520 13.13 % 54,607 6.00 % 72,810 8.00 % Common equity tier one capital (to risk weighted assets) 119,520 13.13 % 40,955 4.50 % 59,158 6.50 % Tier 1 capital (to average assets) 119,520 9.58 % 49,922 4.00 % 62,403 5.00 % 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 % |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) September 30, 2021 Assets: U.S. Treasury securities $ 40,189 $ 40,189 $ — $ — U.S. government agency mortgage-backed securities-residential 156,897 — 156,897 — U.S. government agency securities 26,878 — 26,878 — Municipal securities 7,010 — 6,865 145 Corporate Bonds 8,775 — 8,775 — Other 640 — 640 — Total available for sale securities 240,389 40,189 200,055 145 Loan level interest rate swaps 143 — 143 — Total assets $ 240,532 $ 40,189 $ 200,198 $ 145 Liabilities: Loan level interest rate swaps 143 — 143 — Total liabilities $ 143 $ — $ 143 $ — December 31, 2020 Assets: 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 available for sale securities 102,933 — 102,773 160 Loan level interest rate swaps 41 — 41 — Total assets $ 102,974 $ — $ 102,814 $ 160 Liabilities: Loan level interest rate swaps 41 — 41 — Total liabilities $ 41 $ — $ 41 $ — |
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) September 30, 2021 Impaired loans, with specific reserves $ 212 $ — $ — $ 212 Other real estate owned 89 — — 89 Total $ 301 $ — $ — $ 301 December 31, 2020 Impaired loans, with specific reserves $ 509 $ — $ — $ 509 Other real estate owned 139 — — 139 Total $ 648 $ — $ — $ 648 |
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) September 30, 2021 Impaired loans $ 212 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% Other real estate owned 89 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% 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% (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 | September 30, December 31, 2021 2020 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 1) $ 114,587 $ 114,587 $ 93,485 $ 93,485 Available for sale securities (Level 1) 40,189 40,189 — — Available for sale securities (Level 2) 200,055 200,055 102,773 102,773 Available for sale securities (Level 3) 145 145 160 160 Loan level interest rate swaps (Level 2) 143 143 41 41 FHLB stock (Level 2) 1,417 1,417 2,787 2,787 Loans, net (Level 3) 833,841 830,263 873,813 876,699 Mortgage servicing rights (Level 3) 2,639 4,486 2,390 3,569 Financial Liabilities: Deposits (Level 2) 1,087,387 1,077,152 929,364 941,460 Mortgagors' escrow accounts (Level 2) 4,264 4,269 8,494 8,501 FHLB advances (Level 2) 20,145 20,349 50,674 51,468 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 143 143 41 41 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Loss. | |
Schedule of accumulated other comprehensive loss components | The activity in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 is as follows: Accumulated Other Comprehensive Loss (1) Unrealized (losses) gains on Defined Benefit available for sale Pension Plan securities Total Balance at June 30, 2021 $ (4,605) $ (126) $ (4,731) Other comprehensive loss before reclassifications (120) (472) (592) Amounts reclassified from accumulated other comprehensive loss 71 — 71 Period change (49) (472) (521) Balance at September 30, 2021 $ (4,654) $ (598) $ (5,252) Balance at June 30, 2020 $ (4,663) $ 1,842 $ (2,821) Other comprehensive gain (loss) before reclassifications 637 (431) 206 Amounts reclassified from accumulated other comprehensive loss 56 — 56 Period change 693 (431) 262 Balance at September 30, 2020 $ (3,970) $ 1,411 $ (2,559) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0%. Accumulated Other Comprehensive Loss (1) Unrealized gains (losses) on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2020 $ (4,784) $ 993 $ (3,791) Other comprehensive loss before reclassifications (83) (1,591) (1,674) Amounts reclassified from accumulated other comprehensive loss 213 — 213 Period change 130 (1,591) (1,461) Balance at September 30, 2021 $ (4,654) $ (598) $ (5,252) Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) Other comprehensive (loss) gain before reclassifications (230) 1,583 1,353 Amounts reclassified from accumulated other comprehensive loss 169 23 192 Period change (61) 1,606 1,545 Balance at September 30, 2020 $ (3,970) $ 1,411 $ (2,559) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0%. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net income applicable to common stock $ 2,685 $ 1,150 $ 8,571 $ 3,573 Average number of common shares outstanding 11,153,186 11,133,290 11,139,944 11,133,290 Less: Average unearned ESOP shares 379,148 400,969 384,602 406,423 Average number of common shares outstanding used to calculate basic earnings per common share 10,774,038 10,732,321 10,755,342 10,726,867 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 61,444 — 64,311 — Additional common stock equivalents (stock options) used to calculate diluted earnings per share 111,453 — 94,776 — Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,946,935 10,732,321 10,914,429 10,726,867 Earnings per Common share: Basic $ 0.25 $ 0.10 $ 0.80 $ 0.33 Diluted $ 0.25 $ 0.10 $ 0.79 $ 0.33 |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2021item | |
Nature of Business and Significant Accounting Policies | |
Number of branches | 15 |
Number of representative offices | 2 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - ConnectOne Bank $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($) | Mar. 12, 2021USD ($)item | |
Business Acquisition [Line Items] | ||
Deposits | $ 33,863 | |
Expenses related to the acquisition | $ 71 | |
Monroe and Warwick, New York | ||
Business Acquisition [Line Items] | ||
Number of branch acquired | item | 2 |
Acquisition (Schedule of estima
Acquisition (Schedule of estimated fair values of the assets acquired and liabilities assumed) (Details) - USD ($) $ in Thousands | Mar. 12, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value of consideration transferred | ||||
Total cash received on acquisition | $ 32,767 | |||
Liabilities assumed | ||||
Goodwill | $ 2,235 | $ 1,410 | $ 1,410 | |
Useful life of purchased customer accounts | 13 years | |||
ConnectOne Bank | ||||
Fair value of consideration transferred | ||||
Total cash received on acquisition | $ 32,767 | |||
Assets acquired | ||||
Fixed assets | 113 | |||
Reimbursed expenses | 9 | |||
Core deposit intangible | 330 | |||
Total assets acquired | 452 | |||
Liabilities assumed | ||||
Deposits | 33,863 | |||
Mark-to-market adjustment | 181 | |||
Total liabilities assumed | 34,044 | |||
Net liabilities acquired | (33,592) | |||
Goodwill | $ 825 | |||
ConnectOne Bank | Core deposit | ||||
Liabilities assumed | ||||
Useful life of purchased customer accounts | 13 years |
Investment Securities (Schedule
Investment Securities (Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 241,147 | $ 101,676 | |
Gross Unrealized Gains | 953 | 1,578 | |
Gross Unrealized Losses | (1,711) | (321) | |
Fair Value | 240,389 | 102,933 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 40,397 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (209) | ||
Fair Value | 40,189 | ||
U.S. government agency mortgage-backed securities-residential | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 157,595 | 88,197 | |
Gross Unrealized Gains | 706 | 1,350 | |
Gross Unrealized Losses | (1,404) | (277) | |
Fair Value | 156,897 | 89,270 | |
U.S. government agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 26,810 | 7,013 | |
Gross Unrealized Gains | 107 | 148 | |
Gross Unrealized Losses | (39) | ||
Fair Value | 26,878 | 7,161 | |
Municipal securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | [1] | 7,005 | 1,445 |
Gross Unrealized Gains | [1] | 32 | 31 |
Gross Unrealized Losses | [1] | (27) | |
Fair Value | [1] | 7,010 | 1,476 |
Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 8,700 | 4,400 | |
Gross Unrealized Gains | 107 | 49 | |
Gross Unrealized Losses | (32) | (3) | |
Fair Value | 8,775 | 4,446 | |
Other | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 640 | 621 | |
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | (41) | |
Fair Value | $ 640 | $ 580 | |
[1] | The issuers of municipal securities are all within New York State. |
Investment Securities (Schedu_2
Investment Securities (Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 154,569 | $ 31,512 |
Less Than 12 Months Unrealized Losses | (1,487) | (313) |
12 Months or Longer Fair Value | 12,218 | 293 |
12 Months or Longer Unrealized Losses | (224) | (8) |
Fair Value | 166,787 | 31,805 |
Unrealized Losses | (1,711) | (321) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 30,169 | |
Less Than 12 Months Unrealized Losses | (209) | |
Fair Value | 30,169 | |
Unrealized Losses | (209) | |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 103,868 | 30,243 |
Less Than 12 Months Unrealized Losses | (1,186) | (269) |
12 Months or Longer Fair Value | 11,974 | 293 |
12 Months or Longer Unrealized Losses | (218) | (8) |
Fair Value | 115,842 | 30,536 |
Unrealized Losses | (1,404) | (277) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 14,719 | |
Less Than 12 Months Unrealized Losses | (39) | |
Fair Value | 14,719 | |
Unrealized Losses | (39) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 2,339 | |
Less Than 12 Months Unrealized Losses | (27) | |
Fair Value | 2,339 | |
Unrealized Losses | (27) | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 3,474 | 747 |
Less Than 12 Months Unrealized Losses | (26) | (3) |
12 Months or Longer Fair Value | 244 | |
12 Months or Longer Unrealized Losses | (6) | |
Fair Value | 3,718 | 747 |
Unrealized Losses | $ (32) | (3) |
Other | ||
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) |
Investment Securities (Schedu_3
Investment Securities (Schedule of maturities of debt securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Within 1 year | $ 12,916 | $ 102 |
After 1 but within 5 years | 48,948 | 2,155 |
After 5 but within 10 years | 20,903 | 9,946 |
After 10 years | 145 | 655 |
Total Maturities | 82,912 | 12,858 |
Mortgage-backed securities | 157,595 | 88,197 |
Other | 640 | 621 |
Amortized Cost | 241,147 | 101,676 |
Fair Value | ||
Within 1 year | 12,915 | 102 |
After 1 but within 5 years | 48,832 | 2,155 |
After 5 but within 10 years | 20,961 | 10,162 |
After 10 years | 145 | 664 |
Total Maturities | 82,853 | 13,083 |
Mortgage-backed securities | 156,896 | 89,270 |
Other | 640 | 580 |
Fair Value | $ 240,389 | $ 102,933 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($) | |
Investment Securities | ||
Number of individual available-for-sale securities with unrealized losses | security | 119 | |
Unrealized Losses | $ 1,711 | $ 321 |
Aggregate percentage of depreciation | 1.03% | |
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | $ 11,679 | 18,123 |
Available for sale securities pledged to secure Federal Reserve Bank of New York ("FRBNY") borrowings | 1,053 | $ 1,059 |
Proceeds from the sale of available for sale securities and calls | 2,000 | |
Gains on sales of investment securities | 0 | |
Losses on sales of investment securities | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Schedule of summary loan portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | $ 834,349 | $ 876,616 | $ 893,140 | |||
Net deferred loan costs | 8,526 | 8,830 | ||||
Allowance for loan losses | (9,034) | $ (10,126) | (11,633) | (10,563) | $ (8,572) | $ (5,954) |
Total net loans | 833,841 | 873,813 | ||||
Indirect automobile | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 377,116 | 376,260 | 372,863 | |||
Allowance for loan losses | (3,640) | (4,071) | (4,974) | (5,258) | (4,779) | (3,117) |
Commercial real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 283,155 | 284,120 | 284,862 | |||
Allowance for loan losses | (4,041) | (4,833) | (5,354) | (3,894) | (2,673) | (2,009) |
Commercial real estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 5,682 | 5,392 | ||||
Commercial real estate | Non-residential | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 236,240 | 248,349 | ||||
Commercial real estate | Multifamily | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 41,233 | 30,379 | ||||
Residential | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 35,830 | 39,239 | 40,605 | |||
Allowance for loan losses | (53) | (120) | (117) | (129) | (125) | (99) |
Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 117,755 | 154,016 | 170,663 | |||
Allowance for loan losses | (1,239) | (759) | (1,050) | (1,134) | (859) | (603) |
Commercial and industrial | Small Business Administration Paycheck Protection Program | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 44,080 | 75,366 | ||||
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 20,493 | 22,981 | 24,147 | |||
Allowance for loan losses | (61) | $ (343) | (138) | $ (148) | $ (136) | $ (126) |
Consumer | Indirect automobile | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 377,116 | 376,260 | ||||
Consumer | Home equity | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | 12,253 | 14,165 | ||||
Consumer | Other consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total gross loans | $ 8,240 | $ 8,816 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Schedule of loans by risk rating and portfolio segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | $ 834,349 | $ 876,616 | $ 893,140 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 817,624 | 858,751 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 10,236 | 10,863 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 6,489 | 7,002 | |
Indirect automobile | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 377,116 | 376,260 | 372,863 |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 283,155 | 284,120 | 284,862 |
Commercial real estate | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 5,682 | 5,392 | |
Commercial real estate | Construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 5,682 | 5,392 | |
Commercial real estate | Non-residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 236,240 | 248,349 | |
Commercial real estate | Non-residential | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 228,816 | 240,778 | |
Commercial real estate | Non-residential | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 5,189 | 5,468 | |
Commercial real estate | Non-residential | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 2,235 | 2,103 | |
Commercial real estate | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 41,233 | 30,379 | |
Commercial real estate | Multifamily | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 41,233 | 30,379 | |
Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 35,830 | 39,239 | 40,605 |
Residential | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 33,347 | 36,597 | |
Residential | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 2,483 | 2,642 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 117,755 | 154,016 | 170,663 |
Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 111,685 | 147,748 | |
Commercial and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 5,047 | 5,395 | |
Commercial and industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 1,023 | 873 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 20,493 | 22,981 | $ 24,147 |
Consumer | Indirect automobile | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 377,116 | 376,260 | |
Consumer | Indirect automobile | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 376,639 | 375,270 | |
Consumer | Indirect automobile | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 477 | 990 | |
Consumer | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 12,253 | 14,165 | |
Consumer | Home equity | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 12,029 | 13,819 | |
Consumer | Home equity | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 224 | 346 | |
Consumer | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 8,240 | 8,816 | |
Consumer | Other consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | 8,193 | 8,768 | |
Consumer | Other consumer | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans | $ 47 | $ 48 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | $ 834,349 | $ 876,616 | $ 893,140 |
Nonaccrual | 6,203 | 6,335 | |
Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 822,025 | 858,608 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 5,364 | 11,616 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,299 | 1,853 | |
Greater Than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 4,661 | 4,539 | |
Indirect automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 377,116 | 376,260 | 372,863 |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 283,155 | 284,120 | 284,862 |
Commercial real estate | Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 5,682 | 5,392 | |
Commercial real estate | Construction | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 5,682 | 5,392 | |
Commercial real estate | Non-residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 236,240 | 248,349 | |
Nonaccrual | 2,088 | 1,944 | |
Commercial real estate | Non-residential | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 232,909 | 244,387 | |
Commercial real estate | Non-residential | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,985 | ||
Commercial real estate | Non-residential | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,243 | 33 | |
Commercial real estate | Non-residential | Greater Than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,088 | 1,944 | |
Commercial real estate | Multifamily | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 41,233 | 30,379 | |
Commercial real estate | Multifamily | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 41,233 | 30,379 | |
Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 35,830 | 39,239 | 40,605 |
Nonaccrual | 2,483 | 2,641 | |
Residential | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 34,561 | 36,581 | |
Residential | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 58 | 1,351 | |
Residential | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 0 | 138 | |
Residential | Greater Than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,211 | 1,169 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 117,755 | 154,016 | 170,663 |
Nonaccrual | 884 | 366 | |
Commercial and industrial | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 116,418 | 151,771 | |
Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 409 | 1,551 | |
Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 186 | 511 | |
Commercial and industrial | Greater Than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 742 | 183 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 20,493 | 22,981 | $ 24,147 |
Consumer | Indirect automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 377,116 | 376,260 | |
Nonaccrual | 477 | 990 | |
Consumer | Indirect automobile | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 371,303 | 367,929 | |
Consumer | Indirect automobile | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 4,576 | 6,321 | |
Consumer | Indirect automobile | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 790 | 1,063 | |
Consumer | Indirect automobile | Greater Than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 447 | 947 | |
Consumer | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 12,253 | 14,165 | |
Nonaccrual | 224 | 346 | |
Consumer | Home equity | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 11,868 | 13,506 | |
Consumer | Home equity | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 214 | 310 | |
Consumer | Home equity | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 45 | 101 | |
Consumer | Home equity | Greater Than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 126 | 248 | |
Consumer | Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total gross loans | 8,240 | 8,816 | |
Nonaccrual | 47 | 48 | |
Consumer | Other consumer | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 8,051 | 8,663 | |
Consumer | Other consumer | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 107 | 98 | |
Consumer | Other consumer | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 35 | 7 | |
Consumer | Other consumer | Greater Than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | $ 47 | $ 48 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Schedule of information to impaired loans by loan portfolio class) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
With no related allowance recorded: | ||
Recorded Investment | $ 5,923 | $ 5,673 |
Unpaid Principal Balance | 7,859 | 7,463 |
Average Recorded Investment | 5,873 | 7,013 |
With an allowance recorded: | ||
Recorded Investment | 280 | 662 |
Unpaid Principal Balance | 287 | 683 |
Related Allowance | 68 | 153 |
Average Recorded Investment | 502 | 634 |
Total: | ||
Recorded Investment | 6,203 | 6,335 |
Unpaid Principal Balance | 8,146 | 8,146 |
Related Allowance | 68 | 153 |
Average Recorded Investment | 6,375 | 7,647 |
Commercial real estate | Non-residential | ||
With no related allowance recorded: | ||
Recorded Investment | 2,088 | 1,944 |
Unpaid Principal Balance | 3,148 | 2,973 |
Average Recorded Investment | 2,096 | 3,086 |
Total: | ||
Recorded Investment | 2,088 | 1,944 |
Unpaid Principal Balance | 3,148 | 2,973 |
Average Recorded Investment | 2,096 | 3,086 |
Commercial real estate | Multifamily | ||
With no related allowance recorded: | ||
Average Recorded Investment | 184 | |
Total: | ||
Average Recorded Investment | 184 | |
Residential | ||
With no related allowance recorded: | ||
Recorded Investment | 2,483 | 2,641 |
Unpaid Principal Balance | 3,025 | 3,086 |
Average Recorded Investment | 2,561 | 2,554 |
Total: | ||
Recorded Investment | 2,483 | 2,641 |
Unpaid Principal Balance | 3,025 | 3,086 |
Average Recorded Investment | 2,561 | 2,554 |
Commercial and industrial | ||
With no related allowance recorded: | ||
Recorded Investment | 884 | 345 |
Unpaid Principal Balance | 1,156 | 586 |
Average Recorded Investment | 589 | 426 |
With an allowance recorded: | ||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
Related Allowance | 11 | |
Average Recorded Investment | 153 | 30 |
Total: | ||
Recorded Investment | 884 | 366 |
Unpaid Principal Balance | 1,156 | 607 |
Related Allowance | 11 | |
Average Recorded Investment | 742 | 456 |
Consumer | Indirect automobile | ||
With no related allowance recorded: | ||
Recorded Investment | 197 | 397 |
Unpaid Principal Balance | 257 | 467 |
Average Recorded Investment | 232 | 293 |
With an allowance recorded: | ||
Recorded Investment | 280 | 593 |
Unpaid Principal Balance | 287 | 613 |
Related Allowance | 68 | 135 |
Average Recorded Investment | 337 | 591 |
Total: | ||
Recorded Investment | 477 | 990 |
Unpaid Principal Balance | 544 | 1,080 |
Related Allowance | 68 | 135 |
Average Recorded Investment | 569 | 884 |
Consumer | Home equity | ||
With no related allowance recorded: | ||
Recorded Investment | 224 | 346 |
Unpaid Principal Balance | 225 | 351 |
Average Recorded Investment | 357 | 449 |
Total: | ||
Recorded Investment | 224 | 346 |
Unpaid Principal Balance | 225 | 351 |
Average Recorded Investment | 357 | 449 |
Consumer | Other consumer | ||
With no related allowance recorded: | ||
Recorded Investment | 47 | |
Unpaid Principal Balance | 48 | |
Average Recorded Investment | 38 | 21 |
With an allowance recorded: | ||
Recorded Investment | 48 | |
Unpaid Principal Balance | 49 | |
Related Allowance | 7 | |
Average Recorded Investment | 12 | 13 |
Total: | ||
Recorded Investment | 47 | 48 |
Unpaid Principal Balance | 48 | 49 |
Related Allowance | 7 | |
Average Recorded Investment | $ 50 | $ 34 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Schedule of loan balances by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Allowance for loan losses: | |||||
Beginning balance | $ 10,126 | $ 8,572 | $ 11,633 | $ 5,954 | |
Provision for (credit to) loan losses | (954) | 2,250 | (2,171) | 5,705 | |
Loans charged-off | (544) | (590) | (1,671) | (1,836) | |
Recoveries | 406 | 331 | 1,243 | 740 | |
Ending balance | 9,034 | 10,563 | 9,034 | 10,563 | |
Allowance for loan losses: | |||||
Ending balance: Individually evaluated for impairment | 68 | 230 | 68 | 230 | $ 153 |
Ending balance: Collectively evaluated for impairment | 8,966 | 10,333 | 8,966 | 10,333 | 11,480 |
Loan receivables: | |||||
Ending balance | 834,349 | 893,140 | 834,349 | 893,140 | 876,616 |
Ending balance: Individually evaluated for impairment | 6,203 | 5,858 | 6,203 | 5,858 | 6,335 |
Ending balance: Collectively evaluated for impairment | 828,146 | 887,282 | 828,146 | 887,282 | 870,281 |
Indirect automobile | |||||
Allowance for loan losses: | |||||
Beginning balance | 4,071 | 4,779 | 4,974 | 3,117 | |
Provision for (credit to) loan losses | (294) | 653 | (803) | 3,114 | |
Loans charged-off | (527) | (499) | (1,644) | (1,688) | |
Recoveries | 390 | 325 | 1,113 | 715 | |
Ending balance | 3,640 | 5,258 | 3,640 | 5,258 | |
Allowance for loan losses: | |||||
Ending balance: Individually evaluated for impairment | 68 | 204 | 68 | 204 | 135 |
Ending balance: Collectively evaluated for impairment | 3,572 | 5,054 | 3,572 | 5,054 | 4,839 |
Loan receivables: | |||||
Ending balance | 377,116 | 372,863 | 377,116 | 372,863 | 376,260 |
Ending balance: Individually evaluated for impairment | 477 | 900 | 477 | 900 | 990 |
Ending balance: Collectively evaluated for impairment | 376,639 | 371,963 | 376,639 | 371,963 | 375,270 |
Commercial real estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 4,833 | 2,673 | 5,354 | 2,009 | |
Provision for (credit to) loan losses | (792) | 1,217 | (1,313) | 1,881 | |
Recoveries | 4 | 4 | |||
Ending balance | 4,041 | 3,894 | 4,041 | 3,894 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 4,041 | 3,894 | 4,041 | 3,894 | 5,354 |
Loan receivables: | |||||
Ending balance | 283,155 | 284,862 | 283,155 | 284,862 | 284,120 |
Ending balance: Individually evaluated for impairment | 2,088 | 1,291 | 2,088 | 1,291 | 1,944 |
Ending balance: Collectively evaluated for impairment | 281,067 | 283,571 | 281,067 | 283,571 | 282,176 |
Residential | |||||
Allowance for loan losses: | |||||
Beginning balance | 120 | 125 | 117 | 99 | |
Provision for (credit to) loan losses | (67) | 4 | (67) | 30 | |
Recoveries | 3 | ||||
Ending balance | 53 | 129 | 53 | 129 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 53 | 129 | 53 | 129 | 117 |
Loan receivables: | |||||
Ending balance | 35,830 | 40,605 | 35,830 | 40,605 | 39,239 |
Ending balance: Individually evaluated for impairment | 2,483 | 2,684 | 2,483 | 2,684 | 2,641 |
Ending balance: Collectively evaluated for impairment | 33,347 | 37,921 | 33,347 | 37,921 | 36,598 |
Commercial and industrial | |||||
Allowance for loan losses: | |||||
Beginning balance | 759 | 859 | 1,050 | 603 | |
Provision for (credit to) loan losses | 491 | 366 | 113 | 651 | |
Loans charged-off | (12) | (88) | (13) | (127) | |
Recoveries | 1 | 89 | 7 | ||
Adjustments | (3) | ||||
Ending balance | 1,239 | 1,134 | 1,239 | 1,134 | |
Allowance for loan losses: | |||||
Ending balance: Individually evaluated for impairment | 24 | 24 | 11 | ||
Ending balance: Collectively evaluated for impairment | 1,239 | 1,110 | 1,239 | 1,110 | 1,039 |
Loan receivables: | |||||
Ending balance | 117,755 | 170,663 | 117,755 | 170,663 | 154,016 |
Ending balance: Individually evaluated for impairment | 884 | 422 | 884 | 422 | 366 |
Ending balance: Collectively evaluated for impairment | 116,871 | 170,241 | 116,871 | 170,241 | 153,650 |
Consumer | |||||
Allowance for loan losses: | |||||
Beginning balance | 343 | 136 | 138 | 126 | |
Provision for (credit to) loan losses | (292) | 10 | (101) | 29 | |
Loans charged-off | (5) | (3) | (14) | (21) | |
Recoveries | 15 | 5 | 38 | 14 | |
Ending balance | 61 | 148 | 61 | 148 | |
Allowance for loan losses: | |||||
Ending balance: Individually evaluated for impairment | 2 | 2 | 7 | ||
Ending balance: Collectively evaluated for impairment | 61 | 146 | 61 | 146 | 131 |
Loan receivables: | |||||
Ending balance | 20,493 | 24,147 | 20,493 | 24,147 | 22,981 |
Ending balance: Individually evaluated for impairment | 271 | 561 | 271 | 561 | 394 |
Ending balance: Collectively evaluated for impairment | 20,222 | $ 23,586 | 20,222 | $ 23,586 | 22,587 |
Consumer | Indirect automobile | |||||
Loan receivables: | |||||
Ending balance | $ 377,116 | $ 377,116 | $ 376,260 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Narrative) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of loan | $ 1,468 | $ 1,571 |
Number of loans default | loan | 3 | 3 |
Number of new loans default | loan | 0 | 0 |
Balance of capitalized servicing rights | $ 2,639 | $ 2,390 |
Aggregate balances of loans serviced to participants | 4,050 | 4,291 |
Aggregate balances of loans serviced to third party | 313,037 | 300,700 |
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | 0 |
Amount of consumer mortgages and loans secured by residential real estate properties in process of foreclosure | 946 | 636 |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 0 | 0 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balances of loans held for sale | $ 2,912 | $ 2,718 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of changes in the carrying value of goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets | ||
Beginning balance | $ 1,410 | $ 1,410 |
Acquisition activity | 825 | |
Ending balance | 2,235 | 1,410 |
Accumulated impairment | 1,116 | 1,116 |
Impairment loss on goodwill | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of changes in the carrying value of customer list and core deposit intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | $ 199 | $ 241 | $ 241 | ||
Acquisition activity | 330 | ||||
Amortization | $ (27) | $ (11) | (69) | $ (32) | (42) |
Ending balance | 460 | 460 | 199 | ||
Accumulated amortization and impairment | $ 817 | $ 817 | $ 748 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets | |||||
Amortization of Intangible Assets | $ 27 | $ 11 | $ 69 | $ 32 | $ 42 |
Useful life of purchased customer accounts | 13 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of future amortization expense for amortizable intangible assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets | |||
2021 | $ 26 | ||
2022 | 99 | ||
2023 | 88 | ||
2024 | 80 | ||
2025 | 61 | ||
Thereafter | 106 | ||
Total | $ 460 | $ 199 | $ 241 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of premises and equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 44,734 | $ 43,298 |
Less accumulated depreciation | (25,570) | (24,459) |
Net | 19,164 | 18,839 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,732 | 3,732 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 26,651 | 26,431 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 13,762 | 13,042 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 589 | $ 93 |
Deposits (Schedule of deposits)
Deposits (Schedule of deposits) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposits | ||
Non-interest bearing demand deposits | $ 316,521 | $ 244,344 |
Interest bearing accounts: | ||
NOW | 156,330 | 141,580 |
Savings | 178,913 | 157,414 |
Money market | 267,261 | 185,383 |
Time certificates of deposit | 168,362 | 200,643 |
Total interest bearing accounts | 770,866 | 685,020 |
Total deposits | $ 1,087,387 | $ 929,364 |
Deposits (Schedule of contractu
Deposits (Schedule of contractual maturities of time certificates of deposit) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposits | ||
Within 1 year | $ 137,305 | |
1 - 2 years | 12,740 | |
2 - 3 years | 8,754 | |
3 - 4 years | 8,537 | |
4 - 5 years | 1,026 | |
Total | $ 168,362 | $ 200,643 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Deposits [Line Items] | ||
Reciprocal deposits | $ 19,568 | $ 30,012 |
Time certificates of deposit in denominations of $250 or greater | $ 28,252 | $ 34,565 |
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 | Sep. 30, 2021USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 20,145 |
Rate | 2.03% |
Due in one year | $ 17,604 |
Long term | 2,541 |
3 year amortizing on May 16, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 2,571 |
Rate | 2.49% |
Due in one year | $ 2,571 |
Long term | 0 |
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% |
Due in one year | $ 10,000 |
Long term | 0 |
3 year amortizing February 28, 2023 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 7,574 |
Rate | 1.32% |
Due in one year | $ 5,033 |
Long term | $ 2,541 |
Long-Term Debt and FHLB Stock_3
Long-Term Debt and FHLB Stock (Narrative) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)subsidiary$ / shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2005USD ($)$ / sharesshares | |
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Advances from Federal Home Loan Banks | $ 20,145 | $ 50,674 | ||
Number Of Wholly Owned Subsidiaries | subsidiary | 1 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Funding received | $ (15,030) | $ (2,223) | ||
Zions Bank | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Line of credit, maximum borrowing capacity | 10,000 | $ 10,000 | ||
Line of credit facility, maximum amount outstanding during period | $ 0 | $ 0 | ||
Subordinated Debt. | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest rate, variable rate basis | 3-month LIBOR | |||
Interest rate | 2.13% | 2.21% | ||
Subordinated debt securities | $ 5,155 | |||
Stated maturity date | May 23, 2035 | |||
Subordinated Debt. | LIBOR | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest LIBOR rate | 2.00% | |||
Subordinated Debt. | RSB Capital Trust I | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest rate, variable rate basis | 3-month LIBOR | |||
Trust term | 30 years | |||
Subordinated Debt. | RSB Capital Trust I | LIBOR | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest LIBOR rate | 2.00% | |||
Subordinated Debt. | Private placement | RSB Capital Trust I | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Number of preferred securities issued | $ 5,000 | |||
Common stock issued | shares | 155 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | |||
Federal Home Loan Bank of New York ("FHLBNY") | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 631,297 | $ 564,330 | ||
Amount of pledged assets | 170,587 | 175,011 | ||
Impairment Related To Federal Home Loan Stock | $ 0 | $ 0 |
Employee Benefits (Schedule of
Employee Benefits (Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Employee Benefits | ||
Projected and accumulated benefit obligation | $ (23,367) | $ (23,964) |
Plan assets at fair value | 22,199 | 22,634 |
Funded status included in accrued expenses and other liabilities | $ (1,168) | $ (1,330) |
Employee Benefits (Schedule o_2
Employee Benefits (Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Benefits | ||
Interest cost | $ 442 | $ 502 |
Expected return on plan assets | (708) | (639) |
Amortization of unrecognized loss | 269 | 214 |
Net periodic cost (benefit) | $ 3 | $ 77 |
Employee Benefits (Schedule o_3
Employee Benefits (Schedule of fair value of pension plan assets, by fair value hierarchy) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 22,199 | $ 22,634 |
Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 22,199 | 22,634 |
Defined Benefit Pension Plan | Investment in separate accounts fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 15,560 | 15,189 |
Defined Benefit Pension Plan | Investment in separate accounts equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 6,639 | 6,206 |
Defined Benefit Pension Plan | Investment in separate accounts other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 1,239 | |
Level 1 | Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 22,199 | 22,634 |
Level 1 | Defined Benefit Pension Plan | Investment in separate accounts fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 15,560 | 15,189 |
Level 1 | Defined Benefit Pension Plan | Investment in separate accounts equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 6,639 | 6,206 |
Level 1 | Defined Benefit Pension Plan | Investment in separate accounts other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 1,239 |
Employee Benefits (Various Bene
Employee Benefits (Various Benefits - Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)fund | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
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 | 10 | ||||
Number of equity funds | fund | 7 | ||||
Number of fixed income funds | fund | 3 | ||||
Accrued expenses and other liabilities | $ 21,550 | $ 21,550 | $ 18,643 | ||
Non-interest expense | 9,138 | $ 7,432 | 25,967 | $ 21,496 | |
Employer contribution in defined contribution plan | 798 | 732 | |||
Postretirement Life Insurance [Member] | |||||
Schedule Of Employee Benefits [Line Items] | |||||
Liability related to these postretirement benefits | 1,419 | 1,419 | 1,387 | ||
Postemployment benefit expense | 32 | 43 | |||
Postemployment Retirement Benefits [Member] | |||||
Schedule Of Employee Benefits [Line Items] | |||||
Non-interest expense | 56 | 65 | |||
Liability related to these postretirement benefits | 1,977 | 1,977 | 2,148 | ||
Officer [Member] | Deferred Compensation, Share-based Payments [Member] | |||||
Schedule Of Employee Benefits [Line Items] | |||||
Accrued expenses and other liabilities | 1,359 | 1,359 | 1,312 | ||
Non-interest expense | 392 | 419 | |||
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 | $ 2,749 | 2,749 | $ 2,483 | ||
Non-interest expense | $ 106 | $ 131 | |||
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 |
Employee Benefits (Schedule o_4
Employee Benefits (Schedule of employee stock ownership plan) (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Employee Benefits | ||
Allocated | 43,642 | 21,821 |
Committed to be allocated | 16,362 | 21,821 |
Unallocated | 376,421 | 392,783 |
Paid out to participants | (68) | (68) |
Total shares | 436,357 | 436,357 |
Employee Benefits (Employee Sto
Employee Benefits (Employee Stock Ownership Plan (ESOP) Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2021 | Jan. 16, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 436,357 | 436,357 | |||
Committed to be allocated | 16,362 | 21,821 | |||
Compensation expense | $ 168 | $ 129 | |||
Employee Stock Ownership Plan (ESOP) | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 436,425 | ||||
Common stock price per share | $ 10 | ||||
Terms of repurchase share under ESOP | 20 years | ||||
Interest rate | 3.25% | ||||
Balance of ESOP loan | $ 4,087 | ||||
Committed to be allocated | 21,821 | ||||
Fair value of unallocated shares | $ 4,103 | ||||
Compensation expense | $ 168 | $ 129 |
Employee Benefits (Share-Based
Employee Benefits (Share-Based Compensation Plan Narrative) (Details) - 2020 EIP - USD ($) $ in Thousands | May 26, 2020 | Sep. 30, 2021 |
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 | |
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% | |
Available for future grants | 97,146 | |
Aggregate intrinsic value of options | $ 1,898 | |
Period for Recognition | 1 year 10 months 28 days | |
Unrecognized compensation cost related to the nonvested restricted stock awards granted | $ 476 | |
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% | |
Available for future grants | 48,443 | |
Period for Recognition | 1 year 10 months 24 days | |
Unrecognized compensation cost related to the nonvested restricted stock awards granted | $ 706 | |
Allocated share-based compensation expense | $ 464 |
Employee Benefits (Summary of o
Employee Benefits (Summary of options) (Details) - 2020 EIP - Stock options - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Shares | ||
Options outstanding at beginning of year | 448,385 | |
Options exercised | (5,455) | |
Options outstanding at September 30, 2021 | 442,930 | 448,385 |
Options exercisable at September 30, 2021 | 138,997 | |
Weighted - Average Exercise Price | ||
Beginning of year | $ 6.61 | |
Exercised | 6.57 | |
End of period | 6.62 | $ 6.61 |
Exercisable | $ 6.57 | |
Weighted-Average Contractual Term | ||
Weighted-Average Contractual Term, Outstanding | 8 years 11 months 1 day | 9 years 7 months 28 days |
Weighted-Average Contractual Term, Exercisable | 8 years 10 months 28 days |
Employee Benefits (Summary of C
Employee Benefits (Summary of Company's restricted stock activity) (Details) - Restricted stock | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of shares | |
Balance at beginning of period (in shares) | shares | 169,769 |
Vested (in shares) | shares | (56,582) |
Balance at end of period (in shares) | shares | 113,187 |
Weighted-Average Grant Date Fair Value per Share | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 6.57 |
Vested (in dollars per share) | $ / shares | 6.57 |
Balance at end of period (in dollars per share) | $ / shares | $ 6.57 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Leases | ||
Number of leased branch offices | item | 8 | |
Number of leased administrative offices | item | 2 | |
Weighted average remaining life of the lease terms | 12 years 8 months 12 days | |
Weighted average discount rate | 2.56% | |
Operating lease costs | $ 539 | |
Deferred rent liability | 152 | $ 176 |
Operating lease right-of-use asset | $ 7,586 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets. | |
Operating lease liability | $ 7,586 | |
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 | Sep. 30, 2021USD ($) |
Leases | |
2021 | $ 198 |
2022 | 754 |
2023 | 732 |
2024 | 729 |
2025 | 743 |
Thereafter | 5,822 |
Total future minimum lease payments | 8,978 |
Amounts representing interest | (1,392) |
Present Value of Net Future Minimum Lease Payments | $ 7,586 |
Commitments and Contingencies_3
Commitments and Contingencies and Derivatives (Schedule of contract amounts represent off-balance sheet credit risk) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 100,902 | $ 98,127 |
Future loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 12,236 | 14,356 |
Construction | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 2,693 | 3,493 |
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 | 10,834 | 10,686 |
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 | 72,089 | 63,911 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 3,050 | $ 5,681 |
Commitments and Contingencies_4
Commitments and Contingencies and Derivatives (Schedule of information regarding derivatives) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)contract | Dec. 31, 2020USD ($)contract | Sep. 30, 2020USD ($) | |
Derivative [Line Items] | |||
Accrued interest receivable | $ 3,743 | $ 3,819 | |
Interest rate swap | |||
Derivative [Line Items] | |||
Notional amount | 9,018 | 1,875 | |
Fair value | $ 143 | $ 41 | |
Weighted average pay rates | 3.51% | 3.10% | |
Weighted average receive rates | 2.29% | 2.22% | |
Weighted average maturity (in years) | 9 years 7 months 9 days | 9 years 11 months 1 day | |
Number of Contracts | contract | 5 | 1 | |
Interest rate swap | Other assets | |||
Derivative [Line Items] | |||
Accrued interest receivable | $ 9 | ||
Interest rate swap | Other liabilities | |||
Derivative [Line Items] | |||
Accrued interest payable | $ 0 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of actual capital amounts and ratios) (Details) - Rhinebeck Bank $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 128,554 | $ 121,604 |
Total capital (to risk-weighted assets) Actual Ratio | 14.12 | 13.97 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 72,810 | $ 69,614 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 8 | 8 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 91,012 | $ 87,018 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10 | 10 |
Tier 1 capital (to risk-weighted assets) Actual Amount | $ 119,520 | $ 110,717 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 13.13 | 12.72 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 54,607 | $ 52,211 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 6 | 6 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 72,810 | $ 69,614 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8 | 8 |
Common equity tier one capital (to risk weighted assets) Actual Amount | $ 119,520 | $ 110,717 |
Common equity tier one capital (to risk weighted assets) Actual Ratio | 13.13 | 12.72 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 40,955 | $ 39,158 |
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 | $ 59,158 | $ 56,562 |
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 | $ 119,520 | $ 110,717 |
Tier 1 capital (to average assets) Actual Ratio | 9.58 | 9.95 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 49,922 | $ 44,529 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Ratio | 4 | 4 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 62,403 | $ 55,662 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5 | 5 |
Fair Value (Schedule of assets
Fair Value (Schedule of assets carried at fair value on a recurring basis) (Details) - Recurring basis - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 240,532 | $ 102,974 |
Total liabilities | 143 | 41 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 40,189 | |
U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 156,897 | 89,270 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 26,878 | 7,161 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 7,010 | 1,476 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 8,775 | 4,446 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 640 | 580 |
Unrealized gains (losses) on available for sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 240,389 | 102,933 |
Loan level interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 143 | 41 |
Total liabilities | 143 | 41 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 40,189 | |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 40,189 | |
Level 1 | Unrealized gains (losses) on available for sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 40,189 | |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 200,198 | 102,814 |
Total liabilities | 143 | 41 |
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 assets | 156,897 | 89,270 |
Significant Observable Inputs (Level 2) | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 26,878 | 7,161 |
Significant Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6,865 | 1,316 |
Significant Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 8,775 | 4,446 |
Significant Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 640 | 580 |
Significant Observable Inputs (Level 2) | Unrealized gains (losses) on available for sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 200,055 | 102,773 |
Significant Observable Inputs (Level 2) | Loan level interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 143 | 41 |
Total liabilities | 143 | 41 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 145 | 160 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 145 | 160 |
Significant Unobservable Inputs (Level 3) | Unrealized gains (losses) on available for sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 145 | $ 160 |
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) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investments | $ 280 | $ 662 |
Related Allowance | 68 | 153 |
Nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 301 | 648 |
Nonrecurring basis | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 212 | 509 |
Impaired loans, recorded investments | 280 | 662 |
Related Allowance | 68 | 153 |
Nonrecurring basis | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 89 | 139 |
Nonrecurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | Level 1 | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | 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 |
Nonrecurring basis | 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 |
Nonrecurring basis | Significant Observable Inputs (Level 2) | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | 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 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 301 | 648 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 212 | 509 |
Nonrecurring basis | 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 | 212 | 509 |
Nonrecurring basis | 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 | $ 89 | $ 139 |
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 301 | $ 648 |
Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | 89 | 139 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 301 | $ 648 |
Impaired Loans, Valuation Technique [Extensible List] | Appraisal of collateral | Appraisal of collateral |
Other Real Estate Owned, Valuation Technique [Extensible List] | Appraisal of collateral | Appraisal of collateral |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 212 | $ 509 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 89 | $ 139 |
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 | 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 | Appraisal adjustments | Maximum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0.20 | 0.20 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | 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 |
Fair Value (Schedule of carryin
Fair Value (Schedule of carrying value and fair values of the financial instruments) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Level 1 | Carrying Value | ||
Financial Assets: | ||
Cash and due from banks (Level 1) | $ 114,587 | $ 93,485 |
Available for sale securities (Level 1, 2 and 3) | 40,189 | |
Level 1 | Fair Value | ||
Financial Assets: | ||
Cash and due from banks (Level 1) | 114,587 | 93,485 |
Available for sale securities (Level 1, 2 and 3) | 40,189 | |
Significant Observable Inputs (Level 2) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities (Level 1, 2 and 3) | 200,055 | 102,773 |
Loan level interest rate swaps (Level 2) | 143 | 41 |
FHLB stock (Level 2) | 1,417 | 2,787 |
Financial Liabilities: | ||
Deposits (Level 2) | 1,087,387 | 929,364 |
Mortgagors escrow accounts (Level 2) | 4,264 | 8,494 |
FHLB advances (Level 2) | 20,145 | 50,674 |
Subordinated debt (Level 2) | 5,155 | 5,155 |
Loan level interest rate swaps (Level 2) | 143 | 41 |
Significant Observable Inputs (Level 2) | Fair Value | ||
Financial Assets: | ||
Available for sale securities (Level 1, 2 and 3) | 200,055 | 102,773 |
Loan level interest rate swaps (Level 2) | 143 | 41 |
FHLB stock (Level 2) | 1,417 | 2,787 |
Financial Liabilities: | ||
Deposits (Level 2) | 1,077,152 | 941,460 |
Mortgagors escrow accounts (Level 2) | 4,269 | 8,501 |
FHLB advances (Level 2) | 20,349 | 51,468 |
Subordinated debt (Level 2) | 5,155 | 5,155 |
Loan level interest rate swaps (Level 2) | 143 | 41 |
Significant Unobservable Inputs (Level 3) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities (Level 1, 2 and 3) | 145 | 160 |
Loans, net (Level 3) | 833,841 | 873,813 |
Mortgage servicing rights (Level 3) | 2,639 | 2,390 |
Significant Unobservable Inputs (Level 3) | Fair Value | ||
Financial Assets: | ||
Available for sale securities (Level 1, 2 and 3) | 145 | 160 |
Loans, net (Level 3) | 830,263 | 876,699 |
Mortgage servicing rights (Level 3) | $ 4,486 | $ 3,569 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 121,862 | $ 113,680 | $ 116,499 | $ 109,882 |
Balance | $ 124,204 | $ 115,190 | $ 124,204 | $ 115,190 |
Income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ (4,731) | $ (2,821) | $ (3,791) | $ (4,104) |
Other comprehensive (loss) gain before reclassifications | (592) | 206 | (1,674) | 1,353 |
Amounts reclassified from accumulated other comprehensive loss | 71 | 56 | 213 | 192 |
Period change | (521) | 262 | (1,461) | 1,545 |
Balance | (5,252) | (2,559) | (5,252) | (2,559) |
Defined Benefit Pension Plan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (4,605) | (4,663) | (4,784) | (3,909) |
Other comprehensive (loss) gain before reclassifications | (120) | 637 | (83) | (230) |
Amounts reclassified from accumulated other comprehensive loss | 71 | 56 | 213 | 169 |
Period change | (49) | 693 | 130 | (61) |
Balance | (4,654) | (3,970) | (4,654) | (3,970) |
Unrealized Losses on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (126) | 1,842 | 993 | (195) |
Other comprehensive (loss) gain before reclassifications | (472) | (431) | (1,591) | 1,583 |
Amounts reclassified from accumulated other comprehensive loss | 23 | |||
Period change | (472) | (431) | (1,591) | 1,606 |
Balance | $ (598) | $ 1,411 | $ (598) | $ 1,411 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net income applicable to common stock | $ 2,685 | $ 2,565 | $ 3,321 | $ 1,150 | $ 1,348 | $ 1,075 | $ 8,571 | $ 3,573 |
Average number of common shares outstanding | 11,153,186 | 11,133,290 | 11,139,944 | 11,133,290 | ||||
Less: Average unearned ESOP shares | 379,148 | 400,969 | 384,602 | 406,423 | ||||
Average number of common shares outstanding used to calculate basic earnings per common share | 10,774,038 | 10,732,321 | 10,755,342 | 10,726,867 | ||||
Additional common stock equivalents used to calculate diluted earnings per share | 0 | 0 | ||||||
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share | 10,946,935 | 10,732,321 | 10,914,429 | 10,726,867 | ||||
Earnings per Common share: | ||||||||
Basic (in dollars per share) | $ 0.25 | $ 0.10 | $ 0.80 | $ 0.33 | ||||
Diluted (in dollars per share) | $ 0.25 | $ 0.10 | $ 0.79 | $ 0.33 | ||||
Non vested Stock | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Additional common stock equivalents used to calculate diluted earnings per share | 61,444 | 64,311 | ||||||
Stock options | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Additional common stock equivalents used to calculate diluted earnings per share | 111,453 | 94,776 |