Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 01, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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, par value $0.01 per share | ||
Trading Symbol | RBKB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 11,296,103 | ||
Entity Public Float | $ 44,912,465 | ||
Auditor Name | Wolf & Company, P.C. | ||
Auditor Firm ID | 392 | ||
Auditor Location | Boston, Massachusetts | ||
Entity Central Index Key | 0001751783 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 72,091 | $ 93,485 |
Available for sale securities (at fair value) | 280,283 | 102,933 |
Loans receivable (net of allowance for loan losses of $7,559 and $11,633, respectively) | 854,967 | 873,813 |
Federal Home Loan Bank stock | 1,322 | 2,787 |
Accrued interest receivable | 3,366 | 3,819 |
Cash surrender value of life insurance | 29,131 | 18,877 |
Deferred tax assets (net of valuation allowance of $454 and $1,760, respectively) | 3,352 | 3,703 |
Premises and equipment, net | 19,183 | 18,839 |
Other real estate owned | 139 | |
Goodwill | 2,235 | 1,410 |
Intangible assets, net | 433 | 199 |
Other assets | 14,803 | 8,825 |
Total assets | 1,281,166 | 1,128,829 |
Deposits | ||
Non-interest bearing | 314,814 | 244,344 |
Interest bearing | 787,185 | 685,020 |
Total deposits | 1,101,999 | 929,364 |
Mortgagors' escrow accounts | 9,130 | 8,494 |
Advances from the Federal Home Loan Bank | 18,041 | 50,674 |
Subordinated debt | 5,155 | 5,155 |
Accrued expenses and other liabilities | 20,872 | 18,643 |
Total liabilities | 1,155,197 | 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 11,296,103 and 11,303,059 at December 31, 2021 and 2020, respectively) | 113 | 113 |
Additional paid-in capital | 46,573 | 46,036 |
Unearned common stock held by the employee stock ownership plan | (3,709) | (3,928) |
Retained earnings | 89,627 | 78,069 |
Accumulated other comprehensive loss: | ||
Net unrealized (loss) gain on available for sale securities, net of taxes | (2,734) | 993 |
Defined benefit pension plan, net of taxes | (3,901) | (4,784) |
Total accumulated other comprehensive loss | (6,635) | (3,791) |
Total stockholders' equity | 125,969 | 116,499 |
Total liabilities and stockholders' equity | $ 1,281,166 | $ 1,128,829 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses on loans receivable | $ 7,559 | $ 11,633 |
Deferred tax valuation allowance | $ 454 | $ 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 | 11,296,103 | 11,303,059 |
Common stock, shares outstanding | 11,296,103 | 11,303,059 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 41,363 | $ 42,215 |
Interest and dividends on securities | 2,232 | 2,133 |
Other income | 105 | 47 |
Total interest and dividend income | 43,700 | 44,395 |
Interest Expense | ||
Interest expense on deposits | 3,601 | 6,671 |
Interest expense on borrowings | 686 | 1,348 |
Total interest expense | 4,287 | 8,019 |
Net interest income | 39,413 | 36,376 |
(Credit to) provision for loan losses | (3,667) | 7,138 |
Net interest income after (credit to) provision for loan losses | 43,080 | 29,238 |
Non-interest Income | ||
Service charges on deposit accounts | 2,584 | 2,276 |
Net realized loss on sales and calls of securities | (4) | (29) |
Net gain on sales of loans | 2,582 | 3,762 |
Increase in cash surrender value of life insurance | 571 | 380 |
Net gain from sale of other real estate owned | 9 | 498 |
Gain on disposal of premises and equipment | 17 | 13 |
Gain on life insurance | 195 | |
Investment advisory income | 1,130 | 1,288 |
Other | 339 | 115 |
Total non-interest income | 7,423 | 8,303 |
Non-interest Expense | ||
Salaries and employee benefits | 20,110 | 16,797 |
Occupancy | 4,124 | 3,545 |
Data processing | 1,744 | 1,399 |
Professional fees | 1,842 | 1,648 |
Marketing | 708 | 506 |
FDIC deposit insurance and other insurance | 769 | 797 |
Other real estate owned expense | 7 | 154 |
Amortization of intangible assets | 96 | 42 |
Other | 6,112 | 5,177 |
Total non-interest expense | 35,512 | 30,065 |
Income before income taxes | 14,991 | 7,476 |
Provision for income taxes | 3,433 | 1,559 |
Net income | $ 11,558 | $ 5,917 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.07 | $ 0.55 |
Diluted (in dollars per share) | $ 1.06 | $ 0.55 |
Weighted average shares outstanding, basic | 10,769,191 | 10,729,596 |
Weighted average shares outstanding, diluted | 10,954,366 | 10,739,841 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 11,558 | $ 5,917 |
Other Comprehensive (Loss) Income: | ||
Unrealized holding (losses) gains arising during the period | (4,722) | 1,476 |
Reclassification adjustment for losses included in net realized loss on sales and calls of securities on the consolidated statements of income | 4 | 29 |
Net unrealized (losses) gains on available for sale securities | (4,718) | 1,505 |
Tax effect | 991 | (317) |
Unrealized (losses) gains on available for sale securities, net of tax | (3,727) | 1,188 |
Defined benefit pension plan: | ||
Actuarial gains (losses) arising during the period | 759 | (1,393) |
Reclassification adjustment for amortization of net actuarial losses | 358 | 285 |
Total | 1,117 | (1,108) |
Tax effect | (234) | 233 |
Defined benefit pension plan gains (losses), net of tax | 883 | (875) |
Other comprehensive (loss) income | (2,844) | 313 |
Total Comprehensive Income | $ 8,714 | $ 6,230 |
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 | 5,917 | 5,917 | ||||
Other comprehensive income (loss) | 313 | 313 | ||||
ESOP shares committed to be allocated | (48) | 218 | 170 | |||
Share-based compensation expense | 217 | 217 | ||||
Restricted stock awards granted | 2 | (2) | ||||
Balance at Dec. 31, 2020 | 113 | 46,036 | (3,928) | 78,069 | (3,791) | 116,499 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,558 | 11,558 | ||||
Other comprehensive income (loss) | (2,844) | (2,844) | ||||
ESOP shares committed to be allocated | 8 | 219 | 227 | |||
Share-based compensation expense | 618 | 618 | ||||
Exercise of options | 36 | 36 | ||||
Share redemption for tax withholding on restricted stock vesting | (125) | (125) | ||||
Balance at Dec. 31, 2021 | $ 113 | $ 46,573 | $ (3,709) | $ 89,627 | $ (6,635) | $ 125,969 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 11,558 | $ 5,917 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and accretion of premiums and discounts on investments, net | 329 | 563 |
Net realized loss on sales and calls of securities | 4 | 29 |
Net realized gain on sale of other real estate owned | (9) | (498) |
(Credit to) provision for loan losses | (3,667) | 7,138 |
Loans originated for sale | (74,106) | (94,995) |
Proceeds from sale of loans | 75,456 | 98,723 |
Net gain on sale of loans | (2,582) | (3,762) |
Amortization of intangible assets | 96 | 42 |
Depreciation and amortization | 1,560 | 1,379 |
Gain from disposal of premises and equipment | (17) | (13) |
Deferred income tax expense (benefit) | 1,107 | (1,531) |
Increase in cash surrender value of insurance | (571) | (380) |
Decrease (increase) in accrued interest receivable | 453 | (916) |
Expense of earned ESOP shares | 227 | 170 |
Share-based compensation expense | 618 | 217 |
Increase in other assets | (5,968) | (3,616) |
Increase in accrued expenses and other liabilities | 3,164 | 6,378 |
Net cash provided by operating activities | 7,652 | 14,845 |
Cash Flows from Investing Activities | ||
Proceeds from sales and calls of securities | 4,000 | 6,996 |
Proceeds from maturities and principal repayments of securities | 58,232 | 45,031 |
Purchases of securities | (244,632) | (39,215) |
Net redemptions of FHLB Stock | 1,465 | 648 |
Net decrease (increase) in loans | 23,745 | (89,304) |
Purchases of bank owned life insurance | (10,024) | (40) |
Purchases of bank premises and equipment | (1,774) | (1,867) |
Net proceeds from life insurance | 341 | |
Net cash received from acquisition (Note 2) | 32,767 | |
Net increase of other real estate owned | (225) | |
Proceeds from sale of other real estate owned | 148 | 3,859 |
Net cash used in investing activities | (135,732) | (74,117) |
Cash Flows from Financing Activities | ||
Net increase in demand deposits, NOW, money market and savings accounts | 182,516 | 174,027 |
Net decrease in time deposits | (43,744) | (18,006) |
Increase in mortgagors' escrow accounts | 636 | 388 |
Net decrease in short-term debt | (15,865) | (4,302) |
Net decrease in long-term debt | (16,768) | (11,328) |
Stock repurchase for tax withholding on restricted stock vesting | (125) | |
Proceeds from exercise of stock options | 36 | |
Net cash provided by financing activities | 106,686 | 140,779 |
Net (decrease) increase in cash and due from banks | (21,394) | 81,507 |
Cash and Due from Banks | ||
Beginning balance | 93,485 | 11,978 |
Ending balance | 72,091 | 93,485 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for interest | 4,608 | 8,310 |
Cash (received) paid for income taxes | (40) | 3,402 |
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 | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Business and Significant Accounting Policies | |
Nature of Business and Significant Accounting Policies | 1. Nature of Business and Significant Accounting Policies The consolidated financial statements include accounts of Rhinebeck Bancorp, Inc. (the “Company”), a stock holding company, and its wholly-owned subsidiary, Rhinebeck Bank (the “Bank”), a New York chartered stock savings bank and its wholly-owned subsidiaries. The primary purpose of the Company is to act as a holding company for the Bank. The Bank provides a full range of banking and financial services to consumer and commercial customers through its 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”). A description of the Company’s significant accounting policies are presented below. Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, fair value measurements, the evaluation of goodwill for impairment and the valuation of deferred tax assets. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued. 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. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, and Albany. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ abilities to repay their loans is dependent on the economic conditions in the market areas in which the Company operates. Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Investment in Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase discounts are recognized in interest income using the interest method over the contractual terms of the security. Purchase premiums are recognized in interest income using the interest method to the instrument’s earliest call date. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities for other-than temporary impairment on a regular basis. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the credit standing of the issuer. When the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its cost basis, the credit loss determined due to a permanent impairment will be recognized in earnings. The credit loss component recognized is identified as the amount of future principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow estimates discounted at the applicable original yield of the security. Investment in FHLB Stock The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for loan losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized using the interest method over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer automobile and installment loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on non-accrual status or charged off, is reversed against interest income. The interest on these loans is not recognized until the loan returns to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for loan losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines all or part of the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance calculation methodology involves segregation of the total loan portfolio. The Company’s loans receivable portfolio is comprised of the following segments: commercial real estate, residential real estate, commercial and industrial and consumer. The segments of the Company’s loans receivable portfolio are further disaggregated into classes based on identified risks within those segments. This allows management to better monitor risk and performance. Commercial real estate loans are separated into the three classes: construction, non-residential and multi-family. Non-residential and multi-family loans include long-term loans financing commercial properties and include both owner and non-owner occupied properties. The underlying cash flows generated by the properties may be negatively impacted by increased vacancy rates due to a downturn in the economy. Construction loans, which include land loans, are comprised mostly of non-owner occupied projects, whereby the property is generally under development and tends to have more risk than the owner occupied loans. The Company grants loans for the construction of residential homes, residential developments and land development projects. Repayment of these loans is mostly dependent upon either the ongoing cash flows of the borrowing entity or the resale or lease of the subject property. Residential real estate loans are secured by the borrower’s residential real estate generally in a first lien position. Residential mortgages have varying loan interest rates depending on the financial condition of the borrower, the loan to value ratio and the term of the loan. The overall health of the economy, reflected in unemployment rates and housing prices, will have an effect on the credit quality of this segment. The commercial and industrial loan segment consists of loans made for purposes of financing the activities of commercial customers. The assets financed through commercial and industrial loans are used within the business for its ongoing operations. Repayment of commercial and industrial loans predominately comes from the cash flows of the business or the ongoing operations of assets. A weakened economy and resultant decreased consumer spending could have a negative impact on this line of business. Consumer loans are classified into the following three classes: indirect automobile loans, home equity loans and other consumer loans. Indirect automobile loans are secured by the borrowers’ automobiles and originated through the Company’s relationships with the automobile dealers in the Company’s service area. Home equity loans are secured by the borrowers’ residential real estate in a first or second lien position. Other direct consumer loans may be unsecured. The overall health of the economy, reflected in unemployment rates and housing prices, will have an impact on the credit quality of this segment. The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and, in most cases, extends credit of up to 80% of the market value of the collateral at the date of the credit extension, depending on the borrower’s creditworthiness and the type of collateral. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial and industrial and commercial real estate loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, automobiles, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower, past experience with the borrower, the nature of the collateral, competitive offerings and/or the term of the loan. The market value of collateral is monitored on an ongoing basis and additional collateral may be obtained when warranted. While collateral provides some assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrower’s ability to generate continuing sufficient cash flows. The Company’s policy for real estate collateral requires that, generally, the amount of the loan may not exceed 90% of the original appraised value of the property. Private mortgage insurance is usually required for that portion of the loan in excess of 80% of the appraised value of the property. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated at least quarterly or when credit deficiencies arise, such as when loan payments are delinquent. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such impaired loans, an allowance is established when the discounted cash flows (or observable market price or collateral value if the loan is collateral dependent) of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans, segregated generally by loan type and is based on historical loss experience with adjustments for qualitative factors which are made after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss data. These qualitative risk factors include: 1. Changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices. 2. Changes in international, national, regional, and local conditions. 3. Changes in the nature and volume of the portfolio and terms of loans. 4. Changes in the experience, depth, and ability of lending management. 5. Changes in the volume and severity of past due loans and other similar conditions. 6. Changes in the quality of the organization’s loan review system. 7. Changes in the value of underlying collateral for collateral dependent loans. 8. The existence and effect of any concentrations of credit and changes in the levels of such concentrations. 9. The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls are not necessarily classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable net market price, or the fair value of the collateral if the loan is collateral dependent. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the size of the loan, age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. If liquidation is expected, appraised values are discounted for expected sales costs to arrive at the estimated recognizable value of the collateral, which is considered to be the estimated fair value. The recorded investment in consumer mortgages and loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $935 and $636 on December 31, 2021 and 2020, respectively. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan which is then identified as a TDR. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses. The Company identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, negative trends, or specific conditions may result in a payment default in the near future. Regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. Derivative Financial Instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated statements of financial condition and measured at fair value. Loan Level Interest Rate Swaps Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in noninterest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. Mortgage service rights are recorded and amortized over the life of the loan. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance and charged to noninterest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Revenue Recognition The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: ● Fees for services to customers include service charges on deposits which are included as liabilities in the consolidated statements of financial condition and consist of transaction-based fees: stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, wire fees, official check fees and overdraft services fees for various retail and business checking customers. These fees are charged as earned on the day of the transaction or within the month of the service. Service charges on deposits are withdrawn directly from the customer’s account balance. ATM and debit card fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Sales of checks to depositors earn fees as a contractual discount to the retail price of the sale from a third-party provider. These fees earned are remitted by the third-party to the Company quarterly. ● The Company earns interchange fee income from credit/debit cardholder transactions conducted through MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. ● The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed; at such time, the OREO asset is derecognized and the gain or loss on the sale is recorded. Rental income received from leased OREO property is recognized during the month it is earned. ● Retail brokerage and advisory fee income is accrued monthly to properly record the revenues in the month they are earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Investments into mutual funds and annuities generate fees that are recorded as revenue at the time of the initial sale. In subsequent years the mutual funds and variable annuities generate recurring fees (referred to as 12B-1 fees) that are paid in advance on the anniversary of the original transaction. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e., trade date). Life insurance products are sold on a commission basis that generates a fee that is recorded as revenue within the month of the approved transaction. Other income includes rental income, mortgage origination and service fees and late fees on serviced mortgages. All items are recorded as revenue within the month that the service is provided. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. Other real estate owned included $139 of commercial property on December 31, 2020. All of our other real estate owned had been sold by December 31, 2021. Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Rent expense is charged to operations over the expected lease term using the straight-line method. Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and directors. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of noninterest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts and core deposit intangibles. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships. These assets are amortized on a straight-line basis over the related estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. Employee Benefit Plans The Bank maintains the Rhinebeck Bank 401(k) Plan (the “401(k) Plan”) for substantially all of its employees, a defined benefit pension plan (frozen as of June 30, 2012), as well as Supplemental Executive Retirement Plans (the “SERPs”), all of which are tax qualified under the Internal Revenue Code. Employee 401(k) plan expense is the amount of matching contributions. Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. SERP expense is the net of interest cost and service cost, which allocates the benefits over years of service. We account for benefits under the defined plan in accordance with Accounting Standards Codification (“ASC”) Topic 715 “Pension and Other Postretirement Benefits.” The guidance requires an employer to: (1) recognize in its statement of financial position the over funded or underfunded status of a defined benefit postretirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (2) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (3) recognize as a component of other comprehensive income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period. The Bank created an employee stock ownership plan (the “ESOP”) for the benefit of employees who meet certain eligibility requirements. Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated statements of financial condition. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The Company maintains an equity incentive plan to provide for issuance or granting of shares of common stock for stock options or restricted stock. The Company has recorded stock-based employee compensation cost using the fair value method as allowed under generally accepted accounting principles. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method as allowed under generally accepted accounting principles. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract. In |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 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 December 31, 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 year ended December 31, 2021. Acquisition expenses, including professional fees, are included in the other non-interest expense line item in the condensed consolidated statement of income. |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Dec. 31, 2021 | |
Available for Sale Securities | |
Available for Sale Securities | 3. Available for Sale Securities The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: December 31, 2021 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 60,273 $ 2 $ (450) $ 59,825 U.S. government agency mortgage-backed securities–residential 179,493 344 (3,346) 176,491 U.S. government agency securities 24,800 53 (131) 24,722 Municipal securities (1) 6,858 33 (40) 6,851 Corporate bonds 11,700 117 (65) 11,752 Other 620 22 — 642 Total $ 283,744 $ 571 $ (4,032) $ 280,283 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 following tables present the fair value and unrealized losses of the Company’s available for sale securities with gross unrealized losses aggregated by the length of time the individual securities have been in a continuous unrealized loss position: December 31, 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 $ 49,007 $ (268) $ 5,797 $ (182) $ 54,804 $ (450) U.S. government agency mortgage-backed securities-residential 139,019 (3,035) 11,002 (311) 150,021 (3,346) U.S. government agency securities 14,625 (131) — — 14,625 (131) Municipal Securities 2,469 (40) — — 2,469 (40) Corporate Bonds 5,885 (65) — — 5,885 (65) Total $ 211,005 $ (3,539) $ 16,799 $ (493) $ 227,804 $ (4,032) 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 December 31, 2021 and 2020, the Company had 160 and 36 individual available-for-sale securities with unrealized losses totaling $4,032 and $321, respectively, with an aggregate depreciation of 1.77% and 1.01%, respectively, from the Company’s amortized cost. Management believes that none of the unrealized losses on available for sale securities are other-than-temporary because substantially all of the unrealized losses in the Company’s investment portfolio relate to market interest rate changes on debt and mortgage-backed securities issued either directly by the government or from government sponsored enterprises. Because the Company does not intend to sell the securities and it is not likely that the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired either at December 31, 2021 or 2020. The amortized cost and fair value of available for sale debt securities at December 31, 2021 and 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: December 31, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 12,729 $ 12,726 $ 102 $ 102 After 1 but within 5 years 67,912 67,463 2,155 2,155 After 5 but within 10 years 22,595 22,567 9,946 10,162 After 10 years 395 394 655 664 Total Maturities 103,631 103,150 12,858 13,083 Mortgage-backed securities 179,493 176,491 88,197 89,270 Other 620 642 621 580 Total $ 283,744 $ 280,283 $ 101,676 $ 102,933 At December 31, 2021 and 2020, available for sale securities with a carrying value of $8,316 and $18,123, respectively, were pledged to secure Federal Home Loan Bank of New York borrowings. In addition, $1,054 and $1,059 of available for sale securities, respectively, were pledged to secure borrowings at the Federal Reserve Bank of New York (“FRBNY”). Proceeds from the sale of available for sale securities and calls aggregated $4,000 and $6,996 for the years ended December 31, 2021 and 2020, respectively. There were no gross gains during the periods ended December 31, 2021 and December 31, 2020. During the periods ended December 31, 2021 and 2020, there were gross losses of |
Loans and Allowance for loan lo
Loans and Allowance for loan losses | 12 Months Ended |
Dec. 31, 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: December 31, December 31, 2021 2020 Commercial real estate loans: Construction $ 10,095 $ 5,392 Non-residential 245,568 248,349 Multi-family 55,926 30,379 Residential real estate loans 35,646 39,239 Commercial and industrial loans (1) 104,323 154,016 Consumer loans: Indirect automobile 382,088 376,260 Home equity 11,857 14,165 Other consumer 7,955 8,816 Total gross loans 853,458 876,616 Net deferred loan costs 9,068 8,830 Allowance for loan losses (7,559) (11,633) Total net loans $ 854,967 $ 873,813 (1) Includes $29,464 and $75,366 in SBA PPP loans at December 31, 2021 and 2020. At December 31, 2021 and 2020, the unpaid principal balances of loans held for sale, included in the residential real estate category above, were $3,950 and $2,718, respectively. The following tables present the classes of the loan portfolio summarized by the pass category and the criticized categories of special mention and substandard within the internal risk system: December 31, 2021 Pass Special Mention Substandard Total Commercial real estate: Construction $ 10,095 $ — $ — $ 10,095 Non-residential 232,253 10,341 2,974 245,568 Multifamily 55,926 — — 55,926 Residential real estate 33,416 — 2,230 35,646 Commercial and industrial 98,171 5,377 775 104,323 Consumer: Indirect automobile 381,354 — 734 382,088 Home equity 11,587 — 270 11,857 Other consumer 7,908 — 47 7,955 Total $ 830,710 $ 15,718 $ 7,030 $ 853,458 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 Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying statements of financial condition. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At December 31, 2021 and 2020, the Company was servicing loans for participants aggregating $3,962 and $4,291, respectively. The Company services certain loans that it has sold without recourse to third parties. The aggregate balances of loans serviced for others were $314,953 and $300,700 as of December 31, 2021 and 2020, respectively. The balance of capitalized servicing rights, included in other assets at December 31, 2021 and 2020, were $2,633 and $2,390, respectively. Fair value exceeds carrying value. No impairment charges related to servicing rights were recognized during the years ended December 31, 2021 or 2020. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: December 31, 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 $ 10,095 $ — $ — $ — $ 10,095 $ — Non-residential 242,205 115 527 2,721 245,568 2,721 Multifamily 55,926 — — — 55,926 — Residential real estate 34,363 57 242 984 35,646 2,230 Commercial and industrial 103,517 246 — 560 104,323 687 Consumer: Indirect automobile 374,729 5,977 715 667 382,088 734 Home equity 11,429 149 106 173 11,857 270 Other consumer 7,702 153 53 47 7,955 47 Total $ 839,966 $ 6,697 $ 1,643 $ 5,152 $ 853,458 $ 6,689 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 There were no loans greater than 90 days past due and still accruing as of December 31, 2021 or 2020. The following tables summarize information in regard to impaired loans by loan portfolio class: December 31, 2021 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 2,721 $ 3,797 $ — $ 2,290 Residential real estate 2,230 2,786 — 2,459 Commercial and industrial 687 921 — 674 Consumer: Indirect automobile 345 408 — 219 Home equity 270 276 — 338 Other consumer 47 48 — 50 Total $ 6,300 $ 8,236 $ — $ 6,030 With an allowance recorded: Commercial and industrial $ — $ — $ — $ 148 Consumer: Indirect automobile 389 395 68 286 Total $ 389 $ 395 $ 68 $ 434 Total: Commercial real estate: Non-residential $ 2,721 $ 3,797 $ — $ 2,290 Residential real estate 2,230 2,786 — 2,459 Commercial and industrial 687 921 — 822 Consumer: Indirect automobile 734 803 68 505 Home equity 270 276 — 338 Other consumer 47 48 — 50 Total $ 6,689 $ 8,631 $ 68 $ 6,464 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 The Company does not generally recognize interest income on a loan in an impaired status. At December 31, 2021 and 2020, the same three loans totaling $1,440 and $1,571, respectively, which were included in impaired loans, were identified as TDRs. The initial modifications of these loans took place prior to 2020 and included two residential mortgages and one home equity loan that included both rate and term modifications. In 2020 and 2021, there were no new TDRs. Interest income on impaired loans was immaterial during each of the periods presented. At December 31, 2021 and 2020, all loans were performing in accordance with their restructured terms. At December 31, 2021 and 2020, the Company had no commitments to advance additional funds to borrowers under TDR loans. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $935 and $636 at December 31, 2021 and 2020, respectively. 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 Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2021 Allowance for loan losses: Beginning balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 (Credit to) provision for loan losses (2,037) (69) (414) (1,035) (112) (3,667) Loans charged-off — — (12) (2,048) (24) (2,084) Recoveries — 6 101 1,525 45 1,677 Ending balance $ 3,317 $ 54 $ 725 $ 3,416 $ 47 $ 7,559 Ending balance: Loans deemed impaired $ — $ — $ — $ 68 $ — $ 68 Loans not deemed impaired $ 3,317 $ 54 $ 725 $ 3,348 $ 47 $ 7,491 Loan receivables: Ending balance $ 311,589 $ 35,646 $ 104,323 $ 382,088 $ 19,812 $ 853,458 Ending balance: Loans deemed impaired $ 2,721 $ 2,230 $ 687 $ 734 $ 317 $ 6,689 Loans not deemed impaired $ 308,868 $ 33,416 $ 103,636 $ 381,354 $ 19,495 $ 846,769 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2020 Allowance for loan losses: Beginning balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Provision for loan losses 3,341 18 585 3,166 28 7,138 Loans charged-off — — (153) (2,307) (47) (2,507) Recoveries 4 — 15 998 31 1,048 Ending balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 Ending balance: Loans deemed impaired $ — $ — $ 11 $ 135 $ 7 $ 153 Loans not deemed impaired $ 5,354 $ 117 $ 1,039 $ 4,839 $ 131 $ 11,480 Loan receivables: Ending balance $ 284,120 $ 39,239 $ 154,016 $ 376,260 $ 22,981 $ 876,616 Ending balance: Loans deemed impaired $ 1,944 $ 2,641 $ 366 $ 990 $ 394 $ 6,335 Loans not deemed impaired $ 282,176 $ 36,598 $ 153,650 $ 375,270 $ 22,587 $ 870,281 In the normal course of business, the Company grants loans to officers, directors and other related parties. Balances and activity of such loans during the years presented were not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 5. The changes in the carrying value of goodwill are as follows: Year Ended 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 years ended December 31, 2021 or 2020. The changes in the carrying value of the customer list and core deposit intangibles are as follows: Years Ended December 31, 2021 2020 Beginning balance $ 199 $ 241 Acquisition activity 330 — Amortization (96) (42) Ending balance $ 433 $ 199 Accumulated amortization and impairment $ 844 $ 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. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. The values assigned to customer lists and 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 $96 and $42 of amortization expense related to its intangible assets for the years ended December 31, 2021 and 2020, respectively. At December 31, 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 December, 2021, the future amortization expense for amortizable intangible assets for the respective years is as follows: 2022 $ 99 2023 88 2024 79 2025 60 2026 29 Thereafter 78 Total $ 433 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | 6. Premises and Equipment Premises and equipment are summarized as follows: December 31, December 31, 2021 2020 Land $ 3,732 $ 3,732 Buildings and improvements 27,151 26,431 Furniture, fixtures and equipment 14,107 13,042 Construction in process 161 93 Total 45,151 43,298 Less accumulated depreciation (25,968) (24,459) Net $ 19,183 $ 18,839 Depreciation expense totaled $1,560 and $1,379 for the years ended December 31, 2021 and 2020, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | 7. Deposits Deposits balances are summarized as follows: December 31, December 31, 2021 2020 Non-interest bearing demand deposits $ 314,814 $ 244,344 Interest bearing accounts: NOW 158,615 141,580 Savings 182,564 157,414 Money market 289,107 185,383 Time certificates of deposit 156,899 200,643 Total interest bearing accounts 787,185 685,020 Total deposits $ 1,101,999 $ 929,364 Included in time certificates of deposit at December 31, 2021 and 2020 were reciprocal deposits totaling $21,083 and $30,012, respectively, with original maturities of one Time certificates of deposit in denominations of $250 or greater were $23,704 and $34,565 as of December 31, 2021 and 2020, respectively. Contractual maturities of time certificates of deposit at December 31, 2021 are summarized below: December 31, 2021 Within 1 year $ 122,861 1 – 2 years 16,598 2 – 3 years 7,843 3 – 4 years 7,674 4 – 5 years 1,923 Total $ 156,899 |
Long-Term Debt and FHLB Stock
Long-Term Debt and FHLB Stock | 12 Months Ended |
Dec. 31, 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 Company is a member of the FHLB. At December 31, 2021 and 2020, the Company had access to a preapproved secured line of credit with the FHLB of $640,500 and $564,330, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At December 31, 2021 and 2020, the Company had pledged assets of $170,385 and $175,011, respectively. The Company had no outstanding overnight line of credit balances with the FHLB at either December 31, 2021 or 2020. These borrowings would mature the following business day. At December 31, 2021, the Company had structured borrowings in the amount of $18,041. The outstanding principal amounts and the related terms and rates at December 31, 2021 were as follows: Term Principal Maturity Rate Due in one year Long term 3 year amortizing $ 1,719 May 16, 2022 2.49 % $ 1,719 — 3 year bullet 10,000 May 16, 2022 2.44 % 10,000 — 3 year amortizing 6,322 February 28, 2023 1.32 % 5,049 1,273 Total $ 18,041 Weighted Average Rate 2.05 % $ 16,768 $ 1,273 The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Company evaluates for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either December 31, 2021 or 2020. Federal Reserve Bank Borrowings In April 2020, the Bank became a participant in the Federal Reserve’s Payroll Protection Program Lending Facility, which allowed it to present PPP loans as collateral for 100% principal credit at the Federal Reserve’s discount window. The term of these loans mirrored the actual maturity of the underlying collateral and had a fixed interest rate of 0.35%. In April 2020, the Bank borrowed $70,100, which was repaid in full on July 2, 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 duration of the Trust is 30 years. The subordinated debt securities of $5,155 are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has entered into a guarantee, which together with its obligations under the subordinated debt securities and the declaration of trust governing the Trust, including its obligations to pay costs, expenses, debts and liabilities, other than trust securities, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at 3-month LIBOR plus 2.00% (2.16% at December 31, 2021 and 2.21% at December 31, 2020) mature on May 23, 2035. Other Borrowings The Company has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at December 31, 2021 and 2020. The Company also has an unsecured, uncommitted $5,000 line of credit with Atlantic Community Bankers Bank. There were no advances outstanding under this line of credit at December 31, 2021 and 2020. This line of credit will be terminated on March 4, 2022. On October 1, 2021, the Company entered into an agreement with Pacific Community Bankers Bank, for a $50,000 line of credit. There was no advance outstanding under this line of credit at December 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 9. Income Taxes The components of the provision for income taxes are as follows: Years Ended December 31, 2021 2020 Current expense: Federal $ 2,042 $ 3,078 State 284 12 Total current expense 2,326 3,090 Deferred expense (benefit): Federal 1,107 (1,531) State 1,306 (558) Change in valuation allowance (1,306) 558 Total deferred expense (benefit) 1,107 (1,531) Total provision for income taxes $ 3,433 $ 1,559 The following is a reconciliation between the expected federal statutory income tax rate of 21% (2021 and 2020) and the Company’s actual income tax expense and rate: Years ended December 31, 2021 2020 Provision at statutory rate $ 3,148 21.00 % $ 1,570 21.00 % Tax exempt income (125) (0.83) % (79) (1.06) % State income taxes, net of federal income tax benefit 192 1.28 % 12 0.16 % Other, net 218 1.45 % 56 0.75 % Effective income tax and rate $ 3,433 22.90 % $ 1,559 20.85 % Provision for income taxes directly reflects the expected tax associated with the pre-tax income generated for the given year and certain regulatory requirements. The effective tax rate was 22.90% and 20.85% for the years ended December 31, 2021 and 2020, respectively. The statutory tax rate is impacted by the benefits derived from tax-exempt bond income and income received on the bank owned life insurance to arrive at the effective tax rate. The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below: December 31, 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,041 $ 3,141 Deferred expenses 39 47 Deferred compensation 1,538 1,271 Unrecognized pension liability 1,037 1,272 Postretirement liability 920 954 Deferred loss on OREO — 83 Deferred loan fees — 158 Unrealized loss on securities 727 — State tax NOLs — 990 Other 431 324 Gross deferred tax assets 6,733 8,240 Deferred tax liabilities: Prepaid expenses (262) (217) Prepaid pension (1,275) (1,276) Deferred loan fees (154) — Depreciation and amortization (525) (375) Unrealized gain on securities — (264) Mortgage servicing rights (711) (645) Gross deferred tax liabilities (2,927) (2,777) Net deferred tax asset 3,806 5,463 Deferred tax valuation allowance (454) (1,760) Deferred tax assets, net of allowance $ 3,352 $ 3,703 Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the relative federal or state tax law to the taxable income determined. The Company determines deferred income taxes using the liability (or balance sheet method). Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases at the currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. Deferred income tax expense or benefit results from changes in deferred tax assets (“DTAs”) and liabilities between periods. DTAs are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. New York State (“NYS”) tax law provides for a permanent deduction of income from “qualified” loans for community banks. Accordingly, the Company has generally incurred NYS taxable losses and incurred minimal NYS income tax liability. As the Company has not established a history of strong NYS taxable income, the Company has established a full valuation allowance against the NYS deferred tax asset. Retained earnings at December 31, 2021 and 2020 include a contingency reserve for loan losses of $1,534, which represents the tax reserve balance existing at December 31, 1987 and is maintained in accordance with provisions of the Internal Revenue Code applicable to mutual savings banks. Amounts transferred to the reserve have been claimed as deductions from taxable income and, if the reserve is used for purposes other than to absorb losses on loans, a federal income tax liability could be incurred. It is not anticipated that the Company will incur a federal income tax liability relating to this reserve balance and accordingly, deferred income taxes of $414 at December 31, 2021 and $414 at December 31, 2020 have not been recognized. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2018 through 2021. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2018 are open. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Employee Benefits | 10. Employee Benefits Employee Stock Ownership Plan On January 1, 2019, the Bank established an ESOP to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified retirement plan for the benefit of Bank employees. On January 16, 2019, the Company granted a loan to the ESOP for the purchase of 436,425 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company to purchase the common stock is payable annually over 20 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (3.25% at January 1, 2021 and January 1, 2022). Loan payments are principally funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. The balance of the ESOP loan was $3,917 and $4,087 at December 31, 2021 and 2020, respectively. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released annually is 21,821 through 2039. Shares held by the ESOP include the following: Year ended Year ended December 31, December 31, 2021 2020 Allocated 43,642 21,821 Committed to be allocated 21,821 21,821 Unallocated 370,962 392,783 Paid out to participants (1,252) (68) Total shares 435,173 436,357 The fair value of unallocated shares was $3,954 and $3,358 at December 31, 2021 and 2020, respectively. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2021 and 2020 was $227 and $170, 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 granted to date vest annually over a three-year period from the date of the grant and the term of each option is ten years. As of December 31, 2021, there were 100,480 stock options and 49,110 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 that it will not pay dividends. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the date of grant. The Company has elected to recognize forfeitures as they occur. The Company followed SEC safe-harbor guidelines when determining the expected term of the options granted. The weighted average assumptions used and fair value for options granted under the 2020 EIP as of December 31, 2021 are as follows: December 31, 2021 Expected term (years) 6 Expected dividend yield 0% Weighted-average expected volatility 25.45% Weighted-average risk-free interest rate 0.29% Weighted-average fair value of options granted $1.67 A summary of options under the 2020 EIP as of December 31, 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 (3,334) 6.57 - Options outstanding at December 31, 2021 439,596 $ 6.62 8.63 Options exercisable at December 31, 2021 143,997 6.62 8.56 The aggregate intrinsic value of the options outstanding, which fluctuates based on changes in the fair market value of the Company’s stock, at December 31, 2021, was $1,778 . The aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of period and the weighted-average exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on December 31, 2021. The aggregate intrinsic value of the options exercised and exercisable at December 31, 2021 was $23 and $582 , respectively. As of December 31, 2021, there was $408 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 1.66 years. The following table summarizes the Company’s restricted stock activity for the year ended December 31, 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 (667) 6.57 Non-vested restricted stock at December 31, 2021 112,520 $ 6.57 As of December 31, 2021, there was $609 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 1.65 years. The aggregate fair value of the vested options and restricted stock awards as of December 31, 2021 was $249 and $608, respectively. For the years ended December 31, 2021 and 2020, share-based compensation expense under the plan was $618 and $217, respectively. Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering substantially all of its employees 21 years of age or older who have completed at least one year of service. On April 24, 2012, the Board of Directors of Rhinebeck Bank voted to freeze the Bank’s defined benefit plan as of June 30, 2012. The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated statements of financial condition: December 31, December 31, 2021 2020 Projected and accumulated benefit obligation $ (23,055) $ (23,964) Plan assets at fair value 22,839 22,634 Funded status included in accrued expenses and other liabilities $ (216) $ (1,330) The following table details the plan’s funded status: 2021 2020 Change in benefit projected obligation: Projected benefit obligation at beginning of year $ 23,964 $ 20,953 Service cost - - Interest cost 589 670 Actuarial (gain) loss (842) 2,941 Benefits paid (656) (600) Projected benefit obligation at end of year 23,055 23,964 Change in plan assets: Fair value of plan assets at beginning of year 22,634 20,628 Actual return on plan assets 861 2,606 Contributions - - Benefits paid (656) (600) Fair value of plan assets at end of year 22,839 22,634 Funded status $ (216) $ (1,330) In 2021, the net actuarial gain in the projected benefit obligation resulted primarily from a change in the discount rate. The weighted-average assumptions used by the Company to determine the pension benefit obligation consisted of the following: Years ended December 31, 2021 2020 Discount rate 2.80 % 2.50 % Rate of compensation increase N/A N/A Amounts recognized in accumulated other comprehensive loss consisted of the following: Years ended December 31, 2021 2020 Net actuarial loss $ 4,938 $ 6,055 The net periodic pension cost (benefit) and amounts recognized in other comprehensive income are as follows: Years ended December 31, 2021 2020 Interest cost $ 589 $ 670 Expected return on plan assets (944) (1,058) Amortization of unrecognized loss 359 285 Net periodic cost (benefit) $ 4 $ (103) Weighted-average assumptions used by the Company to determine the net periodic pension cost consisted of the following: Years ended December 31, 2021 2020 Discount rate 2.50 % 3.25 % Expected long-term return on plan assets 4.50 % 5.50 % Rate of compensation increase N/A N/A The expected long-term rate of return on plan assets has been determined by applying historical average investment returns from published indexes relating to the current allocation of assets in the plan. Plan assets are invested in pooled separate accounts consisting of underlying investments in eleven diversified investment funds. As of December 31, 2021, the investment funds included seven equity funds and three bond funds. As of December 31, 2020, the investment funds included The assets of the plan are invested under the supervision of the Company’s investment committee in accordance with the investment policy statement. The investment options of the plan are chosen in a manner consistent with generally accepted standards of fiduciary responsibility. The investment performance of the Company’s individual investment managers, with the assistance of the Company’s investment consultant, is monitored on a quarterly basis and is reviewed at least annually relative to the objectives and guidelines as stated in the Company’s investment policy statement. The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 15,689 $ — $ — $ 15,689 Equity 7,150 — — 7,150 Total assets at fair value $ 22,839 $ — $ — $ 22,839 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. Benefit payments are as follows: Year ended December 31, 2021 2020 Benefits paid $ 656 $ 600 As of December 31, 2021 the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Fiscal Year Ending Pension Benefits 2022 $ 820 2023 840 2024 910 2025 940 2026 960 2027 – 2031 5,560 The Company made no contributions to the plan in either 2021 or 2020. 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 $1,074 and $993 for the years ended December 31, 2021 and 2020, respectively. Bank Owned Life Insurance The Company has an investment in and is the beneficiary of life insurance policies on the lives of certain officers and directors. The purpose of these life insurance policies is to provide income through the appreciation in cash surrender value of the policies, which is expected to offset the cost of the deferred compensation plans. These policies had aggregate cash surrender values of $29,131 and $18,877 at December 31, 2021 and 2020, respectively. Net earnings on these policies aggregated $571 and $380 for the years ended December 31, 2021 and 2020, respectively, which are included in noninterest income in the consolidated statements of income. Deferred Compensation Arrangements Trustees’ Plan The Company’s 1991 Plan (the “Trustees’ Plan”) covers directors who elect to defer fees earned. Under the terms of the Trustees’ Plan, each participant may elect to defer all or part of their annual director’s fees. Upon resignation, retirement, or death, the participants’ total deferred compensation, including earnings thereon, will be paid out. At December 31, 2021 and 2020, $2,877 and $2,483, respectively, are included in accrued expenses and other liabilities, which represents cumulative amounts deferred and earnings thereon. Total expense related to the Trustees’ Plan years ended December 31, 2021 and 2020 were $143 and $178, respectively, which are included in noninterest expense in the consolidated statements of income. Executive Long-Term Incentive and Retention Plan The Company maintains an Executive Long-Term Incentive and Retention Plan (the “Executive Plan”). Participation in the Executive Plan is limited to officers of the Company designated as participants by the Board of Directors and who filed a properly completed and executed participation agreement in accordance with the terms of the Executive Plan. Under the Executive Plan, the Board of Directors may grant annual incentive awards equal to a percentage of a participant’s base salary at the rate in effect on the last day of the Plan year, as determined by the Board of Directors based on the attainment of criteria established annually by the Board of Directors. Incentive awards under the Executive Plan are credited to the participant’s incentive benefit account as of the last day of the Executive Plan year to which the award relates and earn interest at a rate determined annually by the Board of Directors. Participants vest in their benefit accounts in accordance with the vesting schedule approved by the Board of Directors, which ranges from one 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 $1,423 and $1,387, respectively, at December 31, 2021 and 2020. The Company recognized expenses of $36 and $57 for the years ended December 31, 2021 and 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 $1,986 and $2,148, respectively, at December 31, 2021 and 2020. The Company recognized expenses of |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 11. Leases As of December 31, 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. 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 2024 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 12.0 and 12.7 years as of December 31, 2021 and 2020, respectively. 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 2.51% and 2.61% in determining the lease liability as of December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, total operating lease costs were $731 and $588, respectively, and were included in occupancy and other expense. Deferred rent liability was $145 at December 31, 2021 and $176 at December 31, 2020. The right-of-use asset, included in other assets, was $7,839 and $6,289 as of December 31, 2021 and 2020, respectively. The corresponding lease liability, included in accrued expenses and other liabilities was $7,839 and $6,289 as of December 31, 2021 and 2020, respectively. Future minimum payments for operating leases with initial terms of one year or more as of December 31, 2021 were as follows: Years ending December 31: 2022 $ 850 2023 854 2024 857 2025 833 2026 728 Thereafter 5,070 Total future minimum lease payments 9,192 Amounts representing interest (1,353) Present Value of Net Future Minimum Lease Payments $ 7,839 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies Legal Matters The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations. Employment Agreements The Company has entered into employment agreements with certain officers. The agreements provide for base salaries and incentive compensation based on performance criteria outlined in the agreements. The agreements also provide for insurance, various other benefits and addresses other contractual issues, such as a change of control. Financial Instruments with Off-Balance-Sheet Risk In the normal course of business, the Company is a party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include standby letters of credit and commitments to extend credit, which include new loan commitments and undisbursed portions of construction loans and other lines of credit. These financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral become worthless. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments whose contract amounts represent off-balance sheet credit risk are as follows: December 31, December 31, 2021 2020 Commitments to extend credit summarized as follows: Future loan commitments $ 6,830 $ 14,356 Undisbursed construction loans 15,191 3,493 Undisbursed home equity lines of credit 11,048 10,686 Undisbursed commercial and other line of credit 78,941 63,911 Standby letters of credit 3,068 5,681 Total $ 115,078 $ 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. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Derivatives | 13. Derivatives 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 payable Summary information regarding these derivatives is presented below: December 31, 2021 2020 Notational amount $ 26,842 $ 1,875 Fair value $ 644 $ 40 Weighted average pay rates 3.69 % 3.10 % Weighted average receive rates 2.26 % 2.22 % Weighted average maturity (in years) 9.78 9.92 Number of Contracts 7 1 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters | |
Regulatory Matters | 14. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the tables below) of total, common equity Tier 1 and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2021 and 2020, that the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, common equity Tier 1, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since then, which management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios were: To be Well Capitalized under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Rhinebeck Bank Total capital (to risk-weighted assets) $ 130,217 13.54 % $ 76,917 8.00 % $ 96,146 10.00 % Tier 1 capital (to risk-weighted assets) 122,658 12.76 % 57,687 6.00 % 76,917 8.00 % Common equity tier one capital (to risk weighted assets) 122,658 12.76 % 43,266 4.50 % 62,495 6.50 % Tier 1 capital (to average assets) 122,658 9.65 % 50,865 4.00 % 63,582 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 % A reconciliation of the Company’s and Bank’s stockholders’ equity to total regulatory capital follows: December 31, 2021 December 31, 2020 Consolidated Bank Consolidated Bank Total stockholders' equity per financial statements $ 125,969 $ 118,691 $ 116,499 $ 108,535 Adjustments to Tier 1 and Common Equity Tier 1 capital: Accumulated other comprehensive loss 6,635 6,635 3,791 3,791 Goodwill disallowed (2,235) (2,235) (1,410) (1,410) Core deposit intangible (433) (433) (199) (199) Total Tier 1 and Common Equity Tier 1 capital 129,936 122,658 118,681 110,717 Adjustments to total capital: Allowance for credit losses 7,559 7,559 11,633 11,633 Overfunding of the allowance — — (746) (746) Total regulatory capital $ 137,495 $ 130,217 $ 129,568 $ 121,604 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value | |
Fair Value | 15. Fair Value As described in Note 1, the Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. A description of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial and non-financial instruments not recorded at fair value, is set forth below. Cash and Due from Banks The carrying amount is a reasonable estimate of fair value. Available for Sale Securities Where quoted prices are available in an active market for identical securities, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include marketable equity securities and U.S. Treasury obligations. If quoted prices are not available, then fair values are estimated by using pricing models (i.e., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds, mortgage-backed securities and municipal bonds. Level 3 securities include securities for which significant unobservable inputs are utilized. Available for sale securities are recorded at fair value on a recurring basis. FHLB Stock The carrying value of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans Loans receivable are carried at cost. For variable rate loans which reprice frequently carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using the year end rates, estimated using local market data, at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral-dependent impaired loans are recorded to reflect partial write-downs based on the observable market price or current appraised value of collateral. Other Real Estate Owned Other real estate owned represents real estate acquired through foreclosure and is carried at the lower of cost or fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. These assets are included as Level 3 fair values, based upon the lowest level of input that is utilized in the fair value measurements. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated future net servicing income. Mortgage servicing rights are carried at the lower of amortized cost or estimated fair value and are included in other assets on the consolidated statements of financial condition. Deposits Deposit liabilities are carried at cost. The fair value of NOW, savings and money market deposits is the amount payable on demand at the reporting date. The fair value of time certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities estimated using local market data to a schedule of aggregated expected maturities on such deposits. Mortgagors’ escrow account The carrying amount is a reasonable estimate of fair value. Advances from the FHLB The fair value of the advances is estimated using a discounted cash flow calculation that applies current FHLB interest rates for advances of similar maturity to a schedule of maturities of such advances. Subordinated Debt Based on the floating rate characteristic of these instruments, the carrying value is considered to approximate fair value. Off-Balance-Sheet Instruments Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standings. Such amounts are not significant. 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) December 31, 2021 Assets: U.S. Treasury securities $ 59,825 $ 59,825 $ — $ — U.S. government agency mortgage-backed securities-residential 176,491 — 176,491 — U.S. government agency securities 24,722 — 24,722 — Municipal securities 6,851 — 6,706 145 Corporate Bonds 11,752 — 11,752 — Other 642 — 642 — Total available for sale securities 280,283 59,825 220,313 145 Loan level interest rate swaps 644 — 644 — Total assets $ 280,927 $ 59,825 $ 220,957 $ 145 Liabilities: Loan level interest rate swaps $ 644 $ — $ 644 $ — Total liabilities $ 644 $ — $ 644 $ — 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 40 — 40 — Total assets $ 102,973 $ — $ 102,813 $ 160 Liabilities: Loan level interest rate swaps $ 40 $ — $ 40 $ — Total liabilities $ 40 $ — $ 40 $ — The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of December 31, 2021 and 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) December 31, 2021 Impaired loans, with specific reserves $ 321 $ — $ — $ 321 Total $ 321 $ — $ — $ 321 December 31, 2020 Impaired loans, with specific reserves $ 509 $ — $ — $ 509 Other real estate owned 139 — — 139 Total $ 648 $ — $ — $ 648 At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for credit losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. The fair value of impaired loans is based on the fair value of the collateral. Impaired loans were determined to be collateral dependent and categorized as Level 3 due to ongoing real estate market conditions resulting in inactive market data, which in turn required the use of unobservable inputs and assumptions in fair value measurements. Impaired loans evaluated under the discounted cash flow method are excluded from the table above. The discounted cash flow method as prescribed by ASC 310 is not a fair value measurement since the discount rate utilized is the loan’s effective interest rate which is not a market rate. There were no changes in valuation techniques used during the year ended December 31, 2021. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value is compared with independent data sources such as recent market data or industry-wide statistics. Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans had recorded investments of $389 and $662 with valuation allowances of $68 and $153, resulting fair values of $321 and $509 at December 31, 2021 and 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) December 31, 2021 Impaired loans $ 321 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 2021and 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 fair value estimates presented and discussed are based on pertinent information available to management as of the dates specified. The estimated fair value amounts are based on the exit price notion set forth by ASU 2016-01. Although management is not aware of any factors that would significantly affect the estimated fair values, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since the balance sheet dates. Therefore, current estimates of fair value may differ significantly from the amounts presented herein. The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. As of the following dates, the carrying value and fair values of the Company’s financial instruments were: December 31, December 31, 2021 2020 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 1) $ 72,091 $ 72,091 $ 93,485 $ 93,485 Available for sale securities (Level 1) 59,825 59,825 — — Available for sale securities (Level 2) 220,313 220,313 102,773 102,773 Available for sale securities (Level 3) 145 145 160 160 Loan level interest rate swaps (Level 2) 644 644 40 40 FHLB stock (Level 2) 1,322 1,322 2,787 2,787 Loans, net (Level 3) 854,967 855,542 873,813 876,699 Mortgage servicing rights (Level 3) 2,633 4,892 2,390 3,569 Financial Liabilities: Deposits (Level 2) 1,101,999 1,083,541 929,364 941,460 Mortgagors' escrow accounts (Level 2) 9,130 9,137 8,494 8,501 FHLB advances (Level 2) 18,041 18,151 50,674 51,468 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 644 644 40 40 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 16. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the years ended December 31, 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 December 31, 2020 $ (4,784) $ 993 $ (3,791) Other comprehensive gain (loss) before reclassifications 600 (3,730) (3,130) Amounts reclassified from accumulated other comprehensive loss 283 3 286 Period change 883 (3,727) (2,844) Balance at December 31, 2021 $ (3,901) $ (2,734) $ (6,635) Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) Other comprehensive (loss) gain before reclassifications (1,100) 1,165 65 Amounts reclassified from accumulated other comprehensive loss 225 23 248 Period change (875) 1,188 313 Balance at December 31, 2020 $ (4,784) $ 993 $ (3,791) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0% in fiscal 2021 and 21.0% in fiscal 2020. Details about accumulated other comprehensive loss components are as follows: Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended Affected Line Item in the Consolidated December 31, Statement of Income 2021 2020 Securities available for sale (1) Net securities losses reclassified into earnings $ (4) $ (29) Net realized loss on sales and calls of securities Related income tax expense 1 6 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (3) (23) Defined benefit pension plan (2) Amortization of net loss and prior service costs (358) (285) Other noninterest expense Related income tax expense 75 60 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (283) (225) Total reclassifications for the period $ (286) $ (248) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 3, “Available for Sale Securities. ” (2) Included in the computation of net periodic pension cost. See Note 10, “Employee Benefits” for additional details . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
Earnings Per Share | 17. Earnings Per Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents (such as options) were issued during the period. Unearned ESOP shares are not deemed outstanding for earnings per share calculations. For the year ended December 31, 2020, there were 448,385 options outstanding at an average weighted price of $6.61 per share that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive. Year Ended December 31, 2021 2020 Net income applicable to common stock $ 11,558 $ 5,917 Average number of common shares outstanding 11,151,064 11,133,290 Less: Average unearned ESOP shares 381,873 403,694 Average number of common shares outstanding used to calculate basic earnings per common share 10,769,191 10,729,596 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 73,235 10,245 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 111,940 — Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,954,366 10,739,841 Earnings per Common share: Basic $ 1.07 $ 0.55 Diluted $ 1.06 $ 0.55 |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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 generally accepted accounting principles in the United States (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, fair value measurements, the evaluation of goodwill for impairment and the valuation of deferred tax assets. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued. |
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. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, and Albany. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ abilities to repay their loans is dependent on the economic conditions in the market areas in which the Company operates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. |
Investment in Debt Securities | Investment in Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase discounts are recognized in interest income using the interest method over the contractual terms of the security. Purchase premiums are recognized in interest income using the interest method to the instrument’s earliest call date. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities for other-than temporary impairment on a regular basis. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the credit standing of the issuer. When the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its cost basis, the credit loss determined due to a permanent impairment will be recognized in earnings. The credit loss component recognized is identified as the amount of future principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow estimates discounted at the applicable original yield of the security. |
Investment in FHLB Stock | Investment in FHLB Stock The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. |
Loans Receivable | Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for loan losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized using the interest method over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer automobile and installment loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on non-accrual status or charged off, is reversed against interest income. The interest on these loans is not recognized until the loan returns to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for loan losses | Allowance for loan losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines all or part of the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance calculation methodology involves segregation of the total loan portfolio. The Company’s loans receivable portfolio is comprised of the following segments: commercial real estate, residential real estate, commercial and industrial and consumer. The segments of the Company’s loans receivable portfolio are further disaggregated into classes based on identified risks within those segments. This allows management to better monitor risk and performance. Commercial real estate loans are separated into the three classes: construction, non-residential and multi-family. Non-residential and multi-family loans include long-term loans financing commercial properties and include both owner and non-owner occupied properties. The underlying cash flows generated by the properties may be negatively impacted by increased vacancy rates due to a downturn in the economy. Construction loans, which include land loans, are comprised mostly of non-owner occupied projects, whereby the property is generally under development and tends to have more risk than the owner occupied loans. The Company grants loans for the construction of residential homes, residential developments and land development projects. Repayment of these loans is mostly dependent upon either the ongoing cash flows of the borrowing entity or the resale or lease of the subject property. Residential real estate loans are secured by the borrower’s residential real estate generally in a first lien position. Residential mortgages have varying loan interest rates depending on the financial condition of the borrower, the loan to value ratio and the term of the loan. The overall health of the economy, reflected in unemployment rates and housing prices, will have an effect on the credit quality of this segment. The commercial and industrial loan segment consists of loans made for purposes of financing the activities of commercial customers. The assets financed through commercial and industrial loans are used within the business for its ongoing operations. Repayment of commercial and industrial loans predominately comes from the cash flows of the business or the ongoing operations of assets. A weakened economy and resultant decreased consumer spending could have a negative impact on this line of business. Consumer loans are classified into the following three classes: indirect automobile loans, home equity loans and other consumer loans. Indirect automobile loans are secured by the borrowers’ automobiles and originated through the Company’s relationships with the automobile dealers in the Company’s service area. Home equity loans are secured by the borrowers’ residential real estate in a first or second lien position. Other direct consumer loans may be unsecured. The overall health of the economy, reflected in unemployment rates and housing prices, will have an impact on the credit quality of this segment. The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and, in most cases, extends credit of up to 80% of the market value of the collateral at the date of the credit extension, depending on the borrower’s creditworthiness and the type of collateral. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial and industrial and commercial real estate loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, automobiles, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower, past experience with the borrower, the nature of the collateral, competitive offerings and/or the term of the loan. The market value of collateral is monitored on an ongoing basis and additional collateral may be obtained when warranted. While collateral provides some assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrower’s ability to generate continuing sufficient cash flows. The Company’s policy for real estate collateral requires that, generally, the amount of the loan may not exceed 90% of the original appraised value of the property. Private mortgage insurance is usually required for that portion of the loan in excess of 80% of the appraised value of the property. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated at least quarterly or when credit deficiencies arise, such as when loan payments are delinquent. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such impaired loans, an allowance is established when the discounted cash flows (or observable market price or collateral value if the loan is collateral dependent) of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans, segregated generally by loan type and is based on historical loss experience with adjustments for qualitative factors which are made after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss data. These qualitative risk factors include: 1. Changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices. 2. Changes in international, national, regional, and local conditions. 3. Changes in the nature and volume of the portfolio and terms of loans. 4. Changes in the experience, depth, and ability of lending management. 5. Changes in the volume and severity of past due loans and other similar conditions. 6. Changes in the quality of the organization’s loan review system. 7. Changes in the value of underlying collateral for collateral dependent loans. 8. The existence and effect of any concentrations of credit and changes in the levels of such concentrations. 9. The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls are not necessarily classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable net market price, or the fair value of the collateral if the loan is collateral dependent. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the size of the loan, age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. If liquidation is expected, appraised values are discounted for expected sales costs to arrive at the estimated recognizable value of the collateral, which is considered to be the estimated fair value. The recorded investment in consumer mortgages and loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $935 and $636 on December 31, 2021 and 2020, respectively. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan which is then identified as a TDR. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses. The Company identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, negative trends, or specific conditions may result in a payment default in the near future. Regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated statements of financial condition and measured at fair value. Loan Level Interest Rate Swaps |
Loans Held for Sale | Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in noninterest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. Mortgage service rights are recorded and amortized over the life of the loan. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. |
Servicing | Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance and charged to noninterest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. |
Revenue Recognition | Revenue Recognition The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: ● Fees for services to customers include service charges on deposits which are included as liabilities in the consolidated statements of financial condition and consist of transaction-based fees: stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, wire fees, official check fees and overdraft services fees for various retail and business checking customers. These fees are charged as earned on the day of the transaction or within the month of the service. Service charges on deposits are withdrawn directly from the customer’s account balance. ATM and debit card fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Sales of checks to depositors earn fees as a contractual discount to the retail price of the sale from a third-party provider. These fees earned are remitted by the third-party to the Company quarterly. ● The Company earns interchange fee income from credit/debit cardholder transactions conducted through MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. ● The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed; at such time, the OREO asset is derecognized and the gain or loss on the sale is recorded. Rental income received from leased OREO property is recognized during the month it is earned. ● Retail brokerage and advisory fee income is accrued monthly to properly record the revenues in the month they are earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Investments into mutual funds and annuities generate fees that are recorded as revenue at the time of the initial sale. In subsequent years the mutual funds and variable annuities generate recurring fees (referred to as 12B-1 fees) that are paid in advance on the anniversary of the original transaction. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e., trade date). Life insurance products are sold on a commission basis that generates a fee that is recorded as revenue within the month of the approved transaction. Other income includes rental income, mortgage origination and service fees and late fees on serviced mortgages. All items are recorded as revenue within the month that the service is provided. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. Other real estate owned included $139 of commercial property on December 31, 2020. All of our other real estate owned had been sold by December 31, 2021. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Rent expense is charged to operations over the expected lease term using the straight-line method. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and directors. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of noninterest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. |
Goodwill and Amortizable Intangible Assets | Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts and core deposit intangibles. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships. These assets are amortized on a straight-line basis over the related estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. |
Employee Benefit Plans | Employee Benefit Plans The Bank maintains the Rhinebeck Bank 401(k) Plan (the “401(k) Plan”) for substantially all of its employees, a defined benefit pension plan (frozen as of June 30, 2012), as well as Supplemental Executive Retirement Plans (the “SERPs”), all of which are tax qualified under the Internal Revenue Code. Employee 401(k) plan expense is the amount of matching contributions. Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. SERP expense is the net of interest cost and service cost, which allocates the benefits over years of service. We account for benefits under the defined plan in accordance with Accounting Standards Codification (“ASC”) Topic 715 “Pension and Other Postretirement Benefits.” The guidance requires an employer to: (1) recognize in its statement of financial position the over funded or underfunded status of a defined benefit postretirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (2) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (3) recognize as a component of other comprehensive income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period. The Bank created an employee stock ownership plan (the “ESOP”) for the benefit of employees who meet certain eligibility requirements. Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated statements of financial condition. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The Company maintains an equity incentive plan to provide for issuance or granting of shares of common stock for stock options or restricted stock. The Company has recorded stock-based employee compensation cost using the fair value method as allowed under generally accepted accounting principles. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method as allowed under generally accepted accounting principles. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract. |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. When tax returns are filed, it is highly expected that most positions taken would be sustained upon examination by the taxing authorities, while others may be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company has no liabilities for uncertain tax positions at December 31, 2021 and 2020. Interest and penalties associated with unrecognized tax benefits, if any, would be classified in other non-interest expense in the consolidated statements of income. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding under the treasury stock method if all potentially dilutive common shares (such as stock options) issued became vested during the period. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for either the basic or diluted earnings per share calculations. See Note 17 for the calculation of EPS. |
Comprehensive Income | Comprehensive Income GAAP requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and the net actuarial loss of the defined benefit pension plan, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income. |
Fair Value | Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in certain instances, there are no quoted market prices for certain assets or liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. Fair value measurements focus on exit prices in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The Company’s fair value measurements are classified into a fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The three categories within the hierarchy are as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active; and model-based valuation techniques for which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Reclassifications | Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. |
Emerging Growth Company Status | Emerging Growth Company Status As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-public companies. The Company is taking advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the following recent accounting standards reflect those that relate to non-public companies. |
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. |
Recent Accounting Pronouncements | 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. In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)”. The amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements. The Company adopted ASU 2018-14 on January 1, 2021. This update did not have a material impact on the Company’s financial statements. On December 18, 2019, the FASB issued Accounting Standards Update 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. The FASB’s amendments primarily impact ASC 740, Income Taxes, and may impact both interim and annual reporting periods. This ASU is effective for the Company in 2022. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on the consolidated financial statements and does not expect to early adopt. On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 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 . |
Available for Sale Securities (
Available for Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Available for Sale Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities | December 31, 2021 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 60,273 $ 2 $ (450) $ 59,825 U.S. government agency mortgage-backed securities–residential 179,493 344 (3,346) 176,491 U.S. government agency securities 24,800 53 (131) 24,722 Municipal securities (1) 6,858 33 (40) 6,851 Corporate bonds 11,700 117 (65) 11,752 Other 620 22 — 642 Total $ 283,744 $ 571 $ (4,032) $ 280,283 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) |
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position | December 31, 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 $ 49,007 $ (268) $ 5,797 $ (182) $ 54,804 $ (450) U.S. government agency mortgage-backed securities-residential 139,019 (3,035) 11,002 (311) 150,021 (3,346) U.S. government agency securities 14,625 (131) — — 14,625 (131) Municipal Securities 2,469 (40) — — 2,469 (40) Corporate Bonds 5,885 (65) — — 5,885 (65) Total $ 211,005 $ (3,539) $ 16,799 $ (493) $ 227,804 $ (4,032) 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 | December 31, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 12,729 $ 12,726 $ 102 $ 102 After 1 but within 5 years 67,912 67,463 2,155 2,155 After 5 but within 10 years 22,595 22,567 9,946 10,162 After 10 years 395 394 655 664 Total Maturities 103,631 103,150 12,858 13,083 Mortgage-backed securities 179,493 176,491 88,197 89,270 Other 620 642 621 580 Total $ 283,744 $ 280,283 $ 101,676 $ 102,933 |
Loans and Allowance for loan _2
Loans and Allowance for loan losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for loan losses | |
Schedule of summary loan portfolio | A summary of the Company’s loan portfolio is as follows: December 31, December 31, 2021 2020 Commercial real estate loans: Construction $ 10,095 $ 5,392 Non-residential 245,568 248,349 Multi-family 55,926 30,379 Residential real estate loans 35,646 39,239 Commercial and industrial loans (1) 104,323 154,016 Consumer loans: Indirect automobile 382,088 376,260 Home equity 11,857 14,165 Other consumer 7,955 8,816 Total gross loans 853,458 876,616 Net deferred loan costs 9,068 8,830 Allowance for loan losses (7,559) (11,633) Total net loans $ 854,967 $ 873,813 (1) Includes $29,464 and $75,366 in SBA PPP loans at December 31, 2021 and 2020. |
Schedule of loans by risk rating and portfolio segment | December 31, 2021 Pass Special Mention Substandard Total Commercial real estate: Construction $ 10,095 $ — $ — $ 10,095 Non-residential 232,253 10,341 2,974 245,568 Multifamily 55,926 — — 55,926 Residential real estate 33,416 — 2,230 35,646 Commercial and industrial 98,171 5,377 775 104,323 Consumer: Indirect automobile 381,354 — 734 382,088 Home equity 11,587 — 270 11,857 Other consumer 7,908 — 47 7,955 Total $ 830,710 $ 15,718 $ 7,030 $ 853,458 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 | December 31, 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 $ 10,095 $ — $ — $ — $ 10,095 $ — Non-residential 242,205 115 527 2,721 245,568 2,721 Multifamily 55,926 — — — 55,926 — Residential real estate 34,363 57 242 984 35,646 2,230 Commercial and industrial 103,517 246 — 560 104,323 687 Consumer: Indirect automobile 374,729 5,977 715 667 382,088 734 Home equity 11,429 149 106 173 11,857 270 Other consumer 7,702 153 53 47 7,955 47 Total $ 839,966 $ 6,697 $ 1,643 $ 5,152 $ 853,458 $ 6,689 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 There were no loans greater than 90 days past due and still accruing as of December 31, 2021 or 2020. |
Schedule of information to impaired loans by loan portfolio class | December 31, 2021 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 2,721 $ 3,797 $ — $ 2,290 Residential real estate 2,230 2,786 — 2,459 Commercial and industrial 687 921 — 674 Consumer: Indirect automobile 345 408 — 219 Home equity 270 276 — 338 Other consumer 47 48 — 50 Total $ 6,300 $ 8,236 $ — $ 6,030 With an allowance recorded: Commercial and industrial $ — $ — $ — $ 148 Consumer: Indirect automobile 389 395 68 286 Total $ 389 $ 395 $ 68 $ 434 Total: Commercial real estate: Non-residential $ 2,721 $ 3,797 $ — $ 2,290 Residential real estate 2,230 2,786 — 2,459 Commercial and industrial 687 921 — 822 Consumer: Indirect automobile 734 803 68 505 Home equity 270 276 — 338 Other consumer 47 48 — 50 Total $ 6,689 $ 8,631 $ 68 $ 6,464 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 Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2021 Allowance for loan losses: Beginning balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 (Credit to) provision for loan losses (2,037) (69) (414) (1,035) (112) (3,667) Loans charged-off — — (12) (2,048) (24) (2,084) Recoveries — 6 101 1,525 45 1,677 Ending balance $ 3,317 $ 54 $ 725 $ 3,416 $ 47 $ 7,559 Ending balance: Loans deemed impaired $ — $ — $ — $ 68 $ — $ 68 Loans not deemed impaired $ 3,317 $ 54 $ 725 $ 3,348 $ 47 $ 7,491 Loan receivables: Ending balance $ 311,589 $ 35,646 $ 104,323 $ 382,088 $ 19,812 $ 853,458 Ending balance: Loans deemed impaired $ 2,721 $ 2,230 $ 687 $ 734 $ 317 $ 6,689 Loans not deemed impaired $ 308,868 $ 33,416 $ 103,636 $ 381,354 $ 19,495 $ 846,769 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2020 Allowance for loan losses: Beginning balance $ 2,009 $ 99 $ 603 $ 3,117 $ 126 $ 5,954 Provision for loan losses 3,341 18 585 3,166 28 7,138 Loans charged-off — — (153) (2,307) (47) (2,507) Recoveries 4 — 15 998 31 1,048 Ending balance $ 5,354 $ 117 $ 1,050 $ 4,974 $ 138 $ 11,633 Ending balance: Loans deemed impaired $ — $ — $ 11 $ 135 $ 7 $ 153 Loans not deemed impaired $ 5,354 $ 117 $ 1,039 $ 4,839 $ 131 $ 11,480 Loan receivables: Ending balance $ 284,120 $ 39,239 $ 154,016 $ 376,260 $ 22,981 $ 876,616 Ending balance: Loans deemed impaired $ 1,944 $ 2,641 $ 366 $ 990 $ 394 $ 6,335 Loans not deemed impaired $ 282,176 $ 36,598 $ 153,650 $ 375,270 $ 22,587 $ 870,281 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying value of goodwill | Year Ended 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 and core deposit intangibles | Years Ended December 31, 2021 2020 Beginning balance $ 199 $ 241 Acquisition activity 330 — Amortization (96) (42) Ending balance $ 433 $ 199 Accumulated amortization and impairment $ 844 $ 748 |
Schedule of future amortization expense for amortizable intangible assets | 2022 $ 99 2023 88 2024 79 2025 60 2026 29 Thereafter 78 Total $ 433 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Schedule of premises and equipment | December 31, December 31, 2021 2020 Land $ 3,732 $ 3,732 Buildings and improvements 27,151 26,431 Furniture, fixtures and equipment 14,107 13,042 Construction in process 161 93 Total 45,151 43,298 Less accumulated depreciation (25,968) (24,459) Net $ 19,183 $ 18,839 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Schedule of deposits | December 31, December 31, 2021 2020 Non-interest bearing demand deposits $ 314,814 $ 244,344 Interest bearing accounts: NOW 158,615 141,580 Savings 182,564 157,414 Money market 289,107 185,383 Time certificates of deposit 156,899 200,643 Total interest bearing accounts 787,185 685,020 Total deposits $ 1,101,999 $ 929,364 |
Schedule of contractual maturities of time certificates of deposit | December 31, 2021 Within 1 year $ 122,861 1 – 2 years 16,598 2 – 3 years 7,843 3 – 4 years 7,674 4 – 5 years 1,923 Total $ 156,899 |
Long-Term Debt and FHLB Stock (
Long-Term Debt and FHLB Stock (Tables) | 12 Months Ended |
Dec. 31, 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 $ 1,719 May 16, 2022 2.49 % $ 1,719 — 3 year bullet 10,000 May 16, 2022 2.44 % 10,000 — 3 year amortizing 6,322 February 28, 2023 1.32 % 5,049 1,273 Total $ 18,041 Weighted Average Rate 2.05 % $ 16,768 $ 1,273 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of components of the provision for income taxes | Years Ended December 31, 2021 2020 Current expense: Federal $ 2,042 $ 3,078 State 284 12 Total current expense 2,326 3,090 Deferred expense (benefit): Federal 1,107 (1,531) State 1,306 (558) Change in valuation allowance (1,306) 558 Total deferred expense (benefit) 1,107 (1,531) Total provision for income taxes $ 3,433 $ 1,559 |
Schedule of differences between the provision for income taxes and statutory federal income tax rate | Years ended December 31, 2021 2020 Provision at statutory rate $ 3,148 21.00 % $ 1,570 21.00 % Tax exempt income (125) (0.83) % (79) (1.06) % State income taxes, net of federal income tax benefit 192 1.28 % 12 0.16 % Other, net 218 1.45 % 56 0.75 % Effective income tax and rate $ 3,433 22.90 % $ 1,559 20.85 % |
Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities | December 31, 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,041 $ 3,141 Deferred expenses 39 47 Deferred compensation 1,538 1,271 Unrecognized pension liability 1,037 1,272 Postretirement liability 920 954 Deferred loss on OREO — 83 Deferred loan fees — 158 Unrealized loss on securities 727 — State tax NOLs — 990 Other 431 324 Gross deferred tax assets 6,733 8,240 Deferred tax liabilities: Prepaid expenses (262) (217) Prepaid pension (1,275) (1,276) Deferred loan fees (154) — Depreciation and amortization (525) (375) Unrealized gain on securities — (264) Mortgage servicing rights (711) (645) Gross deferred tax liabilities (2,927) (2,777) Net deferred tax asset 3,806 5,463 Deferred tax valuation allowance (454) (1,760) Deferred tax assets, net of allowance $ 3,352 $ 3,703 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Schedule of employee stock ownership plan | Year ended Year ended December 31, December 31, 2021 2020 Allocated 43,642 21,821 Committed to be allocated 21,821 21,821 Unallocated 370,962 392,783 Paid out to participants (1,252) (68) Total shares 435,173 436,357 |
Schedule of assumptions used and fair value for options granted | December 31, 2021 Expected term (years) 6 Expected dividend yield 0% Weighted-average expected volatility 25.45% Weighted-average risk-free interest rate 0.29% Weighted-average fair value of options granted $1.67 |
Summary of options | 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 (3,334) 6.57 - Options outstanding at December 31, 2021 439,596 $ 6.62 8.63 Options exercisable at December 31, 2021 143,997 6.62 8.56 |
Summary of Company's restricted stock activity | 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 (667) 6.57 Non-vested restricted stock at December 31, 2021 112,520 $ 6.57 |
Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition | December 31, December 31, 2021 2020 Projected and accumulated benefit obligation $ (23,055) $ (23,964) Plan assets at fair value 22,839 22,634 Funded status included in accrued expenses and other liabilities $ (216) $ (1,330) |
Schedule of plan's funded status | 2021 2020 Change in benefit projected obligation: Projected benefit obligation at beginning of year $ 23,964 $ 20,953 Service cost - - Interest cost 589 670 Actuarial (gain) loss (842) 2,941 Benefits paid (656) (600) Projected benefit obligation at end of year 23,055 23,964 Change in plan assets: Fair value of plan assets at beginning of year 22,634 20,628 Actual return on plan assets 861 2,606 Contributions - - Benefits paid (656) (600) Fair value of plan assets at end of year 22,839 22,634 Funded status $ (216) $ (1,330) |
Schedule of weighted-average assumptions used to determine the pension benefit obligation | Years ended December 31, 2021 2020 Discount rate 2.80 % 2.50 % Rate of compensation increase N/A N/A Years ended December 31, 2021 2020 Discount rate 2.50 % 3.25 % Expected long-term return on plan assets 4.50 % 5.50 % Rate of compensation increase N/A N/A |
Schedule of amounts recognized in accumulated other comprehensive loss | Years ended December 31, 2021 2020 Net actuarial loss $ 4,938 $ 6,055 |
Schedule of net periodic pension cost and amounts recognized in other comprehensive income | Years ended December 31, 2021 2020 Interest cost $ 589 $ 670 Expected return on plan assets (944) (1,058) Amortization of unrecognized loss 359 285 Net periodic cost (benefit) $ 4 $ (103) |
Schedule of fair value of pension plan assets, by fair value hierarchy | December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 15,689 $ — $ — $ 15,689 Equity 7,150 — — 7,150 Total assets at fair value $ 22,839 $ — $ — $ 22,839 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 employer contributions and benefit payments | Year ended December 31, 2021 2020 Benefits paid $ 656 $ 600 |
Schedule of benefit payments, which reflect expected future service | Fiscal Year Ending Pension Benefits 2022 $ 820 2023 840 2024 910 2025 940 2026 960 2027 – 2031 5,560 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of future minimum payments for operating leases | Years ending December 31: 2022 $ 850 2023 854 2024 857 2025 833 2026 728 Thereafter 5,070 Total future minimum lease payments 9,192 Amounts representing interest (1,353) Present Value of Net Future Minimum Lease Payments $ 7,839 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Schedule of contract amounts represent off-balance sheet credit risk | December 31, December 31, 2021 2020 Commitments to extend credit summarized as follows: Future loan commitments $ 6,830 $ 14,356 Undisbursed construction loans 15,191 3,493 Undisbursed home equity lines of credit 11,048 10,686 Undisbursed commercial and other line of credit 78,941 63,911 Standby letters of credit 3,068 5,681 Total $ 115,078 $ 98,127 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Schedule of information regarding derivatives | December 31, 2021 2020 Notational amount $ 26,842 $ 1,875 Fair value $ 644 $ 40 Weighted average pay rates 3.69 % 3.10 % Weighted average receive rates 2.26 % 2.22 % Weighted average maturity (in years) 9.78 9.92 Number of Contracts 7 1 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 Rhinebeck Bank Total capital (to risk-weighted assets) $ 130,217 13.54 % $ 76,917 8.00 % $ 96,146 10.00 % Tier 1 capital (to risk-weighted assets) 122,658 12.76 % 57,687 6.00 % 76,917 8.00 % Common equity tier one capital (to risk weighted assets) 122,658 12.76 % 43,266 4.50 % 62,495 6.50 % Tier 1 capital (to average assets) 122,658 9.65 % 50,865 4.00 % 63,582 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 % |
Schedule of reconciliation of the Company's and Bank's stockholders' equity to total regulatory | December 31, 2021 December 31, 2020 Consolidated Bank Consolidated Bank Total stockholders' equity per financial statements $ 125,969 $ 118,691 $ 116,499 $ 108,535 Adjustments to Tier 1 and Common Equity Tier 1 capital: Accumulated other comprehensive loss 6,635 6,635 3,791 3,791 Goodwill disallowed (2,235) (2,235) (1,410) (1,410) Core deposit intangible (433) (433) (199) (199) Total Tier 1 and Common Equity Tier 1 capital 129,936 122,658 118,681 110,717 Adjustments to total capital: Allowance for credit losses 7,559 7,559 11,633 11,633 Overfunding of the allowance — — (746) (746) Total regulatory capital $ 137,495 $ 130,217 $ 129,568 $ 121,604 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, 2021 Assets: U.S. Treasury securities $ 59,825 $ 59,825 $ — $ — U.S. government agency mortgage-backed securities-residential 176,491 — 176,491 — U.S. government agency securities 24,722 — 24,722 — Municipal securities 6,851 — 6,706 145 Corporate Bonds 11,752 — 11,752 — Other 642 — 642 — Total available for sale securities 280,283 59,825 220,313 145 Loan level interest rate swaps 644 — 644 — Total assets $ 280,927 $ 59,825 $ 220,957 $ 145 Liabilities: Loan level interest rate swaps $ 644 $ — $ 644 $ — Total liabilities $ 644 $ — $ 644 $ — 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 40 — 40 — Total assets $ 102,973 $ — $ 102,813 $ 160 Liabilities: Loan level interest rate swaps $ 40 $ — $ 40 $ — Total liabilities $ 40 $ — $ 40 $ — |
Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis | Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2021 Impaired loans, with specific reserves $ 321 $ — $ — $ 321 Total $ 321 $ — $ — $ 321 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) December 31, 2021 Impaired loans $ 321 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 | December 31, December 31, 2021 2020 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 1) $ 72,091 $ 72,091 $ 93,485 $ 93,485 Available for sale securities (Level 1) 59,825 59,825 — — Available for sale securities (Level 2) 220,313 220,313 102,773 102,773 Available for sale securities (Level 3) 145 145 160 160 Loan level interest rate swaps (Level 2) 644 644 40 40 FHLB stock (Level 2) 1,322 1,322 2,787 2,787 Loans, net (Level 3) 854,967 855,542 873,813 876,699 Mortgage servicing rights (Level 3) 2,633 4,892 2,390 3,569 Financial Liabilities: Deposits (Level 2) 1,101,999 1,083,541 929,364 941,460 Mortgagors' escrow accounts (Level 2) 9,130 9,137 8,494 8,501 FHLB advances (Level 2) 18,041 18,151 50,674 51,468 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 644 644 40 40 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Loss. | |
Schedule of accumulated other comprehensive loss components | Accumulated Other Comprehensive Loss (1) Unrealized (losses) gains on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2020 $ (4,784) $ 993 $ (3,791) Other comprehensive gain (loss) before reclassifications 600 (3,730) (3,130) Amounts reclassified from accumulated other comprehensive loss 283 3 286 Period change 883 (3,727) (2,844) Balance at December 31, 2021 $ (3,901) $ (2,734) $ (6,635) Balance at December 31, 2019 $ (3,909) $ (195) $ (4,104) Other comprehensive (loss) gain before reclassifications (1,100) 1,165 65 Amounts reclassified from accumulated other comprehensive loss 225 23 248 Period change (875) 1,188 313 Balance at December 31, 2020 $ (4,784) $ 993 $ (3,791) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0% in fiscal 2021 and 21.0% in fiscal 2020. |
Schedule of accumulated other comprehensive loss activity | Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended Affected Line Item in the Consolidated December 31, Statement of Income 2021 2020 Securities available for sale (1) Net securities losses reclassified into earnings $ (4) $ (29) Net realized loss on sales and calls of securities Related income tax expense 1 6 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (3) (23) Defined benefit pension plan (2) Amortization of net loss and prior service costs (358) (285) Other noninterest expense Related income tax expense 75 60 Provision for income taxes Net effect on accumulated other comprehensive loss for the period (283) (225) Total reclassifications for the period $ (286) $ (248) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 3, “Available for Sale Securities. ” (2) Included in the computation of net periodic pension cost. See Note 10, “Employee Benefits” for additional details . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | Year Ended December 31, 2021 2020 Net income applicable to common stock $ 11,558 $ 5,917 Average number of common shares outstanding 11,151,064 11,133,290 Less: Average unearned ESOP shares 381,873 403,694 Average number of common shares outstanding used to calculate basic earnings per common share 10,769,191 10,729,596 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 73,235 10,245 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 111,940 — Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,954,366 10,739,841 Earnings per Common share: Basic $ 1.07 $ 0.55 Diluted $ 1.06 $ 0.55 |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)location | Dec. 31, 2020USD ($) | |
Nature Of Business And Significant Accounting Policies [Line Items] | ||
Number of branches | location | 15 | |
Number of representative offices | location | 2 | |
Percentage of credit extension | 80.00% | |
Threshold percentage for loan amount against the original appraised value of the property | 90.00% | |
Threshold percentage for private mortgage insurance required for that portion of loan | 80.00% | |
Amount of consumer mortgages and loans secured by residential real estate properties in process of foreclosure | $ 935,000 | $ 636,000 |
Amortization method purchased customer accounts | straight-line basis | |
Real Estate Acquired Through Foreclosure | 139,000 | |
Useful life of purchased customer accounts | 13 years | |
Uncertain tax positions | $ 0 | 0 |
Commercial real estate | ||
Nature Of Business And Significant Accounting Policies [Line Items] | ||
Real Estate Acquired Through Foreclosure | $ 139,000 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - ConnectOne Bank $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Mar. 12, 2021USD ($)location | |
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 | location | 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 | Dec. 31, 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 |
Available for Sale Securities_2
Available for Sale Securities (Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 283,744 | $ 101,676 |
Gross Unrealized Gains | 571 | 1,578 |
Gross Unrealized Losses | (4,032) | (321) |
Fair Value | 280,283 | 102,933 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,273 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (450) | |
Fair Value | 59,825 | |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 179,493 | 88,197 |
Gross Unrealized Gains | 344 | 1,350 |
Gross Unrealized Losses | (3,346) | (277) |
Fair Value | 176,491 | 89,270 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 24,800 | 7,013 |
Gross Unrealized Gains | 53 | 148 |
Gross Unrealized Losses | (131) | |
Fair Value | 24,722 | 7,161 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,858 | 1,445 |
Gross Unrealized Gains | 33 | 31 |
Gross Unrealized Losses | (40) | |
Fair Value | 6,851 | 1,476 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,700 | 4,400 |
Gross Unrealized Gains | 117 | 49 |
Gross Unrealized Losses | (65) | (3) |
Fair Value | 11,752 | 4,446 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 620 | 621 |
Gross Unrealized Gains | 22 | |
Gross Unrealized Losses | (41) | |
Fair Value | $ 642 | $ 580 |
Available for Sale Securities_3
Available for Sale Securities (Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 211,005 | $ 31,512 |
Less Than 12 Months Unrealized Losses | (3,539) | (313) |
12 Months or Longer Fair Value | 16,799 | 293 |
12 Months or Longer Unrealized Losses | (493) | (8) |
Fair Value | 227,804 | 31,805 |
Unrealized Losses | (4,032) | (321) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 49,007 | |
Less Than 12 Months Unrealized Losses | (268) | |
12 Months or Longer Fair Value | 5,797 | |
12 Months or Longer Unrealized Losses | (182) | |
Fair Value | 54,804 | |
Unrealized Losses | (450) | |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 139,019 | 30,243 |
Less Than 12 Months Unrealized Losses | (3,035) | (269) |
12 Months or Longer Fair Value | 11,002 | 293 |
12 Months or Longer Unrealized Losses | (311) | (8) |
Fair Value | 150,021 | 30,536 |
Unrealized Losses | (3,346) | (277) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 14,625 | |
Less Than 12 Months Unrealized Losses | (131) | |
Fair Value | 14,625 | |
Unrealized Losses | (131) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 2,469 | |
Less Than 12 Months Unrealized Losses | (40) | |
Fair Value | 2,469 | |
Unrealized Losses | (40) | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 5,885 | 747 |
Less Than 12 Months Unrealized Losses | (65) | (3) |
Fair Value | 5,885 | 747 |
Unrealized Losses | $ (65) | (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) |
Available for Sale Securities_4
Available for Sale Securities (Schedule of maturities of debt securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Within 1 year | $ 12,729 | $ 102 |
After 1 but within 5 years | 67,912 | 2,155 |
After 5 but within 10 years | 22,595 | 9,946 |
After 10 years | 395 | 655 |
Total Maturities | 103,631 | 12,858 |
Mortgage-backed securities | 179,493 | 88,197 |
Other | 620 | 621 |
Amortized Cost | 283,744 | 101,676 |
Fair Value | ||
Within 1 year | 12,726 | 102 |
After 1 but within 5 years | 67,463 | 2,155 |
After 5 but within 10 years | 22,567 | 10,162 |
After 10 years | 394 | 664 |
Total Maturities | 103,150 | 13,083 |
Mortgage-backed securities | 176,491 | 89,270 |
Other | 642 | 580 |
Fair Value | $ 280,283 | $ 102,933 |
Available for Sale Securities_5
Available for Sale Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Available for Sale Securities | ||
Number of individual available-for-sale securities with unrealized losses | security | 160 | 36 |
Unrealized Losses | $ 4,032 | $ 321 |
Aggregate percentage of depreciation | 1.77% | 1.01% |
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | $ 8,316 | $ 18,123 |
Available for sale securities pledged to secure Federal Reserve Bank of New York ("FRBNY") borrowings | 1,054 | 1,059 |
Proceeds from the sale of available for sale securities and calls | 4,000 | 6,996 |
Gains on sales of investment securities | 0 | 0 |
Losses on sales of investment securities | $ 4 | $ 29 |
Loans and Allowance for loan _3
Loans and Allowance for loan losses (Schedule of summary loan portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | $ 853,458 | $ 876,616 | |
Net deferred loan costs | 9,068 | 8,830 | |
Allowance for loan losses | (7,559) | (11,633) | $ (5,954) |
Total net loans | 854,967 | 873,813 | |
Indirect automobile | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 382,088 | 376,260 | |
Allowance for loan losses | (3,416) | (4,974) | (3,117) |
Commercial real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 311,589 | 284,120 | |
Allowance for loan losses | (3,317) | (5,354) | (2,009) |
Commercial real estate | Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 10,095 | 5,392 | |
Commercial real estate | Non-residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 245,568 | 248,349 | |
Commercial real estate | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 55,926 | 30,379 | |
Residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 35,646 | 39,239 | |
Allowance for loan losses | (54) | (117) | (99) |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 104,323 | 154,016 | |
Allowance for loan losses | (725) | (1,050) | (603) |
Commercial and industrial | Small Business Administration Paycheck Protection Program | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 29,464 | 75,366 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 19,812 | 22,981 | |
Allowance for loan losses | (47) | (138) | $ (126) |
Consumer | Indirect automobile | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 382,088 | 376,260 | |
Consumer | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 11,857 | 14,165 | |
Consumer | Other consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | $ 7,955 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | $ 853,458 | $ 876,616 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 830,710 | 858,751 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 15,718 | 10,863 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 7,030 | 7,002 |
Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 382,088 | 376,260 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 311,589 | 284,120 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 10,095 | 5,392 |
Commercial real estate | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 10,095 | 5,392 |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 245,568 | 248,349 |
Commercial real estate | Non-residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 232,253 | 240,778 |
Commercial real estate | Non-residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 10,341 | 5,468 |
Commercial real estate | Non-residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 2,974 | 2,103 |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 55,926 | 30,379 |
Commercial real estate | Multifamily | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 55,926 | 30,379 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 35,646 | 39,239 |
Residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 33,416 | 36,597 |
Residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 2,230 | 2,642 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 104,323 | 154,016 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 98,171 | 147,748 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 5,377 | 5,395 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 775 | 873 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 19,812 | 22,981 |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 382,088 | 376,260 |
Consumer | Indirect automobile | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 381,354 | 375,270 |
Consumer | Indirect automobile | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 734 | 990 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 11,857 | 14,165 |
Consumer | Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 11,587 | 13,819 |
Consumer | Home equity | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 270 | 346 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 7,955 | 8,816 |
Consumer | Other consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 7,908 | 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 ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | $ 853,458,000 | $ 876,616,000 |
Nonaccrual | 6,689,000 | 6,335,000 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 839,966,000 | 858,608,000 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,697,000 | 11,616,000 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,643,000 | 1,853,000 |
Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,152,000 | 4,539,000 |
Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 382,088,000 | 376,260,000 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 311,589,000 | 284,120,000 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 10,095,000 | 5,392,000 |
Commercial real estate | Construction | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 10,095,000 | 5,392,000 |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 245,568,000 | 248,349,000 |
Nonaccrual | 2,721,000 | 1,944,000 |
Commercial real estate | Non-residential | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 242,205,000 | 244,387,000 |
Commercial real estate | Non-residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 115,000 | 1,985,000 |
Commercial real estate | Non-residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 527,000 | 33,000 |
Commercial real estate | Non-residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,721,000 | 1,944,000 |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 55,926,000 | 30,379,000 |
Commercial real estate | Multifamily | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 55,926,000 | 30,379,000 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 35,646,000 | 39,239,000 |
Nonaccrual | 2,230,000 | 2,641,000 |
Residential | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 34,363,000 | 36,581,000 |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 57,000 | 1,351,000 |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 242,000 | 138,000 |
Residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 984,000 | 1,169,000 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 104,323,000 | 154,016,000 |
Nonaccrual | 687,000 | 366,000 |
Commercial and industrial | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 103,517,000 | 151,771,000 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 246,000 | 1,551,000 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 511,000 | |
Commercial and industrial | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 560,000 | 183,000 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 19,812,000 | 22,981,000 |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 382,088,000 | 376,260,000 |
Nonaccrual | 734,000 | 990,000 |
Consumer | Indirect automobile | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 374,729,000 | 367,929,000 |
Consumer | Indirect automobile | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,977,000 | 6,321,000 |
Consumer | Indirect automobile | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 715,000 | 1,063,000 |
Consumer | Indirect automobile | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 667,000 | 947,000 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 11,857,000 | 14,165,000 |
Nonaccrual | 270,000 | 346,000 |
Consumer | Home equity | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,429,000 | 13,506,000 |
Consumer | Home equity | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 149,000 | 310,000 |
Consumer | Home equity | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 106,000 | 101,000 |
Consumer | Home equity | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 173,000 | 248,000 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 7,955,000 | 8,816,000 |
Nonaccrual | 47,000 | 48,000 |
Consumer | Other consumer | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,702,000 | 8,663,000 |
Consumer | Other consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 153,000 | 98,000 |
Consumer | Other consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 53,000 | 7,000 |
Consumer | Other consumer | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 47,000 | $ 48,000 |
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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
With no related allowance recorded: | ||
Recorded Investment | $ 6,300 | $ 5,673 |
Unpaid Principal Balance | 8,236 | 7,463 |
Average Recorded Investment | 6,030 | 7,013 |
With an allowance recorded: | ||
Recorded Investment | 389 | 662 |
Unpaid Principal Balance | 395 | 683 |
Related Allowance | 68 | 153 |
Average Recorded Investment | 434 | 634 |
Total: | ||
Recorded Investment | 6,689 | 6,335 |
Unpaid Principal Balance | 8,631 | 8,146 |
Related Allowance | 68 | 153 |
Average Recorded Investment | 6,464 | 7,647 |
Commercial real estate | Non-residential | ||
With no related allowance recorded: | ||
Recorded Investment | 2,721 | 1,944 |
Unpaid Principal Balance | 3,797 | 2,973 |
Average Recorded Investment | 2,290 | 3,086 |
Total: | ||
Recorded Investment | 2,721 | 1,944 |
Unpaid Principal Balance | 3,797 | 2,973 |
Average Recorded Investment | 2,290 | 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 | 2,230 | 2,641 |
Unpaid Principal Balance | 2,786 | 3,086 |
Average Recorded Investment | 2,459 | 2,554 |
Total: | ||
Recorded Investment | 2,230 | 2,641 |
Unpaid Principal Balance | 2,786 | 3,086 |
Average Recorded Investment | 2,459 | 2,554 |
Commercial and industrial | ||
With no related allowance recorded: | ||
Recorded Investment | 687 | 345 |
Unpaid Principal Balance | 921 | 586 |
Average Recorded Investment | 674 | 426 |
With an allowance recorded: | ||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
Related Allowance | 11 | |
Average Recorded Investment | 148 | 30 |
Total: | ||
Recorded Investment | 687 | 366 |
Unpaid Principal Balance | 921 | 607 |
Related Allowance | 11 | |
Average Recorded Investment | 822 | 456 |
Consumer | Indirect automobile | ||
With no related allowance recorded: | ||
Recorded Investment | 345 | 397 |
Unpaid Principal Balance | 408 | 467 |
Average Recorded Investment | 219 | 293 |
With an allowance recorded: | ||
Recorded Investment | 389 | 593 |
Unpaid Principal Balance | 395 | 613 |
Related Allowance | 68 | 135 |
Average Recorded Investment | 286 | 591 |
Total: | ||
Recorded Investment | 734 | 990 |
Unpaid Principal Balance | 803 | 1,080 |
Related Allowance | 68 | 135 |
Average Recorded Investment | 505 | 884 |
Consumer | Home equity | ||
With no related allowance recorded: | ||
Recorded Investment | 270 | 346 |
Unpaid Principal Balance | 276 | 351 |
Average Recorded Investment | 338 | 449 |
Total: | ||
Recorded Investment | 270 | 346 |
Unpaid Principal Balance | 276 | 351 |
Average Recorded Investment | 338 | 449 |
Consumer | Other consumer | ||
With no related allowance recorded: | ||
Recorded Investment | 47 | |
Unpaid Principal Balance | 48 | |
Average Recorded Investment | 50 | 21 |
With an allowance recorded: | ||
Recorded Investment | 48 | |
Unpaid Principal Balance | 49 | |
Related Allowance | 7 | |
Average Recorded Investment | 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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for loan losses: | ||
Beginning balance | $ 11,633 | $ 5,954 |
(Credit to) provision for loan losses | (3,667) | 7,138 |
Loans charged-off | (2,084) | (2,507) |
Recoveries | 1,677 | 1,048 |
Ending balance | 7,559 | 11,633 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 68 | 153 |
Ending balance: Collectively evaluated for impairment | 7,491 | 11,480 |
Loan receivables: | ||
Ending balance | 853,458 | 876,616 |
Ending balance: Individually evaluated for impairment | 6,689 | 6,335 |
Ending balance: Collectively evaluated for impairment | 846,769 | 870,281 |
Indirect automobile | ||
Allowance for loan losses: | ||
Beginning balance | 4,974 | 3,117 |
(Credit to) provision for loan losses | (1,035) | 3,166 |
Loans charged-off | (2,048) | (2,307) |
Recoveries | 1,525 | 998 |
Ending balance | 3,416 | 4,974 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 68 | 135 |
Ending balance: Collectively evaluated for impairment | 3,348 | 4,839 |
Loan receivables: | ||
Ending balance | 382,088 | 376,260 |
Ending balance: Individually evaluated for impairment | 734 | 990 |
Ending balance: Collectively evaluated for impairment | 381,354 | 375,270 |
Commercial real estate | ||
Allowance for loan losses: | ||
Beginning balance | 5,354 | 2,009 |
(Credit to) provision for loan losses | (2,037) | 3,341 |
Recoveries | 4 | |
Ending balance | 3,317 | 5,354 |
Allowance for loan losses: | ||
Ending balance: Collectively evaluated for impairment | 3,317 | 5,354 |
Loan receivables: | ||
Ending balance | 311,589 | 284,120 |
Ending balance: Individually evaluated for impairment | 2,721 | 1,944 |
Ending balance: Collectively evaluated for impairment | 308,868 | 282,176 |
Residential | ||
Allowance for loan losses: | ||
Beginning balance | 117 | 99 |
(Credit to) provision for loan losses | (69) | 18 |
Recoveries | 6 | |
Ending balance | 54 | 117 |
Allowance for loan losses: | ||
Ending balance: Collectively evaluated for impairment | 54 | 117 |
Loan receivables: | ||
Ending balance | 35,646 | 39,239 |
Ending balance: Individually evaluated for impairment | 2,230 | 2,641 |
Ending balance: Collectively evaluated for impairment | 33,416 | 36,598 |
Commercial and industrial | ||
Allowance for loan losses: | ||
Beginning balance | 1,050 | 603 |
(Credit to) provision for loan losses | (414) | 585 |
Loans charged-off | (12) | (153) |
Recoveries | 101 | 15 |
Ending balance | 725 | 1,050 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 11 | |
Ending balance: Collectively evaluated for impairment | 725 | 1,039 |
Loan receivables: | ||
Ending balance | 104,323 | 154,016 |
Ending balance: Individually evaluated for impairment | 687 | 366 |
Ending balance: Collectively evaluated for impairment | 103,636 | 153,650 |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 138 | 126 |
(Credit to) provision for loan losses | (112) | 28 |
Loans charged-off | (24) | (47) |
Recoveries | 45 | 31 |
Ending balance | 47 | 138 |
Allowance for loan losses: | ||
Ending balance: Individually evaluated for impairment | 7 | |
Ending balance: Collectively evaluated for impairment | 47 | 131 |
Loan receivables: | ||
Ending balance | 19,812 | 22,981 |
Ending balance: Individually evaluated for impairment | 317 | 394 |
Ending balance: Collectively evaluated for impairment | 19,495 | 22,587 |
Consumer | Indirect automobile | ||
Loan receivables: | ||
Ending balance | $ 382,088 | $ 376,260 |
Loans and Allowance for loan _8
Loans and Allowance for loan losses (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount of loan | $ 1,440,000 | $ 1,571,000 | |
Number of loans default | loan | 3 | 3 | |
Number of new loans default | 0 | 0 | |
Balance of capitalized servicing rights | $ 2,633,000 | $ 2,390,000 | |
Aggregate balances of loans serviced to participants | 3,962,000 | 4,291,000 | |
Aggregate balances of loans serviced to third party | 314,953,000 | 300,700,000 | |
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 | 935,000 | 636,000 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 0 | 0 | |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans default | loan | 2 | ||
Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans default | loan | 1 | ||
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balances of loans held for sale | $ 3,950,000 | $ 2,718,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of changes in the carrying value of goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 199 | $ 241 |
Acquisition activity | 330 | |
Amortization | (96) | (42) |
Ending balance | 433 | 199 |
Accumulated amortization and impairment | $ 844 | $ 748 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets | ||
Amortization of Intangible Assets | $ 96 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets | |||
2022 | $ 99 | ||
2023 | 88 | ||
2024 | 79 | ||
2025 | 60 | ||
2026 | 29 | ||
Thereafter | 78 | ||
Total | $ 433 | $ 199 | $ 241 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of premises and equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 45,151 | $ 43,298 |
Less accumulated depreciation | (25,968) | (24,459) |
Net | 19,183 | 18,839 |
Depreciation | 1,560 | 1,379 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,732 | 3,732 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 27,151 | 26,431 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 14,107 | 13,042 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 161 | $ 93 |
Deposits (Schedule of deposits)
Deposits (Schedule of deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits | ||
Non-interest bearing demand deposits | $ 314,814 | $ 244,344 |
Interest bearing accounts: | ||
NOW | 158,615 | 141,580 |
Savings | 182,564 | 157,414 |
Money market | 289,107 | 185,383 |
Time certificates of deposit | 156,899 | 200,643 |
Total interest bearing accounts | 787,185 | 685,020 |
Total deposits | $ 1,101,999 | $ 929,364 |
Deposits (Schedule of contractu
Deposits (Schedule of contractual maturities of time certificates of deposit) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits | ||
Within 1 year | $ 122,861 | |
1 - 2 years | 16,598 | |
2 - 3 years | 7,843 | |
3 - 4 years | 7,674 | |
4 - 5 years | 1,923 | |
Total | $ 156,899 | $ 200,643 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits [Line Items] | ||
Reciprocal deposits | $ 21,083 | $ 30,012 |
Time certificates of deposit in denominations of $250 or greater | $ 23,704 | $ 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 | Dec. 31, 2021USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 18,041 |
Rate | 2.05% |
Due in one year | $ 16,768 |
Long term | 1,273 |
3 year amortizing on May 16, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 1,719 |
Rate | 2.49% |
Due in one year | $ 1,719 |
3 year bullet on May 16, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 2.44% |
Due in one year | $ 10,000 |
3 year amortizing February 28, 2023 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 6,322 |
Rate | 1.32% |
Due in one year | $ 5,049 |
Long term | $ 1,273 |
Long-Term Debt and FHLB Stock_3
Long-Term Debt and FHLB Stock (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020USD ($) | Dec. 31, 2021USD ($)subsidiary$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2005USD ($)$ / sharesshares | Oct. 01, 2021USD ($) | |
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||||
Advances from Federal Home Loan Banks | $ 18,041 | $ 50,674 | |||
Number Of Wholly Owned Subsidiaries | subsidiary | 1 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Funding received | $ (15,865) | $ (4,302) | |||
Atlantic Community Bankers Bank | |||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||||
Line of credit, maximum borrowing capacity | 5,000 | ||||
Line of credit facility, maximum amount outstanding during period | 0 | 0 | |||
Zions Bank | |||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||||
Line of credit, maximum borrowing capacity | 10,000 | ||||
Line of credit facility, maximum amount outstanding during period | 0 | 0 | |||
Pacific Community Bankers Bank | |||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 50,000 | ||||
Line of credit facility, maximum amount outstanding during period | $ 0 | $ 0 | |||
Paycheck Protection Program | |||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||||
Interest rate | 0.35% | ||||
Percentage of Principal Funding | 100.00% | ||||
Funding received | $ 70,100 | ||||
Subordinated Debt. | |||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||||
Interest rate, variable rate basis | 3-month LIBOR | ||||
Effective interest during period | 2.16% | 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] | |||||
Trust term | 30 years | ||||
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] | |||||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | $ 640,500 | $ 564,330 | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 170,385 | 175,011 | |||
Advances from Federal Home Loan Banks | 18,041 | ||||
Impairment Related To Federal Home Loan Stock | 0 | 0 | |||
Federal Home Loan Bank of New York ("FHLBNY") | Maturity Overnight [Member] | |||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | |||||
Advances from Federal Home Loan Banks | $ 0 | $ 0 |
Income Taxes (Schedule of compo
Income Taxes (Schedule of components of the provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current expense: | ||
Federal | $ 2,042 | $ 3,078 |
State | 284 | 12 |
Total current expense | 2,326 | 3,090 |
Deferred expense (benefit): | ||
Federal | (1,107) | 1,531 |
State | 1,306 | (558) |
Change in valuation allowance | (1,306) | 558 |
Total deferred expense (benefit) | 1,107 | (1,531) |
Total provision for income taxes | $ 3,433 | $ 1,559 |
Income Taxes (Schedule of diffe
Income Taxes (Schedule of differences between the provision for income taxes and statutory federal income tax rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Provision at statutory rate | $ 3,148 | $ 1,570 |
Tax exempt income | (125) | (79) |
State income taxes, net of federal income tax benefit | 192 | 12 |
Other, net | 218 | 56 |
Effective income tax | $ 3,433 | $ 1,559 |
Provision at statutory rate, Percent | 21.00% | 21.00% |
Tax exempt income, percent | (0.83%) | (1.06%) |
State income taxes, net of federal income tax benefit, percent | 1.28% | 0.16% |
Other, net, percent | 1.45% | 0.75% |
Effective income tax and rate, percent | 22.90% | 20.85% |
Income Taxes (Schedule of tax e
Income Taxes (Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,041 | $ 3,141 |
Deferred expenses | 39 | 47 |
Deferred compensation | 1,538 | 1,271 |
Unrecognized pension liability | 1,037 | 1,272 |
Postretirement liability | 920 | 954 |
Deferred loss on OREO | 83 | |
Deferred loan fees | 158 | |
Unrealized loss on securities | 727 | |
State tax NOLs | 990 | |
Other | 431 | 324 |
Gross deferred tax assets | 6,733 | 8,240 |
Deferred tax liabilities: | ||
Prepaid expenses | (262) | (217) |
Prepaid pension | (1,275) | (1,276) |
Deferred loan fees | (154) | |
Depreciation and amortization | (525) | (375) |
Unrealized gain on securities | (264) | |
Mortgage servicing rights | (711) | (645) |
Gross deferred tax liabilities | (2,927) | (2,777) |
Net deferred tax asset | 3,806 | 5,463 |
Deferred tax valuation allowance | (454) | (1,760) |
Deferred tax assets, net of allowance | $ 3,352 | $ 3,703 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes | ||
Retained earnings includes contingency reserve for loan losses | $ 1,534 | $ 1,534 |
Reserve balance under deferred income taxes | $ 414 | $ 414 |
Employee Benefits (Employee Sto
Employee Benefits (Employee Stock Ownership Plan (ESOP) Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2022 | Jan. 01, 2021 | Jan. 16, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 435,173 | 436,357 | |||
Committed to be allocated | 21,821 | 21,821 | |||
Compensation expense | $ 227 | $ 170 | |||
Employee Stock Ownership Plan (ESOP) | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 436,425 | ||||
ESOP share price | $ 10 | ||||
Terms of repurchase share under ESOP | 20 years | ||||
Interest rate | 3.25% | 3.25% | |||
Balance of ESOP loan | $ 3,917 | 4,087 | |||
Committed to be allocated | 21,821 | ||||
Fair value of unallocated shares | $ 3,954 | 3,358 | |||
Compensation expense | $ 227 | $ 170 |
Employee Benefits (Schedule of
Employee Benefits (Schedule of employee stock ownership plan) (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Employee Benefits | ||
Allocated | 43,642 | 21,821 |
Committed to be allocated | 21,821 | 21,821 |
Unallocated | 370,962 | 392,783 |
Paid out to participants | (1,252) | (68) |
Total shares | 435,173 | 436,357 |
Employee Benefits (Share-Based
Employee Benefits (Share-Based Compensation Plan Narrative) (Details) - 2020 EIP - USD ($) $ in Thousands | May 26, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
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 | ||
Allocated share-based compensation expense | $ 618 | $ 217 | |
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 | 100,480 | ||
Aggregate intrinsic value of options outstanding | $ 1,778 | ||
Aggregate intrinsic value of options exercised | 23 | ||
Aggregate intrinsic value of options exercisable | 582 | ||
Unrecognized compensation cost related to the nonvested stock options granted | $ 408 | ||
Period for Recognition | 1 year 7 months 28 days | ||
Aggregate fair value of options vested | $ 249 | ||
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 | 49,110 | ||
Period for Recognition | 1 year 7 months 24 days | ||
Unrecognized compensation cost related to the nonvested restricted stock awards granted | $ 609 | ||
Aggregate fair value of restricted stock awards vested | $ 608 |
Employee Benefits (Schedule o_2
Employee Benefits (Schedule of assumptions used and fair value for options granted) (Details) - 2020 EIP - Stock options | 12 Months Ended |
Dec. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 6 years |
Expected dividend yield | 0.00% |
Expected volatility | 25.45% |
Risk-free interest rate | 0.29% |
Fair value of options granted | $ 1.67 |
Employee Benefits (Summary of o
Employee Benefits (Summary of options) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted - Average Exercise Price | ||
Weighted - Average Exercise Price, beginning of year | $ 6.61 | |
Weighted - Average Exercise Price, end of period | $ 6.61 | |
2020 EIP | Stock options | ||
Number of Shares | ||
Options outstanding at beginning of year | 448,385 | |
Options exercised | (5,455) | |
Forfeited | (3,334) | |
Options outstanding at December 31, 2021 | 439,596 | 448,385 |
Options exercisable at December 31, 2021 | 143,997 | |
Weighted - Average Exercise Price | ||
Weighted - Average Exercise Price, beginning of year | $ 6.61 | |
Weighted - Average Exercise Price, exercised | 6.57 | |
Weighted - Average Exercise Price, forfeited | 6.57 | |
Weighted - Average Exercise Price, end of period | 6.62 | $ 6.61 |
Weighted - Average Exercise Price, exercisable | $ 6.62 | |
Weighted-Average Contractual Term | ||
Weighted-Average Contractual Term, outstanding | 8 years 7 months 17 days | 9 years 7 months 28 days |
Weighted-Average Contractual Term, exercisable | 8 years 6 months 21 days |
Employee Benefits (Summary of C
Employee Benefits (Summary of Company's restricted stock activity) (Details) - Restricted stock | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Shares | |
Balance at beginning of period (in shares) | shares | 169,769 |
Vested (in shares) | shares | (56,582) |
Forfeited (in shares) | shares | (667) |
Balance at end of period (in shares) | shares | 112,520 |
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 |
Forfeited (in dollars per share) | $ / shares | 6.57 |
Balance at end of period (in dollars per share) | $ / shares | $ 6.57 |
Employee Benefits (Schedule o_3
Employee Benefits (Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefits | |||
Projected and accumulated benefit obligation | $ (23,055) | $ (23,964) | $ (20,953) |
Plan assets at fair value | 22,839 | 22,634 | $ 20,628 |
Funded status included in accrued expenses and other liabilities | $ (216) | $ (1,330) |
Employee Benefits (Schedule o_4
Employee Benefits (Schedule of plan's funded status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit projected obligation: | ||
Projected benefit obligation at beginning of year | $ 23,964 | $ 20,953 |
Interest cost | 589 | 670 |
Actuarial (gain) loss | (842) | 2,941 |
Benefits paid | (656) | (600) |
Projected benefit obligation at end of year | 23,055 | 23,964 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 22,634 | 20,628 |
Actual return on plan assets | 861 | 2,606 |
Contributions | 0 | 0 |
Benefits paid | (656) | (600) |
Fair value of plan assets at end of year | 22,839 | 22,634 |
Funded status | (216) | (1,330) |
Defined Benefit Pension Plan. | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 22,634 | |
Fair value of plan assets at end of year | $ 22,839 | $ 22,634 |
Employee Benefits (Schedule o_5
Employee Benefits (Schedule of weighted-average assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits | ||
Discount rate | 2.80% | 2.50% |
Rate of compensation increase | ||
Discount rate | 2.50% | 3.25% |
Expected long-term return on plan assets | 4.50% | 5.50% |
Rate of compensation increase |
Employee Benefits (Schedule o_6
Employee Benefits (Schedule of amounts recognized in accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Employee Benefits | ||
Net actuarial loss | $ 4,938 | $ 6,055 |
Employee Benefits (Schedule o_7
Employee Benefits (Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits | ||
Interest cost | $ 589 | $ 670 |
Expected return on plan assets | (944) | (1,058) |
Amortization of unrecognized loss | 359 | 285 |
Net periodic cost (benefit) | $ 4 | $ (103) |
Employee Benefits (Schedule o_8
Employee Benefits (Schedule of fair value of pension plan assets, by fair value hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 22,839 | $ 22,634 | $ 20,628 |
Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 22,839 | 22,634 | |
Defined Benefit Pension Plan | Investment in separate accounts fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 15,689 | 15,189 | |
Defined Benefit Pension Plan | Investment in separate accounts equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 7,150 | 6,206 | |
Defined Benefit Pension Plan | Investment in separate accounts other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 1,239 | ||
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 22,839 | 22,634 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 15,689 | 15,189 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 7,150 | 6,206 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 1,239 |
Employee Benefits (Schedule o_9
Employee Benefits (Schedule of employer contributions and benefit payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits | ||
Defined Benefit Plan, Plan Assets, Benefits Paid | $ 656 | $ 600 |
Employee Benefits (Schedule _10
Employee Benefits (Schedule of benefit payments, which reflect expected future service) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits | ||
2022 | $ 820 | |
2023 | 840 | |
2024 | 910 | |
2025 | 940 | |
2026 | 960 | |
2027 - 2031 | 5,560 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Employee Benefits (Various Bene
Employee Benefits (Various Benefits - Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)fund | Dec. 31, 2020USD ($)fund | |
Schedule Of Employee Benefits [Line Items] | ||
Number of investment funds | fund | 11 | |
Number of equity funds | fund | 7 | 7 |
Number of bond funds | fund | 3 | 3 |
Percentage of internal revenue contribution | 25.00% | |
Percentage of internal revenue service limitations | 6.00% | |
Employer contribution in defined contribution plan | $ 1,074 | $ 993 |
Cash surrender value of life insurance | 29,131 | 18,877 |
Increase in cash surrender value of life insurance | 571 | 380 |
Estimated net actuarial loss | (842) | 2,941 |
Accrued expenses and other liabilities | 20,872 | 18,643 |
Non-interest expense | 35,512 | 30,065 |
Postretirement Life Insurance [Member] | ||
Schedule Of Employee Benefits [Line Items] | ||
Liability related to these postretirement benefits | 1,423 | 1,387 |
Postemployment benefit expense | 36 | 57 |
Postemployment Retirement Benefits [Member] | ||
Schedule Of Employee Benefits [Line Items] | ||
Non-interest expense | 75 | 86 |
Liability related to these postretirement benefits | 1,986 | 2,148 |
Officer [Member] | Deferred Compensation, Share-based Payments [Member] | ||
Schedule Of Employee Benefits [Line Items] | ||
Accrued expenses and other liabilities | 1,545 | 1,312 |
Non-interest expense | 589 | 399 |
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 | 2,877 | 2,483 |
Non-interest expense | $ 143 | $ 178 |
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 | |
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 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)location | Dec. 31, 2020USD ($) | |
Leases | ||
Number of leased branch offices | location | 8 | |
Number of leased administrative offices | location | 2 | |
Lessee options to extend | true | |
Weighted average remaining life of the lease terms | 12 years | 12 years 8 months 12 days |
Weighted average discount rate | 2.51% | 2.61% |
Operating lease costs | $ 731 | $ 588 |
Deferred rent liability | 145 | 176 |
Operating lease right-of-use asset | $ 7,839 | $ 6,289 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets. | Other Assets. |
Operating lease liability | $ 7,839 | $ 6,289 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Leases - Future minimum payment
Leases - Future minimum payments for operating leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases | ||
2022 | $ 850 | |
2023 | 854 | |
2024 | 857 | |
2025 | 833 | |
2026 | 728 | |
Thereafter | 5,070 | |
Total future minimum lease payments | 9,192 | |
Amounts representing interest | (1,353) | |
Present Value of Net Future Minimum Lease Payments | $ 7,839 | $ 6,289 |
Commitments and Contingencies_2
Commitments and Contingencies (Schedule of contract amounts represent off-balance sheet credit risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 115,078 | $ 98,127 |
Future loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 6,830 | 14,356 |
Construction | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 15,191 | 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 | 11,048 | 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 | 78,941 | 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 | $ 3,068 | $ 5,681 |
Derivatives (Schedule of inform
Derivatives (Schedule of information regarding derivatives) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)contract | Dec. 31, 2020USD ($)contract | |
Derivative [Line Items] | ||
Accrued interest receivable | $ 3,366 | $ 3,819 |
Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 26,842 | 1,875 |
Fair value | $ 644 | $ 40 |
Weighted average pay rates | 3.69% | 3.10% |
Weighted average receive rate | 2.26% | 2.22% |
Weighted average maturity (in years) | 9 years 9 months 10 days | 9 years 11 months 1 day |
Number of Contracts | contract | 7 | 1 |
Interest rate swap | Other assets | ||
Derivative [Line Items] | ||
Accrued interest receivable | $ 12 | $ 1 |
Interest rate swap | Other liabilities | ||
Derivative [Line Items] | ||
Accrued interest payable | $ 12 | $ 1 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of actual capital amounts and ratios) (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 137,495 | $ 129,568 |
Subsidiaries [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | 130,217 | 121,604 |
Rhinebeck Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 130,217 | $ 121,604 |
Total capital (to risk-weighted assets) Actual Ratio | 13.54 | 13.97 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 76,917 | $ 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 | $ 96,146 | $ 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 | $ 122,658 | $ 110,717 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 12.76 | 12.72 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 57,687 | $ 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 | $ 76,917 | $ 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 | $ 122,658 | $ 110,717 |
Common equity tier one capital (to risk weighted assets) Actual Ratio | 12.76 | 12.72 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 43,266 | $ 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 | $ 62,495 | $ 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 | $ 122,658 | $ 110,717 |
Tier 1 capital (to average assets) Actual Ratio | 9.65 | 9.95 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 50,865 | $ 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 | $ 63,582 | $ 55,662 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5 | 5 |
Regulatory Matters - Reconcilia
Regulatory Matters - Reconciliation of the Company's and Bank's stockholders' equity to total regulatory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Total stockholders' equity per financial statements | $ 125,969 | $ 116,499 | $ 109,882 |
Adjustments to Tier 1 and Common Equity Tier 1 capital: | |||
Accumulated other comprehensive loss | 6,635 | 3,791 | |
Goodwill disallowed | (2,235) | (1,410) | (1,410) |
Core deposit intangible | (433) | (199) | |
Total Tier 1 and Common Equity Tier 1 capital | 129,936 | 118,681 | |
Adjustments to total capital: | |||
Allowance for loan losses | 7,559 | 11,633 | $ 5,954 |
Overfunding of the allowance | (746) | ||
Total regulatory capital | 137,495 | 129,568 | |
Subsidiaries [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Total stockholders' equity per financial statements | 118,691 | 108,535 | |
Adjustments to Tier 1 and Common Equity Tier 1 capital: | |||
Accumulated other comprehensive loss | 6,635 | 3,791 | |
Goodwill disallowed | (2,235) | (1,410) | |
Core deposit intangible | (433) | (199) | |
Total Tier 1 and Common Equity Tier 1 capital | 122,658 | 110,717 | |
Adjustments to total capital: | |||
Allowance for loan losses | 7,559 | 11,633 | |
Overfunding of the allowance | (746) | ||
Total regulatory capital | 130,217 | 121,604 | |
Rhinebeck Bank | |||
Adjustments to total capital: | |||
Total regulatory capital | $ 130,217 | $ 121,604 |
Fair Value (Schedule of assets
Fair Value (Schedule of assets carried at fair value on a recurring basis) (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 280,927 | $ 102,973 |
Total liabilities | 644 | 40 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 59,825 | |
U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 176,491 | 89,270 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 24,722 | 7,161 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6,851 | 1,476 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 11,752 | 4,446 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 642 | 580 |
Unrealized gains (losses) on available for sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 280,283 | 102,933 |
Loan level interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 644 | 40 |
Total liabilities | 644 | 40 |
Quoted Prices Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 59,825 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 59,825 | |
Quoted Prices Active Markets for Identical Assets (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 | 59,825 | |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 220,957 | 102,813 |
Total liabilities | 644 | 40 |
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 | 176,491 | 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 | 24,722 | 7,161 |
Significant Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6,706 | 1,316 |
Significant Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 11,752 | 4,446 |
Significant Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 642 | 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 | 220,313 | 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 | 644 | 40 |
Total liabilities | 644 | 40 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investments | $ 389 | $ 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 | 321 | 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 | 321 | 509 |
Impaired loans, recorded investments | 389 | 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 | 139 | |
Nonrecurring basis | Quoted Prices Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | Quoted Prices Active Markets for Identical Assets (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 | Quoted Prices Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | |
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 | |
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 | 321 | 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 | $ 321 | 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 | $ 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 | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 321 | $ 648 |
Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | 139 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 321 | 648 |
Impaired Loans, Valuation Technique [Extensible List] | Appraisal of collateral | |
Other Real Estate Owned, Valuation Technique [Extensible List] | Appraisal of collateral | |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 321 | 509 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 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 | |
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 | |
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 | |
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 |
Fair Value (Schedule of carryin
Fair Value (Schedule of carrying value and fair values of the financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Quoted Prices Active Markets for Identical Assets (Level 1) | Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | $ 72,091 | $ 93,485 |
Available for sale securities | 59,825 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 72,091 | 93,485 |
Available for sale securities | 59,825 | |
Significant Observable Inputs (Level 2) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities | 220,313 | 102,773 |
Loan level interest rate swaps | 644 | 40 |
FHLB stock | 1,322 | 2,787 |
Financial Liabilities: | ||
Deposits | 1,101,999 | 929,364 |
Mortgagors escrow accounts | 9,130 | 8,494 |
FHLB advances | 18,041 | 50,674 |
Subordinated debt | 5,155 | 5,155 |
Loan level interest rate swaps | 644 | 40 |
Significant Observable Inputs (Level 2) | Fair Value | ||
Financial Assets: | ||
Available for sale securities | 220,313 | 102,773 |
Loan level interest rate swaps | 644 | 40 |
FHLB stock | 1,322 | 2,787 |
Financial Liabilities: | ||
Deposits | 1,083,541 | 941,460 |
Mortgagors escrow accounts | 9,137 | 8,501 |
FHLB advances | 18,151 | 51,468 |
Subordinated debt | 5,155 | 5,155 |
Loan level interest rate swaps | 644 | 40 |
Significant Unobservable Inputs (Level 3) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities | 145 | 160 |
Loans, net | 854,967 | 873,813 |
Mortgage servicing rights | 2,633 | 2,390 |
Significant Unobservable Inputs (Level 3) | Fair Value | ||
Financial Assets: | ||
Available for sale securities | 145 | 160 |
Loans, net | 855,542 | 876,699 |
Mortgage servicing rights | $ 4,892 | $ 3,569 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 116,499 | $ 109,882 |
Balance | $ 125,969 | $ 116,499 |
Income tax rate | 21.00% | 21.00% |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (3,791) | $ (4,104) |
Other comprehensive (loss) gain before reclassifications | (3,130) | 65 |
Amounts reclassified from accumulated other comprehensive loss | 286 | 248 |
Period change | (2,844) | 313 |
Balance | (6,635) | (3,791) |
Defined Benefit Pension Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (4,784) | (3,909) |
Other comprehensive (loss) gain before reclassifications | 600 | (1,100) |
Amounts reclassified from accumulated other comprehensive loss | 283 | 225 |
Period change | 883 | (875) |
Balance | (3,901) | (4,784) |
Unrealized (losses) gains on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 993 | (195) |
Other comprehensive (loss) gain before reclassifications | (3,730) | 1,165 |
Amounts reclassified from accumulated other comprehensive loss | 3 | 23 |
Period change | (3,727) | 1,188 |
Balance | $ (2,734) | $ 993 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss components) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Provision for income taxes | $ 3,433 | $ 1,559 |
Net Income | 11,558 | 5,917 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Income | (286) | (248) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest [Member] | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net securities losses reclassified into earnings | (4) | (29) |
Provision for income taxes | 1 | 6 |
Net Income | (3) | (23) |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of net loss and prior service costs | (358) | (285) |
Provision for income taxes | 75 | 60 |
Net Income | $ (283) | $ (225) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income applicable to common stock | $ 11,558 | $ 5,917 |
Average number of common shares outstanding | 11,151,064 | 11,133,290 |
Less: Average unearned ESOP shares | 381,873 | 403,694 |
Average number of common shares outstanding used to calculate basic earnings per common share | 10,769,191 | 10,729,596 |
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share | 10,954,366 | 10,739,841 |
Earnings per Common share: | ||
Basic (in dollars per share) | $ 1.07 | $ 0.55 |
Diluted (in dollars per share) | $ 1.06 | $ 0.55 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 448,385 | |
Nonvested options outstanding at an average weighted price (in dollars per share) | $ 6.61 | |
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 | 73,235 | 10,245 |
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 | 111,940 |