Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.01 per share | |
Trading Symbol | RBKB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,284,231 | |
Entity Central Index Key | 0001751783 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 15,242 | $ 13,294 |
Federal funds sold | 9,692 | 14,569 |
Interest bearing depository accounts | 11,209 | 3,521 |
Total cash and cash equivalents | 36,143 | 31,384 |
Available for sale securities (at fair value) | 223,659 | |
Available for sale securities (at fair value) | 222,172 | |
Loans receivable (net of allowance for credit losses of $9,103 and $7,943, respectively) | 994,368 | |
Loans receivable (net of allowance for credit losses of $9,103 and $7,943, respectively) | 1,004,762 | |
Federal Home Loan Bank stock | 5,450 | 3,258 |
Accrued interest receivable | 2,999 | 4,255 |
Cash surrender value of life insurance | 29,955 | 29,794 |
Deferred tax assets (net of valuation allowance of $547 and $450, respectively) | 9,879 | 10,131 |
Premises and equipment, net | 18,417 | 18,722 |
Goodwill | 2,235 | 2,235 |
Intangible assets, net | 310 | 334 |
Other assets | 19,064 | 17,837 |
Total assets | 1,351,386 | 1,335,977 |
Deposits | ||
Non-interest bearing | 269,743 | 283,563 |
Interest bearing | 823,781 | 846,370 |
Total deposits | 1,093,524 | 1,129,933 |
Mortgagors' escrow accounts | 8,670 | 9,732 |
Advances from the Federal Home Loan Bank | 106,450 | 57,723 |
Subordinated debt | 5,155 | 5,155 |
Accrued expenses and other liabilities | 26,870 | 25,302 |
Total liabilities | 1,240,669 | 1,227,845 |
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 11,284,231 and 11,284,565 at March 31, 2023 and December 31, 2022, respectively) | 113 | 113 |
Additional paid-in capital | 47,220 | 47,075 |
Unearned common stock held by the employee stock ownership plan | (3,437) | (3,491) |
Retained earnings | 96,789 | 96,624 |
Accumulated other comprehensive loss: | ||
Net unrealized loss on available for sale securities, net of taxes | (25,971) | (28,192) |
Defined benefit pension plan, net of taxes | (3,997) | (3,997) |
Total accumulated other comprehensive loss | (29,968) | (32,189) |
Total stockholders' equity | 110,717 | 108,132 |
Total liabilities and stockholders' equity | $ 1,351,386 | $ 1,335,977 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Consolidated Statements of Financial Condition | ||
Allowance for loan losses | $ 7,943 | |
Allowance for credit losses | $ 9,103 | 7,943 |
Deferred tax valuation allowance | $ 547 | $ 450 |
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 | 11,284,231 | 11,284,565 |
Common stock, shares outstanding | 11,284,231 | 11,284,565 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 13,395 | $ 10,081 |
Interest and dividends on securities | 1,018 | 874 |
Other income | 189 | 19 |
Total interest and dividend income | 14,602 | 10,974 |
Interest Expense | ||
Interest expense on deposits | 3,970 | 745 |
Interest expense on borrowings | 768 | 115 |
Total interest expense | 4,738 | 860 |
Net interest income | 9,864 | 10,114 |
Provision for credit losses | 221 | |
Provision for credit losses | 1,014 | |
Net interest income after provision for credit losses | 8,850 | 9,893 |
Non-interest Income | ||
Service charges on deposit accounts | 708 | 706 |
Net gain on sales of loans | 10 | 400 |
Increase in cash surrender value of life insurance | 160 | 157 |
Gain on disposal of premises and equipment | 17 | |
Investment advisory income | 309 | 340 |
Other | 172 | 108 |
Total non-interest income | 1,376 | 1,711 |
Non-interest Expense | ||
Salaries and employee benefits | 5,240 | 5,519 |
Occupancy | 1,079 | 1,098 |
Data processing | 472 | 486 |
Professional fees | 366 | 394 |
Marketing | 104 | 117 |
FDIC deposit insurance and other insurance | 282 | 182 |
Amortization of intangible assets | 24 | 27 |
Other | 1,636 | 1,282 |
Total non-interest expense | 9,203 | 9,105 |
Income before income taxes | 1,023 | 2,499 |
Provision for income taxes | 225 | 446 |
Net income | $ 798 | $ 2,053 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.07 | $ 0.19 |
Diluted (in dollars per share) | $ 0.07 | $ 0.19 |
Weighted average shares outstanding, basic | 10,881,885 | 10,815,348 |
Weighted average shares outstanding, diluted | 11,021,395 | 11,009,312 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Consolidated Statements of Comprehensive Income (Loss) | |||
Net Income | $ 798 | $ 2,053 | |
Other Comprehensive Income (Loss): | |||
Unrealized holding gains (losses) arising during the period | 2,811 | (13,847) | |
Net unrealized gains (losses) on available for sale securities | 2,811 | (13,847) | |
Tax effect | [1] | (590) | 2,908 |
Unrealized gains (losses) on available for sale securities, net of tax | 2,221 | (10,939) | |
Defined benefit pension plan: | |||
Reclassification adjustment for amortization of net actuarial loss | [2] | ||
Tax effect | [3] | ||
Other comprehensive income (loss): | 2,221 | (10,939) | |
Total Comprehensive Income (Loss) | $ 3,019 | $ (8,886) | |
[1] Includes $0 for both the three months ended March 31, 2023 and 2022, for tax effect of realized gains or losses which are included in the provision for income taxes on the consolidated statements of income. Included in other non-interest expense on the consolidated statements of income. Includes $0 for both the three months ended March 31, 2023 and 2022, respectively, for tax effect of amortization of net actuarial loss, which are included in the provision for income taxes on the consolidated statements of income. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - Related income tax expense - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Tax effect of realized gains or losses | $ 0 | $ 0 |
Tax effect of amortization of net actuarial loss | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-in Capital | Unearned Common Stock held by the ESOP Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Unearned Common Stock held by the ESOP | Retained Earnings Cumulative effect of change in accounting principle | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Loss | Cumulative effect of change in accounting principle | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Total |
Balance at Dec. 31, 2021 | $ 113 | $ 46,573 | $ (3,709) | $ 89,627 | $ (6,635) | $ 125,969 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 2,053 | 2,053 | ||||||||||||
Other comprehensive income (loss) | (10,939) | (10,939) | ||||||||||||
ESOP shares committed to be allocated | 4 | 54 | 58 | |||||||||||
Share-based compensation expense | 152 | 152 | ||||||||||||
Balance at Mar. 31, 2022 | 113 | 46,729 | (3,655) | 91,680 | (17,574) | 117,293 | ||||||||
Balance at Dec. 31, 2022 | $ 113 | 113 | $ 47,075 | 47,075 | $ (3,491) | (3,491) | $ (633) | $ 95,991 | 96,624 | $ (32,189) | (32,189) | $ (633) | $ 107,499 | 108,132 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 798 | 798 | ||||||||||||
Other comprehensive income (loss) | 2,221 | 2,221 | ||||||||||||
ESOP shares committed to be allocated | (5) | 54 | 49 | |||||||||||
Share-based compensation expense | 150 | 150 | ||||||||||||
Balance at Mar. 31, 2023 | $ 113 | $ 47,220 | $ (3,437) | $ 96,789 | $ (29,968) | $ 110,717 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | |||
Net income | $ 798 | $ 2,053 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization and accretion of premiums and discounts on investments, net | 72 | 79 | |
Provision for credit losses | 221 | ||
Provision for credit losses | 1,014 | ||
Loans originated for sale | (1,510) | (8,197) | |
Proceeds from sale of loans | 1,079 | 11,350 | |
Net gain on sale of loans | (10) | (400) | |
Amortization of intangible assets | 24 | 27 | $ 99 |
Depreciation and amortization | 358 | 380 | |
Gain from disposal of premises and equipment | (17) | ||
Deferred income tax benefit | (338) | (42) | |
Increase in cash surrender value of insurance | (160) | (157) | |
Net decrease in accrued interest receivable | 1,256 | 110 | |
Expense of earned ESOP shares | 49 | 58 | |
Share-based compensation expense | 150 | 152 | |
Net (increase) decrease in other assets | (1,227) | 7 | |
Net increase in accrued expenses and other liabilities | 1,568 | 1,859 | |
Net cash provided by operating activities | 3,106 | 7,500 | |
Cash Flows from Investing Activities | |||
Proceeds from maturities and principal repayments of securities | 4,226 | 16,536 | |
Purchases of securities | (27,216) | ||
Net (purchases) redemptions of FHLB Stock | (2,192) | 95 | |
Net increase in loans | (11,601) | (8,197) | |
Purchases of bank premises and equipment | (63) | (579) | |
Proceeds from disposal of premises and equipment | 27 | ||
Net cash used in investing activities | (9,603) | (19,361) | |
Cash Flows from Financing Activities | |||
Net (decrease) increase in demand deposits, NOW, money market and savings accounts | (104,127) | 25,019 | |
Net increase (decrease) in time deposits | 67,718 | (14,398) | |
Decrease in mortgagors' escrow accounts | (1,062) | (1,373) | |
Net increase (decrease) in short-term debt | 28,727 | (840) | |
Net increase (decrease) in long-term debt | 20,000 | (1,273) | |
Net cash provided by financing activities | 11,256 | 7,135 | |
Net increase (decrease) in cash and cash equivalents | 4,759 | (4,726) | |
Cash and Cash Equivalents | |||
Beginning balance | 31,384 | 72,091 | 72,091 |
Ending balance | 36,143 | 67,365 | $ 31,384 |
Supplemental Disclosures of Cash Flow Information | |||
Interest | 4,465 | 872 | |
Income taxes | $ 106 | $ 14 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Nature of Business and Significant Accounting Policies | |
Nature of Business and Significant Accounting Policies | 1. Nature of Business and Significant Accounting Policies The financial statements include the accounts of Rhinebeck Bancorp, Inc. (the “Company”), a stock holding company, and its wholly-owned subsidiary, Rhinebeck Bank (the “Bank”), a New York chartered stock savings bank. The primary purpose of the Company is to act as a holding company for the Bank. The Bank provides a full range of banking and financial services to consumer and commercial customers through its fourteen 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. The unaudited consolidated financial statements reflect all adjustments, which in the opinion of management are necessary for a fair presentation of the results of the interim periods and are of a normal and recurring nature. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other period. The unaudited financial statements and other financial information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements, and related notes, of Rhinebeck Bancorp, Inc. at and for the year ended December 31, 2022 contained in the Company’s Annual Report on Form 10-K, For more information regarding the Company’s significant accounting policies, see the Notes to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K Annual Report on Form 10-K Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the evaluation of goodwill for impairment and the valuation of deferred tax assets. 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. Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. Impact of Recent Accounting Pronouncements Adoption of New Accounting Standards in 2023 Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity. It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments. In addition, the CECL Standard changes the accounting for investment securities classified as available for sale ("AFS"), including a requirement that estimated credit losses on AFS securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell. The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2023: Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL Allowance for credit losses (loans) $ 580 $ 122 $ 458 ACL (unfunded credit commitments) 221 46 175 Total impact of CECL adoption $ 801 $ 168 $ 633 Effective January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. The Company adopted ASU 2022-02 on January 1, 2023. The adoption of ASU 2022-02 did not have a material effect on the Company’s consolidated financial statements. Emerging Growth Company Status As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company is taking advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s consolidated financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the recent accounting standards reflect those that relate to non-issuer companies. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investment Securities | |
Investment Securities | 2. Investment Securities The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: March 31, 2023 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,148 $ — $ (1,839) $ 38,309 U.S. government agency mortgage-backed securities–residential 169,662 — (27,133) 142,529 U.S. government agency securities 24,783 — (2,010) 22,773 Municipal securities (1) 5,110 — (271) 4,839 Corporate bonds 14,700 — (1,793) 12,907 Other 643 172 — 815 Total $ 255,046 $ 172 $ (33,046) $ 222,172 December 31, 2022 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,172 $ — $ (2,315) $ 37,857 U.S. government agency mortgage-backed securities–residential 173,926 — (29,392) 144,534 U.S. government agency securities 24,785 — (2,336) 22,449 Municipal securities (1) 5,117 — (331) 4,786 Corporate bonds 14,700 — (1,483) 13,217 Other 644 172 — 816 Total $ 259,344 $ 172 $ (35,857) $ 223,659 (1) The issuers of municipal securities are all within New York State. 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: March 31, 2023 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 $ — $ — $ 38,309 $ (1,839) $ 38,309 $ (1,839) U.S. government agency mortgage-backed securities-residential 503 (28) 142,026 (27,105) 142,529 (27,133) U.S. government agency securities — — 22,773 (2,010) 22,773 (2,010) Municipal securities 1,529 (1) 3,180 (270) 4,709 (271) Corporate bonds 3,693 (557) 9,214 (1,236) 12,907 (1,793) Total $ 5,725 $ (586) $ 215,502 $ (32,460) $ 221,227 $ (33,046) December 31, 2022 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 $ — $ — $ 37,857 $ (2,315) $ 37,857 $ (2,315) U.S. government agency mortgage-backed securities-residential 23,384 (2,711) 121,151 (26,681) 144,535 (29,392) U.S. government agency securities 9,160 (869) 13,289 (1,467) 22,449 (2,336) Municipal securities 1,529 (4) 3,127 (327) 4,656 (331) Corporate bonds 6,873 (627) 5,844 (856) 12,717 (1,483) Total $ 40,946 $ (4,211) $ 181,268 $ (31,646) $ 222,214 $ (35,857) At March 31, 2023, the Company had 241 individual available-for-sale securities in an unrealized loss position with unrealized losses totaling $33,046 with an aggregate depreciation of 12.99% from the Company’s amortized cost. On January 1, 2023, the Company adopted ASU 2016-13 and implemented the CECL methodology for allowance for credit losses on its investment securities available-for-sale. The new CECL methodology replaces the other-than-temporary impairment model that previously existed. The Company did not have a CECL day 1 impact attributable to its investment securities portfolio and did not have an allowance for credit losses on its investment securities available for sale as of March 31, 2023. The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses on asset backed securities, state and municipal securities, and corporate bonds have not been recognized into income because the issuers are of high credit quality, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was recorded as of March 31, 2023. Federal agency obligations, residential mortgage backed pass-through securities and commercial mortgage back pass-through securities are issued by U.S. Government agencies and U.S. Government sponsored enterprises. Although a government guarantee exists on these investments, these entities are not legally backed by the full faith and credit of the federal government. Nonetheless, at this time we do not foresee any set of circumstances in which the government would not fund its commitments on these investments. The amortized cost and fair value of available for sale debt securities at March 31, 2023 and December 31, 2022, 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: March 31, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 33,461 $ 32,484 $ 16,923 $ 16,512 After 1 but within 5 years 49,150 44,497 46,162 42,225 After 5 but within 10 years 2,130 1,847 21,689 19,572 After 10 years — — — — Total Maturities 84,741 78,828 84,774 78,309 Mortgage-backed securities 169,662 142,529 173,926 144,534 Other 643 815 644 816 Total $ 255,046 $ 222,172 $ 259,344 $ 223,659 At March 31, 2023 and December 31, 2022, available for sale securities with a carrying value of $15,027 and $15,407, respectively, were pledged to secure Federal Home Loan Bank of New York (“FHLB”) borrowings. In addition, at March 31, 2023 and December 31, 2022, $85,022 and $958 of available for sale securities were pledged to secure borrowings at the Federal Reserve Bank of New York (“FRB”), respectively. During the three months ended March 31, 2023 and 2022, there were no sales of available for sale securities and no realized gains or losses. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | 3. Loans and Allowance for Credit Losses As of and prior to December 31, 2022, loans receivable was accounted for under the incurred loss model. As of January 1, 2023, portfolio loans are accounted for under the expected loss model. Accordingly, some of the information presented is not comparable from period to period. A summary of the Company’s loan portfolio is as follows: March 31, December 31, 2023 2022 Commercial real estate loans: Construction $ 26,243 $ 20,329 Non-residential 298,600 282,422 Multi-family 71,520 67,777 Residential real estate loans 56,948 53,720 Commercial and industrial loans (1) 84,403 87,982 Consumer loans: Indirect automobile 443,962 457,223 Home equity 11,531 11,507 Other consumer 9,285 9,479 Total gross loans 1,002,492 990,439 Net deferred loan costs 11,373 11,872 Allowance for credit losses (9,103) (7,943) Total net loans $ 1,004,762 $ 994,368 (1) Includes $478 and $537 in U.S. Small Business Administration (“SBA”), paycheck protection program (“PPP”) loans at March 31, 2023 and December 31, 2022, respectively. At March 31, 2023 and December 31, 2022, the unpaid principal balances of loans held for sale included in the residential real estate category above were $688 and $247, respectively. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: March 31, 2023 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 $ 26,243 $ — $ — $ — $ 26,243 $ — Non-residential 294,711 1,826 715 1,348 298,600 1,817 Multifamily 70,791 729 — — 71,520 — Residential real estate 55,798 95 290 765 56,948 1,946 Commercial and industrial 83,957 271 — 175 84,403 1,150 Consumer: Indirect automobile 435,207 7,344 1,031 380 443,962 434 Home equity 11,188 167 — 176 11,531 176 Other consumer 9,130 92 15 48 9,285 48 Total $ 987,025 $ 10,524 $ 2,051 $ 2,892 $ 1,002,492 $ 5,571 December 31, 2022 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,329 $ — $ — $ — $ 20,329 $ — Non-residential 275,860 4,701 479 1,382 282,422 1,382 Multifamily 67,413 364 — — 67,777 — Residential real estate 51,476 1,417 246 581 53,720 1,794 Commercial and industrial 87,742 57 — 183 87,982 183 Consumer: Indirect automobile 444,418 10,714 1,389 702 457,223 797 Home equity 11,279 51 58 119 11,507 217 Other consumer 9,208 149 71 51 9,479 51 Total $ 967,725 $ 17,453 $ 2,243 $ 3,018 $ 990,439 $ 4,424 Effective January 1, 2023, the Company has modified its accounting policy for the ACL on loans as described below. The ACL on loans is management’s estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses recognized in the Consolidated Statements of Income and by recoveries of amounts previously charged off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on individually analyzed loans are generally recognized when the collateral or future cash flows are deemed to be insufficient to support the carrying value of the loan. The level of the ACL on loans is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the calculation of loss given default and the estimation of expected credit losses. As discussed further below, adjustments to historical information are made for differences in specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency levels, or terms, as well as for changes in environmental conditions, that may not be reflected in historical loss rates. Management employs a process and methodology to estimate the ACL on loans that evaluate both quantitative and qualitative factors. The methodology for evaluating quantitative factors consists of two basic components. The first component involves pooling loans into portfolio segments for loans that share similar risk characteristics. Pooled loan portfolio segments include commercial construction, commercial real estate, commercial and industrial, residential real estate (including homeowner construction), home equity, indirect automobile and other consumer loans. The second component involves individually analyzed loans that do not share similar risk characteristics with loans that are pooled into portfolio segments or are determined for foreclosure. For loans that are individually analyzed, the ACL is measured using a discounted cash flow (“DCF”) methodology based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or, if the loan is collateral-dependent, at the fair value of the collateral. Factors management considers when measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due. For collateral-dependent loans for which repayment is to be provided substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the collateral. For pooled loans, the Company utilizes a DCF methodology to estimate credit losses over the expected life of the loans. The life of the loan excludes expected extensions, renewals and modifications. Management utilizes the national unemployment rate as an econometric factor with a one-year forecast period and one-year straight-line reversion period to the historical mean of its macroeconomic assumption in order to estimate the probability of default for each loan portfolio segment. The DCF methodology combines the probability of default, the loss given default, maturity date and prepayment speeds to estimate a reserve for each loan. The sum of all the loan level reserves are aggregated for each portfolio segment and a loss rate factor is derived. Because the methodology is based upon historical experience and trends, current economic data, reasonable and supportable forecasts, as well as management’s judgment, factors may arise that result in different estimations. Deteriorating conditions or assumptions could lead to further increases in the ACL on loans. In addition, various regulatory agencies periodically review the ACL on loans. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. The ACL on loans is an estimate, and ultimate losses may vary from management’s estimate. The following table presents the Company’s amortized cost basis of individually analyzed loans and related ACL at March 31, 2023: March 31, 2023 Individually analyzed loans Related ACL Commercial real estate: Non-residential $ 1,817 $ — Residential real estate 1,946 — Commercial and industrial 1,150 710 Consumer: Indirect automobile 434 39 Home equity 274 — Other consumer 48 — Total $ 5,669 $ 749 The Company has one individually analyzed home equity loan of $98 that was accruing interest at March 31, 2023. The following table presents the Company’s amortized cost basis of only those individually analyzed loans with a related ACL at March 31, 2023: March 31, 2023 Individually analyzed loans Related ACL Commercial and industrial $ 975 $ 710 Consumer: Indirect automobile 201 39 Total $ 1,176 $ 749 Impaired loans disclosures presented below as of December 31, 2022 represent requirements prior to the adoption of CECL on January 1, 2023. The following table summarizes information regarding impaired loans by loan portfolio class: December 31, 2022 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 309 Consumer: Indirect automobile 371 439 — 336 Home equity 217 219 — 146 Other consumer 49 53 — 38 Total $ 3,996 $ 5,870 $ — $ 4,686 With an allowance recorded: Commercial real estate: Commercial and industrial $ — $ — $ — $ 114 Consumer: Indirect automobile 426 435 107 293 Other consumer 2 2 2 11 Total $ 428 $ 437 $ 109 $ 418 Total: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 423 Consumer: Indirect automobile 797 874 107 629 Home equity 217 219 — 146 Other consumer 51 55 2 49 Total $ 4,424 $ 6,307 $ 109 $ 5,104 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 loan’s performance under its contractual terms. 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 March 31, 2023 and December 31, 2022, the Company was servicing loans for participants aggregating $32,513 and $8,466, respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $612 and $625 at March 31, 2023 and December 31, 2022, respectively, and are all individually analyzed. As a result of the adoption of ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” on January 1, 2023, the Company had no reportable balances related to TDRs as of and for the three months ended March 31, 2023. The Company services certain loans that it has sold to third parties. The aggregate balances of loans serviced for others were $295,977 and $301,235 as of March 31, 2023 and December 31, 2022, respectively. Included in these loans serviced for others are loans serviced for the Federal Home Loan Mortgage Corporation with a recourse provision whereby the Company is obligated to bear all cost when a default, including foreclosure occurs. At March 31, 2023 and December 31, 2022, the maximum contingent liability associated with loans sold with recourse was $726 and $276, respectively, which is not recorded in the consolidated financial statements. Losses are borne in priority order by the borrower, private mortgage insurance and The balances of capitalized servicing rights, included in other assets at March 31, 2023 and December 31, 2022, were $2,292 and $2,409, respectively. Fair value exceeds carrying value, and thus, no impairment charges related to servicing rights were recognized during the period ended March 31, 2023 or the year ended December 31, 2022. Activity in the Company’s ACL for loans for the three months ended March 31, 2023 is summarized in the table below. The Adoption of the CECL Standard row presents adjustments recorded on January 1, 2023 through retained earnings. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Three months ended March 31, 2023 Allowance for credit losses: Beginning balance $ 3,031 $ 103 $ 881 $ 3,868 $ 60 $ 7,943 Adoption of CECL standard (860) 54 (383) 1,710 59 580 Provision for credit losses 170 13 703 104 4 994 Loans charged-off — — — (989) (22) (1,011) Recoveries — — — 585 12 597 Ending balance $ 2,341 $ 170 $ 1,201 $ 5,278 $ 113 $ 9,103 Ending balance: Loans individually analyzed $ — $ — $ 710 $ 39 $ — $ 749 Loans collectively analyzed $ 2,341 $ 170 $ 491 $ 5,239 $ 113 $ 8,354 Loan receivables: Ending balance $ 396,363 $ 56,948 $ 84,403 $ 443,962 $ 20,816 $ 1,002,492 Ending balance: Loans individually analyzed $ 1,817 $ 1,946 $ 1,150 $ 434 $ 322 $ 5,669 Loans collectively analyzed $ 394,546 $ 55,002 $ 83,253 $ 443,528 $ 20,494 $ 996,823 Activity in the Company’s allowance for loan losses for the three months ended March 31, 2022 and December 31, 2022 is summarized in the tables below. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Three months ended March 31, 2022 Allowance for loan losses: Beginning balance $ 3,317 $ 54 $ 725 $ 3,416 $ 47 $ 7,559 (Credit to) provision for loan losses (3) (109) 18 295 20 221 Loans charged-off — (44) — (647) (23) (714) Recoveries — 154 — 471 9 634 Ending balance $ 3,314 $ 55 $ 743 $ 3,535 $ 53 $ 7,700 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals December 31, 2022 Allowance for loan losses: Ending balance: Loans deemed impaired $ — $ — $ — $ 107 $ 2 $ 109 Loans not deemed impaired $ 3,031 $ 103 $ 881 $ 3,761 $ 58 $ 7,834 Loan receivables: Ending balance $ 370,528 $ 53,720 $ 87,982 $ 457,223 $ 20,986 $ 990,439 Ending balance: Loans deemed impaired $ 1,382 $ 1,794 $ 183 $ 797 $ 268 $ 4,424 Loans not deemed impaired $ 369,146 $ 51,926 $ 87,799 $ 456,426 $ 20,718 $ 986,015 The Company has also recorded an ACL for unfunded commitments, which was recorded in other liabilities; see Note 10 to the consolidated financial statements. The provision is recorded within the provision for credit losses on the Company’s income statement. The following table summarizes the provision for credit losses for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Provision for credit losses - loans $ 994 $ 221 Provision for credit losses - unfunded commitments 20 — Provision for credit losses $ 1,014 $ 221 In the normal course of business, the Company grants loans to officers, directors and other related parties. Balances and activity of such loans during the periods presented were not material. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, multifamily, construction and commercial loans. To assist in the review process, the Company engages an independent third-party to review a significant portion of loans within these segments. Consumer loans are rated as performing or non-performing based on payment status in accordance with regulatory retail credit guidance. Management uses the results of these reviews as part of its annual review process. In addition, management utilizes delinquency reports, the watch list and other loan reports to monitor credit quality of other loan segments. Credit Quality Indicators The Company uses the following definitions for risk ratings: Watch Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category, as well as gross write-offs, by fiscal year of origination as of March 31, 2023. Revolving Loans by Origination Year Loans 2023 2022 2021 2020 2019 Prior Amortized Cost Total Commercial construction Pass $ - $ 3,118 $ - $ - $ - $ - $ - $ 3,118 Watch - 11,649 11,476 - - - - 23,125 Total commercial construction - 14,767 11,476 - - - - 26,243 Commercial non-residential Pass $ 22,338 $ 44,753 $ 27,328 $ 18,121 $ 41,308 $ 51,378 $ - $ 205,226 Watch 2,372 9,489 8,043 12,943 8,699 41,064 - 82,610 Special mention - - - - 5,994 1,494 - 7,488 Substandard - - - - 485 2,791 - 3,276 Total commercial non-residential 24,710 54,242 35,371 31,064 56,486 96,727 - 298,600 Multifamily Pass $ 824 $ 19,017 $ 30,923 $ 2,152 $ 1,576 $ 5,222 $ - $ 59,714 Watch - - 755 - 1,302 9,749 - 11,806 Total multifamily 824 19,017 31,678 2,152 2,878 14,971 - 71,520 Residential Performing $ 4,801 $ 26,667 $ 2,619 $ 2,787 $ 2,670 $ 15,458 $ - $ 55,002 Non-performing - - - - - 1,946 - 1,946 Total residential 4,801 26,667 2,619 2,787 2,670 17,404 - 56,948 Commercial and industrial Pass $ 3,579 $ 23,853 $ 14,104 $ 2,141 $ 1,753 $ 5,301 $ 17,273 $ 68,004 Watch 492 2,705 319 765 802 2,644 6,780 14,507 Special mention - - 377 13 59 64 - 513 Substandard - - 975 - 153 203 48 1,379 Total commercial and industrial 4,071 26,558 15,775 2,919 2,767 8,212 24,101 84,403 Indirect automobile Performing $ 33,383 $ 206,728 $ 100,427 $ 52,928 $ 34,117 $ 15,945 $ - $ 443,528 Non-performing - 162 106 21 110 35 - 434 Total indirect automobile 33,383 206,890 100,533 52,949 34,227 15,980 - 443,962 Current-period gross write-offs - 359 303 158 94 75 - 989 Home equity Performing $ - $ - $ - $ - $ 35 $ 238 $ 11,082 $ 11,355 Non-performing - - - - - - 176 176 Total home equity - - - - 35 238 11,258 11,531 Other consumer Performing $ 829 $ 5,023 $ 1,520 $ 961 $ 256 $ 414 $ 234 $ 9,237 Non-performing - - - 23 - 25 - 48 Total other consumer 829 5,023 1,520 984 256 439 234 9,285 Current-period gross write-offs - 11 - 11 - - - 22 Total Loans Pass/performing $ 65,754 $ 329,159 $ 176,921 $ 79,090 $ 81,715 $ 93,956 $ 28,589 $ 855,184 Watch 2,864 23,843 20,593 13,708 10,803 53,457 6,780 132,048 Special mention 0 0 377 13 6,053 1,558 0 8,001 Substandard 0 0 975 0 638 2,994 48 4,655 Non-performing 0 162 106 44 110 2,006 176 2,604 Total Loans $ 68,618 $ 353,164 $ 198,972 $ 92,855 $ 99,319 $ 153,971 $ 35,593 $ 1,002,492 Total Current-period gross write-offs $ 0 $ 370 $ 303 $ 169 $ 94 $ 75 $ - $ 1,011 The following table presents 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, 2022 Pass Special Mention Substandard Total Commercial real estate: Construction $ 20,329 $ — $ — $ 20,329 Non-residential 271,491 7,904 3,027 282,422 Multifamily 67,777 — — 67,777 Residential real estate 52,265 — 1,455 53,720 Commercial and industrial 83,680 3,825 477 87,982 Consumer: Indirect automobile 456,112 — 1,111 457,223 Home equity 11,290 — 217 11,507 Other consumer 9,428 — 51 9,479 Total $ 972,372 $ 11,729 $ 6,338 $ 990,439 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets The changes in the carrying value of goodwill are as follows: Three Months Ended Year Ended March 31, December 31, 2023 2022 Beginning balance $ 2,235 $ 2,235 Activity during the period — — Ending balance $ 2,235 $ 2,235 The Company evaluated goodwill and determined that no write-down was required for the first three months of 2023 or the year ended December 31, 2022. The changes in the carrying value of the customer list and core deposit intangibles are as follows: Three Months Ended Year Ended March 31, December 31, 2023 2022 Beginning balance $ 334 $ 433 Amortization (24) (99) Ending balance $ 310 $ 334 Accumulated amortization and impairment $ 123 $ 99 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 are based upon the application of the income approach. The intangibles are expected to have useful lives of approximately 13 years. The Company recognized $24 and $27 of amortization expense related to its intangible assets for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the future amortization expense for amortizable intangible assets for the years ended December 31, was as follows: 2023 $ 64 2024 79 2025 60 2026 29 2027 21 Thereafter 57 Total $ 310 |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Premises and Equipment | |
Premises and Equipment | 5. Premises and Equipment Premises and equipment are summarized as follows: March 31, December 31, 2023 2022 Land $ 3,732 $ 3,732 Buildings and improvements 27,617 27,617 Furniture, fixtures and equipment 14,670 14,652 Construction in process 265 230 Total 46,284 46,231 Less accumulated depreciation (27,867) (27,509) Net $ 18,417 $ 18,722 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
Deposits | |
Deposits | 6. Deposits Deposits balances are summarized as follows: March 31, December 31, 2023 2022 Non-interest bearing demand deposits $ 269,743 $ 283,563 Interest bearing accounts: NOW 140,396 156,285 Savings 169,296 176,916 Money market 229,988 296,787 Time certificates of deposit 284,101 216,382 Total interest bearing accounts 823,781 846,370 Total deposits $ 1,093,524 $ 1,129,933 Time deposits included brokered deposits of $42,696 and $34,041 at March 31, 2023 and December 31, 2022, respectively. Included in time certificates of deposit at March 31, 2023 and December 31, 2022 were reciprocal deposits totaling $24,529 and $10,023, respectively, with original maturities of one Contractual maturities of time certificates of deposit at March 31, 2023 are summarized below: March 31, 2023 Within 1 year $ 240,967 1 – 2 years 37,879 2 – 3 years 2,983 3 – 4 years 1,259 4 – 5 years 1,013 Total $ 284,101 |
Long-Term Debt and FHLB Stock
Long-Term Debt and FHLB Stock | 3 Months Ended |
Mar. 31, 2023 | |
Long-Term Debt and FHLB Stock | |
Long-Term Debt and FHLB Stock | 7. Long-Term Debt and FHLB Stock FHLB Borrowings and Stock The Bank is a member of the FHLB. At March 31, 2023 and December 31, 2022, the Bank had access to a preapproved secured line of credit with the FHLB of $675,466 and $667,905, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At March 31, 2023 and December 31, 2022, the Bank had pledged assets of $202,035 and $195,455, respectively. The Company had no outstanding overnight line of credit balances with the FHLB at either March 31, 2023 or December 31, 2022. These borrowings would mature the following business day. The outstanding principal amounts and the related terms and rates at March 31, 2023 were as follows: Term Principal Maturity Rate Due in one year Long term Fixed short-term 10,000 April 3, 2023 4.72 % 10,000 — Fixed short-term 10,000 May 15, 2023 4.87 % 10,000 — Fixed medium-term 722 October 31, 2025 4.87 % — 722 Fixed medium-term 5,000 November 3, 2025 4.87 % — 5,000 Fixed medium-term 728 December 5, 2025 4.34 % — 728 Fixed short-term 10,000 September 5, 2023 5.38 % 10,000 — Fixed medium-term 20,000 March 20, 2025 4.47 % — 20,000 Fixed medium-term 20,000 March 21, 2024 5.18 % 20,000 — Fixed short-term 10,000 August 21, 2023 5.23 % 10,000 — Fixed short-term 10,000 October 23, 2023 5.23 % 10,000 — Fixed short-term 10,000 December 21, 2023 5.24 % 10,000 — Total $ 106,450 Weighted Average Rate 4.99 % $ 80,000 $ 26,450 The Bank is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Bank evaluates FHLB stock for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either March 31, 2023 or December 31, 2022. 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, to 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, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at three month LIBOR plus 2.00% (6.92% at March 31, 2023 and 6.69% at December 31, 2022) mature on May 23, 2035. After June 30, 2023, the three month LIBOR rate will be replaced by the three month CME term Secured Overnight Financing Rate (“SOFR”) as adjusted by adding 0.26%, the relevant spread adjustment. Other Borrowings The Bank has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at either March 31, 2023 or December 31, 2022. The Bank also has an unsecured, uncommitted $50,000 line of credit with Pacific Coast Bankers Bank. There were no advances outstanding under this line of credit at either March 31, 2023 or December 31, 2022. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Employee Benefits | |
Employee Benefits | 8. Employee Benefits Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering substantially all of its employees 21 years of age or older who had completed at least one year of service as of June 30, 2012, the effective date on which the Board of Directors of the Bank voted to freeze the defined benefit plan. The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated statements of financial condition: March 31, December 31, 2023 2022 Projected and accumulated benefit obligation $ (18,037) $ (17,138) Plan assets at fair value 17,729 16,906 Funded status included in accrued expenses and other liabilities $ (308) $ (232) The net periodic pension cost and amounts recognized in other expense are as follows: Three months ended March 31, 2023 2022 Interest cost $ 215 $ 158 Expected return on plan assets (232) (252) Amortization of unrecognized loss 93 67 Net periodic cost (benefit) $ 76 $ (27) 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 nine diversified investment funds. As of March 31, 2023, the investment funds included seven equity funds and two fixed income bond funds, each with its own investment objectives, investment strategies and risks, as detailed in the Company’s investment policy statement. The Company determines the appropriate strategic asset allocation versus plan liabilities, as governed by the investment policy statement. The assets of the plan are invested under the supervision of the Company’s investment committee in accordance with the investment policy statement. The investment options of the plan are chosen in a manner consistent with generally accepted standards of fiduciary responsibility. The investment performance of the Company’s individual investment managers, with the assistance of the Company’s investment consultant, is monitored on a quarterly basis and is reviewed at least annually relative to the objectives and guidelines as stated in the Company’s investment policy statement. The Company did not make a contribution to the plan in the first three months of 2023 or 2022. The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 12,015 $ — $ — $ 12,015 Equity 5,714 — — 5,714 Total assets at fair value $ 17,729 $ — $ — $ 17,729 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 11,600 $ — $ — $ 11,600 Equity 5,306 — — 5,306 Total assets at fair value $ 16,906 $ — $ — $ 16,906 The pooled separate accounts are valued at the net asset per unit based on either the observable net asset value of the underlying investment or the net asset value of the underlying pool of securities. Net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities and then divided by the number of shares outstanding. For a detailed disclosure on the Bank’s pension and employee benefits plans, please refer to Note 10 of the Company’s Consolidated Financial Statements for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K Defined Contribution Plan The Bank 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 Bank matching up to 6%, subject to Internal Revenue Service limitations. The Bank’s contributions charged to operations amounted to $286 and $294 for the three months ended March 31, 2023 and 2022, respectively. Deferred Compensation Arrangements Directors’ Plan, (formerly the “Trustees Plan”) The Bank’s Deferred Compensation Plan for Fees of Directors, as amended and restated effective January 1, 2005 (the “Directors’ Plan”), covers directors who elect to defer receipt of all or a portion of their fees until separation from service. Upon resignation, retirement, or death, the participant’s total deferred compensation, including earnings thereon, will be paid out. At March 31, 2023 and December 31, 2022, total amounts due to participants of $2,873 and $2,761, respectively, were included in accrued expenses and other liabilities. Total expenses related to the Directors’ Plan were $51 and $56 for the three months ended March 31, 2023 and 2022, respectively, which were included in other non-interest expense in the consolidated statements of income. Executive Long-Term Incentive and Retention Plan The Bank maintains an Executive Long-Term Incentive and Retention Plan (the “Executive Plan”). Participation in the Executive Plan is limited to officers of the Company designated as participants by the Board of Directors and who filed a properly completed and executed participation agreement in accordance with the terms of the Executive Plan. Under the Executive Plan, the Board of Directors may grant annual incentive awards equal to a percentage of a participant’s base salary at the rate in effect on the last day of the Executive 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 $1,593 and $1,580 at March 31, 2023 and December 31, 2022, respectively. The Company recognized expenses of $13 and $12 for the three-month periods ended March 31, 2023 and March 31, 2022, respectively, related to this plan, which are included in salaries and employee benefits expense in the consolidated statements of income. Other Director and Officer Postretirement Benefits The Company has individual fee continuation agreements with certain directors and a supplemental retirement agreement with an executive officer which provide for fixed postretirement benefits to be paid to the directors and the officer, or their beneficiaries, for periods ranging from 15 to 20 years. In addition, the Company has agreements with certain directors which provide for certain postretirement life insurance benefits. The liability related to these postretirement benefits is being accrued over the individual participants’ service period and aggregated $2,037 and $2,031 at March 31, 2023 and December 31, 2022, respectively. The Company recognized expenses of $16 and $19 for the three months ended March 31, 2023 and 2022, respectively, related to these benefits, which are included in other non-interest expenses in the consolidated statements of income. Employee Stock Ownership Plan On January 1, 2019, the Bank established an Employee Stock Ownership Plan (“ESOP”) to provide Company stock to eligible employees. The plan is a tax-qualified retirement plan for the benefit of Bank employees. On January 16, 2019, the Company granted a loan to the ESOP for the purchase of 436,425 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company is payable annually over 20 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (7.50% at January 1, 2023). Loan payments are funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. The balance of the ESOP loan at March 31, 2023 was $3,741. 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: March 31, December 31, 2023 2022 Allocated 87,284 65,463 Committed to be allocated 5,454 21,821 Unallocated 343,687 349,141 Paid out to participants (4,376) (4,376) Total shares 432,049 432,049 The fair value of unallocated shares was $2,629 at March 31, 2023. Total compensation expense recognized in connection with the ESOP for the three months ended March 31, 2023 and 2022 was $50 and $58, 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 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 represented 4.90% and 1.96%, respectively, of the number of shares of common stock issued in the stock offering of Rhinebeck Bancorp, including the shares issued to Rhinebeck Bancorp, MHC. Pursuant to terms of the EIP, on August 25, 2020, the Board of Directors granted restricted stock and stock options to employees and directors. All of the awards vest annually over a three-year period from the date of the grant and the term of each option is ten years. As of March 31, 2023, there were 102,813 stock options and 49,444 restricted stock awards that remain available for future grants. The fair value of each option granted under the EIP is estimated on the date of grant using the Black-Scholes Option-Pricing Model. The expected volatility is based on the historical volatility of a peer group of comparable SEC-reporting bank holding companies. The dividend yield assumption is based on the Company’s expectation of dividend payouts. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the date of grant. The Company has elected to recognize forfeitures as they occur. A summary of options under the 2020 EIP as of March 31, 2023 is presented below: Weighted - Weighted-Average Number of Average Remaining Contractual Shares Exercise Price Term (in Years) Options outstanding at beginning of year 437,930 $ 6.62 7.66 Granted - - - Exercised - - - Forfeited (667) 6.57 - Options outstanding at March 31, 2023 437,263 $ 6.62 7.40 Options exercisable at March 31, 2023 290,126 $ 6.62 7.40 At March 31, 2023, the aggregate intrinsic value of the stock options outstanding, which fluctuates based on changes in the fair market value of the Company’s stock, was $456 . 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 March 31, 2023. As of March 31, 2023, there was $101 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 0.42 years. The following table summarizes the Company’s restricted stock activity for the three months ended March 31, 2023: Weighted-Average Number Grant Date of Shares Fair Value per Share Non-vested restricted stock at beginning of year 56,266 $ 6.57 Granted - - Vested - - Forfeited (334) 6.57 Non-vested restricted stock at March 31, 2023 55,932 $ 6.57 As of March 31, 2023, there was $148 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 0.40 years. For the three months ended March 31, 2023, share-based compensation of options and restricted stock under the plan totaled $150. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Leases | 9. Leases As of March 31, 2023, the Company leased real estate for seven branch offices and two administrative offices under various lease agreements. All of our leases are classified as operating leases. The calculated amount of the right-of-use 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 right-of-use asset and lease liability. The weighted average remaining life of the lease terms for these leases was 11.4 years and 11.6 years as of March 31, 2023 and December 31, 2022, 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 2.58% in determining the lease liability as of both March 31, 2023 and December 31, 2022, respectively. For the three months ended March 31, 2023 and 2022, total operating lease costs were $178 and $195, respectively, and were included in occupancy and other expense. Deferred rent liability was $95 and $105 at March 31, 2023 and December 31, 2022, respectively. The right-of-use asset, included in other assets, was $6,750 and $6,896 and the corresponding lease liability, included in accrued expenses and other liabilities, was $6,750 and $6,896 as of March 31, 2023 and December 31, 2022, respectively. Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2023 were as follows: Years ending December 31: 2023 $ 571 2024 764 2025 739 2026 720 2027 676 Thereafter 4,394 Total future minimum lease payments 7,864 Amounts representing interest (1,114) Present Value of Net Future Minimum Lease Payments $ 6,750 |
Commitments and Contingencies a
Commitments and Contingencies and Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies and Derivatives | |
Commitments and Contingencies and Derivatives | 10. Commitments and Contingencies and Derivatives Legal Matters The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations. Employment Agreements The Company has entered into employment agreements with certain officers. The agreements provide for base salaries and incentive compensation based on performance criteria outlined in the agreements. The agreements also provide for insurance and various other benefits. Financial Instruments with Off-Balance-Sheet Risk In the normal course of business, the Company is a party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include standby letters of credit and commitments to extend credit, which include new loan commitments, undisbursed portions of construction loans and other lines of credit and loans sold with recourse. We are obligated under a recourse provision associated with certain first mortgage renovation loans sold in the secondary market. These financial instruments involve, to varying degrees, elements of 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. On January 1, 2023, the Company adopted ASU 2016-13 and implemented the CECL methodology for allowance for credit losses which requires the measurement of expected lifetime credit losses for unfunded commitments that are considered off-balance sheet credit exposures. The ACL on unfunded commitments is management’s estimate of expected credit losses over the expected contractual term (or life) in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. For each portfolio, estimated loss rates and funding factors are applied to the corresponding balance of unfunded commitments. For each portfolio, the estimated loss rates applied to unfunded commitments are the same quantitative and qualitative loss rates applied to the corresponding on-balance sheet amounts in determining the ACL on loans. The estimated funding factor applied to unfunded commitments represents the likelihood that the funding will occur and is based upon the Company’s average historical utilization rate for each portfolio. As a result of adopting the CECL standard, the Company recognized an increase in the ACL on unfunded commitments of $221 on January 1, 2023. Financial instruments whose contract amounts represent off-balance sheet credit risk are as follows: March 31, December 31, 2023 2022 Commitments to extend credit summarized as follows: Future loan commitments $ 5,973 $ 3,815 Undisbursed construction loans 33,989 30,274 Undisbursed home equity lines of credit 9,692 9,561 Undisbursed commercial and other line of credit 91,318 77,719 Standby letters of credit 5,244 4,571 Loans sold with recourse 726 276 Total $ 146,942 $ 126,216 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. Activity in the Company’s ACL for unfunded commitments for the three months ended March 31, 2023 is summarized in the table below and included in accrued expenses and other liabilities. The Adoption of the CECL Standard row presents adjustments recorded on January 1, 2023 through retained earnings. Commercial Commercial Real Estate Residential and Industrial Indirect Consumer Totals Three months ended March 31, 2023 Allowance for credit losses: Beginning balance $ — $ — $ — $ — $ — $ — Adoption of CECL standard 149 — 65 — 7 221 Provision for credit losses 19 — 1 — — 20 Ending balance $ 168 $ — $ 66 $ — $ 7 $ 241 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: March 31, December 31, 2023 2022 Notational amount $ 32,436 $ 26,541 Fair value $ 3,282 $ 3,578 Weighted average pay rates 4.10 % 3.69 % Weighted average receive rates 6.80 % 6.30 % Weighted average maturity (in years) 8.81 8.79 Number of Contracts 8 7 Not included in the table above are seven contracted forward rate swaps with a notional value of $67,411 and a fair value of $2,716 with effective dates at various points in 2023 and 2024. These forward swaps have a fixed weighted average pay rate of 5.19% and the related weighted average adjustable receive rates will be determined at the time the forward swaps become effective. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2023 | |
Regulatory Matters | |
Regulatory Matters | 11. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the tables below) of total, common equity Tier 1 and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of March 31, 2023 and December 31, 2022, that the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the Federal Deposit Insurance Corporation (“FDIC”) categorized the Bank as “well capitalized” under the regulatory framework. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, common equity Tier 1, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since then, which management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios were: To be Well Capitalized under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Rhinebeck Bank Total capital (to risk-weighted assets) $ 141,259 12.16 % $ 92,932 8.00 % $ 116,165 10.00 % Tier 1 capital (to risk-weighted assets) 131,914 11.36 % 69,699 6.00 % 92,932 8.00 % Common equity tier one capital (to risk weighted assets) 131,914 11.36 % 52,274 4.50 % 75,508 6.50 % Tier 1 capital (to average assets) 131,914 9.68 % 54,525 4.00 % 68,156 5.00 % December 31, 2022 Rhinebeck Bank Total capital (to risk-weighted assets) $ 139,257 12.25 % $ 90,980 8.00 % $ 113,725 10.00 % Tier 1 capital (to risk-weighted assets) 131,314 11.55 % 68,235 6.00 % 90,980 8.00 % Common equity tier one capital (to risk weighted assets) 131,314 11.55 % 51,176 4.50 % 73,921 6.50 % Tier 1 capital (to average assets) 131,314 9.75 % 53,868 4.00 % 67,335 5.00 % |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value | |
Fair Value | 12. Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. A description of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial and non-financial instruments not recorded at fair value, is set forth below. Cash and Cash Equivalents 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 individually analyzed loans are recorded to reflect partial write-downs based on the observable market price or current appraised value of collateral. Other Real Estate Owned Other real estate owned represents real estate acquired through foreclosure and is carried at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. These assets are included as Level 3 fair values, based upon the lowest level of input that is utilized in the fair value measurements. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated future net servicing income. Mortgage servicing rights are carried at the lower of amortized cost or estimated fair value and are included in other assets on the consolidated statements of financial condition. Deposits Deposit liabilities are carried at cost. The fair value of NOW, savings and money market deposits is the amount payable on demand at the reporting date. The fair value of time certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities estimated using local market data to a schedule of aggregated expected maturities on such deposits. Mortgagors’ Escrow Accounts The fair value is estimated using a discounted cash flow calculation that applies interest rates currently being offered on deposited escrow accounts of similarly expected maturities. Advances from the FHLB The fair value of the advances is estimated using a discounted cash flow calculation that applies current FHLB interest rates for advances of similar maturity to a schedule of maturities of such advances. Subordinated Debt Based on the floating rate characteristic of these instruments, the carrying value is considered to approximate fair value. Off-Balance-Sheet Instruments Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standings. Such amounts are not significant. Loan Level Interest Rate Swaps The fair value is based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves. The following tables detail the assets that are carried at fair value on a recurring basis as of the periods shown and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) March 31, 2023 Assets: U.S. Treasury securities $ 38,309 $ 38,309 $ — $ — U.S. government agency mortgage-backed securities-residential 142,529 — 142,529 — U.S. government agency securities 22,773 — 22,773 — Municipal securities 4,839 — 4,709 130 Corporate Bonds 12,907 — 12,907 — Other 815 — 815 — Total available for sale securities 222,172 38,309 183,733 130 Loan level interest rate swaps 5,998 — 5,998 — Total assets $ 228,170 $ 38,309 $ 189,731 $ 130 Liabilities: Loan level interest rate swaps $ 5,998 $ — $ 5,998 $ — Total liabilities $ 5,998 $ — $ 5,998 $ — December 31, 2022 Assets: U.S. Treasury securities $ 37,857 $ 37,857 $ — $ — U.S. government agency mortgage-backed securities – residential 144,534 — 144,534 — U.S. government agency securities 22,449 — 22,449 — Municipal securities 4,786 — 4,656 130 Corporate Bonds 13,217 — 13,217 — Other 816 — 816 — Total available for sale securities 223,659 37,857 185,672 130 Loan level interest rate swaps 4,548 — 4,548 — Total assets $ 228,207 $ 37,857 $ 190,220 $ 130 Liabilities: Loan level interest rate swaps $ 4,548 $ — $ 4,548 $ — Total liabilities $ 4,548 $ — $ 4,548 $ — The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022 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) March 31, 2023 Individually analyzed loans, with specific reserves $ 427 $ — $ — $ 427 Total $ 427 $ — $ — $ 427 December 31, 2022 Impaired loans, with specific reserves $ 319 $ — $ — $ 319 Total $ 319 $ — $ — $ 319 Loans that were individually analyzed using the fair value of the collateral had recorded investments of $1,176 and $428 with valuation allowances of $749 and $109 resulting in fair values of $427 and $319 at March 31, 2023 and December 31, 2022, respectively. The valuation allowance represents specific allocations to the allowance for credit losses. 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) March 31, 2023 Individually analyzed loans, with specific reserves $ 427 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% December 31, 2022 Impaired loans $ 319 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 estimated fair value amounts for 2023 and 2022 have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each year-end. The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. As of the following dates, the carrying value and fair values of the Company’s financial instruments were: March 31, December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and cash equivalents (Level 1) $ 36,143 $ 36,143 $ 31,384 $ 31,384 Available for sale securities (Level 1) 38,309 38,309 37,857 37,857 Available for sale securities (Level 2) 183,733 183,733 185,672 185,672 Available for sale securities (Level 3) 130 130 130 130 Loan level interest rate swaps (Level 2) 5,998 5,998 4,548 4,548 FHLB stock (Level 2) 5,450 5,450 3,258 3,258 Loans, net (Level 3) 1,004,762 961,407 994,368 953,432 Mortgage servicing rights (Level 3) 2,292 4,877 2,409 5,211 Financial Liabilities: Deposits (Level 2) 1,093,524 1,004,184 1,129,933 1,001,455 Mortgagors' escrow accounts (Level 2) 8,670 8,670 9,732 9,723 FHLB advances (Level 2) 106,450 106,369 57,723 57,739 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 5,998 5,998 4,548 4,548 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 was as follows: Accumulated Other Comprehensive Loss (1) Unrealized (losses) gains on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2022 $ (3,997) $ (28,192) $ (32,189) Other comprehensive income before reclassifications — 2,221 2,221 Period change — 2,221 2,221 Balance at March 31, 2023 $ (3,997) $ (25,971) $ (29,968) Balance at December 31, 2021 $ (3,901) $ (2,734) $ (6,635) Other comprehensive loss before reclassifications — (10,939) (10,939) Period change — (10,939) (10,939) Balance at March 31, 2022 $ (3,901) $ (13,673) $ (17,574) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0%. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share | |
Earnings Per Share | 14. Earnings Per Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents (such as options) were issued during the period. Unearned ESOP shares are not deemed outstanding for earnings per share calculations. Three Months Ended March 31, 2023 2022 Net income applicable to common stock $ 798 $ 2,053 Average number of common shares outstanding 11,228,299 11,183,583 Less: Average unearned ESOP shares 346,414 368,235 Average number of common shares outstanding used to calculate basic earnings per common share 10,881,885 10,815,348 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 34,822 60,159 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 104,688 133,805 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 11,021,395 11,009,312 Earnings per Common share: Basic $ 0.07 $ 0.19 Diluted $ 0.07 $ 0.19 |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Nature of Business and Significant Accounting Policies | |
Basis of Financial Statements Presentation | Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the evaluation of goodwill for impairment and the valuation of deferred tax assets. |
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. |
Reclassifications | Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements Adoption of New Accounting Standards in 2023 Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity. It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments. In addition, the CECL Standard changes the accounting for investment securities classified as available for sale ("AFS"), including a requirement that estimated credit losses on AFS securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell. The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2023: Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL Allowance for credit losses (loans) $ 580 $ 122 $ 458 ACL (unfunded credit commitments) 221 46 175 Total impact of CECL adoption $ 801 $ 168 $ 633 Effective January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. The Company adopted ASU 2022-02 on January 1, 2023. The adoption of ASU 2022-02 did not have a material effect on the Company’s consolidated financial statements. |
Emerging Growth Company Status | Emerging Growth Company Status As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company is taking advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s consolidated financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the recent accounting standards reflect those that relate to non-issuer companies. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update 2016-13 | |
Nature Of Business And Significant Accounting Policies [Line Items] | |
Schedule of adoption of CECL adjustments | Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL Allowance for credit losses (loans) $ 580 $ 122 $ 458 ACL (unfunded credit commitments) 221 46 175 Total impact of CECL adoption $ 801 $ 168 $ 633 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investment Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities | The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: March 31, 2023 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,148 $ — $ (1,839) $ 38,309 U.S. government agency mortgage-backed securities–residential 169,662 — (27,133) 142,529 U.S. government agency securities 24,783 — (2,010) 22,773 Municipal securities (1) 5,110 — (271) 4,839 Corporate bonds 14,700 — (1,793) 12,907 Other 643 172 — 815 Total $ 255,046 $ 172 $ (33,046) $ 222,172 December 31, 2022 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,172 $ — $ (2,315) $ 37,857 U.S. government agency mortgage-backed securities–residential 173,926 — (29,392) 144,534 U.S. government agency securities 24,785 — (2,336) 22,449 Municipal securities (1) 5,117 — (331) 4,786 Corporate bonds 14,700 — (1,483) 13,217 Other 644 172 — 816 Total $ 259,344 $ 172 $ (35,857) $ 223,659 (1) The issuers of municipal securities are all within New York State. |
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position | 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: March 31, 2023 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 $ — $ — $ 38,309 $ (1,839) $ 38,309 $ (1,839) U.S. government agency mortgage-backed securities-residential 503 (28) 142,026 (27,105) 142,529 (27,133) U.S. government agency securities — — 22,773 (2,010) 22,773 (2,010) Municipal securities 1,529 (1) 3,180 (270) 4,709 (271) Corporate bonds 3,693 (557) 9,214 (1,236) 12,907 (1,793) Total $ 5,725 $ (586) $ 215,502 $ (32,460) $ 221,227 $ (33,046) December 31, 2022 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 $ — $ — $ 37,857 $ (2,315) $ 37,857 $ (2,315) U.S. government agency mortgage-backed securities-residential 23,384 (2,711) 121,151 (26,681) 144,535 (29,392) U.S. government agency securities 9,160 (869) 13,289 (1,467) 22,449 (2,336) Municipal securities 1,529 (4) 3,127 (327) 4,656 (331) Corporate bonds 6,873 (627) 5,844 (856) 12,717 (1,483) Total $ 40,946 $ (4,211) $ 181,268 $ (31,646) $ 222,214 $ (35,857) |
Schedule of maturities of debt securities | March 31, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 33,461 $ 32,484 $ 16,923 $ 16,512 After 1 but within 5 years 49,150 44,497 46,162 42,225 After 5 but within 10 years 2,130 1,847 21,689 19,572 After 10 years — — — — Total Maturities 84,741 78,828 84,774 78,309 Mortgage-backed securities 169,662 142,529 173,926 144,534 Other 643 815 644 816 Total $ 255,046 $ 222,172 $ 259,344 $ 223,659 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Loans and Allowance for Credit Losses | |
Schedule of summary loan portfolio | March 31, December 31, 2023 2022 Commercial real estate loans: Construction $ 26,243 $ 20,329 Non-residential 298,600 282,422 Multi-family 71,520 67,777 Residential real estate loans 56,948 53,720 Commercial and industrial loans (1) 84,403 87,982 Consumer loans: Indirect automobile 443,962 457,223 Home equity 11,531 11,507 Other consumer 9,285 9,479 Total gross loans 1,002,492 990,439 Net deferred loan costs 11,373 11,872 Allowance for credit losses (9,103) (7,943) Total net loans $ 1,004,762 $ 994,368 (1) Includes $478 and $537 in U.S. Small Business Administration (“SBA”), paycheck protection program (“PPP”) loans at March 31, 2023 and December 31, 2022, respectively. |
Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: March 31, 2023 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 $ 26,243 $ — $ — $ — $ 26,243 $ — Non-residential 294,711 1,826 715 1,348 298,600 1,817 Multifamily 70,791 729 — — 71,520 — Residential real estate 55,798 95 290 765 56,948 1,946 Commercial and industrial 83,957 271 — 175 84,403 1,150 Consumer: Indirect automobile 435,207 7,344 1,031 380 443,962 434 Home equity 11,188 167 — 176 11,531 176 Other consumer 9,130 92 15 48 9,285 48 Total $ 987,025 $ 10,524 $ 2,051 $ 2,892 $ 1,002,492 $ 5,571 December 31, 2022 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,329 $ — $ — $ — $ 20,329 $ — Non-residential 275,860 4,701 479 1,382 282,422 1,382 Multifamily 67,413 364 — — 67,777 — Residential real estate 51,476 1,417 246 581 53,720 1,794 Commercial and industrial 87,742 57 — 183 87,982 183 Consumer: Indirect automobile 444,418 10,714 1,389 702 457,223 797 Home equity 11,279 51 58 119 11,507 217 Other consumer 9,208 149 71 51 9,479 51 Total $ 967,725 $ 17,453 $ 2,243 $ 3,018 $ 990,439 $ 4,424 |
Schedule of amortized cost basis of individually analyzed loans and related ACL | The following table presents the Company’s amortized cost basis of individually analyzed loans and related ACL at March 31, 2023: March 31, 2023 Individually analyzed loans Related ACL Commercial real estate: Non-residential $ 1,817 $ — Residential real estate 1,946 — Commercial and industrial 1,150 710 Consumer: Indirect automobile 434 39 Home equity 274 — Other consumer 48 — Total $ 5,669 $ 749 |
Schedule of amortized cost basis of only those individually analyzed loans with a related ACL | The following table presents the Company’s amortized cost basis of only those individually analyzed loans with a related ACL at March 31, 2023: March 31, 2023 Individually analyzed loans Related ACL Commercial and industrial $ 975 $ 710 Consumer: Indirect automobile 201 39 Total $ 1,176 $ 749 |
Schedule of information to impaired loans by loan portfolio class | Impaired loans disclosures presented below as of December 31, 2022 represent requirements prior to the adoption of CECL on January 1, 2023. The following table summarizes information regarding impaired loans by loan portfolio class: December 31, 2022 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 309 Consumer: Indirect automobile 371 439 — 336 Home equity 217 219 — 146 Other consumer 49 53 — 38 Total $ 3,996 $ 5,870 $ — $ 4,686 With an allowance recorded: Commercial real estate: Commercial and industrial $ — $ — $ — $ 114 Consumer: Indirect automobile 426 435 107 293 Other consumer 2 2 2 11 Total $ 428 $ 437 $ 109 $ 418 Total: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 423 Consumer: Indirect automobile 797 874 107 629 Home equity 217 219 — 146 Other consumer 51 55 2 49 Total $ 4,424 $ 6,307 $ 109 $ 5,104 |
Schedule of loan balances by segment | Activity in the Company’s ACL for loans for the three months ended March 31, 2023 is summarized in the table below. The Adoption of the CECL Standard row presents adjustments recorded on January 1, 2023 through retained earnings. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Three months ended March 31, 2023 Allowance for credit losses: Beginning balance $ 3,031 $ 103 $ 881 $ 3,868 $ 60 $ 7,943 Adoption of CECL standard (860) 54 (383) 1,710 59 580 Provision for credit losses 170 13 703 104 4 994 Loans charged-off — — — (989) (22) (1,011) Recoveries — — — 585 12 597 Ending balance $ 2,341 $ 170 $ 1,201 $ 5,278 $ 113 $ 9,103 Ending balance: Loans individually analyzed $ — $ — $ 710 $ 39 $ — $ 749 Loans collectively analyzed $ 2,341 $ 170 $ 491 $ 5,239 $ 113 $ 8,354 Loan receivables: Ending balance $ 396,363 $ 56,948 $ 84,403 $ 443,962 $ 20,816 $ 1,002,492 Ending balance: Loans individually analyzed $ 1,817 $ 1,946 $ 1,150 $ 434 $ 322 $ 5,669 Loans collectively analyzed $ 394,546 $ 55,002 $ 83,253 $ 443,528 $ 20,494 $ 996,823 Activity in the Company’s allowance for loan losses for the three months ended March 31, 2022 and December 31, 2022 is summarized in the tables below. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Three months ended March 31, 2022 Allowance for loan losses: Beginning balance $ 3,317 $ 54 $ 725 $ 3,416 $ 47 $ 7,559 (Credit to) provision for loan losses (3) (109) 18 295 20 221 Loans charged-off — (44) — (647) (23) (714) Recoveries — 154 — 471 9 634 Ending balance $ 3,314 $ 55 $ 743 $ 3,535 $ 53 $ 7,700 Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals December 31, 2022 Allowance for loan losses: Ending balance: Loans deemed impaired $ — $ — $ — $ 107 $ 2 $ 109 Loans not deemed impaired $ 3,031 $ 103 $ 881 $ 3,761 $ 58 $ 7,834 Loan receivables: Ending balance $ 370,528 $ 53,720 $ 87,982 $ 457,223 $ 20,986 $ 990,439 Ending balance: Loans deemed impaired $ 1,382 $ 1,794 $ 183 $ 797 $ 268 $ 4,424 Loans not deemed impaired $ 369,146 $ 51,926 $ 87,799 $ 456,426 $ 20,718 $ 986,015 |
Summary of provision for credit losses | The following table summarizes the provision for credit losses for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Provision for credit losses - loans $ 994 $ 221 Provision for credit losses - unfunded commitments 20 — Provision for credit losses $ 1,014 $ 221 |
Schedule of loans by risk rating and portfolio segment | The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category, as well as gross write-offs, by fiscal year of origination as of March 31, 2023. Revolving Loans by Origination Year Loans 2023 2022 2021 2020 2019 Prior Amortized Cost Total Commercial construction Pass $ - $ 3,118 $ - $ - $ - $ - $ - $ 3,118 Watch - 11,649 11,476 - - - - 23,125 Total commercial construction - 14,767 11,476 - - - - 26,243 Commercial non-residential Pass $ 22,338 $ 44,753 $ 27,328 $ 18,121 $ 41,308 $ 51,378 $ - $ 205,226 Watch 2,372 9,489 8,043 12,943 8,699 41,064 - 82,610 Special mention - - - - 5,994 1,494 - 7,488 Substandard - - - - 485 2,791 - 3,276 Total commercial non-residential 24,710 54,242 35,371 31,064 56,486 96,727 - 298,600 Multifamily Pass $ 824 $ 19,017 $ 30,923 $ 2,152 $ 1,576 $ 5,222 $ - $ 59,714 Watch - - 755 - 1,302 9,749 - 11,806 Total multifamily 824 19,017 31,678 2,152 2,878 14,971 - 71,520 Residential Performing $ 4,801 $ 26,667 $ 2,619 $ 2,787 $ 2,670 $ 15,458 $ - $ 55,002 Non-performing - - - - - 1,946 - 1,946 Total residential 4,801 26,667 2,619 2,787 2,670 17,404 - 56,948 Commercial and industrial Pass $ 3,579 $ 23,853 $ 14,104 $ 2,141 $ 1,753 $ 5,301 $ 17,273 $ 68,004 Watch 492 2,705 319 765 802 2,644 6,780 14,507 Special mention - - 377 13 59 64 - 513 Substandard - - 975 - 153 203 48 1,379 Total commercial and industrial 4,071 26,558 15,775 2,919 2,767 8,212 24,101 84,403 Indirect automobile Performing $ 33,383 $ 206,728 $ 100,427 $ 52,928 $ 34,117 $ 15,945 $ - $ 443,528 Non-performing - 162 106 21 110 35 - 434 Total indirect automobile 33,383 206,890 100,533 52,949 34,227 15,980 - 443,962 Current-period gross write-offs - 359 303 158 94 75 - 989 Home equity Performing $ - $ - $ - $ - $ 35 $ 238 $ 11,082 $ 11,355 Non-performing - - - - - - 176 176 Total home equity - - - - 35 238 11,258 11,531 Other consumer Performing $ 829 $ 5,023 $ 1,520 $ 961 $ 256 $ 414 $ 234 $ 9,237 Non-performing - - - 23 - 25 - 48 Total other consumer 829 5,023 1,520 984 256 439 234 9,285 Current-period gross write-offs - 11 - 11 - - - 22 Total Loans Pass/performing $ 65,754 $ 329,159 $ 176,921 $ 79,090 $ 81,715 $ 93,956 $ 28,589 $ 855,184 Watch 2,864 23,843 20,593 13,708 10,803 53,457 6,780 132,048 Special mention 0 0 377 13 6,053 1,558 0 8,001 Substandard 0 0 975 0 638 2,994 48 4,655 Non-performing 0 162 106 44 110 2,006 176 2,604 Total Loans $ 68,618 $ 353,164 $ 198,972 $ 92,855 $ 99,319 $ 153,971 $ 35,593 $ 1,002,492 Total Current-period gross write-offs $ 0 $ 370 $ 303 $ 169 $ 94 $ 75 $ - $ 1,011 The following table presents 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, 2022 Pass Special Mention Substandard Total Commercial real estate: Construction $ 20,329 $ — $ — $ 20,329 Non-residential 271,491 7,904 3,027 282,422 Multifamily 67,777 — — 67,777 Residential real estate 52,265 — 1,455 53,720 Commercial and industrial 83,680 3,825 477 87,982 Consumer: Indirect automobile 456,112 — 1,111 457,223 Home equity 11,290 — 217 11,507 Other consumer 9,428 — 51 9,479 Total $ 972,372 $ 11,729 $ 6,338 $ 990,439 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying value of goodwill | Three Months Ended Year Ended March 31, December 31, 2023 2022 Beginning balance $ 2,235 $ 2,235 Activity during the period — — Ending balance $ 2,235 $ 2,235 |
Schedule of changes in the carrying value of customer list and core deposit intangibles | Three Months Ended Year Ended March 31, December 31, 2023 2022 Beginning balance $ 334 $ 433 Amortization (24) (99) Ending balance $ 310 $ 334 Accumulated amortization and impairment $ 123 $ 99 |
Schedule of future amortization expense for amortizable intangible assets | 2023 $ 64 2024 79 2025 60 2026 29 2027 21 Thereafter 57 Total $ 310 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Premises and Equipment | |
Schedule of premises and equipment | March 31, December 31, 2023 2022 Land $ 3,732 $ 3,732 Buildings and improvements 27,617 27,617 Furniture, fixtures and equipment 14,670 14,652 Construction in process 265 230 Total 46,284 46,231 Less accumulated depreciation (27,867) (27,509) Net $ 18,417 $ 18,722 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deposits | |
Schedule of deposits | March 31, December 31, 2023 2022 Non-interest bearing demand deposits $ 269,743 $ 283,563 Interest bearing accounts: NOW 140,396 156,285 Savings 169,296 176,916 Money market 229,988 296,787 Time certificates of deposit 284,101 216,382 Total interest bearing accounts 823,781 846,370 Total deposits $ 1,093,524 $ 1,129,933 |
Schedule of contractual maturities of time certificates of deposit | March 31, 2023 Within 1 year $ 240,967 1 – 2 years 37,879 2 – 3 years 2,983 3 – 4 years 1,259 4 – 5 years 1,013 Total $ 284,101 |
Long-Term Debt and FHLB Stock (
Long-Term Debt and FHLB Stock (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 Fixed short-term 10,000 April 3, 2023 4.72 % 10,000 — Fixed short-term 10,000 May 15, 2023 4.87 % 10,000 — Fixed medium-term 722 October 31, 2025 4.87 % — 722 Fixed medium-term 5,000 November 3, 2025 4.87 % — 5,000 Fixed medium-term 728 December 5, 2025 4.34 % — 728 Fixed short-term 10,000 September 5, 2023 5.38 % 10,000 — Fixed medium-term 20,000 March 20, 2025 4.47 % — 20,000 Fixed medium-term 20,000 March 21, 2024 5.18 % 20,000 — Fixed short-term 10,000 August 21, 2023 5.23 % 10,000 — Fixed short-term 10,000 October 23, 2023 5.23 % 10,000 — Fixed short-term 10,000 December 21, 2023 5.24 % 10,000 — Total $ 106,450 Weighted Average Rate 4.99 % $ 80,000 $ 26,450 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Employee Benefits | |
Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition | March 31, December 31, 2023 2022 Projected and accumulated benefit obligation $ (18,037) $ (17,138) Plan assets at fair value 17,729 16,906 Funded status included in accrued expenses and other liabilities $ (308) $ (232) |
Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income | Three months ended March 31, 2023 2022 Interest cost $ 215 $ 158 Expected return on plan assets (232) (252) Amortization of unrecognized loss 93 67 Net periodic cost (benefit) $ 76 $ (27) |
Schedule of fair value of pension plan assets, by fair value hierarchy | The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 12,015 $ — $ — $ 12,015 Equity 5,714 — — 5,714 Total assets at fair value $ 17,729 $ — $ — $ 17,729 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 11,600 $ — $ — $ 11,600 Equity 5,306 — — 5,306 Total assets at fair value $ 16,906 $ — $ — $ 16,906 |
Schedule of employee stock ownership plan | March 31, December 31, 2023 2022 Allocated 87,284 65,463 Committed to be allocated 5,454 21,821 Unallocated 343,687 349,141 Paid out to participants (4,376) (4,376) Total shares 432,049 432,049 |
Summary of options | A summary of options under the 2020 EIP as of March 31, 2023 is presented below: Weighted - Weighted-Average Number of Average Remaining Contractual Shares Exercise Price Term (in Years) Options outstanding at beginning of year 437,930 $ 6.62 7.66 Granted - - - Exercised - - - Forfeited (667) 6.57 - Options outstanding at March 31, 2023 437,263 $ 6.62 7.40 Options exercisable at March 31, 2023 290,126 $ 6.62 7.40 |
Summary of Company's restricted stock activity | The following table summarizes the Company’s restricted stock activity for the three months ended March 31, 2023: Weighted-Average Number Grant Date of Shares Fair Value per Share Non-vested restricted stock at beginning of year 56,266 $ 6.57 Granted - - Vested - - Forfeited (334) 6.57 Non-vested restricted stock at March 31, 2023 55,932 $ 6.57 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Schedule of future minimum payments for operating leases | Years ending December 31: 2023 $ 571 2024 764 2025 739 2026 720 2027 676 Thereafter 4,394 Total future minimum lease payments 7,864 Amounts representing interest (1,114) Present Value of Net Future Minimum Lease Payments $ 6,750 |
Commitments and Contingencies_2
Commitments and Contingencies and Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies and Derivatives | |
Schedule of contract amounts represent off-balance sheet credit risk | March 31, December 31, 2023 2022 Commitments to extend credit summarized as follows: Future loan commitments $ 5,973 $ 3,815 Undisbursed construction loans 33,989 30,274 Undisbursed home equity lines of credit 9,692 9,561 Undisbursed commercial and other line of credit 91,318 77,719 Standby letters of credit 5,244 4,571 Loans sold with recourse 726 276 Total $ 146,942 $ 126,216 |
Schedule of unfunded commitments | Commercial Commercial Real Estate Residential and Industrial Indirect Consumer Totals Three months ended March 31, 2023 Allowance for credit losses: Beginning balance $ — $ — $ — $ — $ — $ — Adoption of CECL standard 149 — 65 — 7 221 Provision for credit losses 19 — 1 — — 20 Ending balance $ 168 $ — $ 66 $ — $ 7 $ 241 |
Schedule of information regarding derivatives | March 31, December 31, 2023 2022 Notational amount $ 32,436 $ 26,541 Fair value $ 3,282 $ 3,578 Weighted average pay rates 4.10 % 3.69 % Weighted average receive rates 6.80 % 6.30 % Weighted average maturity (in years) 8.81 8.79 Number of Contracts 8 7 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Rhinebeck Bank Total capital (to risk-weighted assets) $ 141,259 12.16 % $ 92,932 8.00 % $ 116,165 10.00 % Tier 1 capital (to risk-weighted assets) 131,914 11.36 % 69,699 6.00 % 92,932 8.00 % Common equity tier one capital (to risk weighted assets) 131,914 11.36 % 52,274 4.50 % 75,508 6.50 % Tier 1 capital (to average assets) 131,914 9.68 % 54,525 4.00 % 68,156 5.00 % December 31, 2022 Rhinebeck Bank Total capital (to risk-weighted assets) $ 139,257 12.25 % $ 90,980 8.00 % $ 113,725 10.00 % Tier 1 capital (to risk-weighted assets) 131,314 11.55 % 68,235 6.00 % 90,980 8.00 % Common equity tier one capital (to risk weighted assets) 131,314 11.55 % 51,176 4.50 % 73,921 6.50 % Tier 1 capital (to average assets) 131,314 9.75 % 53,868 4.00 % 67,335 5.00 % |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value | |
Schedule of assets carried at fair value on a recurring basis | 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) March 31, 2023 Assets: U.S. Treasury securities $ 38,309 $ 38,309 $ — $ — U.S. government agency mortgage-backed securities-residential 142,529 — 142,529 — U.S. government agency securities 22,773 — 22,773 — Municipal securities 4,839 — 4,709 130 Corporate Bonds 12,907 — 12,907 — Other 815 — 815 — Total available for sale securities 222,172 38,309 183,733 130 Loan level interest rate swaps 5,998 — 5,998 — Total assets $ 228,170 $ 38,309 $ 189,731 $ 130 Liabilities: Loan level interest rate swaps $ 5,998 $ — $ 5,998 $ — Total liabilities $ 5,998 $ — $ 5,998 $ — December 31, 2022 Assets: U.S. Treasury securities $ 37,857 $ 37,857 $ — $ — U.S. government agency mortgage-backed securities – residential 144,534 — 144,534 — U.S. government agency securities 22,449 — 22,449 — Municipal securities 4,786 — 4,656 130 Corporate Bonds 13,217 — 13,217 — Other 816 — 816 — Total available for sale securities 223,659 37,857 185,672 130 Loan level interest rate swaps 4,548 — 4,548 — Total assets $ 228,207 $ 37,857 $ 190,220 $ 130 Liabilities: Loan level interest rate swaps $ 4,548 $ — $ 4,548 $ — Total liabilities $ 4,548 $ — $ 4,548 $ — |
Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis | The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022 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) March 31, 2023 Individually analyzed loans, with specific reserves $ 427 $ — $ — $ 427 Total $ 427 $ — $ — $ 427 December 31, 2022 Impaired loans, with specific reserves $ 319 $ — $ — $ 319 Total $ 319 $ — $ — $ 319 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | 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) March 31, 2023 Individually analyzed loans, with specific reserves $ 427 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% December 31, 2022 Impaired loans $ 319 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 | As of the following dates, the carrying value and fair values of the Company’s financial instruments were: March 31, December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and cash equivalents (Level 1) $ 36,143 $ 36,143 $ 31,384 $ 31,384 Available for sale securities (Level 1) 38,309 38,309 37,857 37,857 Available for sale securities (Level 2) 183,733 183,733 185,672 185,672 Available for sale securities (Level 3) 130 130 130 130 Loan level interest rate swaps (Level 2) 5,998 5,998 4,548 4,548 FHLB stock (Level 2) 5,450 5,450 3,258 3,258 Loans, net (Level 3) 1,004,762 961,407 994,368 953,432 Mortgage servicing rights (Level 3) 2,292 4,877 2,409 5,211 Financial Liabilities: Deposits (Level 2) 1,093,524 1,004,184 1,129,933 1,001,455 Mortgagors' escrow accounts (Level 2) 8,670 8,670 9,732 9,723 FHLB advances (Level 2) 106,450 106,369 57,723 57,739 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 5,998 5,998 4,548 4,548 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Loss. | |
Schedule of accumulated other comprehensive loss components | The activity in accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 was as follows: Accumulated Other Comprehensive Loss (1) Unrealized (losses) gains on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2022 $ (3,997) $ (28,192) $ (32,189) Other comprehensive income before reclassifications — 2,221 2,221 Period change — 2,221 2,221 Balance at March 31, 2023 $ (3,997) $ (25,971) $ (29,968) Balance at December 31, 2021 $ (3,901) $ (2,734) $ (6,635) Other comprehensive loss before reclassifications — (10,939) (10,939) Period change — (10,939) (10,939) Balance at March 31, 2022 $ (3,901) $ (13,673) $ (17,574) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0%. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | Three Months Ended March 31, 2023 2022 Net income applicable to common stock $ 798 $ 2,053 Average number of common shares outstanding 11,228,299 11,183,583 Less: Average unearned ESOP shares 346,414 368,235 Average number of common shares outstanding used to calculate basic earnings per common share 10,881,885 10,815,348 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 34,822 60,159 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 104,688 133,805 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 11,021,395 11,009,312 Earnings per Common share: Basic $ 0.07 $ 0.19 Diluted $ 0.07 $ 0.19 |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2023 item | |
Nature of Business and Significant Accounting Policies | |
Number of branches | 14 |
Number of representative offices | 2 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies (Adoption of new accounting standard 2023) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 01, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Nature Of Business And Significant Accounting Policies [Line Items] | ||||
Change in Consolidated Statement of Condition | $ 1,023 | $ 2,499 | ||
Effective income tax | 225 | $ 446 | ||
Retained earnings | $ 96,789 | $ 96,624 | ||
Accounting Standards Update 2016-13 | Adoption of CECL Standard | ||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||
Change in Consolidated Statement of Condition | $ 801 | |||
Effective income tax | 168 | |||
Retained earnings | 633 | |||
Accounting Standards Update 2016-13 | Adoption of CECL Standard | Allowance for credit losses (loans) | ||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||
Change in Consolidated Statement of Condition | 580 | |||
Effective income tax | 122 | |||
Retained earnings | 458 | |||
Accounting Standards Update 2016-13 | Adoption of CECL Standard | ACL (Unfunded credit commitments) | ||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||
Change in Consolidated Statement of Condition | 221 | |||
Effective income tax | 46 | |||
Retained earnings | $ 175 |
Investment Securities (Schedule
Investment Securities (Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | $ 255,046 | |
Gross Unrealized Gains | 172 | $ 172 |
Gross Unrealized Losses | (33,046) | (35,857) |
Fair Value | 222,172 | |
Amortized Cost | 259,344 | |
Fair Value | 223,659 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 40,148 | |
Gross Unrealized Losses | (1,839) | (2,315) |
Fair Value | 38,309 | |
Amortized Cost | 40,172 | |
Fair Value | 37,857 | |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 169,662 | |
Gross Unrealized Losses | (27,133) | (29,392) |
Fair Value | 142,529 | |
Amortized Cost | 173,926 | |
Fair Value | 144,534 | |
U.S. government agency securities | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 24,783 | |
Gross Unrealized Losses | (2,010) | (2,336) |
Fair Value | 22,773 | |
Amortized Cost | 24,785 | |
Fair Value | 22,449 | |
Municipal securities | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 5,110 | |
Gross Unrealized Losses | (271) | (331) |
Fair Value | 4,839 | |
Amortized Cost | 5,117 | |
Fair Value | 4,786 | |
Corporate Bonds | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 14,700 | |
Gross Unrealized Losses | (1,793) | (1,483) |
Fair Value | 12,907 | |
Amortized Cost | 14,700 | |
Fair Value | 13,217 | |
Other | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 643 | |
Gross Unrealized Gains | 172 | 172 |
Fair Value | $ 815 | |
Amortized Cost | 644 | |
Fair Value | $ 816 |
Investment Securities (Schedu_2
Investment Securities (Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 5,725 | $ 40,946 |
Less Than 12 Months Unrealized Losses | (586) | (4,211) |
12 Months or Longer Fair Value | 215,502 | 181,268 |
12 Months or Longer Unrealized Losses | (32,460) | (31,646) |
Fair Value | 221,227 | 222,214 |
Unrealized Losses | (33,046) | (35,857) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
12 Months or Longer Fair Value | 38,309 | 37,857 |
12 Months or Longer Unrealized Losses | (1,839) | (2,315) |
Fair Value | 38,309 | 37,857 |
Unrealized Losses | (1,839) | (2,315) |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 503 | 23,384 |
Less Than 12 Months Unrealized Losses | (28) | (2,711) |
12 Months or Longer Fair Value | 142,026 | 121,151 |
12 Months or Longer Unrealized Losses | (27,105) | (26,681) |
Fair Value | 142,529 | 144,535 |
Unrealized Losses | (27,133) | (29,392) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 9,160 | |
Less Than 12 Months Unrealized Losses | (869) | |
12 Months or Longer Fair Value | 22,773 | 13,289 |
12 Months or Longer Unrealized Losses | (2,010) | (1,467) |
Fair Value | 22,773 | 22,449 |
Unrealized Losses | (2,010) | (2,336) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 1,529 | 1,529 |
Less Than 12 Months Unrealized Losses | (1) | (4) |
12 Months or Longer Fair Value | 3,180 | 3,127 |
12 Months or Longer Unrealized Losses | (270) | (327) |
Fair Value | 4,709 | 4,656 |
Unrealized Losses | (271) | (331) |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 3,693 | 6,873 |
Less Than 12 Months Unrealized Losses | (557) | (627) |
12 Months or Longer Fair Value | 9,214 | 5,844 |
12 Months or Longer Unrealized Losses | (1,236) | (856) |
Fair Value | 12,907 | 12,717 |
Unrealized Losses | $ (1,793) | $ (1,483) |
Investment Securities (Schedu_3
Investment Securities (Schedule of maturities of debt securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Within 1 year | $ 33,461 | $ 16,923 |
After 1 but within 5 years | 49,150 | 46,162 |
After 5 but within 10 years | 2,130 | 21,689 |
Total Maturities | 84,741 | 84,774 |
Mortgage-backed securities | 169,662 | 173,926 |
Other | 643 | 644 |
Amortized Cost | 255,046 | |
Amortized Cost | 259,344 | |
Fair Value | ||
Within 1 year | 32,484 | 16,512 |
After 1 but within 5 years | 44,497 | 42,225 |
After 5 but within 10 years | 1,847 | 19,572 |
Total Maturities | 78,828 | 78,309 |
Mortgage-backed securities | 142,529 | 144,534 |
Other | 815 | 816 |
Fair Value | $ 222,172 | |
Fair Value | $ 223,659 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) security | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Number of individual available-for-sale securities with unrealized losses | security | 241 | ||
Unrealized Losses | $ 33,046 | $ 35,857 | |
Aggregate percentage of depreciation | 12.99% | ||
Debt Securities, Available-for-Sale, Allowance for Credit Loss | $ 0 | ||
Proceeds from the sale of available for sale securities and calls | 0 | $ 0 | |
Gains on sales of investment securities | 0 | 0 | |
Losses on sales of investment securities | 0 | $ 0 | |
Federal Home Loan Bank Advances [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | 15,027 | 15,407 | |
Asset Pledged as Collateral [Member] | Federal Reserve Bank Advances [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | $ 85,022 | $ 958 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses (Schedule of summary loan portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | $ 1,002,492 | |||
Net deferred loan costs | 11,373 | |||
Allowance for credit losses | (9,103) | $ (7,943) | ||
Total net loans | 1,004,762 | |||
Total gross loans | 990,439 | |||
Net deferred loan costs | 11,872 | |||
Allowance for loan losses | (7,943) | $ (7,700) | $ (7,559) | |
Total net loans | 994,368 | |||
Indirect automobile | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 443,962 | |||
Allowance for credit losses | (5,278) | (3,868) | ||
Total gross loans | 457,223 | |||
Allowance for loan losses | (3,535) | (3,416) | ||
Commercial real estate | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 396,363 | |||
Allowance for credit losses | (2,341) | (3,031) | ||
Total gross loans | 370,528 | |||
Allowance for loan losses | (3,314) | (3,317) | ||
Commercial real estate | Construction | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 26,243 | |||
Total gross loans | 20,329 | |||
Commercial real estate | Non-residential | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 298,600 | |||
Total gross loans | 282,422 | |||
Commercial real estate | Multifamily | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 71,520 | |||
Total gross loans | 67,777 | |||
Residential | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 56,948 | |||
Allowance for credit losses | (170) | (103) | ||
Total gross loans | 53,720 | |||
Allowance for loan losses | (55) | (54) | ||
Commercial and industrial | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 84,403 | |||
Allowance for credit losses | (1,201) | (881) | ||
Total gross loans | 87,982 | |||
Allowance for loan losses | (743) | (725) | ||
Commercial and industrial | Small Business Administration Paycheck Protection Program | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 478 | |||
Total gross loans | 537 | |||
Consumer | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 20,816 | |||
Allowance for credit losses | (113) | (60) | ||
Total gross loans | 20,986 | |||
Allowance for loan losses | $ (53) | $ (47) | ||
Consumer | Indirect automobile | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 443,962 | |||
Total gross loans | 457,223 | |||
Consumer | Home equity | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | 11,531 | |||
Total gross loans | 11,507 | |||
Consumer | Other consumer | ||||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||||
Total gross loans | $ 9,285 | |||
Total gross loans | $ 9,479 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses (Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | $ 1,002,492 | |
Total gross loans | $ 990,439 | |
Non-accrual | 5,571 | |
Nonaccrual | 4,424 | |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 987,025 | |
Total gross loans | 967,725 | |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 10,524 | |
Total gross loans | 17,453 | |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 2,051 | |
Total gross loans | 2,243 | |
Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 2,892 | |
Total gross loans | 3,018 | |
Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 443,962 | |
Total gross loans | 457,223 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 396,363 | |
Total gross loans | 370,528 | |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 26,243 | |
Total gross loans | 20,329 | |
Commercial real estate | Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 26,243 | |
Total gross loans | 20,329 | |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 298,600 | |
Total gross loans | 282,422 | |
Non-accrual | 1,817 | |
Nonaccrual | 1,382 | |
Commercial real estate | Non-residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 294,711 | |
Total gross loans | 275,860 | |
Commercial real estate | Non-residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1,826 | |
Total gross loans | 4,701 | |
Commercial real estate | Non-residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 715 | |
Total gross loans | 479 | |
Commercial real estate | Non-residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1,348 | |
Total gross loans | 1,382 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 71,520 | |
Total gross loans | 67,777 | |
Commercial real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 70,791 | |
Total gross loans | 67,413 | |
Commercial real estate | Multifamily | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 729 | |
Total gross loans | 364 | |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 56,948 | |
Total gross loans | 53,720 | |
Non-accrual | 1,946 | |
Nonaccrual | 1,794 | |
Residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 55,798 | |
Total gross loans | 51,476 | |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 95 | |
Total gross loans | 1,417 | |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 290 | |
Total gross loans | 246 | |
Residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 765 | |
Total gross loans | 581 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 84,403 | |
Total gross loans | 87,982 | |
Non-accrual | 1,150 | |
Nonaccrual | 183 | |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 83,957 | |
Total gross loans | 87,742 | |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 271 | |
Total gross loans | 57 | |
Commercial and industrial | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 175 | |
Total gross loans | 183 | |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 20,816 | |
Total gross loans | 20,986 | |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 443,962 | |
Total gross loans | 457,223 | |
Non-accrual | 434 | |
Nonaccrual | 797 | |
Consumer | Indirect automobile | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 435,207 | |
Total gross loans | 444,418 | |
Consumer | Indirect automobile | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 7,344 | |
Total gross loans | 10,714 | |
Consumer | Indirect automobile | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1,031 | |
Total gross loans | 1,389 | |
Consumer | Indirect automobile | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 380 | |
Total gross loans | 702 | |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 11,531 | |
Total gross loans | 11,507 | |
Non-accrual | 176 | |
Nonaccrual | 217 | |
Consumer | Home equity | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 11,188 | |
Total gross loans | 11,279 | |
Consumer | Home equity | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 167 | |
Total gross loans | 51 | |
Consumer | Home equity | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | |
Total gross loans | 58 | |
Consumer | Home equity | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 176 | |
Total gross loans | 119 | |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 9,285 | |
Total gross loans | 9,479 | |
Non-accrual | 48 | |
Nonaccrual | 51 | |
Consumer | Other consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 9,130 | |
Total gross loans | 9,208 | |
Consumer | Other consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 92 | |
Total gross loans | 149 | |
Consumer | Other consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 15 | |
Total gross loans | 71 | |
Consumer | Other consumer | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | $ 48 | |
Total gross loans | $ 51 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses (Schedule of amortized cost basis of individually analyzed loans and related ACL) (Details) $ in Thousands | Mar. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) |
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | $ 5,669 | $ 4,424 |
Related ACL | 749 | |
Indirect automobile | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 434 | 797 |
Related ACL | 39 | |
Home equity | Consumer Borrower [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 98 | |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 1,817 | 1,382 |
Commercial real estate | Non-residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 1,817 | |
Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 1,946 | 1,794 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 1,150 | 183 |
Related ACL | 710 | |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 322 | $ 268 |
Consumer | Indirect automobile | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | 434 | |
Related ACL | 39 | |
Consumer | Home equity | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | $ 274 | |
Consumer | Home equity | Consumer Borrower [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Financing Receivable Individually Evaluated For Impairment, Number Of Contracts | loan | 1 | |
Consumer | Other consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Individually analyzed loans | $ 48 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses (Schedule of amortized cost basis of only those individually analyzed loans with a related ACL) (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Loans and Leases Receivable Disclosure [Line Items] | |
Individually analyzed loans | $ 1,176 |
Related ACL | 749 |
Commercial and industrial | |
Loans and Leases Receivable Disclosure [Line Items] | |
Individually analyzed loans | 975 |
Related ACL | 710 |
Consumer | Indirect automobile | |
Loans and Leases Receivable Disclosure [Line Items] | |
Individually analyzed loans | 201 |
Related ACL | $ 39 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses (Schedule of information to impaired loans by loan portfolio class) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
With no related allowance recorded: | |
Recorded Investment | $ 3,996 |
Unpaid Principal Balance | 5,870 |
Average Recorded Investment | 4,686 |
With an allowance recorded: | |
Recorded Investment | 428 |
Unpaid Principal Balance | 437 |
Related Allowance | 109 |
Average Recorded Investment | 418 |
Total: | |
Recorded Investment | 4,424 |
Unpaid Principal Balance | 6,307 |
Related Allowance | 109 |
Average Recorded Investment | 5,104 |
Commercial real estate | Non-residential | |
With no related allowance recorded: | |
Recorded Investment | 1,382 |
Unpaid Principal Balance | 2,472 |
Average Recorded Investment | 1,967 |
Total: | |
Recorded Investment | 1,382 |
Unpaid Principal Balance | 2,472 |
Average Recorded Investment | 1,967 |
Residential | |
With no related allowance recorded: | |
Recorded Investment | 1,794 |
Unpaid Principal Balance | 2,445 |
Average Recorded Investment | 1,890 |
Total: | |
Recorded Investment | 1,794 |
Unpaid Principal Balance | 2,445 |
Average Recorded Investment | 1,890 |
Commercial and industrial | |
With no related allowance recorded: | |
Recorded Investment | 183 |
Unpaid Principal Balance | 242 |
Average Recorded Investment | 309 |
With an allowance recorded: | |
Average Recorded Investment | 114 |
Total: | |
Recorded Investment | 183 |
Unpaid Principal Balance | 242 |
Average Recorded Investment | 423 |
Consumer | Indirect automobile | |
With no related allowance recorded: | |
Recorded Investment | 371 |
Unpaid Principal Balance | 439 |
Average Recorded Investment | 336 |
With an allowance recorded: | |
Recorded Investment | 426 |
Unpaid Principal Balance | 435 |
Related Allowance | 107 |
Average Recorded Investment | 293 |
Total: | |
Recorded Investment | 797 |
Unpaid Principal Balance | 874 |
Related Allowance | 107 |
Average Recorded Investment | 629 |
Consumer | Home equity | |
With no related allowance recorded: | |
Recorded Investment | 217 |
Unpaid Principal Balance | 219 |
Average Recorded Investment | 146 |
Total: | |
Recorded Investment | 217 |
Unpaid Principal Balance | 219 |
Average Recorded Investment | 146 |
Consumer | Other consumer | |
With no related allowance recorded: | |
Recorded Investment | 49 |
Unpaid Principal Balance | 53 |
Average Recorded Investment | 38 |
With an allowance recorded: | |
Recorded Investment | 2 |
Unpaid Principal Balance | 2 |
Related Allowance | 2 |
Average Recorded Investment | 11 |
Total: | |
Recorded Investment | 51 |
Unpaid Principal Balance | 55 |
Related Allowance | 2 |
Average Recorded Investment | $ 49 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Aggregate balances of loans serviced to participants | $ 32,513,000 | $ 8,466,000 |
Amount of consumer mortgages and loans secured by residential real estate properties in process of foreclosure | 612,000 | 625,000 |
Aggregate balances of loans serviced to third party | 295,977,000 | 301,235,000 |
Balance of capitalized servicing rights | 2,292,000 | 2,409,000 |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 0 | 0 |
Financial instruments represent off-balance sheet credit risk, asset | 146,942,000 | 126,216,000 |
Accounting standards update 2022-02 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR reportable balance | 0 | |
Loans sold with recourse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | 726,000 | 276,000 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balances of loans held for sale | $ 688,000 | $ 247,000 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses (Schedule of loan balances by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 01, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Allowance for loan losses: | ||||
Beginning balance | $ 7,943 | $ 7,943 | ||
Provision for credit losses | 994 | |||
Loans charged-off | (1,011) | |||
Recoveries | 597 | |||
Ending balance | 9,103 | |||
Allowance for loan losses: | ||||
Beginning balance | 7,943 | 7,943 | $ 7,559 | |
(Credit to) provision for loan losses | 221 | |||
Loans charged-off | (714) | |||
Recoveries | 634 | |||
Ending balance | 7,700 | |||
Allowance for loan losses: | ||||
Provision for credit losses - unfunded commitments | 221 | 20 | ||
Loans individually analyzed | 749 | |||
Loans collectively analyzed | 8,354 | |||
Ending balance: Individually evaluated for impairment | $ 109 | |||
Ending balance: Collectively evaluated for impairment | 7,834 | |||
Loan receivables: | ||||
Ending balance | 990,439 | |||
Ending balance | 1,002,492 | |||
Ending balance: Individually evaluated for impairment | 5,669 | 4,424 | ||
Ending balance: Collectively evaluated for impairment | 996,823 | 986,015 | ||
Indirect automobile | ||||
Allowance for loan losses: | ||||
Beginning balance | 3,868 | 3,868 | ||
Provision for credit losses | 104 | |||
Loans charged-off | (989) | |||
Recoveries | 585 | |||
Ending balance | 5,278 | |||
Allowance for loan losses: | ||||
Beginning balance | 3,416 | |||
(Credit to) provision for loan losses | 295 | |||
Loans charged-off | (647) | |||
Recoveries | 471 | |||
Ending balance | 3,535 | |||
Allowance for loan losses: | ||||
Loans individually analyzed | 39 | |||
Loans collectively analyzed | 5,239 | |||
Ending balance: Individually evaluated for impairment | 107 | |||
Ending balance: Collectively evaluated for impairment | 3,761 | |||
Loan receivables: | ||||
Ending balance | 457,223 | |||
Ending balance | 443,962 | |||
Ending balance: Individually evaluated for impairment | 434 | 797 | ||
Ending balance: Collectively evaluated for impairment | 443,528 | 456,426 | ||
Adoption of CECL Standard | ||||
Allowance for loan losses: | ||||
Beginning balance | 580 | 580 | ||
Adoption of CECL Standard | Indirect automobile | ||||
Allowance for loan losses: | ||||
Beginning balance | 1,710 | 1,710 | ||
Commercial real estate | ||||
Allowance for loan losses: | ||||
Beginning balance | 3,031 | 3,031 | ||
Provision for credit losses | 170 | |||
Ending balance | 2,341 | |||
Allowance for loan losses: | ||||
Beginning balance | 3,317 | |||
(Credit to) provision for loan losses | (3) | |||
Ending balance | 3,314 | |||
Allowance for loan losses: | ||||
Provision for credit losses - unfunded commitments | 19 | |||
Loans collectively analyzed | 2,341 | |||
Ending balance: Collectively evaluated for impairment | 3,031 | |||
Loan receivables: | ||||
Ending balance | 370,528 | |||
Ending balance | 396,363 | |||
Ending balance: Individually evaluated for impairment | 1,817 | 1,382 | ||
Ending balance: Collectively evaluated for impairment | 394,546 | 369,146 | ||
Commercial real estate | Adoption of CECL Standard | ||||
Allowance for loan losses: | ||||
Beginning balance | (860) | (860) | ||
Residential | ||||
Allowance for loan losses: | ||||
Beginning balance | 103 | 103 | ||
Provision for credit losses | 13 | |||
Ending balance | 170 | |||
Allowance for loan losses: | ||||
Beginning balance | 54 | |||
(Credit to) provision for loan losses | (109) | |||
Loans charged-off | (44) | |||
Recoveries | 154 | |||
Ending balance | 55 | |||
Allowance for loan losses: | ||||
Loans collectively analyzed | 170 | |||
Ending balance: Collectively evaluated for impairment | 103 | |||
Loan receivables: | ||||
Ending balance | 53,720 | |||
Ending balance | 56,948 | |||
Ending balance: Individually evaluated for impairment | 1,946 | 1,794 | ||
Ending balance: Collectively evaluated for impairment | 55,002 | 51,926 | ||
Residential | Adoption of CECL Standard | ||||
Allowance for loan losses: | ||||
Beginning balance | 54 | 54 | ||
Commercial and industrial | ||||
Allowance for loan losses: | ||||
Beginning balance | 881 | 881 | ||
Provision for credit losses | 703 | |||
Ending balance | 1,201 | |||
Allowance for loan losses: | ||||
Beginning balance | 725 | |||
(Credit to) provision for loan losses | 18 | |||
Ending balance | 743 | |||
Allowance for loan losses: | ||||
Provision for credit losses - unfunded commitments | 1 | |||
Loans individually analyzed | 710 | |||
Loans collectively analyzed | 491 | |||
Ending balance: Collectively evaluated for impairment | 881 | |||
Loan receivables: | ||||
Ending balance | 87,982 | |||
Ending balance | 84,403 | |||
Ending balance: Individually evaluated for impairment | 1,150 | 183 | ||
Ending balance: Collectively evaluated for impairment | 83,253 | 87,799 | ||
Commercial and industrial | Adoption of CECL Standard | ||||
Allowance for loan losses: | ||||
Beginning balance | (383) | (383) | ||
Consumer | ||||
Allowance for loan losses: | ||||
Beginning balance | 60 | 60 | ||
Provision for credit losses | 4 | |||
Loans charged-off | (22) | |||
Recoveries | 12 | |||
Ending balance | 113 | |||
Allowance for loan losses: | ||||
Beginning balance | 47 | |||
(Credit to) provision for loan losses | 20 | |||
Loans charged-off | (23) | |||
Recoveries | 9 | |||
Ending balance | $ 53 | |||
Allowance for loan losses: | ||||
Loans collectively analyzed | 113 | |||
Ending balance: Individually evaluated for impairment | 2 | |||
Ending balance: Collectively evaluated for impairment | 58 | |||
Loan receivables: | ||||
Ending balance | 20,986 | |||
Ending balance | 20,816 | |||
Ending balance: Individually evaluated for impairment | 322 | 268 | ||
Ending balance: Collectively evaluated for impairment | 20,494 | 20,718 | ||
Consumer | Indirect automobile | ||||
Allowance for loan losses: | ||||
Loans charged-off | (989) | |||
Allowance for loan losses: | ||||
Loans individually analyzed | 39 | |||
Loan receivables: | ||||
Ending balance | $ 457,223 | |||
Ending balance | 443,962 | |||
Ending balance: Individually evaluated for impairment | 434 | |||
Consumer | Adoption of CECL Standard | ||||
Allowance for loan losses: | ||||
Beginning balance | $ 59 | $ 59 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses (Schedule of provision for credit losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 01, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Loans and Allowance for Credit Losses | |||
Provision for credit losses - loans | $ 994 | ||
Provision for credit losses | $ 221 | ||
Provision for credit losses - unfunded commitments | $ 221 | 20 | |
Provision for credit losses | $ 1,014 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses (Schedule of loans by risk rating and portfolio segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | $ 68,618 | |
2022 | 353,164 | |
2021 | 198,972 | |
2020 | 92,855 | |
2019 | 99,319 | |
Prior | 153,971 | |
Revolving Loans Amortized Cost | 35,593 | |
Total gross loans | 1,002,492 | |
Current-period gross write-offs | ||
2023 | 0 | |
2022 | 370 | |
2021 | 303 | |
2020 | 169 | |
2019 | 94 | |
Prior | 75 | |
Total | 1,011 | |
Total gross loans | $ 990,439 | |
Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 162 | |
2021 | 106 | |
2020 | 44 | |
2019 | 110 | |
Prior | 2,006 | |
Revolving Loans Amortized Cost | 176 | |
Total gross loans | 2,604 | |
Pass | ||
Current-period gross write-offs | ||
Total gross loans | 972,372 | |
Pass | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 65,754 | |
2022 | 329,159 | |
2021 | 176,921 | |
2020 | 79,090 | |
2019 | 81,715 | |
Prior | 93,956 | |
Revolving Loans Amortized Cost | 28,589 | |
Total gross loans | 855,184 | |
Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 2,864 | |
2022 | 23,843 | |
2021 | 20,593 | |
2020 | 13,708 | |
2019 | 10,803 | |
Prior | 53,457 | |
Revolving Loans Amortized Cost | 6,780 | |
Total gross loans | 132,048 | |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 377 | |
2020 | 13 | |
2019 | 6,053 | |
Prior | 1,558 | |
Revolving Loans Amortized Cost | 0 | |
Total gross loans | 8,001 | |
Current-period gross write-offs | ||
Total gross loans | 11,729 | |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 975 | |
2020 | 0 | |
2019 | 638 | |
Prior | 2,994 | |
Revolving Loans Amortized Cost | 48 | |
Total gross loans | 4,655 | |
Current-period gross write-offs | ||
Total gross loans | 6,338 | |
Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 443,962 | |
Current-period gross write-offs | ||
Total | 989 | |
Total gross loans | 457,223 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 396,363 | |
Current-period gross write-offs | ||
Total gross loans | 370,528 | |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 14,767 | |
2021 | 11,476 | |
Total gross loans | 26,243 | |
Current-period gross write-offs | ||
Total gross loans | 20,329 | |
Commercial real estate | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 3,118 | |
Total gross loans | 3,118 | |
Current-period gross write-offs | ||
Total gross loans | 20,329 | |
Commercial real estate | Construction | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 11,649 | |
2021 | 11,476 | |
Total gross loans | 23,125 | |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 24,710 | |
2022 | 54,242 | |
2021 | 35,371 | |
2020 | 31,064 | |
2019 | 56,486 | |
Prior | 96,727 | |
Total gross loans | 298,600 | |
Current-period gross write-offs | ||
Total gross loans | 282,422 | |
Commercial real estate | Non-residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 22,338 | |
2022 | 44,753 | |
2021 | 27,328 | |
2020 | 18,121 | |
2019 | 41,308 | |
Prior | 51,378 | |
Total gross loans | 205,226 | |
Current-period gross write-offs | ||
Total gross loans | 271,491 | |
Commercial real estate | Non-residential | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 2,372 | |
2022 | 9,489 | |
2021 | 8,043 | |
2020 | 12,943 | |
2019 | 8,699 | |
Prior | 41,064 | |
Total gross loans | 82,610 | |
Commercial real estate | Non-residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 5,994 | |
Prior | 1,494 | |
Total gross loans | 7,488 | |
Current-period gross write-offs | ||
Total gross loans | 7,904 | |
Commercial real estate | Non-residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 485 | |
Prior | 2,791 | |
Total gross loans | 3,276 | |
Current-period gross write-offs | ||
Total gross loans | 3,027 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 824 | |
2022 | 19,017 | |
2021 | 31,678 | |
2020 | 2,152 | |
2019 | 2,878 | |
Prior | 14,971 | |
Total gross loans | 71,520 | |
Current-period gross write-offs | ||
Total gross loans | 67,777 | |
Commercial real estate | Multifamily | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 824 | |
2022 | 19,017 | |
2021 | 30,923 | |
2020 | 2,152 | |
2019 | 1,576 | |
Prior | 5,222 | |
Total gross loans | 59,714 | |
Current-period gross write-offs | ||
Total gross loans | 67,777 | |
Commercial real estate | Multifamily | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 755 | |
2019 | 1,302 | |
Prior | 9,749 | |
Total gross loans | 11,806 | |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 4,801 | |
2022 | 26,667 | |
2021 | 2,619 | |
2020 | 2,787 | |
2019 | 2,670 | |
Prior | 17,404 | |
Total gross loans | 56,948 | |
Current-period gross write-offs | ||
Total gross loans | 53,720 | |
Residential | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 4,801 | |
2022 | 26,667 | |
2021 | 2,619 | |
2020 | 2,787 | |
2019 | 2,670 | |
Prior | 15,458 | |
Total gross loans | 55,002 | |
Residential | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Prior | 1,946 | |
Total gross loans | 1,946 | |
Residential | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 52,265 | |
Residential | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | 1,455 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 4,071 | |
2022 | 26,558 | |
2021 | 15,775 | |
2020 | 2,919 | |
2019 | 2,767 | |
Prior | 8,212 | |
Revolving Loans Amortized Cost | 24,101 | |
Total gross loans | 84,403 | |
Current-period gross write-offs | ||
Total gross loans | 87,982 | |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 3,579 | |
2022 | 23,853 | |
2021 | 14,104 | |
2020 | 2,141 | |
2019 | 1,753 | |
Prior | 5,301 | |
Revolving Loans Amortized Cost | 17,273 | |
Total gross loans | 68,004 | |
Current-period gross write-offs | ||
Total gross loans | 83,680 | |
Commercial and industrial | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 492 | |
2022 | 2,705 | |
2021 | 319 | |
2020 | 765 | |
2019 | 802 | |
Prior | 2,644 | |
Revolving Loans Amortized Cost | 6,780 | |
Total gross loans | 14,507 | |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 377 | |
2020 | 13 | |
2019 | 59 | |
Prior | 64 | |
Total gross loans | 513 | |
Current-period gross write-offs | ||
Total gross loans | 3,825 | |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 975 | |
2019 | 153 | |
Prior | 203 | |
Revolving Loans Amortized Cost | 48 | |
Total gross loans | 1,379 | |
Current-period gross write-offs | ||
Total gross loans | 477 | |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 20,816 | |
Current-period gross write-offs | ||
Total | 22 | |
Total gross loans | 20,986 | |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 33,383 | |
2022 | 206,890 | |
2021 | 100,533 | |
2020 | 52,949 | |
2019 | 34,227 | |
Prior | 15,980 | |
Total gross loans | 443,962 | |
Current-period gross write-offs | ||
2022 | 359 | |
2021 | 303 | |
2020 | 158 | |
2019 | 94 | |
Prior | 75 | |
Total | 989 | |
Total gross loans | 457,223 | |
Consumer | Indirect automobile | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 33,383 | |
2022 | 206,728 | |
2021 | 100,427 | |
2020 | 52,928 | |
2019 | 34,117 | |
Prior | 15,945 | |
Total gross loans | 443,528 | |
Consumer | Indirect automobile | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 162 | |
2021 | 106 | |
2020 | 21 | |
2019 | 110 | |
Prior | 35 | |
Total gross loans | 434 | |
Consumer | Indirect automobile | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 456,112 | |
Consumer | Indirect automobile | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | 1,111 | |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 35 | |
Prior | 238 | |
Revolving Loans Amortized Cost | 11,258 | |
Total gross loans | 11,531 | |
Current-period gross write-offs | ||
Total gross loans | 11,507 | |
Consumer | Home equity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 35 | |
Prior | 238 | |
Revolving Loans Amortized Cost | 11,082 | |
Total gross loans | 11,355 | |
Consumer | Home equity | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Revolving Loans Amortized Cost | 176 | |
Total gross loans | 176 | |
Consumer | Home equity | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 11,290 | |
Consumer | Home equity | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | 217 | |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 829 | |
2022 | 5,023 | |
2021 | 1,520 | |
2020 | 984 | |
2019 | 256 | |
Prior | 439 | |
Revolving Loans Amortized Cost | 234 | |
Total gross loans | 9,285 | |
Current-period gross write-offs | ||
2022 | 11 | |
2020 | 11 | |
Total | 22 | |
Total gross loans | 9,479 | |
Consumer | Other consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 829 | |
2022 | 5,023 | |
2021 | 1,520 | |
2020 | 961 | |
2019 | 256 | |
Prior | 414 | |
Revolving Loans Amortized Cost | 234 | |
Total gross loans | 9,237 | |
Consumer | Other consumer | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 23 | |
Prior | 25 | |
Total gross loans | $ 48 | |
Consumer | Other consumer | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 9,428 | |
Consumer | Other consumer | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | $ 51 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of changes in the carrying value of goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets | ||
Beginning balance | $ 2,235 | $ 2,235 |
Ending balance | 2,235 | 2,235 |
Impairment loss on goodwill | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of changes in the carrying value of customer list and core deposit intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 334 | $ 433 | $ 433 |
Amortization | (24) | $ (27) | (99) |
Ending balance | 310 | 334 | |
Accumulated amortization and impairment | $ 123 | $ 99 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets | |||
Amortization of Intangible Assets | $ 24 | $ 27 | $ 99 |
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 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets | |||
2023 | $ 64 | ||
2024 | 79 | ||
2025 | 60 | ||
2026 | 29 | ||
2027 | 21 | ||
Thereafter | 57 | ||
Total | $ 310 | $ 334 | $ 433 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of premises and equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 46,284 | $ 46,231 |
Less accumulated depreciation | (27,867) | (27,509) |
Net | 18,417 | 18,722 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,732 | 3,732 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 27,617 | 27,617 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 14,670 | 14,652 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 265 | $ 230 |
Deposits (Schedule of deposits)
Deposits (Schedule of deposits) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Non-interest bearing demand deposits | $ 269,743 | $ 283,563 |
Interest bearing accounts: | ||
NOW | 140,396 | 156,285 |
Savings | 169,296 | 176,916 |
Money market | 229,988 | 296,787 |
Time certificates of deposit | 284,101 | 216,382 |
Total interest bearing accounts | 823,781 | 846,370 |
Total deposits | $ 1,093,524 | $ 1,129,933 |
Deposits (Schedule of contractu
Deposits (Schedule of contractual maturities of time certificates of deposit) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Within 1 year | $ 240,967 | |
1 - 2 years | 37,879 | |
2 - 3 years | 2,983 | |
3 - 4 years | 1,259 | |
4 - 5 years | 1,013 | |
Total | $ 284,101 | $ 216,382 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Deposits [Line Items] | ||
Interest-Bearing Domestic Deposit, Brokered | $ 42,696 | $ 34,041 |
Time Deposits, Reciprocal Deposits | 24,529 | 10,023 |
Time certificates of deposit in denominations of $250 or greater | $ 58,308 | $ 38,897 |
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 | Mar. 31, 2023 USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 106,450 |
Rate | 4.99% |
Due in one year | $ 80,000 |
Long term | 26,450 |
Fixed short-term on April 3, 2023 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 4.72% |
Due in one year | $ 10,000 |
Fixed short-term on May 15, 2023 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 4.87% |
Due in one year | $ 10,000 |
Fixed medium-term on October 31, 2025 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 722 |
Rate | 4.87% |
Due in one year | $ 0 |
Long term | 722 |
Fixed medium-term on November 3, 2025 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 5,000 |
Rate | 4.87% |
Due in one year | $ 0 |
Long term | 5,000 |
Fixed medium-term on December 5, 2025 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 728 |
Rate | 4.34% |
Due in one year | $ 0 |
Long term | 728 |
Fixed short-term on September 5, 2023 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.38% |
Due in one year | $ 10,000 |
Fixed medium-term on March 20, 2025 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 20,000 |
Rate | 4.47% |
Due in one year | $ 0 |
Long term | 20,000 |
Fixed medium-term on March 21, 2024 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 20,000 |
Rate | 5.18% |
Due in one year | $ 20,000 |
Fixed short-term on August 21, 2023 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.23% |
Due in one year | $ 10,000 |
Fixed short-term on October 23, 2023 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.23% |
Due in one year | $ 10,000 |
Fixed short-term on December 21, 2023 Member | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.24% |
Due in one year | $ 10,000 |
Long-Term Debt and FHLB Stock_3
Long-Term Debt and FHLB Stock (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 01, 2023 | Mar. 31, 2023 USD ($) subsidiary $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2005 USD ($) $ / shares shares | |
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Number Of Wholly Owned Subsidiaries | subsidiary | 1 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Advances from the Federal Home Loan Bank | $ 106,450 | $ 57,723 | ||
Zions Bank | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Line of credit, maximum borrowing capacity | 10,000 | 10,000 | ||
Line of credit facility, maximum amount outstanding during period | 0 | 0 | ||
Pacific Community Bankers Bank | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Line of credit, maximum borrowing capacity | 50,000 | 50,000 | ||
Line of credit facility, maximum amount outstanding during period | $ 0 | $ 0 | ||
Subordinated Debt. | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest rate, variable rate basis | three month LIBOR | |||
Effective interest during period | 6.92% | 6.69% | ||
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% | |||
Subordinated Debt. | SOFR | Scenario, Plan [Member] | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest LIBOR rate | 0.26% | |||
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 | $ 675,466 | $ 667,905 | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 202,035 | 195,455 | ||
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 the Federal Home Loan Bank | $ 0 | $ 0 |
Employee Benefits (Schedule of
Employee Benefits (Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Employee Benefits | ||
Projected and accumulated benefit obligation | $ (18,037) | $ (17,138) |
Plan assets at fair value | 17,729 | 16,906 |
Funded status included in accrued expenses and other liabilities | $ (308) | $ (232) |
Employee Benefits (Schedule o_2
Employee Benefits (Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Benefits | ||
Interest cost | $ 215 | $ 158 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Expected return on plan assets | $ (232) | $ (252) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Amortization of unrecognized loss | $ 93 | $ 67 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Net periodic (benefit) cost | $ 76 | $ (27) |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) fund | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule Of Employee Benefits [Line Items] | |||
Number of investment funds | fund | 9 | ||
Number of equity funds | fund | 7 | ||
Number of fixed income funds | fund | 2 | ||
Percentage of internal revenue contribution | 25% | ||
Percentage of internal revenue service limitations | 6% | ||
Employer contribution in defined contribution plan | $ 286 | $ 294 | |
Accrued expenses and other liabilities | 26,870 | $ 25,302 | |
Non-interest expense | 9,203 | 9,105 | |
Group Term Replacement Plan | |||
Schedule Of Employee Benefits [Line Items] | |||
Liability related to these postretirement benefits | 1,593 | 1,580 | |
Postemployment benefit expense | 13 | 12 | |
Other Director and Officer Postretirement Benefits | |||
Schedule Of Employee Benefits [Line Items] | |||
Non-interest expense | 16 | 19 | |
Liability related to these postretirement benefits | 2,037 | 2,031 | |
Officers | Executive Plan | |||
Schedule Of Employee Benefits [Line Items] | |||
Accrued expenses and other liabilities | 1,861 | 1,649 | |
Non-interest expense | 131 | 197 | |
Directors' Plan | Directors | |||
Schedule Of Employee Benefits [Line Items] | |||
Accrued expenses and other liabilities | 2,873 | $ 2,761 | |
Non-interest expense | $ 51 | $ 56 | |
Minimum | Other Director and Officer Postretirement Benefits | |||
Schedule Of Employee Benefits [Line Items] | |||
Post retirement benefit period | 15 years | ||
Minimum | Officers | Executive Plan | |||
Schedule Of Employee Benefits [Line Items] | |||
Terms of services | 1 year | ||
Maximum | Other Director and Officer Postretirement Benefits | |||
Schedule Of Employee Benefits [Line Items] | |||
Post retirement benefit period | 20 years | ||
Maximum | Officers | Executive Plan | |||
Schedule Of Employee Benefits [Line Items] | |||
Terms of services | 5 years |
Employee Benefits (Schedule o_3
Employee Benefits (Schedule of fair value of pension plan assets, by fair value hierarchy) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 17,729 | $ 16,906 |
Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 17,729 | 16,906 |
Defined Benefit Pension Plan | Investment in separate accounts fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 12,015 | 11,600 |
Defined Benefit Pension Plan | Investment in separate accounts equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 5,714 | 5,306 |
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 17,729 | 16,906 |
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 | 12,015 | 11,600 |
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 | $ 5,714 | $ 5,306 |
Employee Benefits (Employee Sto
Employee Benefits (Employee Stock Ownership Plan (ESOP) Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jan. 01, 2023 | Jan. 16, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 432,049 | 432,049 | |||
Committed to be allocated | 5,454 | 21,821 | |||
Compensation expense | $ 49 | $ 58 | |||
Employee Stock Ownership Plan (ESOP) | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 436,425 | ||||
Common stock price per share | $ 10 | ||||
Terms of repurchase share under ESOP | 20 years | ||||
Interest rate | 7.50% | ||||
Balance of ESOP loan | $ 3,741 | ||||
Committed to be allocated | 21,821 | ||||
Fair value of unallocated shares | $ 2,629 | ||||
Compensation expense | $ 50 | $ 58 |
Employee Benefits (Schedule o_4
Employee Benefits (Schedule of employee stock ownership plan) (Details) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Employee Benefits | ||
Allocated | 87,284 | 65,463 |
Committed to be allocated | 5,454 | 21,821 |
Unallocated | 343,687 | 349,141 |
Paid out to participants | (4,376) | (4,376) |
Total shares | 432,049 | 432,049 |
Employee Benefits (Share-Based
Employee Benefits (Share-Based Compensation Plan Narrative) (Details) - 2020 EIP - USD ($) $ in Thousands | 3 Months Ended | |
May 26, 2020 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 763,743 | |
Vesting period | 3 years | |
Maximum term | 10 years | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 545,531 | |
Percentage of shares of common stock issued | 4.90% | |
Available for future grants | 102,813 | |
Aggregate intrinsic value of options exercisable | $ 456 | |
Period for Recognition | 5 months 1 day | |
Unrecognized compensation cost related to the nonvested restricted stock awards granted | $ 101 | |
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 | 49,444 | |
Period for Recognition | 4 months 24 days | |
Unrecognized compensation cost related to the nonvested restricted stock awards granted | $ 148 | |
Allocated share-based compensation expense | $ 150 |
Employee Benefits (Summary of o
Employee Benefits (Summary of options) (Details) - 2020 EIP - Stock options - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Options outstanding at beginning of year | 437,930 | |
Options Forfeited | (667) | |
Options outstanding at end of period | 437,263 | 437,930 |
Options exercisable at end of period | 290,126 | |
Weighted - Average Exercise Price | ||
Weighted - Average Exercise Price, beginning of year | $ 6.62 | |
Weighted - Average Exercise Price, forfeited | 6.57 | |
Weighted - Average Exercise Price, end of period | 6.62 | $ 6.62 |
Weighted - Average Exercise Price, exercisable | $ 6.62 | |
Weighted-Average Contractual Term | ||
Weighted-Average Contractual Term, outstanding | 7 years 4 months 24 days | 7 years 7 months 28 days |
Weighted-Average Contractual Term, exercisable | 7 years 4 months 24 days |
Employee Benefits (Summary of C
Employee Benefits (Summary of Company's restricted stock activity) (Details) - Restricted stock | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Shares | |
Balance at beginning of period (in shares) | shares | 56,266 |
Forfeited (in shares) | shares | (334) |
Balance at end of period (in shares) | shares | 55,932 |
Weighted-Average Grant Date Fair Value per Share | |
Balance at beginning of period (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 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) item | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Leases | |||
Number of leased branch offices | item | 7 | ||
Number of leased administrative offices | item | 2 | ||
Weighted average remaining life of the lease terms | 11 years 4 months 24 days | 11 years 7 months 6 days | |
Weighted average discount rate | 2.58% | 2.58% | |
Operating lease costs | $ 178 | $ 195 | |
Deferred rent liability | 95 | $ 105 | |
Operating lease right-of-use asset | $ 6,750 | $ 6,896 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets. | Other Assets. | |
Operating lease liability | $ 6,750 | $ 6,896 | |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Leases | ||
2023 | $ 571 | |
2024 | 764 | |
2025 | 739 | |
2026 | 720 | |
2027 | 676 | |
Thereafter | 4,394 | |
Total future minimum lease payments | 7,864 | |
Amounts representing interest | (1,114) | |
Present value of net future minimum lease payments | $ 6,750 | $ 6,896 |
Commitments and Contingencies_3
Commitments and Contingencies and Derivatives (Schedule of contract amounts represent off-balance sheet credit risk) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 01, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Financial instruments represent off-balance sheet credit risk, asset | $ 146,942 | $ 126,216 | |
Provision for credit losses - unfunded commitments | $ 221 | 20 | |
Future loan commitments | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Financial instruments represent off-balance sheet credit risk, asset | 5,973 | 3,815 | |
Construction | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Financial instruments represent off-balance sheet credit risk, asset | 33,989 | 30,274 | |
Home equity | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Financial instruments represent off-balance sheet credit risk, asset | 9,692 | 9,561 | |
Undisbursed commercial and other line of credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Financial instruments represent off-balance sheet credit risk, asset | 91,318 | 77,719 | |
Standby letters of credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Financial instruments represent off-balance sheet credit risk, asset | 5,244 | 4,571 | |
Loans sold with recourse | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Financial instruments represent off-balance sheet credit risk, asset | $ 726 | $ 276 |
Commitments and Contingencies_4
Commitments and Contingencies and Derivatives (Schedule of unfunded commitments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 01, 2023 | Mar. 31, 2023 | |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision for credit losses | $ 221 | $ 20 |
Ending balance | 241 | |
Commercial real estate | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision for credit losses | 19 | |
Ending balance | 168 | |
Commercial and industrial | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision for credit losses | 1 | |
Ending balance | 66 | |
Consumer | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Ending balance | 7 | |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Ending balance | 221 | |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | Commercial real estate | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Ending balance | 149 | |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | Commercial and industrial | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Ending balance | 65 | |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | Consumer | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Ending balance | $ 7 |
Commitments and Contingencies_5
Commitments and Contingencies and Derivatives (Schedule of information regarding derivatives) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) contract item | Dec. 31, 2022 USD ($) contract | |
Derivative [Line Items] | ||
Accrued interest receivable | $ 2,999 | $ 4,255 |
Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 32,436 | 26,541 |
Fair value | $ 3,282 | $ 3,578 |
Weighted average pay rates | 4.10% | 3.69% |
Weighted average receive rates | 6.80% | 6.30% |
Weighted average maturity (in years) | 8 years 9 months 21 days | 8 years 9 months 14 days |
Number of Contracts | contract | 8 | 7 |
Interest rate swap | Other assets | ||
Derivative [Line Items] | ||
Accrued interest receivable | $ 69 | $ 56 |
Interest rate swap | Other liabilities | ||
Derivative [Line Items] | ||
Accrued interest payable | 69 | $ 56 |
Five interest rate swap contracts effective in 2023 and 2024 | ||
Derivative [Line Items] | ||
Notional amount | 67,411 | |
Fair value | $ 2,716 | |
Weighted average pay rates | 5.19% | |
Number of Contracts | item | 7 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of actual capital amounts and ratios) (Details) - Rhinebeck Bank $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 141,259 | $ 139,257 |
Total capital (to risk-weighted assets) Actual Ratio | 0.1216 | 0.1225 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 92,932 | $ 90,980 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 116,165 | $ 113,725 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets) Actual Amount | $ 131,914 | $ 131,314 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 0.1136 | 0.1155 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 69,699 | $ 68,235 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 92,932 | $ 90,980 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Common equity tier one capital (to risk weighted assets) Actual Amount | $ 131,914 | $ 131,314 |
Common equity tier one capital (to risk weighted assets) Actual Ratio | 0.1136 | 0.1155 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 52,274 | $ 51,176 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Ratio | 0.0450 | 0.0450 |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 75,508 | $ 73,921 |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0650 | 0.0650 |
Tier 1 capital (to average assets) Actual Amount | $ 131,914 | $ 131,314 |
Tier 1 capital (to average assets) Actual Ratio | 0.0968 | 0.0975 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 54,525 | $ 53,868 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 68,156 | $ 67,335 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |
Fair Value (Schedule of assets
Fair Value (Schedule of assets carried at fair value on a recurring basis) (Details) - Recurring basis - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 228,170 | $ 228,207 |
Total liabilities | 5,998 | 4,548 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 38,309 | 37,857 |
U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 142,529 | 144,534 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22,773 | 22,449 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 4,839 | 4,786 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 12,907 | 13,217 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 815 | 816 |
Unrealized gains (losses) on available for sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 222,172 | 223,659 |
Loan level interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 5,998 | 4,548 |
Total liabilities | 5,998 | 4,548 |
Quoted Prices Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 38,309 | 37,857 |
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 | 38,309 | 37,857 |
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 | 38,309 | 37,857 |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 189,731 | 190,220 |
Total liabilities | 5,998 | 4,548 |
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 | 142,529 | 144,534 |
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 | 22,773 | 22,449 |
Significant Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 4,709 | 4,656 |
Significant Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 12,907 | 13,217 |
Significant Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 815 | 816 |
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 | 183,733 | 185,672 |
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 | 5,998 | 4,548 |
Total liabilities | 5,998 | 4,548 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 130 | 130 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 130 | 130 |
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 | $ 130 | $ 130 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investments | $ 428 | |
Related Allowance | 109 | |
Nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | $ 427 | 319 |
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 | 427 | 319 |
Impaired loans, recorded investments | 1,176 | 428 |
Related Allowance | 749 | 109 |
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 | 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 Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 427 | 319 |
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 | $ 427 | $ 319 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 427 | $ 319 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 427 | $ 319 |
Impaired Loans, Valuation Technique [Extensible List] | Appraisal of collateral | Appraisal of collateral |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 427 | $ 319 |
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 | 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 | Appraisal adjustments | Minimum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Appraisal adjustments | Maximum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0.20 | 0.20 |
Fair Value (Schedule of carryin
Fair Value (Schedule of carrying value and fair values of the financial instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | $ 36,143 | $ 31,384 |
Available for sale securities | 38,309 | 37,857 |
Quoted Prices Active Markets for Identical Assets (Level 1) | Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 36,143 | 31,384 |
Available for sale securities | 38,309 | 37,857 |
Significant Observable Inputs (Level 2) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities | 183,733 | 185,672 |
Loan level interest rate swaps | 5,998 | 4,548 |
FHLB stock | 5,450 | 3,258 |
Financial Liabilities: | ||
Deposits | 1,093,524 | 1,129,933 |
Mortgagors escrow accounts | 8,670 | 9,732 |
FHLB advances | 106,450 | 57,723 |
Subordinated debt | 5,155 | 5,155 |
Loan level interest rate swaps | 5,998 | 4,548 |
Significant Observable Inputs (Level 2) | Fair Value | ||
Financial Assets: | ||
Available for sale securities | 183,733 | 185,672 |
Loan level interest rate swaps | 5,998 | 4,548 |
FHLB stock | 5,450 | 3,258 |
Financial Liabilities: | ||
Deposits | 1,004,184 | 1,001,455 |
Mortgagors escrow accounts | 8,670 | 9,723 |
FHLB advances | 106,369 | 57,739 |
Subordinated debt | 5,155 | 5,155 |
Loan level interest rate swaps | 5,998 | 4,548 |
Significant Unobservable Inputs (Level 3) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities | 130 | 130 |
Loans, net | 1,004,762 | 994,368 |
Mortgage servicing rights | 2,292 | 2,409 |
Significant Unobservable Inputs (Level 3) | Fair Value | ||
Financial Assets: | ||
Available for sale securities | 130 | 130 |
Loans, net | 961,407 | 953,432 |
Mortgage servicing rights | $ 4,877 | $ 5,211 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 108,132 | $ 125,969 |
Balance | $ 110,717 | $ 117,293 |
Income tax rate | 21% | 21% |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (32,189) | $ (6,635) |
Other comprehensive income (loss) before reclassifications | 2,221 | (10,939) |
Period change | 2,221 | (10,939) |
Balance | (29,968) | (17,574) |
Defined Benefit Pension Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (3,997) | (3,901) |
Balance | (3,997) | (3,901) |
Unrealized (losses) gains on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (28,192) | (2,734) |
Other comprehensive income (loss) before reclassifications | 2,221 | (10,939) |
Period change | 2,221 | (10,939) |
Balance | $ (25,971) | $ (13,673) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income applicable to common stock | $ 798 | $ 2,053 |
Average number of common shares outstanding | 11,228,299 | 11,183,583 |
Less: Average unearned ESOP shares | 346,414 | 368,235 |
Average number of common shares outstanding used to calculate basic earnings per common share | 10,881,885 | 10,815,348 |
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share | 11,021,395 | 11,009,312 |
Earnings per Common share: | ||
Basic (in dollars per share) | $ 0.07 | $ 0.19 |
Diluted (in dollars per share) | $ 0.07 | $ 0.19 |
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 | 34,822 | 60,159 |
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 | 104,688 | 133,805 |