Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 14, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | First Seacoast Bancorp, Inc. | ||
Entity Central Index Key | 0001769267 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Address, State or Province | NH | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Small Business | true | ||
Trading Symbol | FSEA | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 5,075,345 | ||
Entity Public Float | $ 27.5 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity File Number | 001-41597 | ||
Entity Tax Identification Number | 92-0334805 | ||
Entity Address, Address Line One | 633 Central Avenue | ||
Entity Address, City or Town | Dover | ||
Entity Address, Postal Zip Code | 03820 | ||
City Area Code | 603 | ||
Local Phone Number | 742-4680 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Firm ID | 231 | ||
Auditor Name | Baker Newman & Noyes LLC | ||
Auditor Location | Portland, Maine | ||
Documents Incorporated by Reference | 1. Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Stockholders, scheduled to be held on May 25, 2023, are incorporated by reference into Part III of this report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 8,250,000 | $ 6,638,000 |
Interest bearing time deposits with other banks | 747,000 | 1,245,000 |
Securities available-for-sale, at fair value | 106,100,000 | 91,365,000 |
Federal Home Loan Bank stock | 3,502,000 | 1,688,000 |
Total loans | 402,505,000 | 376,641,000 |
Less allowance for loan losses | (3,581,000) | (3,590,000) |
Net loans | 398,924,000 | 373,051,000 |
Land, building and equipment, net | 4,181,000 | 4,566,000 |
Bank-owned life insurance | 4,561,000 | 4,461,000 |
Accrued interest receivable | 1,988,000 | 1,499,000 |
Other assets | 9,171,000 | 2,561,000 |
Total assets | 537,424,000 | 487,074,000 |
Deposits: | ||
Non-interest bearing deposits | 92,757,000 | 98,624,000 |
Interest bearing deposits | 289,606,000 | 294,619,000 |
Total deposits | 382,363,000 | 393,243,000 |
Advances from Federal Home Loan Bank | 99,397,000 | 29,462,000 |
Mortgagors’ tax escrow | 938,000 | 652,000 |
Deferred compensation liability | 1,830,000 | 1,729,000 |
Other liabilities | 3,559,000 | 1,520,000 |
Total liabilities | 488,087,000 | 426,606,000 |
Stockholders' Equity: | ||
Preferred Stock, $.01 par value, 10,000,000 shares authorized, none issued | ||
Common Stock, $.01 par value, 90,000,000 shares authorized; 6,201,770 issued and 6,062,298 outstanding at December 31, 2022; and 6,201,770 issued and 6,123,337 outstanding as of December 31, 2021 | 62,000 | 62,000 |
Additional paid-in capital | 26,768,000 | 26,783,000 |
Retained earnings | 36,248,000 | 36,813,000 |
Accumulated other comprehensive (loss) income | (9,727,000) | 721,000 |
Treasury stock, at cost: 137,472 and 78,433 shares as of December 31, 2022 and 2021, respectively | (1,377,000) | (748,000) |
Unearned stock compensation | (2,637,000) | (3,163,000) |
Total stockholders' equity | 49,337,000 | 60,468,000 |
Total liabilities and stockholders' equity | $ 537,424,000 | $ 487,074,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock par value per share | $ 0.01 | $ 0.01 |
Common stock,number of shares authorized | 90,000,000 | 90,000,000 |
Common stock,number of shares issued | 6,201,770 | 6,201,770 |
Common stock,number of shares outstanding | 6,064,298 | 6,123,337 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Treasury Stock, Shares outstanding | 137,472 | 78,433 |
CONSOLIDATED STATEMENTS OF (LOS
CONSOLIDATED STATEMENTS OF (LOSS) INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 14,092,000 | $ 14,129,000 |
Interest on debt securities: | ||
Taxable | 1,084,000 | 448,000 |
Non-taxable | 1,316,000 | 895,000 |
Total interest on debt securities | 2,400,000 | 1,343,000 |
Dividends | 118,000 | 23,000 |
Total interest and dividend income | 16,610,000 | 15,495,000 |
Interest expense: | ||
Interest on deposits | 701,000 | 586,000 |
Interest on borrowings | 1,046,000 | 649,000 |
Total interest expense | 1,747,000 | 1,235,000 |
Net interest and dividend income | 14,863,000 | 14,260,000 |
Provision for loan losses | 205,000 | |
Net interest and dividend income after provision for loan losses | 14,863,000 | 14,055,000 |
Non-interest income: | ||
Customer service fees | 1,039,000 | 1,007,000 |
Gain on sale of loans | 2,000 | 130,000 |
Securities (losses) gains, net | (747,000) | 535,000 |
Income from bank-owned life insurance | 100,000 | 105,000 |
Loan servicing fee income | 126,000 | 163,000 |
Investment services fees | 328,000 | 247,000 |
Other income | 40,000 | 62,000 |
Total non-interest income | 888,000 | 2,249,000 |
Non-interest expense: | ||
Salaries and employee benefits | 10,673,000 | 7,833,000 |
Director compensation | 324,000 | 259,000 |
Occupancy expense | 732,000 | 637,000 |
Equipment expense | 488,000 | 548,000 |
Marketing | 598,000 | 361,000 |
Data processing | 1,400,000 | 1,407,000 |
Deposit insurance fees | 154,000 | 125,000 |
Professional fees and assessments | 983,000 | 834,000 |
Debit card fees | 184,000 | 196,000 |
Employee travel and education expenses | 198,000 | 120,000 |
Other expense | 1,033,000 | 762,000 |
Total non-interest expense | 16,767,000 | 13,082,000 |
(Loss) income before income tax (benefit) expense | (1,016,000) | 3,222,000 |
Income tax (benefit) expense | (451,000) | 601,000 |
Net (loss) income | $ (565,000) | $ 2,621,000 |
(Loss) earnings per share: | ||
Basic | $ (0.10) | $ 0.45 |
Diluted | $ (0.10) | $ 0.45 |
Weighted Average Shares: | ||
Basic | 5,767,325 | 5,817,509 |
Diluted | 5,767,325 | 5,817,509 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (565) | $ 2,621 |
Other comprehensive loss, net of income taxes: | ||
Unrealized holding losses on securities available-for-sale arising during the year, net of income taxes of $(4,562) and $(381) in 2022 and 2021, respectively | (12,283) | (1,026) |
Reclassification adjustment for securities (losses) gains, net and net amortization of bond premiums included in net (loss) income, net of income taxes of $476 and $44 in 2022 and 2021, respectively | 1,280 | 120 |
Total unrealized loss on securities available-for-sale | (11,003) | (906) |
Change in interest rate swaps, net of income taxes of $237 and $78 in 2022 and 2021, respectively | 639 | 211 |
Reclassification adjustment for net interest expense on swaps included in net income, net of income taxes of $31 and $(13) in 2022 and 2021, respectively | (84) | 35 |
Total change in interest rate swaps | 555 | 246 |
Other comprehensive loss | (10,448) | (660) |
Comprehensive (loss) income | $ (11,013) | $ 1,961 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding losses on securities available-for-sale arising during the period, income tax | $ (4,562) | $ (381) |
Reclassification adjustment for securities gains, net and net amortization of bond premiums included in net income, income tax | 476 | 44 |
Change in interest rate swaps, income tax | 237 | 78 |
Reclassification adjustment for net interest expense on swaps included in net income, income tax | $ 31 | $ (13) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] | Unearned Compensation ESOP [Member] |
Beginning Balance at Dec. 31, 2020 | $ 58,861 | $ 61 | $ 25,606 | $ 34,192 | $ 1,381 | $ (233) | $ (2,146) |
Beginning Balance (shares) at Dec. 31, 2020 | 6,058,024 | ||||||
Net (loss) income | 2,621 | 2,621 | |||||
Other comprehensive (loss) income | (660) | (660) | |||||
Treasury stock activity | (515) | (515) | |||||
Treasury stock activity (shares) | (52,957) | ||||||
Issuance of stock compensation | $ 1 | 1,181 | (1,182) | ||||
Issuance of stock compensation, (shares) | 118,270 | ||||||
Amortization of unearned stock compensation | 46 | 46 | |||||
ESOP shares earned | 115 | (4) | 119 | ||||
Ending Balance at Dec. 31, 2021 | 60,468 | $ 62 | 26,783 | 36,813 | 721 | (748) | (3,163) |
Ending Balance (shares) at Dec. 31, 2021 | 6,123,337 | ||||||
Net (loss) income | (565) | (565) | |||||
Other comprehensive (loss) income | (10,448) | (10,448) | |||||
Treasury stock activity | (629) | (629) | |||||
Treasury stock activity (shares) | (59,039) | ||||||
Amortization of unearned stock compensation | 387 | 387 | |||||
Forfeited stock compensation | (20) | 20 | |||||
ESOP shares earned | 124 | 5 | 119 | ||||
Ending Balance at Dec. 31, 2022 | $ 49,337 | $ 62 | $ 26,768 | $ 36,248 | $ (9,727) | $ (1,377) | $ (2,637) |
Ending Balance (shares) at Dec. 31, 2022 | 6,064,298 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Number of shares committed to be released each year,ESOP | 11,924 | 11,924 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (565) | $ 2,621 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
ESOP expense | 124 | 115 |
Stock based compensation | 387 | 46 |
Depreciation and amortization | 522 | 561 |
Net amortization of bond premium | 1,009 | 699 |
Provision for loan losses | 205 | |
Gain on sale of loans | (2) | (130) |
Securities losses (gains), net | 747 | (535) |
Proceeds from loans sold | 639 | 6,198 |
Origination of loans sold | (637) | (6,068) |
Increase in bank-owned life insurance | (100) | (105) |
Increase in deferred loan costs | (799) | (945) |
Deferred tax (benefit) expense | (296) | 309 |
Increase in accrued interest receivable | (489) | (87) |
Increase in other assets | (1,483) | (771) |
Increase in deferred compensation liability | 101 | 62 |
Increase in other liabilities | 1,815 | 246 |
Net cash provided by operating activities | 973 | 2,421 |
Cash flows from investing activities: | ||
Proceeds from sales, calls, maturities and principal payments received on securities available-for-sale | 9,872 | 20,037 |
Purchase of securities available-for-sale | (41,452) | (57,339) |
Purchase of property and equipment | (103) | (36) |
Loan purchases | (3,673) | (16,022) |
Loan originations and principal collections, net | (21,392) | 8,468 |
Net loan (charge offs) recoveries | (9) | 43 |
Net (purchase) redemption of Federal Home Loan Bank stock | (1,814) | 108 |
Proceeds from sales and maturities of interest bearing time deposits with other banks | 498 | 1,243 |
Net cash used by investing activities | (58,073) | (43,498) |
Cash flows from financing activities: | ||
Net (decrease) increase in NOW, demand deposits, money market and savings accounts | (14,293) | 56,204 |
Net increase in certificates of deposit | 3,413 | 9,658 |
Increase (decrease) in mortgagors" tax escrow accounts | 286 | (768) |
Treasury stock purchases | (629) | (515) |
Net cash provided by financing activities | 58,712 | 41,719 |
Net change in cash and cash equivalents | 1,612 | 642 |
Cash and cash equivalents at beginning of year | 6,638 | 5,996 |
Cash and cash equivalents at end of year | 8,250 | 6,638 |
Cash activities: | ||
Cash paid for interest | 1,685 | 1,282 |
Cash paid for income taxes | 47 | 386 |
Effect of change in fair value of securities available-for-sale: | ||
Securities available-for-sale | (15,089) | (1,243) |
Deferred taxes | 4,086 | 337 |
Total unrealized loss on securities available-for-sale | (11,003) | (906) |
Effect of change in fair value of interest rate swaps: | ||
Interest rate swaps | 761 | 337 |
Deferred taxes | (206) | (91) |
Other comprehensive income | 555 | 246 |
ASU 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | ||
Effect of the adoption of ASU 2016-02: | ||
Other assets | 224 | |
Other liabilities | 224 | |
Federal Home Loan Bank Advances [Member] | ||
Cash flows from financing activities: | ||
Net proceeds (payments) from short-term FHLB advances | 71,729 | (95) |
Proceeds from long-term FHLB advances | 468 | 15,430 |
Payments on long-term FHLB advances | $ (2,262) | (20,000) |
FRB [Member] | ||
Cash flows from financing activities: | ||
Payments on short-term FHLB advances | $ (18,195) |
The Company
The Company | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | 1. The Company The accompanying consolidated financial statements include the accounts of First Seacoast Bancorp (the “Company”), its wholly-owned subsidiary, First Seacoast Bank (the “Bank”) and the Bank’s wholly-owned subsidiary, FSB Service Corporation, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Corporate Structure The Company is the federally-chartered holding company for the Bank (formerly named Federal Savings Bank). Effective July 16, 2019, pursuant to a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan, the Bank reorganized into the mutual holding company structure, and the Company completed a concurrent stock offering. On August 11, 2022, First Seacoast Bancorp, MHC, the parent mutual holding company of the Company, adopted a Plan of Conversion and Reorganization (the “Plan”) pursuant to which First Seacoast Bancorp, MHC undertook a “second-step” conversion and the Bank, the wholly-owned subsidiary of the Company, reorganized from the two-tier mutual holding company structure to the fully-public stock holding company structure. On January 19, 2023, the conversion and reorganization was completed As a result, First Seacoast Bancorp, Inc. became the new stock holding company for First Seacoast Bank and both First Seacoast Bancorp, MHC and First Seacoast Bancorp ceased to exist. First Seacoast Bancorp, Inc.’s common stock began trading on the Nasdaq Capital Market under the trading symbol “FSEA” on January 20, 2023 (see Note 22 Subsequent Events for more information). The Bank offers a full range of banking and wealth management services to its customers. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations. Investment management services are offered through FSB Wealth Management. FSB Wealth Management is a division of First Seacoast Bank. The division currently consists of two financial advisors who are located in Dover, New Hampshire. FSB Wealth Management provides access to non-FDIC insured products that include retirement planning, portfolio management, investment and insurance strategies, business retirement plans and college planning to individuals throughout our primary market area. These investments and services are offered through a third-party registered broker-dealer and investment advisor. FSB Wealth Management receives fees from advisory services and commissions on individual investment and insurance products purchased by clients. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the Company’s consolidated balance sheets. The Bank is engaged principally in the business of attracting deposits from the public and investing those funds in various types of loans, including residential and commercial real estate loans, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit and Insurance Corporation (“FDIC”) for the maximum amount permitted by law. The Company has one reportable segment, “Banking Services.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and other borrowings and manage interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses and the valuation of deferred tax assets. Consolidated Statements of Cash Flows For the purpose of reporting cash flows, cash includes cash and due from banks with original maturities of 90 days or less. Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. Securities Available-for-Sale Available-for-sale securities consist of debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. These assets are carried at fair value. Unrealized holding gains and losses for these assets, net of related deferred income taxes, are recorded in and reported as accumulated other comprehensive income within stockholders’ equity. For debt securities in an unrealized loss position, the Company considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. The Company also determines whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in accumulated other comprehensive income. Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. Premiums and discounts are recognized in interest income using the interest method. Discounts are recognized over the period to maturity. Premiums are recognized over the period to call, if applicable. Otherwise, premiums are recognized over the period to maturity. Interest Bearing Time Deposits With Other Banks The Company maintains time deposits with other banks and credit unions, which are fully insured by the FDIC or National Credit Union Administration (“NCUA”). Balances are carried at cost and the time deposits carry terms of up to four years . Federal Home Loan Bank Stock Federal Home Loan Bank (“FHLB”) stock is carried at cost and can only be sold to the FHLB based on its current redemption policies. The Company reviews its investment in capital stock of the FHLB for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. Based on the most recent analysis of the FHLB, as of December 31, 2022, management deems its investment in FHLB stock to not be impaired. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, net deferred loan origination fees/costs on originated loans or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance on a simple interest basis. The accrual of interest on loans is discontinued at the time the loan is 90 days past due or determined to be impaired, if earlier. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for such loans is reversed against interest income. For payments received on such loans, the interest is accounted for on the cash-basis or recorded as a reduction to loan principal if recovery is not assured, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. Loan Origination Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the consolidated balance sheets with the related loan balances. The amount charged or credited to income is included with the related interest income. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General Component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: commercial real estate; multifamily; commercial and industrial; acquisition; development and land; one to four family residential; home equity loans and lines of credit and consumer. Management uses a rolling average of historical losses based on a timeframe appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; credit quality trends; portfolio growth trends and concentrations; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the policies or methodology pertaining to the general component of the allowance for loan losses during both of the years ended December 31, 2022 and 2021. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial Real Estate loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management generally obtains rent rolls annually and continually monitors the cash flows of these borrowers. Multi-family Real Estate loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Commercial and Industrial loans – Loans in this segment are made to businesses and are generally secured by assets of the business or real estate. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Acquisition, Development and Land loans – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale and/or lease up of the property. Credit risk is affected by cost overruns, time to sell at an adequate price and market conditions. One- to Four-Family Residential Real Estate loans – The Bank generally does not originate or purchase loans with a loan-to-value ratio greater than 80 % and does not originate subprime loans, which are those loans to borrowers with a Fair Isaac Corporation (FICO) credit score of less than 660. Loans in this segment are generally collateralized by owner-occupied residential real estate and repayment is primarily dependent on the credit quality of the individual borrower and secondarily, liquidation of the collateral. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Home Equity Loans and Lines of Credit – All loans in this segment are typically collateralized by a subordinate lien position on owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality of this segment. Consumer – Loans in this segment include secured and unsecured consumer loans including passbook loans, consumer lines of credit, overdraft protection, manufactured housing loans and consumer unsecured loans. Repayment is dependent on the credit quality and the cash flow of the individual borrower. Allocated Component: The allocated component relates to loans that are classified as impaired. The Bank assesses non-accrual loans and certain loans rated substandard or worse for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. The Bank periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired and therefore are subject to a specific review for impairment. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. Generally, impairment on TDRs is measured using the discounted cash flow method by discounting expected cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification. Loans that have been classified as TDRs, and which subsequently default, are reviewed to determine if the loan should be deemed collateral-dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. Generally, all other impaired loans are collateral-dependent and impairment is measured through the collateral method. All loans on non-accrual status are considered to be impaired. When the measurement of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the allowance for loan losses. The Bank charges off the amount of any confirmed loan loss in the period when the loans, or portion of loans, are deemed uncollectible. Unallocated Component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for off-balance sheet commitments is included in other liabilities in the balance sheet. At both December 31, 2022 and 2021, the reserve for unfunded loan commitments was $ 18,000 . The related provision for off-balance sheet credit losses is included in non-interest expense in the consolidated statements of (loss) income. Land, Building and Equipment Land is stated at cost. Building and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets or the lease term for leasehold improvements unless renewal is reasonably assured. Maintenance and repair costs are included in operating expenses while major expenditures for improvements are capitalized and depreciated. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15 % of Tier one capital, and the total cash surrender value of life insurance policies is limited to 25 % of Tier one capital at the time of purchase. Treasury Stock The Company records common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. Transfers and Servicing of Financial Assets Transfers of an entire financial asset, a group of entire financial assets or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company services mortgage loans for others. Loan servicing fee income is reported in the consolidated statements of (loss) income as loan servicing fee income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Mortgage servicing rights (“MSR”) are initially recorded as an asset and measured at fair value when loans are sold to third parties with servicing rights retained. MSR are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s MSR accounted for under the fair value method are carried on the balance sheet at fair value with changes in fair value recorded in loan servicing fee income in the period in which the change occurs. Changes in the fair value of MSR are primarily due to changes in valuation inputs, assumptions and the collection and realization of expected cash flows. Customer List Intangible On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a purchase price of $ 347,000 (included in other assets at December 31, 2022), of which $ 172,000 was paid at closing. Each client account has been assigned a value, and as each client transfers to the Bank, 85 % of this value will be paid to the seller. By June 30, 2023, or upon mutual agreement that the transition of client accounts is complete, whichever is earlier, the balance of the purchase price will be paid to the seller. As of December 31, 2022 and 2021, approximately $ 23.0 million and $ 17.4 million of purchased client accounts are included in total assets under management, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the year ended December 31, 2022 and 2021, $ 34,000 and $ 13,000 of amortization expense was recorded in other expense, respectively. Revenue Recognition Accounting Standards Codification (“ASC”) section 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit and investments securities, as well as revenue related to our mortgage servicing activities and bank owned life insurance, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606 and which are presented in our income statements as components of noninterest income are as follows: • Customer service fees—these represent general service fees for monthly account maintenance and activity- or transaction- based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer, debit card transaction or ATM withdrawal). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Investment service fees—these represent fees for investment advisory services, which are generally based on the market values of assets under management, and commissions earned on individual investment and insurance products purchased by clients of FSB Wealth Management. Revenue is recognized when a performance obligation is completed, which is generally monthly for investment advisory services or when an investment product is purchased. Payment for such performance obligations is generally received in the month following the time the performance obligations are satisfied. Advertising Expense Advertising costs are expensed as incurred and recorded within marketing expense. Employee Stock Ownership Plan The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the company the opportunity to own company common stock. The ESOP is a tax-qualified retirement plan for the benefit of company employees. Defined Contribution Plan During the years ended December 31, 2022 and 2021, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company also made matching and profit-sharing contributions to eligible participants in accordance with plan provisions. Stock Based Compensation Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock or the granting of shares of restricted stock awards and restricted stock units. The 2021 Plan authorizes the issuance or delivery to participants of up to 417,327 shares of common stock. Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 298,091 shares, and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 119,236 shares. The Company recognizes stock-based compensation based on the grant-date fair value of the award adjusted for actual forfeitures. The Company will value share-based stock option awards as granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. Defined Benefit Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. On September 30, 2022, the Company proceeded with its notification to withdraw from the Pentegra DB Plan as of September 30, 2022 (see Note 12 Employee Benefits for more information). The Company’s funding policy is to make an annual contribution determined by the Pentegra DB Plan actuaries that will not be less than the minimum required contribution nor greater than the maximum federal income tax deductible limit. Contributions are based on the individual employer’s experience. Supplemental Executive Retirement Plans The Company maintains nonqualified supplemental executive benefit agreements with certain directors and its current and former Presidents and certain officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death and for the crediting to a liability account a fixed amount of compensation, which earns interest at a rate determined in the agreement. The Company recognizes the cost of providing these benefits over the time period the individuals render service through the retirement date. At each measurement date, the aggregate amount accrued equals the then present value of the benefits expected to be provided to the individual in exchange for the individual’s service to that date. Leases All leases with an initial term greater than 12 months recognize: (1) a Right of Use ("ROU" asset), which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term; and (2) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, each measured on a discounted basis. The Company elected to not separate lease and non-lease components. As a lessee, the majority of the operating lease portfolio consists of a real estate lease for one branch location and leases for certain office equipment. The operating leases have remaining lease terms of one year to five years , and in some instances include options to renew for periods up to four years . ROU assets and lease liabilities are not recognized for leases with an initial term of 12 months or less. Operating lease expense represents fixed lease payments for operating leases recognized on a straight-line basis over the applicable lease term (see Note 14, Leases, for more information). Income Taxes Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of provision for income taxes. The Company has evaluated the positions taken on its tax returns filed and the potential impact on its tax status as of December 31, 2022. The Company has concluded that no uncertain tax positions exist at December 31, 2022. Management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the consolidated balance sheets. Management then assesses the likelihood that deferred tax assets will be recovered from future taxable income and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish or adjust a valuation allowance in a period, an expense or benefit is recorded within the tax provision in the consolidated statements of income. Comprehensive (Loss) Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale, are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive (loss) income. The Company also records changes in the fair value of interest rate derivatives used in its cash flow hedging activities, net of deferred income tax, in comprehensive (loss) income. (Loss) Earnings Per Share Basic (loss) earnings per share represents 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 common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Securities that could potentially dilute basic earnings per common share in the future (i.e. unvested restricted stock) were not included in the computation of diluted earnings per common share because to do so would have been antidilutive for 2022 and 2021. All unvested stock based compensation awards exclude the right to receive non-forfeitable dividends and are considered nonparticipating securities and exclude the right to participate with common stock in undistributed earnings for purposes of computing earnings per share. Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives designated as cash flow hedges, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Risks and Uncertainties The Bank and the Bank’s defined benefit pension plan invest in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the consolidated balance sheet or statement of income. On March 11, 2020, the world health organization declared the outbrea |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | 3. Recent Accounting Pronouncements Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of December 31, 2021 , there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period except for the accounting treatment for measuring and recording the Company’s allowance for loan losses. The Company measures and records an allowance for loan losses based upon the incurred loss model while other public companies may be required to calculate their allowance for loan losses based upon the current expected credit loss (“CECL”) model. The CECL approach requires an estimate of the loan loss expected over the life of the loan, while the incurred loss approach delays the recognition of a loan loss until it is probable a loss event has incurred. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). In December 2022, the FASB issued ASU No. 2022-06, “ Reference Rate Reform (Topic 848), ” which defers the sunset date of Topic 848 from December 2022 to December 2024 after which entities will no longer be permitted to apply the relief in Topic 848. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12,“Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies accounting for income taxes by removing specific technical exceptions. The guidance removes the need for companies to analyze whether (1) the exception to the incremental approach for intra-period tax allocation, (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments and (3) the exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses apply in a given period. The amendments in this ASU are effective for smaller reporting companies for fiscal years beginning after December 15, 2021. Early adoption was permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In particular, this guidance requires a lessee of operating or finance leases to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. However, for leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. Under previous U.S. GAAP, a lessee was not required to recognize lease assets and lease liabilities arising from operating leases on the statement of condition. Initially, the FASB approved a proposal to delay the implementation of this standard by one year for smaller reporting companies to years beginning after December 15, 2020. On June 30, 2020, the FASB further delayed the implementation of this standard by one year for smaller reporting companies to years beginning after December 15, 2021. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases,” which clarifies ASU 2016-02 with respect to certain aspects of the update and ASU 2018-11,“Targeted Improvements,” to allow an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the consolidated financial statements. Using the optional transition method discussed above, the Company adopted the new lease guidance on January 1, 2022 and recorded a right-of- use asset in other assets and a corresponding net lease liability in other liabilities at March 31, 2022 (see Note 14, Leases, for more information). Recent Accounting Pronouncements Yet To Be Adopted The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU 2022-2, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” All other creditors must continue to apply the TDR accounting model until they adopt ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Due to the removal of the TDR accounting model, all loan modifications now will be accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities will be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage (that is, year of origination). This ASU becomes effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. While the adoption of this ASU on January 1 2023 may result in new disclosures, it is not expected to have a material impact on the Company’s consolidated financial statements. In January 2021, the FASB issued ASU 2021-1, “ Reference Rate Reform (Topic 848) (Scope), ” which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. This ASU was to become effective immediately for all entities on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. The effective date was extended by the issuance of ASU No. 2022-06, “ Reference Rate Reform (Topic 848), ” which, as noted above, defers the sunset date of Topic 848 from December 2022 to December 2024. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848), ” which provides optional guidance to ease the potential burden in accounting due to reference rate reform. The guidance in this update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made, and hedging relationships entered into, on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard. In February 2020, the FASB issued ASU 2020-2, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) .” This ASU adds an SEC paragraph pursuant to the issuance of SEC SAB Topic No. 119 to the FASB Codification Topic 326 and updates the SEC section of the Codification for the change in the effective dates of Topic 842. This ASU primarily details guidance on what SEC staff would expect a registrant to perform and document when measuring and recording its allowance for credit losses for financial assets recorded at amortized cost. In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also during November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective dates for ASU 2016-02, “ Leases (Topic 842)” was deferred to fiscal years beginning after December 15, 2021. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” to increase stakeholders’ awareness of the amendments and to expedite improvements to the Codification. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses, Topic 326.” This ASU addresses certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. On October 16, 2019, the FASB approved a proposal to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Early adoption is permitted. See the next paragraph for further discussion regarding the implementation of this standard. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which creates a new credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost (including loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected, through an allowance for credit losses that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. The measurement of credit losses for newly recognized financial assets (other than certain purchased assets) and subsequent changes in the allowance for credit losses are recorded in the statement of income as the amounts expected to be collected change. The ASU was originally to be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” extending the implementation date by one year for smaller reporting companies and clarifying that operating lease receivables are outside the scope of Accounting. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. The Company has selected a loss estimation methodology, utilizing a third-party model, and is refining the remaining facets of its CECL model, as well as finalizing internal controls. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU is effective, which will be January 1, 2023. The Company estimates the adoption of the new standard will result in a decrease to its allowance for loan losses (“ALL”). This decrease, though, is expected to be offset by an increase in the allowance for non-cancelable off-balance sheet commitments. The estimated decrease in ALL is due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is much more robust with broader time horizons as compared to the Company's actual historical loss data used under an incurred loss methodology. As the Company completes its final evaluation, the adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. |
Interest Bearing Time Deposits
Interest Bearing Time Deposits With Other Banks | 12 Months Ended |
Dec. 31, 2022 | |
Banking And Thrift1 [Abstract] | |
Interest Bearing Time Deposits With Other Banks | 4. Interest Bearing Time Deposits with Other Banks At December 31, 2022, the Company’s $ 747,000 of time deposits are scheduled to mature during 2023. |
Securities Available-for-Sale
Securities Available-for-Sale | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Securities Available For Sale | 5. Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of December 31, 2022 and 2021: December 31, 2022 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 2,191 $ — $ ( 365 ) $ 1,826 U.S. Government agency small business administration 9,475 — ( 1,116 ) 8,359 Collateralized mortgage obligations issued by the 6,922 8 ( 708 ) 6,222 Residential mortgage-backed securities 26,390 — ( 4,567 ) 21,823 Municipal bonds 69,373 172 ( 7,129 ) 62,416 Corporate debt 500 — ( 3 ) 497 Corporate subordinated debt 5,550 — ( 593 ) 4,957 $ 120,401 $ 180 $ ( 14,481 ) $ 106,100 December 31, 2021 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 6,098 $ — $ ( 127 ) $ 5,971 U.S. Government agency small business administration 5,059 22 ( 36 ) 5,045 Collateralized mortgage obligations issued by the 3,400 1 ( 69 ) 3,332 Residential mortgage-backed securities 23,784 32 ( 484 ) 23,332 Municipal bonds 49,164 1,501 ( 52 ) 50,613 Corporate subordinated debt 3,072 - - 3,072 $ 90,577 $ 1,556 $ ( 768 ) $ 91,365 The amortized cost and fair values of available-for-sale securities at December 31, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2022 Amortized Fair Value (Dollars in thousands) Due in one year or less $ — $ — Due after one year through five years 500 497 Due after five years through ten years 9,378 8,387 Due after ten years 67,736 60,812 Total U.S. Government-sponsored enterprises obligations, 77,614 69,696 U.S. Government agency small business pools guaranteed (1) 9,475 8,359 Collateralized mortgage obligations issued by the FHLMC, (1) 6,922 6,222 Residential mortgage-backed securities (1) 26,390 21,823 Total $ 120,401 $ 106,100 (1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. Proceeds from sales, maturities, principal payments received and gross realized gains and losses on available-for-sale securities were as follows for the years ended December 31: December 31, 2022 2021 (Dollars in thousands) Proceeds from sales, maturities and principal payments $ 9,872 $ 20,037 Gross realized gains 52 588 Gross realized losses ( 799 ) ( 53 ) Net realized (losses) gains $ ( 747 ) $ 535 The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021. Less than 12 Months More than 12 Months Total Number of Fair Unrealized Number of Fair Unrealized Fair Unrealized (Dollars in thousands) December 31, 2022 U.S. Government sponsored 1 $ 453 $ ( 43 ) 3 $ 1,373 $ ( 322 ) $ 1,826 $ ( 365 ) U.S. Government agency small 8 5,947 ( 602 ) 3 2,412 ( 514 ) 8,359 ( 1,116 ) Collateralized mortgage 5 3,212 ( 209 ) 4 2,016 ( 499 ) 5,228 ( 708 ) Residential mortgage 8 4,239 ( 503 ) 23 16,649 ( 4,064 ) 20,888 ( 4,567 ) Municipal bonds 86 49,228 ( 5,900 ) 8 5,769 ( 1,229 ) 54,997 ( 7,129 ) Corporate debt 1 497 ( 3 ) — — — 497 ( 3 ) Corporate subordinated debt 4 4,457 ( 593 ) — — — 4,457 ( 593 ) 113 $ 68,033 $ ( 7,853 ) 41 $ 28,219 $ ( 6,628 ) $ 96,252 $ ( 14,481 ) December 31, 2021 U.S. Government sponsored 7 $ 5,022 $ ( 80 ) 2 $ 949 $ ( 47 ) $ 5,971 $ ( 127 ) U.S. Government agency small 3 2,988 ( 36 ) — — — 2,988 ( 36 ) Collateralized mortgage 4 2,779 ( 69 ) — — — 2,779 ( 69 ) Residential mortgage 22 19,541 ( 399 ) 1 2,304 ( 85 ) 21,845 ( 484 ) Municipal bonds 7 6,494 ( 49 ) 1 584 ( 3 ) 7,078 ( 52 ) 43 $ 36,824 $ ( 633 ) 4 $ 3,837 $ ( 135 ) $ 40,661 $ ( 768 ) In evaluating whether investments have suffered an other-than-temporary decline, management evaluated the amount of the decline compared to cost, the length of time and extent to which fair value has been less than cost, the underlying creditworthiness of the issuer, the fair values exhibited during the year and estimated future fair values. In general, management concluded the declines are due to coupon rates compared to market rates and current economic conditions. The Company does not intend to sell investments with unrealized losses, and it is more likely than not that the Company will not be required to sell these investments before recovery of their amortized cost basis. Based on evaluations of the underlying issuers’ financial condition, current trends and economic conditions, management does not believe any securities suffered an other-than-temporary decline in value as of December 31, 2022. As of December 31, 2022 and 2021, there were no holdings of securities of any issuer, other than the SBA, FHLMC, GNMA and FNMA, whose aggregate carrying value exceeded 10% of stockholders’ equity. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans | 6. Loans The Bank’s lending activities are primarily conducted in and around Dover, New Hampshire and in the areas surrounding its branches. The Bank originates commercial real estate loans, multifamily 5+ dwelling unit loans, commercial and industrial loans, acquisition, development and land loans, one- to four-family residential loans, home equity loans and lines of credit and consumer loans. Most loans originated by the Bank are collateralized by real estate. The ability and willingness of real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic area and the general economy. In response to the COVID-19 pandemic, the Small Business Administration (“SBA”) established the Paycheck Protection Program (“PPP”), which was designed to aid small- and medium-sized businesses through federally guaranteed SBA loans (“PPP loans”) distributed through banks. PPP loans are fully guaranteed as to principal and interest by the SBA. During the years ended December 31, 2022 and 2021, the Bank originated - 0 - and 134 PPP loans, respectively, with aggregate outstanding principal balances of $- 0 - and $ 13.1 million, respectively. As of December 31, 2022 and 2021, total PPP loan principal balances were $- 0 - and $ 5.5 million, respectively, and are included in commercial and industrial loans (C+I). Loans consisted of the following at December 31: December 31, 2022 2021 (Dollars in thousands) Commercial real estate (CRE) $ 80,506 $ 72,057 Multifamily (MF) 8,185 8,998 Commercial and industrial (C+I) 24,059 26,851 Acquisition, development, and land (ADL) 18,490 21,365 1-4 family residential (RES) 251,466 234,199 Home equity loans and lines of credit (HELOC) 10,161 6,947 Consumer (CON) 7,189 4,574 Total loans 400,056 374,991 Net deferred loan costs 2,449 1,650 Allowance for loan losses ( 3,581 ) ( 3,590 ) Net loans $ 398,924 $ 373,051 Transactions in the Allowance for loan losses (“ALL”) for the years ended December 31, 2022 and 2021 by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2020 $ 753 $ 60 $ 267 $ 174 $ 1,656 $ 78 $ 52 $ 302 $ 3,342 Provision for loan losses 80 20 ( 112 ) 4 482 ( 15 ) 20 ( 274 ) 205 Charge-offs — — — — — — — — — Recoveries — — 39 — 1 — 3 — 43 Balance at December 31, 2021 833 80 194 178 2,139 63 75 28 3,590 Balance, December 31, 2021 833 80 194 178 2,139 63 75 28 3,590 Provision for loan losses 109 ( 26 ) ( 14 ) ( 40 ) ( 91 ) 18 38 6 — Charge-offs — — — — — — ( 14 ) — ( 14 ) Recoveries — — 4 — — — 1 — 5 Balance at December 31, 2022 $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 As of December 31, 2022 and 2021, information about loans and the ALL by portfolio segment, are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total December 31, 2022 Loan Balances Individually evaluated for impairment $ — $ — $ — $ — $ 273 $ — $ 5 $ — $ 278 Collectively evaluated for impairment 80,506 8,185 24,059 18,490 251,193 10,161 7,184 — 399,778 Total $ 80,506 $ 8,185 $ 24,059 $ 18,490 $ 251,466 $ 10,161 $ 7,189 $ — $ 400,056 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 942 54 184 138 2,048 81 100 34 3,581 Total $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 December 31, 2021 Loan Balances Individually evaluated for impairment $ 104 $ — $ 28 $ — $ 722 $ 115 $ — $ — $ 969 Collectively evaluated for impairment 71,953 8,998 26,823 21,365 233,477 6,832 4,574 — 374,022 Total $ 72,057 $ 8,998 $ 26,851 $ 21,365 $ 234,199 $ 6,947 $ 4,574 $ — $ 374,991 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 833 80 194 178 2,139 63 75 28 3,590 Total $ 833 $ 80 $ 194 $ 178 $ 2,139 $ 63 $ 75 $ 28 $ 3,590 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2022: 30-59 60-89 90 + Total Current Total Non- (Dollars in thousands) CRE $ — $ — $ — $ — $ 80,506 $ 80,506 $ — MF — — — — 8,185 8,185 — C+I — — — — 24,059 24,059 — ADL — — — — 18,490 18,490 — RES — 84 — 84 251,382 251,466 84 HELOC 5 — — 5 10,156 10,161 — CON 7 — — 7 7,181 7,189 5 $ 12 $ 84 $ — $ 96 $ 399,960 $ 400,056 $ 89 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2021: 30-59 60-89 90 + Total Current Total Non- (Dollars in thousands) CRE $ — $ — $ — $ — $ 72,057 $ 72,057 $ — MF — — — — 8,998 8,998 — C+I — — — — 26,851 26,851 — ADL — — — — 21,365 21,365 — RES — 487 235 722 233,477 234,199 722 HELOC 117 129 — 246 6,701 6,947 115 CON 6 — — 6 4,568 4,574 — $ 123 $ 616 $ 235 $ 974 $ 374,017 $ 374,991 $ 837 There were no loans collateralized by residential real estate property in the process of foreclosure at December 31, 2022 and 2021. The following table provides information on impaired loans as of and for the years ended December 31, 2022 and 2021: As of December 31, 2022 At December 31, 2022 (Dollars in thousands) Recorded Unpaid Related Average Interest With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 273 273 — 446 32 HELOC — — — 57 3 CON 5 5 — 2 — Total impaired loans $ 278 $ 278 $ — $ 505 $ 35 As of December 31, 2021 At December 31, 2021 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — 203 12 ADL — — — — — RES 722 722 — 77 2 HELOC 115 115 — 10 — CON — — — — — Total impaired loans $ 837 $ 837 $ — $ 290 $ 14 There were no loans modified and determined to be a TDR during the year ended December 31, 2022. During 2021, one residential mortgage loan was modified and determined to be a TDR as it did not meet the qualifications of Section 4013 of the CARES Act. At December 31, 2022 and 2021, this loan had a recorded investment of $ 189,000 and $ 195,000 , respectively. The modification agreement defers delinquent interest and escrow payments to the end of the loan. The loan was returned to performing status during June 2022. The allowance for loan losses includes a specific reserve for this TDR of $- 0 - as of December 31, 2022 and 2021, which was determined through a calculation of the present value of estimated cash flows. There have been no defaults within twelve months of the modification. There are no commitments to extend additional credit to these borrowers. Credit Quality Information The Bank utilizes a ten-grade internal loan rating system for its commercial real estate, multifamily, commercial and industrial and acquisition, development and land loans. Residential real estate, home equity loans and line of credit and consumer loans are considered “pass” rated loans until they become delinquent. Once delinquent, loans can be rated an 8, 9 or 10 as applicable. Loans rated 1 through 6: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 7: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 8: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Bank will sustain some loss if the weakness is not corrected. Loans rated 9: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 10: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted and should be charged off. On an annual basis, or more often if needed, the Bank formally reviews the ratings on all commercial and industrial, commercial real estate, acquisition, development and land loans and multifamily loans. On a periodic basis, the Bank engages an independent third party to review a significant portion of loans within these segments and to assess the credit risk management practices of its commercial lending department. Management uses the results of these reviews as part of its annual review process and overall credit risk administration. On a quarterly basis, the Bank formally reviews the ratings on all residential real estate and home equity loans if they have become delinquent. Criteria used to determine ratings consist of loan-to-value ratios and days delinquent. The following presents the internal risk rating of loans by portfolio segment as of December 31, 2022: (Dollars in thousands) Pass Special Substandard Total CRE $ 77,820 $ 2,686 $ — $ 80,506 MF 8,185 — — 8,185 C+I 24,059 — — 24,059 ADL 18,490 — — 18,490 RES 251,382 — 84 251,466 HELOC 10,161 — — 10,161 CON 7,184 — 5 7,189 Total $ 397,281 $ 2,686 $ 89 $ 400,056 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2021: (Dollars in thousands) Pass Special Substandard Total CRE $ 69,252 $ 2,701 $ 104 $ 72,057 MF 8,998 — — 8,998 C+I 26,823 — 28 26,851 ADL 21,365 — — 21,365 RES 233,477 — 722 234,199 HELOC 6,832 — 115 6,947 CON 4,574 — — 4,574 Total $ 371,321 $ 2,701 $ 969 $ 374,991 Certain directors and executive officers of the Bank and companies in which they have significant ownership interests were customers of the Bank during 2022 and 2021. For the years ended December 31, 2022 and 2021, activity in these loans was as follows: December 31, (Dollars in thousands) 2022 2021 Loans outstanding – beginning of year $ 4,849 $ 5,279 Principal payments ( 576 ) ( 430 ) Advances 170 — Loans outstanding – end of year $ 4,443 $ 4,849 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | 7. Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $ 36.0 million and $ 40.6 million at December 31, 2022 and 2021, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 20 Fair Value of Assets and Liabilities for more information). Changes to the balance of mortgage servicing rights are recorded in loan servicing fee income in the Company’s consolidated statements of (loss) income. The Bank’s mortgage servicing activities include: collecting principal, interest and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Loan servicing fee income, including late and ancillary fees, was $ 126,000 and $ 163,000 for the years ended December 31, 2022 and 2021, respectively. Servicing fee income is recorded in loan servicing fee income in the Company’s consolidated statements of income. The Bank’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in the Bank’s market areas. The following summarizes activity in mortgage servicing rights for the years ended December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Balance, beginning of year $ 322 $ 273 Additions 6 61 Payoffs ( 28 ) ( 60 ) Change in fair value due to change in assumptions 57 48 Balance, end of year $ 357 $ 322 |
Land, Buildings and Equipment
Land, Buildings and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Land, Buildings and Equipment | 8. Land, Buildings and Equipment Land, buildings and equipment consisted of the following at December 31, 2022 and 2021: (Dollars in thousands) 2022 2021 Land $ 995 $ 995 Buildings 3,167 3,167 Building & leasehold improvements 3,831 3,820 Furniture, fixtures and equipment 4,529 4,438 12,522 12,420 Less accumulated depreciation ( 8,341 ) ( 7,854 ) $ 4,181 $ 4,566 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | 9. Deposits Deposits consisted of the following at December 31, 2022 and 2021: (Dollars in thousands) 2022 2021 NOW and demand deposits $ 204,739 $ 206,235 Money market deposits 60,931 71,317 Savings deposits 54,954 57,365 Time deposits of $250,000 and greater 7,796 6,281 Time deposits less than $250,000 53,943 52,045 $ 382,363 $ 393,243 At December 31, 2022, the scheduled maturities of time deposits were as follows: (Dollars in thousands) Total 2023 $ 37,024 2024 12,666 2025 7,307 2026 3,379 2027 1,363 $ 61,739 The total includes $ 18.1 million of brokered time deposits which were bifurcated into amounts below the FDIC insurance limit at December 31, 2022 and 2021. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. Borrowings A summary of borrowings from the FHLB are as follows: December 31, 2022 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 96,729 2023 0.44 % to 4.38 % – fixed 800 2024 0.00 % – fixed 520 2025 0.00 % – fixed 718 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 99,397 December 31, 2021 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 12,262 2022 0.00 % to 0.31 % – fixed 15,000 2023 0.44 % to 0.45 % – fixed 800 2024 0.00 % – fixed 520 2025 0.00 % – fixed 250 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 29,462 All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans and commercial real estate loans, discounted by a certain percentage, in an aggregate amount greater than or equal to outstanding advances. The Bank’s unused remaining available borrowing capacity at the FHLB was approximately $ 36.5 million and $ 109.7 million at December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. As of December 31, 2022 and 2021 borrowings include $ 2.7 million and $ 4.5 million, respectively, of advances through the FHLB’s Jobs for New England program where certain qualifying small business loans that create or preserve jobs, expand woman-, minority- or veteran-owned businesses, or otherwise stimulate the economy in New England communities are offered at an interest rate of 0 %. At December 31, 2022 and 2021, the Bank had an overnight line of credit with the FHLB that may be drawn up to $ 3.0 million. Additionally, the Bank had a total of $ 5.0 million of unsecured Fed Funds borrowing lines of credit with two correspondent banks. The entire balance of all these credit facilities was available at December 31, 2022 and 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The current and deferred components of income tax (benefit) expense consisted of the following for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Federal State Total Federal State Total (Dollars in thousands) Current $ ( 59 ) $ 109 $ 50 $ 334 $ ( 42 ) $ 292 Deferred ( 369 ) ( 132 ) ( 501 ) 117 192 309 $ ( 428 ) $ ( 23 ) $ ( 451 ) $ 451 $ 150 $ 601 Total income tax (benefit) expense is different from the amounts computed by applying the U.S. Federal income tax rates in effect to income before income taxes. The reasons for these differences are as follows for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Amount % of Amount % of (Dollars in thousands) Computed “expected” tax (benefit) expense $ ( 213 ) ( 21.0 )% $ 677 21.0 % State tax (benefit) expense, net of federal tax benefit ( 18 ) ( 1.8 ) 118 3.7 BOLI income ( 21 ) ( 2.1 ) ( 22 ) ( 0.7 ) Valuation allowance 62 6.1 — — Income on tax exempt securities ( 252 ) ( 24.8 ) ( 178 ) ( 5.5 ) Other ( 8 ) ( 0.8 ) 6 0.2 $ ( 451 ) ( 44.4 )% $ 601 18.7 % Components of deferred tax assets and liabilities at December 31, 2022 and 2021 are as follows: December 31, 2022 2021 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 977 $ 988 Deferred compensation liabilities 494 468 Contribution carryforward 171 120 State tax credit carryforward 62 52 Depreciation 16 — Securities available-for-sale 3,873 — Net operating loss carryforward 707 — Other 48 56 Subtotal 6,348 1,684 Less: valuation allowance ( 171 ) ( 60 ) Total deferred tax assets 6,177 1,624 Deferred tax liabilities: Depreciation — ( 45 ) Interest rate swaps ( 260 ) ( 54 ) Securities available-for-sale — ( 213 ) Prepaid expenses ( 43 ) ( 43 ) Net deferred loan costs ( 661 ) ( 447 ) Mortgage servicing rights ( 96 ) ( 87 ) Total deferred tax liabilities ( 1,060 ) ( 889 ) Net deferred tax assets, included in other assets $ 5,117 $ 735 The calculation of the Company’s charitable contribution carryforward deferred tax asset is based upon a carryforward of approximately $ 633,000 and $ 443,000 of charitable contributions at December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, it has been determined that it is more likely than not that a portion of the benefit from this charitable contribution carryforward will not be realized prior to expiration. As a result, a valuation allowance of $ 171,000 and $ 60,000 has been provided on this deferred tax asset for the years ended December 31, 2022 and 2021, respectively. The ultimate realization of this deferred tax asset is dependent upon the generation of future taxable income. The Internal Revenue Federal Tax Code (the “Code”) limits the charitable contribution deduction in any one year to 10 % of taxable income, computed without regard to charitable contributions, certain special deductions, net operating loss carry backs and capital loss carry backs. However, the Code allows a corporation to carry forward the excess charitable contributions to each of the five immediately succeeding years, subject to a 10% limitation in each of those years. Thus, the Company would have six years in which to utilize the December 31, 2019 charitable contribution carryforward. The valuation allowance for this net deferred tax asset may be adjusted in the future if estimates of taxable income during the carryforward period are reduced or increased. All other deferred tax assets as of December 31, 2022 and 2021 have not been reduced by a valuation allowance because management believes that it is more likely than not that the full amount of these deferred tax assets will be realized. As of December 31, 2022, the Company has a Federal and New Hampshire net operating loss carryforward of $ 2.7 million and $ 2.4 million, respectively. The Federal net operating loss carryforward can be carried forward indefinitely but is limited to 80 % of each subsequent year’s taxable income. The New Hampshire net operating loss carryforward expires in 2032 and is also limited to 80 % of each subsequent year’s taxable income. Additionally, as of December 31, 2022, the Company has a New Hampshire Business Enterprise Tax credit carry forward of $ 78,000 that expires in 2029 through 2032. The tax reserve for loan losses at the Company’s base year amounted to approximately $ 2.3 million. If any portion of the reserve is used for purposes other than to absorb loan losses, approximately 150 % of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve to only absorb loan losses, a deferred tax liability of approximately $ 623,000 has not been provided. The Company does not have any uncertain tax positions at December 31, 2022 or 2021 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2022 and 2021. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2019 through 2022. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2019 are open. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 12. Employee Benefits Employee Stock Ownership Plan The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The Company uses the principal and interest method to determine the release of shares amount. The number of shares committed to be released per year through 2038 is 11,924 . The ESOP funded its purchase of 238,473 shares through a loan from the Company equal to 100 % of the aggregate purchase price of the common stock. The ESOP trustee is repaying the loan principally through the Bank’s contributions to the ESOP over the remaining loan term of 16.5 years. At December 31, 2022 and 2021, the remaining principal balance on the ESOP debt was $ 2.0 million and $ 2.1 million, respectively. Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2022 and 2021, was $ 124,000 and $ 115,000 , respectively. At December 31, 2022 and 2021, total unearned compensation for the ESOP was $ 1.9 million and $ 2.0 million, respectively. December 31, 2022 2021 Shares held by the ESOP include the following: Allocated 35,772 23,848 Committed to be allocated 11,924 11,924 Unallocated 190,777 202,701 Total 238,473 238,473 The fair value of unallocated shares was approximately $ 1.8 million and $ 2.2 million at December 31, 2022 and 2021, respectively. 401(k) Plan During the years ended December 31, 2022 and 2021, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company also makes matching and profit-sharing contributions to eligible participants in accordance with plan provisions. The Company’s contributions for the years ended December 31, 2022 and 2021 was $ 202,000 and $ 189,000 , respectively. Pension Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan's Employer Identification Number is 13-5645888 and the Plan Number is 333. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413 (c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The funded status (fair value of plan assets divided by funding target) per the 2022 valuation report as of July 1, 2022 was 96.24 %. The fair value of plan assets reflects any contributions received through June 30, 2022. The funded status (fair value of plan assets divided by funding target) per the 2021 valuation report as of July 1, 2021 was 104.99 %. The fair value of plan assets reflects any contributions received through June 30, 2021. Based upon the funded status of the Pentegra DB Plan as of July 1, 2022, no funding improvement plan or rehabilitation plan has been implemented or is pending as of December 31, 2022. The Bank’s contributions to the Pentegra DB Plan during the year ended December 31, 2022 totaled $ 200,000 and were not more than 5 % of the total contributions to the Pentegra DB Plan for the plan year ending June 30, 2021. Total pension plan expense for the years ended December 31, 2022 and 2021 was $ 1.5 million and $ 200,000 , respectively, and is included in salaries and employee benefits in the accompanying consolidated statements of income. The Company did not pay a surcharge to the Pentegra DB Plan during the years ended December 31, 2022 or 2021. The Company enacted a “hard freeze” for the Pentegra DB Plan as of December 31, 2018, eliminating all future service-related accruals for participants. Prior to this enactment the Company maintained a “soft freeze” status that continued service-related accruals for its active participants with no new participants permitted into the Pentegra DB Plan. On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. On September 30, 2022, the Company proceeded with its notification to withdraw from the Pentegra DB Plan as of September 30, 2022. As a result, a contribution amount that achieves a funded status of 100 % - market value of plan assets equal to the final withdrawal liability - is due. The final withdrawal liability amounted to $ 1.5 million of which $ 200,000 was paid prior to December 31, 2022. At December 31, 2022, $ 1.3 million of pension expense was accrued and subsequently paid in January 2023. Supplemental Executive Retirement Plans Salary Continuation Plan The Company maintains a nonqualified supplemental retirement plan for its current President and former President. The plan provides supplemental retirement benefits payable in installments over a period of years upon retirement or death. The recorded liability at December 31, 2022 and 2021 relating to this supplemental retirement plan was $ 660,000 and $ 634,000 , respectively. The discount rate used to determine the Company’s obligation was 5.00 % during the years ended December 31, 2022 and 2021. The projected rate of salary increase for its current President was 3 % for the years ended December 31, 2022 and 2021. For the years ended December 31, 2022 and 2021, the expense of this salary retirement plan was $ 82,000 . Executive Supplemental Retirement Plan The recorded liability at December 31, 2022 and 2021 relating to the supplemental retirement plan for the Company’s former President was $ 47,000 and $ 90,000 , respectively. The discount rate used to determine the Company’s obligation was 6.25 % during the years ended December 31, 2022 and 2021. For the years ended December 31, 2022 and 2021, the expense of this supplemental plan was $ 3,000 and $ 6,000 , respectively. Endorsement Method Split Dollar Plan The Company has an endorsement method split dollar plan for a former President. The recorded liability at December 31, 2022 and 2021 relating to this supplemental executive benefit agreement was $ 34,000 and $ 35,000 , respectively. For the years ended December 31, 2022 and 2021, the expense of this supplemental plan was $- 0 - and $ 1,000 , respectively. Directors’ Deferred Supplemental Retirement Plan The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at December 31, 2022 and 2021 relating to this plan was $ 537,000 and $ 550,000 , respectively. The discount rate used to determine the Company’s obligation was 6.25 % during the years ended December 31, 2022 and 2021. For the years ended December 31, 2022 and 2021 the expense of the supplemental retirement plan was $ 75,000 and $ 63,000 , respectively. The Company enacted a “hard freeze” for this supplemental retirement plan as of January 1, 2022. On February 10, 2022, the Bank and the non-employee members of the board of directors of the Bank entered into amendments to the Supplemental Director Retirement Agreements (the “Agreements”) previously entered into by the Bank and the directors. The amendments eliminate the formula for determining the normal annual retirement benefit (previously “ 70 % of Final Base Fee”) and replaces it with a fixed annual benefit of $ 20,000 . The amendments also eliminate the formula for determining the benefit payable on a change in control (previously tied to the normal annual retirement formula with certain imputed increases in the Base Fee) and replacing it with a fixed amount equal to the present value of $ 200,000 . The effect of the amendments is to eliminate the variable and increasing costs associated with the Agreements. Instead, since the normal annual retirement benefit will be a fixed amount, the future costs associated with the Agreements is now more predictable. It is the intention of the Bank that no new directors of the Bank would enter into similar agreements. Additionally, the Company has a deferred directors’ fee plan which allows members of the board of directors to defer the receipt of fees that otherwise would be paid to them in cash. At December 31, 2022 and 2021, the total deferred directors’ fees amounted to $ 553,000 and $ 420,000 , respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | 13. Stock Based Compensation Equity Incentive Plan Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock and the granting of shares of restricted stock awards and restricted stock units. The 2021 Plan authorizes the issuance or delivery to participants of up to 417,327 shares of common stock. Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 298,091 shares, and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 119,236 shares. The exercise price of stock options may not be less than the fair market value on the date the stock option is granted. Further, stock options may not be granted with a term that is longer than 10 years. As of December 31, 2022, no stock options have been granted. On November 18, 2021, 118,270 restricted stock awards were granted to directors and certain members of management at $ 9.99 per share. The total fair value related to the grant was $ 1.2 million. Restricted stock awards time-vest over a three year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting rights when granted and dividend rights when vested. A summary of non-vested restricted shares outstanding as of December 31, 2022 and 2021, and changes during the year ended is presented below: 2022 2021 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Restricted stock Non-vested at beginning of year 118,270 $ 9.99 — — Granted — — 118,270 $ 9.99 Vested ( 38,754 ) 9.99 — — Forfeited ( 2,000 ) 9.99 — — Non-vested at end of year 77,516 $ 9.99 118,270 $ 9.99 For the years ended December 31, 2022 and 2021, the expense recognized for this equity incentive plan was $ 387,000 and $ 46,000 , respectively, which provided a tax benefit of $ 105,000 and $ 12,000 , respectively. At December 31, 2022 and 2021, total unrecognized compensation expense for this equity incentive plan was $ 729,000 and $ 1.1 million, respectively, with a 1.9 and 2.9 year weighted average future recognition period, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 14. Leases The Company is obligated under various lease agreements for one of its branch offices and certain equipment. These agreements are accounted for as operating leases and their terms expire between 2023 and 2027 and, in some instances, contain options to renew for periods up to four years . The Company has no financing leases. The Company adopted ASU 2016-02 –Leases (Topic 842)– effective January 1, 2022 and began recognizing its operating leases on its consolidated balance sheet by recording a net lease liability, representing the Company’s legal obligation to make these lease payments, and a ROU asset, representing the Company’s legal right to use the leased assets. The Company, by policy, does not include renewal options for leases as part of its ROU asset and lease liabilities unless they are deemed reasonably certain to exercise. The Company does not have any sub-lease agreements. The following table summarizes information related to the Company’s right-of-use asset and net lease liability: At December 31, 2022 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 202 Other Assets Net lease liability 202 Other Liabilities The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is either implicit in the lease or, when such a rate cannot be readily determined, the Company’s incremental borrowing rate is used. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. The components of operating lease cost and other related information are as follows: Year Ended December 31, 2022 (Dollars in thousands) Operating lease cost $ 54 Short-term lease cost — Variable lease cost (Cost excluded from lease payments) — Sublease income — Total operating lease cost 54 Other Information: Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases 54 Operating lease - operating cash flows (liability reduction) $ — Weighted average lease term - years 4.37 Weighted average discount rate 3.29 % The total minimum lease payments due in future periods for lease agreements in effect at December 31, 2022 were as follows: As of December 31, 2022 Future Minimum Lease Payments (Dollars in thousands) 2023 $ 52 2024 49 2025 45 2026 43 2027 29 Total minimum lease payments 218 Less: interest ( 16 ) Total lease liability $ 202 The Company's obligation under the operating lease related to one of its branches expires in August 2027 and has future lease payments of $ 188,000 as of December 31, 2022. As of December 31, 2021, this lease was scheduled to expire in June 2022 and had future lease payments of $ 16,000 . Total lease expense was $ 33,000 and $ 32,000 for the years ended December 31, 2022 and 2021. This lease agreement contains clauses calling for escalation of minimum lease payments contingent on increases in LIBOR, or a similar replacement index, and the consumer price index. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Other Comprehensive (Loss) Income | 15. Other Comprehensive (Loss) Income The Company reports certain items as “other comprehensive income” and reflects total accumulated other comprehensive (loss) income (“AOCI”) in the consolidated financial statements for all years containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss: Year Ended December 31, Reclassification Adjustment 2022 2021 Affected Line Item (Dollars in thousands) Losses (gains) on sale of securities $ 747 $ ( 535 ) Securities losses (gains), net Tax effect ( 202 ) 145 Income tax (benefit) expense 545 ( 390 ) Net (loss) income Net amortization of bond premiums 1,009 699 Interest on debt securities Tax effect ( 274 ) ( 189 ) Income tax (benefit) expense 735 510 Net (loss) income Net interest (income) expense on swaps ( 115 ) 48 Interest expense on borrowings Tax effect 31 ( 13 ) Income tax (benefit) expense ( 84 ) 35 Net (loss) income Total reclassification adjustments $ 1,196 $ 155 The following tables present the changes in each component of AOCI for the periods indicated: (Dollars in thousands) Net Unrealized (Losses) (1) Net Unrealized Gains (Losses) on Cash Flow (1) AOCI (1) Balance at December 31, 2020 $ 1,481 $ ( 100 ) $ 1,381 Other comprehensive (loss) income before ( 1,026 ) 211 ( 815 ) Amounts reclassified from AOCI 120 35 155 Other comprehensive (loss) income ( 906 ) 246 ( 660 ) Balance at December 31, 2021 $ 575 $ 146 $ 721 Balance at December 31, 2021 $ 575 $ 146 $ 721 Other comprehensive (loss) income before ( 12,283 ) 639 ( 11,644 ) Amounts reclassified from AOCI 1,280 ( 84 ) 1,196 Other comprehensive (loss) income ( 11,003 ) 555 ( 10,448 ) Balance at December 31, 2022 $ ( 10,428 ) $ 701 $ ( 9,727 ) (1) All amounts are net of tax |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments With Off Balance Sheet Risk Commitment And Contingencies [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies | 16. Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, unadvanced funds on loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided 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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but generally includes secured interests in mortgages. Standby letters of credit are conditional commitments issued by the Bank to guarantee performance by a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Notional amounts of financial instruments with off-balance sheet credit risk are approximately as follows as of December 31: 2022 2021 Unadvanced portions of loans $ 44,929 $ 42,781 Commitments to originate loans 16,134 15,103 Standby letters of credit 302 318 In the ordinary course of business, the Company may be subject to various legal proceedings. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings will not be material to the consolidated balance sheet or consolidated statements of income. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Regulatory Matters [Abstract] | |
Regulatory Matters | 17. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below). As of December 31, 2022, the most recent notification from the Office of the Comptroller of the Currency categorized the Bank, as well capitalized under the regulatory framework, for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital amounts and ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes that, as of December 31, 2022 and 2021, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer, at those dates. The following table presents actual and required capital ratios as of December 31, 2022 and 2021 for the Bank under the Basel Committee on Banking Supervisions capital guidelines for U.S. banks (“Basel III Capital Rules”) as fully phased-in on January 1, 2019. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Minimum Minimum Capital Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital (to risk- weighted assets) $ 52,475 15.53 % $ 27,028 8.00 % $ 33,785 10.00 % $ 35,474 10.50 % Tier 1 Capital (to risk- weighted assets) 48,821 14.45 20,271 6.00 27,028 8.00 28,717 8.50 Tier 1 Capital (to average assets) 48,821 9.20 21,224 4.00 26,530 5.00 21,224 4.00 Common Equity Tier 1 (to risk-weighted assets) 48,821 14.45 15,203 4.50 21,960 6.50 23,649 7.00 As of December 31, 2021 Total Capital (to risk-weighted assets) $ 52,798 17.87 % $ 23,641 8.00 % $ 29,546 10.00 % $ 31,029 10.50 % Tier 1 Capital (to risk-weighted assets) 49,151 16.63 17,731 6.00 23,644 8.00 25,119 8.50 Tier 1 Capital (to average assets) 49,151 9.92 19,811 4.00 24,774 5.00 19,811 4.00 Common Equity Tier 1 (to risk-weighted assets) 49,151 16.63 13,298 4.50 19,211 6.50 20,686 7.00 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Treasury Stock | 18. Treasury Stock Common Stock Repurchases On September 23, 2020, the board of directors of First Seacoast Bancorp (a federal corporation) authorized the repurchase of up to 136,879 shares of First Seacoast Bancorp's (a federal corporation) outstanding common stock, which equals approximately 2.2 % of all shares then outstanding and approximately 5.0 % of the then outstanding shares owned by stockholders other than First Seacoast Bancorp, MHC. The Company holds repurchased shares in its treasury. As of December 31, 2022 and 2021, First Seacoast Bancorp (a federal corporation) had repurchased 136,879 and 78,433 shares of its common stock, respectively. Equity Incentive Plan A certain member of management elected to surrender 593 shares of a vested restricted stock award on November 18, 2022 in lieu of a cash payment for the tax liabilities associated with the time-vestng of their award. The Company holds these shares in its treasury. As of December 31, 2022 and 2021, the Company held a total of 137,472 and 78,433 shares in its treasury, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 19. Derivatives and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company utilizes interest rate swap agreements as part of its asset liability management strategy. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. These derivative instruments are designated as cash flow hedges with changes in the fair value of the derivative recorded in accumulated other comprehensive income and recognized in earnings when the hedged transaction affects earnings. The hedges were determined to be effective and the Company expects the hedges to remain effective during the remaining terms of the swaps. The Company entered into two $ 5 million notional interest rate swaps that have been designated as cash flow hedges on 90-day advances from FHLB. The purpose of these cash flow hedges is to reduce potential interest rate risk by swapping a variable rate borrowing to a fixed rate. Management deemed it prudent to limit the variability of these interest payments by entering into these interest rate swap agreements. These agreements provide for the Company to receive payments at a variable rate determined by a specific index (three-month LIBOR) in exchange for making payments at a fixed rate. Publication of LIBOR is expected to cease in December of 2024. The swap agreements allow for substitution of an alternative reference rate such as the secured overnight financing rate (“SOFR”) at that time. The changes in the fair value of interest rate swaps are reported in other comprehensive income and are subsequently reclassified into interest expense in the period that the hedged transactions affect earnings. For the years ended December 31, 2022 and 2021, the change in fair value for these derivative instruments was $ 761,000 and $3 37,000 , respectively. At December 31, 2022 and 2021, the fair value of interest rate swap derivatives resulted in an asset of $ 961,000 and $ 200,000 , respectively, and is recorded in other assets. These interest rate swaps were unwound during January 2023 at a gain of $ 849,000 (see Note 22 Subsequent Events for more information). The following tables summarize the Company’s derivatives associated with its interest rate risk management activities: December 31, 2022 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68 % $ 5,000 $ 431 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74 % $ 5,000 $ 530 $ — Total Hedging Instruments $ 10,000 $ 961 $ — Hedged Items: Variability in cash flows N/A $ — $ 10,000 December 31, 2021 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68 % $ 5,000 $ 85 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74 % $ 5,000 $ 115 $ — Total Hedging Instruments $ 10,000 $ 200 $ — Hedged Items: Variability in cash flows N/A $ — $ 10,000 The following table summarizes the effect of cash flow hedge accounting on the consolidated statements of income for the years ended December 31, 2022 and 2021: Location and Amount of Income (Loss) Recognized in 2022 2021 (Dollars in thousands) Interest Other Interest Other The effect of cash flow hedging accounting: Amount reclassified from AOCI into expense $ 115 $ — $ ( 48 ) $ — The credit risk associated with these interest rate swaps is the risk of default by the counterparty. To minimize this risk, the Company only enters into interest rate swaps agreements with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements do not represent amounts exchanged by the parties and, therefore, are not a measure of the potential loss exposure. Risk management results for the years ended December 31, 2022 and 2021, related to the balance sheet hedging of $ 10.0 million of 90-day FHLB advances, included in borrowings, indicate that the hedge was 100% effective, and there was no component of the derivative instruments’ unrealized gain or loss which was excluded from the assessment of hedge effectiveness. As of December 31, 2022 and 2021, the Company posted $ 535,000 and $ 526,000 , respectively, of cash to the counterparty as collateral on its interest rate swap contracts, which was presented within cash and due from banks on the consolidated balance sheets. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Fair Values Of Assets And Liabilities [Abstract] | |
Fair Values of Assets and Liabilities | 20. Fair Values of Assets and Liabilities Determination of Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the observability and reliability of the assumptions used to determine fair value. Level 1 – Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented therein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value at December 31, 2022 and 2021. Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following: Securities Available-for-Sale : The Company’s investment in U.S. Government-sponsored entities bonds, U.S Government agency small business administration pools guaranteed by the SBA, collateralized mortgage obligations issued by the FHLMC, FNMA, and GNMA residential mortgage-backed securities, other municipal bonds, corporate debt and corporate subordinated debt is generally classified within Level 2 of the fair value hierarchy. For these securities, the Company obtains fair value measurements from independent pricing services or uses fair value measurements considering observable market data. The fair value measurements consider observable data that may include reported trades, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. Mortgage Servicing Rights : Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (see Note 7 Loan Servicing, for more information). These assumptions are inherently sensitive to change as these unobservable inputs are not based on quoted prices in active markets or otherwise observable. Derivative Instruments and Hedges: The valuation of these instruments is determined using the discounted cash flow method on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 December 31, 2022 (Dollars in thousands) Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 1,826 $ — $ 1,826 $ — U.S. Government agency small business 8,359 — 8,359 — Collateralized mortgage obligations issued by the 6,222 — 6,222 — Residential mortgage-backed securities 21,823 — 21,823 — Municipal bonds 62,416 — 62,416 — Corporate debt 497 — 497 — Corporate subordinated debt 4,957 — 4,957 — Other assets: Mortgage servicing rights $ 357 — — $ 357 Derivatives 961 — 961 — Total Level 1 Level 2 Level 3 December 31, 2021 (Dollars in thousands) Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 5,971 $ — $ 5,971 $ — U.S. Government agency small business 5,045 — 5,045 Collateralized mortgage obligations issued by the 3,332 — 3,332 — Residential mortgage-backed securities 23,332 — 23,332 — Municipal bonds 50,613 — 50,613 — Corporate subordinated debt 3,072 — 3,072 — Other assets: Mortgage servicing rights $ 322 $ — $ — $ 322 Derivatives 200 — 200 — For the years ended December 31, 2022 and 2021, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage (1) Balance as of January 1, 2022 $ 322 Included in net income 35 Balance as of December 31, 2022 $ 357 Total unrealized net gains (losses) included in net income $ — Balance as of January 1, 2021 $ 273 Included in net income 49 Balance as of December 31, 2021 $ 322 Total unrealized net gains (losses) included in net income $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income. For Level 3 assets measured at fair value on a recurring basis as of December 31, 2022 and 2021, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2022 (Dollars in thousands) Valuation Technique Description Range Weighted (1) Fair Mortgage Servicing Discounted Cash Flow Prepayment Rate 6.48 % - 23.49 % 7.78 % $ 357 Discount Rate 9.50 % - 9.50 % 9.50 % Delinquency Rate 2.13 % - 2.79 % 2.24 % Default Rate 0.14 % - 0.20 % 0.15 % December 31, 2021 (Dollars in thousands) Valuation Technique Description Range Weighted (1) Fair Mortgage Servicing Discounted Cash Flow Prepayment Rate 6.63 % - 25.56 % 13.39 % $ 322 Discount Rate 9.00 % - 9.00 % 9.00 % Delinquency Rate 2.82 % - 3.63 % 2.96 % Default Rate 0.08 % - 0.14 % 0.13 % (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average prepayment rate, weighted-average discount rate, weighted average delinquency rate and weighted-average default rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other. The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Observable and unobservable inputs are entered into this model as prescribed by an independent third party to arrive at an estimated fair value. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods may include certain impaired loans reported at the fair value of the underlying collateral. Fair value is measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, real estate collateral related nonrecurring fair value measurement adjustments have generally been classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace, and therefore, such valuations have been classified as Level 3. Financial assets measured at fair value on a non-recurring basis during the reported periods also include loans held for sale. Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. The fair values for loans held for sale are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality and are included in Level 3. At December 31, 2022 and 2021, there were no assets measured at fair value on a nonrecurring basis. Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis generally include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, are remeasured at fair value through a write-down included in other non-interest expense. There were no foreclosed assets at December 31, 2022 or 2021. ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. ASU 2016-01 requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The exit price notion is a market-based measurement of fair value that is represented by the price to sell an asset or transfer a liability in the principal market (or most advantageous market in the absence of a principal market) on the measurement date. At December 31, 2022 and 2021, fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Summary of Fair Values of Financial Instruments not Carried at Fair Value The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments not carried at fair value at December 31 are as follows: Carrying Fair Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2022 Financial Assets: Cash and due from banks $ 8,250 $ 8,250 $ 8,250 $ — $ — Interest-bearing time deposits with other banks 747 747 — 747 — Federal Home Loan Bank stock 3,502 3,502 — 3,502 — Bank-owned life insurance 4,561 4,561 — 4,561 — Loans, net 398,924 361,402 — — 361,402 Accrued interest receivable 1,988 1,988 1,988 — — Financial Liabilities: Deposits $ 382,363 $ 379,714 $ 320,624 $ 59,090 $ — Advances from Federal Home Loan Bank 99,397 97,675 — 97,675 — Mortgagors’ tax escrow 938 938 — 938 — Accrued interest payable 95 95 95 — — December 31, 2021 Financial Assets: Cash and due from banks $ 6,638 $ 6,638 $ 6,638 $ — $ — Interest-bearing time deposits with other banks 1,245 1,245 — 1,245 — Federal Home Loan Bank stock 1,688 1,688 — 1,688 — Bank-owned life insurance 4,461 4,461 — 4,461 — Loans, net 373,051 371,587 — — 371,587 Accrued interest receivable 1,499 1,499 1,499 — — Financial Liabilities: Deposits $ 393,243 $ 393,145 $ 334,917 $ 58,228 $ — Advances from Federal Home Loan Bank 29,462 29,063 — 29,063 — Mortgagors’ tax escrow 652 652 — 652 — Accrued interest payable 33 33 33 — — |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 21. Condensed Financial Statements of Parent Company Financial information pertaining to First Seacoast Bancorp only is as follows: CONDENSED BALANCE SHEETS December 31, 2022 2021 (Dollars in thousands) ASSETS Cash held at First Seacoast Bank $ 9,346 $ 9,785 Investment in First Seacoast Bank 37,925 48,477 Loan to First Seacoast Bank ESOP 2,025 2,105 Deferred tax asset — 60 Other assets 41 43 Total assets $ 49,337 $ 60,470 LIABILITIES Other liabilities $ — $ 2 Total liabilities — 2 STOCKHOLDERS’ EQUITY Stockholders’ equity 49,337 60,468 Total liabilities and stockholders’ equity $ 49,337 $ 60,470 CONDENSED STATEMENTS OF (LOSS) INCOME For the Year Ended 2022 2021 (Dollars in thousands) Income: Interest on ESOP loan $ 110 $ 115 Expense: Miscellaneous expense 4 3 Income before income tax expense and equity in 106 112 Income tax expense 62 — Net income before equity in undistributed net 44 112 Equity in undistributed net (loss) income of ( 609 ) 2,509 Net (loss) income $ ( 565 ) $ 2,621 CONDENSED STATEMENTS OF CASH FLOWS For the Year Ended 2022 2021 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ ( 565 ) $ 2,621 Adjustments to reconcile net (loss) income to net Undistributed net loss (income) of First Seacoast Bank 609 ( 2,509 ) Deferred tax expense 60 25 Decrease (increase) in other assets 2 ( 25 ) Decrease in other liabilities ( 2 ) ( 5 ) Net cash provided by operating activities 104 107 CASH FLOWS FROM INVESTING ACTIVITIES: Principal payments received on ESOP 80 75 Net cash provided by investing activities 80 75 CASH FLOWS FROM FINANCING ACTIVITIES: Treasury stock purchases ( 623 ) ( 515 ) Net cash used by financing activities ( 623 ) ( 515 ) Net change in cash ( 439 ) ( 333 ) Cash at beginning of year 9,785 10,118 Cash at end of year $ 9,346 $ 9,785 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On January 17, 2023, the Company terminated both of its interest rate swap derivative instruments at a gain of $ 849,000 . Also, $ 536,000 of cash posted to the counterparty as collateral on these interest rate swaps contracts was returned to the Company. On January 19, 2023, the conversion of First Seacoast Bancorp, MHC from mutual to stock form and the related stock offering by First Seacoast Bancorp, Inc., the new holding company for First Seacoast Bank, was completed. First Seacoast Bancorp, Inc.’s common stock began trading on the Nasdaq Capital Market under the trading symbol “FSEA” on January 20, 2023. As a result of the subscription offering, the community offering and the syndicated community offering, First Seacoast Bancorp, Inc. sold a total of 2,805,000 shares of its common stock at a price of $ 10.00 per share, which includes 224,400 shares sold to First Seacoast Bank’s Employee Stock Ownership Plan. As part of the conversion transaction, each outstanding share of First Seacoast Bancorp (a federal corporation) common stock owned by the public stockholders of First Seacoast Bancorp (a federal corporation) (stockholders other than First Seacoast Bancorp, MHC) as of the closing date was converted into shares of First Seacoast Bancorp, Inc. common stock based on an exchange ratio of 0.8358 shares of First Seacoast Bancorp, Inc. common stock for each share of First Seacoast Bancorp (a federal corporation) common stock. Cash was issued in lieu of a fractional share of First Seacoast Bancorp, Inc. common stock based on the offering price of $ 10.00 per share. Upon the completion of the conversion transaction, First Seacoast Bancorp, Inc. has approximately 5,077,492 shares of common stock outstanding. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses and the valuation of deferred tax assets. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For the purpose of reporting cash flows, cash includes cash and due from banks with original maturities of 90 days or less. |
Reclassifications | Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. |
Securities Available for Sale | Securities Available-for-Sale Available-for-sale securities consist of debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. These assets are carried at fair value. Unrealized holding gains and losses for these assets, net of related deferred income taxes, are recorded in and reported as accumulated other comprehensive income within stockholders’ equity. For debt securities in an unrealized loss position, the Company considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. The Company also determines whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in accumulated other comprehensive income. Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. Premiums and discounts are recognized in interest income using the interest method. Discounts are recognized over the period to maturity. Premiums are recognized over the period to call, if applicable. Otherwise, premiums are recognized over the period to maturity. |
Interest Bearing Time Deposits With Other Banks | Interest Bearing Time Deposits With Other Banks The Company maintains time deposits with other banks and credit unions, which are fully insured by the FDIC or National Credit Union Administration (“NCUA”). Balances are carried at cost and the time deposits carry terms of up to four years . |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank (“FHLB”) stock is carried at cost and can only be sold to the FHLB based on its current redemption policies. The Company reviews its investment in capital stock of the FHLB for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. Based on the most recent analysis of the FHLB, as of December 31, 2022, management deems its investment in FHLB stock to not be impaired. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, net deferred loan origination fees/costs on originated loans or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance on a simple interest basis. The accrual of interest on loans is discontinued at the time the loan is 90 days past due or determined to be impaired, if earlier. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for such loans is reversed against interest income. For payments received on such loans, the interest is accounted for on the cash-basis or recorded as a reduction to loan principal if recovery is not assured, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. |
Loan Origination Fees and Costs | Loan Origination Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the consolidated balance sheets with the related loan balances. The amount charged or credited to income is included with the related interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General Component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: commercial real estate; multifamily; commercial and industrial; acquisition; development and land; one to four family residential; home equity loans and lines of credit and consumer. Management uses a rolling average of historical losses based on a timeframe appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; credit quality trends; portfolio growth trends and concentrations; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the policies or methodology pertaining to the general component of the allowance for loan losses during both of the years ended December 31, 2022 and 2021. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial Real Estate loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management generally obtains rent rolls annually and continually monitors the cash flows of these borrowers. Multi-family Real Estate loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Commercial and Industrial loans – Loans in this segment are made to businesses and are generally secured by assets of the business or real estate. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Acquisition, Development and Land loans – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale and/or lease up of the property. Credit risk is affected by cost overruns, time to sell at an adequate price and market conditions. One- to Four-Family Residential Real Estate loans – The Bank generally does not originate or purchase loans with a loan-to-value ratio greater than 80 % and does not originate subprime loans, which are those loans to borrowers with a Fair Isaac Corporation (FICO) credit score of less than 660. Loans in this segment are generally collateralized by owner-occupied residential real estate and repayment is primarily dependent on the credit quality of the individual borrower and secondarily, liquidation of the collateral. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Home Equity Loans and Lines of Credit – All loans in this segment are typically collateralized by a subordinate lien position on owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality of this segment. Consumer – Loans in this segment include secured and unsecured consumer loans including passbook loans, consumer lines of credit, overdraft protection, manufactured housing loans and consumer unsecured loans. Repayment is dependent on the credit quality and the cash flow of the individual borrower. Allocated Component: The allocated component relates to loans that are classified as impaired. The Bank assesses non-accrual loans and certain loans rated substandard or worse for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. The Bank periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired and therefore are subject to a specific review for impairment. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. Generally, impairment on TDRs is measured using the discounted cash flow method by discounting expected cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification. Loans that have been classified as TDRs, and which subsequently default, are reviewed to determine if the loan should be deemed collateral-dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. Generally, all other impaired loans are collateral-dependent and impairment is measured through the collateral method. All loans on non-accrual status are considered to be impaired. When the measurement of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the allowance for loan losses. The Bank charges off the amount of any confirmed loan loss in the period when the loans, or portion of loans, are deemed uncollectible. Unallocated Component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for off-balance sheet commitments is included in other liabilities in the balance sheet. At both December 31, 2022 and 2021, the reserve for unfunded loan commitments was $ 18,000 . The related provision for off-balance sheet credit losses is included in non-interest expense in the consolidated statements of (loss) income. |
Land, Building and Equipment | Land, Building and Equipment Land is stated at cost. Building and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets or the lease term for leasehold improvements unless renewal is reasonably assured. Maintenance and repair costs are included in operating expenses while major expenditures for improvements are capitalized and depreciated. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. |
Bank-Owned Life Insurance | Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15 % of Tier one capital, and the total cash surrender value of life insurance policies is limited to 25 % of Tier one capital at the time of purchase. |
Treasury Stock | Treasury Stock The Company records common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. |
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets Transfers of an entire financial asset, a group of entire financial assets or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company services mortgage loans for others. Loan servicing fee income is reported in the consolidated statements of (loss) income as loan servicing fee income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Mortgage servicing rights (“MSR”) are initially recorded as an asset and measured at fair value when loans are sold to third parties with servicing rights retained. MSR are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s MSR accounted for under the fair value method are carried on the balance sheet at fair value with changes in fair value recorded in loan servicing fee income in the period in which the change occurs. Changes in the fair value of MSR are primarily due to changes in valuation inputs, assumptions and the collection and realization of expected cash flows. |
Customer List Intangible | Customer List Intangible On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a purchase price of $ 347,000 (included in other assets at December 31, 2022), of which $ 172,000 was paid at closing. Each client account has been assigned a value, and as each client transfers to the Bank, 85 % of this value will be paid to the seller. By June 30, 2023, or upon mutual agreement that the transition of client accounts is complete, whichever is earlier, the balance of the purchase price will be paid to the seller. As of December 31, 2022 and 2021, approximately $ 23.0 million and $ 17.4 million of purchased client accounts are included in total assets under management, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the year ended December 31, 2022 and 2021, $ 34,000 and $ 13,000 of amortization expense was recorded in other expense, respectively. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification (“ASC”) section 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit and investments securities, as well as revenue related to our mortgage servicing activities and bank owned life insurance, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606 and which are presented in our income statements as components of noninterest income are as follows: • Customer service fees—these represent general service fees for monthly account maintenance and activity- or transaction- based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer, debit card transaction or ATM withdrawal). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Investment service fees—these represent fees for investment advisory services, which are generally based on the market values of assets under management, and commissions earned on individual investment and insurance products purchased by clients of FSB Wealth Management. Revenue is recognized when a performance obligation is completed, which is generally monthly for investment advisory services or when an investment product is purchased. Payment for such performance obligations is generally received in the month following the time the performance obligations are satisfied. |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred and recorded within marketing expense. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the company the opportunity to own company common stock. The ESOP is a tax-qualified retirement plan for the benefit of company employees. |
Defined Contribution Plan | Defined Contribution Plan During the years ended December 31, 2022 and 2021, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company also made matching and profit-sharing contributions to eligible participants in accordance with plan provisions. |
Stock Based Compensation | Stock Based Compensation Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock or the granting of shares of restricted stock awards and restricted stock units. The 2021 Plan authorizes the issuance or delivery to participants of up to 417,327 shares of common stock. Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 298,091 shares, and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 119,236 shares. The Company recognizes stock-based compensation based on the grant-date fair value of the award adjusted for actual forfeitures. The Company will value share-based stock option awards as granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. |
Defined Benefit Plan | Defined Benefit Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. On September 30, 2022, the Company proceeded with its notification to withdraw from the Pentegra DB Plan as of September 30, 2022 (see Note 12 Employee Benefits for more information). The Company’s funding policy is to make an annual contribution determined by the Pentegra DB Plan actuaries that will not be less than the minimum required contribution nor greater than the maximum federal income tax deductible limit. Contributions are based on the individual employer’s experience. |
Supplemental Executive Retirement Plans | Supplemental Executive Retirement Plans The Company maintains nonqualified supplemental executive benefit agreements with certain directors and its current and former Presidents and certain officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death and for the crediting to a liability account a fixed amount of compensation, which earns interest at a rate determined in the agreement. The Company recognizes the cost of providing these benefits over the time period the individuals render service through the retirement date. At each measurement date, the aggregate amount accrued equals the then present value of the benefits expected to be provided to the individual in exchange for the individual’s service to that date. |
Leases | Leases All leases with an initial term greater than 12 months recognize: (1) a Right of Use ("ROU" asset), which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term; and (2) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, each measured on a discounted basis. The Company elected to not separate lease and non-lease components. As a lessee, the majority of the operating lease portfolio consists of a real estate lease for one branch location and leases for certain office equipment. The operating leases have remaining lease terms of one year to five years , and in some instances include options to renew for periods up to four years . ROU assets and lease liabilities are not recognized for leases with an initial term of 12 months or less. Operating lease expense represents fixed lease payments for operating leases recognized on a straight-line basis over the applicable lease term (see Note 14, Leases, for more information). |
Income Taxes | Income Taxes Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of provision for income taxes. The Company has evaluated the positions taken on its tax returns filed and the potential impact on its tax status as of December 31, 2022. The Company has concluded that no uncertain tax positions exist at December 31, 2022. Management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the consolidated balance sheets. Management then assesses the likelihood that deferred tax assets will be recovered from future taxable income and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish or adjust a valuation allowance in a period, an expense or benefit is recorded within the tax provision in the consolidated statements of income. |
Comprehensive (Loss) Income | Comprehensive (Loss) Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale, are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive (loss) income. The Company also records changes in the fair value of interest rate derivatives used in its cash flow hedging activities, net of deferred income tax, in comprehensive (loss) income. |
(Loss) Earnings Per Share | (Loss) Earnings Per Share Basic (loss) earnings per share represents 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 common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Securities that could potentially dilute basic earnings per common share in the future (i.e. unvested restricted stock) were not included in the computation of diluted earnings per common share because to do so would have been antidilutive for 2022 and 2021. All unvested stock based compensation awards exclude the right to receive non-forfeitable dividends and are considered nonparticipating securities and exclude the right to participate with common stock in undistributed earnings for purposes of computing earnings per share. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives designated as cash flow hedges, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. |
Risk And Uncertainties | Risks and Uncertainties The Bank and the Bank’s defined benefit pension plan invest in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the consolidated balance sheet or statement of income. On March 11, 2020, the world health organization declared the outbreak of COVID-19 a global pandemic. Since then, the COVID-19 pandemic has continued to evolve and mutate, including through its variants, and has adversely affected, and may continue to adversely affect, local, national and global economic activity. Actions taken to help mitigate the spread of COVID-19 include restrictions on travel, localized quarantines, and government-mandated closures of certain businesses. While certain of these restrictions have been loosened, the same or new restrictions may be implemented again. Although vaccines for COVID-19 have largely been made available in the U.S., the ultimate efficacy of the vaccines will depend on various factors including, the number of people who receive the vaccines as well as the vaccines’ effectiveness against contracting and spreading COVID-19 and any of its existing or new variants. Despite the many government stimulus programs introduced during the pandemic, the extent of any prolonged impact to the economy could adversely affect the ability of the Company’s borrowers to satisfy their obligations, decrease the demand for loans, disrupt banking operations, impact liquidity or cause a decline in collateral values. While management has taken measures to mitigate the impact of the pandemic, such as temporary branch closures, transitioning to a more remote work environment and participation in government stimulus programs, the long-term impact to the Company remains uncertain. Most of the Company’s business activity is with customers located within the New Hampshire and southern Maine Seacoast region. The Company has limited or no direct exposure to industries expected to be hardest hit by the COVID-19 pandemic, including oil and gas/energy, credit cards, airlines, cruise ships, arts/entertainment/recreation, casinos and shopping malls. The Company’s exposure to the transportation and hospitality/restaurant industries amounted to less than 5 % of the gross loan portfolio at December 31, 2022. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of December 31, 2021 , there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period except for the accounting treatment for measuring and recording the Company’s allowance for loan losses. The Company measures and records an allowance for loan losses based upon the incurred loss model while other public companies may be required to calculate their allowance for loan losses based upon the current expected credit loss (“CECL”) model. The CECL approach requires an estimate of the loan loss expected over the life of the loan, while the incurred loss approach delays the recognition of a loan loss until it is probable a loss event has incurred. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). In December 2022, the FASB issued ASU No. 2022-06, “ Reference Rate Reform (Topic 848), ” which defers the sunset date of Topic 848 from December 2022 to December 2024 after which entities will no longer be permitted to apply the relief in Topic 848. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12,“Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies accounting for income taxes by removing specific technical exceptions. The guidance removes the need for companies to analyze whether (1) the exception to the incremental approach for intra-period tax allocation, (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments and (3) the exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses apply in a given period. The amendments in this ASU are effective for smaller reporting companies for fiscal years beginning after December 15, 2021. Early adoption was permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In particular, this guidance requires a lessee of operating or finance leases to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. However, for leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. Under previous U.S. GAAP, a lessee was not required to recognize lease assets and lease liabilities arising from operating leases on the statement of condition. Initially, the FASB approved a proposal to delay the implementation of this standard by one year for smaller reporting companies to years beginning after December 15, 2020. On June 30, 2020, the FASB further delayed the implementation of this standard by one year for smaller reporting companies to years beginning after December 15, 2021. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases,” which clarifies ASU 2016-02 with respect to certain aspects of the update and ASU 2018-11,“Targeted Improvements,” to allow an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the consolidated financial statements. Using the optional transition method discussed above, the Company adopted the new lease guidance on January 1, 2022 and recorded a right-of- use asset in other assets and a corresponding net lease liability in other liabilities at March 31, 2022 (see Note 14, Leases, for more information). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Yet To Be Adopted The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU 2022-2, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” All other creditors must continue to apply the TDR accounting model until they adopt ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Due to the removal of the TDR accounting model, all loan modifications now will be accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities will be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage (that is, year of origination). This ASU becomes effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. While the adoption of this ASU on January 1 2023 may result in new disclosures, it is not expected to have a material impact on the Company’s consolidated financial statements. In January 2021, the FASB issued ASU 2021-1, “ Reference Rate Reform (Topic 848) (Scope), ” which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. This ASU was to become effective immediately for all entities on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. The effective date was extended by the issuance of ASU No. 2022-06, “ Reference Rate Reform (Topic 848), ” which, as noted above, defers the sunset date of Topic 848 from December 2022 to December 2024. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848), ” which provides optional guidance to ease the potential burden in accounting due to reference rate reform. The guidance in this update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made, and hedging relationships entered into, on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard. In February 2020, the FASB issued ASU 2020-2, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) .” This ASU adds an SEC paragraph pursuant to the issuance of SEC SAB Topic No. 119 to the FASB Codification Topic 326 and updates the SEC section of the Codification for the change in the effective dates of Topic 842. This ASU primarily details guidance on what SEC staff would expect a registrant to perform and document when measuring and recording its allowance for credit losses for financial assets recorded at amortized cost. In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also during November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective dates for ASU 2016-02, “ Leases (Topic 842)” was deferred to fiscal years beginning after December 15, 2021. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” to increase stakeholders’ awareness of the amendments and to expedite improvements to the Codification. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses, Topic 326.” This ASU addresses certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. On October 16, 2019, the FASB approved a proposal to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Early adoption is permitted. See the next paragraph for further discussion regarding the implementation of this standard. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which creates a new credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost (including loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected, through an allowance for credit losses that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. The measurement of credit losses for newly recognized financial assets (other than certain purchased assets) and subsequent changes in the allowance for credit losses are recorded in the statement of income as the amounts expected to be collected change. The ASU was originally to be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” extending the implementation date by one year for smaller reporting companies and clarifying that operating lease receivables are outside the scope of Accounting. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. The Company has selected a loss estimation methodology, utilizing a third-party model, and is refining the remaining facets of its CECL model, as well as finalizing internal controls. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU is effective, which will be January 1, 2023. The Company estimates the adoption of the new standard will result in a decrease to its allowance for loan losses (“ALL”). This decrease, though, is expected to be offset by an increase in the allowance for non-cancelable off-balance sheet commitments. The estimated decrease in ALL is due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is much more robust with broader time horizons as compared to the Company's actual historical loss data used under an incurred loss methodology. As the Company completes its final evaluation, the adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of December 31, 2022 and 2021: December 31, 2022 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 2,191 $ — $ ( 365 ) $ 1,826 U.S. Government agency small business administration 9,475 — ( 1,116 ) 8,359 Collateralized mortgage obligations issued by the 6,922 8 ( 708 ) 6,222 Residential mortgage-backed securities 26,390 — ( 4,567 ) 21,823 Municipal bonds 69,373 172 ( 7,129 ) 62,416 Corporate debt 500 — ( 3 ) 497 Corporate subordinated debt 5,550 — ( 593 ) 4,957 $ 120,401 $ 180 $ ( 14,481 ) $ 106,100 December 31, 2021 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 6,098 $ — $ ( 127 ) $ 5,971 U.S. Government agency small business administration 5,059 22 ( 36 ) 5,045 Collateralized mortgage obligations issued by the 3,400 1 ( 69 ) 3,332 Residential mortgage-backed securities 23,784 32 ( 484 ) 23,332 Municipal bonds 49,164 1,501 ( 52 ) 50,613 Corporate subordinated debt 3,072 - - 3,072 $ 90,577 $ 1,556 $ ( 768 ) $ 91,365 |
Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity | The amortized cost and fair values of available-for-sale securities at December 31, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2022 Amortized Fair Value (Dollars in thousands) Due in one year or less $ — $ — Due after one year through five years 500 497 Due after five years through ten years 9,378 8,387 Due after ten years 67,736 60,812 Total U.S. Government-sponsored enterprises obligations, 77,614 69,696 U.S. Government agency small business pools guaranteed (1) 9,475 8,359 Collateralized mortgage obligations issued by the FHLMC, (1) 6,922 6,222 Residential mortgage-backed securities (1) 26,390 21,823 Total $ 120,401 $ 106,100 (1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Summary of gross unrealized losses and fair value for those investments with unrealized losses | The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021. Less than 12 Months More than 12 Months Total Number of Fair Unrealized Number of Fair Unrealized Fair Unrealized (Dollars in thousands) December 31, 2022 U.S. Government sponsored 1 $ 453 $ ( 43 ) 3 $ 1,373 $ ( 322 ) $ 1,826 $ ( 365 ) U.S. Government agency small 8 5,947 ( 602 ) 3 2,412 ( 514 ) 8,359 ( 1,116 ) Collateralized mortgage 5 3,212 ( 209 ) 4 2,016 ( 499 ) 5,228 ( 708 ) Residential mortgage 8 4,239 ( 503 ) 23 16,649 ( 4,064 ) 20,888 ( 4,567 ) Municipal bonds 86 49,228 ( 5,900 ) 8 5,769 ( 1,229 ) 54,997 ( 7,129 ) Corporate debt 1 497 ( 3 ) — — — 497 ( 3 ) Corporate subordinated debt 4 4,457 ( 593 ) — — — 4,457 ( 593 ) 113 $ 68,033 $ ( 7,853 ) 41 $ 28,219 $ ( 6,628 ) $ 96,252 $ ( 14,481 ) December 31, 2021 U.S. Government sponsored 7 $ 5,022 $ ( 80 ) 2 $ 949 $ ( 47 ) $ 5,971 $ ( 127 ) U.S. Government agency small 3 2,988 ( 36 ) — — — 2,988 ( 36 ) Collateralized mortgage 4 2,779 ( 69 ) — — — 2,779 ( 69 ) Residential mortgage 22 19,541 ( 399 ) 1 2,304 ( 85 ) 21,845 ( 484 ) Municipal bonds 7 6,494 ( 49 ) 1 584 ( 3 ) 7,078 ( 52 ) 43 $ 36,824 $ ( 633 ) 4 $ 3,837 $ ( 135 ) $ 40,661 $ ( 768 ) |
Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities | Proceeds from sales, maturities, principal payments received and gross realized gains and losses on available-for-sale securities were as follows for the years ended December 31: December 31, 2022 2021 (Dollars in thousands) Proceeds from sales, maturities and principal payments $ 9,872 $ 20,037 Gross realized gains 52 588 Gross realized losses ( 799 ) ( 53 ) Net realized (losses) gains $ ( 747 ) $ 535 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consisted of the following at December 31: December 31, 2022 2021 (Dollars in thousands) Commercial real estate (CRE) $ 80,506 $ 72,057 Multifamily (MF) 8,185 8,998 Commercial and industrial (C+I) 24,059 26,851 Acquisition, development, and land (ADL) 18,490 21,365 1-4 family residential (RES) 251,466 234,199 Home equity loans and lines of credit (HELOC) 10,161 6,947 Consumer (CON) 7,189 4,574 Total loans 400,056 374,991 Net deferred loan costs 2,449 1,650 Allowance for loan losses ( 3,581 ) ( 3,590 ) Net loans $ 398,924 $ 373,051 |
Schedule of Allowance For Loans And Leases Receivable Classification | Transactions in the Allowance for loan losses (“ALL”) for the years ended December 31, 2022 and 2021 by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2020 $ 753 $ 60 $ 267 $ 174 $ 1,656 $ 78 $ 52 $ 302 $ 3,342 Provision for loan losses 80 20 ( 112 ) 4 482 ( 15 ) 20 ( 274 ) 205 Charge-offs — — — — — — — — — Recoveries — — 39 — 1 — 3 — 43 Balance at December 31, 2021 833 80 194 178 2,139 63 75 28 3,590 Balance, December 31, 2021 833 80 194 178 2,139 63 75 28 3,590 Provision for loan losses 109 ( 26 ) ( 14 ) ( 40 ) ( 91 ) 18 38 6 — Charge-offs — — — — — — ( 14 ) — ( 14 ) Recoveries — — 4 — — — 1 — 5 Balance at December 31, 2022 $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 As of December 31, 2022 and 2021, information about loans and the ALL by portfolio segment, are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total December 31, 2022 Loan Balances Individually evaluated for impairment $ — $ — $ — $ — $ 273 $ — $ 5 $ — $ 278 Collectively evaluated for impairment 80,506 8,185 24,059 18,490 251,193 10,161 7,184 — 399,778 Total $ 80,506 $ 8,185 $ 24,059 $ 18,490 $ 251,466 $ 10,161 $ 7,189 $ — $ 400,056 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 942 54 184 138 2,048 81 100 34 3,581 Total $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 December 31, 2021 Loan Balances Individually evaluated for impairment $ 104 $ — $ 28 $ — $ 722 $ 115 $ — $ — $ 969 Collectively evaluated for impairment 71,953 8,998 26,823 21,365 233,477 6,832 4,574 — 374,022 Total $ 72,057 $ 8,998 $ 26,851 $ 21,365 $ 234,199 $ 6,947 $ 4,574 $ — $ 374,991 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 833 80 194 178 2,139 63 75 28 3,590 Total $ 833 $ 80 $ 194 $ 178 $ 2,139 $ 63 $ 75 $ 28 $ 3,590 |
Past Due Financing Receivables | The following is an aged analysis of past due loans by portfolio segment as of December 31, 2022: 30-59 60-89 90 + Total Current Total Non- (Dollars in thousands) CRE $ — $ — $ — $ — $ 80,506 $ 80,506 $ — MF — — — — 8,185 8,185 — C+I — — — — 24,059 24,059 — ADL — — — — 18,490 18,490 — RES — 84 — 84 251,382 251,466 84 HELOC 5 — — 5 10,156 10,161 — CON 7 — — 7 7,181 7,189 5 $ 12 $ 84 $ — $ 96 $ 399,960 $ 400,056 $ 89 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2021: 30-59 60-89 90 + Total Current Total Non- (Dollars in thousands) CRE $ — $ — $ — $ — $ 72,057 $ 72,057 $ — MF — — — — 8,998 8,998 — C+I — — — — 26,851 26,851 — ADL — — — — 21,365 21,365 — RES — 487 235 722 233,477 234,199 722 HELOC 117 129 — 246 6,701 6,947 115 CON 6 — — 6 4,568 4,574 — $ 123 $ 616 $ 235 $ 974 $ 374,017 $ 374,991 $ 837 |
Impaired Financing Receivables | The following table provides information on impaired loans as of and for the years ended December 31, 2022 and 2021: As of December 31, 2022 At December 31, 2022 (Dollars in thousands) Recorded Unpaid Related Average Interest With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 273 273 — 446 32 HELOC — — — 57 3 CON 5 5 — 2 — Total impaired loans $ 278 $ 278 $ — $ 505 $ 35 As of December 31, 2021 At December 31, 2021 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — 203 12 ADL — — — — — RES 722 722 — 77 2 HELOC 115 115 — 10 — CON — — — — — Total impaired loans $ 837 $ 837 $ — $ 290 $ 14 |
Financing Receivable Credit Quality Indicators | The following presents the internal risk rating of loans by portfolio segment as of December 31, 2022: (Dollars in thousands) Pass Special Substandard Total CRE $ 77,820 $ 2,686 $ — $ 80,506 MF 8,185 — — 8,185 C+I 24,059 — — 24,059 ADL 18,490 — — 18,490 RES 251,382 — 84 251,466 HELOC 10,161 — — 10,161 CON 7,184 — 5 7,189 Total $ 397,281 $ 2,686 $ 89 $ 400,056 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2021: (Dollars in thousands) Pass Special Substandard Total CRE $ 69,252 $ 2,701 $ 104 $ 72,057 MF 8,998 — — 8,998 C+I 26,823 — 28 26,851 ADL 21,365 — — 21,365 RES 233,477 — 722 234,199 HELOC 6,832 — 115 6,947 CON 4,574 — — 4,574 Total $ 371,321 $ 2,701 $ 969 $ 374,991 |
Activity of Loans | For the years ended December 31, 2022 and 2021, activity in these loans was as follows: December 31, (Dollars in thousands) 2022 2021 Loans outstanding – beginning of year $ 4,849 $ 5,279 Principal payments ( 576 ) ( 430 ) Advances 170 — Loans outstanding – end of year $ 4,443 $ 4,849 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following summarizes activity in mortgage servicing rights for the years ended December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Balance, beginning of year $ 322 $ 273 Additions 6 61 Payoffs ( 28 ) ( 60 ) Change in fair value due to change in assumptions 57 48 Balance, end of year $ 357 $ 322 |
Land, Buildings and Equipment (
Land, Buildings and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Land, Building and Equipment | Land, buildings and equipment consisted of the following at December 31, 2022 and 2021: (Dollars in thousands) 2022 2021 Land $ 995 $ 995 Buildings 3,167 3,167 Building & leasehold improvements 3,831 3,820 Furniture, fixtures and equipment 4,529 4,438 12,522 12,420 Less accumulated depreciation ( 8,341 ) ( 7,854 ) $ 4,181 $ 4,566 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposit Liabilities | Deposits consisted of the following at December 31, 2022 and 2021: (Dollars in thousands) 2022 2021 NOW and demand deposits $ 204,739 $ 206,235 Money market deposits 60,931 71,317 Savings deposits 54,954 57,365 Time deposits of $250,000 and greater 7,796 6,281 Time deposits less than $250,000 53,943 52,045 $ 382,363 $ 393,243 |
Maturities of Time Deposits | At December 31, 2022, the scheduled maturities of time deposits were as follows: (Dollars in thousands) Total 2023 $ 37,024 2024 12,666 2025 7,307 2026 3,379 2027 1,363 $ 61,739 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | A summary of borrowings from the FHLB are as follows: December 31, 2022 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 96,729 2023 0.44 % to 4.38 % – fixed 800 2024 0.00 % – fixed 520 2025 0.00 % – fixed 718 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 99,397 December 31, 2021 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 12,262 2022 0.00 % to 0.31 % – fixed 15,000 2023 0.44 % to 0.45 % – fixed 800 2024 0.00 % – fixed 520 2025 0.00 % – fixed 250 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 29,462 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Current and Deferred Components of Income Tax (Benefit) Expense | The current and deferred components of income tax (benefit) expense consisted of the following for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Federal State Total Federal State Total (Dollars in thousands) Current $ ( 59 ) $ 109 $ 50 $ 334 $ ( 42 ) $ 292 Deferred ( 369 ) ( 132 ) ( 501 ) 117 192 309 $ ( 428 ) $ ( 23 ) $ ( 451 ) $ 451 $ 150 $ 601 |
Schedule of Reasons for Differences in Amount Computed by U.S. Federal Income Tax Rates | Total income tax (benefit) expense is different from the amounts computed by applying the U.S. Federal income tax rates in effect to income before income taxes. The reasons for these differences are as follows for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Amount % of Amount % of (Dollars in thousands) Computed “expected” tax (benefit) expense $ ( 213 ) ( 21.0 )% $ 677 21.0 % State tax (benefit) expense, net of federal tax benefit ( 18 ) ( 1.8 ) 118 3.7 BOLI income ( 21 ) ( 2.1 ) ( 22 ) ( 0.7 ) Valuation allowance 62 6.1 — — Income on tax exempt securities ( 252 ) ( 24.8 ) ( 178 ) ( 5.5 ) Other ( 8 ) ( 0.8 ) 6 0.2 $ ( 451 ) ( 44.4 )% $ 601 18.7 % |
Schedule of Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities at December 31, 2022 and 2021 are as follows: December 31, 2022 2021 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 977 $ 988 Deferred compensation liabilities 494 468 Contribution carryforward 171 120 State tax credit carryforward 62 52 Depreciation 16 — Securities available-for-sale 3,873 — Net operating loss carryforward 707 — Other 48 56 Subtotal 6,348 1,684 Less: valuation allowance ( 171 ) ( 60 ) Total deferred tax assets 6,177 1,624 Deferred tax liabilities: Depreciation — ( 45 ) Interest rate swaps ( 260 ) ( 54 ) Securities available-for-sale — ( 213 ) Prepaid expenses ( 43 ) ( 43 ) Net deferred loan costs ( 661 ) ( 447 ) Mortgage servicing rights ( 96 ) ( 87 ) Total deferred tax liabilities ( 1,060 ) ( 889 ) Net deferred tax assets, included in other assets $ 5,117 $ 735 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Company Compensation Expense for the ESOP | the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. December 31, 2022 2021 Shares held by the ESOP include the following: Allocated 35,772 23,848 Committed to be allocated 11,924 11,924 Unallocated 190,777 202,701 Total 238,473 238,473 |
Schedule of Funded Status Valuation Report Percentage | The funded status (fair value of plan assets divided by funding target) per the 2022 valuation report as of July 1, 2022 was 96.24 %. The fair value of plan assets reflects any contributions received through June 30, 2022. The funded status (fair value of plan assets divided by funding target) per the 2021 valuation report as of July 1, 2021 was 104.99 %. The fair value of plan assets reflects any contributions received through June 30, 2021. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Non-vested Restricted Shares Outstanding | A summary of non-vested restricted shares outstanding as of December 31, 2022 and 2021, and changes during the year ended is presented below: 2022 2021 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Restricted stock Non-vested at beginning of year 118,270 $ 9.99 — — Granted — — 118,270 $ 9.99 Vested ( 38,754 ) 9.99 — — Forfeited ( 2,000 ) 9.99 — — Non-vested at end of year 77,516 $ 9.99 118,270 $ 9.99 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Right-of-Use Asset and Net Lease Liability | The following table summarizes information related to the Company’s right-of-use asset and net lease liability: At December 31, 2022 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 202 Other Assets Net lease liability 202 Other Liabilities |
Components of Operating Lease Cost and Other Related Information | The components of operating lease cost and other related information are as follows: Year Ended December 31, 2022 (Dollars in thousands) Operating lease cost $ 54 Short-term lease cost — Variable lease cost (Cost excluded from lease payments) — Sublease income — Total operating lease cost 54 Other Information: Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases 54 Operating lease - operating cash flows (liability reduction) $ — Weighted average lease term - years 4.37 Weighted average discount rate 3.29 % |
Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements | The total minimum lease payments due in future periods for lease agreements in effect at December 31, 2022 were as follows: As of December 31, 2022 Future Minimum Lease Payments (Dollars in thousands) 2023 $ 52 2024 49 2025 45 2026 43 2027 29 Total minimum lease payments 218 Less: interest ( 16 ) Total lease liability $ 202 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The Company reports certain items as “other comprehensive income” and reflects total accumulated other comprehensive (loss) income (“AOCI”) in the consolidated financial statements for all years containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss: Year Ended December 31, Reclassification Adjustment 2022 2021 Affected Line Item (Dollars in thousands) Losses (gains) on sale of securities $ 747 $ ( 535 ) Securities losses (gains), net Tax effect ( 202 ) 145 Income tax (benefit) expense 545 ( 390 ) Net (loss) income Net amortization of bond premiums 1,009 699 Interest on debt securities Tax effect ( 274 ) ( 189 ) Income tax (benefit) expense 735 510 Net (loss) income Net interest (income) expense on swaps ( 115 ) 48 Interest expense on borrowings Tax effect 31 ( 13 ) Income tax (benefit) expense ( 84 ) 35 Net (loss) income Total reclassification adjustments $ 1,196 $ 155 |
Summary of Changes in Component of AOCI | The following tables present the changes in each component of AOCI for the periods indicated: (Dollars in thousands) Net Unrealized (Losses) (1) Net Unrealized Gains (Losses) on Cash Flow (1) AOCI (1) Balance at December 31, 2020 $ 1,481 $ ( 100 ) $ 1,381 Other comprehensive (loss) income before ( 1,026 ) 211 ( 815 ) Amounts reclassified from AOCI 120 35 155 Other comprehensive (loss) income ( 906 ) 246 ( 660 ) Balance at December 31, 2021 $ 575 $ 146 $ 721 Balance at December 31, 2021 $ 575 $ 146 $ 721 Other comprehensive (loss) income before ( 12,283 ) 639 ( 11,644 ) Amounts reclassified from AOCI 1,280 ( 84 ) 1,196 Other comprehensive (loss) income ( 11,003 ) 555 ( 10,448 ) Balance at December 31, 2022 $ ( 10,428 ) $ 701 $ ( 9,727 ) (1) All amounts are net of tax |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments With Off Balance Sheet Risk Commitment And Contingencies [Abstract] | |
Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk | Notional amounts of financial instruments with off-balance sheet credit risk are approximately as follows as of December 31: 2022 2021 Unadvanced portions of loans $ 44,929 $ 42,781 Commitments to originate loans 16,134 15,103 Standby letters of credit 302 318 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Regulatory Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents actual and required capital ratios as of December 31, 2022 and 2021 for the Bank under the Basel Committee on Banking Supervisions capital guidelines for U.S. banks (“Basel III Capital Rules”) as fully phased-in on January 1, 2019. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Minimum Minimum Capital Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital (to risk- weighted assets) $ 52,475 15.53 % $ 27,028 8.00 % $ 33,785 10.00 % $ 35,474 10.50 % Tier 1 Capital (to risk- weighted assets) 48,821 14.45 20,271 6.00 27,028 8.00 28,717 8.50 Tier 1 Capital (to average assets) 48,821 9.20 21,224 4.00 26,530 5.00 21,224 4.00 Common Equity Tier 1 (to risk-weighted assets) 48,821 14.45 15,203 4.50 21,960 6.50 23,649 7.00 As of December 31, 2021 Total Capital (to risk-weighted assets) $ 52,798 17.87 % $ 23,641 8.00 % $ 29,546 10.00 % $ 31,029 10.50 % Tier 1 Capital (to risk-weighted assets) 49,151 16.63 17,731 6.00 23,644 8.00 25,119 8.50 Tier 1 Capital (to average assets) 49,151 9.92 19,811 4.00 24,774 5.00 19,811 4.00 Common Equity Tier 1 (to risk-weighted assets) 49,151 16.63 13,298 4.50 19,211 6.50 20,686 7.00 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Summary of the Company's Derivatives Associated with its Interest Rate Risk Management Activities | The following tables summarize the Company’s derivatives associated with its interest rate risk management activities: December 31, 2022 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68 % $ 5,000 $ 431 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74 % $ 5,000 $ 530 $ — Total Hedging Instruments $ 10,000 $ 961 $ — Hedged Items: Variability in cash flows N/A $ — $ 10,000 December 31, 2021 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68 % $ 5,000 $ 85 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74 % $ 5,000 $ 115 $ — Total Hedging Instruments $ 10,000 $ 200 $ — Hedged Items: Variability in cash flows N/A $ — $ 10,000 | |
Summary of the Effect of Cash Flow Hedge Accounting | The following table summarizes the effect of cash flow hedge accounting on the consolidated statements of income for the years ended December 31, 2022 and 2021: Location and Amount of Income (Loss) Recognized in 2022 2021 (Dollars in thousands) Interest Other Interest Other The effect of cash flow hedging accounting: Amount reclassified from AOCI into expense $ 115 $ — $ ( 48 ) $ — |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Fair Values Of Assets And Liabilities [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 December 31, 2022 (Dollars in thousands) Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 1,826 $ — $ 1,826 $ — U.S. Government agency small business 8,359 — 8,359 — Collateralized mortgage obligations issued by the 6,222 — 6,222 — Residential mortgage-backed securities 21,823 — 21,823 — Municipal bonds 62,416 — 62,416 — Corporate debt 497 — 497 — Corporate subordinated debt 4,957 — 4,957 — Other assets: Mortgage servicing rights $ 357 — — $ 357 Derivatives 961 — 961 — Total Level 1 Level 2 Level 3 December 31, 2021 (Dollars in thousands) Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 5,971 $ — $ 5,971 $ — U.S. Government agency small business 5,045 — 5,045 Collateralized mortgage obligations issued by the 3,332 — 3,332 — Residential mortgage-backed securities 23,332 — 23,332 — Municipal bonds 50,613 — 50,613 — Corporate subordinated debt 3,072 — 3,072 — Other assets: Mortgage servicing rights $ 322 $ — $ — $ 322 Derivatives 200 — 200 — |
Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | For the years ended December 31, 2022 and 2021, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage (1) Balance as of January 1, 2022 $ 322 Included in net income 35 Balance as of December 31, 2022 $ 357 Total unrealized net gains (losses) included in net income $ — Balance as of January 1, 2021 $ 273 Included in net income 49 Balance as of December 31, 2021 $ 322 Total unrealized net gains (losses) included in net income $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income. |
Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis | For Level 3 assets measured at fair value on a recurring basis as of December 31, 2022 and 2021, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2022 (Dollars in thousands) Valuation Technique Description Range Weighted (1) Fair Mortgage Servicing Discounted Cash Flow Prepayment Rate 6.48 % - 23.49 % 7.78 % $ 357 Discount Rate 9.50 % - 9.50 % 9.50 % Delinquency Rate 2.13 % - 2.79 % 2.24 % Default Rate 0.14 % - 0.20 % 0.15 % December 31, 2021 (Dollars in thousands) Valuation Technique Description Range Weighted (1) Fair Mortgage Servicing Discounted Cash Flow Prepayment Rate 6.63 % - 25.56 % 13.39 % $ 322 Discount Rate 9.00 % - 9.00 % 9.00 % Delinquency Rate 2.82 % - 3.63 % 2.96 % Default Rate 0.08 % - 0.14 % 0.13 % (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Value Measurements, Recurring and Nonrecurring | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments not carried at fair value at December 31 are as follows: Carrying Fair Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2022 Financial Assets: Cash and due from banks $ 8,250 $ 8,250 $ 8,250 $ — $ — Interest-bearing time deposits with other banks 747 747 — 747 — Federal Home Loan Bank stock 3,502 3,502 — 3,502 — Bank-owned life insurance 4,561 4,561 — 4,561 — Loans, net 398,924 361,402 — — 361,402 Accrued interest receivable 1,988 1,988 1,988 — — Financial Liabilities: Deposits $ 382,363 $ 379,714 $ 320,624 $ 59,090 $ — Advances from Federal Home Loan Bank 99,397 97,675 — 97,675 — Mortgagors’ tax escrow 938 938 — 938 — Accrued interest payable 95 95 95 — — December 31, 2021 Financial Assets: Cash and due from banks $ 6,638 $ 6,638 $ 6,638 $ — $ — Interest-bearing time deposits with other banks 1,245 1,245 — 1,245 — Federal Home Loan Bank stock 1,688 1,688 — 1,688 — Bank-owned life insurance 4,461 4,461 — 4,461 — Loans, net 373,051 371,587 — — 371,587 Accrued interest receivable 1,499 1,499 1,499 — — Financial Liabilities: Deposits $ 393,243 $ 393,145 $ 334,917 $ 58,228 $ — Advances from Federal Home Loan Bank 29,462 29,063 — 29,063 — Mortgagors’ tax escrow 652 652 — 652 — Accrued interest payable 33 33 33 — — |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) - First Seacoast Bancorp (Parent) Company | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2022 2021 (Dollars in thousands) ASSETS Cash held at First Seacoast Bank $ 9,346 $ 9,785 Investment in First Seacoast Bank 37,925 48,477 Loan to First Seacoast Bank ESOP 2,025 2,105 Deferred tax asset — 60 Other assets 41 43 Total assets $ 49,337 $ 60,470 LIABILITIES Other liabilities $ — $ 2 Total liabilities — 2 STOCKHOLDERS’ EQUITY Stockholders’ equity 49,337 60,468 Total liabilities and stockholders’ equity $ 49,337 $ 60,470 |
Schedule of Condensed Statements of Income | CONDENSED STATEMENTS OF (LOSS) INCOME For the Year Ended 2022 2021 (Dollars in thousands) Income: Interest on ESOP loan $ 110 $ 115 Expense: Miscellaneous expense 4 3 Income before income tax expense and equity in 106 112 Income tax expense 62 — Net income before equity in undistributed net 44 112 Equity in undistributed net (loss) income of ( 609 ) 2,509 Net (loss) income $ ( 565 ) $ 2,621 |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the Year Ended 2022 2021 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ ( 565 ) $ 2,621 Adjustments to reconcile net (loss) income to net Undistributed net loss (income) of First Seacoast Bank 609 ( 2,509 ) Deferred tax expense 60 25 Decrease (increase) in other assets 2 ( 25 ) Decrease in other liabilities ( 2 ) ( 5 ) Net cash provided by operating activities 104 107 CASH FLOWS FROM INVESTING ACTIVITIES: Principal payments received on ESOP 80 75 Net cash provided by investing activities 80 75 CASH FLOWS FROM FINANCING ACTIVITIES: Treasury stock purchases ( 623 ) ( 515 ) Net cash used by financing activities ( 623 ) ( 515 ) Net change in cash ( 439 ) ( 333 ) Cash at beginning of year 9,785 10,118 Cash at end of year $ 9,346 $ 9,785 |
The Company - Additional Inform
The Company - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 Service Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of core services | Service | 4 |
Number of reportable segment | Segment | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Aug. 17, 2021 USD ($) | May 27, 2021 shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Reserve for unfunded loan commitments | $ 18,000 | $ 18,000 | ||
Accounts Purchase Price | $ 347,000 | |||
Accounts Purchase Price, Paid | $ 172,000 | 23,000,000 | 17,400,000 | |
The Percentage of Accounts Receivables Paid To Seller | 85 | |||
Deposit Assets, Amortization Expense from Expirations | 34,000 | $ 13,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 417,327 | |||
Share-based Payment Arrangement, Exercise of Option | shares | 298,091 | |||
Stock Issued During Period, Shares, Restricted Stock Award, | shares | 119,236 | |||
Unrecognized Tax Benefits | $ 0 | |||
FICO Score, 600 to 699 | ||||
Originate loans with loan-to-value ratios | 80% | |||
Branch Office and Certain Equipment [Member] | ||||
Operating lease option to extend | true | |||
Operating lease, renewal term | 4 years | |||
Maximum [Member] | ||||
Certificates of Deposit Term | 4 years | |||
Life insurance policy with individual carrier as a percentage of tier one capital | 15% | |||
Total cash surrender value of life insurance policies as a percentage of tier one capital | 25% | |||
Exposure to transportation and hospitality industries in gross loan | 5% | |||
Maximum [Member] | Branch Office and Certain Equipment [Member] | ||||
Operating leases remaining lease terms | 5 years | |||
Minimum [Member] | Branch Office and Certain Equipment [Member] | ||||
Operating leases remaining lease terms | 1 year |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Emerging growth of company status | (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). |
ASU 2022-06 [Member] | |
Change in accounting principle, accounting standards update, early adoption [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
ASU 2019-12 [Member] | |
Change in accounting principle, accounting standards update, early adoption [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
ASU 2016-02 | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2022 |
Interest Bearing Time Deposit_2
Interest Bearing Time Deposits with Other Banks - Additional Information (Details) | Dec. 31, 2022 USD ($) |
Banking And Thrift1 [Abstract] | |
Time deposits scheduled to mature during 2023 | $ 747,000 |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of amortized cost and fair value of securities available-for-sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortized Cost | $ 120,401 | $ 90,577 | |
Gross Unrealized Gains | 180 | 1,556 | |
Gross Unrealized Losses | (14,481) | (768) | |
Fair Value | 106,100 | 91,365 | |
U.S. Government-sponsored enterprises obligations [Member] | |||
Amortized Cost | 2,191 | 6,098 | |
Gross Unrealized Losses | (365) | (127) | |
Fair Value | 1,826 | 5,971 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Amortized Cost | 9,475 | [1] | 5,059 |
Gross Unrealized Gains | 22 | ||
Gross Unrealized Losses | (1,116) | (36) | |
Fair Value | 8,359 | [1] | 5,045 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Amortized Cost | 6,922 | [1] | 3,400 |
Gross Unrealized Gains | 8 | 1 | |
Gross Unrealized Losses | (708) | (69) | |
Fair Value | 6,222 | [1] | 3,332 |
Residential mortgage backed securities [Member] | |||
Amortized Cost | 26,390 | [1] | 23,784 |
Gross Unrealized Gains | 32 | ||
Gross Unrealized Losses | (4,567) | (484) | |
Fair Value | 21,823 | [1] | 23,332 |
Municipal bonds [Member] | |||
Amortized Cost | 69,373 | 49,164 | |
Gross Unrealized Gains | 172 | 1,501 | |
Gross Unrealized Losses | (7,129) | (52) | |
Fair Value | 62,416 | 50,613 | |
Corporate debt [Member] | |||
Amortized Cost | 500 | ||
Gross Unrealized Losses | (3) | ||
Fair Value | 497 | ||
Corporate subordinated debt [Member] | |||
Amortized Cost | 5,550 | 3,072 | |
Gross Unrealized Losses | (593) | ||
Fair Value | $ 4,957 | $ 3,072 | |
[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Securities Available-for-Sale_2
Securities Available-for-Sale - Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Due after one year through five years, Amortized Cost | $ 500 | ||
Due after five years through ten years, Amortized Cost | 9,378 | ||
Due after ten years, Amortized Cost | 67,736 | ||
Total U.S. Government-sponsored enterprises obligations, municipal bonds and corporate subordinated debt | 77,614 | ||
Mortgage-backed securities, Amortized Cost | 120,401 | $ 90,577 | |
Due after one year through five years, Fair Value | 497 | ||
Due after five years through ten years, Fair Value | 8,387 | ||
Due after ten years, Fair Value | 60,812 | ||
Total U.S. Government-sponsored enterprises obligations, municipal bonds and corporate subordinated debt | 69,696 | ||
Mortgage-backed securities, Fair Value | 106,100 | 91,365 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Mortgage-backed securities, Amortized Cost | 9,475 | [1] | 5,059 |
Mortgage-backed securities, Fair Value | 8,359 | [1] | 5,045 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Mortgage-backed securities, Amortized Cost | 6,922 | [1] | 3,400 |
Mortgage-backed securities, Fair Value | 6,222 | [1] | 3,332 |
Residential mortgage backed securities [Member] | |||
Mortgage-backed securities, Amortized Cost | 26,390 | [1] | 23,784 |
Mortgage-backed securities, Fair Value | $ 21,823 | [1] | $ 23,332 |
[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Securities Available-for-Sale_3
Securities Available-for-Sale - Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Abstract] | ||
Proceeds from sales, calls, maturities and principal payments received on securities available-for-sale | $ 9,872 | $ 20,037 |
Gross realized gains | 52 | 588 |
Gross realized losses | (799) | (53) |
Net realized (losses) gains | $ (747) | $ 535 |
Securities Available-for-Sale_4
Securities Available-for-Sale - Summary of gross unrealized losses and fair value for those investments with unrealized losses (Detail) $ in Thousands | Dec. 31, 2022 USD ($) Number | Dec. 31, 2021 USD ($) Number |
Less than 12 Months, Number of Securities | Number | 113 | 43 |
Less than 12 Months, Fair Value | $ 68,033 | $ 36,824 |
Less than 12 Months, Unrealized Losses | $ (7,853) | $ (633) |
More than 12 Months, Number of Securities | Number | 41 | 4 |
More than 12 Months, Fair Value | $ 28,219 | $ 3,837 |
More than 12 Months, Unrealized Losses | (6,628) | (135) |
Total, Fair Value | 96,252 | 40,661 |
Total, Unrealized Losses | $ (14,481) | $ (768) |
U.S. Government-sponsored enterprises obligations [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | 7 |
Less than 12 Months, Fair Value | $ 453 | $ 5,022 |
Less than 12 Months, Unrealized Losses | $ (43) | $ (80) |
More than 12 Months, Number of Securities | Number | 3 | 2 |
More than 12 Months, Fair Value | $ 1,373 | $ 949 |
More than 12 Months, Unrealized Losses | (322) | (47) |
Total, Fair Value | 1,826 | 5,971 |
Total, Unrealized Losses | $ (365) | $ (127) |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Less than 12 Months, Number of Securities | Number | 8 | 3 |
Less than 12 Months, Fair Value | $ 5,947 | $ 2,988 |
Less than 12 Months, Unrealized Losses | $ (602) | (36) |
More than 12 Months, Number of Securities | Number | 3 | |
More than 12 Months, Fair Value | $ 2,412 | |
More than 12 Months, Unrealized Losses | (514) | |
Total, Fair Value | 8,359 | 2,988 |
Total, Unrealized Losses | $ (1,116) | $ (36) |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | ||
Less than 12 Months, Number of Securities | Number | 5 | 4 |
Less than 12 Months, Fair Value | $ 3,212 | $ 2,779 |
Less than 12 Months, Unrealized Losses | $ (209) | (69) |
More than 12 Months, Number of Securities | Number | 4 | |
More than 12 Months, Fair Value | $ 2,016 | |
More than 12 Months, Unrealized Losses | (499) | |
Total, Fair Value | 5,228 | 2,779 |
Total, Unrealized Losses | $ (708) | $ (69) |
Residential mortgage backed securities [Member] | ||
Less than 12 Months, Number of Securities | Number | 8 | 22 |
Less than 12 Months, Fair Value | $ 4,239 | $ 19,541 |
Less than 12 Months, Unrealized Losses | $ (503) | $ (399) |
More than 12 Months, Number of Securities | Number | 23 | 1 |
More than 12 Months, Fair Value | $ 16,649 | $ 2,304 |
More than 12 Months, Unrealized Losses | (4,064) | (85) |
Total, Fair Value | 20,888 | 21,845 |
Total, Unrealized Losses | $ (4,567) | $ (484) |
Municipal bonds [Member] | ||
Less than 12 Months, Number of Securities | Number | 86 | 7 |
Less than 12 Months, Fair Value | $ 49,228 | $ 6,494 |
Less than 12 Months, Unrealized Losses | $ (5,900) | $ (49) |
More than 12 Months, Number of Securities | Number | 8 | 1 |
More than 12 Months, Fair Value | $ 5,769 | $ 584 |
More than 12 Months, Unrealized Losses | (1,229) | (3) |
Total, Fair Value | 54,997 | 7,078 |
Total, Unrealized Losses | $ (7,129) | $ (52) |
Corporate debt [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | |
Less than 12 Months, Fair Value | $ 497 | |
Less than 12 Months, Unrealized Losses | (3) | |
Total, Fair Value | 497 | |
Total, Unrealized Losses | $ (3) | |
Corporate subordinated debt [Member] | ||
Less than 12 Months, Number of Securities | Number | 4 | |
Less than 12 Months, Fair Value | $ 4,457 | |
Less than 12 Months, Unrealized Losses | (593) | |
Total, Fair Value | 4,457 | |
Total, Unrealized Losses | $ (593) |
Securities Available-for-Sale_5
Securities Available-for-Sale - Additional Information (Detail) - Security | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Abstract] | ||
Number of holdings of securities aggregate carrying value exceeded ten percentage of stockholders' equity | 0 | 0 |
Loans - Additional Information
Loans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Number Loan | Dec. 31, 2021 USD ($) Loan Number | Dec. 31, 2020 USD ($) | |
Loans outstanding | $ 4,443,000 | $ 4,849,000 | $ 5,279,000 |
Loan balance | $ 189,000 | $ 195,000 | |
Number of Loans | Loan | 0 | 1 | |
Allowance for loan losses includes specific reserve for TDR | $ 0 | $ 0 | |
Residential Real Estate [Member] | |||
Loans collateralized by real estate | $ 0 | $ 0 | |
Paycheck Protection Program [Member] | |||
CARES Act number of guaranteed loans | Number | 0 | 134 | |
CARES Act aggregate guaranteed outstanding loans | $ 0 | $ 13,100,000 | |
Paycheck Protection Program [Member] | Commercial and Industrial Loans [Member] | |||
CARES Act aggregate guaranteed outstanding loans | $ 0 | $ 5,500,000 |
Loans - Schedule of Accounts, N
Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Total loans | $ 400,056 | $ 374,991 | |
Net deferred loan costs | 2,449 | 1,650 | |
Allowance for loan losses | (3,581) | (3,590) | $ (3,342) |
Net loans | 398,924 | 373,051 | |
CRE [Member] | |||
Total loans | 80,506 | 72,057 | |
Allowance for loan losses | (942) | (833) | (753) |
MF [Member] | |||
Total loans | 8,185 | 8,998 | |
Allowance for loan losses | (54) | (80) | (60) |
C+I [Member] | |||
Total loans | 24,059 | 26,851 | |
Allowance for loan losses | (184) | (194) | (267) |
ADL [Member] | |||
Total loans | 18,490 | 21,365 | |
Allowance for loan losses | (138) | (178) | (174) |
RES [Member] | |||
Total loans | 251,466 | 234,199 | |
Allowance for loan losses | (2,048) | (2,139) | (1,656) |
HELOC [Member] | |||
Total loans | 10,161 | 6,947 | |
Allowance for loan losses | (81) | (63) | (78) |
CON [Member] | |||
Total loans | 7,189 | 4,574 | |
Allowance for loan losses | $ (100) | $ (75) | $ (52) |
Loans - Transactions In The All
Loans - Transactions In The Allowance For Loan Losses ("ALL") (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 3,590 | $ 3,342 |
Provision for loan losses | 205 | |
Charge-offs | (14) | |
Recoveries | 5 | 43 |
Balance | 3,581 | 3,590 |
CRE [Member] | ||
Balance | 833 | 753 |
Provision for loan losses | 109 | 80 |
Balance | 942 | 833 |
MF [Member] | ||
Balance | 80 | 60 |
Provision for loan losses | (26) | 20 |
Balance | 54 | 80 |
C+I [Member] | ||
Balance | 194 | 267 |
Provision for loan losses | (14) | (112) |
Recoveries | 4 | 39 |
Balance | 184 | 194 |
ADL [Member] | ||
Balance | 178 | 174 |
Provision for loan losses | (40) | 4 |
Balance | 138 | 178 |
RES [Member] | ||
Balance | 2,139 | 1,656 |
Provision for loan losses | (91) | 482 |
Recoveries | 1 | |
Balance | 2,048 | 2,139 |
HELOC [Member] | ||
Balance | 63 | 78 |
Provision for loan losses | 18 | (15) |
Balance | 81 | 63 |
CON [Member] | ||
Balance | 75 | 52 |
Provision for loan losses | 38 | 20 |
Charge-offs | (14) | |
Recoveries | 1 | 3 |
Balance | 100 | 75 |
Unallocated [Member] | ||
Balance | 28 | 302 |
Provision for loan losses | 6 | (274) |
Balance | $ 34 | $ 28 |
Loans - Information About Loans
Loans - Information About Loans And The ALL By Portfolio Segment Are Summarized (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Individually evaluated for impairment | $ 278 | $ 969 | |
Collectively evaluated for impairment | 399,778 | 374,022 | |
Total | 400,056 | 374,991 | |
Collectively evaluated for impairment | 3,581 | 3,590 | |
Total | 3,581 | 3,590 | $ 3,342 |
CRE [Member] | |||
Individually evaluated for impairment | 104 | ||
Collectively evaluated for impairment | 80,506 | 71,953 | |
Total | 80,506 | 72,057 | |
Collectively evaluated for impairment | 942 | 833 | |
Total | 942 | 833 | 753 |
MF [Member] | |||
Collectively evaluated for impairment | 8,185 | 8,998 | |
Total | 8,185 | 8,998 | |
Collectively evaluated for impairment | 54 | 80 | |
Total | 54 | 80 | 60 |
C+I [Member] | |||
Individually evaluated for impairment | 28 | ||
Collectively evaluated for impairment | 24,059 | 26,823 | |
Total | 24,059 | 26,851 | |
Collectively evaluated for impairment | 184 | 194 | |
Total | 184 | 194 | 267 |
ADL [Member] | |||
Collectively evaluated for impairment | 18,490 | 21,365 | |
Total | 18,490 | 21,365 | |
Collectively evaluated for impairment | 138 | 178 | |
Total | 138 | 178 | 174 |
RES [Member] | |||
Individually evaluated for impairment | 273 | 722 | |
Collectively evaluated for impairment | 251,193 | 233,477 | |
Total | 251,466 | 234,199 | |
Collectively evaluated for impairment | 2,048 | 2,139 | |
Total | 2,048 | 2,139 | 1,656 |
HELOC [Member] | |||
Individually evaluated for impairment | 115 | ||
Collectively evaluated for impairment | 10,161 | 6,832 | |
Total | 10,161 | 6,947 | |
Collectively evaluated for impairment | 81 | 63 | |
Total | 81 | 63 | 78 |
CON [Member] | |||
Individually evaluated for impairment | 5 | ||
Collectively evaluated for impairment | 7,184 | 4,574 | |
Total | 7,189 | 4,574 | |
Collectively evaluated for impairment | 100 | 75 | |
Total | 100 | 75 | 52 |
Unallocated [Member] | |||
Collectively evaluated for impairment | 34 | 28 | |
Total | $ 34 | $ 28 | $ 302 |
Loans - Analysis Of Past Due Lo
Loans - Analysis Of Past Due Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Total | $ 400,056 | $ 374,991 |
Non-Accrual Loans | 89 | 837 |
30-59 Days Past Due [Member] | ||
Total Past Due | 12 | 123 |
60-89 Days Past Due [Member] | ||
Total Past Due | 84 | 616 |
Greater than 90 Days [Member] | ||
Total Past Due | 235 | |
Total Past Due | ||
Total Past Due | 96 | 974 |
Current | ||
Total Past Due | 399,960 | 374,017 |
CRE [Member] | ||
Total | 80,506 | 72,057 |
CRE [Member] | Current | ||
Total Past Due | 80,506 | 72,057 |
MF [Member] | ||
Total | 8,185 | 8,998 |
MF [Member] | Current | ||
Total Past Due | 8,185 | 8,998 |
C+I [Member] | ||
Total | 24,059 | 26,851 |
C+I [Member] | Current | ||
Total Past Due | 24,059 | 26,851 |
ADL [Member] | ||
Total | 18,490 | 21,365 |
ADL [Member] | Current | ||
Total Past Due | 18,490 | 21,365 |
RES [Member] | ||
Total | 251,466 | 234,199 |
Non-Accrual Loans | 84 | 722 |
RES [Member] | 60-89 Days Past Due [Member] | ||
Total Past Due | 84 | 487 |
RES [Member] | Greater than 90 Days [Member] | ||
Total Past Due | 235 | |
RES [Member] | Total Past Due | ||
Total Past Due | 84 | 722 |
RES [Member] | Current | ||
Total Past Due | 251,382 | 233,477 |
HELOC [Member] | ||
Total | 10,161 | 6,947 |
Non-Accrual Loans | 115 | |
HELOC [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 5 | 117 |
HELOC [Member] | 60-89 Days Past Due [Member] | ||
Total Past Due | 129 | |
HELOC [Member] | Total Past Due | ||
Total Past Due | 5 | 246 |
HELOC [Member] | Current | ||
Total Past Due | 10,156 | 6,701 |
CON [Member] | ||
Total | 7,189 | 4,574 |
Non-Accrual Loans | 5 | |
CON [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 7 | 6 |
CON [Member] | Total Past Due | ||
Total Past Due | 7 | 6 |
CON [Member] | Current | ||
Total Past Due | $ 7,181 | $ 4,568 |
Loans - Provides Information On
Loans - Provides Information On Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Recorded Carrying Value | $ 278 | $ 837 |
Unpaid Principal Balance | 278 | 837 |
Average Recorded Investment | 505 | 290 |
Interest Income Recognized | 35 | 14 |
C+I [Member] | ||
Average Recorded Investment | 203 | |
Interest Income Recognized | 12 | |
RES [Member] | ||
Recorded Carrying Value | 273 | 722 |
Unpaid Principal Balance | 273 | 722 |
Average Recorded Investment | 446 | 77 |
Interest Income Recognized | 32 | 2 |
HELOC [Member] | ||
Recorded Carrying Value | 115 | |
Unpaid Principal Balance | 115 | |
Average Recorded Investment | 57 | $ 10 |
Interest Income Recognized | 3 | |
CON [Member] | ||
Recorded Carrying Value | 5 | |
Unpaid Principal Balance | 5 | |
Average Recorded Investment | $ 2 |
Loans - Internal Risk Rating Of
Loans - Internal Risk Rating Of Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Total loans | $ 400,056 | $ 374,991 |
Pass [Member] | ||
Total loans | 397,281 | 371,321 |
Special Mention [Member] | ||
Total loans | 2,686 | 2,701 |
Substandard [Member] | ||
Total loans | 89 | 969 |
CRE [Member] | ||
Total loans | 80,506 | 72,057 |
CRE [Member] | Pass [Member] | ||
Total loans | 77,820 | 69,252 |
CRE [Member] | Special Mention [Member] | ||
Total loans | 2,686 | 2,701 |
CRE [Member] | Substandard [Member] | ||
Total loans | 104 | |
MF [Member] | ||
Total loans | 8,185 | 8,998 |
MF [Member] | Pass [Member] | ||
Total loans | 8,185 | 8,998 |
C+I [Member] | ||
Total loans | 24,059 | 26,851 |
C+I [Member] | Pass [Member] | ||
Total loans | 24,059 | 26,823 |
C+I [Member] | Substandard [Member] | ||
Total loans | 28 | |
ADL [Member] | ||
Total loans | 18,490 | 21,365 |
ADL [Member] | Pass [Member] | ||
Total loans | 18,490 | 21,365 |
RES [Member] | ||
Total loans | 251,466 | 234,199 |
RES [Member] | Pass [Member] | ||
Total loans | 251,382 | 233,477 |
RES [Member] | Substandard [Member] | ||
Total loans | 84 | 722 |
HELOC [Member] | ||
Total loans | 10,161 | 6,947 |
HELOC [Member] | Pass [Member] | ||
Total loans | 10,161 | 6,832 |
HELOC [Member] | Substandard [Member] | ||
Total loans | 115 | |
CON [Member] | ||
Total loans | 7,189 | 4,574 |
CON [Member] | Pass [Member] | ||
Total loans | 7,184 | $ 4,574 |
CON [Member] | Substandard [Member] | ||
Total loans | $ 5 |
Loans - Activity of Loans (Deta
Loans - Activity of Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | ||
Loans outstanding - beginning of year | $ 4,849 | $ 5,279 |
Principal payments | (576) | (430) |
Advances | 170 | |
Loans outstanding - end of year | $ 4,443 | $ 4,849 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Transferred Financial Assets Principal Amount Outstanding | $ 36,000,000 | $ 40,600,000 |
Loan servicing fee income | $ 126,000 | $ 163,000 |
Loan Servicing - Summary Of Act
Loan Servicing - Summary Of Activity In Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Balance, beginning of year | $ 322 | $ 273 |
Additions | 6 | 61 |
Payoffs | (28) | (60) |
Change in fair value due to change in assumptions | 57 | 48 |
Balance, end of year | $ 357 | $ 322 |
Land, Buildings And Equipment -
Land, Buildings And Equipment - Schedule of Land, Building and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 12,522 | $ 12,420 |
Less accumulated depreciation | (8,341) | (7,854) |
Property, Plant and Equipment, Net | 4,181 | 4,566 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 995 | 995 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,167 | 3,167 |
Building and Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,831 | 3,820 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 4,529 | $ 4,438 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
NOW and demand deposits | $ 204,739 | $ 206,235 |
Money market deposits | 60,931 | 71,317 |
Savings deposits | 54,954 | 57,365 |
Time deposits of $250,000 and greater | 7,796 | 6,281 |
Time deposits less than $250,000 | 53,943 | 52,045 |
Total deposits | $ 382,363 | $ 393,243 |
Deposits - Time Deposit Maturit
Deposits - Time Deposit Maturities (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Deposits [Abstract] | |
2023 | $ 37,024 |
2024 | 12,666 |
2025 | 7,307 |
2026 | 3,379 |
2027 | 1,363 |
Total | $ 61,739 |
Deposits - Additional informati
Deposits - Additional information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Time Deposits [Member] | |
Brokered time deposits | $ 18.1 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank Advances by Branch of FHLB Bank (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Principal Amounts | $ 99,397 | $ 29,462 |
Federal Home Loan Bank Advances One | ||
Principal Amounts | $ 96,729 | $ 12,262 |
Maturity Dates | 2023 | 2022 |
Federal Home Loan Bank Advances One | Minimum [Member] | ||
Interest Rates | 0.44% | 0% |
Federal Home Loan Bank Advances One | Maximum [Member] | ||
Interest Rates | 4.38% | 0.31% |
Federal Home Loan Bank Advances Two | ||
Principal Amounts | $ 800 | $ 15,000 |
Maturity Dates | 2024 | 2023 |
Interest Rates | 0% | |
Federal Home Loan Bank Advances Two | Minimum [Member] | ||
Interest Rates | 0.44% | |
Federal Home Loan Bank Advances Two | Maximum [Member] | ||
Interest Rates | 0.45% | |
Federal Home Loan Bank Advances Three | ||
Principal Amounts | $ 520 | $ 800 |
Maturity Dates | 2025 | 2024 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Four | ||
Principal Amounts | $ 718 | $ 520 |
Maturity Dates | 2028 | 2025 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Five | ||
Principal Amounts | $ 200 | $ 250 |
Maturity Dates | 2030 | 2028 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Six | ||
Principal Amounts | $ 430 | $ 200 |
Maturity Dates | 2031 | 2030 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Seven | ||
Principal Amounts | $ 430 | |
Maturity Dates | 2031 | |
Interest Rates | 0% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Banks unused remaining borrowing capacity | $ 36,500 | $ 109,700 |
Advances through FLHB | 99,397 | 29,462 |
Federal home loan bank maximum borrowing capacity | 3,000 | 3,000 |
Fed Funds Borrowing [Member] | ||
Fed funds borrowing capacity | 5,000 | |
New England Program [Member] | ||
Advances through FLHB | $ 2,700 | $ 4,500 |
Interest rate | 0% | 0% |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Components of Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current, federal | $ (59) | $ 334 |
Current, state | 109 | (42) |
Current, federal and state, total | 50 | 292 |
Deferred, federal | (369) | 117 |
Deferred, state | (132) | 192 |
Deferred, federal and state, total | (501) | 309 |
Federal, income tax expense (benefit) | (428) | 451 |
State, income tax expense (benefit) | (23) | 150 |
Income tax expense (benefit) | $ (451) | $ 601 |
Income Taxes - Schedule of Reas
Income Taxes - Schedule of Reasons for Differences in Amount Computed by U.S. Federal Income Tax Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Computed "expected" tax (benefit) expense | $ (213) | $ 677 |
State tax (benefit) expense, net of federal tax benefit | (18) | 118 |
BOLI income | (21) | (22) |
Valuation allowance | 62 | |
Income on tax exempt securities | (252) | (178) |
Other | (8) | 6 |
Income tax expense (benefit) | $ (451) | $ 601 |
Computed "expected" tax (benefit) | (21.00%) | |
Computed “expected” tax expense | 21% | |
State tax, net of federal tax benefit | (1.80%) | 3.70% |
BOLI income | (2.10%) | (0.70%) |
Valuation allowance | 6.10% | |
Income on tax exempt securities | (24.80%) | (5.50%) |
Other | (0.80%) | 0.20% |
Effective income tax rate | (44.40%) | 18.70% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 977,000 | $ 988,000 |
Deferred compensation liabilities | 494,000 | 468,000 |
Contribution carryforward | 171,000 | 120,000 |
State tax credit carryforward | 62,000 | 52,000 |
Depreciation | 16,000 | |
Securities available-for-sale | 3,873,000 | |
Net operating loss carryforward | 707,000 | |
Other | 48,000 | 56,000 |
Subtotal | 6,348,000 | 1,684,000 |
Less: valuation allowance | (171,000) | (60,000) |
Total deferred tax assets | 6,177,000 | 1,624,000 |
Deferred tax liabilities: | ||
Depreciation | (45,000) | |
Interest rate swaps | (260,000) | (54,000) |
Securities available-for-sale | (213,000) | |
Prepaid expenses | (43,000) | (43,000) |
Net deferred loan costs | (661,000) | (447,000) |
Mortgage servicing rights | (96,000) | (87,000) |
Total deferred tax liabilities | (1,060,000) | (889,000) |
Net deferred tax assets, included in other assets | $ 5,117,000 | $ 735,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | ||
Carryforward of charitable contributions | $ 633,000 | $ 443,000 |
Valuation allowance | $ 171,000 | 60,000 |
Charitable contributions limit percentage of taxable income deduction | 10% | |
Excess charitable contributions carryforwards succeeding period | 5 years | |
Charitable contribution carryforward utilization period | 6 years | |
Deferred tax assets, tax reserves for loan losses | $ 2,300,000 | |
Percentage of tax reserve for loan losses used for purpose other than to absorb loan losses subject to taxation | 150% | |
Reserve for loan losses of deferred tax liability not provided | $ 623,000 | |
Amount of interest and penalties recorded | 0 | $ 0 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforward | $ 2,700,000 | |
Percentage of net operating loss carryforwards | 80% | |
NEW HAMPSHIRE | State [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforward | $ 2,400,000 | |
Percentage of net operating loss carryforwards | 80% | |
NEW HAMPSHIRE | State [Member] | Business Enterprise Tax Credit Carry Forward [Member] | ||
Income Tax Disclosure [Line Items] | ||
Tax credit carry forward | $ 78,000 |
Employee Benefits - Additional
Employee Benefits - Additional information (Detail) - USD ($) | 12 Months Ended | ||||||
Jul. 01, 2022 | Feb. 10, 2022 | Jul. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2019 | May 26, 2022 | |
Number of shares committed to be released each year, ESOP | 11,924 | 11,924 | |||||
Unearned compensation for ESOP | $ 2,637,000 | $ 3,163,000 | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 202,000 | 189,000 | |||||
Pension Cost (Reversal of Cost) | 1,300,000 | ||||||
Deferred Compensation Liability Current And Noncurrent | 1,830,000 | 1,729,000 | |||||
Funded percentage | 100% | ||||||
Withdrawal liability amount | 1,500,000 | ||||||
Withdrawal liability paid | 200,000 | ||||||
Pension Plan [Member] | |||||||
Percentage of funding status | 96.24% | 104.99% | |||||
Pentegra DB Plan [Member] | |||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 200,000 | ||||||
Maximum employer contribution percentage in defined benefit plan | 5% | ||||||
Pension Cost (Reversal of Cost) | 1,500,000 | 200,000 | |||||
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||||
Liability, Defined Benefit Plan | $ 660,000 | $ 634,000 | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5% | 5% | |||||
Employee salary incremental percent | 3% | 3% | |||||
Defined Contribution Plan, Cost | $ 82,000 | $ 82,000 | |||||
Executive Supplemental Retirement Plan | Supplemental Employee Retirement Plan [Member] | |||||||
Pension Cost (Reversal of Cost) | 3,000 | 6,000 | |||||
Liability, Defined Benefit Plan | $ 47,000 | $ 90,000 | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | |||||
Endorsement Method Split Dollar Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||||
Pension Cost (Reversal of Cost) | $ 0 | $ 1,000 | |||||
Liability, Defined Benefit Plan | 34,000 | 35,000 | |||||
Deferred Directors Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||||
Pension Cost (Reversal of Cost) | 75,000 | 63,000 | |||||
Liability, Defined Benefit Plan | $ 537,000 | $ 550,000 | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | |||||
Defined Contribution Plan, Cost | $ 20,000 | ||||||
Revised fixed annual retirement benefits, payable | $ 200,000 | ||||||
Deferred Compensation Liability Current And Noncurrent | $ 553,000 | $ 420,000 | |||||
Previous final base fee, percentage | 70% | ||||||
First Seacoast Bank Employee Stock Ownership Plan [Member] | |||||||
Number of shares committed to be released each year, ESOP | 11,924 | ||||||
Employee stock option compensation recognized | $ 124,000 | 115,000 | |||||
Unearned compensation for ESOP | 1,900,000 | 2,000,000 | |||||
Employee stock option unallocated shares fair value | $ 1,800,000 | 2,200,000 | |||||
Employee stock option plan [Member] | |||||||
Stock Repurchase | 238,473 | ||||||
Remaining Loan Term | 16 years 6 months | ||||||
Percentage of Purchase price common stock | 100% | ||||||
Remaining Principal Balance of Debt | $ 2,000,000 | $ 2,100,000 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Company Compensation Expense for the ESOP (Detail) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ||
Allocated | 35,772 | 23,848 |
Committed to be allocated | 11,924 | 11,924 |
Unallocated | 190,777 | 202,701 |
Total | 238,473 | 238,473 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Nov. 18, 2021 | May 27, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Exercise of Option | 298,091 | |||
Stock Issued During Period, Shares, Restricted Stock Award, | 119,236 | |||
Stock options granted, outstanding | 0 | |||
Share price | $ 0 | $ 9.99 | ||
Unearned compensation for ESOP | $ 2,637,000 | $ 3,163,000 | ||
Income tax (benefit) expense | $ (451,000) | 601,000 | ||
Restricted Stock Awards [Member] | Directors and Members [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock Issued During Period, Shares, Restricted Stock Award, | 118,270 | |||
Share price | $ 9.99 | |||
Total fair value related to stock options granted | $ 1,200,000 | |||
Minimum [Member] | Restricted Stock Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Issued stock option granted, term | 3 years | |||
2021 Equity Incentive Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares issued during period, new issues | 417,327 | |||
Issued stock option granted, term | 10 years | |||
Share based expense recognized | $ 387,000 | 46,000 | ||
Unearned compensation for ESOP | 729,000 | 1,100,000 | ||
Income tax (benefit) expense | $ 105,000 | $ 12,000 | ||
Weighted average future recognition period | 1 year 10 months 24 days | 2 years 10 months 24 days | ||
2021 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Exercise of Option | 298,091 | |||
Stock Issued During Period, Shares, Restricted Stock Award, | 119,236 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Non-vested Restricted Shares Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Non-vested at beginning of year | 118,270 | 0 |
Number of Shares, Granted | 0 | 118,270 |
Number of Shares, Vested | 38,754 | 0 |
Number of Shares, Forfeited | (2,000) | 0 |
Non-vested at end of year | 77,516 | 118,270 |
Non-vested at beginning of year | $ 9.99 | $ 0 |
Weighted Average Grant Date Fair Value, Granted | 0 | 9.99 |
Weighted Average Grant Date Fair Value, Vested | 9.99 | 0 |
Weighted Average Grant Date Fair Value, Forfeited | 9.99 | 0 |
Non-vested at end of year | $ 9.99 | $ 9.99 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | ||
Lease expiration month and year | 2027-08 | 2022-06 |
Future lease payments | $ 188,000 | $ 16,000 |
Operating lease expense | $ 33,000 | $ 32,000 |
Branch Office and Certain Equipment [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating leases expiration beginning year | 2023 | |
Operating leases expiration ending year | 2027 | |
Operating lease option to extend | true | |
Operating lease, renewal term | 4 years |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Asset and Net Lease Liability (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Right-of-use asset | $ 202 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets |
Net lease liability | $ 202 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities |
Leases - Components of Operatin
Leases - Components of Operating Lease Cost and Other Related Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 54 |
Total operating lease cost | 54 |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases | $ 54 |
Weighted average lease term - years | 4 years 4 months 13 days |
Weighted average discount rate | 3.29% |
Leases - Schedule of Total Mini
Leases - Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 52 |
2024 | 49 |
2025 | 45 |
2026 | 43 |
2027 | 29 |
Total minimum lease payments | 218 |
Less: interest | (16) |
Net lease liability | $ 202 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | ||
Losses (gains) on sale of securities available-for-sale | $ 747 | $ (535) |
Tax effect | (202) | 145 |
Net (loss) income | 545 | (390) |
Net amortization of bond premiums | 1,009 | 699 |
Tax effect | (274) | (189) |
Net (loss) income | 735 | 510 |
Net interest (income) expense on swaps | (115) | 48 |
Tax effect | 31 | (13) |
Net (loss) income | (84) | 35 |
Total reclassification adjustments | $ 1,196 | $ 155 |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income - Summary of Changes in Component of AOCI (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance at the beginning of the period | $ 721,000 | $ 1,381 |
Other comprehensive (loss) income before reclassification | (11,644) | (815) |
Amounts reclassified from AOCI | 1,196 | 155 |
Other comprehensive (loss) income | (10,448,000) | (660,000) |
Balance at the end of the period | (9,727,000) | 721,000 |
Net Unrealized (Losses) Gains on AFS Securities | ||
Balance at the beginning of the period | 575 | 1,481 |
Other comprehensive (loss) income before reclassification | (12,283) | (1,026) |
Amounts reclassified from AOCI | 1,280 | 120 |
Other comprehensive (loss) income | (11,003,000) | (906) |
Balance at the end of the period | (10,428) | 575 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Balance at the beginning of the period | 146 | (100) |
Other comprehensive (loss) income before reclassification | 639 | 211 |
Amounts reclassified from AOCI | (84) | 35 |
Other comprehensive (loss) income | 555,000 | 246 |
Balance at the end of the period | $ 701 | $ 146 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies - Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Unadvanced portions of loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | $ 44,929 | $ 42,781 |
Commitments to originate loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | 16,134 | 15,103 |
Standby letters of credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | $ 302 | $ 318 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Capital Requirements (Detail) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Actual, Total Capital (to risk- weighted assets) | $ 52,475 | $ 52,798 |
Actual, Tier 1 Capital (to risk- weighted assets) | 48,821 | 49,151 |
Actual, Tier 1 Capital (to average assets) | 48,821 | 49,151 |
Actual, Common Equity Tier 1 (to risk-weighted assets) | $ 48,821 | $ 49,151 |
Actual Ratio, Total Capital (to risk- weighted assets) | 0.1553 | 0.1787 |
Actual Ratio, Tier 1 Capital (to risk- weighted assets) | 0.1445 | 0.1663 |
Actual Ratio, Tier 1 Capital (to average assets) | 0.0920 | 0.0992 |
Actual Ratio, Common Equity Tier 1 (to risk-weighted assets) | 0.1445 | 0.1663 |
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 27,028 | $ 23,641 |
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets) | 20,271 | 17,731 |
Minimum Capital Requirement, Tier 1 Capital (to average assets) | 21,224 | 19,811 |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 15,203 | $ 13,298 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.0800 | 0.0800 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.0600 | 0.0600 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.0400 | 0.0400 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 4.50% | 4.50% |
Minimum Capital Required to be Well Capitalized, Total Capital (to risk-weighted assets) | $ 33,785 | $ 29,546 |
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to risk-weighted assets) | 27,028 | 23,644 |
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to average assets) | 26,530 | 24,774 |
Minimum Capital Required to be Well Capitalized, Common Equity Tier 1 (to risk-weighted assets) | $ 21,960 | $ 19,211 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.1000 | 0.1000 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.0800 | 0.0800 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.0500 | 0.0500 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 0.0650 | 0.0650 |
Fully Phased In | ||
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 35,474 | $ 31,029 |
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets) | 28,717 | 25,119 |
Minimum Capital Requirement, Tier 1 Capital (to average assets) | 21,224 | 19,811 |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 23,649 | $ 20,686 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.1050 | 0.1050 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.0850 | 0.0850 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.0400 | 0.0400 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 7% | 7% |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - shares | Dec. 31, 2022 | Nov. 18, 2022 | Dec. 31, 2021 | Sep. 23, 2020 |
Equity Class Of Treasury Stock [Line Items] | ||||
Vested restricted stock award surrendered in lieu of cash payment | 593 | |||
Treasury Stock, Shares outstanding | 137,472 | 78,433 | ||
Common Stock [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Percentage of repurchase of Common Stock | 2.20% | |||
Number of shares authorized for repurchase | 136,879 | 78,433 | ||
Common Stock [Member] | Maximum [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Number of shares authorized for repurchase | 136,879 | |||
Common Stock [Member] | Stockholders other than First Seacoast Bancorp, MHC [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Equity method investment ownership percentage | 5% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Detail) | 12 Months Ended | ||
Jan. 17, 2023 USD ($) | Dec. 31, 2022 USD ($) Derivative | Dec. 31, 2021 USD ($) | |
Derivatives Fair Value [Line Items] | |||
Interest rate swaps | $ 761,000 | $ 337,000 | |
Cash collateral from counterparties | 535,000,000 | 526,000,000 | |
Interest Rate Swaps [Member] | Subsequent Event [Member] | |||
Derivatives Fair Value [Line Items] | |||
Gain on derivative | $ 849,000 | ||
Designated as Hedging Instrument | Interest Rate Swaps [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 10,000,000 | 10,000,000 | |
Interest rate swaps | 761,000,000 | 37,000,000 | |
Designated as Hedging Instrument | Interest Rate Swaps [Member] | Other Assets [Member] | |||
Derivatives Fair Value [Line Items] | |||
Interest rate swap derivative asset | 961,000 | 200,000 | |
Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 5,000,000 | 5,000,000 | |
Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 5,000,000 | 5,000,000 | |
Cash Flow Hedges on 90-day Advances from FHLB [Member] | |||
Derivatives Fair Value [Line Items] | |||
Other Liabilities | $ 10,000,000 | $ 10,000,000 | |
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument | Interest Rate Swaps [Member] | |||
Derivatives Fair Value [Line Items] | |||
Number of notional interest rate swaps | Derivative | 2 | ||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 5,000,000 | ||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 5,000,000 | ||
Balance Sheet Hedges on 90-day Advances from FHLB [Member] | |||
Derivatives Fair Value [Line Items] | |||
Other Liabilities | $ 10,000,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Summary of the Company's Derivatives Associated with its Interest Rate Risk Management Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives Fair Value [Line Items] | ||
Other Liabilities | $ 10,000 | $ 10,000 |
Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Start Date | Apr. 13, 2020 | Apr. 13, 2020 |
Maturity Date | Apr. 13, 2025 | Apr. 13, 2025 |
Rate | 0.68% | 0.68% |
Notional | $ 5,000 | $ 5,000 |
Other Assets | 431 | $ 85 |
Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | $ 5,000 | |
Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Start Date | Apr. 13, 2021 | Apr. 13, 2021 |
Maturity Date | Apr. 13, 2026 | Apr. 13, 2026 |
Rate | 0.74% | |
Notional | $ 5,000 | $ 5,000 |
Other Assets | 530 | 115 |
Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 5,000 | |
Designated as Hedging Instrument | Interest Rate Swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 10,000 | 10,000 |
Other Assets | $ 961 | $ 200 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Summary of the Effect of Cash Flow Hedge Accounting (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives Fair Value [Line Items] | ||
Location and Amount of Loss Recognized in Statements of Income | $ 1,747 | $ 1,235 |
Amount reclassified from AOCI into expense | ||
Derivatives Fair Value [Line Items] | ||
Location and Amount of Loss Recognized in Statements of Income | $ 115 | $ (48) |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Fair Value, by Balance Sheet Grouping (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | $ 106,100 | $ 91,365 | |
U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 1,826 | 5,971 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 8,359 | [1] | 5,045 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 6,222 | [1] | 3,332 |
Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 21,823 | [1] | 23,332 |
Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 62,416 | 50,613 | |
Corporate debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 497 | ||
Fair Value, Measurements, Recurring [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 4,957 | 3,072 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 1,826 | 5,971 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 8,359 | 5,045 | |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 6,222 | 3,332 | |
Fair Value, Measurements, Recurring [Member] | Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 21,823 | 23,332 | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 62,416 | 50,613 | |
Fair Value, Measurements, Recurring [Member] | Corporate debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 497 | ||
Fair Value, Measurements, Recurring [Member] | Derivative [Member] | |||
Assets, Fair Value Disclosure | |||
Liabilities, Fair Value Disclosure | 961 | 200 | |
Fair Value, Measurements, Recurring [Member] | Mortgage servicing rights [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 357 | 322 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 4,957 | 3,072 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 1,826 | 5,971 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 8,359 | 5,045 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 6,222 | 3,332 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 21,823 | 23,332 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 62,416 | 50,613 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 497 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative [Member] | |||
Assets, Fair Value Disclosure | |||
Liabilities, Fair Value Disclosure | 961 | 200 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage servicing rights [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | $ 357 | $ 322 | |
[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - Mortgage servicing rights [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Beginning Balance | [1] | $ 322 | $ 273 |
Included in net income | [1] | 35 | 49 |
Ending Balance | [1] | $ 357 | $ 322 |
[1] Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income. |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Mortgage servicing rights [Member] | ||||
Mortgage Servicing Rights | [1] | $ 357 | $ 322 | $ 273 |
Prepayment Rate [Member] | Minimum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0648 | 0.0663 | ||
Prepayment Rate [Member] | Maximum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.2349 | 0.2556 | ||
Prepayment Rate [Member] | Weighted Average [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0778 | 0.1339 | |
Mortgage Servicing Rights | Prepayment Rate | Prepayment Rate | ||
Prepayment Rate [Member] | Mortgage servicing rights [Member] | ||||
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember | ||
Mortgage Servicing Rights | $ 357 | $ 322 | ||
Discount Rate [Member] | Minimum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0950 | 0.0900 | ||
Discount Rate [Member] | Maximum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0950 | 0.0900 | ||
Discount Rate [Member] | Weighted Average [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0950 | 0.0900 | |
Mortgage Servicing Rights | Discount Rate | Discount Rate | ||
Delinquency Rate [Member] | Minimum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0213 | 0.0282 | ||
Delinquency Rate [Member] | Maximum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0279 | 0.0363 | ||
Delinquency Rate [Member] | Weighted Average [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0224 | 0.0296 | |
Mortgage Servicing Rights | Delinquency Rate | Delinquency Rate | ||
Default Rate [Member] | Minimum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0014 | 0.0008 | ||
Default Rate [Member] | Maximum [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0020 | 0.0014 | ||
Default Rate [Member] | Weighted Average [Member] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0015 | 0.0013 | |
Mortgage Servicing Rights | Default Rate | Default Rate | ||
[1] Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income. Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-financial assets and liabilities measured at fair value on a recurring basis | $ 0 | |
Foreclosed assets | 0 | $ 0 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Fair Value Measurements, Recurring and Nonrecurring (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Cash and due from banks | $ 8,250 | $ 6,638 |
Interest-bearing time deposits with other banks | 747 | 1,245 |
Federal Home Loan Bank stock | 3,502 | 1,688 |
Bank-owned life insurance | 4,561 | 4,461 |
Loans, net | 398,924 | 373,051 |
Accrued interest receivable | 1,988 | 1,499 |
Financial Liabilities: | ||
Deposits | 382,363 | 393,243 |
Advances from Federal Home Loan Bank | 99,397 | 29,462 |
Mortgagors’ tax escrow | 938 | 652 |
Accrued interest payable | 95 | 33 |
Cash and due from banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 8,250 | 6,638 |
Interest-bearing time deposits with other banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 747 | 1,245 |
Federal Home Loan Bank stock [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 3,502 | 1,688 |
Bank-owned life insurance [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,561 | 4,461 |
Loans, net [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 361,402 | 371,587 |
Accrued interest receivable [member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 1,988 | 1,499 |
Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 379,714 | 393,145 |
Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 97,675 | 29,063 |
Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 938 | 652 |
Accrued interest payable [member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 95 | 33 |
Fair Value, Inputs, Level 1 [Member] | Cash and due from banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 8,250 | 6,638 |
Fair Value, Inputs, Level 1 [Member] | Accrued interest receivable [member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 1,988 | 1,499 |
Fair Value, Inputs, Level 1 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 320,624 | 334,917 |
Fair Value, Inputs, Level 1 [Member] | Accrued interest payable [member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 95 | 33 |
Fair Value, Inputs, Level 2 [Member] | Interest-bearing time deposits with other banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 747 | 1,245 |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank stock [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 3,502 | 1,688 |
Fair Value, Inputs, Level 2 [Member] | Bank-owned life insurance [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,561 | 4,461 |
Fair Value, Inputs, Level 2 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 59,090 | 58,228 |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 97,675 | 29,063 |
Fair Value, Inputs, Level 2 [Member] | Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 938 | 652 |
Fair Value, Inputs, Level 3 [Member] | Loans, net [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | $ 361,402 | $ 371,587 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||
Other assets | $ 9,171 | $ 2,561 | |
Total assets | 537,424 | 487,074 | |
LIABILITIES | |||
Other liabilities | 3,559 | 1,520 | |
Total liabilities | 488,087 | 426,606 | |
STOCKHOLDERS' EQUITY | |||
Stockholders’ equity | 49,337 | 60,468 | $ 58,861 |
Total liabilities and stockholders' equity | 537,424 | 487,074 | |
First Seacoast Bancorp (Parent) Company | |||
ASSETS | |||
Cash held at First Seacoast Bank | 9,346 | 9,785 | |
Investment in First Seacoast Bank | 37,925 | 48,477 | |
Loan to First Seacoast Bank ESOP | 2,025 | 2,105 | |
Deferred tax asset | 60 | ||
Other assets | 41 | 43 | |
Total assets | 49,337 | 60,470 | |
LIABILITIES | |||
Other liabilities | 2 | ||
Total liabilities | 2 | ||
STOCKHOLDERS' EQUITY | |||
Stockholders’ equity | 49,337 | 60,468 | |
Total liabilities and stockholders' equity | $ 49,337 | $ 60,470 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Schedule of Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax expense | $ (451) | $ 601 |
Net (loss) income | (565) | 2,621 |
First Seacoast Bancorp (Parent) Company | ||
Interest on ESOP loan | 110 | 115 |
Miscellaneous expense | 4 | 3 |
Income before income tax expense and equity in undistributed net (loss) income of First Seacoast Bank | 106 | 112 |
Income tax expense | 62 | |
Net income before equity in undistributed net income of First Seacoast Bank | 44 | 112 |
Equity in undistributed net income of First Seacoast Bank | (609) | 2,509 |
Net (loss) income | $ (565) | $ 2,621 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (565) | $ 2,621 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Deferred tax expense | (296) | 309 |
Decrease (increase) in other assets | (1,483) | (771) |
Net cash provided by operating activities | 973 | 2,421 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash used by investing activities | (58,073) | (43,498) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash provided by financing activities | 58,712 | 41,719 |
Net change in cash and cash equivalents | 1,612 | 642 |
Cash and cash equivalents at beginning of year | 6,638 | 5,996 |
Cash and cash equivalents at end of year | 8,250 | 6,638 |
First Seacoast Bancorp (Parent) Company | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | (565) | 2,621 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Undistributed net loss (income) of First Seacoast Bank | 609 | (2,509) |
Deferred tax expense | 60 | 25 |
Decrease (increase) in other assets | 2 | (25) |
Decrease in other liabilities | (2) | (5) |
Net cash provided by operating activities | 104 | 107 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Principal payments received on ESOP | 80 | 75 |
Net cash used by investing activities | 80 | 75 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Treasury stock purchases | (623) | (515) |
Net cash provided by financing activities | (623) | (515) |
Net change in cash and cash equivalents | (439) | (333) |
Cash and cash equivalents at beginning of year | 9,785 | 10,118 |
Cash and cash equivalents at end of year | $ 9,346 | $ 9,785 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Jan. 19, 2023 $ / shares shares | Jan. 17, 2023 USD ($) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares |
Subsequent Event [Line Items] | ||||
Common stock issued | 6,201,770 | 6,201,770 | ||
Common stock, price per share | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock outstanding | 6,064,298 | 6,123,337 | ||
Cash in collateral returned | $ | $ 8,250,000 | $ 6,638,000 | ||
Subsequent Event [Member] | First Seacoast Bancorp, Inc [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock shares sold | 2,805,000 | |||
Common stock, price per share | $ / shares | $ 10 | |||
Common stock outstanding | 5,077,492 | |||
Common stock coversion ratio | 0.8358 | |||
Offering price | $ / shares | $ 10 | |||
Subsequent Event [Member] | First Seacoast Bancorp, Inc [Member] | First Seacoast Bank Employee Stock Ownership Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock issued | 224,400 | |||
Subsequent Event [Member] | Interest Rate Swaps [Member] | ||||
Subsequent Event [Line Items] | ||||
Gain on derivative | $ | $ 849,000 | |||
Cash in collateral returned | $ | $ 536,000 |