Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | First Seacoast Bancorp | |
Entity Central Index Key | 0001769267 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | No | |
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 | |
Entity Common Stock, Shares Outstanding | 6,083,500 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 10,648 | $ 5,889 |
Interest bearing time deposits with other banks | 4,722 | 6,461 |
Securities available-for-sale, at fair value | 43,519 | 39,443 |
Federal Home Loan Bank stock | 2,468 | 3,718 |
Loans | 334,603 | 321,422 |
Less allowance for loan losses | 2,832 | 2,806 |
Net loans | 331,771 | 318,616 |
Land, building and equipment, net | 5,436 | 5,581 |
Bank-owned life insurance | 4,215 | 4,156 |
Accrued interest receivable | 1,248 | 1,164 |
Other assets | 2,797 | 2,086 |
Total assets | 406,824 | 387,114 |
Deposits: | ||
Non-interest bearing deposits | 43,298 | 42,262 |
Interest bearing deposits | 240,606 | 232,184 |
Total deposits | 283,904 | 274,446 |
Advances from Federal Home Loan Bank | 56,012 | 75,737 |
Mortgagors' tax escrow | 819 | 761 |
Deferred compensation liability | 1,532 | 1,547 |
Stock subscriptions | 28,609 | |
Other liabilities | 1,943 | 1,896 |
Total liabilities | 372,819 | 354,387 |
Equity capital: | ||
Equity capital | 33,583 | 33,192 |
Accumulated other comprehensive income (loss) | 422 | (465) |
Total equity capital | 34,005 | 32,727 |
Total liabilities and equity capital | $ 406,824 | $ 387,114 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 3,487 | $ 3,198 | $ 6,865 | $ 6,304 |
Interest on debt securities: | ||||
Taxable | 205 | 187 | 417 | 360 |
Non-taxable | 136 | 61 | 251 | 118 |
Total interest on debt securities | 341 | 248 | 668 | 478 |
Dividends | 58 | 56 | 119 | 103 |
Total interest and dividend income | 3,886 | 3,502 | 7,652 | 6,885 |
Interest expense: | ||||
Interest on deposits | 562 | 389 | 1,076 | 739 |
Interest on Federal Home Loan Bank advances | 505 | 368 | 1,020 | 646 |
Total interest expense | 1,067 | 757 | 2,096 | 1,385 |
Net interest and dividend income | 2,819 | 2,745 | 5,556 | 5,500 |
Provision for loan losses | 25 | 30 | 25 | 70 |
Net interest income after provision for loan losses | 2,794 | 2,715 | 5,531 | 5,430 |
Noninterest income: | ||||
Customer service fees | 254 | 250 | 473 | 486 |
Gain on sale of loans | 24 | 8 | 35 | 23 |
Securities losses, net | (2) | (10) | ||
Income from bank-owned life insurance | 29 | 29 | 59 | 58 |
Loan servicing fee (loss) income | (20) | 4 | (25) | 74 |
Investment services fees | 61 | 41 | 105 | 78 |
Other income | 12 | 9 | 24 | 22 |
Total noninterest income | 358 | 341 | 661 | 741 |
Noninterest expense: | ||||
Salaries and employee benefits | 1,773 | 1,538 | 3,525 | 3,179 |
Director compensation | 76 | 56 | 156 | 109 |
Occupancy expense | 169 | 194 | 340 | 376 |
Equipment expense | 133 | 136 | 265 | 273 |
Marketing | 165 | 125 | 247 | 250 |
Data processing | 85 | 242 | 304 | 500 |
Deposit insurance | 65 | 58 | 120 | 115 |
Professional fees and assessments | 113 | 138 | 243 | 272 |
Debit card fees | 40 | 37 | 75 | 66 |
Employee travel and education expenses | 68 | 68 | 119 | 125 |
Other expense | 246 | 164 | 397 | 329 |
Total noninterest expense | 2,933 | 2,756 | 5,791 | 5,594 |
Income before provision for income taxes | 219 | 300 | 401 | 577 |
Provision for income taxes | 6 | 46 | 10 | 101 |
Net income | $ 213 | $ 254 | $ 391 | $ 476 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 213 | $ 254 | $ 391 | $ 476 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during the period net of income taxes of $124, $(52), $318 and $(203), respectively | 332 | (139) | 850 | (541) |
Reclassification adjustment for gains and losses and net amortization or accretion on securities available-for-sale included in net income net of income taxes of $4, $9, $13 and $17, respectively | 12 | 25 | 37 | 45 |
Other comprehensive income (loss) | 344 | (114) | 887 | (496) |
Comprehensive income (loss) | $ 557 | $ 140 | $ 1,278 | $ (20) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Unrealized holding gains (losses) on securities available-for-sale arising during the period net of income taxes | $ 124 | $ (52) | $ 318 | $ (203) |
Reclassification adjustment for gains and losses and net amortization or accretion on securities available-for-sale included in net income net of income taxes | $ 4 | $ 9 | $ 13 | $ 17 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY CAPITAL - USD ($) $ in Thousands | Total | Equity Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2017 | $ 31,898 | $ 32,112 | $ (214) |
Net income | 222 | 222 | |
Other comprehensive income (loss) | (382) | (382) | |
Ending Balance at Mar. 31, 2018 | 31,738 | 32,334 | (596) |
Beginning Balance at Dec. 31, 2017 | 31,898 | 32,112 | (214) |
Net income | 476 | ||
Other comprehensive income (loss) | (496) | ||
Ending Balance at Jun. 30, 2018 | 31,878 | 32,588 | (710) |
Beginning Balance at Mar. 31, 2018 | 31,738 | 32,334 | (596) |
Net income | 254 | 254 | |
Other comprehensive income (loss) | (114) | (114) | |
Ending Balance at Jun. 30, 2018 | 31,878 | 32,588 | (710) |
Beginning Balance at Dec. 31, 2018 | 32,727 | 33,192 | (465) |
Net income | 178 | 178 | |
Other comprehensive income (loss) | 543 | 543 | |
Ending Balance at Mar. 31, 2019 | 33,448 | 33,370 | 78 |
Beginning Balance at Dec. 31, 2018 | 32,727 | 33,192 | (465) |
Net income | 391 | ||
Other comprehensive income (loss) | 887 | ||
Ending Balance at Jun. 30, 2019 | 34,005 | 33,583 | 422 |
Beginning Balance at Mar. 31, 2019 | 33,448 | 33,370 | 78 |
Net income | 213 | 213 | |
Other comprehensive income (loss) | 344 | 344 | |
Ending Balance at Jun. 30, 2019 | $ 34,005 | $ 33,583 | $ 422 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 391 | $ 476 |
Adjustments to reconcile net income to net cash used by operating activities: | ||
Depreciation | 265 | 273 |
Net amortization of bond premium | 40 | 62 |
Provision for loan losses | 25 | 70 |
Gain on sale of loans | (35) | (23) |
Securities losses, net | 10 | |
Proceeds from loans held for sale | 2,206 | 2,174 |
Origination of loans held for sale | (2,171) | (2,151) |
Increase in bank-owned life insurance | (59) | (58) |
Increase in deferred fees on loans | (12) | (14) |
Deferred tax benefit | (130) | (3) |
Increase in accrued interest receivable | (84) | (17) |
Increase in other assets | (913) | (361) |
Decrease in deferred compensation liability | (15) | (351) |
Increase (decrease) in other liabilities | 47 | (1,213) |
Net cash used by operating activities | (435) | (1,136) |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of securities available-for-sale | 7,009 | 230 |
Purchase of securities available-for-sale | (9,916) | (6,740) |
Purchase of property and equipment | (120) | (47) |
Loan originations and principal collections, net | (13,168) | (9,135) |
Net redemption (purchase) of Federal Home Loan Bank stock | 1,250 | (730) |
Proceeds from sales of interest bearing time deposits with other banks | 1,739 | |
Purchase of interest bearing time deposits with other banks | (1,492) | |
Net cash used by investing activities | (13,206) | (17,914) |
Cash flows from financing activities: | ||
Net (decrease) increase in NOW, demand deposits, money market and savings accounts | (2,971) | 13,129 |
Net increase in certificates of deposit | 12,429 | 1,427 |
Increase in mortgagors' escrow accounts | 58 | 482 |
Proceeds from short-term FHLB advances | 137,654 | 126,570 |
Payments on short-term FHLB advances | (157,379) | (109,235) |
Payments on long-term FHLB advances | (8,000) | |
Decrease in repurchase agreements | (5,626) | |
Proceeds from stock subscriptions | 28,609 | |
Net cash provided by financing activities | 18,400 | 18,747 |
Net change in cash and cash equivalents | 4,759 | (303) |
Cash and cash equivalents at beginning of period | 5,889 | 5,650 |
Cash and cash equivalents at end of period | 10,648 | 5,347 |
Cash activities: | ||
Cash paid for interest | 2,132 | 1,800 |
Cash paid for income taxes | ||
Effect of change in fair value of investments available for sale: | ||
Investment securities available-for-sale | 1,219 | (682) |
Deferred taxes | (332) | 186 |
Other comprehensive income (loss) | $ 887 | $ (496) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of Federal Savings Bank and Subsidiary (the “Bank”) were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q S-X. The accompanying consolidated financial statements include the accounts of the Bank and its wholly-owned subsidiary, FSB Service Corporation, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. On February 28, 2019, the Bank’s Board of Directors adopted a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan (the “Plan of Reorganization”). The stock offering that ended on June 18, 2019 was oversubscribed. Total stock subscriptions received at June 30, 2019 were $28.6 million. The Company sold a total of 2,676,740 shares of common stock, which includes 238,473 shares sold to the First Seacoast Bank Employee Stock Ownership Plan, at a price of $10.00 per share. The total offering value and number of shares of common stock determined based upon an independent appraiser’s valuation. In addition, as part of the reorganization, the Company issued 3,345,925 shares of common stock to First Seacoast Bancorp, MHC (the “MHC”), the Bank’s proposed parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc., a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. A total of 6,083,500 shares of common stock of the Company are issued and outstanding Accounting Standards Adopted in 2019 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. Accordingly, following the completion of the transactions contemplated by the Plan of Reorganization, 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. As of June 30, 2019, there is no significant difference in the comparability of the Bank’s consolidated financial statements as a result of this extended transition period. 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; (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 May 2014, the Financial Accounting Standards Board (“FASB”) issued amendments to Accounting Standards Codification (“ASC”) section 606, “Revenue from Contracts with Customers,” 2014-09, “Revenue from Contracts with Customers.” 2015-14, “Revenue from Contracts with Customers (Topic 606).” 2015-14 2014-09 non-public The Bank adopted this ASU as of January 1, 2019 utilizing the modified retrospective approach with no cumulative effect adjustment to opening equity capital deemed to be necessary. Our revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, non-interest 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, investment securities, as well as revenue related to our mortgage servicing activities. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our consolidated statements of income as components of non-interest 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. Assets under management totaled approximately $43.3 million and $39.1 million at June 30, 2019 (unaudited) and December 31, 2018, respectively. Our wealth management group, FSB Wealth Management, assists individuals and families in building and preserving their wealth by providing investment services. The investment management group manages portfolios utilizing a variety of investment products. This group also provides a full-service brokerage offering equities, mutual funds, life insurance, and annuity products. In January 2016 the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): 1. Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. 2. Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. 3. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. 4. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 5. Require an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. 6. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. 7. Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments of this ASU were adopted on January 1, 2019 and did not materially impact the Bank’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” non-public In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” beginning-of-period end-of-period non-public In March 2017, the FASB issued ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” non-public Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).” non-public 2018-10, Codification Improvements to Topic 842, Leases,” 2016-02 2018-11, Leases (Topic 842) – Targeted Improvements,” In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” available-for-sale held-to-maturity available-for-sale 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” 2019-05, “Financial Instruments—Credit Losses, Topic 326.” 2016-13 2016-13 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20).” non-public |
Securities Available-for-Sale
Securities Available-for-Sale | 6 Months Ended |
Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Securities Available-for-Sale | 2. Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale, June 30, 2019 Amortized Gross Gross Fair Value U.S. Government-sponsored enterprises obligations $ 19,726 $ 48 $ (20 ) $ 19,754 Residential mortgage backed securities 1,360 — (10 ) 1,350 Municipal bonds 21,854 568 (7 ) 22,415 $ 42,940 $ 616 $ (37 ) $ 43,519 December 31, 2018 Amortized Gross Gross Fair Value U.S. Government-sponsored enterprises obligations $ 24,219 $ 8 $ (500 ) $ 23,727 Residential mortgage backed securities 1,374 — (47 ) 1,327 Municipal bonds 14,490 39 (140 ) 14,389 $ 40,083 $ 47 $ (687 ) $ 39,443 The amortized cost and fair values of available-for-sale Amortized Fair Value June 30, 2019 Due after one year through five years $ 12,252 $ 12,239 Due after five years through ten years 8,486 8,563 Due after ten years 20,842 21,367 Total U.S. Government-sponsored enterprises obligations and 41,580 42,169 Mortgage-backed securities 1,360 1,350 $ 42,940 $ 43,519 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 June 30, 2019 (unaudited) and December 31, 2018 (dollars in thousands): Less than 12 Months More than 12 Months Total Number of Fair Unrealized Number of Fair Unrealized Fair Unrealized June 30, 2019 U.S. Government -sponsored enterprises obligation — $ — $ — 3 $ 4,980 $ (20 ) $ 4,980 $ (20 ) Residential mortgage backed securities — — — 1 1,350 (10 ) 1,350 (10 ) Municipal bonds 2 608 (4 ) 1 526 (3 ) 1,134 (7 ) 2 $ 608 $ (4 ) 5 $ 6,856 $ (33 ) $ 7,464 $ (37 ) December 31, 2018 U.S. Government -sponsored enterprises obligation 4 $ 4,937 $ (32 ) 15 $ 16,781 $ (468 ) $ 21,718 $ (500 ) Residential mortgage backed securities 1 1,327 (47 ) — — — 1,327 (47 ) Municipal bonds 13 6,014 (63 ) 9 4,051 (77 ) 10,065 (140 ) 18 $ 12,278 $ (142 ) 24 $ 20,832 $ (545 ) $ 33,110 $ (687 ) In evaluating whether the 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 Bank does not intend to sell investments with unrealized losses and it is more likely than not that the Bank 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 June 30, 2019 (unaudited) or December 31, 2018. Gross realized gains were $7,000 and $-0- $-0- $-0- $-0- As of June 30, 2019 (unaudited) or December 31, 2018, there were no holdings that were issued by a single state or political subdivision which comprised more than 10% of the total fair value of the Bank’s available-for-sale |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans | 3. Loans The Bank’s lending activities are primarily conducted in and around Dover, New Hampshire, and in the areas surrounding its branches. The Bank grants commercial real estate loans, multifamily 5+ dwelling unit loans, commercial and industrial loans, acquisition, development and land loans, 1–4 family residential loans, home equity line of credit loans and consumer loans. Most loans granted 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. Loans consisted of the following at June 30, 2019 (unaudited) and December 31, 2018 (in thousands): June 30, December 31, Commercial real estate (CRE) $ 68,510 $ 63,853 Multifamily (MF) 4,839 4,928 Commercial and industrial (C+I) 21,620 21,990 Acquisition, development, and land (ADL) 15,400 15,580 1-4 209,870 201,759 Home equity line of credit (HELOC) 11,123 11,151 Consumer (CON) 2,363 1,295 Total loans 333,725 320,556 Net deferred loan costs 878 866 Allowance for loan losses (2,832 ) (2,806 ) Total loans, net $ 331,771 $ 318,616 Changes in the allowance for loan losses (“ALL”) for the three and six months ended June 30, 2019 and 2018 (unaudited) by portfolio segment are summarized as follows (in thousands): CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2017 $ 367 $ 30 $ 169 $ 303 $ 1,629 $ 70 $ 11 $ 224 $ 2,803 Provision for loan losses 8 (1 ) (20 ) 24 153 3 1 (128 ) 40 Charge-offs — — — — — — — — — Recoveries — — — — — — 1 — 1 Balance, March 31, 2018 375 29 149 327 1,782 73 13 96 2,844 Provision for loan losses 87 (5 ) 18 22 (218 ) (7 ) (1 ) 134 30 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Balance, June 30, 2018 462 24 167 349 1,564 66 12 230 2,874 Balance, December 31, 2018 559 22 232 88 1,593 69 7 236 2,806 Provision for loan losses 84 (1 ) (12 ) 55 (8 ) (18 ) (2 ) (98 ) — Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Balance, March 31, 2019 643 21 220 143 1,585 51 5 138 2,806 Provision for loan losses 78 1 (4 ) (61 ) 143 3 3 (138 ) 25 Charge-offs — — — — — — — — — Recoveries — — — — — — 1 — 1 Balance, June 30, 2019 $ 721 $ 22 $ 216 $ 82 $ 1,728 $ 54 $ 9 $ — $ 2,832 As of June 30, 2019 (unaudited) and December 31, 2018, information about loans and the ALL by portfolio segment are summarized below (in thousands): CRE MF C+I ADL RES HELOC CON Unallocated Total June 30, 2019 Loan Balances Individually evaluated for impairment $ 113 $ — $ 1,203 $ — $ 312 $ — $ — $ — $ 1,628 Collectively evaluated for impairment 68,397 4,839 20,417 15,400 209,558 11,123 2,363 — 332,097 Total $ 68,510 $ 4,839 $ 21,620 $ 15,400 $ 209,870 $ 11,123 $ 2,363 $ — $ 333,725 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 721 22 216 82 1,728 54 9 — 2,832 Total $ 721 $ 22 $ 216 $ 82 $ 1,728 $ 54 $ 9 $ — $ 2,832 December 31, 2018 Loan Balances Individually evaluated for impairment $ 244 $ — $ 1,267 $ — $ 68 $ — $ — $ — $ 1,579 Collectively evaluated for impairment 63,609 4,928 20,723 15,580 201,691 11,151 1,295 — 318,977 Total $ 63,853 $ 4,928 $ 21,990 $ 15,580 $ 201,759 $ 11,151 $ 1,295 $ — $ 320,556 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 559 22 232 88 1,593 69 7 236 2,806 Total $ 559 $ 22 $ 232 $ 88 $ 1,593 $ 69 $ 7 $ 236 $ 2,806 The following is an aged analysis of past due loans by portfolio segment as of June 30, 2019 (unaudited) (in thousands): 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ — $ — $ — $ — $ 68,510 $ 68,510 $ — MF — — — — 4,839 4,839 — C+I — — — — 21,620 21,620 — ADL — — — — 15,400 15,400 — RES 97 — 312 409 209,461 209,870 312 HELOC — — — — 11,123 11,123 — CON 17 — — 17 2,346 2,363 — $ 114 $ — $ 312 $ 426 $ 333,299 $ 333,725 $ 312 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2018 (in thousands): 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ 93 $ — $ — $ 93 $ 63,760 $ 63,853 $ — MF — — — — 4,928 4,928 — C+I — — — — 21,990 21,990 — ADL — — — — 15,580 15,580 — RES 256 — 68 324 201,435 201,759 68 HELOC 99 — — 99 11,052 11,151 — CON — — — — 1,295 1,295 — $ 448 $ — $ 68 $ 516 $ 320,040 $ 320,556 $ 68 There were no loans collateralized by residential real estate property in the process of foreclosure at June 30, 2019 (unaudited) and December 31, 2018. The following table provides information on impaired loans as of June 30, 2019 (unaudited) and December 31, 2018 (in thousands): Recorded Unpaid Related Average Interest June 30, 2019 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 312 312 — 363 11 HELOC — — — — — CON — — — — — Total impaired loans $ 312 $ 312 $ — $ 363 $ 11 December 31, 2018 With no related allowance recorded: CRE $ — $ — $ — $ 112 $ — MF — — — — — C+I — — — — — ADL — — — 470 — RES 68 68 — 34 3 HELOC — — — — — CON — — — — — Total impaired loans $ 68 $ 68 $ — $ 616 $ 3 Credit Quality Information The Bank utilizes a ten-grade 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 its commercial and industrial, commercial real estate, 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 its applicable residential real estate and home equity loans if they have become classified as non-accrual. loan-to-value The following presents the internal risk rating of loans by portfolio segment as of June 30, 2019 (unaudited) (in thousands): Pass Special Substandard Total CRE $ 67,677 $ 720 $ 113 $ 68,510 MF 4,839 — — 4,839 C+I 17,974 2,443 1,203 21,620 ADL 15,400 — — 15,400 RES 209,558 — 312 209,870 HELOC 11,123 — — 11,123 CON 2,363 — — 2,363 Total $ 328,934 $ 3,163 $ 1,628 $ 333,725 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2018 (in thousands): Pass Special Substandard Total CRE $ 62,873 $ 736 $ 244 $ 63,853 MF 4,928 — — 4,928 C+I 20,700 23 1,267 21,990 ADL 15,580 — — 15,580 RES 201,435 256 68 201,759 HELOC 11,151 — — 11,151 CON 1,295 — — 1,295 Total $ 317,962 $ 1,015 $ 1,579 $ 320,556 Certain directors and executive officers of the Bank and companies in which they have significant ownership interests were customers of the Bank. Loans outstanding at June 30, 2019 (unaudited) and December 31, 2018 were $5,236 and $5,458, respectively (in thousands). |
Loan Servicing
Loan Servicing | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | 4. Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $48.3 million and $49.2 million at June 30, 2019 (unaudited) and December 31, 2018, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse 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 $(20) and $4 (in thousands) for the three months ended June 30, 2019 and 2018 (unaudited), respectively and $(25) and $74 (in thousands) for the six months ended June 30, 2019 and 2018 (unaudited), respectively. Servicing fee (loss) income is recorded in loan servicing fee (loss) income in the Bank’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 three and six months ended June 30, 2019 and 2018 (unaudited) (in thousands): 2019 2018 Balance, January 1 $ 479 $ 473 Change in fair value due to change in assumptions (35 ) 38 Balance, March 31 444 511 Change in fair value due to change in assumptions (50 ) (29 ) Balance, June 30 $ 394 $ 482 Fair value at June 30, 2019 (unaudited) was determined using a discount rate of 9.50%, prepayment speed of 12.89% and a weighted average default rate of 2.68%. Fair value at June 30, 2018 (unaudited) was determined using a discount rate of 9.50%, prepayment speed of 8.32% and a weighted average default rate of 2.71%. Mortgage servicing rights are included in other assets on the accompanying consolidated balance sheets. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Deposits | 5. Deposits Deposits consisted of the following at June 30, 2019 (unaudited) and December 31, 2018 (in thousands): June 30, December 31, NOW and demand deposits $ 109,996 $ 109,580 Money market deposits 58,927 60,952 Regular and other savings deposits 39,932 41,294 Time deposits of $250,000 and greater 15,234 13,325 Time deposits less than $250,000 59,815 49,295 $ 283,904 $ 274,446 At June 30, 2019 (unaudited), the scheduled maturities of time deposits were as follows (in thousands): 2019 $ 43,350 2020 24,401 2021 5,120 2022 1,819 2023 359 $ 75,049 There were $10.1 million and $-0- |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 6. Borrowings Federal Home Loan Bank (FHLB A summary of borrowings from the FHLB is as follows (dollars in thousands): June 30, 2019 (unaudited) Principal Amounts Maturity Dates Interest Rates $38,750 2019 2.32 2.55 15,000 2020 2.15 2.19 2,262 2022 0.00 0.00 $56,012 December 31, 2018 Principal Amounts Maturity Dates Interest Rates $73,475 2019 2.54 2.68 2,262 2022 0.00 0.00 $75,737 All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans and certain U.S. government sponsored mortgage-backed securities in an aggregate amount equal to outstanding advances. The Bank’s unused remaining available borrowing capacity at the FHLB was approximately $88.5 million and $72.1 million at June 30, 2019 (unaudited) and December 31, 2018, respectively. At June 30, 2019 (unaudited) and December 31, 2018, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. The Bank has an overnight line of credit with the FHLB that may be drawn up to $3.0 million. Additionally, the Bank has 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 June 30, 2019 (unaudited). |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 7. Employee Benefits 401(k) Plan During the year ended December 31, 2018, the Bank sponsored two 401(k) defined contribution plans for substantially all employees pursuant to which employees of the Bank could elect to make contributions to the plans subject to Internal Revenue Service limits. The Bank also made matching and profit-sharing contributions to eligible participants in accordance with the plans’ provisions. As of December 31, 2018, these plans were combined into one defined contribution plan. The Bank’s contributions for the three months ended June 30, 2019 and 2018 (unaudited) were $45 and $32 (in thousands), respectively, and $79 and $64 (in thousands) for the six months ended June 30, 2019 and 2018 (unaudited), respectively. Pension Plan The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified Employee Retirement Income Security Act of 1974 The funded status (fair value of plan assets divided by funding target) as of July 1, 2018 is as follows: 2018 Valuation Report 91.32 %(1) (1) Fair value of plan assets reflects any contributions received through June 30, 2018. Based upon the funded status of the Pentegra DB Plan as of July 1, 2018, no funding improvement plan or rehabilitation plan has been implemented or is pending as of June 30, 2019 (unaudited). Total pension plan expense for the three months ended June 30, 2019 and 2018 (unaudited) was $86 and $102 (in thousands), respectively, and $173 and $204 (in thousands) for the six months ended June 30, 2019 and 2018 (unaudited), respectively, and is included in salaries and employee benefits expense in the accompanying consolidated financial statements. The Bank did not pay a surcharge to the Pentegra DB Plan during the three or six months ended June 30, 2019 (unaudited). The Bank 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 Bank maintained a “soft freeze” status that continued service-related accruals for its active participants with no new participants permitted into the Pentegra DB Plan. The Bank estimates a contribution amount of approximately $346 (in thousands) for the year ending December 31, 2019. Supplemental Executive Retirement Plans Salary Continuation Plan The Bank maintains a nonqualified supplemental retirement plan for its current 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 June 30, 2019 (unaudited) and December 31, 2018 relating to this supplemental retirement plan was $536 and $565 (in thousands), respectively. The discount rate used to determine the Bank’s obligation was 5.00%. The projected rate of salary increase for its current President was 5%. The expense of this salary retirement plan was $23 and $1 (in thousands) for the three months ended June 30, 2019 and 2018 (unaudited), respectively and $46 and $36 (in thousands) for the six months ended June 30, 2019 and 2018 (unaudited), respectively. The Bank maintained a nonqualified supplemental retirement plan for its former President. The plan was terminated in May 2018 with the balance paid out in full upon the former President’s retirement. The recorded liability at June 30, 2019 (unaudited) and December 31, 2018 relating to this supplemental retirement plan was $- 0 $-0- $-0- Executive Supplemental Retirement Plan The recorded liability at June 30, 2019 (unaudited) and December 31, 2018 relating to the supplemental retirement plan for the Bank’s former President was $207 (in thousands). The discount rate used to determine the Bank’s obligation was 6.25% at June 30, 2019 (unaudited) and December 31, 2018. Endorsement Method Split Dollar Plan The Bank has an endorsement method split dollar plan for a former President/Director. The recorded liability at June 30, 2019 (unaudited) and December 31, 2018 relating to this supplemental executive benefit agreement was $46 and $58 (in thousands), respectively. The expense of this supplemental plan was $(7) and $(5) (in thousands) for the three months ended June 30, 2019 and 2018 (unaudited), respectively and $(13) and $(10) (in thousands) for the six months ended June 30, 2019 and 2018 (unaudited), respectively. Deferred Directors Supplemental Retirement Plan The Bank has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Bank, 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 June 30, 2019 (unaudited) and December 31, 2018 relating to this plan was $549 and $562 (in thousands), respectively. The discount rate used to determine the Bank’s obligation was 6.25% at June 30, 2019 (unaudited) and December 31, 2018. Total supplemental retirement plan expense amounted to $19 and $14 (in thousands) for the three months ended June 30, 2019 and 2018 (unaudited), respectively and $51 and $28 (in thousands) for the six months ended June 30, 2019 and 2018 (unaudited), respectively. Additionally, the Bank has a deferred director’s fee plan which allows members of the board of directors to defer the receipt of fees that otherwise would be paid to them. At June 30, 2019 (unaudited) and December 31, 2018, the total deferred director’s fees amounted to $194 and $154 (in thousands), respectively. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Other Comprehensive Income Loss [Abstract] | |
Other Comprehensive Income (Loss) | 8. Other Comprehensive Income (Loss) The Bank reports certain items as “other comprehensive income (loss)” and reflects total comprehensive income in the consolidated financial statements for all periods containing elements of other comprehensive income (loss). A summary of the reclassification adjustments out of accumulated other comprehensive (loss) income for the six months ended June 30, 2019 and 2018 (unaudited) are as follows (in thousands): Reclassification Adjustment Three Months Three Months Affected Line Item in Statements of Income Losses on securities available for sale $ 2 $ — Securities losses, net Tax effect — — Provision for income taxes $ 2 $ — Net income Net amortization of premium on securities $ 14 $ 34 Interest and dividends on investments Tax effect (4 ) (9 ) Provision for income taxes $ 10 $ 25 Net income Six Months Six Months Losses on securities available for sale $ 10 $ — Securities losses, net Tax effect (2 ) — Provision for income taxes $ 8 $ — Net income Net amortization of premium on securities $ 40 $ 62 Interest and dividends on investments Tax effect (11 ) (17 ) Provision for income taxes $ 29 $ 45 Net income |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Regulatory Matters [Abstract] | |
Regulatory Matters | 9. 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). Management believes that, as of June 30, 2019 (unaudited) and December 31, 2018, the Bank met all capital adequacy requirements to which it is subject, including the capital conservation buffer, at those dates. As fully phased in on January 1, 2019, the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III Capital Rules”) require the Bank to maintain (i) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5 10.5 The following table presents actual and required capital ratios as of June 30, 2019 (unaudited) and December 31, 2018 for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of June 30, 2019 (unaudited) and December 31, 2018 based on the phase-in phased-in. Actual Minimum Minimum Capital Phased-In Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of June 30, 2019 Total Capital (to risk- weighted assets) $ 36,477 14.03 % $ 20,806 8.0 % $ 27,308 10.5 % Tier I Capital (to risk- weighted assets) 33,583 12.91 15,605 6.0 22,107 8.5 Tier I Capital (to average assets) 33,583 8.38 16,038 4.0 16,038 4.0 Common Equity Tier 1 (to risk-weighted assets) 33,583 12.91 11,703 4.5 18,025 7.0 Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of December 31, 2018 Total Capital (to risk-weighted assets) $ 36,044 14.41 % $ 20,011 8.0 % $ 25,012 10.0 % Tier I Capital (to risk-weighted assets) 33,192 13.27 15,008 6.0 20,009 8.0 Tier I Capital (to average assets) 33,192 8.68 15,296 4.0 19,118 5.0 Common Equity Tier 1 (to risk-weighted assets) 33,192 13.27 11,256 4.5 16,258 6.5 Actual Minimum Capital Phase-In Minimum Capital Phased-In Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of December 31, 2018 Total Capital (to risk- weighted assets) $ 36,044 14.41 % $ 24,701 9.875 % $ 26,264 10.5 % Tier I Capital (to risk- weighted assets) 33,192 13.27 19,698 7.875 21,261 8.5 Tier I Capital (to average assets) 33,192 8.68 15,296 4.000 15,296 4.0 Common Equity Tier 1 (to risk-weighted assets) 33,192 13.27 15,946 6.375 17,509 7.0 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Fair Values of Assets and Liabilities [Abstract] | |
Fair Values of Assets and Liabilities | 10. 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 Bank 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 Bank’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 Bank 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 Bank’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 Bank’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 herein. 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 Bank’s financial assets and financial liabilities carried at fair value for June 30, 2019 (unaudited) and December 31, 2018. There were no significant transfers between levels of the fair value hierarchy during the three or six months ended June 30, 2019 and 2018 (unaudited). 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 Mortgage Servicing Rights The following table summarizes financial assets measured at fair value on a recurring basis as of June 30, 2019 (unaudited) and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Total Level 1 Level 2 Level 3 June 30, 2019 Mortgage servicing rights $ 394 $ — $ — $ 394 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 19,754 — 19,754 — Mortgage-backed securities 1,350 — 1,350 — Municipal bonds 22,415 — 22,415 — $ 43,913 $ — $ 43,519 $ 394 Total Level 1 Level 2 Level 3 December 31, 2018 Mortgage servicing rights $ 479 $ — $ — $ 479 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 23,727 — 23,727 — Mortgage-backed securities 1,327 — 1,327 — Municipal bonds 14,389 — 14,389 — $ 39,922 $ — $ 39,443 $ 479 See Note 4, Loan Servicing, for a rollforward of our Level 3 item and related inputs and assumptions used to determine fair value at June 30, 2019 (unaudited). Certain financial assets and financial liabilities are measured at fair value on a non-recurring non-recurring 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 non-recurring There were no impaired loans that were remeasured and reported at fair value through either a charge off or a specific valuation allowance based upon the fair value of the underlying collateral or loans held for sale at June 30, 2019 (unaudited) and December 31, 2018. Non-Financial Non-Financial non-financial non-financial Non-financial non-recurring charge-off non-interest ASC Topic 825, “Financial Instruments,” non-recurring non-recurring 2016-01 Summary of Fair Values of Financial Instruments not Carried at Fair Value The estimated fair values, and related carrying or notional amounts, of the Bank’s financial instruments at June 30, 2019 (unaudited) and December 31, 2018 are as follows: Carrying Fair Level 1 Level 2 Level 3 (in thousands) June 30, 2019 Financial Assets: Cash and due from banks $ 10,648 $ 10,648 $ 10,648 $ — $ — Interest-bearing time deposits with other banks 4,722 4,722 — 4,722 — Federal Home Loan Bank stock 2,468 2,468 — 2,468 — Bank-owned life insurance 4,215 4,215 — 4,215 — Loans, net 331,771 324,355 — — 324,355 Accrued interest receivable 1,248 1,248 1,248 — — Financial Liabilities: Deposits $ 283,904 $ 283,871 $ 218,912 $ 64,959 $ — Advances from Federal Home Loan Bank 56,012 55,899 — 55,899 — Mortgagors’ tax escrow 819 819 — 819 — December 31, 2018 Financial Assets: Cash and due from banks $ 5,889 $ 5,889 $ 5,889 $ — $ — Interest-bearing time deposits with other banks 6,461 6,461 — 6,461 — Federal Home Loan Bank stock 3,718 3,718 — 3,718 — Bank-owned life insurance 4,156 4,156 — 4,156 — Loans, net 318,615 307,582 — — 307,582 Accrued interest receivable 1,164 1,164 1,164 — — Financial Liabilities: Deposits $ 274,446 $ 258,446 $ 196,481 $ 61,965 $ — Advances from Federal Home Loan Bank 75,737 75,541 — 75,541 — Mortgagors’ tax escrow 761 761 — 761 — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of Federal Savings Bank and Subsidiary (the “Bank”) were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q S-X. The accompanying consolidated financial statements include the accounts of the Bank and its wholly-owned subsidiary, FSB Service Corporation, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. On February 28, 2019, the Bank’s Board of Directors adopted a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan (the “Plan of Reorganization”). The stock offering that ended on June 18, 2019 was oversubscribed. Total stock subscriptions received at June 30, 2019 were $28.6 million. The Company sold a total of 2,676,740 shares of common stock, which includes 238,473 shares sold to the First Seacoast Bank Employee Stock Ownership Plan, at a price of $10.00 per share. The total offering value and number of shares of common stock determined based upon an independent appraiser’s valuation. In addition, as part of the reorganization, the Company issued 3,345,925 shares of common stock to First Seacoast Bancorp, MHC (the “MHC”), the Bank’s proposed parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc., a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. A total of 6,083,500 shares of common stock of the Company are issued and outstanding |
Accounting Standards Adopted in 2019 | Accounting Standards Adopted in 2019 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. Accordingly, following the completion of the transactions contemplated by the Plan of Reorganization, 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. As of June 30, 2019, there is no significant difference in the comparability of the Bank’s consolidated financial statements as a result of this extended transition period. 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; (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 May 2014, the Financial Accounting Standards Board (“FASB”) issued amendments to Accounting Standards Codification (“ASC”) section 606, “Revenue from Contracts with Customers,” 2014-09, “Revenue from Contracts with Customers.” 2015-14, “Revenue from Contracts with Customers (Topic 606).” 2015-14 2014-09 non-public The Bank adopted this ASU as of January 1, 2019 utilizing the modified retrospective approach with no cumulative effect adjustment to opening equity capital deemed to be necessary. Our revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, non-interest 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, investment securities, as well as revenue related to our mortgage servicing activities. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our consolidated statements of income as components of non-interest 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. Assets under management totaled approximately $43.3 million and $39.1 million at June 30, 2019 (unaudited) and December 31, 2018, respectively. Our wealth management group, FSB Wealth Management, assists individuals and families in building and preserving their wealth by providing investment services. The investment management group manages portfolios utilizing a variety of investment products. This group also provides a full-service brokerage offering equities, mutual funds, life insurance, and annuity products. In January 2016 the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): 1. Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. 2. Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. 3. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. 4. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 5. Require an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. 6. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. 7. Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments of this ASU were adopted on January 1, 2019 and did not materially impact the Bank’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” non-public In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” beginning-of-period end-of-period non-public In March 2017, the FASB issued ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” non-public |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).” non-public 2018-10, Codification Improvements to Topic 842, Leases,” 2016-02 2018-11, Leases (Topic 842) – Targeted Improvements,” In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” available-for-sale held-to-maturity available-for-sale 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” 2019-05, “Financial Instruments—Credit Losses, Topic 326.” 2016-13 2016-13 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20).” non-public |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale (Detail) | The amortized cost and fair value of securities available-for-sale, June 30, 2019 Amortized Gross Gross Fair Value U.S. Government-sponsored enterprises obligations $ 19,726 $ 48 $ (20 ) $ 19,754 Residential mortgage backed securities 1,360 — (10 ) 1,350 Municipal bonds 21,854 568 (7 ) 22,415 $ 42,940 $ 616 $ (37 ) $ 43,519 December 31, 2018 Amortized Gross Gross Fair Value U.S. Government-sponsored enterprises obligations $ 24,219 $ 8 $ (500 ) $ 23,727 Residential mortgage backed securities 1,374 — (47 ) 1,327 Municipal bonds 14,490 39 (140 ) 14,389 $ 40,083 $ 47 $ (687 ) $ 39,443 |
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 Amortized Fair Value June 30, 2019 Due after one year through five years $ 12,252 $ 12,239 Due after five years through ten years 8,486 8,563 Due after ten years 20,842 21,367 Total U.S. Government-sponsored enterprises obligations and 41,580 42,169 Mortgage-backed securities 1,360 1,350 $ 42,940 $ 43,519 |
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 June 30, 2019 (unaudited) and December 31, 2018 (dollars in thousands): Less than 12 Months More than 12 Months Total Number of Fair Unrealized Number of Fair Unrealized Fair Unrealized June 30, 2019 U.S. Government -sponsored enterprises obligation — $ — $ — 3 $ 4,980 $ (20 ) $ 4,980 $ (20 ) Residential mortgage backed securities — — — 1 1,350 (10 ) 1,350 (10 ) Municipal bonds 2 608 (4 ) 1 526 (3 ) 1,134 (7 ) 2 $ 608 $ (4 ) 5 $ 6,856 $ (33 ) $ 7,464 $ (37 ) December 31, 2018 U.S. Government -sponsored enterprises obligation 4 $ 4,937 $ (32 ) 15 $ 16,781 $ (468 ) $ 21,718 $ (500 ) Residential mortgage backed securities 1 1,327 (47 ) — — — 1,327 (47 ) Municipal bonds 13 6,014 (63 ) 9 4,051 (77 ) 10,065 (140 ) 18 $ 12,278 $ (142 ) 24 $ 20,832 $ (545 ) $ 33,110 $ (687 ) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consisted of the following at June 30, 2019 (unaudited) and December 31, 2018 (in thousands): June 30, December 31, Commercial real estate (CRE) $ 68,510 $ 63,853 Multifamily (MF) 4,839 4,928 Commercial and industrial (C+I) 21,620 21,990 Acquisition, development, and land (ADL) 15,400 15,580 1-4 209,870 201,759 Home equity line of credit (HELOC) 11,123 11,151 Consumer (CON) 2,363 1,295 Total loans 333,725 320,556 Net deferred loan costs 878 866 Allowance for loan losses (2,832 ) (2,806 ) Total loans, net $ 331,771 $ 318,616 |
Schedule Of Allowance For Loans And Leases Receivable Classification | Changes in the allowance for loan losses (“ALL”) for the three and six months ended June 30, 2019 and 2018 (unaudited) by portfolio segment are summarized as follows (in thousands): CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2017 $ 367 $ 30 $ 169 $ 303 $ 1,629 $ 70 $ 11 $ 224 $ 2,803 Provision for loan losses 8 (1 ) (20 ) 24 153 3 1 (128 ) 40 Charge-offs — — — — — — — — — Recoveries — — — — — — 1 — 1 Balance, March 31, 2018 375 29 149 327 1,782 73 13 96 2,844 Provision for loan losses 87 (5 ) 18 22 (218 ) (7 ) (1 ) 134 30 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Balance, June 30, 2018 462 24 167 349 1,564 66 12 230 2,874 Balance, December 31, 2018 559 22 232 88 1,593 69 7 236 2,806 Provision for loan losses 84 (1 ) (12 ) 55 (8 ) (18 ) (2 ) (98 ) — Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Balance, March 31, 2019 643 21 220 143 1,585 51 5 138 2,806 Provision for loan losses 78 1 (4 ) (61 ) 143 3 3 (138 ) 25 Charge-offs — — — — — — — — — Recoveries — — — — — — 1 — 1 Balance, June 30, 2019 $ 721 $ 22 $ 216 $ 82 $ 1,728 $ 54 $ 9 $ — $ 2,832 As of June 30, 2019 (unaudited) and December 31, 2018, information about loans and the ALL by portfolio segment are summarized below (in thousands): CRE MF C+I ADL RES HELOC CON Unallocated Total June 30, 2019 Loan Balances Individually evaluated for impairment $ 113 $ — $ 1,203 $ — $ 312 $ — $ — $ — $ 1,628 Collectively evaluated for impairment 68,397 4,839 20,417 15,400 209,558 11,123 2,363 — 332,097 Total $ 68,510 $ 4,839 $ 21,620 $ 15,400 $ 209,870 $ 11,123 $ 2,363 $ — $ 333,725 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 721 22 216 82 1,728 54 9 — 2,832 Total $ 721 $ 22 $ 216 $ 82 $ 1,728 $ 54 $ 9 $ — $ 2,832 December 31, 2018 Loan Balances Individually evaluated for impairment $ 244 $ — $ 1,267 $ — $ 68 $ — $ — $ — $ 1,579 Collectively evaluated for impairment 63,609 4,928 20,723 15,580 201,691 11,151 1,295 — 318,977 Total $ 63,853 $ 4,928 $ 21,990 $ 15,580 $ 201,759 $ 11,151 $ 1,295 $ — $ 320,556 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 559 22 232 88 1,593 69 7 236 2,806 Total $ 559 $ 22 $ 232 $ 88 $ 1,593 $ 69 $ 7 $ 236 $ 2,806 |
Past Due Financing Receivables | The following is an aged analysis of past due loans by portfolio segment as of June 30, 2019 (unaudited) (in thousands): 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ — $ — $ — $ — $ 68,510 $ 68,510 $ — MF — — — — 4,839 4,839 — C+I — — — — 21,620 21,620 — ADL — — — — 15,400 15,400 — RES 97 — 312 409 209,461 209,870 312 HELOC — — — — 11,123 11,123 — CON 17 — — 17 2,346 2,363 — $ 114 $ — $ 312 $ 426 $ 333,299 $ 333,725 $ 312 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2018 (in thousands): 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ 93 $ — $ — $ 93 $ 63,760 $ 63,853 $ — MF — — — — 4,928 4,928 — C+I — — — — 21,990 21,990 — ADL — — — — 15,580 15,580 — RES 256 — 68 324 201,435 201,759 68 HELOC 99 — — 99 11,052 11,151 — CON — — — — 1,295 1,295 — $ 448 $ — $ 68 $ 516 $ 320,040 $ 320,556 $ 68 |
Impaired Financing Receivables | The following table provides information on impaired loans as of June 30, 2019 (unaudited) and December 31, 2018 (in thousands): Recorded Unpaid Related Average Interest June 30, 2019 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 312 312 — 363 11 HELOC — — — — — CON — — — — — Total impaired loans $ 312 $ 312 $ — $ 363 $ 11 December 31, 2018 With no related allowance recorded: CRE $ — $ — $ — $ 112 $ — MF — — — — — C+I — — — — — ADL — — — 470 — RES 68 68 — 34 3 HELOC — — — — — CON — — — — — Total impaired loans $ 68 $ 68 $ — $ 616 $ 3 |
Financing Receivble Credit Quality Indicators | The following presents the internal risk rating of loans by portfolio segment as of June 30, 2019 (unaudited) (in thousands): Pass Special Substandard Total CRE $ 67,677 $ 720 $ 113 $ 68,510 MF 4,839 — — 4,839 C+I 17,974 2,443 1,203 21,620 ADL 15,400 — — 15,400 RES 209,558 — 312 209,870 HELOC 11,123 — — 11,123 CON 2,363 — — 2,363 Total $ 328,934 $ 3,163 $ 1,628 $ 333,725 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2018 (in thousands): Pass Special Substandard Total CRE $ 62,873 $ 736 $ 244 $ 63,853 MF 4,928 — — 4,928 C+I 20,700 23 1,267 21,990 ADL 15,580 — — 15,580 RES 201,435 256 68 201,759 HELOC 11,151 — — 11,151 CON 1,295 — — 1,295 Total $ 317,962 $ 1,015 $ 1,579 $ 320,556 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following summarizes activity in mortgage servicing rights for the three and six months ended June 30, 2019 and 2018 (unaudited) (in thousands): 2019 2018 Balance, January 1 $ 479 $ 473 Change in fair value due to change in assumptions (35 ) 38 Balance, March 31 444 511 Change in fair value due to change in assumptions (50 ) (29 ) Balance, June 30 $ 394 $ 482 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Deposit Liabilities | Deposits consisted of the following at June 30, 2019 (unaudited) and December 31, 2018 (in thousands): June 30, December 31, NOW and demand deposits $ 109,996 $ 109,580 Money market deposits 58,927 60,952 Regular and other savings deposits 39,932 41,294 Time deposits of $250,000 and greater 15,234 13,325 Time deposits less than $250,000 59,815 49,295 $ 283,904 $ 274,446 |
Maturities of Time Deposits | At June 30, 2019 (unaudited), the scheduled maturities of time deposits were as follows (in thousands): 2019 $ 43,350 2020 24,401 2021 5,120 2022 1,819 2023 359 $ 75,049 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | A summary of borrowings from the FHLB is as follows (dollars in thousands): June 30, 2019 (unaudited) Principal Amounts Maturity Dates Interest Rates $38,750 2019 2.32 2.55 15,000 2020 2.15 2.19 2,262 2022 0.00 0.00 $56,012 December 31, 2018 Principal Amounts Maturity Dates Interest Rates $73,475 2019 2.54 2.68 2,262 2022 0.00 0.00 $75,737 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Funded Status Valuation Report Percentage | The funded status (fair value of plan assets divided by funding target) as of July 1, 2018 is as follows: 2018 Valuation Report 91.32 %(1) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Other Comprehensive Income Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | A summary of the reclassification adjustments out of accumulated other comprehensive (loss) income for the six months ended June 30, 2019 and 2018 (unaudited) are as follows (in thousands): Reclassification Adjustment Three Months Three Months Affected Line Item in Statements of Income Losses on securities available for sale $ 2 $ — Securities losses, net Tax effect — — Provision for income taxes $ 2 $ — Net income Net amortization of premium on securities $ 14 $ 34 Interest and dividends on investments Tax effect (4 ) (9 ) Provision for income taxes $ 10 $ 25 Net income Six Months Six Months Losses on securities available for sale $ 10 $ — Securities losses, net Tax effect (2 ) — Provision for income taxes $ 8 $ — Net income Net amortization of premium on securities $ 40 $ 62 Interest and dividends on investments Tax effect (11 ) (17 ) Provision for income taxes $ 29 $ 45 Net income |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Regulatory Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | 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. Actual Minimum Minimum Capital Phased-In Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of June 30, 2019 Total Capital (to risk- weighted assets) $ 36,477 14.03 % $ 20,806 8.0 % $ 27,308 10.5 % Tier I Capital (to risk- weighted assets) 33,583 12.91 15,605 6.0 22,107 8.5 Tier I Capital (to average assets) 33,583 8.38 16,038 4.0 16,038 4.0 Common Equity Tier 1 (to risk-weighted assets) 33,583 12.91 11,703 4.5 18,025 7.0 Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of December 31, 2018 Total Capital (to risk-weighted assets) $ 36,044 14.41 % $ 20,011 8.0 % $ 25,012 10.0 % Tier I Capital (to risk-weighted assets) 33,192 13.27 15,008 6.0 20,009 8.0 Tier I Capital (to average assets) 33,192 8.68 15,296 4.0 19,118 5.0 Common Equity Tier 1 (to risk-weighted assets) 33,192 13.27 11,256 4.5 16,258 6.5 Actual Minimum Capital Phase-In Minimum Capital Phased-In Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of December 31, 2018 Total Capital (to risk- weighted assets) $ 36,044 14.41 % $ 24,701 9.875 % $ 26,264 10.5 % Tier I Capital (to risk- weighted assets) 33,192 13.27 19,698 7.875 21,261 8.5 Tier I Capital (to average assets) 33,192 8.68 15,296 4.000 15,296 4.0 Common Equity Tier 1 (to risk-weighted assets) 33,192 13.27 15,946 6.375 17,509 7.0 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Fair Values of Assets and Liabilities [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table summarizes financial assets measured at fair value on a recurring basis as of June 30, 2019 (unaudited) and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Total Level 1 Level 2 Level 3 June 30, 2019 Mortgage servicing rights $ 394 $ — $ — $ 394 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 19,754 — 19,754 — Mortgage-backed securities 1,350 — 1,350 — Municipal bonds 22,415 — 22,415 — $ 43,913 $ — $ 43,519 $ 394 Total Level 1 Level 2 Level 3 December 31, 2018 Mortgage servicing rights $ 479 $ — $ — $ 479 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 23,727 — 23,727 — Mortgage-backed securities 1,327 — 1,327 — Municipal bonds 14,389 — 14,389 — $ 39,922 $ — $ 39,443 $ 479 |
Fair Value Measurements, Recurring and Nonrecurring | The estimated fair values, and related carrying or notional amounts, of the Bank’s financial instruments at June 30, 2019 (unaudited) and December 31, 2018 are as follows: Carrying Fair Level 1 Level 2 Level 3 (in thousands) June 30, 2019 Financial Assets: Cash and due from banks $ 10,648 $ 10,648 $ 10,648 $ — $ — Interest-bearing time deposits with other banks 4,722 4,722 — 4,722 — Federal Home Loan Bank stock 2,468 2,468 — 2,468 — Bank-owned life insurance 4,215 4,215 — 4,215 — Loans, net 331,771 324,355 — — 324,355 Accrued interest receivable 1,248 1,248 1,248 — — Financial Liabilities: Deposits $ 283,904 $ 283,871 $ 218,912 $ 64,959 $ — Advances from Federal Home Loan Bank 56,012 55,899 — 55,899 — Mortgagors’ tax escrow 819 819 — 819 — December 31, 2018 Financial Assets: Cash and due from banks $ 5,889 $ 5,889 $ 5,889 $ — $ — Interest-bearing time deposits with other banks 6,461 6,461 — 6,461 — Federal Home Loan Bank stock 3,718 3,718 — 3,718 — Bank-owned life insurance 4,156 4,156 — 4,156 — Loans, net 318,615 307,582 — — 307,582 Accrued interest receivable 1,164 1,164 1,164 — — Financial Liabilities: Deposits $ 274,446 $ 258,446 $ 196,481 $ 61,965 $ — Advances from Federal Home Loan Bank 75,737 75,541 — 75,541 — Mortgagors’ tax escrow 761 761 — 761 — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Jun. 30, 2019 | Jul. 17, 2019 | Dec. 31, 2018 | |
Employee stock ownership plan subscription percentage | 3.92% | |||
Percentage Of Common Stock Shares offered to eligible members | 44.00% | |||
Percentage Of Common Stock Shares offered to Charitable Foundation | 1.00% | |||
Equity Method Investment Ownership Percentage | 55.00% | |||
Assets Under Management | $ 43,300,000 | $ 39,100,000 | ||
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 or more; (ii) the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the company pursuant to an effective registration statement under the Securities Act of 1933; (iii) the date on which the issuer has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the issuer 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). | |||
Common Stock, Value, Subscriptions | $ 28,609,000 | |||
Common Stock, Shares, Issued | 2,676,740 | |||
Unearned ESOP Shares | $ 238,473 | |||
Common Stock, Par or Stated Value Per Share | $ 10 | |||
Plan of Reorganization, Description of Equity Securities Issued or to be Issued | In addition, as part of the reorganization, the Company issued 3,345,925 shares of common stock to First Seacoast Bancorp, MHC (the “MHC”), the Bank’s proposed parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc., a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. A total of 6,083,500 shares of common stock of the Company are issued and outstanding | |||
Deferred reorganization and stock issuance cost | $ 852,000 | |||
Public Float Value | $ 250,000,000 |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of amortized cost and fair value of securities available-for-sale (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | $ 42,940 | $ 40,083 |
Gross Unrealized Gains | 616 | 47 |
Gross Unrealized Losses | (37) | (687) |
Fair Value | 43,519 | 39,443 |
U.S. Government-sponsored enterprises obligations [Member] | ||
Amortized Cost | 19,726 | 24,219 |
Gross Unrealized Gains | 48 | 8 |
Gross Unrealized Losses | (20) | (500) |
Fair Value | 19,754 | 23,727 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | 1,360 | 1,374 |
Gross Unrealized Losses | (10) | (47) |
Fair Value | 1,350 | 1,327 |
Municipal bonds [Member] | ||
Amortized Cost | 21,854 | 14,490 |
Gross Unrealized Gains | 568 | 39 |
Gross Unrealized Losses | (7) | (140) |
Fair Value | $ 22,415 | $ 14,389 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Due after one year through five years, Amortized Cost | $ 12,252 | |
Due after five years through ten years, Amortized Cost | 8,486 | |
Due after ten years, Amortized Cost | 20,842 | |
Total U.S. Government-sponsored enterprises obligations and municipal bonds, Amortized Cost | 41,580 | |
Mortgage-backed securities, Amortized Cost | 42,940 | $ 40,083 |
Due after one year through five years, Fair Value | 12,239 | |
Due after five years through ten years, Fair Value | 8,563 | |
Due after ten years, Fair Value | 21,367 | |
Total U.S. Government-sponsored enterprises obligations and municipal bonds, Fair Value | 42,169 | |
Mortgage-backed securities, Fair Value | 43,519 | 39,443 |
Residential mortgage backed securities | ||
Mortgage-backed securities, Amortized Cost | 1,360 | 1,374 |
Mortgage-backed securities, Fair Value | $ 1,350 | $ 1,327 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Summary of gross unrealized losses and fair value for those investments with unrealized losses (Detail) $ in Thousands | Jun. 30, 2019USD ($)Number | Dec. 31, 2018USD ($)Number |
Less than 12 Months, Number of Securities | Number | 2 | 18 |
Less than 12 Months, Fair Value | $ 608 | $ 12,278 |
Less than 12 Months, Unrealized Losses | $ (4) | $ (142) |
More than 12 Months, Number of Securities | Number | 5 | 24 |
More than 12 Months, Fair Value | $ 6,856 | $ 20,832 |
More than 12 Months, Unrealized Losses | (33) | (545) |
Total, Fair Value | 7,464 | 33,110 |
Total, Unrealized Losses | $ (37) | $ (687) |
U.S. Government-sponsored enterprises obligation | ||
Less than 12 Months, Number of Securities | Number | 4 | |
Less than 12 Months, Fair Value | $ 4,937 | |
Less than 12 Months, Unrealized Losses | $ (32) | |
More than 12 Months, Number of Securities | Number | 3 | 15 |
More than 12 Months, Fair Value | $ 4,980 | $ 16,781 |
More than 12 Months, Unrealized Losses | (20) | (468) |
Total, Fair Value | 4,980 | 21,718 |
Total, Unrealized Losses | $ (20) | $ (500) |
Residential mortgage backed securities | ||
Less than 12 Months, Number of Securities | Number | 1 | |
Less than 12 Months, Fair Value | $ 1,327 | |
Less than 12 Months, Unrealized Losses | (47) | |
More than 12 Months, Number of Securities | Number | 1 | |
More than 12 Months, Fair Value | $ 1,350 | |
More than 12 Months, Unrealized Losses | (10) | |
Total, Fair Value | 1,350 | 1,327 |
Total, Unrealized Losses | $ (10) | $ (47) |
Municipal bonds | ||
Less than 12 Months, Number of Securities | Number | 2 | 13 |
Less than 12 Months, Fair Value | $ 608 | $ 6,014 |
Less than 12 Months, Unrealized Losses | $ (4) | $ (63) |
More than 12 Months, Number of Securities | Number | 1 | 9 |
More than 12 Months, Fair Value | $ 526 | $ 4,051 |
More than 12 Months, Unrealized Losses | (3) | (77) |
Total, Fair Value | 1,134 | 10,065 |
Total, Unrealized Losses | $ (7) | $ (140) |
Securities Available-for-Sale_4
Securities Available-for-Sale - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018 | |
Gross realized gains on securities available for sale | $ 7,000,000 | $ 0 | $ 10,000,000 | $ 0 | |
Gross realized losses on securities available for sale | 9,000,000 | 0 | 20,000,000 | 0 | |
Proceeds from realized gains and losses on sale of available for sale securities | $ 6,300 | $ 221,000,000 | $ 7,000 | $ 230,000,000 | |
Number of debt securities held | 0 | 0 | |||
US States and Political Subdivisions Debt Securities [Member] | Available-for-sale Securities [Member] | |||||
Concentration risk percentage of available for sale of securities | 10.00% | 10.00% |
Loans - Loans Consisted (Detail
Loans - Loans Consisted (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Total Loans | $ 333,725 | $ 320,556 | ||||
Net deferred loan costs | 878 | 866 | ||||
Allowance for loan losses | (2,832) | $ (2,806) | (2,806) | $ (2,874) | $ (2,844) | $ (2,803) |
Net loans | 331,771 | 318,616 | ||||
CRE [Member] | ||||||
Total Loans | 68,510 | 63,853 | ||||
Allowance for loan losses | (721) | (643) | (559) | (462) | (375) | (367) |
MF [Member] | ||||||
Total Loans | 4,839 | 4,928 | ||||
Allowance for loan losses | (22) | (21) | (22) | (24) | (29) | (30) |
C+I [Member] | ||||||
Total Loans | 21,620 | 21,990 | ||||
Allowance for loan losses | (216) | (220) | (232) | (167) | (149) | (169) |
ADL [Member] | ||||||
Total Loans | 15,400 | 15,580 | ||||
Allowance for loan losses | (82) | (143) | (88) | (349) | (327) | (303) |
RES [Member] | ||||||
Total Loans | 209,870 | 201,759 | ||||
Allowance for loan losses | (1,728) | (1,585) | (1,593) | (1,564) | (1,782) | (1,629) |
HELOC [Member] | ||||||
Total Loans | 11,123 | 11,151 | ||||
Allowance for loan losses | (54) | (51) | (69) | (66) | (73) | (70) |
CON [Member] | ||||||
Total Loans | 2,363 | 1,295 | ||||
Allowance for loan losses | $ (9) | $ (5) | $ (7) | $ (12) | $ (13) | $ (11) |
Loans - Transactions In The All
Loans - Transactions In The Allowance For Loan Losses ("ALL") (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Balance | $ 2,806 | $ 2,806 | $ 2,844 | $ 2,803 | $ 2,806 | $ 2,803 |
Provision for loan losses | 25 | 30 | 40 | 25 | 70 | |
Recoveries | 1 | 1 | ||||
Balance | 2,832 | 2,806 | 2,874 | 2,844 | 2,832 | 2,874 |
CRE [Member] | ||||||
Balance | 643 | 559 | 375 | 367 | 559 | 367 |
Provision for loan losses | 78 | 84 | 87 | 8 | ||
Balance | 721 | 643 | 462 | 375 | 721 | 462 |
MF [Member] | ||||||
Balance | 21 | 22 | 29 | 30 | 22 | 30 |
Provision for loan losses | 1 | (1) | (5) | (1) | ||
Balance | 22 | 21 | 24 | 29 | 22 | 24 |
C+I [Member] | ||||||
Balance | 220 | 232 | 149 | 169 | 232 | 169 |
Provision for loan losses | (4) | (12) | 18 | (20) | ||
Balance | 216 | 220 | 167 | 149 | 216 | 167 |
ADL [Member] | ||||||
Balance | 143 | 88 | 327 | 303 | 88 | 303 |
Provision for loan losses | (61) | 55 | 22 | 24 | ||
Balance | 82 | 143 | 349 | 327 | 82 | 349 |
RES [Member] | ||||||
Balance | 1,585 | 1,593 | 1,782 | 1,629 | 1,593 | 1,629 |
Provision for loan losses | 143 | (8) | (218) | 153 | ||
Balance | 1,728 | 1,585 | 1,564 | 1,782 | 1,728 | 1,564 |
HELOC [Member] | ||||||
Balance | 51 | 69 | 73 | 70 | 69 | 70 |
Provision for loan losses | 3 | (18) | (7) | 3 | ||
Balance | 54 | 51 | 66 | 73 | 54 | 66 |
CON [Member] | ||||||
Balance | 5 | 7 | 13 | 11 | 7 | 11 |
Provision for loan losses | 3 | (2) | (1) | 1 | ||
Recoveries | 1 | 1 | ||||
Balance | 9 | 5 | 12 | 13 | 9 | 12 |
Unallocated [Member] | ||||||
Balance | 138 | 236 | 96 | 224 | $ 236 | 224 |
Provision for loan losses | $ (138) | (98) | 134 | (128) | ||
Balance | $ 138 | $ 230 | $ 96 | $ 230 |
Loans - Information About Loans
Loans - Information About Loans And The ALL By Portfolio Segment Are Summarized (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Individually evaluated for impairment | $ 1,628 | $ 1,579 | ||||
Collectively evaluated for impairment | 332,097 | 318,977 | ||||
Total | 333,725 | 320,556 | ||||
Collectively evaluated for impairment | 2,832 | 2,806 | ||||
Total | 2,832 | $ 2,806 | 2,806 | $ 2,874 | $ 2,844 | $ 2,803 |
CRE [Member] | ||||||
Individually evaluated for impairment | 113 | 244 | ||||
Collectively evaluated for impairment | 68,397 | 63,609 | ||||
Total | 68,510 | 63,853 | ||||
Collectively evaluated for impairment | 721 | 559 | ||||
Total | 721 | 643 | 559 | 462 | 375 | 367 |
MF [Member] | ||||||
Collectively evaluated for impairment | 4,839 | 4,928 | ||||
Total | 4,839 | 4,928 | ||||
Collectively evaluated for impairment | 22 | 22 | ||||
Total | 22 | 21 | 22 | 24 | 29 | 30 |
C+I [Member] | ||||||
Individually evaluated for impairment | 1,203 | 1,267 | ||||
Collectively evaluated for impairment | 20,417 | 20,723 | ||||
Total | 21,620 | 21,990 | ||||
Collectively evaluated for impairment | 216 | 232 | ||||
Total | 216 | 220 | 232 | 167 | 149 | 169 |
ADL [Member] | ||||||
Collectively evaluated for impairment | 15,400 | 15,580 | ||||
Total | 15,400 | 15,580 | ||||
Collectively evaluated for impairment | 82 | 88 | ||||
Total | 82 | 143 | 88 | 349 | 327 | 303 |
RES [Member] | ||||||
Individually evaluated for impairment | 312 | 68 | ||||
Collectively evaluated for impairment | 209,558 | 201,691 | ||||
Total | 209,870 | 201,759 | ||||
Collectively evaluated for impairment | 1,728 | 1,593 | ||||
Total | 1,728 | 1,585 | 1,593 | 1,564 | 1,782 | 1,629 |
HELOC [Member] | ||||||
Collectively evaluated for impairment | 11,123 | 11,151 | ||||
Total | 11,123 | 11,151 | ||||
Collectively evaluated for impairment | 54 | 69 | ||||
Total | 54 | 51 | 69 | 66 | 73 | 70 |
CON [Member] | ||||||
Collectively evaluated for impairment | 2,363 | 1,295 | ||||
Total | 2,363 | 1,295 | ||||
Collectively evaluated for impairment | 9 | 7 | ||||
Total | $ 9 | 5 | 7 | 12 | 13 | 11 |
Unallocated [Member] | ||||||
Collectively evaluated for impairment | 236 | |||||
Total | $ 138 | $ 236 | $ 230 | $ 96 | $ 224 |
Loans - Analysis Of Past Due Lo
Loans - Analysis Of Past Due Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total Past Due | $ 426 | $ 516 |
Total Current | 333,299 | 320,040 |
Total Loans | 333,725 | 320,556 |
Non-Accrual Loans | 312 | 68 |
30-59 Days Past Due [Member] | ||
Total Past Due | 114 | 448 |
Greater than 90 Days [Member] | ||
Total Past Due | 312 | 68 |
CRE [Member] | ||
Total Past Due | 93 | |
Total Current | 68,510 | 63,760 |
Total Loans | 68,510 | 63,853 |
CRE [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 93 | |
MF [Member] | ||
Total Current | 4,839 | 4,928 |
Total Loans | 4,839 | 4,928 |
C+I [Member] | ||
Total Current | 21,620 | 21,990 |
Total Loans | 21,620 | 21,990 |
ADL [Member] | ||
Total Current | 15,400 | 15,580 |
Total Loans | 15,400 | 15,580 |
RES [Member] | ||
Total Past Due | 409 | 324 |
Total Current | 209,461 | 201,435 |
Total Loans | 209,870 | 201,759 |
Non-Accrual Loans | 312 | 68 |
RES [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 97 | 256 |
RES [Member] | Greater than 90 Days [Member] | ||
Total Past Due | 312 | 68 |
HELOC [Member] | ||
Total Past Due | 99 | |
Total Current | 11,123 | 11,052 |
Total Loans | 11,123 | 11,151 |
HELOC [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 99 | |
CON [Member] | ||
Total Past Due | 17 | |
Total Current | 2,346 | 1,295 |
Total Loans | 2,363 | $ 1,295 |
CON [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | $ 17 |
Loans - Provides Information On
Loans - Provides Information On Impaired Loans (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Recorded Carrying Value | $ 312 | $ 68 |
Unpaid Principal Balance | 312 | 68 |
Average Recorded Investment | 363 | 616 |
Interest Income Recognized | 11 | 3 |
CRE [Member] | ||
Average Recorded Investment | 112 | |
ADL [Member] | ||
Average Recorded Investment | 470 | |
RES [Member] | ||
Recorded Carrying Value | 312 | 68 |
Unpaid Principal Balance | 312 | 68 |
Average Recorded Investment | 363 | 34 |
Interest Income Recognized | $ 11 | $ 3 |
Loans - Internal Risk Rating Of
Loans - Internal Risk Rating Of Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total Loans | $ 333,725 | $ 320,556 |
Pass [Member] | ||
Total Loans | 328,934 | 317,962 |
Special Mention [Member] | ||
Total Loans | 3,163 | 1,015 |
Substandard [Member] | ||
Total Loans | 1,628 | 1,579 |
CRE [Member] | ||
Total Loans | 68,510 | 63,853 |
CRE [Member] | Pass [Member] | ||
Total Loans | 67,677 | 62,873 |
CRE [Member] | Special Mention [Member] | ||
Total Loans | 720 | 736 |
CRE [Member] | Substandard [Member] | ||
Total Loans | 113 | 244 |
MF [Member] | ||
Total Loans | 4,839 | 4,928 |
MF [Member] | Pass [Member] | ||
Total Loans | 4,839 | 4,928 |
C+I [Member] | ||
Total Loans | 21,620 | 21,990 |
C+I [Member] | Pass [Member] | ||
Total Loans | 17,974 | 20,700 |
C+I [Member] | Special Mention [Member] | ||
Total Loans | 2,443 | 23 |
C+I [Member] | Substandard [Member] | ||
Total Loans | 1,203 | 1,267 |
ADL [Member] | ||
Total Loans | 15,400 | 15,580 |
ADL [Member] | Pass [Member] | ||
Total Loans | 15,400 | 15,580 |
RES [Member] | ||
Total Loans | 209,870 | 201,759 |
RES [Member] | Pass [Member] | ||
Total Loans | 209,558 | 201,435 |
RES [Member] | Special Mention [Member] | ||
Total Loans | 256 | |
RES [Member] | Substandard [Member] | ||
Total Loans | 312 | 68 |
HELOC [Member] | ||
Total Loans | 11,123 | 11,151 |
HELOC [Member] | Pass [Member] | ||
Total Loans | 11,123 | 11,151 |
CON [Member] | ||
Total Loans | 2,363 | 1,295 |
CON [Member] | Pass [Member] | ||
Total Loans | $ 2,363 | $ 1,295 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans Outstanding | $ 5,236 | $ 5,458 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Transferred Financial Assets Principal Amount Outstanding | $ 48,300 | $ 48,300 | $ 49,200 | ||
Loan servicing fee income (loss) | $ (20) | $ 4 | $ (25) | $ 74 | |
Servicing Assets and Servicing Liabilities at Fair Value Discount Rate | 9.50% | 9.50% | |||
Servicing Assets and Servicing Liabilities at Fair Value prepayment speed | 12.89% | 8.32% | |||
Servicing Assets and Servicing Liabilities at Fair Value weighted average default rate | 2.68% | 2.71% |
Loan Servicing - Summary Of Act
Loan Servicing - Summary Of Activity In Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Balance, beginning of period | $ 444 | $ 479 | $ 511 | $ 473 |
Change in fair value due to change in assumptions | (50) | (35) | (29) | 38 |
Balance, end of period | $ 394 | $ 444 | $ 482 | $ 511 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
NOW and demand deposits | $ 109,996 | $ 109,580 |
Money market deposits | 58,927 | 60,952 |
Regular and other savings deposits | 39,932 | 41,294 |
Time deposits of $250,000 and greater | 15,234 | 13,325 |
Time deposits less than $250,000 | 59,815 | 49,295 |
Total deposits | $ 283,904 | $ 274,446 |
Deposits - Time Deposit Maturit
Deposits - Time Deposit Maturities (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
2019 | $ 43,350 |
2020 | 24,401 |
2021 | 5,120 |
2022 | 1,819 |
2023 | 359 |
Total | $ 75,049 |
Deposits - Additional informati
Deposits - Additional information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Time Deposits [Member] | ||
Brokered deposits | $ 10.1 | $ 0 |
Borrowings - Schedule Of Federa
Borrowings - Schedule Of Federal Home Loan Bank Advances By Branch Of FHLB Bank (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Principal Amounts | $ 56,012 | $ 75,737 |
Federal Home Loan Bank Advances One [Member] | ||
Principal Amounts | $ 38,750 | $ 73,475 |
Maturity Dates | 2019 | 2019 |
Federal Home Loan Bank Advances Two [Member] | ||
Principal Amounts | $ 15,000 | $ 2,262 |
Maturity Dates | 2020 | 2022 |
Federal Home Loan Bank Advances Three [Member] | ||
Principal Amounts | $ 2,262 | |
Maturity Dates | 2022 | |
Minimum [Member] | Federal Home Loan Bank Advances One [Member] | ||
Interest Rates | 2.32% | 2.54% |
Minimum [Member] | Federal Home Loan Bank Advances Two [Member] | ||
Interest Rates | 2.15% | 0.00% |
Minimum [Member] | Federal Home Loan Bank Advances Three [Member] | ||
Interest Rates | 0.00% | |
Maximum [Member] | Federal Home Loan Bank Advances One [Member] | ||
Interest Rates | 2.55% | 2.68% |
Maximum [Member] | Federal Home Loan Bank Advances Two [Member] | ||
Interest Rates | 2.19% | 0.00% |
Maximum [Member] | Federal Home Loan Bank Advances Three [Member] | ||
Interest Rates | 0.00% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Banks unused remaining borrowing capacity | $ 88.5 | $ 72.1 |
Federal home loan bank maximum borrowing capacity | 3 | |
Fed Funds borrowing [Member] | ||
Fed funds borrowing capacity | $ 5 |
Employee Benefits - fair value
Employee Benefits - fair value of plan assets divided by funding target (Detail) | Jul. 01, 2018 | |
Pension Plan [Member] | ||
Percentage of funding status | 91.32% | [1] |
[1] | Fair value of plan assets reflects any contributions received through June 30, 2018. |
Employee Benefits - Additional
Employee Benefits - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 45 | $ 32 | $ 79 | $ 64 | ||
Deferred Compensation Liability, Current and Noncurrent | 1,532 | 1,532 | $ 1,547 | |||
Scenario, Forecast [Member] | ||||||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | $ 346 | |||||
Pentegra DB Plan [Member] | ||||||
Pension Cost (Reversal of Cost) | 86 | $ 102 | 173 | $ 204 | ||
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Liability, Defined Benefit Plan | $ 536 | $ 536 | 565 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.00% | 5.00% | 5.00% | 5.00% | ||
Employee salary incremental percent | 5.00% | |||||
Defined Contribution Plan, Cost | $ 23 | $ 1 | $ 46 | $ 36 | ||
Salary Continuation Plan [Member] | Former Employee [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Pension Cost (Reversal of Cost) | 0 | 10 | 0 | 25 | ||
Liability, Defined Benefit Plan | 0 | 0 | $ 0 | |||
Executive Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Liability, Defined Benefit Plan | $ 207 | $ 207 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | 6.25% | |||
Endorsement Method Split Dollar Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Pension Cost (Reversal of Cost) | $ (7) | (5) | $ (13) | (10) | ||
Liability, Defined Benefit Plan | 46 | 46 | $ 58 | |||
Deferred Directors Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Liability, Defined Benefit Plan | $ 549 | $ 549 | $ 562 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | 6.25% | |||
Defined Contribution Plan, Cost | $ 19 | $ 14 | $ 51 | $ 28 | ||
Deferred Compensation Liability, Current and Noncurrent | $ 194 | $ 194 | $ 154 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of Other Comprehensive Income Loss [Abstract] | ||||
Losses on securities available for sale | $ 2 | $ 10 | ||
Tax effect | (2) | |||
Net income | 2 | 8 | ||
Net amortization of premium on securities | 14 | $ 34 | 40 | $ 62 |
Tax effect | (4) | (9) | (11) | (17) |
Net income | $ 10 | $ 25 | $ 29 | $ 45 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Capital Requirements (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Actual, Total Capital (to risk- weighted assets) | $ 36,477 | $ 36,044 | |
Actual, Tier I Capital (to risk- weighted assets) | 33,583 | 33,192 | |
Actual, Tier I Capital (to average assets) | 33,583 | 33,192 | |
Actual, Common Equity Tier 1 (to risk-weighted assets) | $ 33,583 | $ 33,192 | |
Actual Ratio, Total Capital (to risk- weighted assets) | 14.03% | 14.41% | |
Actual Ratio, Tier I Capital (to risk- weighted assets) | 12.91% | 13.27% | |
Actual Ratio, Tier I Capital (to average assets) | 8.38% | 8.68% | |
Actual Ratio, Common Equity Tier 1 (to risk-weighted assets) | 12.91% | 13.27% | |
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 20,806 | $ 20,011 | |
Minimum Capital Requirement, Tier I Capital (to risk-weighted assets) | 15,605 | 15,008 | |
Minimum Capital Requirement, Tier I Capital (to average assets) | 16,038 | 15,296 | |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 11,703 | $ 11,256 | |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 8.00% | 8.00% | 8.00% |
Minimum Capital Requirement Ratio, Tier I Capital (to risk-weighted assets) | 6.00% | 6.00% | 6.00% |
Minimum Capital Requirement Ratio, Tier I Capital (to average assets) | 4.00% | 4.00% | 4.00% |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 4.50% | 4.50% | 4.50% |
Minimum To Be Well Capitalized Under Prompt Corrective, Total Capital (to risk-weighted assets) | $ 25,012 | ||
Minimum To Be Well Capitalized Under Prompt Corrective, Tier I Capital (to risk-weighted assets) | 20,009 | ||
Minimum To Be Well Capitalized Under Prompt Corrective, Tier I Capital (to average assets) | 19,118 | ||
Minimum To Be Well Capitalized Under Prompt Corrective, Common Equity Tier 1 (to risk-weighted assets) | $ 16,258 | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Total Capital (to risk-weighted assets) | 10.00% | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Tier I Capital (to risk-weighted assets) | 8.00% | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Tier I Capital (to average assets) | 5.00% | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Common Equity Tier 1 (to risk-weighted assets) | 6.50% | ||
Fully Phased-In | |||
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 27,308 | $ 26,264 | |
Minimum Capital Requirement, Tier I Capital (to risk-weighted assets) | 22,107 | 21,261 | |
Minimum Capital Requirement, Tier I Capital (to average assets) | 16,038 | 15,296 | |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 18,025 | $ 17,509 | |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 10.50% | 10.50% | 10.50% |
Minimum Capital Requirement Ratio, Tier I Capital (to risk-weighted assets) | 8.50% | 8.50% | 8.50% |
Minimum Capital Requirement Ratio, Tier I Capital (to average assets) | 4.00% | 4.00% | |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 7.00% | 7.00% | 7.00% |
Basel III Phase-In Schedule | |||
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 24,701 | ||
Minimum Capital Requirement, Tier I Capital (to risk-weighted assets) | 19,698 | ||
Minimum Capital Requirement, Tier I Capital (to average assets) | 15,296 | ||
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 15,946 | ||
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 9.875% | ||
Minimum Capital Requirement Ratio, Tier I Capital (to risk-weighted assets) | 7.875% | ||
Minimum Capital Requirement Ratio, Tier I Capital (to average assets) | 4.00% | ||
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 6.375% |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Total Capital (to risk-weighted assets) | 8.00% | 8.00% | 8.00% |
Tier I Capital (to risk-weighted assets) | 6.00% | 6.00% | 6.00% |
Tier I Capital (to average assets) | 4.00% | 4.00% | 4.00% |
Common Equity Tier 1 (to risk-weighted assets) | 4.50% | 4.50% | 4.50% |
Capital Conservation Buffer Ratio | 2.50% | ||
Fully Phased In [Member] | |||
Total Capital (to risk-weighted assets) | 10.50% | 10.50% | 10.50% |
Tier I Capital (to risk-weighted assets) | 8.50% | 8.50% | 8.50% |
Tier I Capital (to average assets) | 4.00% | 4.00% | |
Common Equity Tier 1 (to risk-weighted assets) | 7.00% | 7.00% | 7.00% |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Fair Value, by Balance Sheet Grouping (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | $ 43,519 | $ 39,443 |
U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 19,754 | 23,727 |
Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 22,415 | 14,389 |
Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure | 43,913 | 39,922 |
Fair Value, Measurements, Recurring [Member] | U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 19,754 | 23,727 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 1,350 | 1,327 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 22,415 | 14,389 |
Fair Value, Measurements, Recurring [Member] | Mortgage servicing rights [member] | ||
Assets, Fair Value Disclosure | 394 | 479 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 43,519 | 39,443 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 19,754 | 23,727 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 1,350 | 1,327 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Debt Securities, Available-for-sale | 22,415 | 14,389 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 394 | 479 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage servicing rights [member] | ||
Assets, Fair Value Disclosure | $ 394 | $ 479 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Fair Value Measurements, Recurring and Nonrecurring (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Cash and due from banks | $ 10,648 | $ 5,889 |
Interest-bearing time deposits with other banks | 4,722 | 6,461 |
Federal Home Loan Bank stock | 2,468 | 3,718 |
Bank-owned life insurance | 4,215 | 4,156 |
Loans, net | 331,771 | 318,616 |
Accrued interest receivable | 1,248 | 1,164 |
Financial Liabilities: | ||
Deposits | 283,904 | 274,446 |
Advances from Federal Home Loan Bank | 56,012 | 75,737 |
Mortgagors' tax escrow | 819 | 761 |
Deposits [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 283,871 | 258,446 |
Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 218,912 | 196,481 |
Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 64,959 | 61,965 |
Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 55,899 | 75,541 |
Federal Home Loan Bank Borrowings [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 55,899 | 75,541 |
Mortgagors' tax escrow [member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 819 | 761 |
Mortgagors' tax escrow [member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 819 | 761 |
Cash and due from banks [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 10,648 | 5,889 |
Cash and due from banks [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 10,648 | 5,889 |
Interest-bearing time deposits with other banks [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 4,722 | 6,461 |
Interest-bearing time deposits with other banks [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 4,722 | 6,461 |
Federal Home Loan Bank stock [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 2,468 | 3,718 |
Federal Home Loan Bank stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 2,468 | 3,718 |
Bank-owned life insurance [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 4,215 | 4,156 |
Bank-owned life insurance [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 4,215 | 4,156 |
Loans, net [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 324,355 | 307,582 |
Loans, net [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 324,355 | 307,582 |
Accrued interest receivable [member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 1,248 | 1,164 |
Accrued interest receivable [member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | $ 1,248 | $ 1,164 |