Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 27, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | First Seacoast Bancorp | ||
Entity Central Index Key | 0001769267 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Address, State or Province | NH | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Small Business | true | ||
Trading Symbol | FSEA | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 6,083,500 | ||
Entity Public Float | $ 0 | ||
Entity Incorporation, State or Country Code | X1 | ||
Entity File Number | 001-38985 | ||
Entity Tax Identification Number | 84-2404519 | ||
Entity Address, Address Line One | 633 Central Avenue | ||
Entity Address, City or Town | Dover | ||
Entity Address, Postal Zip Code | 03820 | ||
City Area Code | 603 | ||
Local Phone Number | 742-4680 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | 1. Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Stockholders, scheduled to be held on May 28, 2020, are incorporated by reference into Part III of this report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 4,009 | $ 5,889 |
Interest bearing time deposits with other banks | 2,735 | 6,461 |
Securities available-for-sale, at fair value | 44,785 | 39,443 |
Federal Home Loan Bank stock | 2,971 | 3,718 |
Total Loans | 344,855 | 321,422 |
Less allowance for loan losses | (2,875) | (2,806) |
Net loans | 341,980 | 318,616 |
Land, building and equipment, net | 5,338 | 5,581 |
Bank-owned life insurance | 4,267 | 4,156 |
Accrued interest receivable | 1,235 | 1,164 |
Other assets | 2,173 | 2,086 |
Total assets | 409,493 | 387,114 |
Deposits: | ||
Non-interest bearing deposits | 41,586 | 42,262 |
Interest bearing deposits | 240,030 | 232,184 |
Total deposits | 281,616 | 274,446 |
Advances from Federal Home Loan Bank | 66,219 | 75,737 |
Mortgagors’ tax escrow | 586 | 761 |
Deferred compensation liability | 1,607 | 1,547 |
Other liabilities | 2,399 | 1,896 |
Total liabilities | 352,427 | 354,387 |
Stockholders' Equity: | ||
Preferred Stock, $.01 par value, 10,000,000 and -0- shares authorized as of December 31, 2019 and December 31, 2018, respectively; none issued and outstanding as of December 31, 2019 and December 31, 2018 | ||
Common Stock, $.01 par value, 90,000,000 and -0- shares authorized as of December 31, 2019 and December 31, 2018, respectively; 6,083,500 and -0- shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively | 61 | |
Additional paid-in capital | 25,636 | |
Equity capital | 33,113 | 33,192 |
Accumulated other comprehensive income (loss) | 521 | (465) |
Unearned compensation - ESOP 226,549 and -0- shares unallocated at December 31, 2019 and December 31, 2018, respectively | (2,265) | |
Total stockholders' equity | 57,066 | 32,727 |
Total liabilities and stockholders' equity | $ 409,493 | $ 387,114 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock par value per share | $ 0.01 | $ 0.01 |
Common stock,number of shares authorized | 90,000,000 | 0 |
Common stock,number of shares issued | 6,083,500 | 0 |
Common stock,number of shares outstanding | 6,083,500 | 0 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
ESOP,Unearned Compensation,Shares | 226,549 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 13,960 | $ 12,988 | $ 11,666 |
Interest on debt securities: | |||
Taxable | 683 | 770 | 484 |
Non-taxable | 613 | 289 | 326 |
Total interest on debt securities | 1,296 | 1,059 | 810 |
Dividends | 192 | 217 | 124 |
Total interest and dividend income | 15,448 | 14,264 | 12,600 |
Interest expense: | |||
Interest on deposits | 2,259 | 1,693 | 1,160 |
Interest on Federal Home Loan Bank advances | 1,584 | 1,452 | 660 |
Total interest expense | 3,843 | 3,145 | 1,820 |
Net interest and dividend income | 11,605 | 11,119 | 10,780 |
Provision for loan losses | 100 | 160 | |
Net interest income after provision for loan losses | 11,505 | 11,119 | 10,620 |
Non-interest income: | |||
Customer service fees | 996 | 1,022 | 957 |
Gain on sale of loans | 88 | 32 | 82 |
Securities gains (losses), net | 49 | (1) | 178 |
Income from bank-owned life insurance | 111 | 119 | 115 |
Loan servicing fee income | 41 | 131 | 232 |
Investment services fees | 193 | 200 | 146 |
Other income | 54 | 47 | 105 |
Total non-interest income | 1,532 | 1,550 | 1,815 |
Non-interest expense: | |||
Salaries and employee benefits | 7,289 | 6,424 | 6,113 |
Director compensation | 294 | 245 | 226 |
Occupancy expense | 655 | 705 | 706 |
Equipment expense | 528 | 540 | 560 |
Marketing | 1,069 | 548 | 477 |
Data processing | 797 | 1,069 | 958 |
Deposit insurance fees | 73 | 238 | 195 |
Professional fees and assessments | 637 | 539 | 506 |
Debit card fees | 156 | 164 | 151 |
Employee travel and education expenses | 238 | 229 | 223 |
Charitable Foundation expense | 758 | ||
Other expense | 811 | 656 | 707 |
Total non-interest expense | 13,305 | 11,357 | 10,822 |
(Loss) income before income tax (benefit) expense | (268) | 1,312 | 1,613 |
Income tax (benefit) expense | (189) | 232 | 701 |
Net (loss) income | $ (79) | $ 1,080 | $ 912 |
Earnings (loss) per share: | |||
Basic | $ (0.03) | ||
Diluted | $ (0.03) | ||
Weighted Average Shares: | |||
Basic | 2,694,561 | ||
Diluted | 2,694,561 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ (79) | $ 1,080 | $ 912 |
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 $355, $(129), and $56 in 2019, 2018 and 2017, respectively | 947 | (347) | 86 |
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 $15, $36 and $(4) in 2019, 2018 and 2017, respectively | 39 | 96 | (7) |
Other comprehensive income (loss) | 986 | (251) | 79 |
Comprehensive income | $ 907 | $ 829 | $ 991 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized holding gains (losses) on securities available-for-sale arising during the period net of income taxes | $ 355 | $ (129) | $ 56 |
Reclassification adjustment for gains and losses and net amortization or accretion on securities available-for-sale included in net income net of income taxes | $ 15 | $ 36 | $ (4) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Equity Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned CompensationESOP [Member] |
Beginning Balance at Dec. 31, 2016 | $ 30,907 | $ 31,164 | $ (257) | |||
Net (loss) income | 912 | 912 | ||||
Tax rate change reclassification | 36 | (36) | ||||
Other comprehensive income (loss) | 79 | 79 | ||||
Ending Balance at Dec. 31, 2017 | 31,898 | 32,112 | (214) | |||
Net (loss) income | 1,080 | 1,080 | ||||
Other comprehensive income (loss) | (251) | (251) | ||||
Ending Balance at Dec. 31, 2018 | 32,727 | 33,192 | (465) | |||
Net (loss) income | (79) | (79) | ||||
Other comprehensive income (loss) | 986 | 986 | ||||
Issuance of 3,345,925 shares to the mutual holding company | $ 33 | $ 33 | ||||
Issuance of 3,345,925 shares to the mutual holding company (shares) | 3,345,925 | 3,345,925 | ||||
Issuance of 2,676,740 shares in the initial public offering, net of expenses of $1,568 | $ 25,066 | $ 27 | $ 25,039 | |||
Issuance of 2,676,740 shares in the initial public offering, net of expenses of $1,568 (shares) | 2,676,740 | 2,676,740 | ||||
Issuance and contribution of 60,835 shares to the First Seacoast Community Foundation, Inc. | $ 609 | $ 1 | 608 | |||
Issuance and contribution of 60,835 shares to the First Seacoast Community Foundation, Inc. (shares) | 60,835 | 60,835 | ||||
Purchase of 238,473 shares of common stock by the ESOP | $ (2,385) | $ (2,385) | ||||
ESOP shares earned - 11,924 shares | 109 | (11) | 120 | |||
Ending Balance at Dec. 31, 2019 | $ 57,066 | $ 61 | $ 25,636 | $ 33,113 | $ 521 | $ (2,265) |
Ending Balance (shares) at Dec. 31, 2019 | 6,083,500 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Statement Of Stockholders Equity [Abstract] | |
Stock issued during period shares to mutual holding company | 3,345,925 |
Stock issued during period,initial public offer | 2,676,740 |
Payments of Stock Issuance Costs | $ | $ 1,568 |
Stock issued during period shares to charitable organisations | 60,835 |
Stock repurchased during period shares,for esop | 238,473 |
Number of shares commited to be released each year,esop | 11,924 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (79) | $ 1,080 | $ 912 |
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities: | |||
ESOP expense | 109 | ||
Depreciation | 528 | 539 | 560 |
Net amortization of bond premium | 103 | 131 | 166 |
Contribution of stock to charitable foundation | 609 | ||
Provision for loan losses | 100 | 160 | |
Gain on sale of loans | (88) | (32) | (82) |
Securities (gains) losses, net | (49) | 1 | (178) |
Loss on disposal of property and equipment | 3 | ||
Proceeds from loans held for sale | 7,911 | 5,661 | 7,257 |
Origination of loans held for sale | (7,823) | (5,629) | (7,175) |
Increase in bank-owned life insurance | (111) | (119) | (115) |
Increase in deferred fees on loans | (190) | (80) | (84) |
Deferred tax benefit | (315) | (11) | 326 |
Increase in accrued interest receivable | (71) | (86) | (156) |
Decrease (increase) in other assets | (141) | (475) | (92) |
Increase (decrease) in deferred compensation liability | 60 | (240) | 288 |
Increase (decrease) in other liabilities | 503 | (1,412) | 1,637 |
Gain on the sale of repossessed assets | (61) | ||
Net cash provided (used) by operating activities | 1,059 | (672) | 3,363 |
Cash flows from investing activities: | |||
Proceeds from sales and maturities of securities available-for-sale | 19,364 | 1,926 | 27,712 |
Purchase of securities available-for-sale | (23,405) | (12,953) | (24,194) |
Purchase of property and equipment | (288) | (177) | (1,397) |
Purchase of loans | (10,947) | ||
Loan originations and principal collections, net | (23,295) | (14,044) | (21,242) |
Recoveries of loans previously charged off | 21 | ||
Proceeds from sales of other real estate owned | 217 | ||
Net redemption (purchase) of Federal Home Loan Bank stock | 747 | (539) | (842) |
Proceeds from sales of interest bearing time deposits with other banks | 3,726 | ||
Purchase of interest bearing time deposits with other banks | (1,492) | (1,243) | |
Net cash used by investing activities | (23,130) | (27,279) | (31,936) |
Cash flows from financing activities: | |||
Net increase in NOW, demand deposits, money market and savings accounts | 8,771 | 17,728 | 5,703 |
Net increase in certificates of deposit | (1,601) | 7,157 | (1,358) |
(Decrease) Increase in mortgagors’ escrow accounts | (175) | (207) | 17 |
Proceeds from sale of common stock, net | 25,099 | ||
Common stock purchased by ESOP | (2,385) | ||
Proceeds from long-term FHLB advances | 19,050 | 10,262 | |
Payments on long-term FHLB advances | (12,000) | (6,000) | |
Decrease in repurchase agreements | (6,463) | 132 | |
Net cash provided by financing activities | 20,191 | 28,190 | 26,456 |
Net change in cash and cash equivalents | (1,880) | 239 | (2,117) |
Cash and cash equivalents at beginning of period | 5,889 | 5,650 | 7,767 |
Cash and cash equivalents at end of period | 4,009 | 5,889 | 5,650 |
Cash activities: | |||
Cash paid for interest | 3,859 | 3,102 | 1,799 |
Cash paid for income taxes | 85 | 603 | |
Noncash transactions: | |||
Loans transferred to other real estate owned | 66 | ||
Effect of change in fair value of investments available for sale: | |||
Investment securities available-for-sale | 1,354 | (345) | 131 |
Deferred taxes | (368) | 94 | (52) |
Other comprehensive income (loss) | 986 | (251) | 79 |
Tax rate change reclassification | 36 | ||
Federal Home Loan Bank Advances [Member] | |||
Cash flows from financing activities: | |||
Proceeds from short-term FHLB advances | 216,752 | 85,475 | 51,500 |
Payments on short-term FHLB advances | $ (245,320) | $ (63,500) | $ (33,800) |
The Company
The Company | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | 1 . The Company The accompanying consolidated financial statements include the accounts of First Seacoast Bancorp (the “Company”), its wholly-owned subsidiary, First Seacoast Bank (the “Bank”) and the Bank’s wholly-owned subsidiary, FSB Service Corporation, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Corporate Structure The Company is the federally-chartered holding company for the Bank (formerly named Federal Savings Bank). Effective July 16, 2019, pursuant to a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan (the “Plan of Reorganization”), the Bank reorganized into the mutual holding company structure and the Company completed a concurrent stock offering (collectively, the “Reorganization:”). In the stock offering, the Company sold a total of 2,676,740 shares of common stock, which included 238,473 shares sold to the First Seacoast Bank Employee Stock Ownership Plan (the “ESOP”), at a price of $10.00 per share. 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 parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc. (the “Foundation”), a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. The Company’s common stock began trading on the NASDAQ Capital Market under the symbol “FSEA” on July 17, 2019. Pursuant to the Plan of Reorganization, the Bank adopted an employee stock ownership plan (“ESOP”), which purchased 238,473 shares of common stock in the stock offering with the proceeds of a loan from the Company. As a result of the Reorganization, a total of 6,083,500 shares of common stock of the Company are issued and outstanding, of which 55% are issued to the MHC, 44% were sold to the Bank’s eligible members, the ESOP, and certain other persons in the stock offering and 1% were contributed to the Foundation. Expenses incurred related to the offering were $1.6 million and were deducted from the stock offering proceeds. The Bank offers a full range of banking and wealth management services to its customers. Banking services, the Company’s only reportable operating segment, is managed as a single strategic unit. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations. The Bank is engaged principally in the business of attracting deposits from the public and investing those deposits. The Bank invests those funds in various types of loans, including residential and commercial real estate, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit and Insurance Corporation (“FDIC”) for the maximum amount permitted by FDIC regulations. Investment management services are offered at the Company’s full-service wealth management office in Dover, NH. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the accompanying balance sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2 . Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses and the valuation of deferred tax assets. Consolidated Statements of Cash Flows For the purpose of reporting cash flows, cash includes cash and due from banks with original maturities of 90 days or less. Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. Securities Available for Sale Available-for-sale securities consist of debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. These assets are carried at fair value. Unrealized holding gains and losses for these assets, net of related deferred income taxes, are recorded in and reported as accumulated other comprehensive income (loss) within stockholders’ equity. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive loss. Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. Premiums and discounts are recognized in interest income using the interest method. Discounts are recognized over the period to maturity. Premiums are recognized over the period to call, if applicable. Otherwise, premiums are recognized over the period to maturity. Interest Bearing Time Deposits With Other Banks The Company maintains certificates of deposit with other banks and credit unions, which are fully insured by the FDIC or National Credit Union Administration (NCUA) at December 31, 2019 and 2018. These balances are carried at cost and the certificates carry terms of up to four years. Federal Home Loan Bank Stock Federal Home Loan Bank (“FHLB”) stock is carried at cost and can only be sold to the FHLB based on its current redemption policies. The Company reviews its investment in capital stock of the FHLB for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. Based on the most recent analysis of the FHLB, as of December 31, 2019, management deems its investment in FHLB stock to not be other-than-temporarily-impaired. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, net deferred loan origination fees/costs on originated loans or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. The accrual of interest on loans is discontinued at the time the loan is 90 days past due or determined to be impaired, if earlier. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for such loans is reversed against interest income. For payments received on such loans, the interest is accounted for on the cash-basis or recorded as a reduction to loan principal if recovery is not assured, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. Loan Origination Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the consolidated balance sheets with the related loan balances. The amount charged or credited to income is included with the related interest income. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General Component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: commercial real estate, multifamily, commercial and industrial, acquisition, development and land, one to four family residential, home equity loans and lines of credit and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; credit quality trends; portfolio growth trends and concentrations; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the policies or methodology pertaining to the general component of the allowance for loan losses during both of the years ended December 31, 2019 and 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management generally obtains rent rolls annually and continually monitors the cash flows of these borrowers. Multifamily loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Commercial and Industrial loans – Loans in this segment are made to businesses and are generally secured by assets of the business or real estate. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Acquisition, Development and Land loans – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale and/or lease up of the property. Credit risk is affected by cost overruns, time to sell at an adequate price and market conditions. One to Four Family Residential loans – The Bank generally does not originate or purchase loans with a loan-to-value ratio greater than 80% and does not originate subprime loans, which are those loans to borrowers with a Fair Isaac Corporation (FICO) credit score of less than 660. Loans in this segment are generally collateralized by owner-occupied residential real estate and repayment is primarily dependent on the credit quality of the individual borrower and secondarily, liquidation of the collateral. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Home Equity Loans and Lines of Credit – All loans in this segment are typically collateralized by a subordinate lien position on owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality of this segment. Consumer – Loans in this segment include secured and unsecured consumer loans including passbook loans, consumer lines of credit, overdraft protection and consumer unsecured loans. Repayment is dependent on the credit quality and the cash flow of the individual borrower. Allocated Component: The allocated component relates to loans that are classified as impaired. The Bank assesses non-accrual loans and certain loans rated substandard or worse for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. The Bank periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired and therefore are subject to a specific review for impairment. There were no TDRs at December 31, 2019, 2018 and 2017. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. Generally, impairment on TDRs is measured using the discounted cash flow method by discounting expected cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification. Loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. Generally, all other impaired loans are collateral dependent and impairment is measured through the collateral method. All loans on non-accrual status are considered to be impaired. When the measurement of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the allowance for loan losses. The Bank charges off the amount of any confirmed loan loss in the period when the loans, or portion of loans, are deemed uncollectible. Unallocated Component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for off-balance sheet commitments is included in other liabilities in the balance sheet. At both December 31, 2019 and 2018, the reserve for unfunded loan commitments was $18,000. The related provision for off-balance sheet credit losses is included in non-interest expense in the consolidated statement of income. Land, Building and Equipment Land is stated at cost. Building and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets or the lease term for leasehold improvements unless renewal is reasonably assured. Maintenance and repair costs are included in operating expenses while major expenditures for improvements are capitalized and depreciated. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of Tier one capital and the total cash surrender value of life insurance policies is limited to 25% of Tier one capital at the time of purchase. Transfers and Servicing of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company services mortgage loans for others. Loan servicing fee income is reported in the consolidated statements of income as loan servicing fee income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Mortgage servicing rights (“MSR”) are initially recorded as an asset and measured at fair value when loans are sold to third parties with servicing rights retained. MSR rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s MSR accounted for under the fair value method are carried on the balance sheet at fair value with changes in fair value recorded in loan servicing fee income in the period in which the change occurs. Changes in the fair value of MSR are primarily due to changes in valuation inputs, assumptions and the collection and realization of expected cash flows. Advertising Expense Advertising costs are expensed as incurred and recorded within marketing expense. Defined Contribution Plans During the year ended December 31, 2019, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. In prior years, the Company sponsored two 401(k) defined contribution plans which were combined into one defined contribution plan as of December 31, 2018. The Company also made matching and profit-sharing contributions to eligible participants in accordance with plan(s) provisions. Defined Benefit Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 The Company’s funding policy is to make an annual contribution determined by the Pentegra DB Plan actuaries that will not be less than the minimum required contribution nor greater than the maximum federal income tax deductible limit. Contributions are based on the individual employer’s experience. Supplemental Executive Retirement Plans The Company maintains nonqualified supplemental executive benefit agreements with certain directors and its current and former Presidents and certain officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death and for the crediting to a liability account a fixed amount of compensation, which earns interest at a rate determined in the agreement. The Company recognizes the cost of providing these benefits over the time period the individuals render service through the retirement date. At each measurement date, the aggregate amount accrued equals the then present value of the benefits expected to be provided to the individual in exchange for the individual’s service to that date. Income Taxes Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of provision for income taxes. The Company has evaluated the positions taken on its tax returns filed and the potential impact on its tax status as of December 31, 2019. The Company has concluded that no uncertain tax positions exist at December 31, 2019. Management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the consolidated balance sheets. Management then assesses the likelihood that deferred tax assets will be recovered from future taxable income and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish or adjust a valuation allowance in a period, an expense or benefit is recorded within the tax provision in the consolidated statements of income. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. Other comprehensive income consists of unrealized gains and losses on securities available for sale. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Risks and Uncertainties The Bank and the Bank’s defined benefit pension plan, invest in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the consolidated balance sheet or statement of income. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | 3 . Recently Issued and Adopted Accounting Pronouncements 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. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of December 31, 2019, there is no significant difference in the comparability of the Company’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,” “Revenue from Contracts with Customers.” “Revenue from Contracts with Customers (Topic 606).” The Company 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, and non-interest income. This ASU did not materially impact the Company’s consolidated financial statements. 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 $49.3 million and $39.1 million at December 31, 2019 and 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): Recognition and Measurement of Financial Assets and Financial Liabilities.” 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 Company’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.” In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” 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.” Recent Accounting Pronouncements In February 2020, the FASB issued ASU 2020-2, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842).” In January 2020, the FASB issued ASU 2020-1, “Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and T 815 (A Consensus of the Emerging Issues Task Force),” In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” In November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Leases (Topic 842)” Targeted Improvements to Accounting for Hedging Activities,” In March 2017, the FASB issued ASU 2017-08, “ Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842).” Codification Improvements to Topic 842, Leases,” 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,” “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” “Financial Instruments—Credit Losses, Topic 326.” 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).” |
Interest Bearing Time Deposits
Interest Bearing Time Deposits With Other Banks | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Interest Bearing Time Deposits With Other Banks | 4 . Interest Bearing Time Deposits With Other Banks At December 31, 2019, the Company’s certificates of deposit mature as follows: (Dollars in thousands) December 31, 2019 2020 $ — 2021 249 2022 1,739 2023 747 2024 — $ 2,735 |
Securities Available-for-Sale
Securities Available-for-Sale | 12 Months Ended |
Dec. 31, 2019 | |
Available For Sale Securities [Abstract] | |
Securities Available For Sale | 5 . Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of December 31, 2019 and 2018: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 9,000 $ 11 $ (14 ) $ 8,997 U.S. Government agency small business administration pools guaranteed by SBA 2,760 — (20 ) 2,740 Collateralized mortgage obligations issued by the FHLMC 986 — (6 ) 980 Residential mortgage backed securities 3,186 4 (2 ) 3,188 Municipal bonds 28,138 800 (58 ) 28,880 $ 44,070 $ 815 $ (100 ) $ 44,785 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 24,219 $ 8 $ (500 ) $ 23,727 Residential mortgage backed securities 1,375 — (48 ) 1,327 Municipal bonds 14,489 39 (139 ) 14,389 $ 40,083 $ 47 $ (687 ) $ 39,443 The amortized cost and fair values of available-for-sale securities at December 31, 2019 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2019 Amortized Cost Fair Value (Dollars in thousands) Due after one year through five years $ 8,000 $ 7,987 Due after five years through ten years 2,840 2,861 Due after ten years 26,298 27,029 Total U.S. Government-sponsored enterprises obligations and municipal bonds 37,138 37,877 U.S. Government agency small business pools guaranteed by SBA 2,760 2,740 Collateralized mortgage obligations issued by the FHLMC 986 980 Residential mortgage-backed securities 3,186 3,188 Total $ 44,070 $ 44,785 Sales proceeds and gross realized gains and losses on available for sale securities were as follows for the years ended December 31: December 31, 2019 2018 2017 (Dollars in thousands) Sales proceeds $ 7,450 $ 1,547 $ 24,969 Gross realized gains 72 6 262 Gross realized losses (23 ) (7 ) (84 ) Net realized gains (losses) $ 49 $ (1 ) $ 178 The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2019 and 2018. Less than 12 Months More than 12 Months Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) December 31, 2019 U.S. Government sponsored enterprises obligations 2 $ 1,995 $ (5 ) 1 $ 1,991 $ (9 ) $ 3,986 $ (14 ) U.S. Government agency small business administration pools guaranteed by SBA 2 2,740 (20 ) — — — 2,740 (20 ) Collateralized mortgage obligations issued by the FHLMC 1 980 (6 ) — — — 980 (6 ) Residential mortgage backed securities 1 999 (2 ) — — — 999 (2 ) Municipal bonds 8 4,052 (58 ) — — — 4,052 (58 ) 14 $ 10,766 $ (91 ) 1 $ 1,991 $ (9 ) $ 12,757 $ (100 ) December 31, 2018 U.S. Government sponsored enterprises obligations 4 $ 4,937 $ (32 ) 15 $ 16,781 $ (468 ) $ 21,718 $ (500 ) Residential mortgage backed securities 1 1,328 (48 ) — — — 1,328 (48 ) Municipal bonds 13 6,013 (62 ) 9 4,051 (77 ) 10,064 (139 ) 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 Company 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 December 31, 2019. As of December 31, 2019 and 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 securities. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | 6 . Loans The Bank’s lending activities are primarily conducted in and around Dover, New Hampshire and in the areas surrounding its branches. The Bank 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 loans and lines of credit 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 December 31: December 31, 2019 December 31, 2018 (Dollars in thousands) Commercial real estate (CRE) $ 70,194 $ 63,853 Multifamily (MF) 4,888 4,928 Commercial and industrial (C+I) 24,676 21,990 Acquisition, development, and land (ADL) 18,844 15,580 1-4 family residential (RES) 213,322 201,759 Home equity loans and lines of credit (HELOC) 10,123 11,151 Consumer (CON) 1,752 1,295 Total loans 343,799 320,556 Net deferred loan costs 1,056 866 Allowance for loan losses (2,875 ) (2,806 ) Total loans, net $ 341,980 $ 318,616 Transactions in the Allowance for loan losses (“ALL”) for the years ended December 31, 2019, 2018 and 2017 by portfolio segment are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2016 $ 424 $ 46 $ 178 $ 200 $ 1,312 $ 249 $ 24 $ 244 $ 2,677 Provision for loan losses (57 ) (15 ) (9 ) 137 317 (179 ) (14 ) (20 ) 160 Charge-offs — — — (34 ) — — — — (34 ) Recoveries — — — — — — 1 — 1 Balance, December 31, 2017 367 31 169 303 1,629 70 11 224 2,804 Balance, December 31, 2017 367 31 169 303 1,629 70 11 224 2,804 Provision for loan losses 193 (9 ) 62 (215 ) (36 ) (1 ) (5 ) 11 — Charge-offs — — — — — — — — — Recoveries — — 1 — — — 1 — 2 Balance, December 31, 2018 560 22 232 88 1,593 69 7 235 2,806 Balance, December 31, 2018 560 22 232 88 1,593 69 7 235 2,806 Provision for loan losses 221 1 151 57 (108 ) (17 ) 27 (232 ) 100 Charge-offs — — (35 ) — — — (17 ) — (52 ) Recoveries — — 2 — 18 — 1 — 21 Balance at December 31, 2019 $ 781 $ 23 $ 350 $ 145 $ 1,503 $ 52 $ 18 $ 3 $ 2,875 As of December 31, 2019 and 2018, information about loans and the ALL by portfolio segment are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total December 31, 2019 Loan Balances Individually evaluated for impairment $ 109 $ — $ 996 $ — $ 66 $ — $ — $ — $ 1,171 Collectively evaluated for impairment 70,085 4,888 23,680 18,844 213,256 10,123 1,752 — 342,628 Total $ 70,194 $ 4,888 $ 24,676 $ 18,844 $ 213,322 $ 10,123 $ 1,752 $ — $ 343,799 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 781 23 350 145 1,503 52 18 3 2,875 Total $ 781 $ 23 $ 350 $ 145 $ 1,503 $ 52 $ 18 $ 3 $ 2,875 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 560 22 232 88 1,593 69 7 235 2,806 Total $ 560 $ 22 $ 232 $ 88 $ 1,593 $ 69 $ 7 $ 235 $ 2,806 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2019: 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans (Dollars in thousands) CRE $ — $ — $ — $ — $ 70,194 $ 70,194 $ — MF — — — — 4,888 4,888 — C+I — — 996 996 23,680 24,676 996 ADL — — — — 18,844 18,844 — RES — 19 66 85 213,237 213,322 66 HELOC — — — — 10,123 10,123 — CON — — — — 1,752 1,752 — $ — $ 19 $ 1,062 $ 1,081 $ 342,718 $ 343,799 $ 1,062 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2018: 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans (Dollars in thousands) CRE $ 93 $ — $ — $ 93 $ 63,760 $ 63,853 $ — MF — — — — 4,928 4,928 — C+I — — — — 21,990 21,990 — ADL — — — — 15,580 15,580 — RES 255 — 68 323 201,436 201,759 68 HELOC 100 — — 100 11,051 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 December 31, 2019 and 2018. The following table provides information on impaired loans as of and for the year ended December 31, 2019, 2018 and 2017: (Dollars in thousands) Recorded Carrying Value Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2019 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I 996 1,057 — 344 36 ADL — — — — — RES 66 66 — 67 — HELOC — — — — — CON — — — — — Total impaired loans $ 1,062 $ 1,123 $ — $ 411 $ 36 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 December 31, 2017 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL 1,203 1,203 — 407 36 RES — — — 54 6 HELOC — — — — — CON — — — — — Total impaired loans $ 1,203 $ 1,203 $ — $ 461 $ 42 Credit Quality Information The Bank utilizes a ten-grade internal loan rating system for its commercial real estate, multifamily, commercial and industrial and acquisition, development and land loans. Residential real estate, home equity loans and line of credit and consumer loans are considered “pass” rated loans until they become delinquent. Once delinquent, loans can be rated an 8, 9 or 10 as applicable. Loans rated 1 through 6: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 7: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 8: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Bank will sustain some loss if the weakness is not corrected. Loans rated 9: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 10: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted and should be charged off. On an annual basis, or more often if needed, the Bank formally reviews the ratings on all commercial and industrial, commercial real estate, acquisition, development and land loans and multifamily loans. On a periodic basis, the Bank engages an independent third party to review a significant portion of loans within these segments and to assess the credit risk management practices of its commercial lending department. Management uses the results of these reviews as part of its annual review process and overall credit risk administration. On a quarterly basis, the Bank formally reviews the ratings on all residential real estate and home equity loans if they have become delinquent. Criteria used to determine ratings consist of loan-to-value ratios and days delinquent. The following presents the internal risk rating of loans by portfolio segment as of December 31, 2019: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 70,085 $ — $ 109 $ 70,194 MF 4,888 — — 4,888 C+I 22,208 2,166 302 24,676 ADL 18,844 — — 18,844 RES 213,256 — 66 213,322 HELOC 10,123 — — 10,123 CON 1,752 — — 1,752 Total $ 341,156 $ 2,166 $ 477 $ 343,799 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2018: (Dollars in thousands) Pass Special Mention 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 during 2019, 2018 and 2017. For the year ended December 31, 2019, 2018 and 2017, activity in these loans was as follows: December 31, (Dollars in thousands) 2019 2018 2017 Loans outstanding – beginning of period $ 4,483 $ 4,369 $ 4,560 Principal payments (412 ) (308 ) (424 ) Advances 1,160 422 233 Loans outstanding – end of period $ 5,231 $ 4,483 $ 4,369 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | 7 . Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $49.3 million and $49.2 million at December 31, 2019 and 2018, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 16 Fair Value of Assets and Liabilities for more information). Changes to the balance of mortgage servicing rights are recorded in loan servicing fee income in the Company’s consolidated statements of income. The Bank’s mortgage servicing activities include collecting principal, interest and escrow payments from The following summarizes activity in mortgage servicing rights for the years ended December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Balance, beginning of year $ 479 $ 473 Net additions 61 47 Change in fair value due to change in assumptions (143 ) (41 ) Balance, end of year $ 397 $ 479 Fair value at December 31, 2019 was determined using a discount rate of 9.50%, prepayment speed of 13.08% and a weighted average default rate of 2.48%. Fair value at December 31, 2018 was determined using a discount rate of 9.50%, prepayment speed of 8.58% and a weighted average default rate of 3.00%. Mortgage servicing rights are included in other assets on the accompanying consolidated balance sheet. |
Land, Buildings and Equipment
Land, Buildings and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Land, Buildings and Equipment | 8 . Land, Buildings and Equipment Land, building and equipment consisted of the following at December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Land $ 995 $ 995 Buildings 3,167 3,167 Building & leasehold improvements 3,812 3,786 Furniture, fixtures and equipment 4,094 3,837 12,068 11,785 Less accumulated depreciation (6,730 ) (6,204 ) $ 5,338 $ 5,581 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | 9 . Deposits Deposits consisted of the following at December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 NOW and demand deposits $ 115,024 $ 109,580 Money market deposits 65,611 60,952 Savings deposits 39,962 41,294 Time deposits of $250,000 and greater 13,481 13,325 Time deposits less than $250,000 47,538 49,295 $ 281,616 $ 274,446 At December 31, 2019, the scheduled maturities of time deposits were as follows: (Dollars in thousands) Total 2020 $ 48,334 2021 8,140 2022 3,644 2023 462 2024 439 $ 61,019 There were no brokered deposits included in time deposits at December 31, 2019 and 2018. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 10 . Borrowings Federal Home Loan Bank (FHLB A summary of borrowings from the FHLB are as follows: December 31, 2019 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 44,907 2020 1.77% to 2.19 % – fixed 2,262 2022 0.00% – fixed 18,800 2024 0.00% to 1.69% – fixed 250 2028 0.00% – fixed $ 66,219 December 31, 2018 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 73,475 2019 2.54% to 2.68% – fixed 2,262 2022 0.00% – fixed $ 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 $81.7 million and $72.1 million at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. Included in the above advances at December 31, 2019 is a $10.0 million long-term advance, with an interest rate of 1.39%, which is callable by the FHLB on March 5, 2020 and quarterly thereafter, a $3.0 million long-term advance, with an interest rate of 1.69%, which is callable by the FHLB on May 26, 2020, and a $5.0 million long-term advance, with an interest rate of 1.65%, which is callable by the FHLB on October 28, 2020. December 31, 2019 and 2018 borrowings include $3.3 million and $2.3 million, respectively, of advances through the FHLB’s Jobs for New England program where certain qualifying small business loans that create or preserve jobs, expand woman-, Minority-, or veteran-owned businesses, or otherwise stimulate the economy in New England communities are offered at an interest rate of 0%. At December 31, 2019, the Bank had an overnight line of credit with the FHLB that may be drawn up to $3.0 million. Additionally, the Bank had a total of $5.0 million of unsecured Fed Funds borrowing lines of credit with two correspondent banks. The entire balance of all these credit facilities was available at December 31, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 1 . Income Taxes The current and deferred components of income tax expense consisted of the following for the years ended December 31, 2019, 2018 and 2017: December 31, 2019 December 31, 2018 December 31, 2017 Federal State Total Federal State Total Federal State Total (Dollars in thousands) Current $ (24 ) $ 150 $ 126 $ 202 $ 41 $ 243 $ 332 $ 43 $ 375 Deferred (76 ) (239 ) (315 ) (11 ) — (11 ) 326 — 326 $ (100 ) $ (89 ) $ (189 ) $ 191 $ 41 $ 232 $ 658 $ 43 $ 701 Total income tax expense is different from the amounts computed by applying the U.S. Federal income tax rates in effect to income before income taxes. The reasons for these differences are as follows for the years ended December 31, 2019, 2018 and 2017: December 31, 2019 December 31, 2018 December 31, 2017 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income (Dollars in thousands) Computed “expected” tax expense $ (56 ) (21.0 )% $ 276 21.0 % $ 548 34.0 % State tax, net of federal tax benefit (102 ) (38.1 ) 32 2.5 28 1.8 BOLI income (23 ) (8.6 ) (25 ) (1.9 ) (39 ) (2.4 ) Valuation allowance 103 38.4 — — — — Income on tax exempt securities (120 ) (44.8 ) — — — — Other 9 3.4 (51 ) (3.9 ) (95 ) (5.9 ) Tax Act expense — — — — 259 16.0 $ (189 ) (70.7 )% $ 232 17.7 % $ 701 43.5 % Components of deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 795 $ 776 Available-for-sale securities — 174 Deferred compensation agreements 465 422 Contribution carryforward 206 — State tax credit carryforward 156 — Other 45 48 Subtotal 1,667 1,420 Less: valuation allowance (103 ) — Total deferred tax assets 1,564 1,420 Deferred tax liabilities: Depreciation (227 ) (258 ) Available-for-sale securities (194 ) — Prepaids (24 ) (16 ) Deferred loan origination fees (286 ) (236 ) Mortgage servicing rights (107 ) (131 ) Total deferred tax liabilities (838 ) (641 ) Net deferred tax assets, included in other assets $ 726 $ 779 The calculation of the Company’s charitable contribution carryforward deferred tax asset is based upon a carryforward of approximately $761,000 of charitable contributions at December 31, 2019. As of December 31, 2019, it has been determined that it is more likely than not that a portion of the benefit from this charitable contribution carryforward will not be realized prior to expiration. As a result, a valuation allowance of $103,000 has been provided on this deferred tax asset. The ultimate realization of this deferred tax asset is dependent upon the generation of future taxable income. The Internal Revenue Federal Tax Code (the “Code”) limits the charitable contribution deduction in any one year to 10% of taxable income, computed without regard to charitable contributions, certain special deductions, net operating loss carry backs and capital loss carry backs. However, the Code allows a corporation to carry forward the excess charitable contributions to each of the five immediately succeeding years, subject to a 10% limitation in each of those years. Thus, the Company would have six years in which to utilize the December 31, 2019 charitable contribution carryforward. The valuation allowance for this net deferred tax asset may be adjusted in the future if estimates of taxable income during the carryforward period are reduced or increased. All other deferred tax assets as of December 31, 2019 and 2018 have not been reduced by a valuation allowance because management believes that it is more likely than not that the full amount of these deferred tax assets will be realized. As of December 31, 2019 and 2018, New Hampshire state net operating loss carryforwards were $919,000 and $202,000, respectively, and will expire in 2029 and 2028, respectively. Additionally, the Company has a New Hampshire Business Enterprise Tax credit carry forward of $126,000 that expires in 2029. The tax reserve for loan losses at the Company’s base year amounted to approximately $2.3 million. If any portion of the reserve is used for purposes other than to absorb loan losses, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve to only absorb loan losses, a deferred tax liability of approximately $627,000 has not been provided. The Company does not have any uncertain tax positions at December 31, 2019 or 2018 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2019, 2018 and 2017. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Bank is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2016 through 2019. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2016 are open. On December 22, 2017, the Tax Act was enacted. Among other provisions, the Tax Act reduced the historical corporate income tax rate to 21% from 35% for tax years beginning after December 31, 2017. The Tax Act required a revaluation of the Company’s deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of this legislation. As a result of the Company’s revaluation of deferred tax assets and liabilities at December 31, 2017, the Company recognized an additional one-time income tax expense of approximately $259,000 in 2017. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 1 2 . Employee Benefits Employee Stock Ownership Plan As part of the stock offering, the Company established the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The Company uses the principal and interest method to determine the release of shares amount. The number of shares committed to be released per year through 2038 is approximately 12,000. The ESOP funded its purchase of 238,473 shares through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. The ESOP trustee will repay the loan principally through the Bank’s contributions to the ESOP over the remaining loan term of 19.5 years. At December 31, 2019, the remaining principal balance on the ESOP debt was $2.3 million. Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. Total compensation expense recognized in connection with the ESOP for the year ended December 31, 2019 was $109,000. December 31, 2019 Shares held by the ESOP include the following: Allocated — Committed to be allocated 11,924 Unallocated 226,549 Total 238,473 The fair value of unallocated shares was approximately $2.1 million at December 31, 2019. 401(k) Plan During the year ended December 31, 2019, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. In prior years, the Company sponsored two 401(k) defined contribution plans which were combined into one defined contribution plan as of December 31, 2018. The Company also made matching and profit-sharing contributions to eligible participants in accordance with plan(s) provisions. The Company’s contributions for the years ended December 31, 2019, 2018 and 2017 was $174,000, $116,000 and $133,000, respectively. Pension Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 The funded status (fair value of plan assets divided by funding target) as of July 1, 2019 is as follows: 2019 Valuation Report 92.61 % (1) (1) Based upon the funded status of the Pentegra DB Plan as of July 1, 2019 no funding improvement plan or rehabilitation plan has been implemented or is pending as of December 31, 2019. The Bank’s contributions to the Pentegra DB Plan during the year ended December 31, 2019 totaled $270,000 and were not more than 5% of the total contributions to the Pentegra DB Plan for the plan year ending June 30, 2018. Total pension plan expense for the years ended December 31, 2019, 2018 and 2017 was $270,000, $374,000 and $312,000, respectively, and is included in salaries and employee benefits in the accompanying consolidated financial statements. The Company did not pay a surcharge to the Pentegra DB Plan in the years ended December 31, 2019, 2018 or 2017. The Company enacted a “hard freeze” for the Pentegra DB Plan as of December 31, 2018, eliminating all future service-related accruals for participants. Prior to this enactment the Company maintained a “soft freeze” status that continued service-related accruals for its active participants with no new participants permitted into the Pentegra DB Plan. The Company estimates a contribution amount of approximately $270,000 for the year ended December 31, 2020. Supplemental Executive Retirement Plans Salary Continuation Plan The Company 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 December 31, 2019 and 2018 relating to this supplemental retirement plan was $590,000 and $565,000, respectively. The discount rate used to determine the Company’s obligation was 5.00% during both the years ended December 31, 2019 and 2018. The projected rate of salary increase for its current President was 5% for both the years ended December 31, 2019 and 2018. For the years ended December 31, 2019, 2018 and 2017, the expense of this salary retirement plan was $80,000, $95,000 and $215,000, respectively. The Company 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. For the years ended December 31, 2019, 2018 and 2017, the expense of this salary retirement plan was $-0-, $25,000 and $53,000, respectively. Executive Supplemental Retirement Plan The recorded liability at December 31, 2019 and 2018 relating to the supplemental retirement plan for the Company’s former President was $171,000 and $207,000, respectively. The discount rate used to determine the Company’s obligation was 6.25% during the years ended December 31, 2019 and 2018. For the years ended December 31, 2019, 2018 and 2017, the expense of this supplemental plan was $10,000, $12,000 and $14,000, respectively. Endorsement Method Split Dollar Plan The Company has an endorsement method split dollar plan for a former President/Director. The recorded liability at December 31, 2019 and 2018 relating to this supplemental executive benefit agreement was $33,000 and $58,000, respectively. For the years ended December 31, 2019, 2018 and 2017, the expense of this supplemental plan was $(26,000), $(20,000) and $(20,000), respectively. Deferred Directors Supplemental Retirement Plan The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at December 31, 2019 and 2018 relating to this plan was $581,000 and $562,000, respectively. The discount rate used to determine the Company’s obligation was 6.25% during the years ended December 31, 2019 and 2018. Total supplemental retirement plan expense amounted to $90,000, $55,000 and $74,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Additionally, the Company 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 December 31, 2019, 2018 and 2017, the total deferred director’s fees amounted to $233,000, $154,000 and $88,000, respectively. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Other Comprehensive Income (Loss) | 1 3 . Other Comprehensive Income (Loss) The Company reports certain items as “other comprehensive income (loss)” and reflects total comprehensive income in the consolidated financial statements for all years containing elements of other comprehensive income (loss). A summary of the reclassification adjustments out of accumulated other comprehensive (loss) income in 2019, 2018 and 2017 follows: Year Ended December 31, Reclassification Adjustment 2019 2018 2017 Affected Line Item in Statements of Income (Dollars in thousands) (Gains) losses on securities available for sale $ (49 ) $ 1 $ (178 ) Securities gains (losses), net Tax effect 13 — 71 Income tax (benefit) expense $ (36 ) $ 1 $ (107 ) Net (loss) income Net amortization of premium on securities $ 103 $ 131 $ 166 Interest on debt securities Tax effect (28 ) (36 ) (66 ) Income tax (benefit) expense $ 75 $ 95 $ 100 Net (loss) income |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments With Off Balance Sheet Risk Commitment And Contingencies [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies | 1 4 . Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, unadvanced funds on loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but generally includes secured interests in mortgages. Standby letters of credit are conditional commitments issued by the Bank to guarantee performance by a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Notional amounts of financial instruments with off-balance sheet credit risk are approximately as follows as of December 31: (Dollars in thousands) December 31, 2019 December 31, 2018 Unadvanced portions of loans $ 36,111 $ 34,396 Commitments to originate loans 12,625 12,692 Standby letters of credit 120 278 In the ordinary course of business, the Bank may be subject to various legal proceedings. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings will not be material to the consolidated balance sheet or consolidated statements of income. The Bank has obligations under a long-term operating lease related to a branch. This lease expires in June 2020 and has future lease payments of approximately $16,000. Total lease expense was $31,996 for the years ended December 31, 2019, 2018 and 2017. The Bank is required to maintain certain reserve balances in the form of cash or deposits with the Federal Reserve Bank. At December 31, 2019 and 2018, the Bank was in compliance with the required reserve balances of approximately $2.7 million and $2.0 million, respectively. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Regulatory Matters [Abstract] | |
Regulatory Matters | 1 5 . Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below). As of December 31, 2019, the most recent notification from the Office of the Comptroller of the Currency categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital amounts and ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes that, as of December 31, 2019 and 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% “capital conservation buffer” (effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 7.0%), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5%), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5%) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets below the effective minimum will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of December 31, 2019 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 December 31, 2019 and December 31, 2018 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules became fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Fully Phased-In Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2019 Total Capital (to risk- weighted assets) $ 49,259 18.52 % $ 21,278 8.00 % $ 27,928 10.50 % Tier I Capital (to risk- weighted assets) 46,321 17.41 15,961 6.00 22,611 8.50 Tier I Capital (to average assets) 46,321 11.41 16,236 4.00 16,236 4.00 Common Equity Tier 1 (to risk-weighted assets) 46,321 17.41 11,971 4.50 18,621 7.00 Minimum Capital Minimum To Be Well Capitalized Under Prompt Corrective Actual Requirement Action Provisions 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 Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Minimum Capital Required For Capital Adequacy Plus Capital Actual Basel III Phase-In Schedule Conservation Buffer Fully 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 | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Fair Values Of Assets And Liabilities [Abstract] | |
Fair Values of Assets and Liabilities | 1 6 . Fair Values of Assets and Liabilities Determination of Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability and reliability of the assumptions used to determine fair value. Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented 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 Company’s financial assets and financial liabilities carried at fair value for December 31, 2019 and 2018. There were no significant transfers between levels of the fair value hierarchy during the years ended December 31, 2019 and 2018. Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following: Securities Available-for-Sale : The Company’s investment in U.S. Government-sponsored entities bonds, U.S Government agency small business administration pools guaranteed by the SBA, Collateralized mortgage obligations issued by the FHLMC, mortgage-backed securities and other municipal bonds is generally classified within Level 2 of the fair value hierarchy. For these securities, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include reported trades, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. Mortgage Servicing Rights : Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (see Note 7 Loan Servicing for more information). These assumptions are inherently sensitive to change as these unobservable inputs are not based on quoted prices in active markets or otherwise observable. The following table summarizes financial assets measured at fair value on a recurring basis as of December 31, 2019 Total Level 1 Level 2 Level 3 December 31, 2019 (Dollars in thousands) Mortgage servicing rights $ 397 $ — $ — $ 397 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 8,997 — 8,997 — U.S Government agency small business administration pools guaranteed by the SBA 2,740 — 2,740 Collateralized mortgage obligations issued by the FHLMC 980 — 980 — Mortgage-backed securities 3,188 — 3,188 — Municipal bonds 28,880 — 28,880 — $ 45,182 $ — $ 44,785 $ 397 Total Level 1 Level 2 Level 3 December 31, 2018 (Dollars in thousands) 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 7 Loan Servicing for a rollforward of our Level 3 item and related inputs and assumptions used to determine fair value at December 31, 2019 Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods may include certain impaired loans reported at the fair value of the underlying collateral. Fair value is measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, real estate collateral related nonrecurring fair value measurement adjustments have generally been classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Financial assets measured at fair value on a non-recurring basis during the reported periods also include loans held for sale. Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. The fair values for loans held for sale are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality and are included in Level 3. At December 31, 2019, the Company’s only asset measured at fair value on a nonrecurring basis is a loan identified as impaired for which a partial write-off has been recorded. This impaired loan is reported at the fair value of the underlying collateral, less estimated selling costs. The Company classifies impaired loans as Level 3 in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party, but can be adjusted and therefore classified as Level 3. 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 at December 31, 2018. The following summarizes assets measured at fair value on a nonrecurring basis at December 31, 2019 and 2018: Fair Value Measurements at Reporting Date Using: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 December 31, 2019 Impaired Loans $ 996 $ — $ — $ 996 December 31, 2018 Impaired Loans $ — $ — $ — $ — The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at December 31, 2019 and 2018: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input December 31, 2019 Impaired Loans $ 996 Market Approach Appraisal of Collateral Selling Costs Provision December 31, 2018 Impaired Loans $ — NA NA Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis generally include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, are remeasured at fair value through a write-down included in other non-interest expense. There were no foreclosed assets at December 31, 2019 ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. ASU 2016-01 requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The exit price notion is a market-based measurement of fair value that is represented by the price to sell an asset or transfer a liability in the principal market (or most advantageous market in the absence of a principal market) on the measurement date. For December 31, 2019, fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. This is not comparable with the fair values disclosed for December 31, 2018, which were based on an entrance price basis. Summary of Fair Values of Financial Instruments not Carried at Fair Value The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at December 31 are as follows: Carrying Amount Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2019 Financial Assets: Cash and due from banks $ 4,009 $ 4,009 $ 4,009 $ — $ — Interest-bearing time deposits with other banks 2,735 2,735 — 2,735 — Federal Home Loan Bank stock 2,971 2,971 — 2,971 — Bank-owned life insurance 4,267 4,267 — 4,267 — Loans, net 341,980 336,847 — — 336,847 Accrued interest receivable 1,235 1,235 1,235 — — Financial Liabilities: Deposits $ 281,616 $ 281,707 $ 220,596 $ 61,111 $ — Advances from Federal Home Loan Bank 66,219 66,060 — 66,060 — Mortgagors’ tax escrow 586 586 — 586 — 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 318,616 307,582 — — 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 — |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 1 7 . Quarterly Results of Operations (Unaudited) 2019 Quarters Fourth Third Second First (In thousands, except per share data) Interest and dividend income $ 3,875 $ 3,921 $ 3,886 $ 3,766 Interest expense 856 891 1,067 1,029 Net interest and dividend income 3,019 3,030 2,819 2,737 Provision for loan losses 75 — 25 — Net interest income after provision for loan losses 2,944 3,030 2,794 2,737 Non-interest income 427 444 358 303 Non-interest expense 3,207 4,307 2,933 2,858 Income (loss) before income tax (benefit) expense 164 (833 ) 219 182 Income tax (benefit) expense 21 (220 ) 6 4 Net income (loss) $ 143 $ (613 ) $ 213 $ 178 Share Data: Average Shares Outstanding, Basic 5,856,951 4,833,426 N/A N/A Average Shares Outstanding, Diluted 5,856,951 4,833,426 N/A N/A Basic Earnings (Loss) Per Share $ 0.02 $ (0.13 ) N/A N/A Diluted Earnings (Loss) Per share $ 0.02 $ (0.13 ) N/A N/A 2018 Quarters Fourth Third Second First (In thousands, except per share data) Interest and dividend income $ 3,774 $ 3,605 $ 3,502 $ 3,383 Interest expense 930 830 757 628 Net interest and dividend income 2,844 2,775 2,745 2,755 Provision (credit) for loan losses (100 ) 30 30 40 Net interest income after provision for loan losses 2,944 2,745 2,715 2,715 Non-interest income 436 373 341 400 Non-interest expense 2,980 2,783 2,756 2,838 Income before provision for income taxes 400 335 300 277 Provision for income taxes 69 62 46 55 Net income $ 331 $ 273 $ 254 $ 222 Share Data: Average Shares Outstanding, Basic N/A N/A N/A N/A Average Shares Outstanding, Diluted N/A N/A N/A N/A Basic Earnings Per Share N/A N/A N/A N/A Diluted Earnings Per share N/A N/A N/A N/A |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 1 8 . Condensed Financial Statements of Parent Company Financial information pertaining to First Seacoast Bancorp only is as follows: CONDENSED BALANCE SHEET December 31, 2019 (Dollars in thousands) ASSETS Cash held at First Seacoast Bank $ 9,965 Investment in First Seacoast Bank 44,613 Loan to First Seacoast Bank ESOP 2,195 Deferred tax asset 103 Other assets 190 Total assets $ 57,066 STOCKHOLDERS’ EQUITY Stockholders’ equity $ 57,066 Total stockholders’ equity $ 57,066 CONDENSED STATEMENTS OF INCOME For the Year Ended December 31, 2019 (Dollars in thousands) Charitable foundation contribution $ 758 Loss before income tax benefit and equity in undistributed net income of First Seacoast Bank (758 ) Income tax benefit (103 ) Net loss before equity in undistributed net income of First Seacoast Bank (655 ) Equity in undistributed net income of First Seacoast Bank 576 Net loss $ (79 ) CONDENSED STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2019 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (79 ) Adjustments to reconcile net loss to net cash used by operating activities: Undistributed net income of First Seacoast Bank (576 ) Deferred tax benefit (103 ) Contribution of common stock to First Seacoast Community Foundation, Inc. 609 Increase in other assets (190 ) Net cash used by operating activities (339 ) CASH FLOWS FROM BY INVESTING ACTIVITIES: Capital contribution to First Seacoast Bank (12,600 ) ESOP loan, net of principal payments (2,195 ) Net cash used by investing activities (14,795 ) CASH FLOWS FROM BY FINANCING ACTIVITIES: Proceeds from the issuance of common stock 25,099 Net cash provided by financing activities 25,099 Net increase in cash 9,965 Cash at beginning of year — Cash at end of year $ 9,965 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses and the valuation of deferred tax assets. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For the purpose of reporting cash flows, cash includes cash and due from banks with original maturities of 90 days or less. |
Reclassification | Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. |
Securities Available for Sale | Securities Available for Sale Available-for-sale securities consist of debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. These assets are carried at fair value. Unrealized holding gains and losses for these assets, net of related deferred income taxes, are recorded in and reported as accumulated other comprehensive income (loss) within stockholders’ equity. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive loss. Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. Premiums and discounts are recognized in interest income using the interest method. Discounts are recognized over the period to maturity. Premiums are recognized over the period to call, if applicable. Otherwise, premiums are recognized over the period to maturity. |
Interest Bearing Time Deposits With Other Banks | Interest Bearing Time Deposits With Other Banks The Company maintains certificates of deposit with other banks and credit unions, which are fully insured by the FDIC or National Credit Union Administration (NCUA) at December 31, 2019 and 2018. These balances are carried at cost and the certificates carry terms of up to four years. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank (“FHLB”) stock is carried at cost and can only be sold to the FHLB based on its current redemption policies. The Company reviews its investment in capital stock of the FHLB for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. Based on the most recent analysis of the FHLB, as of December 31, 2019, management deems its investment in FHLB stock to not be other-than-temporarily-impaired. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, net deferred loan origination fees/costs on originated loans or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. The accrual of interest on loans is discontinued at the time the loan is 90 days past due or determined to be impaired, if earlier. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for such loans is reversed against interest income. For payments received on such loans, the interest is accounted for on the cash-basis or recorded as a reduction to loan principal if recovery is not assured, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. |
Loan Origination Fees and Costs | Loan Origination Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the consolidated balance sheets with the related loan balances. The amount charged or credited to income is included with the related interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General Component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: commercial real estate, multifamily, commercial and industrial, acquisition, development and land, one to four family residential, home equity loans and lines of credit and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; credit quality trends; portfolio growth trends and concentrations; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the policies or methodology pertaining to the general component of the allowance for loan losses during both of the years ended December 31, 2019 and 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management generally obtains rent rolls annually and continually monitors the cash flows of these borrowers. Multifamily loans – Loans in this segment are primarily income-producing properties throughout the Bank’s market area. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Commercial and Industrial loans – Loans in this segment are made to businesses and are generally secured by assets of the business or real estate. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Acquisition, Development and Land loans – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale and/or lease up of the property. Credit risk is affected by cost overruns, time to sell at an adequate price and market conditions. One to Four Family Residential loans – The Bank generally does not originate or purchase loans with a loan-to-value ratio greater than 80% and does not originate subprime loans, which are those loans to borrowers with a Fair Isaac Corporation (FICO) credit score of less than 660. Loans in this segment are generally collateralized by owner-occupied residential real estate and repayment is primarily dependent on the credit quality of the individual borrower and secondarily, liquidation of the collateral. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Home Equity Loans and Lines of Credit – All loans in this segment are typically collateralized by a subordinate lien position on owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality of this segment. Consumer – Loans in this segment include secured and unsecured consumer loans including passbook loans, consumer lines of credit, overdraft protection and consumer unsecured loans. Repayment is dependent on the credit quality and the cash flow of the individual borrower. Allocated Component: The allocated component relates to loans that are classified as impaired. The Bank assesses non-accrual loans and certain loans rated substandard or worse for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. The Bank periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired and therefore are subject to a specific review for impairment. There were no TDRs at December 31, 2019, 2018 and 2017. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. Generally, impairment on TDRs is measured using the discounted cash flow method by discounting expected cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification. Loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. Generally, all other impaired loans are collateral dependent and impairment is measured through the collateral method. All loans on non-accrual status are considered to be impaired. When the measurement of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the allowance for loan losses. The Bank charges off the amount of any confirmed loan loss in the period when the loans, or portion of loans, are deemed uncollectible. Unallocated Component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for off-balance sheet commitments is included in other liabilities in the balance sheet. At both December 31, 2019 and 2018, the reserve for unfunded loan commitments was $18,000. The related provision for off-balance sheet credit losses is included in non-interest expense in the consolidated statement of income. |
Land, Building and Equipment | Land, Building and Equipment Land is stated at cost. Building and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets or the lease term for leasehold improvements unless renewal is reasonably assured. Maintenance and repair costs are included in operating expenses while major expenditures for improvements are capitalized and depreciated. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. |
Bank-Owned Life Insurance | Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of Tier one capital and the total cash surrender value of life insurance policies is limited to 25% of Tier one capital at the time of purchase. |
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company services mortgage loans for others. Loan servicing fee income is reported in the consolidated statements of income as loan servicing fee income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Mortgage servicing rights (“MSR”) are initially recorded as an asset and measured at fair value when loans are sold to third parties with servicing rights retained. MSR rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s MSR accounted for under the fair value method are carried on the balance sheet at fair value with changes in fair value recorded in loan servicing fee income in the period in which the change occurs. Changes in the fair value of MSR are primarily due to changes in valuation inputs, assumptions and the collection and realization of expected cash flows. |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred and recorded within marketing expense. |
Defined Contribution Plans | Defined Contribution Plans During the year ended December 31, 2019, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. In prior years, the Company sponsored two 401(k) defined contribution plans which were combined into one defined contribution plan as of December 31, 2018. The Company also made matching and profit-sharing contributions to eligible participants in accordance with plan(s) provisions. |
Defined Benefit Plan | Defined Benefit Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 The Company’s funding policy is to make an annual contribution determined by the Pentegra DB Plan actuaries that will not be less than the minimum required contribution nor greater than the maximum federal income tax deductible limit. Contributions are based on the individual employer’s experience. |
Supplemental Executive Retirement Plans | Supplemental Executive Retirement Plans The Company maintains nonqualified supplemental executive benefit agreements with certain directors and its current and former Presidents and certain officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death and for the crediting to a liability account a fixed amount of compensation, which earns interest at a rate determined in the agreement. The Company recognizes the cost of providing these benefits over the time period the individuals render service through the retirement date. At each measurement date, the aggregate amount accrued equals the then present value of the benefits expected to be provided to the individual in exchange for the individual’s service to that date. |
Income Taxes | Income Taxes Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of provision for income taxes. The Company has evaluated the positions taken on its tax returns filed and the potential impact on its tax status as of December 31, 2019. The Company has concluded that no uncertain tax positions exist at December 31, 2019. Management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the consolidated balance sheets. Management then assesses the likelihood that deferred tax assets will be recovered from future taxable income and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish or adjust a valuation allowance in a period, an expense or benefit is recorded within the tax provision in the consolidated statements of income. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. Other comprehensive income consists of unrealized gains and losses on securities available for sale. |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. |
Risk And Uncertainties | Risks and Uncertainties The Bank and the Bank’s defined benefit pension plan, invest in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the consolidated balance sheet or statement of income. |
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. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of December 31, 2019, there is no significant difference in the comparability of the Company’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,” “Revenue from Contracts with Customers.” “Revenue from Contracts with Customers (Topic 606).” The Company 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, and non-interest income. This ASU did not materially impact the Company’s consolidated financial statements. 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 $49.3 million and $39.1 million at December 31, 2019 and 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): Recognition and Measurement of Financial Assets and Financial Liabilities.” 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 Company’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.” In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2020, the FASB issued ASU 2020-2, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842).” In January 2020, the FASB issued ASU 2020-1, “Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and T 815 (A Consensus of the Emerging Issues Task Force),” In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” In November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Leases (Topic 842)” Targeted Improvements to Accounting for Hedging Activities,” In March 2017, the FASB issued ASU 2017-08, “ Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842).” Codification Improvements to Topic 842, Leases,” 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,” “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” “Financial Instruments—Credit Losses, Topic 326.” 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.” |
Interest Bearing Time Deposit_2
Interest Bearing Time Deposits With Other Banks (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Maturities of Certificates of Deposit | At December 31, 2019, the Company’s certificates of deposit mature as follows: (Dollars in thousands) December 31, 2019 2020 $ — 2021 249 2022 1,739 2023 747 2024 — $ 2,735 |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Available For Sale Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of December 31, 2019 and 2018: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 9,000 $ 11 $ (14 ) $ 8,997 U.S. Government agency small business administration pools guaranteed by SBA 2,760 — (20 ) 2,740 Collateralized mortgage obligations issued by the FHLMC 986 — (6 ) 980 Residential mortgage backed securities 3,186 4 (2 ) 3,188 Municipal bonds 28,138 800 (58 ) 28,880 $ 44,070 $ 815 $ (100 ) $ 44,785 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 24,219 $ 8 $ (500 ) $ 23,727 Residential mortgage backed securities 1,375 — (48 ) 1,327 Municipal bonds 14,489 39 (139 ) 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 securities at December 31, 2019 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2019 Amortized Cost Fair Value (Dollars in thousands) Due after one year through five years $ 8,000 $ 7,987 Due after five years through ten years 2,840 2,861 Due after ten years 26,298 27,029 Total U.S. Government-sponsored enterprises obligations and municipal bonds 37,138 37,877 U.S. Government agency small business pools guaranteed by SBA 2,760 2,740 Collateralized mortgage obligations issued by the FHLMC 986 980 Residential mortgage-backed securities 3,186 3,188 Total $ 44,070 $ 44,785 |
Summary of sales proceeds and gross realized gains and losses on available for sale securities | Sales proceeds and gross realized gains and losses on available for sale securities were as follows for the years ended December 31: December 31, 2019 2018 2017 (Dollars in thousands) Sales proceeds $ 7,450 $ 1,547 $ 24,969 Gross realized gains 72 6 262 Gross realized losses (23 ) (7 ) (84 ) Net realized gains (losses) $ 49 $ (1 ) $ 178 |
Summary of gross unrealized losses and fair value for those investments with unrealized losses | The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2019 and 2018. Less than 12 Months More than 12 Months Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) December 31, 2019 U.S. Government sponsored enterprises obligations 2 $ 1,995 $ (5 ) 1 $ 1,991 $ (9 ) $ 3,986 $ (14 ) U.S. Government agency small business administration pools guaranteed by SBA 2 2,740 (20 ) — — — 2,740 (20 ) Collateralized mortgage obligations issued by the FHLMC 1 980 (6 ) — — — 980 (6 ) Residential mortgage backed securities 1 999 (2 ) — — — 999 (2 ) Municipal bonds 8 4,052 (58 ) — — — 4,052 (58 ) 14 $ 10,766 $ (91 ) 1 $ 1,991 $ (9 ) $ 12,757 $ (100 ) December 31, 2018 U.S. Government sponsored enterprises obligations 4 $ 4,937 $ (32 ) 15 $ 16,781 $ (468 ) $ 21,718 $ (500 ) Residential mortgage backed securities 1 1,328 (48 ) — — — 1,328 (48 ) Municipal bonds 13 6,013 (62 ) 9 4,051 (77 ) 10,064 (139 ) 18 $ 12,278 $ (142 ) 24 $ 20,832 $ (545 ) $ 33,110 $ (687 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consisted of the following at December 31: December 31, 2019 December 31, 2018 (Dollars in thousands) Commercial real estate (CRE) $ 70,194 $ 63,853 Multifamily (MF) 4,888 4,928 Commercial and industrial (C+I) 24,676 21,990 Acquisition, development, and land (ADL) 18,844 15,580 1-4 family residential (RES) 213,322 201,759 Home equity loans and lines of credit (HELOC) 10,123 11,151 Consumer (CON) 1,752 1,295 Total loans 343,799 320,556 Net deferred loan costs 1,056 866 Allowance for loan losses (2,875 ) (2,806 ) Total loans, net $ 341,980 $ 318,616 |
Schedule Of Allowance For Loans And Leases Receivable Classification | Transactions in the Allowance for loan losses (“ALL”) for the years ended December 31, 2019, 2018 and 2017 by portfolio segment are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2016 $ 424 $ 46 $ 178 $ 200 $ 1,312 $ 249 $ 24 $ 244 $ 2,677 Provision for loan losses (57 ) (15 ) (9 ) 137 317 (179 ) (14 ) (20 ) 160 Charge-offs — — — (34 ) — — — — (34 ) Recoveries — — — — — — 1 — 1 Balance, December 31, 2017 367 31 169 303 1,629 70 11 224 2,804 Balance, December 31, 2017 367 31 169 303 1,629 70 11 224 2,804 Provision for loan losses 193 (9 ) 62 (215 ) (36 ) (1 ) (5 ) 11 — Charge-offs — — — — — — — — — Recoveries — — 1 — — — 1 — 2 Balance, December 31, 2018 560 22 232 88 1,593 69 7 235 2,806 Balance, December 31, 2018 560 22 232 88 1,593 69 7 235 2,806 Provision for loan losses 221 1 151 57 (108 ) (17 ) 27 (232 ) 100 Charge-offs — — (35 ) — — — (17 ) — (52 ) Recoveries — — 2 — 18 — 1 — 21 Balance at December 31, 2019 $ 781 $ 23 $ 350 $ 145 $ 1,503 $ 52 $ 18 $ 3 $ 2,875 As of December 31, 2019 and 2018, information about loans and the ALL by portfolio segment are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total December 31, 2019 Loan Balances Individually evaluated for impairment $ 109 $ — $ 996 $ — $ 66 $ — $ — $ — $ 1,171 Collectively evaluated for impairment 70,085 4,888 23,680 18,844 213,256 10,123 1,752 — 342,628 Total $ 70,194 $ 4,888 $ 24,676 $ 18,844 $ 213,322 $ 10,123 $ 1,752 $ — $ 343,799 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 781 23 350 145 1,503 52 18 3 2,875 Total $ 781 $ 23 $ 350 $ 145 $ 1,503 $ 52 $ 18 $ 3 $ 2,875 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 560 22 232 88 1,593 69 7 235 2,806 Total $ 560 $ 22 $ 232 $ 88 $ 1,593 $ 69 $ 7 $ 235 $ 2,806 |
Past Due Financing Receivables | The following is an aged analysis of past due loans by portfolio segment as of December 31, 2019: 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans (Dollars in thousands) CRE $ — $ — $ — $ — $ 70,194 $ 70,194 $ — MF — — — — 4,888 4,888 — C+I — — 996 996 23,680 24,676 996 ADL — — — — 18,844 18,844 — RES — 19 66 85 213,237 213,322 66 HELOC — — — — 10,123 10,123 — CON — — — — 1,752 1,752 — $ — $ 19 $ 1,062 $ 1,081 $ 342,718 $ 343,799 $ 1,062 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2018: 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans (Dollars in thousands) CRE $ 93 $ — $ — $ 93 $ 63,760 $ 63,853 $ — MF — — — — 4,928 4,928 — C+I — — — — 21,990 21,990 — ADL — — — — 15,580 15,580 — RES 255 — 68 323 201,436 201,759 68 HELOC 100 — — 100 11,051 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 and for the year ended December 31, 2019, 2018 and 2017: (Dollars in thousands) Recorded Carrying Value Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2019 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I 996 1,057 — 344 36 ADL — — — — — RES 66 66 — 67 — HELOC — — — — — CON — — — — — Total impaired loans $ 1,062 $ 1,123 $ — $ 411 $ 36 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 December 31, 2017 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL 1,203 1,203 — 407 36 RES — — — 54 6 HELOC — — — — — CON — — — — — Total impaired loans $ 1,203 $ 1,203 $ — $ 461 $ 42 |
Financing Receivble Credit Quality Indicators | The following presents the internal risk rating of loans by portfolio segment as of December 31, 2019: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 70,085 $ — $ 109 $ 70,194 MF 4,888 — — 4,888 C+I 22,208 2,166 302 24,676 ADL 18,844 — — 18,844 RES 213,256 — 66 213,322 HELOC 10,123 — — 10,123 CON 1,752 — — 1,752 Total $ 341,156 $ 2,166 $ 477 $ 343,799 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2018: (Dollars in thousands) Pass Special Mention 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 |
Activity of Loans | For the year ended December 31, 2019, 2018 and 2017, activity in these loans was as follows: December 31, (Dollars in thousands) 2019 2018 2017 Loans outstanding – beginning of period $ 4,483 $ 4,369 $ 4,560 Principal payments (412 ) (308 ) (424 ) Advances 1,160 422 233 Loans outstanding – end of period $ 5,231 $ 4,483 $ 4,369 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following summarizes activity in mortgage servicing rights for the years ended December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Balance, beginning of year $ 479 $ 473 Net additions 61 47 Change in fair value due to change in assumptions (143 ) (41 ) Balance, end of year $ 397 $ 479 |
Land, Buildings and Equipment (
Land, Buildings and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Land, Building and Equipment | Land, building and equipment consisted of the following at December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Land $ 995 $ 995 Buildings 3,167 3,167 Building & leasehold improvements 3,812 3,786 Furniture, fixtures and equipment 4,094 3,837 12,068 11,785 Less accumulated depreciation (6,730 ) (6,204 ) $ 5,338 $ 5,581 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposit Liabilities | Deposits consisted of the following at December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 NOW and demand deposits $ 115,024 $ 109,580 Money market deposits 65,611 60,952 Savings deposits 39,962 41,294 Time deposits of $250,000 and greater 13,481 13,325 Time deposits less than $250,000 47,538 49,295 $ 281,616 $ 274,446 |
Maturities of Time Deposits | At December 31, 2019, the scheduled maturities of time deposits were as follows: (Dollars in thousands) Total 2020 $ 48,334 2021 8,140 2022 3,644 2023 462 2024 439 $ 61,019 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | A summary of borrowings from the FHLB are as follows: December 31, 2019 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 44,907 2020 1.77% to 2.19 % – fixed 2,262 2022 0.00% – fixed 18,800 2024 0.00% to 1.69% – fixed 250 2028 0.00% – fixed $ 66,219 December 31, 2018 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 73,475 2019 2.54% to 2.68% – fixed 2,262 2022 0.00% – fixed $ 75,737 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Current and Deferred Components of Income Tax Expense | The current and deferred components of income tax expense consisted of the following for the years ended December 31, 2019, 2018 and 2017: December 31, 2019 December 31, 2018 December 31, 2017 Federal State Total Federal State Total Federal State Total (Dollars in thousands) Current $ (24 ) $ 150 $ 126 $ 202 $ 41 $ 243 $ 332 $ 43 $ 375 Deferred (76 ) (239 ) (315 ) (11 ) — (11 ) 326 — 326 $ (100 ) $ (89 ) $ (189 ) $ 191 $ 41 $ 232 $ 658 $ 43 $ 701 |
Schedule of Reasons for Differences in Amount Computed by U.S. Federal Income Tax Rates | Total income tax expense is different from the amounts computed by applying the U.S. Federal income tax rates in effect to income before income taxes. The reasons for these differences are as follows for the years ended December 31, 2019, 2018 and 2017: December 31, 2019 December 31, 2018 December 31, 2017 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income (Dollars in thousands) Computed “expected” tax expense $ (56 ) (21.0 )% $ 276 21.0 % $ 548 34.0 % State tax, net of federal tax benefit (102 ) (38.1 ) 32 2.5 28 1.8 BOLI income (23 ) (8.6 ) (25 ) (1.9 ) (39 ) (2.4 ) Valuation allowance 103 38.4 — — — — Income on tax exempt securities (120 ) (44.8 ) — — — — Other 9 3.4 (51 ) (3.9 ) (95 ) (5.9 ) Tax Act expense — — — — 259 16.0 $ (189 ) (70.7 )% $ 232 17.7 % $ 701 43.5 % |
Schedule of Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 795 $ 776 Available-for-sale securities — 174 Deferred compensation agreements 465 422 Contribution carryforward 206 — State tax credit carryforward 156 — Other 45 48 Subtotal 1,667 1,420 Less: valuation allowance (103 ) — Total deferred tax assets 1,564 1,420 Deferred tax liabilities: Depreciation (227 ) (258 ) Available-for-sale securities (194 ) — Prepaids (24 ) (16 ) Deferred loan origination fees (286 ) (236 ) Mortgage servicing rights (107 ) (131 ) Total deferred tax liabilities (838 ) (641 ) Net deferred tax assets, included in other assets $ 726 $ 779 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Company Compensation Expense for the ESOP | the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan December 31, 2019 Shares held by the ESOP include the following: Allocated — Committed to be allocated 11,924 Unallocated 226,549 Total 238,473 |
Schedule of Funded Status Valuation Report Percentage | The funded status (fair value of plan assets divided by funding target) as of July 1, 2019 is as follows: 2019 Valuation Report 92.61 % (1) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 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 in 2019, 2018 and 2017 follows: Year Ended December 31, Reclassification Adjustment 2019 2018 2017 Affected Line Item in Statements of Income (Dollars in thousands) (Gains) losses on securities available for sale $ (49 ) $ 1 $ (178 ) Securities gains (losses), net Tax effect 13 — 71 Income tax (benefit) expense $ (36 ) $ 1 $ (107 ) Net (loss) income Net amortization of premium on securities $ 103 $ 131 $ 166 Interest on debt securities Tax effect (28 ) (36 ) (66 ) Income tax (benefit) expense $ 75 $ 95 $ 100 Net (loss) income |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments With Off Balance Sheet Risk Commitment And Contingencies [Abstract] | |
Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk | Notional amounts of financial instruments with off-balance sheet credit risk are approximately as follows as of December 31: (Dollars in thousands) December 31, 2019 December 31, 2018 Unadvanced portions of loans $ 36,111 $ 34,396 Commitments to originate loans 12,625 12,692 Standby letters of credit 120 278 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 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. Minimum Capital Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Fully Phased-In Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2019 Total Capital (to risk- weighted assets) $ 49,259 18.52 % $ 21,278 8.00 % $ 27,928 10.50 % Tier I Capital (to risk- weighted assets) 46,321 17.41 15,961 6.00 22,611 8.50 Tier I Capital (to average assets) 46,321 11.41 16,236 4.00 16,236 4.00 Common Equity Tier 1 (to risk-weighted assets) 46,321 17.41 11,971 4.50 18,621 7.00 Minimum Capital Minimum To Be Well Capitalized Under Prompt Corrective Actual Requirement Action Provisions 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 Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Minimum Capital Required For Capital Adequacy Plus Capital Actual Basel III Phase-In Schedule Conservation Buffer Fully 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) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 Total Level 1 Level 2 Level 3 December 31, 2019 (Dollars in thousands) Mortgage servicing rights $ 397 $ — $ — $ 397 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 8,997 — 8,997 — U.S Government agency small business administration pools guaranteed by the SBA 2,740 — 2,740 Collateralized mortgage obligations issued by the FHLMC 980 — 980 — Mortgage-backed securities 3,188 — 3,188 — Municipal bonds 28,880 — 28,880 — $ 45,182 $ — $ 44,785 $ 397 Total Level 1 Level 2 Level 3 December 31, 2018 (Dollars in thousands) 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, Nonrecurring | The following summarizes assets measured at fair value on a nonrecurring basis at December 31, 2019 and 2018: Fair Value Measurements at Reporting Date Using: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 December 31, 2019 Impaired Loans $ 996 $ — $ — $ 996 December 31, 2018 Impaired Loans $ — $ — $ — $ — |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at December 31, 2019 and 2018: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input December 31, 2019 Impaired Loans $ 996 Market Approach Appraisal of Collateral Selling Costs Provision December 31, 2018 Impaired Loans $ — NA NA |
Fair Value Measurements, Recurring and Nonrecurring | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at December 31 are as follows: Carrying Amount Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2019 Financial Assets: Cash and due from banks $ 4,009 $ 4,009 $ 4,009 $ — $ — Interest-bearing time deposits with other banks 2,735 2,735 — 2,735 — Federal Home Loan Bank stock 2,971 2,971 — 2,971 — Bank-owned life insurance 4,267 4,267 — 4,267 — Loans, net 341,980 336,847 — — 336,847 Accrued interest receivable 1,235 1,235 1,235 — — Financial Liabilities: Deposits $ 281,616 $ 281,707 $ 220,596 $ 61,111 $ — Advances from Federal Home Loan Bank 66,219 66,060 — 66,060 — Mortgagors’ tax escrow 586 586 — 586 — 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 318,616 307,582 — — 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 — |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | 2019 Quarters Fourth Third Second First (In thousands, except per share data) Interest and dividend income $ 3,875 $ 3,921 $ 3,886 $ 3,766 Interest expense 856 891 1,067 1,029 Net interest and dividend income 3,019 3,030 2,819 2,737 Provision for loan losses 75 — 25 — Net interest income after provision for loan losses 2,944 3,030 2,794 2,737 Non-interest income 427 444 358 303 Non-interest expense 3,207 4,307 2,933 2,858 Income (loss) before income tax (benefit) expense 164 (833 ) 219 182 Income tax (benefit) expense 21 (220 ) 6 4 Net income (loss) $ 143 $ (613 ) $ 213 $ 178 Share Data: Average Shares Outstanding, Basic 5,856,951 4,833,426 N/A N/A Average Shares Outstanding, Diluted 5,856,951 4,833,426 N/A N/A Basic Earnings (Loss) Per Share $ 0.02 $ (0.13 ) N/A N/A Diluted Earnings (Loss) Per share $ 0.02 $ (0.13 ) N/A N/A 2018 Quarters Fourth Third Second First (In thousands, except per share data) Interest and dividend income $ 3,774 $ 3,605 $ 3,502 $ 3,383 Interest expense 930 830 757 628 Net interest and dividend income 2,844 2,775 2,745 2,755 Provision (credit) for loan losses (100 ) 30 30 40 Net interest income after provision for loan losses 2,944 2,745 2,715 2,715 Non-interest income 436 373 341 400 Non-interest expense 2,980 2,783 2,756 2,838 Income before provision for income taxes 400 335 300 277 Provision for income taxes 69 62 46 55 Net income $ 331 $ 273 $ 254 $ 222 Share Data: Average Shares Outstanding, Basic N/A N/A N/A N/A Average Shares Outstanding, Diluted N/A N/A N/A N/A Basic Earnings Per Share N/A N/A N/A N/A Diluted Earnings Per share N/A N/A N/A N/A |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) - First Seacoast Bancorp (Parent) Company | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Condensed Balance Sheet | CONDENSED BALANCE SHEET December 31, 2019 (Dollars in thousands) ASSETS Cash held at First Seacoast Bank $ 9,965 Investment in First Seacoast Bank 44,613 Loan to First Seacoast Bank ESOP 2,195 Deferred tax asset 103 Other assets 190 Total assets $ 57,066 STOCKHOLDERS’ EQUITY Stockholders’ equity $ 57,066 Total stockholders’ equity $ 57,066 |
Schedule of Condensed Statements of Income | CONDENSED STATEMENTS OF INCOME For the Year Ended December 31, 2019 (Dollars in thousands) Charitable foundation contribution $ 758 Loss before income tax benefit and equity in undistributed net income of First Seacoast Bank (758 ) Income tax benefit (103 ) Net loss before equity in undistributed net income of First Seacoast Bank (655 ) Equity in undistributed net income of First Seacoast Bank 576 Net loss $ (79 ) |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2019 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (79 ) Adjustments to reconcile net loss to net cash used by operating activities: Undistributed net income of First Seacoast Bank (576 ) Deferred tax benefit (103 ) Contribution of common stock to First Seacoast Community Foundation, Inc. 609 Increase in other assets (190 ) Net cash used by operating activities (339 ) CASH FLOWS FROM BY INVESTING ACTIVITIES: Capital contribution to First Seacoast Bank (12,600 ) ESOP loan, net of principal payments (2,195 ) Net cash used by investing activities (14,795 ) CASH FLOWS FROM BY FINANCING ACTIVITIES: Proceeds from the issuance of common stock 25,099 Net cash provided by financing activities 25,099 Net increase in cash 9,965 Cash at beginning of year — Cash at end of year $ 9,965 |
The Company - Additional Inform
The Company - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |
Jul. 17, 2019USD ($)shares | Dec. 31, 2019Service$ / sharesshares | Dec. 31, 2018shares | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Stock issued during period,initial public offer | 2,676,740 | ||
Repurchase of share ESOP | 238,473 | ||
Employee stock ownership price per share | $ / shares | $ 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 parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc. (the “Foundation”), a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. The Company’s common stock began trading on the NASDAQ Capital Market under the symbol “FSEA” on July 17, 2019. Pursuant to the Plan of Reorganization, the Bank adopted an employee stock ownership plan (“ESOP”), which purchased 238,473 shares of common stock in the stock offering with the proceeds of a loan from the Company. As a result of the Reorganization, a total of 6,083,500 shares of common stock of the Company are issued and outstanding, of which 55% are issued to the MHC, 44% were sold to the Bank’s eligible members, the ESOP, and certain other persons in the stock offering and 1% were contributed to the Foundation. | ||
Stock issued to mutual holding company as part of reorganization | 3,345,925 | 3,345,925 | |
Stock issued during period shares to charitable organisations | 60,835 | 60,835 | |
Cash transferred to charitable foundation as part of reorganization | $ | $ 150,000 | ||
Common stock, shares, issued | 6,083,500 | 6,083,500 | 0 |
ESOP,unearned compensation, shares | 238,473 | ||
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% | ||
Stock issuance cost | $ | $ 1,600,000 | ||
Number of core services | Service | 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)Plan | Dec. 31, 2017USD ($)Plan | |
Troubled debt restructured | $ 0 | $ 0 | $ 0 |
Reserve for unfunded loan commitments | $ 18,000 | $ 18,000 | |
Number of defined contribution plans | Plan | 1 | 2 | |
Defined contribution plan name | 401(k) | ||
Uncertain tax positions | $ 0 | ||
FICO Score, Between 600 and 700 | |||
Originate loans with loan-to-value ratios | 80.00% | ||
Maximum [Member] | |||
Certificates of deposit term | 4 years | ||
Life insurance policy with individual carrier as a percentage of tier one capital | 15.00% | ||
Total cash surrender value of life insurance policies as a percentage of tier one capital | 25.00% |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Emerging Growth of Company Status | (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering; (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). | |
Assets Under Management | $ 49.3 | $ 39.1 |
Interest Bearing Time Deposit_3
Interest Bearing Time Deposits With Other Banks - Schedule of Maturities of Certificates of Deposit (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking And Thrift [Abstract] | ||
2021 | $ 249 | |
2022 | 1,739 | |
2023 | 747 | |
Certificates of deposit | $ 2,735 | $ 6,461 |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of amortized cost and fair value of securities available-for-sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | $ 44,070 | $ 40,083 |
Gross Unrealized Gains | 815 | 47 |
Gross Unrealized Losses | (100) | (687) |
Fair Value | 44,785 | 39,443 |
U.S. Government-sponsored enterprises obligations [Member] | ||
Amortized Cost | 9,000 | 24,219 |
Gross Unrealized Gains | 11 | 8 |
Gross Unrealized Losses | (14) | (500) |
Fair Value | 8,997 | 23,727 |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Amortized Cost | 2,760 | |
Gross Unrealized Losses | (20) | |
Fair Value | 2,740 | |
Collateralized mortgage obligations issued by the FHLMC [Member] | ||
Amortized Cost | 986 | |
Gross Unrealized Losses | (6) | |
Fair Value | 980 | |
Residential mortgage backed securities [Member] | ||
Amortized Cost | 3,186 | 1,375 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (2) | (48) |
Fair Value | 3,188 | 1,327 |
Municipal bonds [Member] | ||
Amortized Cost | 28,138 | 14,489 |
Gross Unrealized Gains | 800 | 39 |
Gross Unrealized Losses | (58) | (139) |
Fair Value | $ 28,880 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Due after one year through five years, Amortized Cost | $ 8,000 | |
Due after five years through ten years, Amortized Cost | 2,840 | |
Due after ten years, Amortized Cost | 26,298 | |
Total U.S. Government-sponsored enterprises obligations and municipal bonds, Amortized Cost | 37,138 | |
Mortgage-backed securities, Amortized Cost | 44,070 | $ 40,083 |
Due after one year through five years, Fair Value | 7,987 | |
Due after five years through ten years, Fair Value | 2,861 | |
Due after ten years, Fair Value | 27,029 | |
Total U.S. Government-sponsored enterprises obligations and municipal bonds, Fair Value | 37,877 | |
Mortgage-backed securities, Fair Value | 44,785 | 39,443 |
U.S. Government agency small business pools guaranteed by SBA [Member] | ||
Mortgage-backed securities, Amortized Cost | 2,760 | |
Mortgage-backed securities, Fair Value | 2,740 | |
Residential mortgage-backed securities | ||
Mortgage-backed securities, Amortized Cost | 3,186 | 1,375 |
Mortgage-backed securities, Fair Value | 3,188 | $ 1,327 |
Collateralized mortgage obligations issued by the FHLMC [Member] | ||
Mortgage-backed securities, Amortized Cost | 986 | |
Mortgage-backed securities, Fair Value | $ 980 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Summary of sales proceeds and gross realized gains and losses on available for sale securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Available For Sale Securities [Abstract] | |||
Sales proceeds | $ 7,450 | $ 1,547 | $ 24,969 |
Gross realized gains | 72 | 6 | 262 |
Gross realized losses | (23) | (7) | (84) |
Net realized gains (losses) | $ 49 | $ (1) | $ 178 |
Securities Available-for-Sale_4
Securities Available-for-Sale - Summary of gross unrealized losses and fair value for those investments with unrealized losses (Detail) $ in Thousands | Dec. 31, 2019USD ($)Number | Dec. 31, 2018USD ($)Number |
Less than 12 Months, Number of Securities | Number | 14 | 18 |
Less than 12 Months, Fair Value | $ 10,766 | $ 12,278 |
Less than 12 Months, Unrealized Losses | $ (91) | $ (142) |
More than 12 Months, Number of Securities | Number | 1 | 24 |
More than 12 Months, Fair Value | $ 1,991 | $ 20,832 |
More than 12 Months, Unrealized Losses | (9) | (545) |
Total, Fair Value | 12,757 | 33,110 |
Total, Unrealized Losses | $ (100) | $ (687) |
U.S. Government-sponsored enterprises obligations [Member] | ||
Less than 12 Months, Number of Securities | Number | 2 | 4 |
Less than 12 Months, Fair Value | $ 1,995 | $ 4,937 |
Less than 12 Months, Unrealized Losses | $ (5) | $ (32) |
More than 12 Months, Number of Securities | Number | 1 | 15 |
More than 12 Months, Fair Value | $ 1,991 | $ 16,781 |
More than 12 Months, Unrealized Losses | (9) | (468) |
Total, Fair Value | 3,986 | 21,718 |
Total, Unrealized Losses | $ (14) | $ (500) |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Less than 12 Months, Number of Securities | Number | 2 | |
Less than 12 Months, Fair Value | $ 2,740 | |
Less than 12 Months, Unrealized Losses | (20) | |
Total, Fair Value | 2,740 | |
Total, Unrealized Losses | $ (20) | |
Collateralized mortgage obligations issued by the FHLMC [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | |
Less than 12 Months, Fair Value | $ 980 | |
Less than 12 Months, Unrealized Losses | (6) | |
Total, Fair Value | 980 | |
Total, Unrealized Losses | $ (6) | |
Residential mortgage backed securities [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | 1 |
Less than 12 Months, Fair Value | $ 999 | $ 1,328 |
Less than 12 Months, Unrealized Losses | (2) | (48) |
Total, Fair Value | 999 | 1,328 |
Total, Unrealized Losses | $ (2) | $ (48) |
Municipal bonds [Member] | ||
Less than 12 Months, Number of Securities | Number | 8 | 13 |
Less than 12 Months, Fair Value | $ 4,052 | $ 6,013 |
Less than 12 Months, Unrealized Losses | (58) | $ (62) |
More than 12 Months, Number of Securities | Number | 9 | |
More than 12 Months, Fair Value | $ 4,051 | |
More than 12 Months, Unrealized Losses | (77) | |
Total, Fair Value | 4,052 | 10,064 |
Total, Unrealized Losses | $ (58) | $ (139) |
Securities Available-for-Sale_5
Securities Available-for-Sale - Additional Information (Detail) - Security | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available For Sale Securities [Abstract] | ||
Number of holdings more than ten percentage of fair value of securities issued by single issuer | 0 | 0 |
Loans - Loans Consisted (Detail
Loans - Loans Consisted (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Total Loans | $ 343,799 | $ 320,556 | ||
Net deferred loan costs | 1,056 | 866 | ||
Allowance for loan losses | (2,875) | (2,806) | $ (2,804) | $ (2,677) |
Net loans | 341,980 | 318,616 | ||
CRE [Member] | ||||
Total Loans | 70,194 | 63,853 | ||
Allowance for loan losses | (781) | (560) | (367) | (424) |
MF [Member] | ||||
Total Loans | 4,888 | 4,928 | ||
Allowance for loan losses | (23) | (22) | (31) | (46) |
C+I [Member] | ||||
Total Loans | 24,676 | 21,990 | ||
Allowance for loan losses | (350) | (232) | (169) | (178) |
ADL [Member] | ||||
Total Loans | 18,844 | 15,580 | ||
Allowance for loan losses | (145) | (88) | (303) | (200) |
RES [Member] | ||||
Total Loans | 213,322 | 201,759 | ||
Allowance for loan losses | (1,503) | (1,593) | (1,629) | (1,312) |
HELOC [Member] | ||||
Total Loans | 10,123 | 11,151 | ||
Allowance for loan losses | (52) | (69) | (70) | (249) |
CON [Member] | ||||
Total Loans | 1,752 | 1,295 | ||
Allowance for loan losses | $ (18) | $ (7) | $ (11) | $ (24) |
Loans - Transactions In The All
Loans - Transactions In The Allowance For Loan Losses ("ALL") (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance | $ 2,804 | $ 2,806 | $ 2,804 | $ 2,677 | |||||
Provision for loan losses | $ 75 | $ 25 | $ (100) | $ 30 | $ 30 | 40 | 100 | 160 | |
Charge-offs | (52) | (34) | |||||||
Recoveries | 21 | 2 | 1 | ||||||
Balance | 2,875 | 2,806 | 2,875 | 2,806 | 2,804 | ||||
CRE [Member] | |||||||||
Balance | 367 | 560 | 367 | 424 | |||||
Provision for loan losses | 221 | 193 | (57) | ||||||
Balance | 781 | 560 | 781 | 560 | 367 | ||||
MF [Member] | |||||||||
Balance | 31 | 22 | 31 | 46 | |||||
Provision for loan losses | 1 | (9) | (15) | ||||||
Balance | 23 | 22 | 23 | 22 | 31 | ||||
C+I [Member] | |||||||||
Balance | 169 | 232 | 169 | 178 | |||||
Provision for loan losses | 151 | 62 | (9) | ||||||
Charge-offs | (35) | ||||||||
Recoveries | 2 | 1 | |||||||
Balance | 350 | 232 | 350 | 232 | 169 | ||||
ADL [Member] | |||||||||
Balance | 303 | 88 | 303 | 200 | |||||
Provision for loan losses | 57 | (215) | 137 | ||||||
Charge-offs | (34) | ||||||||
Balance | 145 | 88 | 145 | 88 | 303 | ||||
RES [Member] | |||||||||
Balance | 1,629 | 1,593 | 1,629 | 1,312 | |||||
Provision for loan losses | (108) | (36) | 317 | ||||||
Recoveries | 18 | ||||||||
Balance | 1,503 | 1,593 | 1,503 | 1,593 | 1,629 | ||||
HELOC [Member] | |||||||||
Balance | 70 | 69 | 70 | 249 | |||||
Provision for loan losses | (17) | (1) | (179) | ||||||
Balance | 52 | 69 | 52 | 69 | 70 | ||||
CON [Member] | |||||||||
Balance | 11 | 7 | 11 | 24 | |||||
Provision for loan losses | 27 | (5) | (14) | ||||||
Charge-offs | (17) | ||||||||
Recoveries | 1 | 1 | 1 | ||||||
Balance | 18 | 7 | 18 | 7 | 11 | ||||
Unallocated [Member] | |||||||||
Balance | $ 224 | 235 | 224 | 244 | |||||
Provision for loan losses | (232) | 11 | (20) | ||||||
Balance | $ 3 | $ 235 | $ 3 | $ 235 | $ 224 |
Loans - Information About Loans
Loans - Information About Loans And The ALL By Portfolio Segment Are Summarized (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Individually evaluated for impairment | $ 1,171 | $ 1,579 | ||
Collectively evaluated for impairment | 342,628 | 318,977 | ||
Total | 343,799 | 320,556 | ||
Collectively evaluated for impairment | 2,875 | 2,806 | ||
Total | 2,875 | 2,806 | $ 2,804 | $ 2,677 |
CRE [Member] | ||||
Individually evaluated for impairment | 109 | 244 | ||
Collectively evaluated for impairment | 70,085 | 63,609 | ||
Total | 70,194 | 63,853 | ||
Collectively evaluated for impairment | 781 | 560 | ||
Total | 781 | 560 | 367 | 424 |
MF [Member] | ||||
Collectively evaluated for impairment | 4,888 | 4,928 | ||
Total | 4,888 | 4,928 | ||
Collectively evaluated for impairment | 23 | 22 | ||
Total | 23 | 22 | 31 | 46 |
C+I [Member] | ||||
Individually evaluated for impairment | 996 | 1,267 | ||
Collectively evaluated for impairment | 23,680 | 20,723 | ||
Total | 24,676 | 21,990 | ||
Collectively evaluated for impairment | 350 | 232 | ||
Total | 350 | 232 | 169 | 178 |
ADL [Member] | ||||
Collectively evaluated for impairment | 18,844 | 15,580 | ||
Total | 18,844 | 15,580 | ||
Collectively evaluated for impairment | 145 | 88 | ||
Total | 145 | 88 | 303 | 200 |
RES [Member] | ||||
Individually evaluated for impairment | 66 | 68 | ||
Collectively evaluated for impairment | 213,256 | 201,691 | ||
Total | 213,322 | 201,759 | ||
Collectively evaluated for impairment | 1,503 | 1,593 | ||
Total | 1,503 | 1,593 | 1,629 | 1,312 |
HELOC [Member] | ||||
Collectively evaluated for impairment | 10,123 | 11,151 | ||
Total | 10,123 | 11,151 | ||
Collectively evaluated for impairment | 52 | 69 | ||
Total | 52 | 69 | 70 | 249 |
CON [Member] | ||||
Collectively evaluated for impairment | 1,752 | 1,295 | ||
Total | 1,752 | 1,295 | ||
Collectively evaluated for impairment | 18 | 7 | ||
Total | 18 | 7 | 11 | 24 |
Unallocated [Member] | ||||
Collectively evaluated for impairment | 3 | 235 | ||
Total | $ 3 | $ 235 | $ 224 | $ 244 |
Loans - Analysis Of Past Due Lo
Loans - Analysis Of Past Due Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total Past Due | $ 1,081 | $ 516 |
Total Current | 342,718 | 320,040 |
Total | 343,799 | 320,556 |
Non-Accrual Loans | 1,062 | 68 |
30-59 Days Past Due [Member] | ||
Total Past Due | 448 | |
60-89 Days Past Due [Member] | ||
Total Past Due | 19 | |
Greater than 90 Days [Member] | ||
Total Past Due | 1,062 | 68 |
CRE [Member] | ||
Total Past Due | 93 | |
Total Current | 70,194 | 63,760 |
Total | 70,194 | 63,853 |
CRE [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 93 | |
MF [Member] | ||
Total Current | 4,888 | 4,928 |
Total | 4,888 | 4,928 |
C+I [Member] | ||
Total Past Due | 996 | |
Total Current | 23,680 | 21,990 |
Total | 24,676 | 21,990 |
Non-Accrual Loans | 996 | |
C+I [Member] | Greater than 90 Days [Member] | ||
Total Past Due | 996 | |
ADL [Member] | ||
Total Current | 18,844 | 15,580 |
Total | 18,844 | 15,580 |
RES [Member] | ||
Total Past Due | 85 | 323 |
Total Current | 213,237 | 201,436 |
Total | 213,322 | 201,759 |
Non-Accrual Loans | 66 | 68 |
RES [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 255 | |
RES [Member] | 60-89 Days Past Due [Member] | ||
Total Past Due | 19 | |
RES [Member] | Greater than 90 Days [Member] | ||
Total Past Due | 66 | 68 |
HELOC [Member] | ||
Total Past Due | 100 | |
Total Current | 10,123 | 11,051 |
Total | 10,123 | 11,151 |
HELOC [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 100 | |
CON [Member] | ||
Total Current | 1,752 | 1,295 |
Total | $ 1,752 | $ 1,295 |
Loans - Provides Information On
Loans - Provides Information On Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Recorded Carrying Value | $ 1,062 | $ 68 | $ 1,203 |
Unpaid Principal Balance | 1,123 | 68 | 1,203 |
Average Recorded Investment | 411 | 616 | 461 |
Interest Income Recognized | 36 | 3 | 42 |
CRE [Member] | |||
Average Recorded Investment | 112 | ||
C+I [Member] | |||
Recorded Carrying Value | 996 | ||
Unpaid Principal Balance | 1,057 | ||
Average Recorded Investment | 344 | ||
Interest Income Recognized | 36 | ||
ADL [Member] | |||
Recorded Carrying Value | 1,203 | ||
Unpaid Principal Balance | 1,203 | ||
Average Recorded Investment | 470 | 407 | |
Interest Income Recognized | 36 | ||
RES [Member] | |||
Recorded Carrying Value | 66 | 68 | |
Unpaid Principal Balance | 66 | 68 | |
Average Recorded Investment | $ 67 | 34 | 54 |
Interest Income Recognized | $ 3 | $ 6 |
Loans - Internal Risk Rating Of
Loans - Internal Risk Rating Of Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total Loans | $ 343,799 | $ 320,556 |
Pass [Member] | ||
Total Loans | 341,156 | 317,962 |
Special Mention [Member] | ||
Total Loans | 2,166 | 1,015 |
Substandard [Member] | ||
Total Loans | 477 | 1,579 |
CRE [Member] | ||
Total Loans | 70,194 | 63,853 |
CRE [Member] | Pass [Member] | ||
Total Loans | 70,085 | 62,873 |
CRE [Member] | Special Mention [Member] | ||
Total Loans | 736 | |
CRE [Member] | Substandard [Member] | ||
Total Loans | 109 | 244 |
MF [Member] | ||
Total Loans | 4,888 | 4,928 |
MF [Member] | Pass [Member] | ||
Total Loans | 4,888 | 4,928 |
C+I [Member] | ||
Total Loans | 24,676 | 21,990 |
C+I [Member] | Pass [Member] | ||
Total Loans | 22,208 | 20,700 |
C+I [Member] | Special Mention [Member] | ||
Total Loans | 2,166 | 23 |
C+I [Member] | Substandard [Member] | ||
Total Loans | 302 | 1,267 |
ADL [Member] | ||
Total Loans | 18,844 | 15,580 |
ADL [Member] | Pass [Member] | ||
Total Loans | 18,844 | 15,580 |
RES [Member] | ||
Total Loans | 213,322 | 201,759 |
RES [Member] | Pass [Member] | ||
Total Loans | 213,256 | 201,435 |
RES [Member] | Special Mention [Member] | ||
Total Loans | 256 | |
RES [Member] | Substandard [Member] | ||
Total Loans | 66 | 68 |
HELOC [Member] | ||
Total Loans | 10,123 | 11,151 |
HELOC [Member] | Pass [Member] | ||
Total Loans | 10,123 | 11,151 |
CON [Member] | ||
Total Loans | 1,752 | 1,295 |
CON [Member] | Pass [Member] | ||
Total Loans | $ 1,752 | $ 1,295 |
Loans - Activity of Loans (Deta
Loans - Activity of Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans And Leases Receivable Related Parties Disclosure [Abstract] | |||
Loans outstanding – beginning of period | $ 4,483 | $ 4,369 | $ 4,560 |
Principal payments | (412) | (308) | (424) |
Advances | 1,160 | 422 | 233 |
Loans outstanding – end of period | $ 5,231 | $ 4,483 | $ 4,369 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers And Servicing [Abstract] | |||
Transferred Financial Assets Principal Amount Outstanding | $ 49,300 | $ 49,200 | |
Loan servicing fee income | $ 41 | $ 131 | $ 232 |
Servicing Assets and Servicing Liabilities at Fair Value Discount Rate | 9.50% | 9.50% | |
Servicing Assets and Servicing Liabilities at Fair Value prepayment speed | 13.08% | 8.58% | |
Servicing Assets and Servicing Liabilities at Fair Value weighted average default rate | 2.48% | 3.00% |
Loan Servicing - Summary Of Act
Loan Servicing - Summary Of Activity In Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Transfers And Servicing [Abstract] | ||
Balance, beginning of year | $ 479 | $ 473 |
Net additions | 61 | 47 |
Change in fair value due to change in assumptions | (143) | (41) |
Balance, end of year | $ 397 | $ 479 |
Land, Buildings And Equipment -
Land, Buildings And Equipment - Schedule of Land, Building and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 12,068 | $ 11,785 |
Less accumulated depreciation | (6,730) | (6,204) |
Property, Plant and Equipment, Net | 5,338 | 5,581 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 995 | 995 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,167 | 3,167 |
Building and Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,812 | 3,786 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 4,094 | $ 3,837 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
NOW and demand deposits | $ 115,024 | $ 109,580 |
Money market deposits | 65,611 | 60,952 |
Savings deposits | 39,962 | 41,294 |
Time deposits of $250,000 and greater | 13,481 | 13,325 |
Time deposits less than $250,000 | 47,538 | 49,295 |
Total deposits | $ 281,616 | $ 274,446 |
Deposits - Time Deposit Maturit
Deposits - Time Deposit Maturities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits [Abstract] | |
2020 | $ 48,334 |
2021 | 8,140 |
2022 | 3,644 |
2023 | 462 |
2024 | 439 |
Total | $ 61,019 |
Deposits - Additional informati
Deposits - Additional information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits [Member] | ||
Brokered deposits | $ 0 | $ 0 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank Advances by Branch of FHLB Bank (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Principal Amounts | $ 66,219 | $ 75,737 |
Federal Home Loan Bank Advances One [Member] | ||
Principal Amounts | $ 44,907 | $ 73,475 |
Maturity Dates | 2020 | 2019 |
Federal Home Loan Bank Advances One [Member] | Minimum [Member] | ||
Interest Rates | 1.77% | 2.54% |
Federal Home Loan Bank Advances One [Member] | Maximum [Member] | ||
Interest Rates | 2.19% | 2.68% |
Federal Home Loan Bank Advances Two [Member] | ||
Principal Amounts | $ 2,262 | $ 2,262 |
Maturity Dates | 2022 | 2022 |
Interest Rates | 0.00% | 0.00% |
Federal Home Loan Bank Advances Three [Member] | ||
Principal Amounts | $ 18,800 | |
Maturity Dates | 2024 | |
Federal Home Loan Bank Advances Three [Member] | Minimum [Member] | ||
Interest Rates | 0.00% | |
Federal Home Loan Bank Advances Three [Member] | Maximum [Member] | ||
Interest Rates | 1.69% | |
Federal Home Loan Bank Advances Four [Member] | ||
Principal Amounts | $ 250 | |
Maturity Dates | 2028 | |
Interest Rates | 0.00% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Banks unused remaining borrowing capacity | $ 81,700 | $ 72,100 |
Advances through FLHB | 66,219 | 75,737 |
Federal home loan bank maximum borrowing capacity | 3,000 | |
Fed Funds borrowing [Member] | ||
Fed funds borrowing capacity | 5,000 | |
Maturity March 5, 2020 Callable Quarterly [Member] | ||
Long-term federal home loan bank advances | $ 10,000 | |
Interest rate | 1.39% | |
Federal home loan bank, advances, callable maturity date | Mar. 5, 2020 | |
Maturity May 26, 2020 Callable Quarterly [Member] | ||
Long-term federal home loan bank advances | $ 3,000 | |
Interest rate | 1.69% | |
Federal home loan bank, advances, callable maturity date | May 26, 2020 | |
Maturity October 28, 2020 Callable Quarterly [Member] | ||
Long-term federal home loan bank advances | $ 5,000 | |
Interest rate | 1.65% | |
Federal home loan bank, advances, callable maturity date | Oct. 28, 2020 | |
New England Program [Member] | ||
Interest rate | 0.00% | |
Advances through FLHB | $ 3,300 | $ 2,300 |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current, federal | $ (24) | $ 202 | $ 332 | ||||||||
Current, state | 150 | 41 | 43 | ||||||||
Current, federal and state, total | 126 | 243 | 375 | ||||||||
Deferred, federal | (76) | (11) | 326 | ||||||||
Deferred, state | (239) | ||||||||||
Deferred, federal and state, total | (315) | (11) | 326 | ||||||||
Federal, income tax expense (benefit) | (100) | 191 | 658 | ||||||||
State, income tax expense (benefit) | (89) | 41 | 43 | ||||||||
Income tax expense (benefit) | $ 21 | $ (220) | $ 6 | $ 4 | $ 69 | $ 62 | $ 46 | $ 55 | $ (189) | $ 232 | $ 701 |
Income Taxes - Schedule of Reas
Income Taxes - Schedule of Reasons for Differences in Amount Computed by U.S. Federal Income Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed “expected” tax expense | $ (56) | $ 276 | $ 548 | ||||||||
State tax, net of federal tax benefit | (102) | 32 | 28 | ||||||||
BOLI income | (23) | (25) | (39) | ||||||||
Valuation allowance | 103 | ||||||||||
Income on tax exempt securities | (120) | ||||||||||
Other | 9 | (51) | (95) | ||||||||
Tax Act expense | 259 | ||||||||||
Income tax expense (benefit) | $ 21 | $ (220) | $ 6 | $ 4 | $ 69 | $ 62 | $ 46 | $ 55 | $ (189) | $ 232 | $ 701 |
Computed “expected” tax expense | 21.00% | 21.00% | 34.00% | ||||||||
State tax, net of federal tax benefit | 38.10% | 2.50% | 1.80% | ||||||||
BOLI income | 8.60% | (1.90%) | (2.40%) | ||||||||
Valuation allowance | (38.40%) | ||||||||||
Income on tax exempt securities | 44.80% | ||||||||||
Other | (3.40%) | (3.90%) | (5.90%) | ||||||||
Tax Act expense | 16.00% | ||||||||||
Effective income tax rate | 70.70% | 17.70% | 43.50% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 795,000 | $ 776,000 |
Available-for-sale securities | 174,000 | |
Deferred compensation agreements | 465,000 | 422,000 |
Contribution carryforward | 206,000 | |
State tax credit carryforward | 156,000 | |
Other | 45,000 | 48,000 |
Subtotal | 1,667,000 | 1,420,000 |
Less: valuation allowance | (103,000) | |
Total deferred tax assets | 1,564,000 | 1,420,000 |
Deferred tax liabilities: | ||
Depreciation | (227,000) | (258,000) |
Available-for-sale securities | (194,000) | |
Prepaids | (24,000) | (16,000) |
Deferred loan origination fees | (286,000) | (236,000) |
Mortgage servicing rights | (107,000) | (131,000) |
Total deferred tax liabilities | (838,000) | (641,000) |
Net deferred tax assets, included in other assets | $ 726,000 | $ 779,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
Carryforward of charitable contributions | $ 761,000 | ||
Valuation allowance | $ 103,000 | ||
Charitable contributions limit percentage of taxable income deduction | 10.00% | ||
Excess charitable contributions carryforwards succeeding period | 5 years | ||
Charitable contribution carryforward utilization period | 6 years | ||
Deferred tax assets, tax reserves for loan losses | $ 2,300,000 | ||
Percentage of tax reserve for loan losses used for purpose other than to absorb loan losses subject to taxation | 150.00% | ||
Reserve for loan losses of deferred tax liability not provided | $ 627,000 | ||
Amount of interest and penalties recorded | $ 0 | $ 0 | $ 0 |
Income tax expense due to enacted tax act | $ 259,000 | ||
Corporate income tax rate | 21.00% | 21.00% | 34.00% |
Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Corporate income tax rate | 35.00% | ||
New Hampshire [Member] | Business Enterprise Tax Credit Carry Forward [Member] | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carry forward | $ 126,000 | ||
Tax credit carry forward expiration year | 2029 | ||
New Hampshire [Member] | State [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | $ 919,000 | $ 202,000 | |
Net operating loss carryforwards expiration year | 2029 | 2028 |
Employee Benefits - Additional
Employee Benefits - Additional information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 17, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Number of shares committed to be released each year, ESOP | 11,924 | |||||
Stock Repurchase | 238,473 | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 174,000 | $ 116,000 | $ 133,000 | |||
Deferred Compensation Liability, Current and Noncurrent | 1,607,000 | 1,547,000 | ||||
Scenario Forecast [Member] | ||||||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | $ 270,000 | |||||
Pentegra DB Plan [Member] | ||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 270,000 | |||||
Maximum employer contribution percentage in defined benefit plan | 5.00% | |||||
Pension Cost (Reversal of Cost) | 270,000 | 374,000 | 312,000 | |||
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Liability, Defined Benefit Plan | $ 590,000 | $ 565,000 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.00% | 5.00% | ||||
Employee salary incremental percent | 5.00% | 5.00% | ||||
Defined Contribution Plan, Cost | $ 80,000 | $ 95,000 | 215,000 | |||
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member] | Former Employee | ||||||
Pension Cost (Reversal of Cost) | 0 | 25,000 | 53,000 | |||
Executive Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Pension Cost (Reversal of Cost) | 10,000 | 12,000 | 14,000 | |||
Liability, Defined Benefit Plan | $ 171,000 | $ 207,000 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | ||||
Endorsement Method Split Dollar Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Pension Cost (Reversal of Cost) | $ (26,000) | $ (20,000) | (20,000) | |||
Liability, Defined Benefit Plan | 33,000 | 58,000 | ||||
Deferred Directors Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||||
Pension Cost (Reversal of Cost) | 90,000 | 55,000 | 74,000 | |||
Liability, Defined Benefit Plan | $ 581,000 | $ 562,000 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | ||||
Deferred Compensation Liability, Current and Noncurrent | $ 233,000 | $ 154,000 | $ 88,000 | |||
First Seacoast Bank Employee Stock Ownership Plan [Member] | ||||||
Number of shares committed to be released each year, ESOP | 12,000 | |||||
Employee stock option compensation recognized | $ 109,000 | |||||
Employee stock option unallocated shares fair value | $ 2,100,000 | |||||
Employee stock option plan [Member] | ||||||
Stock Repurchase | 238,473 | |||||
Remaining Loan Term | 19 years 6 months | |||||
Percentage of Purchase price common stock | 100.00% | |||||
Remaining Principal Balance of Debt | $ 2,300,000 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Company Compensation Expense for the ESOP (Detail) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Employee Stock Ownership Plan E S O P Shares In E S O P [Abstract] | ||
Committed to be allocated | 11,924 | |
Unallocated | 226,549 | 0 |
Total | 238,473 |
Employee Benefits - Fair Value
Employee Benefits - Fair Value of Plan Assets Divided by Funding Target (Detail) | Jul. 01, 2019 | |
Pension Plan [Member] | ||
Percentage of funding status | 92.61% | [1] |
[1] | Fair value of plan assets reflects any contributions received through June 30, 2019 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |||
(Gains) losses on securities available for sale | $ (49) | $ 1 | $ (178) |
Tax effect | 13 | 71 | |
Net income | (36) | 1 | (107) |
Net amortization of premium on securities | 103 | 131 | 166 |
Tax effect | (28) | (36) | (66) |
Net income | $ 75 | $ 95 | $ 100 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies - Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Unadvanced Portions Of Loans | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | $ 36,111 | $ 34,396 |
Commitments To Originate Loans | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | 12,625 | 12,692 |
Standby Letters Of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | $ 120 | $ 278 |
Financial Instruments with Of_4
Financial Instruments with Off-Balance Sheet Risk, Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Instruments With Off Balance Sheet Risk Commitment And Contingencies [Abstract] | |||
Lease expiration date | 2020-06 | ||
Future lease payments | $ 16,000 | ||
Operating lease expense | 31,996 | $ 31,996 | $ 31,996 |
Reserve balance requirement | $ 2,700,000 | $ 2,000,000 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Dec. 31, 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% |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Capital Requirements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Actual, Total Capital (to risk- weighted assets) | $ 49,259 | $ 36,044 | |
Actual, Tier I Capital (to risk- weighted assets) | 46,321 | 33,192 | |
Actual, Tier I Capital (to average assets) | 46,321 | 33,192 | |
Actual, Common Equity Tier 1 (to risk-weighted assets) | $ 46,321 | $ 33,192 | |
Actual Ratio, Total Capital (to risk- weighted assets) | 18.52% | 14.41% | |
Actual Ratio, Tier I Capital (to risk- weighted assets) | 17.41% | 13.27% | |
Actual Ratio, Tier I Capital (to average assets) | 11.41% | 8.68% | |
Actual Ratio, Common Equity Tier 1 (to risk-weighted assets) | 17.41% | 13.27% | |
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 21,278 | $ 20,011 | |
Minimum Capital Requirement, Tier I Capital (to risk-weighted assets) | 15,961 | 15,008 | |
Minimum Capital Requirement, Tier I Capital (to average assets) | 16,236 | 15,296 | |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 11,971 | $ 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) | $ 27,928 | $ 26,264 | |
Minimum Capital Requirement, Tier I Capital (to risk-weighted assets) | 22,611 | 21,261 | |
Minimum Capital Requirement, Tier I Capital (to average assets) | 16,236 | 15,296 | |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 18,621 | $ 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% |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Fair Value, by Balance Sheet Grouping (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | $ 44,785 | $ 39,443 |
U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 8,997 | 23,727 |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,740 | |
Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 28,880 | 14,389 |
Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure | 45,182 | 39,922 |
Fair Value, Measurements, Recurring [Member] | U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 8,997 | 23,727 |
Fair Value, Measurements, Recurring [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,740 | |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations Issued by the FHLMC [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 980 | |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 3,188 | 1,327 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 28,880 | 14,389 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Assets, Fair Value Disclosure | 397 | 479 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 44,785 | 39,443 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 8,997 | 23,727 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,740 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations Issued by the FHLMC [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 980 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 3,188 | 1,327 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 28,880 | 14,389 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 397 | 479 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities [Member] | ||
Assets, Fair Value Disclosure | $ 397 | $ 479 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Summarizes Assets Measured At Fair Value On A Nonrecurring Basis (Detail) - Fair Value, Nonrecurring [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Financing Receivable Nonaccrual Fair Value Disclosure | $ 996 |
Significant Unobservable Inputs Level 3 | |
Financing Receivable Nonaccrual Fair Value Disclosure | $ 996 |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Assets Measured At Fair Value On A Nonrecurring Basis (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Valuation, Market Approach [Member] | Selling Costs Provision [Member] | |
Financing Receivable Nonaccrual Fair Value Disclosure | $ 996 |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Non-financial assets and liabilities measured at fair value on a recurring basis | $ 0 | |
Foreclosed assets | $ 0 | $ 0 |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Fair Value Measurements, Recurring and Nonrecurring (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Cash and due from banks | $ 4,009 | $ 5,889 |
Interest-bearing time deposits with other banks | 2,735 | 6,461 |
Federal Home Loan Bank stock | 2,971 | 3,718 |
Bank-owned life insurance | 4,267 | 4,156 |
Loans, net | 341,980 | 318,616 |
Accrued interest receivable | 1,235 | 1,164 |
Financial Liabilities: | ||
Deposits | 281,616 | 274,446 |
Advances from Federal Home Loan Bank | 66,219 | 75,737 |
Mortgagors’ tax escrow | 586 | 761 |
Cash and due from banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,009 | 5,889 |
Interest-bearing time deposits with other banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 2,735 | 6,461 |
Federal Home Loan Bank stock [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 2,971 | 3,718 |
Bank-owned life insurance [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,267 | 4,156 |
Loans, net [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 336,847 | 307,582 |
Accrued interest receivable [member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 1,235 | 1,164 |
Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 281,707 | 258,446 |
Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 66,060 | 75,541 |
Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 586 | 761 |
Fair Value, Inputs, Level 1 [Member] | Cash and due from banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,009 | 5,889 |
Fair Value, Inputs, Level 1 [Member] | Accrued interest receivable [member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 1,235 | 1,164 |
Fair Value, Inputs, Level 1 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 220,596 | 196,481 |
Fair Value, Inputs, Level 2 [Member] | Interest-bearing time deposits with other banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 2,735 | 6,461 |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank stock [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 2,971 | 3,718 |
Fair Value, Inputs, Level 2 [Member] | Bank-owned life insurance [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,267 | 4,156 |
Fair Value, Inputs, Level 2 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 61,111 | 61,965 |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 66,060 | 75,541 |
Fair Value, Inputs, Level 2 [Member] | Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 586 | 761 |
Fair Value, Inputs, Level 3 [Member] | Loans, net [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | $ 336,847 | $ 307,582 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 3,875 | $ 3,921 | $ 3,886 | $ 3,766 | $ 3,774 | $ 3,605 | $ 3,502 | $ 3,383 | $ 15,448 | $ 14,264 | $ 12,600 |
Interest expense | 856 | 891 | 1,067 | 1,029 | 930 | 830 | 757 | 628 | 3,843 | 3,145 | 1,820 |
Net interest and dividend income | 3,019 | 3,030 | 2,819 | 2,737 | 2,844 | 2,775 | 2,745 | 2,755 | 11,605 | 11,119 | 10,780 |
Provision (credit) for loan losses | 75 | 25 | (100) | 30 | 30 | 40 | 100 | 160 | |||
Net interest income after provision for loan losses | 2,944 | 3,030 | 2,794 | 2,737 | 2,944 | 2,745 | 2,715 | 2,715 | 11,505 | 11,119 | 10,620 |
Non-interest income | 427 | 444 | 358 | 303 | 436 | 373 | 341 | 400 | 1,532 | 1,550 | 1,815 |
Non-interest expense | 3,207 | 4,307 | 2,933 | 2,858 | 2,980 | 2,783 | 2,756 | 2,838 | 13,305 | 11,357 | 10,822 |
(Loss) income before income tax (benefit) expense | 164 | (833) | 219 | 182 | 400 | 335 | 300 | 277 | (268) | 1,312 | 1,613 |
Income tax (benefit) expense | 21 | (220) | 6 | 4 | 69 | 62 | 46 | 55 | (189) | 232 | 701 |
Net (loss) income | $ 143 | $ (613) | $ 213 | $ 178 | $ 331 | $ 273 | $ 254 | $ 222 | $ (79) | $ 1,080 | $ 912 |
Average Shares Outstanding, Basic | 5,856,951 | 4,833,426 | 2,694,561 | ||||||||
Average Shares Outstanding, Diluted | 5,856,951 | 4,833,426 | 2,694,561 | ||||||||
Basic Earnings (Loss) Per Share | $ 0.02 | $ (0.13) | $ (0.03) | ||||||||
Diluted Earnings (Loss) Per share | $ 0.02 | $ (0.13) | $ (0.03) |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Schedule of Condensed Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Deferred tax asset | $ 726 | $ 779 | ||
Other assets | 2,173 | 2,086 | ||
Total assets | 409,493 | 387,114 | ||
Stockholders' Equity: | ||||
Stockholders’ equity | 57,066 | $ 32,727 | $ 31,898 | $ 30,907 |
First Seacoast Bancorp (Parent) Company | ||||
ASSETS | ||||
Cash held at First Seacoast Bank | 9,965 | |||
Investment in First Seacoast Bank | 44,613 | |||
Loan to First Seacoast Bank ESOP | 2,195 | |||
Deferred tax asset | 103 | |||
Other assets | 190 | |||
Total assets | 57,066 | |||
Stockholders' Equity: | ||||
Stockholders’ equity | 57,066 | |||
Total stockholders’ equity | $ 57,066 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Schedule of Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
(Loss) income before income tax (benefit) expense | $ 164 | $ (833) | $ 219 | $ 182 | $ 400 | $ 335 | $ 300 | $ 277 | $ (268) | $ 1,312 | $ 1,613 |
Income tax benefit | 21 | (220) | 6 | 4 | 69 | 62 | 46 | 55 | (189) | 232 | 701 |
Net (loss) income | $ 143 | $ (613) | $ 213 | $ 178 | $ 331 | $ 273 | $ 254 | $ 222 | (79) | $ 1,080 | $ 912 |
First Seacoast Bancorp (Parent) Company | |||||||||||
Charitable foundation contribution | 758 | ||||||||||
(Loss) income before income tax (benefit) expense | (758) | ||||||||||
Income tax benefit | (103) | ||||||||||
Net loss before equity in undistributed net income of First Seacoast Bank | (655) | ||||||||||
Equity in undistributed net income of First Seacoast Bank | 576 | ||||||||||
Net (loss) income | $ (79) |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (79) | $ 1,080 | $ 912 |
Adjustments to reconcile net loss to net cash used by operating activities: | |||
Deferred tax benefit | (315) | (11) | 326 |
Decrease (increase) in other assets | (141) | (475) | (92) |
Net cash provided (used) by operating activities | 1,059 | (672) | 3,363 |
CASH FLOWS FROM BY INVESTING ACTIVITIES: | |||
Net cash used by investing activities | (23,130) | (27,279) | (31,936) |
CASH FLOWS FROM BY FINANCING ACTIVITIES: | |||
Proceeds from sale of common stock, net | 25,099 | ||
Net cash provided by financing activities | 20,191 | 28,190 | 26,456 |
Net change in cash and cash equivalents | (1,880) | 239 | (2,117) |
Cash and cash equivalents at beginning of period | 5,889 | 5,650 | 7,767 |
Cash and cash equivalents at end of period | 4,009 | $ 5,889 | $ 5,650 |
First Seacoast Bancorp (Parent) Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | (79) | ||
Adjustments to reconcile net loss to net cash used by operating activities: | |||
Undistributed net income of First Seacoast Bank | (576) | ||
Deferred tax benefit | (103) | ||
Contribution of common stock to First Seacoast Community Foundation, Inc. | 609 | ||
Decrease (increase) in other assets | (190) | ||
Net cash provided (used) by operating activities | (339) | ||
CASH FLOWS FROM BY INVESTING ACTIVITIES: | |||
Capital contribution to First Seacoast Bank | (12,600) | ||
ESOP loan, net of principal payments | (2,195) | ||
Net cash used by investing activities | (14,795) | ||
CASH FLOWS FROM BY FINANCING ACTIVITIES: | |||
Proceeds from sale of common stock, net | 25,099 | ||
Net cash provided by financing activities | 25,099 | ||
Net change in cash and cash equivalents | 9,965 | ||
Cash and cash equivalents at end of period | $ 9,965 |