Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FSEA | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | First Seacoast Bancorp | |
Entity Central Index Key | 0001769267 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 6,064,891 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | X1 | |
Entity File Number | 001-38985 | |
Entity Address, Address Line One | 633 Central Avenue | |
Entity Address, City or Town | Dover | |
Entity Address, State or Province | NH | |
City Area Code | 603 | |
Local Phone Number | 742-4680 | |
Entity Address, Postal Zip Code | 03820 | |
Entity Tax Identification Number | 84-2404519 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and due from banks | $ 4,057 | $ 6,638 | |
Interest bearing time deposits with other banks | 996 | 1,245 | |
Securities available-for-sale, at fair value | 103,387 | 91,365 | |
Federal Home Loan Bank stock | 2,684 | 1,688 | |
Loans | 385,601 | 376,641 | |
Less allowance for loan losses | (3,644) | (3,590) | |
Net loans | 381,957 | 373,051 | |
Land, building and equipment, net | 4,401 | 4,566 | |
Bank-owned life insurance | 4,502 | 4,461 | |
Accrued interest receivable | 1,646 | 1,499 | |
Other assets | 6,616 | 2,561 | |
Total assets | 510,246 | 487,074 | |
Deposits: | |||
Non-interest bearing deposits | 91,700 | 98,624 | |
Interest bearing deposits | 296,168 | 294,619 | |
Total deposits | 387,868 | 393,243 | |
Advances from Federal Home Loan Bank | 64,250 | 29,462 | |
Mortgagors’ tax escrow | 725 | 652 | |
Deferred compensation liability | 1,650 | 1,729 | |
Other liabilities | 3,881 | 1,520 | |
Total liabilities | 458,374 | 426,606 | |
Stockholders' Equity: | |||
Preferred Stock, $.01 par value, 10,000,000 shares authorized, none issued | |||
Common Stock, $.01 par value, 90,000,000 shares authorized; 6,201,770 issued and 6,064,891 shares outstanding at June 30, 2022; and 6,201,770 shares issued and 6,123,337 outstanding as of December 31, 2021, respectively | 62 | 62 | |
Additional paid-in capital | 26,785 | 26,783 | |
Retained earnings | 37,385 | 36,813 | |
Accumulated other comprehensive (loss) income | [1] | (8,083) | 721 |
Treasury stock, at cost: 136,879 and 78,433 shares outstanding as of June 30, 2022 and December 31, 2021, respectively | (1,371) | (748) | |
Unearned stock compensation | (2,906) | (3,163) | |
Total stockholders' equity | 51,872 | 60,468 | |
Total liabilities and stockholders' equity | $ 510,246 | $ 487,074 | |
[1]All amounts are net of tax |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock par value per share | $ 0.01 | $ 0.01 |
Common stock,number of shares authorized | 90,000,000 | 90,000,000 |
Common stock,number of shares issued | 6,201,770 | 6,201,770 |
Common stock, number of shares outstanding | 6,064,891 | 6,123,337 |
Treasury Stock Shares Outstanding | 136,879 | 78,433 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 3,443,000 | $ 3,557,000 | $ 6,884,000 | $ 7,225,000 |
Interest on debt securities: | ||||
Taxable | 261,000 | 100,000 | 457,000 | 142,000 |
Non-taxable | 294,000 | 222,000 | 558,000 | 444,000 |
Total interest on debt securities | 555,000 | 322,000 | 1,015,000 | 586,000 |
Dividends | 9,000 | 2,000 | 23,000 | 2,000 |
Total interest and dividend income | 4,007,000 | 3,881,000 | 7,922,000 | 7,813,000 |
Interest expense: | ||||
Interest on deposits | 121,000 | 149,000 | 249,000 | 328,000 |
Interest on borrowings | 91,000 | 98,000 | 142,000 | 184,000 |
Total interest expense | 212,000 | 247,000 | 391,000 | 512,000 |
Net interest and dividend income | 3,795,000 | 3,634,000 | 7,531,000 | 7,301,000 |
Provision for loan losses | 25,000 | 60,000 | 85,000 | |
Net interest and dividend income after provision for loan losses | 3,795,000 | 3,609,000 | 7,471,000 | 7,216,000 |
Non-interest income: | ||||
Customer service fees | 245,000 | 256,000 | 462,000 | 489,000 |
Gain on sale of loans | 48,000 | 2,000 | 88,000 | |
Securities gains, net | 332,000 | 52,000 | 535,000 | |
Income from bank-owned life insurance | 20,000 | 20,000 | 40,000 | 40,000 |
Loan servicing income | 37,000 | 1,000 | 89,000 | 84,000 |
Investment services fees | 87,000 | 63,000 | 176,000 | 118,000 |
Other income | 9,000 | 10,000 | 19,000 | 25,000 |
Total non-interest income | 398,000 | 730,000 | 840,000 | 1,379,000 |
Non-interest expense: | ||||
Salaries and employee benefits | 2,413,000 | 1,885,000 | 4,677,000 | 3,751,000 |
Director compensation | 69,000 | 66,000 | 137,000 | 128,000 |
Occupancy expense | 171,000 | 170,000 | 375,000 | 337,000 |
Equipment expense | 127,000 | 140,000 | 254,000 | 281,000 |
Marketing | 100,000 | 141,000 | 149,000 | 201,000 |
Data processing | 367,000 | 352,000 | 724,000 | 671,000 |
Deposit insurance fees | 29,000 | 29,000 | 74,000 | 59,000 |
Professional fees and assessments | 292,000 | 276,000 | 515,000 | 481,000 |
Debit card fees | 48,000 | 49,000 | 86,000 | 91,000 |
Employee travel and education expenses | 42,000 | 27,000 | 66,000 | 43,000 |
Other expense | 289,000 | 198,000 | 558,000 | 382,000 |
Total non-interest expense | 3,947,000 | 3,333,000 | 7,615,000 | 6,425,000 |
Income before income tax expense | 246,000 | 1,006,000 | 696,000 | 2,170,000 |
Income tax expense | 66,000 | 173,000 | 124,000 | 429,000 |
Net income | $ 180,000 | $ 833,000 | $ 572,000 | $ 1,741,000 |
Earnings per share: | ||||
Basic | $ 0.03 | $ 0.14 | $ 0.10 | $ 0.30 |
Diluted | $ 0.03 | $ 0.14 | $ 0.10 | $ 0.30 |
Weighted Average Shares: | ||||
Basic | 5,752,047 | 5,817,624 | 5,771,234 | 5,827,589 |
Diluted | 5,776,851 | 5,817,624 | 5,790,723 | 5,827,589 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income | $ 180 | $ 833 | $ 572 | $ 1,741 | |
Other comprehensive (loss) income, net of income taxes: | |||||
Unrealized holding (losses) gains on securities available-for-sale arising during the period, net of income taxes of $(1,606), $145, $(3,535) and $(107), respectively | (4,323) | 391 | (9,518) | (287) | |
Reclassification adjustment for securities gains, net and net amortization of bond premiums included in net income, net of income taxes of $67, $43, $118 and $59, respectively | 182 | (112) | 317 | (158) | |
Total unrealized (loss) gain on securities available-for-sale | (4,141) | 279 | (9,201) | (445) | |
Change in interest rate swaps, net of income taxes of $30, $(17), $146 and $47, respectively | 84 | (45) | 392 | 127 | |
Reclassification adjustment for net interest expense on swaps included in net income net, of income taxes of $(2), $4, $2 and $5, respectively | (4) | 9 | 5 | 13 | |
Total change in interest rate swaps | 80 | (36) | 397 | 140 | |
Other comprehensive (loss) income | [1] | (4,061) | 243 | (8,804) | (305) |
Comprehensive (loss) income | $ (3,881) | $ 1,076 | $ (8,232) | $ 1,436 | |
[1]All amounts are net of tax |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized holding (losses) gains on securities available-for-sale arising during the period, income tax | $ (1,606) | $ 145 | $ (3,535) | $ (107) |
Reclassification adjustment for securities gains, net and net amortization of bond premiums included in net income, income tax | 67 | 43 | 118 | 59 |
Change in interest rate swaps, income tax | 30 | (17) | 146 | 47 |
Reclassification adjustment for net interest expense on swaps included in net income, income tax | $ (2) | $ 4 | $ 2 | $ 5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Unearned Compensation ESOP [Member] | |
Beginning Balance at Dec. 31, 2020 | $ 58,861 | $ 61 | $ 25,606 | $ 34,192 | $ 1,381 | $ (233) | $ (2,146) | |
Beginning Balance (shares) at Dec. 31, 2020 | 6,058,024 | |||||||
Net income | 1,741 | 1,741 | ||||||
Other comprehensive income (loss) | (305) | [1] | (305) | |||||
Treasury stock activity | (404) | $ (1) | (403) | |||||
Treasury stock activity (shares) | (42,002) | |||||||
ESOP shares earned | 57 | (3) | 60 | |||||
Ending Balance at Jun. 30, 2021 | 59,950 | $ 60 | 25,603 | 35,933 | 1,076 | (636) | (2,086) | |
Ending Balance (shares) at Jun. 30, 2021 | 6,016,022 | |||||||
Beginning Balance at Mar. 31, 2021 | 59,016 | $ 60 | 25,604 | 35,100 | 833 | (465) | (2,116) | |
Beginning Balance (shares) at Mar. 31, 2021 | 6,033,767 | |||||||
Net income | 833 | 833 | ||||||
Other comprehensive income (loss) | 243 | [1] | 243 | |||||
Treasury stock activity | (171) | (171) | ||||||
Treasury stock activity (shares) | (17,745) | |||||||
ESOP shares earned | 29 | (1) | 30 | |||||
Ending Balance at Jun. 30, 2021 | 59,950 | $ 60 | 25,603 | 35,933 | 1,076 | (636) | (2,086) | |
Ending Balance (shares) at Jun. 30, 2021 | 6,016,022 | |||||||
Beginning Balance at Dec. 31, 2021 | 60,468 | $ 62 | 26,783 | 36,813 | 721 | (748) | (3,163) | |
Beginning Balance (shares) at Dec. 31, 2021 | 6,123,337 | |||||||
Net income | 572 | 572 | ||||||
Other comprehensive income (loss) | (8,804) | [1] | (8,804) | |||||
Treasury stock activity | $ (623) | (623) | ||||||
Treasury stock activity (shares) | (34,943) | (58,446) | ||||||
Amortization of unearned stock compensation | $ 197 | 197 | ||||||
ESOP shares earned | 62 | 2 | 60 | |||||
Ending Balance at Jun. 30, 2022 | 51,872 | $ 62 | 26,785 | 37,385 | (8,083) | (1,371) | (2,906) | |
Ending Balance (shares) at Jun. 30, 2022 | 6,064,891 | |||||||
Beginning Balance at Mar. 31, 2022 | 55,999 | $ 62 | 26,784 | 37,205 | (4,022) | (996) | (3,034) | |
Beginning Balance (shares) at Mar. 31, 2022 | 6,099,834 | |||||||
Net income | 180 | 180 | ||||||
Other comprehensive income (loss) | (4,061) | [1] | (4,061) | |||||
Treasury stock activity | (375) | (375) | ||||||
Treasury stock activity (shares) | (34,943) | |||||||
Amortization of unearned stock compensation | 98 | 98 | ||||||
ESOP shares earned | 31 | 1 | 30 | |||||
Ending Balance at Jun. 30, 2022 | $ 51,872 | $ 62 | $ 26,785 | $ 37,385 | $ (8,083) | $ (1,371) | $ (2,906) | |
Ending Balance (shares) at Jun. 30, 2022 | 6,064,891 | |||||||
[1]All amounts are net of tax |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Stockholders Equity [Abstract] | ||||
Number of shares committed to be released each year,ESOP | 2,981 | 2,981 | 5,962 | 5,962 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 572 | $ 1,741 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
ESOP expense | 62 | 57 |
Stock based compensation | 197 | |
Depreciation and amortization | 271 | 281 |
Net amortization of bond premium | 487 | 318 |
Provision for loan losses | 60 | 85 |
Gain on sale of loans | (2) | (88) |
Securities gains, net | (52) | (535) |
Proceeds from loans sold | 497 | 3,000 |
Origination of loans sold | (495) | (2,912) |
Increase in bank-owned life insurance | (41) | (40) |
Increase in deferred costs on loans | (511) | (368) |
Deferred tax expense | 130 | 108 |
(Increase) decrease in accrued interest receivable | (147) | 79 |
Increase in other assets | (164) | (218) |
Decrease in deferred compensation liability | (79) | (26) |
Increase in other liabilities | 2,137 | 983 |
Net cash provided by operating activities | 2,922 | 2,465 |
Cash flows from investing activities: | ||
Proceeds from sales, maturities and principal payments from securities available-for-sale | 2,542 | 18,443 |
Purchase of securities available-for-sale | (27,617) | (30,520) |
Purchase of property and equipment | (89) | (31) |
Loan purchases | (2,816) | (8,506) |
Loan originations and principal collections, net | (5,633) | 557 |
Net loan (charge offs) recoveries | (6) | 39 |
Net purchase of Federal Home Loan Bank stock | (996) | (226) |
Proceeds from sales of interest bearing time deposits with other banks | 249 | |
Net cash used by investing activities | (34,366) | (20,244) |
Cash flows from financing activities: | ||
Net (decrease) increase in NOW, demand deposits, money market and savings accounts | (1,865) | 33,366 |
Net (decrease) increase in certificates of deposit | (3,510) | 9,624 |
Increase (decrease) in mortgagors’ escrow accounts | 73 | (621) |
Treasury stock purchases | (623) | (403) |
Net cash provided by financing activities | 28,863 | 32,915 |
Net change in cash and cash equivalents | (2,581) | 15,136 |
Cash and cash equivalents at beginning of period | 6,638 | 5,996 |
Cash and cash equivalents at end of period | 4,057 | 21,132 |
Cash activities: | ||
Cash paid for interest | 379 | 531 |
Cash paid for income taxes | 38 | 162 |
Effect of change in fair value of securities available-for-sale: | ||
Securities available-for-sale | (12,618) | (611) |
Deferred taxes | 3,417 | 166 |
Other comprehensive loss | (9,201) | (445) |
Effect of change in fair value of interest rate swaps: | ||
Interest rate swaps | 544 | 192 |
Deferred taxes | (147) | (52) |
Other comprehensive income | 397 | 140 |
ASU 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | ||
Effect of the adoption of ASU 2016-02: | ||
Other assets | 224 | |
Other liabilities | 224 | |
Federal Home Loan Bank Advances [Member] | ||
Cash flows from financing activities: | ||
Net proceeds (payments ) from short-term FHLB advances | 37,050 | (95) |
Proceeds from long-term FHLB advances | 5,000 | |
Payments on long-term FHLB advances | $ (2,262) | |
FRB [Member] | ||
Cash flows from financing activities: | ||
Payments on short-term FRB advances | $ (13,956) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies The accompanying unaudited 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. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all the information or footnotes required by U.S. GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of these consolidated financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 25, 2022. Corporate Structure The Company is the federally-chartered holding company for the Bank (formerly named Federal Savings Bank). Effective July 16, 2019, pursuant to a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan, the Bank reorganized into the mutual holding company structure, and the Company completed a concurrent stock offering. The Bank offers a full range of banking and wealth management services to its customers. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations. The Bank is engaged principally in the business of attracting deposits from the public and investing those funds in various types of loans, including residential and commercial real estate loans, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by law. Banking services, the Company’s only reportable operating segment, is managed as a single strategic unit. Investment management services are offered through FSB Wealth Management. FSB Wealth Management is a division of First Seacoast Bank. The division currently consists of two financial advisors who are located in Dover, New Hampshire. FSB Wealth Management provides access to non-FDIC insured products that include retirement planning, portfolio management, investment and insurance strategies, business retirement plans and college planning to individuals throughout our primary market area. These investments and service are offered through a third-party registered broker-dealer and investment advisor. FSB Wealth Management receives fees from advisory services and commissions on individual investment and insurance products purchased by clients. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the Company’s consolidated balance sheets. On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a purchase price of $347,000 (included in other assets at June 30, 2022 and December 31, 2021 net of accumulated amortization), of which $172,000 was paid at closing. Each client account has been assigned a value, and as each client transfers to the Bank, 85% of this value will be paid to the seller. By August 31, 2022, or upon mutual agreement that the transition of client accounts is complete, whichever is earlier, the balance of the purchase price will be paid to the seller. As of June 30, 2022, approximately $23.4 million of purchased client accounts are included in total assets under management. Assets under management totaled approximately $85.6 million and $88.0 million at June 30, 2022 and December 31, 2021, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten year period. During the three months ended June 30, 2022 and 2021, $9,000 and $-0- of amortization expense was recorded in other expense, respectively. During the six months ended June 30, 2022 and 2021, $18,000 and $-0- of amortization expense was recorded in other expense, respectively. Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of June 30, 2022, there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period except for the accounting treatment for measuring and recording the Company’s allowance for loan losses. The Company measures and records an allowance for loan losses based upon the incurred loss model while other public companies may be required to calculate their allowance for loan losses based upon the current expected credit loss (“CECL”) model. For a “smaller reporting company,” like the Company, the planned implementation of the CECL model is January 1, 2023. The CECL approach requires an estimate of the loan loss expected over the life of the loan, while the incurred loss approach delays the recognition of a loan loss until it is probable a loss event has occurred. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering; (which will be December 31, 2024 for the Company) (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). In 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 Topic 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 February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842). Codification Improvements to Topic 842, Leases “Targeted Improvements,” Recent Accounting Pronouncements Yet To Be Adopted The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU 2022-2, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In January 2021, the FASB issued ASU 2021-1, “Reference Rate Reform (Topic 848) (Scope),” In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” 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 November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also, during November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective date for ASU 2016-02, “Leases (Topic 842),” was deferred to fiscal years beginning after December 15, 2021. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” “Financial Instruments—Credit Losses, Topic 326.” 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,” |
Securities Available-for-Sale
Securities Available-for-Sale | 6 Months Ended |
Jun. 30, 2022 | |
Available For Sale Securities [Abstract] | |
Securities Available For Sale | 2 . 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 June 30, 2022 and December 31, 2021: June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 6,553 $ — $ (712 ) $ 5,841 U.S. Government agency small business administration pools guaranteed by SBA 10,047 5 (624 ) 9,428 Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 6,333 — (440 ) 5,893 Residential mortgage-backed securities 27,710 8 (3,434 ) 24,284 Municipal bonds 59,514 27 (6,242 ) 53,299 Corporate subordinated debt 5,060 — (418 ) 4,642 $ 115,217 $ 40 $ (11,870 ) $ 103,387 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 6,098 $ — $ (127 ) $ 5,971 U.S. Government agency small business administration pools guaranteed by SBA 5,059 22 (36 ) 5,045 Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 3,400 1 (69 ) 3,332 Residential mortgage-backed securities 23,784 32 (484 ) 23,332 Municipal bonds 49,164 1,501 (52 ) 50,613 Corporate subordinated debt 3,072 — — 3,072 $ 90,577 $ 1,556 $ (768 ) $ 91,365 The amortized cost and fair values of available-for-sale securities at June 30, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (Dollars in thousands) June 30, 2022 Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 13,304 12,129 Due after ten years 57,823 51,653 Total U.S. Government-sponsored enterprises obligations, municipal bonds and corporate subordinated debt 71,127 63,782 U.S. Government agency small business pools guaranteed by SBA (1) 10,047 9,428 Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA (1) 6,333 5,893 Residential mortgage-backed securities (1) 27,710 24,284 Total $ 115,217 $ 103,387 (1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at June 30, 2022 and December 31, 2021: 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) June 30, 2022 U.S. Government sponsored enterprises obligations 7 $ 5,000 $ (491 ) 3 $ 841 $ (221 ) $ 5,841 $ (712 ) U.S. Government agency small business administration pools guaranteed by SBA 10 8,416 (624 ) — — — 8,416 (624 ) Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 7 5,595 (306 ) 2 266 (134 ) 5,861 (440 ) Residential mortgage-backed securities 17 16,426 (1,521 ) 13 5,954 (1,913 ) 22,380 (3,434 ) Municipal bonds 88 50,595 (6,159 ) 1 499 (83 ) 51,094 (6,242 ) Corporate subordinated debt 4 4,642 (418 ) — — — 4,642 (418 ) 133 $ 90,674 $ (9,519 ) 19 $ 7,560 $ (2,351 ) $ 98,234 $ (11,870 ) December 31, 2021 U.S. Government sponsored enterprises obligations 7 $ 5,022 $ (80 ) 2 $ 949 $ (47 ) $ 5,971 $ (127 ) U.S. Government agency small business administration pools guaranteed by SBA 3 2,988 (36 ) — — — 2,988 (36 ) Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 4 2,779 (69 ) — — — 2,779 (69 ) Residential mortgage-backed securities 22 19,541 (399 ) 1 2,304 (85 ) 21,845 (484 ) Municipal bonds 7 6,494 (49 ) 1 584 (3 ) 7,078 (52 ) 43 $ 36,824 $ (633 ) 4 $ 3,837 $ (135 ) $ 40,661 $ (768 ) In evaluating whether investments have suffered an other-than-temporary decline, management evaluated the amount of the decline compared to cost, the length of time and extent to which fair value has been less than cost, the underlying creditworthiness of the issuer, the fair values exhibited during the year and estimated future fair values. In general, management concluded the declines are due to coupon rates compared to market rates and current economic conditions. The Company does not intend to sell investments with unrealized losses, and it is more likely than not that the Company will not be required to sell these investments before recovery of their amortized cost basis. Based on evaluations of the underlying issuers’ financial condition, current trends and economic conditions, management does not believe any securities suffered an other-than-temporary decline in value as of June 30, 2022. Proceeds from sales, maturities, principal payments received and gross realized gains and losses on available-for-sale securities were as follows for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars in thousands) Proceeds from sales, maturities, and principal payments received on securities available-for-sale $ 746 $ 8,697 $ 2,542 $ 18,443 Gross realized gains — 385 52 588 Gross realized losses — (53 ) — (53 ) Net realized gains $ — $ 332 $ 52 $ 535 As of June 30, 2022 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans | 3 . Loans The Bank’s lending activities are primarily conducted in and around Dover, New Hampshire and in the areas surrounding its branches. The Bank grants commercial real estate loans, multifamily 5+ dwelling unit loans, commercial and industrial loans, acquisition, development and land loans, 1–4 family residential loans, home equity line of credit loans and consumer loans. Most loans are collateralized by real estate. The ability and willingness of real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic area and the general economy. In response to the COVID-19 pandemic, the Small Business Administration (“SBA”) established the Paycheck Protection Program (“PPP”), which was designed to aid small- and medium-sized businesses through federally guaranteed SBA loans (“PPP loans”) distributed through banks. PPP loans are fully guaranteed as to principal and interest by the SBA. During the year ended December 31, 2021, the Bank originated 134 PPP loans with aggregate outstanding principal balances of $13.1 million. As of June 30, 2022 and December 31, 2021, total PPP loan principal balances were $139,000 and $5.5 million, respectively, and are included in commercial and industrial loans (C+I). Loans consisted of the following at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (Dollars in thousands) Commercial real estate (CRE) $ 77,349 $ 72,057 Multifamily (MF) 8,683 8,998 Commercial and industrial (C+I) 24,641 26,851 Acquisition, development, and land (ADL) 17,078 21,365 1-4 family residential (RES) 240,242 234,199 Home equity line of credit (HELOC) 9,201 6,947 Consumer (CON) 6,246 4,574 Total loans 383,440 374,991 Net deferred loan costs 2,161 1,650 Allowance for loan losses (3,644 ) (3,590 ) Total loans, net $ 381,957 $ 373,051 Changes in the allowance for loan losses (“ALL”) for the three and six months ended June 30, 2022 and 2021, by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, March 31, 2022 $ 894 $ 78 $ 218 $ 116 $ 2,188 $ 62 $ 86 $ — $ 3,642 Provision for loan losses 125 (21 ) (11 ) (6 ) (163 ) 25 24 27 — Charge-offs — — — — — — — — — Recoveries — — 1 — — — 1 — 2 Balance, June 30, 2022 1,019 57 208 110 2,025 87 111 27 3,644 Balance March 31, 2021 913 39 206 296 1,559 67 50 274 3,404 Provision for loan losses (121 ) 52 (24 ) (105 ) 191 11 1 20 25 Charge-offs — — — — — — — — — Recoveries — — 36 — — — 1 — 37 Balance, June 30, 2021 792 91 218 191 1,750 78 52 294 3,466 Balance, December 31, 2021 833 80 194 178 2,139 63 75 28 3,590 Provision for loan losses 186 (23 ) 13 (68 ) (114 ) 24 43 (1 ) 60 Charge-offs — — — — — — (9 ) — (9 ) Recoveries — — 1 — — — 2 — 3 Balance, June 30, 2022 1,019 57 208 110 2,025 87 111 27 3,644 Balance, December 31, 2020 753 60 267 174 1,656 78 52 302 3,342 Provision for loan losses 39 31 (86 ) 17 94 — (2 ) (8 ) 85 Charge-offs — — — — — — — — — Recoveries — — 37 — — — 2 — 39 Balance, June 30, 2021 $ 792 $ 91 $ 218 $ 191 $ 1,750 $ 78 $ 52 $ 294 $ 3,466 As of June 30, 2022 and December 31, 2021, information about loans and the ALL, by portfolio segment, are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total June 30, 2022 Loan Balances Individually evaluated for impairment $ 98 $ — $ 20 $ — $ 487 $ 115 $ — $ — $ 720 Collectively evaluated for impairment 77,251 8,683 24,621 17,078 239,755 9,086 6,246 — 382,720 Total $ 77,349 $ 8,683 $ 24,641 $ 17,078 $ 240,242 $ 9,201 $ 6,246 $ — $ 383,440 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,019 57 208 110 2,025 87 111 27 3,644 Total $ 1,019 $ 57 $ 208 $ 110 $ 2,025 $ 87 $ 111 $ 27 $ 3,644 December 31, 2021 Loan Balances Individually evaluated for impairment $ 104 $ — $ 28 $ — $ 722 $ 115 $ — $ — $ 969 Collectively evaluated for impairment 71,953 8,998 26,823 21,365 233,477 6,832 4,574 — 374,022 Total $ 72,057 $ 8,998 $ 26,851 $ 21,365 $ 234,199 $ 6,947 $ 4,574 $ — $ 374,991 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 833 80 194 178 2,139 63 75 28 3,590 Total $ 833 $ 80 $ 194 $ 178 $ 2,139 $ 63 $ 75 $ 28 $ 3,590 The following is an aging analysis of past due loans by portfolio segment as of June 30, 2022: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 77,349 $ 77,349 $ — MF — — — — 8,683 8,683 — C+I — — — — 24,641 24,641 — ADL — — — — 17,078 17,078 — RES — — 487 487 239,755 240,242 487 HELOC — — 115 115 9,086 9,201 115 CON 10 — — 10 6,236 6,246 — $ 10 $ — $ 602 $ 612 $ 382,828 $ 383,440 $ 602 The following is an aging analysis of past due loans by portfolio segment as of December 31, 2021: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 72,057 $ 72,057 $ — MF — — — — 8,998 8,998 — C+I — — — — 26,851 26,851 — ADL — — — — 21,365 21,365 — RES — 487 235 722 233,477 234,199 722 HELOC 117 129 — 246 6,701 6,947 115 CON 6 — — 6 4,568 4,574 — $ 123 $ 616 $ 235 $ 974 $ 374,017 $ 374,991 $ 837 There were no loans collateralized by residential real estate property in the process of foreclosure at June 30, 2022 or December 31, 2021. The following table provides information on impaired loans as of June 30, 2022 and December 31, 2021: As of June 30, 2022 At June 30, 2022 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 487 487 — 604 1 HELOC 115 115 — 115 — CON — — — — — Total impaired loans $ 602 $ 602 $ — $ 719 $ 1 . As of December 31, 2021 At December 31, 2021 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — 203 12 ADL — — — — — RES 722 722 — 77 2 HELOC 115 115 — 10 — CON — — — — — Total impaired loans $ 837 $ 837 $ — $ 290 $ 14 Included in impaired loans at December 31, 2021 was a non-performing residential mortgage loan that was repurchased from an investor and restructured in 2021. This loan was returned to performing status during June 2022. The outstanding balance of this now accruing TDR was approximately $192,000 and $195,000 at June 30, 2022 and December 31, 2021, respectively. 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 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 its commercial and industrial, commercial real estate and multifamily loans. On a periodic basis, the Bank engages an independent third party to review a significant portion of loans within these segments and to assess the credit risk management practices of its commercial lending department. Management uses the results of these reviews as part of its annual review process and overall credit risk administration. On a quarterly basis, the Bank formally reviews the ratings on its applicable residential real estate and home equity loans if they have become classified as non-accrual. 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 June 30, 2022: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 77,251 $ — $ 98 $ 77,349 MF 8,683 — — 8,683 C+I 24,621 — 20 24,641 ADL 17,078 — — 17,078 RES 239,755 — 487 240,242 HELOC 9,086 — 115 9,201 CON 6,246 — — 6,246 Total loans $ 382,720 $ — $ 720 $ 383,440 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2021: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 69,252 $ 2,701 $ 104 $ 72,057 MF 8,998 — — 8,998 C+I 26,823 — 28 26,851 ADL 21,365 — — 21,365 RES 233,477 — 722 234,199 HELOC 6,832 — 115 6,947 CON 4,574 — — 4,574 Total loans $ 371,321 $ 2,701 $ 969 $ 374,991 Certain directors and executive officers of the Company and entities in which they have significant ownership interests are customers of the Bank. Loans outstanding to these persons and entities at June 30, 2022 and December 31, 2021 were $4.5 million and $4.8 million, respectively. |
Loan Servicing
Loan Servicing | 6 Months Ended |
Jun. 30, 2022 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | 4 . Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $37.7 million and $40.6 million at June 30, 2022 and December 31, 2021, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 14, Fair Value of Assets and Liabilities, for more information). Changes to the balance of mortgage servicing rights are recorded in loan servicing income in the Company’s consolidated statements of income. The Bank’s mortgage servicing activities include: collecting principal, interest and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Loan servicing income, including late and ancillary fees, was $37,000 and $1,000 for the three months ended June 30, 2022 and 2021, respectively, and $89,000 and $84,000 for the six months ended June 30, 2022 and 2021, respectively. The Bank’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in the Bank’s market areas. The following summarizes activity in mortgage servicing rights for the three and six months ended June 30, 2022 and 2021: (Dollars in thousands) 2022 2021 Balance, March 31, $ 350 $ 329 Additions — 17 Payoffs (2 ) (18 ) Change in fair value due to change in assumptions 16 (25 ) Balance, June 30, 364 303 Balance, January 1, 322 273 Additions 5 30 Payoffs (18 ) (32 ) Change in fair value due to change in assumptions 55 32 Balance, June 30, $ 364 $ 303 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2022 | |
Deposits [Abstract] | |
Deposits | 5 . Deposits Deposits consisted of the following at June 30, 2022 and December 31, 2021: (Dollars in thousands) June 30, 2022 December 31, 2021 NOW and demand deposits $ 205,241 $ 206,235 Money market deposits 63,736 71,317 Savings deposits 64,075 57,365 Time deposits of $250,000 and greater 4,964 6,281 Time deposits less than $250,000 49,852 52,045 $ 387,868 $ 393,243 At June 30, 2022, the scheduled maturities of time deposits were as follows: (Dollars in thousands) 2022 $ 14,934 2023 20,788 2024 7,277 2025 7,363 2026 3,828 2027 626 $ 54,816 There were $18.1 million of brokered time deposits which were bifurcated into amounts below the FDIC insurance limit at June 30, 2022 and December 31, 2021. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | 6 . Borrowings Federal Home Loan Bank (“FHLB” A summary of borrowings from the FHLB is as follows: June 30, 2022 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 47,050 2022 0.47% to 1.70% – fixed 15,000 2023 0.44% to 0.45% – fixed 800 2024 0.00% – fixed 520 2025 0.00% – fixed 250 2028 0.00% – fixed 200 2030 0.00% – fixed 430 2031 0.00% – fixed $ 64,250 December 31, 2021 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 12,262 2022 0.00% to 0.31%– fixed 15,000 2023 0.44% to 0.45%– fixed 800 2024 0.00% – fixed 520 2025 0.00% – fixed 250 2028 0.00% – fixed 200 2030 0.00% – fixed 430 2031 0.00% – fixed $ 29,462 All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans and 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 $58.0 million and $109.7 million at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022 and December 31, 2021, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. As of June 30, 2022 and December 31, 2021, borrowings include $2.2 million and $4.5 million, respectively, of advances through the FHLB’s Jobs for New England program where certain qualifying small business loans that create or preserve jobs, expand woman-, minority- or veteran- owned businesses or otherwise stimulate the economy in New England communities are offered at an interest rate of 0%. At June 30, 2022 and December 31, 2021, the Bank had an overnight line of credit with the FHLB that may be drawn up to $3.0 million. Additionally, the Bank had a total of $5.0 million of unsecured Fed Funds borrowing lines of credit with two correspondent banks. The entire balance of all these credit facilities was available at June 30, 2022 and December 31, 2021. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 7 . Employee Benefits 401(k) Plan The Company sponsors a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company makes matching and profit-sharing contributions to eligible participants in accordance with plan provisions. The Company’s contributions for the three months ended June 30, 2022 and 2021were $44,000 and $41,000, respectively, and $99,000 and $91,000 for the six months ended June 30, 2022 and 2021, 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 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413 (c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The funded status (fair value of plan assets divided by funding target) as of July 1, 2021 is as follows: 2021 Valuation Report 104.99 % (1) (1) Fair value of plan assets reflects any contributions received through June 30, 2021. Based upon the funded status of the Pentegra DB Plan as of July 1, 2021, no funding improvement plan or rehabilitation plan has been implemented or is pending as of June 30, 2022. Total pension plan expense for the three months ended June 30, 2022 and 2021 was $50,000, and $90,000, respectively, and $100,000 and $189,000 for the six months ended June 30, 2022 and 2021, respectively, and is included in salaries and employee benefits expense in the accompanying consolidated statements of income. The Company did not pay a surcharge to the Pentegra DB Plan during the three or six months ended June 30, 2022. 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 $200,000 for the fiscal year ending December 31, 2022 , On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. The Company initiated a resolution to withdraw from the Pentegra DB Plan on June 30, 2022 so that a preliminary estimate of withdrawal costs could be determined. The Company must decide by no later than September 30, 2022 whether or not to proceed with the withdrawal. The Pentegra DB Plan may or may not be replaced by another plan, i.e. a qualified successor plan. If the Company proceeds with the withdrawal, a contribution amount that achieves a funded status of 100% - market value of plan assets equal to the final withdrawal liability - would be due. The Company is not able to reasonably estimate the contribution amount necessary to achieve a funded status of 100% as of June 30, 2022 due to recent and significant changes to the interest and discount rates used to determine the final withdrawal liability, as well as, yet to be determined vested participant benefit settlement elections (either the purchase of an annuity contract or lump-sum payment) and whether or not the Pentegra DB Plan would be replaced with a qualified successor plan. At this time, the Company anticipates the withdrawal costs will be significant; however, until the Company finalizes its decision to withdraw and a final contribution amount determined, the magnitude of the contribution is unknown. Supplemental Executive Retirement Plans Salary Continuation Plan The Company maintains a nonqualified supplemental retirement plan for its current President and its former President. The plan provides supplemental retirement benefits payable in installments over a period of years upon retirement or death. The recorded liability at June 30, 2022 and December 31, 2021 relating to this supplemental retirement plan was $647,000 and $634,000, respectively. The discount rate used to determine the Company’s obligation was 5.00%. The projected rate of salary increase for its current President was 3%. The expense of this salary retirement plan was $20,000 for each of the three months ended June 30, 2022 and 2021, and $41,000 for each of the six months ended June 30, 2022 and 2021. Executive Supplemental Retirement Plan The recorded liability at June 30, 2022 and December 31, 2021 relating to the supplemental retirement plan for the Bank’s former President was $45,000 and $90,000, respectively. The discount rate used to determine the Company’s obligation was 6.25% at June 30, 2022 and December 31, 2021. The expense of this salary retirement plan was $1,000 and $2,000 for the three months ended June 30, 2022 and 2021, respectively, and $2,000 and $3,000 for the six months ended June 30, 2022 and 2021, respectively. Endorsement Method Split Dollar Plan The Company has an endorsement method split dollar plan for a former President. The recorded liability at June 30, 2022 and December 31, 2021 relating to this supplemental executive benefit agreement was $35,000. The expense of this supplemental plan was $-0- for the three and six months ended June 30, 2022 and 2021. Directors Deferred Supplemental Retirement Plan The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at June 30, 2022 and December 31, 2021 relating to this plan was $494,000 and $550,000, respectively. The discount rate used to determine the Company’s obligation was 6.25% at June 30, 2022 and December 31, 2021. Total supplemental retirement plan expense amounted to $13,000 and $17,000 for the three months ended June 30, 2022 and 2021, respectively, and $32,000 and $34,000 for the six months ended June 30, 2022 and 2021, respectively. The Company enacted a “hard freeze” for this supplemental retirement plan as of January 1, 2022. On February 10, 2022, the Bank and the non-employee members of the board of directors of the Bank entered into amendments to the Supplemental Director Retirement Agreements (the “Agreements”) previously entered into by the Bank and the directors. The amendments eliminate the formula for determining the normal annual retirement benefit (previously “70% of Final Base Fee”) and replaces it with a fixed annual benefit of $20,000. The amendments also eliminate the formula for determining the benefit payable on a change in control (previously tied to the normal annual retirement formula with certain imputed increases in the Base Fee) and replacing it with a fixed amount equal to the present value of $200,000. The effect of the amendments is to eliminate the variable and increasing costs associated with the Agreements. Instead, since the normal annual retirement benefit will be a fixed amount, the future costs associated with the Agreements is now more predictable. It is the intention of the Bank that no new directors of the Bank would enter into similar agreements. Additionally, the Company has a deferred 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 in cash. At June 30, 2022 and December 31, 2021, the total deferred director’s fees amounted to $430,000 and $420,000, respectively. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 8 . Stock Based Compensation Employee Stock Ownership Plan The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The number of shares committed to be released per year through 2038 is 11,924. The ESOP funded its purchase of 238,473 shares through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. The ESOP trustee is repaying the loan principally through the Bank’s contributions to the ESOP over the remaining loan term that matures on December 31, 2038. At June 30, 2022 and December 31, 2021, the remaining p rincipal balance on the ESOP debt was $ 2.1 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 three months ended June 30, 2022 and 2021 was $31,000 and $29,000, respectively, and $62,000 and $57,000 for the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022 and December 31, 2021, total unearned compensation for the ESOP was $2.0 million. June 30, 2022 December 31, 2021 Shares held by the ESOP include the following: Allocated 35,772 23,848 Committed to be allocated 5,962 11,924 Unallocated 196,739 202,701 Total 238,473 238,473 The fair value of unallocated shares was approximately $2.1 million and $2.2 million at June 30, 2022 and December 31, 2021, respectively. Equity Incentive Plan Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The Company’s stockholders approved the 2021 plan on that date. The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock and the granting of shares of restricted stock awards and restricted stock units. The 2021 Plan authorizes the issuance or delivery to participants of up to 417,327 shares of common stock. Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 298,091 shares and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 119,236 shares. The exercise price of stock options may not be less than the fair market value on the date the stock option is granted. Further, stock options may not be granted with a term that is longer than 10 years. As of June 30, 2022, no stock options have been granted. On November 18, 2021, 118,270 restricted stock awards were granted to directors and certain members of management at $9.99 per share. The total fair value related to the November 18, 2021 grant was $1.2 million. Restricted stock awards time-vest over a three year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting rights when granted and dividend rights when vested. A summary of non-vested restricted shares outstanding as of June 30, 2022 and changes during the three months then ended is presented below: June 30, 2022 Number of Shares Weighted Average Grant Value Restricted stock: Non-vested at beginning of period 118,270 $ 9.99 Granted — — Vested — — Forfeited — — Non-vested at end of period 118,270 $ 9.99 For the three and six months ended June 30, 2022, the expense recognized for this equity incentive plan was $98,000 and $197,000, respectively, which provided a tax benefit of $27,000 and $53,000, respectively. At June 30, 2022 and December 31, 2021, total unrecognized compensation expense for this equity incentive plan was $0.9 million and $1.1 million, respectively, with a 2.4 and 2.9 year weighted average future recognition period, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | 9 . Leases The Company is obligated under various lease agreements for one of its branch offices and certain equipment. These agreements are accounted for as operating leases and their terms expire between 2022 and 2027 and, in some instances, contain options to renew for periods up to four years. The Company has no financing leases. The Company adopted ASU 2016-02 – Leases (Topic 842) The following table summarizes information related to the Company’s right-of-use asset and net lease liability: June 30, 2022 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 224 Other Assets Net lease liability 224 Other Liabilities The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is either implicit in the lease or, when a rate cannot be readily determined, the Company’s incremental borrowing rate is used. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. The components of operating lease cost and other related information are as follows : For the Six Months Ended June 30, (Dollars in thousands) Operating lease cost $ 31 Short-term lease cost — Variable lease cost (Cost excluded from lease payments) — Sublease income — Total operating lease cost 31 Other Information: Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases 31 Operating lease - operating cash flows (liability reduction) $ — Weighted average lease term 4.80 Weighted average discount rate 3.28 % The total minimum lease payments due in future periods for lease agreements in effect at June 30, 2022 were as follows: As of June 30, 2022 Future Minimum Lease Payments (Dollars in thousands) Remainder of 2022 $ 26 2023 52 2024 49 2025 44 2026 43 Thereafter 29 Total minimum lease payments 243 Less: interest (19 ) Total lease liability $ 224 One of the Company’s lease agreements contain clauses calling for escalation of minimum lease payments contingent on increases in LIBOR, or a similar replacement index, and the consumer price index. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Other Comprehensive Income | 10 . Other Comprehensive Income The Company reports certain items as “other comprehensive income” and reflects total accumulated other comprehensive income (“AOCI”) in the consolidated financial statements for all periods containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss: Three Months Ended June 30, Reclassification Adjustment 2022 2021 Affected Line Item in Consolidated Statements of Income (Dollars in thousands) Gains on sale of securities available-for-sale $ — $ (332 ) Securities gains, net Tax effect — 90 Income tax expense — $ (242 ) Net income Net amortization of bond premiums 249 177 Interest on debt securities Tax effect (67 ) (47 ) Income tax expense 182 130 Net income Net interest expense on swaps (6 ) 13 Interest expense on borrowings Tax effect 2 (4 ) Income tax expense (4 ) 9 Net income Total reclassification adjustments $ 178 $ (103 ) Six Months Ended June 30, 2022 2021 Gains on sale of securities available-for-sale $ (52 ) $ (535 ) Securities gains, net Tax effect 14 145 Income tax expense (38 ) (390 ) Net income Net amortization of bond premiums 487 318 Interest on debt securities Tax effect (132 ) (86 ) Income tax expense 355 232 Net income Net interest expense on swaps 7 18 Interest expense on borrowings Tax effect (2 ) (5 ) Income tax expense 5 13 Net income Total reclassification adjustments $ 322 $ (145 ) The following tables present the changes in each component of AOCI for the periods indicated: (Dollars in thousands) Net Unrealized Gains (Losses) on AFS Securities (1) Net Unrealized Gains (Losses) on Cash Flow Hedges (1) AOCI (1) Balance at March 31, 2022 $ (4,485 ) $ 463 $ (4,022 ) Other comprehensive (loss) income before reclassification (4,323 ) 84 (4,239 ) Amounts reclassified from AOCI 182 (4 ) 178 Other comprehensive (loss) income (4,141 ) 80 (4,061 ) Balance at June 30, 2022 $ (8,626 ) $ 543 $ (8,083 ) Balance at March 31, 2021 $ 757 $ 76 $ 833 Other comprehensive income (loss) before reclassification 391 (45 ) 346 Amounts reclassified from AOCI (112 ) 9 (103 ) Other comprehensive income (loss) 279 (36 ) 243 Balance at June 30, 2021 $ 1,036 $ 40 $ 1,076 Balance at December 31, 2021 $ 575 $ 146 $ 721 Other comprehensive (loss) income before reclassification (9,518 ) 392 (9,126 ) Amounts reclassified from AOCI 317 5 322 Other comprehensive (loss) income (9,201 ) 397 (8,804 ) Balance at June 30, 2022 $ (8,626 ) $ 543 $ (8,083 ) Balance at December 31, 2020 $ 1,481 $ (100 ) $ 1,381 Other comprehensive (loss) income before reclassification (287 ) 127 (160 ) Amounts reclassified from AOCI (158 ) 13 (145 ) Other comprehensive (loss) income (445 ) 140 (305 ) Balance at June 30, 2021 $ 1,036 $ 40 $ 1,076 (1) All amounts are net of tax |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Regulatory Matters [Abstract] | |
Regulatory Matters | 1 1 . 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 June 30, 2022, the most recent notification from the Office of the Comptroller of the Currency categorized the Bank, as well capitalized under the regulatory framework, for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital amounts and ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes that, as of June 30, 2022 and December 31, 2021, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer, at those dates. The following table presents actual and required capital ratios as of June 30, 2022 and December 31, 2021 for the Bank under the Basel Committee on Banking Supervisions capital guidelines for U.S. banks (“Basel III Capital Rules”) as fully phased-in on January 1, 2019. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required to be Well Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of June 30, 2022 Total Capital (to risk-weighted assets) $ 54,064 16.70 % $ 25,897 8.00 % $ 32,372 10.00 % $ 33,990 10.50 % Tier 1 Capital (to risk-weighted assets) 50,373 15.56 19,423 6.00 25,897 8.00 27,516 8.50 Tier 1 Capital (to average assets) 50,373 10.01 20,127 4.00 25,159 5.00 20,127 4.00 Common Equity Tier 1 (to risk-weighted assets) 50,373 15.56 14,567 4.50 21,042 6.50 22,660 7.00 Minimum Capital Minimum Capital Required to be Well Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total Capital (to risk-weighted assets) $ 52,798 17.87 % $ 23,641 8.00 % $ 29,546 10.00 % $ 31,029 10.50 % Tier 1 Capital (to risk-weighted assets) 49,151 16.63 17,731 6.00 23,644 8.00 25,119 8.50 Tier 1 Capital (to average assets) 49,151 9.92 19,811 4.00 24,774 5.00 19,811 4.00 Common Equity Tier 1 (to risk-weighted assets) 49,151 16.63 13,298 4.50 19,211 6.50 20,686 7.00 |
Common Stock Repurchases
Common Stock Repurchases | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Common Stock Repurchases | 1 2 . Common Stock Repurchases On September 23, 2020, the board of directors of the Company authorized the repurchase of up to 136,879 shares of the Company’s outstanding common stock, which equals approximately 2.3% of all shares then outstanding and approximately 5.0% of the then outstanding shares owned by stockholders other than the MHC. As of June 30, 2022, the Company had repurchased 136,879 shares. The Company holds repurchased shares as treasury stock. The Company’s repurchases of its common stock made during the quarter ended June 30, 2022 are set forth in the table below: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that may Yet Be Purchased Under the Plans or Programs April 1, 2022 - April 30, 2022 33,835 $ 10.74 33,835 1,108 May 1, 2022 - May 31, 2022 1,108 10.58 1,108 — June 1, 2022 - June 30, 2022 — — — Total 34,943 34,943 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 1 3 . Derivatives and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company utilizes interest rate swap agreements as part of its asset liability management strategy. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. These derivative instruments are designated as cash flow hedges with changes in the fair value of the derivative recorded in other comprehensive (loss) income and recognized in earnings when the hedged transaction affects earnings. The hedges were determined to be effective and the Company expects the hedges to remain effective during the remaining terms of the swaps. The Company entered into two $5 million notional interest rate swaps that have been designated as cash flow hedges on 90-day advances from FHLB. The purpose of these cash flow hedges is to reduce potential interest rate risk by swapping a variable rate borrowing to a fixed rate. Management deemed it prudent to limit the variability of these interest payments by entering into these interest rate swap agreements. These agreements provide for the Company to receive payments at a variable rate determined by a specific index (three-month LIBOR) in exchange for making payments at a fixed rate. Publication of LIBOR is expected to cease in June of 2023. The swap agreements allow for substitution of an alternative reference rate such as the secured overnight financing rate (“SOFR”) at that time. The changes in the fair value of interest rate swaps are reported in other comprehensive (loss) income and are subsequently reclassified into interest expense or income in the period that the hedged transactions affect earnings. Due to the increase in the three-month LIBOR rate, the Company estimates that an additional $180,000 will be reclassified as an increase to interest income during the next twelve months. The change in fair value for these derivative instruments for the three months ended June 30, 2022 and 2021, was $108,000 and $(49,000), respectively, and $545,000 and $192,000 for the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022 and December 31, 2021, the fair value of interest rate swap derivatives resulted in an asset of $744,000 and $200,000, respectively, and is recorded in other assets. The following tables summarizes the Company’s derivatives associated with its interest rate risk management activities: June 30, 2022 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68% $ 5,000 $ 328 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74% 5,000 416 — Total Hedging Instruments $ 10,000 $ 744 $ — Hedged Items: Variability in cash flows related to 90-day FHLB advances N/A $ — $ 10,000 December 31, 2021 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68% $ 5,000 $ 85 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74% 5,000 115 — Total Hedging Instruments $ 10,000 $ 200 $ — Hedged Items: Variability in cash flows related to 90-day FHLB advances N/A $ — $ 10,000 The following tables summarize the effect of cash flow hedge accounting on the consolidated statements of income for the three and six months ended June 30, 2022 and 2021: Location and Amount of Gain or Loss Recognized in Consolidated Statements of Income Three Months Ended June 30, 2022 2021 (Dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) The effect of cash flow hedge accounting: Amount reclassified from AOCI into expense $ 6 $ — $ (13 ) $ — Location and Amount of Gain or Loss Recognized in Consolidated Statements of Income Six Months Ended June 30, 2022 2021 (Dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) The effect of cash flow hedge accounting: Amount reclassified from AOCI into expense $ (6 ) $ — $ (18 ) $ — The credit risk associated with these interest rate swaps is the risk of default by the counterparty. To minimize this risk, the Company only enters into interest rate swap agreements with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements do not represent amounts exchanged by the parties and, therefore, are not a measure of the potential loss exposure. Risk management results for the three and six months ended June 30, 2022 and 2021, related to the balance sheet hedging of $10.0 million of 90 day FHLB advances, included in borrowings, indicate that the hedg e w as 100% effective and there was no component of the derivative instruments’ unrealized gain or loss which was excluded from the assessment of hedge effectiveness. The Company’s arrangement with its counterparty requires it to post cash or other assets as collateral for its interest rate swap contracts in a net liability position based on their aggregate fair value and the Company’s credit rating. At June 30, 2022 and December 31, 2021 , the Company posted $ and $ , respectively, of cash to the counterparty as collateral on its interest rate swap contracts which was presented within cash and due from banks on the consolidated balance sheets. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Fair Values Of Assets And Liabilities [Abstract] | |
Fair Values of Assets and Liabilities | 1 4 . Fair Values of Assets and Liabilities Determination of Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the observability and reliability of the assumptions used to determine fair value. Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented therein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all the Company’s financial assets and financial liabilities carried at fair value at June 30, 2022 and December 31, 2021. Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following: Securities Available-for-Sale : The Company’s investment in U.S. Government-sponsored entities bonds, U.S Government agency small business administration pools guaranteed by the SBA, collateralized mortgage obligations issued by the FHLMC, residential 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 4 , Loan Servicing , for more information). These assumptions are inherently sensitive to change as these unobservable inputs are not based on quoted prices in active markets or otherwise observable. Derivative Instruments and Hedges: The valuation of these instruments is determined using the discounted cash flow method on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 (Dollars in thousands) June 30, 2022 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 5,841 $ — $ 5,841 $ — U.S Government agency small business administration pools guaranteed by the SBA 9,428 — 9,428 — Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 5,893 — 5,893 — Residential mortgage-backed securities 24,283 — 24,283 — Municipal bonds 53,299 — 53,299 — Corporate subordinated debt 4,642 — 4,642 — Other assets: Mortgage servicing rights 364 — — 364 Derivatives 744 — 744 — Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2021 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 5,971 $ — $ 5,971 $ — U.S Government agency small business administration pools guaranteed by the SBA 5,045 — 5,045 — Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 3,332 — 3,332 — Residential mortgage-backed securities 23,332 — 23,332 — Municipal bonds 50,613 — 50,613 — Corporate subordinated debt 3,072 — 3,072 — Other assets: Mortgage servicing rights 322 — — 322 Derivatives 200 — 200 — For the six months ended June 30, 2022 and 2021, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage Servicing Rights (1) Balance as of January 1, 2022 $ 322 Included in net income 42 Balance as of June 30, 2022 $ 364 Total unrealized net gains (losses) included in net income related to assets still held as of June 30, 2022 $ — Balance as of January 1, 2021 $ 273 Included in net income 30 Balance as of June 30, 2021 $ 303 Total unrealized net gains (losses) included in net income related to assets still held as of June 30, 2021 $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing income in the Company’s consolidated statements of income. For Level 3 assets measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2022 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 7.11% - 28.28% 8.71% $ 364 Discount Rate 9.00% - 9.00% 9.00% Delinquency Rate 2.30% - 3.04% 2.43% Default Rate 0.18% - 0.28% 0.20% December 31, 2021 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 6.63% - 25.56% 13.39% $ 322 Discount Rate 9.00% - 9.00% 9.00% Delinquency Rate 2.82% - 3.63% 2.96% Default Rate 0.08% - 0.14% 0.13% (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average prepayment rate, weighted-average discount rate, weighted average delinquency rate and weighted-average default rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other. The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Observable and unobservable inputs are entered into this model as prescribed by an independent third party to arrive at an estimated fair value. See Note 4, Loan Servicing, for a roll forward of our Level 3 item and related inputs and assumptions used to determine fair value at June 30, 2022. 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 based on commitments in effect from investors or prevailing market prices for loans with similar terms to borrowers of similar credit quality and are included in Level 3. At June 30, 2022 and December 31, 2021, there were no assets measured at fair value on a non-recurring basis. Non-Financial Assets and Non-Financial Liabilities: ASC Topic 825, “Financial Instruments,” 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 June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 June 30, 2022 Financial Assets: Cash and due from banks $ 4,057 $ 4,057 $ 4,057 $ — $ — Interest-bearing time deposits with other banks 996 996 — 996 — Federal Home Loan Bank stock 2,684 2,684 — 2,684 — Bank-owned life insurance 4,502 4,502 — 4,502 — Loans, net 381,957 358,522 — — 358,522 Accrued interest receivable 1,646 1,646 1,646 — — Financial Liabilities: Deposits $ 387,868 $ 385,859 $ 333,051 $ 52,808 $ — Advances from Federal Home Loan Bank 64,250 62,866 — 62,866 — Mortgagors’ tax escrow 725 725 — 725 — December 31, 2021 Financial Assets: Cash and due from banks $ 6,638 $ 6,638 $ 6,638 $ — $ — Interest-bearing time deposits with other banks 1,245 1,245 — 1,245 — Federal Home Loan Bank stock 1,688 1,688 — 1,688 — Bank-owned life insurance 4,461 4,461 — 4,461 — Loans, net 373,051 371,587 — — 371,587 Accrued interest receivable 1,499 1,499 1,499 — — Financial Liabilities: Deposits $ 393,243 $ 393,145 $ 334,917 $ 58,228 $ — Advances from Federal Home Loan Bank 29,462 29,063 — 29,063 — Mortgagors’ tax escrow 652 652 — 652 — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all the information or footnotes required by U.S. GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of these consolidated financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 25, 2022. |
Corporate Structure | Corporate Structure The Company is the federally-chartered holding company for the Bank (formerly named Federal Savings Bank). Effective July 16, 2019, pursuant to a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan, the Bank reorganized into the mutual holding company structure, and the Company completed a concurrent stock offering. The Bank offers a full range of banking and wealth management services to its customers. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations. The Bank is engaged principally in the business of attracting deposits from the public and investing those funds in various types of loans, including residential and commercial real estate loans, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by law. Banking services, the Company’s only reportable operating segment, is managed as a single strategic unit. Investment management services are offered through FSB Wealth Management. FSB Wealth Management is a division of First Seacoast Bank. The division currently consists of two financial advisors who are located in Dover, New Hampshire. FSB Wealth Management provides access to non-FDIC insured products that include retirement planning, portfolio management, investment and insurance strategies, business retirement plans and college planning to individuals throughout our primary market area. These investments and service are offered through a third-party registered broker-dealer and investment advisor. FSB Wealth Management receives fees from advisory services and commissions on individual investment and insurance products purchased by clients. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the Company’s consolidated balance sheets. On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a purchase price of $347,000 (included in other assets at June 30, 2022 and December 31, 2021 net of accumulated amortization), of which $172,000 was paid at closing. Each client account has been assigned a value, and as each client transfers to the Bank, 85% of this value will be paid to the seller. By August 31, 2022, or upon mutual agreement that the transition of client accounts is complete, whichever is earlier, the balance of the purchase price will be paid to the seller. As of June 30, 2022, approximately $23.4 million of purchased client accounts are included in total assets under management. Assets under management totaled approximately $85.6 million and $88.0 million at June 30, 2022 and December 31, 2021, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten year period. During the three months ended June 30, 2022 and 2021, $9,000 and $-0- of amortization expense was recorded in other expense, respectively. During the six months ended June 30, 2022 and 2021, $18,000 and $-0- of amortization expense was recorded in other expense, respectively. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of June 30, 2022, there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period except for the accounting treatment for measuring and recording the Company’s allowance for loan losses. The Company measures and records an allowance for loan losses based upon the incurred loss model while other public companies may be required to calculate their allowance for loan losses based upon the current expected credit loss (“CECL”) model. For a “smaller reporting company,” like the Company, the planned implementation of the CECL model is January 1, 2023. The CECL approach requires an estimate of the loan loss expected over the life of the loan, while the incurred loss approach delays the recognition of a loan loss until it is probable a loss event has occurred. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering; (which will be December 31, 2024 for the Company) (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). In 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 Topic 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 February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842). Codification Improvements to Topic 842, Leases “Targeted Improvements,” |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Yet To Be Adopted The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU 2022-2, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In January 2021, the FASB issued ASU 2021-1, “Reference Rate Reform (Topic 848) (Scope),” In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” 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 November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also, during November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective date for ASU 2016-02, “Leases (Topic 842),” was deferred to fiscal years beginning after December 15, 2021. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” “Financial Instruments—Credit Losses, Topic 326.” 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,” |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 6,553 $ — $ (712 ) $ 5,841 U.S. Government agency small business administration pools guaranteed by SBA 10,047 5 (624 ) 9,428 Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 6,333 — (440 ) 5,893 Residential mortgage-backed securities 27,710 8 (3,434 ) 24,284 Municipal bonds 59,514 27 (6,242 ) 53,299 Corporate subordinated debt 5,060 — (418 ) 4,642 $ 115,217 $ 40 $ (11,870 ) $ 103,387 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 6,098 $ — $ (127 ) $ 5,971 U.S. Government agency small business administration pools guaranteed by SBA 5,059 22 (36 ) 5,045 Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 3,400 1 (69 ) 3,332 Residential mortgage-backed securities 23,784 32 (484 ) 23,332 Municipal bonds 49,164 1,501 (52 ) 50,613 Corporate subordinated debt 3,072 — — 3,072 $ 90,577 $ 1,556 $ (768 ) $ 91,365 |
Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity | The amortized cost and fair values of available-for-sale securities at June 30, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (Dollars in thousands) June 30, 2022 Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 13,304 12,129 Due after ten years 57,823 51,653 Total U.S. Government-sponsored enterprises obligations, municipal bonds and corporate subordinated debt 71,127 63,782 U.S. Government agency small business pools guaranteed by SBA (1) 10,047 9,428 Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA (1) 6,333 5,893 Residential mortgage-backed securities (1) 27,710 24,284 Total $ 115,217 $ 103,387 (1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Summary of gross unrealized losses and fair value for those investments with unrealized losses | The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at June 30, 2022 and December 31, 2021: 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) June 30, 2022 U.S. Government sponsored enterprises obligations 7 $ 5,000 $ (491 ) 3 $ 841 $ (221 ) $ 5,841 $ (712 ) U.S. Government agency small business administration pools guaranteed by SBA 10 8,416 (624 ) — — — 8,416 (624 ) Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 7 5,595 (306 ) 2 266 (134 ) 5,861 (440 ) Residential mortgage-backed securities 17 16,426 (1,521 ) 13 5,954 (1,913 ) 22,380 (3,434 ) Municipal bonds 88 50,595 (6,159 ) 1 499 (83 ) 51,094 (6,242 ) Corporate subordinated debt 4 4,642 (418 ) — — — 4,642 (418 ) 133 $ 90,674 $ (9,519 ) 19 $ 7,560 $ (2,351 ) $ 98,234 $ (11,870 ) December 31, 2021 U.S. Government sponsored enterprises obligations 7 $ 5,022 $ (80 ) 2 $ 949 $ (47 ) $ 5,971 $ (127 ) U.S. Government agency small business administration pools guaranteed by SBA 3 2,988 (36 ) — — — 2,988 (36 ) Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 4 2,779 (69 ) — — — 2,779 (69 ) Residential mortgage-backed securities 22 19,541 (399 ) 1 2,304 (85 ) 21,845 (484 ) Municipal bonds 7 6,494 (49 ) 1 584 (3 ) 7,078 (52 ) 43 $ 36,824 $ (633 ) 4 $ 3,837 $ (135 ) $ 40,661 $ (768 ) |
Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities | Proceeds from sales, maturities, principal payments received and gross realized gains and losses on available-for-sale securities were as follows for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars in thousands) Proceeds from sales, maturities, and principal payments received on securities available-for-sale $ 746 $ 8,697 $ 2,542 $ 18,443 Gross realized gains — 385 52 588 Gross realized losses — (53 ) — (53 ) Net realized gains $ — $ 332 $ 52 $ 535 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consisted of the following at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (Dollars in thousands) Commercial real estate (CRE) $ 77,349 $ 72,057 Multifamily (MF) 8,683 8,998 Commercial and industrial (C+I) 24,641 26,851 Acquisition, development, and land (ADL) 17,078 21,365 1-4 family residential (RES) 240,242 234,199 Home equity line of credit (HELOC) 9,201 6,947 Consumer (CON) 6,246 4,574 Total loans 383,440 374,991 Net deferred loan costs 2,161 1,650 Allowance for loan losses (3,644 ) (3,590 ) Total loans, net $ 381,957 $ 373,051 |
Schedule of Allowance For Loans And Leases Receivable Classification | Changes in the allowance for loan losses (“ALL”) for the three and six months ended June 30, 2022 and 2021, by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, March 31, 2022 $ 894 $ 78 $ 218 $ 116 $ 2,188 $ 62 $ 86 $ — $ 3,642 Provision for loan losses 125 (21 ) (11 ) (6 ) (163 ) 25 24 27 — Charge-offs — — — — — — — — — Recoveries — — 1 — — — 1 — 2 Balance, June 30, 2022 1,019 57 208 110 2,025 87 111 27 3,644 Balance March 31, 2021 913 39 206 296 1,559 67 50 274 3,404 Provision for loan losses (121 ) 52 (24 ) (105 ) 191 11 1 20 25 Charge-offs — — — — — — — — — Recoveries — — 36 — — — 1 — 37 Balance, June 30, 2021 792 91 218 191 1,750 78 52 294 3,466 Balance, December 31, 2021 833 80 194 178 2,139 63 75 28 3,590 Provision for loan losses 186 (23 ) 13 (68 ) (114 ) 24 43 (1 ) 60 Charge-offs — — — — — — (9 ) — (9 ) Recoveries — — 1 — — — 2 — 3 Balance, June 30, 2022 1,019 57 208 110 2,025 87 111 27 3,644 Balance, December 31, 2020 753 60 267 174 1,656 78 52 302 3,342 Provision for loan losses 39 31 (86 ) 17 94 — (2 ) (8 ) 85 Charge-offs — — — — — — — — — Recoveries — — 37 — — — 2 — 39 Balance, June 30, 2021 $ 792 $ 91 $ 218 $ 191 $ 1,750 $ 78 $ 52 $ 294 $ 3,466 As of June 30, 2022 and December 31, 2021, information about loans and the ALL, by portfolio segment, are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total June 30, 2022 Loan Balances Individually evaluated for impairment $ 98 $ — $ 20 $ — $ 487 $ 115 $ — $ — $ 720 Collectively evaluated for impairment 77,251 8,683 24,621 17,078 239,755 9,086 6,246 — 382,720 Total $ 77,349 $ 8,683 $ 24,641 $ 17,078 $ 240,242 $ 9,201 $ 6,246 $ — $ 383,440 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,019 57 208 110 2,025 87 111 27 3,644 Total $ 1,019 $ 57 $ 208 $ 110 $ 2,025 $ 87 $ 111 $ 27 $ 3,644 December 31, 2021 Loan Balances Individually evaluated for impairment $ 104 $ — $ 28 $ — $ 722 $ 115 $ — $ — $ 969 Collectively evaluated for impairment 71,953 8,998 26,823 21,365 233,477 6,832 4,574 — 374,022 Total $ 72,057 $ 8,998 $ 26,851 $ 21,365 $ 234,199 $ 6,947 $ 4,574 $ — $ 374,991 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 833 80 194 178 2,139 63 75 28 3,590 Total $ 833 $ 80 $ 194 $ 178 $ 2,139 $ 63 $ 75 $ 28 $ 3,590 |
Past Due Financing Receivables | The following is an aging analysis of past due loans by portfolio segment as of June 30, 2022: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 77,349 $ 77,349 $ — MF — — — — 8,683 8,683 — C+I — — — — 24,641 24,641 — ADL — — — — 17,078 17,078 — RES — — 487 487 239,755 240,242 487 HELOC — — 115 115 9,086 9,201 115 CON 10 — — 10 6,236 6,246 — $ 10 $ — $ 602 $ 612 $ 382,828 $ 383,440 $ 602 The following is an aging analysis of past due loans by portfolio segment as of December 31, 2021: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 72,057 $ 72,057 $ — MF — — — — 8,998 8,998 — C+I — — — — 26,851 26,851 — ADL — — — — 21,365 21,365 — RES — 487 235 722 233,477 234,199 722 HELOC 117 129 — 246 6,701 6,947 115 CON 6 — — 6 4,568 4,574 — $ 123 $ 616 $ 235 $ 974 $ 374,017 $ 374,991 $ 837 |
Impaired Financing Receivables | The following table provides information on impaired loans as of June 30, 2022 and December 31, 2021: As of June 30, 2022 At June 30, 2022 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 487 487 — 604 1 HELOC 115 115 — 115 — CON — — — — — Total impaired loans $ 602 $ 602 $ — $ 719 $ 1 . As of December 31, 2021 At December 31, 2021 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — 203 12 ADL — — — — — RES 722 722 — 77 2 HELOC 115 115 — 10 — CON — — — — — Total impaired loans $ 837 $ 837 $ — $ 290 $ 14 |
Financing Receivable Credit Quality Indicators | The following presents the internal risk rating of loans by portfolio segment as of June 30, 2022: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 77,251 $ — $ 98 $ 77,349 MF 8,683 — — 8,683 C+I 24,621 — 20 24,641 ADL 17,078 — — 17,078 RES 239,755 — 487 240,242 HELOC 9,086 — 115 9,201 CON 6,246 — — 6,246 Total loans $ 382,720 $ — $ 720 $ 383,440 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2021: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 69,252 $ 2,701 $ 104 $ 72,057 MF 8,998 — — 8,998 C+I 26,823 — 28 26,851 ADL 21,365 — — 21,365 RES 233,477 — 722 234,199 HELOC 6,832 — 115 6,947 CON 4,574 — — 4,574 Total loans $ 371,321 $ 2,701 $ 969 $ 374,991 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers And Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following summarizes activity in mortgage servicing rights for the three and six months ended June 30, 2022 and 2021: (Dollars in thousands) 2022 2021 Balance, March 31, $ 350 $ 329 Additions — 17 Payoffs (2 ) (18 ) Change in fair value due to change in assumptions 16 (25 ) Balance, June 30, 364 303 Balance, January 1, 322 273 Additions 5 30 Payoffs (18 ) (32 ) Change in fair value due to change in assumptions 55 32 Balance, June 30, $ 364 $ 303 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deposits [Abstract] | |
Deposit Liabilities | Deposits consisted of the following at June 30, 2022 and December 31, 2021: (Dollars in thousands) June 30, 2022 December 31, 2021 NOW and demand deposits $ 205,241 $ 206,235 Money market deposits 63,736 71,317 Savings deposits 64,075 57,365 Time deposits of $250,000 and greater 4,964 6,281 Time deposits less than $250,000 49,852 52,045 $ 387,868 $ 393,243 |
Maturities of Time Deposits | At June 30, 2022, the scheduled maturities of time deposits were as follows: (Dollars in thousands) 2022 $ 14,934 2023 20,788 2024 7,277 2025 7,363 2026 3,828 2027 626 $ 54,816 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | A summary of borrowings from the FHLB is as follows: June 30, 2022 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 47,050 2022 0.47% to 1.70% – fixed 15,000 2023 0.44% to 0.45% – fixed 800 2024 0.00% – fixed 520 2025 0.00% – fixed 250 2028 0.00% – fixed 200 2030 0.00% – fixed 430 2031 0.00% – fixed $ 64,250 December 31, 2021 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 12,262 2022 0.00% to 0.31%– fixed 15,000 2023 0.44% to 0.45%– fixed 800 2024 0.00% – fixed 520 2025 0.00% – fixed 250 2028 0.00% – fixed 200 2030 0.00% – fixed 430 2031 0.00% – fixed $ 29,462 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Funded Status Valuation Report Percentage | The funded status (fair value of plan assets divided by funding target) as of July 1, 2021 is as follows: 2021 Valuation Report 104.99 % (1) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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. June 30, 2022 December 31, 2021 Shares held by the ESOP include the following: Allocated 35,772 23,848 Committed to be allocated 5,962 11,924 Unallocated 196,739 202,701 Total 238,473 238,473 |
Summary of Non-vested Restricted Shares Outstanding | A summary of non-vested restricted shares outstanding as of June 30, 2022 and changes during the three months then ended is presented below: June 30, 2022 Number of Shares Weighted Average Grant Value Restricted stock: Non-vested at beginning of period 118,270 $ 9.99 Granted — — Vested — — Forfeited — — Non-vested at end of period 118,270 $ 9.99 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Summary of Right-of-Use Asset and Net Lease Liability | The following table summarizes information related to the Company’s right-of-use asset and net lease liability: June 30, 2022 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 224 Other Assets Net lease liability 224 Other Liabilities |
Components of Operating Lease Cost and Other Related Information | The components of operating lease cost and other related information are as follows : For the Six Months Ended June 30, (Dollars in thousands) Operating lease cost $ 31 Short-term lease cost — Variable lease cost (Cost excluded from lease payments) — Sublease income — Total operating lease cost 31 Other Information: Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases 31 Operating lease - operating cash flows (liability reduction) $ — Weighted average lease term 4.80 Weighted average discount rate 3.28 % |
Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements | The total minimum lease payments due in future periods for lease agreements in effect at June 30, 2022 were as follows: As of June 30, 2022 Future Minimum Lease Payments (Dollars in thousands) Remainder of 2022 $ 26 2023 52 2024 49 2025 44 2026 43 Thereafter 29 Total minimum lease payments 243 Less: interest (19 ) Total lease liability $ 224 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss: Three Months Ended June 30, Reclassification Adjustment 2022 2021 Affected Line Item in Consolidated Statements of Income (Dollars in thousands) Gains on sale of securities available-for-sale $ — $ (332 ) Securities gains, net Tax effect — 90 Income tax expense — $ (242 ) Net income Net amortization of bond premiums 249 177 Interest on debt securities Tax effect (67 ) (47 ) Income tax expense 182 130 Net income Net interest expense on swaps (6 ) 13 Interest expense on borrowings Tax effect 2 (4 ) Income tax expense (4 ) 9 Net income Total reclassification adjustments $ 178 $ (103 ) Six Months Ended June 30, 2022 2021 Gains on sale of securities available-for-sale $ (52 ) $ (535 ) Securities gains, net Tax effect 14 145 Income tax expense (38 ) (390 ) Net income Net amortization of bond premiums 487 318 Interest on debt securities Tax effect (132 ) (86 ) Income tax expense 355 232 Net income Net interest expense on swaps 7 18 Interest expense on borrowings Tax effect (2 ) (5 ) Income tax expense 5 13 Net income Total reclassification adjustments $ 322 $ (145 ) |
Summary of Changes in Component of AOCI | The following tables present the changes in each component of AOCI for the periods indicated: (Dollars in thousands) Net Unrealized Gains (Losses) on AFS Securities (1) Net Unrealized Gains (Losses) on Cash Flow Hedges (1) AOCI (1) Balance at March 31, 2022 $ (4,485 ) $ 463 $ (4,022 ) Other comprehensive (loss) income before reclassification (4,323 ) 84 (4,239 ) Amounts reclassified from AOCI 182 (4 ) 178 Other comprehensive (loss) income (4,141 ) 80 (4,061 ) Balance at June 30, 2022 $ (8,626 ) $ 543 $ (8,083 ) Balance at March 31, 2021 $ 757 $ 76 $ 833 Other comprehensive income (loss) before reclassification 391 (45 ) 346 Amounts reclassified from AOCI (112 ) 9 (103 ) Other comprehensive income (loss) 279 (36 ) 243 Balance at June 30, 2021 $ 1,036 $ 40 $ 1,076 Balance at December 31, 2021 $ 575 $ 146 $ 721 Other comprehensive (loss) income before reclassification (9,518 ) 392 (9,126 ) Amounts reclassified from AOCI 317 5 322 Other comprehensive (loss) income (9,201 ) 397 (8,804 ) Balance at June 30, 2022 $ (8,626 ) $ 543 $ (8,083 ) Balance at December 31, 2020 $ 1,481 $ (100 ) $ 1,381 Other comprehensive (loss) income before reclassification (287 ) 127 (160 ) Amounts reclassified from AOCI (158 ) 13 (145 ) Other comprehensive (loss) income (445 ) 140 (305 ) Balance at June 30, 2021 $ 1,036 $ 40 $ 1,076 (1) All amounts are net of tax |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 to be Well Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of June 30, 2022 Total Capital (to risk-weighted assets) $ 54,064 16.70 % $ 25,897 8.00 % $ 32,372 10.00 % $ 33,990 10.50 % Tier 1 Capital (to risk-weighted assets) 50,373 15.56 19,423 6.00 25,897 8.00 27,516 8.50 Tier 1 Capital (to average assets) 50,373 10.01 20,127 4.00 25,159 5.00 20,127 4.00 Common Equity Tier 1 (to risk-weighted assets) 50,373 15.56 14,567 4.50 21,042 6.50 22,660 7.00 Minimum Capital Minimum Capital Required to be Well Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total Capital (to risk-weighted assets) $ 52,798 17.87 % $ 23,641 8.00 % $ 29,546 10.00 % $ 31,029 10.50 % Tier 1 Capital (to risk-weighted assets) 49,151 16.63 17,731 6.00 23,644 8.00 25,119 8.50 Tier 1 Capital (to average assets) 49,151 9.92 19,811 4.00 24,774 5.00 19,811 4.00 Common Equity Tier 1 (to risk-weighted assets) 49,151 16.63 13,298 4.50 19,211 6.50 20,686 7.00 |
Common Stock Repurchases (Table
Common Stock Repurchases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Repurchase of Common Stock | The Company’s repurchases of its common stock made during the quarter ended June 30, 2022 are set forth in the table below: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that may Yet Be Purchased Under the Plans or Programs April 1, 2022 - April 30, 2022 33,835 $ 10.74 33,835 1,108 May 1, 2022 - May 31, 2022 1,108 10.58 1,108 — June 1, 2022 - June 30, 2022 — — — Total 34,943 34,943 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of the Company's Derivatives Associated with its Interest Rate Risk Management Activities | The following tables summarizes the Company’s derivatives associated with its interest rate risk management activities: June 30, 2022 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68% $ 5,000 $ 328 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74% 5,000 416 — Total Hedging Instruments $ 10,000 $ 744 $ — Hedged Items: Variability in cash flows related to 90-day FHLB advances N/A $ — $ 10,000 December 31, 2021 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68% $ 5,000 $ 85 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74% 5,000 115 — Total Hedging Instruments $ 10,000 $ 200 $ — Hedged Items: Variability in cash flows related to 90-day FHLB advances N/A $ — $ 10,000 |
Summary of the Effect of Cash Flow Hedge Accounting | The following tables summarize the effect of cash flow hedge accounting on the consolidated statements of income for the three and six months ended June 30, 2022 and 2021: Location and Amount of Gain or Loss Recognized in Consolidated Statements of Income Three Months Ended June 30, 2022 2021 (Dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) The effect of cash flow hedge accounting: Amount reclassified from AOCI into expense $ 6 $ — $ (13 ) $ — Location and Amount of Gain or Loss Recognized in Consolidated Statements of Income Six Months Ended June 30, 2022 2021 (Dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) The effect of cash flow hedge accounting: Amount reclassified from AOCI into expense $ (6 ) $ — $ (18 ) $ — |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Fair Values Of Assets And Liabilities [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 (Dollars in thousands) June 30, 2022 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 5,841 $ — $ 5,841 $ — U.S Government agency small business administration pools guaranteed by the SBA 9,428 — 9,428 — Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 5,893 — 5,893 — Residential mortgage-backed securities 24,283 — 24,283 — Municipal bonds 53,299 — 53,299 — Corporate subordinated debt 4,642 — 4,642 — Other assets: Mortgage servicing rights 364 — — 364 Derivatives 744 — 744 — Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2021 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 5,971 $ — $ 5,971 $ — U.S Government agency small business administration pools guaranteed by the SBA 5,045 — 5,045 — Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA 3,332 — 3,332 — Residential mortgage-backed securities 23,332 — 23,332 — Municipal bonds 50,613 — 50,613 — Corporate subordinated debt 3,072 — 3,072 — Other assets: Mortgage servicing rights 322 — — 322 Derivatives 200 — 200 — |
Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | For the six months ended June 30, 2022 and 2021, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage Servicing Rights (1) Balance as of January 1, 2022 $ 322 Included in net income 42 Balance as of June 30, 2022 $ 364 Total unrealized net gains (losses) included in net income related to assets still held as of June 30, 2022 $ — Balance as of January 1, 2021 $ 273 Included in net income 30 Balance as of June 30, 2021 $ 303 Total unrealized net gains (losses) included in net income related to assets still held as of June 30, 2021 $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing income in the Company’s consolidated statements of income. |
Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis | For Level 3 assets measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2022 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 7.11% - 28.28% 8.71% $ 364 Discount Rate 9.00% - 9.00% 9.00% Delinquency Rate 2.30% - 3.04% 2.43% Default Rate 0.18% - 0.28% 0.20% December 31, 2021 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 6.63% - 25.56% 13.39% $ 322 Discount Rate 9.00% - 9.00% 9.00% Delinquency Rate 2.82% - 3.63% 2.96% Default Rate 0.08% - 0.14% 0.13% (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Value Measurements, Recurring and Nonrecurring | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 June 30, 2022 Financial Assets: Cash and due from banks $ 4,057 $ 4,057 $ 4,057 $ — $ — Interest-bearing time deposits with other banks 996 996 — 996 — Federal Home Loan Bank stock 2,684 2,684 — 2,684 — Bank-owned life insurance 4,502 4,502 — 4,502 — Loans, net 381,957 358,522 — — 358,522 Accrued interest receivable 1,646 1,646 1,646 — — Financial Liabilities: Deposits $ 387,868 $ 385,859 $ 333,051 $ 52,808 $ — Advances from Federal Home Loan Bank 64,250 62,866 — 62,866 — Mortgagors’ tax escrow 725 725 — 725 — December 31, 2021 Financial Assets: Cash and due from banks $ 6,638 $ 6,638 $ 6,638 $ — $ — Interest-bearing time deposits with other banks 1,245 1,245 — 1,245 — Federal Home Loan Bank stock 1,688 1,688 — 1,688 — Bank-owned life insurance 4,461 4,461 — 4,461 — Loans, net 373,051 371,587 — — 371,587 Accrued interest receivable 1,499 1,499 1,499 — — Financial Liabilities: Deposits $ 393,243 $ 393,145 $ 334,917 $ 58,228 $ — Advances from Federal Home Loan Bank 29,462 29,063 — 29,063 — Mortgagors’ tax escrow 652 652 — 652 — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Aug. 17, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Service | Dec. 31, 2021 USD ($) | |
Number of core services | Service | 4 | ||||
Accounts Purchase Price | $ 347,000 | ||||
Accounts Purchase Price, Paid | $ 172,000 | $ 23,400,000 | |||
The Percentage of Accounts Receivables Paid To Seller | 85 | ||||
Assets Under Management | $ 85,600,000 | $ 85,600,000 | $ 88,000,000 | ||
Deposit Assets, Amortization Expense from Expirations | $ 9,000 | $ 0 | |||
Emerging growth of company status | (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering; (which will be December 31, 2024 for the Company) (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). | ||||
ASU 2020-01 [Member] | |||||
Change in accounting principle, accounting standards update, early adoption [true false] | true | true | |||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||
ASU 2019-12 [Member] | |||||
Change in accounting principle, accounting standards update, early adoption [true false] | true | true | |||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||
ASU 2016-02 | |||||
Change in accounting principle, accounting standards update, adopted | true | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2022 | Jan. 01, 2022 |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of amortized cost and fair value of securities available-for-sale (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Amortized Cost | $ 115,217 | $ 90,577 | |
Gross Unrealized Gains | 40 | 1,556 | |
Gross Unrealized Losses | (11,870) | (768) | |
Fair Value | 103,387 | 91,365 | |
U.S. Government-sponsored enterprises obligations [Member] | |||
Amortized Cost | 6,553 | 6,098 | |
Gross Unrealized Losses | (712) | (127) | |
Fair Value | 5,841 | 5,971 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Amortized Cost | 10,047 | [1] | 5,059 |
Gross Unrealized Gains | 5 | 22 | |
Gross Unrealized Losses | (624) | (36) | |
Fair Value | 9,428 | [1] | 5,045 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Amortized Cost | 6,333 | [1] | 3,400 |
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (440) | (69) | |
Fair Value | 5,893 | [1] | 3,332 |
Residential mortgage backed securities [Member] | |||
Amortized Cost | 27,710 | 23,784 | |
Gross Unrealized Gains | 8 | 32 | |
Gross Unrealized Losses | (3,434) | (484) | |
Fair Value | 24,284 | 23,332 | |
Municipal bonds [Member] | |||
Amortized Cost | 59,514 | 49,164 | |
Gross Unrealized Gains | 27 | 1,501 | |
Gross Unrealized Losses | (6,242) | (52) | |
Fair Value | 53,299 | 50,613 | |
Corporate subordinated debt [Member] | |||
Amortized Cost | 5,060 | 3,072 | |
Gross Unrealized Losses | (418) | ||
Fair Value | $ 4,642 | $ 3,072 | |
[1]Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Securities Available-for-Sale_2
Securities Available-for-Sale - Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Due after five years through ten years, Amortized Cost | $ 13,304 | ||
Due after ten years, Amortized Cost | 57,823 | ||
Total U.S. Government-sponsored enterprises obligations, municipal bonds and corporate subordinated debt | 71,127 | ||
Mortgage-backed securities, Amortized Cost | 115,217 | $ 90,577 | |
Due after five years through ten years, Fair Value | 12,129 | ||
Due after ten years, Fair Value | 51,653 | ||
Total U.S. Government-sponsored enterprises obligations, municipal bonds and corporate subordinated debt | 63,782 | ||
Mortgage-backed securities, Fair Value | 103,387 | 91,365 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Mortgage-backed securities, Amortized Cost | 10,047 | [1] | 5,059 |
Mortgage-backed securities, Fair Value | 9,428 | [1] | 5,045 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Mortgage-backed securities, Amortized Cost | 6,333 | [1] | 3,400 |
Mortgage-backed securities, Fair Value | 5,893 | [1] | 3,332 |
Residential mortgage backed securities [Member] | |||
Mortgage-backed securities, Amortized Cost | 27,710 | 23,784 | |
Mortgage-backed securities, Fair Value | $ 24,284 | $ 23,332 | |
[1]Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Securities Available-for-Sale_3
Securities Available-for-Sale - Summary of gross unrealized losses and fair value for those investments with unrealized losses (Detail) $ in Thousands | Jun. 30, 2022 USD ($) Number | Dec. 31, 2021 USD ($) Number |
Less than 12 Months, Number of Securities | Number | 133 | 43 |
Less than 12 Months, Fair Value | $ 90,674 | $ 36,824 |
Less than 12 Months, Unrealized Losses | $ (9,519) | $ (633) |
More than 12 Months, Number of Securities | Number | 19 | 4 |
More than 12 Months, Fair Value | $ 7,560 | $ 3,837 |
More than 12 Months, Unrealized Losses | (2,351) | (135) |
Total, Fair Value | 98,234 | 40,661 |
Total, Unrealized Losses | $ (11,870) | $ (768) |
U.S. Government-sponsored enterprises obligations [Member] | ||
Less than 12 Months, Number of Securities | Number | 7 | 7 |
Less than 12 Months, Fair Value | $ 5,000 | $ 5,022 |
Less than 12 Months, Unrealized Losses | $ (491) | $ (80) |
More than 12 Months, Number of Securities | Number | 3 | 2 |
More than 12 Months, Fair Value | $ 841 | $ 949 |
More than 12 Months, Unrealized Losses | (221) | (47) |
Total, Fair Value | 5,841 | 5,971 |
Total, Unrealized Losses | $ (712) | $ (127) |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Less than 12 Months, Number of Securities | Number | 10 | 3 |
Less than 12 Months, Fair Value | $ 8,416 | $ 2,988 |
Less than 12 Months, Unrealized Losses | (624) | (36) |
Total, Fair Value | 8,416 | 2,988 |
Total, Unrealized Losses | $ (624) | $ (36) |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | ||
Less than 12 Months, Number of Securities | Number | 7 | 4 |
Less than 12 Months, Fair Value | $ 5,595 | $ 2,779 |
Less than 12 Months, Unrealized Losses | $ (306) | (69) |
More than 12 Months, Number of Securities | Number | 2 | |
More than 12 Months, Fair Value | $ 266 | |
More than 12 Months, Unrealized Losses | (134) | |
Total, Fair Value | 5,861 | 2,779 |
Total, Unrealized Losses | $ (440) | $ (69) |
Residential mortgage backed securities [Member] | ||
Less than 12 Months, Number of Securities | Number | 17 | 22 |
Less than 12 Months, Fair Value | $ 16,426 | $ 19,541 |
Less than 12 Months, Unrealized Losses | $ (1,521) | $ (399) |
More than 12 Months, Number of Securities | Number | 13 | 1 |
More than 12 Months, Fair Value | $ 5,954 | $ 2,304 |
More than 12 Months, Unrealized Losses | (1,913) | (85) |
Total, Fair Value | 22,380 | 21,845 |
Total, Unrealized Losses | $ (3,434) | $ (484) |
Municipal bonds [Member] | ||
Less than 12 Months, Number of Securities | Number | 88 | 7 |
Less than 12 Months, Fair Value | $ 50,595 | $ 6,494 |
Less than 12 Months, Unrealized Losses | $ (6,159) | $ (49) |
More than 12 Months, Number of Securities | Number | 1 | 1 |
More than 12 Months, Fair Value | $ 499 | $ 584 |
More than 12 Months, Unrealized Losses | (83) | (3) |
Total, Fair Value | 51,094 | 7,078 |
Total, Unrealized Losses | $ (6,242) | $ (52) |
Corporate subordinated debt [Member] | ||
Less than 12 Months, Number of Securities | Number | 4 | |
Less than 12 Months, Fair Value | $ 4,642 | |
Less than 12 Months, Unrealized Losses | (418) | |
Total, Fair Value | 4,642 | |
Total, Unrealized Losses | $ (418) |
Securities Available-for-Sale_4
Securities Available-for-Sale - Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Available For Sale Securities [Abstract] | ||||
Proceeds from sales, maturities and principal payments from securities available-for-sale | $ 746 | $ 8,697 | $ 2,542 | $ 18,443 |
Gross realized gains | 385 | 52 | 588 | |
Gross realized losses | (53) | (53) | ||
Net realized gains | $ 332 | $ 52 | $ 535 |
Securities Available-for-Sale_5
Securities Available-for-Sale - Additional Information (Detail) - Security | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Available For Sale Securities [Abstract] | ||
Number of holdings of securities aggregate carrying value exceeded ten percentage of stockholders' equity | 0 | 0 |
Loans - Additional Information
Loans - Additional Information (Detail) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) Number |
Loan balance | $ 192,000 | $ 195,000 |
Loans outstanding | 4,500,000 | 4,800,000 |
Residential Real Estate [Member] | ||
Loans collateralized by real estate | 0 | $ 0 |
Paycheck Protection Program [Member] | ||
CARES Act number of guaranteed loans | Number | 134 | |
CARES Act aggregate guaranteed outstanding loans | $ 13,100,000 | |
Paycheck Protection Program [Member] | Commercial and Industrial Loans [Member] | ||
CARES Act aggregate guaranteed outstanding loans | $ 139,000 | $ 5,500,000 |
Loans - Schedule of Accounts, N
Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 20, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Total loans | $ 383,440 | $ 374,991 | $ 374,991 | ||||
Net deferred loan costs | 2,161 | 1,650 | |||||
Allowance for loan losses | (3,644) | $ (3,642) | (3,590) | (3,590) | $ (3,466) | $ (3,404) | $ (3,342) |
Net loans | 381,957 | 373,051 | 373,051 | ||||
CRE [Member] | |||||||
Total loans | 77,349 | 72,057 | 72,057 | ||||
Allowance for loan losses | (1,019) | (894) | (833) | (792) | (913) | (753) | |
MF [Member] | |||||||
Total loans | 8,683 | 8,998 | 8,998 | ||||
Allowance for loan losses | (57) | (78) | (80) | (91) | (39) | (60) | |
C+I [Member] | |||||||
Total loans | 24,641 | 26,851 | 26,851 | ||||
Allowance for loan losses | (208) | (218) | (194) | (218) | (206) | (267) | |
ADL [Member] | |||||||
Total loans | 17,078 | 21,365 | 21,365 | ||||
Allowance for loan losses | (110) | (116) | (178) | (191) | (296) | (174) | |
RES [Member] | |||||||
Total loans | 240,242 | 234,199 | 234,199 | ||||
Allowance for loan losses | (2,025) | (2,188) | (2,139) | (1,750) | (1,559) | (1,656) | |
HELOC [Member] | |||||||
Total loans | 9,201 | 6,947 | 6,947 | ||||
Allowance for loan losses | (87) | (62) | (63) | (78) | (67) | (78) | |
CON [Member] | |||||||
Total loans | 6,246 | $ 4,574 | 4,574 | ||||
Allowance for loan losses | $ (111) | $ (86) | $ (75) | $ (52) | $ (50) | $ (52) |
Loans - Transactions In The All
Loans - Transactions In The Allowance For Loan Losses ("ALL") (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Balance | $ 3,642 | $ 3,404 | $ 3,590 | $ 3,342 |
Provision for loan losses | 25 | 60 | 85 | |
Charge-offs | (9) | |||
Recoveries | 2 | 37 | 3 | 39 |
Balance | 3,644 | 3,466 | 3,644 | 3,466 |
CRE [Member] | ||||
Balance | 894 | 913 | 753 | |
Provision for loan losses | 125 | (121) | 186 | 39 |
Balance | 1,019 | 792 | 1,019 | 792 |
MF [Member] | ||||
Balance | 78 | 39 | 60 | |
Provision for loan losses | (21) | 52 | (23) | 31 |
Balance | 57 | 91 | 57 | 91 |
C+I [Member] | ||||
Balance | 218 | 206 | 267 | |
Provision for loan losses | (11) | (24) | 13 | (86) |
Recoveries | 1 | 36 | 1 | 37 |
Balance | 208 | 218 | 208 | 218 |
ADL [Member] | ||||
Balance | 116 | 296 | 174 | |
Provision for loan losses | (6) | (105) | (68) | 17 |
Balance | 110 | 191 | 110 | 191 |
RES [Member] | ||||
Balance | 2,188 | 1,559 | 1,656 | |
Provision for loan losses | (163) | 191 | (114) | 94 |
Balance | 2,025 | 1,750 | 2,025 | 1,750 |
HELOC [Member] | ||||
Balance | 62 | 67 | 78 | |
Provision for loan losses | 25 | 11 | 24 | |
Balance | 87 | 78 | 87 | 78 |
CON [Member] | ||||
Balance | 86 | 50 | 52 | |
Provision for loan losses | 24 | 1 | 43 | (2) |
Charge-offs | (9) | |||
Recoveries | 1 | 1 | 2 | 2 |
Balance | 111 | 52 | 111 | 52 |
Unallocated [Member] | ||||
Balance | 274 | 302 | ||
Provision for loan losses | 27 | 20 | (1) | (8) |
Balance | $ 27 | $ 294 | $ 27 | $ 294 |
Loans - Information About Loans
Loans - Information About Loans And The ALL By Portfolio Segment Are Summarized (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 20, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Individually evaluated for impairment | $ 720 | $ 969 | |||||
Collectively evaluated for impairment | 382,720 | 374,022 | |||||
Total | 383,440 | $ 374,991 | 374,991 | ||||
Collectively evaluated for impairment | 3,644 | 3,590 | |||||
Total | 3,644 | $ 3,642 | 3,590 | 3,590 | $ 3,466 | $ 3,404 | $ 3,342 |
CRE [Member] | |||||||
Individually evaluated for impairment | 98 | 104 | |||||
Collectively evaluated for impairment | 77,251 | 71,953 | |||||
Total | 77,349 | 72,057 | 72,057 | ||||
Collectively evaluated for impairment | 1,019 | 833 | |||||
Total | 1,019 | 894 | 833 | 792 | 913 | 753 | |
MF [Member] | |||||||
Collectively evaluated for impairment | 8,683 | 8,998 | |||||
Total | 8,683 | 8,998 | 8,998 | ||||
Collectively evaluated for impairment | 57 | 80 | |||||
Total | 57 | 78 | 80 | 91 | 39 | 60 | |
C+I [Member] | |||||||
Individually evaluated for impairment | 20 | 28 | |||||
Collectively evaluated for impairment | 24,621 | 26,823 | |||||
Total | 24,641 | 26,851 | 26,851 | ||||
Collectively evaluated for impairment | 208 | 194 | |||||
Total | 208 | 218 | 194 | 218 | 206 | 267 | |
ADL [Member] | |||||||
Collectively evaluated for impairment | 17,078 | 21,365 | |||||
Total | 17,078 | 21,365 | 21,365 | ||||
Collectively evaluated for impairment | 110 | 178 | |||||
Total | 110 | 116 | 178 | 191 | 296 | 174 | |
RES [Member] | |||||||
Individually evaluated for impairment | 487 | 722 | |||||
Collectively evaluated for impairment | 239,755 | 233,477 | |||||
Total | 240,242 | 234,199 | 234,199 | ||||
Collectively evaluated for impairment | 2,025 | 2,139 | |||||
Total | 2,025 | 2,188 | 2,139 | 1,750 | 1,559 | 1,656 | |
HELOC [Member] | |||||||
Individually evaluated for impairment | 115 | 115 | |||||
Collectively evaluated for impairment | 9,086 | 6,832 | |||||
Total | 9,201 | 6,947 | 6,947 | ||||
Collectively evaluated for impairment | 87 | 63 | |||||
Total | 87 | 62 | 63 | 78 | 67 | 78 | |
CON [Member] | |||||||
Collectively evaluated for impairment | 6,246 | 4,574 | |||||
Total | 6,246 | $ 4,574 | 4,574 | ||||
Collectively evaluated for impairment | 111 | 75 | |||||
Total | 111 | $ 86 | 75 | 52 | 50 | 52 | |
Unallocated [Member] | |||||||
Collectively evaluated for impairment | 27 | 28 | |||||
Total | $ 27 | $ 28 | $ 294 | $ 274 | $ 302 |
Loans - Analysis Of Past Due Lo
Loans - Analysis Of Past Due Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 20, 2021 |
Total | $ 383,440 | $ 374,991 | $ 374,991 |
Non-Accrual Loans | 602 | 837 | |
30-59 Days Past Due [Member] | |||
Total Past Due | 10 | 123 | |
60-89 Days Past Due [Member] | |||
Total Past Due | 616 | ||
Greater than 90 Days [Member] | |||
Total Past Due | 602 | 235 | |
Total Past Due | |||
Total Past Due | 612 | 974 | |
Current | |||
Total Past Due | 382,828 | 374,017 | |
CRE [Member] | |||
Total | 77,349 | 72,057 | 72,057 |
CRE [Member] | Current | |||
Total Past Due | 77,349 | 72,057 | |
MF [Member] | |||
Total | 8,683 | 8,998 | 8,998 |
MF [Member] | Current | |||
Total Past Due | 8,683 | 8,998 | |
C+I [Member] | |||
Total | 24,641 | 26,851 | 26,851 |
C+I [Member] | Current | |||
Total Past Due | 24,641 | 26,851 | |
ADL [Member] | |||
Total | 17,078 | 21,365 | 21,365 |
ADL [Member] | Current | |||
Total Past Due | 17,078 | 21,365 | |
RES [Member] | |||
Total | 240,242 | 234,199 | 234,199 |
Non-Accrual Loans | 487 | 722 | |
RES [Member] | 60-89 Days Past Due [Member] | |||
Total Past Due | 487 | ||
RES [Member] | Greater than 90 Days [Member] | |||
Total Past Due | 487 | 235 | |
RES [Member] | Total Past Due | |||
Total Past Due | 487 | 722 | |
RES [Member] | Current | |||
Total Past Due | 239,755 | 233,477 | |
HELOC [Member] | |||
Total | 9,201 | 6,947 | 6,947 |
Non-Accrual Loans | 115 | 115 | |
HELOC [Member] | 30-59 Days Past Due [Member] | |||
Total Past Due | 117 | ||
HELOC [Member] | 60-89 Days Past Due [Member] | |||
Total Past Due | 129 | ||
HELOC [Member] | Greater than 90 Days [Member] | |||
Total Past Due | 115 | ||
HELOC [Member] | Total Past Due | |||
Total Past Due | 115 | 246 | |
HELOC [Member] | Current | |||
Total Past Due | 9,086 | 6,701 | |
CON [Member] | |||
Total | 6,246 | $ 4,574 | 4,574 |
CON [Member] | 30-59 Days Past Due [Member] | |||
Total Past Due | 10 | 6 | |
CON [Member] | Total Past Due | |||
Total Past Due | 10 | 6 | |
CON [Member] | Current | |||
Total Past Due | $ 6,236 | $ 4,568 |
Loans - Provides Information On
Loans - Provides Information On Impaired Loans (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Recorded Investment | $ 602 | $ 837 |
Unpaid Principal Balance | 602 | 837 |
Average Recorded Investment | 719 | 290 |
Interest Income Recognized | 1 | 14 |
C+I [Member] | ||
Average Recorded Investment | 203 | |
Interest Income Recognized | 12 | |
RES [Member] | ||
Recorded Investment | 487 | 722 |
Unpaid Principal Balance | 487 | 722 |
Average Recorded Investment | 604 | 77 |
Interest Income Recognized | 1 | 2 |
HELOC [Member] | ||
Recorded Investment | 115 | 115 |
Unpaid Principal Balance | 115 | 115 |
Average Recorded Investment | $ 115 | $ 10 |
Loans - Internal Risk Rating Of
Loans - Internal Risk Rating Of Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 20, 2021 |
Total loans | $ 383,440 | $ 374,991 | $ 374,991 |
Pass [Member] | |||
Total loans | 382,720 | 371,321 | |
Special Mention [Member] | |||
Total loans | 2,701 | ||
Substandard [Member] | |||
Total loans | 720 | 969 | |
CRE [Member] | |||
Total loans | 77,349 | 72,057 | 72,057 |
CRE [Member] | Pass [Member] | |||
Total loans | 77,251 | 69,252 | |
CRE [Member] | Special Mention [Member] | |||
Total loans | 2,701 | ||
CRE [Member] | Substandard [Member] | |||
Total loans | 98 | 104 | |
MF [Member] | |||
Total loans | 8,683 | 8,998 | 8,998 |
MF [Member] | Pass [Member] | |||
Total loans | 8,683 | 8,998 | |
C+I [Member] | |||
Total loans | 24,641 | 26,851 | 26,851 |
C+I [Member] | Pass [Member] | |||
Total loans | 24,621 | 26,823 | |
C+I [Member] | Substandard [Member] | |||
Total loans | 20 | 28 | |
ADL [Member] | |||
Total loans | 17,078 | 21,365 | 21,365 |
ADL [Member] | Pass [Member] | |||
Total loans | 17,078 | 21,365 | |
RES [Member] | |||
Total loans | 240,242 | 234,199 | 234,199 |
RES [Member] | Pass [Member] | |||
Total loans | 239,755 | 233,477 | |
RES [Member] | Substandard [Member] | |||
Total loans | 487 | 722 | |
HELOC [Member] | |||
Total loans | 9,201 | 6,947 | 6,947 |
HELOC [Member] | Pass [Member] | |||
Total loans | 9,086 | 6,832 | |
HELOC [Member] | Substandard [Member] | |||
Total loans | 115 | 115 | |
CON [Member] | |||
Total loans | 6,246 | 4,574 | $ 4,574 |
CON [Member] | Pass [Member] | |||
Total loans | $ 6,246 | $ 4,574 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Transfers And Servicing [Abstract] | |||||
Transferred financial assets principal amount outstanding | $ 37,700,000 | $ 37,700,000 | $ 40,600,000 | ||
Loan servicing income | $ 37,000 | $ 1,000 | $ 89,000 | $ 84,000 |
Loan Servicing - Summary Of Act
Loan Servicing - Summary Of Activity In Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Transfers And Servicing [Abstract] | ||||
Balance, beginning of year | $ 350 | $ 329 | $ 322 | $ 273 |
Additions | 17 | 5 | 30 | |
Payoffs | (2) | (18) | (18) | (32) |
Change in fair value due to change in assumptions | 16 | (25) | 55 | 32 |
Balance, end of year | $ 364 | $ 303 | $ 364 | $ 303 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
NOW and demand deposits | $ 205,241 | $ 206,235 |
Money market deposits | 63,736 | 71,317 |
Savings deposits | 64,075 | 57,365 |
Time deposits of $250,000 and greater | 4,964 | 6,281 |
Time deposits less than $250,000 | 49,852 | 52,045 |
Total deposits | $ 387,868 | $ 393,243 |
Deposits - Time Deposit Maturit
Deposits - Time Deposit Maturities (Detail) $ in Thousands | Jun. 30, 2022 USD ($) |
Deposits [Abstract] | |
2022 | $ 14,934 |
2023 | 20,788 |
2024 | 7,277 |
2025 | 7,363 |
2026 | 3,828 |
2027 | 626 |
Total | $ 54,816 |
Deposits - Additional informati
Deposits - Additional information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Time Deposits [Member] | ||
Brokered time deposits | $ 18.1 | $ 18.1 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank Advances by Branch of FHLB Bank (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Principal Amounts | $ 64,250 | $ 29,462 |
Federal Home Loan Bank Advances One | ||
Principal Amounts | $ 47,050 | $ 12,262 |
Maturity Dates | 2022 | 2022 |
Federal Home Loan Bank Advances One | Minimum [Member] | ||
Interest Rates | 0.47% | 0% |
Federal Home Loan Bank Advances One | Maximum [Member] | ||
Interest Rates | 1.70% | 0.31% |
Federal Home Loan Bank Advances Two | ||
Principal Amounts | $ 15,000 | $ 15,000 |
Maturity Dates | 2023 | 2023 |
Federal Home Loan Bank Advances Two | Minimum [Member] | ||
Interest Rates | 0.44% | 0.44% |
Federal Home Loan Bank Advances Two | Maximum [Member] | ||
Interest Rates | 0.45% | 0.45% |
Federal Home Loan Bank Advances Three | ||
Principal Amounts | $ 800 | $ 800 |
Maturity Dates | 2024 | 2024 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Four | ||
Principal Amounts | $ 520 | $ 520 |
Maturity Dates | 2025 | 2025 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Five | ||
Principal Amounts | $ 250 | $ 250 |
Maturity Dates | 2028 | 2028 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Six | ||
Principal Amounts | $ 200 | $ 200 |
Maturity Dates | 2030 | 2030 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Seven | ||
Principal Amounts | $ 430 | $ 430 |
Maturity Dates | 2031 | 2031 |
Interest Rates | 0% | 0% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Banks unused remaining borrowing capacity | $ 58,000 | $ 109,700 |
Advances through FLHB | 64,250 | 29,462 |
Federal home loan bank maximum borrowing capacity | 3,000 | 3,000 |
Fed Funds Borrowing [Member] | ||
Fed funds borrowing capacity | 5,000 | |
New England Program [Member] | ||
Advances through FLHB | $ 2,200 | $ 4,500 |
Interest rate | 0% | 0% |
Employee Benefits - Additional
Employee Benefits - Additional information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | May 26, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 44,000 | $ 41,000 | $ 99,000 | $ 91,000 | |||
Funded percentage | 100% | 100% | 100% | ||||
Deferred Compensation Liability, Current and Noncurrent | $ 1,650,000 | $ 1,650,000 | $ 1,729,000 | ||||
Scenario Forecast [Member] | |||||||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | $ 200,000 | ||||||
Pentegra DB Plan [Member] | |||||||
Pension Cost (Reversal of Cost) | 50,000 | 90,000 | 100,000 | 189,000 | |||
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||||
Liability, Defined Benefit Plan | $ 647,000 | $ 647,000 | 634,000 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5% | 5% | |||||
Employee salary incremental percent | 3% | ||||||
Defined Contribution Plan, Cost | $ 20,000 | 20,000 | $ 41,000 | 41,000 | |||
Executive Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||||
Liability, Defined Benefit Plan | $ 45,000 | $ 45,000 | $ 90,000 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | 6.25% | ||||
Defined Contribution Plan, Cost | $ 1,000 | 2,000 | $ 2,000 | 3,000 | |||
Endorsement Method Split Dollar Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||||
Pension Cost (Reversal of Cost) | 0 | 0 | 0 | 0 | |||
Liability, Defined Benefit Plan | 35,000 | 35,000 | $ 35,000 | ||||
Deferred Directors Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||||
Pension Cost (Reversal of Cost) | 13,000 | $ 17,000 | 32,000 | $ 34,000 | |||
Liability, Defined Benefit Plan | $ 494,000 | $ 494,000 | $ 550,000 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | 6.25% | ||||
Defined Contribution Plan, Cost | $ 20,000 | ||||||
Previous final base fee, percentage | 70% | ||||||
Revised fixed annual retirement benefits, payable | $ 200,000 | ||||||
Deferred Compensation Liability, Current and Noncurrent | $ 430,000 | $ 430,000 | $ 420,000 |
Employee Benefits - Fair Value
Employee Benefits - Fair Value of Plan Assets Divided by Funding Target (Detail) | Jul. 01, 2021 | |
Pension Plan [Member] | ||
Percentage of funding status | 104.99% | [1] |
[1]Fair value of plan assets reflects any contributions received through June 30, 2021. |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 18, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares committed to be released each year, ESOP | 5,962 | 5,962 | 11,924 | |||
Unearned compensation for ESOP | $ 2,906,000 | $ 2,906,000 | $ 3,163,000 | |||
Stock options granted, outstanding | 0 | |||||
Share price | $ 0 | |||||
Income tax expense | 66,000 | $ 173,000 | $ 124,000 | $ 429,000 | ||
Restricted Stock Awards [Member] | Directors and Members [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, | 118,270 | |||||
Share price | $ 9.99 | |||||
Total fair value related to stock options granted | $ 1,200,000 | |||||
Minimum [Member] | Restricted Stock Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Issued stock option granted, term | 3 years | |||||
2021 Equity Incentive Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unearned compensation for ESOP | 900,000 | $ 900,000 | $ 1,100,000 | |||
Common stock shares issued during period, new issues | 417,327 | |||||
Issued stock option granted, term | 10 years | |||||
Share based expense recognized | 98,000 | $ 197,000 | ||||
Income tax expense | $ 27,000 | $ 53,000 | ||||
Weighted average future recognition period | 2 years 4 months 24 days | 2 years 10 months 24 days | ||||
2021 Equity Incentive Plan [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Exercise of Option | 298,091 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, | 119,236 | |||||
First Seacoast Bank Employee Stock Ownership Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares committed to be released each year, ESOP | 11,924 | 11,924 | ||||
Employee stock option compensation recognized | $ 31,000 | $ 29,000 | $ 62,000 | $ 57,000 | ||
Unearned compensation for ESOP | 2,000,000 | 2,000,000 | $ 2,000,000 | |||
Employee stock option unallocated share fair value | $ 2,100,000 | $ 2,100,000 | 2,200,000 | |||
Employee stock option plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock repurchase | 238,473 | |||||
Percentage of purchase price common stock | 100% | |||||
Remaining principal balance of debt | $ 2,100,000 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Company Compensation Expense for the ESOP (Detail) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Allocated | 35,772 | 23,848 |
Committed to be allocated | 5,962 | 11,924 |
Unallocated | 196,739 | 202,701 |
Total | 238,473 | 238,473 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Non-vested Restricted Shares Outstanding (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Non-vested at beginning of period | shares | 118,270 |
Granted | shares | 0 |
Vested | shares | 0 |
Forfeited | shares | 0 |
Non-vested at end of period | shares | 118,270 |
Non-vested at beginning of period | $ / shares | $ 9.99 |
Share price | $ / shares | 0 |
Vested | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Non-vested at end of period | $ / shares | $ 9.99 |
Leases - Additional information
Leases - Additional information (Detail) - Branch Office and Certain Equipment [Member] | 6 Months Ended |
Jun. 30, 2022 | |
Lessee Lease Description [Line Items] | |
Operating leases expiration beginning year | 2022 |
Operating leases expiration ending year | 2027 |
Operating lease option to extend | true |
Operating lease, renewal term | 4 years |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Asset and Net Lease Liability (Detail) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
Right-of-use asset | $ 224 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets |
Net lease liability | $ 224 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities |
Leases - Components of Operatin
Leases - Components of Operating Lease Cost and Other Related Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 31 |
Total operating lease cost | 31 |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases | $ 31 |
Weighted average lease term | 4 years 9 months 18 days |
Weighted average discount rate | 3.28% |
Leases - Schedule of Total Mini
Leases - Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 26 |
2023 | 52 |
2024 | 49 |
2025 | 44 |
2026 | 43 |
Thereafter | 29 |
Total minimum lease payments | 243 |
Less: interest | (19) |
Net lease liability | $ 224 |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | ||||
Gains on sale of securities available-for-sale | $ (332) | $ (52) | $ (535) | |
Tax effect | 90 | 14 | 145 | |
Net income (loss) | (242) | (38) | (390) | |
Net amortization of bond premiums | $ 249 | 177 | 487 | 318 |
Tax effect | (67) | (47) | (132) | (86) |
Net income (loss) | 182 | 130 | 355 | 232 |
Net interest expense on swaps | (6) | 13 | 7 | 18 |
Tax effect | 2 | (4) | (2) | (5) |
Net income (loss) | (4) | 9 | 5 | 13 |
Total reclassification adjustments | $ 178 | $ (103) | $ 322 | $ (145) |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Changes in Component of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Balance at the beginning of the period | [1] | $ (4,022) | $ 833 | $ 721 | $ 1,381 |
Other comprehensive (loss) income before reclassification | [1] | (4,239) | 346 | (9,126) | (160) |
Amounts reclassified from AOCI | [1] | 178 | (103) | 322 | (145) |
Other comprehensive (loss) income | [1] | (4,061) | 243 | (8,804) | (305) |
Balance at the end of the period | [1] | (8,083) | 1,076 | (8,083) | 1,076 |
Net Unrealized Gains (Losses) on AFS Securities [Member] | |||||
Balance at the beginning of the period | [1] | (4,485) | 757 | 575 | 1,481 |
Other comprehensive (loss) income before reclassification | [1] | (4,323) | 391 | (9,518) | (287) |
Amounts reclassified from AOCI | [1] | 182 | (112) | 317 | (158) |
Other comprehensive (loss) income | [1] | (4,141) | 279 | (9,201) | (445) |
Balance at the end of the period | [1] | (8,626) | 1,036 | (8,626) | 1,036 |
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||||
Balance at the beginning of the period | [1] | 463 | 76 | 146 | (100) |
Other comprehensive (loss) income before reclassification | [1] | 84 | (45) | 392 | 127 |
Amounts reclassified from AOCI | [1] | (4) | 9 | 5 | 13 |
Other comprehensive (loss) income | [1] | 80 | (36) | 397 | 140 |
Balance at the end of the period | [1] | $ 543 | $ 40 | $ 543 | $ 40 |
[1]All amounts are net of tax |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Capital Requirements (Detail) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Actual, Total Capital (to risk- weighted assets) | $ 54,064 | $ 52,798 |
Actual, Tier 1 Capital (to risk- weighted assets) | 50,373 | 49,151 |
Actual, Tier 1 Capital (to average assets) | 50,373 | 49,151 |
Actual, Common Equity Tier 1 (to risk-weighted assets) | $ 50,373 | $ 49,151 |
Actual Ratio, Total Capital (to risk- weighted assets) | 0.1670 | 0.1787 |
Actual Ratio, Tier 1 Capital (to risk- weighted assets) | 0.1556 | 0.1663 |
Actual Ratio, Tier 1 Capital (to average assets) | 0.1001 | 0.0992 |
Actual Ratio, Common Equity Tier 1 (to risk-weighted assets) | 0.1556 | 0.1663 |
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 25,897 | $ 23,641 |
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets) | 19,423 | 17,731 |
Minimum Capital Requirement, Tier 1 Capital (to average assets) | 20,127 | 19,811 |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 14,567 | $ 13,298 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.0800 | 0.0800 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.0600 | 0.0600 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.0400 | 0.0400 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 4.50% | 4.50% |
Minimum Capital Required to be Well Capitalized, Total Capital (to risk-weighted assets) | $ 32,372 | $ 29,546 |
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to risk-weighted assets) | 25,897 | 23,644 |
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to average assets) | 25,159 | 24,774 |
Minimum Capital Required to be Well Capitalized, Common Equity Tier 1 (to risk-weighted assets) | $ 21,042 | $ 19,211 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.1000 | 0.1000 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.0800 | 0.0800 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.0500 | 0.0500 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 0.0650 | 0.0650 |
Fully Phased In [Member] | ||
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 33,990 | $ 31,029 |
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets) | 27,516 | 25,119 |
Minimum Capital Requirement, Tier 1 Capital (to average assets) | 20,127 | 19,811 |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 22,660 | $ 20,686 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.1050 | 0.1050 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.0850 | 0.0850 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.0400 | 0.0400 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 7% | 7% |
Common Stock Repurchases (Addit
Common Stock Repurchases (Additional Information) (Detail) - shares | Jun. 30, 2022 | Apr. 30, 2022 | Sep. 23, 2020 |
Equity Class Of Treasury Stock [Line Items] | |||
Number of shares authorized for repurchase | 1,108 | ||
Common Stock [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Percentage of repurchase of Common Stock | 2.30% | ||
Equity method investment ownership percentage | 5% | ||
Number of shares authorized for repurchase | 136,879 | ||
Common Stock [Member] | Maximum [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Number of shares authorized for repurchase | 136,879 |
Common Stock Repurchases - Sche
Common Stock Repurchases - Schedule of repurchases of common stock (Details) - $ / shares | 1 Months Ended | 6 Months Ended | |
May 31, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | |
Equity [Abstract] | |||
Total Number of Shares Purchased | 1,108 | 33,835 | 34,943 |
Average Price Paid per Share | $ 10.58 | $ 10.74 | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 1,108 | 33,835 | 34,943 |
Maximum Number of Shares that may Yet Be Purchased Under the Plans or Programs | 1,108 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) Derivative | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Derivative | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Derivatives Fair Value [Line Items] | |||||
Interest rate swaps | $ 544,000 | $ 192,000 | |||
Cash collateral from counterparties | $ 527,000 | 527,000 | $ 526,000 | ||
Interest Expense [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Interest rate swaps | 180,000 | ||||
Balance Sheet Hedges on 90-day Advances from FHLB [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Liabilities | 10,000,000 | $ 10,000,000 | 10,000,000 | 10,000,000 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount | 10,000,000 | 10,000,000 | 10,000,000 | ||
Interest rate swaps | 108,000 | $ (49,000) | 545,000 | $ 192,000 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Other Liabilities [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Interest rate swap derivative liability | 744,000 | 744,000 | 200,000 | ||
Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount | 5,000,000 | 5,000,000 | 5,000,000 | ||
Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount | 5,000,000 | 5,000,000 | 5,000,000 | ||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Liabilities | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Number of notional interest rate swaps | Derivative | 2 | 2 | |||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount | $ 5,000,000 | $ 5,000,000 | |||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount | $ 5,000,000 | $ 5,000,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Summary of the Company's Derivatives Associated with its Interest Rate Risk Management Activities (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives Fair Value [Line Items] | ||
Other Liabilities | $ 10,000 | $ 10,000 |
Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Start Date | Apr. 13, 2020 | Apr. 13, 2020 |
Maturity Date | Apr. 13, 2025 | Apr. 13, 2025 |
Rate | 0.68% | 0.68% |
Notional | $ 5,000 | $ 5,000 |
Other Assets | 328 | $ 85 |
Designated as Hedging Instrument | Interest Rate Swap 2020 [Member] | Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | $ 5,000 | |
Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Start Date | Apr. 13, 2021 | Apr. 13, 2021 |
Maturity Date | Apr. 13, 2026 | Apr. 13, 2026 |
Rate | 0.74% | 0.74% |
Notional | $ 5,000 | $ 5,000 |
Other Assets | 416 | 115 |
Designated as Hedging Instrument | Interest Rate Swap 2021 [Member] | Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 5,000 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 10,000 | 10,000 |
Other Assets | $ 744 | $ 200 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Summary of the Effect of Cash Flow Hedge Accounting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivatives Fair Value [Line Items] | ||||
Location and Amount of Gain or Loss Recognized in Consolidated Statements of Income | $ 212 | $ 247 | $ 391 | $ 512 |
Amount Reclassified from AOCI into Expense | ||||
Derivatives Fair Value [Line Items] | ||||
Location and Amount of Gain or Loss Recognized in Consolidated Statements of Income | $ 6 | $ (13) | $ (6) | $ (18) |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Fair Value, by Balance Sheet Grouping (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | $ 103,387 | $ 91,365 | |
U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 5,841 | 5,971 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 9,428 | [1] | 5,045 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 5,893 | [1] | 3,332 |
Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 24,284 | 23,332 | |
Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 53,299 | 50,613 | |
Fair Value, Measurements, Recurring [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 4,642 | 3,072 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 5,841 | 5,971 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 9,428 | 5,045 | |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 5,893 | 3,332 | |
Fair Value, Measurements, Recurring [Member] | Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 24,283 | 23,332 | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 53,299 | 50,613 | |
Fair Value, Measurements, Recurring [Member] | Derivative [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 744 | 200 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 4,642 | 3,072 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 5,841 | 5,971 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 9,428 | 5,045 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 5,893 | 3,332 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 24,283 | 23,332 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 53,299 | 50,613 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 744 | 200 | |
Fair Value, Measurements, Recurring [Member] | Mortgage servicing rights [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 364 | 322 | |
Fair Value, Measurements, Recurring [Member] | Mortgage servicing rights [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | $ 364 | $ 322 | |
[1]Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - Mortgage servicing rights [Member] - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Beginning Balance | [1] | $ 322 | $ 273 |
Included in net income | [1] | 42 | 30 |
Ending Balance | [1] | $ 364 | $ 303 |
[1]Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing income in the Company’s consolidated statements of income. |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Mortgage servicing rights [Member] | |||||
Mortgage Servicing Rights | [1] | $ 364 | $ 322 | $ 303 | $ 273 |
Prepayment Rate [Member] | Mortgage servicing rights [Member] | |||||
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |||
Mortgage Servicing Rights | $ 364 | $ 322 | |||
Prepayment Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.0711 | 0.0663 | |||
Prepayment Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.2828 | 0.2556 | |||
Prepayment Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0871 | 0.1339 | ||
Fair value valuation techniques | Prepayment Rate | Prepayment Rate | |||
Discount Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.0900 | 0.0900 | |||
Discount Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.0900 | 0.0900 | |||
Discount Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0900 | 0.0900 | ||
Fair value valuation techniques | Discount Rate | Discount Rate | |||
Delinquency Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.0230 | 0.0282 | |||
Delinquency Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.0304 | 0.0363 | |||
Delinquency Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0243 | 0.0296 | ||
Fair value valuation techniques | Delinquency Rate | Delinquency Rate | |||
Default Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.0018 | 0.0008 | |||
Default Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.0028 | 0.0014 | |||
Default Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0020 | 0.0013 | ||
Fair value valuation techniques | Default Rate | Default Rate | |||
[1]Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing income in the Company’s consolidated statements of income.[2]Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Non-financial assets and liabilities measured at fair value on a recurring basis | $ 0 | |
Foreclosed assets | 0 | $ 0 |
Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Fair Value Measurements, Recurring and Nonrecurring (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 20, 2021 |
Financial Assets: | |||
Cash and due from banks | $ 4,057 | $ 6,638 | |
Interest-bearing time deposits with other banks | 996 | 1,245 | |
Federal Home Loan Bank stock | 2,684 | 1,688 | |
Bank-owned life insurance | 4,502 | 4,461 | |
Loans, net | 381,957 | 373,051 | $ 373,051 |
Accrued interest receivable | 1,646 | 1,499 | |
Financial Liabilities: | |||
Deposits | 387,868 | 393,243 | |
Advances from Federal Home Loan Bank | 64,250 | 29,462 | |
Mortgagors’ tax escrow | 725 | 652 | |
Cash and due from banks [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 4,057 | 6,638 | |
Interest-bearing time deposits with other banks [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 996 | 1,245 | |
Federal Home Loan Bank stock [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 2,684 | 1,688 | |
Bank-owned life insurance [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 4,502 | 4,461 | |
Loans, net [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 358,522 | 371,587 | |
Accrued interest receivable [member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 1,646 | 1,499 | |
Deposits [Member] | |||
Financial Liabilities: | |||
Financial Liabilities Fair Value Disclosure | 385,859 | 393,145 | |
Federal Home Loan Bank Borrowings [Member] | |||
Financial Liabilities: | |||
Financial Liabilities Fair Value Disclosure | 62,866 | 29,063 | |
Mortgagors' tax escrow [Member] | |||
Financial Liabilities: | |||
Financial Liabilities Fair Value Disclosure | 725 | 652 | |
Fair Value, Inputs, Level 1 [Member] | Cash and due from banks [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 4,057 | 6,638 | |
Fair Value, Inputs, Level 1 [Member] | Accrued interest receivable [member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 1,646 | 1,499 | |
Fair Value, Inputs, Level 1 [Member] | Deposits [Member] | |||
Financial Liabilities: | |||
Financial Liabilities Fair Value Disclosure | 333,051 | 334,917 | |
Fair Value, Inputs, Level 2 [Member] | Interest-bearing time deposits with other banks [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 996 | 1,245 | |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank stock [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 2,684 | 1,688 | |
Fair Value, Inputs, Level 2 [Member] | Bank-owned life insurance [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | 4,502 | 4,461 | |
Fair Value, Inputs, Level 2 [Member] | Deposits [Member] | |||
Financial Liabilities: | |||
Financial Liabilities Fair Value Disclosure | 52,808 | 58,228 | |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank Borrowings [Member] | |||
Financial Liabilities: | |||
Financial Liabilities Fair Value Disclosure | 62,866 | 29,063 | |
Fair Value, Inputs, Level 2 [Member] | Mortgagors' tax escrow [Member] | |||
Financial Liabilities: | |||
Financial Liabilities Fair Value Disclosure | 725 | 652 | |
Fair Value, Inputs, Level 3 [Member] | Loans, net [Member] | |||
Assets, Fair Value Disclosure | |||
Assets, Fair Value Disclosure | $ 358,522 | $ 371,587 |