Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39090 | |
Entity Registrant Name | Provident Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 84-4132422 | |
Entity Address, Address Line One | 5 Market Street | |
Entity Address, City or Town | Amesbury | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01913 | |
City Area Code | 978 | |
Local Phone Number | 834-8555 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | PVBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,685,720 | |
Entity Central Index Key | 0001778784 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 32,254 | $ 42,923 |
Short-term investments | 265,604 | 37,706 |
Cash and cash equivalents | 297,858 | 80,629 |
Debt securities available-for-sale (at fair value) | 27,656 | 28,600 |
Federal Home Loan Bank stock, at cost | 3,309 | 4,266 |
Loans, net of allowance for credit losses of $23,981 and $28,069 as of June 30, 2023 and December 31, 2022, respectively | 1,333,564 | 1,416,047 |
Bank owned life insurance | 44,153 | 43,615 |
Premises and equipment, net | 13,400 | 13,580 |
Other repossessed assets | 6,051 | |
Accrued interest receivable | 5,007 | 6,597 |
Right-of-use assets | 3,861 | 3,942 |
Deferred tax asset, net | 15,722 | 16,793 |
Other assets | 17,057 | 16,261 |
Total assets | 1,761,587 | 1,636,381 |
Deposits: | ||
Noninterest-bearing | 404,012 | 520,226 |
Interest-bearing | 1,044,074 | 759,356 |
Total deposits | 1,448,086 | 1,279,582 |
Borrowings: | ||
Short-term borrowings | 70,000 | 108,500 |
Long-term borrowings | 9,763 | 18,329 |
Total borrowings | 79,763 | 126,829 |
Operating lease liabilities | 4,227 | 4,282 |
Other liabilities | 14,439 | 18,146 |
Total liabilities | 1,546,515 | 1,428,839 |
Shareholders' equity: | ||
Preferred stock; authorized 50,000 shares: no shares issued and outstanding | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 17,684,720 and 17,669,698 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 177 | 177 |
Additional paid-in capital | 123,444 | 122,847 |
Retained earnings | 100,894 | 94,630 |
Accumulated other comprehensive loss | (1,891) | (2,200) |
Unearned compensation - ESOP | (7,552) | (7,912) |
Total shareholders' equity | 215,072 | 207,542 |
Total liabilities and shareholders' equity | $ 1,761,587 | $ 1,636,381 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Allowance for credit loss on loans | $ 23,981 | $ 28,069 |
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,684,720 | 17,669,698 |
Common stock, shares outstanding | 17,684,720 | 17,669,698 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 19,652 | $ 18,558 | $ 39,658 | $ 36,770 |
Interest and dividends on debt securities available-for-sale | 246 | 194 | 484 | 373 |
Interest on short-term investments | 2,978 | 400 | 3,361 | 459 |
Total interest and dividend income | 22,876 | 19,152 | 43,503 | 37,602 |
Interest expense: | ||||
Interest on deposits | 7,670 | 476 | 11,571 | 931 |
Interest on short-term borrowings | 230 | 1,054 | ||
Interest on long-term borrowings | 74 | 71 | 160 | 141 |
Total interest expense | 7,974 | 547 | 12,785 | 1,072 |
Net interest and dividend income | 14,902 | 18,605 | 30,718 | 36,530 |
Credit loss (benefit) expense - loans | (740) | 1,005 | 2,195 | 1,088 |
Credit loss (benefit) expense - off - balance sheet credit exposures | (327) | 36 | (1,483) | 36 |
Total credit loss (benefit) expense | (1,067) | 1,041 | 712 | 1,124 |
Net interest and dividend income after credit loss (benefit) expense | 15,969 | 17,564 | 30,006 | 35,406 |
Noninterest income: | ||||
Customer service fees on deposit accounts | 769 | 619 | 1,748 | 1,200 |
Service charges and fees - other | 527 | 452 | 978 | 828 |
Bank owned life insurance income | 272 | 258 | 538 | 514 |
Gain on loans sold, net | 187 | 284 | ||
Other income | 134 | 36 | 385 | 46 |
Total noninterest income | 1,702 | 1,552 | 3,649 | 2,872 |
Noninterest expense: | ||||
Salaries and employee benefits | 8,109 | 7,322 | 16,653 | 14,511 |
Occupancy expense | 421 | 398 | 842 | 837 |
Equipment expense | 151 | 143 | 295 | 281 |
Deposit insurance | 368 | 154 | 646 | 305 |
Data processing | 374 | 344 | 735 | 679 |
Marketing expense | 161 | 70 | 244 | 197 |
Professional fees | 919 | 709 | 2,322 | 1,437 |
Directors' compensation | 164 | 267 | 364 | 521 |
Software depreciation and implementation | 483 | 327 | 900 | 621 |
Insurance expense | 450 | 448 | 902 | 895 |
Service fees | 281 | 225 | 517 | 433 |
Write down of other assets and receivables | 395 | |||
Other | 870 | 900 | 1,542 | 1,606 |
Total noninterest expense | 12,751 | 11,307 | 25,962 | 22,718 |
Income before income tax expense | 4,920 | 7,809 | 7,693 | 15,560 |
Income tax expense | 1,459 | 2,190 | 2,129 | 4,416 |
Net income | $ 3,461 | $ 5,619 | $ 5,564 | $ 11,144 |
Earnings per share: | ||||
Basic | $ 0.21 | $ 0.34 | $ 0.34 | $ 0.68 |
Diluted | $ 0.21 | $ 0.33 | $ 0.34 | $ 0.66 |
Weighted Average Shares: | ||||
Basic | 16,568,664 | 16,460,248 | 16,549,751 | 16,488,941 |
Diluted | 16,570,017 | 16,882,933 | 16,550,666 | 16,957,186 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 3,461 | $ 5,619 | $ 5,564 | $ 11,144 |
Other comprehensive income: | ||||
Unrealized holding (losses) gains arising during the period on debt securities available-for-sale | (419) | (1,340) | 400 | (3,001) |
Unrealized (loss) gain | (419) | (1,340) | 400 | (3,001) |
Income tax effect | 97 | 309 | (91) | 696 |
Total other comprehensive(loss) income | (322) | (1,031) | 309 | (2,305) |
Comprehensive income | $ 3,139 | $ 4,588 | $ 5,873 | $ 8,839 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned Compensation ESOP [Member] Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Unearned Compensation ESOP [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Total |
Balance at Dec. 31, 2021 | $ 179 | $ 123,498 | $ 118,087 | $ 649 | $ (8,631) | $ 233,782 | ||||||||
Balance (in shares) at Dec. 31, 2021 | 17,854,649 | |||||||||||||
Net income | 11,144 | 11,144 | ||||||||||||
Dividends declared | (1,341) | (1,341) | ||||||||||||
Other comprehensive income (loss) | (2,305) | (2,305) | ||||||||||||
Stock-based compensation expense, net of forfeitures | 913 | 913 | ||||||||||||
Restricted stock award grants, net of forfeitures (in shares) | 29,920 | |||||||||||||
Repurchase of common stock | $ (2) | (2,858) | (2,860) | |||||||||||
Repurchase of common stock (in shares) | (180,434) | |||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards | (40) | (40) | ||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards (in shares) | (2,517) | |||||||||||||
Stock options exercised, net | (116) | (116) | ||||||||||||
Stock options exercised, net (in shares) | 16,904 | |||||||||||||
ESOP shares earned | 373 | 359 | 732 | |||||||||||
Balance at Jun. 30, 2022 | $ 177 | 121,770 | 127,890 | (1,656) | (8,272) | 239,909 | ||||||||
Balance (in shares) at Jun. 30, 2022 | 17,718,522 | |||||||||||||
Balance at Dec. 31, 2021 | $ 179 | 123,498 | 118,087 | 649 | (8,631) | 233,782 | ||||||||
Balance (in shares) at Dec. 31, 2021 | 17,854,649 | |||||||||||||
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 | $ 177 | $ 122,847 | $ 696 | $ 95,326 | $ (2,200) | $ (7,912) | $ 696 | $ 208,238 | ||||||
Balance at Dec. 31, 2022 | $ 177 | 122,847 | 94,630 | (2,200) | (7,912) | 207,542 | ||||||||
Balance (in shares) (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 | 17,669,698 | |||||||||||||
Balance (in shares) at Dec. 31, 2022 | 17,669,698 | |||||||||||||
Balance at Mar. 31, 2022 | $ 178 | 122,504 | 122,939 | (625) | (8,451) | 236,545 | ||||||||
Balance (in shares) at Mar. 31, 2022 | 17,796,542 | |||||||||||||
Net income | 5,619 | 5,619 | ||||||||||||
Dividends declared | (668) | (668) | ||||||||||||
Other comprehensive income (loss) | (1,031) | (1,031) | ||||||||||||
Stock-based compensation expense, net of forfeitures | 468 | 468 | ||||||||||||
Restricted stock award grants, net of forfeitures (in shares) | 9,500 | |||||||||||||
Repurchase of common stock | $ (1) | (1,336) | (1,337) | |||||||||||
Repurchase of common stock (in shares) | (85,205) | |||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards | (36) | (36) | ||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards (in shares) | (2,315) | |||||||||||||
ESOP shares earned | 170 | 179 | 349 | |||||||||||
Balance at Jun. 30, 2022 | $ 177 | 121,770 | 127,890 | (1,656) | (8,272) | 239,909 | ||||||||
Balance (in shares) at Jun. 30, 2022 | 17,718,522 | |||||||||||||
Balance at Dec. 31, 2022 | $ 177 | 122,847 | 94,630 | (2,200) | (7,912) | 207,542 | ||||||||
Balance (in shares) at Dec. 31, 2022 | 17,669,698 | |||||||||||||
Net income | 5,564 | 5,564 | ||||||||||||
Dividends forfeited | 4 | 4 | ||||||||||||
Other comprehensive income (loss) | 309 | 309 | ||||||||||||
Stock-based compensation expense, net of forfeitures | 651 | $ 651 | ||||||||||||
Restricted stock award grants, net of forfeitures (in shares) | 10,421 | |||||||||||||
Repurchase of common stock (in shares) | 0 | |||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards | (23) | $ (23) | ||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards (in shares) | (3,182) | |||||||||||||
Stock options exercised, net | (27) | (27) | ||||||||||||
Stock options exercised, net (in shares) | 7,783 | |||||||||||||
ESOP shares earned | (4) | 360 | 356 | |||||||||||
Balance at Jun. 30, 2023 | $ 177 | 123,444 | 100,894 | (1,891) | (7,552) | 215,072 | ||||||||
Balance (in shares) at Jun. 30, 2023 | 17,684,720 | |||||||||||||
Balance at Mar. 31, 2023 | $ 177 | 123,144 | 97,432 | (1,569) | (7,732) | 211,452 | ||||||||
Balance (in shares) at Mar. 31, 2023 | 17,693,818 | |||||||||||||
Net income | 3,461 | 3,461 | ||||||||||||
Dividends forfeited | 1 | 1 | ||||||||||||
Other comprehensive income (loss) | (322) | (322) | ||||||||||||
Stock-based compensation expense, net of forfeitures | 332 | 332 | ||||||||||||
Restricted stock award grants, net of forfeitures (in shares) | (6,126) | |||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards | (21) | (21) | ||||||||||||
Shares surrendered related to tax withholdings on restricted stock awards (in shares) | (2,972) | |||||||||||||
ESOP shares earned | (11) | 180 | 169 | |||||||||||
Balance at Jun. 30, 2023 | $ 177 | $ 123,444 | $ 100,894 | $ (1,891) | $ (7,552) | $ 215,072 | ||||||||
Balance (in shares) at Jun. 30, 2023 | 17,684,720 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Abstract] | ||
Dividends declared, per share | $ 0.04 | $ 0.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||||
Net income | $ 3,461,000 | $ 5,619,000 | $ 5,564,000 | $ 11,144,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Amortization of securities premiums, net of accretion | 79,000 | 102,000 | |||
ESOP expense | 169,000 | 349,000 | 356,000 | 732,000 | |
Change in deferred loan fees, net | (990,000) | (884,000) | |||
Provision for credit losses | (1,067,000) | 1,041,000 | 712,000 | 1,124,000 | |
Depreciation and amortization | 541,000 | 542,000 | |||
Decrease (increase) in accrued interest receivable | 1,590,000 | (62,000) | |||
Deferred tax expense | 731,000 | 1,247,000 | |||
Share-based compensation expense | 651,000 | 913,000 | |||
Bank-owned life insurance income | (538,000) | (514,000) | |||
Principal repayments of operating lease obligations | (55,000) | (52,000) | |||
Gain on loans sold, net | (284,000) | ||||
Gain on sale of other repossessed assets | (166,000) | 0 | |||
Write down of other repossessed assets | 21,000 | ||||
Net increase in other assets | (796,000) | (2,591,000) | |||
Net decrease in other liabilities | (3,867,000) | (5,345,000) | |||
Net cash provided by operating activities | 3,833,000 | 6,072,000 | |||
Cash flows from investing activities: | |||||
Proceeds from pay downs, maturities and calls of debt securities available-for-sale | 1,265,000 | 2,565,000 | |||
Redemption (purchase) of Federal Home Loan Bank stock | 957,000 | (2,958,000) | |||
Loan principal collections net of originations | 83,866,000 | (75,927,000) | |||
Proceeds from loan sales | 15,851,000 | ||||
Proceeds from other repossessed asset sales | 6,196,000 | ||||
Proceeds from principal repayments on loans held for sale | 2,560,000 | ||||
Additions to premises and equipment | (280,000) | (94,000) | |||
Net cash used in (provided by) investing activities | 92,004,000 | (58,003,000) | |||
Cash flows from financing activities: | |||||
Net (decrease) increase in noninterest-bearing accounts | (116,214,000) | 48,824,000 | |||
Net increase (decrease) in interest-bearing accounts | 284,718,000 | (68,847,000) | |||
Net cash dividends forfeited (paid) on common stock | 4,000 | (1,341,000) | |||
Payments from exercise of stock options, net | (27,000) | (116,000) | |||
Net change in short-term borrowings | (38,500,000) | 78,000,000 | |||
Repayments of Federal Home Loan Bank long-term advances | (8,566,000) | ||||
Shares surrendered related to tax withholdings on restricted stock awards | (23,000) | (40,000) | |||
Repurchase of common stock | (2,860,000) | ||||
Net cash provided by financing activities | 121,392,000 | 53,620,000 | |||
Net increase in cash and cash equivalents | 217,229,000 | 1,689,000 | |||
Cash and cash equivalents at beginning of period | 80,629,000 | 153,115,000 | $ 153,115,000 | ||
Cash and cash equivalents at end of period | $ 297,858,000 | $ 154,804,000 | 297,858,000 | 154,804,000 | $ 80,629,000 |
Supplemental disclosures: | |||||
Interest paid | 11,589,000 | 931,000 | |||
Income taxes paid | $ 136,000 | 3,029,000 | |||
Reclassification of loans held for sale to loans held for investment | $ 9,599,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited financial statements of Provident Bancorp, Inc., (the “Company”) were prepared in accordance with the instructions for Form 10-Q and with Regulation S-X and do not include information or footnotes necessary for a complete presentation of the financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, in the opinion of management, all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three- and six-month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. Certain amounts in 2022 have been reclassified to be consistent with the 2023 consolidated financial statement presentation, which had no effect on the net income reported in the consolidated statements of income. These financial statements should be read in conjunction with the annual financial statements and notes thereto included in the annual report on Form 10-K the Company filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2023. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary BankProv (the “Bank”), and the Bank’s wholly owned subsidiaries, Provident Security Corporation, 5 Market Street Security Corporation, and Prov 1, LLC. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. Prov 1, LLC was established to engage in any lawful act or activity for which limited liability companies may be organized. All significant inter-company balances and transactions have been eliminated in consolidation. |
Corporate Structure
Corporate Structure | 6 Months Ended |
Jun. 30, 2023 | |
Corporate Structure [Abstract] | |
Corporate Structure | (2) Corporate Structure The Company is a Maryland corporation whose primary purpose is to act as the holding company for the Bank. The Bank, headquartered in Amesbury, Massachusetts, operates its business from seven banking offices located in Amesbury and Newburyport, Massachusetts and Portsmouth, Exeter, Bedford, and Seabrook, New Hampshire. The Bank also has loan production offices in Boston, Massachusetts and Ponte Vedra, Florida. The Bank’s primary deposit products are checking, savings, and term certificate accounts and its primary lending products are commercial real estate, commercial, and mortgage warehouse loans. BankProv is also a commercial bank for corporate clients, specializing in offering adaptive and technology-first banking solutions to niche markets. |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | (3) Risks and Uncertainties Digital Asset Lending The Company’s digital asset loan segment includes loans to digital asset customers, which can be secured by a security interest in the digital assets, cash, a security in the purchased mining equipment or a combination of these. As of June 30, 2023, we had a total of $ 16.8 million in outstanding loans, all to one digital asset customer, and all of which was on non-accrual and was individually analyzed for reserves, which totaled $ 7.2 million. The $ 16.8 million loan relationship was modified to provide a term extension during the quarter ended June 30, 2023, and is currently performing in accordance with the modified terms. The estimates and assumptions that went into the valuation of the collateral on individually analyzed loans secured by cryptocurrency mining rigs were based on market data as of June 30, 2023. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The Bitcoin markets as well as the markets for cryptocurrency mining rigs are highly volatile and speculative and subject to a variety of risks, including market and liquidity risks. Changes in market driven factors, among others, could have a material impact on the values reported at June 30, 2023. In the event of further deterioration in the value of the collateral of individually analyzed loans to digital asset customers the Company could recognize additional increases in credit loss expense and the allowance for credit losses. In addition, the Company may also see increases in loan workout expenses related to the portfolio of loans to digital asset customers . Current Banking Environment Industry events have led to a greater focus by institutions, investors and regulators on liquidity positions of and funding sources for financial institutions, the composition of their deposits, including the amount of uninsured deposits, the amount of accumulated other comprehensive loss, capital levels and interest rate risk management. The Company believes it is well insulated from the fallout resulting from the market turmoil due to the following considerations: The Bank’s deposit and loan portfolios were and continue to be well-diversified; As of June 30, 2023, the Federal Deposit Insurance Fund (“FDIC”) insured 52.6 % of our customers’ deposits and the remaining 47.4 % were insured through the Depositors Insurance Fund (“DIF”); We have access to multiple funding sources and sufficient capacity to borrow, if needed, as of June 30, 2023 between the Federal Home Loan Bank of Boston and the Federal Reserve Bank of Boston’s borrower-in-custody program, we had the ability to borrow an additional $ 239.2 million; Our securities portfolio represented only 1.6 % of total assets, as of June 30, 2023 and the accumulated other comprehensive loss on the portfolio was $ 1.9 million, or 0.9 % of shareholders’ equity as of that date. Management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Based on our ability to borrow, cash position and low deposit outflows there is no expected reliance on security sales to meet operational needs. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (4) Recent Accounting Pronouncements On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit lost (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance-sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company reported a net increase to retained earnings of $ 696,000 as of January 1, 2023 for the cumulative effect of adopting ASC 326. The transition adjustment included a $ 2.6 million increase to retained earnings to adjust the allowance for credit losses on loans based on the new methodology offset by a decrease to retained earnings of $ 1.6 million to adjust the allowance for credit losses on OBS credit exposures based on the new methodology and a $ 249,000 decrease to retained earnings to account for the net tax impact of these adjustments. The following table illustrates the impact of ASC 326 . January 1, 2023 As Reported Impact of Under Pre-ASC 326 ASC 326 (In thousands) ASC 326 Adoption Adoption Assets: Loans Commercial real estate $ 4,317 $ 5,062 $ ( 745 ) Commercial 2,871 3,582 ( 711 ) Enterprise value 7,442 7,712 ( 270 ) Digital asset 10,336 10,493 ( 157 ) Residential real estate 61 43 18 Construction and land development 396 909 ( 513 ) Consumer 4 55 ( 51 ) Mortgage warehouse 54 213 ( 159 ) Allowance for credit loss on loans 25,481 28,069 ( 2,588 ) Liabilities: Allowance for credit losses on off balance sheet credit exposures 1,864 221 1,643 Also on January 1, 2023, the Company adopted ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) , which eliminates the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-40 and amends guidance on “vintage disclosures” to required disclosures of current-period gross write-offs by year of origination. The ASC also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrower experiencing financial difficulty. The Company adopted ASU 2022-02, using the modified retrospective approach, with no material impact to the financial statements. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2022-02 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , to ease the potential burden in accounting for recognizing the effects of reference rate reform on financial reporting. Such challenges include the accounting and operational implications for contract modifications and hedge accounting. The provisions in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to loan and lease agreements, contracts, hedging relationships, and other transactions affected by reference rate reform. These provisions apply to contract modifications that reference LIBOR or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification would be considered "minor" so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company selected the Secured Overnight Financing Rate (“SOFR”) as its primary alternative to LIBOR and used alternative reference rates, based on the individual needs of its customers and the type of credit being extended, when necessary. Legacy LIBOR-based loans transitioned to an alternative reference rate on or before June 30, 2023. The adoption of ASU 2020-04 did not result in a material impact the Company’s Consolidated Financial Statements. |
Debt Securities
Debt Securities | 6 Months Ended |
Jun. 30, 2023 | |
Debt Securities [Abstract] | |
Debt Securities | (5) Debt Securities Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are valued at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. The following table summarizes the amortized cost, allowance for credit losses, and fair value of debt securities available-for-sale at June 30, 2023 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Amortized Gross Gross Allowance Cost Unrealized Unrealized for Credit Fair (In thousands) Basis Gains Losses Losses Value June 30, 2023 State and municipal securities $ 11,840 $ 2 $ 646 $ — $ 11,196 Asset-backed securities 6,945 — 825 — 6,120 Government mortgage-backed securities 11,328 — 988 — 10,340 Total debt securities available-for-sale $ 30,113 $ 2 $ 2,459 $ — $ 27,656 The following table summarizes the amortized cost and fair value of securities available-for-sale at December 31, 2022 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value December 31, 2022 State and municipal securities $ 11,894 $ 2 $ 825 $ 11,071 Asset-backed securities 7,197 — 923 6,274 Government mortgage-backed securities 12,366 — 1,111 11,255 Total debt securities available-for-sale $ 31,457 $ 2 $ 2,859 $ 28,600 Interest income includes amortization of purchase premium or discount . Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable debt securities are amortized to their earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. There were no realized gains or losses on sales and calls of securities during the six months ended June 30, 2023 or June 30, 2022. Securities with carrying amounts of $ 8.9 million and $ 9.8 million were pledged to secure available borrowings with the Federal Home Loan Bank at June 30, 2023 and December 31, 2022, respectively. The scheduled maturities of debt securities at June 30, 2023 are summarized in the table below. Actual maturities of asset and mortgage-backed securities may differ from contractual maturities because the assets and mortgages underlying the securities may be repaid without any penalties. Because asset- and mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary. Available-for-Sale Amortized Fair (In thousands) Cost Value Due after one year through five years $ 863 $ 844 Due after five years through ten years 1,468 1,464 Due after ten years 9,509 8,888 Government mortgage-backed securities 11,328 10,340 Asset-backed securities 6,945 6,120 $ 30,113 $ 27,656 A debt security is placed on non-accrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Interest accrued but not received for a security placed on non-accrual is reversed against interest income. There were no debt securities on non-accrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the six months ended June 30, 2023 or June 30, 2022. The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or longer are as follows at June 30, 2023 and December 31, 2022: Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses June 30, 2023 Temporarily impaired securities: State and municipal securities $ 1,978 $ 14 $ 7,785 $ 632 $ 9,763 $ 646 Asset-backed securities — — 6,120 825 6,120 825 Government mortgage-backed securities — — 10,340 988 10,340 988 Total temporarily impaired debt securities $ 1,978 $ 14 $ 24,245 $ 2,445 $ 26,223 $ 2,459 December 31, 2022 Temporarily impaired securities: State and municipal $ 8,174 $ 183 $ 2,297 $ 642 $ 10,471 $ 825 Asset-backed securities 2,322 182 3,951 741 6,273 923 Government mortgage-backed securities 7,428 474 3,827 637 11,255 1,111 Total temporarily impaired debt securities $ 17,924 $ 839 $ 10,075 $ 2,020 $ 27,999 $ 2,859 The Company expects to recover its amortized cost basis on all debt securities. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell these securities in an unrealized loss position as of June 30, 2023, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position were not other-than-temporarily impaired at June 30, 2023: State and municipal securities: At June 30, 2023, 15 of the 19 securities in the Company’s portfolio of state and municipal securities were in unrealized loss positions. Aggregate unrealized losses represented 5.5 % of the amortized cost of state and municipal securities. The Company continually monitors the state and municipal securities sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the securities in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying downgrades during the quarter. All securities are performing. Asset-backed securities: At June 30, 2023, all four of the securities in the Company’s portfolio of asset-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 11.9 % of the amortized cost of asset-backed securities. The U.S. Small Business Administration (“SBA”) guarantees the contractual cash flows of all of the Company’s asset-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. Government mortgage-backed securities: At June 30, 2023, all 33 of the securities in the Company’s portfolio of government mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 8.7 % of the amortized cost of government mortgage-backed securities. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. Allowance for Credit Losses – Available-For-Sale Securities: For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through a provision for credit losses charged to earnings. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities totaled $ 176,000 at June 30, 2023 and is excluded from the estimate of credit losses. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses for Loans | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Allowance for Credit Losses for Loans [Abstract] | |
Loans | (6) Loans and Allowance for Credit Losses for Loans Loans: A summary of loans is as follows: At At June 30, December 31, 2023 2022 (In thousands) Amount Amount Commercial real estate $ 438,029 $ 453,592 Commercial 187,965 216,931 Enterprise value 436,574 438,745 Digital asset (1) 16,768 40,781 Residential real estate 7,490 8,165 Construction and land development 96,757 72,267 Consumer 207 391 Mortgage warehouse 173,755 213,244 1,357,545 1,444,116 Allowance for credit losses - loans ( 23,981 ) ( 28,069 ) Net loans $ 1,333,564 $ 1,416,047 (1) Includes $ 16.8 million and $ 26.5 million in loans secured by cryptocurrency mining rigs at June 30, 2023 and December 31, 2022, respectively. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses for loans. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred loan fees and costs. Accrued interest receivable totaled $ 4.8 million and $ 6.4 million at June 30, 2023 and December 31, 2022, respectively, and was reported as accrued interest receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. Interest income is accrued on unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using either the level-yield or straight-line method without anticipating prepayments. All interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses for Loans: The allowance for credit losses for loans (“ACLL”) is a valuation account that is deducted from the amortized cost basis of the loans to present the net amount expected to be collected. Loans are charged off against the allowance when management believes the un-collectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance and do not exceed the aggregate of amounts previously charged-off. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments: Commercial real estate : Loans in this segment are primarily income-producing properties throughout Massachusetts and New Hampshire. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, can have an effect on the credit quality in this segment. Management periodically obtains rent rolls and continually monitors the cash flows of these loans. Commercial : Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, can have an effect on the credit quality in this segment. Enterprise value : Loans in this segment are made to small- and medium-size businesses in a senior secure position and are generally secured by the enterprise value of the business. The enterprise value consists of the going concern value of the business and takes into account the value of business assets (both tangible and intangible). Repayment is expected from the cash flows of the business. Economic and industry specific conditions can affect on the credit quality of this segment. Digital asset : Loans in this segment are made to businesses in the digital asset space and are generally secured by digital asset mining equipment or by the United States dollar (“USD”) value of digital currency assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, resultant decreased consumer spending as well as decreases in the value of digital currency can have an effect on the credit quality in this segment. Construction and land development : Loans in this segment primarily include speculative and pre-sold real estate development loans for which payment is derived from sale of the property and a conversion of the construction loans to permanent loans for which payment is then derived from cash flows of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Mortgage warehouse: Loans in this segment are primarily facility lines to non-bank mortgage origination companies. The underlying collateral of these loans are residential real estate loans. Loans are originated by the mortgage companies for sale into secondary markets, which is typically within 15 days of the loan closure. The primary source of repayment is the cash flow upon the sale of the loans. The credit risk associated with this type of lending is the risk that the mortgage companies are unable to sell the loans. Consumer : Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Residential real estate : All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. We no longer originate residential real estate loans, and previously we did not typically originate loans with a loan-to-value ratio greater than 80% or grant subprime loans. Loans with loan to value ratios greater than 80% require the purchase of private mortgage insurance. Management estimates the ACLL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, gross domestic product or other relevant factors. Incorporated in the estimate for the ACLL is consideration of qualitative factors, which include the following for all loan pools: Changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices. Changes in the experience, depth, and ability of lending management. Changes in the quality of the organization's loan review system. The existence and effect of any concentrations of credit and changes in the levels of such concentrations. The effect of other external factors (i.e. legal and regulatory requirements) on the level of estimated credit losses. In addition to the above, the mortgage warehouse pool includes a qualitative factor for changes in international, national, regional, and local conditions as the ACLL model for this loan pool does not apply an economic regression model in the calculation of the historical loss rate. The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). The Company measures the ACLL using the following methods: Portfolio Segment Measurement Method Loss Driver Commercial real estate Discounted cash flow National unemployment rate, national GDP Commercial Discounted cash flow National unemployment rate, national GDP Enterprise value Discounted cash flow National unemployment rate, national GDP Digital asset Discounted cash flow National unemployment rate, national GDP Residential real estate Discounted cash flow National unemployment rate, national HPI Construction and land development Discounted cash flow National unemployment rate, national GDP Consumer Discounted cash flow National unemployment rate, national GDP Mortgage warehouse Remaining life method Not applicable When the discounted cash flow method is used to determine the allowance for credit losses, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. When the remaining life method is used to determine the allowance for credit losses, a calculated loss rate is applied to the pool of loans based on the remaining life expectation of the pool. The remaining life expectation is based on management’s reasonable expectation at the reporting date. Loans that do not share risk characteristics, whether or not they are performing in accordance with their loan terms, are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. The Company will individually evaluate a loan when, based on current information and events, it is probable that it will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in making this determination include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Insignificant payment delays and payment shortfalls generally are not considered reason enough to individually analyze a loan. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. When management determines that a loan should be individually analyzed, expected credit losses are based on either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral at the reporting date, adjusted for selling costs, as appropriate. The following table presents the activity in the allowance for credit losses for loans by portfolio segment for the three and six months ended June 30, 2023 and 2022: For the three months ended June 30, (In thousands) Commercial Real Estate Commercial Enterprise value Digital asset Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total Balance at March 31, 2023 $ 4,249 $ 2,615 $ 10,161 $ 7,219 $ 57 $ 470 $ 3 $ 38 $ 24,812 Charge-offs — ( 126 ) — — — — ( 13 ) — ( 139 ) Recoveries — — 45 — — — 3 — 48 Provision (credit) ( 180 ) ( 112 ) ( 512 ) — ( 2 ) 51 9 6 ( 740 ) Balance at June 30, 2023 $ 4,069 $ 2,377 $ 9,694 $ 7,219 $ 55 $ 521 $ 2 $ 44 $ 23,981 Balance at March 31, 2022 $ 4,935 $ 5,380 $ 6,076 $ 1,868 $ 14 $ 565 $ 123 $ 335 $ 19,296 Charge-offs — ( 1,338 ) — — — — ( 7 ) — ( 1,345 ) Recoveries — 5 — — — — 11 — 16 Provision (credit) ( 133 ) 189 407 502 — 173 ( 38 ) ( 95 ) 1,005 Balance at June 30, 2022 $ 4,802 $ 4,236 $ 6,483 $ 2,370 $ 14 $ 738 $ 89 $ 240 $ 18,972 For the six months ended June 30, (In thousands) Commercial Real Estate Commercial Enterprise value Digital asset Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total Balance at December 31, 2022 $ 5,062 $ 3,582 $ 7,712 $ 10,493 $ 43 $ 909 $ 55 $ 213 $ 28,069 Impact of adopting ASC 326 ( 745 ) ( 711 ) ( 270 ) ( 157 ) 18 ( 513 ) ( 51 ) ( 159 ) ( 2,588 ) Charge-offs — ( 167 ) ( 3,560 ) — — — ( 29 ) — ( 3,756 ) Recoveries — 10 45 — — — 6 — 61 Provision (credit) ( 248 ) ( 337 ) 5,767 ( 3,117 ) ( 6 ) 125 21 ( 10 ) 2,195 Balance at June 30, 2023 $ 4,069 $ 2,377 $ 9,694 $ 7,219 $ 55 $ 521 $ 2 $ 44 $ 23,981 Balance at December 31, 2021 $ 4,889 $ 5,371 $ 6,158 $ 2,012 $ 38 $ 479 $ 168 $ 381 $ 19,496 Charge-offs — ( 1,338 ) ( 351 ) — — — ( 35 ) — ( 1,724 ) Recoveries — 6 87 — — — 19 — 112 Provision (credit) ( 87 ) 197 589 358 ( 24 ) 259 ( 63 ) ( 141 ) 1,088 Balance at June 30, 2022 $ 4,802 $ 4,236 $ 6,483 $ 2,370 $ 14 $ 738 $ 89 $ 240 $ 18,972 The following table presents loan delinquencies by portfolio segment at June 30, 2023 and December 31, 2022: 90 Days Total 30 - 59 60 - 89 or More Past Total Total (In thousands) Days Days Past Due Due Current Loans June 30, 2023 Commercial real estate $ — $ — $ 1 $ 1 $ 438,028 $ 438,029 Commercial — — 32 32 187,933 187,965 Enterprise value — — 92 92 436,482 436,574 Digital asset — — — — 16,768 16,768 Residential real estate 117 2 213 332 7,158 7,490 Construction and land development — — — — 96,757 96,757 Consumer — 1 — 1 206 207 Mortgage warehouse — — — — 173,755 173,755 Total $ 117 $ 3 $ 338 $ 458 $ 1,357,087 $ 1,357,545 December 31, 2022 Commercial real estate $ 240 $ — $ 1 $ 241 $ 453,351 $ 453,592 Commercial — — 41 41 216,890 216,931 Enterprise value — — 92 92 438,653 438,745 Digital asset — — — — 40,781 40,781 Residential real estate — — 73 73 8,092 8,165 Construction and land development — — — — 72,267 72,267 Consumer — 9 — 9 382 391 Mortgage warehouse — — — — 213,244 213,244 Total $ 240 $ 9 $ 207 $ 456 $ 1,443,660 $ 1,444,116 The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days but still accruing as of June 30, 2023 and December 31, 2022: Non-accrual 90 Days With No or More Allowance Non-accrual Past Due (In thousands) for Credit Loss Loans and Accruing June 30, 2023 Commercial real estate $ 160 $ 160 $ — Commercial 70 70 — Enterprise value 92 4,310 — Digital asset — 16,768 — Residential real estate — 361 — Construction and land development — — — Consumer — — — Mortgage warehouse — — — Total $ 322 $ 21,669 $ — December 31, 2022 Commercial real estate $ 56 $ 56 $ — Commercial 101 101 — Enterprise value 92 92 — Digital asset — 26,488 — Residential real estate ( 70 ) 227 — Construction and land development — — — Consumer — — — Mortgage warehouse — — — Total $ 179 $ 26,964 $ — The Company did not recognize interest income on non-accrual loans during the six months ended June 30, 2023. The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023: Commercial Cryptocurrency Real Business Mining Rigs (In thousands) Estate Assets and Other (1) Cash Commercial real estate $ 19,849 $ — $ — $ — Commercial 37 1 — — Enterprise value — 4,218 — 92 Digital asset — — 16,768 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Mortgage warehouse — — — — $ 19,886 $ 4,219 $ 16,768 $ 92 (1) Other collateral includes the USD value of Bitcoin held in control accounts as well as cash accounts held at the Bank. Occasionally, the Company modifies loans to borrowers experiencing financial difficulty by providing the following modifications: principal forgiveness, other-than-insignificant payment delays, term extensions, interest rate reductions, or a combination of modifications. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses on loans. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. The following table presents the amortized cost basis of loans at June 30, 2023 that were both experiencing financial difficulty and modified during the six months ended June 30, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below. (Dollars in thousands) Principal Forgiveness Other-Than-Insignificant Payment Delay Term Extension Interest Rate Reduction Term Extension and Interest Rate Reduction Total Class of Financing Receivable $ Total Class of Financing Receivable % June 30, 2023 Commercial $ — $ — $ — $ — $ 21 $ 21 0.01 % Enterprise value — 21,023 — — — 21,023 4.82 Digital asset — — 16,580 — — 16,580 98.88 Total $ — $ 21,023 $ 16,580 $ — $ 21 $ 37,624 2.77 % The Company has committed to lend an additional $ 50,000 based on fund availability through an existing line of credit to a borrower experiencing financial difficulty whose loans had been modified during the six months ended June 30, 2023. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2023: Weighted-Average Payment Delay Weighted-Average Term Extension Weighted-Average Term Extension and Interest Rate Reduction Months Months Months Percentage June 30, 2023 Commercial — — 4 3.25 % Enterprise value 5 — — — % Digital asset — 3 — — % The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. As of June 30, 2023, there were no past due balances or subsequent defaults related to loans modified during the six months ended June 30, 2023. Prior to the Company’s adoption of ASU 2022-02 on January 1, 2023 (see Note 4 for additional information), loans were considered TDRs when the Company granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions could include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt could be bifurcated with separate terms for each tranche of the restructured debt. Restructuring of a loan in lieu of aggressively enforcing the collection of the loan could benefit the Company by increasing the ultimate probability of collection. There were no new TDRs entered into during the six months ended June 30, 2022. The total recorded investment in TDRs was $ 20.6 million at June 30, 2022 and as of that date there were no material commitments to lend additional funds to borrowers whose loans had been restructured. Credit Quality Information The Company utilizes a seven grade internal loan risk rating system for commercial real estate, construction and land development, and commercial loans as follows: Loans rated 1-3 : Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 4 : 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 5 : 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 Company will sustain some loss if the weakness is not corrected. Loans rated 6 : 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 7 : Loans in this category are considered uncollectible “loss” and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and land development, and commercial loans. On an annual basis, or more often if needed, the Company completes a credit recertification on all mortgage warehouse originators. For residential real estate loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and rates such loans as pass. Ongoing monitoring is based upon the borrower’s payment activity. Consumer loans are not formally rated. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Term Loans at Amortized Cost by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Commercial Real Estate Pass $ 18,014 $ 54,463 $ 73,090 $ 31,353 $ 62,710 $ 138,942 $ 19,420 $ — $ 397,992 Special mention — — — — 3,133 9,764 — — 12,897 Substandard — — — 1,048 4,518 21,573 — — 27,139 Doubtful — — — — — — — — — Loss — — 1 — — — — — 1 Total commercial real estate 18,014 54,463 73,091 32,401 70,361 170,279 19,420 — 438,029 Commercial real estate Current period gross write offs — — — — — — — — — Commercial Pass 3,173 12,389 54,060 15,151 17,563 29,048 42,689 — 174,073 Special mention — — — — 11 9,955 1,295 — 11,261 Substandard — — 205 — 1,959 239 225 — 2,628 Doubtful — — — — 1 — — — 1 Loss — — — — — 2 — — 2 Total commercial 3,173 12,389 54,265 15,151 19,534 39,244 44,209 — 187,965 Commercial Current period gross write offs — — — — 101 66 — — 167 Enterprise Value Pass 35,659 118,822 132,858 54,563 29,175 7,716 15,886 — 394,679 Special mention — 12,658 6,473 4,827 2,763 1,662 9,201 — 37,584 Substandard — — — — — 3,438 780 — 4,218 Doubtful — — — — — 92 — — 92 Loss — — — 2 1 ( 2 ) — — 1 Total enterprise value 35,659 131,480 139,331 59,392 31,939 12,906 25,867 — 436,574 Enterprise value Current period gross write offs — 3,560 — — — — — — 3,560 Digital Asset Pass — — — — — — — — — Special mention — — — — — — — — — Substandard — 16,580 188 — — — — — 16,768 Doubtful — — — — — — — — — Loss — — — — — — — — — Total digital asset — 16,580 188 — — — — — 16,768 Digital asset Current period gross write offs — — — — — — — — — Residential Real Estate Pass — — — — 193 3,868 2,716 347 7,124 Substandard — — — 5 — 291 70 — 366 Total residential real estate — — — 5 193 4,159 2,786 347 7,490 Residential real estate Current period gross write offs — — — — — — — — — Construction and Land Development Pass 12 44,761 49,394 — — 1,539 1,051 — 96,757 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 12 44,761 49,394 — — 1,539 1,051 — 96,757 Construction and land development Current period gross write offs — — — — — — — — — Consumer Not formally rated — — — — 119 — 88 — 207 Total consumer — — — — 119 — 88 — 207 Consumer Current period gross write offs — — — — 12 17 — — 29 Mortgage Warehouse Pass — — — — — — 173,755 — 173,755 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total mortgage warehouse — — — — — — 173,755 — 173,755 Mortgage warehouse Current period gross write offs — — — — — — — — — The following table presents the Company’s loans by risk rating and portfolio segment at December 31, 2022: (In thousands) Commercial Real Estate Commercial Enterprise Value Digital Asset Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total December 31, 2022 Grade: Pass $ 399,455 $ 202,895 $ 408,616 $ 4,724 $ 7,938 $ 72,267 $ — $ 213,244 $ 1,309,139 Special mention 26,995 11,015 20,091 9,569 — — — — 67,670 Substandard 27,141 2,854 9,946 26,488 227 — — — 66,656 Doubtful — 165 92 — — — — — 257 Loss 1 2 — — — — — — 3 Not formally rated — — — — — — 391 — 391 Total $ 453,592 $ 216,931 $ 438,745 $ 40,781 $ 8,165 $ 72,267 $ 391 $ 213,244 $ 1,444,116 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Deposits | (7) Deposits A summary of deposit balances, by type is as follows: At At June 30, December 31, (In thousands) 2023 2022 Noninterest-bearing: Demand (1) $ 404,012 $ 520,226 Interest-bearing: NOW 111,701 145,533 Regular savings 159,940 141,802 Money market deposits 530,964 318,417 Certificates of deposit: Certificate accounts of $250,000 or more 20,869 11,449 Certificate accounts less than $250,000 220,600 142,155 Total interest-bearing (2) 1,044,074 759,356 Total deposits (3) $ 1,448,086 $ 1,279,582 (1) Noninterest-bearing deposits included $ 37.8 million and $ 20.8 million in Banking as a Service (“BaaS”) and digital assets deposits, respectively, as of June 30, 2023. Noninterest-bearing deposits included $ 25.3 million and $ 55.2 million in BaaS and digital assets deposits, respectively, as of December 31, 2022. (2) Interest-bearing deposits included $ 197.9 million and $ 4.4 million in BaaS and digital assets deposits, respectively, as of June 30, 2023. As of December 31, 2022, there were no interest-bearing BaaS deposits, and $ 22.2 million interest-bearing digital assets deposits. (3) Of total deposits as of June 30, 2023 and December 31, 2022, the Federal Deposit Insurance Corporation (“FDIC”) insured approximately 53 % and 55 %, respectively, and the remaining 47 % and 45 %, respectively, were insured through the Depositors Insurance Fund (“DIF”). The DIF is a private, industry-sponsored insurance fund that insures all deposits above FDIC limits at member banks. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Borrowings [Abstract] | |
Borrowings | (8) Borrowings Advances consist of funds borrowed from the Federal Home Loan Bank (the “FHLB”). Maturities of advances from the FHLB as of June 30, 2023 are summarized as follows: (In thousands) Fiscal Year-End 2023 $ 70,066 2024 134 2025 5,136 2026 138 2027 139 Thereafter 4,150 Total $ 79,763 Borrowings from the FHLB are secured by qualified collateral, consisting primarily of certain commercial real estate loans, qualified mortgage-backed government securities and certain loans with mortgages secured by one- to four-family properties. At June 30, 2023, borrowings from the FHLB consisted of short-term borrowings, with original maturities of less than one year, totaling $ 70.0 million and long-term borrowings, with original maturities more than one year, totaling $ 9.8 million. The interest rate on FHLB short-term borrowings was 5.27 % at June 30, 2023. The interest rates on FHLB long-term advances ranged from 1.21 % to 1.32 %, with a weighted average interest rate of 1.28 % at June 30, 2023. |
Other Repossessed Assets
Other Repossessed Assets | 6 Months Ended |
Jun. 30, 2023 | |
Other Repossessed Assets [Abstract] | |
Other Repossessed Assets | (9) Other Repossessed Assets During 2022, the Company repossessed cryptocurrency mining rigs in exchange for the forgiveness of a loan relationship. The repossessed cryptocurrency mining rigs were reported as other repossessed assets at their fair value less costs to sell. These other repossessed assets were subsequently accounted for at lower of cost or fair value less estimated costs to sell. The estimates and assumptions that went into the valuation of the repossessed cryptocurrency mining rigs held as repossessed assets, were based on market data and sales reported by the company. Activity related to other repossessed assets, which consists of cryptocurrency mining rigs, was as follows: (In thousands) Amount Net balance of other repossessed assets at December 31, 2022 $ 6,051 Direct write-downs ( 21 ) Sales of other repossessed assets ( 6,030 ) Net balance of other repossessed assets at June 30, 2023 $ — Activity in the valuation allowance was as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Beginning balance $ — $ — $ 597 $ — Reductions from sales of other repossessed assets — — ( 597 ) — Ending balance $ — $ — $ — $ — There were no other repossessed assets outstanding for the three months ended June 30, 2023 and June 30, 2022, and therefore there were no related gains or expenses recognized during those periods. For the six months ended June 30, 2023 the Company recognized $ 166,000 in net gain on sales of other repossessed assets and $ 115,000 in operating expenses. There were no other repossessed assets outstanding during the six months ended June 30, 2022 and therefore there were no related gains or expenses recognized during that period. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (10) Fair Value Measurements The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Basis of Fair Value Measurements Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). An asset’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Values of Assets Measured on a Recurring Basis The Company’s investments in state and municipal, asset-backed and government mortgage-backed debt securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these investments, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include 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. The following summarizes financial instruments measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022: Fair Value Measurements at Reporting Date Using Significant Significant Other Observable Unobservable Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2023 State and municipal securities $ 11,196 $ — $ 11,196 $ — Asset-backed securities 6,120 — 6,120 — Government mortgage-backed securities 10,340 — 10,340 — Totals $ 27,656 $ — $ 27,656 $ — December 31, 2022 State and municipal securities $ 11,071 $ — $ 11,071 $ — Asset-backed securities 6,274 — 6,274 — Government mortgage-backed securities 11,255 — 11,255 — Totals $ 28,600 $ — $ 28,600 $ — Fair Values of Assets Measured on a Non-Recurring Basis The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of lower-of-cost-or market accounting or write-downs of individual assets. Certain loans were adjusted to fair value, less cost to sell, of the underlying collateral securing these loans resulting in losses. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for loan losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. Other repossessed assets, which consists of repossessed cryptocurrency mining rigs, were accounted for at fair value. Future adjustments, if any, will be recorded directly as an adjustment to current earnings. Fair value was measured using the appraised values of the cryptocurrency mining rigs and adjusted as necessary by management based on unobservable inputs. The following summarizes assets measured at fair value on a nonrecurring basis at June 30, 2023 and December 31, 2022: Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2023 Loans Enterprise value $ 1,835 $ — $ — $ 1,835 Digital asset 9,549 — — 9,549 Totals $ 11,384 $ — $ — $ 11,384 December 31, 2022 Loans Commercial $ 16,817 $ — $ — $ 16,817 Other repossessed assets 6,051 — — 6,051 Totals $ 22,868 $ — $ — $ 22,868 The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at June 30, 2023 and December 31, 2022: (In thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2023 Loans Enterprise value $ 1,835 Business or collateral valuation Comparable company or collateral evaluations 0 % - 7 % Digital asset 9,549 Asset valuation Comparable asset evaluations 0 % - 1 % December 31, 2022 Loans Commercial $ 16,817 Business or collateral valuation Comparable company or collateral evaluations 0 % - 10 % Other repossessed assets 6,051 Asset valuation Comparable asset evaluations 0 % - 3 % At June 30, 2023, the contractual balance of loans measured at fair value on a nonrecurring basis was $ 6.2 million, net of reserves of $ 2.5 million and charge-offs of $ 1.7 million for the enterprise value segment, and $ 18.1 million, net of reserves of $ 7.2 million and interest paid to principal of $ 1.3 million for the digital asset segment. At December 31, 2022, the contractual balance of commercial loans measured at fair value on a nonrecurring basis was $ 28.7 million, net of reserves of $ 10.1 million and charge-offs of $ 1.8 million. During 2022, the Company repossessed cryptocurrency mining rigs in exchange for the forgiveness of a loan relationship. The repossessed cryptocurrency mining rigs were reported as other repossessed assets and are accounted for at the lower of cost or fair value less estimated costs to sell. At December 31, 2022, other repossessed assets were $ 6.1 million. Fair Values of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Certain financial instruments and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows at June 30, 2023 and December 31, 2022: Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total June 30, 2023 Financial assets: Cash and cash equivalents $ 297,858 $ 297,858 $ — $ — $ 297,858 Available-for-sale debt securities 27,656 — 27,656 — 27,656 Federal Home Loan Bank of Boston stock 3,309 N/A N/A N/A N/A Loans, net 1,333,564 — — 1,232,255 1,232,255 Accrued interest receivable 5,007 — 5,007 — 5,007 Financial liabilities: Deposits 1,448,086 — 1,448,873 — 1,448,873 Borrowings 79,763 — 79,513 — 79,513 December 31, 2022 Financial assets: Cash and cash equivalents $ 80,629 $ 80,629 $ — $ — $ 80,629 Available-for-sale debt securities 28,600 — 28,600 — 28,600 Federal Home Loan Bank of Boston stock 4,266 N/A N/A N/A N/A Loans, net 1,416,047 — — 1,341,633 1,341,633 Accrued interest receivable 6,597 — 6,597 — 6,597 Other repossessed assets 6,051 — — 6,051 6,051 Financial liabilities: Deposits 1,279,582 — 1,279,665 — 1,279,665 Borrowings 126,829 — 124,590 — 124,590 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | (11) Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Bank is subject to capital regulations that require a Common Equity Tier 1 (“CET1”) capital ratio of 4.5 %, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0 %, a minimum total capital to risk-weighted assets ratio of 8.0 % and a minimum Tier 1 leverage ratio of 4.0 %. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. In order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5 % and a Tier 1 ratio of 8.0 %, a total risk-based capital ratio of 10 % and a Tier 1 leverage ratio of 5.0 %. As of June 30, 2023 and December 31, 2022, the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. Applicable regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5 % of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements. At June 30, 2023, the Bank exceeded the regulatory requirement for the capital conservation buffer. Federal banking agencies regulations establish a community bank leverage ratio (“CBLR”) framework for community banking organizations having total consolidated assets of less than $ 10 billion, having a leverage ratio of greater than 9 %, and satisfying other criteria, such as limitations on the amount of off-balance sheet exposures and on trading assets and liabilities. A community banking organization that qualifies for and elects to use the CBLR framework and that maintains a leverage ratio of greater than 9 % will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the banking agencies’ generally applicable capital rules and, if applicable, will be considered to have met the well-capitalized ratio requirements for federal law. As of June 30, 2023, the Bank has not opted into the CBLR framework. The Bank’s actual capital amounts and ratios are presented in the following table. To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2023 Total Capital (to Risk Weighted Assets) $ 207,287 13.32 % $ 124,452 > 8.0 % $ 155,565 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 187,781 12.07 93,339 > 6.0 124,452 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 187,781 12.07 70,004 > 4.5 101,117 > 6.5 Tier 1 Capital (to Average Assets) 187,781 10.95 68,622 > 4.0 85,777 > 5.0 December 31, 2022 Total Capital (to Risk Weighted Assets) $ 204,354 12.62 % $ 129,492 > 8.0 % $ 161,865 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 97,119 > 6.0 129,492 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 72,839 > 4.5 105,212 > 6.5 Tier 1 Capital (to Average Assets) 184,025 11.17 65,916 > 4.0 82,395 > 5.0 Liquidation Accounts Upon the completion of the Company’s initial stock offering in 2015 and the second step offering in 2019, liquidation accounts were established for the benefit of certain depositors of the Bank in amounts equal to: 1. The product of (i) the percentage of the stock issued in the initial stock offering in 2015 to persons other than Provident Bancorp, the top tier mutual holding company (“MHC”) of the Company and (ii) the net worth of the mid-tier holding company as of the date of the latest balance sheet contained in the prospectus utilized in connection with the offering; and 2. The MHC’s ownership interest in the retained earnings of the Company as of the date of the latest balance sheet contained in the 2019 prospectus plus the MHC’s net assets (excluding its ownership of the Company). The Company and the Bank are not permitted to pay dividends on their capital stock if the shareholders’ equity of the Company, or the shareholder’s equity of the Bank, would be reduced below the amount of the respective liquidation accounts. The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation accounts. Other Restrictions The Company’s principal source of funds for dividend payments is dividends received from the Bank. Federal and state banking regulations restrict the amount of dividends that may be paid by the Bank in a year, without prior approval of regulatory agencies, to the amount by which net income of the Bank for the year plus the retained net income of the previous two years exceeds any net loss reported in those respective periods. For the six months ended June 30, 2023, the Bank reported net income of $ 5.5 million. For the years ended December 31, 2022 and 2021, the Bank reported a net loss of $ 21.5 million and net income of $ 16.1 million, respectively. No dividends were paid during the six months ended June 30, 2023. The Company may, at times, repurchase its own shares in the open market. Such transactions are subject to the Federal Reserve Board’s notice provisions for stock repurchases. In March 2021, the Company announced its plan to repurchase 1,400,000 shares of its common stock. The repurchase program was adopted following the receipt of non-objection from the Federal Reserve Bank of Boston, and in compliance with applicable state and federal regulations. As of June 30, 2023, the Company had repurchased 1,145,479 shares of its outstanding common stock under this program, however, the Company did no t repurchase any shares of its outstanding common stock under this program during the six months ended June 30, 2023. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Jun. 30, 2023 | |
Employee Stock Ownership Plan [Abstract] | |
Employee Stock Ownership Plan | (12) Employee Stock Ownership Plan The Bank established an employee stock ownership plan (the “ESOP”) to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified plan for the benefit of all Bank employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax law limits. The ESOP acquired 1,538,868 shares between the initial and second-step stock offerings with the proceeds of a loan totaling $ 11.8 million. The loan is payable over 15 years at a rate per annum equal to 5.00 %. Shares used as collateral to secure the loan are released and available for allocation to eligible employees as the principal and interest on the loan is paid. The number of shares committed to be released per year through 2033 is 89,758 . Shares held by the ESOP include the following: June 30, 2023 December 31, 2022 Allocated 551,530 461,772 Committed to be released 44,879 89,758 Unallocated 942,459 987,338 Total 1,538,868 1,538,868 The fair value of unallocated shares was approximately $ 7.8 million at June 30, 2023. Total compensation expense recognized in connection with the ESOP for the three months ended June 30, 2023 and 2022 was $ 169,000 and $ 349,000 , respectively. Total compensation expense recognized for the six months ended June 30, 2023 and 2022 was $ 356,000 and $ 732,000 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | (13) Earnings Per Common Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated ESOP shares, treasury stock and unvested restricted stock is not deemed outstanding for earnings per share calculations. Three Months Ended Six Months Ended (Dollars in thousands, except per share June 30, June 30, June 30, June 30, dollar amounts) 2023 2022 2023 2022 Net Income attributable to common shareholders $ 3,461 $ 5,619 $ 5,564 $ 11,144 Average number of common shares issued 17,688,826 17,765,817 17,687,448 17,810,916 Less: average unallocated ESOP shares ( 949,941 ) ( 1,039,698 ) ( 961,098 ) ( 1,050,855 ) average unvested restricted stock ( 170,221 ) ( 265,871 ) ( 176,599 ) ( 271,120 ) Average number of common shares outstanding to calculate basic earnings per common share 16,568,664 16,460,248 16,549,751 16,488,941 Effect of dilutive unvested restricted stock and stock option awards 1,353 422,685 915 468,245 Average number of common shares outstanding to calculate diluted earnings per common share 16,570,017 16,882,933 16,550,666 16,957,186 Earnings per common share: Basic $ 0.21 $ 0.34 $ 0.34 $ 0.68 Diluted $ 0.21 $ 0.33 $ 0.34 $ 0.66 Stock options for 1,235,342 and 198,627 shares of common stock were not considered in computing diluted earnings per common share for the three months ended June 30, 2023 and 2022, respectively, because they were anti-dilutive, meaning the exercise price for such options were higher than the average price for the Company for such period. For the six months ended June 30, 2023 and 2022, 1,360,013 , and 185,022 shares, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | (14) Share-Based Compensation The shareholders of the Company approved the Provident Bancorp, Inc. 2020 Equity Incentive Plan (the “2020 Equity Plan”) on November 23, 2020, which is in addition to the Provident Bancorp, Inc. 2016 Equity Incentive Plan (the “2016 Equity Plan”, and collectively with the 2020 Equity Plan, the “Equity Plans”). Under the Equity Plans, the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and non-qualified stock options may be granted under the Equity Plans, with 902,344 and 1,021,239 shares reserved for options under the 2016 Equity Plan and 2020 Equity Plan, respectively. The exercise price of each option equals the market price of the Company’s stock on the date of grant and the maximum term of each option is ten years . The total number of shares reserved for restricted stock or restricted units is 360,935 and 408,495 under the 2016 Equity Plan and 2020 Equity Plan, respectively. The value of restricted stock grants is based on the market price of the stock on grant date. Options and awards vest ratably over three to five years . The Company has elected to recognize forfeitures of awards as they occur. Expense related to options and restricted stock granted to directors is recognized in directors’ compensation within non-interest expense. Stock Options The fair value of each option is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: Expected volatility is based on historical volatility of the Company’s common stock price. Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period. The dividend yield assumption is based on the Company’s expectation of dividend payouts. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. The fair value of options granted was determined using the following weighted-average assumptions as of grant date: 2023 Vesting period (years) 5 Expiration date (years) 10 Expected volatility 36.56 % Expected life (years) 7.5 Expected dividend yield 1.67 % Risk free interest rate 3.45 % Fair value per option $ 3.58 A summary of the status of the Company’s stock option grants for the three months ended June 30, 2023 is presented below: Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2022 1,467,876 $ 11.00 Granted 158,100 9.55 Forfeited ( 47,700 ) 14.56 Expired ( 150,448 ) 11.67 Exercised ( 225,565 ) 8.61 Outstanding at June 30, 2023 1,202,263 $ 10.37 6.55 $ — Outstanding and expected to vest at June 30, 2023 1,202,263 $ 10.37 6.55 $ — Vested and Exercisable at June 30, 2023 637,027 $ 11.03 5.02 $ — Unrecognized compensation cost $ 1,977,000 Weighted average remaining recognition period (years) 3.33 For the three months ended June 30, 2023 and 2022, expense for the stock options was $ 164,000 and $ 218,000 , respectively. For the six months ended June 30, 2023 and 2022, total expense for the stock options was $ 320,000 and $ 426,000 , respectively. No stock options were exercised during the three months ended June 30, 2023 or 2022. The intrinsic value of options exercised was $ 97,000 and $ 425,000 for the six months ended June 30, 2023 and 2022, respectively. The tax benefit from option exercises was $ 27,000 and $ 101,000 for the six months ended June 30, 2023 and 2022, respectively. Restricted Stock Shares issued upon the granting of restricted stock may be either authorized but unissued shares or reacquired shares held by the Company. Any shares forfeited because vesting requirements are not met will again be available for issuance under the Equity Plans. The fair market value of shares awarded, based on the market prices at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. The following table presents the activity in restricted stock awards under the Equity Plans for the three months ended June 30, 2023: Unvested Restricted Stock Awards Weighted Average Grant Date Price Unvested restricted stock awards at December 31, 2022 192,748 $ 13.16 Granted 29,515 9.55 Forfeited ( 19,094 ) 14.56 Vested ( 15,594 ) 15.59 Unvested restricted stock awards at June 30, 2023 187,575 $ 12.25 Unrecognized compensation cost $ 1,956,000 Weighted average remaining recognition period (years) 3.15 For the three months ended June 30, 2023 and 2022, expense for the restricted stock awards was $ 168,000 and $ 250,000 , respectively. For the six months ended June 30, 2023 and 2022, total expense for the restricted stock awards was $ 331,000 and $ 487,000 , respectively. The tax benefit from restricted awards was $ 50,000 and $ 69,000 for the three months ended June 30, 2023 and 2022, respectively. The tax benefit from restricted awards was $ 101,000 and $ 135,000 for the six months ended June 30, 2023 and 2022, respectively. The total fair value of shares vested during the three months ended June 30, 2023 and 2022 was $ 77,000 and $ 168,000 , respectively. The total fair value of shares vested during the six months ended June 30, 2023 and 2022 was $ 121,000 and $ 183,000 , respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | (15) Leases The Company recognized right-of-use assets (“ROU”) totaling $ 3.9 million at June 30, 2023 and December 31, 2022, and operating lease liabilities totaling $ 4.2 million and $ 4.3 million at June 30, 2023 and December 31, 2022, respectively. The lease liabilities recognized by the Company represent two leased branch locations and one loan production office. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease components, such as fair market value adjustments, are expensed as incurred and are not included in ROU assets and operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for the leases on a straight-line basis over the lease term. For the six months ended June 30, 2023 and 2022, rent expense for the operating leases totaled $ 157,000 . The following table presents information regarding the Company’s operating leases: June 30, December 31, 2023 2022 Weighted-average discount rate 3.61 % 3.59 % Range of lease expiration dates 1 - 12 years 1 - 13 years Range of lease renewal options 0 - 20 years 5 - 20 years Weighted-average remaining lease term 26.1 years 26.4 years The following table presents the undiscounted annual lease payments under the terms of the Company’s operating leases at June 30, 2023 and December 31, 2022, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets: June 30, December 31, Fiscal Year-End 2023 2022 (In thousands) 2023 $ 132 $ 264 2024 270 270 2025 280 280 2026 291 291 2027 294 293 Thereafter 5,740 5,740 Total lease payments 7,007 7,138 Less imputed interest ( 2,780 ) ( 2,856 ) Total lease liabilities $ 4,227 $ 4,282 The lease liabilities recognized include certain lease extensions as it is expected that the Company will use substantially all lease renewal options. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (16) Revenue Recognition Revenue from contracts with customers in the scope of Accounting Standards Codification (“ASC Topic 606”) is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements. The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 6 Months Ended |
Jun. 30, 2023 | |
Qualified Affordable Housing Project Investments [Abstract] | |
Qualified Affordable Housing Project Investments | (17) Qualified Affordable Housing Project Investments The Bank invests in qualified affordable housing projects. At June 30, 2023 and December 31, 2022, the balance of the investment for qualified affordable housing projects was $ 6.5 million and $ 7.3 million, respectively. These balances are reflected in the other assets line on the Consolidated Balance Sheets. Under the proportional amortization method, the Company recognized amortization expense of $ 179,000 and tax credits of $ 219,000 for the three months ended June 30, 2023, respectively. The Company did no t recognize any amortization expense or tax credits for the three months ended June 30, 2022. The Company recognized amortization expense of $ 1.4 million and tax credits of $ 1.7 million for the six months ended June 30, 2023, respectively. The Company did no t recognize any amortization expense or tax credits for the six months ended June 30, 2022. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Accounting | The accompanying unaudited financial statements of Provident Bancorp, Inc., (the “Company”) were prepared in accordance with the instructions for Form 10-Q and with Regulation S-X and do not include information or footnotes necessary for a complete presentation of the financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, in the opinion of management, all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three- and six-month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. Certain amounts in 2022 have been reclassified to be consistent with the 2023 consolidated financial statement presentation, which had no effect on the net income reported in the consolidated statements of income. These financial statements should be read in conjunction with the annual financial statements and notes thereto included in the annual report on Form 10-K the Company filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2023. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary BankProv (the “Bank”), and the Bank’s wholly owned subsidiaries, Provident Security Corporation, 5 Market Street Security Corporation, and Prov 1, LLC. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. Prov 1, LLC was established to engage in any lawful act or activity for which limited liability companies may be organized. All significant inter-company balances and transactions have been eliminated in consolidation. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit lost (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance-sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company reported a net increase to retained earnings of $ 696,000 as of January 1, 2023 for the cumulative effect of adopting ASC 326. The transition adjustment included a $ 2.6 million increase to retained earnings to adjust the allowance for credit losses on loans based on the new methodology offset by a decrease to retained earnings of $ 1.6 million to adjust the allowance for credit losses on OBS credit exposures based on the new methodology and a $ 249,000 decrease to retained earnings to account for the net tax impact of these adjustments. The following table illustrates the impact of ASC 326 . January 1, 2023 As Reported Impact of Under Pre-ASC 326 ASC 326 (In thousands) ASC 326 Adoption Adoption Assets: Loans Commercial real estate $ 4,317 $ 5,062 $ ( 745 ) Commercial 2,871 3,582 ( 711 ) Enterprise value 7,442 7,712 ( 270 ) Digital asset 10,336 10,493 ( 157 ) Residential real estate 61 43 18 Construction and land development 396 909 ( 513 ) Consumer 4 55 ( 51 ) Mortgage warehouse 54 213 ( 159 ) Allowance for credit loss on loans 25,481 28,069 ( 2,588 ) Liabilities: Allowance for credit losses on off balance sheet credit exposures 1,864 221 1,643 Also on January 1, 2023, the Company adopted ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) , which eliminates the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-40 and amends guidance on “vintage disclosures” to required disclosures of current-period gross write-offs by year of origination. The ASC also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrower experiencing financial difficulty. The Company adopted ASU 2022-02, using the modified retrospective approach, with no material impact to the financial statements. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2022-02 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , to ease the potential burden in accounting for recognizing the effects of reference rate reform on financial reporting. Such challenges include the accounting and operational implications for contract modifications and hedge accounting. The provisions in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to loan and lease agreements, contracts, hedging relationships, and other transactions affected by reference rate reform. These provisions apply to contract modifications that reference LIBOR or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification would be considered "minor" so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company selected the Secured Overnight Financing Rate (“SOFR”) as its primary alternative to LIBOR and used alternative reference rates, based on the individual needs of its customers and the type of credit being extended, when necessary. Legacy LIBOR-based loans transitioned to an alternative reference rate on or before June 30, 2023. The adoption of ASU 2020-04 did not result in a material impact the Company’s Consolidated Financial Statements. |
Revenue Recognition (Policy)
Revenue Recognition (Policy) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue from contracts with customers in the scope of Accounting Standards Codification (“ASC Topic 606”) is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements. The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Table) | 6 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Impact Of New ASC | January 1, 2023 As Reported Impact of Under Pre-ASC 326 ASC 326 (In thousands) ASC 326 Adoption Adoption Assets: Loans Commercial real estate $ 4,317 $ 5,062 $ ( 745 ) Commercial 2,871 3,582 ( 711 ) Enterprise value 7,442 7,712 ( 270 ) Digital asset 10,336 10,493 ( 157 ) Residential real estate 61 43 18 Construction and land development 396 909 ( 513 ) Consumer 4 55 ( 51 ) Mortgage warehouse 54 213 ( 159 ) Allowance for credit loss on loans 25,481 28,069 ( 2,588 ) Liabilities: Allowance for credit losses on off balance sheet credit exposures 1,864 221 1,643 |
Debt Securities (Tables)
Debt Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Securities Available-for-Sale | The following table summarizes the amortized cost, allowance for credit losses, and fair value of debt securities available-for-sale at June 30, 2023 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Amortized Gross Gross Allowance Cost Unrealized Unrealized for Credit Fair (In thousands) Basis Gains Losses Losses Value June 30, 2023 State and municipal securities $ 11,840 $ 2 $ 646 $ — $ 11,196 Asset-backed securities 6,945 — 825 — 6,120 Government mortgage-backed securities 11,328 — 988 — 10,340 Total debt securities available-for-sale $ 30,113 $ 2 $ 2,459 $ — $ 27,656 The following table summarizes the amortized cost and fair value of securities available-for-sale at December 31, 2022 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value December 31, 2022 State and municipal securities $ 11,894 $ 2 $ 825 $ 11,071 Asset-backed securities 7,197 — 923 6,274 Government mortgage-backed securities 12,366 — 1,111 11,255 Total debt securities available-for-sale $ 31,457 $ 2 $ 2,859 $ 28,600 |
Schedule of Maturities of Debt Securities | Available-for-Sale Amortized Fair (In thousands) Cost Value Due after one year through five years $ 863 $ 844 Due after five years through ten years 1,468 1,464 Due after ten years 9,509 8,888 Government mortgage-backed securities 11,328 10,340 Asset-backed securities 6,945 6,120 $ 30,113 $ 27,656 |
Schedule of Aggregate Fair Value and Unrealized Losses of Securities | Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses June 30, 2023 Temporarily impaired securities: State and municipal securities $ 1,978 $ 14 $ 7,785 $ 632 $ 9,763 $ 646 Asset-backed securities — — 6,120 825 6,120 825 Government mortgage-backed securities — — 10,340 988 10,340 988 Total temporarily impaired debt securities $ 1,978 $ 14 $ 24,245 $ 2,445 $ 26,223 $ 2,459 December 31, 2022 Temporarily impaired securities: State and municipal $ 8,174 $ 183 $ 2,297 $ 642 $ 10,471 $ 825 Asset-backed securities 2,322 182 3,951 741 6,273 923 Government mortgage-backed securities 7,428 474 3,827 637 11,255 1,111 Total temporarily impaired debt securities $ 17,924 $ 839 $ 10,075 $ 2,020 $ 27,999 $ 2,859 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses for Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Allowance for Credit Losses for Loans [Abstract] | |
Schedule of Loans | At At June 30, December 31, 2023 2022 (In thousands) Amount Amount Commercial real estate $ 438,029 $ 453,592 Commercial 187,965 216,931 Enterprise value 436,574 438,745 Digital asset (1) 16,768 40,781 Residential real estate 7,490 8,165 Construction and land development 96,757 72,267 Consumer 207 391 Mortgage warehouse 173,755 213,244 1,357,545 1,444,116 Allowance for credit losses - loans ( 23,981 ) ( 28,069 ) Net loans $ 1,333,564 $ 1,416,047 (1) Includes $ 16.8 million and $ 26.5 million in loans secured by cryptocurrency mining rigs at June 30, 2023 and December 31, 2022, respectively. |
Schedule of Allowance for Loan Losses and Related Loan Balances by Portfolio Segment | For the three months ended June 30, (In thousands) Commercial Real Estate Commercial Enterprise value Digital asset Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total Balance at March 31, 2023 $ 4,249 $ 2,615 $ 10,161 $ 7,219 $ 57 $ 470 $ 3 $ 38 $ 24,812 Charge-offs — ( 126 ) — — — — ( 13 ) — ( 139 ) Recoveries — — 45 — — — 3 — 48 Provision (credit) ( 180 ) ( 112 ) ( 512 ) — ( 2 ) 51 9 6 ( 740 ) Balance at June 30, 2023 $ 4,069 $ 2,377 $ 9,694 $ 7,219 $ 55 $ 521 $ 2 $ 44 $ 23,981 Balance at March 31, 2022 $ 4,935 $ 5,380 $ 6,076 $ 1,868 $ 14 $ 565 $ 123 $ 335 $ 19,296 Charge-offs — ( 1,338 ) — — — — ( 7 ) — ( 1,345 ) Recoveries — 5 — — — — 11 — 16 Provision (credit) ( 133 ) 189 407 502 — 173 ( 38 ) ( 95 ) 1,005 Balance at June 30, 2022 $ 4,802 $ 4,236 $ 6,483 $ 2,370 $ 14 $ 738 $ 89 $ 240 $ 18,972 For the six months ended June 30, (In thousands) Commercial Real Estate Commercial Enterprise value Digital asset Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total Balance at December 31, 2022 $ 5,062 $ 3,582 $ 7,712 $ 10,493 $ 43 $ 909 $ 55 $ 213 $ 28,069 Impact of adopting ASC 326 ( 745 ) ( 711 ) ( 270 ) ( 157 ) 18 ( 513 ) ( 51 ) ( 159 ) ( 2,588 ) Charge-offs — ( 167 ) ( 3,560 ) — — — ( 29 ) — ( 3,756 ) Recoveries — 10 45 — — — 6 — 61 Provision (credit) ( 248 ) ( 337 ) 5,767 ( 3,117 ) ( 6 ) 125 21 ( 10 ) 2,195 Balance at June 30, 2023 $ 4,069 $ 2,377 $ 9,694 $ 7,219 $ 55 $ 521 $ 2 $ 44 $ 23,981 Balance at December 31, 2021 $ 4,889 $ 5,371 $ 6,158 $ 2,012 $ 38 $ 479 $ 168 $ 381 $ 19,496 Charge-offs — ( 1,338 ) ( 351 ) — — — ( 35 ) — ( 1,724 ) Recoveries — 6 87 — — — 19 — 112 Provision (credit) ( 87 ) 197 589 358 ( 24 ) 259 ( 63 ) ( 141 ) 1,088 Balance at June 30, 2022 $ 4,802 $ 4,236 $ 6,483 $ 2,370 $ 14 $ 738 $ 89 $ 240 $ 18,972 |
Schedule of Loan Delinquencies by Portfolio Segment | 90 Days Total 30 - 59 60 - 89 or More Past Total Total (In thousands) Days Days Past Due Due Current Loans June 30, 2023 Commercial real estate $ — $ — $ 1 $ 1 $ 438,028 $ 438,029 Commercial — — 32 32 187,933 187,965 Enterprise value — — 92 92 436,482 436,574 Digital asset — — — — 16,768 16,768 Residential real estate 117 2 213 332 7,158 7,490 Construction and land development — — — — 96,757 96,757 Consumer — 1 — 1 206 207 Mortgage warehouse — — — — 173,755 173,755 Total $ 117 $ 3 $ 338 $ 458 $ 1,357,087 $ 1,357,545 December 31, 2022 Commercial real estate $ 240 $ — $ 1 $ 241 $ 453,351 $ 453,592 Commercial — — 41 41 216,890 216,931 Enterprise value — — 92 92 438,653 438,745 Digital asset — — — — 40,781 40,781 Residential real estate — — 73 73 8,092 8,165 Construction and land development — — — — 72,267 72,267 Consumer — 9 — 9 382 391 Mortgage warehouse — — — — 213,244 213,244 Total $ 240 $ 9 $ 207 $ 456 $ 1,443,660 $ 1,444,116 |
Schedule of Non-Accrual Loans and Loan Past Due Over 89 Days But Still Accruing | Non-accrual 90 Days With No or More Allowance Non-accrual Past Due (In thousands) for Credit Loss Loans and Accruing June 30, 2023 Commercial real estate $ 160 $ 160 $ — Commercial 70 70 — Enterprise value 92 4,310 — Digital asset — 16,768 — Residential real estate — 361 — Construction and land development — — — Consumer — — — Mortgage warehouse — — — Total $ 322 $ 21,669 $ — December 31, 2022 Commercial real estate $ 56 $ 56 $ — Commercial 101 101 — Enterprise value 92 92 — Digital asset — 26,488 — Residential real estate ( 70 ) 227 — Construction and land development — — — Consumer — — — Mortgage warehouse — — — Total $ 179 $ 26,964 $ — |
Schedule of Amortized Cost Basis of Collateral Dependent Loans | Commercial Cryptocurrency Real Business Mining Rigs (In thousands) Estate Assets and Other (1) Cash Commercial real estate $ 19,849 $ — $ — $ — Commercial 37 1 — — Enterprise value — 4,218 — 92 Digital asset — — 16,768 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Mortgage warehouse — — — — $ 19,886 $ 4,219 $ 16,768 $ 92 (1) Other collateral includes the USD value of Bitcoin held in control accounts as well as cash accounts held at the Bank. |
Schedule of Loans Modifies to Borrowers in Financial Distress | (Dollars in thousands) Principal Forgiveness Other-Than-Insignificant Payment Delay Term Extension Interest Rate Reduction Term Extension and Interest Rate Reduction Total Class of Financing Receivable $ Total Class of Financing Receivable % June 30, 2023 Commercial $ — $ — $ — $ — $ 21 $ 21 0.01 % Enterprise value — 21,023 — — — 21,023 4.82 Digital asset — — 16,580 — — 16,580 98.88 Total $ — $ 21,023 $ 16,580 $ — $ 21 $ 37,624 2.77 % The Company has committed to lend an additional $ 50,000 based on fund availability through an existing line of credit to a borrower experiencing financial difficulty whose loans had been modified during the six months ended June 30, 2023. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2023: Weighted-Average Payment Delay Weighted-Average Term Extension Weighted-Average Term Extension and Interest Rate Reduction Months Months Months Percentage June 30, 2023 Commercial — — 4 3.25 % Enterprise value 5 — — — % Digital asset — 3 — — % |
Schedule of Most Recent Analysis Performed, the Risk Category of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Term Loans at Amortized Cost by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Commercial Real Estate Pass $ 18,014 $ 54,463 $ 73,090 $ 31,353 $ 62,710 $ 138,942 $ 19,420 $ — $ 397,992 Special mention — — — — 3,133 9,764 — — 12,897 Substandard — — — 1,048 4,518 21,573 — — 27,139 Doubtful — — — — — — — — — Loss — — 1 — — — — — 1 Total commercial real estate 18,014 54,463 73,091 32,401 70,361 170,279 19,420 — 438,029 Commercial real estate Current period gross write offs — — — — — — — — — Commercial Pass 3,173 12,389 54,060 15,151 17,563 29,048 42,689 — 174,073 Special mention — — — — 11 9,955 1,295 — 11,261 Substandard — — 205 — 1,959 239 225 — 2,628 Doubtful — — — — 1 — — — 1 Loss — — — — — 2 — — 2 Total commercial 3,173 12,389 54,265 15,151 19,534 39,244 44,209 — 187,965 Commercial Current period gross write offs — — — — 101 66 — — 167 Enterprise Value Pass 35,659 118,822 132,858 54,563 29,175 7,716 15,886 — 394,679 Special mention — 12,658 6,473 4,827 2,763 1,662 9,201 — 37,584 Substandard — — — — — 3,438 780 — 4,218 Doubtful — — — — — 92 — — 92 Loss — — — 2 1 ( 2 ) — — 1 Total enterprise value 35,659 131,480 139,331 59,392 31,939 12,906 25,867 — 436,574 Enterprise value Current period gross write offs — 3,560 — — — — — — 3,560 Digital Asset Pass — — — — — — — — — Special mention — — — — — — — — — Substandard — 16,580 188 — — — — — 16,768 Doubtful — — — — — — — — — Loss — — — — — — — — — Total digital asset — 16,580 188 — — — — — 16,768 Digital asset Current period gross write offs — — — — — — — — — Residential Real Estate Pass — — — — 193 3,868 2,716 347 7,124 Substandard — — — 5 — 291 70 — 366 Total residential real estate — — — 5 193 4,159 2,786 347 7,490 Residential real estate Current period gross write offs — — — — — — — — — Construction and Land Development Pass 12 44,761 49,394 — — 1,539 1,051 — 96,757 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 12 44,761 49,394 — — 1,539 1,051 — 96,757 Construction and land development Current period gross write offs — — — — — — — — — Consumer Not formally rated — — — — 119 — 88 — 207 Total consumer — — — — 119 — 88 — 207 Consumer Current period gross write offs — — — — 12 17 — — 29 Mortgage Warehouse Pass — — — — — — 173,755 — 173,755 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total mortgage warehouse — — — — — — 173,755 — 173,755 Mortgage warehouse Current period gross write offs — — — — — — — — — The following table presents the Company’s loans by risk rating and portfolio segment at December 31, 2022: (In thousands) Commercial Real Estate Commercial Enterprise Value Digital Asset Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total December 31, 2022 Grade: Pass $ 399,455 $ 202,895 $ 408,616 $ 4,724 $ 7,938 $ 72,267 $ — $ 213,244 $ 1,309,139 Special mention 26,995 11,015 20,091 9,569 — — — — 67,670 Substandard 27,141 2,854 9,946 26,488 227 — — — 66,656 Doubtful — 165 92 — — — — — 257 Loss 1 2 — — — — — — 3 Not formally rated — — — — — — 391 — 391 Total $ 453,592 $ 216,931 $ 438,745 $ 40,781 $ 8,165 $ 72,267 $ 391 $ 213,244 $ 1,444,116 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Schedule of Deposit Balances by Type | At At June 30, December 31, (In thousands) 2023 2022 Noninterest-bearing: Demand (1) $ 404,012 $ 520,226 Interest-bearing: NOW 111,701 145,533 Regular savings 159,940 141,802 Money market deposits 530,964 318,417 Certificates of deposit: Certificate accounts of $250,000 or more 20,869 11,449 Certificate accounts less than $250,000 220,600 142,155 Total interest-bearing (2) 1,044,074 759,356 Total deposits (3) $ 1,448,086 $ 1,279,582 (1) Noninterest-bearing deposits included $ 37.8 million and $ 20.8 million in Banking as a Service (“BaaS”) and digital assets deposits, respectively, as of June 30, 2023. Noninterest-bearing deposits included $ 25.3 million and $ 55.2 million in BaaS and digital assets deposits, respectively, as of December 31, 2022. (2) Interest-bearing deposits included $ 197.9 million and $ 4.4 million in BaaS and digital assets deposits, respectively, as of June 30, 2023. As of December 31, 2022, there were no interest-bearing BaaS deposits, and $ 22.2 million interest-bearing digital assets deposits. (3) Of total deposits as of June 30, 2023 and December 31, 2022, the Federal Deposit Insurance Corporation (“FDIC”) insured approximately 53 % and 55 %, respectively, and the remaining 47 % and 45 %, respectively, were insured through the Depositors Insurance Fund (“DIF”). The DIF is a private, industry-sponsored insurance fund that insures all deposits above FDIC limits at member banks. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Borrowings [Abstract] | |
Schedule of Maturities of Advances from FHLB | (In thousands) Fiscal Year-End 2023 $ 70,066 2024 134 2025 5,136 2026 138 2027 139 Thereafter 4,150 Total $ 79,763 |
Other Repossessed Assets (Table
Other Repossessed Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Repossessed Assets [Abstract] | |
Activity Related To Other Repossessed Assets | (In thousands) Amount Net balance of other repossessed assets at December 31, 2022 $ 6,051 Direct write-downs ( 21 ) Sales of other repossessed assets ( 6,030 ) Net balance of other repossessed assets at June 30, 2023 $ — |
Activity In Valuation Allowance | Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Beginning balance $ — $ — $ 597 $ — Reductions from sales of other repossessed assets — — ( 597 ) — Ending balance $ — $ — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | Fair Value Measurements at Reporting Date Using Significant Significant Other Observable Unobservable Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2023 State and municipal securities $ 11,196 $ — $ 11,196 $ — Asset-backed securities 6,120 — 6,120 — Government mortgage-backed securities 10,340 — 10,340 — Totals $ 27,656 $ — $ 27,656 $ — December 31, 2022 State and municipal securities $ 11,071 $ — $ 11,071 $ — Asset-backed securities 6,274 — 6,274 — Government mortgage-backed securities 11,255 — 11,255 — Totals $ 28,600 $ — $ 28,600 $ — |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2023 Loans Enterprise value $ 1,835 $ — $ — $ 1,835 Digital asset 9,549 — — 9,549 Totals $ 11,384 $ — $ — $ 11,384 December 31, 2022 Loans Commercial $ 16,817 $ — $ — $ 16,817 Other repossessed assets 6,051 — — 6,051 Totals $ 22,868 $ — $ — $ 22,868 |
Schedule of Valuation Methodology and Unobservable Inputs for Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | (In thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2023 Loans Enterprise value $ 1,835 Business or collateral valuation Comparable company or collateral evaluations 0 % - 7 % Digital asset 9,549 Asset valuation Comparable asset evaluations 0 % - 1 % December 31, 2022 Loans Commercial $ 16,817 Business or collateral valuation Comparable company or collateral evaluations 0 % - 10 % Other repossessed assets 6,051 Asset valuation Comparable asset evaluations 0 % - 3 % |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments, Held or Issued for Purposes Other Than Trading | Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total June 30, 2023 Financial assets: Cash and cash equivalents $ 297,858 $ 297,858 $ — $ — $ 297,858 Available-for-sale debt securities 27,656 — 27,656 — 27,656 Federal Home Loan Bank of Boston stock 3,309 N/A N/A N/A N/A Loans, net 1,333,564 — — 1,232,255 1,232,255 Accrued interest receivable 5,007 — 5,007 — 5,007 Financial liabilities: Deposits 1,448,086 — 1,448,873 — 1,448,873 Borrowings 79,763 — 79,513 — 79,513 December 31, 2022 Financial assets: Cash and cash equivalents $ 80,629 $ 80,629 $ — $ — $ 80,629 Available-for-sale debt securities 28,600 — 28,600 — 28,600 Federal Home Loan Bank of Boston stock 4,266 N/A N/A N/A N/A Loans, net 1,416,047 — — 1,341,633 1,341,633 Accrued interest receivable 6,597 — 6,597 — 6,597 Other repossessed assets 6,051 — — 6,051 6,051 Financial liabilities: Deposits 1,279,582 — 1,279,665 — 1,279,665 Borrowings 126,829 — 124,590 — 124,590 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Capital [Abstract] | |
Schedule of Bank's Actual Capital Amounts and Ratios | To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2023 Total Capital (to Risk Weighted Assets) $ 207,287 13.32 % $ 124,452 > 8.0 % $ 155,565 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 187,781 12.07 93,339 > 6.0 124,452 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 187,781 12.07 70,004 > 4.5 101,117 > 6.5 Tier 1 Capital (to Average Assets) 187,781 10.95 68,622 > 4.0 85,777 > 5.0 December 31, 2022 Total Capital (to Risk Weighted Assets) $ 204,354 12.62 % $ 129,492 > 8.0 % $ 161,865 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 97,119 > 6.0 129,492 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 72,839 > 4.5 105,212 > 6.5 Tier 1 Capital (to Average Assets) 184,025 11.17 65,916 > 4.0 82,395 > 5.0 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Employee Stock Ownership Plan [Abstract] | |
Schedule of Shares Held by the ESOP | June 30, 2023 December 31, 2022 Allocated 551,530 461,772 Committed to be released 44,879 89,758 Unallocated 942,459 987,338 Total 1,538,868 1,538,868 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Common Share [Abstract] | |
Schedule of Earning per Share | Three Months Ended Six Months Ended (Dollars in thousands, except per share June 30, June 30, June 30, June 30, dollar amounts) 2023 2022 2023 2022 Net Income attributable to common shareholders $ 3,461 $ 5,619 $ 5,564 $ 11,144 Average number of common shares issued 17,688,826 17,765,817 17,687,448 17,810,916 Less: average unallocated ESOP shares ( 949,941 ) ( 1,039,698 ) ( 961,098 ) ( 1,050,855 ) average unvested restricted stock ( 170,221 ) ( 265,871 ) ( 176,599 ) ( 271,120 ) Average number of common shares outstanding to calculate basic earnings per common share 16,568,664 16,460,248 16,549,751 16,488,941 Effect of dilutive unvested restricted stock and stock option awards 1,353 422,685 915 468,245 Average number of common shares outstanding to calculate diluted earnings per common share 16,570,017 16,882,933 16,550,666 16,957,186 Earnings per common share: Basic $ 0.21 $ 0.34 $ 0.34 $ 0.68 Diluted $ 0.21 $ 0.33 $ 0.34 $ 0.66 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Compensation [Abstract] | |
Schedule of Fair Value of Options Granted Assumptions | 2023 Vesting period (years) 5 Expiration date (years) 10 Expected volatility 36.56 % Expected life (years) 7.5 Expected dividend yield 1.67 % Risk free interest rate 3.45 % Fair value per option $ 3.58 |
Schedule of Stock Option Grants Activity | Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2022 1,467,876 $ 11.00 Granted 158,100 9.55 Forfeited ( 47,700 ) 14.56 Expired ( 150,448 ) 11.67 Exercised ( 225,565 ) 8.61 Outstanding at June 30, 2023 1,202,263 $ 10.37 6.55 $ — Outstanding and expected to vest at June 30, 2023 1,202,263 $ 10.37 6.55 $ — Vested and Exercisable at June 30, 2023 637,027 $ 11.03 5.02 $ — Unrecognized compensation cost $ 1,977,000 Weighted average remaining recognition period (years) 3.33 |
Schedule of Activity in Restricted Stock Awards Under the Equity Plan | Unvested Restricted Stock Awards Weighted Average Grant Date Price Unvested restricted stock awards at December 31, 2022 192,748 $ 13.16 Granted 29,515 9.55 Forfeited ( 19,094 ) 14.56 Vested ( 15,594 ) 15.59 Unvested restricted stock awards at June 30, 2023 187,575 $ 12.25 Unrecognized compensation cost $ 1,956,000 Weighted average remaining recognition period (years) 3.15 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Information Regarding Operating Leases | June 30, December 31, 2023 2022 Weighted-average discount rate 3.61 % 3.59 % Range of lease expiration dates 1 - 12 years 1 - 13 years Range of lease renewal options 0 - 20 years 5 - 20 years Weighted-average remaining lease term 26.1 years 26.4 years |
Schedule of Maturities of Lease Liabilities | June 30, December 31, Fiscal Year-End 2023 2022 (In thousands) 2023 $ 132 $ 264 2024 270 270 2025 280 280 2026 291 291 2027 294 293 Thereafter 5,740 5,740 Total lease payments 7,007 7,138 Less imputed interest ( 2,780 ) ( 2,856 ) Total lease liabilities $ 4,227 $ 4,282 |
Corporate Structure (Narrative)
Corporate Structure (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 item | |
Corporate Structure [Abstract] | |
Number of banking offices | 7 |
Risks and Uncertainties (Narrat
Risks and Uncertainties (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 USD ($) customer | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Unusual Risk or Uncertainty [Line Items] | |||
Additional borrowing capacity of Federal Home Loan Bank of Boston and the Federal Reserve Bank of Boston | $ 239,200 | ||
Securities Portfolio, Percent Of Total Assets | 1.60% | ||
Percent of customers' deposits insured by FDIC | 52.60% | ||
Percent of customers' deposits insured by DIF | 47.40% | ||
Accumulated other comprehensive loss | $ 1,891 | $ 2,200 | |
Accumulated other comprehensive loss, percent | 0.90% | ||
Total loans ending balance | $ 1,357,545 | 1,444,116 | |
Other Repossessed Assets | 6,051 | ||
Nonaccrual Loans | 21,669 | 26,964 | |
Digital Asset [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Financing receivable, allowance for credit losses, individually evaluated for impairment | 7,200 | ||
Total loans ending balance | $ 16,800 | ||
Number of customers | customer | 1 | ||
Commercial [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Total loans ending balance | $ 187,965 | 216,931 | |
Nonaccrual Loans | 70 | $ 101 | |
Term Extension [Member] | Digital Asset [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Nonaccrual Loans | $ 16,800 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
Shareholders' equity | $ 215,072 | $ 239,909 | $ 215,072 | $ 239,909 | $ 207,542 | $ 211,452 | $ 236,545 | $ 233,782 |
Loans, net of allowance for loan losses | 23,981 | 18,972 | 23,981 | 18,972 | 28,069 | 24,812 | 19,296 | 19,496 |
Retained earnings | 100,894 | 100,894 | 94,630 | |||||
Allowance for credit losses on off balance sheet credit exposure | (327) | 36 | (1,483) | 36 | ||||
Accounting Standards Update 2016-13 [Member] | ||||||||
Loans, net of allowance for loan losses | 25,481 | |||||||
Allowance for credit losses on off balance sheet credit exposure | 1,864 | |||||||
Retained Earnings [Member] | ||||||||
Shareholders' equity | $ 100,894 | $ 127,890 | $ 100,894 | $ 127,890 | 94,630 | $ 97,432 | $ 122,939 | $ 118,087 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
Shareholders' equity | 696 | |||||||
Loans, net of allowance for loan losses | (2,588) | |||||||
Retained earnings | 249 | |||||||
Allowance for credit losses on off balance sheet credit exposure | 1,600 | |||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
Shareholders' equity | 696 | |||||||
Loans, net of allowance for loan losses | 2,600 | |||||||
Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
Loans, net of allowance for loan losses | (2,588) | |||||||
Allowance for credit losses on off balance sheet credit exposure | $ 1,643 |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements (Impact of New ASC) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | $ 23,981 | $ 18,972 | $ 23,981 | $ 18,972 | $ 28,069 | $ 24,812 | $ 19,296 | $ 19,496 |
Allowance for credit losses on off balance sheet credit exposure | (327) | 36 | $ (1,483) | 36 | ||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | |||||||
Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 25,481 | |||||||
Allowance for credit losses on off balance sheet credit exposure | 1,864 | |||||||
Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 28,069 | |||||||
Allowance for credit losses on off balance sheet credit exposure | 221 | |||||||
Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | (2,588) | |||||||
Allowance for credit losses on off balance sheet credit exposure | 1,643 | |||||||
Commercial Real Estate [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 4,069 | 4,802 | $ 4,069 | 4,802 | 5,062 | 4,249 | 4,935 | 4,889 |
Commercial Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 4,317 | |||||||
Commercial Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 5,062 | |||||||
Commercial Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | (745) | |||||||
Commercial [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 2,377 | 4,236 | 2,377 | 4,236 | 3,582 | 2,615 | 5,380 | 5,371 |
Commercial [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 2,871 | |||||||
Commercial [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 3,582 | |||||||
Commercial [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | (711) | |||||||
Enterprise Value [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 9,694 | 6,483 | 9,694 | 6,483 | 7,712 | 10,161 | 6,076 | 6,158 |
Enterprise Value [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 7,442 | |||||||
Enterprise Value [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 7,712 | |||||||
Enterprise Value [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | (270) | |||||||
Digital Asset [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 7,219 | 2,370 | 7,219 | 2,370 | 10,493 | 7,219 | 1,868 | 2,012 |
Digital Asset [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 10,336 | |||||||
Digital Asset [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 10,493 | |||||||
Digital Asset [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | (157) | |||||||
Residential Real Estate [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 55 | 14 | 55 | 14 | 43 | 57 | 14 | 38 |
Residential Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 61 | |||||||
Residential Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 43 | |||||||
Residential Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 18 | |||||||
Construction And Land Development [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 521 | 738 | 521 | 738 | 909 | 470 | 565 | 479 |
Construction And Land Development [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 396 | |||||||
Construction And Land Development [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 909 | |||||||
Construction And Land Development [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | (513) | |||||||
Consumer [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 2 | 89 | 2 | 89 | 55 | 3 | 123 | 168 |
Consumer [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 4 | |||||||
Consumer [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 55 | |||||||
Consumer [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | (51) | |||||||
Mortgage Warehouse [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | $ 44 | $ 240 | $ 44 | $ 240 | 213 | $ 38 | $ 335 | $ 381 |
Mortgage Warehouse [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 54 | |||||||
Mortgage Warehouse [Member] | Accounting Standards Update 2016-13 [Member] | Previously Reported [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | 213 | |||||||
Mortgage Warehouse [Member] | Accounting Standards Update 2016-13 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss on loans | $ (159) |
Debt Securities (Narrative) (De
Debt Securities (Narrative) (Details) | 6 Months Ended | ||
Jun. 30, 2023 USD ($) item | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Realized gains or losses on sales and calls | $ 0 | $ 0 | |
Securities pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank | 8,900,000 | $ 9,800,000 | |
Investments in available-for-sale securities (at fair value) | 27,656,000 | 28,600,000 | |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss | 0 | 0 | |
Interest Receivable | 5,007,000 | 6,597,000 | |
Nonperforming Financial Instruments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments in available-for-sale securities (at fair value) | 0 | $ 0 | |
Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Interest Receivable | $ 176,000 | ||
State And Municipal Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Securities in portfolio | item | 19 | ||
Securities in portfolio, unrealized loss position | item | 15 | ||
Aggregate Unrealized Losses, Percent Of Amortized Cost | 5.50% | ||
Investments in available-for-sale securities (at fair value) | $ 11,196,000 | 11,071,000 | |
Asset-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Securities in portfolio, unrealized loss position | item | 4 | ||
Aggregate Unrealized Losses, Percent Of Amortized Cost | 11.90% | ||
Investments in available-for-sale securities (at fair value) | $ 6,120,000 | 6,274,000 | |
Government Mortgage-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Securities in portfolio, unrealized loss position | item | 33 | ||
Aggregate Unrealized Losses, Percent Of Amortized Cost | 8.70% | ||
Investments in available-for-sale securities (at fair value) | $ 10,340,000 | $ 11,255,000 |
Debt Securities (Summary of Amo
Debt Securities (Summary of Amortized Cost and Fair Value of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 30,113 | $ 31,457 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 2,459 | 2,859 |
Fair Value | 27,656 | 28,600 |
State And Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 11,840 | 11,894 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 646 | 825 |
Fair Value | 11,196 | 11,071 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 6,945 | 7,197 |
Gross Unrealized Losses | 825 | 923 |
Fair Value | 6,120 | 6,274 |
Government Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 11,328 | 12,366 |
Gross Unrealized Losses | 988 | 1,111 |
Fair Value | $ 10,340 | $ 11,255 |
Debt Securities (Schedule of Ma
Debt Securities (Schedule of Maturities of Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available-for-Sale, Amortized Cost | ||
Due after one year through five years | $ 863 | |
Due after five years through ten years | 1,468 | |
Due after ten years | 9,509 | |
Amortized Cost Basis | 30,113 | $ 31,457 |
Available-for-Sale, Fair Value | ||
Due after one year through five years | 844 | |
Due after five years through ten years | 1,464 | |
Due after ten years | 8,888 | |
Fair Value | 27,656 | 28,600 |
Government Mortgage-Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost Basis | 11,328 | 12,366 |
Available-for-Sale, Fair Value | ||
Fair Value | 10,340 | 11,255 |
Asset-Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost Basis | 6,945 | 7,197 |
Available-for-Sale, Fair Value | ||
Fair Value | $ 6,120 | $ 6,274 |
Debt Securities (Schedule of Ag
Debt Securities (Schedule of Aggregate Fair Value and Unrealized Losses of Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 1,978 | $ 17,924 |
Unrealized Losses, Less than 12 Months | 14 | 839 |
Fair Value, 12 Months or Longer | 24,245 | 10,075 |
Unrealized Losses, 12 Months or Longer | 2,445 | 2,020 |
Fair Value, Total | 26,223 | 27,999 |
Unrealized Losses, Total | 2,459 | 2,859 |
State And Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 1,978 | 8,174 |
Unrealized Losses, Less than 12 Months | 14 | 183 |
Fair Value, 12 Months or Longer | 7,785 | 2,297 |
Unrealized Losses, 12 Months or Longer | 632 | 642 |
Fair Value, Total | 9,763 | 10,471 |
Unrealized Losses, Total | 646 | 825 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 2,322 | |
Unrealized Losses, Less than 12 Months | 182 | |
Fair Value, 12 Months or Longer | 6,120 | 3,951 |
Unrealized Losses, 12 Months or Longer | 825 | 741 |
Fair Value, Total | 6,120 | 6,273 |
Unrealized Losses, Total | 825 | 923 |
Government Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 7,428 | |
Unrealized Losses, Less than 12 Months | 474 | |
Fair Value, 12 Months or Longer | 10,340 | 3,827 |
Unrealized Losses, 12 Months or Longer | 988 | 637 |
Fair Value, Total | 10,340 | 11,255 |
Unrealized Losses, Total | $ 988 | $ 1,111 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses for Loans (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 USD ($) contract | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of TDR | contract | 0 | ||
Troubled debt restructurings | $ 20,600 | ||
Commitments to lend additional funds | $ 50,000 | ||
Accrued interest receivable | 5,007 | $ 6,597 | |
Loans, Excluded From Estimate Of Credit Losses [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accrued interest receivable | $ 4,800 | $ 6,400 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses for Loans (Schedule of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | $ 1,357,545 | $ 1,444,116 | ||||
Allowance for credit losses - loans | (23,981) | $ (24,812) | (28,069) | $ (18,972) | $ (19,296) | $ (19,496) |
Net loans | 1,333,564 | 1,416,047 | ||||
Commercial Real Estate [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 438,029 | 453,592 | ||||
Allowance for credit losses - loans | (4,069) | (4,249) | (5,062) | (4,802) | (4,935) | (4,889) |
Commercial [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 187,965 | 216,931 | ||||
Allowance for credit losses - loans | (2,377) | (2,615) | (3,582) | (4,236) | (5,380) | (5,371) |
Commercial [Member] | Loans Secured By Cryptocurrency Mining Rigs [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 16,800 | 26,500 | ||||
Enterprise Value [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 436,574 | 438,745 | ||||
Allowance for credit losses - loans | (9,694) | (10,161) | (7,712) | (6,483) | (6,076) | (6,158) |
Digital Asset [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 16,768 | 40,781 | ||||
Allowance for credit losses - loans | (7,219) | (7,219) | (10,493) | (2,370) | (1,868) | (2,012) |
Residential Real Estate [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 7,490 | 8,165 | ||||
Allowance for credit losses - loans | (55) | (57) | (43) | (14) | (14) | (38) |
Construction And Land Development [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 96,757 | 72,267 | ||||
Allowance for credit losses - loans | (521) | (470) | (909) | (738) | (565) | (479) |
Consumer [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 207 | 391 | ||||
Allowance for credit losses - loans | (2) | (3) | (55) | (89) | (123) | (168) |
Mortgage Warehouse [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 173,755 | 213,244 | ||||
Allowance for credit losses - loans | $ (44) | $ (38) | $ (213) | $ (240) | $ (335) | $ (381) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses for Loans (Schedule of Allowance for Loan Losses and Related Loan Balances by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 24,812 | $ 19,296 | $ 28,069 | $ 19,496 |
Charge-offs | (139) | (1,345) | (3,756) | (1,724) |
Recoveries | 48 | 16 | 61 | 112 |
Provision (credit) | (740) | 1,005 | 2,195 | 1,088 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 23,981 | 18,972 | 23,981 | 18,972 |
Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4,249 | 4,935 | 5,062 | 4,889 |
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | (180) | (133) | (248) | (87) |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 4,069 | 4,802 | 4,069 | 4,802 |
Commercial [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,615 | 5,380 | 3,582 | 5,371 |
Charge-offs | (126) | (1,338) | (167) | (1,338) |
Recoveries | 5 | 10 | 6 | |
Provision (credit) | (112) | 189 | (337) | 197 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,377 | 4,236 | 2,377 | 4,236 |
Enterprise Value [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 10,161 | 6,076 | 7,712 | 6,158 |
Charge-offs | (3,560) | (351) | ||
Recoveries | 45 | 45 | 87 | |
Provision (credit) | (512) | 407 | 5,767 | 589 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 9,694 | 6,483 | 9,694 | 6,483 |
Digital Asset [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 7,219 | 1,868 | 10,493 | 2,012 |
Provision (credit) | 502 | (3,117) | 358 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 7,219 | 2,370 | 7,219 | 2,370 |
Residential Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 57 | 14 | 43 | 38 |
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | (2) | (6) | (24) | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 55 | 14 | 55 | 14 |
Construction And Land Development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 470 | 565 | 909 | 479 |
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | 51 | 173 | 125 | 259 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 521 | 738 | 521 | 738 |
Consumer [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 3 | 123 | 55 | 168 |
Charge-offs | (13) | (7) | (29) | (35) |
Recoveries | 3 | 11 | 6 | 19 |
Provision (credit) | 9 | (38) | 21 | (63) |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2 | 89 | 2 | 89 |
Mortgage Warehouse [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 38 | 335 | 213 | 381 |
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | 6 | (95) | (10) | (141) |
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 44 | $ 240 | 44 | $ 240 |
Accounting Standards Update 2016-13 [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 25,481 | |||
Accounting Standards Update 2016-13 [Member] | Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4,317 | |||
Accounting Standards Update 2016-13 [Member] | Commercial [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,871 | |||
Accounting Standards Update 2016-13 [Member] | Enterprise Value [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 7,442 | |||
Accounting Standards Update 2016-13 [Member] | Digital Asset [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 10,336 | |||
Accounting Standards Update 2016-13 [Member] | Residential Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 61 | |||
Accounting Standards Update 2016-13 [Member] | Construction And Land Development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 396 | |||
Accounting Standards Update 2016-13 [Member] | Consumer [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4 | |||
Accounting Standards Update 2016-13 [Member] | Mortgage Warehouse [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 54 | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | (2,588) | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | (745) | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | (711) | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Enterprise Value [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | (270) | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Digital Asset [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | (157) | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Residential Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 18 | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Construction And Land Development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | (513) | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | (51) | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Mortgage Warehouse [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ (159) |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses for Loans (Schedule of Loan Delinquencies by Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 1,357,545 | $ 1,444,116 |
30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 117 | 240 |
60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3 | 9 |
90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 338 | 207 |
Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 458 | 456 |
Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,357,087 | 1,443,660 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 438,029 | 453,592 |
Commercial Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 240 | |
Commercial Real Estate [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1 | 1 |
Commercial Real Estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1 | 241 |
Commercial Real Estate [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 438,028 | 453,351 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 187,965 | 216,931 |
Commercial [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 32 | 41 |
Commercial [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 32 | 41 |
Commercial [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 187,933 | 216,890 |
Enterprise Value [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 436,574 | 438,745 |
Enterprise Value [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 92 | 92 |
Enterprise Value [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 92 | 92 |
Enterprise Value [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 436,482 | 438,653 |
Digital Asset [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 16,768 | 40,781 |
Digital Asset [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 16,768 | 40,781 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 7,490 | 8,165 |
Residential Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 117 | |
Residential Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 2 | |
Residential Real Estate [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 213 | 73 |
Residential Real Estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 332 | 73 |
Residential Real Estate [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 7,158 | 8,092 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 96,757 | 72,267 |
Construction And Land Development [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 96,757 | 72,267 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 207 | 391 |
Consumer [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1 | 9 |
Consumer [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1 | 9 |
Consumer [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 206 | 382 |
Mortgage Warehouse [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 173,755 | 213,244 |
Mortgage Warehouse [Member] | Total Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 173,755 | $ 213,244 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses for Loans (Schedule of Non-Accrual Loans and Loan Past Due Over 89 Days But Still Accruing) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual With No Allowance For Credit Loss | $ 322 | $ 179 |
Nonaccrual Loans | 21,669 | 26,964 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual With No Allowance For Credit Loss | 160 | 56 |
Nonaccrual Loans | 160 | 56 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual With No Allowance For Credit Loss | 70 | 101 |
Nonaccrual Loans | 70 | 101 |
Enterprise Value [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual With No Allowance For Credit Loss | 92 | 92 |
Nonaccrual Loans | 4,310 | 92 |
Digital Asset [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual Loans | 16,768 | 26,488 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual With No Allowance For Credit Loss | (70) | |
Nonaccrual Loans | $ 361 | $ 227 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses for Loans (Schedule of Amortized Cost Basis of Collateral Dependent Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 1,357,545 | $ 1,444,116 |
Commercial Real Estate, Collateral [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 19,886 | |
Business Assets [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,219 | |
Cryptocurrency Mining Rigs And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,768 | |
Cash [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 92 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 438,029 | 453,592 |
Commercial Real Estate [Member] | Commercial Real Estate, Collateral [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 19,849 | |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 187,965 | 216,931 |
Commercial [Member] | Commercial Real Estate, Collateral [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 37 | |
Commercial [Member] | Business Assets [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | |
Enterprise Value [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 436,574 | 438,745 |
Enterprise Value [Member] | Business Assets [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,218 | |
Enterprise Value [Member] | Cash [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 92 | |
Digital Asset [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,768 | 40,781 |
Digital Asset [Member] | Cryptocurrency Mining Rigs And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,768 | |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,490 | 8,165 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 96,757 | 72,267 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 207 | 391 |
Mortgage Warehouse [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 173,755 | $ 213,244 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses for Loans (Schedule of Loans Modifies to Borrowers in Financial Distress) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 37,624 |
Total Class of Financing Receivable | 2.77% |
Other-Than-Insignificant Payment Delay [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 21,023 |
Term Extension [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 16,580 |
Term Extension and Interest Rate Reduction [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 21 |
Commercial [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 21 |
Total Class of Financing Receivable | 0.01% |
Commercial [Member] | Term Extension and Interest Rate Reduction [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 21 |
Enterprise Value [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 21,023 |
Total Class of Financing Receivable | 4.82% |
Enterprise Value [Member] | Other-Than-Insignificant Payment Delay [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 21,023 |
Digital Asset [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 16,580 |
Total Class of Financing Receivable | 98.88% |
Digital Asset [Member] | Term Extension [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 16,580 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses for Loans (Schedule of Financial Effect of Loan Modifications) (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Commercial [Member] | Term Extension and Interest Rate Reduction [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted-Average Interest Rate Percentage | 0.0325% |
Weighted-Average Term | 4 months |
Enterprise Value [Member] | Other-Than-Insignificant Payment Delay [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted-Average Term | 5 months |
Digital Asset [Member] | Term Extension [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted-Average Term | 3 months |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses for Loans (Schedule of Most Recent Analysis Performed, the Risk Category of Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | $ 1,357,545 | $ 1,357,545 | $ 1,444,116 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 139 | $ 1,345 | 3,756 | $ 1,724 | |
Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 1,309,139 | ||||
Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 67,670 | ||||
Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 66,656 | ||||
Doubtful [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 257 | ||||
Loss [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 3 | ||||
Not Formally Rated [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 391 | ||||
Commercial Real Estate [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 18,014 | 18,014 | |||
2022 | 54,463 | 54,463 | |||
2021 | 73,091 | 73,091 | |||
2020 | 32,401 | 32,401 | |||
2019 | 70,361 | 70,361 | |||
Prior | 170,279 | 170,279 | |||
Revolving Loans Amortized Cost | 19,420 | 19,420 | |||
Total | 438,029 | 438,029 | 453,592 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | |||||
Commercial Real Estate [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 18,014 | 18,014 | |||
2022 | 54,463 | 54,463 | |||
2021 | 73,090 | 73,090 | |||
2020 | 31,353 | 31,353 | |||
2019 | 62,710 | 62,710 | |||
Prior | 138,942 | 138,942 | |||
Revolving Loans Amortized Cost | 19,420 | 19,420 | |||
Total | 397,992 | 397,992 | 399,455 | ||
Commercial Real Estate [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2019 | 3,133 | 3,133 | |||
Prior | 9,764 | 9,764 | |||
Total | 12,897 | 12,897 | 26,995 | ||
Commercial Real Estate [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2020 | 1,048 | 1,048 | |||
2019 | 4,518 | 4,518 | |||
Prior | 21,573 | 21,573 | |||
Total | 27,139 | 27,139 | 27,141 | ||
Commercial Real Estate [Member] | Loss [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2021 | 1 | 1 | |||
Total | 1 | 1 | 1 | ||
Commercial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 3,173 | 3,173 | |||
2022 | 12,389 | 12,389 | |||
2021 | 54,265 | 54,265 | |||
2020 | 15,151 | 15,151 | |||
2019 | 19,534 | 19,534 | |||
Prior | 39,244 | 39,244 | |||
Revolving Loans Amortized Cost | 44,209 | 44,209 | |||
Total | 187,965 | 187,965 | 216,931 | ||
2019 | 101 | ||||
Prior | 66 | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 126 | 1,338 | 167 | 1,338 | |
Commercial [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 3,173 | 3,173 | |||
2022 | 12,389 | 12,389 | |||
2021 | 54,060 | 54,060 | |||
2020 | 15,151 | 15,151 | |||
2019 | 17,563 | 17,563 | |||
Prior | 29,048 | 29,048 | |||
Revolving Loans Amortized Cost | 42,689 | 42,689 | |||
Total | 174,073 | 174,073 | 202,895 | ||
Commercial [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2019 | 11 | 11 | |||
Prior | 9,955 | 9,955 | |||
Revolving Loans Amortized Cost | 1,295 | 1,295 | |||
Total | 11,261 | 11,261 | 11,015 | ||
Commercial [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2021 | 205 | 205 | |||
2019 | 1,959 | 1,959 | |||
Prior | 239 | 239 | |||
Revolving Loans Amortized Cost | 225 | 225 | |||
Total | 2,628 | 2,628 | 2,854 | ||
Commercial [Member] | Doubtful [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2019 | 1 | 1 | |||
Total | 1 | 1 | 165 | ||
Commercial [Member] | Loss [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Prior | 2 | 2 | |||
Total | 2 | 2 | 2 | ||
Enterprise Value [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 35,659 | 35,659 | |||
2022 | 131,480 | 131,480 | |||
2021 | 139,331 | 139,331 | |||
2020 | 59,392 | 59,392 | |||
2019 | 31,939 | 31,939 | |||
Prior | 12,906 | 12,906 | |||
Revolving Loans Amortized Cost | 25,867 | 25,867 | |||
Total | 436,574 | 436,574 | 438,745 | ||
2022 | 3,560 | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 3,560 | 351 | |||
Enterprise Value [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 35,659 | 35,659 | |||
2022 | 118,822 | 118,822 | |||
2021 | 132,858 | 132,858 | |||
2020 | 54,563 | 54,563 | |||
2019 | 29,175 | 29,175 | |||
Prior | 7,716 | 7,716 | |||
Revolving Loans Amortized Cost | 15,886 | 15,886 | |||
Total | 394,679 | 394,679 | 408,616 | ||
Enterprise Value [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2022 | 12,658 | 12,658 | |||
2021 | 6,473 | 6,473 | |||
2020 | 4,827 | 4,827 | |||
2019 | 2,763 | 2,763 | |||
Prior | 1,662 | 1,662 | |||
Revolving Loans Amortized Cost | 9,201 | 9,201 | |||
Total | 37,584 | 37,584 | 20,091 | ||
Enterprise Value [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Prior | 3,438 | 3,438 | |||
Revolving Loans Amortized Cost | 780 | 780 | |||
Total | 4,218 | 4,218 | 9,946 | ||
Enterprise Value [Member] | Doubtful [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Prior | 92 | 92 | |||
Total | 92 | 92 | 92 | ||
Enterprise Value [Member] | Loss [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2020 | 2 | 2 | |||
2019 | 1 | 1 | |||
Prior | (2) | (2) | |||
Total | 1 | 1 | |||
Digital Asset [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2022 | 16,580 | 16,580 | |||
2021 | 188 | 188 | |||
Total | 16,768 | 16,768 | 40,781 | ||
Digital Asset [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 4,724 | ||||
Digital Asset [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 9,569 | ||||
Digital Asset [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2022 | 16,580 | 16,580 | |||
2021 | 188 | 188 | |||
Total | 16,768 | 16,768 | 26,488 | ||
Residential Real Estate [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2020 | 5 | 5 | |||
2019 | 193 | 193 | |||
Prior | 4,159 | 4,159 | |||
Revolving Loans Amortized Cost | 2,786 | 2,786 | |||
Revolving Loans Converted to Term Loans | 347 | 347 | |||
Total | 7,490 | 7,490 | 8,165 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | |||||
Residential Real Estate [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2019 | 193 | 193 | |||
Prior | 3,868 | 3,868 | |||
Revolving Loans Amortized Cost | 2,716 | 2,716 | |||
Revolving Loans Converted to Term Loans | 347 | 347 | |||
Total | 7,124 | 7,124 | 7,938 | ||
Residential Real Estate [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2020 | 5 | 5 | |||
Prior | 291 | 291 | |||
Revolving Loans Amortized Cost | 70 | 70 | |||
Total | 366 | 366 | 227 | ||
Construction And Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 12 | 12 | |||
2022 | 44,761 | 44,761 | |||
2021 | 49,394 | 49,394 | |||
Prior | 1,539 | 1,539 | |||
Revolving Loans Amortized Cost | 1,051 | 1,051 | |||
Total | 96,757 | 96,757 | 72,267 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | |||||
Construction And Land Development [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2023 | 12 | 12 | |||
2022 | 44,761 | 44,761 | |||
2021 | 49,394 | 49,394 | |||
Prior | 1,539 | 1,539 | |||
Revolving Loans Amortized Cost | 1,051 | 1,051 | |||
Total | 96,757 | 96,757 | 72,267 | ||
Consumer [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2019 | 119 | 119 | |||
Revolving Loans Amortized Cost | 88 | 88 | |||
Total | 207 | 207 | 391 | ||
2019 | 12 | ||||
Prior | 17 | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 13 | 7 | 29 | $ 35 | |
Consumer [Member] | Not Formally Rated [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
2019 | 119 | 119 | |||
Revolving Loans Amortized Cost | 88 | 88 | |||
Total | 207 | 207 | 391 | ||
Mortgage Warehouse [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Revolving Loans Amortized Cost | 173,755 | 173,755 | |||
Total | 173,755 | 173,755 | 213,244 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | |||||
Mortgage Warehouse [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Revolving Loans Amortized Cost | 173,755 | 173,755 | |||
Total | $ 173,755 | $ 173,755 | $ 213,244 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses for Loans (Schedule of Loans by Risk Rating and Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 1,357,545 | $ 1,444,116 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,309,139 | |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 67,670 | |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 66,656 | |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 257 | |
Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3 | |
Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 391 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 438,029 | 453,592 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 397,992 | 399,455 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,897 | 26,995 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 27,139 | 27,141 |
Commercial Real Estate [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | 1 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 187,965 | 216,931 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 174,073 | 202,895 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,261 | 11,015 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,628 | 2,854 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | 165 |
Commercial [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2 | 2 |
Enterprise Value [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 436,574 | 438,745 |
Enterprise Value [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 394,679 | 408,616 |
Enterprise Value [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 37,584 | 20,091 |
Enterprise Value [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,218 | 9,946 |
Enterprise Value [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 92 | 92 |
Enterprise Value [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | |
Digital Asset [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,768 | 40,781 |
Digital Asset [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,724 | |
Digital Asset [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,569 | |
Digital Asset [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,768 | 26,488 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,490 | 8,165 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,124 | 7,938 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 366 | 227 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 96,757 | 72,267 |
Construction And Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 96,757 | 72,267 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 207 | 391 |
Consumer [Member] | Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 207 | 391 |
Mortgage Warehouse [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 173,755 | 213,244 |
Mortgage Warehouse [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 173,755 | $ 213,244 |
Deposits (Schedule of Deposit B
Deposits (Schedule of Deposit Balances by Type) (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Demand Deposit Accounts | $ 404,012,000 | $ 520,226,000 |
NOW | 111,701,000 | 145,533,000 |
Regular savings | 159,940,000 | 141,802,000 |
Money market deposits | 530,964,000 | 318,417,000 |
Certificate accounts of $250,000 or more | 20,869,000 | 11,449,000 |
Certificate accounts less than $250,000 | 220,600,000 | 142,155,000 |
Total interest-bearing | 1,044,074,000 | 759,356,000 |
Total deposits | 1,448,086,000 | 1,279,582,000 |
Banking as a service, noninterest-bearing deposits | 37,800,000 | 25,300,000 |
Banking as a Service, interest-Bearing deposits | 197,900,000 | 0 |
Digital Asset Deposits, Noninterest Bearing Deposits | 20,800,000 | 55,200,000 |
Digital Asset Deposits, Interest Bearing Deposits | $ 4,400,000 | $ 22,200,000 |
Percentage of FDIC insured deposits | 53% | 55% |
Percentage of DIF deposits | 47% | 45% |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances [Line Items] | ||
Short-term borrowings | $ 70,000 | $ 108,500 |
Interest rate, short-term borrowings | 0.0527% | |
Long-term Debt | $ 9,763 | $ 18,329 |
Federal Home Loan Bank [Member] | Minimum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 0.0121% | |
Federal Home Loan Bank [Member] | Maximum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 0.0132% | |
Federal Home Loan Bank [Member] | Weighted Average [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 0.0128% |
Borrowings (Schedule of Maturit
Borrowings (Schedule of Maturities of Advances from FHLB) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Borrowings [Abstract] | ||
2023 | $ 70,066 | |
2024 | 134 | |
2025 | 5,136 | |
2026 | 138 | |
2027 | 139 | |
Thereafter | 4,150 | |
Total borrowings | $ 79,763 | $ 126,829 |
Other Repossessed Assets (Narra
Other Repossessed Assets (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Other Repossessed Assets [Abstract] | |||
Repossessed Cryptocurrency Mining Rigs In Exchange For Loan Forgiveness, Amount | $ 6,100,000 | ||
Other repossessed assets | $ 6,051,000 | ||
Other repossessed assets, operating expenses | 115,000 | ||
Net gain on sales of other repossessed assets | $ 166,000 | $ 0 |
Other Repossessed Assets (Activ
Other Repossessed Assets (Activity Related To Other Repossessed Assets) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Other Repossessed Assets [Abstract] | |
Beginning balance | $ 6,051 |
Direct write-downs | (21) |
Sales of other repossessed assets | (6,030) |
Ending balance |
Other Repossessed Assets (Act_2
Other Repossessed Assets (Activity In Valuation Allowance) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Other Repossessed Assets [Abstract] | |
Beginning balance | $ 597 |
Reductions from sales of other repossessed assets | (597) |
Ending balance |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Repossessed cryptocurrency mining rigs in exchange for loan forgiveness, amount | $ 6,100 | |
Nonrecurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 11,384 | 22,868 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 11,384 | 22,868 |
Nonrecurring Basis [Member] | Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | |
Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | |
Nonrecurring Basis [Member] | Enterprise Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,835 | |
Nonrecurring Basis [Member] | Enterprise Value [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,835 | |
Nonrecurring Basis [Member] | Digital Asset [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 9,549 | |
Nonrecurring Basis [Member] | Digital Asset [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 9,549 | |
Carrying Amount [Member] | Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 28,700 | |
Reserves | 10,100 | |
Charge offs | $ 1,800 | |
Carrying Amount [Member] | Nonrecurring Basis [Member] | Enterprise Value [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 6,200 | |
Reserves | 2,500 | |
Charge offs | 1,700 | |
Carrying Amount [Member] | Nonrecurring Basis [Member] | Digital Asset [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 18,100 | |
Reserves | 7,200 | |
Interest paid to principal | $ 1,300 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | $ 27,656 | $ 28,600 |
State And Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 11,196 | 11,071 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 6,120 | 6,274 |
Government Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 10,340 | 11,255 |
Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 27,656 | 28,600 |
Recurring Basis [Member] | State And Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 11,196 | 11,071 |
Recurring Basis [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 6,120 | 6,274 |
Recurring Basis [Member] | Government Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 10,340 | 11,255 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 27,656 | 28,600 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | State And Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 11,196 | 11,071 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 6,120 | 6,274 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | Government Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | $ 10,340 | $ 11,255 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - Nonrecurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 11,384 | $ 22,868 |
Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 11,384 | 22,868 |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | |
Enterprise Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,835 | |
Enterprise Value [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,835 | |
Digital Asset [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 9,549 | |
Digital Asset [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 9,549 | |
Other Repossessed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 6,051 | |
Other Repossessed Assets [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 6,051 |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule of Valuation Methodology and Unobservable Inputs for Level 3 Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - Nonrecurring Basis [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 11,384 | $ 22,868 |
Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | 11,384 | 22,868 |
Commercial [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | 16,817 | |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 16,817 | |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 0% | |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 10% | |
Enterprise Value [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | 1,835 | |
Enterprise Value [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1,835 | |
Enterprise Value [Member] | Significant Unobservable Inputs Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 0% | |
Enterprise Value [Member] | Significant Unobservable Inputs Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 7% | |
Digital Asset [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 9,549 | |
Digital Asset [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 9,549 | |
Digital Asset [Member] | Significant Unobservable Inputs Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 0% | |
Digital Asset [Member] | Significant Unobservable Inputs Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 1% | |
Other Repossessed Assets [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6,051 | |
Other Repossessed Assets [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6,051 | |
Other Repossessed Assets [Member] | Significant Unobservable Inputs Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 0% | |
Other Repossessed Assets [Member] | Significant Unobservable Inputs Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 3% |
Fair Value Measurements (Sche_4
Fair Value Measurements (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments, Held or Issued for Purposes Other Than Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Financial assets: | |||
Debt securities available-for-sale | $ 27,656 | $ 28,600 | |
Federal Home Loan Bank of Boston stock | 3,309 | 4,266 | |
Loans, net | 1,333,564 | 1,416,047 | |
Accrued interest receivable | 5,007 | 6,597 | |
Other repossessed assets | 6,051 | ||
Financial liabilities: | |||
Deposits | 1,448,086 | 1,279,582 | |
Borrowings | 9,763 | 18,329 | |
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 297,858 | 80,629 | |
Debt securities available-for-sale | 27,656 | 28,600 | |
Federal Home Loan Bank of Boston stock | 3,309 | 4,266 | |
Loans, net | 1,333,564 | 1,416,047 | |
Accrued interest receivable | 5,007 | 6,597 | |
Other repossessed assets | 6,051 | ||
Financial liabilities: | |||
Deposits | 1,448,086 | 1,279,582 | |
Borrowings | 79,763 | 126,829 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 297,858 | 80,629 | |
Debt securities available-for-sale | 27,656 | 28,600 | |
Loans, net | 1,232,255 | 1,341,633 | |
Accrued interest receivable | 5,007 | 6,597 | |
Other repossessed assets | 6,051 | ||
Financial liabilities: | |||
Deposits | 1,448,873 | 1,279,665 | |
Borrowings | 79,513 | 124,590 | |
Quoted Prices In Active Markets Identical Assets Level 1 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 297,858 | 80,629 | |
Significant Other Observable Inputs Level 2 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Debt securities available-for-sale | 27,656 | 28,600 | |
Accrued interest receivable | 5,007 | 6,597 | |
Financial liabilities: | |||
Deposits | 1,448,873 | 1,279,665 | |
Borrowings | 79,513 | 124,590 | |
Significant Unobservable Inputs Level 3 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Loans, net | $ 1,232,255 | 1,341,633 | |
Other repossessed assets | $ 6,051 |
Regulatory Capital (Narrative)
Regulatory Capital (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2020 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||
Common equity Tier 1 ("CETI") capital ratio | 0.045 | 0.045 | 0.045 | |||||
Minimum Tier 1 capital to risk-weighted assets ratio | 0.060 | 0.060 | 0.060 | |||||
Minimum total capital to risk-weighted assets ratio | 0.080 | 0.080 | 0.080 | |||||
Minimum Tier 1 leverage ratio | 0.040 | 0.040 | 0.040 | |||||
CETI capital ratio | 0.065 | 0.065 | 0.065 | |||||
Tier 1 ratio | 0.080 | 0.080 | 0.080 | |||||
Total risk based capital ratio | 0.10 | 0.10 | 0.100 | |||||
Tier 1 leverage ratio | 0.05% | 0.05% | ||||||
Capital conservation buffer | 2.50% | |||||||
Net income (loss) | $ 3,461,000 | $ 5,619,000 | $ 5,564,000 | $ 11,144,000 | ||||
Dividends paid | $ 0 | |||||||
Stock Repurchased At End Of Period Shares | shares | 1,145,479 | 1,145,479 | ||||||
Repurchase of common stock (in shares) | shares | 0 | |||||||
Subsidiaries [Member] | ||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||
Net income (loss) | $ 5,500,000 | $ 21,500,000 | $ 16,100,000 | |||||
Growth Act [Member] | Minimum [Member] | ||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||
CBLR leverage ratio | 9% | |||||||
Growth Act [Member] | Maximum [Member] | ||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||
CBLR total consolidated assets | $ 10,000,000,000 | |||||||
Common Stock [Member] | ||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||
Repurchase of common stock (in shares) | shares | 85,205 | 180,434 | ||||||
Retained Earnings [Member] | ||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||
Net income (loss) | $ 3,461,000 | $ 5,619,000 | $ 5,564,000 | $ 11,144,000 | ||||
Repurchase Program [Member] | ||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||
Plan to repurchase (in shares) | shares | 1,400,000 |
Regulatory Capital (Schedule of
Regulatory Capital (Schedule of Bank's Actual Capital Amounts and Ratios) (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Regulatory Capital [Abstract] | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 207,287 | $ 204,354 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 0.1332 | 0.1262 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 124,452 | $ 129,492 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 155,565 | $ 161,865 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10 | 0.100 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Amount | $ 187,781 | $ 184,025 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Ratio | 0.1207 | 0.1137 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 93,339 | $ 97,119 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 124,452 | $ 129,492 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.080 | 0.080 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 187,781 | $ 184,025 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1207 | 0.1137 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 70,004 | $ 72,839 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.045 | 0.045 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 101,117 | $ 105,212 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.065 | 0.065 |
Tier 1 Capital (to Average Assets), Actual Capital, Amount | $ 187,781 | $ 184,025 |
Tier 1 Capital (to Average Assets), Actual Capital, Ratio | 0.1095 | 0.1117 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Amount | $ 68,622 | $ 65,916 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 85,777 | $ 82,395 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
ESOP shares | 1,538,868 | 1,538,868 | 1,538,868 | ||
ESOP prime rate percentage | 5% | ||||
Purchase by ESOP (in shares) | 89,758 | ||||
Fair value of unallocated shares | $ 7,800 | $ 7,800 | |||
Compensation expense | $ 169 | $ 349 | $ 356 | $ 732 | |
Old Provident [Member] | |||||
ESOP shares | 1,538,868 | 1,538,868 | |||
Proceeds of a loan | $ 11,800 | ||||
ESOP payable term | 15 years |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan (Schedule of Shares Held by the ESOP) (Details) - shares | Jun. 30, 2023 | Dec. 31, 2022 |
Share-Based Compensation | ||
Allocated | 551,530 | 461,772 |
Committed to be allocated | 44,879 | 89,758 |
Unallocated | 942,459 | 987,338 |
Total | 1,538,868 | 1,538,868 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Common Share [Abstract] | ||||
Anti-dilutive shares | 1,235,342 | 198,627 | 1,360,013 | 185,022 |
Earnings Per Common Share (Sche
Earnings Per Common Share (Schedule of Earning per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Common Share [Abstract] | ||||
Net income attributable to common shareholders | $ 3,461 | $ 5,619 | $ 5,564 | $ 11,144 |
Average number of common shares issued | 17,688,826 | 17,765,817 | 17,687,448 | 17,810,916 |
Less: | ||||
average unallocated ESOP shares | (949,941) | (1,039,698) | (961,098) | (1,050,855) |
average unvested restricted stock | (170,221) | (265,871) | (176,599) | (271,120) |
Average number of common shares outstanding to calculate basic earnings per common share | 16,568,664 | 16,460,248 | 16,549,751 | 16,488,941 |
Effect of dilutive unvested restricted stock and stock option awards | 1,353 | 422,685 | 915 | 468,245 |
Average number of common shares outstanding to calculate diluted earnings per common share | 16,570,017 | 16,882,933 | 16,550,666 | 16,957,186 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.21 | $ 0.34 | $ 0.34 | $ 0.68 |
Diluted (in dollars per share) | $ 0.21 | $ 0.33 | $ 0.34 | $ 0.66 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Options expiration period | 10 years | |||
Vesting period (years) | 5 years | |||
Share based compensation expenses | $ 164,000 | $ 218,000 | $ 320,000 | $ 426,000 |
Intrinsic value of options exercised | 97,000 | 425,000 | ||
Tax benefit from option exercises | $ 27,000 | 101,000 | ||
Stock options exercised, net (in shares) | 0 | 0 | 225,565 | |
Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Share based compensation expenses | $ 168,000 | $ 250,000 | $ 331,000 | 487,000 |
Tax benefit from restricted awards | 50,000 | 69,000 | 101,000 | 135,000 |
Fair value of shares vested | $ 77,000 | $ 168,000 | $ 121,000 | $ 183,000 |
2016 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 902,344 | 902,344 | ||
2016 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 360,935 | 360,935 | ||
2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 1,021,239 | 1,021,239 | ||
2020 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 408,495 | 408,495 | ||
2016 And 2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Options expiration period | 10 years | |||
Minimum [Member] | 2016 And 2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Vesting period (years) | 3 years | |||
Maximum [Member] | 2016 And 2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Vesting period (years) | 5 years |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Fair Value of Options Granted Assumptions) (Details) - Stock Option [Member] | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (years) | 5 years |
Expiration date (years) | 10 years |
Expected volatility | 36.56% |
Expected life (years) | 7 years 6 months |
Expected dividend yield | 1.67% |
Risk free interest rate | 3.45% |
Fair value per option | $ 3.58 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Stock Option Grants Activity) (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Stock Option Awards | |||
Outstanding, beginning | 1,467,876 | ||
Granted | 158,100 | ||
Forfeited | (47,700) | ||
Expired | (150,448) | ||
Exercised | 0 | 0 | (225,565) |
Outstanding, ending | 1,202,263 | 1,202,263 | |
Outstanding and expected to vest at June 30, 2023 | 1,202,263 | 1,202,263 | |
Vested and Exercisable at June 30, 2023 | 637,027 | 637,027 | |
Unrecognized compensation cost | $ 1,977 | $ 1,977 | |
Weighted average remaining recognition period (years) | 3 years 3 months 29 days | ||
Weighted Average Exercise Price | |||
Outstanding, beginning | $ 11 | ||
Granted | 9.55 | ||
Forfeited | 14.56 | ||
Expired | 11.67 | ||
Exercised | 8.61 | ||
Outstanding, ending | $ 10.37 | 10.37 | |
Outstanding and expected to vest at June 30, 2023 | 10.37 | 10.37 | |
Vested and Exercisable at June 30, 2023 | $ 11.03 | $ 11.03 | |
Weighted Average Remaining Contractual Term (years) | |||
Outstanding at June 30, 2023 | 6 years 6 months 18 days | ||
Outstanding and expected to vest at June 30, 2023 | 6 years 6 months 18 days | ||
Vested and Exercisable at June 30, 2023 | 5 years 7 days |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Activity in Restricted Stock Awards Under the Equity Plan) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Unvested restricted stock awards, beginning | shares | 192,748 |
Granted | shares | 29,515 |
Forfeited | shares | (19,094) |
Vested | shares | (15,594) |
Unvested restricted stock awards, ending | shares | 187,575 |
Unrecognized compensation cost | $ | $ 1,956 |
Weighted average remaining recognition period (years) | 3 years 1 month 24 days |
Weighted Average Grant Price | |
Unvested restricted stock awards, beginning | $ / shares | $ 13.16 |
Granted | $ / shares | 9.55 |
Forfeited | $ / shares | 14.56 |
Vested | $ / shares | 15.59 |
Unvested restricted stock awards, ending | $ / shares | $ 12.25 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 USD ($) item | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |||
Operating right-of-use assets | $ 3,861 | $ 3,942 | |
Operating lease liabilities | $ 4,227 | $ 4,282 | |
Number of leased branch locations | item | 2 | ||
Number of leased loan production office | item | 1 | ||
Operating leases expense | $ 157 | $ 157 |
Leases (Schedule of Information
Leases (Schedule of Information Regarding Operating Leases) (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Line Items] | ||
Weighted-average discount rate | 3.61% | 3.59% |
Weighted-average remaining lease term | 26 years 1 month 6 days | 26 years 4 months 24 days |
Minimum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 1 year | 1 year |
Range of lease renewal options | 0 years | 5 years |
Maximum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 12 years | 13 years |
Range of lease renewal options | 20 years | 20 years |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fiscal Year-End | ||
2023 | $ 132 | $ 264 |
2024 | 270 | 270 |
2025 | 280 | 280 |
2026 | 291 | 291 |
2027 | 294 | 293 |
Thereafter | 5,740 | 5,740 |
Total lease payments | 7,007 | 7,138 |
Less imputed interest | (2,780) | (2,856) |
Total lease liabilities | $ 4,227 | $ 4,282 |
Qualified Affordable Housing _2
Qualified Affordable Housing Project Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Qualified Affordable Housing Project Investments [Abstract] | |||||
Qualified affordable housing project investments | $ 6,500,000 | $ 6,500,000 | $ 7,300,000 | ||
Qualified affordable housing project investments, amortized expense | 179,000 | $ 0 | 1,400,000 | $ 0 | |
Qualified affordable housing tax credits | $ 219,000 | $ 0 | $ 1,700,000 | $ 0 |