Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 001-39182 | ||
Entity Registrant Name | FFBW, Inc. /MD/ | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 37-1962248 | ||
Entity Address, Address Line One | 1360 South Moorland Road | ||
Entity Address, City or Town | Brookfield | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53005 | ||
City Area Code | 262 | ||
Local Phone Number | 542-4448 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | FFBW | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,254,201 | ||
Entity Public Float | $ 66.2 | ||
Entity Central Index Key | 0001787384 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Wipfli LLP | ||
Auditor Firm ID | 344 | ||
Auditor Location | Milwaukee, Wisconsin |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 52,483 | $ 41,454 |
Fed funds sold | 14,519 | 25 |
Cash and cash equivalents | 67,002 | 41,479 |
Available for sale securities, stated at fair value | 48,398 | 64,243 |
Loans held for sale | 500 | 1,708 |
Loans, net of allowance for loan and lease losses of $2,430 and $2,811, respectively | 222,104 | 214,723 |
Premises and equipment, net | 5,506 | 5,594 |
Foreclosed assets | 0 | 125 |
Other equity investments | 1,353 | 1,279 |
Accrued interest receivable | 813 | 995 |
Cash value of life insurance | 10,029 | 7,272 |
Other assets | 1,372 | 1,554 |
TOTAL ASSETS | 357,077 | 338,972 |
Liabilities and Equity | ||
Deposits | 255,250 | 226,498 |
Advance payments by borrowers for taxes and insurance | 102 | 127 |
FHLB advances | 6,500 | 7,500 |
Accrued interest payable | 7 | 17 |
Other liabilities | 1,246 | 1,565 |
Total liabilities | 263,105 | 235,707 |
Preferred stock ($0.01 par value, 50,000,000 authorized, no shares issued or outstanding as of December 31, 2021 and December 31, 2020, respectively) | 0 | 0 |
Common stock ($0.01 par value, 100,000,000 authorized, 6,734,970 and 7,695,214 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively) | 67 | 77 |
Additional paid in capital | 58,273 | 69,090 |
Unallocated common stock of Employee Stock Ownership Plan ("ESOP") (550,509 and 581,093 shares at December 31, 2021 and December 31, 2020, respectively) | (5,506) | (5,811) |
Retained earnings | 40,365 | 38,382 |
Accumulated other comprehensive income (loss), net of income taxes | 773 | 1,527 |
Total equity | 93,972 | 103,265 |
TOTAL LIABILITIES AND EQUITY | $ 357,077 | $ 338,972 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for loan and lease losses | $ 2,430 | $ 2,811 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 6,734,970 | 7,695,214 |
Common stock, outstanding (in shares) | 6,734,970 | 7,695,214 |
Unallocated common stock of Employee Stock Ownership Plan, shares (in shares) | 550,509 | 581,093 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | ||
Loans, including fees | $ 10,268 | $ 9,770 |
Securities | ||
Taxable | 814 | 1,058 |
Tax-exempt | 187 | 144 |
Other | 95 | 153 |
Total interest and dividend income | 11,364 | 11,125 |
Interest expense: | ||
Interest-bearing deposits | 939 | 1,435 |
Borrowed funds | 50 | 183 |
Total interest expense | 989 | 1,618 |
Net interest income | 10,375 | 9,507 |
Provision for loan losses | 0 | 520 |
Net interest income after provision for loan losses | 10,375 | 8,987 |
Noninterest income: | ||
Service charges and other fees | 473 | 254 |
Net gain on sale of loans | 237 | 495 |
Net gain on sale of securities | 0 | 15 |
Increase in cash surrender value of insurance | 257 | 205 |
Other noninterest income | 269 | 173 |
Total noninterest income | 1,236 | 1,142 |
Noninterest expense: | ||
Salaries and employee benefits | 5,207 | 4,351 |
Occupancy and equipment | 1,045 | 903 |
Data processing | 1,067 | 991 |
Technology | 277 | 211 |
Foreclosed assets | 0 | 4 |
Professional fees | 444 | 526 |
Other noninterest expense | 942 | 746 |
Total noninterest expense | 8,982 | 7,732 |
Income before income taxes | 2,629 | 2,397 |
Provision for income taxes | 646 | 566 |
Net income | $ 1,983 | $ 1,831 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.31 | $ 0.26 |
Diluted (in dollars per share) | $ 0.31 | $ 0.26 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 1,983 | $ 1,831 |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) arising during the period | (1,050) | 1,652 |
Reclassification adjustment for (gains) losses realized in net income | 0 | (15) |
Other comprehensive income (loss) before tax effect | (1,050) | 1,637 |
Tax effect of other comprehensive income (loss) items | 296 | (454) |
Other comprehensive income (loss), net of tax | (754) | 1,183 |
Comprehensive income | $ 1,229 | $ 3,014 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Unallocated Common Stock of ESOP [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2019 | $ 67 | $ 28,672 | $ (2,303) | $ 36,551 | $ 344 | $ (1,461) | $ 61,870 |
Balance (in shares) at Dec. 31, 2019 | 7,702,478 | ||||||
Conversion of FFBW, Inc. (net of costs) | $ 10 | 41,490 | 41,500 | ||||
Conversion of FFBW, Inc. (net of costs) (in shares) | 2,397 | ||||||
Purchase of ESOP shares | (3,814) | (3,814) | |||||
Treasury stock retired | (1,461) | $ 1,461 | |||||
Contribution of FFBW, MHC | 99 | 99 | |||||
Net Income | 1,831 | 1,831 | |||||
ESOP shares committed to be released | 316 | 316 | |||||
Stock based compensation expense | (26) | 306 | $ 280 | ||||
Stock based compensation expense (in shares) | (9,661) | ||||||
Stock options exercised (in shares) | 0 | ||||||
Other comprehensive income (loss) | 1,183 | $ 1,183 | |||||
Balance at Dec. 31, 2020 | $ 77 | 69,090 | (5,811) | 38,382 | 1,527 | 103,265 | |
Balance (in shares) at Dec. 31, 2020 | 7,695,214 | ||||||
Net Income | 1,983 | 1,983 | |||||
ESOP shares committed to be released | 42 | 305 | 347 | ||||
Stock based compensation expense | 379 | 379 | |||||
Stock based compensation expense (in shares) | 17,231 | ||||||
Stock options exercised | 20 | $ 20 | |||||
Stock options exercised (in shares) | 1,027 | 6,942 | |||||
Repurchase of common stock | $ (10) | (11,258) | $ (11,268) | ||||
Repurchase of common stock (in shares) | (978,502) | ||||||
Other comprehensive income (loss) | (754) | (754) | |||||
Balance at Dec. 31, 2021 | $ 67 | $ 58,273 | $ (5,506) | $ 40,365 | $ 773 | $ 93,972 | |
Balance (in shares) at Dec. 31, 2021 | 6,734,970 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |
ESOP shares committed to be released (in shares) | 30,584 |
Conversion cost of FFBW, Inc | $ | $ 1.2 |
Purchase of ESOP shares (in shares) | 341,485 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,983 | $ 1,831 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 0 | 520 |
Depreciation | 293 | 298 |
Net accretion of loan portfolio discount and deposit premium | (232) | (47) |
Net amortization on securities available for sale | 507 | 389 |
(Gain) loss on sales and impairments of foreclosed assets | 3 | (11) |
(Gain) loss on sale of available for sale securities | 0 | (15) |
Increase in cash surrender value of life insurance | (257) | (205) |
Increase in value of Bankers Bank stock | (74) | (19) |
ESOP compensation | 347 | 279 |
Stock based compensation | 393 | 316 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | 182 | (186) |
Loans held for sale | 1,208 | (1,508) |
Other assets | 343 | (19) |
Accrued interest payable | (10) | (72) |
Other liabilities | (319) | 274 |
Net cash provided by operating activities | 4,367 | 1,825 |
Cash flows from investing activities: | ||
Proceeds from sales of available for sale securities | 3 | 1,017 |
Maturities, calls, paydowns on available for sale securities | 18,580 | 15,630 |
Purchases of available for sale securities | (4,280) | (24,314) |
Net change in loans | (7,041) | (11,941) |
Purchases of premises and equipment | (207) | (56) |
Purchase of FHLB stock | 0 | (251) |
Purchase of life insurance | (2,500) | 0 |
Cash acquired from acquisitions | 0 | 33,280 |
Proceeds from sale of foreclosed assets | 122 | 442 |
Cash received in MHC merger | 0 | 99 |
Net cash provided by (used in) investing activities | 4,677 | 13,906 |
Cash flows from financing activities: | ||
Net change in deposits and advance payments | 28,727 | (47,315) |
Repayments of FHLB advances | (6,000) | (21,000) |
Proceeds from FHLB advances | 5,000 | 17,000 |
Repurchase of common stock | (11,268) | 0 |
Exercise of stock options | 20 | 0 |
Purchase of shares of ESOP | 0 | (3,814) |
Net proceeds from issuance of common stock | 0 | 41,500 |
Net cash (used in) provided by financing activities | 16,479 | (13,629) |
Net change in cash and cash equivalents | 25,523 | 2,102 |
Cash and cash equivalents at beginning | 41,479 | 39,377 |
Cash and cash equivalents at end | 67,002 | 41,479 |
Supplemental Cash Flow Disclosures: | ||
Cash paid for interest | 990 | 1,560 |
Cash paid for income taxes | 400 | 1,471 |
Loans transferred to foreclosed assets | 0 | 347 |
Net equity from business combination (see Note 21) | $ 0 | $ 4,985 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTE 1 - Summary of Significant Accounting Policies Organization From October 2017 until January 2020, as discussed below, we operated in a two-tier mutual holding company structure. FFBW, Inc. (the “Company”) was a federal corporation that was the publicly traded stock holding company of First Federal Bank of Wisconsin (the “Bank”). At December 31, 2019, the Company had 6,566,478 shares of common stock outstanding, of which 2,929,603 shares, or 44.6%, were owned by the public, including 25,000 shares owned by FFBW Community Foundation, and the remaining 3,636,875 shares were held by FFBW, MHC (the “MHC”), a federally chartered mutual holding company and former parent company of the Company. At December 31, 2019, the significant assets of the Company consisted of the capital stock of the Bank. The liabilities of the Company were insignificant. The Company was subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended. The Company was subject to regulation and examination by the Board of Governors of the Federal Reserve System (“the Federal Reserve Board”). First Federal Bank of Wisconsin is a community bank headquartered in Waukesha, Wisconsin that provides financial services to individuals and businesses from our offices in Waukesha, Brookfield, and the Bay View and Historic Mitchell Street neighborhoods of Milwaukee. FFBW, Inc. (“New FFBW”), a Maryland corporation that was organized in September 2019, is a savings and loan holding headquartered in Waukesha, Wisconsin. New FFBW was formed to be the successor to the Company upon completion of the second step mutual-to-stock conversion (the “Conversion”) of the MHC. Prior to completion of the Conversion, approximately 55.4% of the shares of common stock of the Company were owned by the MHC. In conjunction with the Conversion, the MHC and the Company merged into New FFBW. The Conversion was completed on January 16, 2020. In the Conversion, New FFBW sold 4,268,570 shares of common stock at $10.00 per share, for net proceeds of approximately $41.5 million, and issued 3,436,430 shares of common stock in exchange for the shares of common stock of Old FFBW owned by stockholders of Old FFBW, other than the MHC, as of the effective date of the conversion. As a result of the conversion, the MHC and Old FFBW have ceased to exist. The Conversion was conducted pursuant to the MHC’s Plan of Conversion. The Plan of Conversion provided for the establishment, upon the completion of the Conversion, of special “liquidation accounts” for the benefit of certain depositors of the Bank in an amount equal to the MHC’s ownership interest in the stockholders’ equity of the Company as of the date of the latest balance sheet contained in the prospectus plus the MHC’s net assets (excluding its ownership of the Company). According to the plan of Conversion, the Company and the Bank will not be permitted to pay dividends on their capital stock if the shareholders' equity of New FFBW, or the shareholder's equity of the Bank, would be reduced below the amount of the 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. Direct costs of the Conversion and public offering totaling $1,152 were recorded directly to equity as a reduction of the proceeds from the shares sold in the public offering. On December 31, 2020, we completed the acquisition of substantially all the assets and substantially all the liabilities of Mitchell Bank, a Wisconsin-chartered commercial bank headquartered in Milwaukee, Wisconsin. For additional information on the impact of the acquisition, refer to Note 21 – Business Combinations. Jumpstart Our Business Startups Act The Jumpstart Our Business Startups Act (the JOBS Act), which was signed into law on April 5, 2012, has made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as an “emerging growth company” and believes that it will continue to qualify as an “emerging growth company” until five years from the completion of the stock offering. As an “emerging growth company,” the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the fair values of securities, fair value of financial instruments, fair value adjustments related to the business acquisition, the valuation of other real estate owned and the valuation of deferred income tax assets. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company's revenue-generating transactions are not subject to ASC 606, including revenue all interest and dividend income generated from financial instruments. Certain noninterest income items, including loan servicing income, gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated to not fall with the scope of ASC 606. Elements of noninterest income that is within the scope of ASC 606, are as follows: Service charges and other fees - The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Company or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Company's monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. Interchange fees - Customers use a Bank-issued debit card to purchase goods and services, and the Company earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. These fees are included in “service charges and other fees” on the Consolidated Statements of Operations. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and balances due from banks, non-maturity deposits in the Federal Home Loan Bank of Chicago (FHLB), and fed funds sold. The Company has not experienced any losses in such accounts. Available for Sale Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital requirements, and other similar factors. Securities classified as available for sale are carried at fair value. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated life of the securities. Unrealized gains or losses are reported as increases or decreases in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient enough to allow for any anticipated recovery in fair value. Loans Acquired in a Transfer The Company acquires loans (including debt securities) individually and in groups or portfolios. These loans are initially measured at fair value with no allowance for loan losses. The Company’s allowance for loan losses on all acquired loans reflect only those losses incurred subsequent to acquisition. Certain acquired loans may have experienced deterioration of credit quality between origination and the Company’s acquisition of the loans. At acquisition, the Company reviews each loan to determine whether there is evidence of deterioration of credit quality since origination and if it is probable that the Company will be unable to collect all amounts due according to the loan’s contractual terms. If both conditions exist, the Company determines whether each such loan is to be accounted for individually or whether such loans will be assembled into pools of loans based on common risk characteristics (for example, credit score, loan type, and date of origination). The Company considers expected prepayments and estimates the amount and timing of undiscounted principal, interest, and other cash flows expected at acquisition for each loan and aggregated pool of loans. The excess of the loan’s or pool’s scheduled contractual principal and interest payments over all cash flows expected at acquisition is calculated as the nonaccretable difference. The excess of cash flows expected to be collected over the fair value of each loan or pool (accretable yield) is accreted into interest income over the remaining life of the loan or pool. At each reporting date, the Company continues to estimate cash flows expected to be collected for each loan or pool. If expected cash flows have decreased from the acquisition date estimate, the Company recognizes an allowance for loan losses. If expected cash flows have increased from the acquisition date estimate, the Company increases the amount of accretable yield to be recognized as interest income over the remaining life of the loan or pool. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released by the Company. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan sold. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for deferred loan fees and costs, charge-offs, and an allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. When loans are placed on nonaccrual status or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual status. 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 Loan Losses The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable as of the balance sheet date. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. In determining the adequacy of the allowance balance, the Company makes evaluations of the loan portfolio and related off-balance sheet commitments, considers current economic conditions and historical loss experience, and reviews specific problem loans and other factors. When establishing the allowance for loan losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and their relevant risk characteristics are as follows: Commercial development: Commercial real estate: Commercial and industrial: One-to-four family owner-occupied: One-to-four family investor-owned: Multifamily real estate: Consumer: Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the loan portfolio, composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. A loan is impaired when, based on current information, it is probable that the Company will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability based on information available to them at the time of their examination. Troubled Debt Restructurings Loans are accounted for as troubled debt restructurings when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. Troubled debt restructurings are considered impaired loans. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Provisions for depreciation are computed on straight-line and accelerated methods over the estimated useful lives of the assets. Other Equity Investments Other Equity Investments consist of Federal Home Loan Bank (“FHLB”) stock and Bankers’ Bank stock. The value. The Company is required to hold the stock as a member of the FHLB, and transfer of the stock is substantially restricted. The stock is evaluated for impairment on an annual basis. The Company is required to Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s policy is to recognize interest and penalties related to income tax issues as components of income tax expense. During the periods shown, the Company did not recognize any interest or penalties related to income tax expense in its statements of operations. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Advertising Advertising costs are expensed as incurred. Other Comprehensive Income (Loss) Other comprehensive income (loss) is shown on the statements of comprehensive income. The Company’s accumulated other comprehensive income (loss) is comprised of the unrealized gains (losses) on securities available for sale, net of tax and is shown on the statements of changes in equity. Reclassification adjustments out of other comprehensive income (loss) for losses realized on sales of securities available for sale comprise the entire balance of “net gain (loss) on sale of securities” on the statements of operations. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, unfunded commitments under lines of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. Life Insurance The Company owns life insurance policies on certain key executives. Life insurance is measured at the amount that could be realized under the insurance contract as of the balance sheet date, which is generally the cash surrender value of the policy. Reclassifications Certain reclassifications have been made to the 2020 consolidated financial statements to conform to the 2021 classifications. Recent Accounting Pronouncements The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as the Company is an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies. An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, but must make such election when the Company is first required to file a registration statement. The Company has elected to use the extended transition period described above and intends to maintain its emerging growth company status as allowed under the JOBS Act. The following Accounting Standards Updates (ASUs) have been issued by the Financial Accounting and Standards Board (FASB) and may impact the Company's financial statements in future reporting periods: ASU No. 2016-13, “Credit Losses (Topic 326).” ASU No. 2019-04, “Codification Improvements to Topic 326.” ASU No. 2019-05, “Financial Instruments-Credit Losses.” ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently assessing the impact of adopting ASU 2016-13 on its financial statements. ASU No. 2016-02, “Leases (Topic 842): Amendments to the Leases Analysis.” ASU No. 2018-10, “Codification Improvements to Topic 842.” ASU No. 2018-11, “Targeted Improvements” For lessees, Topic 842 requires leases to be recognized on the balance sheet, along with disclosure of key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, 2018-10 and 2018-11. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification expense recognition in the income statement. For lessors, Topic 842 requires lessors to classify leases as sales-type, direct financing or operating leases. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard is effective for the Company on January 1, 2022, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) the new standard's effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company expects to adopt the new standard on January 1, 2022 using the effective date as its date of initial application. The Company will record a right of use asset and corresponding lease obligation at January 1, 2022. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | |
Earnings Per Share | NOTE 2 – Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for weighted average unallocated ESOP shares, during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company’s common stock. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Antidilutive options are disregarded in earnings per share calculations. The following table presents the earnings per share calculations for the years ended December 31: Years ended December 31, 2021 2020 Net income $ 1,983 $ 1,831 Basic potential common shares Weighted average shares outstanding 7,015,476 7,614,517 Weighted average unallocated Employee Stock Ownership Plan Shares (565,865) (596,453) Basic weighted average shares outstanding 6,449,611 7,018,064 Dilutive potential common shares 2,551 223 Dilutive weighted average shares outstanding 6,452,162 7,018,287 Basic earnings per share $ 0.31 $ 0.26 Diluted earnings per share $ 0.31 $ 0.26 |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Due from Banks | |
Cash and Due from Banks | NOTE 3 - Cash and Due from Banks Effective March 12, 2021, the Federal Reserve’s board of directors approved the final rule reducing the required reserve rations to zero percent, effectively eliminating the requirement to maintain reserve balances in cash or on deposit with the Federal Reserve Bank. This reduction in the required reserves does not have a defined timeframe and may be revised by the Federal Reserve’s board in the future. The Company’s total required reserve was $0 as of December 31, 2021 and 2020. The Company is required to maintain reserve balances, in cash or on deposit with the Federal Reserve Bank, based on a percentage of deposits. Per Federal Reserve Board announcement on March 15, 2020, the Board reduced reserve requirements ratios to 0 % effective March 26, 2020. As such, the total required reserve balance as of December 31, 2021 was $0 . The required reserve balance as of December 31, 2020 was $0. In the normal course of business, the Company maintains cash and due from bank balances with correspondent banks. Balances in these accounts may exceed the Federal Deposit Insurance Corporation’s insured limit of $250. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal. |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Dec. 31, 2021 | |
Available for Sale Securities | |
Available for Sale Securities | NOTE 4 – Available for Sale Securities Amortized costs and fair values of available for sale securities are summarized as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2021 Obligations of the US government and US government sponsored agencies $ 1,028 $ 19 $ (7) $ 1,040 Obligations of states and political subdivisions 14,289 376 (41) 14,624 Mortgage-backed securities 25,452 658 (54) 26,056 Certificates of deposit 750 22 - 772 Corporate debt securities 5,821 111 (26) 5,906 Total available for sale securities $ 47,340 $ 1,186 $ (128) $ 48,398 December 31, 2020 Obligations of the US government and US government sponsored agencies $ 717 $ 37 $ — $ 754 Obligations of states and political subdivisions 15,012 612 (19) 15,605 Mortgage-backed securities 36,347 1,361 (28) 37,680 Certificates of deposit 7,880 57 — 7,937 Corporate debt securities 2,179 92 (4) 2,267 Total available for sale securities $ 62,135 $ 2,159 $ (51) $ 64,243 Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in estimated fair value. The following table presents the portion of the Company’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2021 Obligations of the US government and US government sponsored agencies $ 497 $ (7) $ — $ — $ 497 $ (7) Obligations of states and political subdivisions 3,129 (10) 937 (31) 4,066 (41) Mortgage-backed securities 4,116 (24) 1,881 (30) 5,997 (54) Corporate debt securities 2,874 (26) — — 2,874 (26) Total $ 10,616 $ (67) $ 2,818 $ (61) $ 13,434 $ (128) December 31, 2020 Obligations of states and political subdivisions $ 1,543 $ (19) $ — $ — $ 1,543 $ (19) Mortgage-backed securities 4,140 (21) 736 (7) 4,876 (28) Corporate debt securities 849 (4) — — 849 (4) Total $ 6,532 $ (44) $ 736 $ (7) $ 7,268 $ (51) At December 31, 2021, the investment portfolio included 4 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 23 securities available for sale, which had been in an unrealized loss position for less than twelve months. At December 31, 2020, the investment portfolio included 4 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 13 securities available for sale, which had been in an unrealized loss position for less than twelve months. Because these securities have a fixed interest rate, their fair value is sensitive to movements in market interest rates. These unrealized losses are considered temporary because the Company does not currently have the intent to sell the securities before recovery of the losses; therefore we expect to collect all contractually due amounts from these securities. Accordingly, these investments were reduced to their fair values through accumulated other comprehensive income, not through earnings. We regularly assess our securities portfolio for other-than-temporary impairment. These assessments are based on the nature of the securities, the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent related to the individual securities, and the likelihood that we will have to sell securities prior to expected recovery. We did not have any impairment losses recognized in earnings for the years ended December 31, 2021 or December 31, 2020. The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below: December 31, 2021 Amortized Cost Fair Value Due in one year or less $ 250 $ 252 Due after one year through 5 years 6,305 6,424 Due after 5 years through 10 years 10,589 10,820 Due after 10 years 4,744 4,846 Subtotal $ 21,888 $ 22,342 Mortgage-backed securities 25,452 26,056 Total $ 47,340 $ 48,398 The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses: Years ended December 31, 2021 2020 Proceeds from sale of securities $ 3 $ 1,034 Gross gains — 17 Gross losses — (2) Available for sale securities with a carrying value of $989 and $1,038 were pledged at December 31, 2021 and 2020, respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2021 | |
Loans | |
Loans | NOTE 5 - Loans Major classifications of loans are as follows: December 31, December 31, 2021 2020 Commercial Development $ 21,396 $ 14,090 Real estate 94,830 87,605 Commercial and industrial 18,387 20,758 Residential real estate and consumer One-to-four family owner-occupied 18,158 30,548 One-to-four family investor-owned 26,234 32,638 Multifamily 42,511 29,303 Consumer 3,312 3,016 Subtotal $ 224,828 $ 217,958 Deferred loan fees (294) (424) Allowance for loan losses (2,430) (2,811) Net loans $ 222,104 $ 214,723 Deposit accounts in an overdraft position and reclassified as loans approximated $23 and $5 at December 31, 2021 and 2020, respectively. Included in the commercial and industrial loans at December 31, 2021 and 2020, are $262,000 and $7.6 million of loans granted under the Paycheck Protection Program. These loans are fully guaranteed by the Small Business Administration. A summary of the activity in the allowance for loan losses by portfolio segment is as follows: Residential real estate Year Ended Commercial and consumer Total December 31, 2021 Balance at December 31, 2020 $ 1,834 $ 977 $ 2,811 Provision for loan losses 73 (73) — Loans charged off (393) — (393) Recoveries of loans previously charged off 2 10 12 Total ending allowance balance $ 1,516 $ 914 $ 2,430 December 31, 2020 Balance at December 31, 2019 $ 1,251 $ 1,013 $ 2,264 Provision for loan losses 563 (43) 520 Loans charged off — — — Recoveries of loans previously charged off 20 7 27 Total ending allowance balance $ 1,834 $ 977 $ 2,811 Information about how loans were evaluated for impairment and the related allowance for loan losses follows: Residential Real Estate and December 31, 2021 Commercial Consumer Total Loans: Individually evaluated for impairment $ 112 $ 817 $ 929 Collectively evaluated for impairment 134,501 89,398 223,899 Total loans $ 134,613 $ 90,215 $ 224,828 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 1,516 914 2,430 Total allowance for loan losses $ 1,516 $ 914 $ 2,430 Residential Real Estate and December 31, 2020 Commercial Consumer Total Loans: Individually evaluated for impairment $ 792 $ 1,228 $ 2,020 Collectively evaluated for impairment 121,661 94,277 215,938 Total loans $ 122,453 $ 95,505 $ 217,958 Allowance for loan losses: Individually evaluated for impairment $ 450 $ — $ 450 Collectively evaluated for impairment 1,384 977 2,361 Total allowance for loan losses $ 1,834 $ 977 $ 2,811 Information regarding impaired loans follows: Principal Recorded Related Average Interest As of December 31, 2021 Balance Investment Allowance Investment Recognized Loans with no related allowance for loan losses: Commercial Real estate 116 112 — 77 — Residential real estate and consumer One-to-four family owner-occupied 819 770 — 831 7 Consumer 47 47 — 49 — Total loans with no related allowance for loan losses 982 929 — 957 7 Total impaired loans $ 982 $ 929 $ — $ 957 $ 7 Principal Recorded Related Average Interest As of December 31, 2020 Balance Investment Allowance Investment Recognized Loans with related allowance for loan losses: Commercial Commercial and industrial $ 713 $ 704 $ 450 $ 713 $ 19 Total loans with related allowance for loan losses 713 704 450 713 19 Loans with no related allowance for loan losses: Commercial Commercial and industrial 108 88 — 109 5 Residential real estate and consumer One-to-four family owner-occupied 1,017 971 — 979 9 One-to-four family investor-owned 242 206 — 242 — Consumer 52 51 — 54 — Total loans with no related allowance for loan losses 1,419 1,316 — 1,384 14 Total impaired loans $ 2,132 $ 2,020 $ 450 $ 2,097 $ 33 Additional funds of $0 and $215,000 were committed to impaired loans as of December 31, 2021 and 2020, respectively. The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for loan losses. The credit quality indicators monitored differ depending on the class of loan. Commercial loans and one-to-four family investor-owned and multifamily loans are generally evaluated using the following internally prepared ratings: “Pass” ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable. “Special mention” ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable. “Substandard” ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable. “Doubtful” ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely. Information regarding the credit quality indicators most closely monitored for commercial loans by class follows: Special Pass Mention Substandard Doubtful Totals December 31, 2021 Development $ 21,396 $ — $ — $ — $ 21,396 Real estate 93,653 843 334 — 94,830 Commercial and industrial 18,387 — — — 18,387 One-to-four family investor-owned 26,234 — — — 26,234 Multifamily 42,511 — — — 42,511 Totals $ 202,181 $ 843 $ 334 $ — $ 203,358 December 31, 2020 Development $ 14,090 $ — $ — $ — $ 14,090 Real estate 87,605 — — — 87,605 Commercial and industrial 20,046 — 8 704 20,758 One-to-four family investor-owned 32,358 — 280 — 32,638 Multifamily 29,303 — — — 29,303 Totals $ 183,402 $ — $ 288 $ 704 $ 184,394 Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan. Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows: Performing Non-performing Totals December 31, 2021 One-to-four family owner-occupied $ 17,986 $ 172 $ 18,158 Consumer 3,312 — 3,312 $ 21,298 $ 172 $ 21,470 December 31, 2020 One-to-four family owner-occupied $ 30,479 $ 69 $ 30,548 Consumer 3,016 — 3,016 $ 33,495 $ 69 $ 33,564 Loan aging information follows: Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2021 Commercial Development $ 21,396 $ — $ — $ 21,396 $ — Real estate 94,830 — — 94,830 112 Commercial and industrial 18,387 — — 18,387 — Residential real estate and consumer One-to-four family owner-occupied 18,044 114 — 18,158 172 One-to-four family investor-owned 26,234 — — 26,234 — Multifamily 42,511 — — 42,511 — Consumer 3,312 — — 3,312 — Total $ 224,714 $ 114 $ — $ 224,828 $ 284 Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2020 Commercial Development $ 14,090 $ — $ — $ 14,090 $ — Real estate 87,040 565 — 87,605 — Commercial and industrial 20,054 — 704 20,758 792 Residential real estate and consumer One-to-four family owner-occupied 30,347 201 — 30,548 69 One-to-four family investor-owned 32,638 — — 32,638 206 Multifamily 29,303 — — 29,303 — Consumer 3,016 — — 3,016 — Total $ 216,488 $ 766 $ 704 $ 217,958 $ 1,067 There are no loans 90 or more days past due and accruing interest as of December 31, 2021 or 2020. Management regularly monitors impaired loan relationships. In the event facts and circumstances change, an additional provision for loan losses may be necessary. Nonaccrual loans are as follows: As of December 31 2021 2020 Nonaccrual loans, other than troubled debt restructurings $ 15 $ 77 Nonaccrual loans, troubled debt restructurings 269 990 Total nonaccrual loans 284 1,067 Restructured loans, accruing $ 262 $ 425 When, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession to the borrower that the Company would not otherwise consider, the modified loan is classified as a troubled debt-restructuring. Loan modifications may consist of forgiveness of interest and/or principal, a reduction of the interest rate, allowing interest-only payments for a period of time, and/or extending amortization terms. The following presents information regarding new modifications of loans classified as troubled debt restructurings during the year ending December 31, 2021. There were no new loans classified as troubled debt restructurings during the year ended December 31, 2020. All troubled debt restructurings are classified as impaired loans. The recorded investment presented in the following tables does not include specific reserves for loan losses recognized for these loans, which totaled $0 Post- Number of Pre-Modification Modification Modifications Investment Investment December 31, 2021 Commercial: Real estate 1 $ 112 $ 112 Residential real estate and consumer: One-to-four family owner occupied 2 157 157 Total loan modifications 3 $ 269 $ 269 No troubled debt restructurings defaulted within 12 months of their modification date during the year ended December 31, 2021 and 2020. The Company considers a troubled debt restructuring in default if it becomes past due more than 90 days. During April 2020, the Coronavirus Aid, Relief and Economic Security Act was signed into law which provides optional, temporary relief from accounting for certain pandemic-related loan modifications as a TDR. During 2020, the Bank offered payment deferrals to loan customers that were excluded from TDR classification based on this Act. One loan totaling $183,000 remains on a modified status as of December 31, 2021. The Company continues to evaluate purchased loans for impairment. The purchased loans were considered impaired at the acquisition date if there was evidence of deterioration since origination and if it was probable that not all contractually required principal and interest payments would be collected under the loans. As of December 31, 2021 and 2020, there were no loans that were classified as purchased credit impaired. The following table reflects the carrying value of all purchased loans: Contractually Required Principal Receivable Carrying Value Non-Credit of As of December 31, 2021 Credit Impaired Impaired Purchased Loans Commercial Development $ — $ 104 $ 103 Real estate — 2,030 2,022 Commercial and industrial — 1,677 1,643 Residential real estate and consumer One-to-four family owner-occupied — 1,702 1,708 One-to-four family investor-owned — 1,136 1,095 Multifamily — 67 68 Consumer — 43 40 Totals $ — $ 6,759 $ 6,679 Contractually Required Principal Receivable Carrying Value Non-Credit of As of December 31, 2020 Credit Impaired Impaired Purchased Loans Commercial Development $ — $ 118 $ 113 Real estate — 5,665 5,532 Commercial and industrial — 3,471 3,368 Residential real estate and consumer One-to-four family owner-occupied — 5,218 5,206 One-to-four family investor-owned — 6,447 6,294 Multifamily — — — Consumer — 76 63 Totals $ — $ 20,995 $ 20,576 At December 31, 2021 and 2020, the Company had a discount on purchased loans totaling $80 and $419 , respectively. The amount of discount accreted into income totaled |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | NOTE 6 - Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and are summarized as follows: December 31, 2021 2020 Land $ 844 $ 844 Buildings 5,562 5,562 Leasehold improvements 205 191 Furniture and equipment 1,478 1,394 Automobile 66 44 In-progress improvements 87 — Totals 8,242 8,035 Less: Accumulated depreciation 2,736 2,441 Premises and equipment, net $ 5,506 $ 5,594 Depreciation expense was $293 and $298 for the years ended December 31, 2021 and 2020, respectively. During 2017, the Company sold and leased back two of its office buildings. In conjunction with the sales, the Company entered into ten-year leases, with options to renew for two additional five-year terms. Rent expense for all operating leases was $216 Rent commitments, before considering renewal options that are present, are as follows as of December 31, 2021: 2022 $ 197 2023 169 2024 150 2025 152 2026 155 2027 117 Total $ 940 The Company also entered into a lease with a tenant for a portion of the Brookfield branch, commencing June 1, 2018 through May 31, 2024. As of December 31, 2021, minimum future rents receivable are as follows: 2022 $ 103 2023 106 2024 44 Total $ 253 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | NOTE 7 - Deposits The composition of deposits are as follows: December 31, December 31, 2021 2020 Non interest-bearing checking $ 54,243 $ 51,802 Interest-bearing checking 12,864 10,899 Money market 87,585 70,455 Statement savings accounts 33,968 31,977 Health savings accounts 10,608 10,854 Certificates of deposit 55,982 50,511 Total $ 255,250 $ 226,498 Certificates of deposit that meet or exceed the FDIC insurance limit of $250 totaled $10,845 and $9,485 at December 31, 2021 and 2020, respectively. The scheduled maturities of certificates of deposit are as follows as of December 31, 2021: 2022 $ 43,879 2023 9,861 2024 1,448 2025 323 2026 471 Total $ 55,982 |
FHLB Advances
FHLB Advances | 12 Months Ended |
Dec. 31, 2021 | |
FHLB Advances [Abstract] | |
FHLB Advances | NOTE 8 – FHLB Advances FHLB advances consist of the following as of December 31: December 31, 2021 December 31, 2020 Rates Amount Rates Amount Fixed rate, fixed term advances 0.0%-1.71% $ 6,500 0.0%-1.71% $ 5,500 Fixed term advances with floating spread N/A — 2.10% 2,000 $ 6,500 $ 7,500 The following is a summary of scheduled maturities of fixed term FHLB advances as of December 31, 2021: Fixed Rate Advances Adjustable Rate Advances Weighted Weighted Total Average Rate Amount Average Rate Amount Amount 2022 0.39 % $ 6,500 — — $ 6,500 Total 0.39 % $ 6,500 — % $ — $ 6,500 Actual maturities may differ from the scheduled principal maturities due to call options on the various advances. The Company has a master contract agreement with the FHLB that provides for a borrowing up to the lesser of a determined multiple of FHLB stock owned or a determined percentage of the book value of the Company’s qualifying one-to-four family, multifamily, commercial real estate, and commercial and industrial loans. The Company pledged $154,649 and $149,308 of one-to-four family, multifamily, commercial real estate, and commercial and industrial loans to secure FHLB advances at December 31, 2021 and 2020, respectively. FHLB provides both fixed and floating rate advances. Floating rates are tied to short-term market rates of interest, such as Federal funds, FHLB discount note or prime rates. Fixed rate advances are priced in reference to market rates of interest at the time of the advance, namely the rates that FHLB pays to borrowers at various maturities. FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. FHLB advances are also secured by $851 of FHLB stock owned by the Company at both December 31, 2021 and 2020. At December 31, 2021 the Company’s available and unused portion of this borrowing agreement based on the amount of FHLB stock was $16,014. In addition, the Company has a $7,000 federal funds line of credit through Bankers’ Bank of Wisconsin, which was not drawn on as of December 31, 2021. The Company also has the authority to borrow through the Federal Reserve’s Discount Window. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2021 | |
401(K) Plan | |
401(K) Plan | NOTE 9 – 401(k) Plan The Company sponsors a 401(k) plan that covers substantially all employees. To be eligible to participate, an employee must have completed 90 days of service and be 21 years of age or older. The Company matches 100% of employee contributions up to 4% of their annual compensation. The Company may also make non-elective contributions to the plan at the discretion of the Board of Directors. Expense charged to operations for this plan was $216 and $149 for the years ended December 31, 2021 and 2020, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | NOTE 10 - Income Taxes The provision for income taxes included in the accompanying financial statements consists of the following components: Years ended December 31, 2021 2020 Current Taxes (Benefit) Federal $ 309 $ 535 State 163 229 Total Current Taxes 472 764 Deferred Income Taxes (Benefit) Federal 136 (150) State 38 (48) Total Deferred Income Taxes 174 (198) Total Provision for Income Taxes $ 646 $ 566 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax asset in the accompanying balance sheet includes the following amounts of deferred tax assets and liabilities: As of December 31, 2021 2020 Deferred Tax Assets Allowance for loan losses $ 668 $ 765 Deferred compensation 116 124 Non-accrual interest 3 20 Purchase accounting 3 7 Equity compensation 78 40 Deferred loan fees 78 112 Charitable contribution carryforward — 60 Other 38 — Deferred Tax Assets $ 984 $ 1,128 Deferred Tax Liabilities Depreciation and amortization (30) (23) FHLB stock (23) (25) Unrealized gain on available for sale securities (285) (581) Other (29) (4) Deferred Tax Liabilities $ (367) $ (633) Net Deferred Tax Asset $ 617 $ 495 A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes follows: Years ended December 31, 2021 2020 % of Pretax % of Pretax Amount Income Amount Income Reconciliation of statutory to effective rates Federal income taxes at statutory rate $ 552 21.0 % $ 503 21.0 % Adjustments for Tax exempt interest on municipal obligations (36) (1.4) % (26) (1.1) % State income taxes, net of federal income tax benefit 157 6.0 % 146 6.1 % Increase in CSV of life insurance (54) (2.1) % (43) (1.8) % Equity Compensation 12 0.5 % 14 0.6 % Other 15 0.6 % (28) (1.2) % Provision for income taxes $ 646 24.6 % $ 566 23.6 % With few exceptions, the Company is no longer subject to federal or state examinations by taxing authorities for years before 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 11 - Commitments and Contingencies In the normal course of business, the Company may be involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the Company’s financial statements. No legal proceedings existed at December 31, 2021. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. Since some of the commitments are expected to expire without being drawn upon, and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements of the Company. The contract amounts of credit-related financial instruments at December 31, 2021 and 2020 are summarized below: Notional Amount 2021 2020 Unused lines of credit Fixed 19,197 14,902 Variable 6,732 3,770 Undisbursed portion of loan proceeds 453 2,194 Standby letters of credit, variable 1,003 993 Unused commitments under lines of credit are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date. The undisbursed portion of loan proceeds represents undrawn amounts under construction loans. These loans are generally secured by real estate and generally have a specific maturity date. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit issued have expiration dates within one year. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments. Standby letters of credit are not reflected in the financial statements, since recording the fair value of these guarantees would not have a significant impact on the financial statements. The Company sells loans to investors and does not retain servicing responsibilities. Upon sale, the risk of credit loss is passed to the investor, unless the loan is sold with recourse. For loans sold without recourse, the Company does not retain the risk of loss should a loan, previously sold, go into default, unless it is determined that such loan was not within the agreed-upon underwriting guidelines due to negligence on the part of the Company or fraud on the part of the borrower. Such risk retention is standard within the mortgage banking industry. The Company’s exposure relating to the fair value of the representations and warranties and other recourse obligations is not material. The Company is contingently liable in the amount of $1,357 relating to loans sold with recourse at December 31, 2021 and $14,186 as of December 31, 2020. All recourse provisions expire within four months from when the loan is sold. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation | |
Concentration of Credit Risk | NOTE 12 - Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents, investments, and loans. The Company’s cash and cash equivalents are held in demand accounts with various institutions. The Company’s investments are held in a variety of interest bearing investments including obligations from the U.S. government and government sponsored agencies and certificates of deposit. Such deposits are generally in excess of insured limits. The Company has not experienced any historical losses on its deposits of cash and cash equivalents. Practically all of the Company’s loans and commitments have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the ability of their debtors to honor their contracts is dependent on the economic conditions of the counties surrounding the Company. The concentration of credit by type of loan is set forth in Note 5. |
Related-party Transactions
Related-party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related-party Transactions | |
Related-party Transactions | NOTE 13 – Related-Party Transactions A summary of loans to directors, executive officers, and their affiliates follows: Years ended December 31, 2021 2020 Beginning balance $ 10,113 $ 3,615 Adjustments for changes in directors and executive officers — 45 New loans 501 6,462 Repayments (972) (9) Ending balance $ 9,642 $ 10,113 Deposits from directors, executive officers, and their affiliates totaled $1,440 and $1,258 at December 31, 2021 and 2020, respectively. The Company utilizes the services of a law firm in which one of the Company’s directors was a partner thru May 31, 2021. Fees paid to the firm were $0 and $4 during the years ended 2021 and 2020, respectively. The Company also has an operating lease with the law firm for office space through 2023. Rent paid in 2021 and 2020 pertaining to this lease was $50 and $40, respectively. |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2021 | |
Foreclosed Assets [Member] | |
Foreclosed assets | NOTE 14 – Foreclosed Assets There were no foreclosed assets as December 31, 2021. Foreclosed assets consisted of one owner-occupied one-to-four family property for $104 and one residential lot for $21 at December 31, 2020. There were no residential real estate loans that are in the process of foreclosure at December 31, 2021 or 2020. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value | |
Fair Value | NOTE 15 – Fair Value Accounting standards describe three levels of inputs that may be used to measure fair value (the fair value hierarchy). The level of an asset or liability within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement of that asset or liability. Following is a brief description of each level of the fair value hierarchy: Level 1 - Fair value measurement is based on quoted prices for identical assets or liabilities in active markets. Level 2 - Fair value measurement is based on: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; or (3) valuation models and methodologies for which all significant assumptions are or can be corroborated by observable market data. Level 3 - Fair value measurement is based on valuation models and methodologies that incorporate at least one significant assumption that cannot be corroborated by observable market data. Level 3 measurements reflect the Company’s estimates about assumptions market participants would use in measuring fair value of the asset or liability. Some assets and liabilities, such as securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as impaired loans, may be measured at fair value on a nonrecurring basis. Following is a description of the Company’s valuation methodology and significant inputs used for each asset and liability measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy. Available for sale securities Loans Other equity investment Foreclosed assets Assets measured at fair value on a recurring basis are summarized below: Recurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 1,040 $ — $ 1,040 Obligations of states and political subdivisions — 14,624 — 14,624 Mortgage-backed securities — 26,056 — 26,056 Certificates of deposit — 772 — 772 Corporate debt securities — 5,906 — 5,906 Total available for sale securities $ — $ 48,398 $ — $ 48,398 As of December 31, 2020 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 754 $ — $ 754 Obligations of states and political subdivisions — 15,605 — 15,605 Mortgage-backed securities — 37,680 — 37,680 Certificates of deposit — 7,937 — 7,937 Corporate debt securities — 2,267 — 2,267 Total available for sale securities $ — $ 64,243 $ — $ 64,243 Information regarding assets measured at fair value on a nonrecurring basis follows: Nonrecurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Assets Identical Observable Unobservable Measured at Instruments Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) As of December 31, 2021 Assets: Other equity investments $ 503 $ — $ 503 $ — As of December 31, 2020 Assets: Loans $ 254 $ — $ — $ 254 Foreclosed assets 125 — — 125 Other equity investments 225 — 225 — As of December 2021, there were no loans considered impaired and written down to their estimated fair value. Loans with a carrying amount of $704 Foreclosed assets with a carrying amount of $0 and $125 were determined to be at their fair value as of December 31, 2021 and December 31, 2020, respectively. The following presents quantitative information about nonrecurring Level 3 fair value measurements: Range/Weighted Fair Value Valuation Technique Unobservable Input(s) Average As of December 31, 2021 Loans $ 0 Market and/or income approach Management discount on appraised values 10 % - 20 % Foreclosed assets $ 0 Market and/or income approach Management discount on appraised values 10 % - 20 % As of December 31, 2020 Loans $ 254 Market and/or income approach Management discount on appraised values 10 % - 20 % Foreclosed assets $ 125 Market and/or income approach Management discount on appraised values 10 % - 20 % The carrying value and estimated fair value of financial instruments as of December 31, 2021 and 2020 follow: December 31, 2021 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 67,002 $ 67,002 $ — $ — Available for sale securities 48,398 — 48,398 — Loans held for sale 500 — 500 — Loans 222,104 — — 224,612 Accrued interest receivable 813 813 — — Cash value of life insurance 10,029 10,029 — — Other equity investments 1,353 — 503 850 Financial liabilities: Deposits 255,250 199,238 — 55,970 Advance payments by borrowers for taxes and insurance 102 102 — — FHLB advances 6,500 — — 6,489 Accrued interest payable 7 7 — — December 31, 2020 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 41,479 $ 41,479 $ — $ — Available for sale securities 64,243 — 64,243 — Loans held for sale 1,708 — 1,708 — Loans 214,723 — — 217,893 Accrued interest receivable 995 995 — — Cash value of life insurance 7,272 7,272 — — Other equity investments 1,279 — 225 1,054 Financial liabilities: Deposits 226,498 175,987 — 50,732 Advance payments by borrowers for taxes and insurance 127 127 — — FHLB advances 7,500 — — 7,544 Accrued interest payable 17 17 — — Limitations - Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts, nor is it recorded as an intangible asset on the consolidated balance sheets. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Equity and Regulatory Matters
Equity and Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Equity and Regulatory Matters | |
Equity and Regulatory Matters | NOTE 16 – Equity and Regulatory Matters The Bank is subject to various regulatory capital requirements administered by 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 Company’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 assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1, and Total capital to risk-weighted assets and of Tier 1 capital to average assets. It is management’s opinion, as of December 31, 2021, that the Bank met all applicable capital adequacy requirements. As of December 31, 2021, the Bank is categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table. There are no conditions or events since December 31, 2021 that management believes have changed the category. The Bank’s actual capital amounts and ratios are presented in the following tables: To Be Well Capitalized Under Prompt For Capital Adequacy Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Common Equity Tier 1 capital (to risk‑weighted assets) $ 75,554 29.6 % $ ≥ 11,467 ≥ 4.5 % $ ≥ 16,564 ≥ 6.5 % Tier 1 capital (to risk‑weighted assets) 75,554 29.6 ≥ 15,290 ≥ 6.0 ≥ 20,386 ≥ 8.0 Total capital (to risk‑weighted assets) 77,984 30.6 ≥ 20,386 ≥ 8.0 ≥ 25,483 ≥ 10.0 Tier 1 capital (to average assets) 75,554 21.4 ≥ 14,137 ≥ 4.0 ≥ 17,671 ≥ 5.0 December 31, 2020 Common Equity Tier 1 capital (to risk‑weighted assets) $ 73,665 33.1 % $ ≥ 10,018 ≥ 4.5 % $ ≥ 14,471 ≥ 6.5 % Tier 1 capital (to risk‑weighted assets) 73,665 33.1 ≥ 13,358 ≥ 6.0 ≥ 17,810 ≥ 8.0 Total capital (to risk‑weighted assets) 76,448 34.3 ≥ 17,810 ≥ 8.0 ≥ 22,263 ≥ 10.0 Tier 1 capital (to average assets) 73,665 25.2 ≥ 11,700 ≥ 4.0 ≥ 14,625 ≥ 5.0 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets | |
Intangible Assets | NOTE 17 – Intangible Assets The core deposit premium intangible asset had a gross carrying amount of $530 and accumulated amortization of $214 at December 31, 2021. The core deposit premium intangible asset had a gross carrying amount of $530 and accumulated amortization of $106 at December 31, 2020. Aggregate amortization expense for the years ended December 31, 2021 and 2020 was $108 and $16, respectively. The following table shows the estimated future amortization of the core deposit premium intangible asset for the next five years. The projections of amortization expense are based on existing asset balances: As of December 31, 2021 2022 95 2023 82 2024 60 2025 40 2026 26 |
Deferred Compensation
Deferred Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Compensation | |
Deferred Compensation | NOTE 18 – Deferred Compensation The Company has entered into various deferred compensation agreements with key officers. The liability outstanding under the agreements was $422 at December 31, 2021 and $450 at December 31, 2020. The amount charged to operations was $23 and $55 for the twelve months ended December 31, 2021 and 2020, respectively. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2021 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | NOTE 19 – Employee Stock Ownership Plan The Company maintains a leveraged employee stock ownership plan (“ESOP”) that covers substantially all employees. The ESOP was established in conjunction with the Company’s stock offering completed in October 2017 and operates on a plan year ending December 31. The loan to fund the acquisition of stock by the ESOP was made by the Company. An additional loan to the ESOP was made by the Company in conjunction with the Plan of Conversion in 2020. The Bank makes annual contributions to the ESOP equal to the ESOP’s debt service. The ESOP shares initially were pledged as collateral for this debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. Because the debt is intercompany, it is eliminated in consolidation for presentation in these financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet. As shares are committed to be released from collateral and allocated to active participants, the Company reports compensation expense equal to the current market price of the shares and the shares will become outstanding for earnings-per-shares (EPS) computations. During the years ended December 31, 2021 and 2020, 30,584 and 30,584 shares were committed to be released, respectively. During the year ended December 31, 2021 the average fair value per share of stock was $11.38 resulting in total ESOP compensation expense of $347 for the year ended December 31, 2021. During the year ended December 31, 2020 the average fair value per share of stock was $9.30 resulting in total ESOP compensation expense of $279 for the year ended December 31, 2020. The ESOP shares as of December 31 were as follows: December 31, 2021 December 31, 2020 Shares allocated to active participants 62,305 33,861 Shares committed to be released and allocated to participants 30,584 30,584 Shares distributed — (2,140) Total unallocated shares 550,509 581,093 Total ESOP shares 643,398 643,398 Fair value of unallocated shares (based on $11.80 and $10.02 share price at December 31, 2021 and December 31, 2020, respectively) $ 6,496 $ 5,823 |
Share-based Compensation Plans
Share-based Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Plans | |
Share-based Compensation Plans | NOTE 20 - Share-based Compensation Plans ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such awards. The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the period shown: Year Ended December 31, 2021 2020 Total cost of stock grant plan during the year $ 227 $ 177 Total cost of stock option plan during the year 152 139 Total cost of share-based payment plans during the year $ 379 $ 316 Amount of related income tax benefit recognized in income $ 94 $ 85 The Company adopted the FFBW, Inc. 2018 Equity Incentive Plan (the “2018 Equity Incentive Plan”) in 2018. In November 2018, the Company’s stockholders approved the 2018 Equity Incentive Plan which authorized the issuance of up to 152,027 restricted stock awards and up to 380,066 stock options. As of December 31, 2021 there were 41,257 restricted stock awards and 81,294 options available for future grants under this plan. In May 2021, the Company’s stockholders approved the FFBW, Inc. 2021 Equity Incentive Plan which authorized the issuance of up to 170,742 restricted stock awards and up to 426,857 stock options. As of December 31, 2021 there were 161,242 restricted awards and 391,857 options available for future grants under this plan. Shares granted under these Equity Incentive Plans may be authorized but unissued, currently held or, to the extent permitted by applicable law, subsequently acquired by the Company as treasury shares, including shares purchased in the open market or in private transactions. Forfeited or canceled shares shall not be deemed to have been delivered for purposes of determining the maximum number of shares of stock available for delivery under the Plan. Options are granted with an exercise price equal to no less than the market price of the Company’s shares at the date of grant and generally vest pro-rata over five years of service and have 10-year % per year beginning one year from the issuance date. Under the FFBW, Inc. 2021 Equity Incentive Plan, certain restricted shares to Board of Director members vest in one year . The following table summarizes stock options activity for the years ended December 31, 2021 and 2020: Outstanding Weighted Weighted Average Average Remaining Aggregate Stock Option Exercise Contractual Intrinsic Awards Price Term (years) Value Options outstanding as of December 31, 2020 269,220 $ 10.51 Granted 76,000 11.27 Exercised (6,942) 10.14 Expired or cancelled (2,346) 10.64 Forfeited (19,057) 10.01 Options outstanding as of December 31, 2021 316,875 $ 10.73 7.51 $ 342,758 Options exercisable as of December 31, 2021 126,520 $ 10.72 7.05 $ 137,049 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term (in Value (in Options Price years) thousands) Options outstanding as of December 31, 2019 260,510 $ 10.79 Granted 46,716 9.10 Exercised — — Expired or canceled — — Forfeited (38,006) 10.73 Options outstanding as of December 31, 2020 269,220 $ 10.51 8.26 $ — Options exercisable as of December 31, 2020 81,959 $ 10.81 7.98 $ — The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions. Since the Company does not have sufficient historical fair value estimates of its stock, the Company calculates expected volatility using the historical volatility of the Dow Jones U.S. Financial Services Index. The risk-free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options is estimated based on the assumption that options will be exercised evenly throughout their life after vesting and represents the period of time that options granted are expected to remain outstanding. Weighted Average Number of Grant Date Fair Options Value Nonvested options outstanding as of December 31, 2020 187,256 3.06 Granted 76,000 3.29 Vested (53,844) 3.16 Forfeited (19,057) 2.69 Options outstanding as of December 31, 2021 190,355 $ 3.16 The following assumptions were used for options granted during the years ended December 31: 2021 2020 Risk-free interest rate 1.26 % 0.52 % Expected volatility 23.86 % 22.91 % Expected dividend yield 0 % 0 % Expected life of options (years) 7.5 7.5 Weighted average fair value per option of options granted during the year $ 3.29 $ 2.38 The following is a summary of changes in restricted shares for the years ended December 31, 2021 and 2020: Weighted Average Number of Grant Date Fair Shares Value Nonvested stock awards as of December 31, 2020 62,067 $ 10.73 Granted 22,750 11.35 Vested (19,561) 10.77 Forfeited (5,519) 10.08 Nonvested stock awards as of December 31, 2021 59,737 $ 11.02 Nonvested stock awards as of December 31, 2019 90,790 $ 10.79 Granted 2,500 9.10 Vested (19,064) 10.81 Forfeited (12,159) 10.73 Nonvested stock awards as of December 31, 2020 62,067 $ 10.73 As of December 31, 2021, there was $1.0 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements (including share option and non-vested share awards) granted under both Equity Incentive Plans. At December 31, 2021, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 3.0 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination | |
Business Combination | NOTE 21 – BUSINESS COMBINATION On December 31, 2020, the Company acquired substantially all of the assets and assumed substantially all of the liabilities of Mitchell Bank pursuant to the Purchase and Acquisition Agreement dated July 24, 2020. The assets acquired and the liabilities assumed from Mitchell Bank were recorded at their fair value as of the closing date of the acquisition. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding fair values becomes available. A bargain purchase gain of $7,000 was recorded at the time of the acquisition. The following table summarizes the consideration paid by the Company in the acquisition of Mitchell Bank and amounts of the assets acquired and liabilities assumed recognized at the acquisition date: As Recorded Fair Value and Other As Recorded by Mitchell Bank Merger Related Adjustments by the Company Consideration Paid Cash $ 4,978 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and due from banks $ 38,266 $ - $ 38,266 Securities 7,133 16 7,149 Other equity securities 51 177 228 Loans, net of allowance 14,512 (217) 14,295 Premises and equipment 529 499 1,028 Core deposit intangibles - 369 369 Accrued interest receivable 83 - 83 Foreclosed assets 185 (60) 125 Deferred tax asset 228 (228) - Other assets 209 (88) 121 Total assets acquired $ 61,196 $ 468 $ 61,664 Deposits $ 56,641 $ - $ 56,641 Other liabilities 38 - 38 Total liabilities assumed $ 56,679 $ - $ 56,679 Total identifiable assets $ 4,517 $ 468 $ 4,985 Bargain purchase gain resulting from acquisition $ (7) |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Organization | Organization From October 2017 until January 2020, as discussed below, we operated in a two-tier mutual holding company structure. FFBW, Inc. (the “Company”) was a federal corporation that was the publicly traded stock holding company of First Federal Bank of Wisconsin (the “Bank”). At December 31, 2019, the Company had 6,566,478 shares of common stock outstanding, of which 2,929,603 shares, or 44.6%, were owned by the public, including 25,000 shares owned by FFBW Community Foundation, and the remaining 3,636,875 shares were held by FFBW, MHC (the “MHC”), a federally chartered mutual holding company and former parent company of the Company. At December 31, 2019, the significant assets of the Company consisted of the capital stock of the Bank. The liabilities of the Company were insignificant. The Company was subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended. The Company was subject to regulation and examination by the Board of Governors of the Federal Reserve System (“the Federal Reserve Board”). First Federal Bank of Wisconsin is a community bank headquartered in Waukesha, Wisconsin that provides financial services to individuals and businesses from our offices in Waukesha, Brookfield, and the Bay View and Historic Mitchell Street neighborhoods of Milwaukee. FFBW, Inc. (“New FFBW”), a Maryland corporation that was organized in September 2019, is a savings and loan holding headquartered in Waukesha, Wisconsin. New FFBW was formed to be the successor to the Company upon completion of the second step mutual-to-stock conversion (the “Conversion”) of the MHC. Prior to completion of the Conversion, approximately 55.4% of the shares of common stock of the Company were owned by the MHC. In conjunction with the Conversion, the MHC and the Company merged into New FFBW. The Conversion was completed on January 16, 2020. In the Conversion, New FFBW sold 4,268,570 shares of common stock at $10.00 per share, for net proceeds of approximately $41.5 million, and issued 3,436,430 shares of common stock in exchange for the shares of common stock of Old FFBW owned by stockholders of Old FFBW, other than the MHC, as of the effective date of the conversion. As a result of the conversion, the MHC and Old FFBW have ceased to exist. The Conversion was conducted pursuant to the MHC’s Plan of Conversion. The Plan of Conversion provided for the establishment, upon the completion of the Conversion, of special “liquidation accounts” for the benefit of certain depositors of the Bank in an amount equal to the MHC’s ownership interest in the stockholders’ equity of the Company as of the date of the latest balance sheet contained in the prospectus plus the MHC’s net assets (excluding its ownership of the Company). According to the plan of Conversion, the Company and the Bank will not be permitted to pay dividends on their capital stock if the shareholders' equity of New FFBW, or the shareholder's equity of the Bank, would be reduced below the amount of the 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. Direct costs of the Conversion and public offering totaling $1,152 were recorded directly to equity as a reduction of the proceeds from the shares sold in the public offering. On December 31, 2020, we completed the acquisition of substantially all the assets and substantially all the liabilities of Mitchell Bank, a Wisconsin-chartered commercial bank headquartered in Milwaukee, Wisconsin. For additional information on the impact of the acquisition, refer to Note 21 – Business Combinations. |
Jumpstart Our Business Startups Act | Jumpstart Our Business Startups Act The Jumpstart Our Business Startups Act (the JOBS Act), which was signed into law on April 5, 2012, has made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as an “emerging growth company” and believes that it will continue to qualify as an “emerging growth company” until five years from the completion of the stock offering. As an “emerging growth company,” the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the fair values of securities, fair value of financial instruments, fair value adjustments related to the business acquisition, the valuation of other real estate owned and the valuation of deferred income tax assets. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company's revenue-generating transactions are not subject to ASC 606, including revenue all interest and dividend income generated from financial instruments. Certain noninterest income items, including loan servicing income, gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated to not fall with the scope of ASC 606. Elements of noninterest income that is within the scope of ASC 606, are as follows: Service charges and other fees - The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Company or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Company's monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. Interchange fees - Customers use a Bank-issued debit card to purchase goods and services, and the Company earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. These fees are included in “service charges and other fees” on the Consolidated Statements of Operations. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and balances due from banks, non-maturity deposits in the Federal Home Loan Bank of Chicago (FHLB), and fed funds sold. The Company has not experienced any losses in such accounts. |
Available for Sale Securities | Available for Sale Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital requirements, and other similar factors. Securities classified as available for sale are carried at fair value. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated life of the securities. Unrealized gains or losses are reported as increases or decreases in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient enough to allow for any anticipated recovery in fair value. |
Loans Acquired in a Transfer | Loans Acquired in a Transfer The Company acquires loans (including debt securities) individually and in groups or portfolios. These loans are initially measured at fair value with no allowance for loan losses. The Company’s allowance for loan losses on all acquired loans reflect only those losses incurred subsequent to acquisition. Certain acquired loans may have experienced deterioration of credit quality between origination and the Company’s acquisition of the loans. At acquisition, the Company reviews each loan to determine whether there is evidence of deterioration of credit quality since origination and if it is probable that the Company will be unable to collect all amounts due according to the loan’s contractual terms. If both conditions exist, the Company determines whether each such loan is to be accounted for individually or whether such loans will be assembled into pools of loans based on common risk characteristics (for example, credit score, loan type, and date of origination). The Company considers expected prepayments and estimates the amount and timing of undiscounted principal, interest, and other cash flows expected at acquisition for each loan and aggregated pool of loans. The excess of the loan’s or pool’s scheduled contractual principal and interest payments over all cash flows expected at acquisition is calculated as the nonaccretable difference. The excess of cash flows expected to be collected over the fair value of each loan or pool (accretable yield) is accreted into interest income over the remaining life of the loan or pool. At each reporting date, the Company continues to estimate cash flows expected to be collected for each loan or pool. If expected cash flows have decreased from the acquisition date estimate, the Company recognizes an allowance for loan losses. If expected cash flows have increased from the acquisition date estimate, the Company increases the amount of accretable yield to be recognized as interest income over the remaining life of the loan or pool. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released by the Company. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan sold. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for deferred loan fees and costs, charge-offs, and an allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. When loans are placed on nonaccrual status or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual status. 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 Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable as of the balance sheet date. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. In determining the adequacy of the allowance balance, the Company makes evaluations of the loan portfolio and related off-balance sheet commitments, considers current economic conditions and historical loss experience, and reviews specific problem loans and other factors. When establishing the allowance for loan losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and their relevant risk characteristics are as follows: Commercial development: Commercial real estate: Commercial and industrial: One-to-four family owner-occupied: One-to-four family investor-owned: Multifamily real estate: Consumer: Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the loan portfolio, composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. A loan is impaired when, based on current information, it is probable that the Company will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability based on information available to them at the time of their examination. |
Troubled Debt Restructurings | Troubled Debt Restructurings Loans are accounted for as troubled debt restructurings when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. Troubled debt restructurings are considered impaired loans. |
Foreclosed Assets | Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Provisions for depreciation are computed on straight-line and accelerated methods over the estimated useful lives of the assets. |
Other Equity Investments | Other Equity Investments Other Equity Investments consist of Federal Home Loan Bank (“FHLB”) stock and Bankers’ Bank stock. The value. The Company is required to hold the stock as a member of the FHLB, and transfer of the stock is substantially restricted. The stock is evaluated for impairment on an annual basis. The Company is required to |
Income Taxes | Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s policy is to recognize interest and penalties related to income tax issues as components of income tax expense. During the periods shown, the Company did not recognize any interest or penalties related to income tax expense in its statements of operations. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) is shown on the statements of comprehensive income. The Company’s accumulated other comprehensive income (loss) is comprised of the unrealized gains (losses) on securities available for sale, net of tax and is shown on the statements of changes in equity. Reclassification adjustments out of other comprehensive income (loss) for losses realized on sales of securities available for sale comprise the entire balance of “net gain (loss) on sale of securities” on the statements of operations. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, unfunded commitments under lines of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. |
Life Insurance | Life Insurance The Company owns life insurance policies on certain key executives. Life insurance is measured at the amount that could be realized under the insurance contract as of the balance sheet date, which is generally the cash surrender value of the policy. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2020 consolidated financial statements to conform to the 2021 classifications. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the earnings per share calculations for the years ended December 31: Years ended December 31, 2021 2020 Net income $ 1,983 $ 1,831 Basic potential common shares Weighted average shares outstanding 7,015,476 7,614,517 Weighted average unallocated Employee Stock Ownership Plan Shares (565,865) (596,453) Basic weighted average shares outstanding 6,449,611 7,018,064 Dilutive potential common shares 2,551 223 Dilutive weighted average shares outstanding 6,452,162 7,018,287 Basic earnings per share $ 0.31 $ 0.26 Diluted earnings per share $ 0.31 $ 0.26 |
Available for Sale Securities (
Available for Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Available for Sale Securities | |
Schedule of Amortized Costs and Fair Values of Available for Sale Securities | Amortized costs and fair values of available for sale securities are summarized as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2021 Obligations of the US government and US government sponsored agencies $ 1,028 $ 19 $ (7) $ 1,040 Obligations of states and political subdivisions 14,289 376 (41) 14,624 Mortgage-backed securities 25,452 658 (54) 26,056 Certificates of deposit 750 22 - 772 Corporate debt securities 5,821 111 (26) 5,906 Total available for sale securities $ 47,340 $ 1,186 $ (128) $ 48,398 December 31, 2020 Obligations of the US government and US government sponsored agencies $ 717 $ 37 $ — $ 754 Obligations of states and political subdivisions 15,012 612 (19) 15,605 Mortgage-backed securities 36,347 1,361 (28) 37,680 Certificates of deposit 7,880 57 — 7,937 Corporate debt securities 2,179 92 (4) 2,267 Total available for sale securities $ 62,135 $ 2,159 $ (51) $ 64,243 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents the portion of the Company’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2021 Obligations of the US government and US government sponsored agencies $ 497 $ (7) $ — $ — $ 497 $ (7) Obligations of states and political subdivisions 3,129 (10) 937 (31) 4,066 (41) Mortgage-backed securities 4,116 (24) 1,881 (30) 5,997 (54) Corporate debt securities 2,874 (26) — — 2,874 (26) Total $ 10,616 $ (67) $ 2,818 $ (61) $ 13,434 $ (128) December 31, 2020 Obligations of states and political subdivisions $ 1,543 $ (19) $ — $ — $ 1,543 $ (19) Mortgage-backed securities 4,140 (21) 736 (7) 4,876 (28) Corporate debt securities 849 (4) — — 849 (4) Total $ 6,532 $ (44) $ 736 $ (7) $ 7,268 $ (51) |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below: December 31, 2021 Amortized Cost Fair Value Due in one year or less $ 250 $ 252 Due after one year through 5 years 6,305 6,424 Due after 5 years through 10 years 10,589 10,820 Due after 10 years 4,744 4,846 Subtotal $ 21,888 $ 22,342 Mortgage-backed securities 25,452 26,056 Total $ 47,340 $ 48,398 |
Summary of the Proceeds from Sales of Securities | The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses: Years ended December 31, 2021 2020 Proceeds from sale of securities $ 3 $ 1,034 Gross gains — 17 Gross losses — (2) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans | |
Major Classifications of Loans | Major classifications of loans are as follows: December 31, December 31, 2021 2020 Commercial Development $ 21,396 $ 14,090 Real estate 94,830 87,605 Commercial and industrial 18,387 20,758 Residential real estate and consumer One-to-four family owner-occupied 18,158 30,548 One-to-four family investor-owned 26,234 32,638 Multifamily 42,511 29,303 Consumer 3,312 3,016 Subtotal $ 224,828 $ 217,958 Deferred loan fees (294) (424) Allowance for loan losses (2,430) (2,811) Net loans $ 222,104 $ 214,723 |
Summary of the Activity in the Allowance for Loan Losses | A summary of the activity in the allowance for loan losses by portfolio segment is as follows: Residential real estate Year Ended Commercial and consumer Total December 31, 2021 Balance at December 31, 2020 $ 1,834 $ 977 $ 2,811 Provision for loan losses 73 (73) — Loans charged off (393) — (393) Recoveries of loans previously charged off 2 10 12 Total ending allowance balance $ 1,516 $ 914 $ 2,430 December 31, 2020 Balance at December 31, 2019 $ 1,251 $ 1,013 $ 2,264 Provision for loan losses 563 (43) 520 Loans charged off — — — Recoveries of loans previously charged off 20 7 27 Total ending allowance balance $ 1,834 $ 977 $ 2,811 Information about how loans were evaluated for impairment and the related allowance for loan losses follows: Residential Real Estate and December 31, 2021 Commercial Consumer Total Loans: Individually evaluated for impairment $ 112 $ 817 $ 929 Collectively evaluated for impairment 134,501 89,398 223,899 Total loans $ 134,613 $ 90,215 $ 224,828 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 1,516 914 2,430 Total allowance for loan losses $ 1,516 $ 914 $ 2,430 Residential Real Estate and December 31, 2020 Commercial Consumer Total Loans: Individually evaluated for impairment $ 792 $ 1,228 $ 2,020 Collectively evaluated for impairment 121,661 94,277 215,938 Total loans $ 122,453 $ 95,505 $ 217,958 Allowance for loan losses: Individually evaluated for impairment $ 450 $ — $ 450 Collectively evaluated for impairment 1,384 977 2,361 Total allowance for loan losses $ 1,834 $ 977 $ 2,811 |
Impairment and the Related Allowance for Loan Losses | Information regarding impaired loans follows: Principal Recorded Related Average Interest As of December 31, 2021 Balance Investment Allowance Investment Recognized Loans with no related allowance for loan losses: Commercial Real estate 116 112 — 77 — Residential real estate and consumer One-to-four family owner-occupied 819 770 — 831 7 Consumer 47 47 — 49 — Total loans with no related allowance for loan losses 982 929 — 957 7 Total impaired loans $ 982 $ 929 $ — $ 957 $ 7 Principal Recorded Related Average Interest As of December 31, 2020 Balance Investment Allowance Investment Recognized Loans with related allowance for loan losses: Commercial Commercial and industrial $ 713 $ 704 $ 450 $ 713 $ 19 Total loans with related allowance for loan losses 713 704 450 713 19 Loans with no related allowance for loan losses: Commercial Commercial and industrial 108 88 — 109 5 Residential real estate and consumer One-to-four family owner-occupied 1,017 971 — 979 9 One-to-four family investor-owned 242 206 — 242 — Consumer 52 51 — 54 — Total loans with no related allowance for loan losses 1,419 1,316 — 1,384 14 Total impaired loans $ 2,132 $ 2,020 $ 450 $ 2,097 $ 33 |
Information Regarding the Credit Quality Indicators | Information regarding the credit quality indicators most closely monitored for commercial loans by class follows: Special Pass Mention Substandard Doubtful Totals December 31, 2021 Development $ 21,396 $ — $ — $ — $ 21,396 Real estate 93,653 843 334 — 94,830 Commercial and industrial 18,387 — — — 18,387 One-to-four family investor-owned 26,234 — — — 26,234 Multifamily 42,511 — — — 42,511 Totals $ 202,181 $ 843 $ 334 $ — $ 203,358 December 31, 2020 Development $ 14,090 $ — $ — $ — $ 14,090 Real estate 87,605 — — — 87,605 Commercial and industrial 20,046 — 8 704 20,758 One-to-four family investor-owned 32,358 — 280 — 32,638 Multifamily 29,303 — — — 29,303 Totals $ 183,402 $ — $ 288 $ 704 $ 184,394 Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows: Performing Non-performing Totals December 31, 2021 One-to-four family owner-occupied $ 17,986 $ 172 $ 18,158 Consumer 3,312 — 3,312 $ 21,298 $ 172 $ 21,470 December 31, 2020 One-to-four family owner-occupied $ 30,479 $ 69 $ 30,548 Consumer 3,016 — 3,016 $ 33,495 $ 69 $ 33,564 |
Loan Aging Information | Loan aging information follows: Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2021 Commercial Development $ 21,396 $ — $ — $ 21,396 $ — Real estate 94,830 — — 94,830 112 Commercial and industrial 18,387 — — 18,387 — Residential real estate and consumer One-to-four family owner-occupied 18,044 114 — 18,158 172 One-to-four family investor-owned 26,234 — — 26,234 — Multifamily 42,511 — — 42,511 — Consumer 3,312 — — 3,312 — Total $ 224,714 $ 114 $ — $ 224,828 $ 284 Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2020 Commercial Development $ 14,090 $ — $ — $ 14,090 $ — Real estate 87,040 565 — 87,605 — Commercial and industrial 20,054 — 704 20,758 792 Residential real estate and consumer One-to-four family owner-occupied 30,347 201 — 30,548 69 One-to-four family investor-owned 32,638 — — 32,638 206 Multifamily 29,303 — — 29,303 — Consumer 3,016 — — 3,016 — Total $ 216,488 $ 766 $ 704 $ 217,958 $ 1,067 |
Schedule of Non-Accrual Loans | Nonaccrual loans are as follows: As of December 31 2021 2020 Nonaccrual loans, other than troubled debt restructurings $ 15 $ 77 Nonaccrual loans, troubled debt restructurings 269 990 Total nonaccrual loans 284 1,067 Restructured loans, accruing $ 262 $ 425 |
Information Regarding Troubled Debt Restructurings | Post- Number of Pre-Modification Modification Modifications Investment Investment December 31, 2021 Commercial: Real estate 1 $ 112 $ 112 Residential real estate and consumer: One-to-four family owner occupied 2 157 157 Total loan modifications 3 $ 269 $ 269 |
Schedule of Carrying Value of all Purchased Loans | Contractually Required Principal Receivable Carrying Value Non-Credit of As of December 31, 2021 Credit Impaired Impaired Purchased Loans Commercial Development $ — $ 104 $ 103 Real estate — 2,030 2,022 Commercial and industrial — 1,677 1,643 Residential real estate and consumer One-to-four family owner-occupied — 1,702 1,708 One-to-four family investor-owned — 1,136 1,095 Multifamily — 67 68 Consumer — 43 40 Totals $ — $ 6,759 $ 6,679 Contractually Required Principal Receivable Carrying Value Non-Credit of As of December 31, 2020 Credit Impaired Impaired Purchased Loans Commercial Development $ — $ 118 $ 113 Real estate — 5,665 5,532 Commercial and industrial — 3,471 3,368 Residential real estate and consumer One-to-four family owner-occupied — 5,218 5,206 One-to-four family investor-owned — 6,447 6,294 Multifamily — — — Consumer — 76 63 Totals $ — $ 20,995 $ 20,576 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Summary of Premises and Equipment | Premises and equipment are stated at cost less accumulated depreciation and are summarized as follows: December 31, 2021 2020 Land $ 844 $ 844 Buildings 5,562 5,562 Leasehold improvements 205 191 Furniture and equipment 1,478 1,394 Automobile 66 44 In-progress improvements 87 — Totals 8,242 8,035 Less: Accumulated depreciation 2,736 2,441 Premises and equipment, net $ 5,506 $ 5,594 |
Schedule of Future Minimum Rental Payments for Operating Leases | Rent commitments, before considering renewal options that are present, are as follows as of December 31, 2021: 2022 $ 197 2023 169 2024 150 2025 152 2026 155 2027 117 Total $ 940 |
Schedule of Future Minimum Rental Payments Receivable | The Company also entered into a lease with a tenant for a portion of the Brookfield branch, commencing June 1, 2018 through May 31, 2024. As of December 31, 2021, minimum future rents receivable are as follows: 2022 $ 103 2023 106 2024 44 Total $ 253 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Composition of deposits | December 31, December 31, 2021 2020 Non interest-bearing checking $ 54,243 $ 51,802 Interest-bearing checking 12,864 10,899 Money market 87,585 70,455 Statement savings accounts 33,968 31,977 Health savings accounts 10,608 10,854 Certificates of deposit 55,982 50,511 Total $ 255,250 $ 226,498 |
Scheduled Maturities of Certificates of Deposit | 2022 $ 43,879 2023 9,861 2024 1,448 2025 323 2026 471 Total $ 55,982 |
FHLB Advances (Tables)
FHLB Advances (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FHLB Advances [Abstract] | |
Schedule of Federal Home Loan Bank, Advances | FHLB advances consist of the following as of December 31: December 31, 2021 December 31, 2020 Rates Amount Rates Amount Fixed rate, fixed term advances 0.0%-1.71% $ 6,500 0.0%-1.71% $ 5,500 Fixed term advances with floating spread N/A — 2.10% 2,000 $ 6,500 $ 7,500 |
Maturities of Federal Home Loan Bank Advances | The following is a summary of scheduled maturities of fixed term FHLB advances as of December 31, 2021: Fixed Rate Advances Adjustable Rate Advances Weighted Weighted Total Average Rate Amount Average Rate Amount Amount 2022 0.39 % $ 6,500 — — $ 6,500 Total 0.39 % $ 6,500 — % $ — $ 6,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes included in the accompanying financial statements consists of the following components: Years ended December 31, 2021 2020 Current Taxes (Benefit) Federal $ 309 $ 535 State 163 229 Total Current Taxes 472 764 Deferred Income Taxes (Benefit) Federal 136 (150) State 38 (48) Total Deferred Income Taxes 174 (198) Total Provision for Income Taxes $ 646 $ 566 |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax asset in the accompanying balance sheet includes the following amounts of deferred tax assets and liabilities: As of December 31, 2021 2020 Deferred Tax Assets Allowance for loan losses $ 668 $ 765 Deferred compensation 116 124 Non-accrual interest 3 20 Purchase accounting 3 7 Equity compensation 78 40 Deferred loan fees 78 112 Charitable contribution carryforward — 60 Other 38 — Deferred Tax Assets $ 984 $ 1,128 Deferred Tax Liabilities Depreciation and amortization (30) (23) FHLB stock (23) (25) Unrealized gain on available for sale securities (285) (581) Other (29) (4) Deferred Tax Liabilities $ (367) $ (633) Net Deferred Tax Asset $ 617 $ 495 |
Schedule of Effective Income Tax Rate Reconciliation | A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes follows: Years ended December 31, 2021 2020 % of Pretax % of Pretax Amount Income Amount Income Reconciliation of statutory to effective rates Federal income taxes at statutory rate $ 552 21.0 % $ 503 21.0 % Adjustments for Tax exempt interest on municipal obligations (36) (1.4) % (26) (1.1) % State income taxes, net of federal income tax benefit 157 6.0 % 146 6.1 % Increase in CSV of life insurance (54) (2.1) % (43) (1.8) % Equity Compensation 12 0.5 % 14 0.6 % Other 15 0.6 % (28) (1.2) % Provision for income taxes $ 646 24.6 % $ 566 23.6 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Schedule of Loss Contingencies by Contingency | Notional Amount 2021 2020 Unused lines of credit Fixed 19,197 14,902 Variable 6,732 3,770 Undisbursed portion of loan proceeds 453 2,194 Standby letters of credit, variable 1,003 993 |
Related-party Transactions (Tab
Related-party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related-party Transactions | |
Schedule of Related Party Transactions | A summary of loans to directors, executive officers, and their affiliates follows: Years ended December 31, 2021 2020 Beginning balance $ 10,113 $ 3,615 Adjustments for changes in directors and executive officers — 45 New loans 501 6,462 Repayments (972) (9) Ending balance $ 9,642 $ 10,113 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value | |
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: Recurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 1,040 $ — $ 1,040 Obligations of states and political subdivisions — 14,624 — 14,624 Mortgage-backed securities — 26,056 — 26,056 Certificates of deposit — 772 — 772 Corporate debt securities — 5,906 — 5,906 Total available for sale securities $ — $ 48,398 $ — $ 48,398 As of December 31, 2020 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 754 $ — $ 754 Obligations of states and political subdivisions — 15,605 — 15,605 Mortgage-backed securities — 37,680 — 37,680 Certificates of deposit — 7,937 — 7,937 Corporate debt securities — 2,267 — 2,267 Total available for sale securities $ — $ 64,243 $ — $ 64,243 |
Assets Measured at Fair Value on Nonrecurring Basis | Information regarding assets measured at fair value on a nonrecurring basis follows: Nonrecurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Assets Identical Observable Unobservable Measured at Instruments Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) As of December 31, 2021 Assets: Other equity investments $ 503 $ — $ 503 $ — As of December 31, 2020 Assets: Loans $ 254 $ — $ — $ 254 Foreclosed assets 125 — — 125 Other equity investments 225 — 225 — |
Fair Value Measurement Inputs and Valuation Techniques | The following presents quantitative information about nonrecurring Level 3 fair value measurements: Range/Weighted Fair Value Valuation Technique Unobservable Input(s) Average As of December 31, 2021 Loans $ 0 Market and/or income approach Management discount on appraised values 10 % - 20 % Foreclosed assets $ 0 Market and/or income approach Management discount on appraised values 10 % - 20 % As of December 31, 2020 Loans $ 254 Market and/or income approach Management discount on appraised values 10 % - 20 % Foreclosed assets $ 125 Market and/or income approach Management discount on appraised values 10 % - 20 % |
Carrying Value and Estimated Fair Value of Financial Instruments | The carrying value and estimated fair value of financial instruments as of December 31, 2021 and 2020 follow: December 31, 2021 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 67,002 $ 67,002 $ — $ — Available for sale securities 48,398 — 48,398 — Loans held for sale 500 — 500 — Loans 222,104 — — 224,612 Accrued interest receivable 813 813 — — Cash value of life insurance 10,029 10,029 — — Other equity investments 1,353 — 503 850 Financial liabilities: Deposits 255,250 199,238 — 55,970 Advance payments by borrowers for taxes and insurance 102 102 — — FHLB advances 6,500 — — 6,489 Accrued interest payable 7 7 — — December 31, 2020 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 41,479 $ 41,479 $ — $ — Available for sale securities 64,243 — 64,243 — Loans held for sale 1,708 — 1,708 — Loans 214,723 — — 217,893 Accrued interest receivable 995 995 — — Cash value of life insurance 7,272 7,272 — — Other equity investments 1,279 — 225 1,054 Financial liabilities: Deposits 226,498 175,987 — 50,732 Advance payments by borrowers for taxes and insurance 127 127 — — FHLB advances 7,500 — — 7,544 Accrued interest payable 17 17 — — |
Equity and Regulatory Matters (
Equity and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity and Regulatory Matters | |
Bank's Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following tables: To Be Well Capitalized Under Prompt For Capital Adequacy Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Common Equity Tier 1 capital (to risk‑weighted assets) $ 75,554 29.6 % $ ≥ 11,467 ≥ 4.5 % $ ≥ 16,564 ≥ 6.5 % Tier 1 capital (to risk‑weighted assets) 75,554 29.6 ≥ 15,290 ≥ 6.0 ≥ 20,386 ≥ 8.0 Total capital (to risk‑weighted assets) 77,984 30.6 ≥ 20,386 ≥ 8.0 ≥ 25,483 ≥ 10.0 Tier 1 capital (to average assets) 75,554 21.4 ≥ 14,137 ≥ 4.0 ≥ 17,671 ≥ 5.0 December 31, 2020 Common Equity Tier 1 capital (to risk‑weighted assets) $ 73,665 33.1 % $ ≥ 10,018 ≥ 4.5 % $ ≥ 14,471 ≥ 6.5 % Tier 1 capital (to risk‑weighted assets) 73,665 33.1 ≥ 13,358 ≥ 6.0 ≥ 17,810 ≥ 8.0 Total capital (to risk‑weighted assets) 76,448 34.3 ≥ 17,810 ≥ 8.0 ≥ 22,263 ≥ 10.0 Tier 1 capital (to average assets) 73,665 25.2 ≥ 11,700 ≥ 4.0 ≥ 14,625 ≥ 5.0 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets | |
Projections of Amortization Expense of Intangible Assets | The following table shows the estimated future amortization of the core deposit premium intangible asset for the next five years. The projections of amortization expense are based on existing asset balances: As of December 31, 2021 2022 95 2023 82 2024 60 2025 40 2026 26 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan (ESOP) Disclosures | December 31, 2021 December 31, 2020 Shares allocated to active participants 62,305 33,861 Shares committed to be released and allocated to participants 30,584 30,584 Shares distributed — (2,140) Total unallocated shares 550,509 581,093 Total ESOP shares 643,398 643,398 Fair value of unallocated shares (based on $11.80 and $10.02 share price at December 31, 2021 and December 31, 2020, respectively) $ 6,496 $ 5,823 |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Plans | |
Impact of the Company's Share-Based Payment Plans in the Financial Statements | The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the period shown: Year Ended December 31, 2021 2020 Total cost of stock grant plan during the year $ 227 $ 177 Total cost of stock option plan during the year 152 139 Total cost of share-based payment plans during the year $ 379 $ 316 Amount of related income tax benefit recognized in income $ 94 $ 85 |
Summary of Stock Options Activity | The following table summarizes stock options activity for the years ended December 31, 2021 and 2020: Outstanding Weighted Weighted Average Average Remaining Aggregate Stock Option Exercise Contractual Intrinsic Awards Price Term (years) Value Options outstanding as of December 31, 2020 269,220 $ 10.51 Granted 76,000 11.27 Exercised (6,942) 10.14 Expired or cancelled (2,346) 10.64 Forfeited (19,057) 10.01 Options outstanding as of December 31, 2021 316,875 $ 10.73 7.51 $ 342,758 Options exercisable as of December 31, 2021 126,520 $ 10.72 7.05 $ 137,049 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term (in Value (in Options Price years) thousands) Options outstanding as of December 31, 2019 260,510 $ 10.79 Granted 46,716 9.10 Exercised — — Expired or canceled — — Forfeited (38,006) 10.73 Options outstanding as of December 31, 2020 269,220 $ 10.51 8.26 $ — Options exercisable as of December 31, 2020 81,959 $ 10.81 7.98 $ — |
Schedule of Nonvested Options Activity | Weighted Average Number of Grant Date Fair Options Value Nonvested options outstanding as of December 31, 2020 187,256 3.06 Granted 76,000 3.29 Vested (53,844) 3.16 Forfeited (19,057) 2.69 Options outstanding as of December 31, 2021 190,355 $ 3.16 |
Valuation Assumptions were Used for Options Granted | The following assumptions were used for options granted during the years ended December 31: 2021 2020 Risk-free interest rate 1.26 % 0.52 % Expected volatility 23.86 % 22.91 % Expected dividend yield 0 % 0 % Expected life of options (years) 7.5 7.5 Weighted average fair value per option of options granted during the year $ 3.29 $ 2.38 |
Summary of Changes in Restricted Shares | The following is a summary of changes in restricted shares for the years ended December 31, 2021 and 2020: Weighted Average Number of Grant Date Fair Shares Value Nonvested stock awards as of December 31, 2020 62,067 $ 10.73 Granted 22,750 11.35 Vested (19,561) 10.77 Forfeited (5,519) 10.08 Nonvested stock awards as of December 31, 2021 59,737 $ 11.02 Nonvested stock awards as of December 31, 2019 90,790 $ 10.79 Granted 2,500 9.10 Vested (19,064) 10.81 Forfeited (12,159) 10.73 Nonvested stock awards as of December 31, 2020 62,067 $ 10.73 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination | |
Summary of Assets Acquired and Liabilities Assumed Recognized | As Recorded Fair Value and Other As Recorded by Mitchell Bank Merger Related Adjustments by the Company Consideration Paid Cash $ 4,978 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and due from banks $ 38,266 $ - $ 38,266 Securities 7,133 16 7,149 Other equity securities 51 177 228 Loans, net of allowance 14,512 (217) 14,295 Premises and equipment 529 499 1,028 Core deposit intangibles - 369 369 Accrued interest receivable 83 - 83 Foreclosed assets 185 (60) 125 Deferred tax asset 228 (228) - Other assets 209 (88) 121 Total assets acquired $ 61,196 $ 468 $ 61,664 Deposits $ 56,641 $ - $ 56,641 Other liabilities 38 - 38 Total liabilities assumed $ 56,679 $ - $ 56,679 Total identifiable assets $ 4,517 $ 468 $ 4,985 Bargain purchase gain resulting from acquisition $ (7) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 16, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Common stock, outstanding (in shares) | 6,734,970 | 7,695,214 | |
Stock issued during period, shares | 4,268,570 | ||
Issuance of common stock, net of issuance costs | $ 41,500 | ||
Purchase of ESOP shares (in shares) | 341,485 | ||
Sale of stock, price per share | $ 10 | ||
Provision for income taxes | $ 646 | $ 566 | |
Direct costs of the conversion and public offering | 1,152 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 0 | ||
Customer deposits | 255,250 | 226,498 | |
Loans acquired | $ 222,104 | $ 214,723 | |
Before Conversion [Member] | |||
Common stock, outstanding (in shares) | 6,566,478 | ||
Owned by Public [Member] | |||
Common stock, outstanding (in shares) | 2,929,603 | ||
Percentage of common stock outstanding to eligible Members | 44.60% | ||
FFBW Community Foundation [Member] | |||
Common stock, outstanding (in shares) | 25,000 | ||
FFBW, MHC [Member] | |||
Common stock, outstanding (in shares) | 3,636,875 | ||
Stock issued during period, shares | 3,436,430 | ||
Percentage of shares held by Mutual Holding Company | 55.40% |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share | ||
Net income | $ 1,983 | $ 1,831 |
Weighted average shares outstanding (in shares) | 7,015,476 | 7,614,517 |
Weighted average unallocated Employee Stock Ownership Plan Shares (in shares) | (565,865) | (596,453) |
Basic weighted average shares outstanding (in shares) | 6,449,611 | 7,018,064 |
Dilutive potential common shares (in shares) | 2,551 | 223 |
Diluted weighted average shares outstanding (in shares) | 6,452,162 | 7,018,287 |
Basic earnings per share (in dollars per share) | $ 0.31 | $ 0.26 |
Diluted earnings per share (in dollars per share) | $ 0.31 | $ 0.26 |
Cash and Due from Banks (Narrat
Cash and Due from Banks (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Due from Banks | ||
Percentage of required reserve balance with Federal Reserve Bank. | 0.00% | |
Amount of required reserve balance with Federal Reserve Bank | $ 0 | $ 0 |
Available for Sale Securities_2
Available for Sale Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Available for Sale Securities | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 4 | 4 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 23 | 13 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | $ | $ 0 | $ 0 |
Security Owned and Pledged as Collateral, Fair Value, Total | $ | $ 989 | $ 1,038 |
Available for Sale Securities_3
Available for Sale Securities (Amortized Cost and Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 47,340 | $ 62,135 |
Gross unrealized gains | 1,186 | 2,159 |
Gross unrealized losses | (128) | (51) |
Estimated fair value | 48,398 | 64,243 |
Obligations of the US Government and US Government Sponsored Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 1,028 | 717 |
Gross unrealized gains | 19 | 37 |
Gross unrealized losses | (7) | 0 |
Estimated fair value | 1,040 | 754 |
Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 14,289 | 15,012 |
Gross unrealized gains | 376 | 612 |
Gross unrealized losses | (41) | (19) |
Estimated fair value | 14,624 | 15,605 |
Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 25,452 | 36,347 |
Gross unrealized gains | 658 | 1,361 |
Gross unrealized losses | (54) | (28) |
Estimated fair value | 26,056 | 37,680 |
Certificates of Deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 750 | 7,880 |
Gross unrealized gains | 22 | 57 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 772 | 7,937 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 5,821 | 2,179 |
Gross unrealized gains | 111 | 92 |
Gross unrealized losses | (26) | (4) |
Estimated fair value | $ 5,906 | $ 2,267 |
Available for Sale Securities_4
Available for Sale Securities (Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 10,616 | $ 6,532 |
Less Than 12 Months Unrealized Losses | (67) | (44) |
12 Months or More Fair Value | 2,818 | 736 |
12 Months or More Unrealized Losses | (61) | (7) |
Total Fair Value | 13,434 | 7,268 |
Total Unrealized Losses | (128) | (51) |
Obligations of the US Government and US Government Sponsored Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 497 | |
Less Than 12 Months Unrealized Losses | (7) | |
12 Months or More Fair Value | 0 | |
12 Months or More Unrealized Losses | 0 | |
Total Fair Value | 497 | |
Total Unrealized Losses | (7) | |
Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 3,129 | 1,543 |
Less Than 12 Months Unrealized Losses | (10) | (19) |
12 Months or More Fair Value | 937 | |
12 Months or More Unrealized Losses | (31) | |
Total Fair Value | 4,066 | 1,543 |
Total Unrealized Losses | (41) | (19) |
Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 4,116 | 4,140 |
Less Than 12 Months Unrealized Losses | (24) | (21) |
12 Months or More Fair Value | 1,881 | 736 |
12 Months or More Unrealized Losses | (30) | (7) |
Total Fair Value | 5,997 | 4,876 |
Total Unrealized Losses | (54) | (28) |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 2,874 | 849 |
Less Than 12 Months Unrealized Losses | (26) | (4) |
Total Fair Value | 2,874 | 849 |
Total Unrealized Losses | $ (26) | $ (4) |
Available for Sale Securities_5
Available for Sale Securities (Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, amortized cost | $ 250 | |
Due in one year or less, fair value | 252 | |
Due after one year through 5 years, amortized cost | 6,305 | |
Due after one year through 5 years, fair value | 6,424 | |
Due after 5 years through 10 years, amortized cost | 10,589 | |
Due after 5 years through 10 years, fair value | 10,820 | |
Due after 10 years, amortized cost | 4,744 | |
Due after 10 years, fair value | 4,846 | |
Subtotal, amortized cost | 21,888 | |
Subtotal, fair value | 22,342 | |
Amortized cost | 47,340 | $ 62,135 |
Estimated fair value | 48,398 | 64,243 |
Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 25,452 | 36,347 |
Estimated fair value | $ 26,056 | $ 37,680 |
Available for Sale Securities_6
Available for Sale Securities (Proceeds from Sales of Available for Sale Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Available for Sale Securities | ||
Proceeds from sale of securities | $ 3 | $ 1,034 |
Gross realized gains on sale of securities | 0 | 17 |
Gross realized losses on sale of securities | $ 0 | $ (2) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
Deposit Liabilities Reclassified as Loans Receivable | $ 23,000 | $ 5,000 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Financing Receivable Modifications Specific Reserves | $ 0 | $ 450,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | item | 0 | 0 |
Loans on modified status | $ 269,000 | |
Loans granted | 224,828,000 | $ 217,958,000 |
Funds committed to impaired loans | $ 0 | 215,000 |
Number of modifications | 3 | |
Loans acquired | $ 222,104,000 | 214,723,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 6,679,000 | 20,576,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 80,000 | 419,000 |
Accretion | 339,000 | 64,000 |
Credit Impaired [Member] | ||
Loans classified as purchased credit impaired | 0 | 0 |
Paycheck Protection Program Loan [Member] | ||
Loans granted | 262,000,000,000 | 7,600,000 |
Residential Real Estate and Consumer [Member] | ||
Loans granted | 90,215,000 | 95,505,000 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Loans granted | 26,234,000 | 32,638,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 1,095,000 | 6,294,000 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Loans on modified status | 157,000 | |
Loans granted | $ 18,158,000 | 30,548,000 |
Number of modifications | 2 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | $ 1,708,000 | 5,206,000 |
Commercial Portfolio Segment [Member] | ||
Loans on modified status | 112,000 | |
Loans granted | $ 134,613,000 | 122,453,000 |
Number of modifications | 1 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans granted | $ 18,387,000 | 20,758,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 1,643,000 | 3,368,000 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans granted | 94,830,000 | 87,605,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | $ 2,022,000 | $ 5,532,000 |
Loans (Major Classifications of
Loans (Major Classifications of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subtotal loans | $ 224,828 | $ 217,958 | |
Deferred loan fees | (294) | (424) | |
Allowance for loan losses | (2,430) | (2,811) | $ (2,264) |
Net loans | 222,104 | 214,723 | |
Commercial Portfolio Segment [Member] | |||
Subtotal loans | 134,613 | 122,453 | |
Allowance for loan losses | (1,516) | (1,834) | (1,251) |
Commercial Portfolio Segment [Member] | Development [Member] | |||
Subtotal loans | 21,396 | 14,090 | |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | |||
Subtotal loans | 94,830 | 87,605 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Subtotal loans | 18,387 | 20,758 | |
Residential Real Estate and Consumer [Member] | |||
Subtotal loans | 90,215 | 95,505 | |
Allowance for loan losses | (914) | (977) | $ (1,013) |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | |||
Subtotal loans | 18,158 | 30,548 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | |||
Subtotal loans | 26,234 | 32,638 | |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | |||
Subtotal loans | 42,511 | 29,303 | |
Residential Real Estate and Consumer [Member] | Consumer [Member] | |||
Subtotal loans | $ 3,312 | $ 3,016 |
Loans (Allowance for Loan Losse
Loans (Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Beginning balance | $ 2,811 | $ 2,264 |
Provision for loan losses | 0 | 520 |
Loans charged off | (393) | 0 |
Recoveries of loans previously charged off | 12 | 27 |
Total ending allowance balance | 2,430 | 2,811 |
Loans, individually evaluated for impairment | 929 | 2,020 |
Loans, collectively evaluated for impairment | 223,899 | 215,938 |
Total loans | 224,828 | 217,958 |
Allowance for loan losses, individually evaluated for impairment | 0 | 450 |
Allowance for loan losses, collectively evaluated for impairment | 2,430 | 2,361 |
Total allowance for loan losses | 2,430 | 2,811 |
Commercial Portfolio Segment [Member] | ||
Beginning balance | 1,834 | 1,251 |
Provision for loan losses | 73 | 563 |
Loans charged off | (393) | 0 |
Recoveries of loans previously charged off | 2 | 20 |
Total ending allowance balance | 1,516 | 1,834 |
Loans, individually evaluated for impairment | 112 | 792 |
Loans, collectively evaluated for impairment | 134,501 | 121,661 |
Total loans | 134,613 | 122,453 |
Allowance for loan losses, individually evaluated for impairment | 0 | 450 |
Allowance for loan losses, collectively evaluated for impairment | 1,516 | 1,384 |
Total allowance for loan losses | 1,516 | 1,834 |
Residential Real Estate and Consumer [Member] | ||
Beginning balance | 977 | 1,013 |
Provision for loan losses | (73) | (43) |
Loans charged off | 0 | 0 |
Recoveries of loans previously charged off | 10 | 7 |
Total ending allowance balance | 914 | 977 |
Loans, individually evaluated for impairment | 817 | 1,228 |
Loans, collectively evaluated for impairment | 89,398 | 94,277 |
Total loans | 90,215 | 95,505 |
Allowance for loan losses, individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, collectively evaluated for impairment | 914 | 977 |
Total allowance for loan losses | $ 914 | $ 977 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Principal balance with related allowance | $ 713 | |
Recorded investment with related allowance | 704 | |
Related allowance | $ 0 | 450 |
Average investment with related allowance | 713 | |
Interest recognized with related allowance | 19 | |
Principal balance with no related allowance | 982 | 1,419 |
Recorded investment with no related allowance | 929 | 1,316 |
Average investment with no related allowance | 957 | 1,384 |
Interest recognized with no related allowance | 7 | 14 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 982 | 2,132 |
Impaired Financing Receivable, Recorded Investment, Total | 929 | 2,020 |
Impaired Financing Receivable, Average Recorded Investment, Total | 957 | 2,097 |
Impaired Financing Receivable, Interest Income, Accrual Method, Total | 7 | 33 |
Commercial and Industrial [Member] | Commercial Portfolio Segment [Member] | ||
Principal balance with related allowance | 713 | |
Recorded investment with related allowance | 704 | |
Related allowance | 450 | |
Average investment with related allowance | 713 | |
Interest recognized with related allowance | 19 | |
Principal balance with no related allowance | 108 | |
Recorded investment with no related allowance | 88 | |
Average investment with no related allowance | 109 | |
Interest recognized with no related allowance | 5 | |
One-to-Four Family Owner-occupied [Member] | Residential Real Estate and Consumer [Member] | ||
Related allowance | 0 | |
Principal balance with no related allowance | 819 | 1,017 |
Recorded investment with no related allowance | 770 | 971 |
Average investment with no related allowance | 831 | 979 |
Interest recognized with no related allowance | 7 | 9 |
One-to-Four Family Investor-owned [Member] | Residential Real Estate and Consumer [Member] | ||
Principal balance with no related allowance | 242 | |
Recorded investment with no related allowance | 206 | |
Average investment with no related allowance | 242 | |
Interest recognized with no related allowance | 0 | |
Consumer [Member] | Residential Real Estate and Consumer [Member] | ||
Related allowance | 0 | |
Principal balance with no related allowance | 47 | 52 |
Recorded investment with no related allowance | 47 | 51 |
Average investment with no related allowance | 49 | 54 |
Interest recognized with no related allowance | 0 | $ 0 |
Real Estate Loan [Member] | Commercial Portfolio Segment [Member] | ||
Related allowance | 0 | |
Principal balance with no related allowance | 116 | |
Recorded investment with no related allowance | 112 | |
Average investment with no related allowance | 77 | |
Interest recognized with no related allowance | $ 0 |
Loans (Credit Quality Indicator
Loans (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total loans for credit quality indicators monitored for commercial loans | $ 203,358 | $ 184,394 |
Pass [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 202,181 | 183,402 |
Special Mention [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 843 | 0 |
Substandard [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 334 | 288 |
Doubtful [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 704 |
Commercial Portfolio Segment [Member] | Development [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 21,396 | 14,090 |
Commercial Portfolio Segment [Member] | Development [Member] | Pass [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 21,396 | 14,090 |
Commercial Portfolio Segment [Member] | Development [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Development [Member] | Substandard [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Development [Member] | Doubtful [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 94,830 | 87,605 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Pass [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 93,653 | 87,605 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 843 | 0 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Substandard [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 334 | 0 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Doubtful [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 18,387 | 20,758 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 18,387 | 20,046 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 8 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Doubtful [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 704 |
Residential Real Estate and Consumer [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 21,470 | 33,564 |
Residential Real Estate and Consumer [Member] | Performing Financial Instruments [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 21,298 | 33,495 |
Residential Real Estate and Consumer [Member] | Nonperforming Financial Instruments [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 172 | 69 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 18,158 | 30,548 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Performing Financial Instruments [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 17,986 | 30,479 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Nonperforming Financial Instruments [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 172 | 69 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 26,234 | 32,638 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Pass [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 26,234 | 32,358 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Substandard [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 280 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Doubtful [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 42,511 | 29,303 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Pass [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 42,511 | 29,303 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Substandard [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Doubtful [Member] | ||
Total loans for credit quality indicators monitored for commercial loans | 0 | 0 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 3,312 | 3,016 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Performing Financial Instruments [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | 3,312 | 3,016 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Nonperforming Financial Instruments [Member] | ||
Total loans for credit quality indicators monitored for residential real estate and consumer loans | $ 0 | $ 0 |
Loans (Loans Aging Information)
Loans (Loans Aging Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Nonaccrual loans | $ 284 | $ 1,067 |
Current Loans [Member] | ||
Total loans | 224,714 | 216,488 |
Loans Past Due 30-89 Days [Member] | ||
Total loans | 114 | 766 |
Loans Past Due 90 Plus Days [Member] | ||
Total loans | 0 | 704 |
Commercial Portfolio Segment [Member] | Development [Member] | ||
Nonaccrual loans | 0 | |
Commercial Portfolio Segment [Member] | Development [Member] | Current Loans [Member] | ||
Total loans | 21,396 | 14,090 |
Commercial Portfolio Segment [Member] | Development [Member] | Loans Past Due 30-89 Days [Member] | ||
Total loans | 0 | |
Commercial Portfolio Segment [Member] | Development [Member] | Loans Past Due 90 Plus Days [Member] | ||
Total loans | 0 | |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Nonaccrual loans | 112 | |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Current Loans [Member] | ||
Total loans | 94,830 | 87,040 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Loans Past Due 30-89 Days [Member] | ||
Total loans | 0 | 565 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Loans Past Due 90 Plus Days [Member] | ||
Total loans | 0 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Nonaccrual loans | 0 | 792 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Current Loans [Member] | ||
Total loans | 18,387 | 20,054 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Loans Past Due 30-89 Days [Member] | ||
Total loans | 0 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Loans Past Due 90 Plus Days [Member] | ||
Total loans | 0 | 704 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Nonaccrual loans | 172 | 69 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Current Loans [Member] | ||
Total loans | 18,044 | 30,347 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Loans Past Due 30-89 Days [Member] | ||
Total loans | 114 | 201 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Loans Past Due 90 Plus Days [Member] | ||
Total loans | 0 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Nonaccrual loans | 0 | 206 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Current Loans [Member] | ||
Total loans | 26,234 | 32,638 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Loans Past Due 30-89 Days [Member] | ||
Total loans | 0 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Loans Past Due 90 Plus Days [Member] | ||
Total loans | 0 | |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | ||
Nonaccrual loans | 0 | |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Current Loans [Member] | ||
Total loans | 42,511 | 29,303 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Loans Past Due 30-89 Days [Member] | ||
Total loans | 0 | |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Loans Past Due 90 Plus Days [Member] | ||
Total loans | 0 | |
Residential Real Estate and Consumer [Member] | Consumer [Member] | ||
Nonaccrual loans | 0 | |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Current Loans [Member] | ||
Total loans | 3,312 | $ 3,016 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Loans Past Due 30-89 Days [Member] | ||
Total loans | 0 | |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Loans Past Due 90 Plus Days [Member] | ||
Total loans | $ 0 |
Loans (Nonaccrual Loans) (Detai
Loans (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total nonaccrual loans | $ 284 | $ 1,067 |
Nonaccrual loans, Other Than Troubled Debt Restructurings [Member] | ||
Total nonaccrual loans | 15 | 77 |
Nonaccrual Loans, Troubled Debt Restructurings [Member] | ||
Total nonaccrual loans | 269 | 990 |
Accruing Loans, Troubled Debt Restructurings [Member] | ||
Restructured loans, accruing | $ 262 | $ 425 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructuring) (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Number of modifications | 3 |
Pre-Modification Investment | $ 269,000 |
Post- Modification Investment | 269,000 |
Coronavirus Aid, Relief and Economic Security Act | |
Post- Modification Investment | $ 183,000 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | |
Number of modifications | 2 |
Pre-Modification Investment | $ 157,000 |
Post- Modification Investment | $ 157,000 |
Commercial Portfolio Segment [Member] | |
Number of modifications | 1 |
Pre-Modification Investment | $ 112,000 |
Post- Modification Investment | $ 112,000 |
Loans (Purchased Loans) (Detail
Loans (Purchased Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value of Purchased Loans | $ 6,679 | $ 20,576 |
Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 6,759 | 20,995 |
Commercial Portfolio Segment [Member] | Development [Member] | ||
Carrying Value of Purchased Loans | 103 | 113 |
Commercial Portfolio Segment [Member] | Development [Member] | Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Development [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 104 | 118 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Carrying Value of Purchased Loans | 2,022 | 5,532 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 2,030 | 5,665 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Carrying Value of Purchased Loans | 1,643 | 3,368 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 1,677 | 3,471 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Carrying Value of Purchased Loans | 1,708 | 5,206 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 1,702 | 5,218 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Carrying Value of Purchased Loans | 1,095 | 6,294 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 1,136 | 6,447 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | ||
Carrying Value of Purchased Loans | 68 | 0 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 67 | 0 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | ||
Carrying Value of Purchased Loans | 40 | 63 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | $ 43 | $ 76 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2017building | |
Premises and Equipment | |||
Depreciation | $ 293 | $ 298 | |
Number of buildings sold and leased back | building | 2 | ||
Sale lease back transaction, lease term of contract | 10 years | ||
Sale lease back transaction, lease renewal term | 5 years | ||
Sale leaseback transaction, rent expense | $ 216 | $ 181 |
Premises and Equipment (Premise
Premises and Equipment (Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Premises and equipment, gross | $ 8,242 | $ 8,035 |
Less: Accumulated depreciation | 2,736 | 2,441 |
Premises and equipment, net | 5,506 | 5,594 |
Land [Member] | ||
Premises and equipment, gross | 844 | 844 |
Building [Member] | ||
Premises and equipment, gross | 5,562 | 5,562 |
Leasehold Improvements [Member] | ||
Premises and equipment, gross | 205 | 191 |
Furniture and Fixtures [Member] | ||
Premises and equipment, gross | 1,478 | 1,394 |
Automobiles [Member] | ||
Premises and equipment, gross | 66 | 44 |
In-progress improvements [Member] | ||
Premises and equipment, gross | $ 87 | $ 0 |
Premises and Equipment (Rent Co
Premises and Equipment (Rent Commitments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Premises and Equipment | |
2022 | $ 197 |
2023 | 169 |
2024 | 150 |
2025 | 152 |
2026 | 155 |
2027 | 117 |
Total | $ 940 |
Premises and Equipment (Minimum
Premises and Equipment (Minimum Future Rents Receivable) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Premises and Equipment | |
2022 | $ 103 |
2023 | 106 |
2024 | 44 |
Total | $ 253 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits | ||
Time deposits, at or above FDIC insurance limit | $ 10,845 | $ 9,485 |
Deposits (Composition of Deposi
Deposits (Composition of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits | ||
Non-interest bearing checking | $ 54,243 | $ 51,802 |
Interest bearing checking | 12,864 | 10,899 |
Money market | 87,585 | 70,455 |
Statement savings accounts | 33,968 | 31,977 |
Health savings accounts | 10,608 | 10,854 |
Certificates of deposit | 55,982 | 50,511 |
Total | $ 255,250 | $ 226,498 |
Deposits (Maturities of Certifi
Deposits (Maturities of Certificates of Deposit) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Deposits | |
2022 | $ 43,879 |
2023 | 9,861 |
2024 | 1,448 |
2025 | 323 |
2026 | 471 |
Total | $ 55,982 |
FHLB Advances (Narrative) (Deta
FHLB Advances (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
FHLB Advances [Abstract] | ||
FHLB advances, general debt obligations, Disclosures, Collateral Pledged | $ 154,649 | $ 149,308 |
Amount secured by FHLB stock | 851 | $ 851 |
FHLB advances, general debt obligations, amount of available unused funds | 16,014 | |
Federal funds line of credit not withdrawn | $ 7,000 |
FHLB Advances (FHLB Advances) (
FHLB Advances (FHLB Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed rate, fixed term advances, amount | $ 6,500 | $ 5,500 |
Fixed term advances with floating spread, amount | 0 | 2,000 |
Total FHLB advances | $ 6,500 | $ 7,500 |
Minimum [Member] | ||
Fixed Rate Advances, Weighted Average Rate | 0.00% | 0.00% |
Fixed term advances with floating spread rate | 2.10% | |
Maximum [Member] | ||
Fixed Rate Advances, Weighted Average Rate | 1.71% | 1.71% |
FHLB Advances (Summary of Sched
FHLB Advances (Summary of Scheduled Maturities of Fixed Term FHLB Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed Rate Advances, Amount, 2022 | $ 6,500 | |
Fixed Rate Advances, Amount, Total | 6,500 | $ 5,500 |
Adjustable Rate Advances, Amount, 2022 | 0 | |
Adjustable Rate Advances, Amount, Total | 0 | 2,000 |
FHLB Advances, Total Amount, 2022 | 6,500 | |
Total FHLB advances | $ 6,500 | $ 7,500 |
Weighted Average [Member] | ||
Fixed Rate Advances, Weighted Average Rate, 2022 | 0.39% | |
Fixed Rate Advances, Weighted Average Rate | 0.39% | |
Adjustable Rate Advances, Weighted Average Rate, 2022 | 0.00% | |
Adjustable Rate Advances, Weighted Average Rate | 0.00% |
401(k) Plan (Narrative) (Detail
401(k) Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
401(K) Plan | ||
Defined contribution plan, employer matching contribution percentage | 100.00% | |
Defined contribution plan, maximum annual contributions per employee, percent | 4.00% | |
Defined contribution plan, cost | $ 216 | $ 149 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Federal | $ 309 | $ 535 |
State | 163 | 229 |
Total Current Taxes | 472 | 764 |
Federal | 136 | (150) |
State | 38 | (48) |
Total Deferred Income Taxes | 174 | (198) |
Total Provision for Income Taxes | $ 646 | $ 566 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes | ||
Allowance for loan losses | $ 668 | $ 765 |
Deferred compensation | 116 | 124 |
Non-accrual interest | 3 | 20 |
Purchase accounting | 3 | 7 |
Equity compensation | 78 | 40 |
Deferred loan fees | 78 | 112 |
Charitable contribution carryforward | 0 | 60 |
Other | 38 | |
Deferred Tax Assets | 984 | 1,128 |
Depreciation and amortization | (30) | (23) |
FHLB stock | (23) | (25) |
unrealized gains on available for sale securities | (285) | (581) |
Other | (29) | (4) |
Deferred Tax Liabilities | (367) | (633) |
Net Deferred Tax Asset | $ 617 | $ 495 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory to Effective Rates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Federal income taxes at statutory rate, amount | $ 552 | $ 503 |
Federal income taxes at statutory rate, percentage | 21.00% | 21.00% |
Tax exempt interest on municipal obligations, amount | $ (36) | $ (26) |
Tax exempt interest on municipal obligations, percentage | (1.40%) | (1.10%) |
State income taxes, net of federal income tax benefit, amount | $ 157 | $ 146 |
State income taxes, net of federal income tax benefit, percentage | 6.00% | 6.10% |
Increase in CSV of life insurance, amount | $ (54) | $ (43) |
Increase in CSV of life insurance, percentage | (2.10%) | (1.80%) |
Equity Compensation, amount | $ 12 | $ 14 |
Equity Compensation, percentage | 0.50% | 0.60% |
Other, amount | $ 15 | $ (28) |
Other, percentage | 0.60% | (1.20%) |
Total Provision for Income Taxes | $ 646 | $ 566 |
Provision for income taxes, percentage | 24.60% | 23.60% |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies | ||
Contingent liability related to loans sold | $ 1,357 | $ 14,186 |
Contingent liability recourse provisions expiry period | 4 months |
Commitments and Contingencies_3
Commitments and Contingencies (Contract Amounts of Credit-related Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Unused Lines of Credit, Fixed [Member] | ||
Contract amounts of credit-related financial instruments | $ 19,197 | $ 14,902 |
Unused Lines of Credit, Variable [Member] | ||
Contract amounts of credit-related financial instruments | 6,732 | 3,770 |
Undisbursed Portion of Loan Proceeds, Fixed [Member] | ||
Contract amounts of credit-related financial instruments | 453 | 2,194 |
Standby Letters of Credit, Variable [Member] | ||
Contract amounts of credit-related financial instruments | $ 1,003 | $ 993 |
Related-party Transactions (Nar
Related-party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related party deposit liabilities | $ 1,440 | $ 1,258 |
Lease for Office Space with Related Party [Member] | ||
Payments for rent | 50 | 40 |
Law Firm, Directors [Member] | Services of Law Firm [Member] | ||
Related party transaction, amounts of transaction | $ 0 | $ 4 |
Related-party Transactions (Sum
Related-party Transactions (Summary of Loans to Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related-party Transactions | ||
Beginning balance | $ 10,113 | $ 3,615 |
Adjustments for changes in directors and executive officers | 0 | 45 |
New loans | 501 | 6,462 |
Repayments | (972) | (9) |
Ending balance | $ 9,642 | $ 10,113 |
Foreclosed Assets (Narrative) (
Foreclosed Assets (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Repossessed assets, total | $ 0 | $ 125 |
Mortgage loans in process of foreclosure, amount | $ 0 | 0 |
Residential Real Estate and Consumer [Member] | ||
Repossessed assets, total | 21 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Repossessed assets, total | $ 104 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Impaired financing receivable, with related allowance, recorded investment | $ 704 | |
Loans, fair value | 254 | |
Impaired financing receivable, related allowance | $ 0 | 450 |
Foreclosed asset, fair value | $ 0 | $ 125 |
Fair Value (Fair Value of Asset
Fair Value (Fair Value of Assets on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for sale securities | $ 48,398 | $ 64,243 |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities | 48,398 | 64,243 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 48,398 | 64,243 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of the US Government and US Government Sponsored Agencies [Member] | ||
Available for sale securities | 1,040 | 754 |
Fair Value, Measurements, Recurring [Member] | Obligations of the US Government and US Government Sponsored Agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of the US Government and US Government Sponsored Agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 1,040 | 754 |
Fair Value, Measurements, Recurring [Member] | Obligations of the US Government and US Government Sponsored Agencies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | ||
Available for sale securities | 14,624 | 15,605 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 14,624 | 15,605 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member] | ||
Available for sale securities | 26,056 | 37,680 |
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 26,056 | 37,680 |
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||
Available for sale securities | 772 | 7,937 |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 772 | 7,937 |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | 5,906 | 2,267 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 5,906 | 2,267 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | $ 0 | $ 0 |
Fair Value (Fair Value of Ass_2
Fair Value (Fair Value of Assets on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans, fair value | $ 254 | |
Foreclosed asset, fair value | $ 0 | 125 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Loans, fair value | 254 | |
Foreclosed asset, fair value | 125 | |
Other equity investments, fair value | 503 | 225 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Loans, fair value | 0 | |
Foreclosed asset, fair value | 0 | |
Other equity investments, fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Loans, fair value | 0 | |
Foreclosed asset, fair value | 0 | |
Other equity investments, fair value | 503 | 225 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans, fair value | 254 | |
Foreclosed asset, fair value | 125 | |
Other equity investments, fair value | $ 0 | $ 0 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 254 | |
Foreclosed assets | $ 0 | 125 |
Measurement Input, Discount Rate [Member] | Valuation, Market and Income Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 0 | 254 |
Foreclosed assets | $ 0 | $ 125 |
Measurement Input, Discount Rate [Member] | Valuation, Market and Income Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 10 | 10 |
Foreclosed assets, measurement input | 10 | 10 |
Measurement Input, Discount Rate [Member] | Valuation, Market and Income Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 20 | 20 |
Foreclosed assets, measurement input | 20 | 20 |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for sale securities | $ 48,398 | $ 64,243 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | 67,002 | 41,479 |
Available for sale securities | 48,398 | 64,243 |
Loans held for sale | 500 | 1,708 |
Loans | 222,104 | 214,723 |
Accrued interest receivable | 813 | 995 |
Cash value of life insurance | 10,029 | 7,272 |
Other equity investments | 1,353 | 1,279 |
Deposits | 255,250 | 226,498 |
Advance payments by borrowers for taxes and insurance | 102 | 127 |
FHLB advances | 6,500 | 7,500 |
Accrued interest payable | 7 | 17 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 67,002 | 41,479 |
Available for sale securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans | 0 | 0 |
Accrued interest receivable | 813 | 995 |
Cash value of life insurance | 10,029 | 7,272 |
Other equity investments | 0 | 0 |
Deposits | 199,238 | 175,987 |
Advance payments by borrowers for taxes and insurance | 102 | 127 |
FHLB advances | 0 | 0 |
Accrued interest payable | 7 | 17 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 48,398 | 64,243 |
Loans held for sale | 500 | 1,708 |
Loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Cash value of life insurance | 0 | 0 |
Other equity investments | 503 | 225 |
Deposits | 0 | 0 |
Advance payments by borrowers for taxes and insurance | 0 | 0 |
FHLB advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans | 224,612 | 217,893 |
Accrued interest receivable | 0 | 0 |
Cash value of life insurance | 0 | 0 |
Other equity investments | 850 | 1,054 |
Deposits | 55,970 | 50,732 |
Advance payments by borrowers for taxes and insurance | 0 | 0 |
FHLB advances | 6,489 | 7,544 |
Accrued interest payable | $ 0 | $ 0 |
Equity and Regulatory Matters_2
Equity and Regulatory Matters (Capital Amounts and Ratios) (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Equity and Regulatory Matters | ||
Common Equity Tier 1 capital (to risk-weighted assets) | $ 75,554 | $ 73,665 |
Common Equity Tier 1 capital (to risk-weighted assets), ratio | 29.6 | 33.1 |
Common Equity Tier 1 capital (to risk-weighted assets), for capital adequacy | $ 11,467 | $ 10,018 |
Common Equity Tier 1 capital (to risk-weighted assets), for capital adequacy, ratio | 4.50% | 4.50% |
Common Equity Tier 1 capital (to risk-weighted assets), to be capitalized | $ 16,564 | $ 14,471 |
Common Equity Tier 1 capital (to risk-weighted assets), to be capitalized, ratio | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets) | $ 75,554 | $ 73,665 |
Tier 1 capital (to risk-weighted assets), ratio | 29.6 | 33.1 |
Tier 1 capital (to risk-weighted assets), for capital adequacy | $ 15,290 | $ 13,358 |
Tier 1 capital (to risk-weighted assets), for capital adequacy, ratio | 6 | 6 |
Tier 1 capital (to risk-weighted assets), to be capitalized | $ 20,386 | $ 17,810 |
Tier 1 capital (to risk-weighted assets), to be capitalized, ratio | 8 | 8 |
Total capital (to risk-weighted assets) | $ 77,984 | $ 76,448 |
Total capital (to risk-weighted assets), ratio | 30.6 | 34.3 |
Total capital (to risk-weighted assets), for capital adequacy | $ 20,386 | $ 17,810 |
Total capital (to risk-weighted assets), for capital adequacy, ratio | 8 | 8 |
Total capital (to risk-weighted assets), to be capitalized | $ 25,483 | $ 22,263 |
Total capital (to risk-weighted assets), to be capitalized, ratio | 10 | 10 |
Tier 1 capital (to average assets) | $ 75,554 | $ 73,665 |
Tier 1 capital (to average assets), ratio | 21.4 | 25.2 |
Tier 1 capital (to average assets), for capital adequacy | $ 14,137 | $ 11,700 |
Tier 1 capital (to average assets), for capital adequacy, ratio | 4 | 4 |
Tier 1 capital (to average assets), to be capitalized | $ 17,671 | $ 14,625 |
Tier 1 capital (to average assets), to be capitalized, ratio | 5 | 5 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets | ||
Core deposit premium intangible assets, gross carrying amount | $ 530 | $ 530 |
Core deposit premium intangible assets, accumulated amortization | 2 | 106 |
Amortization of intangible assets | $ 108 | $ 16 |
Intangible Assets (Projections
Intangible Assets (Projections of Amortization Expense) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Intangible Assets | |
2022 | $ 95 |
2023 | 82 |
2024 | 60 |
2025 | 40 |
2026 | $ 26 |
Deferred Compensation (Narrativ
Deferred Compensation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Compensation | ||
Deferred compensation liability | $ 422 | $ 450 |
Deferred compensation arrangement with individual, compensation expense | 23 | 55 |
Cash surrender value of life insurance | $ 10,029 | $ 7,272 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Stock Ownership Plan | ||
Employee Stock Ownership Plan (ESOP), number of committed-to-be-released shares | 30,584 | 30,584 |
Average fair value of per share | $ 11.38 | $ 9.30 |
Employee Stock Ownership Plan (ESOP), Compensation expense | $ 347 | $ 279 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan (Summary of ESOP Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Employee Stock Ownership Plan | ||
Shares allocated to active participants (in shares) | 62,305 | 33,861 |
Shares committed to be released and allocated to participants (in shares) | 30,584 | 30,584 |
Shares distributed (in shares) | 0 | (2,140) |
Total unallocated shares (in shares) | 550,509 | 581,093 |
Total ESOP shares (in shares) | 643,398 | 643,398 |
Fair value of unallocated shares (based on $11.80 and $10.02 share price at December 31, 2021 and December 31, 2020, respectively) | $ 6,496 | $ 5,823 |
Share price (in dollars per share) | $ 11.80 | $ 10.02 |
Share-based Compensation Plan_2
Share-based Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2021 | Nov. 30, 2018 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 161,242 | |||
Number of restricted stock granted (in shares) | 22,750 | 2,500 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 391,857 | |||
2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | |||
2018 Equity Incentive Plan | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 152,027 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 41,257 | |||
Share based award vesting period | 5 years | |||
2018 Equity Incentive Plan | Restricted Stock [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||
2018 Equity Incentive Plan | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 380,066 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 81,294 | |||
Share based award vesting period | 5 years | |||
Share based award expiration period | 10 years | |||
2021 Equity Incentive Plan | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 170,742 | |||
2021 Equity Incentive Plan | Restricted Stock [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based award vesting period | 1 year | |||
2021 Equity Incentive Plan | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 426,857 |
Share-based Compensation Plan_3
Share-based Compensation Plans (Impact of Share-based Payment Plans in Financial Statements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cost of share-based payment plans | $ 379 | $ 316 |
Amount of related income tax benefit recognized in income | 94 | 85 |
Restricted Stock [Member] | ||
Cost of share-based payment plans | 227 | 177 |
Employee Stock Option [Member] | ||
Cost of share-based payment plans | $ 152 | $ 139 |
Share-based Compensation Plan_4
Share-based Compensation Plans (Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Option Awards, Outstanding | ||
Beginning Balance (in shares) | 269,220 | 260,510 |
Granted (in shares) | 76,000 | 46,716 |
Exercised (in shares) | (6,942) | 0 |
Expired or canceled, (in shares) | (2,346) | 0 |
Forfeited, (in shares) | (19,057) | (38,006) |
Ending Balance (in shares) | 316,875 | 269,220 |
Exercisable as of December 31, (in shares) | 126,520 | 81,959 |
Stock Option Awards, Weighted Average Exercise Price | ||
Beginning Balance (in dollars per share) | $ 10.51 | $ 10.79 |
Granted, (in dollars per share) | 11.27 | 9.10 |
Exercised, (in dollars per share) | 10.14 | 0 |
Expired or canceled, (in dollars per share) | 10.64 | 0 |
Forfeited, (in dollars per share) | 10.01 | 10.73 |
Ending Balance (in dollars per share) | 10.73 | 10.51 |
Exercisable as of December 31, (in dollars per share) | $ 10.72 | $ 10.81 |
Stock Option Awards, Additional Disclosures | ||
Options outstanding, weighted average remaining contractual term (Year) | 7 years 6 months 3 days | 8 years 3 months 3 days |
Options outstanding, weighted average remaining contractual term, exercisable (Year) | 7 years 18 days | 7 years 11 months 23 days |
Options outstanding, Aggregate intrinsic value | $ 342,758 | $ 0 |
Options outstanding, aggregate intrinsic value, exercisable | $ 137,049 | $ 0 |
Number of Options, Nonvested | ||
Nonvested options outstanding | 187,256 | |
Granted | 76,000 | 46,716 |
Vested | (53,844) | |
Forfeited | (19,057) | |
Nonvested options outstanding | 190,355 | 187,256 |
Nonvested Options, Weighted Average Grant Date Fair Value | ||
Nonvested options outstanding | $ 3.06 | |
Granted | 3.29 | |
Vested | 3.16 | |
Forfeited | 2.69 | |
Nonvested options outstanding | $ 3.16 | $ 3.06 |
Share-based Compensation Plan_5
Share-based Compensation Plans (Valuation Assumptions were Used for Options Granted) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Plans | ||
Risk-free interest rate | 1.26% | 0.52% |
Expected volatility | 23.86% | 22.91% |
Expected dividend yield | 0.00% | 0.00% |
Expected life of options (years) (Year) | 7 years 6 months | 7 years 6 months |
Weighted average fair value per option of options granted during the year (in dollars per share) | $ 3.29 | $ 2.38 |
Share-based Compensation Plan_6
Share-based Compensation Plans (Summary of Changes in Restricted Shares) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Shares outstanding, number of shares (in shares) | 62,067 | 90,790 |
Shares outstanding, weighted average grant date fair value (in dollars per share) | $ 10.73 | $ 10.79 |
Granted, number of shares (in shares) | 22,750 | 2,500 |
Granted, weighted average grant date fair value (in dollars per share) | $ 11.35 | $ 9.10 |
Vested, number of shares (in shares) | (19,561) | (19,064) |
Vested, weighted average grant date fair value (in dollars per share) | $ 10.77 | $ 10.81 |
Forfeited, number of shares (in shares) | (5,519) | (12,159) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ 10.08 | $ 10.73 |
Shares outstanding, number of shares (in shares) | 59,737 | 62,067 |
Shares outstanding, weighted average grant date fair value (in dollars per share) | $ 11.02 | $ 10.73 |
Business Combination (Assets ac
Business Combination (Assets acquired and liabilities assumed) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Cash and due from banks | $ 41,454,000 | $ 52,483,000 |
Available for sale securities | 64,243,000 | 48,398,000 |
Loans, net of allowance | 214,723,000 | 222,104,000 |
Premises and equipment | 5,594,000 | 5,506,000 |
Accrued interest receivable | 995,000 | 813,000 |
Foreclosed Assets | 125,000 | 0 |
Other assets | 1,554,000 | 1,372,000 |
TOTAL ASSETS | 338,972,000 | 357,077,000 |
Deposits | 226,498,000 | 255,250,000 |
Other liabilities | 1,565,000 | 1,246,000 |
Total liabilities | 235,707,000 | $ 263,105,000 |
As Recorded by Mitchell Bank [Member] | ||
Business Acquisition [Line Items] | ||
Cash and due from banks | 38,266,000 | |
Available for sale securities | 7,133,000 | |
Other equity securities | 51,000 | |
Loans, net of allowance | 14,512,000 | |
Premises and equipment | 529,000 | |
Accrued interest receivable | 83,000 | |
Foreclosed Assets | 185,000 | |
Deferred tax asset | 228,000 | |
Other assets | 209,000 | |
TOTAL ASSETS | 61,196,000 | |
Deposits | 56,641,000 | |
Other liabilities | 38,000 | |
Total liabilities | 56,679,000 | |
Total identifiable assets | 4,517,000 | |
Mitchell Bank | ||
Consideration Paid | ||
Cash | 4,978,000 | |
Fair Value and Other Merger Related Adjustments | ||
Securities | 16,000 | |
Other equity securities | 177,000 | |
Loans, net of allowance | (217,000) | |
Premises and equipment | 499,000 | |
Core deposit intangibles | 369,000 | |
Foreclosed Assets | (60,000) | |
Deferred tax asset | (228,000) | |
Other assets | (88,000) | |
Total assets acquired | 468,000 | |
Total identifiable assets | 468,000 | |
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||
Cash and due from banks | 38,266,000 | |
Securities | 7,149,000 | |
Other equity securities | 228,000 | |
Loans, net of allowance | 14,295,000 | |
Premises and equipment | 1,028,000 | |
Core deposit intangibles | 369,000 | |
Accrued interest receivable | 83,000 | |
Foreclosed Assets | 125,000 | |
Other assets | 121,000 | |
Total assets acquired | 61,664,000 | |
Deposits | 56,641,000 | |
Other liabilities | 38,000 | |
Total liabilities assumed | 56,679,000 | |
Total identifiable assets | 4,985,000 | |
Bargain purchase gain resulting from acquisition | $ (7,000) |