Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40589 | |
Entity Registrant Name | NorthEast Community Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 86-3173858 | |
Entity Address, Address Line One | 325 Hamilton Avenue | |
Entity Address, City or Town | White Plains | |
Entity Address State Or Province | NY | |
Entity Address, Postal Zip Code | 10601 | |
City Area Code | 914 | |
Local Phone Number | 684-2500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | NECB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,331,836 | |
Entity Central Index Key | 0001847398 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and amounts due from depository institutions | $ 14,302 | $ 8,344 |
Interest-bearing deposits | 71,925 | 143,925 |
Total cash and cash equivalents | 86,227 | 152,269 |
Certificates of deposit | 100 | 100 |
Equity securities | 18,879 | 19,943 |
Securities available-for-sale, at fair value | 1 | 1 |
Securities held-to-maturity (fair value of $24,385 and $17,620, respectively) | 27,189 | 17,880 |
Loans receivable | 1,023,622 | 972,851 |
Deferred loan costs, net | 527 | 484 |
Allowance for loan losses | (5,467) | (5,242) |
Net loans | 1,018,682 | 968,093 |
Premises and equipment, net | 26,215 | 23,907 |
Investments in restricted stock, at cost | 1,238 | 1,569 |
Bank owned life insurance | 25,588 | 25,291 |
Accrued interest receivable | 5,232 | 4,283 |
Goodwill | 651 | 651 |
Real estate owned | 1,996 | 1,996 |
Property held for investment | 1,463 | 1,481 |
Right of Use Assets - Operating | 2,296 | 2,564 |
Right of Use Assets - Financing | 357 | 359 |
Other assets | 5,476 | 4,683 |
Total assets | 1,221,590 | 1,225,070 |
Deposits: | ||
Non-interest bearing | 362,484 | 330,853 |
Interest bearing | 566,116 | 596,311 |
Total deposits | 928,600 | 927,164 |
Advance payments by borrowers for taxes and insurance | 1,737 | 1,884 |
Federal Home Loan Bank advances | 21,000 | 28,000 |
Lease Liability - Operating | 2,344 | 2,604 |
Lease Liability - Financing | 514 | 496 |
Accounts payable and accrued expenses | 11,083 | 13,540 |
Total liabilities | 965,278 | 973,688 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | ||
Common stock, $0.01 par value; 75,000,000 shares authorized; 16,377,936 shares issued; and 16,377,936 shares outstanding | 164 | 164 |
Additional paid-in capital | 145,404 | 145,335 |
Unearned Employee Stock Ownership Plan ("ESOP") shares | (7,866) | (8,301) |
Retained earnings | 118,708 | 114,323 |
Accumulated other comprehensive loss | (98) | (139) |
Total stockholders' equity | 256,312 | 251,382 |
Total liabilities and stockholders' equity | $ 1,221,590 | $ 1,225,070 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Securities held-to-maturity, fair value | $ 24,385 | $ 17,620 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 16,377,936 | 16,377,936 |
Common stock, shares outstanding | 16,377,936 | 16,377,936 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INTEREST INCOME: | ||||
Loans | $ 14,412 | $ 11,575 | $ 27,473 | $ 23,302 |
Interest-earning deposits | 249 | 11 | 304 | 21 |
Securities | 177 | 90 | 335 | 173 |
Total Interest Income | 14,838 | 11,676 | 28,112 | 23,496 |
INTEREST EXPENSE: | ||||
Deposits | 1,160 | 1,113 | 2,337 | 2,395 |
Borrowings | 127 | 176 | 288 | 350 |
Financing lease | 9 | 9 | 19 | 18 |
Total Interest Expense | 1,296 | 1,298 | 2,644 | 2,763 |
Net Interest Income | 13,542 | 10,378 | 25,468 | 20,733 |
Provision for loan losses | 17 | |||
Net Interest Income after Provision for Loan Losses | 13,542 | 10,378 | 25,468 | 20,716 |
NON-INTEREST INCOME: | ||||
Other loan fees and service charges | 627 | 393 | 1,018 | 715 |
Gain on disposition of equipment | 46 | 7 | 46 | 7 |
Earnings on bank owned life insurance | 150 | 148 | 297 | 295 |
Investment advisory fees | 120 | 124 | 257 | 242 |
Unrealized (loss) gain on equity securities | (430) | 93 | (1,064) | (62) |
Other | 23 | 13 | 40 | 24 |
Total Non-Interest Income | 536 | 778 | 594 | 1,221 |
NON-INTEREST EXPENSES: | ||||
Salaries and employee benefits | 3,613 | 3,512 | 7,441 | 7,169 |
Occupancy expense | 562 | 472 | 1,166 | 1,045 |
Equipment | 276 | 239 | 566 | 488 |
Outside data processing | 479 | 337 | 915 | 824 |
Advertising | 51 | 24 | 105 | 47 |
Real estate owned expense | 21 | 26 | 52 | 68 |
Other | 2,005 | 1,699 | 3,982 | 3,223 |
Total Non-Interest Expenses | 7,007 | 6,309 | 14,227 | 12,864 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 7,071 | 4,847 | 11,835 | 9,073 |
PROVISION FOR INCOME TAXES | 1,678 | 1,126 | 2,797 | 2,107 |
NET INCOME | $ 5,393 | $ 3,721 | $ 9,038 | $ 6,966 |
EARNINGS PER COMMON SHARE-BASIC (in dollars per share) | $ 0.35 | $ 0.23 | $ 0.58 | $ 0.43 |
EARNINGS PER COMMON SHARE-DILUTED (in dollars per share) | $ 0.35 | $ 0.23 | $ 0.58 | $ 0.43 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC (in shares) | 15,544 | 16,181 | 15,534 | 16,176 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-DILUTED (in shares) | 15,544 | 16,181 | 15,534 | 16,176 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) | 6 Months Ended |
Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF INCOME | |
Exchange ratio | 1.3400 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||
Net Income | $ 5,393 | $ 3,721 | $ 9,038 | $ 6,966 | |
Reclassification adjustments out of accumulated other comprehensive income: | |||||
Amortization of actuarial loss | [1] | 6 | 8 | 13 | 16 |
Actuarial loss (gain) arising during period | 23 | (15) | 40 | (21) | |
Total | 29 | (7) | 53 | (5) | |
Income tax effect | [2] | (7) | 1 | (12) | 2 |
Total other comprehensive income (loss) | 22 | (6) | 41 | (3) | |
Total Comprehensive Income | $ 5,415 | $ 3,715 | $ 9,079 | $ 6,963 | |
[1] ¹Amounts are included in salaries and employees benefits in the audited consolidated statements of income as part of net periodic pension cost. See Note 9 for further information. ²Amounts are included in provision for income taxes in the audited consolidated statements of income. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid- in Capital | Unearned ESOP Shares. | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 132 | $ 56,901 | $ (1,296) | $ 105,305 | $ (7,032) | $ (185) | $ 153,825 |
Balance at beginning of period (shares) at Dec. 31, 2020 | 17,721,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,245 | 3,245 | |||||
Other comprehensive income (loss) | 3 | 3 | |||||
Cash dividend declared | (144) | (144) | |||||
ESOP shares earned | 32 | 65 | 97 | ||||
Balance at end of period at Mar. 31, 2021 | $ 132 | 56,933 | (1,231) | 108,406 | (7,032) | (182) | 157,026 |
Balance at end of period (shares) at Mar. 31, 2021 | 17,721,500 | ||||||
Balance at beginning of period at Dec. 31, 2020 | $ 132 | 56,901 | (1,296) | 105,305 | (7,032) | (185) | 153,825 |
Balance at beginning of period (shares) at Dec. 31, 2020 | 17,721,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 6,966 | ||||||
Other comprehensive income (loss) | (3) | ||||||
Balance at end of period at Jun. 30, 2021 | $ 132 | 56,974 | (1,166) | 112,127 | (7,032) | (188) | 160,847 |
Balance at end of period (shares) at Jun. 30, 2021 | 17,721,500 | ||||||
Balance at beginning of period at Mar. 31, 2021 | $ 132 | 56,933 | (1,231) | 108,406 | (7,032) | (182) | 157,026 |
Balance at beginning of period (shares) at Mar. 31, 2021 | 17,721,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,721 | 3,721 | |||||
Other comprehensive income (loss) | (6) | (6) | |||||
ESOP shares earned | 41 | 65 | 106 | ||||
Balance at end of period at Jun. 30, 2021 | $ 132 | 56,974 | (1,166) | 112,127 | $ (7,032) | (188) | 160,847 |
Balance at end of period (shares) at Jun. 30, 2021 | 17,721,500 | ||||||
Balance at beginning of period at Dec. 31, 2021 | $ 164 | 145,335 | (8,301) | 114,323 | (139) | 251,382 | |
Balance at beginning of period (shares) at Dec. 31, 2021 | 16,377,936 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,645 | 3,645 | |||||
Other comprehensive income (loss) | 19 | 19 | |||||
Cash dividend declared | (931) | (931) | |||||
ESOP shares earned | 41 | 217 | 258 | ||||
Balance at end of period at Mar. 31, 2022 | $ 164 | 145,376 | (8,084) | 117,037 | (120) | 254,373 | |
Balance at end of period (shares) at Mar. 31, 2022 | 16,377,936 | ||||||
Balance at beginning of period at Dec. 31, 2021 | $ 164 | 145,335 | (8,301) | 114,323 | (139) | 251,382 | |
Balance at beginning of period (shares) at Dec. 31, 2021 | 16,377,936 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 9,038 | ||||||
Other comprehensive income (loss) | 41 | ||||||
Balance at end of period at Jun. 30, 2022 | $ 164 | 145,404 | (7,866) | 118,708 | (98) | 256,312 | |
Balance at end of period (shares) at Jun. 30, 2022 | 16,377,936 | ||||||
Balance at beginning of period at Mar. 31, 2022 | $ 164 | 145,376 | (8,084) | 117,037 | (120) | 254,373 | |
Balance at beginning of period (shares) at Mar. 31, 2022 | 16,377,936 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,393 | 5,393 | |||||
Other comprehensive income (loss) | 22 | 22 | |||||
Cash dividend declared | (3,722) | (3,722) | |||||
ESOP shares earned | 28 | 218 | 246 | ||||
Balance at end of period at Jun. 30, 2022 | $ 164 | $ 145,404 | $ (7,866) | $ 118,708 | $ (98) | $ 256,312 | |
Balance at end of period (shares) at Jun. 30, 2022 | 16,377,936 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) | 3 Months Ended | ||
Jun. 30, 2022 $ / shares | Mar. 31, 2022 $ / shares | Mar. 31, 2021 $ / shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||
Cash dividend declared per share | $ 0.24 | $ 0.06 | $ 0.02 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Cash Flows from Operating Activities: | ||
Net income | $ 9,038 | $ 6,966 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net accretion of securities premiums and discounts, net | (8) | (3) |
Provision for loan losses | 17 | |
Depreciation | 599 | 568 |
Net amortization of deferred loan fees and costs | 277 | 23 |
Deferred income tax (benefit) expense | (785) | 745 |
Unrealized loss recognized on equity securities | 1,064 | 62 |
Earnings on bank owned life insurance | (297) | (295) |
Gain on dispositions of premises and equipment | (46) | (7) |
ESOP compensation expense | 504 | 202 |
(Increase) decrease in accrued interest receivable | (949) | 219 |
Decrease (increase) in other assets | 280 | (1,193) |
(Decrease) increase in accounts payable - loan closing | (1,614) | 222 |
Decrease in accounts payable and accrued expenses | (784) | (347) |
Net Cash Provided by Operating Activities | 7,279 | 7,179 |
Cash Flows from Investing Activities: | ||
Net increase in loans | (52,919) | (8,669) |
Proceeds from sale of loan | 2,053 | 3,148 |
Principal repayments on securities held-to-maturity | 737 | 793 |
Purchase of securities held-to-maturity | (10,038) | (4,250) |
Net redemptions of restricted stock | 331 | 26 |
Purchases of premises and equipment | (2,861) | (5,073) |
Net Cash Used in Investing Activities | (62,697) | (14,025) |
Cash Flows from Financing Activities: | ||
Net increase in deposits | 1,436 | 27,098 |
Repayment of FHLB of NY advances | (7,000) | |
Issuance of common stock funded by stock subscriptions | 74,933 | |
Decrease in advance payments by borrowers for taxes and insurance | (147) | (246) |
Cash dividends paid | (4,913) | (295) |
Net Cash (Used in) Provided by Financing Activities | (10,624) | 101,490 |
Net (Decrease) Increase in Cash and Cash Equivalents | (66,042) | 94,644 |
Cash and Cash Equivalents-Beginning | 152,269 | 69,191 |
Cash and Cash Equivalents-Ending | 86,227 | 163,835 |
Supplementary Cash Flows Information: | ||
Income taxes paid | 2,635 | 1,936 |
Interest paid | 2,592 | $ 2,770 |
Supplementary Disclosure of Non-Cash Investing and Financing Activities: | ||
Dividends declared and not paid | $ 983 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies The following is a description of the Company’s business and significant accounting and reporting policies: Nature of Business: Northeast Community Bancorp, Inc. (the “Company”) is a Maryland corporation that was incorporated in May 2021 to be the successor to NorthEast Community Bancorp, Inc., a federally chartered corporation (the “Mid-Tier Holding Company”), upon completion of the second-step conversion of NorthEast Community Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. NorthEast Community Bancorp, MHC was the former mutual holding company for the Mid-Tier Holding Company prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of NorthEast Community Bancorp, MHC and the Mid-Tier Holding Company merged out of existence and now cease to exist. The second-step conversion was completed on July 12, 2021, at which time the Company sold, for gross proceeds of per share. As part of the second-step conversion, each of the existing outstanding shares of Mid-Tier Holding Company common stock owned by persons other than NorthEast Community Bancorp, MHC was converted into The Bank is a New York State-chartered savings bank and completed its conversion from a federally-chartered savings bank effective as of the close of business on June 29, 2012. The Company’s primary activity is the ownership and operation of the Bank. The Bank is headquartered in White Plains, New York. The Bank was founded in 1934 and is a community oriented financial institution dedicated to serving the financial services needs of individuals and businesses within its market area. The Bank currently conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, Sullivan, and Westchester Counties in New York and Essex, Middlesex and Norfolk Counties in Massachusetts and two loan production offices located in White Plains, New York, and New City, New York. The Bank’s principal business consists of originating primarily construction loans and, to a lesser extent, commercial and industrial loans and multifamily and mixed-use residential real estate loans and non-residential real estate loans. The Bank offers a variety of retail deposit products to the general public in the areas surrounding its main office and its branch offices, with interest rates that are competitive with those of similar products offered by other financial institutions operating in its market area. The Bank also utilizes borrowings as a source of funds. The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities. The Bank also generates revenues from other income including deposit fees, service charges and investment advisory fees. The Bank also offers investment advisory and financial planning services under the name Harbor West Wealth Management Group, a division of the Bank, through a networking arrangement with a registered broker-dealer and investment advisor. New England Commercial Properties LLC (“NECP”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank. New England Commercial Properties, LLC currently owns one foreclosed property located in Pennsylvania. NECB Financial Services Group, LLC (“NECB Financial”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in the third quarter of 2012 as a complement to Harbor West Wealth Management Group to sell life insurance and fixed rate annuities. NECB Financial is licensed in the States of New York and Connecticut. 72 West Eckerson LLC (“72 West Eckerson”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York. 166 Route 59 Realty LLC (“166 Route 59 Realty”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for the Bank branch located in Airmont, New York. 3 Winterton Realty LLC, a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for the Bank branch located in Bloomingburg, New York. Principal of Consolidations: The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank, NECP, NECB Financial, 72 West Eckerson, 166 Route 59 Realty, and 3 Winterton Realty LLC (collectively the “Company”) and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant inter-company accounts and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. The unaudited consolidated interim financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021. In the opinion of the Company, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the operating results for the interim periods have been included. The results of operations for periods of less than a year are not necessarily indicative of results for the full year or any other period. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term, including novel coronavirus (“COVID-19”) related changes, are used in connection with the determination of the allowance for loan losses, the review of the need for a valuation allowance of the Company’s deferred tax assets and the fair value of financial instruments. COVID-19: The Company continues to monitor the impact of COVID-19 and considers these disruptions to be temporary. If the disruptions continue, this might have an adverse effect on the Company’s results of operations, financial position, and liquidity in 2022. Further, a decrease in the results of future operations could strain the Company’s regulatory capital ratios. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2022 | |
Regulatory Capital | |
Regulatory Capital | Note 2 — Regulatory Capital The Company and the Bank are subject to regulatory capital requirements promulgated by the federal banking agencies. The Federal Reserve establishes capital requirements, including well capitalized standards, for the consolidated bank holding company, and the FDIC has similar requirements for the Company’s subsidiary bank. Prior to January 1, 2015, quantitative measures were established by regulation to ensure capital adequacy which required the Bank to maintain minimum amounts and ratios of Total, Tier 1 capital (as defined by regulations) to risk-weighted assets (as defined), and of Core tier 1 capital to adjusted total assets (as defined). Effective January 1, 2015, the Company adopted the Basel III final rule. Based on the Company’s capital levels and statement of condition composition at December 31, 2021, the implementation of the new rule had no material impact on our regulatory capital level or ratios at the Bank level. The rule established limits at the Company level and increased the minimum Tier 1 capital to risk based assets requirement from 4% to 6% of risk-weighted assets; established a new common equity Tier 1 capital; and assigned a higher risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The rule has a capital conservation buffer requirement that was phased in at a rate of 0.625% annually beginning January 1, 2016 through January 1, 2020, when full capital conservation buffer requirement of 2.50% became effective. The Federal Reserve Board has provided a “small bank holding company” exception to its consolidated capital requirements, and legislation and the related issuance of regulations by the Federal Reserve Board has increased the threshold for the exception to $3.0 billion. As a result, the Company is not subject to the capital requirements until such time as its consolidated assets exceed $3.0 billion. The Bank met all capital adequacy requirements to which it was subject as of June 30, 2022 and December 31, 2021. The following table presents information about the Bank’s capital levels at the dates presented: Regulatory Capital Requirements Minimum Capital For Classification as Actual Adequacy(1) Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of June 30, 2022: Total capital (to risk-weighted assets) $ 205,545 14.79 % $ ≥ 111,212 ≥ 8.00 % $ ≥ 139,016 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 200,106 14.39 ≥ 83,409 ≥ 6.00 ≥ 111,212 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 200,106 14.39 ≥ 62,557 ≥ 4.50 ≥ 90,360 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 200,106 16.62 ≥ 48,175 ≥ 4.00 ≥ 60,219 ≥ 5.00 As of December 31, 2021: Total capital (to risk-weighted assets) $ 196,155 15.28 % $ ≥ 102,702 ≥ 8.00 % $ ≥ 128,377 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 190,941 14.87 ≥ 77,026 ≥ 6.00 ≥ 102,702 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 190,941 14.87 ≥ 57,770 ≥ 4.50 ≥ 83,445 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 190,941 16.79 ≥ 45,486 ≥ 4.00 ≥ 56,857 ≥ 5.00 (1) Ratios do not include the capital conservation buffer. Based on the most recent notification by the FDIC, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. There have been no conditions or events that have occurred since notification that management believes have changed the Bank’s category. |
Equity Securities
Equity Securities | 6 Months Ended |
Jun. 30, 2022 | |
Equity Securities | |
Equity Securities | Note 3 — Equity Securities The following table is the schedule of equity securities at June 30, 2022 and December 31, 2021. The equity securities consists of our investment in a market-rate bond mutual fund that invests in high quality fixed income bonds, mainly government agency securities whose proceeds are designed to positively impact community development throughout the United States. The mutual fund focuses exclusively on providing affordable housing for low- and moderate-income borrowers and renters, including those in majority minority census tracts. June 30, December 31, 2022 2021 (In Thousands) Equity Securities, at Fair Value $ 18,879 $ 19,943 The following is a summary of unrealized gain or loss recognized in net income on equity securities during the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Net (loss) gain recognized on equity securities during the period $ (430) $ 93 $ (1,064) $ (62) Less: Net losses realized on the sale of equity securities during the period — — — — Unrealized net (loss) gain recognized on equity securities held at the reporting date $ (430) $ 93 $ (1,064) $ (62) |
Securities Available-for-Sale
Securities Available-for-Sale | 6 Months Ended |
Jun. 30, 2022 | |
Securities Available-for-Sale | |
Securities Available-for-Sale | Note 4 — Securities Available-for-Sale The following table summarizes the Company’s portfolio of securities available-for-sale at June 30, 2022 and December 31, 2021. June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Federal Home Loan Mortgage Corporation $ 1 $ — $ — $ 1 $ 1 $ — $ — $ 1 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Federal Home Loan Mortgage Corporation $ 1 $ — $ — $ 1 $ 1 $ — $ — $ 1 There were no sales of securities available-for-sale as of June 30, 2022 and December 31, 2021. Contractual final maturities of mortgage-backed securities were as follows: June 30, 2022 Amortized Cost Fair Value (In Thousands) Due after one year but within five years $ 1 $ 1 $ 1 $ 1 The maturities shown above are based upon contractual final maturity. Actual maturities will differ from contractual maturities due to scheduled monthly repayments and due to the underlying borrowers having the right to prepay their obligations. At June 30, 2022 and December 31, 2021, the Company had no unrealized loss. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 6 Months Ended |
Jun. 30, 2022 | |
Securities Held-to-Maturity | |
Securities Held-to-Maturity | Note 5 — Securities Held-to-Maturity The following table summarizes the Company’s portfolio of securities held-to-maturity at June 30, 2022 and December 31, 2021. June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 583 $ $ 7 $ 576 Federal Home Loan Mortgage Corporation 1,011 — 92 919 Federal National Mortgage Association 2,488 — 161 2,327 Collateralized mortgage obligations – GSE 3,194 — 328 2,866 Total mortgage-backed securities 7,276 — 588 6,688 Municipal Bonds 9,883 — 2,130 7,753 U.S. Treasury securities 10,030 — 86 9,944 $ 27,189 $ — $ 2,804 $ 24,385 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 656 $ 19 $ — $ 675 Federal Home Loan Mortgage Corporation 1,059 — 5 1,054 Federal National Mortgage Association 2,695 23 6 2,712 Collateralized mortgage obligations – GSE 3,453 18 49 3,422 Total mortgage-backed securities 7,863 60 60 7,863 Municipal Bonds 10,017 7 267 9,757 $ 17,880 $ 67 $ 327 $ 17,620 Contractual final maturities of mortgage-backed securities, municipal bonds, U.S. Treasury securities were as follows at June 30, 2022: June 30, 2022 Amortized Fair Cost Value (In Thousands) Due within one year $ 10,567 $ 10,625 Due after one but within five years 1,781 2,018 Due after five but within ten years 2,616 2,510 Due after ten years 12,225 9,232 $ 27,189 $ 24,385 The maturities shown above are based upon contractual final maturity. Actual maturities will differ from contractual maturities due to scheduled monthly repayments and due to the underlying borrowers having the right to prepay their obligations. The age of unrealized losses and the fair value of related securities held-to-maturity were as follows: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) June 30, 2022: Mortgage-backed securities - residential: Government National Mortgage Association $ 343 $ 7 $ — $ — $ 343 $ 7 Federal Home Loan Mortgage Corporation 882 92 — — 882 92 Federal National Mortgage Association 2,326 161 — — 2,326 161 Collateralized mortgage obligations – GSE 2,866 328 — — 2,866 328 Total mortgage-backed securities 6,417 588 — — 6,417 588 Municipal Bonds 7,752 2,130 — — 7,752 2,130 U.S. Treasury securities 9,944 86 — — 9,944 86 $ 24,113 $ 2,804 $ — $ — $ 24,113 $ 2,804 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2021: Municipal Bonds $ 9,134 $ 267 $ — $ — $ 9,134 $ 267 Mortgage-backed securities - residential: Federal Home Loan Mortgage Corporation $ 1,004 $ 5 $ — $ — $ 1,004 $ 5 Federal National Mortgage Association 2,035 6 — — 2,035 6 Collateralized mortgage obligations – GSE 907 49 — — 907 49 Total mortgage-backed securities 3,946 60 — — 3,946 60 $ 13,080 $ 327 $ — $ — $ 13,080 $ 327 At June 30, 2022, twelve mortgage-backed securities, five municipal bonds and two U.S. Treasury notes had unrealized loss due to interest rate volatility. Management concluded that the unrealized loss reflected above was temporary in nature since the unrealized loss was related primarily to market interest rates volatility, and not related to the underlying credit quality of the issuers of the securities. Additionally, the Company has the ability and intent to hold the securities for the time necessary to recover the amortized cost. At December 31, 2021, there were |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2022 | |
Loans Receivable and the Allowance for Loan Losses | |
Loans Receivable and the Allowance for Loan Losses | Note 6 — Loans Receivable and the Allowance for Loan Losses Loans are stated at unpaid principal balances plus net deferred loan origination fees and costs less an allowance for loan losses. Interest on loans receivable is recorded on the accrual basis. An allowance for uncollected interest is established on loans where management has determined that the borrowers may be unable to meet contractual principal and/or interest obligations or where interest or principal is 90 days or more past due, unless the loans are well secured with a reasonable expectation of collection. When a loan is placed on nonaccrual, an allowance for uncollected interest is established and charged against current income. Thereafter, interest income is not recognized unless the financial condition and payment record of the borrower warrant the recognition of interest income. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest on loans that have been restructured is accrued according to the renegotiated terms. Net loan origination fees and costs are deferred and amortized into interest income over the contractual lives of the related loans by use of the level yield method. Past due status of loans is based upon the contractual due date. Prepayment penalties received on loans which pay in full prior to the scheduled maturity are included in interest income in the period the prepayment penalties are collected. The composition of loans were as follows at June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 (In Thousands) Residential real estate: One-to-four family $ 5,758 $ 7,189 Multi-family 83,866 84,425 Mixed-use 23,495 28,744 Total residential real estate 113,119 120,358 Non-residential real estate 26,633 50,016 Construction 780,858 683,830 Commercial and industrial 102,594 118,378 Consumer 418 269 Total Loans 1,023,622 972,851 Allowance for loan losses (5,467) (5,242) Deferred loan costs, net 527 484 $ 1,018,682 $ 968,093 Loans serviced for the benefit of others totaled approximately $14,368,000 and $14,610,000 at June 30, 2022 and December 31, 2021, respectively. The value of mortgage servicing rights was not material at June 30, 2022 and December 31, 2021. The Company did not issue Payroll Protection Program (“PPP”) loans associated with the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (the “CARES Act”) in 2022 or 2021. The Company had no loans to related parties at June 30, 2022 and December 31, 2021. In addition, the Company did not originate any loans to related parties in 2022 or 2021. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the statement of financial condition date and is recorded as a reduction to loans. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The following tables summarize the allocation of the allowance for loan losses and loans receivable by loan class and impairment method at June 30, 2022 and December 31, 2021: At June 30, 2022: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Loans receivable: Ending balance $ 113,119 $ 26,633 $ 780,858 $ 102,594 $ 418 $ — $ 1,023,622 Ending balance: individually evaluated for impairment $ 865 $ 769 $ — $ — $ — $ — $ 1,634 Ending balance: collectively evaluated for impairment $ 112,254 $ 25,864 $ 780,858 $ 102,594 $ 418 $ — $ 1,021,988 At December 31, 2021: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Loans receivable: Ending balance $ 120,358 $ 50,016 $ 683,830 $ 118,378 $ 269 $ — $ 972,851 Ending balance: individually evaluated for impairment $ 876 $ 746 $ — $ — $ — $ — $ 1,622 Ending balance: collectively evaluated for impairment $ 119,482 $ 49,270 $ 683,830 $ 118,378 $ 269 $ — $ 971,229 The activity in the allowance for loan loss by loan class for the three months ended June 30, 2022 and 2021 was as follows: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - March 31, 2022 $ 510 $ 340 $ 3,392 $ 958 $ 17 $ 111 $ 5,328 Charge-offs — — — — (7) — (7) Recoveries 146 — — — — — 146 Provision (Benefit) (110) (142) 189 (93) 6 150 — Balance - June 30, 2022 $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - March 31, 2021 $ 699 $ 501 $ 3,144 $ 756 $ 2 $ — $ 5,102 Charge-offs — — — — (9) — (9) Recoveries 1 — — — — — 1 Provision (Benefit) (13) (25) 52 (74) 22 38 — Balance - June 30, 2021 $ 687 $ 476 $ 3,196 $ 682 $ 15 $ 38 $ 5,094 The activity in the allowance for loan loss by loan class for the six months ended June 30, 2022 and 2021 was as follows: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - December 31, 2021 $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Charge-offs — — — — (17) — (17) Recoveries 189 53 — — — — 242 Provision (Benefit) (214) (236) 438 (108) 23 97 — Balance - June 30, 2022 $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - December 31, 2020 $ 707 $ 519 $ 3,068 $ 774 $ 20 $ — $ 5,088 Charge-offs — — — — (20) — (20) Recoveries 1 — — — 8 — 9 Provision (Benefit) (21) (43) 128 (92) 7 38 17 Balance - June 30, 2021 $ 687 $ 476 $ 3,196 $ 682 $ 15 $ 38 $ 5,094 During the three months ended June 30, 2022, the provision expenses recorded for construction loans were primarily attributed to the increased loan balances. The credit provision recorded for residential loans was due to loan recoveries during the three-month period. The credit provision recorded for non-residential loans and commercial and industrial loans was due to decreased loan balances. During the three months ended June 30, 2021, the provision expenses recorded for construction loans were primarily attributed to the increased loan balances. The credit provision recorded for other loan segments was primarily due to decreased loan balances. During the six months ended June 30, 2022, the provision expenses recorded for construction loans were attributed to the increased loan balances. The credit provition recorded for residential loans was primarily due to loan recoveries during the six-month period. The credit provision recorded for non-residential loans was attributed to loan recoveries and decreased loan balances. The credit provision recorded for commercial and industrial loans was primarily due to decreased loan balances. During the six months ended June 30, 2021, the provision expenses recorded for construction loans were primarily attributed to the increased loan balances. The credit provision recorded for other loan segments was primarily due to decreased loan balances. The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses for loans that were considered impaired as of and for the periods presented: As of and for the Three and Six months Ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Recorded Unpaid Principal Related Average Recorded Interest Income Average Recorded Interest Income 2022 Investment Balance Allowance Investment Recognized Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 865 $ 865 $ — $ 865 $ 16 $ 869 $ 22 Non-residential real estate 769 836 — 768 4 760 14 Construction — — — — — — — Commercial and industrial — — — — — — — 1,634 1,701 — 1,633 20 1,629 36 With an allowance recorded — — — — — — — Total: Residential real estate-Multi-family 865 865 — 865 16 869 22 Non-residential real estate 769 836 — 768 4 760 14 Construction — — — — — — — Commercial and industrial — — — — — — — $ 1,634 $ 1,701 $ — $ 1,633 $ 20 $ 1,629 $ 36 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Recorded Unpaid Principal Related Average Recorded Interest Income Average Recorded Interest Income 2021 Investment Balance Allowance Investment Recognized Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 1,977 $ 1,977 $ — $ 1,986 $ 24 $ 1,994 $ 45 Non-residential real estate 4,334 4,401 — 4,337 8 4,378 17 Construction — — — — — — — Commercial and industrial — — — — — — — 6,311 6,378 — 6,323 32 6,372 62 With an allowance recorded — — — — — — — Total: Residential real estate-Multi-family 1,977 1,977 — 1,986 24 1,994 45 Non-residential real estate 4,334 4,401 — 4,337 8 4,378 17 Construction — — — — — — — Commercial and industrial — — — — — — — $ 6,311 $ 6,378 $ — $ 6,323 $ 32 $ 6,372 $ 62 As of and for the Year Ended December 31, 2021: Recorded Unpaid Principal Related Average Recorded Interest Income 2021 Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 876 $ 876 $ — $ 1,986 $ 86 Non-residential real estate 746 813 — 3,891 36 Construction — — — — — Commercial and industrial — — — — — 1,622 1,689 — 5,877 122 With an allowance recorded — — — — — Total: Residential real estate-Multi-family 876 876 — 1,986 86 Non-residential real estate 746 813 — 3,891 36 Construction — — — — — Commercial and industrial — — — — — $ 1,622 $ 1,689 $ — $ 5,877 $ 122 There were two non-accrual loans totaling $769,000 as of June 30, 2022. The two non-accrual loans are non-residential loans from one borrower and are secured by the same property that is in foreclosure due to a maturity default at June 30, 2022. The Company did not recognize any interest income on non-accrual loans during the six months ended June 30, 2022 and 2021. Interest income that would have been recorded had the loans been on accrual status would have amounted to approximately $7,000 for the three and six months ended June 30, 2022. The Company is not committed to lend additional funds to borrowers whose loans have been placed on non-accrual status. There were no non-accrual loans at December 31, 2021. The following tables provide information about delinquencies in our loan portfolio at the dates indicated. Age Analysis of Past Due Loans as of June 30, 2022: Recorded Investment > 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 5,758 $ 5,758 $ — Multi-family — 949 — 949 82,917 83,866 — Mixed-use — — — — 23,495 23,495 — Non-residential real estate — 769 — 769 25,864 26,633 — Construction loans — — — — 780,858 780,858 — Commercial and industrial loans — — — — 102,594 102,594 — Consumer — — — — 418 418 — $ — $ 1,718 $ — $ 1,718 $ 1,021,904 $ 1,023,622 $ — Age Analysis of Past Due Loans as of December 31, 2021: Recorded Investment 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans > 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 7,189 $ 7,189 $ — Multi-family — — — — 84,425 84,425 — Mixed-use — — — — 28,744 28,744 — Non-residential real estate — — — — 50,016 50,016 — Construction loans — — — — 683,830 683,830 — Commercial and industrial loans — — — — 118,378 118,378 — Consumer — — — — 269 269 — $ — $ — $ — $ — $ 972,851 $ 972,851 $ — The following tables provide certain information related to the credit quality of our loan portfolio. Credit Risk Profile by Internally Assigned Grade as of June 30, 2022: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 113,119 $ 25,864 $ 780,858 $ 102,594 $ 418 $ 1,022,853 Special Mention — — — — — — Substandard — 769 — — — 769 Doubtful — — — — — — $ 113,119 $ 26,633 $ 780,858 $ 102,594 $ 418 $ 1,023,622 Credit Risk Profile by Internally Assigned Grade as of December 31, 2021: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 120,358 $ 49,270 $ 683,830 $ 118,378 $ 269 $ 972,105 Special Mention — — — — — — Substandard — 746 — — — 746 Doubtful — — — — — — $ 120,358 $ 50,016 $ 683,830 $ 118,378 $ 269 $ 972,851 Troubled Debt Restructuring: The following table shows our recorded investment for loans classified as a troubled debt restructuring (a “TDR”) that are performing according to their restructured terms at the periods indicated: June 30, December 31, 2022 2021 Number of Recorded Number of Recorded contracts Investment contracts Investment (Dollars in Thousands) Residential Real Estate - Mixed-use 2 $ 865 2 $ 876 Non-residential real estate — — 2 746 Total performing 2 $ 865 4 $ 1,622 The following is a summary of interest foregone on loans classified as a TDR for the three and six month periods ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Interest income that would have been recognized had the loans performed in accordance with their original terms $ 18 $ 33 $ 42 $ 76 Less: Interest income included in the results of operations 14 32 36 62 Total foregone interest $ 4 $ 1 $ 6 $ 14 There were no loans modified that were deemed to be a TDR during the six months ended June 30, 2022 and 2021. During the three and six months ended June 30, 2022, two TDR loans were placed on non-accrual status due to maturity default. During the three and six months ended June 30, 2021, none of the loans that were modified during the previous twelve months had defaulted. The CARES Act includes a provision for the Company to opt out of applying the “troubled-debt restructuring” (“TDR”) accounting guidance in ASC 310- 40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (1) January 1, 2022 or (2) 60 days after the President declares a termination of the COVID-19 national emergency were eligible for this relief if the related loans were not more than 30 days past due as of December 31, 2020. As of June 30, 2022, we had |
Real Estate Owned ("REO")
Real Estate Owned ("REO") | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate Owned ("REO") | |
Real Estate Owned ("REO") | Note 7 — Real Estate Owned (“REO”) The Company owned one foreclosed property valued at approximately $1,996,000 at June 30, 2022 and December 31, 2021, consisting of an office building located in Pennsylvania. The property was acquired through foreclosure in December 2014. Further declines in real estate values may result in impairment charges in the future. Routine holding costs are charged to expense as incurred and improvements to real estate owned that enhance the value of the real estate are capitalized. REO expense recorded in the consolidated statements of income amounted to $21,000 and $26,000 for the three months, and $52,000 and $68,000 for the six months ended June 30, 2022 and 2021, respectively. |
Federal Home Loan Bank of New Y
Federal Home Loan Bank of New York ("FHLB") Advances | 6 Months Ended |
Jun. 30, 2022 | |
Federal Home Loan Bank of New York ("FHLB") Advances | |
Federal Home Loan Bank of New York ("FHLB") Advances | Note 8 — Federal Home Loan Bank of New York (“FHLB”) Advances FHLB advances are summarized as follows at June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Advances maturing in: One year or less $ 7,000 2.83 % $ 7,000 2.79 % After one to three years 7,000 2.86 % 14,000 2.85 % After five years (due 2030) 7,000 1.61 % 7,000 1.61 % $ 21,000 2.43 % $ 28,000 2.52 % At June 30, 2022, none of the above advances were subject to early call or redemption features. All advances had fixed interest rates and the term of the advance ranges between 2 . At June 30, 2022, the advances were secured by a pledge of the Company’s investment in the capital stock of the FHLB and a blanket assignment of the Company’s otherwise unpledged qualifying mortgage loans. At June 30, 2022, these unpledged qualifying mortgage loans were not pledged to any company other than the FHLB. At June 30, 2022, the Company had the ability to borrow |
Benefits Plans
Benefits Plans | 6 Months Ended |
Jun. 30, 2022 | |
Benefits Plans | |
Benefits Plans | Note 9 — Benefits Plans Outside Director Retirement Plan (“DRP”) The DRP is an unfunded non-contributory defined benefit pension plan covering all non-employee directors meeting eligibility requirements as specified in the plan document. The following table sets forth information regarding the components of net pension periodic expense measured as of June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars In Thousands) (Dollars In Thousands) Net periodic pension expense: Service cost $ 30 $ 33 $ 60 $ 65 Interest cost 14 10 28 20 Actuarial loss recognized 6 8 13 16 Total net periodic pension expense included in other non-interest expenses $ 50 $ 51 $ 101 $ 101 Unrecognized net loss of $7,000 and $8,000 for the three months, and $14,000 and $16,000 for the six months ended June 30, 2022 and 2021, respectively, were included in accumulated other comprehensive income. Supplemental Executive Retirement Plan (“SERP”) The SERP is a non-contributory defined benefit plan that covers certain officers of the Company. Under the SERP, each of these individuals will be entitled to receive upon retirement an annual benefit paid in monthly installments equal to 50% of his average base salary in the three-year period preceding retirement. Each individual may also retire early and receive a reduced benefit upon the attainment of certain age and years of service combination. Additional terms related to death while employed, death after retirement, disability before retirement and termination of employment are fully described within the plan document. The benefit payment term is the greater of 15 years or the executives remaining life. No benefits next five years Expenses of $121,000 and $132,000 for the three months, and $240,000 and $227,000 for the six months ended June 30, 2022 and 2021, respectively, were recorded for this plan and are reflected in the Consolidated Statements of Income under Salaries and Employee Benefits. Stock-Based Deferral Plan In June 2021, the Company established a stock-based deferral plan for eligible key executives and members of the Board of Directors of the Company to elect to defer compensation received from the Company for their services and make deemed investments of that deferred compensation in shares of the Company’s common stock. At June 30, 2022, the Company did not have any obligations under the plan. 401(k) Plan The Company maintains a 401(k) plan for all eligible employees. Participants are permitted to contribute from 1% to 15% or 60% of their annual compensation up to the maximum permitted under the Internal Revenue Code. The Company provided no matching contribution during the three and six months ended June 30, 2022 and 2021. Employee Stock Ownership Plan (“ESOP”) In conjunction with the Mid-Tier Holding Company’s public stock offering in 2006, the Bank established an ESOP for all eligible employees (substantially all full-time employees). The ESOP borrowed per share. The loan from the Mid-Tier Holding Company, which has been assumed by the Company, carries an interest rate of In conjunction with the Company’s second-step conversion offering, on July 12, 2021, the ESOP borrowed $7,827,260 from the Company and used those funds to acquire 782,726 shares of Company common stock at $10.00 per share. The loan from the Company carries an interest rate equal to Each year, the Bank makes discretionary contributions to the ESOP equal to the principal and interest payment required on the loan from the Company. The ESOP may further pay down the principal balance of the loans by using dividends paid, if any, on the shares of Company common stock it owns. The balance remaining on the first ESOP loan was $1,703,000 at June 30, 2022 and December 31, 2021. The balance remaining on the second ESOP loan was $7,270,000 at June 30, 2022 and December 31, 2021. Shares purchased with the loan proceeds serve as collateral for the loan and are held in a suspense account for future allocation among ESOP participants. As the loan principal is repaid, shares will be released from the suspense account and become eligible for allocation. The allocation among plan participants will be as described in the ESOP governing document. ESOP shares initially pledged as collateral were recorded as unearned ESOP shares in the stockholders’ equity section of the consolidated statement of financial condition. Thereafter, on a monthly basis over the terms of the ESOP loans, approximately 2,894 shares for the ESOP loan made in 2006 and approximately 4,348 shares for the ESOP loan made in 2021 are committed to be released respectively. Compensation expense is recorded equal to the shares committed to be released multiplied by the average closing price of the Company’s stock during that month. ESOP expense totaled approximately $246,000 and $106,000 for the three months, and $504,000 and $203,000 for the six months ended June 30, 2022 and 2021, respectively. Dividends on unallocated shares, which totaled approximately $209,000 and $4,000 for the three months, and $261,000 and $9,000 for the six months ended June 30, 2022 and 2021, are recorded as a reduction of the ESOP loan. Dividends on allocated shares, which totaled approximately $146,000 and $11,000 for the three months, and $182,000 and $23,000 for the six months ended June 30, 2022 and 2021, respectively, are charged to retained earnings. ESOP shares are summarized as follows: June 30, December 31, 2022 2021 Allocated shares 607,922 521,012 Shares committed to be released 43,460 86,910 Unearned shares 826,027 869,487 Total ESOP Shares 1,477,409 1,477,409 Less allocated shares distributed to former or retired employees (112,548) (106,369) Total ESOP Shares Held by Trustee 1,364,861 1,371,040 Fair value of unearned shares $ 9,722,336 $ 9,677,390 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Leases | Note 10 — Leases The Company has operating leases and finance leases all comprised of real estate property. The operating leases comprise substantially all of the Company’s obligations in which the Company is the lessee, with remaining lease terms ranging between 2 5 In accordance with ASC 842, the Company recognized operating and financing lease assets and corresponding lease liabilities related to office facilities and retail branches. The operating and financing lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term. The Company has elected that any short term leases would be expensed as incurred. The operating and financing lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments. Our leases do not provide an implicit interest rate. The company used its incremental borrowing rate, the rate of interest to borrow in a collateralized basis for a similar term, at the lease commencement date. All of the leases are net leases and, therefore, do not contain non-lease components. The Company either pays directly or reimburses the lessor for property and casualty insurance cost and the property taxes assessed on the property, as well as a portion of the common area maintenance associated with the property which are categorized as non-components as outlined in the applicable guidance. At June 30, 2022 and December 31, 2021, the quantitative data relating to the Company’s leases are as follows (in thousands): June 30, December 31, 2022 2021 Finance Lease Amounts: ROU asset $ 357 $ 359 Lease liability $ 514 $ 496 Operating Lease Amounts: ROU assets $ 2,296 $ 2,564 Lease liabilities $ 2,344 $ 2,604 Weighted-average remaining lease term Finance lease 95 years 95 years Operating leases 6.81 7.02 Weighted-average discount rate Finance lease 9.50 % 9.50 % Operating leases 1.17 % 1.22 % The components of lease expense and cash flow information related to leases as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars In Thousands) (Dollars In Thousands) Finance Lease Cost Amortization of ROU asset $ 1 1 $ 2 $ 2 Interest on lease liability $ 9 9 $ 19 $ 18 Operating Lease Costs $ 141 141 $ 283 $ 283 Cash paid for amounts included in the measurement of lease liabilities Finance lease $ — — $ — $ — Operating leases $ 139 136 $ 277 $ 271 Maturities of lease liabilities at June 30, 2022 are as follows (in thousands): Operating Finance Leases Lease Years ended December 31: 2022 $ 272 $ 23 2023 423 30 2024 333 30 2025 302 30 2026 235 31 Thereafter 875 4,158 Total lease payments $ 2,440 $ 4,302 Interest (96) (3,788) Lease liability $ 2,344 $ 514 |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures | |
Fair Value Disclosures | Note 11 — Fair Value Disclosures The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company’s securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company has to record at fair value other assets and liabilities on a non-recurring basis, such as securities held to maturity, impaired loans and other real estate owned. U.S. GAAP has established a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s assets that are carried at fair value on a recurring basis and the level that was used to determine their fair value at June 30, 2022 and December 31, 2021: Quoted Prices in Significant Other Significant Total Carried Active Markets for Observable Unobservable at Fair Identical Assets Inputs Inputs Value on a (Level 1) (Level 2) (Level 3) Recurring Basis June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, Description 2022 2021 2022 2021 2022 2021 2022 2021 Assets: Marketable equity securities: Mutual funds $ 18,879 $ 19,943 $ — $ — $ — $ — $ 18,879 $ 19,943 Mortgage-backed securities FHLMC — — 1 1 — — 1 1 Total assets $ 18,879 $ 19,943 $ 1 $ 1 $ — $ — $ 18,880 $ 19,944 There were no transfers between Level 1 and 2 during the three and six months ended June 30, 2022 or the year ended December 31, 2021. The Company did not have any liabilities that were carried at fair value on a recurring basis at June 30, 2022 and December 31, 2021. The Company did not have any assets and liabilities that were carried at fair value on a non-recurring basis at June 30, 2022 and December 31, 2021. The methods and assumptions used to estimate fair value at June 30, 2022 and December 31, 2021 are as follows: For real estate owned, fair value is generally determined through independent appraisals or fair value estimations of the underlying properties which generally include various Level 3 inputs which are not identifiable. The appraisals or fair value estimation may be adjusted by management for qualitative reasons and estimated liquidation expenses. Management’s assumptions may include consideration of location and occupancy of the property and current economic conditions. Subsequently, as these properties are actively marketed, the estimated fair values may be periodically adjusted through incremental subsequent write-downs to reflect decreases in estimated values resulting from sales price observations and the impact of changing economic and market conditions. A loan is considered impaired when, based upon current information and events; it is probable that the Company will be unable to collect all scheduled payments in accordance with the contractual terms of the loan. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves, a component of the allowance for loan losses or through partial charge-offs, and as such are carried at the lower of cost or the fair value. Estimates of fair value of the collateral are determined based on a variety of information, including available valuations from certified appraisers for similar assets, present value of discounted cash flows and inputs that are estimated based on commonly used and generally accepted industry liquidation advance rates and estimates and assumptions developed by management. The appraisals may be adjusted by management for estimated liquidation expenses and qualitative factors such as economic conditions. If real estate is not the primary source of repayment, present value of discounted cash flows and estimates using generally accepted industry liquidation advance rates are utilized. Due to the multitude of assumptions, many of which are subjective in nature, and the varying inputs and techniques used by appraisers, the Company recognizes that valuations could differ across a wide spectrum of valuation techniques employed and accordingly, fair value estimates for impaired loans are classified as Level 3. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at June 30, 2022 and December 31, 2021: Securities Fair values for marketable equity securities are determined by quoted market prices on nationally recognized and foreign securities exchanges (Level 1). Fair values for securities available for sale and held to maturity are determined utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. The carrying amounts and estimated fair value of our financial instruments are as follows: Fair Value at June 30, 2022 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 86,227 $ 86,227 $ 86,227 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,879 18,879 18,879 — — Securities available for sale 1 1 — 1 — Securities held to maturity 27,189 24,385 — 24,385 — Loans receivable, net 1,018,682 1,009,632 — — 1,009,632 Investments in restricted stock 1,238 1,238 — 1,238 — Accrued interest receivable 5,232 5,232 — 5,232 — Financial Liabilities Deposits 928,600 926,234 — 926,234 — FHLB of New York advances 21,000 19,987 — 19,987 — Fair Value at December 31, 2021 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 152,269 $ 152,269 $ 152,269 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 19,943 19,943 19,943 — — Securities available for sale 1 1 — 1 — Securities held to maturity 17,880 17,620 — 17,620 — Loans receivable, net 968,093 968,247 — — 968,247 Investments in restricted stock 1,569 1,569 — 1,569 — Accrued interest receivable 4,283 4,283 — 4,283 — Financial Liabilities Deposits 927,164 929,003 — 929,003 — FHLB of New York advances 28,000 28,283 — 28,283 — |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue Recognition | |
Revenue Recognition | Note 12 — Revenue Recognition The majority of the Company’s revenues come from interest income and other sources, including loans and securities that are outside the scope of ASC 606, Revenue from Contracts with Customers. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, electronic banking fees and charges income, and investment advisory fees. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as referral fees based month end reports. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2022, the Company did not have any significant contract balances. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2022 and 2021. Sources of revenue outside the scope of ASC 606 are noted as such: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Non-interest income: Deposit-related fees and charges $ 18 $ 17 $ 36 $ 34 Loan-related fees and charges (1) 382 220 553 368 Electronic banking fees and charges 227 156 429 313 Gain on disposition of equipment (1) 46 7 46 7 Income from bank owned life insurance (1) 150 148 297 295 Investment advisory fees 120 124 257 242 Unrealized (loss) gain on equity securities (1) (430) 93 (1,064) (62) Miscellaneous (1) 23 13 40 24 Total non-interest income $ 536 $ 778 $ 594 $ 1,221 (1) Not within the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Electronic Banking Fee Income The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution. Investment Advisory Fees The Company earns fees from investment advisory and financial planning services under the name of Harbor West Financial Planning Wealth Management, a division of the Company through a networking arrangement with a registered broker-dealer and investment advisor. The registered broker-dealer deducts investment advisory fees and financial planning services fees from the client’s assets under management and remits the fees, net of administrative fees, to the Company on a monthly basis. The Company recognizes the fees into non-interest income upon receipt of the monthly remittances. |
Other Non-Interest Expenses
Other Non-Interest Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Other Non-Interest Expenses | |
Other Non-Interest Expenses | Note 13 — Other Non-Interest Expenses The following is an analysis of other non-interest expenses: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Other $ 721 $ 476 $ 1,337 $ 965 Service contracts 271 196 528 425 Consulting expense 202 369 460 578 Telephone 150 146 291 287 Directors compensation 142 125 281 269 Audit and accounting 95 132 300 256 Insurance 96 75 178 148 Director, officer, and employee expense 70 64 128 126 Legal fees 203 86 357 103 Office supplies and stationary 37 29 77 65 Recruiting expense 18 1 45 1 $ 2,005 $ 1,699 $ 3,982 $ 3,223 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 14 — Recent Accounting Pronouncements Accounting Standards Pending Adoption: ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires credit losses on most financial assets to be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination ("PCD assets") should be determined in a similar manner to other financial assets measured on an amortized cost basis. Upon initial recognition, the allowance for credit losses is added to the purchase price ("gross up approach") to determine the initial amortized cost basis. The subsequent accounting for PCD assets will use the CECL model described above. The ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. As amended, ASU No. 2016-13 and any related amending ASUs No. 2019-04, 2019-11, 2020-03, and 2022-02 are effective for entities qualifying as smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted for all entities as of the fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. The Company has begun collecting and evaluating data and system requirements to implement this standard. The adoption of this update could have a material impact on the Company’s consolidated results of operations and financial condition. The extent of the impact is still unknown and will depend on many factors, such as the composition of the Company’s loan portfolio and expected loss history at adoption. Management has engaged consultants to assess the preparedness of the Company for evaluating and implementing CECL. ASU 2020-04 - Reference Rate Reform (Topic 848) In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848)" which provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships that reference LIBOR or another reference rate expected to be discontinued, subject to meeting certain criteria. Under the new guidance, an entity can elect by accounting topic or industry subtopic to account for the modification of a contract affected by reference rate reform as a continuation of the existing contract, if certain conditions are met. In addition, the new guidance allows an entity to elect on a hedge-by-hedge basis to continue to apply hedge accounting for hedging relationships in which the critical terms change due to reference rate reform, if certain conditions are met. A one-time election to sell and/or transfer held-to-maturity debt securities that reference a rate affected by reference rate reform is also allowed. ASU No. 2020-04 became effective for all entities as of March 12, 2020 and will apply to all LIBOR reference rate modifications through December 31, 2022. ASU 2021-01 - Reference Rate Reform (Topic 848) In January 2021, the FASB issued ASU No. 2021-01, "Reference Rate Reform (Topic 848)". The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in this update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. ASU No. 2021-01 became immediately effective for all entities, which may elect to apply the update retrospectively as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively to new modifications from any date within an interim period that includes or is subsequent to the issuance date of ASU No. 2021-01 up to the date that financial statements are available to be issued. In addition, ASU No.2021-01 applies to all contract modifications made through December 31, 2022. We are evaluating the impacts of this ASU and have not yet determined whether LIBOR transition and this ASU will have material effects on our business operations and consolidated financial statements. The amendments in this update apply to contract modifications that replace a reference rate reform and contemporaneous modifications of other terms related to the replacement of the reference rate. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Nature of Business | Nature of Business: Northeast Community Bancorp, Inc. (the “Company”) is a Maryland corporation that was incorporated in May 2021 to be the successor to NorthEast Community Bancorp, Inc., a federally chartered corporation (the “Mid-Tier Holding Company”), upon completion of the second-step conversion of NorthEast Community Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. NorthEast Community Bancorp, MHC was the former mutual holding company for the Mid-Tier Holding Company prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of NorthEast Community Bancorp, MHC and the Mid-Tier Holding Company merged out of existence and now cease to exist. The second-step conversion was completed on July 12, 2021, at which time the Company sold, for gross proceeds of per share. As part of the second-step conversion, each of the existing outstanding shares of Mid-Tier Holding Company common stock owned by persons other than NorthEast Community Bancorp, MHC was converted into The Bank is a New York State-chartered savings bank and completed its conversion from a federally-chartered savings bank effective as of the close of business on June 29, 2012. The Company’s primary activity is the ownership and operation of the Bank. The Bank is headquartered in White Plains, New York. The Bank was founded in 1934 and is a community oriented financial institution dedicated to serving the financial services needs of individuals and businesses within its market area. The Bank currently conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, Sullivan, and Westchester Counties in New York and Essex, Middlesex and Norfolk Counties in Massachusetts and two loan production offices located in White Plains, New York, and New City, New York. The Bank’s principal business consists of originating primarily construction loans and, to a lesser extent, commercial and industrial loans and multifamily and mixed-use residential real estate loans and non-residential real estate loans. The Bank offers a variety of retail deposit products to the general public in the areas surrounding its main office and its branch offices, with interest rates that are competitive with those of similar products offered by other financial institutions operating in its market area. The Bank also utilizes borrowings as a source of funds. The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities. The Bank also generates revenues from other income including deposit fees, service charges and investment advisory fees. The Bank also offers investment advisory and financial planning services under the name Harbor West Wealth Management Group, a division of the Bank, through a networking arrangement with a registered broker-dealer and investment advisor. New England Commercial Properties LLC (“NECP”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank. New England Commercial Properties, LLC currently owns one foreclosed property located in Pennsylvania. NECB Financial Services Group, LLC (“NECB Financial”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in the third quarter of 2012 as a complement to Harbor West Wealth Management Group to sell life insurance and fixed rate annuities. NECB Financial is licensed in the States of New York and Connecticut. 72 West Eckerson LLC (“72 West Eckerson”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York. 166 Route 59 Realty LLC (“166 Route 59 Realty”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for the Bank branch located in Airmont, New York. 3 Winterton Realty LLC, a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for the Bank branch located in Bloomingburg, New York. |
Principal of Consolidations | Principal of Consolidations: The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank, NECP, NECB Financial, 72 West Eckerson, 166 Route 59 Realty, and 3 Winterton Realty LLC (collectively the “Company”) and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant inter-company accounts and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. The unaudited consolidated interim financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021. In the opinion of the Company, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the operating results for the interim periods have been included. The results of operations for periods of less than a year are not necessarily indicative of results for the full year or any other period. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term, including novel coronavirus (“COVID-19”) related changes, are used in connection with the determination of the allowance for loan losses, the review of the need for a valuation allowance of the Company’s deferred tax assets and the fair value of financial instruments. |
COVID19 | COVID-19: The Company continues to monitor the impact of COVID-19 and considers these disruptions to be temporary. If the disruptions continue, this might have an adverse effect on the Company’s results of operations, financial position, and liquidity in 2022. Further, a decrease in the results of future operations could strain the Company’s regulatory capital ratios. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Regulatory Capital | |
Schedule of bank's capital levels | Regulatory Capital Requirements Minimum Capital For Classification as Actual Adequacy(1) Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of June 30, 2022: Total capital (to risk-weighted assets) $ 205,545 14.79 % $ ≥ 111,212 ≥ 8.00 % $ ≥ 139,016 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 200,106 14.39 ≥ 83,409 ≥ 6.00 ≥ 111,212 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 200,106 14.39 ≥ 62,557 ≥ 4.50 ≥ 90,360 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 200,106 16.62 ≥ 48,175 ≥ 4.00 ≥ 60,219 ≥ 5.00 As of December 31, 2021: Total capital (to risk-weighted assets) $ 196,155 15.28 % $ ≥ 102,702 ≥ 8.00 % $ ≥ 128,377 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 190,941 14.87 ≥ 77,026 ≥ 6.00 ≥ 102,702 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 190,941 14.87 ≥ 57,770 ≥ 4.50 ≥ 83,445 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 190,941 16.79 ≥ 45,486 ≥ 4.00 ≥ 56,857 ≥ 5.00 (1) Ratios do not include the capital conservation buffer. |
Equity Securities (Tables)
Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Securities | |
Schedule of equity securities | June 30, December 31, 2022 2021 (In Thousands) Equity Securities, at Fair Value $ 18,879 $ 19,943 |
Schedule of unrealized gains recognized in net income on equity securities | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Net (loss) gain recognized on equity securities during the period $ (430) $ 93 $ (1,064) $ (62) Less: Net losses realized on the sale of equity securities during the period — — — — Unrealized net (loss) gain recognized on equity securities held at the reporting date $ (430) $ 93 $ (1,064) $ (62) |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Securities Available-for-Sale | |
Schedule of portfolio of securities available-for-sale | June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Federal Home Loan Mortgage Corporation $ 1 $ — $ — $ 1 $ 1 $ — $ — $ 1 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Federal Home Loan Mortgage Corporation $ 1 $ — $ — $ 1 $ 1 $ — $ — $ 1 |
Schedule of contractual final maturities of securities available-for-sale | June 30, 2022 Amortized Cost Fair Value (In Thousands) Due after one year but within five years $ 1 $ 1 $ 1 $ 1 |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Securities Held-to-Maturity | |
Summary of securities held-to-maturity portfolio | June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 583 $ $ 7 $ 576 Federal Home Loan Mortgage Corporation 1,011 — 92 919 Federal National Mortgage Association 2,488 — 161 2,327 Collateralized mortgage obligations – GSE 3,194 — 328 2,866 Total mortgage-backed securities 7,276 — 588 6,688 Municipal Bonds 9,883 — 2,130 7,753 U.S. Treasury securities 10,030 — 86 9,944 $ 27,189 $ — $ 2,804 $ 24,385 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 656 $ 19 $ — $ 675 Federal Home Loan Mortgage Corporation 1,059 — 5 1,054 Federal National Mortgage Association 2,695 23 6 2,712 Collateralized mortgage obligations – GSE 3,453 18 49 3,422 Total mortgage-backed securities 7,863 60 60 7,863 Municipal Bonds 10,017 7 267 9,757 $ 17,880 $ 67 $ 327 $ 17,620 |
Schedule of contractual final maturities | June 30, 2022 Amortized Fair Cost Value (In Thousands) Due within one year $ 10,567 $ 10,625 Due after one but within five years 1,781 2,018 Due after five but within ten years 2,616 2,510 Due after ten years 12,225 9,232 $ 27,189 $ 24,385 |
Schedule of unrealized losses and the fair value | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) June 30, 2022: Mortgage-backed securities - residential: Government National Mortgage Association $ 343 $ 7 $ — $ — $ 343 $ 7 Federal Home Loan Mortgage Corporation 882 92 — — 882 92 Federal National Mortgage Association 2,326 161 — — 2,326 161 Collateralized mortgage obligations – GSE 2,866 328 — — 2,866 328 Total mortgage-backed securities 6,417 588 — — 6,417 588 Municipal Bonds 7,752 2,130 — — 7,752 2,130 U.S. Treasury securities 9,944 86 — — 9,944 86 $ 24,113 $ 2,804 $ — $ — $ 24,113 $ 2,804 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2021: Municipal Bonds $ 9,134 $ 267 $ — $ — $ 9,134 $ 267 Mortgage-backed securities - residential: Federal Home Loan Mortgage Corporation $ 1,004 $ 5 $ — $ — $ 1,004 $ 5 Federal National Mortgage Association 2,035 6 — — 2,035 6 Collateralized mortgage obligations – GSE 907 49 — — 907 49 Total mortgage-backed securities 3,946 60 — — 3,946 60 $ 13,080 $ 327 $ — $ — $ 13,080 $ 327 |
Loans Receivable and the Allo_2
Loans Receivable and the Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans Receivable and the Allowance for Loan Losses | |
Summary of composition of loans | June 30, December 31, 2022 2021 (In Thousands) Residential real estate: One-to-four family $ 5,758 $ 7,189 Multi-family 83,866 84,425 Mixed-use 23,495 28,744 Total residential real estate 113,119 120,358 Non-residential real estate 26,633 50,016 Construction 780,858 683,830 Commercial and industrial 102,594 118,378 Consumer 418 269 Total Loans 1,023,622 972,851 Allowance for loan losses (5,467) (5,242) Deferred loan costs, net 527 484 $ 1,018,682 $ 968,093 |
Schedule of analysis of the activity in the allowance for loan losses | At June 30, 2022: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Loans receivable: Ending balance $ 113,119 $ 26,633 $ 780,858 $ 102,594 $ 418 $ — $ 1,023,622 Ending balance: individually evaluated for impairment $ 865 $ 769 $ — $ — $ — $ — $ 1,634 Ending balance: collectively evaluated for impairment $ 112,254 $ 25,864 $ 780,858 $ 102,594 $ 418 $ — $ 1,021,988 At December 31, 2021: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Loans receivable: Ending balance $ 120,358 $ 50,016 $ 683,830 $ 118,378 $ 269 $ — $ 972,851 Ending balance: individually evaluated for impairment $ 876 $ 746 $ — $ — $ — $ — $ 1,622 Ending balance: collectively evaluated for impairment $ 119,482 $ 49,270 $ 683,830 $ 118,378 $ 269 $ — $ 971,229 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - March 31, 2022 $ 510 $ 340 $ 3,392 $ 958 $ 17 $ 111 $ 5,328 Charge-offs — — — — (7) — (7) Recoveries 146 — — — — — 146 Provision (Benefit) (110) (142) 189 (93) 6 150 — Balance - June 30, 2022 $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - March 31, 2021 $ 699 $ 501 $ 3,144 $ 756 $ 2 $ — $ 5,102 Charge-offs — — — — (9) — (9) Recoveries 1 — — — — — 1 Provision (Benefit) (13) (25) 52 (74) 22 38 — Balance - June 30, 2021 $ 687 $ 476 $ 3,196 $ 682 $ 15 $ 38 $ 5,094 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - December 31, 2021 $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Charge-offs — — — — (17) — (17) Recoveries 189 53 — — — — 242 Provision (Benefit) (214) (236) 438 (108) 23 97 — Balance - June 30, 2022 $ 546 $ 198 $ 3,581 $ 865 $ 16 $ 261 $ 5,467 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - December 31, 2020 $ 707 $ 519 $ 3,068 $ 774 $ 20 $ — $ 5,088 Charge-offs — — — — (20) — (20) Recoveries 1 — — — 8 — 9 Provision (Benefit) (21) (43) 128 (92) 7 38 17 Balance - June 30, 2021 $ 687 $ 476 $ 3,196 $ 682 $ 15 $ 38 $ 5,094 |
Summary of recorded investment, unpaid principal balance and allocated allowance for loan losses for loans that were considered impaired | As of and for the Three and Six months Ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Recorded Unpaid Principal Related Average Recorded Interest Income Average Recorded Interest Income 2022 Investment Balance Allowance Investment Recognized Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 865 $ 865 $ — $ 865 $ 16 $ 869 $ 22 Non-residential real estate 769 836 — 768 4 760 14 Construction — — — — — — — Commercial and industrial — — — — — — — 1,634 1,701 — 1,633 20 1,629 36 With an allowance recorded — — — — — — — Total: Residential real estate-Multi-family 865 865 — 865 16 869 22 Non-residential real estate 769 836 — 768 4 760 14 Construction — — — — — — — Commercial and industrial — — — — — — — $ 1,634 $ 1,701 $ — $ 1,633 $ 20 $ 1,629 $ 36 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Recorded Unpaid Principal Related Average Recorded Interest Income Average Recorded Interest Income 2021 Investment Balance Allowance Investment Recognized Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 1,977 $ 1,977 $ — $ 1,986 $ 24 $ 1,994 $ 45 Non-residential real estate 4,334 4,401 — 4,337 8 4,378 17 Construction — — — — — — — Commercial and industrial — — — — — — — 6,311 6,378 — 6,323 32 6,372 62 With an allowance recorded — — — — — — — Total: Residential real estate-Multi-family 1,977 1,977 — 1,986 24 1,994 45 Non-residential real estate 4,334 4,401 — 4,337 8 4,378 17 Construction — — — — — — — Commercial and industrial — — — — — — — $ 6,311 $ 6,378 $ — $ 6,323 $ 32 $ 6,372 $ 62 As of and for the Year Ended December 31, 2021: Recorded Unpaid Principal Related Average Recorded Interest Income 2021 Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 876 $ 876 $ — $ 1,986 $ 86 Non-residential real estate 746 813 — 3,891 36 Construction — — — — — Commercial and industrial — — — — — 1,622 1,689 — 5,877 122 With an allowance recorded — — — — — Total: Residential real estate-Multi-family 876 876 — 1,986 86 Non-residential real estate 746 813 — 3,891 36 Construction — — — — — Commercial and industrial — — — — — $ 1,622 $ 1,689 $ — $ 5,877 $ 122 |
Schedule of age analysis of past due loans | Age Analysis of Past Due Loans as of June 30, 2022: Recorded Investment > 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 5,758 $ 5,758 $ — Multi-family — 949 — 949 82,917 83,866 — Mixed-use — — — — 23,495 23,495 — Non-residential real estate — 769 — 769 25,864 26,633 — Construction loans — — — — 780,858 780,858 — Commercial and industrial loans — — — — 102,594 102,594 — Consumer — — — — 418 418 — $ — $ 1,718 $ — $ 1,718 $ 1,021,904 $ 1,023,622 $ — Age Analysis of Past Due Loans as of December 31, 2021: Recorded Investment 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans > 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 7,189 $ 7,189 $ — Multi-family — — — — 84,425 84,425 — Mixed-use — — — — 28,744 28,744 — Non-residential real estate — — — — 50,016 50,016 — Construction loans — — — — 683,830 683,830 — Commercial and industrial loans — — — — 118,378 118,378 — Consumer — — — — 269 269 — $ — $ — $ — $ — $ 972,851 $ 972,851 $ — |
Summary of credit risk profile by internally assigned grade | Credit Risk Profile by Internally Assigned Grade as of June 30, 2022: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 113,119 $ 25,864 $ 780,858 $ 102,594 $ 418 $ 1,022,853 Special Mention — — — — — — Substandard — 769 — — — 769 Doubtful — — — — — — $ 113,119 $ 26,633 $ 780,858 $ 102,594 $ 418 $ 1,023,622 Credit Risk Profile by Internally Assigned Grade as of December 31, 2021: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 120,358 $ 49,270 $ 683,830 $ 118,378 $ 269 $ 972,105 Special Mention — — — — — — Substandard — 746 — — — 746 Doubtful — — — — — — $ 120,358 $ 50,016 $ 683,830 $ 118,378 $ 269 $ 972,851 |
Schedule of recorded investment for loans classified as Trouble Debt Restructuring (TDR) | June 30, December 31, 2022 2021 Number of Recorded Number of Recorded contracts Investment contracts Investment (Dollars in Thousands) Residential Real Estate - Mixed-use 2 $ 865 2 $ 876 Non-residential real estate — — 2 746 Total performing 2 $ 865 4 $ 1,622 |
Summary of interest forgone on loans classified as troubled debt restructurings | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Interest income that would have been recognized had the loans performed in accordance with their original terms $ 18 $ 33 $ 42 $ 76 Less: Interest income included in the results of operations 14 32 36 62 Total foregone interest $ 4 $ 1 $ 6 $ 14 |
Federal Home Loan Bank of New_2
Federal Home Loan Bank of New York ("FHLB") Advances (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Federal Home Loan Bank of New York ("FHLB") Advances | |
Schedule of FHLB advances | June 30, December 31, 2022 2021 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Advances maturing in: One year or less $ 7,000 2.83 % $ 7,000 2.79 % After one to three years 7,000 2.86 % 14,000 2.85 % After five years (due 2030) 7,000 1.61 % 7,000 1.61 % $ 21,000 2.43 % $ 28,000 2.52 % |
Benefits Plans (Tables)
Benefits Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Benefits Plans | |
Schedule of components of net pension periodic expense | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars In Thousands) (Dollars In Thousands) Net periodic pension expense: Service cost $ 30 $ 33 $ 60 $ 65 Interest cost 14 10 28 20 Actuarial loss recognized 6 8 13 16 Total net periodic pension expense included in other non-interest expenses $ 50 $ 51 $ 101 $ 101 |
Summary of ESOP shares | June 30, December 31, 2022 2021 Allocated shares 607,922 521,012 Shares committed to be released 43,460 86,910 Unearned shares 826,027 869,487 Total ESOP Shares 1,477,409 1,477,409 Less allocated shares distributed to former or retired employees (112,548) (106,369) Total ESOP Shares Held by Trustee 1,364,861 1,371,040 Fair value of unearned shares $ 9,722,336 $ 9,677,390 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of Company's leases | At June 30, 2022 and December 31, 2021, the quantitative data relating to the Company’s leases are as follows (in thousands): June 30, December 31, 2022 2021 Finance Lease Amounts: ROU asset $ 357 $ 359 Lease liability $ 514 $ 496 Operating Lease Amounts: ROU assets $ 2,296 $ 2,564 Lease liabilities $ 2,344 $ 2,604 Weighted-average remaining lease term Finance lease 95 years 95 years Operating leases 6.81 7.02 Weighted-average discount rate Finance lease 9.50 % 9.50 % Operating leases 1.17 % 1.22 % The components of lease expense and cash flow information related to leases as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars In Thousands) (Dollars In Thousands) Finance Lease Cost Amortization of ROU asset $ 1 1 $ 2 $ 2 Interest on lease liability $ 9 9 $ 19 $ 18 Operating Lease Costs $ 141 141 $ 283 $ 283 Cash paid for amounts included in the measurement of lease liabilities Finance lease $ — — $ — $ — Operating leases $ 139 136 $ 277 $ 271 |
Maturities of operating lease liabilities | Maturities of lease liabilities at June 30, 2022 are as follows (in thousands): Operating Finance Leases Lease Years ended December 31: 2022 $ 272 $ 23 2023 423 30 2024 333 30 2025 302 30 2026 235 31 Thereafter 875 4,158 Total lease payments $ 2,440 $ 4,302 Interest (96) (3,788) Lease liability $ 2,344 $ 514 |
Maturities of financing lease liabilities | Operating Finance Leases Lease Years ended December 31: 2022 $ 272 $ 23 2023 423 30 2024 333 30 2025 302 30 2026 235 31 Thereafter 875 4,158 Total lease payments $ 2,440 $ 4,302 Interest (96) (3,788) Lease liability $ 2,344 $ 514 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures | |
Assets carried at fair value on a recurring basis | Quoted Prices in Significant Other Significant Total Carried Active Markets for Observable Unobservable at Fair Identical Assets Inputs Inputs Value on a (Level 1) (Level 2) (Level 3) Recurring Basis June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, Description 2022 2021 2022 2021 2022 2021 2022 2021 Assets: Marketable equity securities: Mutual funds $ 18,879 $ 19,943 $ — $ — $ — $ — $ 18,879 $ 19,943 Mortgage-backed securities FHLMC — — 1 1 — — 1 1 Total assets $ 18,879 $ 19,943 $ 1 $ 1 $ — $ — $ 18,880 $ 19,944 |
Schedule of carrying amounts and estimated fair value of our financial instruments | Fair Value at June 30, 2022 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 86,227 $ 86,227 $ 86,227 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,879 18,879 18,879 — — Securities available for sale 1 1 — 1 — Securities held to maturity 27,189 24,385 — 24,385 — Loans receivable, net 1,018,682 1,009,632 — — 1,009,632 Investments in restricted stock 1,238 1,238 — 1,238 — Accrued interest receivable 5,232 5,232 — 5,232 — Financial Liabilities Deposits 928,600 926,234 — 926,234 — FHLB of New York advances 21,000 19,987 — 19,987 — Fair Value at December 31, 2021 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 152,269 $ 152,269 $ 152,269 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 19,943 19,943 19,943 — — Securities available for sale 1 1 — 1 — Securities held to maturity 17,880 17,620 — 17,620 — Loans receivable, net 968,093 968,247 — — 968,247 Investments in restricted stock 1,569 1,569 — 1,569 — Accrued interest receivable 4,283 4,283 — 4,283 — Financial Liabilities Deposits 927,164 929,003 — 929,003 — FHLB of New York advances 28,000 28,283 — 28,283 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue Recognition | |
Revenue Recognition | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Non-interest income: Deposit-related fees and charges $ 18 $ 17 $ 36 $ 34 Loan-related fees and charges (1) 382 220 553 368 Electronic banking fees and charges 227 156 429 313 Gain on disposition of equipment (1) 46 7 46 7 Income from bank owned life insurance (1) 150 148 297 295 Investment advisory fees 120 124 257 242 Unrealized (loss) gain on equity securities (1) (430) 93 (1,064) (62) Miscellaneous (1) 23 13 40 24 Total non-interest income $ 536 $ 778 $ 594 $ 1,221 (1) Not within the scope of ASC 606. |
Other Non-Interest Expenses (Ta
Other Non-Interest Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Non-Interest Expenses | |
Schedule of other non-interest expenses | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Other $ 721 $ 476 $ 1,337 $ 965 Service contracts 271 196 528 425 Consulting expense 202 369 460 578 Telephone 150 146 291 287 Directors compensation 142 125 281 269 Audit and accounting 95 132 300 256 Insurance 96 75 178 148 Director, officer, and employee expense 70 64 128 126 Legal fees 203 86 357 103 Office supplies and stationary 37 29 77 65 Recruiting expense 18 1 45 1 $ 2,005 $ 1,699 $ 3,982 $ 3,223 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jul. 12, 2021 USD ($) $ / shares shares | Jun. 30, 2022 Office property | Jun. 30, 2021 USD ($) | |
Summary of Significant Accounting Policies | |||
Number of branch offices | Office | 11 | ||
Number of loan production offices | Office | 2 | ||
Gross proceeds | $ | $ 74,933 | ||
Exchange ratio | 1.3400 | ||
New England Commercial Properties LLC | |||
Summary of Significant Accounting Policies | |||
Number of foreclosed properties | property | 1 | ||
NorthEast Community Bank | |||
Summary of Significant Accounting Policies | |||
Gross proceeds | $ | $ 97,800 | ||
Stock issued | shares | 9,784,077 | ||
Share price | $ / shares | $ 10 | ||
Shares issued upon conversion | shares | 1.3400 | ||
Exchange ratio | 1.3400 |
Regulatory Capital - Narrative
Regulatory Capital - Narrative (Details) | Jun. 30, 2022 | Dec. 31, 2021 |
Mutual Holding Company Reorganization and Regulatory Matters | ||
Percentage of minimum Tier 1 capital to risk based assets | 0.0600 | 0.0600 |
Percentage of risk weight | 150% | |
Minimum | ||
Mutual Holding Company Reorganization and Regulatory Matters | ||
Percentage of minimum Tier 1 capital to risk based assets | 4 | |
Percentage of capital conservation buffer | 0.625% | |
Maximum | ||
Mutual Holding Company Reorganization and Regulatory Matters | ||
Percentage of minimum Tier 1 capital to risk based assets | 6 | |
Percentage of capital conservation buffer | 2.50% |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of capital levels of the bank (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Actual Capital Amount [Abstract] | ||
Total capital (to risk-weighted assets), Actual amount | $ 205,545 | $ 196,155 |
Total capital (to risk-weighted assets), Minimum Capital Adequacy amount | 111,212 | 102,702 |
Total capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 139,016 | $ 128,377 |
Actual Capital Ratio [Abstract] | ||
Total capital (to risk-weighted assets), Actual ratio | 0.1479 | 0.1528 |
Total capital (to risk-weighted assets), Minimum Capital Adequacy ratio | 0.0800 | 0.0800 |
Total capital (to risk-weighted assets), For Classification as Well-Capitalized ratio | 0.1000 | 0.1000 |
Tier 1 capital Amount [Abstract] | ||
Tier 1 capital (to risk-weighted assets), Actual amount | $ 200,106 | $ 190,941 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy amount | 83,409 | 77,026 |
Tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 111,212 | $ 102,702 |
Tier 1 capital Ratio [Abstract] | ||
Tier 1 capital (to risk-weighted assets), Actual ratio | 0.1439 | 0.1487 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy ratio | 0.0600 | 0.0600 |
Tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital Amount [Abstract] | ||
Common equity tier 1 capital (to risk-weighted assets), Actual amount | $ 200,106 | $ 190,941 |
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy amount | 62,557 | 57,770 |
Common equity tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 90,360 | $ 83,445 |
Common Equity Tier 1 Capital Ratio [Abstract] | ||
Common equity tier 1 capital (to risk-weighted assets), Actual ratio | 0.1439 | 0.1487 |
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy ratio | 0.0450 | 0.0450 |
Common equity tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized ratio | 0.0650 | 0.0650 |
Core (Tier 1) Capital Amount [Abstract] | ||
Core (Tier 1) capital (to adjusted total assets), Actual amount | $ 200,106 | $ 190,941 |
Core (Tier 1) capital (to adjusted total assets), Minimum Capital Adequacy amount | 48,175 | 45,486 |
Core (Tier 1) capital (to adjusted total assets), For Classification as Well-Capitalized amount | $ 60,219 | $ 56,857 |
Core (Tier 1) Capital Ratio [Abstract] | ||
Core (Tier 1) capital (to adjusted total assets), Actual ratio | 0.1662 | 0.1679 |
Core (Tier 1) capital (to adjusted total assets), Minimum Capital Adequacy ratio | 0.0400 | 0.0400 |
Core (Tier 1) capital (to adjusted total assets), For Classification as Well-Capitalized ratio | 0.0500 | 0.0500 |
Equity Securities - Schedule of
Equity Securities - Schedule of equity securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Equity Securities | ||
Equity Securities, at Fair Value | $ 18,879 | $ 19,943 |
Equity Securities - Schedule _2
Equity Securities - Schedule of unrealized gains recognized in net income on equity securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||||
Net (loss) gain recognized on equity securities during the period | $ (430) | $ 93 | $ (1,064) | $ (62) |
Unrealized net (loss) gain recognized on equity securities held at the reporting date | $ (430) | $ 93 | $ (1,064) | $ (62) |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of portfolio of securities available-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1 | $ 1 |
Fair Value | 1 | 1 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1 | 1 |
Fair Value | $ 1 | $ 1 |
Securities Available-for-Sale_2
Securities Available-for-Sale - Schedule of contractual final maturities of securities available-for-sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales of securities available-for-sale | $ 0 | $ 0 |
Amortized Cost | ||
Due after one year but with five years, Amortized cost | 1 | |
Fair Value | ||
Due after one year but with five years, Fair value | 1 | |
Mortgage-backed securities - residential | ||
Amortized Cost | ||
Due after one year but with five years, Amortized cost | 1 | |
Fair Value | ||
Due after one year but with five years, Fair value | $ 1 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities Available-for-Sale | ||
Unrealized loss | $ 0 | $ 0 |
Securities Held-to-Maturity - P
Securities Held-to-Maturity - Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities Held-to-Maturity | ||
Amortized Cost | $ 27,189 | $ 17,880 |
Gross Unrealized Gains | 67 | |
Gross Unrealized Losses | 2,804 | 327 |
Fair Value | 24,385 | 17,620 |
Mortgage-backed securities - residential | ||
Securities Held-to-Maturity | ||
Amortized Cost | 7,276 | 7,863 |
Gross Unrealized Gains | 60 | |
Gross Unrealized Losses | 588 | 60 |
Fair Value | 6,688 | 7,863 |
Government National Mortgage Association | ||
Securities Held-to-Maturity | ||
Amortized Cost | 583 | 656 |
Gross Unrealized Gains | 19 | |
Gross Unrealized Losses | 7 | |
Fair Value | 576 | 675 |
Federal Home Loan Mortgage Corporation | ||
Securities Held-to-Maturity | ||
Amortized Cost | 1,011 | 1,059 |
Gross Unrealized Losses | 92 | 5 |
Fair Value | 919 | 1,054 |
Federal National Mortgage Association | ||
Securities Held-to-Maturity | ||
Amortized Cost | 2,488 | 2,695 |
Gross Unrealized Gains | 23 | |
Gross Unrealized Losses | 161 | 6 |
Fair Value | 2,327 | 2,712 |
Collateralized mortgage obligations - GSE | ||
Securities Held-to-Maturity | ||
Amortized Cost | 3,194 | 3,453 |
Gross Unrealized Gains | 18 | |
Gross Unrealized Losses | 328 | 49 |
Fair Value | 2,866 | 3,422 |
Municipal Bonds | ||
Securities Held-to-Maturity | ||
Amortized Cost | 9,883 | 10,017 |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | 2,130 | 267 |
Fair Value | 7,753 | $ 9,757 |
U.S Treasury securities | ||
Securities Held-to-Maturity | ||
Amortized Cost | 10,030 | |
Gross Unrealized Losses | 86 | |
Fair Value | $ 9,944 |
Securities Held-to-Maturity - C
Securities Held-to-Maturity - Contractual final maturities (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Amortized Cost | |
Due within one year | $ 10,567 |
Due after one but within five years | 1,781 |
Due after five but within ten years | 2,616 |
Due after ten years | 12,225 |
Amortized Cost | 27,189 |
Fair Value | |
Due within one year | 10,625 |
Due after one but within five years | 2,018 |
Due after five but within ten years | 2,510 |
Due after ten years | 9,232 |
Fair Value | $ 24,385 |
Securities Held-to-Maturity - A
Securities Held-to-Maturity - Age of unrealized losses and the fair value (Details) $ in Thousands | Jun. 30, 2022 USD ($) item security | Dec. 31, 2021 USD ($) item security |
Fair Value | ||
Less than 12 Months | $ 24,113 | $ 13,080 |
Total | 24,113 | 13,080 |
Gross Unrealized Losses | ||
Less than 12 Months | 2,804 | 327 |
Total | 2,804 | 327 |
Government National Mortgage Association | ||
Fair Value | ||
Less than 12 Months | 343 | |
Total | 343 | |
Gross Unrealized Losses | ||
Less than 12 Months | 7 | |
Total | 7 | |
Federal Home Loan Mortgage Corporation | ||
Fair Value | ||
Less than 12 Months | 882 | 1,004 |
Total | 882 | 1,004 |
Gross Unrealized Losses | ||
Less than 12 Months | 92 | 5 |
Total | 92 | 5 |
Federal National Mortgage Association | ||
Fair Value | ||
Less than 12 Months | 2,326 | 2,035 |
Total | 2,326 | 2,035 |
Gross Unrealized Losses | ||
Less than 12 Months | 161 | 6 |
Total | 161 | 6 |
Collateralized mortgage obligations - GSE | ||
Fair Value | ||
Less than 12 Months | 2,866 | 907 |
Total | 2,866 | 907 |
Gross Unrealized Losses | ||
Less than 12 Months | 328 | 49 |
Total | 328 | 49 |
Mortgage-backed securities - residential | ||
Fair Value | ||
Less than 12 Months | 6,417 | 3,946 |
Total | 6,417 | 3,946 |
Gross Unrealized Losses | ||
Less than 12 Months | 588 | 60 |
Total | $ 588 | $ 60 |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Number of securities with unrealized loss | security | 12 | 4 |
Municipal Bonds | ||
Fair Value | ||
Less than 12 Months | $ 7,752 | $ 9,134 |
Total | 7,752 | 9,134 |
Gross Unrealized Losses | ||
Less than 12 Months | 2,130 | 267 |
Total | $ 2,130 | $ 267 |
Number of securities with unrealized loss | item | 5 | 3 |
U.S Treasury securities | ||
Fair Value | ||
Less than 12 Months | $ 9,944 | |
Total | 9,944 | |
Gross Unrealized Losses | ||
Less than 12 Months | 86 | |
Total | $ 86 | |
US Treasury Notes | ||
Gross Unrealized Losses | ||
Number of securities with unrealized loss | item | 2 |
Loans Receivable and the Allo_3
Loans Receivable and the Allowance for Loan Losses - Summary of composition of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | $ 1,023,622 | $ 972,851 | ||||
Allowance for loan losses | (5,467) | $ (5,328) | (5,242) | $ (5,094) | $ (5,102) | $ (5,088) |
Deferred loan costs, net | 527 | 484 | ||||
Net loans | 1,018,682 | 968,093 | ||||
Residential real estate | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 113,119 | 120,358 | ||||
Allowance for loan losses | (546) | (510) | (571) | (687) | (699) | (707) |
Residential real estate | One-to-four family | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 5,758 | 7,189 | ||||
Residential real estate | Multi-family | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 83,866 | 84,425 | ||||
Residential real estate | Mixed-use | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 23,495 | 28,744 | ||||
Non-residential real estate | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 26,633 | 50,016 | ||||
Allowance for loan losses | (198) | (340) | (381) | (476) | (501) | (519) |
Construction | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 780,858 | 683,830 | ||||
Allowance for loan losses | (3,581) | (3,392) | (3,143) | (3,196) | (3,144) | (3,068) |
Commercial and industrial | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 102,594 | 118,378 | ||||
Allowance for loan losses | (865) | (958) | (973) | (682) | (756) | (774) |
Consumer | ||||||
Loans Receivable and the Allowance for Loan Losses | ||||||
Loans receivable | 418 | 269 | ||||
Allowance for loan losses | $ (16) | $ (17) | $ (10) | $ (15) | $ (2) | $ (20) |
Loans Receivable and the Allo_4
Loans Receivable and the Allowance for Loan Losses - Narrative (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Loans Receivable and the Allowance for Loan Losses | ||
Loans serviced for the benefit of others | $ 14,368,000 | $ 14,610,000 |
Loans to related parties | $ 0 | $ 0 |
Loans Receivable and the Allo_5
Loans Receivable and the Allowance for Loan Losses - Schedule of analysis of the activity in the allowance for loan losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for loan losses: | ||||||
Ending balance | $ 5,467 | $ 5,328 | $ 5,242 | $ 5,094 | $ 5,102 | $ 5,088 |
Ending balance: collectively evaluated for impairment | 5,467 | 5,242 | ||||
Ending balance | 1,023,622 | 972,851 | ||||
Ending balance: individually evaluated for impairment | 1,634 | 1,622 | ||||
Ending balance: collectively evaluated for impairment | 1,021,988 | 971,229 | ||||
Residential real estate | ||||||
Allowance for loan losses: | ||||||
Ending balance | 546 | 510 | 571 | 687 | 699 | 707 |
Ending balance: collectively evaluated for impairment | 546 | 571 | ||||
Ending balance | 113,119 | 120,358 | ||||
Ending balance: individually evaluated for impairment | 865 | 876 | ||||
Ending balance: collectively evaluated for impairment | 112,254 | 119,482 | ||||
Non-residential real estate | ||||||
Allowance for loan losses: | ||||||
Ending balance | 198 | 340 | 381 | 476 | 501 | 519 |
Ending balance: collectively evaluated for impairment | 198 | 381 | ||||
Ending balance | 26,633 | 50,016 | ||||
Ending balance: individually evaluated for impairment | 769 | 746 | ||||
Ending balance: collectively evaluated for impairment | 25,864 | 49,270 | ||||
Construction | ||||||
Allowance for loan losses: | ||||||
Ending balance | 3,581 | 3,392 | 3,143 | 3,196 | 3,144 | 3,068 |
Ending balance: collectively evaluated for impairment | 3,581 | 3,143 | ||||
Ending balance | 780,858 | 683,830 | ||||
Ending balance: collectively evaluated for impairment | 780,858 | 683,830 | ||||
Commercial and industrial | ||||||
Allowance for loan losses: | ||||||
Ending balance | 865 | 958 | 973 | 682 | 756 | 774 |
Ending balance: collectively evaluated for impairment | 865 | 973 | ||||
Ending balance | 102,594 | 118,378 | ||||
Ending balance: collectively evaluated for impairment | 102,594 | 118,378 | ||||
Consumer | ||||||
Allowance for loan losses: | ||||||
Ending balance | 16 | 17 | 10 | 15 | $ 2 | $ 20 |
Ending balance: collectively evaluated for impairment | 16 | 10 | ||||
Ending balance | 418 | 269 | ||||
Ending balance: collectively evaluated for impairment | 418 | 269 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Ending balance | 261 | $ 111 | 164 | $ 38 | ||
Ending balance: collectively evaluated for impairment | $ 261 | $ 164 |
Loans Receivable and the Allo_6
Loans Receivable and the Allowance for Loan Losses - Schedule of analysis of the activity in the allowance for loan loss by loan class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for loan losses: | ||||
Beginning balance | $ 5,328 | $ 5,102 | $ 5,242 | $ 5,088 |
Charge-offs | (7) | (9) | (17) | (20) |
Recoveries | 146 | 1 | 242 | 9 |
Provision (Benefit) | 17 | |||
Ending balance | 5,467 | 5,094 | 5,467 | 5,094 |
Residential real estate | ||||
Allowance for loan losses: | ||||
Beginning balance | 510 | 699 | 571 | 707 |
Recoveries | 146 | 1 | 189 | 1 |
Provision (Benefit) | (110) | (13) | (214) | (21) |
Ending balance | 546 | 687 | 546 | 687 |
Non-residential real estate | ||||
Allowance for loan losses: | ||||
Beginning balance | 340 | 501 | 381 | 519 |
Recoveries | 53 | |||
Provision (Benefit) | (142) | (25) | (236) | (43) |
Ending balance | 198 | 476 | 198 | 476 |
Construction | ||||
Allowance for loan losses: | ||||
Beginning balance | 3,392 | 3,144 | 3,143 | 3,068 |
Provision (Benefit) | 189 | 52 | 438 | 128 |
Ending balance | 3,581 | 3,196 | 3,581 | 3,196 |
Commercial and industrial | ||||
Allowance for loan losses: | ||||
Beginning balance | 958 | 756 | 973 | 774 |
Provision (Benefit) | (93) | (74) | (108) | (92) |
Ending balance | 865 | 682 | 865 | 682 |
Consumer | ||||
Allowance for loan losses: | ||||
Beginning balance | 17 | 2 | 10 | 20 |
Charge-offs | (7) | (9) | (17) | (20) |
Recoveries | 8 | |||
Provision (Benefit) | 6 | 22 | 23 | 7 |
Ending balance | 16 | 15 | 16 | 15 |
Unallocated | ||||
Allowance for loan losses: | ||||
Beginning balance | 111 | 164 | ||
Provision (Benefit) | 150 | 38 | 97 | 38 |
Ending balance | $ 261 | $ 38 | $ 261 | $ 38 |
Loans Receivable and the Allo_7
Loans Receivable and the Allowance for Loan Losses - Summary of recorded investment, unpaid principal balance and allocated allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Recorded Investment | |||||
Recorded Investment, With no related allowance | $ 1,634 | $ 6,311 | $ 1,634 | $ 6,311 | $ 1,622 |
Recorded Investment | 1,634 | 6,311 | 1,634 | 6,311 | 1,622 |
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance | 1,701 | 6,378 | 1,701 | 6,378 | 1,689 |
Unpaid Principal Balance | 1,701 | 6,378 | 1,701 | 6,378 | 1,689 |
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance | 1,633 | 6,323 | 1,629 | 6,372 | 5,877 |
Average Recorded Investment | 1,633 | 6,323 | 1,629 | 6,372 | 5,877 |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance | 20 | 32 | 36 | 62 | 122 |
Interest Income Recognized | 20 | 32 | 36 | 62 | 122 |
Residential real estate | Multi-family | |||||
Recorded Investment | |||||
Recorded Investment, With no related allowance | 865 | 1,977 | 865 | 1,977 | 876 |
Recorded Investment | 865 | 1,977 | 865 | 1,977 | 876 |
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance | 865 | 1,977 | 865 | 1,977 | 876 |
Unpaid Principal Balance | 865 | 1,977 | 865 | 1,977 | 876 |
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance | 865 | 1,986 | 869 | 1,994 | 1,986 |
Average Recorded Investment | 865 | 1,986 | 869 | 1,994 | 1,986 |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance | 16 | 24 | 22 | 45 | 86 |
Interest Income Recognized | 16 | 24 | 22 | 45 | 86 |
Non-residential real estate | |||||
Recorded Investment | |||||
Recorded Investment, With no related allowance | 769 | 4,334 | 769 | 4,334 | 746 |
Recorded Investment | 769 | 4,334 | 769 | 4,334 | 746 |
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance | 836 | 4,401 | 836 | 4,401 | 813 |
Unpaid Principal Balance | 836 | 4,401 | 836 | 4,401 | 813 |
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance | 768 | 4,337 | 760 | 4,378 | 3,891 |
Average Recorded Investment | 768 | 4,337 | 760 | 4,378 | 3,891 |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance | 4 | 8 | 14 | 17 | 36 |
Interest Income Recognized | $ 4 | $ 8 | $ 14 | $ 17 | $ 36 |
Loans Receivable and the Allo_8
Loans Receivable and the Allowance for Loan Losses - Summary of loans receivable on nonaccrual status (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2022 USD ($) borrower loan | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable, Past Due [Line Items] | ||||
Loans Receivable on Nonaccrual Status | $ 769,000 | $ 769,000 | $ 0 | |
Interest income from a loan that was in non-accrual status | 0 | $ 0 | ||
Interest income that would have been recorded had the loans been on accrual status | $ 7,000 | $ 7,000 | ||
Nonaccrual Loans | loan | 2 | 2 | ||
Non-residential real estate | ||||
Financing Receivable, Past Due [Line Items] | ||||
Nonaccrual Loans | loan | 2 | 2 | ||
Number of borrowers of non accrual loans | borrower | 1 |
Loans Receivable and the Allo_9
Loans Receivable and the Allowance for Loan Losses - Schedule of age analysis of past due loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | $ 1,023,622 | $ 972,851 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,718 | |
Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,718 | |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,021,904 | 972,851 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 113,119 | 120,358 |
Residential real estate | One-to-four family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 5,758 | 7,189 |
Residential real estate | One-to-four family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 5,758 | 7,189 |
Residential real estate | Multi-family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 83,866 | 84,425 |
Residential real estate | Multi-family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 949 | |
Residential real estate | Multi-family | Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 949 | |
Residential real estate | Multi-family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 82,917 | 84,425 |
Residential real estate | Mixed-use | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 23,495 | 28,744 |
Residential real estate | Mixed-use | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 23,495 | 28,744 |
Non-residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 26,633 | 50,016 |
Non-residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 769 | |
Non-residential real estate | Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 769 | |
Non-residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 25,864 | 50,016 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 780,858 | 683,830 |
Construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 780,858 | 683,830 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 102,594 | 118,378 |
Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 102,594 | 118,378 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 418 | 269 |
Consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | $ 418 | $ 269 |
Loans Receivable and the All_10
Loans Receivable and the Allowance for Loan Losses - Summary of credit risk profile by internally assigned grade (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 1,023,622 | $ 972,851 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,022,853 | 972,105 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 769 | 746 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 113,119 | 120,358 |
Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 113,119 | 120,358 |
Non-residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 26,633 | 50,016 |
Non-residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 25,864 | 49,270 |
Non-residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 769 | 746 |
Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 780,858 | 683,830 |
Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 780,858 | 683,830 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 102,594 | 118,378 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 102,594 | 118,378 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 418 | 269 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 418 | $ 269 |
Loans Receivable and the All_11
Loans Receivable and the Allowance for Loan Losses - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Loan and Lease Receivables, Impaired [Abstract] | |||||
Interest income that would have been recognized had the loans performed in accordance with their original terms | $ | $ 18 | $ 33 | $ 42 | $ 76 | |
Less: Interest income included in the results of operations | $ | 14 | 32 | 36 | 62 | |
Total foregone interest | $ | $ 4 | $ 1 | $ 6 | $ 14 | |
Number of loans modified that were deemed troubled debt restructuring | 0 | 0 | |||
Number of TDR loans placed on nonaccrual status | 2 | 2 | |||
Number of loans that had defaulted which were modified in previous twelve months | 0 | 0 | |||
Number of financing receivables, modified by CARES act still in deferral status | 0 | ||||
Performing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of contracts | 2 | 4 | |||
Recorded Investment | $ | $ 865 | $ 865 | $ 1,622 | ||
Residential real estate | Mixed-use | Performing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of contracts | 2 | 2 | |||
Recorded Investment | $ | $ 865 | $ 865 | $ 876 | ||
Non-residential real estate | Performing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of contracts | 2 | ||||
Recorded Investment | $ | $ 746 |
Real Estate Owned ("REO") (Deta
Real Estate Owned ("REO") (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) property | |
Real Estate Owned ("REO") | |||||
Number of foreclosed property owned | property | 1 | 1 | 1 | ||
Value of foreclosed property owned | $ 1,996,000 | $ 1,996,000 | $ 1,996,000 | ||
REO expense including loss on sales and write-downs | $ 21,000 | $ 26,000 | $ 52,000 | $ 68,000 |
Federal Home Loan Bank of New_3
Federal Home Loan Bank of New York ("FHLB") Advances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Advances maturing in: | ||
One year or less | $ 7,000 | $ 7,000 |
After one to three years | 7,000 | 14,000 |
After five years (due 2030) | 7,000 | 7,000 |
FHLB advances | $ 21,000 | $ 28,000 |
Weighted Average Interest Rate | ||
One year or less | 2.83% | 2.79% |
After one to three years | 2.86% | 2.85% |
After five years (due 2030) | 1.61% | 1.61% |
FHLB advances weighted average interest rate (as a percent) | 2.43% | 2.52% |
Federal Home Loan Bank of New_4
Federal Home Loan Bank of New York ("FHLB") Advances - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank of New York ("FHLB") Advances | ||
Advances subject to early call or redemption features | $ 0 | |
Outstanding advances | 21,000 | $ 28,000 |
FHLB | ||
Federal Home Loan Bank of New York ("FHLB") Advances | ||
Maximum borrowing capacity | 24,100 | |
Outstanding advances | 21,000 | |
Atlantic Community Bankers Bank | ||
Federal Home Loan Bank of New York ("FHLB") Advances | ||
Outstanding advances | $ 8,000 | |
Minimum | ||
Federal Home Loan Bank of New York ("FHLB") Advances | ||
Term of the advance | 2 years | |
Maximum | ||
Federal Home Loan Bank of New York ("FHLB") Advances | ||
Term of the advance | 10 years |
Benefits Plans - Net periodic p
Benefits Plans - Net periodic pension expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net periodic pension expense: | ||||
Unrecognized net loss included in accumulated other comprehensive income | $ 7 | $ 8 | $ 14 | $ 16 |
Pension Plan | DRP | ||||
Net periodic pension expense: | ||||
Service cost | 30 | 33 | 60 | 65 |
Interest cost | 14 | 10 | 28 | 20 |
Actuarial loss recognized | 6 | 8 | 13 | 16 |
Total net periodic pension expense included in other non-interest expenses | $ 50 | $ 51 | $ 101 | $ 101 |
Benefits Plans - Narrative (Det
Benefits Plans - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jul. 12, 2021 USD ($) installment $ / shares shares | Jun. 30, 2022 USD ($) installment $ / shares shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) installment $ / shares shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Benefits Plans | ||||||
Balance remaining on the ESOP loan | $ 1,018,682,000 | $ 1,018,682,000 | $ 968,093,000 | |||
401 (K) Plan | ||||||
Benefits Plans | ||||||
Participants maximum contribution (as a percent) | 60% | |||||
Employers matching contribution (as a percent) | 0% | 0% | 0% | 0% | ||
401 (K) Plan | Minimum | ||||||
Benefits Plans | ||||||
Participants maximum contribution (as a percent) | 1% | |||||
401 (K) Plan | Maximum | ||||||
Benefits Plans | ||||||
Participants maximum contribution (as a percent) | 15% | |||||
ESOP 2006 | Employee Stock Ownership Plan Loan | ||||||
Benefits Plans | ||||||
Expense on defined benefit plan. | $ 246,000 | $ 106,000 | $ 504,000 | $ 203,000 | ||
Amount borrowed from company | $ 7,827,260 | $ 5,184,200 | $ 5,184,200 | |||
Common stock shares acquired | shares | 782,726 | 518,420 | ||||
Share price | $ / shares | $ 10 | $ 10 | $ 10 | |||
Interest rate on loans (as a percent) | 3.25% | 8.25% | ||||
Number of installments of loans receivable | installment | 15 | 20 | 20 | |||
Balance remaining on the ESOP loan | $ 1,703,000 | $ 1,703,000 | 1,703,000 | |||
Shares committed to be released | shares | 2,894 | 2,894 | ||||
Dividends on unallocated shares reduced from loan | $ 209,000 | 4,000 | $ 261,000 | 9,000 | ||
Dividends on unallocated shares charged to retained earnings | 146,000 | 11,000 | 182,000 | 23,000 | ||
ESOP 2021 | Employee Stock Ownership Plan Loan | ||||||
Benefits Plans | ||||||
Balance remaining on the ESOP loan | $ 7,270,000 | $ 7,270,000 | $ 7,270,000 | |||
Shares committed to be released | shares | 4,348 | 4,348 | ||||
Pension Plan | SERP | ||||||
Benefits Plans | ||||||
Term of average base salary preceding retirement | 3 years | |||||
Monthly installments | 50% | |||||
Expense on defined benefit plan. | $ 121,000 | $ 132,000 | $ 240,000 | $ 227,000 | ||
2023 | 0 | 0 | ||||
2024 | 0 | 0 | ||||
2025 | 0 | 0 | ||||
2026 | 0 | 0 | ||||
2027 | $ 0 | $ 0 | ||||
Pension Plan | SERP | Minimum | ||||||
Benefits Plans | ||||||
Benefit payment term | 15 years |
Benefits Plans - ESOP shares (D
Benefits Plans - ESOP shares (Details) - Pension Plan - DRP - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Benefits Plans | ||
Allocated shares | $ 607,922 | $ 521,012 |
Shares committed to be released | 43,460 | 86,910 |
Unearned shares | 826,027 | 869,487 |
Total ESOP Shares | 1,477,409 | 1,477,409 |
Less allocated shares distributed to former or retired employees | (112,548) | (106,369) |
Total ESOP Shares Held by Trustee | 1,364,861 | 1,371,040 |
Fair value of unearned shares | $ 9,722,336 | $ 9,677,390 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true |
Finance lease remaining lease terms | 95 years |
Lessee, Finance Lease, Existence of Option to Extend [true false] | true |
Minimum | |
Leases | |
Operating lease remaining lease terms | 2 years |
Operating lease initial lease terms | 5 years |
Maximum | |
Leases | |
Operating lease remaining lease terms | 9 years |
Operating lease initial lease terms | 10 years |
Leases - Schedule of leases of
Leases - Schedule of leases of the Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Leases | |||||
ROU asset | $ 357 | $ 357 | $ 359 | ||
Lease liability | 514 | 514 | 496 | ||
ROU assets | 2,296 | 2,296 | 2,564 | ||
Lease liability | 2,344 | 2,344 | $ 2,604 | ||
Amortization of ROU asset | 1 | $ 1 | 2 | $ 2 | |
Interest on lease liability | 9 | 9 | 19 | 18 | |
Operating Lease Costs | 141 | 141 | 283 | 283 | |
Operating leases | $ 139 | $ 136 | $ 277 | $ 271 | |
Finance lease | 95 years | 95 years | 95 years | ||
Operating leases | 6 years 9 months 21 days | 6 years 9 months 21 days | 7 years 7 days | ||
Finance lease | 9.50% | 9.50% | 9.50% | ||
Operating leases | 1.17% | 1.17% | 1.22% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Maturities of Operating lease liabilities | ||
2022 | $ 272 | |
2023 | 423 | |
2024 | 333 | |
2025 | 302 | |
2026 | 235 | |
Thereafter | 875 | |
Total lease payments | 2,440 | |
Interest | (96) | |
Lease liability | 2,344 | $ 2,604 |
Maturities of Finance lease liabilities | ||
2022 | 23 | |
2023 | 30 | |
2024 | 30 | |
2025 | 30 | |
2026 | 31 | |
Thereafter | 4,158 | |
Total lease payments | 4,302 | |
Interest | (3,788) | |
Lease liability | $ 514 | $ 496 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets carried at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures | ||
Transfer of Assets from Level 1 to 2 | $ 0 | $ 0 |
Transfer of Assets from Level 2 to 1 | 0 | 0 |
Transfer of Liabilities from Level 1 to 2 | 0 | 0 |
Transfer of Liabilities from Level 2 to 1 | 0 | 0 |
Recurring | ||
Fair Value Disclosures | ||
Total assets | 18,880 | 19,944 |
Total Liabilities | 0 | 0 |
Recurring | Mutual funds | ||
Fair Value Disclosures | ||
Total assets | 18,879 | 19,943 |
Recurring | FHLMC | ||
Fair Value Disclosures | ||
Total assets | 1 | 1 |
Level 1 | Recurring | ||
Fair Value Disclosures | ||
Total assets | 18,879 | 19,943 |
Level 1 | Recurring | Mutual funds | ||
Fair Value Disclosures | ||
Total assets | 18,879 | 19,943 |
Level 2 | Recurring | ||
Fair Value Disclosures | ||
Total assets | 1 | 1 |
Level 2 | Recurring | FHLMC | ||
Fair Value Disclosures | ||
Total assets | $ 1 | $ 1 |
Fair Value Disclosures - Asse_2
Fair Value Disclosures - Assets carried at fair value on a non-recurring basis (Details) - Non recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures | ||
Total assets | $ 0 | $ 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Value Disclosures - Qualit
Fair Value Disclosures - Qualitative information about non-recurring Level III fair value measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Non recurring | ||
Fair Value Disclosures | ||
Fair value | $ 0 | $ 0 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying amounts and estimated fair value of our financial instruments (Details) - Non recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures | ||
Total assets | $ 0 | $ 0 |
Carrying Amount | Deposits- liabilities | ||
Fair Value Disclosures | ||
Financial Liabilities | 928,600 | 927,164 |
Carrying Amount | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 21,000 | 28,000 |
Carrying Amount | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 86,227 | 152,269 |
Carrying Amount | Certificates of deposit. | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Carrying Amount | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,879 | 19,943 |
Carrying Amount | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | 1 |
Carrying Amount | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 27,189 | 17,880 |
Carrying Amount | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | 1,018,682 | 968,093 |
Carrying Amount | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 1,238 | 1,569 |
Carrying Amount | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 5,232 | 4,283 |
Fair Value | Deposits- liabilities | ||
Fair Value Disclosures | ||
Financial Liabilities | 926,234 | 929,003 |
Fair Value | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 19,987 | 28,283 |
Fair Value | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 86,227 | 152,269 |
Fair Value | Certificates of deposit. | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Fair Value | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,879 | 19,943 |
Fair Value | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | 1 |
Fair Value | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 24,385 | 17,620 |
Fair Value | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | 1,009,632 | 968,247 |
Fair Value | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 1,238 | 1,569 |
Fair Value | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 5,232 | 4,283 |
Level 1 | Fair Value | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 86,227 | 152,269 |
Level 1 | Fair Value | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,879 | 19,943 |
Level 2 | Fair Value | Deposits- liabilities | ||
Fair Value Disclosures | ||
Financial Liabilities | 926,234 | 929,003 |
Level 2 | Fair Value | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 19,987 | 28,283 |
Level 2 | Fair Value | Certificates of deposit. | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Level 2 | Fair Value | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | 1 |
Level 2 | Fair Value | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 24,385 | 17,620 |
Level 2 | Fair Value | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 1,238 | 1,569 |
Level 2 | Fair Value | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 5,232 | 4,283 |
Level 3 | Fair Value | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | $ 1,009,632 | $ 968,247 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue Recognition | ||||
Deposit-related fees and charges | $ 18 | $ 17 | $ 36 | $ 34 |
Loan-related fees and charges | 382 | 220 | 553 | 368 |
Electronic banking fees and charges | 227 | 156 | 429 | 313 |
Gain on disposition of equipment | 46 | 7 | 46 | 7 |
Income from bank owned life insurance | 150 | 148 | 297 | 295 |
Investment advisory fees | 120 | 124 | 257 | 242 |
Unrealized gain (loss) on equity securities | (430) | 93 | (1,064) | (62) |
Miscellaneous | 23 | 13 | 40 | 24 |
Total Non-Interest Income | $ 536 | $ 778 | $ 594 | $ 1,221 |
Other Non-Interest Expenses (De
Other Non-Interest Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Non-Interest Expenses | ||||
Other | $ 721 | $ 476 | $ 1,337 | $ 965 |
Service contracts | 271 | 196 | 528 | 425 |
Consulting expense | 202 | 369 | 460 | 578 |
Telephone | 150 | 146 | 291 | 287 |
Directors compensation | 142 | 125 | 281 | 269 |
Audit and accounting | 95 | 132 | 300 | 256 |
Insurance | 96 | 75 | 178 | 148 |
Director, officer, and employee expense | 70 | 64 | 128 | 126 |
Legal fees | 203 | 86 | 357 | 103 |
Office supplies and stationary | 37 | 29 | 77 | 65 |
Recruiting expense | 18 | 1 | 45 | 1 |
Other non-interest expenses | $ 2,005 | $ 1,699 | $ 3,982 | $ 3,223 |