Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 11, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.01 per share | |
Trading Symbol | NECB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,092,179 | |
Entity Central Index Key | 0001847398 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and amounts due from depository institutions | $ 14,330,000 | $ 13,210,000 |
Interest-bearing deposits | 62,715,000 | 82,098,000 |
Total cash and cash equivalents | 77,045,000 | 95,308,000 |
Certificates of deposit | 100,000 | 100,000 |
Equity securities | 18,266,000 | 18,041,000 |
Securities available-for-sale, at fair value | 0 | 1,000 |
Securities held-to-maturity (net of allowance for credit losses of $136, fair value of $23,084 and $22,865, respectively) | 26,108,000 | 26,395,000 |
Loans receivable | 1,217,321,000 | |
Loans receivable | 1,314,505,000 | |
Deferred loan costs, net | 372,000 | |
Deferred loan costs, net | 369,000 | |
Allowance for credit losses | (5,474,000) | |
Allowance for credit losses | (4,066,000) | (5,474,000) |
Net loans | 1,212,219,000 | |
Net loans | 1,310,808,000 | |
Premises and equipment, net | 25,843,000 | 26,063,000 |
Investments in restricted stock, at cost | 923,000 | 1,238,000 |
Bank owned life insurance | 26,046,000 | 25,896,000 |
Accrued interest receivable | 9,919,000 | 8,597,000 |
Goodwill | 200,000 | 200,000 |
Real estate owned | 1,456,000 | 1,456,000 |
Property held for investment | 1,435,000 | 1,444,000 |
Right of Use Assets - Operating | 2,182,000 | 2,312,000 |
Right of Use Assets - Financing | 354,000 | 355,000 |
Other assets | 2,055,000 | 5,338,000 |
Total assets | 1,502,740,000 | 1,424,963,000 |
Deposits: | ||
Non-interest bearing | 330,573,000 | 376,302,000 |
Interest bearing | 877,820,000 | 745,653,000 |
Total deposits | 1,208,393,000 | 1,121,955,000 |
Advance payments by borrowers for taxes and insurance | 3,753,000 | 2,369,000 |
Federal Home Loan Bank advances | 14,000,000 | 21,000,000 |
Lease Liability - Operating | 2,234,000 | 2,363,000 |
Lease Liability - Financing | 542,000 | 533,000 |
Accounts payable and accrued expenses | 11,315,000 | 14,754,000 |
Total liabilities | 1,240,237,000 | 1,162,974,000 |
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; 15,325,828 shares and 16,049,454 shares issued and outstanding, respectively | 153,000 | 161,000 |
Additional paid-in capital | 126,462,000 | 136,434,000 |
Unearned Employee Stock Ownership Plan ("ESOP") shares | (7,215,000) | (7,432,000) |
Retained earnings | 142,940,000 | 132,670,000 |
Accumulated other comprehensive income | 163,000 | 156,000 |
Total stockholders' equity | 262,503,000 | 261,989,000 |
Total liabilities and stockholders' equity | $ 1,502,740,000 | $ 1,424,963,000 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Securities held-to-maturity, allowance for credit losses | $ 136 | |
Securities held-to-maturity, fair value | $ 23,084 | $ 22,865 |
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 | 15,325,828 | 16,049,454 |
Common stock, shares outstanding | 15,325,828 | 16,049,454 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
INTEREST INCOME: | ||
Loans | $ 27,575 | $ 13,061 |
Interest-earning deposits | 703 | 54 |
Securities | 233 | 158 |
Total Interest Income | 28,511 | 13,273 |
INTEREST EXPENSE: | ||
Deposits | 5,552 | 1,178 |
Borrowings | 112 | 161 |
Financing lease | 9 | 9 |
Total Interest Expense | 5,673 | 1,348 |
Net Interest Income | 22,838 | 11,925 |
Provision for credit loss | 1 | |
Net Interest Income after Provision for Credit Loss | 22,837 | 11,925 |
NON-INTEREST INCOME: | ||
Other loan fees and service charges | 607 | 391 |
Earnings on bank owned life insurance | 150 | 148 |
Investment advisory fees | 117 | 137 |
Unrealized gain (loss) on equity securities | 225 | (634) |
Other | 16 | 16 |
Total Non-Interest Income | 1,115 | 58 |
NON-INTEREST EXPENSES: | ||
Salaries and employee benefits | 4,542 | 3,828 |
Occupancy expense | 669 | 603 |
Equipment | 304 | 290 |
Outside data processing | 515 | 436 |
Advertising | 49 | 54 |
Real estate owned expense | 21 | 31 |
Other | 2,091 | 1,978 |
Total Non-Interest Expenses | 8,191 | 7,220 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 15,761 | 4,763 |
PROVISION FOR INCOME TAXES | 4,517 | 1,118 |
NET INCOME | $ 11,244 | $ 3,645 |
EARNINGS PER COMMON SHARE-BASIC (in dollars per share) | $ 0.77 | $ 0.23 |
EARNINGS PER COMMON SHARE-DILUTED (in dollars per share) | $ 0.77 | |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC (in shares) | 14,649 | 15,523 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-DILUTED (in shares) | 14,696 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Income | $ 11,244 | $ 3,645 | |
Reclassification adjustments out of accumulated other comprehensive income: | |||
Amortization of actuarial loss (gain) | [1] | (8) | 7 |
Actuarial loss arising during period | 18 | 17 | |
Total | 10 | 24 | |
Income tax effect | [2] | (3) | (5) |
Total other comprehensive income | 7 | 19 | |
Total Comprehensive Income | $ 11,251 | $ 3,664 | |
[1] Amounts are included in salaries and employees benefits in the consolidated statements of income as part of net periodic pension cost. See Note 9 for further information. Amounts are included in provision for income taxes in the 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 Cumulative effect of adoption of ASU 2016-13 | Retained Earnings | Accumulated Other Comprehensive Loss | Cumulative effect of adoption of ASU 2016-13 | Total |
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 | ||||||||
Net income | 3,645 | 3,645 | ||||||
Other comprehensive income | 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, 2022 | $ 161 | 136,434 | (7,432) | $ (99) | 132,670 | 156 | $ (99) | 261,989 |
Balance at beginning of period (shares) at Dec. 31, 2022 | 16,049,454 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 11,244 | 11,244 | ||||||
Other comprehensive income | 7 | 7 | ||||||
Cash dividend declared | (875) | (875) | ||||||
Stock repurchases | $ (8) | (10,514) | (10,522) | |||||
Stock repurchases (shares) | (723,626) | |||||||
Compensation expense related to restricted stock awards | 241 | 241 | ||||||
Compensation expense related to stock options | 192 | 192 | ||||||
ESOP shares earned | 109 | 217 | 326 | |||||
Balance at end of period at Mar. 31, 2023 | $ 153 | $ 126,462 | $ (7,215) | $ 142,940 | $ 163 | $ 262,503 | ||
Balance at end of period (shares) at Mar. 31, 2023 | 15,325,828 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Cash dividend declared per share | $ 0.06 | $ 0.06 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 11,244 | $ 3,645 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities premiums and discounts, net | 10 | 1 |
Provision for credit losses | 1 | |
Depreciation | 316 | 299 |
Net amortization of deferred loan fees and costs | 119 | 132 |
Deferred income tax benefit | (89) | (26) |
Unrealized (gain) loss recognized on equity securities | (225) | 634 |
Earnings on bank owned life insurance | (150) | (148) |
ESOP compensation expense | 326 | 258 |
Compensation expense related to stock options | 192 | |
Compensation expense related to restricted stock | 241 | |
Increase in accrued interest receivable | (1,322) | (460) |
Decrease in other assets | 3,543 | 1,285 |
Decrease in accounts payable - loan closing | (2,705) | (2,616) |
Decrease in accounts payable and accrued expenses | (552) | (2,176) |
Net Cash Provided by Operating Activities | 10,949 | 828 |
Cash Flows from Investing Activities: | ||
Net increase in loans | (102,613) | (34,514) |
Proceeds from sale of loans | 3,708 | 251 |
Principal repayments on securities available-for-sale | 1 | |
Principal repayments on securities held-to-maturity | 142 | 240 |
Redemptions of restricted stock | 315 | 315 |
Purchases of premises and equipment | (96) | (1,883) |
Net Cash Used in Investing Activities | (98,543) | (35,591) |
Cash Flows from Financing Activities: | ||
Net increase in deposits | 86,438 | 64,774 |
Repayment of FHLB of NY advances | (7,000) | (7,000) |
Stock repurchases | (10,522) | |
Increase in advance payments by borrowers for taxes and insurance | 1,384 | 387 |
Cash dividends paid | (969) | (983) |
Net Cash Provided by Financing Activities | 69,331 | 57,178 |
Net (Decrease) Increase in Cash and Cash Equivalents | (18,263) | 22,415 |
Cash and Cash Equivalents - Beginning | 95,308 | 152,269 |
Cash and Cash Equivalents - Ending | 77,045 | 174,684 |
Supplementary Cash Flows Information: | ||
Income taxes paid | 371 | |
Interest paid | 5,621 | 1,322 |
Supplementary Disclosure of Non-Cash Investing and Financing Activities: | ||
Dividends declared and not paid | $ 924 | $ 983 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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 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, and Sullivan Counties in New York and Essex, Middlesex and Norfolk Counties in Massachusetts and three loan production offices located in White Plains, New York, New City, New York, and Danvers, Massachusetts. 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, 2022. 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 are used in connection with the determination of the allowance for credit losses, the review of the need for a valuation allowance of the Company’s deferred tax assets and the fair value of financial instruments. Accounting Pronouncements Adopted in 2023: Effective January 1, 2023, the Company adopted Accounting Standards Topic 326, “Financial Instruments – Credit Losses” which replaced the previously existing U.S. GAAP “incurred loss” approach to “expected credit losses” approach, which is referred as Current Expected Credit Losses (“CECL”). CECL measures the credit loss associated with financial assets carried at amortize cost, including loan receivables, held-to-maturity debt securities, off balance sheet credit exposures. The company adopted Topic 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balances sheet exposures. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Upon adoption, we recorded a cumulative-effect adjustment totaling retained earnings. The transition adjustment includes the adoption and changes to the three applicable components of the allowance for credit losses (“ACL”): a decrease of The following table illustrates the impact of adopting ASC 326: January 1, 2023 Pre-adoption Adoption Impact As Reported (In Thousands) Assets ACL on debt securities held-to-maturity Municipal Bonds $ - $ 132 $ 132 ACL on loan receivables Residential real estate 528 895 1,423 Non-residential real estate 131 7 138 Construction 3,835 (2,086) 1,749 Commercial and industrial 955 (437) 518 Consumer 18 44 62 Unallocated 7 (7) - Liabilities ACL for off-balance sheet exposure - 1,586 1,586 $ 5,474 $ 134 $ 5,608 Allowance for Credit Losses - Loans The allowance for credit losses related to loans is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses related to loans is measured on a collective (pool) basis when similar risk characteristics exist. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses related to loans when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, non-residential real estate, construction, commercial and industrial business, and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. The Company estimates the allowance for credit losses related to loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the renewal option is included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company. Also included in the allowance for credit losses related to loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, might not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the most severe loss periods identified in the historical loan charge-offs of the Company. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on the loan’s disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, the loan’s observable market price or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Allowance for Credit Losses – Held-to-Maturity Debt Securities The allowance for credit losses related to held-to-maturity debt securities is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of held-to-maturity debt securities to present the net amount expected to be collected on the held-to-maturity debt securities. Losses, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When an investment is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. Allowance for Credit Losses Related to Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses related to off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2023 | |
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. The Bank met all capital adequacy requirements to which it was subject as of March 31, 2023 and December 31, 2022. 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 March 31, 2023: Total capital (to risk-weighted assets) $ 237,412 14.11 % $ ≥ 134,605 ≥ 8.00 % $ ≥ 168,256 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 231,855 13.78 ≥ 100,954 ≥ 6.00 ≥ 134,605 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 231,855 13.78 ≥ 75,715 ≥ 4.50 ≥ 109,367 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 231,855 16.21 ≥ 57,202 ≥ 4.00 ≥ 71,503 ≥ 5.00 As of December 31, 2022: Total capital (to risk-weighted assets) $ 222,728 13.66 % $ ≥ 130,429 ≥ 8.00 % $ ≥ 163,036 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 97,822 ≥ 6.00 ≥ 130,429 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 73,366 ≥ 4.50 ≥ 105,973 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 217,283 16.50 ≥ 52,687 ≥ 4.00 ≥ 65,858 ≥ 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 | 3 Months Ended |
Mar. 31, 2023 | |
Equity Securities | |
Equity Securities | Note 3 — Equity Securities The following table is the schedule of equity securities at March 31, 2023 and December 31, 2022. 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 within our delineated lending areas, including those in majority minority census tracts. March 31, December 31, 2023 2022 (In Thousands) Equity Securities, at Fair Value $ 18,266 $ 18,041 The following is a summary of unrealized gain or loss recognized in net income on equity securities during the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (In Thousands) Net gain (loss) recognized on equity securities during the period $ 225 $ (634) Less: Net losses realized on the sale of equity securities during the period — — Unrealized net gain (loss) recognized on equity securities held at the reporting date $ 225 $ (634) |
Securities Available-for-Sale
Securities Available-for-Sale | 3 Months Ended |
Mar. 31, 2023 | |
Securities Available-for-Sale | |
Securities Available-for-Sale | Note 4 — Securities Available-for-Sale The Company’s portfolio of securities available-for-sale totaled zero and $1,000 at March 31, 2023 and December 31, 2022, respectively. The following table is the schedule of securities available-for-sale at December 31, 2022: December 31, 2022 Gross Gross Allowance Amortized Unrealized Unrealized for Fair Cost Gains Losses Credit Loss 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 March 31, 2023 and December 31, 2022. At March 31, 2023 and December 31, 2022, the Company had no unrealized loss. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022. March 31, 2023 Gross Gross Allowance Amortized Unrealized Unrealized Fair for Cost Gains Losses Value Credit Loss (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 512 $ $ 13 $ 499 $ — Federal Home Loan Mortgage Corporation 939 — 116 823 — Federal National Mortgage Association 2,229 — 230 1,999 — Collateralized mortgage obligations – GSE 3,017 — 492 2,525 — Total mortgage-backed securities 6,697 — 851 5,846 — Municipal Bonds 9,541 — 2,269 7,272 136 U.S. Treasury securities 10,006 — 40 9,966 — $ 26,244 $ — $ 3,160 $ 23,084 $ 136 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 523 $ — $ 18 $ 505 Federal Home Loan Mortgage Corporation 961 — 129 832 Federal National Mortgage Association 2,308 — 250 2,058 Collateralized mortgage obligations – GSE 3,043 — 506 2,537 Total mortgage-backed securities 6,835 — 903 5,932 Municipal Bonds 9,546 — 2,524 7,022 U.S. Treasury securities 10,014 — 103 9,911 $ 26,395 $ — $ 3,530 $ 22,865 Contractual final maturities of mortgage-backed securities, municipal bonds, U.S. Treasury securities were as follows at March 31, 2023: March 31, 2023 Amortized Fair Cost Value (In Thousands) Due within one year $ 10,552 $ 10,432 Due after one but within five years 1,610 1,288 Due after five but within ten years 3,011 2,470 Due after ten years 11,071 8,894 $ 26,244 $ 23,084 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 following table presents the activity in the allowance for credit losses for debt securities held-to-maturity: Municipal Bonds Balance – December 31, 2022 $ - Impact of adopting ASC 326 132 Provision for credit loss 4 Balance – March 31, 2023 $ 136 The age of unrealized losses and the fair value of related securities held-to-maturity, for which an allowance for credit losses was not deemed necessary, 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) March 31, 2023: Mortgage-backed securities - residential: Government National Mortgage Association $ 499 $ 13 $ — $ — $ 499 $ 13 Federal Home Loan Mortgage Corporation — — 823 116 823 116 Federal National Mortgage Association — — 1,996 230 1,996 230 Collateralized mortgage obligations – GSE — — 2,525 492 2,525 492 Total mortgage-backed securities 499 13 5,344 838 5,843 851 U.S. Treasury securities 9,966 40 — — 9,966 40 $ 10,465 $ 53 $ 5,344 $ 838 $ 15,809 $ 891 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, 2022: Mortgage-backed securities - residential: Government National Mortgage Association $ 505 $ 18 $ — $ — $ 505 $ 18 Federal Home Loan Mortgage Corporation — — 824 129 824 129 Federal National Mortgage Association 478 33 1,580 217 2,058 250 Collateralized mortgage obligations – GSE 1,777 344 759 162 2,536 506 Total mortgage-backed securities 2,760 395 3,163 508 5,923 903 Municipal Bonds 444 39 6,578 2,485 7,022 2,524 U.S. Treasury securities 9,911 103 — — 9,911 103 $ 13,115 $ 537 $ 9,741 $ 2,993 $ 22,856 $ 3,530 At March 31, 2023, thirty-four 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, 2022, there were thirty-five Credit Quality Indicators The held to maturity securities portfolio consists of agency mortgage-backed securities, U.S. Treasuries and municipal bonds. All agency mortgage-backed securities and U.S. Treasuries are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The six municipal bonds in the portfolio carry no lower than A ratings from the rating agencies at March 31, 2023 and have a long history of no credit losses. The Company regularly monitors the municipal bonds sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period. |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Loans Receivable and the Allowance for Credit Losses | |
Loans Receivable and the Allowance for Credit Losses | Note 6 — Loans Receivable and the Allowance for Credit Losses Loans are stated at unpaid principal balances plus net deferred loan origination fees and costs less an allowance for credit 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 March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 (In Thousands) Residential real estate: One-to-four family $ 5,401 $ 5,467 Multi-family 124,996 123,385 Mixed-use 29,096 21,902 Total residential real estate 159,493 150,754 Non-residential real estate 21,662 25,324 Construction 1,008,781 930,628 Commercial and industrial 123,533 110,069 Consumer 1,036 546 Total Loans 1,314,505 1,217,321 Deferred loan costs, net 369 372 Allowance for credit losses (4,066) (5,474) $ 1,310,808 $ 1,212,219 Loans serviced for the benefit of others totaled approximately $26,112,000 and $22,350,000 at March 31, 2023 and December 31, 2022, respectively. The value of mortgage servicing rights was not material at March 31, 2023 and December 31, 2022. The allowance for credit losses on loans 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 credit losses is increased by the provision for credit losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for credit 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 credit losses on loans 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 relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. 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 credit losses based upon the calculation methodology described in Note 1, and loans receivable by loan class and credit loss method at March 31, 2023 and December 31, 2022: At March 31, 2023: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Ending balance $ 1,474 $ 122 $ 1,842 $ 506 $ 122 $ — $ 4,066 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 1,474 $ 122 $ 1,842 $ 506 $ 122 $ — $ 4,066 Loans receivable: Ending balance $ 159,493 $ 21,662 $ 1,008,781 $ 123,533 $ 1,036 $ — $ 1,314,505 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 159,493 $ 21,662 $ 1,008,781 $ 123,533 $ 1,036 $ — $ 1,314,505 At December 31, 2022: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Loans receivable: Ending balance $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ — $ 1,217,321 Ending balance: individually evaluated for impairment $ 855 $ — $ — $ — $ — $ — $ 855 Ending balance: collectively evaluated for impairment $ 149,899 $ 25,324 $ 930,628 $ 110,069 $ 546 $ — $ 1,216,466 The activity in the allowance for credit loss by loan class for the three months ended March 31, 2023 and 2022 was as follows: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Balance - December 31, 2022 $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Impact of adopting ASC 326 895 7 (2,086) (437) 44 (7) (1,584) Charge-offs — — — — (21) — (21) Recoveries — — — — — — — Provision (Benefit) 51 (16) 93 (12) 81 — 197 Balance -March 31, 2023 $ 1,474 $ 122 $ 1,842 $ 506 $ 122 $ — $ 4,066 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 — — — — (10) — (10) Recoveries 43 53 — — — — 96 Provision (Benefit) (104) (94) 249 (15) 17 (53) — Balance - March 31, 2022 $ 510 $ 340 $ 3,392 $ 958 $ 17 $ 111 $ 5,328 The Company has no individually evaluated loans at March 31, 2023, and there was no interest income recognized from individually evaluated loans as of March 31, 2023. The following table shows our recorded investment, unpaid principal balance and allocated allowance for credit losses for loans that were considered impaired as of and for the periods presented: As of and for the Three months Ended March 31, 2022: Three Months Ended March 31, 2022 Recorded Unpaid Principal Related Average Recorded Interest Income 2022 Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 865 $ 865 $ — $ 871 $ 6 Non-residential real estate 766 833 — 756 10 Construction — — — — — Commercial and industrial — — — — — 1,631 1,698 — 1,627 16 With an allowance recorded — — — — — Total: Residential real estate-Multi-family 865 865 — 871 6 Non-residential real estate 766 833 — 756 10 Construction — — — — — Commercial and industrial — — — — — $ 1,631 $ 1,698 $ — $ 1,627 $ 16 As of and for the Year Ended December 31, 2022: Recorded Unpaid Principal Related Average Recorded Interest Income 2022 Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 855 $ 769 $ — $ 863 $ 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — 855 769 — 1,248 57 With an allowance recorded — — — — — Total: Residential real estate-Multi-family 855 769 — 863 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — $ 855 $ 769 $ — $ 1,248 $ 57 There were no non-accrual loans at March 31, 2023 and December 31, 2022, respectively. The following tables provide information about delinquencies in our loan portfolio at the dates indicated. Age Analysis of Past Due Loans as of March 31, 2023: 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 $ — $ — $ — $ — $ 5,401 $ 5,401 $ — Multi-family — — — — 124,996 124,996 — Mixed-use — — — — 29,096 29,096 — Non-residential real estate — — — — 21,662 21,662 — Construction loans — — — — 1,008,781 1,008,781 — Commercial and industrial loans — — — — 123,533 123,533 — Consumer — — — — 1,036 1,036 — $ — $ — $ — $ — $ 1,314,505 $ 1,314,505 $ — Age Analysis of Past Due Loans as of December 31, 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 $ — $ — $ — $ — $ 5,467 $ 5,467 $ — Multi-family — 946 — 946 122,439 123,385 — Mixed-use — — — — 21,902 21,902 — Non-residential real estate — — — — 25,324 25,324 — Construction loans — — — — 930,628 930,628 — Commercial and industrial loans — — — — 110,069 110,069 — Consumer — — — — 546 546 — $ — $ 946 $ — $ 946 $ 1,216,375 $ 1,217,321 $ — Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard – Loans which are inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful The following table presents the risk category of loans at March 31, 2023 by loan segment and vintage year: Revolving Revolving Term Loans Amortized Costs Basis by Origination Year Loans Loans Amortized Converted March 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate Risk Rating Pass $ 21,317 $ 58,791 $ 16,360 $ 10,871 $ 1,384 $ 49,848 $ - $ - $ 158,571 Special Mention - - - 922 - - - - 922 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 21,317 $ 58,791 $ 16,360 $ 11,793 $ 1,384 $ 49,848 $ - $ - $ 159,493 Residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-residential real estate Risk Rating Pass $ - $ 256 $ 2,217 $ 1,009 $ 387 $ 17,793 $ - $ - $ 21,662 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ - $ 256 $ 2,217 $ 1,009 $ 387 $ 17,793 $ - $ - $ 21,662 Non-residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction - Risk Rating Pass $ 46,203 $ 470,380 $ 303,372 $ 93,220 $ 45,091 $ 50,515 $ - $ - $ 1,008,781 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 46,203 $ 470,380 $ 303,372 $ 93,220 $ 45,091 $ 50,515 $ - $ - $ 1,008,781 Construction Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial and industrial - Risk Rating Pass $ 15,027 $ 32,678 $ 28,357 $ 7,905 $ 4,710 $ 33,247 $ - $ 1,609 $ 123,533 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 15,027 $ 32,678 $ 28,357 $ 7,905 $ 4,710 $ 33,247 $ - $ 1,609 $ 123,533 Commercial and industrial Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer - Risk Rating Pass $ 1,013 $ - $ - $ - $ - $ 23 $ - $ - $ 1,036 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 1,013 $ - $ - $ - $ - $ 23 $ - $ - $ 1,036 Consumer Current period gross charge-offs $ 21 $ - $ - $ - $ - $ - $ - $ - $ 21 Total - Risk Rating Pass $ 83,560 $ 562,105 $ 350,306 $ 113,005 $ 51,572 $ 151,426 $ - $ 1,609 $ 1,313,583 Special Mention - - - 922 - - - - 922 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 83,560 $ 562,105 $ 350,306 $ 113,927 $ 51,572 $ 151,426 $ - $ 1,609 $ 1,314,505 There were no non-performing loans at March 31, 2023. The following table provides certain information related to the credit quality of our loan portfolio. Credit Risk Profile by Internally Assigned Grade as of December 31, 2022: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 148,953 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,215,520 Special Mention 946 — — — — 946 Substandard 855 — — — — 855 Doubtful — — — — — — $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,217,321 Modifications to Borrowers Experiencing Financial Difficulty: Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. There were no loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2023 or the year ended December 31, 2022. Allowance for Credit Losses on Off-Balance Sheet Commitments: The following table presents the activity in the allowance for credit losses related to off-balance sheet commitments, that is included in Accounts Payable and Accrued Expenses on the consolidated statement of financial condition, for the three months ended March 31, 2023: Allowance for Credit Loss Balance – December 31, 2022 $ - Impact of adopting ASC 326 1,586 Provision for credit loss (200) Balance – March 31, 2023 $ 1,386 |
Real Estate Owned ("REO")
Real Estate Owned ("REO") | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate Owned ("REO") | |
Real Estate Owned ("REO") | Note 7 — Real Estate Owned (“REO”) The Company owned one foreclosed property valued at approximately $1,456,000 at March 31, 2023 and $1,456,000 at December 31, 2022, 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 for the three months ended March 31, 2023 and 2022, respectively. |
Federal Home Loan Bank of New Y
Federal Home Loan Bank of New York ("FHLB") Advances | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Advances maturing in: One year or less $ 7,000 2.86 % $ 7,000 2.83 % After one to three years — — % 7,000 2.86 % After five years (due 2030) 7,000 1.61 % 7,000 1.61 % $ 14,000 2.24 % $ 21,000 2.43 % At March 31, 2023, 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 March 31, 2023, 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 March 31, 2023, these unpledged qualifying mortgage loans were not pledged to any company other than the FHLB. At March 31, 2023, the Company had the ability to borrow |
Benefits Plans
Benefits Plans | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (Dollars In Thousands) Net periodic pension expense: Service cost $ 31 $ 30 Interest cost 10 14 Actuarial (gain) loss recognized (8) 7 Total net periodic pension expense included in other non-interest expenses $ 33 $ 51 Unrecognized net loss of $18,000 and $17,000 for the three months ended March 31, 2023 and 2022, 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 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 benefits next five years Expenses of $60,000 and $119,000 for the three months, 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 March 31, 2023, 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 of their annual compensation up to the maximum permitted under the Internal Revenue Code. The Company provided 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 2023 and December 31, 2022. The balance remaining on the second ESOP loan was 2023 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 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 for the three months ended March 31, 2023 and 2022, respectively. Dividends on unallocated shares, which totaled approximately for the three months ended March 31, 2023 and 2022, are recorded as a reduction of the ESOP loan. Dividends on allocated shares, which totaled approximately ESOP shares are summarized as follows: March 31, December 31, 2023 2022 Allocated shares 694,848 607,922 Shares committed to be released 21,730 86,920 Unearned shares 760,831 782,567 Total ESOP Shares 1,477,409 1,477,409 Less allocated shares distributed to former or retired employees (132,012) (122,280) Total ESOP Shares Held by Trustee 1,345,397 1,355,129 Fair value of unearned shares $ 9,982,103 $ 11,675,897 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
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 . Most operating lease agreements consist of initial lease terms ranging between 5 the term. The finance lease has a remaining lease term of . The payment structure of all leases is fixed rental payments with lease payments increasing on pre-determined dates at either a predetermined amount or change in the consumer price index. 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 March 31, 2023 and December 31, 2022, the quantitative data relating to the Company’s leases are as follows (in thousands): March 31, December 31, 2023 2022 Finance Lease Amounts: ROU asset $ 354 $ 355 Lease liability $ 542 $ 533 Operating Lease Amounts: ROU assets $ 2,182 $ 2,312 Lease liabilities $ 2,234 $ 2,363 Weighted-average remaining lease term Finance lease 93.75 years 94 years Operating leases 6.07 years 6.19 years Weighted-average discount rate Finance lease 9.50 % 9.50 % Operating leases 1.46 % 1.50 % The components of lease expense and cash flow information related to leases as follows: Three Months Ended March 31, 2023 2022 (Dollars In Thousands) Finance Lease Cost Amortization of ROU asset $ 1 $ 1 Interest on lease liability $ 9 $ 9 Operating Lease Costs $ 144 $ 142 Cash paid for amounts included in the measurement of lease liabilities Finance lease $ — $ — Operating leases $ 142 $ 138 Maturities of lease liabilities at March 31, 2023 are as follows (in thousands): Operating Finance Leases Lease Years ended December 31: 2023 $ 380 $ 23 2024 436 30 2025 398 30 2026 235 31 2027 239 33 Thereafter 636 4,016 Total lease payments $ 2,324 $ 4,163 Interest (90) (3,621) Lease liability $ 2,234 $ 542 |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: 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 March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 Assets: Marketable equity securities: Mutual funds $ 18,266 $ 18,041 $ — $ — $ — $ — $ 18,266 $ 18,041 Mortgage-backed securities FHLMC — — — 1 — — — 1 Total assets $ 18,266 $ 18,041 $ — $ 1 $ — $ — $ 18,266 $ 18,042 There were no transfers between Level 1 and 2 during the three months ended March 31, 2023 or the year ended December 31, 2022. The Company did t have any liabilities that were carried at fair value on a recurring basis at March 31, 2023 and December 31, 2022. The following table sets forth the Company’s assets that are carried at fair value on a non-recurring basis and the level that was used to determine their fair value, at March 31, 2023 and December 31: 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) Non-Recurring Basis March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 (In Thousands) Assets: Loans individually evaluated $ — $ — $ — $ — $ — $ 855 $ — $ 855 Real estate owned — — — — — 1,456 — 1,456 Total assets $ — $ — $ — $ — $ — $ 2,311 $ — $ 2,311 The Company did not have any assets that were carried at fair value on a non-recurring basis at March 31, 2023. The following tables present the qualitative information about non-recurring Level 3 fair value measurements of financial instruments at December 31, 2022: At December 31, 2022 Fair Valuation Unobservable Weighted Value Technique Input Range Average (In Thousands) Assets: Impaired loans $ 855 Income approach Capitalization rate 5.60 % 5.60 % Real estate owned 1,456 Income approach Capitalization rate 12.00 % 12.00 % The Company did not have any liabilities that were carried at fair value on a non-recurring basis at March 31, 2023 and December 31, 2022. The methods and assumptions used to estimate fair value at March 31, 2023 and December 31, 2022 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 individually evaluated for credit loss 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. Individually evaluated loans that are collateral dependent are written down to fair value through the establishment of specific reserves, a component of the allowance for credit 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 March 31, 2023 and December 31, 2022: 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 March 31, 2023 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 $ 77,045 $ 77,045 $ 77,045 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,266 18,266 18,266 — — Securities available for sale — — — — — Securities held to maturity 26,108 23,084 — 23,084 — Loans receivable, net 1,310,808 1,287,299 — — 1,287,299 Investments in restricted stock 923 923 — 923 — Accrued interest receivable 9,919 9,919 — 9,919 — Financial Liabilities Deposits 1,208,393 1,210,167 — 1,210,167 — FHLB of New York advances 14,000 12,846 — 12,846 — Fair Value at December 31, 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 $ 95,308 $ 95,308 $ 95,308 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,041 18,041 18,041 — — Securities available for sale 1 1 — 1 — Securities held to maturity 26,395 22,865 — 22,865 — Loans receivable, net 1,212,219 1,191,483 — — 1,191,483 Investments in restricted stock 1,238 1,238 — 1,238 — Accrued interest receivable 8,597 8,597 — 8,597 — Financial Liabilities Deposits 1,121,955 1,121,107 — 1,121,107 — FHLB of New York advances 21,000 19,437 — 19,437 — |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, 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 months ended March 31, 2023 and 2022. Sources of revenue outside the scope of ASC 606 are noted as such: Three Months Ended March 31, 2023 2022 (In Thousands) Non-interest income: Deposit-related fees and charges $ 14 $ 18 Loan-related fees and charges (1) 350 171 Electronic banking fees and charges 243 202 Income from bank owned life insurance (1) 150 148 Investment advisory fees 117 137 Unrealized loss on equity securities (1) 225 (634) Miscellaneous (1) 16 16 Total non-interest income $ 1,115 $ 58 (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. The Company discontinued the imposition of overdraft fees on all consumer and business accounts in August 2022. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (In Thousands) Other $ 766 $ 615 Service contracts 319 257 Consulting expense 189 258 Telephone 157 142 Directors compensation 224 139 Audit and accounting 111 205 Insurance 95 82 Director, officer, and employee expense 58 58 Legal fees 120 154 Office supplies and stationary 50 40 Recruiting expense 2 28 $ 2,091 $ 1,978 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 14 — Earnings Per Share Basic earnings per share is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period less any unvested restricted shares. Unallocated common shares held by the Employee Stock Ownership Plan (“ESOP”) are not included in the weighted-average number of common shares outstanding for purposes of calculating basic net income per common share until they are committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share. The following table sets forth the computations of basic and diluted earnings per share: Three Months Ended March 31, 2023 2022 (In Thousands, except per share data) Net income (basic and diluted) $ 11,244 $ 3,645 Weighted average shares issued 15,769 16,378 Less: Weighted average unearned ESOP shares (768) (855) Less: Weighted average unvested restricted shares (352) — Basic weighted average shares outstanding 14,649 15,523 Add: Dilutive effect of restricted stock 47 NA Add: Dilutive effect of stock option — NA Diluted weighted average shares outstanding 14,696 NA Net income per share Basic $ 0.77 $ 0.23 Diluted $ 0.77 $ NA |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2023 | |
Stock Compensation Plans | |
Stock Compensation Plans | Note 15 — Stock Compensation Plans At a special shareholders meeting held on September 29, 2022, the Company’s shareholders approved the Company’s 2022 Equity Incentive Plan whereby shares of the Company’s common stock were reserved from authorized but unissued shares for purposes of grants of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, performance shares and performance units to selected employees and non-employee directors of the Company. Under this plan, nonqualified stock options were in the aggregate awarded to employees of the Company on November 17, 2022. The restricted shares and nonqualified stock options vest at a rate of The product of the number of shares granted and the grant date market price of the Company’s common stock determine the fair value of restricted stock under the Company’s 2022 Equity Incentive plan. Management recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the requisite service period for the entire award. As of March 31, 2023 and December 31, 2022, there were A summary of the Company’s restricted stock activity and related information for the three months ended March 31, 2023 follows: 2023 Weighted Average Grant-Date Shares Market Price Outstanding at December 31, 2022 352,037 $ 13.67 Granted — — Forfeited — — Vested — — Outstanding at March 31, 2023 352,037 $ 13.67 Compensation expense related to restricted stock was $241,000 for the three months ended March 31, 2023. At March 31, 2023 and December 31, 2022, the total compensation cost related to non-vested awards that has not yet been recognized was A summary of the Company’s stock option activity and related information for the three months ended March 31, 2023 follows: 2023 Weighted Average Grant-Date Options Market Price Outstanding at December 31, 2022 880,097 $ 13.67 Granted — — Forfeited — — Vested — — Outstanding at March 31, 2023 880,097 $ 13.67 Exercisable at March 31, 2023 — — Compensation cost related to stock options is recognized based on the fair value of the stock options at the grant date on a straight line basis over the vesting period. Compensation expense related to stock options was for the three months ended March 31, 2023. At March 31, 2023 and December 31, 2022, unrecognized compensation cost related to stock option awards was |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 16 — Recent Accounting Pronouncements There is no Accounting Standards pending adoption at March 31, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 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, and Sullivan Counties in New York and Essex, Middlesex and Norfolk Counties in Massachusetts and three loan production offices located in White Plains, New York, New City, New York, and Danvers, Massachusetts. 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, 2022. 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 are used in connection with the determination of the allowance for credit losses, the review of the need for a valuation allowance of the Company’s deferred tax assets and the fair value of financial instruments. |
Accounting Pronouncements Adopted in 2023: | Accounting Pronouncements Adopted in 2023: Effective January 1, 2023, the Company adopted Accounting Standards Topic 326, “Financial Instruments – Credit Losses” which replaced the previously existing U.S. GAAP “incurred loss” approach to “expected credit losses” approach, which is referred as Current Expected Credit Losses (“CECL”). CECL measures the credit loss associated with financial assets carried at amortize cost, including loan receivables, held-to-maturity debt securities, off balance sheet credit exposures. The company adopted Topic 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balances sheet exposures. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Upon adoption, we recorded a cumulative-effect adjustment totaling retained earnings. The transition adjustment includes the adoption and changes to the three applicable components of the allowance for credit losses (“ACL”): a decrease of The following table illustrates the impact of adopting ASC 326: January 1, 2023 Pre-adoption Adoption Impact As Reported (In Thousands) Assets ACL on debt securities held-to-maturity Municipal Bonds $ - $ 132 $ 132 ACL on loan receivables Residential real estate 528 895 1,423 Non-residential real estate 131 7 138 Construction 3,835 (2,086) 1,749 Commercial and industrial 955 (437) 518 Consumer 18 44 62 Unallocated 7 (7) - Liabilities ACL for off-balance sheet exposure - 1,586 1,586 $ 5,474 $ 134 $ 5,608 |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans The allowance for credit losses related to loans is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses related to loans is measured on a collective (pool) basis when similar risk characteristics exist. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses related to loans when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, non-residential real estate, construction, commercial and industrial business, and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. The Company estimates the allowance for credit losses related to loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the renewal option is included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company. Also included in the allowance for credit losses related to loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, might not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the most severe loss periods identified in the historical loan charge-offs of the Company. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on the loan’s disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, the loan’s observable market price or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. |
Allowance for Credit Losses - Held-to-Maturity Debt Securities | Allowance for Credit Losses – Held-to-Maturity Debt Securities The allowance for credit losses related to held-to-maturity debt securities is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of held-to-maturity debt securities to present the net amount expected to be collected on the held-to-maturity debt securities. Losses, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When an investment is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses Related to Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses related to off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of impact of adopting ASC 326 | January 1, 2023 Pre-adoption Adoption Impact As Reported (In Thousands) Assets ACL on debt securities held-to-maturity Municipal Bonds $ - $ 132 $ 132 ACL on loan receivables Residential real estate 528 895 1,423 Non-residential real estate 131 7 138 Construction 3,835 (2,086) 1,749 Commercial and industrial 955 (437) 518 Consumer 18 44 62 Unallocated 7 (7) - Liabilities ACL for off-balance sheet exposure - 1,586 1,586 $ 5,474 $ 134 $ 5,608 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023: Total capital (to risk-weighted assets) $ 237,412 14.11 % $ ≥ 134,605 ≥ 8.00 % $ ≥ 168,256 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 231,855 13.78 ≥ 100,954 ≥ 6.00 ≥ 134,605 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 231,855 13.78 ≥ 75,715 ≥ 4.50 ≥ 109,367 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 231,855 16.21 ≥ 57,202 ≥ 4.00 ≥ 71,503 ≥ 5.00 As of December 31, 2022: Total capital (to risk-weighted assets) $ 222,728 13.66 % $ ≥ 130,429 ≥ 8.00 % $ ≥ 163,036 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 97,822 ≥ 6.00 ≥ 130,429 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 73,366 ≥ 4.50 ≥ 105,973 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 217,283 16.50 ≥ 52,687 ≥ 4.00 ≥ 65,858 ≥ 5.00 (1) Ratios do not include the capital conservation buffer. |
Equity Securities (Tables)
Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Securities | |
Schedule of equity securities | March 31, December 31, 2023 2022 (In Thousands) Equity Securities, at Fair Value $ 18,266 $ 18,041 |
Schedule of unrealized losses recognized in net income on equity securities | Three Months Ended March 31, 2023 2022 (In Thousands) Net gain (loss) recognized on equity securities during the period $ 225 $ (634) Less: Net losses realized on the sale of equity securities during the period — — Unrealized net gain (loss) recognized on equity securities held at the reporting date $ 225 $ (634) |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Securities Available-for-Sale | |
Schedule of portfolio of securities available-for-sale | December 31, 2022 Gross Gross Allowance Amortized Unrealized Unrealized for Fair Cost Gains Losses Credit Loss Value (In Thousands) Mortgage-backed securities – residential: Federal Home Loan Mortgage Corporation $ 1 $ — $ — $ — $ 1 $ 1 $ — $ — $ — $ 1 |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Securities Held-to-Maturity | |
Summary of securities held-to-maturity portfolio | March 31, 2023 Gross Gross Allowance Amortized Unrealized Unrealized Fair for Cost Gains Losses Value Credit Loss (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 512 $ $ 13 $ 499 $ — Federal Home Loan Mortgage Corporation 939 — 116 823 — Federal National Mortgage Association 2,229 — 230 1,999 — Collateralized mortgage obligations – GSE 3,017 — 492 2,525 — Total mortgage-backed securities 6,697 — 851 5,846 — Municipal Bonds 9,541 — 2,269 7,272 136 U.S. Treasury securities 10,006 — 40 9,966 — $ 26,244 $ — $ 3,160 $ 23,084 $ 136 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 523 $ — $ 18 $ 505 Federal Home Loan Mortgage Corporation 961 — 129 832 Federal National Mortgage Association 2,308 — 250 2,058 Collateralized mortgage obligations – GSE 3,043 — 506 2,537 Total mortgage-backed securities 6,835 — 903 5,932 Municipal Bonds 9,546 — 2,524 7,022 U.S. Treasury securities 10,014 — 103 9,911 $ 26,395 $ — $ 3,530 $ 22,865 |
Schedule of contractual final maturities | March 31, 2023 Amortized Fair Cost Value (In Thousands) Due within one year $ 10,552 $ 10,432 Due after one but within five years 1,610 1,288 Due after five but within ten years 3,011 2,470 Due after ten years 11,071 8,894 $ 26,244 $ 23,084 |
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) March 31, 2023: Mortgage-backed securities - residential: Government National Mortgage Association $ 499 $ 13 $ — $ — $ 499 $ 13 Federal Home Loan Mortgage Corporation — — 823 116 823 116 Federal National Mortgage Association — — 1,996 230 1,996 230 Collateralized mortgage obligations – GSE — — 2,525 492 2,525 492 Total mortgage-backed securities 499 13 5,344 838 5,843 851 U.S. Treasury securities 9,966 40 — — 9,966 40 $ 10,465 $ 53 $ 5,344 $ 838 $ 15,809 $ 891 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, 2022: Mortgage-backed securities - residential: Government National Mortgage Association $ 505 $ 18 $ — $ — $ 505 $ 18 Federal Home Loan Mortgage Corporation — — 824 129 824 129 Federal National Mortgage Association 478 33 1,580 217 2,058 250 Collateralized mortgage obligations – GSE 1,777 344 759 162 2,536 506 Total mortgage-backed securities 2,760 395 3,163 508 5,923 903 Municipal Bonds 444 39 6,578 2,485 7,022 2,524 U.S. Treasury securities 9,911 103 — — 9,911 103 $ 13,115 $ 537 $ 9,741 $ 2,993 $ 22,856 $ 3,530 |
Schedule of allowance for credit losses for debt securities held-to-maturity | Municipal Bonds Balance – December 31, 2022 $ - Impact of adopting ASC 326 132 Provision for credit loss 4 Balance – March 31, 2023 $ 136 |
Loans Receivable and the Allo_2
Loans Receivable and the Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Loans Receivable and the Allowance for Credit Losses | |
Summary of composition of loans | March 31, December 31, 2023 2022 (In Thousands) Residential real estate: One-to-four family $ 5,401 $ 5,467 Multi-family 124,996 123,385 Mixed-use 29,096 21,902 Total residential real estate 159,493 150,754 Non-residential real estate 21,662 25,324 Construction 1,008,781 930,628 Commercial and industrial 123,533 110,069 Consumer 1,036 546 Total Loans 1,314,505 1,217,321 Deferred loan costs, net 369 372 Allowance for credit losses (4,066) (5,474) $ 1,310,808 $ 1,212,219 |
Schedule of analysis of the activity in the allowance for loan losses | At March 31, 2023: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Ending balance $ 1,474 $ 122 $ 1,842 $ 506 $ 122 $ — $ 4,066 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 1,474 $ 122 $ 1,842 $ 506 $ 122 $ — $ 4,066 Loans receivable: Ending balance $ 159,493 $ 21,662 $ 1,008,781 $ 123,533 $ 1,036 $ — $ 1,314,505 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 159,493 $ 21,662 $ 1,008,781 $ 123,533 $ 1,036 $ — $ 1,314,505 At December 31, 2022: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Loans receivable: Ending balance $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ — $ 1,217,321 Ending balance: individually evaluated for impairment $ 855 $ — $ — $ — $ — $ — $ 855 Ending balance: collectively evaluated for impairment $ 149,899 $ 25,324 $ 930,628 $ 110,069 $ 546 $ — $ 1,216,466 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Balance - December 31, 2022 $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Impact of adopting ASC 326 895 7 (2,086) (437) 44 (7) (1,584) Charge-offs — — — — (21) — (21) Recoveries — — — — — — — Provision (Benefit) 51 (16) 93 (12) 81 — 197 Balance -March 31, 2023 $ 1,474 $ 122 $ 1,842 $ 506 $ 122 $ — $ 4,066 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 — — — — (10) — (10) Recoveries 43 53 — — — — 96 Provision (Benefit) (104) (94) 249 (15) 17 (53) — Balance - March 31, 2022 $ 510 $ 340 $ 3,392 $ 958 $ 17 $ 111 $ 5,328 |
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 months Ended March 31, 2022: Three Months Ended March 31, 2022 Recorded Unpaid Principal Related Average Recorded Interest Income 2022 Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 865 $ 865 $ — $ 871 $ 6 Non-residential real estate 766 833 — 756 10 Construction — — — — — Commercial and industrial — — — — — 1,631 1,698 — 1,627 16 With an allowance recorded — — — — — Total: Residential real estate-Multi-family 865 865 — 871 6 Non-residential real estate 766 833 — 756 10 Construction — — — — — Commercial and industrial — — — — — $ 1,631 $ 1,698 $ — $ 1,627 $ 16 As of and for the Year Ended December 31, 2022: Recorded Unpaid Principal Related Average Recorded Interest Income 2022 Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate-Multi-family $ 855 $ 769 $ — $ 863 $ 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — 855 769 — 1,248 57 With an allowance recorded — — — — — Total: Residential real estate-Multi-family 855 769 — 863 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — $ 855 $ 769 $ — $ 1,248 $ 57 |
Schedule of age analysis of past due loans | Age Analysis of Past Due Loans as of March 31, 2023: 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 $ — $ — $ — $ — $ 5,401 $ 5,401 $ — Multi-family — — — — 124,996 124,996 — Mixed-use — — — — 29,096 29,096 — Non-residential real estate — — — — 21,662 21,662 — Construction loans — — — — 1,008,781 1,008,781 — Commercial and industrial loans — — — — 123,533 123,533 — Consumer — — — — 1,036 1,036 — $ — $ — $ — $ — $ 1,314,505 $ 1,314,505 $ — Age Analysis of Past Due Loans as of December 31, 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 $ — $ — $ — $ — $ 5,467 $ 5,467 $ — Multi-family — 946 — 946 122,439 123,385 — Mixed-use — — — — 21,902 21,902 — Non-residential real estate — — — — 25,324 25,324 — Construction loans — — — — 930,628 930,628 — Commercial and industrial loans — — — — 110,069 110,069 — Consumer — — — — 546 546 — $ — $ 946 $ — $ 946 $ 1,216,375 $ 1,217,321 $ — |
Summary of risk category of loans | Revolving Revolving Term Loans Amortized Costs Basis by Origination Year Loans Loans Amortized Converted March 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate Risk Rating Pass $ 21,317 $ 58,791 $ 16,360 $ 10,871 $ 1,384 $ 49,848 $ - $ - $ 158,571 Special Mention - - - 922 - - - - 922 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 21,317 $ 58,791 $ 16,360 $ 11,793 $ 1,384 $ 49,848 $ - $ - $ 159,493 Residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-residential real estate Risk Rating Pass $ - $ 256 $ 2,217 $ 1,009 $ 387 $ 17,793 $ - $ - $ 21,662 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ - $ 256 $ 2,217 $ 1,009 $ 387 $ 17,793 $ - $ - $ 21,662 Non-residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction - Risk Rating Pass $ 46,203 $ 470,380 $ 303,372 $ 93,220 $ 45,091 $ 50,515 $ - $ - $ 1,008,781 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 46,203 $ 470,380 $ 303,372 $ 93,220 $ 45,091 $ 50,515 $ - $ - $ 1,008,781 Construction Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial and industrial - Risk Rating Pass $ 15,027 $ 32,678 $ 28,357 $ 7,905 $ 4,710 $ 33,247 $ - $ 1,609 $ 123,533 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 15,027 $ 32,678 $ 28,357 $ 7,905 $ 4,710 $ 33,247 $ - $ 1,609 $ 123,533 Commercial and industrial Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer - Risk Rating Pass $ 1,013 $ - $ - $ - $ - $ 23 $ - $ - $ 1,036 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 1,013 $ - $ - $ - $ - $ 23 $ - $ - $ 1,036 Consumer Current period gross charge-offs $ 21 $ - $ - $ - $ - $ - $ - $ - $ 21 Total - Risk Rating Pass $ 83,560 $ 562,105 $ 350,306 $ 113,005 $ 51,572 $ 151,426 $ - $ 1,609 $ 1,313,583 Special Mention - - - 922 - - - - 922 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 83,560 $ 562,105 $ 350,306 $ 113,927 $ 51,572 $ 151,426 $ - $ 1,609 $ 1,314,505 Credit Risk Profile by Internally Assigned Grade as of December 31, 2022: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 148,953 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,215,520 Special Mention 946 — — — — 946 Substandard 855 — — — — 855 Doubtful — — — — — — $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,217,321 |
Schedule of allowance for credit losses on off balance sheet commitments. | Allowance for Credit Loss Balance – December 31, 2022 $ - Impact of adopting ASC 326 1,586 Provision for credit loss (200) Balance – March 31, 2023 $ 1,386 |
Federal Home Loan Bank of New_2
Federal Home Loan Bank of New York ("FHLB") Advances (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Federal Home Loan Bank of New York ("FHLB") Advances | |
Schedule of FHLB advances | March 31, December 31, 2023 2022 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Advances maturing in: One year or less $ 7,000 2.86 % $ 7,000 2.83 % After one to three years — — % 7,000 2.86 % After five years (due 2030) 7,000 1.61 % 7,000 1.61 % $ 14,000 2.24 % $ 21,000 2.43 % |
Benefits Plans (Tables)
Benefits Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Benefits Plans | |
Schedule of components of net pension periodic expense | Three Months Ended March 31, 2023 2022 (Dollars In Thousands) Net periodic pension expense: Service cost $ 31 $ 30 Interest cost 10 14 Actuarial (gain) loss recognized (8) 7 Total net periodic pension expense included in other non-interest expenses $ 33 $ 51 |
Summary of ESOP shares | March 31, December 31, 2023 2022 Allocated shares 694,848 607,922 Shares committed to be released 21,730 86,920 Unearned shares 760,831 782,567 Total ESOP Shares 1,477,409 1,477,409 Less allocated shares distributed to former or retired employees (132,012) (122,280) Total ESOP Shares Held by Trustee 1,345,397 1,355,129 Fair value of unearned shares $ 9,982,103 $ 11,675,897 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Schedule of Company's leases | At March 31, 2023 and December 31, 2022, the quantitative data relating to the Company’s leases are as follows (in thousands): March 31, December 31, 2023 2022 Finance Lease Amounts: ROU asset $ 354 $ 355 Lease liability $ 542 $ 533 Operating Lease Amounts: ROU assets $ 2,182 $ 2,312 Lease liabilities $ 2,234 $ 2,363 Weighted-average remaining lease term Finance lease 93.75 years 94 years Operating leases 6.07 years 6.19 years Weighted-average discount rate Finance lease 9.50 % 9.50 % Operating leases 1.46 % 1.50 % The components of lease expense and cash flow information related to leases as follows: Three Months Ended March 31, 2023 2022 (Dollars In Thousands) Finance Lease Cost Amortization of ROU asset $ 1 $ 1 Interest on lease liability $ 9 $ 9 Operating Lease Costs $ 144 $ 142 Cash paid for amounts included in the measurement of lease liabilities Finance lease $ — $ — Operating leases $ 142 $ 138 |
Maturities of operating lease liabilities | Maturities of lease liabilities at March 31, 2023 are as follows (in thousands): Operating Finance Leases Lease Years ended December 31: 2023 $ 380 $ 23 2024 436 30 2025 398 30 2026 235 31 2027 239 33 Thereafter 636 4,016 Total lease payments $ 2,324 $ 4,163 Interest (90) (3,621) Lease liability $ 2,234 $ 542 |
Maturities of financing lease liabilities | Operating Finance Leases Lease Years ended December 31: 2023 $ 380 $ 23 2024 436 30 2025 398 30 2026 235 31 2027 239 33 Thereafter 636 4,016 Total lease payments $ 2,324 $ 4,163 Interest (90) (3,621) Lease liability $ 2,234 $ 542 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 Assets: Marketable equity securities: Mutual funds $ 18,266 $ 18,041 $ — $ — $ — $ — $ 18,266 $ 18,041 Mortgage-backed securities FHLMC — — — 1 — — — 1 Total assets $ 18,266 $ 18,041 $ — $ 1 $ — $ — $ 18,266 $ 18,042 |
Assets carried at fair value on a non-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) Non-Recurring Basis March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 (In Thousands) Assets: Loans individually evaluated $ — $ — $ — $ — $ — $ 855 $ — $ 855 Real estate owned — — — — — 1,456 — 1,456 Total assets $ — $ — $ — $ — $ — $ 2,311 $ — $ 2,311 |
Schedule of qualitative information about non-recurring Level 3 fair value measurements of financial instruments | At December 31, 2022 Fair Valuation Unobservable Weighted Value Technique Input Range Average (In Thousands) Assets: Impaired loans $ 855 Income approach Capitalization rate 5.60 % 5.60 % Real estate owned 1,456 Income approach Capitalization rate 12.00 % 12.00 % |
Schedule of carrying amounts and estimated fair value of our financial instruments | Fair Value at March 31, 2023 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 $ 77,045 $ 77,045 $ 77,045 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,266 18,266 18,266 — — Securities available for sale — — — — — Securities held to maturity 26,108 23,084 — 23,084 — Loans receivable, net 1,310,808 1,287,299 — — 1,287,299 Investments in restricted stock 923 923 — 923 — Accrued interest receivable 9,919 9,919 — 9,919 — Financial Liabilities Deposits 1,208,393 1,210,167 — 1,210,167 — FHLB of New York advances 14,000 12,846 — 12,846 — Fair Value at December 31, 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 $ 95,308 $ 95,308 $ 95,308 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,041 18,041 18,041 — — Securities available for sale 1 1 — 1 — Securities held to maturity 26,395 22,865 — 22,865 — Loans receivable, net 1,212,219 1,191,483 — — 1,191,483 Investments in restricted stock 1,238 1,238 — 1,238 — Accrued interest receivable 8,597 8,597 — 8,597 — Financial Liabilities Deposits 1,121,955 1,121,107 — 1,121,107 — FHLB of New York advances 21,000 19,437 — 19,437 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | Three Months Ended March 31, 2023 2022 (In Thousands) Non-interest income: Deposit-related fees and charges $ 14 $ 18 Loan-related fees and charges (1) 350 171 Electronic banking fees and charges 243 202 Income from bank owned life insurance (1) 150 148 Investment advisory fees 117 137 Unrealized loss on equity securities (1) 225 (634) Miscellaneous (1) 16 16 Total non-interest income $ 1,115 $ 58 (1) Not within the scope of ASC 606. |
Other Non-Interest Expenses (Ta
Other Non-Interest Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Non-Interest Expenses | |
Schedule of other non-interest expenses | Three Months Ended March 31, 2023 2022 (In Thousands) Other $ 766 $ 615 Service contracts 319 257 Consulting expense 189 258 Telephone 157 142 Directors compensation 224 139 Audit and accounting 111 205 Insurance 95 82 Director, officer, and employee expense 58 58 Legal fees 120 154 Office supplies and stationary 50 40 Recruiting expense 2 28 $ 2,091 $ 1,978 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share | |
Computations of basic and diluted earnings per share | Three Months Ended March 31, 2023 2022 (In Thousands, except per share data) Net income (basic and diluted) $ 11,244 $ 3,645 Weighted average shares issued 15,769 16,378 Less: Weighted average unearned ESOP shares (768) (855) Less: Weighted average unvested restricted shares (352) — Basic weighted average shares outstanding 14,649 15,523 Add: Dilutive effect of restricted stock 47 NA Add: Dilutive effect of stock option — NA Diluted weighted average shares outstanding 14,696 NA Net income per share Basic $ 0.77 $ 0.23 Diluted $ 0.77 $ NA |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stock Compensation Plans | |
Schedule of restricted stock activity | 2023 Weighted Average Grant-Date Shares Market Price Outstanding at December 31, 2022 352,037 $ 13.67 Granted — — Forfeited — — Vested — — Outstanding at March 31, 2023 352,037 $ 13.67 |
Schedule of stock option activity | 2023 Weighted Average Grant-Date Options Market Price Outstanding at December 31, 2022 880,097 $ 13.67 Granted — — Forfeited — — Vested — — Outstanding at March 31, 2023 880,097 $ 13.67 Exercisable at March 31, 2023 — — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Millions | Jul. 12, 2021 USD ($) $ / shares shares | Mar. 31, 2023 property Office |
Summary of Significant Accounting Policies | ||
Number of branch offices | Office | 11 | |
Number of loan production offices | Office | 3 | |
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 | $ | $ 97.8 | |
Stock issued | shares | 9,784,077 | |
Share price | $ / shares | $ 10 | |
Shares issued upon conversion | shares | 1.3400 | |
Exchange ratio | 1.3400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Adopting ASC 326 (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Summary of Significant Accounting Policies | |||||
Retained earnings | $ 142,940 | $ 134,000 | $ 132,670 | ||
Retained earnings, net of tax | 99,000 | ||||
Securities held-to-maturity, allowance for credit losses | 136 | 1,600 | |||
ACL on loan receivables | 132,000 | 5,474 | $ 5,328 | $ 5,242 | |
ACL for off-balance sheet exposure | 1,600 | ||||
Residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 528 | 510 | 571 | ||
Non-residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 131 | 340 | 381 | ||
Construction | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 3,835 | 3,392 | 3,143 | ||
Commercial and Industrial | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 955 | 958 | 973 | ||
Consumer | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 18 | 17 | 10 | ||
Unallocated | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 7 | $ 111 | $ 164 | ||
Adoption Impact | |||||
Summary of Significant Accounting Policies | |||||
ACL for off-balance sheet exposure | 1,386 | ||||
Topic 326 | |||||
Summary of Significant Accounting Policies | |||||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | 5,474 | ||||
Topic 326 | Residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 528 | ||||
Topic 326 | Non-residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 131 | ||||
Topic 326 | Construction | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 3,835 | ||||
Topic 326 | Commercial and Industrial | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 955 | ||||
Topic 326 | Consumer | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 18 | ||||
Topic 326 | Unallocated | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | $ 7 | ||||
Topic 326 | Adoption Impact | |||||
Summary of Significant Accounting Policies | |||||
ACL for off-balance sheet exposure | $ 1,586 | 1,586 | |||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | 134 | ||||
Topic 326 | Adoption Impact | Residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 895 | ||||
Topic 326 | Adoption Impact | Non-residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 7 | ||||
Topic 326 | Adoption Impact | Construction | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | (2,086) | ||||
Topic 326 | Adoption Impact | Commercial and Industrial | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | (437) | ||||
Topic 326 | Adoption Impact | Consumer | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 44 | ||||
Topic 326 | Adoption Impact | Unallocated | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | (7) | ||||
Topic 326 | Adoption Impact | Municipal Bonds | |||||
Summary of Significant Accounting Policies | |||||
Securities held-to-maturity, allowance for credit losses | 132 | ||||
Topic 326 | As Reported | |||||
Summary of Significant Accounting Policies | |||||
ACL for off-balance sheet exposure | 1,586 | ||||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | 5,608 | ||||
Topic 326 | As Reported | Residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 1,423 | ||||
Topic 326 | As Reported | Non-residential Real Estate | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 138 | ||||
Topic 326 | As Reported | Construction | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 1,749 | ||||
Topic 326 | As Reported | Commercial and Industrial | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 518 | ||||
Topic 326 | As Reported | Consumer | |||||
Summary of Significant Accounting Policies | |||||
ACL on loan receivables | 62 | ||||
Topic 326 | As Reported | Municipal Bonds | |||||
Summary of Significant Accounting Policies | |||||
Securities held-to-maturity, allowance for credit losses | $ 132 |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of capital levels of the bank (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Actual Capital Amount | ||
Total capital (to risk-weighted assets), Actual amount | $ 237,412 | $ 222,728 |
Total capital (to risk-weighted assets), Minimum Capital Adequacy amount | 134,605 | 130,429 |
Total capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 168,256 | $ 163,036 |
Actual Capital Ratio | ||
Total capital (to risk-weighted assets), Actual ratio | 0.1411 | 0.1366 |
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 | ||
Tier 1 capital (to risk-weighted assets), Actual amount | $ 231,855 | $ 217,283 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy amount | 100,954 | 97,822 |
Tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 134,605 | $ 130,429 |
Tier 1 capital Ratio | ||
Tier 1 capital (to risk-weighted assets), Actual ratio | 0.1378 | 0.1333 |
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 | ||
Common equity tier 1 capital (to risk-weighted assets), Actual amount | $ 231,855 | $ 217,283 |
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy amount | 75,715 | 73,366 |
Common equity tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 109,367 | $ 105,973 |
Common Equity Tier 1 Capital Ratio | ||
Common equity tier 1 capital (to risk-weighted assets), Actual ratio | 0.1378 | 0.1333 |
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 | ||
Core (Tier 1) capital (to adjusted total assets), Actual amount | $ 231,855 | $ 217,283 |
Core (Tier 1) capital (to adjusted total assets), Minimum Capital Adequacy amount | 57,202 | 52,687 |
Core (Tier 1) capital (to adjusted total assets), For Classification as Well-Capitalized amount | $ 71,503 | $ 65,858 |
Core (Tier 1) Capital Ratio | ||
Core (Tier 1) capital (to adjusted total assets), Actual ratio | 0.1621 | 0.1650 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Equity Securities | ||
Equity Securities, at Fair Value | $ 18,266 | $ 18,041 |
Equity Securities - Schedule _2
Equity Securities - Schedule of unrealized losses recognized in net income on equity securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Securities | ||
Net gain (loss) recognized on equity securities during the period | $ 225 | $ (634) |
Unrealized net gain (loss) recognized on equity securities held at the reporting date | $ 225 | $ (634) |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of portfolio of securities available-for-sale (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Securities Available-for-Sale | ||
Fair Value | $ 0 | $ 1,000 |
Securities available-for-sale, at fair value | $ 0 | 1,000 |
Mortgage-backed securities - residential | ||
Securities Available-for-Sale | ||
Amortized Cost | 1,000 | |
Fair Value | 1,000 | |
Securities available-for-sale, at fair value | 1,000 | |
Federal Home Loan Mortgage Corporation | ||
Securities Available-for-Sale | ||
Amortized Cost | 1,000 | |
Fair Value | 1,000 | |
Securities available-for-sale, at fair value | $ 1,000 |
Securities Available-for-Sale_2
Securities Available-for-Sale - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Securities Available-for-Sale | ||
Proceeds from sales of securities available-for-sale | $ 0 | $ 0 |
Unrealized loss | $ 0 | $ 0 |
Securities Held-to-Maturity - P
Securities Held-to-Maturity - Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Securities Held-to-Maturity | |||
Amortized Cost | $ 26,244 | $ 26,395 | |
Gross Unrealized Losses | 3,160 | 3,530 | |
ACL on debt securities held-to-maturity | 136 | $ 1,600 | |
Fair Value | 23,084 | 22,865 | |
Mortgage-backed securities - residential | |||
Securities Held-to-Maturity | |||
Amortized Cost | 6,697 | 6,835 | |
Gross Unrealized Losses | 851 | 903 | |
Fair Value | 5,846 | 5,932 | |
Government National Mortgage Association | |||
Securities Held-to-Maturity | |||
Amortized Cost | 512 | 523 | |
Gross Unrealized Losses | 13 | 18 | |
Fair Value | 499 | 505 | |
Federal Home Loan Mortgage Corporation | |||
Securities Held-to-Maturity | |||
Amortized Cost | 939 | 961 | |
Gross Unrealized Losses | 116 | 129 | |
Fair Value | 823 | 832 | |
Federal National Mortgage Association | |||
Securities Held-to-Maturity | |||
Amortized Cost | 2,229 | 2,308 | |
Gross Unrealized Losses | 230 | 250 | |
Fair Value | 1,999 | 2,058 | |
Collateralized mortgage obligations - GSE | |||
Securities Held-to-Maturity | |||
Amortized Cost | 3,017 | 3,043 | |
Gross Unrealized Losses | 492 | 506 | |
Fair Value | 2,525 | 2,537 | |
Municipal Bonds | |||
Securities Held-to-Maturity | |||
Amortized Cost | 9,541 | 9,546 | |
Gross Unrealized Losses | 2,269 | 2,524 | |
ACL on debt securities held-to-maturity | 136 | ||
Fair Value | 7,272 | 7,022 | |
U.S Treasury securities | |||
Securities Held-to-Maturity | |||
Amortized Cost | 10,006 | 10,014 | |
Gross Unrealized Losses | 40 | 103 | |
Fair Value | $ 9,966 | $ 9,911 |
Securities Held-to-Maturity - C
Securities Held-to-Maturity - Contractual final maturities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Amortized Cost | |
Due within one year | $ 10,552 |
Due after one but within five years | 1,610 |
Due after five but within ten years | 3,011 |
Due after ten years | 11,071 |
Amortized Cost | 26,244 |
Fair Value | |
Due within one year | 10,432 |
Due after one but within five years | 1,288 |
Due after five but within ten years | 2,470 |
Due after ten years | 8,894 |
Fair Value | $ 23,084 |
Securities Held-to-Maturity - A
Securities Held-to-Maturity - Age of unrealized losses and the fair value (Details) $ in Thousands | Mar. 31, 2023 USD ($) security item | Dec. 31, 2022 USD ($) security item |
Fair Value | ||
Less than 12 Months | $ 10,465 | $ 13,115 |
12 Months or More | 5,344 | 9,741 |
Total | 15,809 | 22,856 |
Gross Unrealized Losses | ||
Less than 12 Months | 53 | 537 |
12 Months or More | 838 | 2,993 |
Total | 891 | 3,530 |
Government National Mortgage Association | ||
Fair Value | ||
Less than 12 Months | 499 | 505 |
Total | 499 | 505 |
Gross Unrealized Losses | ||
Less than 12 Months | 13 | 18 |
Total | 13 | 18 |
Federal Home Loan Mortgage Corporation | ||
Fair Value | ||
12 Months or More | 823 | 824 |
Total | 823 | 824 |
Gross Unrealized Losses | ||
12 Months or More | 116 | 129 |
Total | 116 | 129 |
Federal National Mortgage Association | ||
Fair Value | ||
Less than 12 Months | 478 | |
12 Months or More | 1,996 | 1,580 |
Total | 1,996 | 2,058 |
Gross Unrealized Losses | ||
Less than 12 Months | 33 | |
12 Months or More | 230 | 217 |
Total | 230 | 250 |
Collateralized mortgage obligations - GSE | ||
Fair Value | ||
Less than 12 Months | 1,777 | |
12 Months or More | 2,525 | 759 |
Total | 2,525 | 2,536 |
Gross Unrealized Losses | ||
Less than 12 Months | 344 | |
12 Months or More | 492 | 162 |
Total | 492 | 506 |
Mortgage-backed securities - residential | ||
Fair Value | ||
Less than 12 Months | 499 | 2,760 |
12 Months or More | 5,344 | 3,163 |
Total | 5,843 | 5,923 |
Gross Unrealized Losses | ||
Less than 12 Months | 13 | 395 |
12 Months or More | 838 | 508 |
Total | $ 851 | $ 903 |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Number of securities with unrealized loss | security | 34 | 35 |
Municipal Bonds | ||
Fair Value | ||
Less than 12 Months | $ 444 | |
12 Months or More | 6,578 | |
Total | 7,022 | |
Gross Unrealized Losses | ||
Less than 12 Months | 39 | |
12 Months or More | 2,485 | |
Total | $ 2,524 | |
Number of securities with unrealized loss | item | 6 | |
U.S Treasury securities | ||
Fair Value | ||
Less than 12 Months | $ 9,966 | $ 9,911 |
Total | 9,966 | 9,911 |
Gross Unrealized Losses | ||
Less than 12 Months | 40 | 103 |
Total | $ 40 | $ 103 |
US Treasury Notes | ||
Gross Unrealized Losses | ||
Number of securities with unrealized loss | item | 2 | 2 |
Securities Held-to-Maturity -_2
Securities Held-to-Maturity - Allowance for credit losses for debt securities held-to-maturity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Securities Held-to-Maturity | |
Ending Balance | $ 136 |
Municipal Bonds | |
Securities Held-to-Maturity | |
Provision for HTM securities | 4 |
Ending Balance | 136 |
Municipal Bonds | Impact of adoptiong ASC 326 | |
Securities Held-to-Maturity | |
Beginning Balance | $ 132 |
Loans Receivable and the Allo_3
Loans Receivable and the Allowance for Credit Losses - Summary of composition of loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | $ 1,314,505 | ||||
Loans receivable | $ 1,217,321 | ||||
Deferred loan costs, net | 369 | ||||
Deferred loan costs, net | 372 | ||||
Allowance for credit losses | (4,066) | (5,474) | |||
Allowance for credit losses | $ (132,000) | (5,474) | $ (5,328) | $ (5,242) | |
Net loans | 1,310,808 | ||||
Net loans | 1,212,219 | ||||
Residential Real Estate | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 159,493 | ||||
Loans receivable | 150,754 | ||||
Allowance for credit losses | (1,474) | (528) | |||
Allowance for credit losses | (528) | (510) | (571) | ||
Residential Real Estate | One-to-four family | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 5,401 | ||||
Loans receivable | 5,467 | ||||
Residential Real Estate | Multi-family | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 124,996 | ||||
Loans receivable | 123,385 | ||||
Residential Real Estate | Mixed-use | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 29,096 | ||||
Loans receivable | 21,902 | ||||
Non-residential Real Estate | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 21,662 | ||||
Loans receivable | 25,324 | ||||
Allowance for credit losses | (122) | (131) | |||
Allowance for credit losses | (131) | (340) | (381) | ||
Construction | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 1,008,781 | ||||
Loans receivable | 930,628 | ||||
Allowance for credit losses | (1,842) | (3,835) | |||
Allowance for credit losses | (3,835) | (3,392) | (3,143) | ||
Commercial and Industrial | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 123,533 | ||||
Loans receivable | 110,069 | ||||
Allowance for credit losses | (506) | (955) | |||
Allowance for credit losses | (955) | (958) | (973) | ||
Consumer | |||||
Loans Receivable and the Allowance for Loan Losses | |||||
Loans receivable | 1,036 | ||||
Loans receivable | 546 | ||||
Allowance for credit losses | $ (122) | (18) | |||
Allowance for credit losses | $ (18) | $ (17) | $ (10) |
Loans Receivable and the Allo_4
Loans Receivable and the Allowance for Credit Losses - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Loans Receivable and the Allowance for Loan Losses | |||
Loans serviced for the benefit of others | $ 26,112,000 | $ 22,350,000 | |
Charge-offs | $ 10,000 | ||
Loans receivable | 1,314,505,000 | ||
Individually evaluated loans | 0 | $ 855,000 | |
Interest income recognized from individually evaluated loans | 0 | ||
Nonperforming Financial Instruments [Member] | |||
Loans Receivable and the Allowance for Loan Losses | |||
Loans receivable | $ 0 |
Loans Receivable and the Allo_5
Loans Receivable and the Allowance for Credit Losses - Schedule of analysis of the activity in the allowance for loan losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for loan losses: | |||||
Ending balance | $ 132,000 | $ 5,474 | $ 5,328 | $ 5,242 | |
Ending balance | $ 4,066 | 5,474 | |||
Ending balance: individually evaluated for impairment | 4,066 | ||||
Ending balance: collectively evaluated for impairment | 4,066 | ||||
Ending balance: collectively evaluated for impairment | 5,474 | ||||
Ending balance | 1,217,321 | ||||
Ending balance | 1,314,505 | ||||
Ending balance: individually evaluated for impairment | 0 | 855 | |||
Ending balance: collectively evaluated for impairment | 1,216,466 | ||||
Ending balance: collectively evaluated for impairment | 1,314,505 | ||||
Residential Real Estate | |||||
Allowance for loan losses: | |||||
Ending balance | 528 | 510 | 571 | ||
Ending balance | 1,474 | 528 | |||
Ending balance: individually evaluated for impairment | 1,474 | ||||
Ending balance: collectively evaluated for impairment | 1,474 | ||||
Ending balance: collectively evaluated for impairment | 528 | ||||
Ending balance | 150,754 | ||||
Ending balance | 159,493 | ||||
Ending balance: individually evaluated for impairment | 855 | ||||
Ending balance: collectively evaluated for impairment | 149,899 | ||||
Ending balance: collectively evaluated for impairment | 159,493 | ||||
Non-residential Real Estate | |||||
Allowance for loan losses: | |||||
Ending balance | 131 | 340 | 381 | ||
Ending balance | 122 | 131 | |||
Ending balance: individually evaluated for impairment | 122 | ||||
Ending balance: collectively evaluated for impairment | 122 | ||||
Ending balance: collectively evaluated for impairment | 131 | ||||
Ending balance | 25,324 | ||||
Ending balance | 21,662 | ||||
Ending balance: collectively evaluated for impairment | 25,324 | ||||
Ending balance: collectively evaluated for impairment | 21,662 | ||||
Construction | |||||
Allowance for loan losses: | |||||
Ending balance | 3,835 | 3,392 | 3,143 | ||
Ending balance | 1,842 | 3,835 | |||
Ending balance: individually evaluated for impairment | 1,842 | ||||
Ending balance: collectively evaluated for impairment | 1,842 | ||||
Ending balance: collectively evaluated for impairment | 3,835 | ||||
Ending balance | 930,628 | ||||
Ending balance | 1,008,781 | ||||
Ending balance: collectively evaluated for impairment | 930,628 | ||||
Ending balance: collectively evaluated for impairment | 1,008,781 | ||||
Commercial and Industrial | |||||
Allowance for loan losses: | |||||
Ending balance | 955 | 958 | 973 | ||
Ending balance | 506 | 955 | |||
Ending balance: individually evaluated for impairment | 506 | ||||
Ending balance: collectively evaluated for impairment | 506 | ||||
Ending balance: collectively evaluated for impairment | 955 | ||||
Ending balance | 110,069 | ||||
Ending balance | 123,533 | ||||
Ending balance: collectively evaluated for impairment | 110,069 | ||||
Ending balance: collectively evaluated for impairment | 123,533 | ||||
Consumer | |||||
Allowance for loan losses: | |||||
Ending balance | 18 | 17 | 10 | ||
Ending balance | 122 | 18 | |||
Ending balance: individually evaluated for impairment | 122 | ||||
Ending balance: collectively evaluated for impairment | 122 | ||||
Ending balance: collectively evaluated for impairment | 18 | ||||
Ending balance | 546 | ||||
Ending balance | 1,036 | ||||
Ending balance: collectively evaluated for impairment | 546 | ||||
Ending balance: collectively evaluated for impairment | $ 1,036 | ||||
Unallocated | |||||
Allowance for loan losses: | |||||
Ending balance | 7 | $ 111 | $ 164 | ||
Ending balance | 7 | ||||
Ending balance: collectively evaluated for impairment | $ 7 |
Loans Receivable and the Allo_6
Loans Receivable and the Allowance for Credit Losses - Unfunded loan commitment allowances activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | $ 5,474 |
Ending balance | 4,066 |
Charge-offs | 21 |
Provision (Benefit) | 197 |
Balance -March 31, 2023 | 4,066 |
Residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 528 |
Ending balance | 1,474 |
Provision (Benefit) | 51 |
Balance -March 31, 2023 | 1,474 |
Non-residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 131 |
Ending balance | 122 |
Provision (Benefit) | (16) |
Balance -March 31, 2023 | 122 |
Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 3,835 |
Ending balance | 1,842 |
Provision (Benefit) | 93 |
Balance -March 31, 2023 | 1,842 |
Commercial and Industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 955 |
Ending balance | 506 |
Provision (Benefit) | (12) |
Balance -March 31, 2023 | 506 |
Consumer | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 18 |
Ending balance | 122 |
Charge-offs | 21 |
Provision (Benefit) | 81 |
Balance -March 31, 2023 | 122 |
Unallocated | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 7 |
Ending balance | |
Cumulative effect of adoption of ASU 2016-13 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | (1,584) |
Ending balance | |
Cumulative effect of adoption of ASU 2016-13 | Residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 895 |
Ending balance | |
Cumulative effect of adoption of ASU 2016-13 | Non-residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 7 |
Ending balance | |
Cumulative effect of adoption of ASU 2016-13 | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | (2,086) |
Ending balance | |
Cumulative effect of adoption of ASU 2016-13 | Commercial and Industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | (437) |
Ending balance | |
Cumulative effect of adoption of ASU 2016-13 | Consumer | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | 44 |
Ending balance | |
Cumulative effect of adoption of ASU 2016-13 | Unallocated | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance - December 31, 2022 | $ (7) |
Ending balance |
Loans Receivable and the Allo_7
Loans Receivable and the Allowance for Credit Losses - Schedule of analysis of the activity in the allowance for loan loss by loan class (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for loan losses: | ||
Beginning balance | $ 5,474 | $ 5,242 |
Charge-offs | (10) | |
Recoveries | 96 | |
Provision (Benefit) | 1 | |
Ending balance | 5,328 | |
Residential Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 528 | 571 |
Recoveries | 43 | |
Provision (Benefit) | (104) | |
Ending balance | 510 | |
Non-residential Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 131 | 381 |
Recoveries | 53 | |
Provision (Benefit) | (94) | |
Ending balance | 340 | |
Construction | ||
Allowance for loan losses: | ||
Beginning balance | 3,835 | 3,143 |
Provision (Benefit) | 249 | |
Ending balance | 3,392 | |
Commercial and Industrial | ||
Allowance for loan losses: | ||
Beginning balance | 955 | 973 |
Provision (Benefit) | (15) | |
Ending balance | 958 | |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 18 | 10 |
Charge-offs | (10) | |
Provision (Benefit) | 17 | |
Ending balance | 17 | |
Unallocated | ||
Allowance for loan losses: | ||
Beginning balance | $ 7 | 164 |
Provision (Benefit) | (53) | |
Ending balance | $ 111 |
Loans Receivable and the Allo_8
Loans Receivable and the Allowance for Credit Losses - Summary of recorded investment, unpaid principal balance and allocated allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2022 | |
Recorded Investment | ||
Recorded Investment, With no related allowance | $ 1,631 | $ 855 |
Recorded Investment | 1,631 | 855 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance | 1,698 | 769 |
Unpaid Principal Balance | 1,698 | 769 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance | 1,627 | 1,248 |
Average Recorded Investment | 1,627 | 1,248 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance | 16 | 57 |
Interest Income Recognized | 16 | 57 |
Residential Real Estate | Multi-family | ||
Recorded Investment | ||
Recorded Investment, With no related allowance | 865 | 855 |
Recorded Investment | 865 | 855 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance | 865 | 769 |
Unpaid Principal Balance | 865 | 769 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance | 871 | 863 |
Average Recorded Investment | 871 | 863 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance | 6 | 43 |
Interest Income Recognized | 6 | 43 |
Non-residential Real Estate | ||
Recorded Investment | ||
Recorded Investment, With no related allowance | 766 | |
Recorded Investment | 766 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance | 833 | |
Unpaid Principal Balance | 833 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance | 756 | 385 |
Average Recorded Investment | 756 | 385 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance | 10 | 14 |
Interest Income Recognized | $ 10 | $ 14 |
Loans Receivable and the Allo_9
Loans Receivable and the Allowance for Credit Losses - Summary of loans receivable on nonaccrual status (Details) - loan | Mar. 31, 2023 | Dec. 31, 2022 |
Loans Receivable and the Allowance for Credit Losses | ||
Non-accrual loans | 0 | 0 |
Loans Receivable and the All_10
Loans Receivable and the Allowance for Credit Losses - Schedule of age analysis of past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | $ 1,217,321 | |
Loans receivable | $ 1,314,505 | |
60-89 Days Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 1,216,375 | |
Loans receivable | 1,314,505 | |
Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 150,754 | |
Loans receivable | 159,493 | |
Residential Real Estate | One-to-four family | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 5,467 | |
Loans receivable | 5,401 | |
Residential Real Estate | One-to-four family | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 5,467 | |
Loans receivable | 5,401 | |
Residential Real Estate | Multi-family | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 123,385 | |
Loans receivable | 124,996 | |
Residential Real Estate | Multi-family | 60-89 Days Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
Residential Real Estate | Multi-family | Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
Residential Real Estate | Multi-family | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 122,439 | |
Loans receivable | 124,996 | |
Residential Real Estate | Mixed-use | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 21,902 | |
Loans receivable | 29,096 | |
Residential Real Estate | Mixed-use | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 21,902 | |
Loans receivable | 29,096 | |
Non-residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 25,324 | |
Loans receivable | 21,662 | |
Non-residential Real Estate | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 25,324 | |
Loans receivable | 21,662 | |
Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 930,628 | |
Loans receivable | 1,008,781 | |
Construction | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 930,628 | |
Loans receivable | 1,008,781 | |
Commercial and Industrial | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 110,069 | |
Loans receivable | 123,533 | |
Commercial and Industrial | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 110,069 | |
Loans receivable | 123,533 | |
Consumer | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 546 | |
Loans receivable | 1,036 | |
Consumer | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | $ 546 | |
Loans receivable | $ 1,036 |
Loans Receivable and the All_11
Loans Receivable and the Allowance for Credit Losses - Troubled Debt Restructuring (Details) - loan | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Loans Receivable and the Allowance for Credit Losses | ||
Number of loans modified that were deemed troubled debt restructuring | 0 | 0 |
Loans Receivable and the All_12
Loans Receivable and the Allowance for Credit Losses - Summary of risk category of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Loans Receivable and the Allowance for Loan Losses | ||
2023 | $ 83,560 | |
2022 | 562,105 | |
2021 | 350,306 | |
2020 | 113,927 | |
2019 | 51,572 | |
Prior | 151,426 | |
Revolving Loans Converted to Term | 1,609 | |
Total | 1,314,505 | $ 1,217,321 |
Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 21,317 | |
2022 | 58,791 | |
2021 | 16,360 | |
2020 | 11,793 | |
2019 | 1,384 | |
Prior | 49,848 | |
Total | 159,493 | 150,754 |
Non-residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2022 | 256 | |
2021 | 2,217 | |
2020 | 1,009 | |
2019 | 387 | |
Prior | 17,793 | |
Total | 21,662 | 25,324 |
Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 46,203 | |
2022 | 470,380 | |
2021 | 303,372 | |
2020 | 93,220 | |
2019 | 45,091 | |
Prior | 50,515 | |
Total | 1,008,781 | 930,628 |
Commercial and Industrial | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 15,027 | |
2022 | 32,678 | |
2021 | 28,357 | |
2020 | 7,905 | |
2019 | 4,710 | |
Prior | 33,247 | |
Revolving Loans Converted to Term | 1,609 | |
Total | 123,533 | 110,069 |
Consumer | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 1,013 | |
Prior | 23 | |
Total | 1,036 | 546 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff | ||
2023 | 21 | |
Total | 21 | |
Pass | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 83,560 | |
2022 | 562,105 | |
2021 | 350,306 | |
2020 | 113,005 | |
2019 | 51,572 | |
Prior | 151,426 | |
Revolving Loans Converted to Term | 1,609 | |
Total | 1,313,583 | 1,215,520 |
Pass | Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 21,317 | |
2022 | 58,791 | |
2021 | 16,360 | |
2020 | 10,871 | |
2019 | 1,384 | |
Prior | 49,848 | |
Total | 158,571 | 148,953 |
Pass | Non-residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2022 | 256 | |
2021 | 2,217 | |
2020 | 1,009 | |
2019 | 387 | |
Prior | 17,793 | |
Total | 21,662 | 25,324 |
Pass | Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 46,203 | |
2022 | 470,380 | |
2021 | 303,372 | |
2020 | 93,220 | |
2019 | 45,091 | |
Prior | 50,515 | |
Total | 1,008,781 | 930,628 |
Pass | Commercial and Industrial | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 15,027 | |
2022 | 32,678 | |
2021 | 28,357 | |
2020 | 7,905 | |
2019 | 4,710 | |
Prior | 33,247 | |
Revolving Loans Converted to Term | 1,609 | |
Total | 123,533 | 110,069 |
Pass | Consumer | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 1,013 | |
Prior | 23 | |
Total | 1,036 | 546 |
Special Mention | ||
Loans Receivable and the Allowance for Loan Losses | ||
2020 | 922 | |
Total | 922 | 946 |
Special Mention | Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2020 | 922 | |
Total | $ 922 | 946 |
Substandard | ||
Loans Receivable and the Allowance for Loan Losses | ||
Total | 855 | |
Substandard | Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
Total | $ 855 |
Loans Receivable and the All_13
Loans Receivable and the Allowance for Credit Losses - Summary of allowance for credit losses on off balance sheet commitments (Details) - Impact of adoptiong ASC 326 $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |
Provisions of credit loss expense - off-balance sheet commitments | $ (200) |
Ending balance of allowance for Credit Loss on off-balance sheet Commitments | 1,386 |
Adoption of ASU 2016-13 | |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |
Ending balance of allowance for Credit Loss on off-balance sheet Commitments | $ 1,586 |
Real Estate Owned ("REO") (Deta
Real Estate Owned ("REO") (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) property | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Real Estate Owned ("REO") | |||
Number of foreclosed property owned | property | 1 | ||
Value of foreclosed property owned | $ 1,456 | $ 1,456 | |
REO expense including loss on sales and write-downs | $ 21 | $ 31 |
Federal Home Loan Bank of New_3
Federal Home Loan Bank of New York ("FHLB") Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Advances maturing in: | ||
One year or less | $ 7,000 | $ 7,000 |
After one to three years | 7,000 | |
After five years (due 2030) | 7,000 | 7,000 |
FHLB advances | $ 14,000 | $ 21,000 |
Weighted Average Interest Rate | ||
One year or less | 2.86% | 2.83% |
After one to three years | 2.86% | |
After five years (due 2030) | 1.61% | 1.61% |
FHLB advances weighted average interest rate (as a percent) | 2.24% | 2.43% |
Federal Home Loan Bank of New_4
Federal Home Loan Bank of New York ("FHLB") Advances - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank of New York ("FHLB") Advances | ||
Advances subject to early call or redemption features | $ 0 | |
Outstanding advances | 14,000 | $ 21,000 |
FHLB | ||
Federal Home Loan Bank of New York ("FHLB") Advances | ||
Maximum borrowing capacity | 35,500 | |
Outstanding advances | 14,000 | |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net periodic pension expense: | ||
Unrecognized net gain (loss) included in accumulated other comprehensive income | $ (18) | $ 17 |
Pension Plan | DRP | ||
Net periodic pension expense: | ||
Service cost | 31 | 30 |
Interest cost | 10 | 14 |
Actuarial (gain) loss amortized | (8) | 7 |
Total net periodic pension expense included in other non-interest expenses | $ 33 | $ 51 |
Benefits Plans - Narrative (Det
Benefits Plans - Narrative (Details) | 3 Months Ended | |||
Jul. 12, 2022 USD ($) installment $ / shares shares | Mar. 31, 2023 USD ($) installment $ / shares shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Benefits Plans | ||||
Balance remaining on the ESOP loan | $ 1,212,219,000 | |||
Balance remaining on the ESOP loan | $ 1,310,808,000 | |||
401 (K) Plan | ||||
Benefits Plans | ||||
Participants maximum contribution (as a percent) | 60% | |||
Employers matching contribution (as a percent) | 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. | $ 326,000 | $ 258,000 | ||
Amount borrowed from company | $ 7,827,260 | $ 5,184,200 | ||
Common stock shares acquired | shares | 782,726 | 518,420 | ||
Share price | $ / shares | $ 10 | $ 10 | ||
Interest rate on loans (as a percent) | 3.25% | 8.25% | ||
Number of installments of loans receivable | installment | 15 | 20 | ||
Balance remaining on the ESOP loan | 1,327,000 | |||
Balance remaining on the ESOP loan | $ 1,327,000 | |||
Shares committed to be released | shares | 2,894 | |||
Dividends on unallocated shares reduced from loan | $ 47,000 | 52,000 | ||
Dividends on unallocated shares charged to retained earnings | 42,000 | 36,000 | ||
ESOP 2021 | Employee Stock Ownership Plan Loan | ||||
Benefits Plans | ||||
Balance remaining on the ESOP loan | $ 6,850,000 | |||
Balance remaining on the ESOP loan | $ 6,850,000 | |||
Shares committed to be released | shares | 4,348 | |||
Pension Plan | SERP | ||||
Benefits Plans | ||||
Term of average base salary preceding retirement | 3 years | |||
Monthly installments | 50% | |||
Expense on defined benefit plan. | $ 60,000 | $ 119,000 | ||
2023 | 0 | |||
2024 | 0 | |||
2025 | 0 | |||
2026 | 0 | |||
2027 | $ 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Benefits Plans | ||
Allocated shares | $ 694,848 | $ 607,922 |
Shares committed to be released | 21,730 | 86,920 |
Unearned shares | 760,831 | 782,567 |
Total ESOP Shares | 1,477,409 | 1,477,409 |
Less allocated shares distributed to former or retired employees | (132,012) | (122,280) |
Total ESOP Shares Held by Trustee | 1,345,397 | 1,355,129 |
Fair value of unearned shares | $ 9,982,103 | $ 11,675,897 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 | |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finance Lease Amounts: | |||
ROU asset | $ 354 | $ 355 | |
Lease liability | 542 | 533 | |
Operating Lease Amounts: | |||
ROU assets | 2,182 | 2,312 | |
Lease liability | 2,234 | $ 2,363 | |
Amortization of ROU asset | 1 | $ 1 | |
Interest on lease liability | 9 | 9 | |
Operating Lease Costs | 144 | 142 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating leases | $ 142 | $ 138 | |
Finance lease | 93 years 9 months | 94 years | |
Operating leases | 6 years 25 days | 6 years 2 months 8 days | |
Finance lease | 9.50% | 9.50% | |
Operating leases | 1.46% | 1.50% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Maturities of Operating lease liabilities | ||
2023 | $ 380 | |
2024 | 436 | |
2025 | 398 | |
2026 | 235 | |
2027 | 239 | |
Thereafter | 636 | |
Total lease payments | 2,324 | |
Interest | (90) | |
Lease liability | 2,234 | $ 2,363 |
Maturities of Finance lease liabilities | ||
2023 | 23 | |
2024 | 30 | |
2025 | 30 | |
2026 | 31 | |
2027 | 33 | |
Thereafter | 4,016 | |
Total lease payments | 4,163 | |
Interest | (3,621) | |
Lease liability | $ 542 | $ 533 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets carried at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 18,266 | 18,042 |
Total Liabilities | 0 | 0 |
Recurring | Mutual funds | ||
Fair Value Disclosures | ||
Total assets | 18,266 | 18,041 |
Recurring | FHLMC | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Level 1 | Recurring | ||
Fair Value Disclosures | ||
Total assets | 18,266 | 18,041 |
Level 1 | Recurring | Mutual funds | ||
Fair Value Disclosures | ||
Total assets | $ 18,266 | 18,041 |
Level 2 | Recurring | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Level 2 | Recurring | FHLMC | ||
Fair Value Disclosures | ||
Total assets | $ 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Total assets | $ 2,311 | |
Total Liabilities | $ 0 | 0 |
Impaired loans [Member] | ||
Fair Value Disclosures | ||
Total assets | 855 | |
Real estate owned | ||
Fair Value Disclosures | ||
Total assets | 1,456 | |
Level 3 | ||
Fair Value Disclosures | ||
Total assets | 2,311 | |
Level 3 | Impaired loans [Member] | ||
Fair Value Disclosures | ||
Total assets | 855 | |
Level 3 | Real estate owned | ||
Fair Value Disclosures | ||
Total assets | $ 1,456 |
Fair Value Disclosures - Qualit
Fair Value Disclosures - Qualitative information about non-recurring Level III fair value measurements (Details) - Non recurring $ in Thousands | Dec. 31, 2022 USD ($) |
Fair Value Disclosures | |
Fair value | $ 2,311 |
Impaired loans | |
Fair Value Disclosures | |
Fair value | 855 |
Real estate owned | |
Fair Value Disclosures | |
Fair value | 1,456 |
Level 3 | |
Fair Value Disclosures | |
Fair value | 2,311 |
Level 3 | Impaired loans | |
Fair Value Disclosures | |
Fair value | $ 855 |
Level 3 | Impaired loans | Income approach | Capitalization rate | |
Fair Value Disclosures | |
Securities held for sale | 5.60 |
Level 3 | Impaired loans | Income approach | Weighted Average | Capitalization rate | |
Fair Value Disclosures | |
Securities held for sale | 5.60 |
Level 3 | Real estate owned | |
Fair Value Disclosures | |
Fair value | $ 1,456 |
Level 3 | Real estate owned | Income approach | Capitalization rate | |
Fair Value Disclosures | |
Securities held for sale | 12 |
Level 3 | Real estate owned | Income approach | Weighted Average | Capitalization rate | |
Fair Value Disclosures | |
Securities held for sale | 12 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying amounts and estimated fair value of our financial instruments (Details) - Non recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Total assets | $ 2,311 | |
Carrying Amount | Deposits- liabilities | ||
Fair Value Disclosures | ||
Financial Liabilities | $ 1,208,393 | 1,121,955 |
Carrying Amount | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 14,000 | 21,000 |
Carrying Amount | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 77,045 | 95,308 |
Carrying Amount | Certificates of deposit | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Carrying Amount | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,266 | 18,041 |
Carrying Amount | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Carrying Amount | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 26,108 | 26,395 |
Carrying Amount | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | 1,310,808 | 1,212,219 |
Carrying Amount | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 923 | 1,238 |
Carrying Amount | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 9,919 | 8,597 |
Fair Value | Deposits- liabilities | ||
Fair Value Disclosures | ||
Financial Liabilities | 1,210,167 | 1,121,107 |
Fair Value | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 12,846 | 19,437 |
Fair Value | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 77,045 | 95,308 |
Fair Value | Certificates of deposit | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Fair Value | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,266 | 18,041 |
Fair Value | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Fair Value | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 23,084 | 22,865 |
Fair Value | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | 1,287,299 | 1,191,483 |
Fair Value | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 923 | 1,238 |
Fair Value | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 9,919 | 8,597 |
Level 1 | Fair Value | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 77,045 | 95,308 |
Level 1 | Fair Value | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,266 | 18,041 |
Level 2 | Fair Value | Deposits- liabilities | ||
Fair Value Disclosures | ||
Financial Liabilities | 1,210,167 | 1,121,107 |
Level 2 | Fair Value | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 12,846 | 19,437 |
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 | |
Level 2 | Fair Value | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 23,084 | 22,865 |
Level 2 | Fair Value | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 923 | 1,238 |
Level 2 | Fair Value | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 9,919 | 8,597 |
Level 3 | ||
Fair Value Disclosures | ||
Total assets | 2,311 | |
Level 3 | Fair Value | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | $ 1,287,299 | $ 1,191,483 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue Recognition | ||
Deposit-related fees and charges | $ 14 | $ 18 |
Loan-related fees and charges | 350 | 171 |
Electronic banking fees and charges | 243 | 202 |
Income from bank owned life insurance | 150 | 148 |
Investment advisory fees | 117 | 137 |
Unrealized gain (loss) on equity securities | 225 | (634) |
Miscellaneous | 16 | 16 |
Total Non-Interest Income | $ 1,115 | $ 58 |
Other Non-Interest Expenses (De
Other Non-Interest Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Non-Interest Expenses | ||
Other | $ 766 | $ 615 |
Service contracts | 319 | 257 |
Consulting expense | 189 | 258 |
Telephone | 157 | 142 |
Directors compensation | 224 | 139 |
Audit and accounting | 111 | 205 |
Insurance | 95 | 82 |
Director, officer, and employee expense | 58 | 58 |
Legal fees | 120 | 154 |
Office supplies and stationary | 50 | 40 |
Recruiting expense | 2 | 28 |
Other non-interest expenses | $ 2,091 | $ 1,978 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share | ||
Net income | $ 11,244 | $ 3,645 |
Weighted average shares issued | 15,769 | 16,378 |
Less: Weighted average unearned ESOP shares | (768) | (855) |
Less: Weighted average unvested restricted shares | (352) | |
Basic weighted average shares outstanding | 14,649 | 15,523 |
Add: Dilutive effect of restricted stock | 47 | |
Diluted weighted average shares outstanding | 14,696 | |
Net income per share | ||
Basic | $ 0.77 | $ 0.23 |
Diluted | $ 0.77 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - 2022 Equity Incentive Plan | Nov. 17, 2022 shares | Sep. 30, 2022 director shares | Mar. 31, 2023 shares | Dec. 31, 2022 shares | Sep. 29, 2022 shares |
Stock Compensation Plans | |||||
Number of shares authorized under incentive plan | 1,369,771 | ||||
Number of eligible non-employee directors | director | 6 | ||||
Vesting rate of plan (%) | 20% | ||||
Number of common stock reserved | 137,637 | 137,637 | |||
Employees | |||||
Stock Compensation Plans | |||||
Number of common stock reserved | 98,311 | 98,311 | |||
Restricted stock | |||||
Stock Compensation Plans | |||||
Number of common stock reserved | 39,326 | 39,326 | |||
Restricted stock | 6 Non-employee directors | |||||
Stock Compensation Plans | |||||
Number of common stock awarded | 86,880 | ||||
Restricted stock | Employees | |||||
Stock Compensation Plans | |||||
Number of common stock awarded | 265,157 | ||||
Nonqualified stock options | 6 Non-employee directors | |||||
Stock Compensation Plans | |||||
Number of common stock awarded | 217,206 | ||||
Nonqualified stock options | Employees | |||||
Stock Compensation Plans | |||||
Number of common stock awarded | 662,891 |
Stock Compensation Plans - Rest
Stock Compensation Plans - Restricted stock activity (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Outstanding, Beginning of year | 352,037 | |
Outstanding, end of year | 352,037 | |
Weighted Average Grant -Date Market Price | ||
Outstanding, Beginning of year | $ 13.67 | |
Outstanding, end of year | $ 13.67 | |
Compensation expense related to restricted stock | $ 241,000 | |
Compensation cost not yet recognized | $ 4,500 | $ 4,700 |
Period over which unrecognized compensation costs expected to recognized | 5 years |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock option activity (Details) - Stock option - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Options | ||
Outstanding, Beginning of year | 880,097 | |
Outstanding, end of year | 880,097 | |
Weighted Average Grant -Date Market Price | ||
Outstanding, Beginning of year | $ 13.67 | |
Outstanding, end of year | $ 13.67 | |
Compensation cost recognized | $ 192,000 | |
Unrecognized compensation cost | $ 3,600 | $ 3,700 |
Period over which unrecognized compensation costs expected to recognized | 5 years |