Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 10, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-40610 | |
Entity Registrant Name | Texas Community Bancshares, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 86-2760335 | |
Entity Address, Address Line One | 215 West Broad Street | |
Entity Address, City or Town | Mineola | |
Entity Address State Or Province | TX | |
Entity Address, Postal Zip Code | 75773 | |
City Area Code | 903 | |
Local Phone Number | 569-2602 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | TCBS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,257,759 | |
Entity Central Index Key | 0001849466 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 5,828 | $ 5,651 |
Federal funds sold | 19,742 | 16,264 |
Cash and cash equivalents | 25,570 | 21,915 |
Interest bearing deposits in banks | 5,335 | 14,955 |
Securities available for sale | 63,978 | 56,800 |
Securities held to maturity (fair values of $30,084 at March 31, 2022 and $33,673 at December 31, 2021) | 31,530 | 33,682 |
Loans receivable, net of allowance for loan and lease losses of $1,610 at March 31, 2022 and $1,592 at December 31, 2021 | 224,469 | 220,162 |
Net investment in direct financing leases | 94 | 105 |
Accrued interest receivable | 904 | 931 |
Premises and equipment | 6,336 | 6,215 |
Bank-owned life insurance | 6,044 | 6,020 |
Foreclosed assets | 209 | 209 |
Restricted investments carried at cost | 2,040 | 2,037 |
Core deposit intangible | 496 | 529 |
Mortgage servicing rights, net | 8 | 8 |
Deferred income taxes | 1,383 | 651 |
Other assets | 590 | 607 |
Total assets | 368,986 | 364,826 |
Liabilities | ||
Noninterest bearing | 42,880 | 40,576 |
Interest bearing | 238,796 | 234,357 |
Total deposits | 281,676 | 274,933 |
Advances from Federal Home Loan Bank | 27,053 | 27,571 |
Accrued expenses and other liabilities | 2,181 | 2,190 |
Total liabilities | 310,910 | 304,694 |
Shareholders' and Members' Equity | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none issued and outstanding at March 31, 2022 | ||
Common stock, $0.01 par value, 19,000,000 shares authorized, 3,257,759 shares issued and outstanding at March 31, 2022 | 33 | 33 |
Additional paid in capital | 30,950 | 30,932 |
Retained earnings | 32,720 | 32,329 |
Accumulated other comprehensive (loss) income | (3,184) | (686) |
Unearned Employee Stock Ownership Program ("ESOP") shares, at cost | (2,443) | (2,476) |
Total shareholders' and members' equity | 58,076 | 60,132 |
Total liabilities and members' equity | $ 368,986 | $ 364,826 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) $ in Thousands | Mar. 31, 2022USD ($)$ / sharesshares |
Consolidated Statements of Financial Condition | |
Fair value of securities held to maturity | $ | $ 30,084 |
Allowance for loan and lease losses | $ | $ 1,610 |
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized | 19,000,000 |
Common stock, shares issued | 3,257,759 |
Common stock, shares outstanding | 3,257,759 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest Income | ||
Loans, including fees | $ 2,374 | $ 2,401 |
Debt securities | ||
Taxable | 335 | 142 |
Non taxable | 38 | 36 |
Dividends on restricted investments | 5 | 4 |
Federal funds sold | 9 | |
Deposits with banks | 6 | 20 |
Total interest income | 2,767 | 2,603 |
Interest Expense | ||
Deposits | 311 | 401 |
Advances from Federal Home Loan Bank | 144 | 160 |
Other | 3 | 3 |
Total interest expense | 458 | 564 |
Net Interest Income | 2,309 | 2,039 |
Provision for Loan and Lease Losses | 40 | 2 |
Net Interest Income After Provision for Loan and Lease Losses | 2,269 | 2,037 |
Noninterest Income | ||
Service charges on deposit accounts | 165 | 129 |
Other service charges and fees | 256 | 224 |
Net appreciation on bank-owned life insurance | 25 | 26 |
Other income | 7 | 4 |
Total noninterest income | 453 | 383 |
Noninterest Expenses | ||
Salaries and employee benefits | 1,362 | 1,230 |
Occupancy and equipment expense | 192 | 182 |
Data processing | 191 | 224 |
Contract services | 35 | 119 |
Director fees | 96 | 75 |
Other expense | 367 | 298 |
Total noninterest expenses | 2,243 | 2,128 |
Income Before Income Taxes | 479 | 292 |
Income Tax Expense | 88 | 50 |
Net Income | $ 391 | $ 242 |
Earnings per share - basic | $ 0.13 | |
Earnings per share - diluted | $ 0.13 | |
Weighted-average shares outstanding - basic | 3,010,314 | |
Weighted-average shares outstanding - diluted | 3,010,314 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive (Loss) Income | ||
Net Income | $ 391 | $ 242 |
Change in unrealized depreciation on investment securities available for sale, before tax | (3,161) | (27) |
Total other items of comprehensive income (loss) | (3,161) | (27) |
Comprehensive (Loss) Income Before Tax | (2,770) | 215 |
Income tax expense related to other items of comprehensive income (loss) | 663 | 6 |
Comprehensive Income (Loss) | $ (2,107) | $ 221 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' and Members' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unearned ESOP Shares. | Total |
Beginning balance at Dec. 31, 2020 | $ 31,811 | $ 128 | $ 31,939 | |||
Net Income | 242 | 242 | ||||
Change in APIC | $ (403) | (403) | ||||
Net changes in fair value of available for sale securities, net of tax (expense) benefit | (21) | (21) | ||||
Ending balance at Mar. 31, 2021 | (403) | 32,053 | 107 | 31,757 | ||
Beginning balance at Dec. 31, 2021 | $ 33 | 30,932 | 32,329 | (686) | $ (2,476) | 60,132 |
Net Income | 391 | 391 | ||||
ESOP shares earned | 18 | 33 | 51 | |||
Net changes in fair value of available for sale securities, net of tax (expense) benefit | (2,498) | (2,498) | ||||
Ending balance at Mar. 31, 2022 | $ 33 | $ 30,950 | $ 32,720 | $ (3,184) | $ (2,443) | $ 58,076 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' and Members' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Shareholders' and Members' Equity | ||
Tax on fair value of available for sale securities | $ 663 | $ 6 |
ESOP shares earned (in shares) | 3,258 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net income | $ 391 | $ 242 |
Adjustments to reconcile net income to net cash from operating activities | ||
Provision for loan and lease losses | 40 | 2 |
Net amortization of securities | 140 | 117 |
Depreciation and amortization | 109 | 108 |
Appreciation on bank-owned life insurance | (25) | (26) |
ESOP compensation expense for allocated shares | 51 | |
Deferred income tax | (68) | (4) |
Net change in | ||
Accrued interest receivable | 27 | 229 |
Mortgage servicing rights | 1 | |
Other assets | (22) | 40 |
Accrued expenses and other liabilities | 30 | 186 |
Net Cash from Operating Activities | 673 | 895 |
Investing Activities | ||
Net change in interest bearing deposits in banks | 9,620 | (6,980) |
Purchases | (11,519) | |
Maturities, prepayments and calls | 1,087 | 1,135 |
Purchases | (6,213) | |
Maturities, prepayments and calls | 2,104 | 4,964 |
Purchases of restricted investments | (3) | (4) |
Loan originations and principal collections, net | (4,346) | 999 |
Net (increase) decrease in net investment in direct financing leases | 11 | (57) |
Additions to premises and equipment | (197) | (58) |
Net Cash used for Investing Activities | (3,243) | (6,214) |
Financing Activities | ||
Net increase in deposits | 6,742 | 17,419 |
Payments on long-term FHLB and other borrowings | (517) | (560) |
Proceeds from issuance of common stock, net of conversion costs | (403) | |
Net Cash from Financing Activities | 6,225 | 16,456 |
Net Change in Cash and Cash Equivalents | 3,655 | 11,137 |
Cash and Cash Equivalents at Beginning of Year | 21,915 | 8,073 |
Cash and Cash Equivalents at End of Year | $ 25,570 | $ 19,210 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies General Texas Community Bancshares, Inc. (the “Company”), a Maryland corporation and registered bank holding company, was incorporated on March 5, 2021 to become the holding company for Mineola Community Bank, SSB (the “Bank”) upon the conversion of Mineola Community Mutual Holding Company (“MHC”) from a mutual holding company to a stock holding company (the “Conversion”). The Conversion was completed on July 14, 2021. The Company’s shares began trading on the NASDAQ under the symbol TCBS on July 15, 2021. In connection with the Conversion, the Company acquired , which was deducted from the gross offering proceeds. The Company also contributed of cash to Texas Community Bancshares Foundation, Inc. (the “Foundation”), a charitable foundation formed in connection with the Conversion. The Bank’s employee stock ownership plan purchased shares of common stock issued by the Company, including the shares contributed to the Foundation. The ESOP purchased the shares using a loan from the Company. The Company contributed Following the Conversion, voting rights in the Company are held and exercised exclusively by the shareholders of the Company. Deposit account holders continue to be insured by the FDIC. In connection with the Conversion, liquidation accounts were established by the Company and the Bank in an aggregate amount equal to (i) the MHC’s ownership interest in the shareholders’ equity of Mineola Community Financial Group, Inc. (the former subsidiary holding company of the Bank) as of the date of the latest statement of financial condition included in the Company’s definitive prospectus dated May 14, 2021, plus (ii) the value of the net assets of the MHC as of the date of the MHC’s latest statement of financial condition before the consummation of the Conversion (excluding the MHC’s ownership interest in Mineola Community Financial Group, Inc.). Each eligible account holder and supplemental eligible account holder is entitled to a proportionate share of the liquidation accounts in the event of a liquidation of (i) the Company and the Bank or (ii) the Bank, and only in such events. This share will be reduced if the eligible account holder’s or supplemental account holder’s deposit balance falls below the amounts on the date of record and will cease to exist if the account is closed. The liquidation account will never be increased despite any increase after conversion in the related deposit balance. The Bank may not pay a dividend on its capital stock if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements. In addition, the Company is subject to certain regulations related to the payment of dividends and the repurchase of its capital stock. The Conversion was accounted for as a change in corporate form with the historic basis of the Bank’s assets, liabilities and equity unchanged as a result. The Bank’s primary source of revenue is providing loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area and the Dallas Fort Worth Metroplex. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (GAAP) and to general practices of the banking industry. Policies and practices which materially affect the determination of financial position, results of operations and cash flows are summarized as follows: Interim Financial Statements The interim unaudited consolidated financial statements as of March 31, 2022, and for the three months ended March 31, 2022 and 2021, are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Such adjustments are the only adjustments contained in these unaudited consolidated financial statements. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission, and therefore certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been omitted. The results of operations for the three months ended March 31, 2022, are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2022, or any other period. Certain prior period data presented in the consolidated financial statements have been reclassified to conform with the current period presentation. The accompanying consolidated financial statements have been derived from and should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company for the year ended December 31, 2021. Reference is made to the accounting policies of the Company described in the Notes to Consolidated Financial Statements contained in Form 10-K for the year ended December 31, 2021. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, which include Mineola Community Bank, S.S.B. and its wholly-owned subsidiary Mineola Financial Service Corporation, which is not actively being utilized. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted–average number of common shares outstanding during the period, including allocated and committed-to-be-released ESOP shares, during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. There were dilutive shares as of March 31, 2022. There were outstanding Three Months Ended March 31, 2022 Net Income $ 391 Weighted average shares outstanding for basic earnings per share: Average shares outstanding 3,257,759 Less: average unearned ESOP shares (247,445) Weighted average shares outstanding for basic earnings per share 3,010,314 Additional dilutive shares — Weighted average shares outstanding for dilutive earnings per share 3,010,314 Basic and dilutive earnings per share $ 0.13 |
Debt Securities
Debt Securities | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities | |
Debt Securities | Note 2 - Debt Securities The amortized cost and fair value of securities, with gross unrealized gains and losses, follows: March 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 18,076 $ 1 $ (803) $ 17,274 Collateralized mortgage obligations 11,060 — (773) 10,287 State and municipal 14,950 11 (1,069) 13,892 Corporate bonds 4,750 — (387) 4,363 U.S. Government and agency 19,172 — (1,010) 18,162 Total securities available for sale $ 68,008 $ 12 $ (4,042) $ 63,978 Held to Maturity Debt Securities: Residential mortgage-backed $ 29,497 $ 23 $ (1,453) $ 28,067 State and municipal 2,033 5 (21) 2,017 Total securities held to maturity $ 31,530 $ 28 $ (1,474) $ 30,084 December 31, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 19,073 $ 113 $ (401) $ 18,785 Collateralized mortgage obligations 11,202 — (126) 11,076 State and municipal 11,670 36 (167) 11,539 Corporate bonds 2,500 — (94) 2,406 U.S. Government and agency 13,224 — (230) 12,994 Total securities available for sale $ 57,669 $ 149 $ (1,018) $ 56,800 Held to Maturity Debt Securities: Residential mortgage-backed $ 31,277 $ 374 $ (392) $ 31,259 State and municipal 2,405 15 (6) 2,414 Total securities held to maturity $ 33,682 $ 389 $ (398) $ 33,673 During the three months ended March 31, 2022 and 2021, the Company had no sales of available for sale securities or held to maturity securities. At March 31, 2022 and December 31, 2021, securities with a carrying value of $2,715 and $2,745, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. The amortized cost and fair value of debt securities by contractual maturity at March 31, 2022, follows: Available for Sale Held to Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Due in one year $ — $ — $ — $ — Due from one to five years 15,911 15,236 770 774 Due in five to ten years 14,052 13,039 134 124 After ten years 8,909 8,142 1,129 1,119 Residential mortgage-backed 18,076 17,274 29,497 28,067 Collateralized mortgage obligations 11,060 10,287 — — Total $ 68,008 $ 63,978 $ 31,530 $ 30,084 The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2022 Less than 12 months 12 months or longer Gross Gross Fair Unrealized Fair Unrealized Category (number of securities) Value Losses Value Losses Residential mortgage-backed (57,10) $ 31,069 $ (1,435) $ 10,755 $ (821) Collateralized mortgage obligations (5) 10,287 (773) — — State and municipal (19) 14,866 (1,090) — — Corporate bonds (8) 3,613 (387) — — U.S. Government and agency (15) 18,162 (1,010) — — Total $ 77,997 $ (4,695) $ 10,755 $ (821) December 31, 2021 Less than 12 months 12 months or longer Gross Gross Fair Unrealized Fair Unrealized Category (number of securities) Value Losses Value Losses Residential mortgage-backed (20,5) $ 22,903 $ (624) $ 5,666 $ (169) Collateralized mortgage obligations (5) 11,076 (126) — — State and municipal (9) 8,416 (173) — — Corporate bonds (2) 906 (94) — — U.S. Government and agency (13) 12,994 (230) — — Total $ 56,295 $ (1,247) $ 5,666 $ (169) Mortgage-backed Securities The unrealized losses on the Company’s investments in residential mortgage-backed securities were caused by market interest rate increases and increases in prepayment speeds. The Company purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by agencies of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to changes in market interest rates and increases in prepayment speeds and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2022 or December 31, 2021. U.S. Government and Agency The unrealized losses on the Company’s investments in U.S. government and agency securities were caused by interest rate increases. The contractual cash flows of those investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to changes in market interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2022 or December 31, 2021. State and Municipal The unrealized losses on the Company’s investments in state and municipal securities were caused by interest rate increases. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to changes in market interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2022 or December 31, 2021. Corporate Bonds The unrealized losses on the Company’s investments in corporate bond securities were caused by interest rate increases. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to changes in market interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2022 or December 31, 2021. Other-Than-Temporary Impairment Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) evaluation by the Company of (a) its intent to sell a debt security prior to recovery and (b) whether it is more likely than not the Company will have to sell the debt security prior to recovery. As of March 31, 2022 and December 31, no investment securities were other-than- temporarily impaired. |
Loans and Leases
Loans and Leases | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Leases | |
Loans and Leases | Note 3 - Loans and Leases A summary of the balances of loans and leases follows: March 31, December 31, 2022 2021 Real estate $ 213,935 $ 209,946 Agriculture 211 234 Commercial 6,745 6,141 Consumer and other 5,282 5,538 Subtotal 226,173 221,859 Less allowance for loan and lease losses (1,610) (1,592) Loans and leases, net $ 224,563 $ 220,267 Paycheck Protection Program Loans In March 2020, the United States government passed legislation designed to help the nation’s economy recover from the coronavirus disease 2019 (“COVID‐19”) pandemic. This legislation is called the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which provides economy‐wide financial stimulus in the form of financial aid to individuals, businesses, nonprofit entities, states and municipalities. The CARES Act temporarily added a new product titled the “Paycheck Protection Program” (PPP) to the U.S. Small Business Administration’s loan program. The CARES Act permits the SBA to guarantee 100 percent of these loans and also provides for forgiveness of up to the full principal amount of these loans. As of March 31, 2022, the Company originated $5,484 in PPP loans of which $5,475 had been forgiven. Additionally, the Company recognized $0 and $4 of PPP loan interest in interest income during the three months ended March 31, 2022 and 2021, respectively. The following tables set forth information regarding the activity in the allowance for loan and lease losses for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021: March 31, 2022 Consumer Real Estate Agriculture Commercial and Other Total Allowance for loan and lease losses: Balance, January 1, 2022 $ 1,178 $ 1 $ 357 $ 56 $ 1,592 Charge-offs — — — (26) (26) Recoveries — — — 4 4 Provision 4 — 6 30 40 Balance, March 31, 2022 $ 1,182 $ 1 $ 363 $ 64 $ 1,610 Balance, March 31, 2022 allocated to loans and leases individually evaluated for impairment $ — $ — $ 300 $ — $ 300 Balance, March 31, 2022 allocated to loans and leases collectively evaluated for impairment $ 1,182 $ 1 $ 63 $ 64 $ 1,310 Loans and leases receivable: Balance, March 31, 2022 loans and leases individually evaluated for impairment $ 1,194 $ — $ 459 $ — $ 1,653 Balance, March 31, 2022 loans and leases collectively evaluated for impairment 212,741 211 6,286 5,282 224,520 Balance, March 31, 2022 $ 213,935 $ 211 $ 6,745 $ 5,282 $ 226,173 March 31, 2021 Consumer Real Estate Agriculture Commercial and Other Total Allowance for loan and lease losses: Balance, January 1, 2021 $ 1,171 $ 2 $ 355 $ 33 $ 1,561 Charge-offs — — — (13) (13) Recoveries — — — 12 12 Provision (Credit) 4 (2) (14) 14 2 Balance, March 31, 2021 $ 1,175 $ — $ 341 $ 46 $ 1,562 December 31, 2021 Consumer Allowance for loan and lease losses: Real Estate Agriculture Commercial and Other Total Balance, December 31, 2021 allocated to loans and leases individually evaluated for impairment $ 8 $ — $ 300 $ — $ 308 Balance, December 31, 2021 allocated to loans and leases collectively evaluated for impairment $ 1,170 $ 1 $ 57 $ 56 $ 1,284 Loans and leases receivable: Balance, December 31, 2021 loans and leases individually evaluated for impairment $ 2,437 $ — $ 474 $ 33 $ 2,944 Balance, December 31, 2021 loans and leases collectively evaluated for impairment 207,509 234 5,667 5,505 218,915 Balance, December 31, 2021 $ 209,946 $ 234 $ 6,141 $ 5,538 $ 221,859 Internal Risk Categories The Company monitors credit quality within its portfolio segments based on primary credit quality indicators. All of the Company’s loans and leases are evaluated using pass rated or reservable criticized as the primary credit quality indicator. The term reservable criticized refers to those loans and leases that are internally classified or listed by the Company as special mention, substandard, doubtful or loss. These assets pose an elevated risk and may have a high probability of default or total loss. The classifications of loans and leases reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on credits quarterly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each quarterly reporting period. The methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness; however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits with this classification have often become collateral dependent and any shortage in collateral or other likely loss amount is recorded as a specific valuation allowance. Credits rated doubtful are generally also placed on nonaccrual. Credits rated loss are those that are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Pass rated refer to loans that are not considered criticized. In addition to this primary credit quality indicator, the Company uses other credit quality indicators for certain types of loans. The Company evaluates the loan risk grading system definitions and allowance for loan and lease loss methodology on an ongoing basis. No significant changes were made during the three months ended March 31, 2022 or during the year ended December 31, 2021. The following tables set forth information regarding the internal classification of the loan and lease portfolio: March 31, 2022 Special Pass Mention Substandard Doubtful Loss Total Real estate Construction and land $ 18,789 $ 144 $ 93 $ — $ — $ 19,026 Farmland 5,843 — 345 — — 6,188 1‑4 residential & multi-family 153,440 281 1,773 — — 155,494 Commercial real estate 33,107 — 120 — — 33,227 Agriculture 211 — — — — 211 Commercial 6,275 — 43 427 — 6,745 Consumer and other 5,257 11 14 — — 5,282 Total $ 222,922 $ 436 $ 2,388 $ 427 $ — $ 226,173 December 31, 2021 Special Pass Mention Substandard Doubtful Loss Total Real estate Construction and land $ 17,560 $ — $ 90 $ — $ — $ 17,650 Farmland 6,083 — 359 — — 6,442 1‑4 residential & multi-family 151,708 556 1,904 — — 154,168 Commercial real estate 30,418 — 1,268 — — 31,686 Agriculture 234 — — — — 234 Commercial 5,652 — 52 437 — 6,141 Consumer and other 5,478 12 48 — — 5,538 Total $ 217,133 $ 568 $ 3,721 $ 437 $ — $ 221,859 The following table sets forth information regarding the credit risk profile based on payment activity of the loan and lease portfolio: March 31, 2022 December 31, 2021 Non- Non- Performing performing Total Performing performing Total Real estate Construction and land $ 19,026 $ — $ 19,026 $ 17,650 $ — $ 17,650 Farmland 6,009 179 6,188 6,250 192 6,442 1‑4 residential & multi-family 154,803 691 155,494 153,400 768 154,168 Commercial real estate 33,108 119 33,227 31,563 123 31,686 Agriculture 211 — 211 234 — 234 Commercial 6,286 459 6,745 5,667 474 6,141 Consumer and other 5,282 — 5,282 5,505 33 5,538 Total $ 224,725 $ 1,448 $ 226,173 $ 220,269 $ 1,590 $ 221,859 The following table sets forth information regarding the delinquencies not on nonaccrual within the loan and lease portfolio: March 31, 2022 Recorded 90 Investment 30‑89 Days and Total Total > 90 Days and Past Due Greater Past Due Current Loans Still Accruing Real estate Construction and land $ 556 $ — $ 556 $ 18,470 $ 19,026 $ — Farmland 166 — 166 6,022 6,188 — 1‑4 residential & multi-family 429 — 429 155,065 155,494 — Commercial real estate — — — 33,227 33,227 — Agriculture — — — 211 211 — Commercial 63 — 63 6,682 6,745 — Consumer and other 108 — 108 5,174 5,282 — Total $ 1,322 $ — $ 1,322 $ 224,851 $ 226,173 $ — December 31, 2021 Recorded 90 Investment 30‑89 Days and Total Total > 90 Days and Past Due Greater Past Due Current Loans Still Accruing Real estate Construction and land $ 1,620 $ — $ 1,620 $ 16,030 $ 17,650 $ — Farmland — — — 6,442 6,442 — 1‑4 residential & multi-family 305 — 305 153,863 154,168 — Commercial real estate — — — 31,686 31,686 — Agriculture — — — 234 234 — Commercial 30 — 30 6,111 6,141 — Consumer and other 19 — 19 5,519 5,538 — Total $ 1,974 $ — $ 1,974 $ 219,885 $ 221,859 $ — The following table sets forth information regarding the nonaccrual status within the loan and lease portfolio as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 Real estate Construction and land $ — $ — Farmland 179 192 1‑4 residential & multi-family 691 768 Commercial real estate 119 123 Agriculture — — Commercial 459 474 Consumer and other — 33 Total $ 1,448 $ 1,590 A loan is considered impaired when based on current information and events; it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans (nonaccrual loans), loans performing but with deterioration that leads to doubt regarding collectability and also includes loans modified in troubled debt restructurings when concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. All interest accrued but not collected for loans that are placed on nonaccrual or charged‐off is reversed against interest income. The interest on these loans is accounted for on the cash‐basis or cost‐recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. No interest income was recognized for loans on nonaccrual status for the three months ended March 31, 2022 and 2021. The following table presents interest income recognized on impaired loans for the three months ended March 31, 2022 and 2021: March 31, 2022 2021 Real estate 1-4 residential & multi-family $ 2 $ 2 Commercial real estate 13 15 Commercial — 7 $ 15 $ 24 The following table sets forth information regarding impaired loans as of March 31, 2022: Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With no related allowance Real estate Farmland $ 179 $ 232 $ — $ 186 1‑4 residential & multi-family 896 943 — 937 Commercial real estate 120 123 — 122 Commercial 158 166 — 98 With a related allowance Commercial 301 308 300 369 Total Real estate Farmland 179 232 — 186 1-4 residential & multi-family 896 943 — 937 Commercial real estate 120 123 — 122 Commercial 459 474 300 467 $ 1,654 $ 1,772 $ 300 $ 1,712 The following table sets forth information regarding impaired loans as of December 31, 2021: Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With no related allowance Real estate Farmland $ 192 $ 240 $ — $ 96 1‑4 residential & multi-family 977 1,027 — 488 Commercial real estate 123 125 — 62 Commercial 37 42 — 19 Consumer and other 33 33 — 17 With a related allowance Real estate Commercial real estate 1,145 1,145 8 573 Commercial 437 442 300 219 Total Real estate Farmland 192 240 — 96 1-4 residential & multi-family 977 1,027 — 488 Commercial real estate 1,268 1,270 8 635 Commercial 474 484 300 238 Consumer and other 33 33 — 17 $ 2,944 $ 3,054 $ 308 $ 1,474 During the three months ended March 31, 2022, there were no modifications resulting in troubled debt restructurings. During the three months ended March 31, 2021, there were two modifications resulting in troubled debt restructurings totaling approximately $90. The first loan is a single-family mortgage loan with an outstanding balance of approximately $72 as of March 31, 2022 and a second loan is a commercial and industrial loan with an outstanding balance of approximately $18 as of March 31, 2022. There have been no subsequently defaulted troubled debt restructurings. At March 31, 2022 and December 31, 2021, the Company had no commitments to loan additional funds to borrowers whose loans have been modified but may on occasion extend financing to these borrowers. At March 31, 2022 and December 31, 2021, the Company had a recorded investment of $482 and $493, respectively, of troubled debt restructured loans. The Company has no current commitments to loan additional funds to the borrowers whose loans have been modified. |
Off-Balance-Sheet Activities
Off-Balance-Sheet Activities | 3 Months Ended |
Mar. 31, 2022 | |
Off-Balance-Sheet Activities | |
Off-Balance-Sheet Activities | Note 4 - Off-Balance-Sheet Activities The Company is a party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. At March 31, 2022 and December 31, 2021, the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount March 31, December 31, 2022 2021 Commitments to extend credit $ 30,110 $ 27,374 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. The Company is party to an agreement with the Federal Reserve Bank of Boston that provides the Company with a federal funds line of credit in an amount tied to securities on deposit with that bank. The Company pays no fees for this line of credit and has not drawn upon it. The Company is party to agreements with its correspondent banks that provide the Company with lines for up to $15,000 federal funds line of credit to support overnight funding needs. The Company pays no fees for this line of credit and has not drawn upon it. The lines renew annually. At March 31, 2022, the Company had unused borrowing capacity of At March 31, 2022, the Company had no commitments to purchase securities. The Company has no other off-balance-sheet arrangements or transactions with unconsolidated, special purpose entities that would expose the Company to liability that is not reflected on the face of the consolidated statements of financial condition. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | Note 5 - Supplemental Cash Flow Information Supplemental disclosure of cash flow information is as follows: March 31, 2022 2021 Supplemental cash flow information: Cash paid for Interest on deposits $ 326 $ 421 Interest on FHLB advances 145 161 Other interest 3 3 Income taxes — 21 |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2022 | |
Minimum Regulatory Capital Requirements | |
Minimum Regulatory Capital Requirements | Note 6 - Minimum Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. The Bank has opted into the Community Bank Leverage Ratio (CBLR) framework, beginning with the Call Report filed for the first quarter of 2020. At March 31, 2022 and December 31, 2021, the Bank’s CBLR ratio was 12.84% and 12.89%, respectively, which exceeded all regulatory capital requirements under the CBLR framework and the Bank was considered to be “well-capitalized.” Under the CLBR framework, banks and their bank holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio (equal to tier 1 capital divided by average total consolidated assets) of greater than 9%, are eligible to opt into the CBLR framework. Qualifying community banking organizations that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9% will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies’ capital rules (generally applicable capital rules) and, if applicable, will be considered to have met the well-capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. Accordingly, beginning January 1, 2022, qualifying community banking organizations that exceed the 9% CBLR will be considered to have met: (i) the generally applicable risk-based and leverage capital requirements of the generally applicable capital rules; (ii) the capital ratio requirements in order to be considered well-capitalized under the prompt corrective action framework; (iii) any other applicable capital or leverage requirements. A qualifying community banking organization that elects to be under the CBLR framework generally would be exempt from the current capital framework, including risk-based capital requirements and capital conservation buffer requirements. On April 6, 2020, the federal banking regulators, implementing the applicable provisions of the CARES Act, issued interim rules which modified the CBLR framework so that: (i) beginning second quarter 2020 and until the end of the year, a banking organization that has a leverage ratio of 8% or greater and meets certain other criteria may elect to use the CBLR framework; and (ii) community banking organizations had until January 1, 2022 before the CBLR requirement is reestablished at greater than 9%. Under the interim rules, the minimum CBLR was 8% beginning in the second quarter of 2020 and for the remainder of calendar year 2020, 8.5% for calendar year 2021, and 9% thereafter. The interim rules also maintain a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls no more than 1% below the applicable community bank leverage ratio. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7 - Fair Value Measurements Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. ● Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 Inputs – Significant unobservable inputs that reflect an entity ’ s own assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There have been no changes in valuation techniques during either the three months ended March 31, 2022 or the year ended December 31, 2021. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market- based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Available for Sale Securities – Securities classified as available for sale are reported at fair value 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 bond’s terms and conditions, among other things. Impaired Loans – Impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on internally customized discounting criteria. Foreclosed Assets – Fair values are valued at the time the loan is foreclosed upon and the asset is transferred from loans. The value is based upon primarily third-party appraisals, less estimated costs to sell. The appraisals are generally discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and the client’s business. Such discounts are typically significant and result in Level 3 classification of the inputs for determining fair value. Foreclosed assets are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same or similar factors above. The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 17,274 $ — $ 17,274 Collateralized mortgage obligations — 10,287 — 10,287 State and municipal — 13,892 — 13,892 Corporate bonds — 4,363 — 4,363 U.S. Government and agency — 18,162 — 18,162 Total financial assets $ — $ 63,978 $ — $ 63,978 December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 18,785 $ — $ 18,785 Collateralized mortgage obligations — 11,076 — 11,076 State and municipal — 11,539 — 11,539 Corporate bonds — 2,406 — 2,406 U.S. Government and agency — 12,994 — 12,994 Total financial assets $ — $ 56,800 $ — $ 56,800 Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table summarizes financial and non-financial assets measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2022 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Impaired loans $ — $ — $ 1 $ 1 Nonfinancial assets Foreclosed assets — — 209 209 $ — $ — $ 210 $ 210 December 31, 2021 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Impaired loans $ — $ — $ 1,274 $ 1,274 Nonfinancial assets Foreclosed assets — — 209 209 $ — $ — $ 1,483 $ 1,483 During the three months ended March 31, 2022 and 2021, certain impaired loans were remeasured and reported at fair value through a specific allocation of the allowance for loan and lease losses based upon the fair value of the underlying collateral. At March 31, 2022, impaired loans with a carrying value of $301 were reduced by specific valuation allowance allocations totaling $300 to a reported fair value of $1 . At December 31, 2021, impaired loans with a carrying value of Quantitative Information About Significant Unobservable Inputs Used in Level 3 Fair Value Measurements – The following table represents the Company’s Level 3 financial assets, the valuation techniques used to measure the fair value of those financial assets, the significant unobservable inputs and the ranges of values for those inputs: Significant Range of Fair Value at Principal Valuation Unobservable Significant Input Instrument March 31, 2022 Technique Inputs Values Impaired loans $ 1 Appraisal of collateral (1) Appraisal adjustment 10-25 % Foreclosed assets $ 209 Appraisal of collateral (1) Appraisal adjustment 10-25 % Significant Range of Fair Value at Principal Valuation Unobservable Significant Input Instrument December 31, 2021 Technique Inputs Values Impaired loans $ 1,274 Appraisal of collateral (1) Appraisal adjustment 10-25 % Foreclosed assets $ 209 Appraisal of collateral (1) Appraisal adjustment 10-25 % (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows: March 31, 2022 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 25,570 $ — $ — $ 25,570 $ 25,570 Interest bearing deposits in banks 5,335 — — 5,335 5,335 Securities held to maturity — 30,084 — 30,084 31,530 Loans, net — — 225,029 225,029 224,469 Net investment in direct financing leases — — 94 94 94 Interest receivable 904 — — 904 904 Restricted investments carried at cost — 2,040 — 2,040 2,040 Mortgage servicing rights — — 8 8 8 Financial liabilities Deposits — — 281,327 281,327 281,676 FHLB advances — — 26,687 26,687 27,053 Interest payable 112 — — 112 112 December 31, 2021 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 21,915 $ — $ — $ 21,915 $ 21,915 Interest bearing deposits in banks 14,955 — — 14,955 14,955 Securities held to maturity — 33,673 — 33,673 33,682 Loans, net — — 224,354 224,354 220,162 Net investment in direct financing leases — — 105 105 105 Interest receivable 931 — — 931 931 Restricted investments carried at cost — 2,037 — 2,037 2,037 Mortgage servicing rights — — 8 8 8 Financial liabilities Deposits — — 274,995 274,995 274,933 FHLB advances — — 28,259 28,259 27,571 Interest payable 128 — — 128 128 The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and cash equivalents and interest-bearing deposits in banks – The carrying value approximates their fair values. Securities held to maturity – Fair values for investment securities are based on quoted market prices or whose value is determined using discounted cash flow methodologies. Loans and net investment in direct financing leases – The fair values for loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms and credit quality. Interest receivable – The carrying value approximates its fair value. Restricted investments carried at cost – The carrying value of these investments approximates fair value based on the redemption provisions contained in each. Mortgage servicing rights – Fair values are estimated using discounted cash flows based on current market rates of interest. Deposits – The fair values disclosed for demand deposits (for example, interest and noninterest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits. FHLB advances – Current market rates for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Interest payable – The carrying value approximates the fair value. |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan ("ESOP") | 3 Months Ended |
Mar. 31, 2022 | |
Employee Stock Ownership Plan ("ESOP") | |
Employee Stock Ownership Plan ("ESOP") | Note 8 - Employee Stock Ownership Plan In connection with the conversion to an entity owned by shareholders, the Company established an Employee Stock Ownership Plan for the exclusive benefit of eligible employees. The ESOP borrowed funds from the Company in an amount sufficient to purchase of the common stock issued in connection with the Conversion). The loan is secured by the shares purchased and will be repaid by the ESOP with funds from contributions made by the Company and dividends received by the ESOP. Contributions will be applied to repay interest on the loan first, and then the remainder will be applied to principal. The loan is expected to be repaid over a period of up to Shares purchased with the loan proceeds are held in a suspense account for allocation among participants as the loan is repaid. Contributions to the ESOP and shares released from the suspense account are allocated among participants in proportion to their compensation. Participants will vest in their accrued benefits determined by the years of service for vesting purposes. Vesting is accelerated upon retirement, death or disability of the participant, or a change in control of the Company or the Bank. Forfeitures will be reallocated to remaining participants. Benefits may be payable upon retirement, death, disability, separation of service, or termination of the ESOP. The debt of the ESOP is eliminated in consolidation. Contributions to the ESOP shall be sufficient to pay principal and interest currently due under the loan agreement. As shares are committed to be released from collateral, the Company reports the compensation expense equal to the average market price of the shares for the respective period, and the shares become outstanding for earnings per share computations. Dividends on unallocated ESOP shares, if any, are recorded as a reduction of debt and accrued interest. ESOP compensation was A summary of the ESOP shares are as follows: March 31, December 31, 2022 2021 Shares allocated to participants 13,031 — Shares committed to be released to participants 3,258 13,031 Unreleased shares 244,332 247,590 Total 260,621 260,621 Fair value of unreleased shares $ 4,637 $ 3,838 |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Recently Issued But Not Yet Effective Accounting Pronouncements | |
Recently Issued But Not Yet Effective Accounting Pronouncements | Note 9 - Recently Issued But Not Yet Effective Accounting Pronouncements Accounting Standards Update (ASU) 2016‐13, “Financial Instruments ‐ Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016‐13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU 2016‐ 13 is effective for the Company on January 1, 2023. The Company has approved a third-party vendor recommended by the Current Expected Credit Losses (“CECL”) team. Management will begin working with them to provide, review and update loan data for use in the model during the quarter ending June 30, 2022, as well as re-evaluating the Company’s internal and external factors, including economic and peer data, with the goal of beginning parallel runs using the new CECL model and the current allowance for loan and lease losses model simultaneously as soon as all systems are in place. Once parallel runs are in place management can evaluate how this methodology change will impact the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) which provides temporary optional expedients to ease the financial reporting burdens of the expected market transition from London Interbank Offered Rate (“LIBOR”) to an alternative reference rate such as Secured Overnight Financing Rate (“SOFR”). The guidance was effective upon issuance and generally can be applied through December 31, 2022. ASU No. 2020-04 has not had and is not expected to have a significant impact on the Company’s consolidated financial statements. In January 2021, the FASB issued ASU No. 2021-01 Reference Rate Reform (Topic 848), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU No. 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. ASU 2021-01 has not had and is not expected to have a significant impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Interim Financial Statements | Interim Financial Statements The interim unaudited consolidated financial statements as of March 31, 2022, and for the three months ended March 31, 2022 and 2021, are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Such adjustments are the only adjustments contained in these unaudited consolidated financial statements. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission, and therefore certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been omitted. The results of operations for the three months ended March 31, 2022, are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2022, or any other period. Certain prior period data presented in the consolidated financial statements have been reclassified to conform with the current period presentation. The accompanying consolidated financial statements have been derived from and should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company for the year ended December 31, 2021. Reference is made to the accounting policies of the Company described in the Notes to Consolidated Financial Statements contained in Form 10-K for the year ended December 31, 2021. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, which include Mineola Community Bank, S.S.B. and its wholly-owned subsidiary Mineola Financial Service Corporation, which is not actively being utilized. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted–average number of common shares outstanding during the period, including allocated and committed-to-be-released ESOP shares, during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. There were dilutive shares as of March 31, 2022. There were outstanding Three Months Ended March 31, 2022 Net Income $ 391 Weighted average shares outstanding for basic earnings per share: Average shares outstanding 3,257,759 Less: average unearned ESOP shares (247,445) Weighted average shares outstanding for basic earnings per share 3,010,314 Additional dilutive shares — Weighted average shares outstanding for dilutive earnings per share 3,010,314 Basic and dilutive earnings per share $ 0.13 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share | |
Schedule of basic and diluted net loss per share | Three Months Ended March 31, 2022 Net Income $ 391 Weighted average shares outstanding for basic earnings per share: Average shares outstanding 3,257,759 Less: average unearned ESOP shares (247,445) Weighted average shares outstanding for basic earnings per share 3,010,314 Additional dilutive shares — Weighted average shares outstanding for dilutive earnings per share 3,010,314 Basic and dilutive earnings per share $ 0.13 |
Debt Securities (Tables)
Debt Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities | |
Schedule of amortized cost and fair value of securities | March 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 18,076 $ 1 $ (803) $ 17,274 Collateralized mortgage obligations 11,060 — (773) 10,287 State and municipal 14,950 11 (1,069) 13,892 Corporate bonds 4,750 — (387) 4,363 U.S. Government and agency 19,172 — (1,010) 18,162 Total securities available for sale $ 68,008 $ 12 $ (4,042) $ 63,978 Held to Maturity Debt Securities: Residential mortgage-backed $ 29,497 $ 23 $ (1,453) $ 28,067 State and municipal 2,033 5 (21) 2,017 Total securities held to maturity $ 31,530 $ 28 $ (1,474) $ 30,084 December 31, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 19,073 $ 113 $ (401) $ 18,785 Collateralized mortgage obligations 11,202 — (126) 11,076 State and municipal 11,670 36 (167) 11,539 Corporate bonds 2,500 — (94) 2,406 U.S. Government and agency 13,224 — (230) 12,994 Total securities available for sale $ 57,669 $ 149 $ (1,018) $ 56,800 Held to Maturity Debt Securities: Residential mortgage-backed $ 31,277 $ 374 $ (392) $ 31,259 State and municipal 2,405 15 (6) 2,414 Total securities held to maturity $ 33,682 $ 389 $ (398) $ 33,673 |
Schedule of contractual maturities of debt securities | Available for Sale Held to Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Due in one year $ — $ — $ — $ — Due from one to five years 15,911 15,236 770 774 Due in five to ten years 14,052 13,039 134 124 After ten years 8,909 8,142 1,129 1,119 Residential mortgage-backed 18,076 17,274 29,497 28,067 Collateralized mortgage obligations 11,060 10,287 — — Total $ 68,008 $ 63,978 $ 31,530 $ 30,084 |
Schedule of securities with unrealized and unrecognized losses | March 31, 2022 Less than 12 months 12 months or longer Gross Gross Fair Unrealized Fair Unrealized Category (number of securities) Value Losses Value Losses Residential mortgage-backed (57,10) $ 31,069 $ (1,435) $ 10,755 $ (821) Collateralized mortgage obligations (5) 10,287 (773) — — State and municipal (19) 14,866 (1,090) — — Corporate bonds (8) 3,613 (387) — — U.S. Government and agency (15) 18,162 (1,010) — — Total $ 77,997 $ (4,695) $ 10,755 $ (821) December 31, 2021 Less than 12 months 12 months or longer Gross Gross Fair Unrealized Fair Unrealized Category (number of securities) Value Losses Value Losses Residential mortgage-backed (20,5) $ 22,903 $ (624) $ 5,666 $ (169) Collateralized mortgage obligations (5) 11,076 (126) — — State and municipal (9) 8,416 (173) — — Corporate bonds (2) 906 (94) — — U.S. Government and agency (13) 12,994 (230) — — Total $ 56,295 $ (1,247) $ 5,666 $ (169) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Leases | |
Summary of the balances of loans and leases | March 31, December 31, 2022 2021 Real estate $ 213,935 $ 209,946 Agriculture 211 234 Commercial 6,745 6,141 Consumer and other 5,282 5,538 Subtotal 226,173 221,859 Less allowance for loan and lease losses (1,610) (1,592) Loans and leases, net $ 224,563 $ 220,267 |
Schedule of activity in the allowance for loan and lease losses | The following tables set forth information regarding the activity in the allowance for loan and lease losses for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021: March 31, 2022 Consumer Real Estate Agriculture Commercial and Other Total Allowance for loan and lease losses: Balance, January 1, 2022 $ 1,178 $ 1 $ 357 $ 56 $ 1,592 Charge-offs — — — (26) (26) Recoveries — — — 4 4 Provision 4 — 6 30 40 Balance, March 31, 2022 $ 1,182 $ 1 $ 363 $ 64 $ 1,610 Balance, March 31, 2022 allocated to loans and leases individually evaluated for impairment $ — $ — $ 300 $ — $ 300 Balance, March 31, 2022 allocated to loans and leases collectively evaluated for impairment $ 1,182 $ 1 $ 63 $ 64 $ 1,310 Loans and leases receivable: Balance, March 31, 2022 loans and leases individually evaluated for impairment $ 1,194 $ — $ 459 $ — $ 1,653 Balance, March 31, 2022 loans and leases collectively evaluated for impairment 212,741 211 6,286 5,282 224,520 Balance, March 31, 2022 $ 213,935 $ 211 $ 6,745 $ 5,282 $ 226,173 March 31, 2021 Consumer Real Estate Agriculture Commercial and Other Total Allowance for loan and lease losses: Balance, January 1, 2021 $ 1,171 $ 2 $ 355 $ 33 $ 1,561 Charge-offs — — — (13) (13) Recoveries — — — 12 12 Provision (Credit) 4 (2) (14) 14 2 Balance, March 31, 2021 $ 1,175 $ — $ 341 $ 46 $ 1,562 December 31, 2021 Consumer Allowance for loan and lease losses: Real Estate Agriculture Commercial and Other Total Balance, December 31, 2021 allocated to loans and leases individually evaluated for impairment $ 8 $ — $ 300 $ — $ 308 Balance, December 31, 2021 allocated to loans and leases collectively evaluated for impairment $ 1,170 $ 1 $ 57 $ 56 $ 1,284 Loans and leases receivable: Balance, December 31, 2021 loans and leases individually evaluated for impairment $ 2,437 $ — $ 474 $ 33 $ 2,944 Balance, December 31, 2021 loans and leases collectively evaluated for impairment 207,509 234 5,667 5,505 218,915 Balance, December 31, 2021 $ 209,946 $ 234 $ 6,141 $ 5,538 $ 221,859 |
Schedule of internal classification and credit risk profile based on payment activity of the loan and lease portfolio | The following tables set forth information regarding the internal classification of the loan and lease portfolio: March 31, 2022 Special Pass Mention Substandard Doubtful Loss Total Real estate Construction and land $ 18,789 $ 144 $ 93 $ — $ — $ 19,026 Farmland 5,843 — 345 — — 6,188 1‑4 residential & multi-family 153,440 281 1,773 — — 155,494 Commercial real estate 33,107 — 120 — — 33,227 Agriculture 211 — — — — 211 Commercial 6,275 — 43 427 — 6,745 Consumer and other 5,257 11 14 — — 5,282 Total $ 222,922 $ 436 $ 2,388 $ 427 $ — $ 226,173 December 31, 2021 Special Pass Mention Substandard Doubtful Loss Total Real estate Construction and land $ 17,560 $ — $ 90 $ — $ — $ 17,650 Farmland 6,083 — 359 — — 6,442 1‑4 residential & multi-family 151,708 556 1,904 — — 154,168 Commercial real estate 30,418 — 1,268 — — 31,686 Agriculture 234 — — — — 234 Commercial 5,652 — 52 437 — 6,141 Consumer and other 5,478 12 48 — — 5,538 Total $ 217,133 $ 568 $ 3,721 $ 437 $ — $ 221,859 The following table sets forth information regarding the credit risk profile based on payment activity of the loan and lease portfolio: March 31, 2022 December 31, 2021 Non- Non- Performing performing Total Performing performing Total Real estate Construction and land $ 19,026 $ — $ 19,026 $ 17,650 $ — $ 17,650 Farmland 6,009 179 6,188 6,250 192 6,442 1‑4 residential & multi-family 154,803 691 155,494 153,400 768 154,168 Commercial real estate 33,108 119 33,227 31,563 123 31,686 Agriculture 211 — 211 234 — 234 Commercial 6,286 459 6,745 5,667 474 6,141 Consumer and other 5,282 — 5,282 5,505 33 5,538 Total $ 224,725 $ 1,448 $ 226,173 $ 220,269 $ 1,590 $ 221,859 |
Schedule of delinquencies not on nonaccrual within the loan and lease portfolio | The following table sets forth information regarding the delinquencies not on nonaccrual within the loan and lease portfolio: March 31, 2022 Recorded 90 Investment 30‑89 Days and Total Total > 90 Days and Past Due Greater Past Due Current Loans Still Accruing Real estate Construction and land $ 556 $ — $ 556 $ 18,470 $ 19,026 $ — Farmland 166 — 166 6,022 6,188 — 1‑4 residential & multi-family 429 — 429 155,065 155,494 — Commercial real estate — — — 33,227 33,227 — Agriculture — — — 211 211 — Commercial 63 — 63 6,682 6,745 — Consumer and other 108 — 108 5,174 5,282 — Total $ 1,322 $ — $ 1,322 $ 224,851 $ 226,173 $ — December 31, 2021 Recorded 90 Investment 30‑89 Days and Total Total > 90 Days and Past Due Greater Past Due Current Loans Still Accruing Real estate Construction and land $ 1,620 $ — $ 1,620 $ 16,030 $ 17,650 $ — Farmland — — — 6,442 6,442 — 1‑4 residential & multi-family 305 — 305 153,863 154,168 — Commercial real estate — — — 31,686 31,686 — Agriculture — — — 234 234 — Commercial 30 — 30 6,111 6,141 — Consumer and other 19 — 19 5,519 5,538 — Total $ 1,974 $ — $ 1,974 $ 219,885 $ 221,859 $ — |
Schedule of nonaccrual status within the loan and lease portfolio | The following table sets forth information regarding the nonaccrual status within the loan and lease portfolio as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 Real estate Construction and land $ — $ — Farmland 179 192 1‑4 residential & multi-family 691 768 Commercial real estate 119 123 Agriculture — — Commercial 459 474 Consumer and other — 33 Total $ 1,448 $ 1,590 |
Schedule of interest income recognized on impaired financing receivables | The following table presents interest income recognized on impaired loans for the three months ended March 31, 2022 and 2021: March 31, 2022 2021 Real estate 1-4 residential & multi-family $ 2 $ 2 Commercial real estate 13 15 Commercial — 7 $ 15 $ 24 |
Schedule of information regarding impaired loans | The following table sets forth information regarding impaired loans as of March 31, 2022: Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With no related allowance Real estate Farmland $ 179 $ 232 $ — $ 186 1‑4 residential & multi-family 896 943 — 937 Commercial real estate 120 123 — 122 Commercial 158 166 — 98 With a related allowance Commercial 301 308 300 369 Total Real estate Farmland 179 232 — 186 1-4 residential & multi-family 896 943 — 937 Commercial real estate 120 123 — 122 Commercial 459 474 300 467 $ 1,654 $ 1,772 $ 300 $ 1,712 The following table sets forth information regarding impaired loans as of December 31, 2021: Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With no related allowance Real estate Farmland $ 192 $ 240 $ — $ 96 1‑4 residential & multi-family 977 1,027 — 488 Commercial real estate 123 125 — 62 Commercial 37 42 — 19 Consumer and other 33 33 — 17 With a related allowance Real estate Commercial real estate 1,145 1,145 8 573 Commercial 437 442 300 219 Total Real estate Farmland 192 240 — 96 1-4 residential & multi-family 977 1,027 — 488 Commercial real estate 1,268 1,270 8 635 Commercial 474 484 300 238 Consumer and other 33 33 — 17 $ 2,944 $ 3,054 $ 308 $ 1,474 |
Off-Balance-Sheet Activities (T
Off-Balance-Sheet Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Off-Balance-Sheet Activities | |
Schedule of financial instruments outstanding whose contract amounts represent credit risk | Contract Amount March 31, December 31, 2022 2021 Commitments to extend credit $ 30,110 $ 27,374 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Information | |
Schedule of supplemental cash flow information | March 31, 2022 2021 Supplemental cash flow information: Cash paid for Interest on deposits $ 326 $ 421 Interest on FHLB advances 145 161 Other interest 3 3 Income taxes — 21 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Summary of financial assets and financial liabilities measured at fair value on a recurring basis | March 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 17,274 $ — $ 17,274 Collateralized mortgage obligations — 10,287 — 10,287 State and municipal — 13,892 — 13,892 Corporate bonds — 4,363 — 4,363 U.S. Government and agency — 18,162 — 18,162 Total financial assets $ — $ 63,978 $ — $ 63,978 December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 18,785 $ — $ 18,785 Collateralized mortgage obligations — 11,076 — 11,076 State and municipal — 11,539 — 11,539 Corporate bonds — 2,406 — 2,406 U.S. Government and agency — 12,994 — 12,994 Total financial assets $ — $ 56,800 $ — $ 56,800 |
Summary of financial assets and financial liabilities measured at fair value on a nonrecurring basis | March 31, 2022 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Impaired loans $ — $ — $ 1 $ 1 Nonfinancial assets Foreclosed assets — — 209 209 $ — $ — $ 210 $ 210 December 31, 2021 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Impaired loans $ — $ — $ 1,274 $ 1,274 Nonfinancial assets Foreclosed assets — — 209 209 $ — $ — $ 1,483 $ 1,483 |
Schedule of quantitative information about significant unobservable inputs | Significant Range of Fair Value at Principal Valuation Unobservable Significant Input Instrument March 31, 2022 Technique Inputs Values Impaired loans $ 1 Appraisal of collateral (1) Appraisal adjustment 10-25 % Foreclosed assets $ 209 Appraisal of collateral (1) Appraisal adjustment 10-25 % Significant Range of Fair Value at Principal Valuation Unobservable Significant Input Instrument December 31, 2021 Technique Inputs Values Impaired loans $ 1,274 Appraisal of collateral (1) Appraisal adjustment 10-25 % Foreclosed assets $ 209 Appraisal of collateral (1) Appraisal adjustment 10-25 % (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. |
Summary of estimated fair values, and related carrying amounts, of the Company's financial instruments | March 31, 2022 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 25,570 $ — $ — $ 25,570 $ 25,570 Interest bearing deposits in banks 5,335 — — 5,335 5,335 Securities held to maturity — 30,084 — 30,084 31,530 Loans, net — — 225,029 225,029 224,469 Net investment in direct financing leases — — 94 94 94 Interest receivable 904 — — 904 904 Restricted investments carried at cost — 2,040 — 2,040 2,040 Mortgage servicing rights — — 8 8 8 Financial liabilities Deposits — — 281,327 281,327 281,676 FHLB advances — — 26,687 26,687 27,053 Interest payable 112 — — 112 112 December 31, 2021 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 21,915 $ — $ — $ 21,915 $ 21,915 Interest bearing deposits in banks 14,955 — — 14,955 14,955 Securities held to maturity — 33,673 — 33,673 33,682 Loans, net — — 224,354 224,354 220,162 Net investment in direct financing leases — — 105 105 105 Interest receivable 931 — — 931 931 Restricted investments carried at cost — 2,037 — 2,037 2,037 Mortgage servicing rights — — 8 8 8 Financial liabilities Deposits — — 274,995 274,995 274,933 FHLB advances — — 28,259 28,259 27,571 Interest payable 128 — — 128 128 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (ESOP) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Employee Stock Ownership Plan ("ESOP") | |
Summary of ESOP shares | March 31, December 31, 2022 2021 Shares allocated to participants 13,031 — Shares committed to be released to participants 3,258 13,031 Unreleased shares 244,332 247,590 Total 260,621 260,621 Fair value of unreleased shares $ 4,637 $ 3,838 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Jul. 14, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Accounting Policies [Line Items] | |||
Common stock shares sold | 3,207,759 | ||
Offering price | $ 10 | ||
Gross proceeds | $ 32,078,000 | ||
Issuance cost | 1,684,000 | ||
Cash contributed | $ 75,000 | ||
ESOP shares purchased | 260,621 | ||
Percentage of common stock in ESOP | 8.00% | ||
Common stock shares issued | 3,257,759 | 3,257,759 | |
Net proceeds from offering to bank | $ 15,276,000 | ||
Loan to ESOP for purchase of common stock | 2,606,000 | ||
Net proceeds from offering retained | $ 12,436,000 | ||
Common stock shares outstanding | 3,257,759 | 0 | |
Mineola Community Bank, SSB | |||
Accounting Policies [Line Items] | |||
Ownership percentage | 100.00% | ||
TCBS Foundation Inc. | |||
Accounting Policies [Line Items] | |||
Common stock shares contributed | 50,000 | ||
Cash contributed | $ 75 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share | ||
Net Income | $ 391 | $ 242 |
Weighted average shares outstanding for basic earnings per share : | ||
Average shares outstanding | 3,257,759 | |
Less: average unearned ESOP shares | (247,445) | |
Weighted-average shares outstanding - basic | 3,010,314 | |
Weighted-average shares outstanding - diluted | 3,010,314 | |
Earnings per share - basic | $ 0.13 | |
Earnings per share - diluted | $ 0.13 | |
Common Stock, Shares Authorized | 19,000,000 | 0 |
Common stock, shares outstanding | 3,257,759 | 0 |
Dilutive shares | 0 |
Debt Securities - Amortized cos
Debt Securities - Amortized cost and fair value (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Available for Sale | |||
Amortized Cost | $ 68,008,000 | $ 57,669,000 | |
Gross Unrealized Gains | 12,000 | 149,000 | |
Gross Unrealized Losses | (4,042,000) | (1,018,000) | |
Total debt securities, available for sale | 63,978,000 | 56,800,000 | |
Held to Maturity | |||
Amortized Cost | 31,530,000 | 33,682,000 | |
Debt Securities, Held-to-maturity, Fair Value, Total | 30,084,000 | 33,673,000 | |
Collateral Pledged | |||
Held to Maturity | |||
Debt securities pledged as collateral | 2,715,000 | 2,745,000 | |
Available-for-sale Securities | |||
Held to Maturity | |||
Proceeds from sales of available for sale securities | 0 | $ 0 | |
Held-to-maturity Securities | |||
Held to Maturity | |||
Amortized Cost | 31,530,000 | 33,682,000 | |
Gross Unrealized Gains | 28,000 | 389,000 | |
Gross Unrealized Losses | (1,474,000) | (398,000) | |
Debt Securities, Held-to-maturity, Fair Value, Total | 30,084,000 | 33,673,000 | |
Proceeds from sales of held for sale securities | 0 | $ 0 | |
Residential mortgage-backed | |||
Available for Sale | |||
Amortized Cost | 18,076,000 | 19,073,000 | |
Gross Unrealized Gains | 1,000 | 113,000 | |
Gross Unrealized Losses | (803,000) | (401,000) | |
Total debt securities, available for sale | 17,274,000 | 18,785,000 | |
Held to Maturity | |||
Amortized Cost | 29,497,000 | 31,277,000 | |
Gross Unrealized Gains | 23,000 | 374,000 | |
Gross Unrealized Losses | (1,453,000) | (392,000) | |
Debt Securities, Held-to-maturity, Fair Value, Total | 28,067,000 | 31,259,000 | |
Collateralized mortgage obligations | |||
Available for Sale | |||
Amortized Cost | 11,060,000 | 11,202,000 | |
Gross Unrealized Losses | (773,000) | (126,000) | |
Total debt securities, available for sale | 10,287,000 | 11,076,000 | |
State and municipal | |||
Available for Sale | |||
Amortized Cost | 14,950,000 | 11,670,000 | |
Gross Unrealized Gains | 11,000 | 36,000 | |
Gross Unrealized Losses | (1,069,000) | (167,000) | |
Total debt securities, available for sale | 13,892,000 | 11,539,000 | |
Held to Maturity | |||
Amortized Cost | 2,033,000 | 2,405,000 | |
Gross Unrealized Gains | 5,000 | 15,000 | |
Gross Unrealized Losses | (21,000) | (6,000) | |
Debt Securities, Held-to-maturity, Fair Value, Total | 2,017,000 | 2,414,000 | |
Corporate bonds | |||
Available for Sale | |||
Amortized Cost | 4,750,000 | 2,500,000 | |
Gross Unrealized Losses | (387,000) | (94,000) | |
Total debt securities, available for sale | 4,363,000 | 2,406,000 | |
U.S. government and agency | |||
Available for Sale | |||
Amortized Cost | 19,172,000 | 13,224,000 | |
Gross Unrealized Losses | (1,010,000) | (230,000) | |
Total debt securities, available for sale | $ 18,162,000 | $ 12,994,000 |
Debt Securities - Contractual m
Debt Securities - Contractual maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for Sale, Amortized Cost | ||
Due after one through five years, Amortized Cost | $ 15,911 | |
Due after five through ten years, Amortized Cost | 14,052 | |
Due after ten years, Amortized Cost | 8,909 | |
Residential Mortgage-backed, Amortized Cost | 18,076 | |
Collateralized mortgage obligations, Amortized Cost | 11,060 | |
Total debt securities, Amortized Cost | 68,008 | $ 57,669 |
Available for Sale, Fair Value | ||
Due after one through five years, Fair Value | 15,236 | |
Due after five through ten years, Fair Value | 13,039 | |
Due after ten years, Fair Value | 8,142 | |
Residential Mortgage-backed, Fair Value | 17,274 | |
Collateralized mortgage obligations, Fair Value | 10,287 | |
Total debt securities, available for sale | 63,978 | 56,800 |
Held to Maturity, Amortized Cost | ||
Due after one through five years, Amortized Cost | 770 | |
Due after five through ten years, Amortized Cost | 134 | |
Due after ten years, Amortized Cost | 1,129 | |
Residential Mortgage-backed | 29,497 | |
Debt Securities, Held-to-maturity, Total | 31,530 | 33,682 |
Held to Maturity, Fair Value | ||
Due after one through five years, Fair Value | 774 | |
Due after five through ten years, Fair Value | 124 | |
Due after ten years, Fair Value | 1,119 | |
Residential Mortgage-backed | 28,067 | |
Debt Securities, Held-to-maturity, Fair Value, Total | 30,084 | 33,673 |
Residential mortgage-backed | ||
Available for Sale, Amortized Cost | ||
Total debt securities, Amortized Cost | 18,076 | 19,073 |
Available for Sale, Fair Value | ||
Total debt securities, available for sale | 17,274 | 18,785 |
Held to Maturity, Amortized Cost | ||
Debt Securities, Held-to-maturity, Total | 29,497 | 31,277 |
Held to Maturity, Fair Value | ||
Debt Securities, Held-to-maturity, Fair Value, Total | 28,067 | 31,259 |
Collateralized mortgage obligations | ||
Available for Sale, Amortized Cost | ||
Total debt securities, Amortized Cost | 11,060 | 11,202 |
Available for Sale, Fair Value | ||
Total debt securities, available for sale | $ 10,287 | $ 11,076 |
Debt Securities - Unrealized Lo
Debt Securities - Unrealized Losses (Details) $ in Thousands | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 77,997 | $ 56,295 |
Unrealized Losses, Less than 12 Months | (4,695) | (1,247) |
Fair Value, 12 Months or More | 10,755 | 5,666 |
Unrealized Losses, 12 Months or More | (821) | (169) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 31,069 | 22,903 |
Unrealized Losses, Less than 12 Months | (1,435) | (624) |
Fair Value, 12 Months or More | 10,755 | 5,666 |
Unrealized Losses, 12 Months or More | $ (821) | $ (169) |
Number of Securities, Longer Than 12 Months | security | 10 | 5 |
Number of Securities, Less Than 12 Months | security | 57 | 20 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 10,287 | $ 11,076 |
Unrealized Losses, Less than 12 Months | $ (773) | $ (126) |
Number of securities in portfolio | security | (5) | (5) |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 14,866 | $ 8,416 |
Unrealized Losses, Less than 12 Months | $ (1,090) | $ (173) |
Number of securities in portfolio | security | (19) | (9) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 3,613 | $ 906 |
Unrealized Losses, Less than 12 Months | $ (387) | $ (94) |
Number of securities in portfolio | security | (8) | (2) |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 18,162 | $ 12,994 |
Unrealized Losses, Less than 12 Months | $ (1,010) | $ (230) |
Number of securities in portfolio | security | (15) | (13) |
Debt Securities (Details)
Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Securities | ||
Other than temporary impairment loss recognized | $ 0 | $ 0 |
Loans and Leases - Summary of b
Loans and Leases - Summary of balances of loans and leases (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases | ||
Loans and leases, gross | $ 226,173 | $ 221,859 |
Less allowance for loan and lease losses | (1,610) | (1,592) |
Loans and leases, net | 224,563 | 220,267 |
Real estate | ||
Loans and Leases | ||
Loans and leases, gross | 213,935 | 209,946 |
Agriculture | ||
Loans and Leases | ||
Loans and leases, gross | 211 | 234 |
Commercial | ||
Loans and Leases | ||
Loans and leases, gross | 6,745 | 6,141 |
Consumer and other | ||
Loans and Leases | ||
Loans and leases, gross | $ 5,282 | $ 5,538 |
Loans and Leases - Paycheck Pro
Loans and Leases - Paycheck Protection Program (PPP) Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Loans and Leases | |||
Original balance | $ 226,173 | $ 221,859 | |
Loan fees in interest income | 2,374 | $ 2,401 | |
Paycheck Protection Program (PPP) Loans | |||
Loans and Leases | |||
Original balance | 5,484 | ||
Loan forgiven | 5,475 | ||
Loan fees in interest income | 0 | $ 4 | |
Consumer and other | |||
Loans and Leases | |||
Original balance | $ 5,282 | $ 5,538 |
Loans and Leases - Activity in
Loans and Leases - Activity in the allowance for loan and lease losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Allowance for loan and lease losses: | |||
Beginning balance | $ 1,592 | $ 1,561 | |
Charge-offs | (26) | (13) | |
Recoveries | 4 | 12 | |
Provision for Loan and Lease Losses | 40 | 2 | |
Ending balance | 1,610 | 1,562 | |
Ending balance allocated to loans and leases individually evaluated for impairment | 300 | $ 308 | |
Ending balance allocated to loans and leases collectively evaluated for impairment | 1,310 | 1,284 | |
Loans and leases receivable | |||
Loans and leases individually evaluated for impairment | 1,653 | 2,944 | |
Loans and leases collectively evaluated for impairment | 224,520 | 218,915 | |
Total Loans | 226,173 | 221,859 | |
Real estate | |||
Allowance for loan and lease losses: | |||
Beginning balance | 1,178 | 1,171 | |
Provision for Loan and Lease Losses | 4 | 4 | |
Ending balance | 1,182 | 1,175 | |
Ending balance allocated to loans and leases individually evaluated for impairment | 8 | ||
Ending balance allocated to loans and leases collectively evaluated for impairment | 1,182 | 1,170 | |
Loans and leases receivable | |||
Loans and leases individually evaluated for impairment | 1,194 | 2,437 | |
Loans and leases collectively evaluated for impairment | 212,741 | 207,509 | |
Total Loans | 213,935 | 209,946 | |
Agriculture | |||
Allowance for loan and lease losses: | |||
Beginning balance | 1 | 2 | |
Provision for Loan and Lease Losses | (2) | ||
Ending balance | 1 | ||
Ending balance allocated to loans and leases collectively evaluated for impairment | 1 | 1 | |
Loans and leases receivable | |||
Loans and leases collectively evaluated for impairment | 211 | 234 | |
Total Loans | 211 | 234 | |
Commercial | |||
Allowance for loan and lease losses: | |||
Beginning balance | 357 | 355 | |
Provision for Loan and Lease Losses | 6 | (14) | |
Ending balance | 363 | 341 | |
Ending balance allocated to loans and leases individually evaluated for impairment | 300 | 300 | |
Ending balance allocated to loans and leases collectively evaluated for impairment | 63 | 57 | |
Loans and leases receivable | |||
Loans and leases individually evaluated for impairment | 459 | 474 | |
Loans and leases collectively evaluated for impairment | 6,286 | 5,667 | |
Total Loans | 6,745 | 6,141 | |
Consumer and other | |||
Allowance for loan and lease losses: | |||
Beginning balance | 56 | 33 | |
Charge-offs | (26) | (13) | |
Recoveries | 4 | 12 | |
Provision for Loan and Lease Losses | 30 | 14 | |
Ending balance | 64 | $ 46 | |
Ending balance allocated to loans and leases collectively evaluated for impairment | 64 | 56 | |
Loans and leases receivable | |||
Loans and leases individually evaluated for impairment | 33 | ||
Loans and leases collectively evaluated for impairment | 5,282 | 5,505 | |
Total Loans | $ 5,282 | $ 5,538 |
Loans and Leases - Internal cla
Loans and Leases - Internal classification of the loan and lease portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases | ||
Loans and leases, gross | $ 226,173 | $ 221,859 |
Performing | ||
Loans and Leases | ||
Loans and leases, gross | 224,725 | 220,269 |
Non-performing | ||
Loans and Leases | ||
Loans and leases, gross | 1,448 | 1,590 |
Pass | ||
Loans and Leases | ||
Loans and leases, gross | 222,922 | 217,133 |
Special Mention | ||
Loans and Leases | ||
Loans and leases, gross | 436 | 568 |
Substandard | ||
Loans and Leases | ||
Loans and leases, gross | 2,388 | 3,721 |
Doubtful | ||
Loans and Leases | ||
Loans and leases, gross | 427 | 437 |
Real estate | ||
Loans and Leases | ||
Loans and leases, gross | 213,935 | 209,946 |
Real estate | Construction and Land loan | ||
Loans and Leases | ||
Loans and leases, gross | 19,026 | 17,650 |
Real estate | Construction and Land loan | Performing | ||
Loans and Leases | ||
Loans and leases, gross | 19,026 | 17,650 |
Real estate | Construction and Land loan | Pass | ||
Loans and Leases | ||
Loans and leases, gross | 18,789 | 17,560 |
Real estate | Construction and Land loan | Special Mention | ||
Loans and Leases | ||
Loans and leases, gross | 144 | |
Real estate | Construction and Land loan | Substandard | ||
Loans and Leases | ||
Loans and leases, gross | 93 | 90 |
Real estate | Farmland loan | ||
Loans and Leases | ||
Loans and leases, gross | 6,188 | 6,442 |
Real estate | Farmland loan | Performing | ||
Loans and Leases | ||
Loans and leases, gross | 6,009 | 6,250 |
Real estate | Farmland loan | Non-performing | ||
Loans and Leases | ||
Loans and leases, gross | 179 | 192 |
Real estate | Farmland loan | Pass | ||
Loans and Leases | ||
Loans and leases, gross | 5,843 | 6,083 |
Real estate | Farmland loan | Substandard | ||
Loans and Leases | ||
Loans and leases, gross | 345 | 359 |
Real estate | 1- 4 Residential & Multi Loan | ||
Loans and Leases | ||
Loans and leases, gross | 155,494 | 154,168 |
Real estate | 1- 4 Residential & Multi Loan | Performing | ||
Loans and Leases | ||
Loans and leases, gross | 154,803 | 153,400 |
Real estate | 1- 4 Residential & Multi Loan | Non-performing | ||
Loans and Leases | ||
Loans and leases, gross | 691 | 768 |
Real estate | 1- 4 Residential & Multi Loan | Pass | ||
Loans and Leases | ||
Loans and leases, gross | 153,440 | 151,708 |
Real estate | 1- 4 Residential & Multi Loan | Special Mention | ||
Loans and Leases | ||
Loans and leases, gross | 281 | 556 |
Real estate | 1- 4 Residential & Multi Loan | Substandard | ||
Loans and Leases | ||
Loans and leases, gross | 1,773 | 1,904 |
Real estate | Commercial real estate | ||
Loans and Leases | ||
Loans and leases, gross | 33,227 | 31,686 |
Real estate | Commercial real estate | Performing | ||
Loans and Leases | ||
Loans and leases, gross | 33,108 | 31,563 |
Real estate | Commercial real estate | Non-performing | ||
Loans and Leases | ||
Loans and leases, gross | 119 | 123 |
Real estate | Commercial real estate | Pass | ||
Loans and Leases | ||
Loans and leases, gross | 33,107 | 30,418 |
Real estate | Commercial real estate | Substandard | ||
Loans and Leases | ||
Loans and leases, gross | 120 | 1,268 |
Agriculture | ||
Loans and Leases | ||
Loans and leases, gross | 211 | 234 |
Agriculture | Performing | ||
Loans and Leases | ||
Loans and leases, gross | 211 | 234 |
Agriculture | Pass | ||
Loans and Leases | ||
Loans and leases, gross | 211 | 234 |
Commercial | ||
Loans and Leases | ||
Loans and leases, gross | 6,745 | 6,141 |
Commercial | Performing | ||
Loans and Leases | ||
Loans and leases, gross | 6,286 | 5,667 |
Commercial | Non-performing | ||
Loans and Leases | ||
Loans and leases, gross | 459 | 474 |
Commercial | Pass | ||
Loans and Leases | ||
Loans and leases, gross | 6,275 | 5,652 |
Commercial | Substandard | ||
Loans and Leases | ||
Loans and leases, gross | 43 | 52 |
Commercial | Doubtful | ||
Loans and Leases | ||
Loans and leases, gross | 427 | 437 |
Consumer and other | ||
Loans and Leases | ||
Loans and leases, gross | 5,282 | 5,538 |
Consumer and other | Performing | ||
Loans and Leases | ||
Loans and leases, gross | 5,282 | 5,505 |
Consumer and other | Non-performing | ||
Loans and Leases | ||
Loans and leases, gross | 33 | |
Consumer and other | Pass | ||
Loans and Leases | ||
Loans and leases, gross | 5,257 | 5,478 |
Consumer and other | Special Mention | ||
Loans and Leases | ||
Loans and leases, gross | 11 | 12 |
Consumer and other | Substandard | ||
Loans and Leases | ||
Loans and leases, gross | $ 14 | $ 48 |
Loans and Leases - Delinquencie
Loans and Leases - Delinquencies not on nonaccrual (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 226,173,000 | $ 221,859,000 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,322,000 | 1,974,000 |
30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,322,000 | 1,974,000 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 224,851,000 | 219,885,000 |
Real estate | Construction and Land loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 19,026,000 | 17,650,000 |
Real estate | Construction and Land loan | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 556,000 | 1,620,000 |
Real estate | Construction and Land loan | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 556,000 | 1,620,000 |
Real estate | Construction and Land loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 18,470,000 | 16,030,000 |
Real estate | Farmland loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,188,000 | 6,442,000 |
Real estate | Farmland loan | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 166,000 | |
Real estate | Farmland loan | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 166,000 | |
Real estate | Farmland loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,022,000 | 6,442,000 |
Real estate | 1- 4 Residential & Multi Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 155,494,000 | 154,168,000 |
Real estate | 1- 4 Residential & Multi Loan | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 429,000 | 305,000 |
Real estate | 1- 4 Residential & Multi Loan | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 429,000 | 305,000 |
Real estate | 1- 4 Residential & Multi Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 155,065,000 | 153,863,000 |
Real estate | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 33,227,000 | 31,686,000 |
Real estate | Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 33,227,000 | 31,686,000 |
Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 211,000 | |
Agriculture | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 211,000 | |
Agriculture | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 234,000 | |
Agriculture | Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 234,000 | |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,745 | 6,141,000 |
Commercial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 63,000 | 30,000 |
Commercial | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 63,000 | 30,000 |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,682,000 | 6,111,000 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,282,000 | 5,538,000 |
Consumer and other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 108,000 | 19,000 |
Consumer and other | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 108,000 | 19,000 |
Consumer and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 5,174,000 | $ 5,519,000 |
Loans and Leases - Nonaccrual s
Loans and Leases - Nonaccrual status within the loan and lease portfolio (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Loans and Leases | |||
Loans with nonaccrual status | $ 1,448,000 | $ 1,590,000 | |
Interest income on nonaccrual loans | 0 | $ 0 | |
Real estate | Farmland loan | |||
Loans and Leases | |||
Loans with nonaccrual status | 179,000 | 192,000 | |
Real estate | 1- 4 Residential & Multi Loan | |||
Loans and Leases | |||
Loans with nonaccrual status | 691,000 | 768,000 | |
Real estate | Commercial real estate | |||
Loans and Leases | |||
Loans with nonaccrual status | 119,000 | 123,000 | |
Commercial | |||
Loans and Leases | |||
Loans with nonaccrual status | $ 459,000 | 474,000 | |
Consumer and other | |||
Loans and Leases | |||
Loans with nonaccrual status | $ 33,000 |
Loans and Leases - Interest Inc
Loans and Leases - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loans and Leases | ||
Interest income for impaired loans | $ 15 | $ 24 |
Commercial loan | ||
Loans and Leases | ||
Interest income for impaired loans | 7 | |
Real estate | 1- 4 Residential & Multi Loan | ||
Loans and Leases | ||
Interest income for impaired loans | 2 | 2 |
Real estate | Commercial real estate | ||
Loans and Leases | ||
Interest income for impaired loans | $ 13 | $ 15 |
Loans and Leases - Impaired loa
Loans and Leases - Impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Recorded Investment | ||
Recorded Investment, Total | $ 1,654 | $ 2,944 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, Total | 1,772 | 3,054 |
Related Allowance | 300 | 308 |
Average Recorded Investment | ||
Average Recorded Investment, Total | 1,712 | 1,474 |
Commercial loan | ||
Recorded Investment | ||
Recorded Investment, Total | 459 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, Total | 474 | |
Related Allowance | 300 | |
Average Recorded Investment | ||
Average Recorded Investment, Total | 467 | |
Real estate | Farmland loan | ||
Recorded Investment | ||
With no related allowance | 179 | 192 |
Recorded Investment, Total | 179 | 192 |
Unpaid Principal Balance | ||
With no related allowance | 232 | 240 |
Unpaid Principal Balance, Total | 232 | 240 |
Average Recorded Investment | ||
With no related allowance | 186 | 96 |
Average Recorded Investment, Total | 186 | 96 |
Real estate | 1- 4 Residential & Multi Loan | ||
Recorded Investment | ||
With no related allowance | 896 | 977 |
Recorded Investment, Total | 896 | 977 |
Unpaid Principal Balance | ||
With no related allowance | 943 | 1,027 |
Unpaid Principal Balance, Total | 943 | 1,027 |
Average Recorded Investment | ||
With no related allowance | 937 | 488 |
Average Recorded Investment, Total | 937 | 488 |
Real estate | Commercial real estate | ||
Recorded Investment | ||
With no related allowance | 120 | 123 |
With a related allowance | 1,145 | |
Recorded Investment, Total | 120 | 1,268 |
Unpaid Principal Balance | ||
With no related allowance | 123 | 125 |
With a related allowance | 1,145 | |
Unpaid Principal Balance, Total | 123 | 1,270 |
Related Allowance | 8 | |
Average Recorded Investment | ||
With no related allowance | 122 | 62 |
With a related allowance | 573 | |
Average Recorded Investment, Total | 122 | 635 |
Commercial | ||
Recorded Investment | ||
With no related allowance | 158 | 37 |
With a related allowance | 301 | 437 |
Recorded Investment, Total | 474 | |
Unpaid Principal Balance | ||
With no related allowance | 166 | 42 |
With a related allowance | 308 | 442 |
Unpaid Principal Balance, Total | 484 | |
Related Allowance | 300 | 300 |
Average Recorded Investment | ||
With no related allowance | 98 | 19 |
With a related allowance | $ 369 | 219 |
Average Recorded Investment, Total | 238 | |
Consumer and other | ||
Recorded Investment | ||
With no related allowance | 33 | |
Recorded Investment, Total | 33 | |
Unpaid Principal Balance | ||
With no related allowance | 33 | |
Unpaid Principal Balance, Total | 33 | |
Average Recorded Investment | ||
With no related allowance | 17 | |
Average Recorded Investment, Total | $ 17 |
Loans and Leases - Trouble debt
Loans and Leases - Trouble debt restructuring (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($)loan | |
Financing Receivable, Modifications, Number of Contracts | loan | 2 | |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 90 | |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 18 | |
1- 4 Residential & Multi Loan | Real estate | ||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 72 |
Loans and Leases - Troubled deb
Loans and Leases - Troubled debt restructurings (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($) | Mar. 31, 2021loan | Dec. 31, 2021USD ($) | |
Loans and Leases | |||
Number of troubled debt restructurings | loan | 2 | ||
Number of subsequently defaulted troubled debt restructurings | 0 | ||
Loan commitments | $ 0 | $ 0 | |
Recorded investment of troubled debt restructurings | $ 482,000 | $ 493,000 |
Off-Balance-Sheet Activities -
Off-Balance-Sheet Activities - Commitments to extend credit (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments outstanding whose contract amounts represent credit risk | $ 0 | |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments outstanding whose contract amounts represent credit risk | $ 30,110,000 | $ 27,374,000 |
Off-Balance-Sheet Activities _2
Off-Balance-Sheet Activities - Narratives (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Line of Credit Facility [Line Items] | |
Commitments to purchase securities | $ 0 |
Other off-balance-sheet arrangements | 0 |
Federal Reserve Bank of Boston | |
Line of Credit Facility [Line Items] | |
Line of credit facility fees | 0 |
Maximum borrowing capacity | 15,000,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 106,300,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental Cash Flow Information | ||
Interest on deposits | $ 326 | $ 421 |
Interest on FHLB advances | 145 | 161 |
Other interest | $ 3 | 3 |
Income taxes | $ 21 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Minimum Regulatory Capital Requirements | ||
Community Bank Leverage Ratio | 12.84 | 12.89 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurements | ||
Available-for-sale securities | $ 63,978 | $ 56,800 |
Residential mortgage-backed | ||
Fair Value Measurements | ||
Available-for-sale securities | 17,274 | 18,785 |
Collateralized mortgage obligations | ||
Fair Value Measurements | ||
Available-for-sale securities | 10,287 | 11,076 |
State and municipal | ||
Fair Value Measurements | ||
Available-for-sale securities | 13,892 | 11,539 |
Corporate bonds | ||
Fair Value Measurements | ||
Available-for-sale securities | 4,363 | 2,406 |
U.S. government and agency | ||
Fair Value Measurements | ||
Available-for-sale securities | 18,162 | 12,994 |
Recurring | ||
Fair Value Measurements | ||
Available-for-sale securities | 56,800 | |
Financial assets | 63,978 | |
Recurring | Residential mortgage-backed | ||
Fair Value Measurements | ||
Available-for-sale securities | 17,274 | 18,785 |
Recurring | Collateralized mortgage obligations | ||
Fair Value Measurements | ||
Available-for-sale securities | 10,287 | 11,076 |
Recurring | State and municipal | ||
Fair Value Measurements | ||
Available-for-sale securities | 13,892 | 11,539 |
Recurring | Corporate bonds | ||
Fair Value Measurements | ||
Available-for-sale securities | 4,363 | 2,406 |
Recurring | U.S. government and agency | ||
Fair Value Measurements | ||
Available-for-sale securities | 18,162 | 12,994 |
Recurring | Level 2 | ||
Fair Value Measurements | ||
Available-for-sale securities | 56,800 | |
Financial assets | 63,978 | |
Recurring | Level 2 | Residential mortgage-backed | ||
Fair Value Measurements | ||
Available-for-sale securities | 17,274 | 18,785 |
Recurring | Level 2 | Collateralized mortgage obligations | ||
Fair Value Measurements | ||
Available-for-sale securities | 10,287 | 11,076 |
Recurring | Level 2 | State and municipal | ||
Fair Value Measurements | ||
Available-for-sale securities | 13,892 | 11,539 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value Measurements | ||
Available-for-sale securities | 4,363 | 2,406 |
Recurring | Level 2 | U.S. government and agency | ||
Fair Value Measurements | ||
Available-for-sale securities | $ 18,162 | $ 12,994 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial assets and liabilities measured at fair value on a nonrecurring basis (Details) - Non-recurring - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurements | ||
Impaired loans | $ 1 | $ 1,274 |
Foreclosed assets | 209 | 209 |
Financial assets | 210 | 1,483 |
Level 3 | ||
Fair Value Measurements | ||
Impaired loans | 1 | 1,274 |
Foreclosed assets | 209 | 209 |
Financial assets | 210 | 1,483 |
Level 3 | Impaired Loans | ||
Fair Value Measurements | ||
Impaired loans | $ 1,000 | $ 1,274,000 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative information about significant unobservable inputs (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying value | $ 1,654,000 | $ 2,944,000 | |
Related Allowance | 300,000 | 308,000 | |
Provision for Loan and Lease Losses | 40,000 | $ 2,000 | |
Impaired Loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying value | 301,000 | 1,582,000 | |
Related Allowance | 300,000 | 308,000 | |
Non-recurring | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans | 1 | 1,274 | |
Foreclosed assets | 209 | 209 | |
Non-recurring | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans | 1 | 1,274 | |
Foreclosed assets | 209 | 209 | |
Non-recurring | Level 3 | Impaired Loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans | $ 1,000 | $ 1,274,000 | |
Non-recurring | Level 3 | Impaired Loans | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset measurement input | 10 | 10 | |
Non-recurring | Level 3 | Impaired Loans | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset measurement input | 25 | 25 | |
Non-recurring | Level 3 | Foreclosed Assets | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed assets | $ 209,000 | $ 209,000 | |
Non-recurring | Level 3 | Foreclosed Assets | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset measurement input | 10 | 10 | |
Non-recurring | Level 3 | Foreclosed Assets | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset measurement input | 25 | 25 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated fair values, and related carrying amounts, of financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financial assets | ||
Securities held to maturity | $ 30,084 | $ 33,673 |
Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 25,570 | 21,915 |
Interest bearing deposits in banks | 5,335 | 14,955 |
Securities held to maturity | 31,530 | 33,682 |
Loans, net | 224,469 | 220,162 |
Net investment in direct financing leases | 94 | 105 |
Interest receivable | 904 | 931 |
Restricted investments carried at cost | 2,040 | 2,037 |
Mortgage servicing rights | 8 | 8 |
Financial liabilities | ||
Deposits | 281,676 | 274,933 |
Federal Home Loan Bank advances | 27,053 | 27,571 |
Interest payable | 112 | 128 |
Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 25,570 | 21,915 |
Interest bearing deposits in banks | 5,335 | 14,955 |
Securities held to maturity | 30,084 | 33,673 |
Loans, net | 225,029 | 224,354 |
Net investment in direct financing leases | 94 | 105 |
Interest receivable | 904 | 931 |
Restricted investments carried at cost | 2,040 | 2,037 |
Mortgage servicing rights | 8 | 8 |
Financial liabilities | ||
Deposits | 281,327 | 274,995 |
Federal Home Loan Bank advances | 26,687 | 28,259 |
Interest payable | 112 | 128 |
Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 25,570 | 21,915 |
Interest bearing deposits in banks | 5,335 | 14,955 |
Interest receivable | 904 | 931 |
Financial liabilities | ||
Interest payable | 112 | 128 |
Level 2 | ||
Financial assets | ||
Securities held to maturity | 30,084 | 33,673 |
Restricted investments carried at cost | 2,040 | 2,037 |
Level 3 | ||
Financial assets | ||
Loans, net | 225,029 | 224,354 |
Net investment in direct financing leases | 94 | 105 |
Mortgage servicing rights | 8 | 8 |
Financial liabilities | ||
Deposits | 281,327 | 274,995 |
Federal Home Loan Bank advances | $ 26,687 | $ 28,259 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan (ESOP) (Details) - USD ($) $ in Thousands | Jul. 14, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Employee Stock Ownership Plan ("ESOP") | |||
ESOP shares purchased | 260,621 | ||
Percentage of common stock in ESOP | 8.00% | ||
Term of Employee Stock Ownership Plan | 20 years | ||
ESOP compensation | $ 51 | ||
Unearned ESOP shares | 244,332,000 | 247,590,000 |
Employee Stock Ownership Plan_4
Employee Stock Ownership Plan (ESOP) - ESOP shares (Details) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Employee Stock Ownership Plan ("ESOP") | ||
Shares allocated to participants | 13,031 | |
Shares released to participants | 3,258 | 13,031 |
Unreleased Shares | 244,332 | 247,590 |
Total | 260,621 | 260,621 |
Fair value of unreleased shares | $ 4,637 | $ 3,838 |