Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 08, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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, $0.01 par value per share | |
Trading Symbol | TCBS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,291,806 | |
Entity Central Index Key | 0001849466 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 5,450 | $ 6,897 |
Federal funds sold | 4,600 | 2,030 |
Cash and cash equivalents | 10,050 | 8,927 |
Interest bearing deposits in banks | 5,116 | 2,055 |
Securities available for sale | 107,153 | |
Securities available for sale | 95,832 | |
Securities held to maturity (fair values of $24,919 at June 30, 2023 and $24,615 at December 31, 2022) | 27,827 | |
Securities held to maturity (fair values of $24,919 at June 30, 2023 and $24,615 at December 31, 2022) | 27,870 | |
Loans receivable, net of allowance for credit losses of $2,969 at June 30, 2023 and $1,755 at December 31, 2022 | 268,726 | |
Loans receivable, net of allowance for credit losses of $2,969 at June 30, 2023 and $1,755 at December 31, 2022 | 251,274 | |
Net investment in direct financing leases | 36 | 64 |
Accrued interest receivable | 1,446 | 1,327 |
Premises and equipment, net | 9,459 | 6,299 |
Bank-owned life insurance | 6,176 | 6,125 |
Restricted investments carried at cost | 3,376 | 2,805 |
Core deposit intangible | 331 | 397 |
Deferred income taxes | 2,475 | 2,304 |
Financial derivative | 536 | |
Other assets | 769 | 789 |
Total assets | 432,198 | 417,346 |
Liabilities | ||
Noninterest bearing | 48,076 | 45,823 |
Interest bearing | 254,488 | 250,254 |
Total deposits | 302,564 | 296,077 |
Advances from Federal Home Loan Bank (FHLB) | 71,856 | 62,494 |
Accrued expenses and other liabilities | 3,328 | 2,905 |
Total liabilities | 377,748 | 361,476 |
Shareholders' Equity | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value, 19,000,000 shares authorized, 3,373,723 issued and 3,323,456 outstanding at June 30, 2023 and 3,296,843 issued and outstanding at December 31, 2022 | 34 | 33 |
Additional paid in capital | 31,405 | 31,099 |
Retained earnings | 32,048 | 34,083 |
Accumulated other comprehensive loss | (6,147) | (6,999) |
Unearned Employee Stock Ownership Program (ESOP) shares, at cost | (2,280) | (2,346) |
Treasury stock, at cost (50,267 shares at June 30, 2023) | (610) | |
Total shareholders' equity | 54,450 | 55,870 |
Total liabilities and shareholders' equity | $ 432,198 | $ 417,346 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Consolidated Statements of Financial Condition | ||
Held-to-Maturity Securities, Fair Value | $ 24,919 | $ 24,615 |
Allowance for loan and lease losses | $ 2,969 | |
Allowance for loan and lease losses | $ 1,755 | |
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 19,000,000 | 19,000,000 |
Common stock, shares issued | 3,373,723 | 3,296,843 |
Common stock, shares outstanding | 3,323,456 | 3,296,843 |
Treasury stock, Shares | 50,267 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest Income | ||||
Loans, including fees | $ 3,099 | $ 2,431 | $ 5,879 | $ 4,805 |
Debt securities | ||||
Taxable | 1,216 | 410 | 2,420 | 745 |
Non taxable | 44 | 37 | 93 | 75 |
Dividends on restricted investments | 36 | 6 | 61 | 11 |
Federal funds sold | 31 | 30 | 70 | 39 |
Deposits with banks | 79 | 13 | 128 | 19 |
Financial derivative | 33 | 33 | ||
Total interest income | 4,538 | 2,927 | 8,684 | 5,694 |
Interest Expense | ||||
Deposits | 1,247 | 298 | 2,233 | 608 |
Advances from FHLB | 636 | 141 | 1,162 | 285 |
Other | 3 | 2 | 5 | 5 |
Total interest expense | 1,886 | 441 | 3,400 | 898 |
Net Interest Income | 2,652 | 2,486 | 5,284 | 4,796 |
Provision for Credit Losses - loans | 112 | 195 | ||
Provision for Credit Losses - loans | 37 | 77 | ||
Provision for Credit Losses - off-balance sheet credit exposures | (19) | (12) | ||
Provision for Credit Losses | 93 | 37 | 183 | 77 |
Net Interest Income After Provision for Credit Losses | 2,559 | 2,449 | 5,101 | 4,719 |
Noninterest Income | ||||
Service charges on deposit accounts | 170 | 165 | 331 | 330 |
Other service charges and fees | 301 | 278 | 580 | 534 |
Net loss on securities transactions | (29) | (1,687) | (29) | |
Net appreciation on bank-owned life insurance | 26 | 24 | 51 | 49 |
Other income | 14 | 11 | 29 | 18 |
Total noninterest income (loss) | 511 | 449 | (696) | 902 |
Noninterest Expenses | ||||
Salaries and employee benefits | 1,683 | 1,406 | 3,250 | 2,769 |
Occupancy and equipment expense | 205 | 184 | 402 | 376 |
Data processing | 221 | 203 | 442 | 394 |
Technology expense | 115 | 107 | 224 | 195 |
Contract services | 65 | 43 | 127 | 78 |
Director fees | 99 | 95 | 197 | 191 |
Other expense | 491 | 330 | 875 | 609 |
Total noninterest expenses | 2,879 | 2,368 | 5,517 | 4,612 |
Income (Loss) Before Income Taxes | 191 | 530 | (1,112) | 1,009 |
Income Tax Expense (Benefit) | 31 | 114 | (255) | 202 |
Net Income (Loss) | $ 160 | $ 416 | $ (857) | $ 807 |
Earnings (loss) per share - basic | $ 0.05 | $ 0.14 | $ (0.28) | $ 0.27 |
Earnings (loss) per share - diluted | $ 0.05 | $ 0.14 | $ (0.28) | $ 0.27 |
Weighted-average shares outstanding - basic | 3,131,800 | 3,015,599 | 3,093,113 | 3,012,971 |
Weighted-average shares outstanding - diluted | 3,131,800 | 3,015,599 | 3,093,113 | 3,012,971 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net Income (Loss) | $ 160 | $ 416 | $ (857) | $ 807 |
Net changes in fair value of available for sale securities, before tax | (1,397) | (2,944) | (1,159) | (6,106) |
Reclassification adjustment for realized loss on sale of investment securities included in net income (loss), before tax | 29 | 1,687 | 29 | |
Net changes in fair value of available for sale securities hedged, before tax | 550 | 550 | ||
Total other items of comprehensive (loss) income, before tax | (847) | (2,915) | 1,078 | (6,077) |
Income tax benefit (expense) related to other items of comprehensive (loss) income | 179 | 612 | (226) | 1,276 |
Total other items of comprehensive (loss) income, after tax | (668) | (2,303) | 852 | (4,801) |
Comprehensive Loss | $ (508) | $ (1,887) | $ (5) | $ (3,994) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Additional Paid In Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid In Capital | Retained Earnings Cumulative change in accounting principle (adoption of ASC 326) | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Accumulated Other Comprehensive (Loss) Income Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss) Income | Unearned ESOP Shares. Cumulative Effect, Period of Adoption, Adjusted Balance | Unearned ESOP Shares. | Treasury Stock | Cumulative change in accounting principle (adoption of ASC 326) | Cumulative Effect, Period of Adoption, Adjusted Balance | Total |
Beginning balance at Dec. 31, 2021 | $ 33 | $ 30,932 | $ 32,329 | $ (686) | $ (2,476) | $ 60,132 | |||||||||
Net Income (Loss) | 807 | 807 | |||||||||||||
Net changes in fair value of available for sale securities, net of tax (benefit) expense | (4,801) | (4,801) | |||||||||||||
ESOP shares committed to be released | 46 | 65 | 111 | ||||||||||||
Ending balance at Jun. 30, 2022 | 33 | 30,978 | 33,136 | (5,487) | (2,411) | 56,249 | |||||||||
Beginning balance at Mar. 31, 2022 | 33 | 30,950 | 32,720 | (3,184) | (2,443) | 58,076 | |||||||||
Net Income (Loss) | 416 | 416 | |||||||||||||
Net changes in fair value of available for sale securities, net of tax (benefit) expense | (2,303) | (2,303) | |||||||||||||
ESOP shares committed to be released | 28 | 32 | 60 | ||||||||||||
Ending balance at Jun. 30, 2022 | 33 | 30,978 | 33,136 | (5,487) | (2,411) | 56,249 | |||||||||
Beginning balance at Dec. 31, 2022 | $ 33 | 33 | $ 31,099 | 31,099 | $ (1,010) | $ 33,073 | 34,083 | $ (6,999) | (6,999) | $ (2,346) | (2,346) | $ (1,010) | $ 54,860 | 55,870 | |
Net Income (Loss) | (857) | (857) | |||||||||||||
Stock based compensation expense | 285 | 285 | |||||||||||||
Net changes in other comprehensive income (loss), net of tax benefit | 852 | 852 | |||||||||||||
Issuance of restricted stock awards | 1 | 1 | |||||||||||||
Cash Dividend declared and paid | (168) | (168) | |||||||||||||
ESOP shares committed to be released | 21 | 66 | 87 | ||||||||||||
Treasury stock purchased | $ (610) | (610) | |||||||||||||
Ending balance at Jun. 30, 2023 | 34 | 31,405 | 32,048 | (6,147) | (2,280) | (610) | 54,450 | ||||||||
Beginning balance at Mar. 31, 2023 | 34 | 31,218 | 31,989 | (5,479) | (2,313) | 55,449 | |||||||||
Net Income (Loss) | 160 | 160 | |||||||||||||
Stock based compensation expense | 182 | 182 | |||||||||||||
Net changes in other comprehensive income (loss), net of tax benefit | (668) | (668) | |||||||||||||
Cash Dividend declared and paid | (101) | (101) | |||||||||||||
ESOP shares committed to be released | 5 | 33 | 38 | ||||||||||||
Treasury stock purchased | (610) | (610) | |||||||||||||
Ending balance at Jun. 30, 2023 | $ 34 | $ 31,405 | $ 32,048 | $ (6,147) | $ (2,280) | $ (610) | $ 54,450 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Consolidated Statements of Shareholders' Equity | |||||
Tax on fair value of available for sale securities | $ 612 | $ 1,276 | |||
Cash dividend declared | $ 0.03 | $ 0.03 | $ 0.02 | ||
ESOP shares committed to be released/shares earned. (in shares) | 3,258 | 3,258 | 6,516 | 6,516 | |
Treasury stock purchased, Shares | 50,267 | 50,267 | |||
Other comprehensive income (loss), Tax (benefit) expense | $ (179) | $ (612) | $ 226 | $ (1,276) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities | ||
Net (loss) income | $ (857) | $ 807 |
Adjustments to reconcile net income to net cash from operating activities | ||
Provision for credit losses - loans | 195 | |
Provision for credit losses - loans | 77 | |
Provision for credit losses - off-balance sheet credit exposures | (12) | |
Net (accretion) amortization of securities | (6) | 269 |
Depreciation and amortization | 230 | 216 |
Net realized loss on sales of securities available for sale | 1,687 | 29 |
Loss on sale of fixed assets | 9 | |
Appreciation on bank-owned life insurance | (51) | (49) |
ESOP compensation expense for allocated shares | 87 | 111 |
Stock-based compensation | 285 | |
Deferred income tax | (397) | 44 |
Loss on fair value adjustment of fair value hedges | 14 | |
Net change in | ||
Accrued interest receivable | (119) | (54) |
Other assets | 20 | (11) |
Accrued expenses and other liabilities | 423 | 152 |
Net Cash from Operating Activities | 1,499 | 1,600 |
Investing Activities | ||
Net change in interest bearing deposits in banks | (3,061) | 7,536 |
Purchases | (9,511) | (31,377) |
Sales | 17,027 | 10,822 |
Maturities, prepayments and calls | 2,724 | 2,180 |
Purchases | (2,139) | |
Maturities, prepayments and calls | 2,025 | 3,552 |
Purchases of restricted investments | (571) | (7) |
Loan originations and principal collections, net | (18,645) | (10,238) |
Net decrease in net investment in direct financing leases | 28 | 41 |
Purchases of premises and equipment | (3,324) | (208) |
Net Cash used for Investing Activities | (15,447) | (17,699) |
Financing Activities | ||
Net increase in deposits | 6,487 | 13,652 |
Advances from FHLB and other borrowings | 23,201 | |
Payments on FHLB and other borrowings | (13,839) | (1,037) |
Cash dividends declared and paid | (168) | |
Purchases of treasury stock | (610) | |
Net Cash from Financing Activities | 15,071 | 12,615 |
Net Change in Cash and Cash Equivalents | 1,123 | (3,484) |
Cash and Cash Equivalents at Beginning of Period | 8,927 | 21,915 |
Cash and Cash Equivalents at End of Period | $ 10,050 | $ 18,431 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
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 and became the holding company for Mineola Community Bank, SSB (the “Bank”) as part of a mutual to stock conversion completed on July 14, 2021. The Company’s shares trade on the NASDAQ under the symbol TCBS. Voting rights in the Company are held and exercised exclusively by the shareholders of the Company. The Company’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 June 30, 2023, and for the three and six months ended June 30, 2023 and 2022, 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 and six months ended June 30, 2023 are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2023, or any other period. Certain prior period data presented in the consolidated financial statements has 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, 2022. 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, 2022. 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 credit losses. Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”), effective January 1, 2023. The guidance replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credits, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. ASC 326 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 a company’s portfolio. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will not be required to sell. The Company adopted ASC 326 using the modified retrospective method for loans and off-balance-sheet (“OBS”) credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a one-time cumulative-effect adjustment to the allowance for credit losses of as of January 1, 2023. In addition, the Company recorded a The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. As of December 31, 2022, the Company did not hold any purchased loans with deteriorated credit quality. Therefore, the Company did not have any PCI loans upon adoption of ASC 326 as of January 1, 2023. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. Therefore, upon adoption of ASC 326, the Company determined than an allowance for credit losses on available-for-sale securities was not deemed necessary. Held to Maturity Securities Beginning January 1, 2023, the Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through net income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for or (reduction of) provision for credit losses. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met. For the three and six months ended June 30, 2023, the Company determined no provision for credit losses was necessary. Allowance for Credit Losses The Company uses the weighted average remaining maturity (“WARM”) method to estimate expected losses for all of Company’s loan pools. These pools are as follows: construction & land; farmland; 1-4 residential & multi-family real estate; commercial real estate; agriculture; commercial; and consumer and other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company calculates an average annual loss rate and estimates future outstanding balances based on contractual maturities and estimated prepayments. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. Relevant data to support the Company’s estimates of lifetime expected credit losses is maintained through internal and external information. The CECL model leverages the use of publicly available call report data, which allows the use of external information from peers to supplement the Company’s own historical data. The loss rate is based on historical loss rates for the peer group and the Company. Due to internal loss rates being low, a blended historical loss rate of 75% peer group and 25% Company was used. The weighted average remaining life is determined based on contracted loan payments, expected prepayments and maturity dates. The allowance model uses data from the St. Louis Federal Reserve Economic Database for reasonable and supportable forecasts. Management has determined that between years one and two represents a reasonable and supportable forecast period and reverts to a historical loss rate in years three or four depending on the loan type. Management leverages economic projections from the St. Louis Federal Reserve Economic Database (FRED) to inform its loss driver forecasts. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics. The following table illustrates the impact of the adoption of ASC 326: As Reported Pre Impact of Assets: Allowance for credit losses on loans $ 2,780 $ 1,755 $ 1,025 Liabilities: Allowance for credit losses on OBS credit exposures (included in other liabilities) 254 — 254 The Company adopted ASU 2022-02 , Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, The Company uses various indicators to identify borrowers in financial difficulty. Consumer loan borrowers that are delinquent and commercial loan borrowers that are rated substandard or worse are the primary criteria used to identify borrowers who are experiencing financial difficulty. If a borrower is current at the time of modification, the loan generally remains a performing loan as long as there is demonstrated performance prior to the modification, and payment in full under the modified terms is expected. Otherwise, the loan is placed on nonaccrual status and reported as nonperforming until there is sustained repayment performance for a reasonable period, which is generally at least six consecutive months. Treasury Stock Treasury stock is accounted for on the cost method and consists of 50,267 shares at June 30, 2023. The Company had no treasury shares at December 31, 2022. Derivatives The Company adopted ASU 2022-01, Derivatives and Hedging (Topic 815) – Fair Value Hedging – Portfolio Layer Method, At the inception of a derivative contract, the Company designates the derivatives as one of the three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivate, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives not designated or that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Accrued settlements on derivatives not designated or that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Company is a party settle monthly or semi-annually. Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying financial statements to maintain consistency between periods presented. The reclassifications had no impact on net income (loss) or shareholders’ equity. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 2 – 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 and restricted stock awards granted on August 31, 2022 and February 28, 2023, 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. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Income (Loss) $ 160 $ 416 $ (857) $ 807 Weighted average shares outstanding for basic earnings per share: Average shares outstanding 3,363,064 3,257,759 3,327,647 3,257,759 Less: average unearned ESOP shares (231,264) (242,160) (234,534) (244,788) Weighted average shares outstanding for basic earnings per share 3,131,800 3,015,599 3,093,113 3,012,971 Additional dilutive shares — — — — Weighted average shares outstanding for dilutive earnings per share 3,131,800 3,015,599 3,093,113 3,012,971 Basic and dilutive earnings (loss) per share $ 0.05 $ 0.14 $ (0.28) $ 0.27 Restricted stock awards for 115,964 shares of common stock were not considered in computing diluted earnings per share for 2023, because they were antidilutive. Stock options for 289,932 shares of common stock were not considered in computing diluted earnings per share for 2023 because they were nonvested. |
Debt Securities
Debt Securities | 6 Months Ended |
Jun. 30, 2023 | |
Debt Securities | |
Debt Securities | Note 3 - Debt Securities The amortized cost and fair value of securities, with gross unrealized gains and losses, follows: June 30, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 27,404 $ — $ (1,571) $ 25,833 Collateralized mortgage obligations 54,675 3 (3,305) 51,373 State and municipal 16,333 — (2,194) 14,139 Corporate bonds 5,750 — (1,263) 4,487 Total securities available for sale $ 104,162 $ 3 $ (8,333) $ 95,832 Held to Maturity Debt Securities: Residential mortgage-backed $ 24,030 $ — $ (2,898) $ 21,132 State and municipal 1,996 — (50) 1,946 U.S. Government and agency 1,844 — (3) 1,841 Total securities held to maturity $ 27,870 $ — $ (2,951) $ 24,919 December 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 25,573 $ — $ (1,815) $ 23,758 Collateralized mortgage obligations 52,134 584 (2,474) 50,244 State and municipal 16,387 — (2,606) 13,781 Corporate bonds 5,750 — (935) 4,815 U.S. Government and agency 16,169 — (1,614) 14,555 Total securities available for sale $ 116,013 $ 584 $ (9,444) $ 107,153 Held to Maturity Debt Securities: Residential mortgage-backed $ 25,817 $ — $ (3,132) $ 22,685 State and municipal 2,010 — (80) 1,930 Total securities held to maturity $ 27,827 $ — $ (3,212) $ 24,615 During the six months ended June 30, 2023, the Company had sales of available for sale securities of $17,027 with a loss of $1,687. During the three months ended June 30, 2023, the Company had no sales At June 30, 2023 and December 31, 2022, securities with a fair value of $4,359 and $3,162, 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 June 30, 2023, follows: Available for Sale Held to Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Due in one year $ — $ — $ 395 $ 394 Due from one to five years 3,175 2,894 365 365 Due in five to ten years 12,382 10,459 1,978 1,962 After ten years 6,526 5,273 1,102 1,066 Residential mortgage-backed 27,404 25,833 24,030 21,132 Collateralized mortgage obligations 54,675 51,373 — — Total $ 104,162 $ 95,832 $ 27,870 $ 24,919 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: June 30, 2023 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 (11,78) $ 15,000 $ (180) $ 31,965 $ (4,289) Collateralized mortgage obligations (16,11) 32,434 (949) 17,178 (2,356) State and municipal (5,19) 2,052 (14) 14,032 (2,230) Corporate bonds (1,11) 429 (71) 4,058 (1,192) U.S. Government and agency (1,0) 1,841 (3) — — Total $ 51,756 $ (1,217) $ 67,233 $ (10,067) December 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 (66,21) $ 16,889 $ (1,253) $ 21,888 $ (3,694) Collateralized mortgage obligations (11,5) 22,133 (797) 8,790 (1,677) State and municipal (15,9) 8,638 (1,267) 7,073 (1,419) Corporate bonds (10,2) 3,963 (787) 852 (148) U.S. Government and agency (1,13) 2,809 (181) 11,746 (1,433) Total $ 54,432 $ (4,285) $ 50,349 $ (8,371) At June 30, 2023, the Company had investment securities with approximately $10,067 in unrealized losses, which have been in continuous loss positions for more than twelve months. The Company’s assessments indicated that the cause of the market depreciation was primarily the change in market interest rates and not the issuers’ financial condition or downgrades by rating agencies. In addition, approximately The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2023: Residential State and U.S Government AAA $ 24,030 $ 1,862 $ 1,844 Baa2 — 134 — $ 24,030 1,996 $ 1,844 Mortgage-backed securities and Collateralized Mortgage Obligations The unrealized losses on the Company’s investments in residential mortgage-backed securities and collateralized mortgage obligations were caused by market interest rate increases and decreases in prepayment speeds. Interest rates rose sharply throughout 2022 and caused increases in unrealized losses on securities. The Company has no plans to sell these securities and will continue to monitor the unrealized losses’ effect on the financial statements. The contractual cash flows of many of these 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 decreases 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 December 31, 2022. U.S. Government and agency The unrealized losses on the Company’s investments in U.S. government and agency securities were caused by market interest rate increases. Interest rates rose sharply throughout 2022 and caused increases in unrealized losses on securities. The Company has no plans to sell these securities and will continue to monitor the unrealized losses’ effect on the financial statements. 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 December 31, 2022. Municipal Securities and Corporate Bonds The unrealized losses on the Company’s investments in state and municipal securities and corporate bonds were caused by market interest rate increases. Interest rates rose sharply throughout 2022 and caused increases in unrealized losses on securities. The Company has no plans to sell these securities and will continue to monitor the effect of the unrealized losses on the financial statements. 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 December 31, 2022. 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 December 31, 2022, no investment securities were other-than-temporarily impaired. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Leases | |
Loans and Leases | Note 4 - Loans and Allowance for Credit Losses A summary of the balances of loans and leases follows: June 30, December 31, 2023 2022 Real estate: Construction and land $ 45,848 $ 36,257 Farmland 8,806 7,558 1-4 Residential & multi-family 167,946 162,785 Commercial real estate 35,108 33,678 Total Real Estate 257,708 240,278 Agriculture 132 189 Commercial 7,545 7,031 Consumer and other 6,346 5,595 Subtotal 271,731 253,093 Less allowance for credit losses (2,969) (1,755) Loans and leases, net $ 268,762 $ 251,338 The following tables set forth information regarding the activity in the allowance for credit losses for the three and six months ended June 30, 2023: June 30, 2023 Real Estate Allowance for credit losses: Construction and Land Farmland 1-4 Residential Commercial real estate Agriculture Commercial Consumer Total Three months ended Beginning balance, April 1, 2023 $ 419 $ 69 $ 1,470 $ 366 $ 79 $ 362 $ 94 $ 2,859 Provision for credit losses 23 — 47 6 (78) 104 10 112 Loans charged-off — — — — — — (3) (3) Recoveries — — — — — — 1 1 Balance, June 30, 2023 $ 442 $ 69 $ 1,517 $ 372 $ 1 $ 466 $ 102 $ 2,969 Six months ended Beginning balance prior to adoption of ASC 326 $ 262 $ 31 $ 812 $ 227 $ 1 $ 359 $ 63 $ 1,755 Impact of adopting ASC 326 on January 1, 2023 92 28 677 133 2 61 $ 32 1,025 Provision for credit losses 88 10 28 12 (2) 46 13 195 Loans charged-off — — — — — — (9) (9) Recoveries — — — — — — 3 3 Balance, June 30, 2023 $ 442 $ 69 $ 1,517 $ 372 $ 1 $ 466 $ 102 $ 2,969 Balance, June 30, 2023 allocated to loans and leases individually evaluated $ 5 $ 4 $ 18 $ 7 $ — $ 384 $ 5 $ 423 Balance, June 30, 2023 allocated to loans and leases collectively evaluated $ 437 $ 65 $ 1,499 $ 365 $ 1 $ 82 $ 97 $ 2,546 Loans and leases receivable: Balance, June 30, 2023 loans and leases individually evaluated $ 364 $ 317 $ 1,356 $ 647 $ — $ 2,799 $ 37 $ 5,520 Balance, June 30, 2023 loans and leases collectively evaluated 45,484 8,489 166,590 34,461 132 4,746 6,309 266,211 Balance, June 30, 2023 $ 45,848 $ 8,806 $ 167,946 $ 35,108 $ 132 $ 7,545 $ 6,346 $ 271,731 The following tables present the balances and activity in the allowance for loan and lease losses as of and for the three and six months ended June 30, 2022 and the year ended December 31, 2022, and the allowance for loan and lease losses and recorded investment in loans receivable based on portfolio segment by impairment method as of December 31, 2022. Allocation of a portion of the allowance to one type of loan does not preclude its availability to absorb losses in other categories. June 30, 2022 Consumer Real Estate Agriculture Commercial and Other Total Allowance for loan and lease losses: Three months ended Beginning balance, April 1, 2022 $ 1,182 $ 1 $ 363 $ 64 $ 1,610 Charge-offs — — — (10) (10) Recoveries — — — 2 2 Provision 26 — 4 7 37 Ending balance, June 30, 2022 $ 1,208 $ 1 $ 367 $ 63 $ 1,639 Six months ended Beginning balance, January 1, 2022 $ 1,178 $ 1 $ 357 $ 56 $ 1,592 Charge-offs — — — (36) (36) Recoveries — — — 6 6 Provision 30 — 10 37 77 Balance, June 30, 2022 $ 1,208 $ 1 $ 367 $ 63 $ 1,639 December 31, 2022 Consumer Allowance for loan and lease losses: Real Estate Agriculture Commercial and Other Total Balance, December 31, 2022 allocated to loans and leases individually evaluated for impairment $ — $ — $ 300 $ — $ 300 Balance, December 31, 2022 allocated to loans and leases collectively evaluated for impairment $ 1,332 $ 1 $ 59 $ 63 $ 1,455 Loans and leases receivable: Balance, December 31, 2022 loans and leases individually evaluated for impairment $ 945 $ — $ 531 $ — $ 1,476 Balance, December 31, 2022 loans and leases collectively evaluated for impairment 239,333 189 6,500 5,595 251,617 Balance, December 31, 2022 $ 240,278 $ 189 $ 7,031 $ 5,595 $ 253,093 The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days and still accruing as of June 30, 2023: Nonaccrual Nonaccrual Loans Past Real estate Construction and land $ — $ — $ — Farmland 159 — — 1‑4 Residential & multi-family 520 — — Commercial real estate 191 — — Agriculture — — — Commercial 6 367 — Consumer and other 16 — — Total $ 892 $ 367 $ — The following table sets forth information regarding the nonaccrual status within the loan and lease portfolio as of December 31, 2022: Nonaccrual Real estate Construction and land $ — Farmland 165 1‑4 Residential & multi-family 548 Commercial real estate 70 Agriculture — Commercial 398 Consumer and other — Total $ 1,181 The Company did not recognize any interest income on nonaccrual loans during the periods ended June 30, 2023 or June 30, 2022. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023: Real Accounts Other Real estate Farmland $ 159 $ — $ — 1-4 Residential & multi-family 675 — — Commercial real estate 191 — — Commercial — 564 — Consumer and other — — 16 Total $ 1,025 $ 564 $ 16 The Company had $1,605 in collateral-dependent loans as of June 30, 2023. The following table sets forth information regarding impaired loans as of December 31, 2022: Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With no related allowance Real estate Farmland $ 165 $ 223 $ — $ 179 1‑4 Residential & multi-family 710 765 — 843 Commercial real estate 70 76 — 97 Commercial 142 145 — 90 Consumer and other — — — 17 With a related allowance Commercial 389 417 300 425 Total Real estate Farmland 165 223 — 179 1-4 Residential & multi-family 710 765 — 843 Commercial real estate 70 76 — 670 Commercial 531 562 300 503 Consumer and other — — — 17 $ 1,476 $ 1,626 $ 300 $ 2,212 Internal Risk Categories A loan is considered collateral-dependent 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. Loans that do not share risk characteristics are evaluated on an individual basis. For collateral-dependent loans, excluding assisted living loans which are evaluated using a market price valuation methodology, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral less estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan. 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 refers 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 period ended June 30, 2023 or the year ended December 31, 2022. Based on the most recent analysis performed, the risk category of loans by class of loans as of June 30, 2023 and gross chargeoffs for the six months then ended are as follows: Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total Construction and land Risk rating Pass $ 8,713 $ 31,236 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,484 Special mention — 364 — — — — 364 Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — $ 8,713 $ 31,600 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,848 Farmland Risk rating Pass $ 1,588 $ 2,755 $ 1,182 $ 510 $ 867 $ 1,587 $ 8,489 Special mention — — — — — — — Substandard — — — — 158 159 317 Doubtful — — — — — — — Loss — — — — — — — $ 1,588 $ 2,755 $ 1,182 $ 510 $ 1,025 $ 1,746 $ 8,806 1-4 Residential & multi-family Risk rating Pass $ 17,074 $ 28,322 $ 37,145 $ 45,977 $ 10,405 $ 27,666 $ 166,589 Special mention — 138 — — — 7 145 Substandard — — — — 286 926 1,212 Doubtful — — — — — — — Loss — — — — — — — $ 17,074 $ 28,460 $ 37,145 $ 45,977 $ 10,691 $ 28,599 $ 167,946 Commercial real estate Risk rating Pass $ 2,346 $ 5,827 $ 10,291 $ 3,274 $ 6,822 $ 5,900 $ 34,460 Special mention — 456 — — — — 456 Substandard — 126 — — — 66 192 Doubtful — — — — — — — Loss — — — — — — — $ 2,346 $ 6,409 $ 10,291 $ 3,274 $ 6,822 $ 5,966 $ 35,108 Agriculture Risk rating Pass $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Special mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Commercial Risk rating Pass $ 1,622 $ 1,154 $ 916 $ 436 $ 396 $ 221 $ 4,745 Special mention 667 230 101 5 — 200 1,203 Substandard 191 3 1,035 83 285 — 1,597 Doubtful — — — — — — — Loss — — — — — — — $ 2,480 $ 1,387 $ 2,052 $ 524 $ 681 $ 421 $ 7,545 Consumer and other Risk rating Pass $ 2,774 $ 1,851 $ 1,347 $ 177 $ 18 $ 142 $ 6,309 Special mention 3 13 — — — — 16 Substandard 4 11 6 — — — 21 Doubtful — — — — — — — Loss — — — — — — — $ 2,781 $ 1,875 $ 1,353 $ 177 $ 18 $ 142 $ 6,346 Current period gross charge-offs $ 8 $ 1 $ — $ — $ — $ — $ 9 The following tables set forth information regarding the internal classification of the loan and lease portfolio at December 31, 2022: December 31, 2022 Special Pass Mention Substandard Doubtful Loss Total Real estate Construction and land $ 35,608 $ 649 $ — $ — $ — $ 36,257 Farmland 7,231 — 327 — — 7,558 1‑4 Residential & multi-family 160,472 9 2,304 — — 162,785 Commercial real estate 33,482 — 196 — — 33,678 Agriculture 189 — — — — 189 Commercial 6,496 — 146 389 — 7,031 Consumer and other 5,562 — 33 — — 5,595 Total $ 249,040 $ 658 $ 3,006 $ 389 $ — $ 253,093 The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which is subsequently presented. The following table presents the amortized cost of performing and non-performing loans as of June 30, 2023: Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total Construction and land Performing $ 8,713 $ 31,600 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,848 Non-performing — — — — — — — $ 8,713 $ 31,600 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,848 Farmland Performing $ 1,588 $ 2,755 $ 1,182 $ 510 $ 1,025 $ 1,587 $ 8,647 Non-performing — — — — — 159 159 $ 1,588 $ 2,755 $ 1,182 $ 510 $ 1,025 $ 1,746 $ 8,806 1-4 Residential & multi-family Performing $ 17,074 $ 28,460 $ 37,145 $ 45,977 $ 10,506 $ 28,109 $ 167,271 Non-performing — — — — 185 490 675 $ 17,074 $ 28,460 $ 37,145 $ 45,977 $ 10,691 $ 28,599 $ 167,946 Commercial real estate Performing $ 2,346 $ 6,283 $ 10,291 $ 3,274 $ 6,822 $ 5,900 $ 34,916 Non-performing — 126 — — — 66 192 $ 2,346 $ 6,409 $ 10,291 $ 3,274 $ 6,822 $ 5,966 $ 35,108 Agriculture Performing $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Non-performing — — — — — — — $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Commercial Performing $ 2,289 $ 1,387 $ 2,046 $ 441 $ 396 $ 421 $ 6,980 Non-performing 191 — 6 83 285 — 565 $ 2,480 $ 1,387 $ 2,052 $ 524 $ 681 $ 421 $ 7,545 Consumer and other Performing $ 2,781 $ 1,864 $ 1,347 $ 177 $ 18 $ 142 $ 6,329 Non-performing — 11 6 — — — 17 $ 2,781 $ 1,875 $ 1,353 $ 177 $ 18 $ 142 $ 6,346 The following table sets forth information regarding the credit risk profile based on payment activity of the loan and lease portfolio at December 31, 2022: December 31, 2022 Performing Non- Total Real estate Construction and land $ 36,257 $ — $ 36,257 Farmland 7,393 165 7,558 1‑4 Residential & multi-family 162,237 548 162,785 Commercial real estate 33,608 70 33,678 Agriculture 189 — 189 Commercial 6,633 398 7,031 Consumer and other 5,595 — 5,595 Total $ 251,912 $ 1,181 $ 253,093 The following is an aging analysis for loans as of June 30, 2023 and December 31, 2022: June 30, 2023 30-59 Days 60-89 Days 90 Days Total Current Total Real estate Construction and land $ 1,441 $ 3 $ — $ 1,444 $ 44,404 $ 45,848 Farmland — 30 159 189 8,617 8,806 1‑4 Residential & multi-family — 454 145 599 167,347 167,946 Commercial real estate — — 126 126 34,982 35,108 Agriculture — — — — 132 132 Commercial 80 1,714 — 1,794 5,751 7,545 Consumer and other 16 15 11 42 6,304 6,346 Total $ 1,537 $ 2,216 $ 441 $ 4,194 $ 267,537 $ 271,731 December 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 $ 930 $ — $ 930 $ 35,327 $ 36,257 $ — Farmland 162 — 162 7,396 7,558 — 1‑4 Residential & multi-family 1,215 — 1,215 161,570 162,785 — Commercial real estate 126 — 126 33,552 33,678 — Agriculture — — — 189 189 — Commercial — 1 1 7,030 7,031 1 Consumer and other 10 — 10 5,585 5,595 — Total $ 2,443 $ 1 $ 2,444 $ 250,649 $ 253,093 $ 1 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 and six months ended June 30, 2023 and 2022. The following table presents interest income recognized on loans that are collateral-dependent and individually reviewed for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Real estate 1-4 Residential & multi-family $ 1 $ 2 $ 3 $ 4 Commercial real estate — — — 13 Commercial 1 — 3 — $ 2 $ 2 $ 6 $ 17 During the three and six months ended June 30, 2023, there were no modifications of loans to borrowers in financial difficulty. During the three and six months ended June 30, 2022, there were no modifications resulting in troubled debt restructurings. There have been no subsequently defaulted troubled debt restructurings. The Company has no commitments to loan additional funds to borrowers whose loans have been modified but may on occasion extend financing to these borrowers. At June 30, 2023 and December 31, 2022, the Company had a recorded investment of $343 and $364, 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 | 6 Months Ended |
Jun. 30, 2023 | |
Off-Balance-Sheet Activities | |
Off-Balance-Sheet Activities | Note 5 - 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 June 30, 2023 and December 31, 2022, the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount June 30, 2023 December 31, 2022 Commitments to extend credit $ 44,920 $ 43,327 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 Bank is party to an agreement with the Federal Reserve Bank of Boston that provides the Bank with a federal funds line of credit in an amount tied to securities on deposit with that bank. The Bank pays no fees for this line of credit and has not drawn upon it. The Bank is party to agreements with its correspondent banks that provide the Bank with lines for up to $15,000 federal funds lines of credit to support overnight funding needs. The Bank pays no fees for these lines of credit and has not drawn upon them. One line renews annually and the other line is in effect until either party changes the terms of the agreement. At June 30, 2023, 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 financial statements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | Note 6 - Supplemental Cash Flow Information Supplemental disclosure of cash flow information is as follows: June 30, 2023 2022 Supplemental cash flow information: Cash paid for Interest on deposits $ 2,058 $ 630 Interest on FHLB advances 1,069 287 Other interest 5 5 Income taxes 120 110 |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 6 Months Ended |
Jun. 30, 2023 | |
Minimum Regulatory Capital Requirements | |
Minimum Regulatory Capital Requirements | Note 7 - 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 June 30, 2023 and December 31, 2022, the Bank’s CBLR ratio was 11.12% and 12.31%, respectively, which exceeded all regulatory capital requirements under the CBLR framework, and the Bank was considered to be “well-capitalized.” Under the CBLR 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, qualifying community banking organizations that exceed the 9% CBLR are 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. Qualifying community banking organizations that elect 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8 - 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 measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in valuation techniques during either the six months ended June 30, 2023 or the year ended December 31, 2022. 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. Derivative Instruments – As discussed in Note 10 “Derivatives” within this Item 1 of this Quarterly Report, the Company records derivative instruments at fair value on a recurring basis. The Company utilizes derivative instruments as part of the management of interest rate risk to modify the re-pricing characteristics of certain poritions of the Company’s interest-bearing assets and liabilities. The Company has contracted with a third-party vendor to provide valuations for derivatives using standard valuation techniques and therefore classifies such valuations as Level 2. Third-party valuations are validated by the Company using the Bloomberg Valuation Service’s derivative pricing functions. No significant differences were identified udirng the validation as of June 30, 2023. Collateral-dependent Loans – Collateral dependent 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. The following table summarizes financial assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2023 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 25,833 $ — $ 25,833 Collateralized mortgage obligations — 51,373 — 51,373 State and municipal — 14,139 — 14,139 Corporate bonds — 4,487 — 4,487 Financial derivatives — 536 — 536 Total financial assets $ — $ 96,368 $ — $ 96,368 December 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 23,758 $ — $ 23,758 Collateralized mortgage obligations — 50,244 — 50,244 State and municipal — 13,781 — 13,781 Corporate bonds — 4,815 — 4,815 U.S. Government and agency — 14,555 — 14,555 Total financial assets $ — $ 107,153 $ — $ 107,153 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 June 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2023 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Collateral-dependent loans $ — $ — $ 67 $ 67 $ — $ — $ 67 $ 67 December 31, 2022 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Impaired loans $ — $ — $ 89 $ 89 $ — $ — $ 89 $ 89 During the six months ended June 30, 2023 and 2022, certain collateral-dependent loans were remeasured and reported at fair value through a specific allocation of the allowance for credit losses based upon the fair value of the underlying collateral. At June 30, 2023, collateral-dependent loans with a carrying value of $367 were reduced by specific valuation allowance allocations totaling $300 to a reported fair value of $67. At December 31, 2022, impaired loans with a carrying value of $389 were reduced by specific valuation allowance allocations totaling $300 to a reported fair value of $89. The fair value of impaired loans is determined based on collateral valuations utilizing Level 3 valuation inputs. There was no charge to the provision for credit losses - loans as a result of the valuation allowances for the three and six months ended June 30, 2023 and 2022. 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 June 30, 2023 Technique Inputs Values Collateral-dependent loans $ 67 Appraisal of collateral (1) Appraisal adjustment 10-25 % Significant Range of Fair Value at Principal Valuation Unobservable Significant Input Instrument December 31, 2022 Technique Inputs Values Impaired loans $ 89 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: June 30, 2023 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 10,050 $ — $ — $ 10,050 $ 10,050 Interest bearing deposits in banks 5,116 — — 5,116 5,116 Securities held to maturity — 24,919 — 24,919 27,870 Loans, net — — 252,634 252,634 268,726 Net investment in direct financing leases — — 36 36 36 Accrued interest receivable 1,446 — — 1,446 1,446 Restricted investments carried at cost — 3,376 — 3,376 3,376 Financial liabilities Deposits — — 302,768 302,768 302,564 FHLB advances — — 69,682 69,682 71,856 Accrued interest payable 600 — — 600 600 December 31, 2022 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 8,927 $ — $ — $ 8,927 $ 8,927 Interest bearing deposits in banks 2,055 — — 2,055 2,055 Securities held to maturity — 24,615 — 24,615 27,827 Loans, net — — 251,794 251,794 251,274 Net investment in direct financing leases — — 64 64 64 Accrued interest receivable 1,327 — — 1,327 1,327 Restricted investments carried at cost — 2,805 — 2,805 2,805 Mortgage servicing rights — — 7 7 7 Financial liabilities Deposits — — 298,050 298,050 296,077 FHLB advances — — 60,825 60,825 62,494 Accrued interest payable 332 — — 332 332 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. Accrued 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. Accrued interest payable – The carrying value approximates the fair value. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Jun. 30, 2023 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | Note 9 - 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 as of June 30, 2023 and December 31, 2022 are as follows: June 30, 2023 December 31, 2022 Shares allocated to participants $ 26,062 $ 26,062 Shares committed to be released to participants 6,516 — Shares distributed to retiring participant (336) (220) Unreleased shares 228,043 234,559 Total 260,285 260,401 Fair value of unreleased shares $ 2,768 $ 3,600 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
Derivatives | |
Derivatives | Note 10 - Derivatives The Company is exposed to economic risks arising from its business operations and uses derivatives primarily to manage risk associated with changing interest rates. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). Fair Value Hedges – Derivatives are designated as fair value hedges when they are used to manage exposure to changes in the fair value of certain financial assets and liabilities, referred to as the hedged items, which fluctuate in value as a result of movements in interest rates. Available for Sale Securities – The Company has a swap agreement to hedge the interest rate risk on a portion of its fixed rate available for sale (AFS) securities. At June 30, 2023, the aggregate notional amount of the related hedged items of the AFS securities totaled $25 million and the fair value of the swaps associated with the derivative related to hedged items was an unrealized gain of $550. The Company applies hedge accounting in accordance with ASC 815, Derivatives and Hedging The following table summarizes key elements of the Company’s derivative instruments as of June 30, 2023, segregated by derivatives that are considered accounting hedges and those that are not: June 30, 2023 Notional Amount Fair Value Derivatives designated as hedges: Fair Value Hedges $ 25,000 $ 536 Total $ 25,000 $ 536 The following table summarizes the carrying value of the Company’s hedged assets in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of June 30, 2023: Carrying Amount of Hedged Assets Amount Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Assets Line items on the Consolidated Statements of Financial Condition in which the hedged items is included: Securities available for sale $ 43,170 $ (550) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Interim Financial Statements | Interim Financial Statements The interim unaudited consolidated financial statements as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022, 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 and six months ended June 30, 2023 are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2023, or any other period. Certain prior period data presented in the consolidated financial statements has 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, 2022. 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, 2022. |
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 credit losses. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”), effective January 1, 2023. The guidance replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credits, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. ASC 326 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 a company’s portfolio. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will not be required to sell. The Company adopted ASC 326 using the modified retrospective method for loans and off-balance-sheet (“OBS”) credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a one-time cumulative-effect adjustment to the allowance for credit losses of as of January 1, 2023. In addition, the Company recorded a The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. As of December 31, 2022, the Company did not hold any purchased loans with deteriorated credit quality. Therefore, the Company did not have any PCI loans upon adoption of ASC 326 as of January 1, 2023. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. Therefore, upon adoption of ASC 326, the Company determined than an allowance for credit losses on available-for-sale securities was not deemed necessary. Held to Maturity Securities Beginning January 1, 2023, the Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through net income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for or (reduction of) provision for credit losses. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met. For the three and six months ended June 30, 2023, the Company determined no provision for credit losses was necessary. Allowance for Credit Losses The Company uses the weighted average remaining maturity (“WARM”) method to estimate expected losses for all of Company’s loan pools. These pools are as follows: construction & land; farmland; 1-4 residential & multi-family real estate; commercial real estate; agriculture; commercial; and consumer and other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company calculates an average annual loss rate and estimates future outstanding balances based on contractual maturities and estimated prepayments. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. Relevant data to support the Company’s estimates of lifetime expected credit losses is maintained through internal and external information. The CECL model leverages the use of publicly available call report data, which allows the use of external information from peers to supplement the Company’s own historical data. The loss rate is based on historical loss rates for the peer group and the Company. Due to internal loss rates being low, a blended historical loss rate of 75% peer group and 25% Company was used. The weighted average remaining life is determined based on contracted loan payments, expected prepayments and maturity dates. The allowance model uses data from the St. Louis Federal Reserve Economic Database for reasonable and supportable forecasts. Management has determined that between years one and two represents a reasonable and supportable forecast period and reverts to a historical loss rate in years three or four depending on the loan type. Management leverages economic projections from the St. Louis Federal Reserve Economic Database (FRED) to inform its loss driver forecasts. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics. The following table illustrates the impact of the adoption of ASC 326: As Reported Pre Impact of Assets: Allowance for credit losses on loans $ 2,780 $ 1,755 $ 1,025 Liabilities: Allowance for credit losses on OBS credit exposures (included in other liabilities) 254 — 254 The Company adopted ASU 2022-02 , Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, The Company uses various indicators to identify borrowers in financial difficulty. Consumer loan borrowers that are delinquent and commercial loan borrowers that are rated substandard or worse are the primary criteria used to identify borrowers who are experiencing financial difficulty. If a borrower is current at the time of modification, the loan generally remains a performing loan as long as there is demonstrated performance prior to the modification, and payment in full under the modified terms is expected. Otherwise, the loan is placed on nonaccrual status and reported as nonperforming until there is sustained repayment performance for a reasonable period, which is generally at least six consecutive months. |
Treasury Stock | Treasury Stock Treasury stock is accounted for on the cost method and consists of 50,267 shares at June 30, 2023. The Company had no treasury shares at December 31, 2022. |
Derivatives | Derivatives The Company adopted ASU 2022-01, Derivatives and Hedging (Topic 815) – Fair Value Hedging – Portfolio Layer Method, At the inception of a derivative contract, the Company designates the derivatives as one of the three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivate, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives not designated or that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Accrued settlements on derivatives not designated or that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Company is a party settle monthly or semi-annually. |
Reclassifications | Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying financial statements to maintain consistency between periods presented. The reclassifications had no impact on net income (loss) or shareholders’ equity. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of impact of adoption of ASC 326 | As Reported Pre Impact of Assets: Allowance for credit losses on loans $ 2,780 $ 1,755 $ 1,025 Liabilities: Allowance for credit losses on OBS credit exposures (included in other liabilities) 254 — 254 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share | |
Schedule of basic and diluted earnings per common share | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Income (Loss) $ 160 $ 416 $ (857) $ 807 Weighted average shares outstanding for basic earnings per share: Average shares outstanding 3,363,064 3,257,759 3,327,647 3,257,759 Less: average unearned ESOP shares (231,264) (242,160) (234,534) (244,788) Weighted average shares outstanding for basic earnings per share 3,131,800 3,015,599 3,093,113 3,012,971 Additional dilutive shares — — — — Weighted average shares outstanding for dilutive earnings per share 3,131,800 3,015,599 3,093,113 3,012,971 Basic and dilutive earnings (loss) per share $ 0.05 $ 0.14 $ (0.28) $ 0.27 |
Debt Securities (Tables)
Debt Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Securities | |
Schedule of amortized cost and fair value of securities | June 30, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 27,404 $ — $ (1,571) $ 25,833 Collateralized mortgage obligations 54,675 3 (3,305) 51,373 State and municipal 16,333 — (2,194) 14,139 Corporate bonds 5,750 — (1,263) 4,487 Total securities available for sale $ 104,162 $ 3 $ (8,333) $ 95,832 Held to Maturity Debt Securities: Residential mortgage-backed $ 24,030 $ — $ (2,898) $ 21,132 State and municipal 1,996 — (50) 1,946 U.S. Government and agency 1,844 — (3) 1,841 Total securities held to maturity $ 27,870 $ — $ (2,951) $ 24,919 December 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Available for Sale Cost Gains Losses Value Debt Securities: Residential mortgage-backed $ 25,573 $ — $ (1,815) $ 23,758 Collateralized mortgage obligations 52,134 584 (2,474) 50,244 State and municipal 16,387 — (2,606) 13,781 Corporate bonds 5,750 — (935) 4,815 U.S. Government and agency 16,169 — (1,614) 14,555 Total securities available for sale $ 116,013 $ 584 $ (9,444) $ 107,153 Held to Maturity Debt Securities: Residential mortgage-backed $ 25,817 $ — $ (3,132) $ 22,685 State and municipal 2,010 — (80) 1,930 Total securities held to maturity $ 27,827 $ — $ (3,212) $ 24,615 |
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 $ — $ — $ 395 $ 394 Due from one to five years 3,175 2,894 365 365 Due in five to ten years 12,382 10,459 1,978 1,962 After ten years 6,526 5,273 1,102 1,066 Residential mortgage-backed 27,404 25,833 24,030 21,132 Collateralized mortgage obligations 54,675 51,373 — — Total $ 104,162 $ 95,832 $ 27,870 $ 24,919 |
Schedule of securities with unrealized and unrecognized losses | June 30, 2023 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 (11,78) $ 15,000 $ (180) $ 31,965 $ (4,289) Collateralized mortgage obligations (16,11) 32,434 (949) 17,178 (2,356) State and municipal (5,19) 2,052 (14) 14,032 (2,230) Corporate bonds (1,11) 429 (71) 4,058 (1,192) U.S. Government and agency (1,0) 1,841 (3) — — Total $ 51,756 $ (1,217) $ 67,233 $ (10,067) December 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 (66,21) $ 16,889 $ (1,253) $ 21,888 $ (3,694) Collateralized mortgage obligations (11,5) 22,133 (797) 8,790 (1,677) State and municipal (15,9) 8,638 (1,267) 7,073 (1,419) Corporate bonds (10,2) 3,963 (787) 852 (148) U.S. Government and agency (1,13) 2,809 (181) 11,746 (1,433) Total $ 54,432 $ (4,285) $ 50,349 $ (8,371) |
Summary of held to maturity bond ratings | Residential State and U.S Government AAA $ 24,030 $ 1,862 $ 1,844 Baa2 — 134 — $ 24,030 1,996 $ 1,844 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Leases | |
Summary of the balances of loans and leases | June 30, December 31, 2023 2022 Real estate: Construction and land $ 45,848 $ 36,257 Farmland 8,806 7,558 1-4 Residential & multi-family 167,946 162,785 Commercial real estate 35,108 33,678 Total Real Estate 257,708 240,278 Agriculture 132 189 Commercial 7,545 7,031 Consumer and other 6,346 5,595 Subtotal 271,731 253,093 Less allowance for credit losses (2,969) (1,755) Loans and leases, net $ 268,762 $ 251,338 |
Schedule of activity in the allowance for loan and lease losses | The following tables set forth information regarding the activity in the allowance for credit losses for the three and six months ended June 30, 2023: June 30, 2023 Real Estate Allowance for credit losses: Construction and Land Farmland 1-4 Residential Commercial real estate Agriculture Commercial Consumer Total Three months ended Beginning balance, April 1, 2023 $ 419 $ 69 $ 1,470 $ 366 $ 79 $ 362 $ 94 $ 2,859 Provision for credit losses 23 — 47 6 (78) 104 10 112 Loans charged-off — — — — — — (3) (3) Recoveries — — — — — — 1 1 Balance, June 30, 2023 $ 442 $ 69 $ 1,517 $ 372 $ 1 $ 466 $ 102 $ 2,969 Six months ended Beginning balance prior to adoption of ASC 326 $ 262 $ 31 $ 812 $ 227 $ 1 $ 359 $ 63 $ 1,755 Impact of adopting ASC 326 on January 1, 2023 92 28 677 133 2 61 $ 32 1,025 Provision for credit losses 88 10 28 12 (2) 46 13 195 Loans charged-off — — — — — — (9) (9) Recoveries — — — — — — 3 3 Balance, June 30, 2023 $ 442 $ 69 $ 1,517 $ 372 $ 1 $ 466 $ 102 $ 2,969 Balance, June 30, 2023 allocated to loans and leases individually evaluated $ 5 $ 4 $ 18 $ 7 $ — $ 384 $ 5 $ 423 Balance, June 30, 2023 allocated to loans and leases collectively evaluated $ 437 $ 65 $ 1,499 $ 365 $ 1 $ 82 $ 97 $ 2,546 Loans and leases receivable: Balance, June 30, 2023 loans and leases individually evaluated $ 364 $ 317 $ 1,356 $ 647 $ — $ 2,799 $ 37 $ 5,520 Balance, June 30, 2023 loans and leases collectively evaluated 45,484 8,489 166,590 34,461 132 4,746 6,309 266,211 Balance, June 30, 2023 $ 45,848 $ 8,806 $ 167,946 $ 35,108 $ 132 $ 7,545 $ 6,346 $ 271,731 The following tables present the balances and activity in the allowance for loan and lease losses as of and for the three and six months ended June 30, 2022 and the year ended December 31, 2022, and the allowance for loan and lease losses and recorded investment in loans receivable based on portfolio segment by impairment method as of December 31, 2022. Allocation of a portion of the allowance to one type of loan does not preclude its availability to absorb losses in other categories. June 30, 2022 Consumer Real Estate Agriculture Commercial and Other Total Allowance for loan and lease losses: Three months ended Beginning balance, April 1, 2022 $ 1,182 $ 1 $ 363 $ 64 $ 1,610 Charge-offs — — — (10) (10) Recoveries — — — 2 2 Provision 26 — 4 7 37 Ending balance, June 30, 2022 $ 1,208 $ 1 $ 367 $ 63 $ 1,639 Six months ended Beginning balance, January 1, 2022 $ 1,178 $ 1 $ 357 $ 56 $ 1,592 Charge-offs — — — (36) (36) Recoveries — — — 6 6 Provision 30 — 10 37 77 Balance, June 30, 2022 $ 1,208 $ 1 $ 367 $ 63 $ 1,639 December 31, 2022 Consumer Allowance for loan and lease losses: Real Estate Agriculture Commercial and Other Total Balance, December 31, 2022 allocated to loans and leases individually evaluated for impairment $ — $ — $ 300 $ — $ 300 Balance, December 31, 2022 allocated to loans and leases collectively evaluated for impairment $ 1,332 $ 1 $ 59 $ 63 $ 1,455 Loans and leases receivable: Balance, December 31, 2022 loans and leases individually evaluated for impairment $ 945 $ — $ 531 $ — $ 1,476 Balance, December 31, 2022 loans and leases collectively evaluated for impairment 239,333 189 6,500 5,595 251,617 Balance, December 31, 2022 $ 240,278 $ 189 $ 7,031 $ 5,595 $ 253,093 |
Schedule of information regarding impaired loans | The following table sets forth information regarding impaired loans as of December 31, 2022: Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With no related allowance Real estate Farmland $ 165 $ 223 $ — $ 179 1‑4 Residential & multi-family 710 765 — 843 Commercial real estate 70 76 — 97 Commercial 142 145 — 90 Consumer and other — — — 17 With a related allowance Commercial 389 417 300 425 Total Real estate Farmland 165 223 — 179 1-4 Residential & multi-family 710 765 — 843 Commercial real estate 70 76 — 670 Commercial 531 562 300 503 Consumer and other — — — 17 $ 1,476 $ 1,626 $ 300 $ 2,212 |
Schedule of nonaccrual status within the loan and lease portfolio | The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days and still accruing as of June 30, 2023: Nonaccrual Nonaccrual Loans Past Real estate Construction and land $ — $ — $ — Farmland 159 — — 1‑4 Residential & multi-family 520 — — Commercial real estate 191 — — Agriculture — — — Commercial 6 367 — Consumer and other 16 — — Total $ 892 $ 367 $ — The following table sets forth information regarding the nonaccrual status within the loan and lease portfolio as of December 31, 2022: Nonaccrual Real estate Construction and land $ — Farmland 165 1‑4 Residential & multi-family 548 Commercial real estate 70 Agriculture — Commercial 398 Consumer and other — Total $ 1,181 |
Schedule of collateral dependent impaired loans | Real Accounts Other Real estate Farmland $ 159 $ — $ — 1-4 Residential & multi-family 675 — — Commercial real estate 191 — — Commercial — 564 — Consumer and other — — 16 Total $ 1,025 $ 564 $ 16 |
Schedule of internal classification and credit risk profile based on payment activity of the loan and lease portfolio | Based on the most recent analysis performed, the risk category of loans by class of loans as of June 30, 2023 and gross chargeoffs for the six months then ended are as follows: Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total Construction and land Risk rating Pass $ 8,713 $ 31,236 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,484 Special mention — 364 — — — — 364 Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — $ 8,713 $ 31,600 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,848 Farmland Risk rating Pass $ 1,588 $ 2,755 $ 1,182 $ 510 $ 867 $ 1,587 $ 8,489 Special mention — — — — — — — Substandard — — — — 158 159 317 Doubtful — — — — — — — Loss — — — — — — — $ 1,588 $ 2,755 $ 1,182 $ 510 $ 1,025 $ 1,746 $ 8,806 1-4 Residential & multi-family Risk rating Pass $ 17,074 $ 28,322 $ 37,145 $ 45,977 $ 10,405 $ 27,666 $ 166,589 Special mention — 138 — — — 7 145 Substandard — — — — 286 926 1,212 Doubtful — — — — — — — Loss — — — — — — — $ 17,074 $ 28,460 $ 37,145 $ 45,977 $ 10,691 $ 28,599 $ 167,946 Commercial real estate Risk rating Pass $ 2,346 $ 5,827 $ 10,291 $ 3,274 $ 6,822 $ 5,900 $ 34,460 Special mention — 456 — — — — 456 Substandard — 126 — — — 66 192 Doubtful — — — — — — — Loss — — — — — — — $ 2,346 $ 6,409 $ 10,291 $ 3,274 $ 6,822 $ 5,966 $ 35,108 Agriculture Risk rating Pass $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Special mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Commercial Risk rating Pass $ 1,622 $ 1,154 $ 916 $ 436 $ 396 $ 221 $ 4,745 Special mention 667 230 101 5 — 200 1,203 Substandard 191 3 1,035 83 285 — 1,597 Doubtful — — — — — — — Loss — — — — — — — $ 2,480 $ 1,387 $ 2,052 $ 524 $ 681 $ 421 $ 7,545 Consumer and other Risk rating Pass $ 2,774 $ 1,851 $ 1,347 $ 177 $ 18 $ 142 $ 6,309 Special mention 3 13 — — — — 16 Substandard 4 11 6 — — — 21 Doubtful — — — — — — — Loss — — — — — — — $ 2,781 $ 1,875 $ 1,353 $ 177 $ 18 $ 142 $ 6,346 Current period gross charge-offs $ 8 $ 1 $ — $ — $ — $ — $ 9 The following tables set forth information regarding the internal classification of the loan and lease portfolio at December 31, 2022: December 31, 2022 Special Pass Mention Substandard Doubtful Loss Total Real estate Construction and land $ 35,608 $ 649 $ — $ — $ — $ 36,257 Farmland 7,231 — 327 — — 7,558 1‑4 Residential & multi-family 160,472 9 2,304 — — 162,785 Commercial real estate 33,482 — 196 — — 33,678 Agriculture 189 — — — — 189 Commercial 6,496 — 146 389 — 7,031 Consumer and other 5,562 — 33 — — 5,595 Total $ 249,040 $ 658 $ 3,006 $ 389 $ — $ 253,093 The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which is subsequently presented. The following table presents the amortized cost of performing and non-performing loans as of June 30, 2023: Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total Construction and land Performing $ 8,713 $ 31,600 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,848 Non-performing — — — — — — — $ 8,713 $ 31,600 $ 2,877 $ 1,064 $ 276 $ 1,318 $ 45,848 Farmland Performing $ 1,588 $ 2,755 $ 1,182 $ 510 $ 1,025 $ 1,587 $ 8,647 Non-performing — — — — — 159 159 $ 1,588 $ 2,755 $ 1,182 $ 510 $ 1,025 $ 1,746 $ 8,806 1-4 Residential & multi-family Performing $ 17,074 $ 28,460 $ 37,145 $ 45,977 $ 10,506 $ 28,109 $ 167,271 Non-performing — — — — 185 490 675 $ 17,074 $ 28,460 $ 37,145 $ 45,977 $ 10,691 $ 28,599 $ 167,946 Commercial real estate Performing $ 2,346 $ 6,283 $ 10,291 $ 3,274 $ 6,822 $ 5,900 $ 34,916 Non-performing — 126 — — — 66 192 $ 2,346 $ 6,409 $ 10,291 $ 3,274 $ 6,822 $ 5,966 $ 35,108 Agriculture Performing $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Non-performing — — — — — — — $ 23 $ 32 $ 77 $ — $ — $ — $ 132 Commercial Performing $ 2,289 $ 1,387 $ 2,046 $ 441 $ 396 $ 421 $ 6,980 Non-performing 191 — 6 83 285 — 565 $ 2,480 $ 1,387 $ 2,052 $ 524 $ 681 $ 421 $ 7,545 Consumer and other Performing $ 2,781 $ 1,864 $ 1,347 $ 177 $ 18 $ 142 $ 6,329 Non-performing — 11 6 — — — 17 $ 2,781 $ 1,875 $ 1,353 $ 177 $ 18 $ 142 $ 6,346 The following table sets forth information regarding the credit risk profile based on payment activity of the loan and lease portfolio at December 31, 2022: December 31, 2022 Performing Non- Total Real estate Construction and land $ 36,257 $ — $ 36,257 Farmland 7,393 165 7,558 1‑4 Residential & multi-family 162,237 548 162,785 Commercial real estate 33,608 70 33,678 Agriculture 189 — 189 Commercial 6,633 398 7,031 Consumer and other 5,595 — 5,595 Total $ 251,912 $ 1,181 $ 253,093 |
Schedule of delinquencies not on nonaccrual within the loan and lease portfolio | The following is an aging analysis for loans as of June 30, 2023 and December 31, 2022: June 30, 2023 30-59 Days 60-89 Days 90 Days Total Current Total Real estate Construction and land $ 1,441 $ 3 $ — $ 1,444 $ 44,404 $ 45,848 Farmland — 30 159 189 8,617 8,806 1‑4 Residential & multi-family — 454 145 599 167,347 167,946 Commercial real estate — — 126 126 34,982 35,108 Agriculture — — — — 132 132 Commercial 80 1,714 — 1,794 5,751 7,545 Consumer and other 16 15 11 42 6,304 6,346 Total $ 1,537 $ 2,216 $ 441 $ 4,194 $ 267,537 $ 271,731 December 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 $ 930 $ — $ 930 $ 35,327 $ 36,257 $ — Farmland 162 — 162 7,396 7,558 — 1‑4 Residential & multi-family 1,215 — 1,215 161,570 162,785 — Commercial real estate 126 — 126 33,552 33,678 — Agriculture — — — 189 189 — Commercial — 1 1 7,030 7,031 1 Consumer and other 10 — 10 5,585 5,595 — Total $ 2,443 $ 1 $ 2,444 $ 250,649 $ 253,093 $ 1 |
Schedule of interest income recognized on impaired financing receivables | The following table presents interest income recognized on loans that are collateral-dependent and individually reviewed for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Real estate 1-4 Residential & multi-family $ 1 $ 2 $ 3 $ 4 Commercial real estate — — — 13 Commercial 1 — 3 — $ 2 $ 2 $ 6 $ 17 |
Off-Balance-Sheet Activities (T
Off-Balance-Sheet Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Off-Balance-Sheet Activities | |
Schedule of financial instruments outstanding whose contract amounts represent credit risk | Contract Amount June 30, 2023 December 31, 2022 Commitments to extend credit $ 44,920 $ 43,327 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information | |
Schedule of supplemental cash flow information | June 30, 2023 2022 Supplemental cash flow information: Cash paid for Interest on deposits $ 2,058 $ 630 Interest on FHLB advances 1,069 287 Other interest 5 5 Income taxes 120 110 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Summary of financial assets and financial liabilities measured at fair value on a recurring basis | June 30, 2023 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 25,833 $ — $ 25,833 Collateralized mortgage obligations — 51,373 — 51,373 State and municipal — 14,139 — 14,139 Corporate bonds — 4,487 — 4,487 Financial derivatives — 536 — 536 Total financial assets $ — $ 96,368 $ — $ 96,368 December 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial assets Available for sale securities Residential mortgage-backed $ — $ 23,758 $ — $ 23,758 Collateralized mortgage obligations — 50,244 — 50,244 State and municipal — 13,781 — 13,781 Corporate bonds — 4,815 — 4,815 U.S. Government and agency — 14,555 — 14,555 Total financial assets $ — $ 107,153 $ — $ 107,153 |
Summary of financial assets and financial liabilities measured at fair value on a nonrecurring basis | June 30, 2023 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Collateral-dependent loans $ — $ — $ 67 $ 67 $ — $ — $ 67 $ 67 December 31, 2022 Level 1 Level 2 Level 3 Total Fair Inputs Inputs Inputs Value Financial assets Impaired loans $ — $ — $ 89 $ 89 $ — $ — $ 89 $ 89 |
Schedule of quantitative information about significant unobservable inputs | Significant Range of Fair Value at Principal Valuation Unobservable Significant Input Instrument June 30, 2023 Technique Inputs Values Collateral-dependent loans $ 67 Appraisal of collateral (1) Appraisal adjustment 10-25 % Significant Range of Fair Value at Principal Valuation Unobservable Significant Input Instrument December 31, 2022 Technique Inputs Values Impaired loans $ 89 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 | June 30, 2023 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 10,050 $ — $ — $ 10,050 $ 10,050 Interest bearing deposits in banks 5,116 — — 5,116 5,116 Securities held to maturity — 24,919 — 24,919 27,870 Loans, net — — 252,634 252,634 268,726 Net investment in direct financing leases — — 36 36 36 Accrued interest receivable 1,446 — — 1,446 1,446 Restricted investments carried at cost — 3,376 — 3,376 3,376 Financial liabilities Deposits — — 302,768 302,768 302,564 FHLB advances — — 69,682 69,682 71,856 Accrued interest payable 600 — — 600 600 December 31, 2022 Level 1 Level 2 Level 3 Total Total Inputs Inputs Inputs Fair Value Carrying Value Financial assets Cash and cash equivalents $ 8,927 $ — $ — $ 8,927 $ 8,927 Interest bearing deposits in banks 2,055 — — 2,055 2,055 Securities held to maturity — 24,615 — 24,615 27,827 Loans, net — — 251,794 251,794 251,274 Net investment in direct financing leases — — 64 64 64 Accrued interest receivable 1,327 — — 1,327 1,327 Restricted investments carried at cost — 2,805 — 2,805 2,805 Mortgage servicing rights — — 7 7 7 Financial liabilities Deposits — — 298,050 298,050 296,077 FHLB advances — — 60,825 60,825 62,494 Accrued interest payable 332 — — 332 332 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Employee Stock Ownership Plan | |
Summary of ESOP shares | June 30, 2023 December 31, 2022 Shares allocated to participants $ 26,062 $ 26,062 Shares committed to be released to participants 6,516 — Shares distributed to retiring participant (336) (220) Unreleased shares 228,043 234,559 Total 260,285 260,401 Fair value of unreleased shares $ 2,768 $ 3,600 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivatives | |
Schedule of key elements of the Company's derivative instruments | June 30, 2023 Notional Amount Fair Value Derivatives designated as hedges: Fair Value Hedges $ 25,000 $ 536 Total $ 25,000 $ 536 |
Schedule of carrying value of the Company's hedged assets in fair value hedges and the associated cumulative basis adjustments included in those carrying values | Carrying Amount of Hedged Assets Amount Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Assets Line items on the Consolidated Statements of Financial Condition in which the hedged items is included: Securities available for sale $ 43,170 $ (550) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | $ 2,969 | $ 2,859 | ||
Retained earnings | $ 32,048 | $ 34,083 | ||
Treasury Stock Common Shares | 50,267 | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | $ 1,025 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | $ 1,025 | |||
Retained earnings | 810 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Unfunded Loan Commitment | ||||
Accounting Policies [Line Items] | ||||
Retained earnings | 200 | |||
Unfunded commitments | 254 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | Accounting Standards Update 2016-13 | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | 2,780 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | Accounting Standards Update 2016-13 | Unfunded Loan Commitment | ||||
Accounting Policies [Line Items] | ||||
Unfunded commitments | $ 254 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of impact of the adoption of ASC 326 (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | $ 2,969 | $ 2,859 | ||
Allowance for loan and lease losses | $ 1,755 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | Accounting Standards Update 2016-13 | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | $ 2,780 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | Accounting Standards Update 2016-13 | Unfunded Loan Commitment | ||||
Accounting Policies [Line Items] | ||||
Unfunded commitments | 254 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | $ 1,025 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||
Accounting Policies [Line Items] | ||||
Allowance for loan and lease losses | 1,025 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Unfunded Loan Commitment | ||||
Accounting Policies [Line Items] | ||||
Unfunded commitments | $ 254 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) | $ 160 | $ 416 | $ (857) | $ 807 |
Weighted average shares outstanding for basic earnings per share : | ||||
Average shares outstanding | 3,363,064 | 3,257,759 | 3,327,647 | 3,257,759 |
Less: average unearned ESOP shares | (231,264) | (242,160) | (234,534) | (244,788) |
Weighted average shares outstanding for basic earnings per share | 3,131,800 | 3,015,599 | 3,093,113 | 3,012,971 |
Weighted average shares outstanding for dilutive earnings per share | 3,131,800 | 3,015,599 | 3,093,113 | 3,012,971 |
Earnings per share - basic | $ 0.05 | $ 0.14 | $ (0.28) | $ 0.27 |
Earnings per share - diluted | $ 0.05 | $ 0.14 | $ (0.28) | $ 0.27 |
Restricted Stock Awards | ||||
Weighted average shares outstanding for basic earnings per share : | ||||
Awards excluded from computation of earnings per share | 115,964 | |||
Options | ||||
Weighted average shares outstanding for basic earnings per share : | ||||
Awards excluded from computation of earnings per share | 289,932 |
Debt Securities - Amortized cos
Debt Securities - Amortized cost and fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Available for Sale | |||||
Amortized Cost | $ 116,013 | ||||
Gross Unrealized Gains | $ 3 | $ 3 | 584 | ||
Gross Unrealized Losses | (8,333) | (8,333) | (9,444) | ||
Available-for-Sale Securities, Fair Value | 107,153 | ||||
Held to Maturity | |||||
Amortized Cost | 27,827 | ||||
Gross Unrealized Losses | (2,951) | (2,951) | (3,212) | ||
Held-to-Maturity Securities, Fair Value | 24,919 | 24,919 | 24,615 | ||
Available for Sale | |||||
Amortized Cost | 104,162 | 104,162 | |||
Estimated Fair Value | 95,832 | 95,832 | |||
Held to Maturity | |||||
Amortized Cost | 27,870 | 27,870 | |||
Available-for-sale Securities sold | 0 | $ 10,822 | 17,027 | $ 10,822 | |
Loss of available for sale securities | $ 29 | 1,687 | $ 29 | ||
Sales of held to maturity securities | 0 | ||||
Collateral Pledged | |||||
Held to Maturity | |||||
Debt securities pledged as collateral | 4,359 | 4,359 | 3,162 | ||
Residential mortgage-backed | |||||
Available for Sale | |||||
Amortized Cost | 25,573 | ||||
Gross Unrealized Losses | (1,571) | (1,571) | (1,815) | ||
Available-for-Sale Securities, Fair Value | 23,758 | ||||
Held to Maturity | |||||
Amortized Cost | 25,817 | ||||
Gross Unrealized Losses | (2,898) | (2,898) | (3,132) | ||
Held-to-Maturity Securities, Fair Value | 21,132 | 21,132 | 22,685 | ||
Available for Sale | |||||
Amortized Cost | 27,404 | 27,404 | |||
Estimated Fair Value | 25,833 | 25,833 | |||
Held to Maturity | |||||
Amortized Cost | 24,030 | 24,030 | |||
Collateralized mortgage obligations | |||||
Available for Sale | |||||
Amortized Cost | 52,134 | ||||
Gross Unrealized Gains | 3 | 3 | 584 | ||
Gross Unrealized Losses | (3,305) | (3,305) | (2,474) | ||
Available-for-Sale Securities, Fair Value | 50,244 | ||||
Available for Sale | |||||
Amortized Cost | 54,675 | 54,675 | |||
Estimated Fair Value | 51,373 | 51,373 | |||
State and municipal | |||||
Available for Sale | |||||
Amortized Cost | 16,387 | ||||
Gross Unrealized Losses | (2,194) | (2,194) | (2,606) | ||
Available-for-Sale Securities, Fair Value | 13,781 | ||||
Held to Maturity | |||||
Amortized Cost | 2,010 | ||||
Gross Unrealized Losses | (50) | (50) | (80) | ||
Held-to-Maturity Securities, Fair Value | 1,946 | 1,946 | 1,930 | ||
Available for Sale | |||||
Amortized Cost | 16,333 | 16,333 | |||
Estimated Fair Value | 14,139 | 14,139 | |||
Held to Maturity | |||||
Amortized Cost | 1,996 | 1,996 | |||
Corporate bonds | |||||
Available for Sale | |||||
Amortized Cost | 5,750 | ||||
Gross Unrealized Losses | (1,263) | (1,263) | (935) | ||
Available-for-Sale Securities, Fair Value | 4,815 | ||||
Available for Sale | |||||
Amortized Cost | 5,750 | 5,750 | |||
Estimated Fair Value | 4,487 | 4,487 | |||
U.S. Government and agency | |||||
Available for Sale | |||||
Amortized Cost | 16,169 | ||||
Gross Unrealized Losses | (1,614) | ||||
Available-for-Sale Securities, Fair Value | $ 14,555 | ||||
Held to Maturity | |||||
Gross Unrealized Losses | (3) | (3) | |||
Held-to-Maturity Securities, Fair Value | 1,841 | 1,841 | |||
Held to Maturity | |||||
Amortized Cost | $ 1,844 | $ 1,844 |
Debt Securities - Contractual m
Debt Securities - Contractual maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for Sale, Amortized Cost | ||
Due from one to five years, Amortized Cost | $ 3,175 | |
Due in five to ten years, Amortized Cost | 12,382 | |
After ten years, Amortized Cost | 6,526 | |
Amortized Cost | 104,162 | |
Available for Sale, Fair Value | ||
Due after one through five years, Fair Value | 2,894 | |
Due after five through ten years, Fair Value | 10,459 | |
Due after ten years, Fair Value | 5,273 | |
Estimated Fair Value | 95,832 | |
Held to Maturity, Amortized Cost | ||
Due in one year or less, Amortized Cost | 395 | |
Due after one through five years, Amortized Cost | 365 | |
Due after five through ten years, Amortized Cost | 1,978 | |
Due after ten years, Amortized Cost | 1,102 | |
Amortized Cost | 27,870 | |
Held to Maturity, Fair Value | ||
Due in one year or less, Fair Value | 394 | |
Due after one through five years, Fair Value | 365 | |
Due after five through ten years, Fair Value | 1,962 | |
Due after ten years, Fair Value | 1,066 | |
Debt Securities, Held-to-maturity, Fair Value, Total | 24,919 | $ 24,615 |
Residential mortgage-backed | ||
Available for Sale, Amortized Cost | ||
Debt securities without single maturity date, Amortized Cost | 27,404 | |
Amortized Cost | 27,404 | |
Available for Sale, Fair Value | ||
Debt securities without single maturity date, Fair Value | 25,833 | |
Estimated Fair Value | 25,833 | |
Held to Maturity, Amortized Cost | ||
Debt securities without single maturity date, Amortized Cost | 24,030 | |
Amortized Cost | 24,030 | |
Held to Maturity, Fair Value | ||
Debt securities without single maturity date, Fair Value | 21,132 | |
Debt Securities, Held-to-maturity, Fair Value, Total | 21,132 | $ 22,685 |
Collateralized mortgage obligations | ||
Available for Sale, Amortized Cost | ||
Debt securities without single maturity date, Amortized Cost | 54,675 | |
Amortized Cost | 54,675 | |
Available for Sale, Fair Value | ||
Debt securities without single maturity date, Fair Value | 51,373 | |
Estimated Fair Value | $ 51,373 |
Debt Securities - Gross Unreali
Debt Securities - Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 51,756 | $ 54,432 |
Gross Unrealized Losses, Less than 12 Months | (1,217) | (4,285) |
Fair Value, 12 Months or More | 67,233 | 50,349 |
Gross Unrealized Losses, 12 Months or More | (10,067) | (8,371) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 15,000 | 16,889 |
Gross Unrealized Losses, Less than 12 Months | (180) | (1,253) |
Fair Value, 12 Months or More | 31,965 | 21,888 |
Gross Unrealized Losses, 12 Months or More | (4,289) | (3,694) |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 32,434 | 22,133 |
Gross Unrealized Losses, Less than 12 Months | (949) | (797) |
Fair Value, 12 Months or More | 17,178 | 8,790 |
Gross Unrealized Losses, 12 Months or More | (2,356) | (1,677) |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 2,052 | 8,638 |
Gross Unrealized Losses, Less than 12 Months | (14) | (1,267) |
Fair Value, 12 Months or More | 14,032 | 7,073 |
Gross Unrealized Losses, 12 Months or More | (2,230) | (1,419) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 429 | 3,963 |
Gross Unrealized Losses, Less than 12 Months | (71) | (787) |
Fair Value, 12 Months or More | 4,058 | 852 |
Gross Unrealized Losses, 12 Months or More | (1,192) | (148) |
U.S. Government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 1,841 | 2,809 |
Gross Unrealized Losses, Less than 12 Months | $ (3) | (181) |
Fair Value, 12 Months or More | 11,746 | |
Gross Unrealized Losses, 12 Months or More | $ (1,433) |
Debt Securities - Summary of bo
Debt Securities - Summary of bond ratings of held to maturity portfolio (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | $ 27,870 |
Residential mortgage-backed | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | 24,030 |
State and municipal | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | 1,996 |
U.S. Government and agency | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | 1,844 |
AAA | Residential mortgage-backed | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | 24,030 |
AAA | State and municipal | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | 1,862 |
AAA | U.S. Government and agency | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | 1,844 |
Baa2 | State and municipal | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost | $ 134 |
Debt Securities (Details)
Debt Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Securities | ||
Other than temporary impairment loss recognized | $ 0 | |
Unrealized Losses, 12 Months or More | $ 10,067 | $ 8,371 |
Percent of principal balance | 12.40% | |
Period of maturity and repayment of principal balance | 5 years |
Loans and Leases - Summary of b
Loans and Leases - Summary of balances of loans and leases (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans and Leases | |||
Loans and leases, gross | $ 253,093 | ||
Less allowance for loan and lease losses | (1,755) | ||
Loans and leases, net | 251,338 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | $ 271,731 | ||
Less allowance for credit losses | (2,969) | $ (2,859) | |
Loans and leases, net | 268,762 | ||
Construction and Land loan | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 45,848 | ||
Farmland loan | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 8,806 | ||
1-4 residential & multi-family | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 167,946 | ||
Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 35,108 | ||
Commercial loan | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 7,545 | ||
Less allowance for credit losses | (466) | (362) | |
Consumer and other loan | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 6,346 | ||
Less allowance for credit losses | (102) | (94) | |
Real estate | |||
Loans and Leases | |||
Loans and leases, gross | 240,278 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 257,708 | ||
Real estate | Construction and Land loan | |||
Loans and Leases | |||
Loans and leases, gross | 36,257 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 45,848 | ||
Less allowance for credit losses | (442) | (419) | |
Real estate | Farmland loan | |||
Loans and Leases | |||
Loans and leases, gross | 7,558 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 8,806 | ||
Less allowance for credit losses | (69) | (69) | |
Real estate | 1-4 residential & multi-family | |||
Loans and Leases | |||
Loans and leases, gross | 162,785 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 167,946 | ||
Less allowance for credit losses | (1,517) | (1,470) | |
Real estate | Commercial real estate | |||
Loans and Leases | |||
Loans and leases, gross | 33,678 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 35,108 | ||
Less allowance for credit losses | (372) | $ (366) | |
Agriculture | |||
Loans and Leases | |||
Loans and leases, gross | 189 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 132 | ||
Commercial | |||
Loans and Leases | |||
Loans and leases, gross | 7,031 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | 7,545 | ||
Consumer and other | |||
Loans and Leases | |||
Loans and leases, gross | $ 5,595 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | |||
Loans receivable, Gross | $ 6,346 |
Loans and Leases - Activity in
Loans and Leases - Activity in the allowance for loan and lease losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Allowance for loan and lease losses: | |||||
Beginning balance | $ 1,610 | $ 1,755 | $ 1,592 | ||
Loans Charged-offs | $ (3) | (10) | (9) | (36) | |
Recoveries | 2 | 6 | |||
Provision for credit losses - loans | 37 | 77 | |||
Provision (Credit) | 93 | 37 | 183 | 77 | |
Ending balance | 1,639 | 1,639 | |||
Ending balance allocated to loans and leases individually evaluated for impairment | 423 | 423 | $ 300 | ||
Ending balance allocated to loans and leases collectively evaluated for impairment | 2,546 | 2,546 | 1,455 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 2,859 | ||||
Credit Loss Expense | 112 | 195 | |||
Charge-offs | (9) | ||||
Recoveries collected | 1 | 3 | |||
Ending balance | 2,969 | 2,969 | |||
Ending balance | 271,731 | 271,731 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 5,520 | 5,520 | 1,476 | ||
Loans and leases collectively evaluated for impairment | 266,211 | 266,211 | 251,617 | ||
Total Loans | 253,093 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,025 | ||||
Agriculture loan | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 1 | ||||
Ending balance allocated to loans and leases collectively evaluated for impairment | 1 | 1 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 79 | ||||
Credit Loss Expense | (78) | (2) | |||
Ending balance | 1 | 1 | |||
Ending balance | 132 | 132 | |||
Loans and leases receivable | |||||
Loans and leases collectively evaluated for impairment | 132 | 132 | |||
Agriculture loan | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 2 | ||||
Commercial loan | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 359 | ||||
Ending balance allocated to loans and leases individually evaluated for impairment | 384 | 384 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 82 | 82 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 362 | ||||
Credit Loss Expense | 104 | 46 | |||
Ending balance | 466 | 466 | |||
Ending balance | 7,545 | 7,545 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 2,799 | 2,799 | |||
Loans and leases collectively evaluated for impairment | 4,746 | 4,746 | |||
Commercial loan | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 61 | ||||
Consumer and other loan | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 63 | ||||
Loans Charged-offs | (3) | (9) | |||
Ending balance allocated to loans and leases individually evaluated for impairment | 5 | 5 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 97 | 97 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 94 | ||||
Credit Loss Expense | 10 | 13 | |||
Recoveries collected | 1 | 3 | |||
Ending balance | 102 | 102 | |||
Ending balance | 6,346 | 6,346 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 37 | 37 | |||
Loans and leases collectively evaluated for impairment | 6,309 | 6,309 | |||
Consumer and other loan | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 32 | ||||
Construction and Land loan | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 45,848 | 45,848 | |||
Commercial real estate | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 35,108 | 35,108 | |||
1-4 residential & multi-family | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 167,946 | 167,946 | |||
Farmland loan | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 8,806 | 8,806 | |||
Real estate | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 1,182 | 1,178 | |||
Provision for credit losses - loans | 26 | 30 | |||
Ending balance | 1,208 | 1,208 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 1,332 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 257,708 | 257,708 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 945 | ||||
Loans and leases collectively evaluated for impairment | 239,333 | ||||
Total Loans | 240,278 | ||||
Real estate | Agriculture loan | |||||
Loans and leases receivable | |||||
Total Loans | 189 | ||||
Real estate | Construction and Land loan | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 262 | ||||
Ending balance allocated to loans and leases individually evaluated for impairment | 5 | 5 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 437 | 437 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 419 | ||||
Credit Loss Expense | 23 | 88 | |||
Ending balance | 442 | 442 | |||
Ending balance | 45,848 | 45,848 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 364 | 364 | |||
Loans and leases collectively evaluated for impairment | 45,484 | 45,484 | |||
Total Loans | 36,257 | ||||
Real estate | Construction and Land loan | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 92 | ||||
Real estate | Commercial real estate | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 227 | ||||
Ending balance allocated to loans and leases individually evaluated for impairment | 7 | 7 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 365 | 365 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 366 | ||||
Credit Loss Expense | 6 | 12 | |||
Ending balance | 372 | 372 | |||
Ending balance | 35,108 | 35,108 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 647 | 647 | |||
Loans and leases collectively evaluated for impairment | 34,461 | 34,461 | |||
Total Loans | 33,678 | ||||
Real estate | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 133 | ||||
Real estate | 1-4 residential & multi-family | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 812 | ||||
Ending balance allocated to loans and leases individually evaluated for impairment | 18 | 18 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 1,499 | 1,499 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,470 | ||||
Credit Loss Expense | 47 | 28 | |||
Ending balance | 1,517 | 1,517 | |||
Ending balance | 167,946 | 167,946 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 1,356 | 1,356 | |||
Loans and leases collectively evaluated for impairment | 166,590 | 166,590 | |||
Total Loans | 162,785 | ||||
Real estate | 1-4 residential & multi-family | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 677 | ||||
Real estate | Farmland loan | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 31 | ||||
Ending balance allocated to loans and leases individually evaluated for impairment | 4 | 4 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 65 | 65 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 69 | ||||
Credit Loss Expense | 10 | ||||
Ending balance | 69 | 69 | |||
Ending balance | 8,806 | 8,806 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 317 | 317 | |||
Loans and leases collectively evaluated for impairment | 8,489 | 8,489 | |||
Total Loans | 7,558 | ||||
Real estate | Farmland loan | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 28 | ||||
Agriculture | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 1 | 1 | |||
Ending balance | 1 | 1 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 1 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 132 | 132 | |||
Loans and leases receivable | |||||
Loans and leases collectively evaluated for impairment | 189 | ||||
Total Loans | 189 | ||||
Commercial | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 363 | 357 | |||
Provision for credit losses - loans | 4 | 10 | |||
Ending balance | 367 | 367 | |||
Ending balance allocated to loans and leases individually evaluated for impairment | 300 | ||||
Ending balance allocated to loans and leases collectively evaluated for impairment | 59 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 7,545 | 7,545 | |||
Loans and leases receivable | |||||
Loans and leases individually evaluated for impairment | 531 | ||||
Loans and leases collectively evaluated for impairment | 6,500 | ||||
Total Loans | 7,031 | ||||
Consumer and other | |||||
Allowance for loan and lease losses: | |||||
Beginning balance | 64 | 56 | |||
Loans Charged-offs | (10) | (36) | |||
Recoveries | 2 | 6 | |||
Provision for credit losses - loans | 7 | 37 | |||
Ending balance | $ 63 | $ 63 | |||
Ending balance allocated to loans and leases collectively evaluated for impairment | 63 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | $ 6,346 | $ 6,346 | |||
Loans and leases receivable | |||||
Loans and leases collectively evaluated for impairment | 5,595 | ||||
Total Loans | $ 5,595 |
Loans and Leases - Nonaccrual s
Loans and Leases - Nonaccrual status within the loan and lease portfolio (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Loans and Leases | |||||
Loans with nonaccrual status | $ 892,000 | $ 892,000 | $ 1,181,000 | ||
Nonaccrual with Reserve | 367,000 | 367,000 | |||
Interest income on nonaccrual loans | 0 | $ 0 | 0 | $ 0 | |
Real estate | Farmland loan | |||||
Loans and Leases | |||||
Loans with nonaccrual status | 159,000 | 159,000 | 165,000 | ||
Real estate | 1-4 residential & multi-family | |||||
Loans and Leases | |||||
Loans with nonaccrual status | 520,000 | 520,000 | 548,000 | ||
Real estate | Commercial real estate | |||||
Loans and Leases | |||||
Loans with nonaccrual status | 191,000 | 191,000 | 70,000 | ||
Commercial | |||||
Loans and Leases | |||||
Loans with nonaccrual status | 6,000 | 6,000 | $ 398,000 | ||
Nonaccrual with Reserve | 367,000 | 367,000 | |||
Consumer and other | |||||
Loans and Leases | |||||
Loans with nonaccrual status | $ 16,000 | $ 16,000 |
Loans and Leases - Summary of a
Loans and Leases - Summary of amortized cost basis of collateral dependent impaired loans (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | $ 268,762 |
Collateral Pledged | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 1,605 |
Commercial real estate | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 1,025 |
Commercial real estate | Real estate | Farmland loan | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 159 |
Commercial real estate | Real estate | 1-4 residential & multi-family | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 675 |
Commercial real estate | Real estate | Commercial real estate | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 191 |
Residential Real Estate | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 564 |
Residential Real Estate | Commercial | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 564 |
Other | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | 16 |
Other | Consumer and other | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable, net | $ 16 |
Loans and Leases - Impaired loa
Loans and Leases - Impaired loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Recorded Investment | |
Recorded Investment, Total | $ 1,476 |
Unpaid Principal Balance | |
Unpaid Principal Balance, Total | 1,626 |
Related Allowance | 300 |
Average Recorded Investment | |
Average Recorded Investment, Total | 2,212 |
Real estate | Farmland loan | |
Recorded Investment | |
With no related allowance | 165 |
Recorded Investment, Total | 165 |
Unpaid Principal Balance | |
With no related allowance | 223 |
Unpaid Principal Balance, Total | 223 |
Average Recorded Investment | |
With no related allowance | 179 |
Average Recorded Investment, Total | 179 |
Real estate | 1-4 residential & multi-family | |
Recorded Investment | |
With no related allowance | 710 |
Recorded Investment, Total | 710 |
Unpaid Principal Balance | |
With no related allowance | 765 |
Unpaid Principal Balance, Total | 765 |
Average Recorded Investment | |
With no related allowance | 843 |
Average Recorded Investment, Total | 843 |
Real estate | Commercial real estate | |
Recorded Investment | |
With no related allowance | 70 |
Recorded Investment, Total | 70 |
Unpaid Principal Balance | |
With no related allowance | 76 |
Unpaid Principal Balance, Total | 76 |
Average Recorded Investment | |
With no related allowance | 97 |
Average Recorded Investment, Total | 670 |
Commercial | |
Recorded Investment | |
With no related allowance | 142 |
With a related allowance | 389 |
Recorded Investment, Total | 531 |
Unpaid Principal Balance | |
With no related allowance | 145 |
With a related allowance | 417 |
Unpaid Principal Balance, Total | 562 |
Related Allowance | 300 |
Average Recorded Investment | |
With no related allowance | 90 |
With a related allowance | 425 |
Average Recorded Investment, Total | 503 |
Consumer and other | |
Average Recorded Investment | |
With no related allowance | 17 |
Average Recorded Investment, Total | $ 17 |
Loans and Leases - Risk Categor
Loans and Leases - Risk Category of Loans and Gross Charge-offs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
Total | $ 271,731 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |
2023 | 8 |
2022 | 1 |
Total | 9 |
Construction and Land loan | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 8,713 |
2022 | 31,600 |
2021 | 2,877 |
2020 | 1,064 |
2019 | 276 |
Prior | 1,318 |
Total | 45,848 |
Construction and Land loan | Performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 8,713 |
2022 | 31,600 |
2021 | 2,877 |
2020 | 1,064 |
2019 | 276 |
Prior | 1,318 |
Total | 45,848 |
Construction and Land loan | Pass | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 8,713 |
2022 | 31,236 |
2021 | 2,877 |
2020 | 1,064 |
2019 | 276 |
Prior | 1,318 |
Total | 45,484 |
Construction and Land loan | Special Mention | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 364 |
Total | 364 |
Farmland loan | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 1,588 |
2022 | 2,755 |
2021 | 1,182 |
2020 | 510 |
2019 | 1,025 |
Prior | 1,746 |
Total | 8,806 |
Farmland loan | Performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 1,588 |
2022 | 2,755 |
2021 | 1,182 |
2020 | 510 |
2019 | 1,025 |
Prior | 1,587 |
Total | 8,647 |
Farmland loan | Non-performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
Prior | 159 |
Total | 159 |
Farmland loan | Pass | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 1,588 |
2022 | 2,755 |
2021 | 1,182 |
2020 | 510 |
2019 | 867 |
Prior | 1,587 |
Total | 8,489 |
Farmland loan | Substandard | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2019 | 158 |
Prior | 159 |
Total | 317 |
1-4 residential & multi-family | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 17,074 |
2022 | 28,460 |
2021 | 37,145 |
2020 | 45,977 |
2019 | 10,691 |
Prior | 28,599 |
Total | 167,946 |
1-4 residential & multi-family | Performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 17,074 |
2022 | 28,460 |
2021 | 37,145 |
2020 | 45,977 |
2019 | 10,506 |
Prior | 28,109 |
Total | 167,271 |
1-4 residential & multi-family | Non-performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2019 | 185 |
Prior | 490 |
Total | 675 |
1-4 residential & multi-family | Pass | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 17,074 |
2022 | 28,322 |
2021 | 37,145 |
2020 | 45,977 |
2019 | 10,405 |
Prior | 27,666 |
Total | 166,589 |
1-4 residential & multi-family | Special Mention | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 138 |
Prior | 7 |
Total | 145 |
1-4 residential & multi-family | Substandard | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2019 | 286 |
Prior | 926 |
Total | 1,212 |
Commercial real estate | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,346 |
2022 | 6,409 |
2021 | 10,291 |
2020 | 3,274 |
2019 | 6,822 |
Prior | 5,966 |
Total | 35,108 |
Commercial real estate | Performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,346 |
2022 | 6,283 |
2021 | 10,291 |
2020 | 3,274 |
2019 | 6,822 |
Prior | 5,900 |
Total | 34,916 |
Commercial real estate | Non-performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 126 |
Prior | 66 |
Total | 192 |
Commercial real estate | Pass | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,346 |
2022 | 5,827 |
2021 | 10,291 |
2020 | 3,274 |
2019 | 6,822 |
Prior | 5,900 |
Total | 34,460 |
Commercial real estate | Special Mention | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 456 |
Total | 456 |
Commercial real estate | Substandard | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 126 |
Prior | 66 |
Total | 192 |
Agriculture loan | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 23 |
2022 | 32 |
2021 | 77 |
Total | 132 |
Agriculture loan | Performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 23 |
2022 | 32 |
2021 | 77 |
Total | 132 |
Agriculture loan | Pass | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 23 |
2022 | 32 |
2021 | 77 |
Total | 132 |
Commercial loan | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,480 |
2022 | 1,387 |
2021 | 2,052 |
2020 | 524 |
2019 | 681 |
Prior | 421 |
Total | 7,545 |
Commercial loan | Performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,289 |
2022 | 1,387 |
2021 | 2,046 |
2020 | 441 |
2019 | 396 |
Prior | 421 |
Total | 6,980 |
Commercial loan | Non-performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 191 |
2021 | 6 |
2020 | 83 |
2019 | 285 |
Total | 565 |
Commercial loan | Pass | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 1,622 |
2022 | 1,154 |
2021 | 916 |
2020 | 436 |
2019 | 396 |
Prior | 221 |
Total | 4,745 |
Commercial loan | Special Mention | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 667 |
2022 | 230 |
2021 | 101 |
2020 | 5 |
Prior | 200 |
Total | 1,203 |
Commercial loan | Substandard | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 191 |
2022 | 3 |
2021 | 1,035 |
2020 | 83 |
2019 | 285 |
Total | 1,597 |
Consumer and other loan | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,781 |
2022 | 1,875 |
2021 | 1,353 |
2020 | 177 |
2019 | 18 |
Prior | 142 |
Total | 6,346 |
Consumer and other loan | Performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,781 |
2022 | 1,864 |
2021 | 1,347 |
2020 | 177 |
2019 | 18 |
Prior | 142 |
Total | 6,329 |
Consumer and other loan | Non-performing | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 11 |
2021 | 6 |
Total | 17 |
Consumer and other loan | Pass | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,774 |
2022 | 1,851 |
2021 | 1,347 |
2020 | 177 |
2019 | 18 |
Prior | 142 |
Total | 6,309 |
Consumer and other loan | Special Mention | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 3 |
2022 | 13 |
Total | 16 |
Consumer and other loan | Substandard | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 4 |
2022 | 11 |
2021 | 6 |
Total | $ 21 |
Loans and Leases - Internal cla
Loans and Leases - Internal classification of the loan and lease portfolio (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Loans and Leases | |
Loans and leases, gross | $ 253,093 |
Performing | |
Loans and Leases | |
Loans and leases, gross | 251,912 |
Non-performing | |
Loans and Leases | |
Loans and leases, gross | 1,181 |
Pass | |
Loans and Leases | |
Loans and leases, gross | 249,040 |
Special Mention | |
Loans and Leases | |
Loans and leases, gross | 658 |
Substandard | |
Loans and Leases | |
Loans and leases, gross | 3,006 |
Doubtful | |
Loans and Leases | |
Loans and leases, gross | 389 |
Real estate | |
Loans and Leases | |
Loans and leases, gross | 240,278 |
Real estate | Construction and Land loan | |
Loans and Leases | |
Loans and leases, gross | 36,257 |
Real estate | Construction and Land loan | Performing | |
Loans and Leases | |
Loans and leases, gross | 36,257 |
Real estate | Construction and Land loan | Pass | |
Loans and Leases | |
Loans and leases, gross | 35,608 |
Real estate | Construction and Land loan | Special Mention | |
Loans and Leases | |
Loans and leases, gross | 649 |
Real estate | Farmland loan | |
Loans and Leases | |
Loans and leases, gross | 7,558 |
Real estate | Farmland loan | Performing | |
Loans and Leases | |
Loans and leases, gross | 7,393 |
Real estate | Farmland loan | Non-performing | |
Loans and Leases | |
Loans and leases, gross | 165 |
Real estate | Farmland loan | Pass | |
Loans and Leases | |
Loans and leases, gross | 7,231 |
Real estate | Farmland loan | Substandard | |
Loans and Leases | |
Loans and leases, gross | 327 |
Real estate | 1-4 residential & multi-family | |
Loans and Leases | |
Loans and leases, gross | 162,785 |
Real estate | 1-4 residential & multi-family | Performing | |
Loans and Leases | |
Loans and leases, gross | 162,237 |
Real estate | 1-4 residential & multi-family | Non-performing | |
Loans and Leases | |
Loans and leases, gross | 548 |
Real estate | 1-4 residential & multi-family | Pass | |
Loans and Leases | |
Loans and leases, gross | 160,472 |
Real estate | 1-4 residential & multi-family | Special Mention | |
Loans and Leases | |
Loans and leases, gross | 9 |
Real estate | 1-4 residential & multi-family | Substandard | |
Loans and Leases | |
Loans and leases, gross | 2,304 |
Real estate | Commercial real estate | |
Loans and Leases | |
Loans and leases, gross | 33,678 |
Real estate | Commercial real estate | Performing | |
Loans and Leases | |
Loans and leases, gross | 33,608 |
Real estate | Commercial real estate | Non-performing | |
Loans and Leases | |
Loans and leases, gross | 70 |
Real estate | Commercial real estate | Pass | |
Loans and Leases | |
Loans and leases, gross | 33,482 |
Real estate | Commercial real estate | Substandard | |
Loans and Leases | |
Loans and leases, gross | 196 |
Real estate | Agriculture loan | |
Loans and Leases | |
Loans and leases, gross | 189 |
Real estate | Agriculture loan | Performing | |
Loans and Leases | |
Loans and leases, gross | 189 |
Agriculture | |
Loans and Leases | |
Loans and leases, gross | 189 |
Agriculture | Pass | |
Loans and Leases | |
Loans and leases, gross | 189 |
Commercial | |
Loans and Leases | |
Loans and leases, gross | 7,031 |
Commercial | Performing | |
Loans and Leases | |
Loans and leases, gross | 6,633 |
Commercial | Non-performing | |
Loans and Leases | |
Loans and leases, gross | 398 |
Commercial | Pass | |
Loans and Leases | |
Loans and leases, gross | 6,496 |
Commercial | Substandard | |
Loans and Leases | |
Loans and leases, gross | 146 |
Commercial | Doubtful | |
Loans and Leases | |
Loans and leases, gross | 389 |
Consumer and other | |
Loans and Leases | |
Loans and leases, gross | 5,595 |
Consumer and other | Performing | |
Loans and Leases | |
Loans and leases, gross | 5,595 |
Consumer and other | Pass | |
Loans and Leases | |
Loans and leases, gross | 5,562 |
Consumer and other | Substandard | |
Loans and Leases | |
Loans and leases, gross | $ 33 |
Loans and Leases - Delinquencie
Loans and Leases - Delinquencies not on nonaccrual (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 253,093 | |
Loans receivable, Gross | $ 271,731 | |
Recorded Investment > 90 Days and Still Accruing | 1 | |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,444 | |
Loans receivable, Gross | 4,194 | |
30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,443 | |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 1,537 | |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 2,216 | |
90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1 | |
Loans receivable, Gross | 441 | |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 250,649 | |
Loans receivable, Gross | 267,537 | |
Construction and Land loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 45,848 | |
Farmland loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 8,806 | |
1-4 residential & multi-family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 167,946 | |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 35,108 | |
Commercial loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 7,545 | |
Consumer and other loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 6,346 | |
Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 257,708 | |
Real estate | Construction and Land loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 36,257 | |
Loans receivable, Gross | 45,848 | |
Real estate | Construction and Land loan | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 930 | |
Loans receivable, Gross | 1,444 | |
Real estate | Construction and Land loan | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 930 | |
Real estate | Construction and Land loan | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 1,441 | |
Real estate | Construction and Land loan | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 3 | |
Real estate | Construction and Land loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 35,327 | |
Loans receivable, Gross | 44,404 | |
Real estate | Farmland loan | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 7,558 | |
Loans receivable, Gross | 8,806 | |
Real estate | Farmland loan | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 162 | |
Loans receivable, Gross | 189 | |
Real estate | Farmland loan | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 162 | |
Real estate | Farmland loan | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 30 | |
Real estate | Farmland loan | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 159 | |
Real estate | Farmland loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 7,396 | |
Loans receivable, Gross | 8,617 | |
Real estate | 1-4 residential & multi-family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 162,785 | |
Loans receivable, Gross | 167,946 | |
Real estate | 1-4 residential & multi-family | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,215 | |
Loans receivable, Gross | 599 | |
Real estate | 1-4 residential & multi-family | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,215 | |
Real estate | 1-4 residential & multi-family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 454 | |
Real estate | 1-4 residential & multi-family | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 145 | |
Real estate | 1-4 residential & multi-family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 161,570 | |
Loans receivable, Gross | 167,347 | |
Real estate | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 33,678 | |
Loans receivable, Gross | 35,108 | |
Real estate | Commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 126 | |
Loans receivable, Gross | 126 | |
Real estate | Commercial real estate | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 126 | |
Real estate | Commercial real estate | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 126 | |
Real estate | Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 33,552 | |
Loans receivable, Gross | 34,982 | |
Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 189 | |
Loans receivable, Gross | 132 | |
Agriculture | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 189 | |
Loans receivable, Gross | 132 | |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 7,031 | |
Loans receivable, Gross | 7,545 | |
Recorded Investment > 90 Days and Still Accruing | 1 | |
Commercial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1 | |
Loans receivable, Gross | 1,794 | |
Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 80 | |
Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 1,714 | |
Commercial | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1 | |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 7,030 | |
Loans receivable, Gross | 5,751 | |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,595 | |
Loans receivable, Gross | 6,346 | |
Consumer and other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 10 | |
Loans receivable, Gross | 42 | |
Consumer and other | 30 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 10 | |
Consumer and other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 16 | |
Consumer and other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 15 | |
Consumer and other | 90 Days and Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, Gross | 11 | |
Consumer and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 5,585 | |
Loans receivable, Gross | $ 6,304 |
Loans and Leases - Interest Inc
Loans and Leases - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Loans and Leases | ||||
Interest income for impaired loans | $ 2 | $ 2 | $ 6 | $ 17 |
Real estate | 1-4 residential & multi-family | ||||
Loans and Leases | ||||
Interest income for impaired loans | 1 | $ 2 | 3 | 4 |
Real estate | Commercial real estate | ||||
Loans and Leases | ||||
Interest income for impaired loans | $ 13 | |||
Commercial | ||||
Loans and Leases | ||||
Interest income for impaired loans | $ 1 | $ 3 |
Loans and Leases - Troubled deb
Loans and Leases - Troubled debt restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 loan | Jun. 30, 2023 USD ($) loan contract | Jun. 30, 2022 loan | Dec. 31, 2022 USD ($) | |
Loans and Leases | |||||
Number of troubled debt restructurings | loan | 0 | 0 | 0 | 0 | |
Number of subsequently defaulted troubled debt restructurings | contract | 0 | ||||
Loan commitments | $ 0 | ||||
Recorded investment of troubled debt restructurings | $ 343 | $ 343 | $ 364 |
Off-Balance-Sheet Activities -
Off-Balance-Sheet Activities - Commitments to extend credit (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
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 | $ 44,920,000 | $ 43,327,000 |
Off-Balance-Sheet Activities _2
Off-Balance-Sheet Activities - Narratives (Details) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
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 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Cash Flow Information | ||
Interest on deposits | $ 2,058 | $ 630 |
Interest on FHLB advances | 1,069 | 287 |
Other interest | 5 | 5 |
Income taxes | $ 120 | $ 110 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Minimum Regulatory Capital Requirements | ||
Community Bank Leverage Ratio | 0.1112 | 0.1231 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | $ 107,153 | |
Available for sale securities | $ 104,162 | |
Financial assets | 89 | |
Residential mortgage-backed | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 23,758 | |
Available for sale securities | 27,404 | |
Collateralized mortgage obligations | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 50,244 | |
Available for sale securities | 54,675 | |
State and municipal | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 13,781 | |
Available for sale securities | 16,333 | |
Corporate bonds | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 4,815 | |
Available for sale securities | 5,750 | |
U.S. Government and agency | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 14,555 | |
Level 3 | ||
Fair Value Measurements | ||
Financial assets | 89 | |
Recurring | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 107,153 | |
Financial assets | 96,368 | |
Recurring | Residential mortgage-backed | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 23,758 | |
Available for sale securities | 25,833 | |
Recurring | Collateralized mortgage obligations | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 50,244 | |
Available for sale securities | 51,373 | |
Recurring | State and municipal | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 13,781 | |
Available for sale securities | 14,139 | |
Recurring | Corporate bonds | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 4,815 | |
Available for sale securities | 4,487 | |
Recurring | U.S. Government and agency | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 14,555 | |
Recurring | Derivative | ||
Fair Value Measurements | ||
Available for sale securities | 536 | |
Recurring | Level 2 | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 107,153 | |
Financial assets | 96,368 | |
Recurring | Level 2 | Residential mortgage-backed | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 23,758 | |
Available for sale securities | 25,833 | |
Recurring | Level 2 | Collateralized mortgage obligations | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 50,244 | |
Available for sale securities | 51,373 | |
Recurring | Level 2 | State and municipal | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 13,781 | |
Available for sale securities | 14,139 | |
Recurring | Level 2 | Corporate bonds | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | 4,815 | |
Available for sale securities | 4,487 | |
Recurring | Level 2 | U.S. Government and agency | ||
Fair Value Measurements | ||
Available-for-Sale Securities, Fair Value | $ 14,555 | |
Recurring | Level 2 | Derivative | ||
Fair Value Measurements | ||
Available for sale securities | $ 536 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial assets and liabilities measured at fair value on a nonrecurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurements | ||
Financial assets | $ 89 | |
Level 3 | ||
Fair Value Measurements | ||
Financial assets | 89 | |
Non-recurring | ||
Fair Value Measurements | ||
Financial assets | $ 67 | |
Non-recurring | Collateral-dependent loans | ||
Fair Value Measurements | ||
Impaired loans | 67 | 89 |
Non-recurring | Level 3 | ||
Fair Value Measurements | ||
Financial assets | 67 | |
Non-recurring | Level 3 | Collateral-dependent loans | ||
Fair Value Measurements | ||
Impaired loans | $ 67 | $ 89 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative information about significant unobservable inputs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Carrying value | $ 1,476 | ||||
Related Allowance | 300 | ||||
Charge to the Provision for Loan and Lease Losses | $ 0 | $ 0 | $ 0 | $ 0 | |
Collateral-dependent loans | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Carrying value | 367 | 367 | 389 | ||
Non-recurring | Collateral-dependent loans | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Impaired loans | 67 | 67 | 89 | ||
Non-recurring | Level 3 | Collateral-dependent loans | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Impaired loans | 67 | 67 | 89 | ||
Related Allowance | $ 300 | $ 300 | $ 300 | ||
Non-recurring | Level 3 | Collateral-dependent loans | Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Asset measurement input | 10 | 10 | 10 | ||
Non-recurring | Level 3 | Collateral-dependent loans | Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Asset measurement input | 25 | 25 | 25 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated fair values, and related carrying amounts, of financial instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financial assets | ||
Securities held to maturity | $ 24,919 | $ 24,615 |
Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 10,050 | 8,927 |
Interest bearing deposits in banks | 5,116 | 2,055 |
Securities held to maturity | 27,870 | 27,827 |
Loans, net | 268,726 | 251,274 |
Net investment in direct financing leases | 36 | 64 |
Accrued interest receivable | 1,446 | 1,327 |
Restricted investments carried at cost | 3,376 | 2,805 |
Mortgage servicing rights | 7 | |
Financial liabilities | ||
Deposits | 302,564 | 296,077 |
FHLB advances | 71,856 | 62,494 |
Accrued interest payable | 600 | 332 |
Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 10,050 | 8,927 |
Interest bearing deposits in banks | 5,116 | 2,055 |
Securities held to maturity | 24,919 | 24,615 |
Loans, net | 252,634 | 251,794 |
Net investment in direct financing leases | 36 | 64 |
Accrued interest receivable | 1,446 | 1,327 |
Restricted investments carried at cost | 3,376 | 2,805 |
Mortgage servicing rights | 7 | |
Financial liabilities | ||
Deposits | 302,768 | 298,050 |
FHLB advances | 69,682 | 60,825 |
Accrued interest payable | 600 | 332 |
Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 10,050 | 8,927 |
Interest bearing deposits in banks | 5,116 | 2,055 |
Accrued interest receivable | 1,446 | 1,327 |
Financial liabilities | ||
Accrued interest payable | 600 | 332 |
Level 2 | ||
Financial assets | ||
Securities held to maturity | 24,919 | 24,615 |
Restricted investments carried at cost | 3,376 | 2,805 |
Level 3 | ||
Financial assets | ||
Loans, net | 252,634 | 251,794 |
Net investment in direct financing leases | 36 | 64 |
Mortgage servicing rights | 7 | |
Financial liabilities | ||
Deposits | 302,768 | 298,050 |
FHLB advances | $ 69,682 | $ 60,825 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 14, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Stock Ownership Plan | |||||
ESOP shares purchased | 260,621 | ||||
Percentage of common stock in ESOP | 8% | ||||
Term of Employee Stock Ownership Plan | 20 years | ||||
ESOP compensation | $ 38 | $ 60 | $ 87 | $ 111 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - ESOP shares (Details) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Employee Stock Ownership Plan | ||
Shares allocated to participants | 26,062 | 26,062 |
Shares committed to be released to participants | 6,516 | |
Shares distributed to retiring participant | (336) | (220) |
Unreleased shares | 228,043 | 234,559 |
Total | 260,285 | 260,401 |
Fair value of unreleased shares | $ 2,768 | $ 3,600 |
Derivatives (Details)
Derivatives (Details) - Derivatives designated as hedges $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivatives | |
Aggregate notional amount of the related hedged items of the AFS securities | $ 25,000 |
Fair Value Hedges | |
Derivatives | |
Aggregate notional amount of the related hedged items of the AFS securities | 25,000 |
Unrealized gain | $ 550 |
Derivatives - Key elements (Det
Derivatives - Key elements (Details) - Derivatives designated as hedges $ in Thousands | Jun. 30, 2023 USD ($) |
Derivatives | |
Notional Amount | $ 25,000 |
Fair Value | 536 |
Fair Value Hedges | |
Derivatives | |
Notional Amount | 25,000 |
Fair Value | $ 536 |
Derivatives - Carrying value of
Derivatives - Carrying value of the Company's hedged assets in fair value hedges and the associated cumulative basis adjustments included in those carrying values (Details) (Imported) $ in Thousands | Jun. 30, 2023 USD ($) |
Derivatives | |
Carrying Amount of Hedged Assets Amount | $ 43,170 |
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Securities available for sale |
Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Assts | $ (550) |