Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Jun. 25, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 333-254209 | |
Entity Registrant Name | PB BANKSHARES, INC | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 86-3947794 | |
Entity Address, Address Line One | 185 E Lincoln Highway | |
Entity Address, City or Town | Coatesville | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19320 | |
City Area Code | 610 | |
Local Phone Number | 384-8282 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Title of 12(b) Security | None | |
Trading Symbol | None | |
Security Exchange Name | NONE | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0001849670 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 25,549 | $ 25,899 |
Federal funds sold | 14,470 | 24,592 |
Interest bearing deposits with banks | 100 | 100 |
Cash and cash equivalents | 40,119 | 50,591 |
Debt securities available-for-sale, at fair value | 28,839 | 25,877 |
Equity securities | 851 | 864 |
Restricted stocks, at cost | 898 | 1,046 |
Loans receivable, net of allowance for loan losses of $2,924 at March 31, 2021 and $2,854 at December 31, 2020 | 198,859 | 186,045 |
Premises and equipment, net | 2,067 | 2,106 |
Deferred income taxes | 764 | 672 |
Accrued interest receivable | 960 | 851 |
Bank owned life insurance | 6,680 | 6,639 |
Other assets | 1,029 | 633 |
Total Assets | 281,066 | 275,324 |
Liabilities | ||
Deposits | 241,085 | 231,416 |
Long-term borrowings | 16,846 | 20,553 |
Accrued expenses and other liabilities | 1,326 | 1,386 |
Total Liabilities | 259,257 | 253,355 |
Commitments and contingent liabilities - see Note 7 | ||
Equity | ||
Retained earnings | 21,931 | 21,880 |
Accumulated other comprehensive (loss) income | (122) | 89 |
Total Equity | 21,809 | 21,969 |
Total Liabilities and Equity | $ 281,066 | $ 275,324 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets | ||||
Allowance for loan losses | $ 2,924 | $ 2,854 | $ 2,201 | $ 1,839 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest and Dividend Income | ||
Loans, including fees | $ 2,144 | $ 2,104 |
Securities | 93 | 156 |
Other | 6 | 32 |
Total Interest and Dividend Income | 2,243 | 2,292 |
Interest Expense | ||
Deposits | 467 | 459 |
Borrowings | 109 | 140 |
Total Interest Expense | 576 | 599 |
Net interest income | 1,667 | 1,693 |
Provision for Loan Losses | 69 | 359 |
Net interest income after provision for loan losses | 1,598 | 1,334 |
Non-Interest Income | ||
Revenue under 606 | 127 | 117 |
(Loss) gain on equity investments | (15) | 13 |
Bank owned life insurance income | 41 | 31 |
Total Non-Interest Income | 153 | 161 |
Non-Interest Expenses | ||
Salaries and employee benefits | 917 | 844 |
Occupancy and equipment | 153 | 134 |
Data and item processing | 243 | 206 |
Advertising and marketing | 11 | 16 |
Professional fees | 86 | 118 |
Directors' fees | 61 | 59 |
FDIC insurance premiums | 47 | 13 |
Other real estate owned, net | (30) | |
Debit card expenses | 37 | 35 |
Other | 141 | 96 |
Total Non-Interest Expenses | 1,696 | 1,491 |
Income before income tax expense (benefit) | 55 | 4 |
Income Tax Expense (Benefit) | 4 | (5) |
Net Income | 51 | 9 |
Service charges on deposit accounts | ||
Non-Interest Income | ||
Revenue under 606 | 44 | 44 |
Debit card income | ||
Non-Interest Income | ||
Revenue under 606 | 51 | 44 |
Other service charges | ||
Non-Interest Income | ||
Revenue under 606 | 19 | 16 |
Other non-interest | ||
Non-Interest Income | ||
Revenue under 606 | $ 13 | $ 13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statements of Comprehensive (Loss) Income | ||
Net Income | $ 51 | $ 9 |
Unrealized gains (losses) on debt securities available-for-sale: | ||
Unrealized holding (losses) gains arising during period | (265) | 412 |
Tax effect | 54 | (85) |
Other comprehensive income (loss) | (211) | 327 |
Total Comprehensive (Loss) Income | $ (160) | $ 336 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2019 | $ 22,295 | $ (92) | $ 22,203 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | 9 | 9 | |
Other comprehensive income (loss) | 327 | 327 | |
Ending Balance at Mar. 31, 2020 | 22,304 | 235 | 22,539 |
Beginning Balance at Dec. 31, 2020 | 21,880 | 89 | 21,969 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | 51 | 51 | |
Other comprehensive income (loss) | (211) | (211) | |
Ending Balance at Mar. 31, 2021 | $ 21,931 | $ (122) | $ 21,809 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 51 | $ 9 |
Adjustments to reconcile change in net income to net cash provided by operating activities: | ||
Provision for loan losses | 69 | 359 |
Depreciation and amortization | 55 | 49 |
Net accretion of securities premiums and discounts | (11) | (22) |
Deferred income tax benefit | (38) | (97) |
Loss (gain) on equity securities | 15 | (13) |
Deferred loan fees, net | (13) | (12) |
Realized gain on sale of other real estate owned | (30) | |
Earnings on bank owned life insurance | (41) | (31) |
Increase in accrued interest receivable and other assets | (505) | (198) |
(Decrease) increase in accrued expenses and other liabilities | (60) | 259 |
Net Cash (Used in) Provided by Operating Activities | (478) | 273 |
Cash Flows from Investing Activities | ||
Purchases | (4,499) | (3,250) |
Maturities, calls, and principal repayments | 1,281 | 5,401 |
Redemption of restricted stocks | 148 | 117 |
Net increase in loans receivable | (12,870) | (9,671) |
Purchases of premises and equipment | (16) | (8) |
Net Cash Used in Investing Activities | (15,956) | (7,411) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 9,669 | 19,526 |
Repayments of borrowings | (3,707) | (2,914) |
Net Cash Provided by Financing Activities | 5,962 | 16,612 |
(Decrease) increase in cash and cash equivalents | (10,472) | 9,474 |
Cash and Cash Equivalents, Beginning of Period | 50,591 | 12,969 |
Cash and Cash Equivalents, End of Period | 40,119 | 22,443 |
Supplementary Cash Flows Information | ||
Interest paid | $ 602 | $ 609 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation Organization and Nature of Operations Prosper Bank (the “Bank”) is a state-chartered savings bank established in 1919. The main office is located in Coatesville, Pennsylvania with three other branches located in New Holland, Oxford, and Georgetown, Pennsylvania. The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans primarily secured by real estate and, to a lesser extent, consumer loans. The Bank competes with other banking and financial institutions in its primary market communities encompassing Chester, Cumberland, Dauphin, Lancaster, and Lebanon Counties in Pennsylvania. The Bank is regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Pennsylvania Department of Banking and Securities (the “PADOB”). Principles of Consolidation The consolidated financial statements also include the accounts of CSB Investments, Inc. (“CSB”), a wholly-owned subsidiary of the Bank located in Wilmington, Delaware. The sole purpose of CSB is to maintain and manage the Bank’s investment portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. Risks and Uncertainties The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Bank’s customers operate and could impair their ability to fulfill their financial obligations to the Bank. The World Health Organization has declared COVID-19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused disruptions in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Bank operates. While there has been no material impact to the Bank’s employees to date, COVID-19 could also potentially create widespread business continuity issues for the Bank. The Bank’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID-19 escalates further or is unsuccessful, the Bank could experience a material adverse effect on its business, financial condition, results of operations and cash flows. While it is not possible to know the full universe or extent that the impact of COVID-19, and resulting measures to curtail its spread, will have on the Bank’s operations, the Bank is disclosing potentially material items of which it is aware. COVID-19 mitigation measures have been lifted in Pennsylvania. The masking order will be lifted on June 28, 2021 or when 70 percent of adults are fully vaccinated, whichever comes first. Fully vaccinated Pennsylvanians may choose not to wear a mask unless they are required by a business or organization. The Bank lifted their mask mandate for fully vaccinated customers and associates on June 9, 2021. The Conversion and Our Organizational Structure On March 8, 2021, the Board of Trustees of the Bank unanimously adopted a Plan of Conversion whereby the Bank will convert from the mutual form of ownership to the stock form of ownership. PB Bankshares, Inc. will become the stock holding company of the Bank and will offer for sale shares of common stock to certain current and former depositors of the Bank and potentially others in a subscription and community offering. The proposed Plan of Conversion is subject to approval by the FDIC, the PADOB, the Federal Reserve Board and by affirmative vote of a least a majority of the votes eligible to be cast either in person or by proxy by depositors of the Bank. December 31, 2019 has been established as the eligibility record date for determining the eligible account holders entitled to receive first priority nontransferable subscription rights to subscribe for PB Bankshares, Inc. common stock. The costs of the conversion and the issuing of the common stock will be deferred and deducted from the sales proceeds of the offering. If the conversion is unsuccessful, all deferred costs will be charged to operations. As of March 31, 2021, $396,000 of conversion costs had been incurred, included in other assets on the consolidated balance sheet. Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2021 are not necessarily indicative of the results for the year ending December 31, 2021. For further information, refer to the audited consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019 contained in the Company’s definitive prospectus dated May 14, 2021 as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(3) on May 24, 2021. The Bank has evaluated subsequent events through the date of issuance of the financial statements included herein. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial condition and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, and estimation of fair values. While management uses available information to recognize estimated losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions and underlying collateral values, if any. In addition, the FDIC and PADOB, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. These agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examinations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements This section provides a summary description of recent ASUs issued by the FASB to the ASC that had or that management expects may have an impact on the financial statements issued upon adoption. The Company is classified as an emerging growth company and has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Effective dates reflect this election. Recently Issued, But Not Yet Effective Accounting Pronouncements During February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. The ASU was initially effective for non-public business entities’ financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. In June 2020, the FASB issued ASU 2020-05. Under ASU 2020-05, private companies may apply the new leases standard for fiscal years beginning after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022. Earlier application is permitted. Due to the Company’s extended transition period election, the amendments are effective for fiscal years beginning after December 15, 2021. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. During June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASU’s 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early application is permitted. Due to the Company’s extended transition period election, the amendments are effective for fiscal years beginning after December 15, 2022. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements and will hire a vendor to assist with expected credit loss projections. During August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: The projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2021. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-14 to have a material impact on its consolidated financial statements. During May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief.” The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The effective date and transition methodology for the amendments in ASU 2019-05 are the same as in ASU 2016-13. The Company is currently assessing the impact that ASU 2019-05 will have on its consolidated financial statements. During November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” This ASU addresses issues raised by stakeholders during the implementation of ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. During December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. During January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. The amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020.The Company does not have any loans and other financial instruments that are directly or indirectly influenced by LIBOR. Recently Adopted Accounting Pronouncements In December 2020, the Consolidated Appropriates Act of 2021 (“CAA”) was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the Paycheck Protection Program (PPP) loan program and treatment of certain loan modifications related to the COVID-19 pandemic. See Note 4 for the further discussion of COVID-19 loans. |
Debt and Equity Securities
Debt and Equity Securities | 3 Months Ended |
Mar. 31, 2021 | |
Debt and Equity Securities | |
Debt and Equity Securities | 3. Debt and Equity Securities The amortized cost, gross unrealized gains and losses, and fair value of securities available-for-sale are as follows (in thousands): Gross Unrealized Gross Unrealized March 31, 2021 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,752 $ 1 $ (183) $ 21,570 Mortgage-backed securities 155 19 — 174 Collateralized mortgage obligations 6,930 165 — 7,095 Total available-for-sale debt securities $ 28,837 $ 185 $ (183) 28,839 Equity securities: Mutual funds (fixed income) $ 851 Gross Unrealized Gross Unrealized December 31, 2020 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 17,254 $ 22 $ (1) $ 17,275 Mortgage-backed securities 164 20 — 184 Collateralized mortgage obligations 8,192 226 — 8,418 Total available-for-sale debt securities $ 25,610 $ 268 $ (1) 25,877 Equity securities: Mutual funds (fixed income) $ 864 The table below indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 20,069 $ (183) $ — $ — $ 20,069 $ (183) Collateralized mortgage obligations 171 — — — 171 — $ 20,240 $ (183) $ — $ — $ 20,240 $ (183) December 31, 2020 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 1,249 $ (1) $ — $ — $ 1,249 $ (1) Collateralized mortgage obligations 6 — — — 6 — $ 1,255 $ (1) $ — $ — $ 1,255 $ (1) As of March 31, 2021 and December 31, 2020, the mortgage-backed securities and collateralized mortgage obligations included in the securities portfolio consist of securities issued by U.S. government sponsored agencies. There were no private label mortgage-backed securities held in the securities portfolio as of March 31, 2021 and December 31, 2020. At March 31, 2021, 45 agency bonds and one collateralized mortgage obligation were in an unrealized loss position for less than 12 months. At December 31, 2020, four agency bonds and one collateralized mortgage obligation were in an unrealized loss position for less than 12 months. In analyzing an issuer’s financial condition, management considers whether downgrades by bond rating agencies have occurred and industry analysts’ reports. As of March 31, 2021, management believes that the estimated fair value of securities disclosed above is primarily dependent upon the movement in market interest rates particularly given the negligible inherent credit risk associated with these securities. Although the fair value will fluctuate as the market interest rates move, management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market yielding investments. As the Bank does not intend to sell these securities and it is more likely than not that the Bank will not be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Bank does not consider these securities to be other-than-temporarily impaired as of March 31, 2021. There were no securities sold during the three months ended March 31, 2021 or March 31, 2020. The amortized cost and fair value of debt securities available-for-sale at March 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands). Available-for-Sale Amortized Cost Fair Value Due less than one year $ — $ — Due one year through five years 21,752 21,570 Due after five years through ten years — — Mortgage-backed securities 155 174 Collateralized mortgage obligations 6,930 7,095 $ 28,837 $ 28,839 At March 31, 2021 and December 31, 2020, the Bank had securities totaling $1,995,000 and $2,004,000, respectively, pledged to secure borrowings. At March 31, 2021 and December 31, 2020, the Bank had securities totaling $6,956,000 and $7,810,000, respectively, pledged primarily for public fund depositors. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2021 | |
Loans Receivable and Allowance for Loan Losses | |
Loans Receivable and Allowance for Loan Losses | 4. Loans Receivable and Allowance for Loan Losses Major classifications of net loans receivable at March 31, 2021 and December 31, 2020 are as follows (in thousands): March 31, December 31, 2021 2020 Real estate: One- to four-family residential $ 104,205 $ 106,413 Commercial 62,153 59,514 Construction 9,427 8,700 Commercial and industrial 23,582 11,801 Consumer loans 3,040 3,056 202,407 189,484 Deferred loan fees, net (624) (585) Allowance for loan losses (2,924) (2,854) $ 198,859 $ 186,045 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended March 31, 2021 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of March 31, 2021 (in thousands): Allowance for Loan Losses Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Beginning Provisions Ending for for Balance Charge-offs Recoveries (Recovery) Balance Impairment Impairment Real Estate: One- to four-family residential $ 1,339 $ — $ — $ (35) $ 1,304 $ — $ 1,304 Commercial 1,033 — — (64) 969 7 962 Construction 121 — — (14) 107 50 57 Commercial and industrial 136 — 1 85 222 — 222 Consumer 37 — — — 37 — 37 Unallocated 188 — — 97 285 — 285 $ 2,854 $ — $ 1 $ 69 $ 2,924 $ 57 $ 2,867 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 104,205 $ 1,535 $ 102,670 Commercial 62,153 1,651 60,502 Construction 9,427 584 8,843 Commercial and industrial 23,582 — 23,582 Consumer 3,040 — 3,040 $ 202,407 $ 3,770 $ 198,637 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended March 31, 2020 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of December 31, 2020 (in thousands): Allowance for Loan Losses Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Beginning Provisions Ending for for Balance Charge-offs Recoveries (Recovery) Balance Impairment Impairment Real Estate: One- to four-family residential $ 935 $ — $ — $ 111 $ 1,046 $ — $ 1,046 Commercial 687 — — 151 838 42 796 Construction 42 — — 7 49 — 49 Commercial and industrial 29 — 3 88 120 — 120 Consumer 13 — — (13) — — — Unallocated 133 — — 15 148 — 148 $ 1,839 $ — $ 3 $ 359 $ 2,201 $ 42 $ 2,159 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 106,413 $ 1,494 $ 104,919 Commercial 59,514 1,671 57,843 Construction 8,700 640 6,731 Commercial and industrial 11,801 — 13,130 Consumer 3,056 — 3,056 $ 189,484 $ 3,805 $ 185,679 The following table summarizes information in regard to impaired loans by loan portfolio class as of March 31, 2021 and for the three months ended March 31, 2021 (in thousands): Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Real estate: One- to four-family residential $ 1,535 $ 1,548 $ — $ 1,515 $ 13 Commercial 1,171 1,171 — 1,177 15 Construction 370 377 — 373 — Commercial and industrial — — — — — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial 480 555 7 484 — Construction 214 250 50 239 — Commercial and industrial — — — — — Total: Real estate: One- to four-family residential $ 1,535 $ 1,548 $ — $ 1,515 $ 13 Commercial 1,651 1,726 7 1,661 15 Construction 584 627 50 612 — Commercial and industrial — — — — — The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2020 and for the period then ended (in thousands): Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Real estate: One- to four-family residential $ 1,494 $ 1,580 $ — $ 1,562 $ 62 Commercial 1,183 1,183 — 1,242 66 Construction 376 383 — 380 12 Commercial and industrial — — — — — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial 488 561 16 508 23 Construction 264 300 24 264 — Commercial and industrial — — — — — Total: Real estate: One- to four-family residential $ 1,494 $ 1,580 $ — $ 1,562 $ 62 Commercial 1,671 1,744 16 1,750 89 Construction 640 683 24 644 12 Commercial and industrial — — — — — The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Real estate: One- to four-family residential $ 1,197 $ 1,600 Commercial 564 575 Construction 584 640 $ 2,345 $ 2,815 The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of March 31, 2021 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 101,213 $ 1,397 $ 1,595 $ — $ 104,205 Commercial 60,618 359 1,176 — 62,153 Construction 8,843 — 584 — 9,427 Commercial and industrial 23,582 — — — 23,582 Consumer 3,040 — — — 3,040 $ 197,296 $ 1,756 $ 3,355 $ — $ 202,407 The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of December 31, 2020 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 103,557 $ 850 $ 2,006 $ — $ 106,413 Commercial 57,957 364 1,193 — 59,514 Construction 8,060 — 640 — 8,700 Commercial and industrial 11,801 — — — 11,801 Consumer 3,056 — — — 3,056 $ 184,431 $ 1,214 $ 3,839 $ — $ 189,484 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of March 31, 2021 (in thousands): Loans Receivable Greater Total >90 Days 30‑59 Days 60‑89 Days Than 90 Total Past Loans and Past Due Past Due Days Due Current Receivables Accruing Real estate: One- to four-family residential $ 819 $ — $ 475 $ 1,294 $ 102,911 $ 104,205 $ — Commercial — — 479 479 61,674 62,153 — Construction 128 — 584 712 8,715 9,427 — Commercial and industrial — — — — 23,582 23,582 Consumer — — — — 3,040 3,040 — $ 947 $ — $ 1,538 $ 2,485 $ 199,922 $ 202,407 $ — The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2020 (in thousands): Loans Receivable Greater Total >90 Days 30‑59 Days 60‑89 Days Than 90 Total Past Loans and Past Due Past Due Days Due Current Receivables Accruing Real estate: One- to four-family residential $ 790 $ 49 $ 491 $ 1,330 $ 105,083 $ 106,413 $ — Commercial — — 488 488 59,026 59,514 — Construction — — 640 640 8,060 8,700 — Commercial and industrial — — — — 11,801 11,801 Consumer — — — — 3,056 3,056 — $ 790 $ 49 $ 1,619 $ 2,458 $ 187,026 $ 189,484 $ — The Bank may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan which is then identified as a troubled debt restructuring (“TDR”). The Bank may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Additionally, the Bank is working with borrowers impacted by COVID-19 and providing modifications to include principal and interest payment deferrals. These modifications are excluded from troubled debt restructuring classification under Section 4013 of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act or under applicable interagency guidance of the federal banking regulators. As of March 31, 2021, we had granted short-term payment deferrals on 87 loans, totaling approximately $24,128,000 in aggregate principal amount, that were otherwise performing. As of March 31, 2021, 82 of these loans, totaling $21,216,000, have returned to normal payment status. The Bank identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. No loans were modified during the three months ended March 31, 2021 and 2020 which met the definition of a troubled debt restructuring. After a loan is determined to be a troubled debt restructuring, we continue to track its performance under the most recent restructured terms. The commercial loan and construction loan troubled debt restructurings completed in 2017 were in default for the three months ended March 31, 2021 and 2020. At March 31, 2021 and 2020, there was no other real estate owned. There was no real estate in process of foreclosure as of March 31, 2021 and December 31, 2020. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Borrowings | |
Borrowings | 5. Borrowings The Bank has an open-ended line of credit (short-term borrowing) of $45,630,000 to obtain advances from the Federal Home Loan Bank (“FHLB”). Interest on the line of credit is charged at the FHLB’s overnight rate of 0.28% and 0.41% at March 31, 2021 and December 31, 2020 respectively. The Bank had $0 outstanding under this line of credit at March 31, 2021 and December 31, 2020. The Bank has an unsecured line of credit with Atlantic Community Bankers Bank (“ACBB”) of up to $3,000,000, which expires on June 30, 2021. Interest on the line of credit is charged at 0.50%. The Bank had $0 outstanding under this line of credit at March 31, 2021 and December 31, 2020. In addition to the unsecured line of credit with ACBB, the Bank also has the ability to borrow up to $2,000,000 through the Federal Reserve Bank’s discount window. Funds obtained through the discount window are secured by the Bank’s U.S. Government and agency obligations. There were no borrowings outstanding through the discount window at March 31, 2021 and December 31, 2020. Borrowings from the FHLB at March 31, 2021 and December 31, 2020 consist of the following (dollars in thousands): March 31, December 31, 2021 2020 Weighted Weighted Maturity Amount Rate Amount Rate 2021 165 1.25 3,872 2.37 2022 8,124 2.11 8,124 2.11 2023 8,557 2.78 8,557 2.78 $ 16,846 2.44 % $ 20,553 2.44 % Maximum borrowing capacity was approximately $92,511,000 and $88,751,000 at March 31, 2021 and December 31, 2020, respectively. The Bank has two letters of credit with FHLB for $4,250,000 at March 31, 2021 and December 31, 2020. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 3 Months Ended |
Mar. 31, 2021 | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 6. Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk The Bank is a party to 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. Those instruments 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 Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Bank had the following off-balance sheet financial instruments whose contract amounts represent credit risk at March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Commitments to grant loans $ 24,417 $ 15,900 Unfunded commitments under lines of credit 8,214 7,612 Outstanding loan commitments represent the unused portion of loan commitments available to individuals and companies as long as there is no violation of any condition established in the contract. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Bank upon extension of credit is based upon management’s credit evaluation of the customer. Various types of collateral may be held, including property and marketable securities. The credit risk involved in these financial instruments is essentially the same as that involved in extending loan facilities to customers. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Contingencies | |
Contingencies | 7. Contingencies In the normal course of business, the Bank is subject to various lawsuits involving matters generally incidental to its business. As of March 31, 2021 management is of the opinion that the ultimate liability, if any, resulting from any pending actions or proceedings will not have a material effect on the consolidated statement of financial condition or of operations of the Bank. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2021 | |
Regulatory Matters | |
Regulatory Matters | 8. Regulatory Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of March 31, 2021, the Bank meets all capital adequacy requirements to which it is subject. Prompt corrective action regulations provide five classifications; well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At March 31, 2021, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. In 2019, the federal banking agencies jointly issued a final rule that provides for an optional, simplified measure of capital adequacy, the community bank leverage ratio framework (“CBLR framework”), for qualifying community banking organizations, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule became effective on January 1, 2020 and was elected by the Bank as of December 31, 2020 and March 31, 2021. In April 2020, the federal banking agencies issued an interim final rule that made temporary changes to the CBLR framework, pursuant to section 4012 of the CARES Act, and a second interim final rule that provided a graduated increase in the community bank leverage ratio requirement after the expiration of the temporary changes implemented pursuant to section 4012 of the CARES Act. The community bank leverage ratio removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than the required minimums will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) 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. Under the final rules the community bank leverage ratio minimum requirement is 8.5% for calendar year 2021 and 9% for calendar year 2022 and beyond. The final rule allows for a two-quarter grace period to improve a ratio that falls below the required level, provided that the bank maintains a leverage ratio of 7.5% for calendar year 2021 and 8% for calendar year 2022 and beyond. The Bank has a two quarter grace period (until the quarter ending September 30, 2021) to increase its CBLR to 8.5%. Under the final rule, an eligible banking organization can opt out of the CBLR framework and revert back to the risk-weighting framework without restriction. As of March 31, 2021, the Bank was a qualifying community banking organization as defined by the federal banking agencies and elected to measure capital adequacy under the CBLR framework. Actual and required capital amounts (in thousands) and ratios are presented below at quarter-end. To be Well Capitalized under Prompt Corrective Action March 31, 2021 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 21,931 7.94 % (1) $ 23,472 8.50 % (1) Within grace period. To be Well Capitalized under Prompt Corrective Action December 31, 2020 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) 21,880 8.15 % 21,471 8.00 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments The Bank groups its assets and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on 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 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is determined at a reasonable point within the range that is most representative of fair value under current market conditions. Management uses its best judgment in estimating the fair value of the Bank’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Bank could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective quarter ends, and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each quarter end. An asset’s or liability’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Bank in estimating fair value disclosures for its financial assets and liabilities: Debt and Equity Securities (Carried at Fair Value) The fair value of debt and equity securities (carried at fair value) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt and equity securities without relying exclusively on quoted market prices for the specific debt and equity securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Impaired Loans (Generally Carried at Fair Value) Impaired loans are those that are accounted for under FASB ASC 310, Accounting by Creditors for Impairment of a Loan Off-Balance Sheet Financial Instruments (Disclosed at Cost) Fair values for the Bank’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The fair values are considered immaterial. For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2021 and December 31, 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs March 31, 2021 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 21,570 $ — $ 21,570 $ — Mortgage-backed securities 174 — 174 — Collateralized mortgage obligations 7,095 — 7,095 — Mutual funds 851 851 — — $ 29,690 $ 851 $ 28,839 $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2020 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 17,275 $ — $ 17,275 $ — Mortgage-backed securities 184 — 184 — Collateralized mortgage obligations 8,418 — 8,418 — Mutual funds 864 864 — — $ 26,741 $ 864 $ 25,877 $ — For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2021 and December 31, 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs March 31, 2021 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 637 $ — $ — $ 637 $ 637 $ — $ — $ 637 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2020 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 712 $ — $ — $ 712 $ 712 $ — $ — $ 712 The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to measure fair value at March 31, 2021 and December 31, 2020 (dollars in thousands): March 31, 2021 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 637 Appraisal of collateral Selling expenses and discounts (1) 9.2% - 67.2% (50.7%) December 31, 2020 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 712 Appraisal of collateral Selling expenses and discounts (1) 9.2% - 38.1% (28.8%) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The carrying amounts and fair values of the Bank’s financial instruments as of the indicated dates are presented in the following table: March 31, 2021 December 31, 2020 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 40,119 $ 40,119 $ 50,591 $ 50,591 Debt securities - available-for-sale 2 28,839 28,839 25,877 25,877 Equity securities 1 851 851 864 864 Restricted stocks 2 898 898 1,046 1,046 Loans, net 3 198,859 201,799 186,045 188,311 Accrued interest receivable 1 960 960 851 851 Financial liabilities: Demand deposits, savings, and money market 1 156,169 156,169 145,517 145,517 Certificates of deposit 2 84,916 86,271 85,899 87,431 Long-Term borrowings 2 16,846 17,440 20,553 21,279 Accrued interest payable 1 203 203 228 228 |
Non-Interest Revenues
Non-Interest Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Non-Interest Revenues | |
Non-Interest Revenues | 10. Non-Interest Revenues Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investments. In addition, certain non-interest income streams such as gains on equity investments, income associated with bank owned life insurance, and loan fees are also not in scope of the new guidance. Topic 606 is applicable to non-interest revenue streams such as service charges on deposit accounts and gains on sale of other real estate owned. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Non-interest revenue streams in-scope of Topic 606 are discussed below. Service Fees on Deposit Accounts Service charges on deposit accounts consist of fees on depository accounts includes NSF fees, miscellaneous deposit-based service fees, monthly maintenance fees for consumer and commercial, and account analysis and related fees (commercial). Service charges and fees charged daily are a result of an event or service being provided on the day with the Bank recognizing the revenue on the same day. The Bank has determined that all performance obligations for daily service charges and fees are met on the same day as the transaction and, therefore, should be recognized as these occur. Monthly maintenance/service charges and fees are charged on the last day of the month (i.e. the same month as charges are incurred) after the system has completed its processing. The Bank has determined that all performance obligations for monthly fees are typically met during the month or the same day as the customer has not met its obligation. As monthly fees are typically incurred by the Customer throughout the month, the fees should be recognized upon completion of the month since the performance obligations have been met for those services. Account analysis service charges and fees are recorded on a monthly basis on the last day of the month. The Bank has determined that all performance obligations for account analysis fees are met during the month. Debit Card Income Debit card income consists of interchange fees from consumer debit card networks and other card related services. Interchange rates are set by the card networks. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur. Gains on Sale of Other Real Estate Owned The sale of other real estate owned is currently recognized on the closing date of sale when all performance obligations have been met, and control of the asset has been transferred to the buyer. Any gains are included in non-interest expenses in the consolidated statements of operations. For the Bank, there are no other material revenue streams within the scope of Topic 606. The following tables present non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, Non-interest income 2021 2020 In scope of Topic 606 Service charges on deposit accounts $ 44 44 Debit card income 51 44 Other service charges 19 16 Other non-interest income 13 13 Non-interest income (in scope for Topic 606) 127 117 Non-interest income (out of scope for Topic 606) 26 44 Total non-interest income $ 153 $ 161 Contract Balances A contract assets balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Bank’s non-interest revenue streams are largely based on transaction activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Bank satisfies its performance obligation and revenue is recognized. The Bank does not typically enter into long-term contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2021 and 2020, the Bank did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize as an expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Bank utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the assets that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic the Bank did not capitalize any contract acquisition cost. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Presentation | |
Organization and Nature of Operations | Organization and Nature of Operations Prosper Bank (the “Bank”) is a state-chartered savings bank established in 1919. The main office is located in Coatesville, Pennsylvania with three other branches located in New Holland, Oxford, and Georgetown, Pennsylvania. The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans primarily secured by real estate and, to a lesser extent, consumer loans. The Bank competes with other banking and financial institutions in its primary market communities encompassing Chester, Cumberland, Dauphin, Lancaster, and Lebanon Counties in Pennsylvania. The Bank is regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Pennsylvania Department of Banking and Securities (the “PADOB”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements also include the accounts of CSB Investments, Inc. (“CSB”), a wholly-owned subsidiary of the Bank located in Wilmington, Delaware. The sole purpose of CSB is to maintain and manage the Bank’s investment portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Risks and Uncertainties | Risks and Uncertainties The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Bank’s customers operate and could impair their ability to fulfill their financial obligations to the Bank. The World Health Organization has declared COVID-19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused disruptions in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Bank operates. While there has been no material impact to the Bank’s employees to date, COVID-19 could also potentially create widespread business continuity issues for the Bank. The Bank’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID-19 escalates further or is unsuccessful, the Bank could experience a material adverse effect on its business, financial condition, results of operations and cash flows. While it is not possible to know the full universe or extent that the impact of COVID-19, and resulting measures to curtail its spread, will have on the Bank’s operations, the Bank is disclosing potentially material items of which it is aware. COVID-19 mitigation measures have been lifted in Pennsylvania. The masking order will be lifted on June 28, 2021 or when 70 percent of adults are fully vaccinated, whichever comes first. Fully vaccinated Pennsylvanians may choose not to wear a mask unless they are required by a business or organization. The Bank lifted their mask mandate for fully vaccinated customers and associates on June 9, 2021. |
The Conversion and Our Organizational Structure | The Conversion and Our Organizational Structure On March 8, 2021, the Board of Trustees of the Bank unanimously adopted a Plan of Conversion whereby the Bank will convert from the mutual form of ownership to the stock form of ownership. PB Bankshares, Inc. will become the stock holding company of the Bank and will offer for sale shares of common stock to certain current and former depositors of the Bank and potentially others in a subscription and community offering. The proposed Plan of Conversion is subject to approval by the FDIC, the PADOB, the Federal Reserve Board and by affirmative vote of a least a majority of the votes eligible to be cast either in person or by proxy by depositors of the Bank. December 31, 2019 has been established as the eligibility record date for determining the eligible account holders entitled to receive first priority nontransferable subscription rights to subscribe for PB Bankshares, Inc. common stock. The costs of the conversion and the issuing of the common stock will be deferred and deducted from the sales proceeds of the offering. If the conversion is unsuccessful, all deferred costs will be charged to operations. As of March 31, 2021, $396,000 of conversion costs had been incurred, included in other assets on the consolidated balance sheet. Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2021 are not necessarily indicative of the results for the year ending December 31, 2021. For further information, refer to the audited consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019 contained in the Company’s definitive prospectus dated May 14, 2021 as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(3) on May 24, 2021. The Bank has evaluated subsequent events through the date of issuance of the financial statements included herein. |
Interim Financial Information | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial condition and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, and estimation of fair values. While management uses available information to recognize estimated losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions and underlying collateral values, if any. In addition, the FDIC and PADOB, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. These agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examinations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt and Equity Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair value securities available-for-sale | The amortized cost, gross unrealized gains and losses, and fair value of securities available-for-sale are as follows (in thousands): Gross Unrealized Gross Unrealized March 31, 2021 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,752 $ 1 $ (183) $ 21,570 Mortgage-backed securities 155 19 — 174 Collateralized mortgage obligations 6,930 165 — 7,095 Total available-for-sale debt securities $ 28,837 $ 185 $ (183) 28,839 Equity securities: Mutual funds (fixed income) $ 851 Gross Unrealized Gross Unrealized December 31, 2020 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 17,254 $ 22 $ (1) $ 17,275 Mortgage-backed securities 164 20 — 184 Collateralized mortgage obligations 8,192 226 — 8,418 Total available-for-sale debt securities $ 25,610 $ 268 $ (1) 25,877 Equity securities: Mutual funds (fixed income) $ 864 |
Schedule of length of time individual securities have been in a continuous unrealized loss position | The table below indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 20,069 $ (183) $ — $ — $ 20,069 $ (183) Collateralized mortgage obligations 171 — — — 171 — $ 20,240 $ (183) $ — $ — $ 20,240 $ (183) December 31, 2020 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 1,249 $ (1) $ — $ — $ 1,249 $ (1) Collateralized mortgage obligations 6 — — — 6 — $ 1,255 $ (1) $ — $ — $ 1,255 $ (1) |
Schedule of debt securities by contractual maturity | Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands). Available-for-Sale Amortized Cost Fair Value Due less than one year $ — $ — Due one year through five years 21,752 21,570 Due after five years through ten years — — Mortgage-backed securities 155 174 Collateralized mortgage obligations 6,930 7,095 $ 28,837 $ 28,839 |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans Receivable and Allowance for Loan Losses | |
Summary of major classifications of net loans receivable | Major classifications of net loans receivable at March 31, 2021 and December 31, 2020 are as follows (in thousands): March 31, December 31, 2021 2020 Real estate: One- to four-family residential $ 104,205 $ 106,413 Commercial 62,153 59,514 Construction 9,427 8,700 Commercial and industrial 23,582 11,801 Consumer loans 3,040 3,056 202,407 189,484 Deferred loan fees, net (624) (585) Allowance for loan losses (2,924) (2,854) $ 198,859 $ 186,045 |
Schedule of activity in the allowance for loan losses by loan class | The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended March 31, 2021 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of March 31, 2021 (in thousands): Allowance for Loan Losses Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Beginning Provisions Ending for for Balance Charge-offs Recoveries (Recovery) Balance Impairment Impairment Real Estate: One- to four-family residential $ 1,339 $ — $ — $ (35) $ 1,304 $ — $ 1,304 Commercial 1,033 — — (64) 969 7 962 Construction 121 — — (14) 107 50 57 Commercial and industrial 136 — 1 85 222 — 222 Consumer 37 — — — 37 — 37 Unallocated 188 — — 97 285 — 285 $ 2,854 $ — $ 1 $ 69 $ 2,924 $ 57 $ 2,867 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 104,205 $ 1,535 $ 102,670 Commercial 62,153 1,651 60,502 Construction 9,427 584 8,843 Commercial and industrial 23,582 — 23,582 Consumer 3,040 — 3,040 $ 202,407 $ 3,770 $ 198,637 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended March 31, 2020 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of December 31, 2020 (in thousands): Allowance for Loan Losses Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Beginning Provisions Ending for for Balance Charge-offs Recoveries (Recovery) Balance Impairment Impairment Real Estate: One- to four-family residential $ 935 $ — $ — $ 111 $ 1,046 $ — $ 1,046 Commercial 687 — — 151 838 42 796 Construction 42 — — 7 49 — 49 Commercial and industrial 29 — 3 88 120 — 120 Consumer 13 — — (13) — — — Unallocated 133 — — 15 148 — 148 $ 1,839 $ — $ 3 $ 359 $ 2,201 $ 42 $ 2,159 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 106,413 $ 1,494 $ 104,919 Commercial 59,514 1,671 57,843 Construction 8,700 640 6,731 Commercial and industrial 11,801 — 13,130 Consumer 3,056 — 3,056 $ 189,484 $ 3,805 $ 185,679 |
Summary of impaired loans by loan portfolio | The following table summarizes information in regard to impaired loans by loan portfolio class as of March 31, 2021 and for the three months ended March 31, 2021 (in thousands): Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Real estate: One- to four-family residential $ 1,535 $ 1,548 $ — $ 1,515 $ 13 Commercial 1,171 1,171 — 1,177 15 Construction 370 377 — 373 — Commercial and industrial — — — — — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial 480 555 7 484 — Construction 214 250 50 239 — Commercial and industrial — — — — — Total: Real estate: One- to four-family residential $ 1,535 $ 1,548 $ — $ 1,515 $ 13 Commercial 1,651 1,726 7 1,661 15 Construction 584 627 50 612 — Commercial and industrial — — — — — The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2020 and for the period then ended (in thousands): Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Real estate: One- to four-family residential $ 1,494 $ 1,580 $ — $ 1,562 $ 62 Commercial 1,183 1,183 — 1,242 66 Construction 376 383 — 380 12 Commercial and industrial — — — — — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial 488 561 16 508 23 Construction 264 300 24 264 — Commercial and industrial — — — — — Total: Real estate: One- to four-family residential $ 1,494 $ 1,580 $ — $ 1,562 $ 62 Commercial 1,671 1,744 16 1,750 89 Construction 640 683 24 644 12 Commercial and industrial — — — — — |
Schedule of nonaccrual loans by classes of the loan portfolio | The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Real estate: One- to four-family residential $ 1,197 $ 1,600 Commercial 564 575 Construction 584 640 $ 2,345 $ 2,815 |
Summary of classes of the loan portfolio by Bank's internal risk rating system | The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of March 31, 2021 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 101,213 $ 1,397 $ 1,595 $ — $ 104,205 Commercial 60,618 359 1,176 — 62,153 Construction 8,843 — 584 — 9,427 Commercial and industrial 23,582 — — — 23,582 Consumer 3,040 — — — 3,040 $ 197,296 $ 1,756 $ 3,355 $ — $ 202,407 The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of December 31, 2020 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 103,557 $ 850 $ 2,006 $ — $ 106,413 Commercial 57,957 364 1,193 — 59,514 Construction 8,060 — 640 — 8,700 Commercial and industrial 11,801 — — — 11,801 Consumer 3,056 — — — 3,056 $ 184,431 $ 1,214 $ 3,839 $ — $ 189,484 |
Summary of classes of the loan portfolio by the past due status | The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of March 31, 2021 (in thousands): Loans Receivable Greater Total >90 Days 30‑59 Days 60‑89 Days Than 90 Total Past Loans and Past Due Past Due Days Due Current Receivables Accruing Real estate: One- to four-family residential $ 819 $ — $ 475 $ 1,294 $ 102,911 $ 104,205 $ — Commercial — — 479 479 61,674 62,153 — Construction 128 — 584 712 8,715 9,427 — Commercial and industrial — — — — 23,582 23,582 Consumer — — — — 3,040 3,040 — $ 947 $ — $ 1,538 $ 2,485 $ 199,922 $ 202,407 $ — The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2020 (in thousands): Loans Receivable Greater Total >90 Days 30‑59 Days 60‑89 Days Than 90 Total Past Loans and Past Due Past Due Days Due Current Receivables Accruing Real estate: One- to four-family residential $ 790 $ 49 $ 491 $ 1,330 $ 105,083 $ 106,413 $ — Commercial — — 488 488 59,026 59,514 — Construction — — 640 640 8,060 8,700 — Commercial and industrial — — — — 11,801 11,801 Consumer — — — — 3,056 3,056 — $ 790 $ 49 $ 1,619 $ 2,458 $ 187,026 $ 189,484 $ — |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Borrowings | |
Schedule of borrowings maturity | Borrowings from the FHLB at March 31, 2021 and December 31, 2020 consist of the following (dollars in thousands): March 31, December 31, 2021 2020 Weighted Weighted Maturity Amount Rate Amount Rate 2021 165 1.25 3,872 2.37 2022 8,124 2.11 8,124 2.11 2023 8,557 2.78 8,557 2.78 $ 16,846 2.44 % $ 20,553 2.44 % |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | |
Schedule of off-balance sheet financial instruments whose contract amounts represent credit risk | The Bank had the following off-balance sheet financial instruments whose contract amounts represent credit risk at March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Commitments to grant loans $ 24,417 $ 15,900 Unfunded commitments under lines of credit 8,214 7,612 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Schedule of assets measured at fair value on a recurring basis | For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2021 and December 31, 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs March 31, 2021 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 21,570 $ — $ 21,570 $ — Mortgage-backed securities 174 — 174 — Collateralized mortgage obligations 7,095 — 7,095 — Mutual funds 851 851 — — $ 29,690 $ 851 $ 28,839 $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2020 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 17,275 $ — $ 17,275 $ — Mortgage-backed securities 184 — 184 — Collateralized mortgage obligations 8,418 — 8,418 — Mutual funds 864 864 — — $ 26,741 $ 864 $ 25,877 $ — |
Schedule of assets measured at fair value on a nonrecurring basis | For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2021 and December 31, 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs March 31, 2021 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 637 $ — $ — $ 637 $ 637 $ — $ — $ 637 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2020 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 712 $ — $ — $ 712 $ 712 $ — $ — $ 712 |
Schedule of quantitative information about assets measured at fair value on a nonrecurring basis | The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to measure fair value at March 31, 2021 and December 31, 2020 (dollars in thousands): March 31, 2021 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 637 Appraisal of collateral Selling expenses and discounts (1) 9.2% - 67.2% (50.7%) December 31, 2020 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 712 Appraisal of collateral Selling expenses and discounts (1) 9.2% - 38.1% (28.8%) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Schedule of carrying amounts and fair values of the Bank's financial instruments | March 31, 2021 December 31, 2020 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 40,119 $ 40,119 $ 50,591 $ 50,591 Debt securities - available-for-sale 2 28,839 28,839 25,877 25,877 Equity securities 1 851 851 864 864 Restricted stocks 2 898 898 1,046 1,046 Loans, net 3 198,859 201,799 186,045 188,311 Accrued interest receivable 1 960 960 851 851 Financial liabilities: Demand deposits, savings, and money market 1 156,169 156,169 145,517 145,517 Certificates of deposit 2 84,916 86,271 85,899 87,431 Long-Term borrowings 2 16,846 17,440 20,553 21,279 Accrued interest payable 1 203 203 228 228 |
Non-Interest Revenues (Tables)
Non-Interest Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Non-Interest Revenues | |
Schedule of non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 | The following tables present non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, Non-interest income 2021 2020 In scope of Topic 606 Service charges on deposit accounts $ 44 44 Debit card income 51 44 Other service charges 19 16 Other non-interest income 13 13 Non-interest income (in scope for Topic 606) 127 117 Non-interest income (out of scope for Topic 606) 26 44 Total non-interest income $ 153 $ 161 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)item | Mar. 08, 2021$ / shares | |
Basis of Presentation | ||
Number of branches | item | 3 | |
Stock price per share | $ / shares | $ 10 | |
Maximum percentage of common stock outstanding available for subscription | 8.00% | |
Deferred conversion costs | $ | $ 396,000 |
Debt and Equity Securities - Sc
Debt and Equity Securities - Schedule of amortized cost, gross unrealized gains and losses and fair value securities available-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 28,837 | $ 25,610 |
Gross Unrealized Gains | 185 | 268 |
Gross Unrealized Losses | (183) | (1) |
Fair Value | 28,839 | 25,877 |
Fair Value | 851 | 864 |
Agency bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 21,752 | 17,254 |
Gross Unrealized Gains | 1 | 22 |
Gross Unrealized Losses | (183) | (1) |
Fair Value | 21,570 | 17,275 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 155 | 164 |
Gross Unrealized Gains | 19 | 20 |
Fair Value | 174 | 184 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 6,930 | 8,192 |
Gross Unrealized Gains | 165 | 226 |
Fair Value | $ 7,095 | $ 8,418 |
Debt and Equity Securities - _2
Debt and Equity Securities - Schedule of length of time individual securities have been in a continuous unrealized loss position (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 months | $ 20,240 | $ 1,255 |
Total Fair Value | 20,240 | 1,255 |
Unrealized Losses | ||
Less than 12 months | (183) | (1) |
Total Unrealized Losses | (183) | (1) |
Agency bonds | ||
Fair Value | ||
Less than 12 months | 20,069 | 1,249 |
Total Fair Value | 20,069 | 1,249 |
Unrealized Losses | ||
Less than 12 months | (183) | (1) |
Total Unrealized Losses | (183) | (1) |
Collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 months | 171 | 6 |
Total Fair Value | $ 171 | $ 6 |
Debt and Equity Securities - Na
Debt and Equity Securities - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)item | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Securities sold | $ 0 | $ 0 | |
Pledged to secure borrowings | 1,995,000 | $ 2,004,000 | |
Pledged primarily for public fund depositors | $ 6,956,000 | $ 7,810,000 | |
Private label mortgage-backed securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of debt securities available for sale | item | 0 | 0 | |
Agency bonds | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of unrealized loss positions | item | 45 | 4 | |
Collateralized mortgage obligations | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of unrealized loss positions | 1 | 1 |
Debt and Equity Securities - _3
Debt and Equity Securities - Schedule of debt securities by contractual maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available for sale securities, Amortized cost | ||
Due one year through five years | $ 21,752 | |
Amortized cost | 28,837 | $ 25,610 |
Available for sale securities, Fair value | ||
Due one year through five years | 21,570 | |
Fair Value | 28,839 | 25,877 |
Mortgage-backed securities | ||
Available for sale securities, Amortized cost | ||
Amortized cost | 155 | |
Amortized cost | 155 | 164 |
Available for sale securities, Fair value | ||
Fair Value | 174 | |
Fair Value | 174 | 184 |
Collateralized mortgage obligations | ||
Available for sale securities, Amortized cost | ||
Amortized cost | 6,930 | |
Amortized cost | 6,930 | 8,192 |
Available for sale securities, Fair value | ||
Fair Value | 7,095 | |
Fair Value | $ 7,095 | $ 8,418 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Major classifications of net loans receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans and leases receivable, gross | $ 202,407 | $ 189,484 | $ 189,484 | |
Deferred loan fees, net | (624) | (585) | ||
Allowance for loan losses | (2,924) | (2,854) | (2,201) | $ (1,839) |
Loans and leases receivable, net | 198,859 | 186,045 | ||
Real estate | One- to four-family residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans and leases receivable, gross | 104,205 | 106,413 | 106,413 | |
Allowance for loan losses | (1,304) | (1,339) | (1,046) | (935) |
Real estate | Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans and leases receivable, gross | 62,153 | 59,514 | 59,514 | |
Allowance for loan losses | (969) | (1,033) | (838) | (687) |
Real estate | Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans and leases receivable, gross | 9,427 | 8,700 | 8,700 | |
Allowance for loan losses | (107) | (121) | (49) | (42) |
Commercial | Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans and leases receivable, gross | 23,582 | 11,801 | 11,801 | |
Allowance for loan losses | (222) | (136) | (120) | (29) |
Consumer loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans and leases receivable, gross | 3,040 | 3,056 | $ 3,056 | |
Allowance for loan losses | $ (37) | $ (37) | $ (13) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Allowance for loan losses by loan class (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 2,854 | $ 1,839 |
Recoveries | 1 | 3 |
Provision for loan losses | 69 | 359 |
Ending balance | 2,924 | 2,201 |
Allowance ending balance: | ||
Individually evaluated for impairment | 57 | 42 |
Collectively evaluated for impairment | 2,867 | 2,159 |
Ending Balance | 202,407 | 189,484 |
Ending Balance: Individually evaluated for impairment | 3,770 | 3,805 |
Ending Balance: Collectively evaluated for impairment | 198,637 | 185,679 |
Real estate | One- to four-family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,339 | 935 |
Provision for loan losses | (35) | 111 |
Ending balance | 1,304 | 1,046 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 1,304 | 1,046 |
Ending Balance | 104,205 | 106,413 |
Ending Balance: Individually evaluated for impairment | 1,535 | 1,494 |
Ending Balance: Collectively evaluated for impairment | 102,670 | 104,919 |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,033 | 687 |
Provision for loan losses | (64) | 151 |
Ending balance | 969 | 838 |
Allowance ending balance: | ||
Individually evaluated for impairment | 7 | 42 |
Collectively evaluated for impairment | 962 | 796 |
Ending Balance | 62,153 | 59,514 |
Ending Balance: Individually evaluated for impairment | 1,651 | 1,671 |
Ending Balance: Collectively evaluated for impairment | 60,502 | 57,843 |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 121 | 42 |
Provision for loan losses | (14) | 7 |
Ending balance | 107 | 49 |
Allowance ending balance: | ||
Individually evaluated for impairment | 50 | |
Collectively evaluated for impairment | 57 | 49 |
Ending Balance | 9,427 | 8,700 |
Ending Balance: Individually evaluated for impairment | 584 | 640 |
Ending Balance: Collectively evaluated for impairment | 8,843 | 6,731 |
Commercial | Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 136 | 29 |
Recoveries | 1 | 3 |
Provision for loan losses | 85 | 88 |
Ending balance | 222 | 120 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 222 | 120 |
Ending Balance | 23,582 | 11,801 |
Ending Balance: Collectively evaluated for impairment | 23,582 | 13,130 |
Consumer loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 37 | 13 |
Provision for loan losses | (13) | |
Ending balance | 37 | |
Allowance ending balance: | ||
Collectively evaluated for impairment | 37 | |
Ending Balance | 3,040 | 3,056 |
Ending Balance: Collectively evaluated for impairment | 3,040 | 3,056 |
Unallocated | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 188 | 133 |
Provision for loan losses | 97 | 15 |
Ending balance | 285 | 148 |
Allowance ending balance: | ||
Collectively evaluated for impairment | $ 285 | $ 148 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Impaired loans by loan portfolio (Details) - Real estate - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
One- to four-family residential | ||
Recorded Investment | ||
With no related allowance recorded, Recorded Investment | $ 1,535 | $ 1,494 |
Total, Recorded Investment | 1,535 | 1,494 |
Unpaid Principal Balance | ||
With no related allowance recorded, Unpaid Principal Balance | 1,548 | 1,580 |
Total, Unpaid Principal Balance | 1,548 | 1,580 |
Average Recorded Investment | ||
With no related allowance recorded, Average Recorded Investment | 1,515 | 1,562 |
Total, Average Recorded Investment | 1,515 | 1,562 |
Interest Income Recognized | ||
With no related allowance recorded, Interest Income Recognized | 13 | 62 |
Total, Interest Income Recognized | 13 | 62 |
Commercial | ||
Recorded Investment | ||
With no related allowance recorded, Recorded Investment | 1,171 | 1,183 |
With an allowance recorded, Recorded Investment | 480 | 488 |
Total, Recorded Investment | 1,651 | 1,671 |
Unpaid Principal Balance | ||
With no related allowance recorded, Unpaid Principal Balance | 1,171 | 1,183 |
With an allowance recorded, Unpaid Principal Balance | 555 | 561 |
Total, Unpaid Principal Balance | 1,726 | 1,744 |
Related Allowance | 7 | 16 |
Average Recorded Investment | ||
With no related allowance recorded, Average Recorded Investment | 1,177 | 1,242 |
With an allowance recorded, Average Recorded Investment | 484 | 508 |
Total, Average Recorded Investment | 1,661 | 1,750 |
Interest Income Recognized | ||
With no related allowance recorded, Interest Income Recognized | 15 | 66 |
With an allowance recorded, Interest Income Recognized | 23 | |
Total, Interest Income Recognized | 15 | 89 |
Construction | ||
Recorded Investment | ||
With no related allowance recorded, Recorded Investment | 370 | 376 |
With an allowance recorded, Recorded Investment | 214 | 264 |
Total, Recorded Investment | 584 | 640 |
Unpaid Principal Balance | ||
With no related allowance recorded, Unpaid Principal Balance | 377 | 383 |
With an allowance recorded, Unpaid Principal Balance | 250 | 300 |
Total, Unpaid Principal Balance | 627 | 683 |
Related Allowance | 50 | 24 |
Average Recorded Investment | ||
With no related allowance recorded, Average Recorded Investment | 373 | 380 |
With an allowance recorded, Average Recorded Investment | 239 | 264 |
Total, Average Recorded Investment | $ 612 | 644 |
Interest Income Recognized | ||
With no related allowance recorded, Interest Income Recognized | 12 | |
Total, Interest Income Recognized | $ 12 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Nonaccrual loans by classes of the loan portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 2,345 | $ 2,815 |
Real estate | One- to four-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 1,197 | 1,600 |
Real estate | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 564 | 575 |
Real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 584 | $ 640 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Classes of the loan portfolio by Bank's internal risk rating system (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | $ 202,407 | $ 189,484 | $ 189,484 |
Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 197,296 | 184,431 | |
Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 1,756 | 1,214 | |
Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 3,355 | 3,839 | |
Real estate | One- to four-family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 104,205 | 106,413 | 106,413 |
Real estate | One- to four-family residential | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 101,213 | 103,557 | |
Real estate | One- to four-family residential | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 1,397 | 850 | |
Real estate | One- to four-family residential | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 1,595 | 2,006 | |
Real estate | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 62,153 | 59,514 | 59,514 |
Real estate | Commercial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 60,618 | 57,957 | |
Real estate | Commercial | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 359 | 364 | |
Real estate | Commercial | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 1,176 | 1,193 | |
Real estate | Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 9,427 | 8,700 | 8,700 |
Real estate | Construction | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 8,843 | 8,060 | |
Real estate | Construction | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 584 | 640 | |
Commercial | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 23,582 | 11,801 | 11,801 |
Commercial | Commercial and industrial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 23,582 | 11,801 | |
Consumer loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | 3,040 | 3,056 | $ 3,056 |
Consumer loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans and leases receivable, gross | $ 3,040 | $ 3,056 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Classes of the loan portfolio by the past due status (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 2,485 | $ 2,458 | |
Current | 199,922 | 187,026 | |
Loans and Leases Receivable, Gross, Total | 202,407 | 189,484 | $ 189,484 |
30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 947 | 790 | |
60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 49 | ||
Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,538 | 1,619 | |
Real estate | One- to four-family residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,294 | 1,330 | |
Current | 102,911 | 105,083 | |
Loans and Leases Receivable, Gross, Total | 104,205 | 106,413 | 106,413 |
Real estate | One- to four-family residential | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 819 | 790 | |
Real estate | One- to four-family residential | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 49 | ||
Real estate | One- to four-family residential | Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 475 | 491 | |
Real estate | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 479 | 488 | |
Current | 61,674 | 59,026 | |
Loans and Leases Receivable, Gross, Total | 62,153 | 59,514 | 59,514 |
Real estate | Commercial | Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 479 | 488 | |
Real estate | Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 712 | 640 | |
Current | 8,715 | 8,060 | |
Loans and Leases Receivable, Gross, Total | 9,427 | 8,700 | 8,700 |
Real estate | Construction | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 128 | ||
Real estate | Construction | Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 584 | 640 | |
Commercial | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 23,582 | 11,801 | |
Loans and Leases Receivable, Gross, Total | 23,582 | 11,801 | 11,801 |
Consumer loans | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 3,040 | 3,056 | |
Loans and Leases Receivable, Gross, Total | $ 3,040 | $ 3,056 | $ 3,056 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
Loans Receivable and Allowance for Loan Losses | |||
Number of loans for which payment deferral was granted | loan | 87 | ||
Principal amount of loans under payment deferral | $ 24,128,000 | ||
Number of loans returned to normal payment status | loan | 82 | ||
Principal amount of loans returned to normal payment status | $ 21,216,000 | ||
Number of loans modified as TDRs | loan | 0 | 0 | |
Other real estate owned that was related to residential real estate | $ 0 | $ 0 | |
Residential real estate in process of foreclosure | $ 0 | $ 0 |
Borrowings (Details)
Borrowings (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 92,511,000 | $ 88,751,000 |
FHLB | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 45,630,000 | |
Interest on line of credit | 0.28% | 0.41% |
Line of credit | $ 0 | $ 0 |
Number of letters of credit | item | 2 | |
Letters of credit outstanding | $ 4,250,000 | 4,250,000 |
Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 2,000,000 | |
Line of credit | 0 | 0 |
Atlantic Community Bankers Bank | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | |
Interest on line of credit | 0.50% | |
Line of credit | $ 0 | $ 0 |
Borrowings - Schedule of borrow
Borrowings - Schedule of borrowings maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Maturities of Long-term Debt [Abstract] | ||
Amount. Total | $ 16,846 | $ 20,553 |
FHLB | ||
Maturities of Long-term Debt [Abstract] | ||
Amount, 2021 | 165 | 3,872 |
Amount, 2022 | 8,124 | 8,124 |
Amount, 2023 | 8,557 | 8,557 |
Amount. Total | $ 16,846 | $ 20,553 |
Weighted Rate, 2021 | 1.25% | 2.37% |
Weighted Rate, 2022 | 2.11% | 2.11% |
Weighted Rate, 2023 | 2.78% | 2.78% |
Weighted Rate | 2.44% | 2.44% |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk - Schedule of Off-Balance Sheet Financial Instruments Whose Contract Amounts Represent Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments to grant loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 24,417 | $ 15,900 |
Unfunded commitments under lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 8,214 | $ 7,612 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Regulatory Matters | |||
Community Bank Leverage Ratio Percentage Required At End Of Grace Period | 8.5 | ||
Tier 1 capital (to average assets) | |||
Actual, Amount | $ 21,931 | $ 21,880 | |
Actual, Ratio | 7.94 | 8.15 | |
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 23,472 | $ 21,471 | |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 8.50 | 8 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of recorded investment in loans | $ 637 | $ 712 |
Valuation allowance on recorded investment in loans | $ 57 | $ 40 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 29,690 | $ 26,741 |
Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 21,570 | 17,275 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 174 | 184 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 7,095 | 8,418 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 851 | 864 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 851 | 864 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 851 | 864 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 28,839 | 25,877 |
Significant Other Observable Inputs (Level 2) | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 21,570 | 17,275 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 174 | 184 |
Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 7,095 | $ 8,418 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets measured at fair value on a nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 637 | $ 712 |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 637 | 712 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 637 | 712 |
Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 637 | $ 712 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Quantitative information about assets measured at fair value on a nonrecurring basis (Details) - Nonrecurring $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 637 | $ 712 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 637 | $ 712 |
Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.092 | 0.092 |
Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.672 | 0.381 |
Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.507 | 0.288 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying amounts and fair values of the Bank's financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Cash and cash equivalents | $ 40,119 | $ 50,591 |
Debt securities available-for-sale, at fair value | 28,839 | 25,877 |
Equity securities | 851 | 864 |
Carrying Amounts | ||
Financial assets: | ||
Cash and cash equivalents | 40,119 | 50,591 |
Debt securities available-for-sale, at fair value | 28,839 | 25,877 |
Equity securities | 851 | 864 |
Restricted stocks | 898 | 1,046 |
Loans, net | 198,859 | 186,045 |
Accrued interest receivable | 960 | 851 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 156,169 | 145,517 |
Certificates of deposit | 84,916 | 85,899 |
Long-Term borrowings | 16,846 | 20,553 |
Accrued interest payable | 203 | 228 |
Estimated Fair Values | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 40,119 | 50,591 |
Equity securities | 851 | 864 |
Accrued interest receivable | 960 | 851 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 156,169 | 145,517 |
Accrued interest payable | 203 | 228 |
Estimated Fair Values | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Debt securities available-for-sale, at fair value | 28,839 | 25,877 |
Restricted stocks | 898 | 1,046 |
Financial liabilities: | ||
Certificates of deposit | 86,271 | 87,431 |
Long-Term borrowings | 17,440 | 21,279 |
Estimated Fair Values | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans, net | $ 201,799 | $ 188,311 |
Non-Interest Revenues (Details)
Non-Interest Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in scope for Topic 606) | $ 127 | $ 117 |
Non-interest income (out of scope for Topic 606) | 26 | 44 |
Total Non-Interest Income | 153 | 161 |
Service charges on deposit accounts | ||
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in scope for Topic 606) | 44 | 44 |
Debit card income | ||
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in scope for Topic 606) | 51 | 44 |
Other service charges | ||
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in scope for Topic 606) | 19 | 16 |
Other non-interest | ||
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in scope for Topic 606) | $ 13 | $ 13 |