Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 24, 2022 | Jun. 30, 2021 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 001-40612 | ||
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 East 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value per Share | ||
Trading Symbol | PBBK | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 2,777,250 | ||
Entity Central Index Key | 0001849670 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | YOUNT, HYDE & BARBOUR, P.C. | ||
Auditor Firm ID | 613 | ||
Auditor Location | Winchester, Virginia |
Consolidated Statements of Bala
Consolidated Statements of Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 15,508 | $ 25,899 |
Federal funds sold | 11,256 | 24,592 |
Interest bearing deposits with banks | 100 | 100 |
Cash and cash equivalents | 26,864 | 50,591 |
Debt securities available-for-sale, at fair value | 25,649 | 25,877 |
Equity securities, at fair value | 849 | 864 |
Restricted stocks, at cost | 884 | 1,046 |
Loans receivable, net of allowance for loan losses of $3,145 at December 31, 2021 and $2,854 at December 31, 2020 | 249,196 | 186,045 |
Premises and equipment, net | 1,949 | 2,106 |
Deferred income taxes, net | 945 | 672 |
Accrued interest receivable | 852 | 851 |
Bank owned life insurance | 7,313 | 6,639 |
Other assets | 428 | 633 |
Total Assets | 314,929 | 275,324 |
Liabilities | ||
Deposits | 251,130 | 231,416 |
Long-term borrowings | 16,681 | 20,553 |
Accrued expenses and other liabilities | 1,284 | 1,386 |
Total Liabilities | 269,095 | 253,355 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred Stock, $0.01 par value, 10,000,000 shares authorized; -0- issued and outstanding at December 31, 2021 and December 31, 2020 | ||
Common Stock, $0.01 par value, 40,000,000 shares authorized; 2,777,250 issued and outstanding at December 31, 2021 and -0- authorized, issued, or outstanding at December 31, 2020 | 28 | |
Additional paid-in capital | 26,176 | |
Retained earnings | 22,665 | 21,880 |
Unearned ESOP shares, 211,071 shares at December 31, 2021 | (2,753) | |
Accumulated other comprehensive (loss) income | (282) | 89 |
Total Stockholders' Equity | 45,834 | 21,969 |
Total Liabilities and Stockholders' Equity | $ 314,929 | $ 275,324 |
Consolidated Statements of Ba_2
Consolidated Statements of Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Statements of Balance Sheet | ||
Allowance for loan losses | $ 3,145 | $ 2,854 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 0 |
Common stock, shares issued | 2,777,250 | 0 |
Common stock, shares outstanding | 2,777,250 | 0 |
Unearned ESOP shares | 211,071 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and Dividend Income | ||
Loans, including fees | $ 9,695 | $ 8,477 |
Securities | 328 | 545 |
Other | 37 | 42 |
Total Interest and Dividend Income | 10,060 | 9,064 |
Interest Expense | ||
Deposits | 1,776 | 1,895 |
Borrowings | 422 | 536 |
Total Interest Expense | 2,198 | 2,431 |
Net interest income | 7,862 | 6,633 |
Provision for Loan Losses | 287 | 760 |
Net interest income after provision for loan losses | 7,575 | 5,873 |
Noninterest Income | ||
Revenue under 606 | 641 | 491 |
Gain on sale of other real estate owned | 30 | |
(Loss) gain on equity investments | (25) | 18 |
Bank owned life insurance income | 174 | 127 |
Total Noninterest Income | 790 | 666 |
Noninterest Expenses | ||
Salaries and employee benefits | 3,994 | 3,469 |
Occupancy and equipment | 568 | 708 |
Data and item processing | 969 | 1,161 |
Advertising and marketing | 91 | 112 |
Professional fees | 484 | 667 |
Directors' fees | 243 | 241 |
FDIC insurance premiums | 194 | 105 |
Debit card expenses | 143 | 136 |
Other | 724 | 495 |
Total Noninterest Expenses | 7,410 | 7,094 |
Income (loss) before income tax expense (benefit) | 955 | (555) |
Income Tax Expense (Benefit) | 170 | (140) |
Net Income (Loss) | $ 785 | (415) |
Earnings per common share - basic | $ 0.31 | |
Earnings per common share - diluted | $ 0.31 | |
Service charges on deposit accounts | ||
Noninterest Income | ||
Revenue under 606 | $ 176 | 183 |
Debit card income | ||
Noninterest Income | ||
Revenue under 606 | 216 | 183 |
Other service charges | ||
Noninterest Income | ||
Revenue under 606 | 89 | 75 |
Other non-interest income | ||
Noninterest Income | ||
Revenue under 606 | $ 160 | $ 50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income (Loss) | ||
Net Income (Loss) | $ 785 | $ (415) |
Unrealized (losses) gains on debt securities available-for-sale: | ||
Unrealized holding (losses) gains arising during period | (625) | 259 |
Tax effect | 132 | (54) |
Total, net of tax | (493) | 205 |
Defined benefit plan: | ||
Net (gain) loss arising during the period | 155 | (31) |
Tax effect | (33) | 7 |
Total, net of tax | 122 | (24) |
Other comprehensive income (loss) | (371) | 181 |
Total Comprehensive Income (Loss) | $ 414 | $ (234) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares. | 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 (loss) | (415) | (415) | ||||
Other comprehensive income (loss) | 181 | 181 | ||||
Ending Balance at Dec. 31, 2020 | 21,880 | 89 | 21,969 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 785 | 785 | ||||
Common stock issued | $ 28 | $ 26,171 | $ 26,199 | |||
Common stock issued (in shares) | 2,777,250 | |||||
Unearned ESOP shares | $ (2,898) | $ (2,898) | ||||
ESOP shares released for allocation | 5 | 145 | 150 | |||
Other comprehensive income (loss) | (371) | (371) | ||||
Ending Balance at Dec. 31, 2021 | $ 28 | $ 26,176 | $ 22,665 | $ (2,753) | $ (282) | $ 45,834 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2021shares | |
Consolidated Statements of Stockholders Equity | |
Common stock issued (in shares) | 2,777,250 |
Unearned ESOP shares | 222,180 |
ESOP shares released for allocation (in shares) | 11,109 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 785,000 | $ (415,000) |
Adjustments to reconcile change in net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 287,000 | 760,000 |
Depreciation and amortization | 172,000 | 205,000 |
(Gain) loss on disposal of premises and equipment | (5,000) | 69,000 |
Net accretion of securities premiums and discounts | (28,000) | (93,000) |
Deferred income tax benefit | (174,000) | (187,000) |
Loss (gain) on equity securities | 25,000 | (18,000) |
Deferred loan fees, net | 93,000 | (36,000) |
Realized gain on sale of other real estate owned | (30,000) | |
Earnings on bank owned life insurance | (174,000) | (127,000) |
ESOP allocation of shares | 145,000 | |
Decrease (increase) in accrued interest receivable and other assets | 204,000 | (728,000) |
Increase in accrued expenses and other liabilities | 58,000 | 806,000 |
Net Cash Provided by Operating Activities | 1,388,000 | 206,000 |
Cash Flows from Investing Activities | ||
Purchases | (4,998,000) | (26,830,000) |
Maturities, calls, and principal repayments | 4,629,000 | 24,167,000 |
Dividends on equity securities reinvested | (10,000) | |
Purchase of bank owned life insurance | (500,000) | (1,800,000) |
Redemption of restricted stocks | 162,000 | 224,000 |
Net increase in loans receivable | (63,531,000) | (15,552,000) |
Purchases of premises and equipment | (10,000) | (692,000) |
Net Cash Used in Investing Activities | (64,258,000) | (20,483,000) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 19,714,000 | 63,377,000 |
Issuance of common stock | 26,199,000 | |
Purchase of ESOP shares | (2,898,000) | |
Repayments of borrowings | (3,872,000) | (5,478,000) |
Net Cash Provided by Financing Activities | 39,143,000 | 57,899,000 |
(Decrease) Increase in cash and cash equivalents | (23,727,000) | 37,622,000 |
Cash and Cash Equivalents, Beginning of Period | 50,591,000 | 12,969,000 |
Cash and Cash Equivalents, End of Period | 26,864,000 | 50,591,000 |
Supplementary Cash Flows Information | ||
Interest paid | 2,624,000 | 2,447,000 |
Income taxes | 120,000 | 165,000 |
Supplementary Non-Cash Flows Information | ||
Unrealized gain (loss) on securities available for sale | (625,000) | 259,000 |
Pension Adjustment | $ 155,000 | $ (31,000) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Significant Accounting Policies | 1. Significant Accounting Policies Organization and Nature of Operations PB Bankshares, Inc., a Maryland Corporation (the “Company”) is the holding company of Presence Bank formerly Prosper Bank (the “Bank”) and was formed in connection with the conversion of the Bank from the mutual to the stock form of organization. On July 14, 2021, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. Shares of the Company began trading on the Nasdaq Capital Market on July 15, 2021. The Company is subject to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Bank”). The 2020 information within has been derived from December 31, 2020 audited financial statements of 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 include accounts of the Company and its wholly-owned subsidiary, the Bank. The Bank also includes 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 its 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 Company’s customers operate and could impair their ability to fulfill their financial obligations to the Company. 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 Company operates. While there has been no material impact to the Company’s employees to date, COVID-19 could also potentially create widespread business continuity issues for the Company. The Company’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 Company 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 Company’s operations, the Company is disclosing potentially material items of which it is aware. Subsequent Events The Company has evaluated subsequent events through March 25, 2022, which is the date these consolidated financial statements were available to be issued. On January 26, 2022, the Company adopted the Presence Bank Executive Deferred Compensation Plan. The purpose of the Deferred Compensation Plan is to provide tax planning opportunities for certain key members of management team by means of a non-qualified deferred compensation plan. 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 Pennsylvania Department of Banking and Securities, 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. Concentration of Credit Risk Most of the Company’s activities are with customers located within Chester, Cumberland, Dauphin, Lancaster, and Lebanon Counties of Pennsylvania. Note 2 of the consolidated financial statements discuss the types of securities that the Company invests in. Note 3 of the consolidated financial statements discuss the types of lending that the Company engages in. The Company does not have any significant loan concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy and real estate values. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, cash due from banks, interest bearing deposits with banks, and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. The Company maintains cash deposits in other depository institutions that occasionally exceed the amount of deposit insurance available. Management periodically assesses the financial condition of these institutions and believes that the risk of any possible credit loss is minimal. Debt Securities Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Securities that management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at their remaining unpaid principal balance, net of unamortized premiums, or unaccreted discounts. At December 31, 2021 and 2020 and for the years then ended, the Company had no investment securities classified as held to maturity. Securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and the yield of alternative investments are classified as available-for-sale. These securities are carried at fair value, which is determined by obtaining quoted market prices or matrix pricing. Unrealized gains and losses are excluded from earnings and are reported in other comprehensive income (loss), net of taxes. Realized gains and losses are recorded on the trade date and are determined using the specific identification method. Premiums are amortized and discounts are accreted using a method which approximates the interest method through call date or maturity of the underlying security. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least an annual basis, and more frequently when economic or market concerns warrant such evaluation. Declines in fair value of securities below their cost that are deemed to be other-than-temporary are separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive loss. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether or not management intends to sell or expects that it is more likely than not that it will be required to sell the security prior to any anticipated recovery in fair value. Equity Securities Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determined fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. Restricted Investments in Bank Stocks Restricted stock, which represents required investments in the common stock of correspondent banks, is carried at cost and consists of the common stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) of $824,000 and $986,000 as of December 31, 2021 and 2020, respectively, and Atlantic Community Bankers Bank (“ACBB”) of $60,000 as of both December 31, 2021 and 2020. Management evaluates the restricted stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. Management believes no impairment charge is necessary related to restricted stocks in 2021 and 2020. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method over the life of the loan. The loans receivable portfolio is segmented into one- to four-family residential real estate, commercial real estate, construction, commercial and industrial, and consumer loans. Descriptions of the Company’s loan classes are as follows: One- to four-family Residential Real Estate Loans: This segment of loans includes loans secured by one- to four-family homes. In addition to traditional residential mortgage loans secured by a first or junior lien on the property, the Company offers home equity lines of credit. Commercial Real Estate Loans: This loan segment consists primarily of loans secured by various types of commercial real estate typically in the Company’s market area, including multi-family residential buildings, office and retail buildings, industrial and warehouse buildings, hotels, and religious facilities. Construction: The Company originates construction loans for the acquisition and development of land and construction of commercial buildings, condominiums, townhomes, and one- to four-family residences. Commercial and Industrial Loans: Commercial loans may be unsecured or secured with non-real estate commercial property. The Company makes commercial loans to businesses located within its market area and also to businesses outside of its market area through loan participations with other financial institutions. Consumer Loans: Consumer loans include all loans made to individuals for consumer or personal purposes. They include secured loans, unsecured loans, and overdraft lines of credit. The Company makes consumer loans to individuals located within its market area and occasionally to individuals outside of its market. For all classes of loans receivable, the accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. Allowance for Loan Losses The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the statement of financial condition date and is recorded as a reduction to loans. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The evaluation also considers the following risk characteristics of each loan portfolio segment: ● One- to four-family residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. ● Construction loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget, and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. ● Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. ● Consumer loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, if any. These loans are typically either unsecured or secured by rapidly depreciating assets. They are also likely to be immediately and adversely affected by job loss, divorce, illness, personal bankruptcy, or other changes in circumstances. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including construction and commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential mortgages and consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications. 5. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 6. Effect of external factors, such as competition and legal and regulatory requirements. 7. Experience, ability, and depth of lending management and other relevant staff. 8. Quality of loan review and Board of Director oversight. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. A large portion of the Company’s loan assets are loans to business owners of many types. The Company makes commercial loans for real estate development and other business purposes required by the customer base. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. The assets financed through commercial loans are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversions of assets. Commercial loans include long-term loans financing commercial properties. Repayment of this kind of loan is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial loans typically require a loan to value ratio of not greater than 80% and vary in terms. Residential mortgages are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower and the loan to value ratio. Residential mortgages have amortizations up to 30 years. Other types of consumer loans include installment loans and overdraft lines of credit. The majority of these loans are unsecured. An unallocated component of the allowance for loan losses is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral net of estimated selling costs if the loan is collateral dependent. A specific reserve is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral net of estimated selling costs. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not typically separately identify individual residential mortgage loans and consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement, are related to a commercial lending relationship, or are deemed not to be a smaller balance loan. Loans whose terms are modified are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans criticized as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process encompassing both internal and external oversight. Generally, residential mortgage and consumer loans are included in the pass category unless on nonaccrual status at which time they are classified as substandard. The Company’s loan officers are responsible for the timely and accurate risk rating of the commercial and construction loans in their portfolio at origination and on an ongoing basis. An ongoing review of commercial loans is performed by the loan department. The Company also utilizes an external loan review consultant to conduct a loan review of its portfolio each year. The external consultant generally reviews all loan relationships exceeding a specific threshold. In addition, Federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is charged to operations on a straight-line basis over the estimated useful lives of the assets or, in the case of leasehold improvements, the lease period, if shorter. Gains or losses on dispositions are reflected in current operations. Maintenance and repairs are charged to expense as incurred. Other Real Estate Owned (OREO) Real estate properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure establishing a new cost basis. Any write-downs based on the asset’s fair value less cost to sell at date of foreclosure are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of its carrying amount or fair value less cost to sell. Revenue and expenses from operations and write-downs are included in other non-interest expense on the consolidated statements of operations. There were no write-downs recorded during 2021 or 2020. Gains and losses on the sale of OREO are included in non-interest expense. Bank Owned Life Insurance The Company has invested in bank owned life insurance (“BOLI”) covering certain employees. The Company is the owner and beneficiary of these policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in non-interest income on the consolidated statements of operations. The policies can be liquidated, if necessary, with tax costs associated. However, the Company intends to hold these policies and, accordingly, the Company has not provided for deferred income taxes on the earnings from the increase in cash surrender value. Income Taxes The Company accounts for income taxes in accordance with the income tax accounting guidance set forth in FASB ASC Topic 740, Income Taxes The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and net operating loss carryforwards, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense (benefit) results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Company files a consolidated U.S. federal income tax return with its subsidiary. As of December 31, 2021, the Company had no material unrecognized tax benefits or accrued interest and penalties. It is the Company’s policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Federal and state tax returns for the years 2018 through 2020 were open for examination as of December 31, 2021. Transfers of Financial Assets Transfers of financial assets, including loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the consol |
Debt and Equity Securities
Debt and Equity Securities | 12 Months Ended |
Dec. 31, 2021 | |
Debt and Equity Securities | |
Debt and Equity Securities | 2. 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 December 31, 2021 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,241 $ — $ (421) $ 20,820 Mortgage-backed securities 129 15 — 144 Collateralized mortgage obligations 4,637 54 (6) 4,685 Total available-for-sale debt securities $ 26,007 $ 69 $ (427) 25,649 Equity securities: Mutual funds (fixed income) $ 849 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 December 31, 2021 and 2020 (in thousands): December 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 $ 19,113 $ (379) $ 1,707 $ (42) $ 20,820 $ (421) Collateralized mortgage obligations 879 (6) — — 879 (6) $ 19,992 $ (385) $ 1,707 $ (42) $ 21,699 $ (427) 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 December 31, 2021 and 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 December 31, 2021 and 2020. At December 31, 2021, 47 agency bonds had an unrealized loss with depreciation of 2.06% from the Company’s cost basis and five collateralized mortgage obligation had an unrealized loss with depreciation of 0.69% from the Company’s cost basis. At December 31, 2020, four agency bonds had an unrealized loss with depreciation of 0.05% from the Company’s cost basis and one collateralized mortgage obligation had an unrealized loss with depreciation of 0.02% from the Company’s cost basis. In analyzing an issuer’s financial condition, management considers whether downgrades by bond rating agencies have occurred and industry analysts’ reports. As of December 31, 2021 and 2020, 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 Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be other-than-temporarily impaired as of December 31, 2021 and 2020. There were no securities sold during 2021 and 2020. The amortized cost and fair value of debt securities available-for-sale at December 31, 2021, by contractual maturity with yields, 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 (dollars in thousands). Available-for-Sale Amortized Cost Fair Value Yield Due less than one year $ — $ — — % Due one year through five years 21,241 20,820 0.62 Due after five years through ten years — — — Mortgage-backed securities 129 144 4.26 Collateralized mortgage obligations 4,637 4,685 2.02 $ 26,007 $ 25,649 0.89 % At December 31, 2021 and 2020, the Company had securities totaling $1,965,000 and $2,004,000, respectively, pledged to secure borrowings. At December 31, 2021 and 2020, the Company had securities totaling $13,028,000 and $7,810,000, respectively, pledged primarily for public fund depositors. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2021 | |
Loans Receivable and Allowance for Loan Losses | |
Loans Receivable and Allowance for Loan Losses | 3. Loans Receivable and Allowance for Loan Losses Major classifications of net loans receivable at December 31, 2021 and 2020 are as follows (in thousands): December 31, December 31, 2021 2020 Real estate: One-to four-family residential $ 106,024 $ 106,413 Commercial 110,729 59,514 Construction 13,751 8,700 Commercial and industrial 19,417 11,801 Consumer loans 3,038 3,056 252,959 189,484 Deferred loan fees, net (618) (585) Allowance for loan losses (3,145) (2,854) $ 249,196 $ 186,045 The following table shows the loan maturities at December 31, 2021 (in thousands), the table presents contractual maturities and does not reflect repricing or the effect of prepayments: One- to Four- Family Residential Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Total Amounts due in: One year or less $ 2,253 $ 1,763 $ 2,774 $ 1,900 $ 13 $ 8,703 More than one to five years 2,414 6,541 4,276 5,574 25 18,830 More than five to 15 years 48,914 65,596 4,824 9,874 — 129,208 More than 15 years 52,443 36,829 1,877 2,069 3,000 96,218 Total $ 106,024 $ 110,729 $ 13,751 $ 19,417 $ 3,038 $ 252,959 The following table sets forth our fixed and adjustable-rate loans at December 31, 2021 that are contractually due after December 30, 2022 (in thousands): Due After December 31, 2022 Fixed Adjustable Total Real estate: One- to four-family residential $ 99,145 $ 4,626 $ 103,771 Commercial 93,737 15,229 108,966 Construction 6,521 4,456 10,977 Commercial and industrial 13,006 4,511 17,517 Consumer 25 3,000 3,025 Total loans $ 212,434 $ 31,822 $ 244,256 Loans to officers and directors, made on the same terms as loans to others, and the related activity is as follows (in thousands): December 31, December 31, 2021 2020 Balance, beginning of year $ 107 $ 439 Additions 200 — Repayments (16) (257) Reclassification — (75) Balance, end of year $ 291 $ 107 The following table summarizes the activity in the allowance for loan losses by loan class for the year ended December 31, 2021 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of December 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 $ — $ — $ (122) $ 1,217 $ — $ 1,217 Commercial 1,033 — — 324 1,357 — 1,357 Construction 121 — — 73 194 50 144 Commercial and industrial 136 — 4 51 191 — 191 Consumer 37 — — (4) 33 — 33 Unallocated 188 — — (35) 153 — 153 $ 2,854 $ — $ 4 $ 287 $ 3,145 $ 50 $ 3,095 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 106,024 $ 647 $ 105,377 Commercial 110,729 1,589 109,140 Construction 13,751 541 13,210 Commercial and industrial 19,417 — 19,417 Consumer 3,038 — 3,038 $ 252,959 $ 2,777 $ 250,182 The following table summarizes the activity in the allowance for loan losses by loan class for the year ended December 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 $ (14) $ — $ 418 $ 1,339 $ — $ 1,339 Commercial 687 — 264 82 1,033 16 1,017 Construction 42 — — 79 121 24 97 Commercial and industrial 29 — 4 103 136 — 136 Consumer 13 (4) 5 23 37 — 37 Unallocated 133 — — 55 188 — 188 $ 1,839 $ (18) $ 273 $ 760 $ 2,854 $ 40 $ 2,814 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 December 31, 2021 and for the year 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 $ 647 $ 651 $ — $ 694 $ 26 Commercial 1,589 1,675 — 1,630 59 Construction 352 361 — 364 — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial — — — — — Construction 189 225 50 226 — Total: Real estate: One- to four-family residential $ 647 $ 651 $ — $ 694 $ 26 Commercial 1,589 1,675 — 1,630 59 Construction 541 586 50 590 — The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2020 and for the year 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 With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial 488 561 16 508 23 Construction 264 300 24 264 — 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 The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2021 and 2020 (in thousands): 2021 2020 Real estate: One- to four-family residential $ 659 $ 1,600 Commercial 453 575 Construction 541 640 $ 1,653 $ 2,815 The following table presents the net charge-offs to average loans outstanding as of December 31: 2021 2020 Real Estate: One- to four-family residential — % — % Commercial — % — % Construction — % — % Commercial and industrial — % — % Consumer — % — % — % — % The following table presents key credit ratios and the components used in the calculations: 2021 2020 Total non-accrual loans $ 1,653 $ 2,815 Gross total loans $ 252,959 $ 189,484 Allowance for loan losses $ 3,145 $ 2,854 Total non-accrual loans to total loans 0.65 % 1.49 % Allowance to non-accrual loans 190.26 % 101.39 % Allowance to total loans outstanding at the end of the period 1.24 % 1.51 % 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 Company’s internal risk rating system as of December 31, 2021 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 104,368 $ 625 $ 1,031 $ — $ 106,024 Commercial 109,683 — 1,046 — 110,729 Construction 13,210 — 541 — 13,751 Commercial and industrial 19,417 — — — 19,417 Consumer 3,038 — — — 3,038 $ 249,716 $ 625 $ 2,618 $ — $ 252,959 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 Company’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 December 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 $ 142 $ 46 $ 308 $ 496 $ 105,528 $ 106,024 $ — Commercial — — 453 453 110,276 110,729 — Construction — — 541 541 13,210 13,751 — Commercial and industrial — — — — 19,417 19,417 Consumer — — — — 3,038 3,038 — $ 142 $ 46 $ 1,302 $ 1,490 $ 251,469 $ 252,959 $ — 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 Company 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 Company 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 Company worked 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 CARES Act or under applicable interagency guidance of the federal banking regulators. As of December 31, 2021 and 2020, we had granted short-term payment deferrals on 78 and 71 loans, respectively, totaling approximately $23.5 million and $22.0 million, respectively, in aggregate principal amount, that were otherwise performing. As of December 31, 2021 and 2020, 64 and 60 of these loans, respectively, totaling $21.5 million and $18.0 million, respectively, have returned to normal payment status. As of December 31, 2021, 14 loans that had a short-term payment deferral have paid off totaling $2.0 million. The Company 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 twelve months ended December 31, 2021 and December 31, 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. One commercial loan for $190,000 and $214,000 and one construction loan for $189,000 and $264,000 were troubled debt restructurings completed previously in default for the years ended December 31, 2021 and December 31, 2020, respectively. At December 31, 2021 and 2020, there was no other real estate owned that was related to residential real estate. There was $0 of real estate in process of foreclosure as of December 31, 2021 and 2020. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | 4. Premises and Equipment Premises and equipment are composed of the following at December 31 (in thousands): Estimated Useful Lives 2021 2020 Premises: Land Indefinite $ 559 $ 559 Building and improvements 5 - 40 years 3,506 3,506 Furniture and equipment 3 - 10 years 2,141 2,075 Work in process 19 70 6,225 6,210 Accumulated depreciation and amortization (4,276) (4,104) $ 1,949 $ 2,106 Depreciation and amortization expense charged to operations amounted to approximately $172,000 and $205,000 for the years ended December 31, 2021 and 2020, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | 5. Deposits Deposits at December 31, 2021 and 2020 consist of the following (in thousands): 2021 2020 Non-interest-bearing demand deposits $ 22,028 $ 21,533 Interest-bearing demand deposits 72,087 62,639 Savings deposits 21,778 18,412 Money market deposits 58,310 42,933 Certificates of deposit 76,927 85,899 $ 251,130 $ 231,416 At December 31, 2021, the scheduled maturities of time deposits are as follows (in thousands): Year ending December 31, 2022 35,863 2023 18,237 2024 7,788 2025 9,255 2026 2,971 Thereafter 2,813 $ 76,927 The aggregate amount of certificates of deposit with a minimum denomination in excess of $250,000 was approximately $10,489,000 and $10,750,000 at December 31, 2021 and 2020, respectively. Currently, amounts above $250,000 are not insured by the FDIC. At December 31, 2021 and 2020, the Company held approximately $1,246,000 in brokered deposits. Interest expense on deposits for the years ended December 31, 2021 and 2020 is composed of the following (in thousands): 2021 2020 Interest-bearing demand deposits $ 213 $ 230 Savings deposits 69 75 Money market deposits 233 226 Certificates of deposit 1,261 1,364 $ 1,776 $ 1,895 Deposits of related parties totaled $4,648,000 and $2,780,000 at December 31, 2021 and 2020, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings | |
Borrowings | 6. Borrowings The Company has an open-ended line of credit (short-term borrowing) of $45,630,000 to obtain advances from the FHLB. Interest on the line of credit is charged at the FHLB’s overnight rate of 0.28% and 0.41% at December 31, 2021 and 2020, respectively. The Company had $0 outstanding under this line of credit at December 31, 2021 and 2020. The Company has an unsecured line of credit with ACBB of up to $3,000,000, which expires on June 30, 2022. Interest on the line of credit is charged at 0.25%. The Company had $0 outstanding under this line of credit at December 31, 2021 and 2020. In addition to the unsecured line of credit with ACBB, the Company 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 Company’s U.S. Government and agency obligations. There were no borrowings outstanding through the discount window at December 31, 2021 and December 31, 2020. Borrowings from the FHLB at December 31 consist of the following (dollars in thousands): 2021 2020 Weighted Weighted Maturity Amount Rate Amount Rate 2021 — — 3,872 2.37 2022 8,124 2.11 8,124 2.11 2023 8,557 2.78 8,557 2.78 $ 16,681 2.45 % $ 20,553 2.44 % Maximum borrowing capacity was approximately $107,520,000 and $88,751,000 at December 31, 2021 and 2020, respectively, secured by qualifying loans. The Company has one letter of credit with FHLB for $2,500,000 at December 31, 2021 and two letters of credit with FHLB for $4,250,000 at December 31, 2020 that is pledged to secure public funds. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 7. Income Taxes The components of income tax expense (benefit) consist of the following for the years ended December 31 (in thousands): 2021 2020 Current tax expense, federal $ 344 $ 47 Deferred federal tax benefit (174) (187) Deferred state tax expense (benefit) (455) 384 Change in valuation allowance 455 (384) Net deferred tax benefit (174) (187) Income Tax Expense (Benefit) $ 170 $ (140) A reconciliation of the statutory federal income tax at a rate of 21% to federal income tax expense (benefit) included in the statements of income for the years ended December 31, 2021 and 2020, respectively are as follows: 2021 2020 Federal income tax at statutory rate $ 201 $ (116) State income taxes, net of federal benefit (455) 384 Bank owned life insurance income (37) (27) Change in valuation allowance 455 (384) Other 6 3 $ 170 $ (140) The tax effects of temporary differences that give rise to significant portions of the net deferred tax asset at December 31, 2021 and 2020 are as follows (in thousands): 2021 2020 Deferred tax assets: Allowance for loan losses $ 660 $ 599 Deferred loan fees 216 156 Additional minimum liability for retirement plan — 24 Nonaccrual interest 32 30 Unrealized loss on available-for-sale securities 75 — Other 170 79 State net operating loss carryforwards 1,083 628 Gross deferred tax asset 2,236 1,516 Valuation allowance (1,083) (628) Total deferred tax assets, net of valuation allowance 1,153 888 Deferred tax liabilities: Deferred loan costs 103 63 Unrealized gain on available-for-sale securities — 56 Property and equipment 80 87 Prepaid expenses 25 10 Gross deferred tax liabilities 208 216 Net Deferred Tax Asset $ 945 $ 672 The valuation allowance relates to state net operating loss carryforwards for which realization is uncertain. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that, some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management has recorded a valuation allowance at December 31, 2021 and 2020 for all state net operating loss carryforwards. A valuation allowance of $1,083,000 and $628,000 was recorded at December 31, 2021 and 2020 for state net operating losses. At December 31, 2021 and 2020, the Company had state net operating loss carryforwards of $9,415,000 and $5,458,000, respectively, which are available to offset future state taxable income, and began to expire in 2018. These benefits have been fully reserved. At December 31, 2021 and 2020, the Company had no federal net operating loss carryforwards. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 12 Months Ended |
Dec. 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 | 8. Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk The Company 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 Company’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 Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Company had the following off-balance sheet financial instruments whose contract amounts represent credit risk at December 31, 2021 and 2020 (in thousands): 2021 2020 Commitments to grant loans $ 24,756 $ 15,900 Unfunded commitments under lines of credit 9,214 7,612 Standby letters of credit 3,213 3,638 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 Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company 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 | 12 Months Ended |
Dec. 31, 2021 | |
Contingencies | |
Contingencies | 9. Contingencies In the normal course of business, the Company is subject to various lawsuits involving matters generally incidental to its business. 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 position or of operations of the Company. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Employee Benefits | 10. Employee Benefits Defined Benefit Pension Plan The Company had a defined benefit plan (the Plan) covering all eligible employees. Any employee who was not a participant in the Plan on January 1, 2015 or earlier was not eligible to participate in the plan and receive benefits, regardless of the date of reemployment. The Plan could be terminated at any time by the Company. The Plan used a benefit formula based upon years of credited service. The Company’s policy was to fund amounts as are necessary to meet at least the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). The plan provided a benefit based on final average earnings and years of service. The Company used a December 31 measurement date for the Plan. As of December 31, 2018, the Plan service accruals were frozen. The Company has terminated the pension plan with a termination date of April 1, 2021 and all assets of the pension plan have been dispersed during the year ending December 31, 2021. The following table sets forth the Plan’s funded status, significant assumptions and the amounts recognized in the Company’s consolidated statements of financial condition at December 31 (in thousands): 2021 2020 Change in projected benefit obligation: Benefit obligation at beginning of year $ 1,472 $ 1,344 Interest cost 40 44 Actuarial (gain) loss (63) 126 Benefits paid (6) (7) Settlements (1,443) (35) Projected benefit obligation at end of year — 1,472 Change in plan assets: Fair value of plan assets beginning of year 1,356 1,223 Actual return on plan assets 89 175 Benefits paid (6) (7) Settlements (1,443) (35) Contribution 4 — Fair value of plan assets at end of year — 1,356 Funding deficiency included in other liabilities — (116) Accrued pension cost $ — $ (116) Accumulated benefit obligation $ — $ 1,472 The components of net periodic pension cost (credit) and other comprehensive loss for the years ended December 31, 2020 were as follows (in thousands): 2021 2020 Interest cost $ 40 $ 43 Expected return on plan assets (81) (79) Net Periodic Benefit Credit $ (41) $ (36) Gain (loss) during year (155) 31 Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Loss $ (196) (5) The weighted-average assumptions used to determine the benefit obligation for the years ended December 31, are as follows: 2021 2020 Discount rate N/A % 2.75 % Annual salary increase N/A N/A The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31 are as follows: 2021 2020 Discount rate 2.75 % 3.25 % Expected long-term rate of return on plan assets 6.00 6.50 Annual salary increase N/A N/A The fair value of the Company’s pension plan assets at December 31, 2020, by asset category, are as follows (in thousands): Fair Value Measurements at December 31, 2020 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Mutual funds – equity $ 665 $ 665 $ — $ — Mutual funds - fixed income 600 600 — — Commercial collective trusts - equity 82 — 82 — Cash equivalents 9 9 — — $ 1,356 $ 1,274 $ 82 $ — 401(k) Retirement Plan The Company maintains a 401(k) Retirement Plan for eligible employees. The plan provides a matching contribution for all employees. The matching contribution is an amount equal to 100% of the participant’s elective contribution not to exceed 3% of the participants plan salary, plus 50% of the participant’s contribution that exceeds 3% of their plan salary but not to exceed 5% of their plan salary. With the freezing of the Pension Plan, the Company initiated a 2% discretionary contribution to the 401(k) for employees beginning January 1, 2019. The Company’s related expense associated with the matching contribution was $151,000 and $119,000 in 2021 and 2020, respectively. ESOP Plan Employees participate in an Employee Stock Ownership Plan (ESOP). During 2021, the ESOP borrowed from the Company to purchase 222,180 shares of stock at an average price of $13.04 per share. When loan payments are made, ESOP shares are allocated to participants based on relative compensation and expense is recorded. The Company’s related expense for the ESOP was Shares held by the ESOP were as follows (dollars in thousands): 2021 Allocated to participants 11,109 Unearned 211,071 Total ESOP shares 222,180 Fair value of unearned shares $ 2,868 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters | |
Regulatory Matters | 11. 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 December 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 year-end 2021 and 2020, the most recent regulatory notifications 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. In April 2020, the federal banking agencies issued an interim final rule that makes temporary changes to the CBLR framework, pursuant to section 4012 of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, and a second interim final rule that provides 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 interim final rules the community bank leverage ratio minimum requirement is 8% as of December 31, 2020, 8.5% for calendar year 2021, and 9% for calendar year 2022 and beyond. The interim rule allows for a two-quarter grace period to correct a ratio that falls below the required amount, provided that the bank maintains a leverage ratio of 7% as of December 31, 2020, 7.5% for calendar year 2021, and 8% for calendar year 2022 and beyond. 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 December 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 year-end. To be Well Capitalized under Prompt Corrective Action December 31, 2021 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 35,679 11.65 % $ 26,769 8.50 % 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 % |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings Per Share The factors used in the earnings per share computation follow (dollars in thousands, except per share data): 2021 Net income $ 785 Weighted average common shares outstanding 2,777,250 Less: Average unearned ESOP shares (222,115) Average shares $ 2,555,135 Basic and diluted earnings per share $ 0.31 There were no shares outstanding for the year ended December 31, 2020. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 13. Fair Value of Financial Instruments The Company 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 Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year end. 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 Company 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 Company’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 December 31, 2021 and 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2021 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 20,820 $ — $ 20,820 $ — Mortgage-backed securities 144 — 144 — Collateralized mortgage obligations 4,685 — 4,685 — Mutual funds 849 849 — — $ 26,498 $ 849 $ 25,649 $ — 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 December 31, 2021 and 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2021 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 139 $ — $ — $ 139 $ 139 $ — $ — $ 139 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 Company has utilized Level 3 inputs to measure fair value at December 31, 2021 and 2020 (dollars in thousands): December 31, 2021 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 139 Appraisal of collateral Selling expenses and discounts (1) 54.0% - 54.0% (54.0%) 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 Company’s financial instruments as of the indicated dates are presented in the following table: December 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 $ 26,864 $ 26,864 $ 50,591 $ 50,591 Debt securities - available-for-sale 2 25,649 25,649 25,877 25,877 Equity securities 1 849 849 864 864 Restricted stocks 2 884 884 1,046 1,046 Loans, net 3 249,196 253,558 186,045 188,311 Accrued interest receivable 1 852 852 851 851 Bank owned life insurance 2 7,313 7,313 6,639 6,639 Financial liabilities: Demand deposits, savings, and money market 1 174,203 174,203 145,517 145,517 Certificates of deposit 2 76,927 77,291 85,899 87,431 Long-Term borrowings 2 16,681 16,872 20,553 21,279 Accrued interest payable 1 195 195 228 228 |
Non-Interest Revenues
Non-Interest Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Non-Interest Revenues | |
Non-Interest Revenues | 14. 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 Charges 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 Company recognizing the revenue on the same day. The Company 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 Company 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 Company 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 Company, 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 twelve months ended December 31, 2021 and 2020, in thousands: Noninterest income 2021 2020 In scope of Topic 606 Service charges on deposit accounts $ 176 183 Debit card income 216 183 Other service charges 89 75 Other noninterest income 160 50 Noninterest income (in scope for Topic 606) 641 491 Noninterest income (out of scope for Topic 606) 149 175 Total noninterest income $ 790 $ 666 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 Company’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 Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2021 and 2020, the Company 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 Company 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 Company did not capitalize any contract acquisition cost. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Parent Company Only Financial Statements | |
Parent Company Only Financial Statements | 15. Parent Company Only Financial Statements Condensed financial statements of PB Bankshares, Inc. are as follows for December 31, (in thousands): 2021 Assets Cash and cash equivalents $ 7,779 ESOP Loan Receivable 2,744 Investment in subsidary Bank 35,396 Other assets 4 Total Assets $ 45,923 Liabilities and Stockholders' Equity Liabilities Due to the Bank $ 29 Accrued expenses and other liabilities 60 Total Liabilities 89 Stockholders' Equity Total Stockholders' Equity 45,834 Total Liabilities and Stockholders' Equity $ 45,923 2021 Interest Income Interest Income on ESOP Loan $ 43 Interest on Cash and Cash Equivalents 1 Total Interest Income $ 44 Noninterest Expense SEC expense $ 96 Total Noninterest Expense 96 Loss before income tax expense (52) Equity in Undisturbed Income of Subsidiary 826 Income Tax (Benefit) (11) Net Loss $ 785 2021 Cash Flows from Operating Activities Net income $ 785 Adjustments to reconcile change in net income to net cash provided by operating activities: Equity in undisturbed income of subsidiary (826) ESOP allocation of shares 145 (Increase) in other assets (4) Increase in accrued expenses and other liabilities 89 Net Cash Provided by Operating Activities 189 Cash Flows from Investing Activities ESOP loan (2,898) ESOP loan payments 154 Investment in subsidiary (12,967) Net Cash Used in Investing Activities (15,711) Cash Flows from Financing Activities Issuance of common stock 26,199 Purchase of ESOP shares (2,898) Net Cash Provided by Financing Activities 23,301 Increase in cash and cash equivalents 7,779 Cash and Cash Equivalents, Beginning of Period — Cash and Cash Equivalents, End of Period $ 7,779 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Organization and Nature of Operations | Organization and Nature of Operations PB Bankshares, Inc., a Maryland Corporation (the “Company”) is the holding company of Presence Bank formerly Prosper Bank (the “Bank”) and was formed in connection with the conversion of the Bank from the mutual to the stock form of organization. On July 14, 2021, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. Shares of the Company began trading on the Nasdaq Capital Market on July 15, 2021. The Company is subject to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Bank”). The 2020 information within has been derived from December 31, 2020 audited financial statements of 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 include accounts of the Company and its wholly-owned subsidiary, the Bank. The Bank also includes 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 its 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 Company’s customers operate and could impair their ability to fulfill their financial obligations to the Company. 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 Company operates. While there has been no material impact to the Company’s employees to date, COVID-19 could also potentially create widespread business continuity issues for the Company. The Company’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 Company 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 Company’s operations, the Company is disclosing potentially material items of which it is aware. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through March 25, 2022, which is the date these consolidated financial statements were available to be issued. On January 26, 2022, the Company adopted the Presence Bank Executive Deferred Compensation Plan. The purpose of the Deferred Compensation Plan is to provide tax planning opportunities for certain key members of management team by means of a non-qualified deferred compensation plan. |
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 Pennsylvania Department of Banking and Securities, 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. |
Concentration of Credit Risk | Concentration of Credit Risk Most of the Company’s activities are with customers located within Chester, Cumberland, Dauphin, Lancaster, and Lebanon Counties of Pennsylvania. Note 2 of the consolidated financial statements discuss the types of securities that the Company invests in. Note 3 of the consolidated financial statements discuss the types of lending that the Company engages in. The Company does not have any significant loan concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy and real estate values. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, cash due from banks, interest bearing deposits with banks, and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. The Company maintains cash deposits in other depository institutions that occasionally exceed the amount of deposit insurance available. Management periodically assesses the financial condition of these institutions and believes that the risk of any possible credit loss is minimal. |
Debt and Equity Securities | Debt Securities Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Securities that management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at their remaining unpaid principal balance, net of unamortized premiums, or unaccreted discounts. At December 31, 2021 and 2020 and for the years then ended, the Company had no investment securities classified as held to maturity. Securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and the yield of alternative investments are classified as available-for-sale. These securities are carried at fair value, which is determined by obtaining quoted market prices or matrix pricing. Unrealized gains and losses are excluded from earnings and are reported in other comprehensive income (loss), net of taxes. Realized gains and losses are recorded on the trade date and are determined using the specific identification method. Premiums are amortized and discounts are accreted using a method which approximates the interest method through call date or maturity of the underlying security. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least an annual basis, and more frequently when economic or market concerns warrant such evaluation. Declines in fair value of securities below their cost that are deemed to be other-than-temporary are separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive loss. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether or not management intends to sell or expects that it is more likely than not that it will be required to sell the security prior to any anticipated recovery in fair value. Equity Securities Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determined fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. |
Restricted Investments in Bank Stocks | Restricted Investments in Bank Stocks Restricted stock, which represents required investments in the common stock of correspondent banks, is carried at cost and consists of the common stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) of $824,000 and $986,000 as of December 31, 2021 and 2020, respectively, and Atlantic Community Bankers Bank (“ACBB”) of $60,000 as of both December 31, 2021 and 2020. Management evaluates the restricted stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. Management believes no impairment charge is necessary related to restricted stocks in 2021 and 2020. |
Loans Receivable | Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method over the life of the loan. The loans receivable portfolio is segmented into one- to four-family residential real estate, commercial real estate, construction, commercial and industrial, and consumer loans. Descriptions of the Company’s loan classes are as follows: One- to four-family Residential Real Estate Loans: This segment of loans includes loans secured by one- to four-family homes. In addition to traditional residential mortgage loans secured by a first or junior lien on the property, the Company offers home equity lines of credit. Commercial Real Estate Loans: This loan segment consists primarily of loans secured by various types of commercial real estate typically in the Company’s market area, including multi-family residential buildings, office and retail buildings, industrial and warehouse buildings, hotels, and religious facilities. Construction: The Company originates construction loans for the acquisition and development of land and construction of commercial buildings, condominiums, townhomes, and one- to four-family residences. Commercial and Industrial Loans: Commercial loans may be unsecured or secured with non-real estate commercial property. The Company makes commercial loans to businesses located within its market area and also to businesses outside of its market area through loan participations with other financial institutions. Consumer Loans: Consumer loans include all loans made to individuals for consumer or personal purposes. They include secured loans, unsecured loans, and overdraft lines of credit. The Company makes consumer loans to individuals located within its market area and occasionally to individuals outside of its market. For all classes of loans receivable, the accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the statement of financial condition date and is recorded as a reduction to loans. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The evaluation also considers the following risk characteristics of each loan portfolio segment: ● One- to four-family residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. ● Construction loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget, and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. ● Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. ● Consumer loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, if any. These loans are typically either unsecured or secured by rapidly depreciating assets. They are also likely to be immediately and adversely affected by job loss, divorce, illness, personal bankruptcy, or other changes in circumstances. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including construction and commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential mortgages and consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications. 5. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 6. Effect of external factors, such as competition and legal and regulatory requirements. 7. Experience, ability, and depth of lending management and other relevant staff. 8. Quality of loan review and Board of Director oversight. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. A large portion of the Company’s loan assets are loans to business owners of many types. The Company makes commercial loans for real estate development and other business purposes required by the customer base. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. The assets financed through commercial loans are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversions of assets. Commercial loans include long-term loans financing commercial properties. Repayment of this kind of loan is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial loans typically require a loan to value ratio of not greater than 80% and vary in terms. Residential mortgages are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower and the loan to value ratio. Residential mortgages have amortizations up to 30 years. Other types of consumer loans include installment loans and overdraft lines of credit. The majority of these loans are unsecured. An unallocated component of the allowance for loan losses is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral net of estimated selling costs if the loan is collateral dependent. A specific reserve is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral net of estimated selling costs. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not typically separately identify individual residential mortgage loans and consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement, are related to a commercial lending relationship, or are deemed not to be a smaller balance loan. Loans whose terms are modified are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans criticized as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process encompassing both internal and external oversight. Generally, residential mortgage and consumer loans are included in the pass category unless on nonaccrual status at which time they are classified as substandard. The Company’s loan officers are responsible for the timely and accurate risk rating of the commercial and construction loans in their portfolio at origination and on an ongoing basis. An ongoing review of commercial loans is performed by the loan department. The Company also utilizes an external loan review consultant to conduct a loan review of its portfolio each year. The external consultant generally reviews all loan relationships exceeding a specific threshold. In addition, Federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is charged to operations on a straight-line basis over the estimated useful lives of the assets or, in the case of leasehold improvements, the lease period, if shorter. Gains or losses on dispositions are reflected in current operations. Maintenance and repairs are charged to expense as incurred. |
Other Real Estate Owned (OREO) | Other Real Estate Owned (OREO) Real estate properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure establishing a new cost basis. Any write-downs based on the asset’s fair value less cost to sell at date of foreclosure are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of its carrying amount or fair value less cost to sell. Revenue and expenses from operations and write-downs are included in other non-interest expense on the consolidated statements of operations. There were no write-downs recorded during 2021 or 2020. Gains and losses on the sale of OREO are included in non-interest expense. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has invested in bank owned life insurance (“BOLI”) covering certain employees. The Company is the owner and beneficiary of these policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in non-interest income on the consolidated statements of operations. The policies can be liquidated, if necessary, with tax costs associated. However, the Company intends to hold these policies and, accordingly, the Company has not provided for deferred income taxes on the earnings from the increase in cash surrender value. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the income tax accounting guidance set forth in FASB ASC Topic 740, Income Taxes The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and net operating loss carryforwards, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense (benefit) results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Company files a consolidated U.S. federal income tax return with its subsidiary. As of December 31, 2021, the Company had no material unrecognized tax benefits or accrued interest and penalties. It is the Company’s policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Federal and state tax returns for the years 2018 through 2020 were open for examination as of December 31, 2021. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the consolidated statement of financial condition when they are funded. |
Retirement Plans | Retirement Plans Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock option, with no stock options approved at December 31, 2021. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Advertising | Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in results of operations. Although certain changes in assets and liabilities, such as unrealized gains on securities available-for-sale and changes in the funded status of the defined benefit plan, are reported as a separate component of the equity section of the consolidated balance sheet, such items, along with net income (loss), are components of comprehensive income (loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements This section provides a summary description of recent Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) to the Accounting Standards Codification (ASC) that had or that management expects may have an impact on the consolidated 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. An internal team has been formed and the Company will hire a vendor to assist with expected credit loss projections. 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. In August 2021, the FASB issued ASU 2021-06, “'Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants”. The ASU is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2021-06 to have a material impact on its consolidated financial statements. 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 3 for the further discussion of COVID-19 loans. |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt and Equity Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair value securities available-for-sale 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 December 31, 2021 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,241 $ — $ (421) $ 20,820 Mortgage-backed securities 129 15 — 144 Collateralized mortgage obligations 4,637 54 (6) 4,685 Total available-for-sale debt securities $ 26,007 $ 69 $ (427) 25,649 Equity securities: Mutual funds (fixed income) $ 849 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 available-for-sale securities 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 December 31, 2021 and 2020 (in thousands): December 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 $ 19,113 $ (379) $ 1,707 $ (42) $ 20,820 $ (421) Collateralized mortgage obligations 879 (6) — — 879 (6) $ 19,992 $ (385) $ 1,707 $ (42) $ 21,699 $ (427) 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 (dollars in thousands). Available-for-Sale Amortized Cost Fair Value Yield Due less than one year $ — $ — — % Due one year through five years 21,241 20,820 0.62 Due after five years through ten years — — — Mortgage-backed securities 129 144 4.26 Collateralized mortgage obligations 4,637 4,685 2.02 $ 26,007 $ 25,649 0.89 % |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans Receivable and Allowance for Loan Losses | |
Summary of major classifications of net loans receivable | Major classifications of net loans receivable at December 31, 2021 and 2020 are as follows (in thousands): December 31, December 31, 2021 2020 Real estate: One-to four-family residential $ 106,024 $ 106,413 Commercial 110,729 59,514 Construction 13,751 8,700 Commercial and industrial 19,417 11,801 Consumer loans 3,038 3,056 252,959 189,484 Deferred loan fees, net (618) (585) Allowance for loan losses (3,145) (2,854) $ 249,196 $ 186,045 |
Schedule of loan maturities | The following table shows the loan maturities at December 31, 2021 (in thousands), the table presents contractual maturities and does not reflect repricing or the effect of prepayments: One- to Four- Family Residential Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Total Amounts due in: One year or less $ 2,253 $ 1,763 $ 2,774 $ 1,900 $ 13 $ 8,703 More than one to five years 2,414 6,541 4,276 5,574 25 18,830 More than five to 15 years 48,914 65,596 4,824 9,874 — 129,208 More than 15 years 52,443 36,829 1,877 2,069 3,000 96,218 Total $ 106,024 $ 110,729 $ 13,751 $ 19,417 $ 3,038 $ 252,959 |
Schedule of loan interest rate sensitivity | The following table sets forth our fixed and adjustable-rate loans at December 31, 2021 that are contractually due after December 30, 2022 (in thousands): Due After December 31, 2022 Fixed Adjustable Total Real estate: One- to four-family residential $ 99,145 $ 4,626 $ 103,771 Commercial 93,737 15,229 108,966 Construction 6,521 4,456 10,977 Commercial and industrial 13,006 4,511 17,517 Consumer 25 3,000 3,025 Total loans $ 212,434 $ 31,822 $ 244,256 |
Summary of loans to officers and directors | Loans to officers and directors, made on the same terms as loans to others, and the related activity is as follows (in thousands): December 31, December 31, 2021 2020 Balance, beginning of year $ 107 $ 439 Additions 200 — Repayments (16) (257) Reclassification — (75) Balance, end of year $ 291 $ 107 |
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 year ended December 31, 2021 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of December 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 $ — $ — $ (122) $ 1,217 $ — $ 1,217 Commercial 1,033 — — 324 1,357 — 1,357 Construction 121 — — 73 194 50 144 Commercial and industrial 136 — 4 51 191 — 191 Consumer 37 — — (4) 33 — 33 Unallocated 188 — — (35) 153 — 153 $ 2,854 $ — $ 4 $ 287 $ 3,145 $ 50 $ 3,095 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 106,024 $ 647 $ 105,377 Commercial 110,729 1,589 109,140 Construction 13,751 541 13,210 Commercial and industrial 19,417 — 19,417 Consumer 3,038 — 3,038 $ 252,959 $ 2,777 $ 250,182 The following table summarizes the activity in the allowance for loan losses by loan class for the year ended December 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 $ (14) $ — $ 418 $ 1,339 $ — $ 1,339 Commercial 687 — 264 82 1,033 16 1,017 Construction 42 — — 79 121 24 97 Commercial and industrial 29 — 4 103 136 — 136 Consumer 13 (4) 5 23 37 — 37 Unallocated 133 — — 55 188 — 188 $ 1,839 $ (18) $ 273 $ 760 $ 2,854 $ 40 $ 2,814 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 December 31, 2021 and for the year 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 $ 647 $ 651 $ — $ 694 $ 26 Commercial 1,589 1,675 — 1,630 59 Construction 352 361 — 364 — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial — — — — — Construction 189 225 50 226 — Total: Real estate: One- to four-family residential $ 647 $ 651 $ — $ 694 $ 26 Commercial 1,589 1,675 — 1,630 59 Construction 541 586 50 590 — The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2020 and for the year 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 With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — Commercial 488 561 16 508 23 Construction 264 300 24 264 — 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 |
Schedule of nonaccrual loans by classes of the loan portfolio | The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2021 and 2020 (in thousands): 2021 2020 Real estate: One- to four-family residential $ 659 $ 1,600 Commercial 453 575 Construction 541 640 $ 1,653 $ 2,815 |
Schedule of Net Charge Offs to Average Loans Outstanding | 2021 2020 Real Estate: One- to four-family residential — % — % Commercial — % — % Construction — % — % Commercial and industrial — % — % Consumer — % — % — % — % |
Loans Receivable Key Credit Ratios | 2021 2020 Total non-accrual loans $ 1,653 $ 2,815 Gross total loans $ 252,959 $ 189,484 Allowance for loan losses $ 3,145 $ 2,854 Total non-accrual loans to total loans 0.65 % 1.49 % Allowance to non-accrual loans 190.26 % 101.39 % Allowance to total loans outstanding at the end of the period 1.24 % 1.51 % |
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 Company’s internal risk rating system as of December 31, 2021 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 104,368 $ 625 $ 1,031 $ — $ 106,024 Commercial 109,683 — 1,046 — 110,729 Construction 13,210 — 541 — 13,751 Commercial and industrial 19,417 — — — 19,417 Consumer 3,038 — — — 3,038 $ 249,716 $ 625 $ 2,618 $ — $ 252,959 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 Company’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 December 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 $ 142 $ 46 $ 308 $ 496 $ 105,528 $ 106,024 $ — Commercial — — 453 453 110,276 110,729 — Construction — — 541 541 13,210 13,751 — Commercial and industrial — — — — 19,417 19,417 Consumer — — — — 3,038 3,038 — $ 142 $ 46 $ 1,302 $ 1,490 $ 251,469 $ 252,959 $ — 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 $ — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Schedule of premises and equipment | Premises and equipment are composed of the following at December 31 (in thousands): Estimated Useful Lives 2021 2020 Premises: Land Indefinite $ 559 $ 559 Building and improvements 5 - 40 years 3,506 3,506 Furniture and equipment 3 - 10 years 2,141 2,075 Work in process 19 70 6,225 6,210 Accumulated depreciation and amortization (4,276) (4,104) $ 1,949 $ 2,106 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Schedule of deposits | Deposits at December 31, 2021 and 2020 consist of the following (in thousands): 2021 2020 Non-interest-bearing demand deposits $ 22,028 $ 21,533 Interest-bearing demand deposits 72,087 62,639 Savings deposits 21,778 18,412 Money market deposits 58,310 42,933 Certificates of deposit 76,927 85,899 $ 251,130 $ 231,416 |
Scheduled maturities of time deposits | At December 31, 2021, the scheduled maturities of time deposits are as follows (in thousands): Year ending December 31, 2022 35,863 2023 18,237 2024 7,788 2025 9,255 2026 2,971 Thereafter 2,813 $ 76,927 |
Schedule of interest expense on deposits | Interest expense on deposits for the years ended December 31, 2021 and 2020 is composed of the following (in thousands): 2021 2020 Interest-bearing demand deposits $ 213 $ 230 Savings deposits 69 75 Money market deposits 233 226 Certificates of deposit 1,261 1,364 $ 1,776 $ 1,895 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings | |
Schedule of borrowings maturity | Borrowings from the FHLB at December 31 consist of the following (dollars in thousands): 2021 2020 Weighted Weighted Maturity Amount Rate Amount Rate 2021 — — 3,872 2.37 2022 8,124 2.11 8,124 2.11 2023 8,557 2.78 8,557 2.78 $ 16,681 2.45 % $ 20,553 2.44 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) consist of the following for the years ended December 31 (in thousands): 2021 2020 Current tax expense, federal $ 344 $ 47 Deferred federal tax benefit (174) (187) Deferred state tax expense (benefit) (455) 384 Change in valuation allowance 455 (384) Net deferred tax benefit (174) (187) Income Tax Expense (Benefit) $ 170 $ (140) |
Schedule of reconciliation of the statutory federal income tax to federal income tax expense (benefit) | A reconciliation of the statutory federal income tax at a rate of 21% to federal income tax expense (benefit) included in the statements of income for the years ended December 31, 2021 and 2020, respectively are as follows: 2021 2020 Federal income tax at statutory rate $ 201 $ (116) State income taxes, net of federal benefit (455) 384 Bank owned life insurance income (37) (27) Change in valuation allowance 455 (384) Other 6 3 $ 170 $ (140) |
Schedule of tax effects of temporary differences that give rise to significant portions of the net deferred tax asset | The tax effects of temporary differences that give rise to significant portions of the net deferred tax asset at December 31, 2021 and 2020 are as follows (in thousands): 2021 2020 Deferred tax assets: Allowance for loan losses $ 660 $ 599 Deferred loan fees 216 156 Additional minimum liability for retirement plan — 24 Nonaccrual interest 32 30 Unrealized loss on available-for-sale securities 75 — Other 170 79 State net operating loss carryforwards 1,083 628 Gross deferred tax asset 2,236 1,516 Valuation allowance (1,083) (628) Total deferred tax assets, net of valuation allowance 1,153 888 Deferred tax liabilities: Deferred loan costs 103 63 Unrealized gain on available-for-sale securities — 56 Property and equipment 80 87 Prepaid expenses 25 10 Gross deferred tax liabilities 208 216 Net Deferred Tax Asset $ 945 $ 672 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 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 Company had the following off-balance sheet financial instruments whose contract amounts represent credit risk at December 31, 2021 and 2020 (in thousands): 2021 2020 Commitments to grant loans $ 24,756 $ 15,900 Unfunded commitments under lines of credit 9,214 7,612 Standby letters of credit 3,213 3,638 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Schedule of Plan's funded status, significant assumptions and amounts recognized in consolidated statements of financial condition | The following table sets forth the Plan’s funded status, significant assumptions and the amounts recognized in the Company’s consolidated statements of financial condition at December 31 (in thousands): 2021 2020 Change in projected benefit obligation: Benefit obligation at beginning of year $ 1,472 $ 1,344 Interest cost 40 44 Actuarial (gain) loss (63) 126 Benefits paid (6) (7) Settlements (1,443) (35) Projected benefit obligation at end of year — 1,472 Change in plan assets: Fair value of plan assets beginning of year 1,356 1,223 Actual return on plan assets 89 175 Benefits paid (6) (7) Settlements (1,443) (35) Contribution 4 — Fair value of plan assets at end of year — 1,356 Funding deficiency included in other liabilities — (116) Accrued pension cost $ — $ (116) Accumulated benefit obligation $ — $ 1,472 |
Schedule of components of net periodic pension cost (credit) and other comprehensive loss | The components of net periodic pension cost (credit) and other comprehensive loss for the years ended December 31, 2020 were as follows (in thousands): 2021 2020 Interest cost $ 40 $ 43 Expected return on plan assets (81) (79) Net Periodic Benefit Credit $ (41) $ (36) Gain (loss) during year (155) 31 Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Loss $ (196) (5) |
Schedule of weighted-average assumptions | The weighted-average assumptions used to determine the benefit obligation for the years ended December 31, are as follows: 2021 2020 Discount rate N/A % 2.75 % Annual salary increase N/A N/A The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31 are as follows: 2021 2020 Discount rate 2.75 % 3.25 % Expected long-term rate of return on plan assets 6.00 6.50 Annual salary increase N/A N/A |
Schedule of fair value of pension plan assets | The fair value of the Company’s pension plan assets at December 31, 2020, by asset category, are as follows (in thousands): Fair Value Measurements at December 31, 2020 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Mutual funds – equity $ 665 $ 665 $ — $ — Mutual funds - fixed income 600 600 — — Commercial collective trusts - equity 82 — 82 — Cash equivalents 9 9 — — $ 1,356 $ 1,274 $ 82 $ — |
Schedule of shares held by ESOP | Shares held by the ESOP were as follows (dollars in thousands): 2021 Allocated to participants 11,109 Unearned 211,071 Total ESOP shares 222,180 Fair value of unearned shares $ 2,868 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters | |
Schedule of actual and required capital amounts and ratios | Actual and required capital amounts (in thousands) and ratios are presented below at year-end. To be Well Capitalized under Prompt Corrective Action December 31, 2021 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 35,679 11.65 % $ 26,769 8.50 % 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 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of factors used in earning per share computation | The factors used in the earnings per share computation follow (dollars in thousands, except per share data): 2021 Net income $ 785 Weighted average common shares outstanding 2,777,250 Less: Average unearned ESOP shares (222,115) Average shares $ 2,555,135 Basic and diluted earnings per share $ 0.31 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 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 December 31, 2021 and 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2021 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 20,820 $ — $ 20,820 $ — Mortgage-backed securities 144 — 144 — Collateralized mortgage obligations 4,685 — 4,685 — Mutual funds 849 849 — — $ 26,498 $ 849 $ 25,649 $ — 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 December 31, 2021 and 2020 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2021 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 139 $ — $ — $ 139 $ 139 $ — $ — $ 139 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 Company has utilized Level 3 inputs to measure fair value at December 31, 2021 and 2020 (dollars in thousands): December 31, 2021 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 139 Appraisal of collateral Selling expenses and discounts (1) 54.0% - 54.0% (54.0%) 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 | December 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 $ 26,864 $ 26,864 $ 50,591 $ 50,591 Debt securities - available-for-sale 2 25,649 25,649 25,877 25,877 Equity securities 1 849 849 864 864 Restricted stocks 2 884 884 1,046 1,046 Loans, net 3 249,196 253,558 186,045 188,311 Accrued interest receivable 1 852 852 851 851 Bank owned life insurance 2 7,313 7,313 6,639 6,639 Financial liabilities: Demand deposits, savings, and money market 1 174,203 174,203 145,517 145,517 Certificates of deposit 2 76,927 77,291 85,899 87,431 Long-Term borrowings 2 16,681 16,872 20,553 21,279 Accrued interest payable 1 195 195 228 228 |
Non-Interest Revenues (Tables)
Non-Interest Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Non-Interest Revenues | |
Schedule of noninterest 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 twelve months ended December 31, 2021 and 2020, in thousands: Noninterest income 2021 2020 In scope of Topic 606 Service charges on deposit accounts $ 176 183 Debit card income 216 183 Other service charges 89 75 Other noninterest income 160 50 Noninterest income (in scope for Topic 606) 641 491 Noninterest income (out of scope for Topic 606) 149 175 Total noninterest income $ 790 $ 666 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Parent Company Only Financial Statements | |
Schedule of condensed financial statements | Condensed financial statements of PB Bankshares, Inc. are as follows for December 31, (in thousands): 2021 Assets Cash and cash equivalents $ 7,779 ESOP Loan Receivable 2,744 Investment in subsidary Bank 35,396 Other assets 4 Total Assets $ 45,923 Liabilities and Stockholders' Equity Liabilities Due to the Bank $ 29 Accrued expenses and other liabilities 60 Total Liabilities 89 Stockholders' Equity Total Stockholders' Equity 45,834 Total Liabilities and Stockholders' Equity $ 45,923 2021 Interest Income Interest Income on ESOP Loan $ 43 Interest on Cash and Cash Equivalents 1 Total Interest Income $ 44 Noninterest Expense SEC expense $ 96 Total Noninterest Expense 96 Loss before income tax expense (52) Equity in Undisturbed Income of Subsidiary 826 Income Tax (Benefit) (11) Net Loss $ 785 2021 Cash Flows from Operating Activities Net income $ 785 Adjustments to reconcile change in net income to net cash provided by operating activities: Equity in undisturbed income of subsidiary (826) ESOP allocation of shares 145 (Increase) in other assets (4) Increase in accrued expenses and other liabilities 89 Net Cash Provided by Operating Activities 189 Cash Flows from Investing Activities ESOP loan (2,898) ESOP loan payments 154 Investment in subsidiary (12,967) Net Cash Used in Investing Activities (15,711) Cash Flows from Financing Activities Issuance of common stock 26,199 Purchase of ESOP shares (2,898) Net Cash Provided by Financing Activities 23,301 Increase in cash and cash equivalents 7,779 Cash and Cash Equivalents, Beginning of Period — Cash and Cash Equivalents, End of Period $ 7,779 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Significant Accounting Policies | ||
Number of branches | item | 3 | |
Held to maturity | $ | $ 0 | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies - Restricted investments in bank stocks (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Holdings [Line Items] | ||
Impairment of restricted investments | $ 0 | $ 0 |
Write down of other real estate owned | $ 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | |
Maximum | Commercial | ||
Investment Holdings [Line Items] | ||
Loan Value Ratio Percentage | 80.00% | |
Maximum | Residential Mortgage | ||
Investment Holdings [Line Items] | ||
Loans receivable amortization term | 30 years | |
Federal Home Loan Bank of Pittsburgh | ||
Investment Holdings [Line Items] | ||
Restricted investments | $ 824 | 986 |
Atlantic Community Bankers Bank | ||
Investment Holdings [Line Items] | ||
Restricted investments | $ 60 | $ 60 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 26,007 | $ 25,610 |
Gross Unrealized Gains | 69 | 268 |
Gross Unrealized Losses | (427) | (1) |
Fair Value | 25,649 | 25,877 |
Equity Securities - Fair Value | 849 | 864 |
Agency bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 21,241 | 17,254 |
Gross Unrealized Gains | 22 | |
Gross Unrealized Losses | (421) | (1) |
Fair Value | 20,820 | 17,275 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 129 | 164 |
Gross Unrealized Gains | 15 | 20 |
Fair Value | 144 | 184 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 4,637 | 8,192 |
Gross Unrealized Gains | 54 | 226 |
Gross Unrealized Losses | (6) | |
Fair Value | $ 4,685 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 Months | $ 19,992 | $ 1,255 |
12 Months or More | 1,707 | |
Total Fair Value | 21,699 | 1,255 |
Unrealized Losses | ||
Less than 12 Months | (385) | (1) |
12 Months or More | (42) | |
Total Unrealized Losses | (427) | (1) |
Agency bonds | ||
Fair Value | ||
Less than 12 Months | 19,113 | 1,249 |
12 Months or More | 1,707 | |
Total Fair Value | 20,820 | 1,249 |
Unrealized Losses | ||
Less than 12 Months | (379) | (1) |
12 Months or More | (42) | |
Total Unrealized Losses | (421) | (1) |
Collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 879 | 6 |
Total Fair Value | 879 | $ 6 |
Unrealized Losses | ||
Less than 12 Months | (6) | |
Total Unrealized Losses | $ (6) |
Debt and Equity Securities - Na
Debt and Equity Securities - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities sold | $ | $ 0 | $ 0 |
Pledged to secure borrowings | $ | 1,965,000 | 2,004,000 |
Pledged primarily for public fund depositors | $ | $ 13,028,000 | $ 7,810,000 |
Private label mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of debt securities available for sale | security | 0 | 0 |
Agency bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of unrealized loss positions | security | 47 | 4 |
Percentage of unrealized loss with depreciation | 2.06% | 0.05% |
Collateralized mortgage obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of unrealized loss positions | security | 5 | 1 |
Percentage of unrealized loss with depreciation | 0.69% | 0.02% |
Debt and Equity Securities - _3
Debt and Equity Securities - Schedule of debt securities by contractual maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for sale securities, Amortized cost | ||
Due one year through five years | $ 21,241 | |
Amortized cost | 26,007 | $ 25,610 |
Available for sale securities, Fair value | ||
Due one year through five years | 20,820 | |
Fair Value | $ 25,649 | 25,877 |
Available for sale - yield | ||
Due one year through five years - yield | 0.62% | |
Available for sale - weighted average yield | 0.89% | |
Mortgage-backed securities | ||
Available for sale securities, Amortized cost | ||
Amortized cost | $ 129 | |
Amortized cost | 129 | 164 |
Available for sale securities, Fair value | ||
Fair Value | 144 | |
Fair Value | $ 144 | 184 |
Available for sale - yield | ||
Available for sale - yield | 4.26% | |
Collateralized mortgage obligations | ||
Available for sale securities, Amortized cost | ||
Amortized cost | $ 4,637 | |
Amortized cost | 4,637 | 8,192 |
Available for sale securities, Fair value | ||
Fair Value | 4,685 | |
Fair Value | $ 4,685 | $ 8,418 |
Available for sale - yield | ||
Available for sale - yield | 2.02% |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Major classifications of net loans receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and leases receivable, gross | $ 252,959 | $ 189,484 | |
Deferred loan fees, net | (618) | (585) | |
Allowance for loan losses | (3,145) | (2,854) | $ (1,839) |
Loans and leases receivable, net | 249,196 | 186,045 | |
Real estate | One- to four-family residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and leases receivable, gross | 106,024 | 106,413 | |
Allowance for loan losses | (1,217) | (1,339) | (935) |
Real estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and leases receivable, gross | 110,729 | 59,514 | |
Allowance for loan losses | (1,357) | (1,033) | (687) |
Real estate | Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and leases receivable, gross | 13,751 | 8,700 | |
Allowance for loan losses | (194) | (121) | (42) |
Commercial. | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and leases receivable, gross | 19,417 | 11,801 | |
Allowance for loan losses | (191) | (136) | (29) |
Consumer loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and leases receivable, gross | 3,038 | 3,056 | |
Allowance for loan losses | $ (33) | $ (37) | $ (13) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Loans Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
One year or less | $ 8,703 | |
More than one to five years | 18,830 | |
More than five to 15 years | 129,208 | |
More than 15 years | 96,218 | |
Total Loans Receivable | 252,959 | $ 189,484 |
Real estate | One- to four-family residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
One year or less | 2,253 | |
More than one to five years | 2,414 | |
More than five to 15 years | 48,914 | |
More than 15 years | 52,443 | |
Total Loans Receivable | 106,024 | 106,413 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
One year or less | 1,763 | |
More than one to five years | 6,541 | |
More than five to 15 years | 65,596 | |
More than 15 years | 36,829 | |
Total Loans Receivable | 110,729 | 59,514 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
One year or less | 2,774 | |
More than one to five years | 4,276 | |
More than five to 15 years | 4,824 | |
More than 15 years | 1,877 | |
Total Loans Receivable | 13,751 | 8,700 |
Commercial. | Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
One year or less | 1,900 | |
More than one to five years | 5,574 | |
More than five to 15 years | 9,874 | |
More than 15 years | 2,069 | |
Total Loans Receivable | 19,417 | 11,801 |
Consumer loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
One year or less | 13 | |
More than one to five years | 25 | |
More than 15 years | 3,000 | |
Total Loans Receivable | $ 3,038 | $ 3,056 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Loans interest rates sensitivity (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Loans and Leases Receivable Disclosure [Line Items] | |
Fixed | $ 212,434 |
Adjustable | 31,822 |
Loan Interest Rate Sensitivity, Due | 244,256 |
Real estate | One- to four-family residential | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fixed | 99,145 |
Adjustable | 4,626 |
Loan Interest Rate Sensitivity, Due | 103,771 |
Real estate | Commercial | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fixed | 93,737 |
Adjustable | 15,229 |
Loan Interest Rate Sensitivity, Due | 108,966 |
Real estate | Construction | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fixed | 6,521 |
Adjustable | 4,456 |
Loan Interest Rate Sensitivity, Due | 10,977 |
Commercial and industrial | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fixed | 13,006 |
Adjustable | 4,511 |
Loan Interest Rate Sensitivity, Due | 17,517 |
Consumer | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fixed | 25 |
Adjustable | 3,000 |
Loan Interest Rate Sensitivity, Due | $ 3,025 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Loans to officers and directors (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of year | $ 107 | $ 439 |
Additions | 200 | |
Repayments | (16) | (257) |
Reclassification | (75) | |
Balance, end of year | $ 291 | $ 107 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Allowance for loan losses by loan class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 2,854 | $ 1,839 |
Charge-offs | (18) | |
Recoveries | 4 | 273 |
Provision for loan losses | 287 | 760 |
Ending balance | 3,145 | 2,854 |
Allowance ending balance: | ||
Individually evaluated for impairment | 50 | 40 |
Collectively evaluated for impairment | 3,095 | 2,814 |
Ending Balance | 252,959 | 189,484 |
Ending Balance: Individually evaluated for impairment | 2,777 | 3,805 |
Ending Balance: Collectively evaluated for impairment | 250,182 | 185,679 |
Real estate | One- to four-family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,339 | 935 |
Charge-offs | (14) | |
Provision for loan losses | (122) | 418 |
Ending balance | 1,217 | 1,339 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 1,217 | 1,339 |
Ending Balance | 106,024 | 106,413 |
Ending Balance: Individually evaluated for impairment | 647 | 1,494 |
Ending Balance: Collectively evaluated for impairment | 105,377 | 104,919 |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,033 | 687 |
Recoveries | 264 | |
Provision for loan losses | 324 | 82 |
Ending balance | 1,357 | 1,033 |
Allowance ending balance: | ||
Individually evaluated for impairment | 16 | |
Collectively evaluated for impairment | 1,357 | 1,017 |
Ending Balance | 110,729 | 59,514 |
Ending Balance: Individually evaluated for impairment | 1,589 | 1,671 |
Ending Balance: Collectively evaluated for impairment | 109,140 | 57,843 |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 121 | 42 |
Provision for loan losses | 73 | 79 |
Ending balance | 194 | 121 |
Allowance ending balance: | ||
Individually evaluated for impairment | 50 | 24 |
Collectively evaluated for impairment | 144 | 97 |
Ending Balance | 13,751 | 8,700 |
Ending Balance: Individually evaluated for impairment | 541 | 640 |
Ending Balance: Collectively evaluated for impairment | 13,210 | 6,731 |
Commercial. | Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 136 | 29 |
Recoveries | 4 | 4 |
Provision for loan losses | 51 | 103 |
Ending balance | 191 | 136 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 191 | 136 |
Ending Balance | 19,417 | 11,801 |
Ending Balance: Collectively evaluated for impairment | 19,417 | 13,130 |
Consumer loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 37 | 13 |
Charge-offs | (4) | |
Recoveries | 5 | |
Provision for loan losses | (4) | 23 |
Ending balance | 33 | 37 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 33 | 37 |
Ending Balance | 3,038 | 3,056 |
Ending Balance: Collectively evaluated for impairment | 3,038 | 3,056 |
Unallocated | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 188 | 133 |
Provision for loan losses | (35) | 55 |
Ending balance | 153 | 188 |
Allowance ending balance: | ||
Collectively evaluated for impairment | $ 153 | $ 188 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Impaired loans by loan portfolio (Details) - Real estate - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
One- to four-family residential | ||
Recorded Investment | ||
With no related allowance recorded, Recorded Investment | $ 647 | $ 1,494 |
Total, Recorded Investment | 647 | 1,494 |
Unpaid Principal Balance | ||
With no related allowance recorded, Unpaid Principal Balance | 651 | 1,580 |
Total, Unpaid Principal Balance | 651 | 1,580 |
Average Recorded Investment | ||
With no related allowance recorded, Average Recorded Investment | 694 | 1,562 |
Total, Average Recorded Investment | 694 | 1,562 |
Interest Income Recognized | ||
With no related allowance recorded, Interest Income Recognized | 26 | 62 |
Total, Interest Income Recognized | 26 | 62 |
Commercial | ||
Recorded Investment | ||
With no related allowance recorded, Recorded Investment | 1,589 | 1,183 |
With an allowance recorded, Recorded Investment | 488 | |
Total, Recorded Investment | 1,589 | 1,671 |
Unpaid Principal Balance | ||
With no related allowance recorded, Unpaid Principal Balance | 1,675 | 1,183 |
With an allowance recorded, Unpaid Principal Balance | 561 | |
Total, Unpaid Principal Balance | 1,675 | 1,744 |
Related Allowance | 16 | |
Average Recorded Investment | ||
With no related allowance recorded, Average Recorded Investment | 1,630 | 1,242 |
With an allowance recorded, Average Recorded Investment | 508 | |
Total, Average Recorded Investment | 1,630 | 1,750 |
Interest Income Recognized | ||
With no related allowance recorded, Interest Income Recognized | 59 | 66 |
With an allowance recorded, Interest Income Recognized | 23 | |
Total, Interest Income Recognized | 59 | 89 |
Construction | ||
Recorded Investment | ||
With no related allowance recorded, Recorded Investment | 352 | 376 |
With an allowance recorded, Recorded Investment | 189 | 264 |
Total, Recorded Investment | 541 | 640 |
Unpaid Principal Balance | ||
With no related allowance recorded, Unpaid Principal Balance | 361 | 383 |
With an allowance recorded, Unpaid Principal Balance | 225 | 300 |
Total, Unpaid Principal Balance | 586 | 683 |
Related Allowance | 50 | 24 |
Average Recorded Investment | ||
With no related allowance recorded, Average Recorded Investment | 364 | 380 |
With an allowance recorded, Average Recorded Investment | 226 | 264 |
Total, Average Recorded Investment | $ 590 | 644 |
Interest Income Recognized | ||
With no related allowance recorded, Interest Income Recognized | 12 | |
Total, Interest Income Recognized | $ 12 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Nonaccrual loans by classes of the loan portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,653 | $ 2,815 |
Real estate | One- to four-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 659 | 1,600 |
Real estate | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 453 | 575 |
Real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 541 | $ 640 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses - Key credit ratios and components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total non-accrual loans | $ 1,653 | $ 2,815 | |
Gross total loans | 252,959 | 189,484 | |
Allowance for loan losses | $ 3,145 | $ 2,854 | $ 1,839 |
Percentage of non accrual Loans to total loans | 0.65% | 1.49% | |
Percentage of allowance to non accrual loans | 190.26% | 101.39% | |
Percentage of allowance to total loans outstanding | 1.24% | 1.51% | |
Consumer loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross total loans | $ 3,038 | $ 3,056 | |
Allowance for loan losses | $ 33 | $ 37 | $ 13 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses - Loan Internal Risk Rating System (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | $ 252,959 | $ 189,484 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 249,716 | 184,431 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 625 | 1,214 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 2,618 | 3,839 |
Real estate | One- to four-family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 106,024 | 106,413 |
Real estate | One- to four-family residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 104,368 | 103,557 |
Real estate | One- to four-family residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 625 | 850 |
Real estate | One- to four-family residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 1,031 | 2,006 |
Real estate | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 110,729 | 59,514 |
Real estate | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 109,683 | 57,957 |
Real estate | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 364 | |
Real estate | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 1,046 | 1,193 |
Real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 13,751 | 8,700 |
Real estate | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 13,210 | 8,060 |
Real estate | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 541 | 640 |
Commercial. | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 19,417 | 11,801 |
Commercial. | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 19,417 | 11,801 |
Consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 3,038 | 3,056 |
Consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | $ 3,038 | $ 3,056 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Loan Losses - Loan portfolio by the past due status (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 252,959 | $ 189,484 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 142 | 790 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 46 | 49 |
Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,302 | 1,619 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,490 | 2,458 |
Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 251,469 | 187,026 |
Real estate | One- to four-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 106,024 | 106,413 |
Real estate | One- to four-family residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 142 | 790 |
Real estate | One- to four-family residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 46 | 49 |
Real estate | One- to four-family residential | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 308 | 491 |
Real estate | One- to four-family residential | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 496 | 1,330 |
Real estate | One- to four-family residential | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 105,528 | 105,083 |
Real estate | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 110,729 | 59,514 |
Real estate | Commercial | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 453 | 488 |
Real estate | Commercial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 453 | 488 |
Real estate | Commercial | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 110,276 | 59,026 |
Real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 13,751 | 8,700 |
Real estate | Construction | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 541 | 640 |
Real estate | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 541 | 640 |
Real estate | Construction | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 13,210 | 8,060 |
Commercial. | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 19,417 | 11,801 |
Commercial. | Commercial and industrial | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 19,417 | 11,801 |
Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,038 | 3,056 |
Consumer loans | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 3,038 | $ 3,056 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Loan Losses - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Past Due [Line Items] | ||
Number of loans for which payment deferral was granted | loan | 78 | 71 |
Principal amount of loans under payment deferral | $ 23,500,000 | $ 22,000,000 |
Number of loans returned to normal payment status | loan | 64 | 60 |
Principal amount of loans returned to normal payment status | $ 21,500,000 | $ 18,000,000 |
Number of loans short term payment deferral was granted by the bank are past due greater than 30 days | loan | 14 | |
Principal amount of loans under short term payment deferral and are past due greater than 30 days | $ 2,000,000 | |
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 | |
Real estate | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Number of TDR loans in default | loan | 1 | 1 |
TDRs previously with subsequent default | $ 190,000 | $ 214,000 |
Real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Number of TDR loans in default | loan | 1 | 1 |
TDRs previously with subsequent default | $ 189,000 | $ 264,000 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of premises and equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total Premises and equipment | $ 6,225,000 | $ 6,210,000 |
Accumulated depreciation and amortization | (4,276,000) | (4,104,000) |
Premises and equipment, net | 1,949,000 | 2,106,000 |
Depreciation and amortization expense | 172,000 | 205,000 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and equipment | 559,000 | 559,000 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and equipment | $ 3,506,000 | $ 3,506,000 |
Building and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | 5 years |
Building and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | 40 years |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and equipment | $ 2,141,000 | $ 2,075,000 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | 3 years |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | 10 years |
Work in process | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and equipment | $ 19,000 | $ 70,000 |
Deposits - Schedule of deposits
Deposits - Schedule of deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits | ||
Non-interest-bearing demand deposits | $ 22,028 | $ 21,533 |
Interest-bearing demand deposits | 72,087 | 62,639 |
Savings deposits | 21,778 | 18,412 |
Money market deposits | 58,310 | 42,933 |
Certificates of deposit | 76,927 | 85,899 |
Total deposit | $ 251,130 | $ 231,416 |
Deposits - Maturity (Details)
Deposits - Maturity (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of time deposits | ||
2022 | $ 35,863,000 | |
2023 | 18,237,000 | |
2024 | 7,788,000 | |
2025 | 9,255,000 | |
2026 | 2,971,000 | |
Thereafter | 2,813,000 | |
Total | 76,927,000 | $ 85,899,000 |
Cash, FDIC insured amount | 250,000 | 250,000 |
Cash, uninsured amount | 10,489,000 | 10,750,000 |
Brokered deposits | 1,246,000 | 1,246,000 |
Deposits of related parties | $ 4,648,000 | $ 2,780,000 |
Deposits - Summary of Interest
Deposits - Summary of Interest expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits | ||
Interest-bearing demand deposits | $ 213 | $ 230 |
Savings deposits | 69 | 75 |
Money market deposits | 233 | 226 |
Certificates of deposit | 1,261 | 1,364 |
Total deposit | $ 1,776 | $ 1,895 |
Borrowings (Details)
Borrowings (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 107,520,000 | $ 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 | 1 | 2 |
Letters of credit outstanding | $ 2,500,000 | $ 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 | 0.25% | |
Line of credit | $ 0 |
Borrowings - Schedule of borrow
Borrowings - Schedule of borrowings maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of Long-term Debt [Abstract] | ||
Amount. Total | $ 16,681 | $ 20,553 |
FHLB | ||
Maturities of Long-term Debt [Abstract] | ||
Amount, 2021 | 3,872 | |
Amount, 2022 | 8,124 | 8,124 |
Amount, 2023 | 8,557 | 8,557 |
Amount. Total | $ 16,681 | $ 20,553 |
Weighted Rate, 2021 | 2.37% | |
Weighted Rate, 2022 | 2.11% | 2.11% |
Weighted Rate, 2023 | 2.78% | 2.78% |
Weighted Rate | 2.45% | 2.44% |
Income Taxes - Components of in
Income Taxes - Components of income tax expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Current tax expense, federal | $ 344 | $ 47 |
Deferred federal tax benefit | (174) | (187) |
Deferred state tax expense (benefit) | (455) | 384 |
Change in valuation allowance | 455 | (384) |
Net deferred tax benefit | (174) | (187) |
Income Tax Expense (Benefit) | $ 170 | $ (140) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the statutory federal income tax to federal income tax expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Income tax rate | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Federal income tax at statutory rate | $ 201 | $ (116) |
State income taxes, net of federal benefit | (455) | 384 |
Bank owned life insurance income | (37) | (27) |
Change in valuation allowance | 455 | (384) |
Other | 6 | 3 |
Income Tax Expense (Benefit) | $ 170 | $ (140) |
Income Taxes - Net deferred tax
Income Taxes - Net deferred tax asset (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for loan losses | $ 660 | $ 599 |
Deferred loan fees | 216 | 156 |
Additional minimum liability for retirement plan | 24 | |
Nonaccrual interest | 32 | 30 |
Unrealized loss on available-for-sale securities | 75 | |
Other | 170 | 79 |
State net operating loss carryforwards | 1,083 | 628 |
Gross deferred tax asset | 2,236 | 1,516 |
Valuation allowance | (1,083) | (628) |
Total deferred tax assets, net of valuation allowance | 1,153 | 888 |
Deferred tax liabilities: | ||
Deferred loan costs | 103 | 63 |
Unrealized gain on available-for-sale securities | 56 | |
Property and equipment | 80 | 87 |
Prepaid expenses | 25 | 10 |
Gross deferred tax liabilities | 208 | 216 |
Net Deferred Tax Asset | $ 945 | $ 672 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 1,083,000 | $ 628,000 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | 1,083,000 | 628,000 |
Operating loss carryforwards | 9,415,000 | 5,458,000 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 0 | $ 0 |
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 | Dec. 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 | $ 24,756 | $ 15,900 |
Unfunded commitments under lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | 9,214 | 7,612 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 3,213 | $ 3,638 |
Employee Benefits - Plan's fund
Employee Benefits - Plan's funded status, significant assumptions and amounts recognized in consolidated statements of financial condition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in projected benefit obligation: | ||
Interest cost | $ 40 | $ 43 |
Change in plan assets: | ||
Fair value of plan assets beginning of year | 1,356 | |
Fair value of plan assets at end of year | 1,356 | |
Other liabilities | ||
Change in projected benefit obligation: | ||
Benefit obligation at beginning of year | 1,472 | 1,344 |
Interest cost | 40 | 44 |
Actuarial (gain) loss | (63) | 126 |
Benefits paid | (6) | (7) |
Settlements | (1,443) | (35) |
Projected benefit obligation at end of year | 1,472 | |
Change in plan assets: | ||
Fair value of plan assets beginning of year | 1,356 | 1,223 |
Actual return on plan assets | 89 | 175 |
Benefits paid | (6) | (7) |
Settlements | (1,443) | (35) |
Contribution | $ 4 | |
Fair value of plan assets at end of year | 1,356 | |
Funding deficiency included in other liabilities | (116) | |
Accrued pension cost | (116) | |
Accumulated benefit obligation | $ 1,472 |
Employee Benefits - Components
Employee Benefits - Components of net periodic pension cost (credit) and other comprehensive loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Interest cost | $ 40 | $ 43 |
Expected return on plan assets | (81) | (79) |
Net Periodic Benefit Credit | (41) | (36) |
Gain (loss) during year | (155) | 31 |
Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Loss | $ (196) | $ (5) |
Employee Benefits - Weighted-av
Employee Benefits - Weighted-average assumptions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-average assumptions used to determine the benefit obligation | ||
Discount rate | 2.75% | |
Weighted-average assumptions used to determine the net periodic pension cost | ||
Discount rate | 2.75% | 3.25% |
Expected long-term rate of return on plan assets | 6.00% | 6.50% |
Employee Benefits - Fair value
Employee Benefits - Fair value of Bank's pension plan assets (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | $ 1,356 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 1,274 |
Significant Other Observable Inputs (Level 2) | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 82 |
Mutual funds - equity | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 665 |
Mutual funds - equity | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 665 |
Mutual funds - fixed income | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 600 |
Mutual funds - fixed income | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 600 |
Commercial collective trusts - equity | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 82 |
Commercial collective trusts - equity | Significant Other Observable Inputs (Level 2) | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 82 |
Cash equivalents | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | 9 |
Cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
Fair Value | $ 9 |
Employee Benefits - 401(k) Reti
Employee Benefits - 401(k) Retirement Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of participant's contribution of their plan salary | 5.00% | |
Percentage of discretionary contribution | 2.00% | |
Expense associated with the matching contribution | $ 151,000 | $ 119,000 |
Contribution not to exceed 3% of the participants plan salary | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of participant's contribution | 100.00% | |
Percentage of participant's contribution of their plan salary | 3.00% | |
Contribution of participants plan salary exceeding 3% but not exceeding 5% | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of participant's contribution | 50.00% | |
Percentage of participant's contribution of their plan salary | 3.00% |
Employee Benefits - ESOP Plan (
Employee Benefits - ESOP Plan (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Employee Benefits | |
Average price per share | $ / shares | $ 13.04 |
Related expenses for ESOP | $ | $ 151,000 |
Allocated to participants | 11,109 |
Unearned | 211,071 |
Total ESOP Shares | 222,180 |
Fair value of unearned shares | $ | $ 2,868 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Tier 1 capital (to average assets) | ||
Actual, Amount | $ 35,679 | $ 21,880 |
Actual, Ratio | 11.65 | 8.15 |
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 26,769 | $ 21,471 |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 8.50 | 8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 785 | $ (415) |
Weighted average common shares outstanding | 2,777,250 | |
Less: Average unearned ESOP shares | (222,115) | |
Average shares | 2,555,135 | 0 |
Average shares | 2,555,135 | |
Earnings per common share - basic | $ 0.31 | |
Earnings per common share - diluted | $ 0.31 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Significant Unobservable Inputs (Level 3) - USD ($) | Dec. 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 | $ 139,000 | $ 712,000 |
Valuation allowance on recorded investment in loans | $ 50,000 | $ 40,000 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 26,498 | $ 26,741 |
Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 20,820 | 17,275 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 144 | 184 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 4,685 | 8,418 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 849 | 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 | 849 | 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 | 849 | 864 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 25,649 | 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 | 20,820 | 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 | 144 | 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 | $ 4,685 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 139 | $ 712 |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 139 | 712 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 139 | 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 | $ 139 | $ 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 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 139 | $ 712 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 139 | $ 712 |
Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.540 | 0.092 |
Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.540 | 0.381 |
Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.540 | 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Cash and cash equivalents | $ 26,864 | $ 50,591 |
Debt securities available-for-sale, at fair value | 25,649 | 25,877 |
Equity securities, at fair value | 849 | 864 |
Bank owned life insurance | 7,313 | 6,639 |
Carrying Amounts | ||
Financial assets: | ||
Cash and cash equivalents | 26,864 | 50,591 |
Debt securities available-for-sale, at fair value | 25,649 | 25,877 |
Equity securities, at fair value | 849 | 864 |
Restricted stocks | 884 | 1,046 |
Loans, net | 249,196 | 186,045 |
Accrued interest receivable | 852 | 851 |
Bank owned life insurance | 7,313 | 6,639 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 174,203 | 145,517 |
Certificates of deposit | 76,927 | 85,899 |
Long-Term borrowings | 16,681 | 20,553 |
Accrued interest payable | 195 | 228 |
Estimated Fair Values | ||
Financial assets: | ||
Cash and cash equivalents | 26,864 | 50,591 |
Debt securities available-for-sale, at fair value | 25,649 | 25,877 |
Equity securities, at fair value | 849 | 864 |
Restricted stocks | 884 | 1,046 |
Loans, net | 253,558 | 188,311 |
Accrued interest receivable | 852 | 851 |
Bank owned life insurance | 7,313 | 6,639 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 174,203 | 145,517 |
Certificates of deposit | 77,291 | 87,431 |
Long-Term borrowings | 16,872 | 21,279 |
Accrued interest payable | $ 195 | $ 228 |
Non-Interest Revenues (Details)
Non-Interest Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Noninterest income (in scope for Topic 606) | $ 641 | $ 491 |
Noninterest income (out of scope for Topic 606) | 149 | 175 |
Total Noninterest Income | 790 | 666 |
Service charges on deposit accounts | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income (in scope for Topic 606) | 176 | 183 |
Debit card income | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income (in scope for Topic 606) | 216 | 183 |
Other service charges | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income (in scope for Topic 606) | 89 | 75 |
Other non-interest income | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income (in scope for Topic 606) | $ 160 | $ 50 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | |||
Cash and cash equivalents | $ 26,864 | $ 50,591 | |
Other Assets | 428 | 633 | |
Total Assets | 314,929 | 275,324 | |
Liabilities | |||
Accrued expenses and other liabilities | 1,284 | 1,386 | |
Total Liabilities | 269,095 | 253,355 | |
Stockholders' Equity | |||
Total Stockholders' Equity | 45,834 | 21,969 | $ 22,203 |
Total Liabilities and Stockholders' Equity | 314,929 | $ 275,324 | |
Parent | |||
Assets | |||
Cash and cash equivalents | 7,779 | ||
ESOP Loan Receivable | 2,744 | ||
Investment In Subsidiary Bank | 35,396 | ||
Other Assets | 4 | ||
Total Assets | 45,923 | ||
Liabilities | |||
Due to the Bank | 29 | ||
Accrued expenses and other liabilities | 60 | ||
Total Liabilities | 89 | ||
Stockholders' Equity | |||
Total Stockholders' Equity | 45,834 | ||
Total Liabilities and Stockholders' Equity | $ 45,923 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Noninterest Expenses | ||
Total Noninterest Expenses | $ 7,410 | $ 7,094 |
Income (loss) before income tax expense (benefit) | 955 | (555) |
Income Tax Expense (Benefit) | 170 | (140) |
Net Income (Loss) | 785 | $ (415) |
Parent | ||
Interest and Dividend Income | ||
Interest Income on ESOP Loan | 43 | |
Interest on Cash and Cash Equivalents | 1 | |
Total Interest Income | 44 | |
Noninterest Expenses | ||
Non interest SEC Expense | 96 | |
Total Noninterest Expenses | 96 | |
Income (loss) before income tax expense (benefit) | (52) | |
Equity in Undisturbed Income of Subsidiary | 826 | |
Income Tax Expense (Benefit) | (11) | |
Net Income (Loss) | $ 785 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 785 | $ (415) |
Adjustments to reconcile change in net income (loss) to net cash provided by (used in) operating activities: | ||
ESOP allocation of shares | 145 | |
Increase in accrued expenses and other liabilities | 58 | 806 |
Net Cash Provided by Operating Activities | 1,388 | 206 |
Cash Flows from Investing Activities | ||
Net Cash Used in Investing Activities | (64,258) | (20,483) |
Cash Flows from Financing Activities | ||
Issuance of common stock | 26,199 | |
Purchase of ESOP shares | (2,898) | |
Net Cash Provided by Financing Activities | 39,143 | 57,899 |
(Decrease) Increase in cash and cash equivalents | (23,727) | 37,622 |
Cash and Cash Equivalents, Beginning of Period | 50,591 | 12,969 |
Cash and Cash Equivalents, End of Period | 26,864 | 50,591 |
Parent | ||
Cash Flows from Operating Activities | ||
Net Income (Loss) | 785 | |
Adjustments to reconcile change in net income (loss) to net cash provided by (used in) operating activities: | ||
Equity in Undisturbed Income of Subsidiary | (826) | |
ESOP allocation of shares | 145 | |
(Increase) in other assets | (4) | |
Increase in accrued expenses and other liabilities | 89 | |
Net Cash Provided by Operating Activities | 189 | |
Cash Flows from Investing Activities | ||
ESOP loan | (2,898) | |
ESOP loan payments | 154 | |
Investment in subsidiary | (12,967) | |
Net Cash Used in Investing Activities | (15,711) | |
Cash Flows from Financing Activities | ||
Issuance of common stock | 26,199 | |
Purchase of ESOP shares | (2,898) | |
Net Cash Provided by Financing Activities | 23,301 | |
(Decrease) Increase in cash and cash equivalents | 7,779 | |
Cash and Cash Equivalents, Beginning of Period | 0 | |
Cash and Cash Equivalents, End of Period | $ 7,779 | $ 0 |