Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
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 E Lincoln Highway | |
Entity Address, City or Town | Coatesville | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19320 | |
City Area Code | 610 | |
Local Phone Number | 384-8282 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares, par value $0.01 per share | |
Trading Symbol | PBBK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 2,739,461 | |
Entity Central Index Key | 0001849670 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 18,622 | $ 15,508 |
Federal funds sold | 4,016 | 11,256 |
Interest bearing deposits with banks | 100 | 100 |
Cash and cash equivalents | 22,738 | 26,864 |
Debt securities available-for-sale, at fair value | 37,239 | 25,649 |
Equity securities, at fair value | 757 | 849 |
Restricted stocks, at cost | 1,982 | 884 |
Loans receivable, net of allowance for loan losses of $3,787 at September 30, 2022 and $3,145 at December 31, 2021 | 301,381 | 249,196 |
Premises and equipment, net | 1,864 | 1,949 |
Deferred income taxes, net | 1,587 | 945 |
Accrued interest receivable | 1,096 | 852 |
Bank owned life insurance | 7,444 | 7,313 |
Other assets | 651 | 428 |
Total Assets | 376,739 | 314,929 |
Liabilities | ||
Deposits | 289,628 | 251,130 |
Long-term borrowings | 40,412 | 16,681 |
Accrued expenses and other liabilities | 2,081 | 1,284 |
Total Liabilities | 332,121 | 269,095 |
Commitments and contingencies - see note 8 | ||
Stockholders' Equity | ||
Preferred Stock, $0.01 par value, 10,000,000 shares authorized; -0- issued and outstanding at September 30, 2022 and December 31, 2021 | 0 | 0 |
Common Stock, $0.01 par value, 40,000,000 shares authorized; 2,739,461 and 2,777,250 issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 28 | 28 |
Additional paid-in capital | 25,678 | 26,176 |
Retained earnings | 23,671 | 22,665 |
Unearned ESOP shares, 211,071 shares at September 30, 2022 and December 31, 2021 | (2,753) | (2,753) |
Accumulated other comprehensive loss | (2,006) | (282) |
Total Stockholders' Equity | 44,618 | 45,834 |
Total Liabilities and Stockholders' Equity | $ 376,739 | $ 314,929 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Allowance for loan losses | $ 3,787 | $ 3,145 |
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 | 40,000,000 |
Common stock, shares issued | 2,739,461 | 2,777,250 |
Common stock, shares outstanding | 2,739,461 | 2,777,250 |
Unearned ESOP shares | 211,071 | 211,071 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest and Dividend Income | ||||
Loans, including fees | $ 3,362 | $ 2,552 | $ 9,015 | $ 7,081 |
Securities | 150 | 77 | 331 | 255 |
Other | 171 | 18 | 272 | 29 |
Total Interest and Dividend Income | 3,683 | 2,647 | 9,618 | 7,365 |
Interest Expense | ||||
Deposits | 466 | 434 | 1,374 | 1,348 |
Borrowings | 229 | 104 | 562 | 317 |
Total Interest Expense | 695 | 538 | 1,936 | 1,665 |
Net interest income | 2,988 | 2,109 | 7,682 | 5,700 |
Provision for Loan Losses | 346 | 83 | 639 | 221 |
Net interest income after provision for loan losses | 2,642 | 2,026 | 7,043 | 5,479 |
Noninterest Income | ||||
Revenue under 606 | 130 | 132 | 379 | 413 |
(Loss) gain on equity investments | (33) | 8 | (100) | (6) |
Bank owned life insurance income | 44 | 46 | 131 | 130 |
Total Noninterest Income | 141 | 186 | 410 | 537 |
Noninterest Expenses | ||||
Salaries and employee benefits | 1,216 | 1,051 | 3,256 | 2,865 |
Occupancy and equipment | 173 | 153 | 491 | 441 |
Data and item processing | 254 | 241 | 747 | 728 |
Advertising and marketing | 37 | 37 | 84 | 65 |
Professional fees | 186 | 135 | 503 | 305 |
Directors' fees | 60 | 60 | 182 | 182 |
FDIC insurance premiums | 38 | 59 | 76 | 163 |
Pennsylvania shares tax | 84 | 0 | 247 | 0 |
Debit card expenses | 36 | 33 | 105 | 106 |
Other | 187 | 186 | 522 | 507 |
Total Noninterest Expenses | 2,271 | 1,955 | 6,213 | 5,362 |
Income before income tax expense | 512 | 257 | 1,240 | 654 |
Income Tax Expense | 98 | 47 | 234 | 114 |
Net Income | $ 414 | $ 210 | $ 1,006 | $ 540 |
Earnings per common share - basic | $ 0.16 | $ 0.08 | $ 0.39 | $ 0.21 |
Earnings per common share - diluted | $ 0.16 | $ 0.08 | $ 0.39 | $ 0.21 |
Service charges on deposit accounts | ||||
Noninterest Income | ||||
Revenue under 606 | $ 40 | $ 38 | $ 136 | $ 129 |
Debit card income | ||||
Noninterest Income | ||||
Revenue under 606 | 51 | 51 | 149 | 165 |
Other service charges | ||||
Noninterest Income | ||||
Revenue under 606 | 19 | 21 | 55 | 68 |
Other non-interest income | ||||
Noninterest Income | ||||
Revenue under 606 | $ 20 | $ 22 | $ 39 | $ 51 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Comprehensive (Loss) Income | ||||
Net Income | $ 414 | $ 210 | $ 1,006 | $ 540 |
Unrealized losses on debt securities available-for-sale: | ||||
Unrealized holding losses arising during period | (581) | 0 | (2,182) | (347) |
Tax effect | 122 | 0 | 458 | 72 |
Other comprehensive loss | (459) | 0 | (1,724) | (275) |
Total Comprehensive (Loss) Income | $ (45) | $ 210 | $ (718) | $ 265 |
Condensed Consolidated Statem_3
Condensed 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, 2020 | $ 21,880 | $ 89 | $ 21,969 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 540 | 540 | ||||
Common stock issued | $ 28 | $ 26,171 | 26,199 | |||
ESOP shares committed to be released | $ (2,898) | (2,898) | ||||
Other comprehensive loss | (275) | (275) | ||||
Ending Balance at Sep. 30, 2021 | 28 | 26,171 | 22,420 | (2,898) | (186) | 45,535 |
Beginning Balance at Jun. 30, 2021 | 22,210 | (186) | 22,024 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 210 | 210 | ||||
Common stock issued | 28 | 26,171 | 26,199 | |||
ESOP shares committed to be released | (2,898) | (2,898) | ||||
Other comprehensive loss | 0 | |||||
Ending Balance at Sep. 30, 2021 | 28 | 26,171 | 22,420 | (2,898) | (186) | 45,535 |
Beginning Balance at Dec. 31, 2021 | 28 | 26,176 | 22,665 | (2,753) | (282) | 45,834 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,006 | 1,006 | ||||
Repurchased common stock | 498 | 498 | ||||
Other comprehensive loss | (1,724) | (1,724) | ||||
Ending Balance at Sep. 30, 2022 | 28 | 25,678 | 23,671 | (2,753) | (2,006) | 44,618 |
Beginning Balance at Jun. 30, 2022 | 28 | 26,176 | 23,257 | (2,753) | (1,547) | 45,161 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 414 | 414 | ||||
Repurchased common stock | 498 | 498 | ||||
Other comprehensive loss | (459) | (459) | ||||
Ending Balance at Sep. 30, 2022 | $ 28 | $ 25,678 | $ 23,671 | $ (2,753) | $ (2,006) | $ 44,618 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,006 | $ 540 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 639 | 221 |
Depreciation and amortization | 220 | 172 |
Gain on disposal of premises and equipment | 0 | (4) |
Net accretion of securities premiums and discounts | (92) | (24) |
Deferred income tax benefit | (184) | (169) |
Loss on equity securities | 100 | 6 |
Deferred loan fees, net | 58 | 144 |
Earnings on bank owned life insurance | (131) | (130) |
Increase in accrued interest receivable and other assets | (268) | (72) |
Increase in accrued expenses and other liabilities | 550 | 320 |
Net Cash Provided by Operating Activities | 1,898 | 1,004 |
Cash Flows from Investing Activities | ||
Purchases | (19,853) | (4,998) |
Maturities, calls, and principal repayments | 6,173 | 3,470 |
Dividends on equity securities reinvested | (8) | (8) |
(Purchase) redemption of restricted stocks | (1,098) | 159 |
Purchase of additional Bank owned life insurance | 0 | (500) |
Net increase in loans receivable | (52,882) | (40,268) |
Purchases of premises and equipment | (87) | (25) |
Net Cash Used in Investing Activities | (67,755) | (42,170) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 38,498 | 17,131 |
Stock subscription proceeds | 0 | 26,199 |
Repurchased common stock | (498) | 0 |
Purchase of ESOP shares | 0 | (2,898) |
Advances of borrowings | 29,000 | 0 |
Repayments of borrowings | (5,269) | (3,855) |
Net Cash Provided by Financing Activities | 61,731 | 36,577 |
Decrease in cash and cash equivalents | (4,126) | (4,589) |
Cash and Cash Equivalents, Beginning of Period | 26,864 | 50,591 |
Cash and Cash Equivalents, End of Period | 22,738 | 46,002 |
Supplementary Cash Flows Information | ||
Interest paid | 1,893 | 1,707 |
Right-to-use lease assets and liability | 247 | 0 |
Income taxes paid | 274 | 70 |
Supplementary Non-Cash Flows Information | ||
Unrealized loss on securities available-for-sale | $ (2,182) | $ (347) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation | |
Basis of Presentation | Organization and Nature of Operations PB Bankshares, Inc., a Maryland Corporation (the “Company”) is the holding company of Presence 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 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 the Bank’s investment portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. The Conversion and Our Organizational Structure On July 14, 2021, the Company completed its initial public offering and the mutual-to-stock conversion of the Bank. The Bank is now a wholly owned subsidiary of the Company. The shares of the Company’s common stock began trading on the Nasdaq Capital Market on July 15, 2021, under the ticker symbol “PBBK.” The Company sold 2,777,250 shares of common stock at $10.00 per share for gross offering proceeds of $27,773,000. The Company’s Employee Stock Ownership Plan (the “ESOP”) purchased 8% or 222,180 shares of the Company’s common stock in the open market. Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2022 are not necessarily indicative of the results for the year ending December 31, 2022 or any other interim periods. For further information, refer to the audited consolidated financial statements and notes thereto for the year ended December 31, 2021 as filed in the annual report on Form 10-K filed with the Securities and Exchange Commission on March 25, 2022 and annual report on Form 10-K/A filed with the Securities and Exchange Commission on April 29, 2022. The Company has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, and estimation of fair values. While management uses available information to recognize estimated losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions and underlying collateral values, if any. In addition, the FDIC and PADOB, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. These agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examinations. |
Debt and Equity Securities
Debt and Equity Securities | 9 Months Ended |
Sep. 30, 2022 | |
Debt and Equity Securities | |
Debt and Equity Securities | 3. Debt and Equity Securities The amortized cost, gross unrealized gains and losses, and fair value of securities available-for-sale and equity securities are as follows (in thousands): Gross Unrealized Gross Unrealized September 30, 2022 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,243 $ — $ (2,169) $ 19,074 Treasury securities 14,935 — (87) 14,848 Mortgage-backed securities 101 2 — 103 Collateralized mortgage obligations 3,500 — (286) 3,214 Total available-for-sale debt securities $ 39,779 $ 2 $ (2,542) 37,239 Equity securities: Mutual funds (fixed income) $ 757 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 The table below indicates the length of time individual available-for-sale securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ — $ — $ 19,073 $ (2,169) $ 19,073 $ (2,169) Treasury securities 14,848 (87) — — 14,848 (87) Collateralized mortgage obligations 2,687 (215) 528 (71) 3,215 (286) $ 17,535 $ (302) $ 19,601 $ (2,240) $ 37,136 $ (2,542) 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) As of September 30, 2022 and December 31, 2021, 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 or collateralized mortgage obligations held in the securities portfolio as of September 30, 2022 and December 31, 2021. At September 30, 2022, 47 agency bonds, three treasury securities and 37 collateralized mortgage obligations were in an unrealized loss position. At December 31, 2021, 47 agency bonds and five collateralized mortgage obligations were in an unrealized loss position. In analyzing an issuer’s financial condition, management considers whether downgrades by bond rating agencies have occurred and industry analysts’ reports. As of September 30, 2022, 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 September 30, 2022. There were no securities sold during the three or nine months ended September 30, 2022 or September 30, 2021. The amortized cost and fair value of debt securities available-for-sale at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands). Available-for-Sale Amortized Cost Fair Value Yield Due less than one year $ 14,935 $ 14,848 1.69 % Due one year through five years 21,243 19,074 0.62 Due after five years through ten years — — — Mortgage-backed securities 101 103 4.71 Collateralized mortgage obligations 3,500 3,214 1.95 $ 39,779 $ 37,239 1.15 % At September 30, 2022 and December 31, 2021, the Company had securities totaling $1,804,000 and $1,965,000, respectively, pledged to secure borrowings. At September 30, 2022 and December 31, 2021, the Company had securities totaling $21,613,000 and $13,028,000, respectively, pledged primarily for public fund depositors. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2022 | |
Loans Receivable and Allowance for Loan Losses | |
Loans Receivable and Allowance for Loan Losses | 4. Loans Receivable and Allowance for Loan Losses Major classifications of net loans receivable at September 30, 2022 and December 31, 2021 are as follows (in thousands): September 30, December 31, 2022 2021 Real estate: One-to four-family residential $ 111,535 $ 106,024 Commercial 150,452 118,266 Construction 24,936 13,751 Commercial and industrial 12,144 11,880 Consumer and other 7,031 3,038 306,098 252,959 Deferred loan fees, net (930) (618) Allowance for loan losses (3,787) (3,145) $ 301,381 $ 249,196 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended September 30, 2022 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,012 $ — $ — $ 23 $ 1,035 Commercial 1,933 — — (119) 1,814 Construction 212 — — 24 236 Commercial and industrial 109 — 2 11 122 Consumer 28 — — — 28 Unallocated 145 — — 407 552 $ 3,439 $ — $ 2 $ 346 $ 3,787 The following tables summarize the activity in the allowance for loan losses by loan class for the nine months ended September 30, 2022 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of September 30, 2022 (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 $ 1,217 $ — $ — $ (182) $ 1,035 $ — $ 1,035 Commercial 1,357 — — 457 1,814 52 1,762 Construction 194 — — 42 236 — 236 Commercial and industrial 191 — 3 (72) 122 — 122 Consumer and other 33 — — (5) 28 — 28 Unallocated 153 — — 399 552 — 552 $ 3,145 $ — $ 3 $ 639 $ 3,787 $ 52 $ 3,735 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 111,535 $ 241 $ 111,294 Commercial 150,452 3,956 146,496 Construction 24,936 568 24,368 Commercial and industrial 12,144 263 11,881 Consumer 7,031 — 7,031 $ 306,098 $ 5,028 $ 301,070 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended September 30, 2021 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,315 $ — $ — $ (6) $ 1,309 Commercial 991 — — 103 1,094 Construction 201 — — 11 212 Commercial and industrial 219 — 1 (17) 203 Consumer 37 — — — 37 Unallocated 230 — — (8) 222 $ 2,993 $ — $ 1 $ 83 $ 3,077 The following tables summarize the activity in the allowance for loan losses by loan class for the nine months ended September 30, 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 $ — $ — $ (30) $ 1,309 $ — $ 1,309 Commercial 1,033 — — 61 1,094 — 1,094 Construction 121 — — 91 212 50 162 Commercial and industrial 136 — 2 65 203 — 203 Consumer and other 37 — — — 37 — 37 Unallocated 188 — — 34 222 — 222 $ 2,854 $ — $ 2 $ 221 $ 3,077 $ 50 $ 3,027 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 118,266 1,589 116,677 Construction 13,751 541 13,210 Commercial and industrial 11,880 — 11,880 Consumer 3,038 — 3,038 $ 252,959 $ 2,777 $ 250,182 The following table summarizes information in regard to impaired loans by loan portfolio class as of September 30, 2022 (in thousands): Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Real estate: One- to four-family residential $ 241 $ 243 $ — Commercial 3,530 3,530 — Construction 568 668 — Commercial and industrial 263 263 — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — Commercial 426 541 52 Construction — — — Commercial and industrial — — — Total: Real estate: One- to four-family residential $ 241 $ 243 $ — Commercial 3,956 4,071 52 Construction 568 668 — Commercial and industrial 263 263 — The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2021 (in thousands): Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Real estate: One- to four-family residential $ 647 $ 651 $ — Commercial 1,589 1,675 — Construction 352 361 — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — Commercial — — — Construction 189 225 50 Total: Real estate: One- to four-family residential $ 647 $ 651 $ — Commercial 1,589 1,675 — Construction 541 586 50 The following table summarizes information in regard to impaired loans by loan portfolio class for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Real estate: One- to four-family residential $ 355 $ 3 $ 1,114 $ 10 $ 244 $ 10 $ 1,102 $ 35 Commercial 3,551 46 1,621 15 3,598 133 1,641 45 Construction 575 — 361 — 606 — 367 — Commercial and industrial 269 4 — — 280 11 — — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — $ — $ — $ — Commercial 342 — — — 439 — — — Construction — — 201 — — — 226 — Commercial and industrial — — — — — — — — Total: Real estate: One- to four-family residential $ 355 $ 3 $ 1,114 $ 10 $ 244 $ 10 $ 1,102 $ 35 Commercial 3,893 46 1,621 15 4,037 133 1,641 45 Construction 575 — 562 — 606 — 593 — Commercial and industrial 269 4 — — 280 11 — — The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Real estate: One- to four-family residential $ 434 $ 659 Commercial 426 453 Construction 483 541 $ 1,343 $ 1,653 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 September 30, 2022 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 110,361 $ 611 $ 563 $ — $ 111,535 Commercial 147,022 — 3,430 — 150,452 Construction 24,368 — 568 — 24,936 Commercial and industrial 11,180 700 264 — 12,144 Consumer and other 7,031 — — — 7,031 $ 299,962 $ 1,311 $ 4,825 $ — $ 306,098 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 117,220 — 1,046 — 118,266 Construction 13,210 — 541 — 13,751 Commercial and industrial 11,880 — — — 11,880 Consumer and other 3,038 — — — 3,038 $ 249,716 $ 625 $ 2,618 $ — $ 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 September 30, 2022 (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 Receivable Accruing Real estate: One- to four-family residential $ 305 $ 18 $ 33 $ 356 $ 111,179 $ 111,535 $ — Commercial 85 — 426 511 149,941 150,452 — Construction — 333 150 483 24,453 24,936 — Commercial and industrial — — — — 12,144 12,144 — Consumer and other — 13 — 13 7,018 7,031 — $ 390 $ 364 $ 609 $ 1,363 $ 304,735 $ 306,098 $ — 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 Receivable Accruing Real estate: One- to four-family residential $ 142 $ 46 $ 308 $ 496 $ 105,528 $ 106,024 $ — Commercial — — 453 453 117,813 118,266 — Construction — — 541 541 13,210 13,751 — Commercial and industrial — — — — 11,880 11,880 — Consumer and other — — — — 3,038 3,038 — $ 142 $ 46 $ 1,302 $ 1,490 $ 251,469 $ 252,959 $ — 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. 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 three and nine months ended September 30, 2022 and 2021 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 troubled debt restructuring and one construction loan troubled debt restructuring completed in prior years are in default for the three and nine months ended September 30, 2022 and 2021, had an aggregate balance of $322,000 and $415,000 as of September 30, 2022 and September 30, 2021, respectively. Total troubled debt restructurings were $873,000 and $949,000 as of September 30, 2022 and December 31, 2021, respectively. At September 30, 2022 and December 31, 2021, there was no other real estate owned. There was no real estate in process of foreclosure as of September 30, 2022 and December 31, 2021. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Leases | 5. Leases On January 1, 2022, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. The implementation of the new standard resulted in recognition of right-of-use assets and lease liabilities Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases as of and for the three and nine month periods ended September 30, 2022 (dollars in thousands): Right-to-use assets $ 199 Lease liability 201 Weighted average remaining lease term 3.15 years Weighted average discount rate 1.50% Three Months Nine Months Ended Ended September 30, September 30, 2022 2022 Operating lease cost $ 15 $ 47 Short-term lease cost 0 0 Total lease costs $ 15 $ 47 Cash paid for amounts included in the measurement of lease liabilities $ 16 $ 48 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: As of September 30, Lease payments due (in thousands) 2022 Three months ending December 31, 2022 $ 16 Twelve months ending December 31, 2023 66 Twelve months ending December 31, 2024 64 Twelve months ending December 31, 2025 56 Twelve months ending December 31, 2026 4 Total undiscounted cash flows $ 206 Discount 5 Lease Liability 201 |
Long-Term Borrowings
Long-Term Borrowings | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Borrowings | |
Long-Term Borrowings | 6. Long-Term Borrowings The Company has an unsecured line of credit with Atlantic Community Bankers Bank (“ACBB”) of up to $3,000,000, expiring on June 30, 2023. The ACBB unsecured line of credit was increased to $7,500,000 subsequent to September 30, 2022. Interest on the line of credit is charged at fed funds rate plus 0.25%. The Company had no outstanding borrowings under this line of credit at September 30, 2022 and December 31, 2021. 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 September 30, 2022 and December 31, 2021. The Company has an open-ended line of credit (short-term borrowing) of $45,630,000 to obtain advances from the Federal Home Loan Bank (“FHLB”). Interest on the line of credit is charged at the FHLB’s overnight rate of 3.11% and 0.28% at September 30, 2022 and December 31, 2021 respectively. The Company had no outstanding borrowings under this line of credit at September 30, 2022 and December 31, 2021. Maximum borrowing capacity with the FHLB was approximately $145,930,000 and $107,520,000 at September 30, 2022 and December 31, 2021, respectively. The Company has two unfunded letters of credit with FHLB for $8,300,000 at September 30, 2022 and one letter of credit with FHLB for $2,500,000 at December 31, 2021 that is pledged to secure public funds. Borrowings from the FHLB at September 30, 2022 and December 31, 2021 consist of the following (dollars in thousands): September 30, December 31, 2022 2021 Weighted Weighted Maturity Amount Rate Amount Rate 2022 3,595 2.36 8,124 2.11 2023 8,557 2.78 8,557 2.78 2024 9,000 3.24 — — 2026 2,762 1.32 — — 2027 13,400 2.07 — — 2032 3,098 1.83 — — $ 40,412 2.43 % $ 16,681 2.45 % |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 9 Months Ended |
Sep. 30, 2022 | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 7. 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Commitments to grant loans $ 36,541 $ 24,756 Unfunded commitments under lines of credit 11,579 9,214 Standby letters of credit 3,544 3,213 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 | 9 Months Ended |
Sep. 30, 2022 | |
Contingencies | |
Contingencies | 8. Contingencies In the normal course of business, the Company is subject to various lawsuits involving matters generally incidental to its business. As of September 30, 2022 management is of the opinion that the ultimate liability, if any, resulting from any pending actions or proceedings will not have a material effect on the consolidated statement of financial condition or of operations of the Company. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Matters | |
Regulatory Matters | 9. Regulatory Matters Bank 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 September 30, 2022, 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 September 30, 2022, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’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, 2021 and September 30, 2022. In April 2020, the federal banking agencies issued an interim final rule that made temporary changes to the CBLR framework, pursuant to section 4012 of the CARES Act, and a second interim final rule that provided a graduated increase in the community bank leverage ratio requirement after the expiration of the temporary changes implemented pursuant to section 4012 of the CARES Act. The community bank leverage ratio removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than the required minimum will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) and, if applicable, will be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. Under the final rules the community bank leverage ratio minimum requirement is 8.5% for calendar year 2021 and 9% for calendar year 2022 and beyond. The final rule allows for a two-quarter grace period to improve a ratio that falls below the required level, provided that the bank maintains a leverage ratio of 7.5% for calendar year 2021 and 8% for calendar year 2022 and beyond. 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 September 30, 2022, the Bank was a qualifying community banking organization as defined by the federal banking agencies and elected to measure capital adequacy under the CBLR framework. Actual and required capital amounts (in thousands) and ratios are presented below at quarter-end. To be Well Capitalized under Prompt Corrective Action September 30, 2022 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 36,749 9.73 % $ 33,998 9.00 % 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 % |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share | |
Earnings Per Share | 10. Earnings Per Share The factors used in the earning per share computation follow (dollars in thousands, except per share data): Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2022 2021 2021 Net income $ 414 $ 1,006 $ 210 $ 540 Weighted average common shares outstanding 2,762,919 2,772,420 2,777,250 2,777,250 Less: Average unearned ESOP shares (211,071) (211,071) (222,180) (222,180) Average shares 2,551,848 2,561,349 2,555,070 2,555,070 Basic and diluted earnings per share $ 0.16 $ 0.39 $ 0.08 $ 0.21 There were no dilutive shares outstanding for the three and nine months ended September 30, 2022 and September 30, 2021. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 11. 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 quarter ends, and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each quarter end. An asset’s or liability’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the 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 For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2022 and December 31, 2021 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2022 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 19,074 $ — $ 19,074 $ — Treasury securities 14,848 14,848 — — Mortgage-backed securities 103 — 103 — Collateralized mortgage obligations 3,214 — 3,214 — Mutual funds 757 757 — — $ 37,996 $ 15,605 $ 22,391 $ — 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 $ — For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2022 and December 31, 2021 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2022 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 374 $ — $ — $ 374 $ 374 $ — $ — $ 374 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 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 September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 374 Appraisal of collateral Selling expenses and discounts (1) 60.4% - 60.4% (60.4%) 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%) (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: September 30, 2022 December 31, 2021 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 22,738 $ 22,738 $ 26,864 $ 26,864 Debt securities - available-for-sale 1 & 2 37,239 37,239 25,649 25,649 Equity securities 1 757 757 849 849 Restricted stocks 2 1,982 1,982 884 884 Loans, net 3 301,381 309,755 249,196 253,558 Accrued interest receivable 1 1,096 1,096 852 852 Bank owned life insurance 2 7,444 7,444 7,313 7,313 Financial liabilities: Demand deposits, savings, and money market 1 192,925 192,925 174,203 174,203 Certificates of deposit 2 96,703 91,282 76,927 77,291 Long-Term borrowings 2 40,412 39,374 16,681 16,872 Accrued interest payable 1 238 238 195 195 |
Non-Interest Revenues
Non-Interest Revenues | 9 Months Ended |
Sep. 30, 2022 | |
Non-Interest Revenues | |
Non-Interest Revenues | 12. Noninterest Revenues Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investments. In addition, certain noninterest 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 guidance. Topic 606 is applicable to noninterest 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. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Fees on Deposit Accounts Service charges on deposit accounts consist of fees on depository accounts, which 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 noninterest 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 table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Noninterest income 2022 2021 2022 2021 In scope of Topic 606 Service charges on deposit accounts $ 40 38 $ 136 129 Debit card income 51 51 149 165 Other service charges 19 21 55 68 Other noninterest income 20 22 39 51 Noninterest income (in scope for Topic 606) 130 132 379 413 Noninterest income (out of scope for Topic 606) 11 54 31 124 Total noninterest income $ 141 $ 186 $ 410 $ 537 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 noninterest 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 September 30, 2022 and December 31, 2021, 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. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Event. | |
Subsequent Event | 13. Subsequent Event On November 7, 2022 the Bank entered into a purchase agreement to sell to a third party, the Bank’s corporate headquarters and branch location in Coatesville, Pennsylvania for $950,000. The Bank will lease a portion of the building to use for corporate offices and maintain a branch location. The estimated gain on sale of the land and building is expected to be between $725,000 and $925,000, recognized in the fourth quarter of 2022 or first quarter of 2023. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation | |
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 (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 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 the Bank’s investment portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. |
The Conversion and Our Organizational Structure | The Conversion and Our Organizational Structure On July 14, 2021, the Company completed its initial public offering and the mutual-to-stock conversion of the Bank. The Bank is now a wholly owned subsidiary of the Company. The shares of the Company’s common stock began trading on the Nasdaq Capital Market on July 15, 2021, under the ticker symbol “PBBK.” The Company sold 2,777,250 shares of common stock at $10.00 per share for gross offering proceeds of $27,773,000. The Company’s Employee Stock Ownership Plan (the “ESOP”) purchased 8% or 222,180 shares of the Company’s common stock in the open market. |
Interim Financial Information | Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2022 are not necessarily indicative of the results for the year ending December 31, 2022 or any other interim periods. For further information, refer to the audited consolidated financial statements and notes thereto for the year ended December 31, 2021 as filed in the annual report on Form 10-K filed with the Securities and Exchange Commission on March 25, 2022 and annual report on Form 10-K/A filed with the Securities and Exchange Commission on April 29, 2022. The Company has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. |
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 consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, and estimation of fair values. While management uses available information to recognize estimated losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions and underlying collateral values, if any. In addition, the FDIC and PADOB, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. These agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examinations. |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements This section provides a summary description of recent ASUs issued by the FASB to the ASC that had or that management expects may have an impact on the financial statements issued upon adoption. The Company is classified as an emerging growth company and has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Effective dates reflect this election. Recently Issued, But Not Yet Effective Accounting Pronouncements During September 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 hired a vendor to assist with expected credit loss projections. The internal team has begun training with the vendor, running parallel calculations, validating the model and updating related polices and controls. During May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief.” The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The effective date and transition methodology for the amendments in ASU 2019-05 are the same as in ASU 2016-13. The Company is currently assessing the impact that ASU 2019-05 will have on its consolidated financial statements. During November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” This ASU addresses issues raised by stakeholders during the implementation of ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The effective date and transition methodology for the amendments in ASU 2019-11 are the same as in ASU 2016-13. The Company is currently assessing the impact that ASU 2019-11 will have 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 or other financial instruments that are directly or indirectly influenced by LIBOR. In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this ASU should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted ASU 2016-13, the effective dates for ASU 2022-02 are the same as the effective dates in ASU 2016-13. Early adoption is permitted if an entity has adopted ASU 2016-13. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is currently assessing the impact that ASU 2022-02 will have on its consolidated financial statements. Recently Adopted 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 September 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 has adopted ASU 2016-02 and the impact was not material to the consolidated financial statements. The implementation of ASU 2016-02 resulted in recognition of right-of-use assets and lease liabilities |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 and equity securities are as follows (in thousands): Gross Unrealized Gross Unrealized September 30, 2022 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,243 $ — $ (2,169) $ 19,074 Treasury securities 14,935 — (87) 14,848 Mortgage-backed securities 101 2 — 103 Collateralized mortgage obligations 3,500 — (286) 3,214 Total available-for-sale debt securities $ 39,779 $ 2 $ (2,542) 37,239 Equity securities: Mutual funds (fixed income) $ 757 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 |
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 available-for-sale securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ — $ — $ 19,073 $ (2,169) $ 19,073 $ (2,169) Treasury securities 14,848 (87) — — 14,848 (87) Collateralized mortgage obligations 2,687 (215) 528 (71) 3,215 (286) $ 17,535 $ (302) $ 19,601 $ (2,240) $ 37,136 $ (2,542) 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) |
Schedule of debt securities by contractual maturity | Available-for-Sale Amortized Cost Fair Value Yield Due less than one year $ 14,935 $ 14,848 1.69 % Due one year through five years 21,243 19,074 0.62 Due after five years through ten years — — — Mortgage-backed securities 101 103 4.71 Collateralized mortgage obligations 3,500 3,214 1.95 $ 39,779 $ 37,239 1.15 % |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Loans Receivable and Allowance for Loan Losses | |
Summary of major classifications of net loans receivable | Major classifications of net loans receivable at September 30, 2022 and December 31, 2021 are as follows (in thousands): September 30, December 31, 2022 2021 Real estate: One-to four-family residential $ 111,535 $ 106,024 Commercial 150,452 118,266 Construction 24,936 13,751 Commercial and industrial 12,144 11,880 Consumer and other 7,031 3,038 306,098 252,959 Deferred loan fees, net (930) (618) Allowance for loan losses (3,787) (3,145) $ 301,381 $ 249,196 |
Schedule of activity in the allowance for loan losses by loan class | The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended September 30, 2022 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,012 $ — $ — $ 23 $ 1,035 Commercial 1,933 — — (119) 1,814 Construction 212 — — 24 236 Commercial and industrial 109 — 2 11 122 Consumer 28 — — — 28 Unallocated 145 — — 407 552 $ 3,439 $ — $ 2 $ 346 $ 3,787 The following tables summarize the activity in the allowance for loan losses by loan class for the nine months ended September 30, 2022 and information in regard to the allowance for loan losses and the recorded investment in loans receivable by loan class as of September 30, 2022 (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 $ 1,217 $ — $ — $ (182) $ 1,035 $ — $ 1,035 Commercial 1,357 — — 457 1,814 52 1,762 Construction 194 — — 42 236 — 236 Commercial and industrial 191 — 3 (72) 122 — 122 Consumer and other 33 — — (5) 28 — 28 Unallocated 153 — — 399 552 — 552 $ 3,145 $ — $ 3 $ 639 $ 3,787 $ 52 $ 3,735 Loans Receivable Ending Ending Balance: Balance: Individually Collectively Evaluated Evaluated Ending for for Balance Impairment Impairment Real estate: One- to four-family residential $ 111,535 $ 241 $ 111,294 Commercial 150,452 3,956 146,496 Construction 24,936 568 24,368 Commercial and industrial 12,144 263 11,881 Consumer 7,031 — 7,031 $ 306,098 $ 5,028 $ 301,070 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended September 30, 2021 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,315 $ — $ — $ (6) $ 1,309 Commercial 991 — — 103 1,094 Construction 201 — — 11 212 Commercial and industrial 219 — 1 (17) 203 Consumer 37 — — — 37 Unallocated 230 — — (8) 222 $ 2,993 $ — $ 1 $ 83 $ 3,077 The following tables summarize the activity in the allowance for loan losses by loan class for the nine months ended September 30, 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 $ — $ — $ (30) $ 1,309 $ — $ 1,309 Commercial 1,033 — — 61 1,094 — 1,094 Construction 121 — — 91 212 50 162 Commercial and industrial 136 — 2 65 203 — 203 Consumer and other 37 — — — 37 — 37 Unallocated 188 — — 34 222 — 222 $ 2,854 $ — $ 2 $ 221 $ 3,077 $ 50 $ 3,027 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 118,266 1,589 116,677 Construction 13,751 541 13,210 Commercial and industrial 11,880 — 11,880 Consumer 3,038 — 3,038 $ 252,959 $ 2,777 $ 250,182 |
Summary of impaired loans by loan portfolio | The following table summarizes information in regard to impaired loans by loan portfolio class as of September 30, 2022 (in thousands): Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Real estate: One- to four-family residential $ 241 $ 243 $ — Commercial 3,530 3,530 — Construction 568 668 — Commercial and industrial 263 263 — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — Commercial 426 541 52 Construction — — — Commercial and industrial — — — Total: Real estate: One- to four-family residential $ 241 $ 243 $ — Commercial 3,956 4,071 52 Construction 568 668 — Commercial and industrial 263 263 — The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2021 (in thousands): Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Real estate: One- to four-family residential $ 647 $ 651 $ — Commercial 1,589 1,675 — Construction 352 361 — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — Commercial — — — Construction 189 225 50 Total: Real estate: One- to four-family residential $ 647 $ 651 $ — Commercial 1,589 1,675 — Construction 541 586 50 The following table summarizes information in regard to impaired loans by loan portfolio class for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Real estate: One- to four-family residential $ 355 $ 3 $ 1,114 $ 10 $ 244 $ 10 $ 1,102 $ 35 Commercial 3,551 46 1,621 15 3,598 133 1,641 45 Construction 575 — 361 — 606 — 367 — Commercial and industrial 269 4 — — 280 11 — — With an allowance recorded: Real estate: One- to four-family residential $ — $ — $ — $ — $ — $ — $ — $ — Commercial 342 — — — 439 — — — Construction — — 201 — — — 226 — Commercial and industrial — — — — — — — — Total: Real estate: One- to four-family residential $ 355 $ 3 $ 1,114 $ 10 $ 244 $ 10 $ 1,102 $ 35 Commercial 3,893 46 1,621 15 4,037 133 1,641 45 Construction 575 — 562 — 606 — 593 — Commercial and industrial 269 4 — — 280 11 — — |
Schedule of nonaccrual loans by classes of the loan portfolio | The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Real estate: One- to four-family residential $ 434 $ 659 Commercial 426 453 Construction 483 541 $ 1,343 $ 1,653 |
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 September 30, 2022 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 110,361 $ 611 $ 563 $ — $ 111,535 Commercial 147,022 — 3,430 — 150,452 Construction 24,368 — 568 — 24,936 Commercial and industrial 11,180 700 264 — 12,144 Consumer and other 7,031 — — — 7,031 $ 299,962 $ 1,311 $ 4,825 $ — $ 306,098 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 117,220 — 1,046 — 118,266 Construction 13,210 — 541 — 13,751 Commercial and industrial 11,880 — — — 11,880 Consumer and other 3,038 — — — 3,038 $ 249,716 $ 625 $ 2,618 $ — $ 252,959 |
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 September 30, 2022 (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 Receivable Accruing Real estate: One- to four-family residential $ 305 $ 18 $ 33 $ 356 $ 111,179 $ 111,535 $ — Commercial 85 — 426 511 149,941 150,452 — Construction — 333 150 483 24,453 24,936 — Commercial and industrial — — — — 12,144 12,144 — Consumer and other — 13 — 13 7,018 7,031 — $ 390 $ 364 $ 609 $ 1,363 $ 304,735 $ 306,098 $ — 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 Receivable Accruing Real estate: One- to four-family residential $ 142 $ 46 $ 308 $ 496 $ 105,528 $ 106,024 $ — Commercial — — 453 453 117,813 118,266 — Construction — — 541 541 13,210 13,751 — Commercial and industrial — — — — 11,880 11,880 — Consumer and other — — — — 3,038 3,038 — $ 142 $ 46 $ 1,302 $ 1,490 $ 251,469 $ 252,959 $ — |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Schedule of information about leases | The following tables present information about the Company’s leases as of and for the three and nine month periods ended September 30, 2022 (dollars in thousands): Right-to-use assets $ 199 Lease liability 201 Weighted average remaining lease term 3.15 years Weighted average discount rate 1.50% Three Months Nine Months Ended Ended September 30, September 30, 2022 2022 Operating lease cost $ 15 $ 47 Short-term lease cost 0 0 Total lease costs $ 15 $ 47 Cash paid for amounts included in the measurement of lease liabilities $ 16 $ 48 |
Schedule of maturity analysis of operating lease liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: As of September 30, Lease payments due (in thousands) 2022 Three months ending December 31, 2022 $ 16 Twelve months ending December 31, 2023 66 Twelve months ending December 31, 2024 64 Twelve months ending December 31, 2025 56 Twelve months ending December 31, 2026 4 Total undiscounted cash flows $ 206 Discount 5 Lease Liability 201 |
Long-Term Borrowings (Tables)
Long-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Borrowings | |
Schedule of borrowings maturity | Borrowings from the FHLB at September 30, 2022 and December 31, 2021 consist of the following (dollars in thousands): September 30, December 31, 2022 2021 Weighted Weighted Maturity Amount Rate Amount Rate 2022 3,595 2.36 8,124 2.11 2023 8,557 2.78 8,557 2.78 2024 9,000 3.24 — — 2026 2,762 1.32 — — 2027 13,400 2.07 — — 2032 3,098 1.83 — — $ 40,412 2.43 % $ 16,681 2.45 % |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Commitments to grant loans $ 36,541 $ 24,756 Unfunded commitments under lines of credit 11,579 9,214 Standby letters of credit 3,544 3,213 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Matters | |
Schedule of actual and required capital amounts and ratios | Actual and required capital amounts (in thousands) and ratios are presented below at quarter-end. To be Well Capitalized under Prompt Corrective Action September 30, 2022 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 36,749 9.73 % $ 33,998 9.00 % 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 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share | |
Schedule of factors used in earning per share computation | The factors used in the earning per share computation follow (dollars in thousands, except per share data): Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2022 2021 2021 Net income $ 414 $ 1,006 $ 210 $ 540 Weighted average common shares outstanding 2,762,919 2,772,420 2,777,250 2,777,250 Less: Average unearned ESOP shares (211,071) (211,071) (222,180) (222,180) Average shares 2,551,848 2,561,349 2,555,070 2,555,070 Basic and diluted earnings per share $ 0.16 $ 0.39 $ 0.08 $ 0.21 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2022 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 19,074 $ — $ 19,074 $ — Treasury securities 14,848 14,848 — — Mortgage-backed securities 103 — 103 — Collateralized mortgage obligations 3,214 — 3,214 — Mutual funds 757 757 — — $ 37,996 $ 15,605 $ 22,391 $ — 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 $ — |
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 September 30, 2022 and December 31, 2021 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2022 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 374 $ — $ — $ 374 $ 374 $ — $ — $ 374 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 |
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 September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 374 Appraisal of collateral Selling expenses and discounts (1) 60.4% - 60.4% (60.4%) 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%) (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 | The carrying amounts and fair values of the Company’s financial instruments as of the indicated dates are presented in the following table: September 30, 2022 December 31, 2021 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 22,738 $ 22,738 $ 26,864 $ 26,864 Debt securities - available-for-sale 1 & 2 37,239 37,239 25,649 25,649 Equity securities 1 757 757 849 849 Restricted stocks 2 1,982 1,982 884 884 Loans, net 3 301,381 309,755 249,196 253,558 Accrued interest receivable 1 1,096 1,096 852 852 Bank owned life insurance 2 7,444 7,444 7,313 7,313 Financial liabilities: Demand deposits, savings, and money market 1 192,925 192,925 174,203 174,203 Certificates of deposit 2 96,703 91,282 76,927 77,291 Long-Term borrowings 2 40,412 39,374 16,681 16,872 Accrued interest payable 1 238 238 195 195 |
Non-Interest Revenues (Tables)
Non-Interest Revenues (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Non-Interest Revenues | |
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 | Three Months Ended Nine Months Ended September 30, September 30, Noninterest income 2022 2021 2022 2021 In scope of Topic 606 Service charges on deposit accounts $ 40 38 $ 136 129 Debit card income 51 51 149 165 Other service charges 19 21 55 68 Other noninterest income 20 22 39 51 Noninterest income (in scope for Topic 606) 130 132 379 413 Noninterest income (out of scope for Topic 606) 11 54 31 124 Total noninterest income $ 141 $ 186 $ 410 $ 537 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended | |||
Jul. 30, 2021 shares | Jul. 14, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | |
Subsidiary, Sale of Stock [Line Items] | ||||
Number of branches | item | 3 | |||
Purchase of ESOP | $ | $ 0 | $ 2,898,000 | ||
IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued for offering | shares | 2,777,250 | |||
Stock price per share | $ / shares | $ 10 | |||
Gross proceeds from offering | $ | $ 27,773,000 | |||
Percentage of commons stock purchased under ESOP | 8% | |||
Total ESOP Shares | shares | 222,180 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Details) - USD ($) | Sep. 30, 2022 | Jan. 01, 2022 |
Recent Accounting Pronouncements | ||
Right-of-use assets | $ 199,000 | |
Lease liabilities | $ 201,000 | |
ASU 2016-02 | ||
Recent Accounting Pronouncements | ||
Right-of-use assets | $ 247,000 | |
Lease liabilities | $ 247,000 |
Debt and Equity Securities - Sc
Debt and Equity Securities - Schedule of amortized cost, gross unrealized gains and losses and fair value securities available-for-sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 39,779 | $ 26,007 |
Gross Unrealized Gains | 2 | 69 |
Gross Unrealized Losses | (2,542) | (427) |
Fair Value | 37,239 | 25,649 |
Equity Securities - Fair Value | 757 | 849 |
Agency bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 21,243 | 21,241 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,169) | (421) |
Fair Value | 19,074 | 20,820 |
Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 14,935 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (87) | |
Fair Value | 14,848 | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 101 | 129 |
Gross Unrealized Gains | 2 | 15 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 103 | 144 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 3,500 | 4,637 |
Gross Unrealized Gains | 0 | 54 |
Gross Unrealized Losses | (286) | (6) |
Fair Value | $ 3,214 | $ 4,685 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 Months | $ 17,535 | $ 19,992 |
12 Months or More | 19,601 | 1,707 |
Total Fair Value | 37,136 | 21,699 |
Unrealized Losses | ||
Less than 12 Months | (302) | (385) |
12 Months or More | (2,240) | (42) |
Total Unrealized Losses | (2,542) | (427) |
Agency bonds | ||
Fair Value | ||
Less than 12 Months | 19,113 | |
12 Months or More | 19,073 | 1,707 |
Total Fair Value | 19,073 | 20,820 |
Unrealized Losses | ||
Less than 12 Months | (379) | |
12 Months or More | (2,169) | (42) |
Total Unrealized Losses | (2,169) | (421) |
Treasury securities | ||
Fair Value | ||
Less than 12 Months | 14,848 | |
12 Months or More | 0 | |
Total Fair Value | 14,848 | |
Unrealized Losses | ||
Less than 12 Months | (87) | |
12 Months or More | 0 | |
Total Unrealized Losses | (87) | |
Collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 2,687 | 879 |
12 Months or More | 528 | 0 |
Total Fair Value | 3,215 | 879 |
Unrealized Losses | ||
Less than 12 Months | (215) | (6) |
12 Months or More | (71) | 0 |
Total Unrealized Losses | $ (286) | $ (6) |
Debt and Equity Securities - Na
Debt and Equity Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) item | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Securities sold | $ | $ 0 | $ 0 | $ 0 | $ 0 | |
Pledged to secure borrowings | $ | 1,804,000 | 1,804,000 | $ 1,965,000 | ||
Pledged primarily for public fund depositors | $ | $ 21,613,000 | $ 21,613,000 | $ 13,028,000 | ||
Private label mortgage-backed securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of debt securities available for sale | 0 | 0 | |||
Agency bonds | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of unrealized loss positions | 47 | 47 | 47 | ||
Treasury securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of unrealized loss positions | 3 | 3 | |||
Collateralized mortgage obligations | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of debt securities available for sale | 0 | 0 | |||
Number of unrealized loss positions | 37 | 37 | 5 |
Debt and Equity Securities - _3
Debt and Equity Securities - Schedule of debt securities by contractual maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available for sale securities, Amortized cost | ||
Due less than one year | $ 14,935 | |
Due one year through five years | 21,243 | |
Due after five years through ten years | 0 | |
Amortized cost | 39,779 | $ 26,007 |
Available for sale securities, Fair value | ||
Due less than one year | 14,848 | |
Due one year through five years | 19,074 | |
Due after five years through ten years | 0 | |
Fair Value | $ 37,239 | 25,649 |
Available for sale - yield | ||
Due less than one year - yield | 1.69% | |
Due one year through five years - yield | 0.62% | |
Due after five years through ten years - yield | 0% | |
Available for sale - weighted average yield | 1.15% | |
Mortgage-backed securities | ||
Available for sale securities, Amortized cost | ||
Amortized cost | $ 101 | |
Amortized cost | 101 | 129 |
Available for sale securities, Fair value | ||
Fair Value | 103 | |
Fair Value | $ 103 | 144 |
Available for sale - yield | ||
Available for sale - yield | 4.71% | |
Collateralized mortgage obligations | ||
Available for sale securities, Amortized cost | ||
Amortized cost | $ 3,500 | |
Amortized cost | 3,500 | 4,637 |
Available for sale securities, Fair value | ||
Fair Value | 3,214 | |
Fair Value | $ 3,214 | $ 4,685 |
Available for sale - yield | ||
Available for sale - yield | 1.95% |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Major classifications of net loans receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and leases receivable, gross | $ 306,098 | $ 252,959 | ||||
Deferred loan fees, net | (930) | (618) | ||||
Allowance for loan losses | (3,787) | $ (3,439) | (3,145) | $ (3,077) | $ (2,993) | $ (2,854) |
Loans and leases receivable, net | 301,381 | 249,196 | ||||
Real estate | One- to four-family residential | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and leases receivable, gross | 111,535 | 106,024 | ||||
Allowance for loan losses | (1,035) | (1,012) | (1,217) | (1,309) | (1,315) | (1,339) |
Real estate | Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and leases receivable, gross | 150,452 | 118,266 | ||||
Allowance for loan losses | (1,814) | (1,933) | (1,357) | (1,094) | (991) | (1,033) |
Real estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and leases receivable, gross | 24,936 | 13,751 | ||||
Allowance for loan losses | (236) | (212) | (194) | (212) | (201) | (121) |
Commercial. | Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and leases receivable, gross | 12,144 | 11,880 | ||||
Allowance for loan losses | (122) | (109) | (191) | (203) | (219) | (136) |
Consumer loans | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and leases receivable, gross | 7,031 | 3,038 | ||||
Allowance for loan losses | $ (28) | $ (28) | $ (33) | $ (37) | $ (37) | $ (37) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Allowance for loan losses by loan class (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 3,439 | $ 2,993 | $ 3,145 | $ 2,854 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 2 | 1 | 3 | 2 | |
Provision for loan losses | 346 | 83 | 639 | 221 | |
Ending balance | 3,787 | 3,077 | 3,787 | 3,077 | |
Allowance ending balance: | |||||
Individually evaluated for impairment | 52 | 50 | 52 | 50 | |
Collectively evaluated for impairment | 3,735 | 3,027 | 3,735 | 3,027 | |
Ending Balance | 306,098 | 306,098 | |||
Ending Balance: Individually evaluated for impairment | 5,028 | 5,028 | $ 2,777 | ||
Ending Balance: Collectively evaluated for impairment | 301,070 | 301,070 | 250,182 | ||
Real estate | One- to four-family residential | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,012 | 1,315 | 1,217 | 1,339 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 23 | (6) | (182) | (30) | |
Ending balance | 1,035 | 1,309 | 1,035 | 1,309 | |
Allowance ending balance: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 1,035 | 1,309 | 1,035 | 1,309 | |
Ending Balance | 111,535 | 111,535 | |||
Ending Balance: Individually evaluated for impairment | 241 | 241 | 647 | ||
Ending Balance: Collectively evaluated for impairment | 111,294 | 111,294 | 105,377 | ||
Real estate | Commercial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,933 | 991 | 1,357 | 1,033 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (119) | 103 | 457 | 61 | |
Ending balance | 1,814 | 1,094 | 1,814 | 1,094 | |
Allowance ending balance: | |||||
Individually evaluated for impairment | 52 | 0 | 52 | 0 | |
Collectively evaluated for impairment | 1,762 | 1,094 | 1,762 | 1,094 | |
Ending Balance | 150,452 | 150,452 | |||
Ending Balance: Individually evaluated for impairment | 3,956 | 3,956 | 1,589 | ||
Ending Balance: Collectively evaluated for impairment | 146,496 | 146,496 | 116,677 | ||
Real estate | Construction | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 212 | 201 | 194 | 121 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 24 | 11 | 42 | 91 | |
Ending balance | 236 | 212 | 236 | 212 | |
Allowance ending balance: | |||||
Individually evaluated for impairment | 0 | 50 | 0 | 50 | |
Collectively evaluated for impairment | 236 | 162 | 236 | 162 | |
Ending Balance | 24,936 | 24,936 | |||
Ending Balance: Individually evaluated for impairment | 568 | 568 | 541 | ||
Ending Balance: Collectively evaluated for impairment | 24,368 | 24,368 | 13,210 | ||
Commercial. | Commercial and industrial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 109 | 219 | 191 | 136 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 2 | 1 | 3 | 2 | |
Provision for loan losses | 11 | (17) | (72) | 65 | |
Ending balance | 122 | 203 | 122 | 203 | |
Allowance ending balance: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 122 | 203 | 122 | 203 | |
Ending Balance | 12,144 | 12,144 | |||
Ending Balance: Individually evaluated for impairment | 263 | 263 | 0 | ||
Ending Balance: Collectively evaluated for impairment | 11,881 | 11,881 | 11,880 | ||
Consumer loans | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 28 | 37 | 33 | 37 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | (5) | 0 | ||
Ending balance | 28 | 37 | 28 | 37 | |
Allowance ending balance: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 28 | 37 | 28 | 37 | |
Ending Balance | 7,031 | 7,031 | |||
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | ||
Ending Balance: Collectively evaluated for impairment | 7,031 | 7,031 | $ 3,038 | ||
Unallocated | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 145 | 230 | 153 | 188 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 407 | (8) | 399 | 34 | |
Ending balance | 552 | 222 | 552 | 222 | |
Allowance ending balance: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | $ 552 | $ 222 | $ 552 | $ 222 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Impaired loans by loan portfolio (Details) - Real estate - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
One- to four-family residential | |||||
Recorded Investment | |||||
With no related allowance recorded, Recorded Investment | $ 241 | $ 241 | $ 647 | ||
With an allowance recorded, Recorded Investment | 0 | 0 | 0 | ||
Total, Recorded Investment | 241 | 241 | 647 | ||
Unpaid Principal Balance | |||||
With no related allowance recorded, Unpaid Principal Balance | 243 | 243 | 651 | ||
With an allowance recorded, Unpaid Principal Balance | 0 | 0 | 0 | ||
Total, Unpaid Principal Balance | 243 | 243 | 651 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | |||||
With no related allowance recorded, Average Recorded Investment | 355 | $ 1,114 | 244 | $ 1,102 | |
With an allowance recorded, Average Recorded Investment | 0 | 0 | 0 | 0 | |
Total, Average Recorded Investment | 355 | 1,114 | 244 | 1,102 | |
Interest Income Recognized | |||||
With no related allowance recorded, Interest Income Recognized | 3 | 10 | 10 | 35 | |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total, Interest Income Recognized | 3 | 10 | 10 | 35 | |
Commercial | |||||
Recorded Investment | |||||
With no related allowance recorded, Recorded Investment | 3,530 | 3,530 | 1,589 | ||
With an allowance recorded, Recorded Investment | 426 | 426 | 0 | ||
Total, Recorded Investment | 3,956 | 3,956 | 1,589 | ||
Unpaid Principal Balance | |||||
With no related allowance recorded, Unpaid Principal Balance | 3,530 | 3,530 | 1,675 | ||
With an allowance recorded, Unpaid Principal Balance | 541 | 541 | 0 | ||
Total, Unpaid Principal Balance | 4,071 | 4,071 | 1,675 | ||
Related Allowance | 52 | 52 | 0 | ||
Average Recorded Investment | |||||
With no related allowance recorded, Average Recorded Investment | 3,551 | 1,621 | 3,598 | 1,641 | |
With an allowance recorded, Average Recorded Investment | 342 | 0 | 439 | 0 | |
Total, Average Recorded Investment | 3,893 | 1,621 | 4,037 | 1,641 | |
Interest Income Recognized | |||||
With no related allowance recorded, Interest Income Recognized | 46 | 15 | 133 | 45 | |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total, Interest Income Recognized | 46 | 15 | 133 | 45 | |
Construction | |||||
Recorded Investment | |||||
With no related allowance recorded, Recorded Investment | 568 | 568 | 352 | ||
With an allowance recorded, Recorded Investment | 0 | 0 | 189 | ||
Total, Recorded Investment | 568 | 568 | 541 | ||
Unpaid Principal Balance | |||||
With no related allowance recorded, Unpaid Principal Balance | 668 | 668 | 361 | ||
With an allowance recorded, Unpaid Principal Balance | 0 | 0 | 225 | ||
Total, Unpaid Principal Balance | 668 | 668 | 586 | ||
Related Allowance | 0 | 0 | $ 50 | ||
Average Recorded Investment | |||||
With no related allowance recorded, Average Recorded Investment | 575 | 361 | 606 | 367 | |
With an allowance recorded, Average Recorded Investment | 201 | 226 | |||
Total, Average Recorded Investment | 575 | 562 | 606 | 593 | |
Interest Income Recognized | |||||
With no related allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial and industrial | |||||
Recorded Investment | |||||
With no related allowance recorded, Recorded Investment | 263 | 263 | |||
With an allowance recorded, Recorded Investment | 0 | 0 | |||
Total, Recorded Investment | 263 | 263 | |||
Unpaid Principal Balance | |||||
With no related allowance recorded, Unpaid Principal Balance | 263 | 263 | |||
With an allowance recorded, Unpaid Principal Balance | 0 | 0 | |||
Total, Unpaid Principal Balance | 263 | 263 | |||
Related Allowance | 0 | 0 | |||
Average Recorded Investment | |||||
With no related allowance recorded, Average Recorded Investment | 269 | 280 | |||
Total, Average Recorded Investment | 269 | 280 | |||
Interest Income Recognized | |||||
With no related allowance recorded, Interest Income Recognized | 4 | 11 | |||
Total, Interest Income Recognized | $ 4 | $ 0 | $ 11 | $ 0 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Nonaccrual loans by classes of the loan portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,343 | $ 1,653 |
Real estate | One- to four-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 434 | 659 |
Real estate | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 426 | 453 |
Real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 483 | $ 541 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Loan Internal Risk Rating System (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | $ 306,098 | $ 252,959 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 299,962 | 249,716 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 1,311 | 625 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 4,825 | 2,618 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Real estate | One- to four-family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 111,535 | 106,024 |
Real estate | One- to four-family residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 110,361 | 104,368 |
Real estate | One- to four-family residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 611 | 625 |
Real estate | One- to four-family residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 563 | 1,031 |
Real estate | One- to four-family residential | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Real estate | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 150,452 | 118,266 |
Real estate | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 147,022 | 117,220 |
Real estate | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Real estate | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 3,430 | 1,046 |
Real estate | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 24,936 | 13,751 |
Real estate | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 24,368 | 13,210 |
Real estate | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Real estate | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 568 | 541 |
Real estate | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Commercial. | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 12,144 | 11,880 |
Commercial. | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 11,180 | 11,880 |
Commercial. | Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 700 | 0 |
Commercial. | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 264 | 0 |
Commercial. | Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 7,031 | 3,038 |
Consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 7,031 | 3,038 |
Consumer loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | 0 | 0 |
Consumer loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and leases receivable, gross | $ 0 | $ 0 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Loan portfolio by the past due status (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 306,098 | $ 252,959 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 390 | 142 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 364 | 46 |
Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 609 | 1,302 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,363 | 1,490 |
Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 304,735 | 251,469 |
Real estate | One- to four-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 111,535 | 106,024 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Real estate | One- to four-family residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 305 | 142 |
Real estate | One- to four-family residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 18 | 46 |
Real estate | One- to four-family residential | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 33 | 308 |
Real estate | One- to four-family residential | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 356 | 496 |
Real estate | One- to four-family residential | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 111,179 | 105,528 |
Real estate | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 150,452 | 118,266 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Real estate | Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 85 | 0 |
Real estate | Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Real estate | Commercial | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 426 | 453 |
Real estate | Commercial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 511 | 453 |
Real estate | Commercial | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 149,941 | 117,813 |
Real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 24,936 | 13,751 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Real estate | Construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Real estate | Construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 333 | 0 |
Real estate | Construction | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 150 | 541 |
Real estate | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 483 | 541 |
Real estate | Construction | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 24,453 | 13,210 |
Commercial. | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 12,144 | 11,880 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Commercial. | Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial. | Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial. | Commercial and industrial | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial. | Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial. | Commercial and industrial | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 12,144 | 11,880 |
Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 7,031 | 3,038 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Consumer loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 13 | 0 |
Consumer loans | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 13 | 0 |
Consumer loans | Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 7,018 | $ 3,038 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) loan | Dec. 31, 2021 USD ($) | |
Financing Receivable, Past Due [Line Items] | |||||
Number of loans modified as TDRs | loan | 0 | 0 | 0 | 0 | |
TDRs previously with subsequent default | $ 322,000 | $ 415,000 | |||
Loans modified balance | $ 873,000 | 873,000 | $ 949,000 | ||
Other real estate owned that was related to residential real estate | 0 | 0 | 0 | ||
Residential real estate in process of foreclosure | $ 0 | $ 0 | $ 0 | ||
Real estate | Commercial | |||||
Financing Receivable, Past Due [Line Items] | |||||
Number of TDR loans in default | loan | 1 | 1 | 1 | 1 | |
Real estate | Construction | |||||
Financing Receivable, Past Due [Line Items] | |||||
Number of TDR loans in default | loan | 1 | 1 | 1 | 1 |
Leases (Details)
Leases (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Jan. 01, 2022 | |
Leases | ||
Right-of-use assets | $ 199,000 | |
Lease liabilities | $ 201,000 | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
ASU 2016-02 | ||
Leases | ||
Right-of-use assets | $ 247,000 | |
Lease liabilities | $ 247,000 |
Leases - Schedule of informatio
Leases - Schedule of information about leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Lease cost | ||
Right-of-use assets | $ 199 | $ 199 |
Lease Liability | $ 201 | $ 201 |
Weighted average remaining lease term | 3 years 1 month 24 days | 3 years 1 month 24 days |
Weighted average discount rate | 1.50% | 1.50% |
Operating lease cost | $ 15 | $ 47 |
Short-term lease cost | 0 | 0 |
Total lease costs | 15 | 47 |
Cash paid for amounts included in the measurement of lease liabilities | $ 16 | $ 48 |
Leases - Schedule of maturity a
Leases - Schedule of maturity analysis of operating lease liabilities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Maturity of operating lease liabilities | |
Three months ending December 31, 2022 | $ 16 |
Twelve months ending December 31, 2023 | 66 |
Twelve months ending December 31, 2024 | 64 |
Twelve months ending December 31, 2025 | 56 |
Twelve months ending December 31, 2026 | 4 |
Total undiscounted cash flows | 206 |
Discount | 5 |
Lease Liability | $ 201 |
Long-Term Borrowings (Details)
Long-Term Borrowings (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) item | Dec. 31, 2021 USD ($) item | Oct. 01, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 145,930,000 | $ 107,520,000 | |
FHLB | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 45,630,000 | ||
Interest on line of credit | 3.11% | 0.28% | |
Line of credit | $ 0 | $ 0 | |
Number of letters of credit | item | 1 | ||
Number of unfunded letters of credit | item | 2 | ||
Letters of credit outstanding | $ 8,300,000 | $ 2,500,000 | |
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 | $ 7,500,000 | |
Line of credit | $ 0 | $ 0 | |
Atlantic Community Bankers Bank | Fed funds rate | |||
Debt Instrument [Line Items] | |||
Interest on line of credit | 0.25% |
Long-Term Borrowings - Schedule
Long-Term Borrowings - Schedule of borrowings maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Maturities of Long-term Debt [Abstract] | ||
Amount. Total | $ 40,412 | $ 16,681 |
FHLB | ||
Maturities of Long-term Debt [Abstract] | ||
Amount, 2022 | 3,595 | 8,124 |
Amount, 2023 | 8,557 | 8,557 |
Amount, 2024 | 9,000 | 0 |
Amount, 2026 | 2,762 | 0 |
Amount, 2027 | 13,400 | 0 |
Amount, 2032 | 3,098 | 0 |
Amount. Total | $ 40,412 | $ 16,681 |
Weighted Rate, 2022 | 2.36% | 2.11% |
Weighted Rate, 2023 | 2.78% | 2.78% |
Weighted Rate, 2024 | 3.24% | 0% |
Weighted Rate, 2026 | 1.32% | 0% |
Weighted Rate, 2027 | 2.07% | 0% |
Weighted Rate, 2032 | 1.83% | 0% |
Weighted Rate | 2.43% | 2.45% |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments to grant loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 36,541 | $ 24,756 |
Unfunded commitments under lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | 11,579 | 9,214 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 3,544 | $ 3,213 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Tier 1 capital (to average assets) | ||
Actual, Amount | $ 36,749 | $ 35,679 |
Actual, Ratio | 0.0973 | 0.1165 |
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 33,998 | $ 26,769 |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.0900 | 0.0850 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share | ||||
Net income | $ 414 | $ 210 | $ 1,006 | $ 540 |
Weighted average common shares outstanding | 2,762,919 | 2,777,250 | 2,772,420 | 2,777,250 |
Less: Average unearned ESOP shares | (211,071) | (222,180) | (211,071) | (222,180) |
Average shares | 2,551,848 | 2,555,070 | 2,561,349 | 2,555,070 |
Average shares | 2,551,848 | 2,555,070 | 2,555,070 | |
Earnings per common share - basic | $ 0.16 | $ 0.08 | $ 0.39 | $ 0.21 |
Earnings per common share - diluted | $ 0.16 | $ 0.08 | $ 0.39 | $ 0.21 |
Antidilutive securities | 0 | 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Significant Unobservable Inputs (Level 3) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of recorded investment in loans | $ 374,000 | $ 139,000 |
Valuation allowance on recorded investment in loans | $ 52,000 | $ 50,000 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 37,996 | $ 26,498 |
Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 19,074 | 20,820 |
Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 14,848 | |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 103 | 144 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 3,214 | 4,685 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 757 | 849 |
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 | 15,605 | 849 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 14,848 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
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 | 757 | 849 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 22,391 | 25,649 |
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 | 19,074 | 20,820 |
Significant Other Observable Inputs (Level 2) | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
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 | 103 | 144 |
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 | 3,214 | 4,685 |
Significant Other Observable Inputs (Level 2) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 374 | $ 139 |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 374 | 139 |
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 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 374 | 139 |
Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 374 | $ 139 |
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 | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 374 | $ 139 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 374 | $ 139 |
Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.604 | 0.540 |
Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.604 | 0.540 |
Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.604 | 0.540 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Cash and cash equivalents | $ 22,738 | $ 26,864 |
Debt securities available-for-sale, at fair value | 37,239 | 25,649 |
Equity securities, at fair value | 757 | 849 |
Bank owned life insurance | 7,444 | 7,313 |
Carrying Amounts | ||
Financial assets: | ||
Cash and cash equivalents | 22,738 | 26,864 |
Debt securities available-for-sale, at fair value | 37,239 | 25,649 |
Equity securities, at fair value | 757 | 849 |
Restricted stocks | 1,982 | 884 |
Loans, net | 301,381 | 249,196 |
Accrued interest receivable | 1,096 | 852 |
Bank owned life insurance | 7,444 | 7,313 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 192,925 | 174,203 |
Certificates of deposit | 96,703 | 76,927 |
Long-Term borrowings | 40,412 | 16,681 |
Accrued interest payable | 238 | 195 |
Estimated Fair Values | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 22,738 | 26,864 |
Equity securities, at fair value | 757 | 849 |
Accrued interest receivable | 1,096 | 852 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 192,925 | 174,203 |
Accrued interest payable | 238 | 195 |
Estimated Fair Values | Quoted Prices in Active Markets for Identical Assets (Level 1) & Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Debt securities available-for-sale, at fair value | 37,239 | 25,649 |
Estimated Fair Values | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Restricted stocks | 1,982 | 884 |
Bank owned life insurance | 7,444 | 7,313 |
Financial liabilities: | ||
Certificates of deposit | 91,282 | 77,291 |
Long-Term borrowings | 39,374 | 16,872 |
Estimated Fair Values | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans, net | $ 309,755 | $ 253,558 |
Non-Interest Revenues (Details)
Non-Interest Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | $ 130 | $ 132 | $ 379 | $ 413 |
Noninterest income (out of scope for Topic 606) | 11 | 54 | 31 | 124 |
Total Noninterest Income | 141 | 186 | $ 410 | 537 |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | |||
Service charges on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | 40 | 38 | $ 136 | 129 |
Debit card income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | 51 | 51 | 149 | 165 |
Other service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | 19 | 21 | 55 | 68 |
Other non-interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | $ 20 | $ 22 | $ 39 | $ 51 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Nov. 07, 2022 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Minimum | Forecast | |||
Subsequent Event [Line Items] | |||
Estimated gain on sale | $ 725 | $ 725 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Maximum | Forecast | |||
Subsequent Event [Line Items] | |||
Estimated gain on sale | $ 925 | $ 925 | |
Corporate headquarters and branch location in Coatesville, Pennsylvania | |||
Subsequent Event [Line Items] | |||
Purchase agreement | $ 950 |