Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40893 | |
Entity Registrant Name | CATALYST BANCORP, INC. | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 86-2411762 | |
Entity Address, Address Line One | 235 N. Court Street | |
Entity Address, City or Town | Opelousas | |
Entity Address State Or Province | LA | |
Entity Address, Postal Zip Code | 70570 | |
City Area Code | 337 | |
Local Phone Number | 948-3033 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CLST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,769,155 | |
Entity Central Index Key | 0001849867 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Non-interest-bearing cash | $ 3,497 | $ 5,092 |
Interest-bearing cash and due from banks | 9,769 | 8,380 |
Total cash and cash equivalents | 13,266 | 13,472 |
Investment securities: | ||
Securities available-for-sale, at fair value | 71,808 | 79,602 |
Securities held-to-maturity (fair values of $10,573 and $10,724, respectively) | 13,464 | 13,475 |
Loans receivable, net of unearned income | 135,672 | 133,607 |
Allowance for loan losses | (2,036) | (1,807) |
Loans receivable, net | 133,636 | 131,800 |
Accrued interest receivable | 806 | 673 |
Foreclosed assets | 37 | 320 |
Premises and equipment, net | 6,160 | 6,303 |
Stock in correspondent banks, at cost | 1,858 | 1,808 |
Bank-owned life insurance | 13,917 | 13,617 |
Other assets | 2,956 | 2,254 |
TOTAL ASSETS | 257,908 | 263,324 |
Deposits | ||
Non-interest-bearing | 33,222 | 33,657 |
Interest-bearing | 131,998 | 131,437 |
Total deposits | 165,220 | 165,094 |
Advances from Federal Home Loan Bank | 9,333 | 9,198 |
Other liabilities | 1,147 | 558 |
TOTAL LIABILITIES | 175,700 | 174,850 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value - 5,000,000 shares authorized; none issued | ||
Common stock, $0.01 par value; 30,000,000 shares authorized; 4,848,290 and 5,290,000 issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 48 | 53 |
Additional paid-in capital | 45,855 | 51,062 |
Unallocated common stock held by benefit plans | (6,274) | (6,307) |
Retained earnings | 52,687 | 52,740 |
Accumulated other comprehensive income (loss) | (10,108) | (9,074) |
TOTAL SHAREHOLDERS' EQUITY | 82,208 | 88,474 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 257,908 | $ 263,324 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Fair Value | $ 10,573 | $ 10,724 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Issued | 4,848,290 | 5,290,000 |
Common Stock, Shares, Outstanding | 4,848,290 | 5,290,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST INCOME | ||||
Loans receivable, including fees | $ 1,852 | $ 1,466 | $ 5,172 | $ 4,584 |
Investment securities | 403 | 381 | 1,243 | 1,062 |
Other | 214 | 185 | 643 | 262 |
Total interest income | 2,469 | 2,032 | 7,058 | 5,908 |
INTEREST EXPENSE | ||||
Deposits | 428 | 93 | 1,012 | 272 |
Advances from Federal Home Loan Bank | 69 | 69 | 205 | 205 |
Total interest expense | 497 | 162 | 1,217 | 477 |
Net interest income | 1,972 | 1,870 | 5,841 | 5,431 |
Provision for (reversal of) credit losses | (115) | (375) | ||
Net interest income after provision for (reversal of) credit losses | 1,972 | 1,985 | 5,841 | 5,806 |
NON-INTEREST INCOME | ||||
Service charges on deposit accounts | 190 | 192 | 573 | 542 |
Gain (loss) on disposals and sales of fixed assets | (77) | |||
Bank-owned life insurance | 104 | 97 | 300 | 216 |
Federal community development grant | 171 | |||
Other | 12 | 7 | 44 | 20 |
Total non-interest income | 306 | 296 | 917 | 872 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 1,141 | 1,168 | 3,522 | 3,647 |
Occupancy and equipment | 198 | 203 | 609 | 640 |
Data processing and communication | 228 | 216 | 675 | 666 |
Professional fees | 100 | 157 | 346 | 472 |
Directors' fees | 116 | 75 | 345 | 185 |
ATM and debit card | 68 | 76 | 187 | 184 |
Foreclosed assets, net | 2 | 3 | 67 | |
Advertising and marketing | 25 | 36 | 77 | 187 |
Franchise and shares tax | 19 | 15 | 71 | 131 |
Regulatory fees and assessments | 33 | 35 | 99 | 104 |
Insurance | 26 | 34 | 80 | 100 |
Printing, supplies and postage | 28 | 37 | 102 | 117 |
Other | 97 | 78 | 277 | 285 |
Total non-interest expense | 2,081 | 2,133 | 6,457 | 6,718 |
Income (loss) before income tax expense (benefit) | 197 | 148 | 301 | (40) |
Income tax expense (benefit) | 27 | 13 | 19 | (49) |
NET INCOME | $ 170 | $ 135 | $ 282 | $ 9 |
Earnings per share - basic (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.01 |
Earnings per share - diluted (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.01 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | $ 170 | $ 135 | $ 282 | $ 9 |
Net change in unrealized gains (losses) on available-for-sale securities | (1,852) | (4,229) | (1,309) | (11,776) |
Income tax effect | 389 | 888 | 275 | 2,473 |
Total other comprehensive income (loss) | (1,463) | (3,341) | (1,034) | (9,303) |
Total comprehensive income (loss) | $ (1,293) | $ (3,206) | $ (752) | $ (9,294) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unallocated Common Stock Held by ESOP | Retained Earnings Adoption impact | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Adoption impact | Total |
Beginning Balance at Dec. 31, 2021 | $ 53 | $ 50,802 | $ (4,179) | $ 52,560 | $ (683) | $ 98,553 | ||
CHANGES IN EQUITY | ||||||||
Net income | 9 | 9 | ||||||
Other comprehensive income (loss) | (9,303) | (9,303) | ||||||
ESOP shares released for allocation | 53 | 159 | 212 | |||||
Stock compensation expense | 47 | 47 | ||||||
Ending Balance at Sep. 30, 2022 | 53 | 50,902 | (4,020) | 52,569 | (9,986) | 89,518 | ||
Beginning Balance at Jun. 30, 2022 | 53 | 50,838 | (4,073) | 52,434 | (6,645) | 92,607 | ||
CHANGES IN EQUITY | ||||||||
Net income | 135 | 135 | ||||||
Other comprehensive income (loss) | (3,341) | (3,341) | ||||||
ESOP shares released for allocation | 17 | 53 | 70 | |||||
Stock compensation expense | 47 | 47 | ||||||
Ending Balance at Sep. 30, 2022 | 53 | 50,902 | (4,020) | 52,569 | (9,986) | 89,518 | ||
Beginning Balance at Dec. 31, 2022 | 53 | 51,062 | (6,307) | $ (335) | 52,740 | (9,074) | $ (335) | 88,474 |
CHANGES IN EQUITY | ||||||||
Net income | 282 | 282 | ||||||
Other comprehensive income (loss) | (1,034) | (1,034) | ||||||
ESOP shares released for allocation | 27 | 159 | 186 | |||||
Stock purchased to fund the 2022 Recognition and Retention Plan | (415) | (415) | ||||||
2022 Recognition and Retention Plan shares released for allocation | (289) | 289 | ||||||
Stock compensation expense | 386 | 386 | ||||||
Repurchase of common stock | (5) | (5,331) | (5,336) | |||||
Ending Balance at Sep. 30, 2023 | 48 | 45,855 | (6,274) | 52,687 | (10,108) | 82,208 | ||
Beginning Balance at Jun. 30, 2023 | 49 | 47,032 | (6,616) | 52,517 | (8,645) | 84,337 | ||
CHANGES IN EQUITY | ||||||||
Net income | 170 | 170 | ||||||
Other comprehensive income (loss) | (1,463) | (1,463) | ||||||
ESOP shares released for allocation | 10 | 53 | 63 | |||||
2022 Recognition and Retention Plan shares released for allocation | (289) | 289 | ||||||
Stock compensation expense | 102 | 102 | ||||||
Repurchase of common stock | (1) | (1,000) | (1,001) | |||||
Ending Balance at Sep. 30, 2023 | $ 48 | $ 45,855 | $ (6,274) | $ 52,687 | $ (10,108) | $ 82,208 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 282 | $ 9 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Investment securities amortization, net | 236 | 370 |
Federal Home Loan Bank stock dividends | (49) | (6) |
Amortization of prepayment penalties on debt restructuring | 135 | 135 |
Provision for (reversal of) credit losses | (375) | |
Net loss (gain) on disposals and sales of premises and equipment | 77 | |
Increase in cash surrender value of bank-owned life insurance | (300) | (216) |
Stock-based compensation | 572 | 259 |
Depreciation of premises and equipment | 301 | 343 |
Net write-downs and losses (gains) on the sale of foreclosed assets | 62 | (9) |
Deferred income tax expense (benefit) | (74) | 54 |
(Increase) decrease in other assets | (395) | (111) |
Increase (decrease) in other liabilities | 308 | (154) |
Net cash provided by (used in) operating activities | 1,078 | 376 |
Activity in available-for-sale securities: | ||
Proceeds from maturities, calls, and paydowns | 6,259 | 8,547 |
Purchases | (10,900) | |
Net decrease (increase) in loans | (2,019) | 54 |
Proceeds from sale of foreclosed assets | 259 | 39 |
Purchases of premises and equipment | (158) | (235) |
Purchase of bank-owned life insurance | (10,000) | |
Net cash provided by (used in) investing activities | 4,341 | (12,495) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 126 | 7,432 |
Purchase of stock to fund the 2022 Recognition and Retention Plan | (415) | |
Repurchase of common stock | (5,336) | |
Net cash provided by (used in) financing activities | (5,625) | 7,432 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (206) | (4,687) |
CASH AND CASH EQUIVALENTS, beginning of period | 13,472 | 40,884 |
CASH AND CASH EQUIVALENTS, end of period | 13,266 | 36,197 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES | ||
Acquisition of real estate in settlement of loans | 37 | 10 |
SUPPLEMENTAL SCHEDULE OF INTEREST AND TAXES PAID | ||
Cash paid for interest | $ 916 | 345 |
Cash paid for income taxes | $ 243 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION Catalyst Bancorp, Inc. (“Catalyst Bancorp” or the “Company”) is the holding company for Catalyst Bank (the “Bank”), formerly known as St. Landry Homestead Federal Savings Bank. The Bank has been in operation in the Acadiana region of south-central Louisiana since 1922 and offers commercial and retail banking products through six full-service locations. The Company was incorporated by the Bank in February 2021 as part of the conversion of the Bank from the mutual to the stock form of organization (the “Conversion”). The Conversion was completed on October 12, 2021, at which time the Company acquired all of the issued and outstanding shares of common stock of the Bank and became the holding company for the Bank. Shares of the Company’s common stock were issued and sold in an offering to certain depositors of the Bank and others. The Company was not engaged in operations and had not issued any shares of stock prior to the completion of the Conversion. As used in this report, unless the context otherwise requires, the terms “we,” “our,” “us,” or the “Company” refer to Catalyst Bancorp, and the term the “Bank” refers to Catalyst Bank, the wholly owned subsidiary of the Company. In addition, unless the context otherwise requires, references to the operations of the Company include the operations of the Bank. The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, comprehensive income, changes in equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three and nine months ended September 30, 2023 and 2022 are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2022. Certain amounts reported in prior periods may have been reclassified to conform to the current period presentation. Such reclassifications had no effect on previously reported equity or net income. Critical Accounting Policies and Estimates Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties and could reflect materially different results under different assumptions and conditions. Methodologies the Company uses when applying critical accounting policies and developing critical estimates are included in its Annual Report on Form 10-K for the year ended December 31, 2022. As of January 1, 2023, the Company adopted the guidance in Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The main provisions of the ASU have been codified by the Financial Accounting Standards Board (“FASB”) in Topic 326 of the Accounting Standards Codification (“ASC 326”). The new standard changed the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss model to an expected loss model. Determining the appropriateness of the allowance requires judgement by management about the effect of matters that are inherently uncertain. Changes in factors and forecasts used in evaluating the overall loan portfolio may result in significant changes in the allowance for credit losses and related provision expense in future periods. The allowance level is influenced by loan volumes, loan asset quality ratings, delinquency status, historical credit loss experience, loan performance characteristics, forecasted information and other conditions influencing loss expectations. Changes to the assumptions in the model in future periods could have a material impact on the Company’s Consolidated Financial Statements. See Note 2 There were no other material changes from the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In preparing the financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial condition, results of operations, comprehensive income, changes in equity and cash flows for the interim periods presented. These adjustments are of a normal recurring nature and include appropriate estimated provisions. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2023 ASU No. 2016-13. In addition, ASC 326 requires expected credit related losses for available-for-sale debt securities to be recorded through an allowance for credit losses, while non-credit related losses will continue to be recognized through other comprehensive income. Under former GAAP, we assessed our investment securities for other-than-temporary impairment and any declines in fair value that were deemed other-than-temporary resulted in a direct write-down to the amortized cost basis of the related security. The allowance approach allows estimated expected credit losses to be adjusted from period-to-period, as opposed to a permanent write-down. The Company applied the guidance under ASC 326 using the modified retrospective approach which resulted in an adjustment to beginning retained earnings for 2023. The information for reporting periods beginning on and after January 1, 2023 are presented under ASC 326, while prior periods continue to be reported in accordance with previously applicable GAAP. The following table illustrates the impact of ASC Topic 326. December 31, ASC 326 Adoption January 1, (Dollars in thousands) 2022 Impact 2023 Allowance for credit losses One- to four-family residential $ 1,224 $ 158 $ 1,382 Commercial real estate 248 (53) 195 Construction and land 74 40 114 Multi-family residential 40 5 45 Commercial and industrial 175 51 226 Consumer 46 8 54 Total allowance for loan losses $ 1,807 $ 209 $ 2,016 Unfunded lending commitments (1) - 216 216 Total allowance for credit losses $ 1,807 $ 425 $ 2,232 Retained Earnings Total increase in the allowance for credit losses $ 425 Tax effect (90) Decrease to retained earnings, net of tax effect $ 335 (1) The allowance for credit losses on unfunded lending commitments is recorded within “other liabilities” on the statement of financial condition. The related provision for credit losses for unfunded lending commitments is recorded with the provision for loan losses and reported in aggregate as the provision for credit losses on the income statement. Under ASC 326, the Company groups loans and unfunded lending commitments with similar risk characteristics into pools or segments and collectively evaluates each pool to estimate the allowance for credit losses. For each loan pool, the Company uses the remaining life method to calculate its credit loss estimate under CECL. The remaining life method applies an estimated average loss rate to the expected future outstanding balances of the relevant pool of loans. The estimated average loss rate is based on historical charge-off rates and the future balances or the remaining life of each pool is based on recent trends in the rate at which existing loans have paid-off or paid-down. We attempt to forecast the average loss rate for each pool over the first two years of the estimated remaining life, then revert to the long-term average after the forecast period. For each pool of loans, management also evaluates and applies qualitative adjustments to the calculated allowance for credit losses based on several factors, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and loan concentrations, changes in credit quality, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. The ultimate loss rates computed for each loan pool (a product of our quantitative calculation and qualitative adjustments) are used to estimate the allowance for credit losses on unfunded lending commitments. The pooled loan loss rates are applied to the portion of the unfunded lending commitments that management expects to fund in the future. These unfunded commitments are segmented into pools consistent with our grouping of outstanding loans and include available portions of lines of credit, undisbursed portions of construction loans and commitments to originate new loans. The Company has identified the following portfolio segments based on the risk characteristics described below. One- to four-family residential – Commercial real estate – Construction and land – Multi-family residential – Commercial and industrial – Consumer Loans are individually evaluated for credit losses when they do not share similar risk characteristics with our identified loan pools under ASC 326. Generally, management considers loans for individual analysis when the outstanding balance is greater than $50,000 and when we have identified certain unique characteristics that impact the risk of credit loss. These characteristics include, but are not limited to, the creditworthiness of the borrower, the reliability of the primary source of repayment, the quality of the collateral, the size of the loan or relationship, and the industry of the borrower. The allowance for credit losses on individually evaluated, collateral-dependent loans is based on a comparison of the recorded investment in the loan with the fair value of the underlying collateral. Alternatively, we estimate credit losses on individual loans by comparing the loan’s recorded investment to the loan’s estimated fair value based on discounted cash flows or an observable market price. At adoption of ASC 326, management also evaluated its securities portfolio for credit losses. The types of securities in the Company’s portfolio have a long history of minimal credit risk and management does not expect or estimate any credit losses to occur over the life of these assts. In addition, management does not have the intent to sell any of the Company’s securities in an unrealized loss position and believes that it is more likely than not that the Company will not have to sell any such securities before recovery of cost. As a result, the Company has not recorded an allowance for credit losses for its held-to-maturity or available-for-sale securities. ASU No. 2022-02. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 3. EARNINGS PER SHARE Earnings per common share was computed based on the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator Net income available to common shareholders $ 170 $ 135 $ 282 $ 9 Denominator Weighted average common shares outstanding 4,901 5,290 5,033 5,290 Weighted average unallocated common stock held by benefit plans (588) (405) (597) (410) Weighted average shares - basic 4,313 4,885 4,436 4,880 Effect of dilutive stock-based awards: Stock options - - - - Restricted stock 11 - 6 - Weighted average shares - assuming dilution 4,324 4,885 4,442 4,880 Basic earnings per common share $ 0.03 $ 0.03 $ 0.06 $ 0.01 Diluted earnings per common share 0.03 0.03 0.06 0.01 Diluted earnings per share was computed using the treasury stock method. The weighted average of potentially dilutive common shares attributable to outstanding stock options that were anti-dilutive totaled 280,620 and 290,379 for the three and nine months ended September 30, 2023, respectively, and were excluded from the calculation of diluted earnings per share. There were no potentially dilutive common shares attributable to restricted stock that were anti-dilutive for the three months ended September 30, 2023. For the nine months ended September 30, 2023, the weighted average of potentially dilutive common shares attributable to restricted stock that were anti-dilutive totaled 39,779 and were excluded from the calculation of diluted earnings per share. During the three and nine months ended September 30, 2022, there were no convertible securities or other contracts to issue common stock outstanding that if converted or exercised would result in potential dilution of earnings per share. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4. INVESTMENT SECURITIES Investment securities have been classified according to management’s intent. The amortized cost of securities and their approximate fair values are as follows: September 30, 2023 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities available-for-sale Mortgage-backed securities $ 67,604 $ - $ (11,181) $ 56,423 U.S. Government and agency obligations 10,985 - (949) 10,036 Municipal obligations 6,014 - (665) 5,349 Total available-for-sale $ 84,603 $ - $ (12,795) $ 71,808 Securities held-to-maturity U.S. Government and agency obligations $ 13,004 $ - $ (2,846) $ 10,158 Municipal obligations 460 - (45) 415 Total held-to-maturity $ 13,464 $ - $ (2,891) $ 10,573 December 31, 2022 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities available-for-sale Mortgage-backed securities $ 74,044 $ 15 $ (9,892) $ 64,167 U.S. Government and agency obligations 10,979 - (1,062) 9,917 Municipal obligations 6,065 4 (551) 5,518 Total available-for-sale $ 91,088 $ 19 $ (11,505) $ 79,602 Securities held-to-maturity U.S. Government and agency obligations $ 13,006 $ - $ (2,718) $ 10,288 Municipal obligations 469 - (33) 436 Total held-to-maturity $ 13,475 $ - $ (2,751) $ 10,724 There were no securities transferred between classifications during the nine months ended September 30, 2023 or 2022. Accrued interest receivable on the Company’s investment securities totaled $243,000 and $257,000 at September 30, 2023 and December 31, 2022, respectively. Investment securities with a carrying amount of approximately $43.6 million and $20.4 million, respectively, were pledged to secure public deposits as required or permitted by law at September 30, 2023 and December 31, 2022. At September 30, 2023, investment securities with a carrying value of $1.0 million were pledged to the Federal Reserve Bank as collateral for borrowings. The following is a summary of maturities of securities available-for-sale and held-to-maturity at September 30, 2023 and December 31, 2022: September 30, 2023 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: One year or less $ 1,000 $ 993 $ - $ - After one through five years 12,984 12,154 2,336 2,014 After five through ten years 16,883 14,951 7,124 5,561 After ten years 53,736 43,710 4,004 2,998 Total $ 84,603 $ 71,808 $ 13,464 $ 10,573 December 31, 2022 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: One year or less $ 1,000 $ 962 $ - $ - After one through five years 11,496 10,634 2,343 2,031 After five through ten years 17,139 15,699 7,125 5,611 After ten years 61,453 52,307 4,007 3,082 Total $ 91,088 $ 79,602 $ 13,475 $ 10,724 Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments, or call options. The expected maturities may differ from contractual maturities because of the exercise of call options and potential paydowns. Accordingly, actual maturities may differ from contractual maturities. Information pertaining to securities with gross unrealized losses at September 30, 2023 and December 31, 2022 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: September 30, 2023 Less than 12 Months 12 Months or Greater Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale Mortgage-backed securities $ 1,534 $ (47) $ 54,889 $ (11,134) $ 56,423 $ (11,181) U.S. Government and agency obligations - - 10,036 (949) 10,036 (949) Municipal obligations 1,597 (45) 3,752 (620) 5,349 (665) Total available-for-sale $ 3,131 $ (92) $ 68,677 $ (12,703) $ 71,808 $ (12,795) Securities held-to-maturity U.S. Government and agency obligations $ - $ - $ 10,158 $ (2,846) $ 10,158 $ (2,846) Municipal obligations - - 415 (45) 415 (45) Total held-to-maturity $ - $ - $ 10,573 $ (2,891) $ 10,573 $ (2,891) Total $ 3,131 $ (92) $ 79,250 $ (15,594) $ 82,381 $ (15,686) December 31, 2022 Less than 12 Months 12 Months or Greater Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale Mortgage-backed securities $ 9,759 $ (546) $ 53,402 $ (9,346) $ 63,161 $ (9,892) U.S. Government and agency obligations - - 9,917 (1,062) 9,917 (1,062) Municipal obligations 602 (16) 3,885 (535) 4,487 (551) Total available-for-sale $ 10,361 $ (562) $ 67,204 $ (10,943) $ 77,565 $ (11,505) Securities held-to-maturity U.S. Government and agency obligations $ - $ - $ 10,288 $ (2,718) $ 10,288 $ (2,718) Municipal obligations 120 (6) 316 (27) 436 (33) Total held-to-maturity $ 120 $ (6) $ 10,604 $ (2,745) $ 10,724 $ (2,751) Total $ 10,481 $ (568) $ 77,808 $ (13,688) $ 88,289 $ (14,256) At September 30, 2023 and December 31, 2022, the Company held 98 and 96 securities, respectively, with an unrealized loss. The securities with unrealized losses consisted of government-sponsored mortgage-backed securities and debt obligations guaranteed by federal, state and local government entities. These unrealized losses relate principally to noncredit related factors, including changes in current interest rates for similar types of securities. Based on management’s evaluation of the securities portfolio, the Company has not established an allowance for credit losses for its available-for-sale or held-to-maturity securities at September 30, 2023. Under ASC 326, management evaluates available-for-sale securities in unrealized loss positions to determine if the decline in the fair value of each security below its amortized cost basis is due to credit-related factors or noncredit-related factors. Consideration is given to the extent to which that fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period sufficient to allow for any anticipated recovery in fair value. At September 30, 2023, management does not have the intent to sell any of the Company’s securities in an unrealized loss position and believes that it is more likely than not that the Company will not have to sell any such securities before recovery of cost. Prior to the adoption of ASC 326, management evaluated securities for other-than-temporary impairment and, as of December 31, 2022, no declines in fair value were deemed to be other-than temporary. See Note 2 |
LOANS RECEIVABLE
LOANS RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
LOANS RECEIVABLE | |
LOANS RECEIVABLE | NOTE 5. LOANS RECEIVABLE Loans receivable at September 30, 2023 and December 31, 2022 are summarized as follows: September 30, December 31, (Dollars in thousands) 2023 2022 Real estate loans One- to four-family residential $ 83,973 $ 87,508 Commercial real estate 19,113 19,437 Construction and land 6,622 6,172 Multi-family residential 3,424 3,200 Total real estate loans 113,132 116,317 Other loans Commercial and industrial 19,634 13,843 Consumer 2,906 3,447 Total other loans 22,540 17,290 Total loans 135,672 133,607 Less: Allowance for loan losses (2,036) (1,807) Net loans $ 133,636 $ 131,800 At September 30, 2023 and December 31, 2022, real estate loans totaling $77.9 million and $64.1 million, respectively, were pledged as collateral to the Federal Home Loan Bank for borrowings under a blanket lien agreement. Refer to Note 7 Accrued interest receivable on the Company’s loans totaled $562,000 and $411,000 at September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable is excluded from the Company’s estimate of the allowance for credit losses. The following tables outline the changes in the allowance for loan losses for the nine months ended September 30, 2023 and 2022. For the Nine Months Ended September 30, 2023 (Dollars in thousands) Beginning Balance ASC 326 Adoption Impact (1) Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for credit losses One- to four-family residential $ 1,224 $ 158 $ (299) $ - $ 98 $ 1,181 Commercial real estate 248 (53) (5) - - 190 Construction and land 74 40 48 - - 162 Multi-family residential 40 5 (2) - - 43 Commercial and industrial 175 51 73 - 1 300 Consumer 46 8 2 (26) 11 41 Unallocated - - 119 - - 119 Total for loans $ 1,807 $ 209 $ (64) $ (26) $ 110 $ 2,036 Unfunded lending commitments (2) - 216 64 - - 280 Total $ 1,807 $ 425 $ - $ (26) $ 110 $ 2,316 (1) Refer to Note 2 for more information on the adoption of ASC 326. (2) The allowance for credit losses on unfunded lending commitments is recorded within “other liabilities” on the statement of financial condition. The related provision for credit losses for unfunded lending commitments is recorded with the provision for loan losses and reported in aggregate as the provision for credit losses on the income statement. For the Nine Months Ended September 30, 2022 (Dollars in thousands) Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for loan losses One- to four-family residential $ 1,573 $ (232) $ (154) $ 70 $ 1,257 Commercial real estate 370 (101) - - 269 Construction and land 55 (10) - - 45 Multi-family residential 73 (33) - - 40 Commercial and industrial 137 4 (21) 19 139 Consumer 68 (3) (16) 5 54 Total $ 2,276 $ (375) $ (191) $ 94 $ 1,804 The following tables outline the allowance for loan losses and the balance of loans by method of loss evaluation at September 30, 2023 and December 31, 2022. September 30, 2023 December 31, 2022 (Dollars in thousands) Individually Evaluated Collectively Evaluated Total Individually Evaluated Collectively Evaluated Total Allowance for loan losses One- to four-family residential $ 127 $ 1,054 $ 1,181 $ 216 $ 1,008 $ 1,224 Commercial real estate - 190 190 - 248 248 Construction and land 49 113 162 - 74 74 Multi-family residential - 43 43 - 40 40 Commercial and industrial - 300 300 - 175 175 Consumer - 41 41 - 46 46 Unallocated - 119 119 - - - Total $ 176 $ 1,860 $ 2,036 $ 216 $ 1,591 $ 1,807 Loans One- to four-family residential $ 957 $ 83,016 $ 83,973 $ 2,712 $ 84,796 $ 87,508 Commercial real estate 50 19,063 19,113 51 19,386 19,437 Construction and land 135 6,487 6,622 33 6,139 6,172 Multi-family residential - 3,424 3,424 - 3,200 3,200 Commercial and industrial - 19,634 19,634 - 13,843 13,843 Consumer - 2,906 2,906 - 3,447 3,447 Total $ 1,142 $ 134,530 $ 135,672 $ 2,796 $ 130,811 $ 133,607 At September 30, 2023 all loans individually evaluated for credit losses, totaling $1.1 million, were considered collateral-dependent financial assets under ASC 326. Loans are considered collateral-dependent and individually evaluated when, based on management’s assessment as of the reporting date, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Collateral-dependent loans primarily consist of residential real estate loans secured by one- to four-family residential properties located in our market. A summary of current, past due and nonaccrual loans as of September 30, 2023 and December 31, 2022 follows: As of September 30, 2023 (Dollars in thousands) Past Due 30-89 Days and Accruing Past Due Over 90 Days and Accruing Past Due Over 30 Days and Non-accruing Total Past Due Current and Accruing Current and Non-accruing Total Loans One- to four-family residential $ 1,473 $ 127 $ 1,038 $ 2,638 $ 80,505 $ 830 $ 83,973 Commercial real estate 110 - 50 160 18,953 - 19,113 Construction and land - - - - 6,579 43 6,622 Multi-family residential - - - - 3,424 - 3,424 Commercial and industrial 113 - - 113 19,521 - 19,634 Consumer 14 - - 14 2,892 - 2,906 Total $ 1,710 $ 127 $ 1,088 $ 2,925 $ 131,874 $ 873 $ 135,672 As of December 31, 2022 (Dollars in thousands) Past Due 30-89 Days and Accruing Past Due Over 90 Days and Accruing Past Due Over 30 Days and Non-accruing Total Past Due Current and Accruing Current and Non-accruing Total Loans One- to four-family residential $ 2,077 $ 191 $ 716 $ 2,984 $ 83,848 $ 676 $ 87,508 Commercial real estate 166 - 51 217 19,220 - 19,437 Construction and land 156 - 18 174 5,965 33 6,172 Multi-family residential - - - - 3,200 - 3,200 Commercial and industrial - - - - 13,843 - 13,843 Consumer 6 - - 6 3,441 - 3,447 Total $ 2,405 $ 191 $ 785 $ 3,381 $ 129,517 $ 709 $ 133,607 A summary of total nonaccrual loans as of September 30, 2023 and December 31, 2022 follows: December 31, September 30, 2023 2022 (Dollars in thousands) With Allowance for Credit Loss Without Allowance for Credit Loss Total Total Nonaccrual loans One- to four-family residential $ 1,673 $ 195 $ 1,868 $ 1,392 Commercial real estate - 50 50 51 Construction and land 43 - 43 51 Multi-family residential - - - - Commercial and industrial - - - - Consumer - - - - Total $ 1,716 $ 245 $ 1,961 $ 1,494 The Company was not committed to lend any additional funds on nonaccrual loans at September 30, 2023 or December 31, 2022. The Company does not recognize interest income while loans are on nonaccrual status. All payments received while on nonaccrual status are applied against the principal balance of nonaccrual loans. At September 30, 2023, loans secured by residential and commercial real estate for which formal foreclosure proceedings were in process totaled $476,000 and $50,000, respectively. At December 31, 2022, loans secured by residential and commercial real estate for which formal foreclosure proceedings were in process totaled $331,000 and $50,000, respectively. During the nine months ended September 30, 2023 and the year ended December 31, 2022, the Company did not grant any loan modifications to borrowers experiencing financial difficulty. Information on impaired loans as of December 31, 2022 follows: December 31, 2022 (Dollars in thousands) Recorded Investment Without an Allowance Recorded Investment With an Allowance Unpaid Principal Related Allowance One- to four-family residential $ 1,843 $ 869 $ 3,149 $ 216 Commercial real estate 51 - 52 - Construction and land 33 - 42 - Multi-family residential - - - - Commercial and industrial - - - - Consumer - - - - Total $ 1,927 $ 869 $ 3,243 $ 216 The table below presents the average balances and interest income for impaired loans for the three and nine months ended September 30, 2022. Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four-family residential $ 2,655 $ 16 $ 2,718 $ 49 Commercial real estate 50 - 51 - Construction and land 34 - 35 - Multi-family residential - - - - Commercial and industrial - - - - Consumer 12 - 13 - Total $ 2,751 $ 16 $ 2,817 $ 49 Loans are categorized by credit quality indicators based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Credit quality classifications follow regulatory guidelines and can generally be described as follows: Pass Special Mention Substandard Doubtful Loss The information for each of the credit quality indicators is updated at least quarterly in conjunction with the determination of the adequacy of the allowance for credit losses. The following table presents the Company’s loan portfolio by credit quality classification and origination year as of September 30, 2023. The Company uses the latter of origination or renewal date to classify term loans into vintages. Line-of-credit Arrangements Term Loans by Origination Year Line-of-credit Converted to (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Arrangements Term Loans Total One- to four-family residential Pass $ 1,695 $ 11,175 $ 3,308 $ 2,994 $ 3,230 $ 55,100 $ 1,603 $ 2,031 $ 81,136 Special Mention - - - - - - - - - Substandard 24 - 12 126 13 2,662 - - 2,837 Doubtful - - - - - - - - - Total $ 1,719 $ 11,175 $ 3,320 $ 3,120 $ 3,243 $ 57,762 $ 1,603 $ 2,031 $ 83,973 Commercial real estate Pass $ 1,790 $ 2,067 $ 2,049 $ 4,396 $ 3,470 $ 4,445 $ 33 $ 355 $ 18,605 Special Mention - 110 106 - - - - - 216 Substandard - - - - - 292 - - 292 Doubtful - - - - - - - - - Total $ 1,790 $ 2,177 $ 2,155 $ 4,396 $ 3,470 $ 4,737 $ 33 $ 355 $ 19,113 Construction and land Pass $ 57 $ 188 $ 57 $ 70 $ 46 $ 498 $ 5,528 $ - $ 6,444 Special Mention - - - - - - - - - Substandard - 135 - 14 - 29 - - 178 Doubtful - - - - - - - - - Total $ 57 $ 323 $ 57 $ 84 $ 46 $ 527 $ 5,528 $ - $ 6,622 Multi-family residential Pass $ 382 $ - $ 470 $ - $ 282 $ 2,290 $ - $ - $ 3,424 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 382 $ - $ 470 $ - $ 282 $ 2,290 $ - $ - $ 3,424 Commercial and industrial Pass $ 5,989 $ 2,490 $ 853 $ 326 $ 303 $ 70 $ 9,603 $ - $ 19,634 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 5,989 $ 2,490 $ 853 $ 326 $ 303 $ 70 $ 9,603 $ - $ 19,634 Consumer Pass $ 914 $ 559 $ 700 $ 311 $ 199 $ 223 $ - $ - $ 2,906 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 914 $ 559 $ 700 $ 311 $ 199 $ 223 $ - $ - $ 2,906 Total Pass $ 10,827 $ 16,479 $ 7,437 $ 8,097 $ 7,530 $ 62,626 $ 16,767 $ 2,386 $ 132,149 Special Mention - 110 106 - - - - - 216 Substandard 24 135 12 140 13 2,983 - - 3,307 Doubtful - - - - - - - - - Total $ 10,851 $ 16,724 $ 7,555 $ 8,237 $ 7,543 $ 65,609 $ 16,767 $ 2,386 $ 135,672 The following table presents gross charge-offs and recoveries for the nine months ended September 30, 2023 by origination year of the related loans. The Company uses the latter of origination or renewal date to classify loans into vintages. Loan Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Charge-offs One- to four-family residential $ - $ - $ - $ - $ - $ - $ - Commercial real estate - - - - - - - Construction and land - - - - - - - Multi-family residential - - - - - - - Commercial and industrial - - - - - - - Consumer 4 5 9 1 2 5 26 Total $ 4 $ 5 $ 9 $ 1 $ 2 $ 5 $ 26 Recoveries One- to four-family residential $ - $ - $ - $ - $ - $ 98 $ 98 Commercial real estate - - - - - - - Construction and land - - - - - - - Multi-family residential - - - - - - - Commercial and industrial - - - - - 1 1 Consumer - - 2 1 - 8 11 Total $ - $ - $ 2 $ 1 $ - $ 107 $ 110 The following table presents the Company’s loan portfolio by credit quality classification as of December 31, 2022. December 31, 2022 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total One- to four-family residential $ 84,219 $ 171 $ 3,118 $ - $ 87,508 Commercial real estate 19,334 - 103 - 19,437 Construction and land 5,822 291 59 - 6,172 Multi-family residential 3,200 - - - 3,200 Commercial and industrial 13,843 - - - 13,843 Consumer 3,447 - - - 3,447 Total $ 129,865 $ 462 $ 3,280 $ - $ 133,607 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2023 | |
DEPOSITS. | |
DEPOSITS | NOTE 6. DEPOSITS Deposits at September 30, 2023 and December 31, 2022 are summarized as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Amount Percent Amount Percent Non-interest-bearing demand deposits $ 33,222 20.1 % $ 33,657 20.4 % Interest-bearing demand deposits 38,881 23.5 36,991 22.4 Money market 15,473 9.4 15,734 9.5 Savings 27,237 16.5 26,209 15.9 Certificates of deposit 50,407 30.5 52,503 31.8 Total deposits $ 165,220 100.0 % $ 165,094 100.0 % The estimated amount of our total uninsured deposits (that is, deposits in excess of the FDIC’s insurance limit) was $45.2 million and $43.4 million, respectively, at September 30, 2023 and December 31, 2022. Certificates of deposit and other time deposits issued in denominations that exceed FDIC insurance limit of $250,000 or more totaled $7.7 million and $8.9 million at September 30, 2023 and December 31, 2022, respectively, and are included in interest-bearing deposits in the statements of financial condition. At September 30, 2023 scheduled maturities of certificates of deposits were as follows: (Dollars in thousands) Amount 2023 $ 10,527 2024 34,662 2025 3,616 2026 1,002 2027 451 2028 149 Total $ 50,407 |
BORROWED FUNDS
BORROWED FUNDS | 9 Months Ended |
Sep. 30, 2023 | |
BORROWED FUNDS | |
BORROWED FUNDS | NOTE 7. BORROWED FUNDS Borrowed funds at September 30, 2023 and December 31, 2022 are summarized as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Rate Amount Rate Amount Advances from Federal Home Loan Bank 0.65 % $ 3,000 0.65 % $ 3,000 0.96 3,000 0.96 3,000 1.12 4,000 1.12 4,000 10,000 10,000 Debt modification discount (667) (802) $ 9,333 $ 9,198 Interest payments on outstanding borrowings are due monthly, and maturities are as follows: (Dollars in thousands) Amount Amounts maturing in: 2024 $ - 2025 3,000 2026 - 2027 3,000 2028 4,000 Total $ 10,000 At September 30, 2023 and December 31, 2022, the Company had $48.0 million and $34.2 million, respectively, in available borrowing capacity with the Federal Home Loan Bank (“FHLB”). Borrowings from the FHLB are secured though a blanket floating lien on real estate loans. At September 30, 2023 and December 31, 2022, loans totaling $77.9 million and $64.1 million, respectively, were pledged to the FHLB under the blanket lien. Other available funding sources include an Unsecured Federal Funds Master Purchase Agreement with First National Bankers Bank for $17.8 million and borrowings from the Federal Reserve Bank’s discount window and Bank Term Funding Program. At September 30, 2023 and December 31, 2022, these credit facilities were unused. At September 30, 2023, investment securities with a carrying value of $1.0 million were pledged to the Federal Reserve Bank as collateral for borrowings and investment securities with a total carrying value of $30.3 million were available for pledging to the Federal Reserve Bank. In aggregate, the par value of securities pledged and available for pledging to the Federal Reserve Bank totaled $35.7 million at September 30, 2023. |
CAPITAL AND REGULATORY MATTERS
CAPITAL AND REGULATORY MATTERS | 9 Months Ended |
Sep. 30, 2023 | |
CAPITAL AND REGULATORY MATTERS | |
CAPITAL AND REGULATORY MATTERS | NOTE 8. CAPITAL AND REGULATORY MATTERS The Bank is subject to various regulatory capital requirements administered by its primary federal regulator, the Office of the Comptroller of the Currency (“OCC”). Failure to meet minimum regulatory capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company and the Bank. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total risk-based capital, Tier 1 Capital to risk-weighted assets, and Tier 1 Capital to adjusted total assets. As of September 30, 2023 and December 31, 2022, the Bank met all of the capital adequacy requirements to which it is subject. At September 30, 2023 and December 31, 2022, the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the most recent notification that management believes have changed the Bank’s prompt corrective action category. The following table presents actual and required capital ratios for the Bank. Actual To be Well Capitalized under the Prompt Corrective Action Provision (Dollars in thousands) Amount Ratio Amount Ratio As of September 30, 2023 Common Equity Tier 1 Capital $ 78,925 54.97 % $ 9,332 >6.5 % Tier 1 Risk-Based Capital 78,925 54.97 11,486 >8.0 Total Risk-Based Capital 80,726 56.23 14,357 >10.0 Tier 1 Leverage Capital 78,925 31.08 12,697 >5.0 As of December 31, 2022 Common Equity Tier 1 Capital $ 78,527 56.17 % $ 9,087 >6.5 % Tier 1 Risk-Based Capital 78,527 56.17 11,184 >8.0 Total Risk-Based Capital 80,275 57.42 13,980 >10.0 Tier 1 Leverage Capital 78,527 30.37 12,929 >5.0 Share Repurchase Plans In January 2023, the Company’s Board of Directors approved the Company’s first share repurchase plan (the “January 2023 Repurchase Plan”), which allowed the Company to purchase 265,000 shares, or approximately 5% of the Company’s outstanding common stock. The January 2023 Repurchase Plan was completed in April 2023. In April 2023, the Company announced its second share repurchase plan (the “April 2023 Repurchase Plan”). Under the April 2023 Repurchase Plan, the Company may purchase up to 252,000 shares, or approximately 5% of the Company’s outstanding shares of common stock. During the three months ended September 30, 2023, the Company repurchased 81,252 shares of its common stock at an average cost per share of $12.33. During the nine months ended September 30, 2023, the Company repurchased 441,710 shares of its common stock at an average cost per share of $12.08. At September 30, 2023, 75,290 shares were available for repurchase under the April 2023 Repurchase Plan. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9. FAIR VALUE MEASUREMENTS In accordance with fair value guidance, the Company groups its financial assets and financial 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 quoted prices in active markets for identical assets or liabilities that the Company 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 with 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 for the asset or liability. Level 3 — Valuation is based on unobservable income 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 values of assets and liabilities measured on a recurring basis at September 30, 2023 and December 31, 2022 follows: Fair Value Measurements at Reporting Date Using (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 September 30, 2023 Available-for-sale securities $ 71,808 $ - $ 71,808 $ - December 31, 2022 Available-for-sale securities $ 79,602 $ - $ 79,602 $ - Fair values of assets and liabilities measured on a nonrecurring basis at September 30, 2023 and December 31, 2022 follows: Fair Value Measurements at Reporting Date Using (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 September 30, 2023 Loans individually evaluated for credit losses $ 457 $ - $ - $ 457 Foreclosed assets 37 - - 37 Total $ 494 $ - $ - $ 494 December 31, 2022 Loans individually evaluated for credit losses $ 898 $ - $ - $ 898 Foreclosed assets 320 - - 320 Total $ 1,218 $ - $ - $ 1,218 At September 30, 2023 and December 31, 2022, individually evaluated loans with a recorded investment of $633,000 and $1.1 million, respectively, have been written down to their fair value by a charge to the allowance for loan losses. Foreclosed assets are written down to fair value by a charge to earnings through foreclosed asset expense. During the three and nine months ended September 30, 2023, the Company incurred a total loss on the sale of foreclosed assets of $62,000. During the three and nine months ended September 30, 2022, no impairment losses on foreclosed assets were recognized. The fair value of loans individually evaluated and foreclosed assets is estimated using third-party appraisals of the collateral or asset held less estimated costs to sell and discounts to reflect current conditions. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows the guidance of FASB ASC 825, Financial Instruments, and FASB ASC 820, Fair Value Measurement. This guidance permits entities to measure many financial instruments and certain other items at fair value. No assets have been elected to be reported at fair value. The objective is to improve financial reporting by providing the Company with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This guidance clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or to transfer a liability in an orderly transaction between market participants. Under this guidance, fair value measurements are not adjusted for transaction costs. This guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quotes priced in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accounting Standards Codification 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities, The following methods and assumptions were used to estimate the fair value of each class of financial instruments of which it is practicable to estimate that value: Cash and cash equivalents Investment securities Loans receivable, net Bank-owned life insurance Non-maturity deposit liabilities Certificates of deposit Federal Home Loan Bank borrowings Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business or the value of assets and liabilities that are not considered financial instruments. The estimated fair values of the Company’s financial instruments as of September 30, 2023 and December 31, 2022 are as follows: September 30, 2023 (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 13,266 $ 13,266 $ 13,266 $ - $ - Investment securities: Available-for-sale 71,808 71,808 - 71,808 - Held-to-maturity 13,464 10,573 - 10,573 - Loans receivable, net 133,636 122,993 - - 122,993 Bank-owned life insurance 13,917 13,917 - 13,917 - Financial Liabilities: Deposits 165,220 164,081 - 164,081 - Borrowed funds 9,333 8,489 - 8,489 - December 31, 2022 (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 13,472 $ 13,472 $ 13,472 $ - $ - Investment securities: Available-for-sale 79,602 79,602 - 79,602 - Held-to-maturity 13,475 10,724 - 10,724 - Loans receivable, net 131,800 121,208 - - 121,208 Bank-owned life insurance 13,617 13,617 - 13,617 - Financial Liabilities: Deposits 165,094 163,797 - 163,797 - Borrowed funds 9,198 8,484 - 8,484 - The carrying amounts in the preceding table are included in the statement of financial condition under the applicable captions. It is not practical to estimate the fair value of stock in correspondent banks because the equity securities are not marketable. The carrying amount of investments without readily determinable fair value are reported in the statements of financial condition at historical cost. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | NOTE 11. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company has various outstanding commitments and contingent liabilities that are not reflected in the accompanying financial statements. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on our financial statements. The Company is not involved in any pending legal proceedings as a plaintiff or defendant other than routine legal proceedings occurring in the ordinary course of business, and at September 30, 2023, we were not involved in any legal proceedings, the outcome of which would be material to our financial condition or results of operations. 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 consist of unfunded commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the statement of financial position. The contract or notional amounts of these instruments reflect the extent of the Company’s involvement in particular classes of instruments. On January 1, 2023 and at adoption of ASC 326, the Company recorded an allowance for credit losses on unfunded lending commitments of $216,000. Refer to Note 2 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Recent Accounting Pronouncements | Accounting Standards Adopted in 2023 ASU No. 2016-13. In addition, ASC 326 requires expected credit related losses for available-for-sale debt securities to be recorded through an allowance for credit losses, while non-credit related losses will continue to be recognized through other comprehensive income. Under former GAAP, we assessed our investment securities for other-than-temporary impairment and any declines in fair value that were deemed other-than-temporary resulted in a direct write-down to the amortized cost basis of the related security. The allowance approach allows estimated expected credit losses to be adjusted from period-to-period, as opposed to a permanent write-down. The Company applied the guidance under ASC 326 using the modified retrospective approach which resulted in an adjustment to beginning retained earnings for 2023. The information for reporting periods beginning on and after January 1, 2023 are presented under ASC 326, while prior periods continue to be reported in accordance with previously applicable GAAP. The following table illustrates the impact of ASC Topic 326. December 31, ASC 326 Adoption January 1, (Dollars in thousands) 2022 Impact 2023 Allowance for credit losses One- to four-family residential $ 1,224 $ 158 $ 1,382 Commercial real estate 248 (53) 195 Construction and land 74 40 114 Multi-family residential 40 5 45 Commercial and industrial 175 51 226 Consumer 46 8 54 Total allowance for loan losses $ 1,807 $ 209 $ 2,016 Unfunded lending commitments (1) - 216 216 Total allowance for credit losses $ 1,807 $ 425 $ 2,232 Retained Earnings Total increase in the allowance for credit losses $ 425 Tax effect (90) Decrease to retained earnings, net of tax effect $ 335 (1) The allowance for credit losses on unfunded lending commitments is recorded within “other liabilities” on the statement of financial condition. The related provision for credit losses for unfunded lending commitments is recorded with the provision for loan losses and reported in aggregate as the provision for credit losses on the income statement. Under ASC 326, the Company groups loans and unfunded lending commitments with similar risk characteristics into pools or segments and collectively evaluates each pool to estimate the allowance for credit losses. For each loan pool, the Company uses the remaining life method to calculate its credit loss estimate under CECL. The remaining life method applies an estimated average loss rate to the expected future outstanding balances of the relevant pool of loans. The estimated average loss rate is based on historical charge-off rates and the future balances or the remaining life of each pool is based on recent trends in the rate at which existing loans have paid-off or paid-down. We attempt to forecast the average loss rate for each pool over the first two years of the estimated remaining life, then revert to the long-term average after the forecast period. For each pool of loans, management also evaluates and applies qualitative adjustments to the calculated allowance for credit losses based on several factors, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and loan concentrations, changes in credit quality, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. The ultimate loss rates computed for each loan pool (a product of our quantitative calculation and qualitative adjustments) are used to estimate the allowance for credit losses on unfunded lending commitments. The pooled loan loss rates are applied to the portion of the unfunded lending commitments that management expects to fund in the future. These unfunded commitments are segmented into pools consistent with our grouping of outstanding loans and include available portions of lines of credit, undisbursed portions of construction loans and commitments to originate new loans. The Company has identified the following portfolio segments based on the risk characteristics described below. One- to four-family residential – Commercial real estate – Construction and land – Multi-family residential – Commercial and industrial – Consumer Loans are individually evaluated for credit losses when they do not share similar risk characteristics with our identified loan pools under ASC 326. Generally, management considers loans for individual analysis when the outstanding balance is greater than $50,000 and when we have identified certain unique characteristics that impact the risk of credit loss. These characteristics include, but are not limited to, the creditworthiness of the borrower, the reliability of the primary source of repayment, the quality of the collateral, the size of the loan or relationship, and the industry of the borrower. The allowance for credit losses on individually evaluated, collateral-dependent loans is based on a comparison of the recorded investment in the loan with the fair value of the underlying collateral. Alternatively, we estimate credit losses on individual loans by comparing the loan’s recorded investment to the loan’s estimated fair value based on discounted cash flows or an observable market price. At adoption of ASC 326, management also evaluated its securities portfolio for credit losses. The types of securities in the Company’s portfolio have a long history of minimal credit risk and management does not expect or estimate any credit losses to occur over the life of these assts. In addition, management does not have the intent to sell any of the Company’s securities in an unrealized loss position and believes that it is more likely than not that the Company will not have to sell any such securities before recovery of cost. As a result, the Company has not recorded an allowance for credit losses for its held-to-maturity or available-for-sale securities. ASU No. 2022-02. |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update 2016-13 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Schedule of impact of ASC topic 326 | December 31, ASC 326 Adoption January 1, (Dollars in thousands) 2022 Impact 2023 Allowance for credit losses One- to four-family residential $ 1,224 $ 158 $ 1,382 Commercial real estate 248 (53) 195 Construction and land 74 40 114 Multi-family residential 40 5 45 Commercial and industrial 175 51 226 Consumer 46 8 54 Total allowance for loan losses $ 1,807 $ 209 $ 2,016 Unfunded lending commitments (1) - 216 216 Total allowance for credit losses $ 1,807 $ 425 $ 2,232 Retained Earnings Total increase in the allowance for credit losses $ 425 Tax effect (90) Decrease to retained earnings, net of tax effect $ 335 (1) The allowance for credit losses on unfunded lending commitments is recorded within “other liabilities” on the statement of financial condition. The related provision for credit losses for unfunded lending commitments is recorded with the provision for loan losses and reported in aggregate as the provision for credit losses on the income statement. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
Schedule of earnings per common share | Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator Net income available to common shareholders $ 170 $ 135 $ 282 $ 9 Denominator Weighted average common shares outstanding 4,901 5,290 5,033 5,290 Weighted average unallocated common stock held by benefit plans (588) (405) (597) (410) Weighted average shares - basic 4,313 4,885 4,436 4,880 Effect of dilutive stock-based awards: Stock options - - - - Restricted stock 11 - 6 - Weighted average shares - assuming dilution 4,324 4,885 4,442 4,880 Basic earnings per common share $ 0.03 $ 0.03 $ 0.06 $ 0.01 Diluted earnings per common share 0.03 0.03 0.06 0.01 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair values of securities | September 30, 2023 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities available-for-sale Mortgage-backed securities $ 67,604 $ - $ (11,181) $ 56,423 U.S. Government and agency obligations 10,985 - (949) 10,036 Municipal obligations 6,014 - (665) 5,349 Total available-for-sale $ 84,603 $ - $ (12,795) $ 71,808 Securities held-to-maturity U.S. Government and agency obligations $ 13,004 $ - $ (2,846) $ 10,158 Municipal obligations 460 - (45) 415 Total held-to-maturity $ 13,464 $ - $ (2,891) $ 10,573 December 31, 2022 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities available-for-sale Mortgage-backed securities $ 74,044 $ 15 $ (9,892) $ 64,167 U.S. Government and agency obligations 10,979 - (1,062) 9,917 Municipal obligations 6,065 4 (551) 5,518 Total available-for-sale $ 91,088 $ 19 $ (11,505) $ 79,602 Securities held-to-maturity U.S. Government and agency obligations $ 13,006 $ - $ (2,718) $ 10,288 Municipal obligations 469 - (33) 436 Total held-to-maturity $ 13,475 $ - $ (2,751) $ 10,724 |
Schedule of maturities of securities held-to-maturity and available-for-sale | September 30, 2023 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: One year or less $ 1,000 $ 993 $ - $ - After one through five years 12,984 12,154 2,336 2,014 After five through ten years 16,883 14,951 7,124 5,561 After ten years 53,736 43,710 4,004 2,998 Total $ 84,603 $ 71,808 $ 13,464 $ 10,573 December 31, 2022 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: One year or less $ 1,000 $ 962 $ - $ - After one through five years 11,496 10,634 2,343 2,031 After five through ten years 17,139 15,699 7,125 5,611 After ten years 61,453 52,307 4,007 3,082 Total $ 91,088 $ 79,602 $ 13,475 $ 10,724 |
Schedule of securities with gross unrealized losses | September 30, 2023 Less than 12 Months 12 Months or Greater Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale Mortgage-backed securities $ 1,534 $ (47) $ 54,889 $ (11,134) $ 56,423 $ (11,181) U.S. Government and agency obligations - - 10,036 (949) 10,036 (949) Municipal obligations 1,597 (45) 3,752 (620) 5,349 (665) Total available-for-sale $ 3,131 $ (92) $ 68,677 $ (12,703) $ 71,808 $ (12,795) Securities held-to-maturity U.S. Government and agency obligations $ - $ - $ 10,158 $ (2,846) $ 10,158 $ (2,846) Municipal obligations - - 415 (45) 415 (45) Total held-to-maturity $ - $ - $ 10,573 $ (2,891) $ 10,573 $ (2,891) Total $ 3,131 $ (92) $ 79,250 $ (15,594) $ 82,381 $ (15,686) December 31, 2022 Less than 12 Months 12 Months or Greater Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale Mortgage-backed securities $ 9,759 $ (546) $ 53,402 $ (9,346) $ 63,161 $ (9,892) U.S. Government and agency obligations - - 9,917 (1,062) 9,917 (1,062) Municipal obligations 602 (16) 3,885 (535) 4,487 (551) Total available-for-sale $ 10,361 $ (562) $ 67,204 $ (10,943) $ 77,565 $ (11,505) Securities held-to-maturity U.S. Government and agency obligations $ - $ - $ 10,288 $ (2,718) $ 10,288 $ (2,718) Municipal obligations 120 (6) 316 (27) 436 (33) Total held-to-maturity $ 120 $ (6) $ 10,604 $ (2,745) $ 10,724 $ (2,751) Total $ 10,481 $ (568) $ 77,808 $ (13,688) $ 88,289 $ (14,256) |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
LOANS RECEIVABLE | |
Schedule of loans receivable | September 30, December 31, (Dollars in thousands) 2023 2022 Real estate loans One- to four-family residential $ 83,973 $ 87,508 Commercial real estate 19,113 19,437 Construction and land 6,622 6,172 Multi-family residential 3,424 3,200 Total real estate loans 113,132 116,317 Other loans Commercial and industrial 19,634 13,843 Consumer 2,906 3,447 Total other loans 22,540 17,290 Total loans 135,672 133,607 Less: Allowance for loan losses (2,036) (1,807) Net loans $ 133,636 $ 131,800 |
Schedule of changes in the allowance for loan losses | The following tables outline the changes in the allowance for loan losses for the nine months ended September 30, 2023 and 2022. For the Nine Months Ended September 30, 2023 (Dollars in thousands) Beginning Balance ASC 326 Adoption Impact (1) Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for credit losses One- to four-family residential $ 1,224 $ 158 $ (299) $ - $ 98 $ 1,181 Commercial real estate 248 (53) (5) - - 190 Construction and land 74 40 48 - - 162 Multi-family residential 40 5 (2) - - 43 Commercial and industrial 175 51 73 - 1 300 Consumer 46 8 2 (26) 11 41 Unallocated - - 119 - - 119 Total for loans $ 1,807 $ 209 $ (64) $ (26) $ 110 $ 2,036 Unfunded lending commitments (2) - 216 64 - - 280 Total $ 1,807 $ 425 $ - $ (26) $ 110 $ 2,316 (1) Refer to Note 2 for more information on the adoption of ASC 326. (2) The allowance for credit losses on unfunded lending commitments is recorded within “other liabilities” on the statement of financial condition. The related provision for credit losses for unfunded lending commitments is recorded with the provision for loan losses and reported in aggregate as the provision for credit losses on the income statement. For the Nine Months Ended September 30, 2022 (Dollars in thousands) Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for loan losses One- to four-family residential $ 1,573 $ (232) $ (154) $ 70 $ 1,257 Commercial real estate 370 (101) - - 269 Construction and land 55 (10) - - 45 Multi-family residential 73 (33) - - 40 Commercial and industrial 137 4 (21) 19 139 Consumer 68 (3) (16) 5 54 Total $ 2,276 $ (375) $ (191) $ 94 $ 1,804 The following tables outline the allowance for loan losses and the balance of loans by method of loss evaluation at September 30, 2023 and December 31, 2022. September 30, 2023 December 31, 2022 (Dollars in thousands) Individually Evaluated Collectively Evaluated Total Individually Evaluated Collectively Evaluated Total Allowance for loan losses One- to four-family residential $ 127 $ 1,054 $ 1,181 $ 216 $ 1,008 $ 1,224 Commercial real estate - 190 190 - 248 248 Construction and land 49 113 162 - 74 74 Multi-family residential - 43 43 - 40 40 Commercial and industrial - 300 300 - 175 175 Consumer - 41 41 - 46 46 Unallocated - 119 119 - - - Total $ 176 $ 1,860 $ 2,036 $ 216 $ 1,591 $ 1,807 Loans One- to four-family residential $ 957 $ 83,016 $ 83,973 $ 2,712 $ 84,796 $ 87,508 Commercial real estate 50 19,063 19,113 51 19,386 19,437 Construction and land 135 6,487 6,622 33 6,139 6,172 Multi-family residential - 3,424 3,424 - 3,200 3,200 Commercial and industrial - 19,634 19,634 - 13,843 13,843 Consumer - 2,906 2,906 - 3,447 3,447 Total $ 1,142 $ 134,530 $ 135,672 $ 2,796 $ 130,811 $ 133,607 |
Summary of current, past due and nonaccrual loans | As of September 30, 2023 (Dollars in thousands) Past Due 30-89 Days and Accruing Past Due Over 90 Days and Accruing Past Due Over 30 Days and Non-accruing Total Past Due Current and Accruing Current and Non-accruing Total Loans One- to four-family residential $ 1,473 $ 127 $ 1,038 $ 2,638 $ 80,505 $ 830 $ 83,973 Commercial real estate 110 - 50 160 18,953 - 19,113 Construction and land - - - - 6,579 43 6,622 Multi-family residential - - - - 3,424 - 3,424 Commercial and industrial 113 - - 113 19,521 - 19,634 Consumer 14 - - 14 2,892 - 2,906 Total $ 1,710 $ 127 $ 1,088 $ 2,925 $ 131,874 $ 873 $ 135,672 As of December 31, 2022 (Dollars in thousands) Past Due 30-89 Days and Accruing Past Due Over 90 Days and Accruing Past Due Over 30 Days and Non-accruing Total Past Due Current and Accruing Current and Non-accruing Total Loans One- to four-family residential $ 2,077 $ 191 $ 716 $ 2,984 $ 83,848 $ 676 $ 87,508 Commercial real estate 166 - 51 217 19,220 - 19,437 Construction and land 156 - 18 174 5,965 33 6,172 Multi-family residential - - - - 3,200 - 3,200 Commercial and industrial - - - - 13,843 - 13,843 Consumer 6 - - 6 3,441 - 3,447 Total $ 2,405 $ 191 $ 785 $ 3,381 $ 129,517 $ 709 $ 133,607 |
Schedule of nonaccrual loans | December 31, September 30, 2023 2022 (Dollars in thousands) With Allowance for Credit Loss Without Allowance for Credit Loss Total Total Nonaccrual loans One- to four-family residential $ 1,673 $ 195 $ 1,868 $ 1,392 Commercial real estate - 50 50 51 Construction and land 43 - 43 51 Multi-family residential - - - - Commercial and industrial - - - - Consumer - - - - Total $ 1,716 $ 245 $ 1,961 $ 1,494 |
Schedule of impaired loans | Information on impaired loans as of December 31, 2022 follows: December 31, 2022 (Dollars in thousands) Recorded Investment Without an Allowance Recorded Investment With an Allowance Unpaid Principal Related Allowance One- to four-family residential $ 1,843 $ 869 $ 3,149 $ 216 Commercial real estate 51 - 52 - Construction and land 33 - 42 - Multi-family residential - - - - Commercial and industrial - - - - Consumer - - - - Total $ 1,927 $ 869 $ 3,243 $ 216 The table below presents the average balances and interest income for impaired loans for the three and nine months ended September 30, 2022. Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four-family residential $ 2,655 $ 16 $ 2,718 $ 49 Commercial real estate 50 - 51 - Construction and land 34 - 35 - Multi-family residential - - - - Commercial and industrial - - - - Consumer 12 - 13 - Total $ 2,751 $ 16 $ 2,817 $ 49 |
Schedule of credit quality indicators | Line-of-credit Arrangements Term Loans by Origination Year Line-of-credit Converted to (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Arrangements Term Loans Total One- to four-family residential Pass $ 1,695 $ 11,175 $ 3,308 $ 2,994 $ 3,230 $ 55,100 $ 1,603 $ 2,031 $ 81,136 Special Mention - - - - - - - - - Substandard 24 - 12 126 13 2,662 - - 2,837 Doubtful - - - - - - - - - Total $ 1,719 $ 11,175 $ 3,320 $ 3,120 $ 3,243 $ 57,762 $ 1,603 $ 2,031 $ 83,973 Commercial real estate Pass $ 1,790 $ 2,067 $ 2,049 $ 4,396 $ 3,470 $ 4,445 $ 33 $ 355 $ 18,605 Special Mention - 110 106 - - - - - 216 Substandard - - - - - 292 - - 292 Doubtful - - - - - - - - - Total $ 1,790 $ 2,177 $ 2,155 $ 4,396 $ 3,470 $ 4,737 $ 33 $ 355 $ 19,113 Construction and land Pass $ 57 $ 188 $ 57 $ 70 $ 46 $ 498 $ 5,528 $ - $ 6,444 Special Mention - - - - - - - - - Substandard - 135 - 14 - 29 - - 178 Doubtful - - - - - - - - - Total $ 57 $ 323 $ 57 $ 84 $ 46 $ 527 $ 5,528 $ - $ 6,622 Multi-family residential Pass $ 382 $ - $ 470 $ - $ 282 $ 2,290 $ - $ - $ 3,424 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 382 $ - $ 470 $ - $ 282 $ 2,290 $ - $ - $ 3,424 Commercial and industrial Pass $ 5,989 $ 2,490 $ 853 $ 326 $ 303 $ 70 $ 9,603 $ - $ 19,634 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 5,989 $ 2,490 $ 853 $ 326 $ 303 $ 70 $ 9,603 $ - $ 19,634 Consumer Pass $ 914 $ 559 $ 700 $ 311 $ 199 $ 223 $ - $ - $ 2,906 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 914 $ 559 $ 700 $ 311 $ 199 $ 223 $ - $ - $ 2,906 Total Pass $ 10,827 $ 16,479 $ 7,437 $ 8,097 $ 7,530 $ 62,626 $ 16,767 $ 2,386 $ 132,149 Special Mention - 110 106 - - - - - 216 Substandard 24 135 12 140 13 2,983 - - 3,307 Doubtful - - - - - - - - - Total $ 10,851 $ 16,724 $ 7,555 $ 8,237 $ 7,543 $ 65,609 $ 16,767 $ 2,386 $ 135,672 December 31, 2022 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total One- to four-family residential $ 84,219 $ 171 $ 3,118 $ - $ 87,508 Commercial real estate 19,334 - 103 - 19,437 Construction and land 5,822 291 59 - 6,172 Multi-family residential 3,200 - - - 3,200 Commercial and industrial 13,843 - - - 13,843 Consumer 3,447 - - - 3,447 Total $ 129,865 $ 462 $ 3,280 $ - $ 133,607 |
Schedule of gross charge-offs and recoveries | Loan Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Charge-offs One- to four-family residential $ - $ - $ - $ - $ - $ - $ - Commercial real estate - - - - - - - Construction and land - - - - - - - Multi-family residential - - - - - - - Commercial and industrial - - - - - - - Consumer 4 5 9 1 2 5 26 Total $ 4 $ 5 $ 9 $ 1 $ 2 $ 5 $ 26 Recoveries One- to four-family residential $ - $ - $ - $ - $ - $ 98 $ 98 Commercial real estate - - - - - - - Construction and land - - - - - - - Multi-family residential - - - - - - - Commercial and industrial - - - - - 1 1 Consumer - - 2 1 - 8 11 Total $ - $ - $ 2 $ 1 $ - $ 107 $ 110 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
DEPOSITS. | |
Schedule of deposits | September 30, 2023 December 31, 2022 (Dollars in thousands) Amount Percent Amount Percent Non-interest-bearing demand deposits $ 33,222 20.1 % $ 33,657 20.4 % Interest-bearing demand deposits 38,881 23.5 36,991 22.4 Money market 15,473 9.4 15,734 9.5 Savings 27,237 16.5 26,209 15.9 Certificates of deposit 50,407 30.5 52,503 31.8 Total deposits $ 165,220 100.0 % $ 165,094 100.0 % |
Schedule of maturities of certificates of deposit | (Dollars in thousands) Amount 2023 $ 10,527 2024 34,662 2025 3,616 2026 1,002 2027 451 2028 149 Total $ 50,407 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
BORROWED FUNDS | |
Summary of borrowed funds | September 30, 2023 December 31, 2022 (Dollars in thousands) Rate Amount Rate Amount Advances from Federal Home Loan Bank 0.65 % $ 3,000 0.65 % $ 3,000 0.96 3,000 0.96 3,000 1.12 4,000 1.12 4,000 10,000 10,000 Debt modification discount (667) (802) $ 9,333 $ 9,198 |
Summary of borrowed funds maturities | (Dollars in thousands) Amount Amounts maturing in: 2024 $ - 2025 3,000 2026 - 2027 3,000 2028 4,000 Total $ 10,000 |
CAPITAL AND REGULATORY MATTERS
CAPITAL AND REGULATORY MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
CAPITAL AND REGULATORY MATTERS | |
Schedule of actual and required capital amounts and ratios | Actual To be Well Capitalized under the Prompt Corrective Action Provision (Dollars in thousands) Amount Ratio Amount Ratio As of September 30, 2023 Common Equity Tier 1 Capital $ 78,925 54.97 % $ 9,332 >6.5 % Tier 1 Risk-Based Capital 78,925 54.97 11,486 >8.0 Total Risk-Based Capital 80,726 56.23 14,357 >10.0 Tier 1 Leverage Capital 78,925 31.08 12,697 >5.0 As of December 31, 2022 Common Equity Tier 1 Capital $ 78,527 56.17 % $ 9,087 >6.5 % Tier 1 Risk-Based Capital 78,527 56.17 11,184 >8.0 Total Risk-Based Capital 80,275 57.42 13,980 >10.0 Tier 1 Leverage Capital 78,527 30.37 12,929 >5.0 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair values of assets and liabilities measured on a recurring and nonrecurring basis | Fair values of assets and liabilities measured on a recurring basis at September 30, 2023 and December 31, 2022 follows: Fair Value Measurements at Reporting Date Using (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 September 30, 2023 Available-for-sale securities $ 71,808 $ - $ 71,808 $ - December 31, 2022 Available-for-sale securities $ 79,602 $ - $ 79,602 $ - Fair values of assets and liabilities measured on a nonrecurring basis at September 30, 2023 and December 31, 2022 follows: Fair Value Measurements at Reporting Date Using (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 September 30, 2023 Loans individually evaluated for credit losses $ 457 $ - $ - $ 457 Foreclosed assets 37 - - 37 Total $ 494 $ - $ - $ 494 December 31, 2022 Loans individually evaluated for credit losses $ 898 $ - $ - $ 898 Foreclosed assets 320 - - 320 Total $ 1,218 $ - $ - $ 1,218 |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of estimated fair values of the Bank's financial instruments | September 30, 2023 (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 13,266 $ 13,266 $ 13,266 $ - $ - Investment securities: Available-for-sale 71,808 71,808 - 71,808 - Held-to-maturity 13,464 10,573 - 10,573 - Loans receivable, net 133,636 122,993 - - 122,993 Bank-owned life insurance 13,917 13,917 - 13,917 - Financial Liabilities: Deposits 165,220 164,081 - 164,081 - Borrowed funds 9,333 8,489 - 8,489 - December 31, 2022 (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 13,472 $ 13,472 $ 13,472 $ - $ - Investment securities: Available-for-sale 79,602 79,602 - 79,602 - Held-to-maturity 13,475 10,724 - 10,724 - Loans receivable, net 131,800 121,208 - - 121,208 Bank-owned life insurance 13,617 13,617 - 13,617 - Financial Liabilities: Deposits 165,094 163,797 - 163,797 - Borrowed funds 9,198 8,484 - 8,484 - |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Sep. 30, 2023 location |
BASIS OF PRESENTATION | |
Number of full-service locations | 6 |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS - Impact of ASC Topic 326 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | $ 2,036 | $ 1,804 | $ 2,036 | $ 1,804 | $ 1,807 | $ 2,276 |
Income tax expense (benefit) | 27 | 13 | 19 | (49) | ||
Retained earnings | 52,687 | 52,687 | 52,740 | |||
One- to four-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 1,181 | 1,257 | 1,181 | 1,257 | 1,224 | 1,573 |
Commercial real estate | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 190 | 269 | 190 | 269 | 248 | 370 |
Construction and land | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 162 | 45 | 162 | 45 | 74 | 55 |
Multi-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 43 | 40 | 43 | 40 | 40 | 73 |
Commercial and industrial | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 300 | 139 | 300 | 139 | 175 | 137 |
Consumer | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 41 | $ 54 | 41 | $ 54 | 46 | $ 68 |
Loans Receivable | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 2,036 | 2,036 | 1,807 | |||
Loans Receivable | One- to four-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 1,181 | 1,181 | 1,224 | |||
Loans Receivable | Commercial real estate | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 190 | 190 | 248 | |||
Loans Receivable | Construction and land | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 162 | 162 | 74 | |||
Loans Receivable | Multi-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 43 | 43 | 40 | |||
Loans Receivable | Commercial and industrial | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 300 | 300 | 175 | |||
Loans Receivable | Consumer | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 41 | 41 | 46 | |||
Adoption impact | Loans Receivable | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 209 | 209 | ||||
Adoption impact | Loans Receivable | One- to four-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 158 | 158 | ||||
Adoption impact | Loans Receivable | Commercial real estate | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | (53) | (53) | ||||
Adoption impact | Loans Receivable | Construction and land | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 40 | 40 | ||||
Adoption impact | Loans Receivable | Multi-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 5 | 5 | ||||
Adoption impact | Loans Receivable | Commercial and industrial | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 51 | 51 | ||||
Adoption impact | Loans Receivable | Consumer | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | $ 8 | $ 8 | ||||
Accounting Standards Update 2016-13 | Adoption impact | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 425 | |||||
Income tax expense (benefit) | (90) | |||||
Retained earnings | 335 | |||||
Accounting Standards Update 2016-13 | Adoption impact | One- to four-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 158 | |||||
Accounting Standards Update 2016-13 | Adoption impact | Commercial real estate | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | (53) | |||||
Accounting Standards Update 2016-13 | Adoption impact | Construction and land | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 40 | |||||
Accounting Standards Update 2016-13 | Adoption impact | Multi-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 5 | |||||
Accounting Standards Update 2016-13 | Adoption impact | Commercial and industrial | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 51 | |||||
Accounting Standards Update 2016-13 | Adoption impact | Consumer | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 8 | |||||
Accounting Standards Update 2016-13 | Adoption impact | Loans Receivable | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 209 | |||||
Accounting Standards Update 2016-13 | Adoption impact | Unfunded lending commitments | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 216 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 2,232 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | One- to four-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 1,382 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | Commercial real estate | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 195 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | Construction and land | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 114 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | Multi-family residential | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 45 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | Commercial and industrial | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 226 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | Consumer | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 54 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | Loans Receivable | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | 2,016 | |||||
Accounting Standards Update 2016-13 | Adjusted balance | Unfunded lending commitments | ||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||
Allowance for credit losses | $ 216 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||
Net income available to common shareholders | $ 170 | $ 135 | $ 282 | $ 9 |
Denominator | ||||
Weighted average common shares outstanding | 4,901,000 | 5,290,000 | 5,033,000 | 5,290,000 |
Weighted average unallocated common stock held by benefit plans | (588,000) | (405,000) | (597,000) | (410,000) |
Weighted average shares - basic | 4,313,000 | 4,885,000 | 4,436,000 | 4,880,000 |
Effect of dilutive shares: | ||||
Weighted average shares - assuming dilution | 4,324,000 | 4,885,000 | 4,442,000 | 4,880,000 |
Basic earnings per common share | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.01 |
Diluted earnings per common share | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.01 |
Potential dilution of earnings per share. | 0 | 0 | ||
Stock options | ||||
Effect of dilutive shares: | ||||
Potential dilution of earnings per share. | 280,620 | 290,379 | ||
Restricted stock | ||||
Effect of dilutive shares: | ||||
Potential dilution of earnings per share. | 0 | 39,779 | ||
Restricted stock | ||||
Effect of dilutive shares: | ||||
Effect of dilutive stock-based awards | 11,000 | 6,000 |
INVESTMENT SECURITIES - Fair Va
INVESTMENT SECURITIES - Fair Value to Amortized Cost (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Securities Available-for-Sale | |||
Amortized cost | $ 84,603,000 | $ 91,088,000 | |
Gross Unrealized Gains | 19,000 | ||
Gross Unrealized Losses | (12,795,000) | (11,505,000) | |
Available-for-sale securities | 71,808,000 | 79,602,000 | |
Securities Held-to-Maturity | |||
Amortized cost | 13,464,000 | 13,475,000 | |
Gross Unrealized Losses | (2,891,000) | (2,751,000) | |
Fair Value | 10,573,000 | 10,724,000 | |
Securities transferred between classifications | 0 | $ 0 | |
Accrued interest receivable on investment securities | 243,000 | 257,000 | |
Asset Pledged as Collateral | Deposits | |||
Securities Available-for-Sale | |||
Available-for-sale securities | 43,600,000 | 20,400,000 | |
Asset Pledged as Collateral | Federal Reserve Bank Advances | |||
Securities Available-for-Sale | |||
Available-for-sale securities | 1,000,000 | ||
Mortgage-backed | |||
Securities Available-for-Sale | |||
Amortized cost | 67,604,000 | 74,044,000 | |
Gross Unrealized Gains | 15,000 | ||
Gross Unrealized Losses | (11,181,000) | (9,892,000) | |
Available-for-sale securities | 56,423,000 | 64,167,000 | |
U.S. Government and agency obligations | |||
Securities Available-for-Sale | |||
Amortized cost | 10,985,000 | 10,979,000 | |
Gross Unrealized Losses | (949,000) | (1,062,000) | |
Available-for-sale securities | 10,036,000 | 9,917,000 | |
Securities Held-to-Maturity | |||
Amortized cost | 13,004,000 | 13,006,000 | |
Gross Unrealized Losses | (2,846,000) | (2,718,000) | |
Fair Value | 10,158,000 | 10,288,000 | |
Municipal obligations | |||
Securities Available-for-Sale | |||
Amortized cost | 6,014,000 | 6,065,000 | |
Gross Unrealized Gains | 4,000 | ||
Gross Unrealized Losses | (665,000) | (551,000) | |
Available-for-sale securities | 5,349,000 | 5,518,000 | |
Securities Held-to-Maturity | |||
Amortized cost | 460,000 | 469,000 | |
Gross Unrealized Losses | (45,000) | (33,000) | |
Fair Value | $ 415,000 | $ 436,000 |
INVESTMENT SECURITIES - Maturit
INVESTMENT SECURITIES - Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 1,000 | $ 1,000 |
Due from one to five years | 12,984 | 11,496 |
Due from five to ten years | 16,883 | 17,139 |
After ten years | 53,736 | 61,453 |
Total | 84,603 | 91,088 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 993 | 962 |
Due from one to five years | 12,154 | 10,634 |
Due from five to ten years | 14,951 | 15,699 |
After ten years | 43,710 | 52,307 |
Total | 71,808 | 79,602 |
Held-to-maturity securities, Amortized cost | ||
Due from one to five years | 2,336 | 2,343 |
Due from five to ten years | 7,124 | 7,125 |
After ten years | 4,004 | 4,007 |
Total | 13,464 | 13,475 |
Held-to-maturity securities, Fair value | ||
Due from one to five years | 2,014 | 2,031 |
Due from five to ten years | 5,561 | 5,611 |
After ten years | 2,998 | 3,082 |
Total | $ 10,573 | $ 10,724 |
INVESTMENT SECURITIES - Securit
INVESTMENT SECURITIES - Securities with Gross Unrealized Losses (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) security | Sep. 30, 2023 USD ($) security | |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months | $ 10,361 | $ 3,131 |
Over 12 months | 67,204 | 68,677 |
Fair value | 77,565 | 71,808 |
Securities Available-for-Sale, Gross Unrealized Losses | ||
Less than 12 months | (562) | (92) |
Over 12 months | (10,943) | (12,703) |
Gross unrealized losses | (11,505) | (12,795) |
Securities Held-to-Maturity, Fair Value | ||
Less than 12 months | 120 | |
Over 12 months | 10,604 | 10,573 |
Fair value | 10,724 | 10,573 |
Securities Held-to-Maturity, Gross Unrealized Losses | ||
Less than 12 months | (6) | |
Over 12 months | (2,745) | (2,891) |
Gross unrealized losses | (2,751) | (2,891) |
Total, Fair Value | ||
Less than 12 months | 10,481 | 3,131 |
Over 12 months | 77,808 | 79,250 |
Fair value | 88,289 | 82,381 |
Total, Gross Unrealized Losses | ||
Less than 12 months | (568) | (92) |
Over 12 months | (13,688) | (15,594) |
Gross unrealized losses | $ (14,256) | $ (15,686) |
Number of securities in unrealized loss position | security | 96 | 98 |
Other-than-temporary impairment | $ 0 | |
Mortgage-backed | ||
Securities Available-for-Sale, Fair Value | ||
Less than 12 months | 9,759 | $ 1,534 |
Over 12 months | 53,402 | 54,889 |
Fair value | 63,161 | 56,423 |
Securities Available-for-Sale, Gross Unrealized Losses | ||
Less than 12 months | (546) | (47) |
Over 12 months | (9,346) | (11,134) |
Gross unrealized losses | (9,892) | (11,181) |
U.S. Government and agency obligations | ||
Securities Available-for-Sale, Fair Value | ||
Over 12 months | 9,917 | 10,036 |
Fair value | 9,917 | 10,036 |
Securities Available-for-Sale, Gross Unrealized Losses | ||
Over 12 months | (1,062) | (949) |
Gross unrealized losses | (1,062) | (949) |
Securities Held-to-Maturity, Fair Value | ||
Over 12 months | 10,288 | 10,158 |
Fair value | 10,288 | 10,158 |
Securities Held-to-Maturity, Gross Unrealized Losses | ||
Over 12 months | (2,718) | (2,846) |
Gross unrealized losses | (2,718) | (2,846) |
Municipal obligations | ||
Securities Available-for-Sale, Fair Value | ||
Less than 12 months | 602 | 1,597 |
Over 12 months | 3,885 | 3,752 |
Fair value | 4,487 | 5,349 |
Securities Available-for-Sale, Gross Unrealized Losses | ||
Less than 12 months | (16) | (45) |
Over 12 months | (535) | (620) |
Gross unrealized losses | (551) | (665) |
Securities Held-to-Maturity, Fair Value | ||
Less than 12 months | 120 | |
Over 12 months | 316 | 415 |
Fair value | 436 | 415 |
Securities Held-to-Maturity, Gross Unrealized Losses | ||
Less than 12 months | (6) | |
Over 12 months | (27) | (45) |
Gross unrealized losses | $ (33) | $ (45) |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | $ 135,672 | $ 133,607 | ||
Less: Allowance for loan losses | (2,036) | (1,807) | $ (1,804) | $ (2,276) |
Loans receivable, net | 133,636 | 131,800 | ||
Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 113,132 | 116,317 | ||
Other loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 22,540 | 17,290 | ||
One- to four-family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 83,973 | 87,508 | ||
Less: Allowance for loan losses | (1,181) | (1,224) | (1,257) | (1,573) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 19,113 | 19,437 | ||
Less: Allowance for loan losses | (190) | (248) | (269) | (370) |
Construction and land | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 6,622 | 6,172 | ||
Less: Allowance for loan losses | (162) | (74) | (45) | (55) |
Multi-family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 3,424 | 3,200 | ||
Less: Allowance for loan losses | (43) | (40) | (40) | (73) |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 19,634 | 13,843 | ||
Less: Allowance for loan losses | (300) | (175) | (139) | (137) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 2,906 | 3,447 | ||
Less: Allowance for loan losses | $ (41) | $ (46) | $ (54) | $ (68) |
LOANS RECEIVABLE - Allowance fo
LOANS RECEIVABLE - Allowance for Loan Losses (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 1,807,000 | $ 2,276,000 |
Provision (Reversal) | (375,000) | |
Charge-offs | (26,000) | (191,000) |
Recoveries | 110,000 | 94,000 |
Ending balance | 2,036,000 | 1,804,000 |
Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,807,000 | |
Provision (Reversal) | (64,000) | |
Charge-offs | (26,000) | |
Recoveries | 110,000 | |
Ending balance | 2,036,000 | |
Loans and financing receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,807,000 | |
Charge-offs | (26,000) | |
Recoveries | 110,000 | |
Ending balance | 2,316,000 | |
Adoption impact | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 209,000 | |
Adoption impact | Loans and financing receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 425,000 | |
Unfunded lending commitments | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 280,000 | |
Unfunded lending commitments | Financing Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Provision (Reversal) | 64,000 | |
Ending balance | 280,000 | |
Unfunded lending commitments | Adoption impact | Financing Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 216,000 | |
One- to four-family residential | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,224,000 | 1,573,000 |
Provision (Reversal) | (232,000) | |
Charge-offs | (154,000) | |
Recoveries | 98,000 | 70,000 |
Ending balance | 1,181,000 | 1,257,000 |
One- to four-family residential | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,224,000 | |
Provision (Reversal) | (299,000) | |
Recoveries | 98,000 | |
Ending balance | 1,181,000 | |
One- to four-family residential | Adoption impact | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 158,000 | |
Commercial real estate | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 248,000 | 370,000 |
Provision (Reversal) | (101,000) | |
Ending balance | 190,000 | 269,000 |
Commercial real estate | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 248,000 | |
Provision (Reversal) | (5,000) | |
Ending balance | 190,000 | |
Commercial real estate | Adoption impact | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | (53,000) | |
Construction and land | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 74,000 | 55,000 |
Provision (Reversal) | (10,000) | |
Ending balance | 162,000 | 45,000 |
Construction and land | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 74,000 | |
Provision (Reversal) | 48,000 | |
Ending balance | 162,000 | |
Construction and land | Adoption impact | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 40,000 | |
Multi-family residential | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 40,000 | 73,000 |
Provision (Reversal) | (33,000) | |
Ending balance | 43,000 | 40,000 |
Multi-family residential | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 40,000 | |
Provision (Reversal) | (2,000) | |
Ending balance | 43,000 | |
Multi-family residential | Adoption impact | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 5,000 | |
Commercial and industrial | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 175,000 | 137,000 |
Provision (Reversal) | 4,000 | |
Charge-offs | (21,000) | |
Recoveries | 1,000 | 19,000 |
Ending balance | 300,000 | 139,000 |
Commercial and industrial | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 175,000 | |
Provision (Reversal) | 73,000 | |
Recoveries | 1,000 | |
Ending balance | 300,000 | |
Commercial and industrial | Adoption impact | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 51,000 | |
Consumer | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 46,000 | 68,000 |
Provision (Reversal) | (3,000) | |
Charge-offs | (26,000) | (16,000) |
Recoveries | 11,000 | 5,000 |
Ending balance | 41,000 | $ 54,000 |
Consumer | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 46,000 | |
Provision (Reversal) | 2,000 | |
Charge-offs | (26,000) | |
Recoveries | 11,000 | |
Ending balance | 41,000 | |
Consumer | Adoption impact | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 8,000 | |
Unallocated | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | 119,000 | |
Unallocated | Loans Receivable | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Provision (Reversal) | 119,000 | |
Ending balance | $ 119,000 |
LOANS RECEIVABLE - Individually
LOANS RECEIVABLE - Individually and Collectively Evaluated (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for loan losses: | ||||
Individually evaluated for impairment | $ 176 | $ 216 | ||
Collectively evaluated for impairment | 1,860 | 1,591 | ||
Total | 2,036 | 1,807 | $ 1,804 | $ 2,276 |
Loans: | ||||
Individually evaluated for impairment | 1,142 | 2,796 | ||
Collectively evaluated for impairment | 134,530 | 130,811 | ||
Total | 135,672 | 133,607 | ||
One- to four-family residential | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 127 | 216 | ||
Collectively evaluated for impairment | 1,054 | 1,008 | ||
Total | 1,181 | 1,224 | 1,257 | 1,573 |
Loans: | ||||
Individually evaluated for impairment | 957 | 2,712 | ||
Collectively evaluated for impairment | 83,016 | 84,796 | ||
Total | 83,973 | 87,508 | ||
Commercial real estate | ||||
Allowance for loan losses: | ||||
Collectively evaluated for impairment | 190 | 248 | ||
Total | 190 | 248 | 269 | 370 |
Loans: | ||||
Individually evaluated for impairment | 50 | 51 | ||
Collectively evaluated for impairment | 19,063 | 19,386 | ||
Total | 19,113 | 19,437 | ||
Construction and land | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 49 | |||
Collectively evaluated for impairment | 113 | 74 | ||
Total | 162 | 74 | 45 | 55 |
Loans: | ||||
Individually evaluated for impairment | 135 | 33 | ||
Collectively evaluated for impairment | 6,487 | 6,139 | ||
Total | 6,622 | 6,172 | ||
Multi-family residential | ||||
Allowance for loan losses: | ||||
Collectively evaluated for impairment | 43 | 40 | ||
Total | 43 | 40 | 40 | 73 |
Loans: | ||||
Collectively evaluated for impairment | 3,424 | 3,200 | ||
Total | 3,424 | 3,200 | ||
Commercial and industrial | ||||
Allowance for loan losses: | ||||
Collectively evaluated for impairment | 300 | 175 | ||
Total | 300 | 175 | 139 | 137 |
Loans: | ||||
Collectively evaluated for impairment | 19,634 | 13,843 | ||
Total | 19,634 | 13,843 | ||
Consumer | ||||
Allowance for loan losses: | ||||
Collectively evaluated for impairment | 41 | 46 | ||
Total | 41 | 46 | $ 54 | $ 68 |
Loans: | ||||
Collectively evaluated for impairment | 2,906 | 3,447 | ||
Total | 2,906 | $ 3,447 | ||
Unallocated | ||||
Allowance for loan losses: | ||||
Collectively evaluated for impairment | 119 | |||
Total | $ 119 |
LOANS RECEIVABLE - Current, Pas
LOANS RECEIVABLE - Current, Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | $ 135,672 | $ 133,607 |
Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 2,925 | 3,381 |
Past Due 30-89 Days Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 1,710 | 2,405 |
Past Due Over 90 Days and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 127 | 191 |
Past Due Over 30 Days Non-Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 1,088 | 785 |
Current and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 131,874 | 129,517 |
Current and Non-Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 873 | 709 |
One- to four-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 83,973 | 87,508 |
One- to four-family residential | Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 2,638 | 2,984 |
One- to four-family residential | Past Due 30-89 Days Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 1,473 | 2,077 |
One- to four-family residential | Past Due Over 90 Days and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 127 | 191 |
One- to four-family residential | Past Due Over 30 Days Non-Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 1,038 | 716 |
One- to four-family residential | Current and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 80,505 | 83,848 |
One- to four-family residential | Current and Non-Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 830 | 676 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 19,113 | 19,437 |
Commercial real estate | Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 160 | 217 |
Commercial real estate | Past Due 30-89 Days Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 110 | 166 |
Commercial real estate | Past Due Over 30 Days Non-Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 50 | 51 |
Commercial real estate | Current and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 18,953 | 19,220 |
Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 6,622 | 6,172 |
Construction and land | Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 174 | |
Construction and land | Past Due 30-89 Days Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 156 | |
Construction and land | Past Due Over 30 Days Non-Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 18 | |
Construction and land | Current and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 6,579 | 5,965 |
Construction and land | Current and Non-Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 43 | 33 |
Multi-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 3,424 | 3,200 |
Multi-family residential | Current and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 3,424 | 3,200 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 19,634 | 13,843 |
Commercial and industrial | Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 113 | |
Commercial and industrial | Past Due 30-89 Days Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 113 | |
Commercial and industrial | Current and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 19,521 | 13,843 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 2,906 | 3,447 |
Consumer | Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 14 | 6 |
Consumer | Past Due 30-89 Days Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | 14 | 6 |
Consumer | Current and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, net | $ 2,892 | $ 3,441 |
LOANS RECEIVABLE - Nonaccrual L
LOANS RECEIVABLE - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
With Allowance for Credit Loss | $ 1,716 | |
Without Allowance for Credit Loss | 245 | |
Total | 1,961 | $ 1,494 |
One- to four-family residential | ||
Financing Receivable, Past Due [Line Items] | ||
With Allowance for Credit Loss | 1,673 | |
Without Allowance for Credit Loss | 195 | |
Total | 1,868 | 1,392 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Without Allowance for Credit Loss | 50 | |
Total | 50 | 51 |
Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
With Allowance for Credit Loss | 43 | |
Total | $ 43 | $ 51 |
LOANS RECEIVABLE - Impaired Loa
LOANS RECEIVABLE - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment Without an Allowance | $ 1,927 | ||
Recorded Investment With an Allowance | 869 | ||
Unpaid Principal Balance | 3,243 | ||
Related Allowance | 216 | ||
Average Recorded Investment | $ 2,751 | $ 2,817 | |
Interest Income Recognized | 16 | 49 | |
One- to four-family residential | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment Without an Allowance | 1,843 | ||
Recorded Investment With an Allowance | 869 | ||
Unpaid Principal Balance | 3,149 | ||
Related Allowance | 216 | ||
Average Recorded Investment | 2,655 | 2,718 | |
Interest Income Recognized | 16 | 49 | |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment Without an Allowance | 51 | ||
Unpaid Principal Balance | 52 | ||
Average Recorded Investment | 50 | 51 | |
Construction and land | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment Without an Allowance | 33 | ||
Unpaid Principal Balance | $ 42 | ||
Average Recorded Investment | 34 | 35 | |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 12 | $ 13 |
LOANS RECEIVABLE - Credit Quali
LOANS RECEIVABLE - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans | ||
2023 | $ 10,851 | |
2022 | 16,724 | |
2021 | 7,555 | |
2020 | 8,237 | |
2019 | 7,543 | |
Prior | 65,609 | |
Line-of-credit Arrangements | 16,767 | |
Line-of-credit Arrangements Converted to Term Loans | 2,386 | |
Total | 135,672 | $ 133,607 |
Pass | ||
Loans | ||
2023 | 10,827 | |
2022 | 16,479 | |
2021 | 7,437 | |
2020 | 8,097 | |
2019 | 7,530 | |
Prior | 62,626 | |
Line-of-credit Arrangements | 16,767 | |
Line-of-credit Arrangements Converted to Term Loans | 2,386 | |
Total | 132,149 | 129,865 |
Special Mention | ||
Loans | ||
2022 | 110 | |
2021 | 106 | |
Total | 216 | 462 |
Substandard | ||
Loans | ||
2023 | 24 | |
2022 | 135 | |
2021 | 12 | |
2020 | 140 | |
2019 | 13 | |
Prior | 2,983 | |
Total | 3,307 | 3,280 |
One- to four-family residential | ||
Loans | ||
2023 | 1,719 | |
2022 | 11,175 | |
2021 | 3,320 | |
2020 | 3,120 | |
2019 | 3,243 | |
Prior | 57,762 | |
Line-of-credit Arrangements | 1,603 | |
Line-of-credit Arrangements Converted to Term Loans | 2,031 | |
Total | 83,973 | 87,508 |
One- to four-family residential | Pass | ||
Loans | ||
2023 | 1,695 | |
2022 | 11,175 | |
2021 | 3,308 | |
2020 | 2,994 | |
2019 | 3,230 | |
Prior | 55,100 | |
Line-of-credit Arrangements | 1,603 | |
Line-of-credit Arrangements Converted to Term Loans | 2,031 | |
Total | 81,136 | 84,219 |
One- to four-family residential | Special Mention | ||
Loans | ||
Total | 171 | |
One- to four-family residential | Substandard | ||
Loans | ||
2023 | 24 | |
2021 | 12 | |
2020 | 126 | |
2019 | 13 | |
Prior | 2,662 | |
Total | 2,837 | 3,118 |
Commercial real estate | ||
Loans | ||
2023 | 1,790 | |
2022 | 2,177 | |
2021 | 2,155 | |
2020 | 4,396 | |
2019 | 3,470 | |
Prior | 4,737 | |
Line-of-credit Arrangements | 33 | |
Line-of-credit Arrangements Converted to Term Loans | 355 | |
Total | 19,113 | 19,437 |
Commercial real estate | Pass | ||
Loans | ||
2023 | 1,790 | |
2022 | 2,067 | |
2021 | 2,049 | |
2020 | 4,396 | |
2019 | 3,470 | |
Prior | 4,445 | |
Line-of-credit Arrangements | 33 | |
Line-of-credit Arrangements Converted to Term Loans | 355 | |
Total | 18,605 | 19,334 |
Commercial real estate | Special Mention | ||
Loans | ||
2022 | 110 | |
2021 | 106 | |
Total | 216 | |
Commercial real estate | Substandard | ||
Loans | ||
Prior | 292 | |
Total | 292 | 103 |
Construction and land | ||
Loans | ||
2023 | 57 | |
2022 | 323 | |
2021 | 57 | |
2020 | 84 | |
2019 | 46 | |
Prior | 527 | |
Line-of-credit Arrangements | 5,528 | |
Total | 6,622 | 6,172 |
Construction and land | Pass | ||
Loans | ||
2023 | 57 | |
2022 | 188 | |
2021 | 57 | |
2020 | 70 | |
2019 | 46 | |
Prior | 498 | |
Line-of-credit Arrangements | 5,528 | |
Total | 6,444 | 5,822 |
Construction and land | Special Mention | ||
Loans | ||
Total | 291 | |
Construction and land | Substandard | ||
Loans | ||
2022 | 135 | |
2020 | 14 | |
Prior | 29 | |
Total | 178 | 59 |
Multi-family residential | ||
Loans | ||
2023 | 382 | |
2021 | 470 | |
2019 | 282 | |
Prior | 2,290 | |
Total | 3,424 | 3,200 |
Multi-family residential | Pass | ||
Loans | ||
2023 | 382 | |
2021 | 470 | |
2019 | 282 | |
Prior | 2,290 | |
Total | 3,424 | 3,200 |
Commercial and industrial | ||
Loans | ||
2023 | 5,989 | |
2022 | 2,490 | |
2021 | 853 | |
2020 | 326 | |
2019 | 303 | |
Prior | 70 | |
Line-of-credit Arrangements | 9,603 | |
Total | 19,634 | 13,843 |
Commercial and industrial | Pass | ||
Loans | ||
2023 | 5,989 | |
2022 | 2,490 | |
2021 | 853 | |
2020 | 326 | |
2019 | 303 | |
Prior | 70 | |
Line-of-credit Arrangements | 9,603 | |
Total | 19,634 | 13,843 |
Consumer | ||
Loans | ||
2023 | 914 | |
2022 | 559 | |
2021 | 700 | |
2020 | 311 | |
2019 | 199 | |
Prior | 223 | |
Total | 2,906 | 3,447 |
Consumer | Pass | ||
Loans | ||
2023 | 914 | |
2022 | 559 | |
2021 | 700 | |
2020 | 311 | |
2019 | 199 | |
Prior | 223 | |
Total | $ 2,906 | $ 3,447 |
LOANS RECEIVABLE - Gross charge
LOANS RECEIVABLE - Gross charge-offs and recoveries (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Charge-offs | ||
2023 | $ 4 | |
2022 | 5 | |
2021 | 9 | |
2020 | 1 | |
2019 | 2 | |
Prior | 5 | |
Total | 26 | $ 191 |
Recoveries | ||
2021 | 2 | |
2020 | 1 | |
Prior | 107 | |
Total | 110 | 94 |
One- to four-family residential | ||
Charge-offs | ||
Total | 154 | |
Recoveries | ||
Prior | 98 | |
Total | 98 | 70 |
Commercial and industrial | ||
Charge-offs | ||
Total | 21 | |
Recoveries | ||
Prior | 1 | |
Total | 1 | 19 |
Consumer | ||
Charge-offs | ||
2023 | 4 | |
2022 | 5 | |
2021 | 9 | |
2020 | 1 | |
2019 | 2 | |
Prior | 5 | |
Total | 26 | 16 |
Recoveries | ||
2021 | 2 | |
2020 | 1 | |
Prior | 8 | |
Total | $ 11 | $ 5 |
LOANS RECEIVABLE Narrative (Det
LOANS RECEIVABLE Narrative (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | $ 135,672,000 | $ 133,607,000 |
Loans receivable | 133,636,000 | 131,800,000 |
Accrued interest receivable | 562,000 | 411,000 |
Individually evaluated for impairment | 1,142,000 | 2,796,000 |
One- to four-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | 83,973,000 | 87,508,000 |
Individually evaluated for impairment | 957,000 | 2,712,000 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | 19,113,000 | 19,437,000 |
Individually evaluated for impairment | 50,000 | 51,000 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | 113,132,000 | 116,317,000 |
Residential Real Estate | One- to four-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 1,100,000 | |
Residential Real Estate | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | 476,000 | 331,000 |
Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | 50,000 | 50,000 |
Asset Pledged as Collateral | Federal Reserve Bank Advances | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 77,900,000 | $ 64,100,000 |
DEPOSITS - Summary of Deposits
DEPOSITS - Summary of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits, Amount: | ||
Non-interest-bearing demand deposits, Amount | $ 33,222 | $ 33,657 |
Interest-bearing demand deposits, Amount | 38,881 | 36,991 |
Money market, Amount | 15,473 | 15,734 |
Savings, Amount | 27,237 | 26,209 |
Certificates of deposit, Amount | 50,407 | 52,503 |
Total deposits | $ 165,220 | $ 165,094 |
Deposits, Percentage: | ||
Non-interest-bearing demand deposits, Percentage | 20.10% | 20.40% |
Interest-bearing demand deposits, Percentage | 23.50% | 22.40% |
Money market, Percentage | 9.40% | 9.50% |
Savings, Percentage | 16.50% | 15.90% |
Certificates of deposit, Percentage | 30.50% | 31.80% |
Deposits, Percentage | 100% | 100% |
Uninsured deposits | $ 45,200 | $ 43,400 |
Certificates of deposit and other time deposits issued in denominations that exceed the FDIC insurance limit | $ 7,700 | $ 8,900 |
DEPOSITS - Schedule of Maturiti
DEPOSITS - Schedule of Maturities of Certificates of Deposit (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
DEPOSITS. | |
2023 | $ 10,527 |
2024 | 34,662 |
2025 | 3,616 |
2026 | 1,002 |
2027 | 451 |
2028 | 149 |
Total | $ 50,407 |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 10,000 | $ 10,000 |
Debt modification discount | (667) | (802) |
Total | 9,333 | 9,198 |
Federal Home Loan Bank Borrowings at 0.65 Percentage | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,000 | $ 3,000 |
Federal Home Loan Bank Borrowings interest percentage | 0.65% | 0.65% |
Federal Home Loan Bank Borrowings at 0.96 Percentage | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,000 | $ 3,000 |
Federal Home Loan Bank Borrowings interest percentage | 0.96% | 0.96% |
Federal Home Loan Bank Borrowings at 1.12 Percentage | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,000 | $ 4,000 |
Federal Home Loan Bank Borrowings interest percentage | 1.12% | 1.12% |
BORROWED FUNDS - Maturities (De
BORROWED FUNDS - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Maturities of Long-term Debt [Abstract] | ||
2025 | $ 3,000 | |
2027 | 3,000 | |
2028 | 4,000 | |
Total | $ 10,000 | $ 10,000 |
BORROWED FUNDS Narrative (Detai
BORROWED FUNDS Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
FHLB available borrowing capacity | $ 48,000 | $ 34,200 |
Unsecured federal funds master purchase agreement with first national bankers bank | 17,800 | |
Available-for-sale securities | 71,808 | 79,602 |
Federal Reserve Bank Advances | ||
Debt Instrument [Line Items] | ||
Available-for-sale securities, par value | 35,700 | |
Asset Pledged as Collateral | Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Available-for-sale securities | 77,900 | $ 64,100 |
Asset Pledged as Collateral | Federal Reserve Bank Advances | ||
Debt Instrument [Line Items] | ||
Available-for-sale securities | 1,000 | |
Available for pledging | Federal Reserve Bank Advances | ||
Debt Instrument [Line Items] | ||
Available-for-sale securities, carrying value | $ 30,300 |
CAPITAL AND REGULATORY MATTER_2
CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Common Equity Tier 1 Capital | ||
Actual, Amount | $ 78,925 | $ 78,527 |
Actual, Ratio | 0.5497 | 0.5617 |
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 9,332 | $ 9,087 |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.65 | 0.65 |
Tier 1 Risk-Based Capital | ||
Actual, Amount | $ 78,925 | $ 78,527 |
Actual, Ratio | 0.5497 | 0.5617 |
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 11,486 | $ 11,184 |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.80 | 0.80 |
Total Risk-Based Capital | ||
Actual, Amount | $ 80,726 | $ 80,275 |
Actual, Ratio | 0.5623 | 0.5742 |
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 14,357 | $ 13,980 |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 1 | 1 |
Tier 1 Leverage Capital | ||
Actual, Amount | $ 78,925 | $ 78,527 |
Actual, Ratio | 0.3108 | 0.3037 |
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 12,697 | $ 12,929 |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.50 | 0.50 |
CAPITAL AND REGULATORY MATTER_3
CAPITAL AND REGULATORY MATTERS - Share Repurchase Plans (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Apr. 30, 2023 | Jan. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchased of shares | 81,252 | 441,710 | ||
Average cost per share | $ 12.33 | $ 12.08 | ||
January 2023 Repurchase Plan | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares authorized | 265,000 | |||
Percentage of outstanding common stock authorized to be repurchased | 5% | |||
April 2023 Repurchase Plan | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Percentage of outstanding common stock authorized to be repurchased | 5% | |||
Shares remaining for repurchase | 75,290 | 75,290 | ||
April 2023 Repurchase Plan | Maximum | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares authorized | 252,000 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 71,808 | $ 79,602 |
Foreclosed assets | 37 | 320 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 71,808 | 79,602 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 71,808 | 79,602 |
Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans individually evaluated for credit losses | 457 | 898 |
Foreclosed assets | 37 | 320 |
Total | 494 | 1,218 |
Nonrecurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans individually evaluated for credit losses | 457 | 898 |
Foreclosed assets | 37 | 320 |
Total | 494 | 1,218 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 71,808 | 79,602 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 71,808 | 79,602 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 71,808 | $ 79,602 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narratives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |||||
Impaired loans, carrying amount | $ 633,000 | $ 633,000 | $ 1,100,000 | ||
Foreclosed real estate, impaired loans | $ 62,000 | $ 0 | $ 62,000 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investment securities | ||
Available-for-sale securities | $ 71,808 | $ 79,602 |
Held-to-maturity | 10,573 | 10,724 |
Securities held-to-maturity | 13,464 | 13,475 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 13,266 | 13,472 |
Investment securities | ||
Available-for-sale securities | 71,808 | 79,602 |
Securities held-to-maturity | 13,464 | 13,475 |
Loans receivable, net | 133,636 | 131,800 |
Bank-owned life insurance | 13,917 | 13,617 |
Financial Liabilities: | ||
Deposits | 165,220 | 165,094 |
Borrowed funds | 9,333 | 9,198 |
Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 13,266 | 13,472 |
Investment securities | ||
Available-for-sale securities | 71,808 | 79,602 |
Securities held-to-maturity | 10,573 | 10,724 |
Loans receivable, net | 122,993 | 121,208 |
Bank-owned life insurance | 13,917 | 13,617 |
Financial Liabilities: | ||
Deposits | 164,081 | 163,797 |
Borrowed funds | 8,489 | 8,484 |
Fair Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 13,266 | 13,472 |
Fair Value | Level 2 | ||
Investment securities | ||
Available-for-sale securities | 71,808 | 79,602 |
Securities held-to-maturity | 10,573 | 10,724 |
Bank-owned life insurance | 13,917 | 13,617 |
Financial Liabilities: | ||
Deposits | 164,081 | 163,797 |
Borrowed funds | 8,489 | 8,484 |
Fair Value | Level 3 | ||
Investment securities | ||
Loans receivable, net | $ 122,993 | $ 121,208 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for credit losses | $ 2,036,000 | $ 1,807,000 | $ 1,804,000 | $ 2,276,000 |
Loans receivable, net of unearned income | 135,672,000 | 133,607,000 | ||
Unfunded Lending Commitments | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for credit losses | 280,000 | |||
Loans receivable, net of unearned income | $ 33,500,000 | 22,800,000 | ||
Adoption impact | Accounting Standards Update 2016-13 | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for credit losses | 425,000 | |||
Adoption impact | Accounting Standards Update 2016-13 | Unfunded Lending Commitments | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for credit losses | $ 216,000 |