Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 10, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PRINCETON BANCORP, INC. | ||
Entity Central Index Key | 0001913971 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity File Number | 001-41589 | ||
Entity Tax Identification Number | 88-4268702 | ||
Entity Address, Address Line One | 183 Bayard Lane | ||
Entity Address, City or Town | Princeton | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08540 | ||
City Area Code | 609 | ||
Local Phone Number | 921-1700 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Title of 12(b) Security | Common stock, no par value | ||
Trading Symbol | BPRN | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 6,257,397 | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | Wolf and Company, P.C. | ||
Auditor Firm ID | 392 | ||
Auditor Location | Boston, Massachusetts | ||
Entity Public Float | $ 140.2 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 12,161 | $ 9,409 |
Interest-earning bank balances | 13,140 | 2,610 |
Federal funds sold | 28,050 | 146,697 |
Total cash and cash equivalents | 53,351 | 158,716 |
Securities available-for-sale, at fair value | 83,402 | 101,158 |
Securities held-to-maturity (fair value $200 and $225, at 2022 and 2021, respectively) | 201 | 208 |
Loans receivable | 1,370,368 | 1,335,163 |
Less: allowance for loan losses | (16,461) | (16,620) |
Loans receivable, net | 1,353,907 | 1,318,543 |
Bank-owned life insurance | 52,617 | 51,479 |
Premises and equipment, net | 11,722 | 12,598 |
Accrued interest receivable | 4,756 | 4,218 |
Restricted investment in bank stock | 1,742 | 1,345 |
Deferred taxes, net | 7,599 | 4,514 |
Goodwill | 8,853 | 8,853 |
Core deposit intangible | 1,825 | 2,393 |
Operating lease right-of-use asset | 16,026 | 17,914 |
Other real estate owned | 0 | 226 |
Other assets | 5,778 | 5,517 |
TOTAL ASSETS | 1,601,779 | 1,687,682 |
Deposits: | ||
Non-interest-bearing | 265,078 | 286,247 |
Interest-bearing | 1,082,652 | 1,159,896 |
Total deposits | 1,347,730 | 1,446,143 |
Borrowings | 10,000 | 0 |
Accrued interest payable | 1,027 | 1,044 |
Operating lease liability | 16,772 | 18,561 |
Other liabilities | 6,649 | 5,356 |
TOTAL LIABILITIES | 1,382,178 | 1,471,104 |
STOCKHOLDERS' EQUITY | ||
Common stock, par values $5.00 per share; 15,000,000 shares authorized, 6,909,402 issued and 6,245,597 shares outstanding at December 31, 2022; and 6,820,143 issued and 6,480,355 outstanding at December 31, 2021 | 34,547 | 34,100 |
Paid-in capital | 81,291 | 80,220 |
Treasury stock, at cost 663,805 and 339,788 shares at December 31, 2022 and December 31, 2021, respectively | (19,452) | (10,032) |
Retained earnings | 131,488 | 111,451 |
Accumulated other comprehensive (loss) income | (8,273) | 839 |
TOTAL STOCKHOLDER'S EQUITY | 219,601 | 216,578 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,601,779 | $ 1,687,682 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Held to maturity debt securities at fair value | $ 200 | $ 225 |
Common stock par or stated value per share | $ 5 | $ 5 |
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Common stock shares issued | 6,909,402 | 6,820,143 |
Common stock shares outstanding | 6,245,597 | 6,480,355 |
Treasury share common stock | 663,805 | 339,788 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND DIVIDEND INCOME | ||
Loans receivable, including fees | $ 70,996,000 | $ 67,348,000 |
Securities available-for-sale: | ||
Taxable | 986,000 | 547,000 |
Tax-exempt | 1,167,000 | 1,172,000 |
Securities held-to-maturity | 11,000 | 11,000 |
Other interest and dividend income | 923,000 | 197,000 |
TOTAL INTEREST AND DIVIDEND INCOME | 74,083,000 | 69,275,000 |
INTEREST EXPENSE | ||
Deposits | 5,995,000 | 6,673,000 |
Borrowings | 5,000 | 1,000 |
TOTAL INTEREST EXPENSE | 6,000,000 | 6,674,000 |
NET INTEREST INCOME | 68,083,000 | 62,601,000 |
Provision for loan losses | 400,000 | 3,625,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 67,683,000 | 58,976,000 |
NON-INTEREST INCOME | ||
Gain on call/sale of securities available-for-sale | 2,000 | 7,000 |
Income from bank-owned life insurance | 1,138,000 | 1,117,000 |
Fees and service charges | 1,852,000 | 1,764,000 |
Loan fees, including preypayment penalties | 1,484,000 | 1,757,000 |
Other | 386,000 | 21,000 |
TOTAL NON-INTEREST INCOME | 4,862,000 | 4,666,000 |
NON-INTEREST EXPENSE | ||
Salaries and employee benefits | 20,455,000 | 17,483,000 |
Occupancy and equipment | 5,859,000 | 6,055,000 |
Professional fees | 2,470,000 | 2,431,000 |
Data processing and communications | 4,488,000 | 3,562,000 |
Federal deposit insurance | 1,010,000 | 792,000 |
Advertising and promotion | 484,000 | 214,000 |
Office expense | 239,000 | 219,000 |
Other real estate expenses | 106,000 | 241,000 |
Core deposit intangible | 569,000 | 643,000 |
Other | 2,812,000 | 2,813,000 |
TOTAL NON-INTEREST EXPENSE | 38,492,000 | 34,453,000 |
INCOME BEFORE INCOME TAX EXPENSE | 34,053,000 | 29,189,000 |
INCOME TAX EXPENSE | 7,559,000 | 6,703,000 |
NET INCOME | $ 26,494,000 | $ 22,486,000 |
Earnings per common share-basic | $ 4.19 | $ 3.37 |
Earnings per common share-diluted | 4.11 | 3.3 |
Dividends declared per common share | $ 1 | $ 0.66 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
NET INCOME | $ 26,494 | $ 22,486 | |
Other comprehensive loss | |||
Unrealized losses arising during period on securities available-for-sale | (12,723) | (1,276) | |
Reclassification adjustment for gains realized in income | [1] | (2) | (7) |
Net unrealized loss | (12,725) | (1,283) | |
Tax effect benefit | 3,613 | 331 | |
Total other comprehensive loss | (9,112) | (952) | |
COMPREHENSIVE INCOME | $ 17,382 | $ 21,534 | |
[1]Amounts are included in gain on call/sale of securities available-for-sale on the Consolidated Statements of Income as a separate element within total non-interest income. Income tax expense of $0 and $2 for the years ended December 31, 2022 and 2021 is included in income tax expense on the Consolidated Statement of Income. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax expenses on available for sale securities reclassified from other comprehensive income into income statement | $ 0 | $ 2 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Beginning balance at Dec. 31, 2020 | $ 208,818 | $ 33,949 | $ 79,708 | $ 93,370 | $ 1,791 | |
Net income | 22,486 | 22,486 | ||||
Other comprehensive loss | (952) | (952) | ||||
Stock options exercised | 297 | 113 | 184 | |||
Restricted stock units | 33 | 7 | 26 | |||
Directors compensation | 120 | 20 | 100 | |||
Dividends declared | (4,335) | (4,335) | ||||
Purchase of treasury stock | (10,032) | $ (10,032) | ||||
Dividend reinvestment plan | 11 | 59 | (70) | |||
Stock-based compensation expense | 143 | 143 | ||||
Ending balance at Dec. 31, 2021 | 216,578 | 34,100 | 80,220 | (10,032) | 111,451 | 839 |
Net income | 26,494 | 26,494 | ||||
Other comprehensive loss | (9,112) | (9,112) | ||||
Stock options exercised | 1,092 | 386 | 785 | |||
Restricted stock units | 209 | 44 | 165 | |||
Dividends declared | (6,363) | (6,363) | ||||
Purchase of treasury stock | (9,420) | (9,420) | ||||
Dividend reinvestment plan | 17 | 77 | (94) | |||
Stock-based compensation expense | 123 | 44 | ||||
Ending balance at Dec. 31, 2022 | $ 219,601 | $ 34,547 | $ 81,291 | $ (19,452) | $ 131,488 | $ (8,273) |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock issued during the period stock options exercised | 76,900 | 22,480 |
Stock issued during period shares restricted stock award net of forfeitures | 8,741 | 1,424 |
Stock issued during period shares share based compensation | 4,019 | |
Common stock dividend declared per share paid | $ 1 | $ 0.66 |
Treasury stock shares acquired | 324,017 | 339,788 |
Stock issued during period shares dividend reinvestment plan | 3,343 | 2,408 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 26,494 | $ 22,486 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 400 | 3,625 |
Depreciation and amortization | 1,483 | 1,308 |
Stock-based compensation expense | 44 | 143 |
Amortization of premiums and accretion of discount on securities | 49 | 142 |
Accretion of net deferred loan fees and costs | (5,094) | (9,091) |
Gain on call/sale of securities available-for-sale | (2) | (7) |
Increase in cash surrender value of bank-owned life insurance | (1,138) | (1,116) |
Deferred income tax benefit | 527 | 276 |
Amortization of core deposit intangible | 569 | 643 |
Proceeds from other real estate owned | 125 | 220 |
Write down on other real estate owned | 101 | |
Stock-based directors compensation expense | 120 | |
Decrease (increase) in accrued interest receivable and other assets | 942 | (2,549) |
Decrease in accrued interest payable and other liabilities | (513) | (3,297) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 23,987 | 12,903 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of available-for-sale securities | (5,377) | (41,961) |
Principal repayments of securities available-for-sale | 6,701 | 10,338 |
Maturities and calls of securities available-for-sale | 3,659 | 4,675 |
Maturities, calls and principal repayments of securities held-to-maturity | 8 | 7 |
Net (increase) decrease in loans | (30,444) | 34,156 |
Purchase of BOLI | (2,500) | |
Purchases of premises and equipment | (607) | (1,192) |
(Purchase) redemption of restricted bank stock | (397) | 21 |
NET CASH (USED IN) PROVIDED BY INVESTMENT ACTIVITIES | (26,457) | 3,544 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net (decrease) increase in deposits | (98,413) | 78,877 |
Net proceeds of overnight borrowings | 10,000 | |
Cash dividends | (6,457) | (4,388) |
Dividend reinvestment program | 94 | 53 |
Purchase of treasury stock | (9,420) | (10,032) |
Proceeds from exercise of stock options | 1,092 | 297 |
Release of restricted stock units | 209 | 33 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (102,895) | 64,840 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (105,365) | 81,287 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 158,716 | 77,429 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 53,351 | 158,716 |
SUPPLEMENTARY CASH FLOWS INFORMATION: | ||
Interest paid | 6,017 | 8,106 |
Income taxes paid | $ 6,985 | 9,025 |
Recognition of operating lease right-of-use assets | 1,504 | |
Recognition of operating leases liabilities | $ 1,504 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Organization and Nature of Operations The Bank of Princeton (the “Bank”) was incorporated on March 5, 2007 under the laws of the State of New Jersey and is a New Jersey state-chartered banking institution. The Bank was granted its bank charter on April 17, 2007, commenced operations on April 23, 2007 The Bank offers traditional retail banking services, one-to-four-family On January 10, 2023 Princeton Bancorp, Inc., a Pennsylvania corporation (the “Company”) acquired all of the outstanding stock of the Bank. As a result, the Bank became the sole direct subsidiary of the Company, the Company became the holding company for the Bank and the stockholders of the Bank became stockholders of the Company. On October 19, 2022, the Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Noah Bank, a Pennsylvania-chartered bank (“Noah”). Pursuant to the terms and conditions set forth in the Merger Agreement, Noah will merge with and into TBOP Acquisition company, a newly-formed wholly owned subsidiary of the Bank, with Noah surviving (the “Merger”). The Bank plans to merge Noah with and into the Bank immediately after the Merger. The Merger Agreement has been approved by the boards of directors of each of the Bank and Noah and by Noah’s shareholders. Basis of Financial Statement Presentation The consolidated financial statements include the accounts of the Bank and its wholly-owned subsidiaries: Bayard Lane, LLC, Bayard Properties, LLC, 112 Fifth Avenue, LLC, TBOP Delaware Investment Company and TBOP REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes, actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of the potential impairment of goodwill. Management believes that the allowance for loan losses is adequate as of December 31, 2022 and 2021. While management uses current information to recognize losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions in the market area or other factors. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to effect certain changes that result in additions to the allowance based on their judgments about information available to them at the time of their examinations. Significant group concentrations of credit risk Most of the Bank’s activities are with customers located within the Mercer County, New Jersey, and surrounding areas as well as the five boroughs of New York City and certain Philadelphia, Pennsylvania metropolitan areas. The Bank does not have any portion of its business dependent on a single or limited number of customers or industries, the loss of which would have a material adverse effect on its business. No substantial portion of loans is concentrated within a single industry or group of related industries, except that a significant majority of commercial loans are secured by real estate. There are numerous risks associated with commercial and consumer lending that could impact the borrowers’ ability to repay on a timely basis. They include but are not limited to: the owner’s business expertise, changes in local, national, and in some cases international economies, competition, governmental regulation, and the general financial stability of the borrowing entity. Transfers of financial assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The outstanding balance of loan participations sold was $8.6 million and $10.5 million as of December 31, 2022 and 2021, respectively. Cash and due from banks Cash and due from banks include cash on hand, on deposit at other financial institutions and the Federal Reserve Bank of Philadelphia. Securities The Bank’s investment portfolio includes both held-to-maturity available-for-sale Held-to-Maturity held-to-maturity Available-for-Sale available-for-sale. non-credit Premiums are amortized using the interest method to the earliest call date and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Bank evaluates its securities portfolio for OTTI throughout the year. Each investment, having a fair value less than the book value, is reviewed on a quarterly basis by management. Management considers, at a minimum, whether the following factors exist that, both individually or in combination, could indicate that the decline is other-than-temporary: (a) the Bank has the intent to sell the security; (b) it is more likely than not that it will be required to sell the security before recovery; and (c) the Bank does not expect to recover the entire amortized cost basis of the security. Among the factors that are considered in determining the Bank’s intent are capital adequacy, interest rate risk profile and liquidity at the Bank. An impairment charge is recorded against individual securities if the review described above concludes that the decline in value is other-than-temporary. During 2022 and 2021, it was determined that there were no other-than-temporarily impaired investments. Loans Receivable Loans receivable that management has the intent and ability to hold until maturity or payoff are reported at their outstanding unpaid principal balances, net of an allowance for loan losses, and deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield on the related loans. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the level-yield method. The loan receivable portfolio is segmented into commercial real estate (includes multi-family), commercial and industrial, construction, residential first-lien mortgage, home equity/consumer loans and Payroll Protection Program loans (“PPP”) guaranteed by U.S. Small Business Administration (“SBA”). For all segments of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest is 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well-secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all segments of loans receivable is determined on contractual due dates for loan payments. Allowance for credit losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the Consolidated Statements of Financial Condition. The allowance for loan losses is increased by the provision for loan losses and recoveries, and decreased by charge-offs. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. The allowance for loan losses is maintained at a level considered adequate to provide for probable losses. The Bank performs, at least quarterly, an evaluation of the adequacy of the allowance. The allowance is based on past loan loss experience (which is bound by the Bank’s limited operating history), known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, the composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan segment, including loans not considered impaired, as well as smaller balance homogeneous loans, such as residential mortgage, home equity and consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these loan segments, adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, 2. National, regional, and local economic and business conditions, as well as the condition of various market segments; 3. Nature and volume of the portfolio and terms of loans; 4. Experience, ability, and depth of lending management and staff; 5. Volume and severity of past due, classified and nonaccrual loans, as well as other loan modifications; 6. Quality of the Bank’s loan review system, and the degree of oversight by the Bank’s board of directors; 7. Existence and effect of any concentrations of credit and changes in the level of such concentrations; 8. Changes in the value of underlying collateral for collateral-dependent loans; and 9. Effect of external factors, such as competition and legal and regulatory requirements. The Bank determines the allowance for loan losses by portfolio segment, which consists of commercial real estate loans, commercial and industrial loans, construction loans, residential first-lien mortgage loans, home equity and consumer loans. The Bank estimates the inherent risk of loss on all loans by portfolio segment, based primarily on the risk factors identified above and by applying a weight factor ranging from 4 Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. Residential first-lien mortgage loans and home equity loans involve certain risks such as interest rate risk and risk of non-repayment. Construction lending is generally considered to involve a high degree of risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost, including interest, of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily for projects which are pre-sold Commercial real estate lending entails additional risks as compared with single-family residential real estate lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as economic conditions generally. Commercial and industrial lending is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In most cases, any repossessed collateral for a defaulted commercial business loan will not provide an adequate source of repayment of the outstanding loan balance. Consumer loans, including home equity loans, generally have shorter terms and higher interest rates than other lending but generally involve more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Collateral for these type of loans includes either first or second liens on residential properties. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In most cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan balance. PPP loans have a maturity term ranging from two six-month An unallocated component of the allowance for loan losses is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired loans. Management determines the significance of payment delays and payment shortfalls on a case-by-case loan-by-loan For commercial real estate loans, estimated fair values of the real estate collateral are determined primarily through third-party appraisals. When a real estate-secured loan becomes impaired, a decision is made regarding whether an updated appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value For commercial and industrial loans secured by non-real Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual residential first-lien mortgage loans, home equity loans and consumer loans for impairment, unless such loans are a troubled debt restructuring. Loans with modified terms are classified as troubled debt restructurings if the Bank grants borrower concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. As part of the Bank’s commitment to provide assistance during the COVID-19 Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification and continued repayment is reasonably assured. Loans classified as troubled debt restructurings are designated as impaired. The allowance calculation methodology includes further segregation of loan segments into risk-rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified loss are considered uncollectible and are charged-off Based on management’s comprehensive analysis of the loan portfolio, management believes the allowance for loan losses is adequate at the reported dates. Bank-owned life insurance The Bank is the beneficiary of insurance policies on the lives of certain officers of the Bank. This life insurance investment is accounted for using the cash surrender value method and is recorded at its net realizable value. Increase in cash surrender values are recorded as tax exempted non-interest Other real estate owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are then recorded at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and write-downs are included in non-interest Goodwill and Other Intangible Assets, Net Goodwill represents the excess cost over the identifiable net assets of businesses acquired. The Bank’s intangible asset was derived from core deposits acquired that has a definitive life and is amortized over the estimated life. Both goodwill and the core deposit intangible asset are reviewed for impairment annually or when events and circumstances indicate that an impairment may have occurred. Accounting Standards Codification (“ASC”) Topic 350-20 Employee Benefit Plans The Bank maintains a defined contribution Section 401(k) plan covering eligible employees. The Bank may make discretionary matching contributions. The Bank made matching contributions to employees of $207,000 and $168,000, respectively, during the years ended December 31, 2022 and 2021. The Bank also maintains a defined benefit supplemental executive retirement plan for the benefit of the chief executive officer and chief operating officer. Effective January 1, 2021 the Bank adopted an Employee Stock Ownership Plan (“ESOP”) enabling eligible employees to have a stock ownership interest in the Company. The Company intends to fund the plan on an annual basis. The ESOP is administered by a third-party trust. The Bank contributed $331,000 to the ESOP for each of the years ended December 31, 2022 and 2021. The funding of the ESOP is at the discretion of the board of directors. The Bank maintains an equity incentive plan to provide for issuance or granting shares of common stock options or restricted stock units. The Bank has recorded stock-based employee compensation cost using the fair value method as allowed under generally accepted accounting principles. Management estimated the fair value of all option grants using the Black-Scholes options-pricing model. Management estimated the expected life of options granted is generally derived from historical experiences. The risk-free rate for periods within the contractual terms of the share option is based on the U.S. Treasury for a comparable term. Premises and equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the shorter of the lease term or estimated useful lives of the related assets. Restricted Investment in Bank Stock Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined formula. Restricted stock in the amount of $1.6 million and $1.3 million is carried at cost at December 31, 2022 and 2021, respectively. Management’s determination of whether these investments are impaired is based on an assessment of the ultimate recoverability of their cost, rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. The Bank also held $100,000 of stock in Atlantic Community Bankers Bank (“ACBB”) at December 31, 2022 and 2021. Management believes no impairment charge is necessary related to the FHLB restricted stock or the ACBB restricted stock as of December 31, 2022 or 2021. Income taxes The Bank accounts for income taxes in accordance with income tax accounting guidance contained in Financial Accounting Standards Board (“FASB”) ASC Topic 740, Income Taxes non-interest Federal and state income taxes have been provided on the basis of reported income or loss. The amounts reflected on the tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted for as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax liabilities and assets, respectively, for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided for the full amount which is not more likely than not to be realized. On September 29, 2020, New Jersey Governor Phil Murphy signed into law A.4721, extending through December 31, 2023, the 2.5 2.5 Off-balance In the ordinary course of business, the Bank has entered into off-balance Stock compensation plans The stock compensation accounting guidance set forth in Financial Accounting Standards Board (“FASB”) ASC Topic 718, Compensation—Stock Compensation The stock compensation accounting guidance requires that compensation costs for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options. An option is considered to be forfeited, if the grant stock option were not exercised prior to vesting. At the date of grant, the Bank estimates the forfeiture rate as part of its initial determination of the fair-value of options granted and then adjusts forfeitures as they occur. Earnings per share Basic earnings per share amounts are calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period, and exclude any dilutive effects of stock options and warrants. Diluted earnings per share amounts include the dilutive effects of stock options and warrants whose exercise price is less than the market price of the Bank’s shares. Diluted earnings per share amounts are calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period if options and warrants were exercised and converted into common stock, using the treasury stock method. Leases The Bank determines whether an arrangement is a lease at inception. Operating lease right-of-use ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not provide an implicit rate, we use our incremental borrowing rate, the Federal Home Loan Bank advance rate, based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset is net of lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease non-lease The Bank has elected certain practical expedients upon adoption of the lease guidance and therefore has not reassessed whether any expired or existing contracts contain leases, has not reassessed the lease classification for any expired or existing leases and has not reassessed initial direct costs for any existing leases. Advertising costs The Bank charges the costs of advertising to expense as incurred. Comprehensive income Accounting principles generally require that recognized revenues, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale available-for-sale Accounting Standard Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, one-time In March 2020, the FASB issued ASU No. 2020-04, re-measurements 2020-04 2020-04 2020-04 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 2 – Earnings Per Share The following schedule presents earnings per share data: Years ended December 31, 2022 2021 (In thousands, expect per share data) Net income applicable to common stock $ 26,494 $ 22,486 Weighted average number of common shares outstanding 6,320 6,667 Basic earnings per share $ 4.19 $ 3.37 Net income applicable to common stock $ 26,494 $ 22,486 Weighted average number of common shares outstanding 6,320 6,667 Dilutive effect on common shares outstanding 129 148 Weighted average number of diluted common shares outstanding $ 6,449 $ 6,814 Diluted earnings per share $ 4.11 $ 3.30 Options to purchase 296,063 shares of common stock at a weighted average exercise price of $16.62 were included in the computation of diluted earnings per share for the year ended December 31, 2022. Options to purchase 95,750 shares of common stock at a weighted average exercise price of $32.69 were not included in the computation of diluted earnings per share because the exercise price equaled or exceeded the fair value of our common stock at December 31, 2022. Options to purchase 343,035 shares of common stock at a weighted average exercise 1rice of $16.76 were included in the computation of diluted earnings per share for the year ended December 31, 2021. Options to purchase 95,871 shares of common stock at a weighted average exercise price of $32.45 were not included in the computation of diluted earnings per share because the exercise price equaled or exceeded the fair value of our common stock at December 31, 2021. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 3 – Investment Securities The following summarizes the amortized cost and estimated fair value of securities available-for-sale December 31, 2022 Amortized Gross Gross Fair Value Available -for-sale (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 41,515 $ 2 $ (6,602 ) $ 34,915 U.S. government agency securities 6,260 — (1,175 ) 5,085 Obligations of state and political subdivisions 45,161 8 (3,828 ) 41,341 SBIC securities 2,061 — — 2,061 Total $ 94,997 $ 10 $ (11,605 ) $ 83,402 December 31, 2021 Amortized Gross Gross Fair Value Available -for-sale (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 44,948 $ 337 $ (635 ) $ 44,650 U.S. government agency securities 6,267 — (29 ) 6,238 Obligations of state and political subdivisions 48,011 1,466 (9 ) 49,468 SBIC securities 802 — — 802 Total $ 100,028 $ 1,803 $ (673 ) $ 101,158 The unrealized losses, categorized by the length of time in a continuous loss position, and the fair value of related securities available-for-sale Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 15,605 $ (1,778 ) $ 19,137 $ (4,824 ) $ 34,742 $ (6,602 ) U.S. government agency securities — $ — 5,085 (1,175 ) 5,085 (1,175 ) Obligations of state and political subdivisions 36,421 (3,457 ) 1,352 (371 ) 37,773 (3,828 ) SBIC securities — — — — — — Total $ 52,026 $ (5,235 ) $ 25,574 $ (6,370 ) $ 77,600 $ (11,605 ) Less than 12 Months More than 12 Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 25,909 $ (635 ) $ — $ — $ 25,909 $ (635 ) U.S. government agency securities 6,238 $ (29 ) — — 6,238 (29 ) Obligations of state and political subdivisions 1,714 (9 ) — — 1,714 (9 ) SBIC securities 802 — — — 802 — Total $ 34,663 $ (673 ) $ — $ — $ 34,663 $ (673 ) At December 31, 2022, there were a total of 166 securities, including 59 mortgage-backed securities and 107 obligations of state and political subdivisions, in the less-than-twelve-months category in the securities available-for-sale At December 31, 2022, there were a total of 25 securities, including 14 mortgage-backed securities, seven obligations of state and political subdivisions and four U.S. government agency securities in the more-than-twelve-months category in the securities available-for-sale The Bank does not intend to sell these securities and it is not more likely than not that we will be required to sell these securities. Unrealized losses primarily relate to interest rate fluctuations and not credit-related criteria. No OTTI charges were recorded for the years ended December 31, 2022 and 2021. At December 31, 2021, there were 18 mortgage-backed securities and seven obligations of state and political subdivisions in the less-than-twelve-months category and zero mortgage-backed securities in the more-than twelve-month category for the securities available-for-sale The amortized cost and estimated fair value of securities available-for-sale Amortized Cost Fair Value (In thousands) Due in one year or less $ 980 $ 980 Due after one year through five years 4,137 4,056 Due after five years through ten years 25,974 24,207 Due after ten years 20,330 17,183 Mortgage-backed securities (GSEs) 41,515 34,915 SBIC securities 2,061 2,061 $ 94,997 $ 83,402 The following summarizes the amortized cost and estimated fair value of securities held-to-maturity December 31, 2022 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (In thousands) Held-to-maturity: Mortgage-backed securities (GSEs) $ 201 $ — $ (1 ) $ 200 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (In thousands) Held-to-maturity: Mortgage-backed securities (GSEs) $ 208 $ 17 $ — $ 225 All securities held-to-maturity There were no sales of available-for-sale available-for-sale available-for-sale available-for-sale There were no securities pledged as collateral for NJ Governmental Unit Deposit Protection Act (“GUDPA”) deposits at December 31, 2022 or 2021. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans Receivable | Note 4 – Loans Receivable Loans receivable, net was comprised of the following: December 31, December 31, 2022 2021 (In thousands) Commercial real estate $ 873,573 $ 771,028 Commercial and industrial 28,859 29,677 Construction 417,538 403,680 Residential first-lien mortgage 43,125 48,638 Home equity/Consumer 7,260 7,685 Payroll Protection Program -Phase I 1,307 6,641 Payroll Protection Program -Phase II 1,162 73,099 Total loans 1,372,824 1,340,448 Deferred fees and costs (2,456 ) (5,285 ) Allowance for loan losses (16,461 ) (16,620 ) Loans, net $ 1,353,907 $ 1,318,543 The following table presents nonaccrual loans by segment of the loan portfolio: December 31, December 31, 2022 2021 (In thousands) Commercial real estate $ — $ 766 Commercial and industrial — — Construction 148 278 Residential first-lien mortgage 118 131 Total nonaccrual loans $ 266 $ 1,175 The following table summarizes information in regard to impaired loans by loan portfolio segment, segregated by those for which a related allowance was required and those for which a related allowance was not necessary, as of December 31, 2022 and the year then ended: Unpaid Average Interest Principal Recorded Related Recorded Income Balance Investment Allowance Investment Recognized (In thousands) With no related allowance recorded: Commercial real estate $ 13,226 $ 12,030 $ — $ 12,339 $ 538 Commercial and industrial 10 10 — 12 1 Construction — — — — — Residential first-lien mortgage 137 118 — 124 6 Home equity/Consumer 71 71 — 89 6 Total with no related allowance $ 13,444 $ 12,229 $ — $ 12,564 $ 551 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Construction 248 148 118 155 — Residential first-lien mortgage — — — — — Home equity/Consumer — — — — — Total with an allowance $ 248 $ 148 $ 118 $ 155 $ — Total: Commercial real estate $ 13,226 $ 12,030 $ — $ 12,339 $ 538 Commercial and industrial 10 10 — 12 1 Construction 248 148 118 155 — Residential first-lien mortgage 137 118 — 124 6 Home equity/Consumer 71 71 — 89 6 Total $ 13,692 $ 12,377 $ 118 $ 12,719 $ 551 The following table summarizes information in regard to impaired loans by loan portfolio segment, segregated by those for which a related allowance was required and those for which a related allowance was not necessary, as of December 31, 2021 and the year then ended: Unpaid Average Interest Principal Recorded Related Recorded Income Balance Investment Allowance Investment Recognized (In thousands) With no related allowance recorded: Commercial real estate $ 16,017 $ 13,155 $ — $ 9,667 $ 656 Commercial and industrial 1,138 15 — 526 16 Construction — — — 243 — Residential first-lien mortgage 144 131 — 138 6 Home equity/Consumer 106 108 — 124 8 Total with no related allowance $ 17,405 $ 13,409 $ — $ 10,698 $ 686 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Construction 278 278 196 359 — Residential first-lien mortgage — — — — — Home equity/Consumer — — — — — Total with an allowance $ 278 $ 278 $ 196 $ 359 $ — Total: Commercial real estate $ 16,017 $ 13,155 $ — $ 9,667 $ 656 Commercial and industrial 1,138 15 — 526 16 Construction 278 278 196 602 — Residential first-lien mortgage 144 131 — 138 6 Home equity/Consumer 106 108 — 124 8 Total $ 17,683 $ 13,687 $ 196 $ 11,057 $ 686 68 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loan receivable by the length of time a recorded payment is past due. The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2022: Loans 30-59 60-89 Receivable Days Days Greater Total Total >90 Days Past Past than Past Loans and Due Due 90 days Due Current Receivable Accruing (In thousands) Commercial real estate $ — $ 6,193 $ — $ 6,193 $ 867,380 $ 873,573 $ — Commercial and industrial — — — — 28,859 28,859 — Construction — — 148 148 417,390 417,538 — Residential first-lien mortgage 1,292 — 118 1,410 41,715 43,125 — Home equity/consumer — — — — 7,260 7,260 — PPP Phase I & II 1 255 — 184 439 2,030 2,469 184 Total $ 1,547 $ 6,193 $ 450 $ 8,190 $ 1,364,634 $ 1,372,824 $ 184 1 PPP loans that are classified as past due in the table above, have applied for or are in the process of requesting loan forgiveness from the SBA. The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2021: Loans 30-59 60-89 Receivable Days Days Greater Total Total >90 Days Past Past than Past Loans and Due Due 90 days Due Current Receivable Accruing (In thousands) Commercial real estate $ 27 $ — $ 766 $ 793 $ 770,235 $ 771,028 $ — Commercial and industrial — — — — 29,677 29,677 — Construction — — 278 278 403,402 403,680 — Residential first-lien mortgage 425 — — 425 48,213 48,638 — Home equity/consumer — — — — 7,685 7,685 — PPP Phase I & II 1 585 1,254 151 1,990 77,750 79,740 151 Total $ 1,037 $ 1,254 $ 1,195 $ 3,486 $ 1,336,962 $ 1,340,448 $ 151 1 PPP loans that are classified as past due in the table above, have applied for or are in the process of requesting loan forgiveness from the SBA. 69 The following table presents the segments of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of December 31, 2022: Special Pass Mention Substandard Doubtful Total With no related allowance recorded: Commercial real estate $ 864,497 $ 2,883 $ 6,193 $ — $ 873,573 Commercial and industrial 28,350 509 — — 28,859 Construction 417,390 — 148 — 417,538 Residential first-lien mortgage 1 43,007 — 118 — 43,125 Home equity/Consumer 1 7,260 — — — 7,260 PPP Phase I & II 2,469 — — — 2,469 Total with no related allowance $ 1,362,973 $ 3,392 $ 6,459 $ — $ 1,372,824 1 The Bank does not asign a risk rating to residential real estate and consumer based loans. They are deemed to be performing or non-performing based on deliquency status. The following table presents the segments of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of December 31, 2021: Special Pass Mention Substandard Doubtful Total With no related allowance recorded: Commercial real estate $ 754,192 $ 3,832 $ 13,004 $ — $ 771,028 Commercial and industrial 29,071 606 — — 29,677 Construction 403,402 — 278 — 403,680 Residential first-lien mortgage 1 48,507 — 131 — 48,638 Home equity/Consumer 1 7,685 — — — 7,685 PPP Phase I & II 79,740 — — — 79,740 Total with no related allowance $ 1,322,597 $ 4,438 $ 13,413 $ — $ 1,340,448 1 The Bank does not asign a risk rating to residential real estate and consumer based loans. They are deemed to be performing or non-performing based on deliquency status. Allowance for loan losses on loans receivables at and for the year ended December 31, 2022: Commercial Residential Commercial and first-lien Home equity/ Real estate industrial Construction mortgage Consumer PPP Unallocated Total Allowance for loan losses: Beginning balance $ 7,458 $ 713 $ 7,228 $ 267 $ 48 $ — $ 906 $ 16,620 Provision (credit) 1,655 (442 ) (839 ) (31 ) (3 ) — 60 400 Charge-offs (757 ) — (100 ) — — — — (857 ) Recoveries 298 — — — — — — 298 Total $ 8,654 $ 271 $ 6,289 $ 236 $ 45 $ — $ 966 $ 16,461 Ending Balance: Individually evaluated for impairment $ — $ — $ 118 $ — $ — $ — $ — $ 118 Collectively evaluated for impairment $ 8,654 $ 271 $ 6,171 $ 236 $ 45 $ — $ 966 $ 16,343 Recorded investment in loans receivables at December 31, 2022: Commercial Residential Commercial and first-lien Home equity/ Real estate industrial Construction mortgage Consumer PPP Unallocated Total Loans: Ending Balance: Individually evaluated for impairment $ 12,030 $ 10 $ 148 $ 118 $ 71 $ — $ — $ 12,377 Collectively evaluated for impairment 861,543 28,849 417,390 43,007 7,189 2,469 — 1,360,447 Ending balance $ 873,573 $ 28,859 $ 417,538 $ 43,125 $ 7,260 $ 2,469 $ — $ 1,372,824 Allowance for loan losses on loans receivables at and for the year ended December 31, 2021: Commercial Commercial Construction Residential first-lien Home equity/ Consumer PPP Unallocated Total Allowance for loan losses: Beginning balance $ 9,635 $ 1,015 $ 4,069 $ 324 $ 61 $ — $ 923 $ 16,027 Provision (credit) (102 ) 655 3,159 (57 ) (13 ) — (17 ) 3,625 Charge-offs (2,116 ) (1,060 ) — — — — — (3,176 ) Recoveries 41 103 — — — — — 144 Total $ 7,458 $ 713 $ 7,228 $ 267 $ 48 $ — $ 906 $ 16,620 Ending Balance: Individually evaluated for impairment $ — $ — $ 196 $ — $ — $ — $ — $ 196 Collectively evaluated for impairment $ 7,458 $ 713 $ 7,032 $ 267 $ 48 $ — $ 906 $ 16,424 Recorded investment in loans receivables at December 31, 2021: Commercial Residential Commercial and first-lien Home equity/ Real estate industrial Construction mortgage Consumer PPP Unallocated Total Loans: Ending Balance: Individually evaluated for impairment $ 13,155 $ 15 $ 278 $ 131 $ 108 $ — $ — $ 13,687 Collectively evaluated for impairment 757,873 29,662 403,402 48,507 7,577 79,740 — 1,326,761 Ending balance $ 771,028 $ 29,677 $ 403,680 $ 48,638 $ 7,685 $ 79,740 $ — $ 1,340,448 At December 31, 2022, three loans totaling $5.9 million were considered troubled debt restructurings and classified as impaired. Troubled debt restructurings of $5.8 million consisting of one commercial real estate loan, a $71,000 HELOC loan and a $10,000 commercial and industrial loan were performing in accordance with their modified terms at December 31, 2022. At December 31, 2021, four loans totaling $6.9 million were considered troubled debt restructurings and classified as impaired. Troubled debt restructurings of $6.0 million consisting of one commercial real estate loan, a $140,000 HELOC loan and a $15,000 commercial and industrial loan were performing in accordance with their modified terms at December 31, 2021. One commercial real estate loan totaling $766,000 was classified as non-performing As of December 31, 2022, there were no non-performing. As of December 31, 2021, there was one trouble debt restructuring in the amount of $ 766,000 non-performing There were no loans modified as a trouble debt restructuring during the twelve month period ended December 31, 2022 and December 31, 2021. Loans to Related Party. 2022 2021 Outstanding related party loans at January 1 $ 5,639 $ 6,079 New loans — 515 Repayments (778 ) (955 ) Outstanding related party loans at December 31 $ 4,861 $ 5,639 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5 – Premises and Equipment The components of premises and equipment at December 31 were as follows: Estimated useful lives 2022 2021 Land N/A $ 1,468 $ 1,468 Buildings 40 Years 3,946 3,647 Leashold improvements Lessor of lease or useful life 8,347 8,742 Furniture, fixtures and equipment 3-7 Years 3,311 3,157 Construction in progress 107 835 Total before accumulated depreciation and amortization 17,179 17,849 Accumulated depreciation and amortization (5,457 ) (5,251 ) Total $ 11,722 $ 12,598 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Note 6 – Deposits The components of deposits at December 31 were as follows (Dollars in thousands): December 31, December 31, 2022 2021 Demand, non-interest-bearing $ 265,078 19.67 % $ 286,247 19.79 % Demand, interest-bearing checking 269,737 20.01 % 259,022 17.91 % Savings 190,686 14.15 % 225,579 15.60 % Money Market 283,652 21.05 % 373,075 25.80 % Time deposits, $250,000 and over 83,410 6.19 % 33,741 2.33 % Time deposits, other 255,167 18.93 % 268,479 18.57 % $ 1,347,730 100.00 % $ 1,446,143 100.00 % Money market accounts totaling $11.6 million and $23.7 million at December 31, 2022 and 2021, respectively, were originated through a reciprocal deposit relationship. At December 31, 2022, the scheduled maturities of certificates of deposit were as follows: Amount Years Ended December 31 2023 $ 158,659 2024 120,028 2025 36,246 2026 21,786 2027 and thereafter 1,859 Total $ 338,578 Approximately $107.4 million and $108.9 million at December 31, 2022 and 2021, respectively, were originated through brokers. Related party deposits were approximately $3.7 million and $4.6 million at December 31, 2022 and 2021, respectively. Deposit overdrafts reclassified as loan balances were $81,000 and $63,000 at December 31, 2022 and 2021, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 7 – Borrowings The Bank’s borrowings consist of FHLB-NY FHLB-NY non-specific At December 31, 2022 the Bank had overnight borrowings outstanding in the amount of $10.0 million at a rate of 4.610% and there were no outstanding borrowings as of December 31, 2021. At December 31, 2022, the Bank had a maximum borrowing capacity with the FHLB-NY, |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies Commitments to extend credit The Bank is a party to financial instruments with off-balance-sheet The Bank’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for on-balance-sheet Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the counterparty. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The majority of these standby letters of credit expire within the next twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral supporting these letters of credit as deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral should be sufficient to cover the maximum potential amount under the corresponding guarantees. The Bank had the following off-balance 2022 2021 Performance and standby letters of credit $ 1,420 $ 486 Undisbursed loans-in-process 140,538 229,155 Commitments to fund loans 41,753 51,817 Unfunded commitments under lines of credit 5,800 4,573 Total $ 189,511 $ 286,031 Litigation The Bank, in the normal course of business, may be subject to potential liability under laws and government regulation and various claims and legal actions that are pending or may be asserted against it. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, advice of counsel, available insurance coverage and established liabilities, the Bank has determined that there are no eventual outcomes that will have a material adverse effect on the Bank’s financial position or results of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes Income tax expense for the years ended December 31 is as follows: 2022 2021 Current tax expense: Federal $ 4,621 $ 4,608 State 2,411 1,819 Total current 7,032 6,427 Deferred income tax benefit: Federal 876 417 State (349 ) (141 ) Total deferred 527 276 $ 7,559 $ 6,703 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows: 2022 2021 Deferred tax assets: Allowance for loan losses $ 4,638 $ 4,332 Net operating loss carry-forward 374 421 Organization costs — 5 Branch acquisition 26 27 Other 681 400 Core deposit intangible 397 293 Deferred PPP loans 28 726 Lease liability 4,726 4,446 SERP liabiltiy 202 89 Unrealized loss on securities 3,322 — Total deferred tax assets 14,394 10,739 Deferred tax liabilities: Depreciation (1,341 ) (993 ) Deferred loan costs (335 ) (242 ) ROU (4,515 ) (4,277 ) Acquisition accounting adjustments (8 ) (7 ) Goodwill amortization (596 ) (397 ) Section 481a Adj. — (18 ) Unrealized gain on securities — (291 ) Total deferred tax liabilities (6,795 ) (6,225 ) Net deferred tax asset $ 7,599 $ 4,514 Total income taxes differed from the amount computed by applying the statutory federal income tax rate to pre-tax 2022 2021 Amount Rate Amount Rate Federal income tax expense at statutory rate $ 7,151 21.0 % $ 6,130 21.0 % Increase (reduction) in taxes resulting from: State income taxes, net of federal benefit 1,629 4.8 % 1,326 4.5 % Tax-exempt (772 ) -2.3 % (790 ) -2.7 % Incentive stock options (146 ) -0.4 % 17 0.1 % Non-deductible 17 0.1 % 8 0.0 % IRS Refund (516 ) -1.5 % — — Other 196 0.5 % 12 0.0 % Total income taxes applicable to pre-tax $ 7,559 22.2 % $ 6,703 22.9 % The Bank had available federal net operating loss carry-forwards of approximately $1.8 million and $2.0 million at December 31, 2022 and 2021, respectively, which expire between 2028 and 2030. The federal net operating loss carry-forwards are amounts that were generated by MoreBank, which the Bank acquired on September 30, 2010. These net operating losses are subject to an annual Internal Revenue Code Section 382 limitation of approximately $222,000. Based on projections of future taxable income over periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Bank will realize the benefits of these deductible differences. On September 29, 2020, New Jersey Governor Phil Murphy signed into law A.4721, extending through December 31, 2023, the 2.5% surtax currently imposed on Corporation Business Tax (CBT) filers with allocated taxable net income over $1 million. As originally enacted, the surtax rate was scheduled to decrease from 2.5% to 1.5% for privilege periods beginning on or after January 1, 2020 through December 31, 2021 and expire for privilege periods beginning on or after January 1, 2022. The change made by A.4721 takes effect immediately and applies retroactively to privilege periods beginning on or after January 1, 2020. The Bank recorded an additional $63,000 in income tax expense related to the adjusted surtax during 2020. Effective in 2019, New Jersey has adopted combined income tax reporting for certain members of a commonly-controlled unitary business group. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 10 – Revenue Recognition The Bank accounts for its applicable revenue in accordance with ASC Topic 606 - Revenue from Contracts with Customers. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest non-interest Non-interest in-scope Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Bank’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Bank’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of net interchange fees earned whenever the Banks’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a cardholder uses a non-Bank non-Bank |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 11 – Leases On January 1, 2019, the Bank adopted FASB ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) The following table represents the classification of the Bank’s right of use and lease liabilities (Dollars in thousands): Statemen of Financial Condition Location December 31, 2022 December 31, 2021 Operating Lease Right of Use Asset: Gross carrying amount $ 17,919 $ 18,408 Increased asset from new lease — 1,504 Accumulated amortization (1,893 ) (1,998 ) Net book value Operating lease right-of-use $ 16,026 $ 17,914 Operating Lease liabilities: Lease liabilities Operating lease liability $ 16,772 $ 18,561 For the year ended December 31, 2022, the weighted-average remaining lease terms for operating leases was 11.3 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.54%. The Bank used current FHLB fixed rate advances at the time the lease was placed in service for the term most closely aligning with remaining lease term to determine the discount rate. Year Ended December 31, 2022 2021 (In thousands) Lease cost: Operating lease $ 2,700 $ 2,940 Short-term lease cost 94 97 Total lease cost $ 2,794 $ 3,037 Other information: Cash paid for amounts included in the measurement of lease liabilities: $ 2,309 $ 2,488 Future minimum payments under operating leases with terms longer than 12 months are as follows at December 31, 2022: Amount (In thousands) Twelve months ended December 31, 2023 $ 2,298 2024 2,065 2025 2,048 2026 1,854 2027 1,559 Thereafter 10,371 Total future operating lease payment 20,195 Amounts representing interest (3,423 ) Present value of net future lease payments $ 16,772 Rental expense for the years ended December 31, 2022 and 2021 was $2.7 million and $2.9 million, respectively. The Bank has an operating lease agreement with a member of the Bank’s board of directors for a building containing the Bank’s corporate headquarters and branch, which is included in the above lease schedule. At the lease initiation date, the lease terms were comparable to similarly outfitted office space in the Bank’s market. Base rental payments of $305,000 and $305,000 were made to this related party in each of the years ended December 31, 2022 and 2021, respectively. Certain operating expenses, including real estate taxes, insurance, utilities, maintenance and repairs, related to this property are paid directly to the various service providers. |
Directors Fee Plan
Directors Fee Plan | 12 Months Ended |
Dec. 31, 2022 | |
Directors Fee Plan [Abstract] | |
Directors Fee Plan | Note 12 – Directors Fee Plan The Bank adopted a Non-Employee The Bank adopted The Bank of Princeton 2018 Director Fee Plan (“Plan”) which was approved at the Annual Meeting of Stockholders held on April 24, 2018. The Plan allows non-employee Non-Employee |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangible | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangible | Note 13 – Goodwill and Core Deposit Intangible On May 17, 2019, the Bank acquired five branches which were accounted for under FASB ASC 805, Business Combinations In accordance with ASC 805, the Bank has expensed approximately $ 627 thousand of direct acquisition cost and recorded $ million of goodwill along with $ million of core deposit intangible assets. The intangible assets are related to core deposits and are being amortized over years, using sum of the years digits. For tax purposes, goodwill totaling $ million is tax deductible and will be amortized over years straight line. The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows (Dollars in thousands): Core Deposit Goodwill Intangible Balance at December 31, 2021 $ 8,853 $ 2,393 Amortization expense — (568 ) Balance at December 31, 2022 $ 8,853 $ 1,825 Core Deposit Goodwill Intangible Balance at December 31, 2020 $ 8,853 $ 3,036 Amortization expense — (643 ) Balance at December 31, 2021 $ 8,853 $ 2,393 As of December 31, 2022, the future fiscal periods amortization for the core deposit intangible is: Amount (In thousands) 2023 $ 492 2024 415 2025 338 2026 261 2027 183 Thereafter 136 Total $ 1,825 |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosure | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosure | Note 14 – Fair Value Measurements and Disclosure The Bank follows the guidance on fair value measurements codified as FASB ASC Topic 820, Fair Value Measurement . Management uses its best judgment in estimating the fair value of the Bank’s financial instruments, however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair alue estimates herein are not necessarily indicative of the amounts the Bank could have realized in sales transactions on the dates indicated. The estimated fair value amounts have been measured as of their respective period-end re-evaluated period-end. The fair value measurement hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Level 2 Level 3 An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2022 were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2022 (In thousands) Mortgage-backed securities -U.S. Government Sponsored Enterprise (GSEs) $ — $ 34,915 $ — $ 34,915 U.S. government agency securities — 5,085 — 5,085 Obligations of state and political subdivisions — 41,341 — 41,341 SBIC securities — — 2,061 2,061 Securities available-for-sale $ — $ 81,341 $ 2,061 $ 83,402 For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2021 were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2021 (In thousands) Mortgage-backed securities -U.S. Government Sponsored Enterprise (GSEs) $ — $ 44,650 $ — $ 44,650 U.S. government agency securities — 6,238 — 6,238 Obligations of state and political subdivisions — 49,468 — 49,468 SBIC securities — — 802 802 Securities available-for-sale $ — $ 100,356 $ 802 $ 101,158 For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2022, were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2022 (In thousands) Impaired loans $ — $ — $ 30 $ 30 $ — $ — $ 30 $ 30 For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2021, were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2021 (In thousands) Impaired loans $ — $ — $ 82 $ 82 Other real estate owned — — 226 226 $ — $ — $ 308 $ 308 The following table presents quantitative information with regards to Level 3 fair value measurements at December 31, 2022. Fair Value Range December 31, Valuation Unobservable (Weighted Description 2022 Technique Input Average) (In thousands) Discount 6.0 % Impaired loans $ 30 Collateral 1 adjustment (6.0 %) 1 Fair value is generally determined through independent appraisal of the underlying collateral, primarily using comparable sales. The following table presents quantitative information with regards to Level 3 fair value measurements at December 31, 2021. Description Fair Value December 31, 2021 Valuation Technique Unobservable Range (In thousands) Discount 6.0 % Impaired loans $ 82 Collateral 1 adjustment (6.0 %) Discount 0.0 % Other real estate owned 2 $ 226 Collateral 1 adjustment 0.0 % 1 Fair value is generally determined through independent appraisal of the underlying collateral, primarily using comparable sales. 2 The other real estate owned was written down to the estimated net realizable value. The following methods and assumptions were used by the Bank in estimating fair value disclosures: Investment Securities The fair value of securities available-for-sale held-to-maturity Impaired loans (generally carried at fair value) Impaired loans carried at fair value are those impaired loans in which the Bank has measured impairment generally based on the fair value of the related loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds, discounted for estimated selling costs or other factors the Bank determines will impact collection of proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Other real estate owned (generally carried at fair value) Other real estate owned is adjusted to fair value, less estimated selling costs, upon transfer of loans to other real estate owned. Subsequently, other real estate owned is carried at the lower of carrying value or fair value less cost to sell. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The discount adjustment from the appraised value is a significant unobservable input in the determination of the fair value for other real estate owned. These assets are included as Level 3 fair values. Loans Receivable, net The fair value of loans receivable, net is based on discounted cash flow methodologies for which the determination of fair value may require significant management judgement. Deposits The fair value of deposits is based on discounted cash flow methodologies for which the determination of fair value may require significant management judgement. Borrowings Borrowings held by the Bank that are overnight, the carrying value is deemed to be its approximate fair value. Restricted investment in bank stock and accrued interest receivable and accrued interest payable Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business. The fair value has not been estimated for assets and liabilities that are not considered financial instruments. The carrying amounts and estimated fair value of financial instruments are as follows: December 31, 2022 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 53,351 $ 53,351 $ 53,351 $ — $ — Securities AFS 83,402 83,402 — 81,341 2,061 Securities HTM 201 200 — 200 — Loans receivable, net 1,353,907 1,347,137 — — 1,347,137 Restricted bank stock 1,742 1,742 — 1,742 — Accrued interest receivable 4,756 4,756 — 4,756 — Financial Liabilities Deposits 1,347,730 1,225,087 — 1,225,087 — Borrowings 10,000 10,000 — 10,000 — Accrued interest payable 1,027 1,027 — 1,027 — The carrying amounts and estimated fair value of financial instruments are as follows: December 31, 2021 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 158,716 $ 158,716 $ 158,716 $ — $ — Securities available-for-sale 101,158 101,158 — 100,356 802 Securities held-to-maturity 208 225 — 225 — Loans receivable, net 1,318,543 1,384,470 — — 1,384,470 Restricted investments in bank stock 1,345 1,345 — 1,345 — Accrued interest receivable 4,218 4,218 — 4,218 — Financial Liabilities: Deposits 1,446,143 1,438,912 — 1,438,912 — Accrued interest payable 1,044 1,044 — 1,044 — Limitations The fair value estimates are made at a discrete point in time based on relevant market information and information about the 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. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all of the financial instruments were offered for sale. This is due to the fact that no active market exists for a sizable portion of the loan, deposit and off-balance In addition, the fair value estimates are based on existing on and off-balance Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 15 – Stock-Based Compensation In 2007, the Bank adopted The Bank of Princeton 2007 Stock Option Plan (the “2007 Plan”), which was approved by our board of directors in August 2007 and by our stockholders in October 2007. The 2007 Plan enables the board of directors to grant stock options to employees, directors, consultants and other individuals who provide services to the Bank. The shares subject to or related to options under the 2007 Plan are authorized and unissued shares of the Bank. The maximum number of shares that may be subject to options under the 2007 Plan is 300,000, all of which may be issued as Incentive Stock Options and not more than 100,000 of which may be issued as Non-Qualified In 2012, the Bank adopted The Bank of Princeton 2012 Equity Incentive Plan (the “2012 Plan”), which was approved by our board of directors in February 2012 and by our stockholders in May 2012. The 2012 Plan enabled the board of directors to grant stock options or restricted shares of common stock to employees, directors, consultants and other individuals who provide services to the Bank. The shares subject to or related to options under the 2012 Plan are authorized and unissued shares of the Bank. In 2013, the Bank’s board of directors and stockholders approved an amendment to the 2012 Plan that increased the maximum number of shares that may be subject to options under the 2012 Plan from 100,000 to 600,000, all of which may be issued as Incentive Stock Options or as Non-Qualified In 2014, the Bank adopted an amendment to each of the 2007 Plan and to the 2012 Plan, which amendments were approved by our Board of Directors, to provide that all outstanding options under the 2007 Plan and the 2012 Plan will become fully vested and exercisable upon a change in control of the Bank and to further specify the consideration that may be exchanged with respect to outstanding awards upon any such change in control. In 2018, the Bank adopted The Bank of Princeton 2018 Equity Incentive Plan (the “2018 Plan”), which was approved by our board of directors in February 2018 and by our stockholders in May 2018. The 2018 Plan enabled the board of directors to grant stock options, restricted stock, or restricted stock units to employees, directors, consultants and other individuals who provide services to the Bank. At December 31, 2022 there were 263,489 shares remaining available for issuance under the 2018 Plan. The following is a summary of the status of the Bank’s stock option activity and related information for the year ended December 31, 2022: Weighted Avg. Number of Weighted Remaining Average Stock Average Contractual Intrinsic Options Exercise Price Life Value Balance at January 1, 2022 407,650 $ 20.08 Granted — — Exercised (76,900 ) 14.18 Forfeited — — Expired (100 ) 13.75 Balance at December 31, 2022 330,650 $ 21.45 2.87 Years $ 3,463,695 Exercisable at December 31, 2022 330,650 $ 21.45 2.87 Years $ 3,463,695 The expected life of stock options granted is generally derived from historical experience. Expected volatilities are general based on the average of three peers’ historical volatilities due to the limited liquidity of the Bank’s stock in the open market. The Bank uses an estimated forfeiture rate due to limited historical data. At the time of the grant, the Bank had not declared any cash dividend therefore no dividend yield was used. The risk-free rate for periods within the contractual term of the share option is based on the U.S. Treasury for a comparable term. The following is a summary of the status of the Bank’s stock option activity and related information for the year ended December 31, 2021: Number of Weighted Weighted Avg. Remaining Average Balance at January 1, 2021 431,980 $ 19.73 Granted — — Exercised (22,480 ) 13.22 Forfeited (1,350 ) 25.49 Expired (500 ) 12.00 Balance at December 31, 2021 407,650 $ 20.08 3.28 Years $ 4,069,054 Exercisable at December 31, 2021 395,125 $ 19.68 3.19 Years $ 4,069,054 The Bank granted 23,732 RSU’s during 2022, with a fair value of $30.12, which reflected the market value of the Bank’s common stock on the date of the grant. Of the 23,732 RSU’s granted during 2022, 4,550 RSU’s have a vesting and period of one year and the remaining 19,182 RSU’s vest over the next three years. The Bank granted 19,830 RSU’s during 2021, with a fair value of $21.43, which reflected the market value of the Bank’s common stock on the date of the grant. Of the 19,830 RSU’s granted during 2021, 3,500 RSU’s have a vesting and period of one year and the remaining 16,330 RSU’s vest over the next three years. Stock option expenses included in salaries and employee benefits expense in the consolidated statements of income were $491,000 (which includes RSU’s expense of $447,000) and $335,000 (which includes RSU expense of $214,000) for the years ended December 31, 2022 and 2021, respectively. A tax benefit was recognized of $131,000 and $70,000 for the years ended December 31, 2022 and 2021, respectively. Stock option expenses recorded within other expenses were $162,000 and $70,000 for the years ended December 31, 2022 and 2021, respectively. A tax benefit was recognized of $37,000 and $15,000 for the years ended December 31, 2022 and 2021, respectively. At December 31, 2022, there was approximately $685,000 of unrecognized expense related to outstanding stock options and RSU’s, which will be recognized over a period of approximately 1.74 years. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Regulatory Matters | Note 16 – Regulatory Matters Regulatory Capital Current FDIC capital standards require institutions to satisfy a common equity Tier 1 capital requirement, a leverage capital requirement and a risk-based capital requirement. The common equity Tier 1 capital component generally consists of retained earnings and common stock instruments and must equal at least 4.5% of risk-weighted assets. Leverage capital, also known as “core” capital, must equal at least 3.0% of adjusted total assets for the most highly rated state-chartered non-member case-by-case The final capital rules introduced a requirement for a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets which is in addition to the other minimum risk-based capital standards in the rule. Institutions that do not maintain this required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management. At December 31, 2022, the Bank met all capital adequacy requirements on a fully phased-in Any banking organization that fails any of the capital requirements is subject to possible enforcement action by the FDIC. Such action could include a capital directive, a cease and desist order, civil money penalties, the establishment of restrictions on the institution’s operations, termination of federal deposit insurance and the appointment of a conservator or receiver. The FDIC’s capital regulations provide that such actions, through enforcement proceedings or otherwise, could require one or more of a variety of corrective actions. The Bank’s actual capital amounts and ratios at December 31, 2022 and 2021 are presented below: To be well capitalized For capital conservation under prompt corrective Actual buffer requirement action provision Amount Ratio Amount Ratio Amount Ratio (Dollars in the thousands) December 31, 2022: Total capital (to risk-weighted assets) $ 233,657 15.309 % $ 160,256 10.500 % $ 152,625 10.000 % Tier 1 capital (to risk-weighted assets) $ 217,196 14.231 % $ 129,731 8.500 % $ 122,100 8.000 % Common equity tier 1 capital (to-risk weighted assets $ 217,196 14.231 % $ 106,838 7.000 % $ 99,206 6.500 % Tier 1 leverage capital (to average assets) $ 217,196 13.474 % $ 104,775 6.500 % $ 80,596 5.000 % December 31, 2021: Total capital (to risk-weighted assets) $ 221,113 15.085 % $ 153,906 10.500 % $ 146,577 10.000 % Tier 1 capital (to risk-weighted assets) $ 204,493 13.951 % $ 124,591 8.500 % $ 117,262 8.000 % Common equity tier 1 capital (to-risk weighted assets $ 204,493 13.951 % $ 102,604 7.000 % $ 95,275 6.500 % Tier 1 leverage capital (to average assets) $ 204,493 12.062 % $ 110,193 6.500 % $ 84,764 5.000 % The Bank is subject to certain restrictions on the amount of dividends that it may declare due to regulatory considerations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 – Subsequent Events On January 25, 2023, the Board of Directors declared a cash dividend of $0.30 per share of common stock. The dividend was paid on March 3, 2023 to shareholders of record at the close of business on February 10, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The consolidated financial statements include the accounts of the Bank and its wholly-owned subsidiaries: Bayard Lane, LLC, Bayard Properties, LLC, 112 Fifth Avenue, LLC, TBOP Delaware Investment Company and TBOP REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Estimates | Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes, actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of the potential impairment of goodwill. Management believes that the allowance for loan losses is adequate as of December 31, 2022 and 2021. While management uses current information to recognize losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions in the market area or other factors. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to effect certain changes that result in additions to the allowance based on their judgments about information available to them at the time of their examinations. |
Significant group concentrations of credit risk | Significant group concentrations of credit risk Most of the Bank’s activities are with customers located within the Mercer County, New Jersey, and surrounding areas as well as the five boroughs of New York City and certain Philadelphia, Pennsylvania metropolitan areas. The Bank does not have any portion of its business dependent on a single or limited number of customers or industries, the loss of which would have a material adverse effect on its business. No substantial portion of loans is concentrated within a single industry or group of related industries, except that a significant majority of commercial loans are secured by real estate. There are numerous risks associated with commercial and consumer lending that could impact the borrowers’ ability to repay on a timely basis. They include but are not limited to: the owner’s business expertise, changes in local, national, and in some cases international economies, competition, governmental regulation, and the general financial stability of the borrowing entity. |
Transfers of financial assets | Transfers of financial assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The outstanding balance of loan participations sold was $8.6 million and $10.5 million as of December 31, 2022 and 2021, respectively. |
Cash and due from banks | Cash and due from banks Cash and due from banks include cash on hand, on deposit at other financial institutions and the Federal Reserve Bank of Philadelphia. |
Securities | Securities The Bank’s investment portfolio includes both held-to-maturity available-for-sale Held-to-Maturity held-to-maturity Available-for-Sale available-for-sale. non-credit Premiums are amortized using the interest method to the earliest call date and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Bank evaluates its securities portfolio for OTTI throughout the year. Each investment, having a fair value less than the book value, is reviewed on a quarterly basis by management. Management considers, at a minimum, whether the following factors exist that, both individually or in combination, could indicate that the decline is other-than-temporary: (a) the Bank has the intent to sell the security; (b) it is more likely than not that it will be required to sell the security before recovery; and (c) the Bank does not expect to recover the entire amortized cost basis of the security. Among the factors that are considered in determining the Bank’s intent are capital adequacy, interest rate risk profile and liquidity at the Bank. An impairment charge is recorded against individual securities if the review described above concludes that the decline in value is other-than-temporary. During 2022 and 2021, it was determined that there were no other-than-temporarily impaired investments. |
Loans Receivable | Loans Receivable Loans receivable that management has the intent and ability to hold until maturity or payoff are reported at their outstanding unpaid principal balances, net of an allowance for loan losses, and deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield on the related loans. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the level-yield method. The loan receivable portfolio is segmented into commercial real estate (includes multi-family), commercial and industrial, construction, residential first-lien mortgage, home equity/consumer loans and Payroll Protection Program loans (“PPP”) guaranteed by U.S. Small Business Administration (“SBA”). For all segments of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest is 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well-secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all segments of loans receivable is determined on contractual due dates for loan payments. |
Allowance for credit losses | Allowance for credit losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the Consolidated Statements of Financial Condition. The allowance for loan losses is increased by the provision for loan losses and recoveries, and decreased by charge-offs. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. The allowance for loan losses is maintained at a level considered adequate to provide for probable losses. The Bank performs, at least quarterly, an evaluation of the adequacy of the allowance. The allowance is based on past loan loss experience (which is bound by the Bank’s limited operating history), known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, the composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan segment, including loans not considered impaired, as well as smaller balance homogeneous loans, such as residential mortgage, home equity and consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these loan segments, adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, 2. National, regional, and local economic and business conditions, as well as the condition of various market segments; 3. Nature and volume of the portfolio and terms of loans; 4. Experience, ability, and depth of lending management and staff; 5. Volume and severity of past due, classified and nonaccrual loans, as well as other loan modifications; 6. Quality of the Bank’s loan review system, and the degree of oversight by the Bank’s board of directors; 7. Existence and effect of any concentrations of credit and changes in the level of such concentrations; 8. Changes in the value of underlying collateral for collateral-dependent loans; and 9. Effect of external factors, such as competition and legal and regulatory requirements. The Bank determines the allowance for loan losses by portfolio segment, which consists of commercial real estate loans, commercial and industrial loans, construction loans, residential first-lien mortgage loans, home equity and consumer loans. The Bank estimates the inherent risk of loss on all loans by portfolio segment, based primarily on the risk factors identified above and by applying a weight factor ranging from 4 Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. Residential first-lien mortgage loans and home equity loans involve certain risks such as interest rate risk and risk of non-repayment. Construction lending is generally considered to involve a high degree of risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost, including interest, of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily for projects which are pre-sold Commercial real estate lending entails additional risks as compared with single-family residential real estate lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as economic conditions generally. Commercial and industrial lending is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In most cases, any repossessed collateral for a defaulted commercial business loan will not provide an adequate source of repayment of the outstanding loan balance. Consumer loans, including home equity loans, generally have shorter terms and higher interest rates than other lending but generally involve more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Collateral for these type of loans includes either first or second liens on residential properties. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In most cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan balance. PPP loans have a maturity term ranging from two six-month An unallocated component of the allowance for loan losses is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired loans. Management determines the significance of payment delays and payment shortfalls on a case-by-case loan-by-loan For commercial real estate loans, estimated fair values of the real estate collateral are determined primarily through third-party appraisals. When a real estate-secured loan becomes impaired, a decision is made regarding whether an updated appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value For commercial and industrial loans secured by non-real Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual residential first-lien mortgage loans, home equity loans and consumer loans for impairment, unless such loans are a troubled debt restructuring. Loans with modified terms are classified as troubled debt restructurings if the Bank grants borrower concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. As part of the Bank’s commitment to provide assistance during the COVID-19 Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification and continued repayment is reasonably assured. Loans classified as troubled debt restructurings are designated as impaired. The allowance calculation methodology includes further segregation of loan segments into risk-rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified loss are considered uncollectible and are charged-off Based on management’s comprehensive analysis of the loan portfolio, management believes the allowance for loan losses is adequate at the reported dates. |
Bank-owned life insurance | Bank-owned life insurance The Bank is the beneficiary of insurance policies on the lives of certain officers of the Bank. This life insurance investment is accounted for using the cash surrender value method and is recorded at its net realizable value. Increase in cash surrender values are recorded as tax exempted non-interest |
Other real estate owned | Other real estate owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are then recorded at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and write-downs are included in non-interest |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill represents the excess cost over the identifiable net assets of businesses acquired. The Bank’s intangible asset was derived from core deposits acquired that has a definitive life and is amortized over the estimated life. Both goodwill and the core deposit intangible asset are reviewed for impairment annually or when events and circumstances indicate that an impairment may have occurred. Accounting Standards Codification (“ASC”) Topic 350-20 |
Employee Benefit Plans | Employee Benefit Plans The Bank maintains a defined contribution Section 401(k) plan covering eligible employees. The Bank may make discretionary matching contributions. The Bank made matching contributions to employees of $207,000 and $168,000, respectively, during the years ended December 31, 2022 and 2021. The Bank also maintains a defined benefit supplemental executive retirement plan for the benefit of the chief executive officer and chief operating officer. Effective January 1, 2021 the Bank adopted an Employee Stock Ownership Plan (“ESOP”) enabling eligible employees to have a stock ownership interest in the Company. The Company intends to fund the plan on an annual basis. The ESOP is administered by a third-party trust. The Bank contributed $331,000 to the ESOP for each of the years ended December 31, 2022 and 2021. The funding of the ESOP is at the discretion of the board of directors. The Bank maintains an equity incentive plan to provide for issuance or granting shares of common stock options or restricted stock units. The Bank has recorded stock-based employee compensation cost using the fair value method as allowed under generally accepted accounting principles. Management estimated the fair value of all option grants using the Black-Scholes options-pricing model. Management estimated the expected life of options granted is generally derived from historical experiences. The risk-free rate for periods within the contractual terms of the share option is based on the U.S. Treasury for a comparable term. |
Premises and equipment | Premises and equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the shorter of the lease term or estimated useful lives of the related assets. |
Restricted Investment in Bank Stock | Restricted Investment in Bank Stock Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined formula. Restricted stock in the amount of $1.6 million and $1.3 million is carried at cost at December 31, 2022 and 2021, respectively. Management’s determination of whether these investments are impaired is based on an assessment of the ultimate recoverability of their cost, rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. The Bank also held $100,000 of stock in Atlantic Community Bankers Bank (“ACBB”) at December 31, 2022 and 2021. Management believes no impairment charge is necessary related to the FHLB restricted stock or the ACBB restricted stock as of December 31, 2022 or 2021. |
Income taxes | Income taxes The Bank accounts for income taxes in accordance with income tax accounting guidance contained in Financial Accounting Standards Board (“FASB”) ASC Topic 740, Income Taxes non-interest Federal and state income taxes have been provided on the basis of reported income or loss. The amounts reflected on the tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted for as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax liabilities and assets, respectively, for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided for the full amount which is not more likely than not to be realized. On September 29, 2020, New Jersey Governor Phil Murphy signed into law A.4721, extending through December 31, 2023, the 2.5 2.5 |
Off-balance sheet financial instruments | Off-balance In the ordinary course of business, the Bank has entered into off-balance |
Stock compensation plans | Stock compensation plans The stock compensation accounting guidance set forth in Financial Accounting Standards Board (“FASB”) ASC Topic 718, Compensation—Stock Compensation The stock compensation accounting guidance requires that compensation costs for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options. An option is considered to be forfeited, if the grant stock option were not exercised prior to vesting. At the date of grant, the Bank estimates the forfeiture rate as part of its initial determination of the fair-value of options granted and then adjusts forfeitures as they occur. |
Earnings per share | Earnings per share Basic earnings per share amounts are calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period, and exclude any dilutive effects of stock options and warrants. Diluted earnings per share amounts include the dilutive effects of stock options and warrants whose exercise price is less than the market price of the Bank’s shares. Diluted earnings per share amounts are calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period if options and warrants were exercised and converted into common stock, using the treasury stock method. |
Leases | Leases The Bank determines whether an arrangement is a lease at inception. Operating lease right-of-use ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not provide an implicit rate, we use our incremental borrowing rate, the Federal Home Loan Bank advance rate, based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset is net of lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease non-lease The Bank has elected certain practical expedients upon adoption of the lease guidance and therefore has not reassessed whether any expired or existing contracts contain leases, has not reassessed the lease classification for any expired or existing leases and has not reassessed initial direct costs for any existing leases. |
Advertising costs | Advertising costs The Bank charges the costs of advertising to expense as incurred. |
Comprehensive income | Comprehensive income Accounting principles generally require that recognized revenues, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale available-for-sale |
Accounting Standard Pending Adoption | Accounting Standard Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, one-time In March 2020, the FASB issued ASU No. 2020-04, re-measurements 2020-04 2020-04 2020-04 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of earnings per share | The following schedule presents earnings per share data: Years ended December 31, 2022 2021 (In thousands, expect per share data) Net income applicable to common stock $ 26,494 $ 22,486 Weighted average number of common shares outstanding 6,320 6,667 Basic earnings per share $ 4.19 $ 3.37 Net income applicable to common stock $ 26,494 $ 22,486 Weighted average number of common shares outstanding 6,320 6,667 Dilutive effect on common shares outstanding 129 148 Weighted average number of diluted common shares outstanding $ 6,449 $ 6,814 Diluted earnings per share $ 4.11 $ 3.30 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost and estimated fair value | The following summarizes the amortized cost and estimated fair value of securities available-for-sale December 31, 2022 Amortized Gross Gross Fair Value Available -for-sale (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 41,515 $ 2 $ (6,602 ) $ 34,915 U.S. government agency securities 6,260 — (1,175 ) 5,085 Obligations of state and political subdivisions 45,161 8 (3,828 ) 41,341 SBIC securities 2,061 — — 2,061 Total $ 94,997 $ 10 $ (11,605 ) $ 83,402 December 31, 2021 Amortized Gross Gross Fair Value Available -for-sale (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 44,948 $ 337 $ (635 ) $ 44,650 U.S. government agency securities 6,267 — (29 ) 6,238 Obligations of state and political subdivisions 48,011 1,466 (9 ) 49,468 SBIC securities 802 — — 802 Total $ 100,028 $ 1,803 $ (673 ) $ 101,158 |
Summary of fair value of related securities available-for-sale | The unrealized losses, categorized by the length of time in a continuous loss position, and the fair value of related securities available-for-sale Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 15,605 $ (1,778 ) $ 19,137 $ (4,824 ) $ 34,742 $ (6,602 ) U.S. government agency securities — $ — 5,085 (1,175 ) 5,085 (1,175 ) Obligations of state and political subdivisions 36,421 (3,457 ) 1,352 (371 ) 37,773 (3,828 ) SBIC securities — — — — — — Total $ 52,026 $ (5,235 ) $ 25,574 $ (6,370 ) $ 77,600 $ (11,605 ) Less than 12 Months More than 12 Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 (In thousands) Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) $ 25,909 $ (635 ) $ — $ — $ 25,909 $ (635 ) U.S. government agency securities 6,238 $ (29 ) — — 6,238 (29 ) Obligations of state and political subdivisions 1,714 (9 ) — — 1,714 (9 ) SBIC securities 802 — — — 802 — Total $ 34,663 $ (673 ) $ — $ — $ 34,663 $ (673 ) |
Summary of securities available-for-sale by contractual maturity | The amortized cost and estimated fair value of securities available-for-sale Amortized Cost Fair Value (In thousands) Due in one year or less $ 980 $ 980 Due after one year through five years 4,137 4,056 Due after five years through ten years 25,974 24,207 Due after ten years 20,330 17,183 Mortgage-backed securities (GSEs) 41,515 34,915 SBIC securities 2,061 2,061 $ 94,997 $ 83,402 |
Summary of held to maturity securities | The following summarizes the amortized cost and estimated fair value of securities held-to-maturity December 31, 2022 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (In thousands) Held-to-maturity: Mortgage-backed securities (GSEs) $ 201 $ — $ (1 ) $ 200 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (In thousands) Held-to-maturity: Mortgage-backed securities (GSEs) $ 208 $ 17 $ — $ 225 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of loans receivable net | Loans receivable, net was comprised of the following: December 31, December 31, 2022 2021 (In thousands) Commercial real estate $ 873,573 $ 771,028 Commercial and industrial 28,859 29,677 Construction 417,538 403,680 Residential first-lien mortgage 43,125 48,638 Home equity/Consumer 7,260 7,685 Payroll Protection Program -Phase I 1,307 6,641 Payroll Protection Program -Phase II 1,162 73,099 Total loans 1,372,824 1,340,448 Deferred fees and costs (2,456 ) (5,285 ) Allowance for loan losses (16,461 ) (16,620 ) Loans, net $ 1,353,907 $ 1,318,543 |
Summary of nonaccrual loans by segment of loan portfolio | The following table presents nonaccrual loans by segment of the loan portfolio: December 31, December 31, 2022 2021 (In thousands) Commercial real estate $ — $ 766 Commercial and industrial — — Construction 148 278 Residential first-lien mortgage 118 131 Total nonaccrual loans $ 266 $ 1,175 |
Summary of impaired loans by loan portfolio segment | The following table summarizes information in regard to impaired loans by loan portfolio segment, segregated by those for which a related allowance was required and those for which a related allowance was not necessary, as of December 31, 2022 and the year then ended: Unpaid Average Interest Principal Recorded Related Recorded Income Balance Investment Allowance Investment Recognized (In thousands) With no related allowance recorded: Commercial real estate $ 13,226 $ 12,030 $ — $ 12,339 $ 538 Commercial and industrial 10 10 — 12 1 Construction — — — — — Residential first-lien mortgage 137 118 — 124 6 Home equity/Consumer 71 71 — 89 6 Total with no related allowance $ 13,444 $ 12,229 $ — $ 12,564 $ 551 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Construction 248 148 118 155 — Residential first-lien mortgage — — — — — Home equity/Consumer — — — — — Total with an allowance $ 248 $ 148 $ 118 $ 155 $ — Total: Commercial real estate $ 13,226 $ 12,030 $ — $ 12,339 $ 538 Commercial and industrial 10 10 — 12 1 Construction 248 148 118 155 — Residential first-lien mortgage 137 118 — 124 6 Home equity/Consumer 71 71 — 89 6 Total $ 13,692 $ 12,377 $ 118 $ 12,719 $ 551 The following table summarizes information in regard to impaired loans by loan portfolio segment, segregated by those for which a related allowance was required and those for which a related allowance was not necessary, as of December 31, 2021 and the year then ended: Unpaid Average Interest Principal Recorded Related Recorded Income Balance Investment Allowance Investment Recognized (In thousands) With no related allowance recorded: Commercial real estate $ 16,017 $ 13,155 $ — $ 9,667 $ 656 Commercial and industrial 1,138 15 — 526 16 Construction — — — 243 — Residential first-lien mortgage 144 131 — 138 6 Home equity/Consumer 106 108 — 124 8 Total with no related allowance $ 17,405 $ 13,409 $ — $ 10,698 $ 686 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Construction 278 278 196 359 — Residential first-lien mortgage — — — — — Home equity/Consumer — — — — — Total with an allowance $ 278 $ 278 $ 196 $ 359 $ — Total: Commercial real estate $ 16,017 $ 13,155 $ — $ 9,667 $ 656 Commercial and industrial 1,138 15 — 526 16 Construction 278 278 196 602 — Residential first-lien mortgage 144 131 — 138 6 Home equity/Consumer 106 108 — 124 8 Total $ 17,683 $ 13,687 $ 196 $ 11,057 $ 686 |
Summary of performance and credit quality of loan portfolio | The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2022: Loans 30-59 60-89 Receivable Days Days Greater Total Total >90 Days Past Past than Past Loans and Due Due 90 days Due Current Receivable Accruing (In thousands) Commercial real estate $ — $ 6,193 $ — $ 6,193 $ 867,380 $ 873,573 $ — Commercial and industrial — — — — 28,859 28,859 — Construction — — 148 148 417,390 417,538 — Residential first-lien mortgage 1,292 — 118 1,410 41,715 43,125 — Home equity/consumer — — — — 7,260 7,260 — PPP Phase I & II 1 255 — 184 439 2,030 2,469 184 Total $ 1,547 $ 6,193 $ 450 $ 8,190 $ 1,364,634 $ 1,372,824 $ 184 1 PPP loans that are classified as past due in the table above, have applied for or are in the process of requesting loan forgiveness from the SBA. The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2021: Loans 30-59 60-89 Receivable Days Days Greater Total Total >90 Days Past Past than Past Loans and Due Due 90 days Due Current Receivable Accruing (In thousands) Commercial real estate $ 27 $ — $ 766 $ 793 $ 770,235 $ 771,028 $ — Commercial and industrial — — — — 29,677 29,677 — Construction — — 278 278 403,402 403,680 — Residential first-lien mortgage 425 — — 425 48,213 48,638 — Home equity/consumer — — — — 7,685 7,685 — PPP Phase I & II 1 585 1,254 151 1,990 77,750 79,740 151 Total $ 1,037 $ 1,254 $ 1,195 $ 3,486 $ 1,336,962 $ 1,340,448 $ 151 1 PPP loans that are classified as past due in the table above, have applied for or are in the process of requesting loan forgiveness from the SBA. |
Summary of aggregate pass and classified rating of segments of loan portfolio | The following table presents the segments of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of December 31, 2022: Special Pass Mention Substandard Doubtful Total With no related allowance recorded: Commercial real estate $ 864,497 $ 2,883 $ 6,193 $ — $ 873,573 Commercial and industrial 28,350 509 — — 28,859 Construction 417,390 — 148 — 417,538 Residential first-lien mortgage 1 43,007 — 118 — 43,125 Home equity/Consumer 1 7,260 — — — 7,260 PPP Phase I & II 2,469 — — — 2,469 Total with no related allowance $ 1,362,973 $ 3,392 $ 6,459 $ — $ 1,372,824 1 The Bank does not asign a risk rating to residential real estate and consumer based loans. They are deemed to be performing or non-performing based on deliquency status. The following table presents the segments of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank’s internal risk rating system as of December 31, 2021: Special Pass Mention Substandard Doubtful Total With no related allowance recorded: Commercial real estate $ 754,192 $ 3,832 $ 13,004 $ — $ 771,028 Commercial and industrial 29,071 606 — — 29,677 Construction 403,402 — 278 — 403,680 Residential first-lien mortgage 1 48,507 — 131 — 48,638 Home equity/Consumer 1 7,685 — — — 7,685 PPP Phase I & II 79,740 — — — 79,740 Total with no related allowance $ 1,322,597 $ 4,438 $ 13,413 $ — $ 1,340,448 1 The Bank does not asign a risk rating to residential real estate and consumer based loans. They are deemed to be performing or non-performing based on deliquency status. |
Summary of allowance for loan losses on loans receivables | Allowance for loan losses on loans receivables at and for the year ended December 31, 2022: Commercial Residential Commercial and first-lien Home equity/ Real estate industrial Construction mortgage Consumer PPP Unallocated Total Allowance for loan losses: Beginning balance $ 7,458 $ 713 $ 7,228 $ 267 $ 48 $ — $ 906 $ 16,620 Provision (credit) 1,655 (442 ) (839 ) (31 ) (3 ) — 60 400 Charge-offs (757 ) — (100 ) — — — — (857 ) Recoveries 298 — — — — — — 298 Total $ 8,654 $ 271 $ 6,289 $ 236 $ 45 $ — $ 966 $ 16,461 Ending Balance: Individually evaluated for impairment $ — $ — $ 118 $ — $ — $ — $ — $ 118 Collectively evaluated for impairment $ 8,654 $ 271 $ 6,171 $ 236 $ 45 $ — $ 966 $ 16,343 Recorded investment in loans receivables at December 31, 2022: Commercial Residential Commercial and first-lien Home equity/ Real estate industrial Construction mortgage Consumer PPP Unallocated Total Loans: Ending Balance: Individually evaluated for impairment $ 12,030 $ 10 $ 148 $ 118 $ 71 $ — $ — $ 12,377 Collectively evaluated for impairment 861,543 28,849 417,390 43,007 7,189 2,469 — 1,360,447 Ending balance $ 873,573 $ 28,859 $ 417,538 $ 43,125 $ 7,260 $ 2,469 $ — $ 1,372,824 Allowance for loan losses on loans receivables at and for the year ended December 31, 2021: Commercial Commercial Construction Residential first-lien Home equity/ Consumer PPP Unallocated Total Allowance for loan losses: Beginning balance $ 9,635 $ 1,015 $ 4,069 $ 324 $ 61 $ — $ 923 $ 16,027 Provision (credit) (102 ) 655 3,159 (57 ) (13 ) — (17 ) 3,625 Charge-offs (2,116 ) (1,060 ) — — — — — (3,176 ) Recoveries 41 103 — — — — — 144 Total $ 7,458 $ 713 $ 7,228 $ 267 $ 48 $ — $ 906 $ 16,620 Ending Balance: Individually evaluated for impairment $ — $ — $ 196 $ — $ — $ — $ — $ 196 Collectively evaluated for impairment $ 7,458 $ 713 $ 7,032 $ 267 $ 48 $ — $ 906 $ 16,424 Recorded investment in loans receivables at December 31, 2021: Commercial Residential Commercial and first-lien Home equity/ Real estate industrial Construction mortgage Consumer PPP Unallocated Total Loans: Ending Balance: Individually evaluated for impairment $ 13,155 $ 15 $ 278 $ 131 $ 108 $ — $ — $ 13,687 Collectively evaluated for impairment 757,873 29,662 403,402 48,507 7,577 79,740 — 1,326,761 Ending balance $ 771,028 $ 29,677 $ 403,680 $ 48,638 $ 7,685 $ 79,740 $ — $ 1,340,448 |
Summary of loans to related party | 2022 2021 Outstanding related party loans at January 1 $ 5,639 $ 6,079 New loans — 515 Repayments (778 ) (955 ) Outstanding related party loans at December 31 $ 4,861 $ 5,639 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of components of premises and equipment | The components of premises and equipment at December 31 were as follows: Estimated useful lives 2022 2021 Land N/A $ 1,468 $ 1,468 Buildings 40 Years 3,946 3,647 Leashold improvements Lessor of lease or useful life 8,347 8,742 Furniture, fixtures and equipment 3-7 Years 3,311 3,157 Construction in progress 107 835 Total before accumulated depreciation and amortization 17,179 17,849 Accumulated depreciation and amortization (5,457 ) (5,251 ) Total $ 11,722 $ 12,598 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Summary of components of deposits | The components of deposits at December 31 were as follows (Dollars in thousands): December 31, December 31, 2022 2021 Demand, non-interest-bearing $ 265,078 19.67 % $ 286,247 19.79 % Demand, interest-bearing checking 269,737 20.01 % 259,022 17.91 % Savings 190,686 14.15 % 225,579 15.60 % Money Market 283,652 21.05 % 373,075 25.80 % Time deposits, $250,000 and over 83,410 6.19 % 33,741 2.33 % Time deposits, other 255,167 18.93 % 268,479 18.57 % $ 1,347,730 100.00 % $ 1,446,143 100.00 % |
Summary of maturities of certificates of deposit | At December 31, 2022, the scheduled maturities of certificates of deposit were as follows: Amount Years Ended December 31 2023 $ 158,659 2024 120,028 2025 36,246 2026 21,786 2027 and thereafter 1,859 Total $ 338,578 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Off-Balance-Sheet, Credit Loss, Liability [Abstract] | |
Summary of off-balance sheet financial instruments | The Bank had the following off-balance 2022 2021 Performance and standby letters of credit $ 1,420 $ 486 Undisbursed loans-in-process 140,538 229,155 Commitments to fund loans 41,753 51,817 Unfunded commitments under lines of credit 5,800 4,573 Total $ 189,511 $ 286,031 |
Income Taxes (Table)
Income Taxes (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Income Tax Provision | Income tax expense for the years ended December 31 is as follows: 2022 2021 Current tax expense: Federal $ 4,621 $ 4,608 State 2,411 1,819 Total current 7,032 6,427 Deferred income tax benefit: Federal 876 417 State (349 ) (141 ) Total deferred 527 276 $ 7,559 $ 6,703 |
Schedule Of Company's Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows: 2022 2021 Deferred tax assets: Allowance for loan losses $ 4,638 $ 4,332 Net operating loss carry-forward 374 421 Organization costs — 5 Branch acquisition 26 27 Other 681 400 Core deposit intangible 397 293 Deferred PPP loans 28 726 Lease liability 4,726 4,446 SERP liabiltiy 202 89 Unrealized loss on securities 3,322 — Total deferred tax assets 14,394 10,739 Deferred tax liabilities: Depreciation (1,341 ) (993 ) Deferred loan costs (335 ) (242 ) ROU (4,515 ) (4,277 ) Acquisition accounting adjustments (8 ) (7 ) Goodwill amortization (596 ) (397 ) Section 481a Adj. — (18 ) Unrealized gain on securities — (291 ) Total deferred tax liabilities (6,795 ) (6,225 ) Net deferred tax asset $ 7,599 $ 4,514 |
Schedule of Effective Income Tax Rate Reconciliation | Total income taxes differed from the amount computed by applying the statutory federal income tax rate to pre-tax 2022 2021 Amount Rate Amount Rate Federal income tax expense at statutory rate $ 7,151 21.0 % $ 6,130 21.0 % Increase (reduction) in taxes resulting from: State income taxes, net of federal benefit 1,629 4.8 % 1,326 4.5 % Tax-exempt (772 ) -2.3 % (790 ) -2.7 % Incentive stock options (146 ) -0.4 % 17 0.1 % Non-deductible 17 0.1 % 8 0.0 % IRS Refund (516 ) -1.5 % — — Other 196 0.5 % 12 0.0 % Total income taxes applicable to pre-tax $ 7,559 22.2 % $ 6,703 22.9 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of operating leases of lessee | The following table represents the classification of the Bank’s right of use and lease liabilities (Dollars in thousands): Statemen of Financial Condition Location December 31, 2022 December 31, 2021 Operating Lease Right of Use Asset: Gross carrying amount $ 17,919 $ 18,408 Increased asset from new lease — 1,504 Accumulated amortization (1,893 ) (1,998 ) Net book value Operating lease right-of-use $ 16,026 $ 17,914 Operating Lease liabilities: Lease liabilities Operating lease liability $ 16,772 $ 18,561 |
Summary of lease cost | Year Ended December 31, 2022 2021 (In thousands) Lease cost: Operating lease $ 2,700 $ 2,940 Short-term lease cost 94 97 Total lease cost $ 2,794 $ 3,037 Other information: Cash paid for amounts included in the measurement of lease liabilities: $ 2,309 $ 2,488 |
Summary of lessee operating lease liability maturity | Future minimum payments under operating leases with terms longer than 12 months are as follows at December 31, 2022: Amount (In thousands) Twelve months ended December 31, 2023 $ 2,298 2024 2,065 2025 2,048 2026 1,854 2027 1,559 Thereafter 10,371 Total future operating lease payment 20,195 Amounts representing interest (3,423 ) Present value of net future lease payments $ 16,772 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangible (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying amount of goodwill and core deposit intangible assets | The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows (Dollars in thousands): Core Deposit Goodwill Intangible Balance at December 31, 2021 $ 8,853 $ 2,393 Amortization expense — (568 ) Balance at December 31, 2022 $ 8,853 $ 1,825 Core Deposit Goodwill Intangible Balance at December 31, 2020 $ 8,853 $ 3,036 Amortization expense — (643 ) Balance at December 31, 2021 $ 8,853 $ 2,393 |
Summary of future fiscal periods amortization for the core deposit intangible | As of December 31, 2022, the future fiscal periods amortization for the core deposit intangible is: Amount (In thousands) 2023 $ 492 2024 415 2025 338 2026 261 2027 183 Thereafter 136 Total $ 1,825 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary Of Financial Assets Measured At Fair Value On Recurring Basis | For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2022 were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2022 (In thousands) Mortgage-backed securities -U.S. Government Sponsored Enterprise (GSEs) $ — $ 34,915 $ — $ 34,915 U.S. government agency securities — 5,085 — 5,085 Obligations of state and political subdivisions — 41,341 — 41,341 SBIC securities — — 2,061 2,061 Securities available-for-sale $ — $ 81,341 $ 2,061 $ 83,402 For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2021 were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2021 (In thousands) Mortgage-backed securities -U.S. Government Sponsored Enterprise (GSEs) $ — $ 44,650 $ — $ 44,650 U.S. government agency securities — 6,238 — 6,238 Obligations of state and political subdivisions — 49,468 — 49,468 SBIC securities — — 802 802 Securities available-for-sale $ — $ 100,356 $ 802 $ 101,158 |
Summary Of Financial Assets Measured At Fair Value On NonRecurring Basis | For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2022, were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2022 (In thousands) Impaired loans $ — $ — $ 30 $ 30 $ — $ — $ 30 $ 30 For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2021, were as follows: (Level 1) Quoted Price (Level 2) in Active Significant (Level 3) Total Fair Markets for Other Significant Value Identical Observable Unobservable December 31, Description Assets Inputs Inputs 2021 (In thousands) Impaired loans $ — $ — $ 82 $ 82 Other real estate owned — — 226 226 $ — $ — $ 308 $ 308 |
Summary Of Quantitative Information With Regards To Level 3 Fair Value Measurements | The following table presents quantitative information with regards to Level 3 fair value measurements at December 31, 2022. Fair Value Range December 31, Valuation Unobservable (Weighted Description 2022 Technique Input Average) (In thousands) Discount 6.0 % Impaired loans $ 30 Collateral 1 adjustment (6.0 %) The following table presents quantitative information with regards to Level 3 fair value measurements at December 31, 2021. Description Fair Value December 31, 2021 Valuation Technique Unobservable Range (In thousands) Discount 6.0 % Impaired loans $ 82 Collateral 1 adjustment (6.0 %) Discount 0.0 % Other real estate owned 2 $ 226 Collateral 1 adjustment 0.0 % |
Summary Of Carrying Amounts And Estimated Fair Value Of Financial Instruments | The carrying amounts and estimated fair value of financial instruments are as follows: December 31, 2022 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 53,351 $ 53,351 $ 53,351 $ — $ — Securities AFS 83,402 83,402 — 81,341 2,061 Securities HTM 201 200 — 200 — Loans receivable, net 1,353,907 1,347,137 — — 1,347,137 Restricted bank stock 1,742 1,742 — 1,742 — Accrued interest receivable 4,756 4,756 — 4,756 — Financial Liabilities Deposits 1,347,730 1,225,087 — 1,225,087 — Borrowings 10,000 10,000 — 10,000 — Accrued interest payable 1,027 1,027 — 1,027 — The carrying amounts and estimated fair value of financial instruments are as follows: December 31, 2021 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 158,716 $ 158,716 $ 158,716 $ — $ — Securities available-for-sale 101,158 101,158 — 100,356 802 Securities held-to-maturity 208 225 — 225 — Loans receivable, net 1,318,543 1,384,470 — — 1,384,470 Restricted investments in bank stock 1,345 1,345 — 1,345 — Accrued interest receivable 4,218 4,218 — 4,218 — Financial Liabilities: Deposits 1,446,143 1,438,912 — 1,438,912 — Accrued interest payable 1,044 1,044 — 1,044 — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary Of Status Of Bank Stock Option Activity | The following is a summary of the status of the Bank’s stock option activity and related information for the year ended December 31, 2022: Weighted Avg. Number of Weighted Remaining Average Stock Average Contractual Intrinsic Options Exercise Price Life Value Balance at January 1, 2022 407,650 $ 20.08 Granted — — Exercised (76,900 ) 14.18 Forfeited — — Expired (100 ) 13.75 Balance at December 31, 2022 330,650 $ 21.45 2.87 Years $ 3,463,695 Exercisable at December 31, 2022 330,650 $ 21.45 2.87 Years $ 3,463,695 The following is a summary of the status of the Bank’s stock option activity and related information for the year ended December 31, 2021: Number of Weighted Weighted Avg. Remaining Average Balance at January 1, 2021 431,980 $ 19.73 Granted — — Exercised (22,480 ) 13.22 Forfeited (1,350 ) 25.49 Expired (500 ) 12.00 Balance at December 31, 2021 407,650 $ 20.08 3.28 Years $ 4,069,054 Exercisable at December 31, 2021 395,125 $ 19.68 3.19 Years $ 4,069,054 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Summary Of Actual Capital Amounts And Ratios | The Bank’s actual capital amounts and ratios at December 31, 2022 and 2021 are presented below: To be well capitalized For capital conservation under prompt corrective Actual buffer requirement action provision Amount Ratio Amount Ratio Amount Ratio (Dollars in the thousands) December 31, 2022: Total capital (to risk-weighted assets) $ 233,657 15.309 % $ 160,256 10.500 % $ 152,625 10.000 % Tier 1 capital (to risk-weighted assets) $ 217,196 14.231 % $ 129,731 8.500 % $ 122,100 8.000 % Common equity tier 1 capital (to-risk weighted assets $ 217,196 14.231 % $ 106,838 7.000 % $ 99,206 6.500 % Tier 1 leverage capital (to average assets) $ 217,196 13.474 % $ 104,775 6.500 % $ 80,596 5.000 % December 31, 2021: Total capital (to risk-weighted assets) $ 221,113 15.085 % $ 153,906 10.500 % $ 146,577 10.000 % Tier 1 capital (to risk-weighted assets) $ 204,493 13.951 % $ 124,591 8.500 % $ 117,262 8.000 % Common equity tier 1 capital (to-risk weighted assets $ 204,493 13.951 % $ 102,604 7.000 % $ 95,275 6.500 % Tier 1 leverage capital (to average assets) $ 204,493 12.062 % $ 110,193 6.500 % $ 84,764 5.000 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||||
Jan. 01, 2023 USD ($) | Sep. 29, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 03, 2007 Branches | |
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Entity incorporation date of incorporation | Mar. 05, 2007 | |||||
State in which the entity was incorporated | NJ | |||||
Year of incorporation | 2007 | |||||
Operations commencement date | Apr. 23, 2007 | |||||
Number of branches owned by the entity | Branches | 23 | |||||
Actual percentage risk on loans receivable | 0% | |||||
Defined contribution plan employer discretionary contribution amount | $ 207,000 | $ 168,000 | ||||
Employee stock ownership plan cash contributions made to the plan | 331,000 | 331,000 | ||||
Restricted investment in bank stock | 1,742,000 | 1,345,000 | ||||
Retained earnings accumulated deficit | $ 131,488,000 | $ 111,451,000 | ||||
Accounting Standard Pending Adoption [Member] | Subsequent Event [Member] | Accounting Standards Update 2019-05 [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Retained earnings accumulated deficit | $ 304,000 | |||||
Financing receivable change in method credit loss expense reversal | 264,000 | |||||
Accounting Standard Pending Adoption [Member] | Subsequent Event [Member] | Accounting Standards Update 2019-05 [Member] | SEC Schedule, 12-09, Reserve, off-Balance-Sheet Activity [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Reserve for unfunded liability | $ 686,000 | |||||
A.4721 [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Surtax percentage on corporation business tax | 2.50% | 1.50% | 1.50% | 1.50% | ||
Threshold taxable income beyond which surtax is applicable | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Goodwill [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Probability in percentage terms where the carrying value exceeds fair value so that impairment need not be considered | 50% | |||||
Maximum probability in percentage terms where the fair value exceeds carrying value below which impairment may be considered | 50% | |||||
Investment in Federal Home Loan Bank Stock [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment charges | $ 0 | 0 | ||||
Restricted investment in bank stock | 1,600,000 | 1,300,000 | ||||
Investment in Atlantic Community Bankers Bank Stock [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment charges | 0 | 0 | ||||
Restricted investment in bank stock | $ 100,000 | $ 100,000 | ||||
Minimum [Member] | A.4721 [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Surtax percentage on corporation business tax | 1.50% | 1.50% | 1.50% | |||
Maximum [Member] | A.4721 [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Surtax percentage on corporation business tax | 2.50% | 2.50% | 2.50% | |||
Paycheck Protection Programmer Loan [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of months from the date of borrowing after which the borrowers are eligible to apply for forgiveness | 6 months | |||||
Paycheck Protection Programmer Loan [Member] | Minimum [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Loans receivable term | 2 years | |||||
Paycheck Protection Programmer Loan [Member] | Maximum [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Loans receivable term | 5 years | |||||
Risk Level, Low [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Risk factor loans receivable percentage estimate | 0.04% | |||||
Risk Level, High [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Risk factor loans receivable percentage estimate | 24% | |||||
Available For Sale Debt Securities [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment charges | $ 0 | |||||
Held To Maturity Securities [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment charges | $ 0 | |||||
New Jersey State Chartered Banking Institution [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
State in which the entity was incorporated | NJ | |||||
Loan Participations and Assignments [Member] | ||||||
Description Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Transfer of financial assets accounted for sales amount derecognized | $ 8,600,000 | $ 10,500,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income applicable to common stock | $ 26,494 | $ 22,486 |
Weighted average number of common shares outstanding | 6,320,000 | 6,667,000 |
Basic earnings per share | $ 4.19 | $ 3.37 |
Dilutive effect on common shares outstanding | 129 | 148 |
Weighted average number of diluted common shares outstanding | 6,449 | 6,814 |
Diluted earnings per share | $ 4.11 | $ 3.3 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Earnings Per Share (Parenthetical) (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Line Items] | ||
Number of shares | 129 | 148 |
Option [Member] | ||
Earnings Per Share [Line Items] | ||
Number of shares | 296,063 | 343,035 |
Weighted average exercise price | $ 16.62 | $ 16.76 |
Number of shares excluded | 95,750 | 95,871 |
Weighted average exercise price excluded | $ 32.69 | $ 32.45 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2022 USD ($) Securities | Dec. 31, 2021 USD ($) Securities | |
Marketable Securities [Line Items] | ||
Number of securities less than 12 months | Securities | 166 | |
Unrealized losses securities less than 12 months | $ 5,235,000 | $ 673,000 |
Percentage of amortized cost basis less than 12 months | 9.14% | |
Number of securities more than 12 months | Securities | 25 | |
Unrealized losses securities more than 12 months | $ 6,370,000 | $ 0 |
Percentage of amortized cost basis more than 12 months | 19.90% | |
Other than temporary impairment charges | $ 0 | |
Percentage of amortized cost basis | 1.91% | |
Sales of available-for-sale securities | 0 | $ 0 |
Proceeds from maturities of securities available-for-sale | 3,659,000 | 4,675,000 |
Gross realized gains | 2,000 | 7,000 |
Securities pledged as collateral | $ 0 | $ 0 |
Held to maturity securities debt maturities due after ten years | 10 years | |
Mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of securities less than 12 months | Securities | 59 | 18 |
Number of securities more than 12 months | Securities | 14 | |
Obligations of state and political subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Number of securities less than 12 months | Securities | 107 | 7 |
Unrealized losses securities less than 12 months | $ 3,457,000 | $ 9,000 |
Number of securities more than 12 months | Securities | 7 | |
Unrealized losses securities more than 12 months | $ 371,000 | $ 0 |
U.S. government agency securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of securities less than 12 months | Securities | 0 | |
Unrealized losses securities less than 12 months | $ 0 | $ 29,000 |
Number of securities more than 12 months | Securities | 4 | |
Unrealized losses securities more than 12 months | $ 1,175,000 | $ 0 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | $ 94,997 | $ 100,028 |
Gross Unrealized Gains | 10 | 1,803 |
Gross Unrealized Losses | (11,605) | (673) |
Fair value | 83,402 | 101,158 |
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 41,515 | 44,948 |
Gross Unrealized Gains | 2 | 337 |
Gross Unrealized Losses | (6,602) | (635) |
Fair value | 34,915 | 44,650 |
U.S. government agency securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 6,260 | 6,267 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,175) | (29) |
Fair value | 5,085 | 6,238 |
Obligations of state and political subdivisions [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 45,161 | 48,011 |
Gross Unrealized Gains | 8 | 1,466 |
Gross Unrealized Losses | (3,828) | (9) |
Fair value | 41,341 | 49,468 |
SBIC securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost | 2,061 | 802 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair value | $ 2,061 | $ 802 |
Investment Securities - Summa_2
Investment Securities - Summary of Fair Value of Available For Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items] | ||
Less than 12 Months Fair Value | $ 52,026 | $ 34,663 |
Less than 12 Months Unrealized Losses | (5,235) | (673) |
More than 12 Months Fair Value | 25,574 | 0 |
More than 12 Months Unrealized Losses | (6,370) | 0 |
Fair Value | 77,600 | 34,663 |
Unrealized Losses | (11,605) | (673) |
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | ||
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items] | ||
Less than 12 Months Fair Value | 15,605 | 25,909 |
Less than 12 Months Unrealized Losses | (1,778) | (635) |
More than 12 Months Fair Value | 19,137 | 0 |
More than 12 Months Unrealized Losses | (4,824) | 0 |
Fair Value | 34,742 | 25,909 |
Unrealized Losses | (6,602) | (635) |
U.S. government agency securities [Member] | ||
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items] | ||
Less than 12 Months Fair Value | 0 | 6,238 |
Less than 12 Months Unrealized Losses | 0 | (29) |
More than 12 Months Fair Value | 5,085 | 0 |
More than 12 Months Unrealized Losses | (1,175) | 0 |
Fair Value | 5,085 | 6,238 |
Unrealized Losses | (1,175) | (29) |
Obligations of state and political subdivisions [Member] | ||
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items] | ||
Less than 12 Months Fair Value | 36,421 | 1,714 |
Less than 12 Months Unrealized Losses | (3,457) | (9) |
More than 12 Months Fair Value | 1,352 | 0 |
More than 12 Months Unrealized Losses | (371) | 0 |
Fair Value | 37,773 | 1,714 |
Unrealized Losses | (3,828) | (9) |
SBIC securities [Member] | ||
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items] | ||
Less than 12 Months Fair Value | 0 | 802 |
Less than 12 Months Unrealized Losses | 0 | 0 |
More than 12 Months Fair Value | 0 | 0 |
More than 12 Months Unrealized Losses | 0 | 0 |
Fair Value | 0 | 802 |
Unrealized Losses | $ 0 | $ 0 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities Available For Sale By Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items] | ||
Amortized cost | $ 94,997 | $ 100,028 |
Fair value due in one year or less | 52,026 | 34,663 |
Fair value due after one year through five years | 25,574 | 0 |
Fair value | 83,402 | 101,158 |
Prepayment of Obligation [Member] | ||
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items] | ||
Amortized cost due in one year or less | 980 | |
Amortized cost due after one year through five years | 4,137 | |
Amortized cost due after five years through ten years | 25,974 | |
Amortized cost due after ten years | 20,330 | |
Amortized cost | 94,997 | |
Fair value due in one year or less | 980 | |
Fair value due after one year through five years | 4,056 | |
Fair value due after five years through ten years | 24,207 | |
Fair value due after ten years | 17,183 | |
Fair value | 83,402 | |
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | ||
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items] | ||
Amortized cost | 41,515 | 44,948 |
Fair value due in one year or less | 15,605 | 25,909 |
Fair value due after one year through five years | 19,137 | 0 |
Fair value | 34,915 | 44,650 |
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Prepayment of Obligation [Member] | ||
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items] | ||
Amortized cost | 41,515 | |
Fair value | 34,915 | |
SBIC securities [Member] | ||
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items] | ||
Amortized cost | 2,061 | 802 |
Fair value due in one year or less | 0 | 802 |
Fair value due after one year through five years | 0 | 0 |
Fair value | 2,061 | $ 802 |
SBIC securities [Member] | Prepayment of Obligation [Member] | ||
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items] | ||
Amortized cost | 2,061 | |
Fair value | $ 2,061 |
Investment Securities - Summa_4
Investment Securities - Summary of Held To Maturity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held to maturity amortized cost | $ 201 | $ 208 |
Held to maturity debt securities at fair value | 200 | 225 |
Mortgage-backed securities (GSEs) [Member] | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held to maturity amortized cost | 201 | 208 |
Held to maturity gross unrealized gains | 0 | 17 |
Held to maturity gross unrealized losses | (1) | 0 |
Held to maturity debt securities at fair value | $ 200 | $ 225 |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | Dec. 31, 2020 USD ($) | |
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Loans modifies as troubled debt restructuring | $ 0 | $ 0 | |
Loans to related parties | $ 4,861,000 | $ 5,639,000 | $ 6,079,000 |
Performing [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Number of loans | Loan | 3 | 4 | |
Troubled debt restructuring | $ 5,900,000 | $ 6,900,000 | |
Performing [Member] | Commercial real estate [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Troubled debt restructuring | 5,800,000 | 6,000,000 | |
Performing [Member] | HELOC [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Troubled debt restructuring | 71,000 | 140,000 | |
Performing [Member] | Commercial and industrial [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Troubled debt restructuring | 10,000 | 15,000 | |
Nonperforming [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Troubled debt restructuring | $ 0 | 766,000 | |
Nonperforming [Member] | Commercial real estate [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Troubled debt restructuring | $ 766,000 |
Loans Receivable - Summary of L
Loans Receivable - Summary of Loans Receivable Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,372,824 | $ 1,340,448 | |
Deferred fees and costs | (2,456) | (5,285) | |
Allowance for loan losses | (16,461) | (16,620) | $ (16,027) |
Loans, net | 1,353,907 | 1,318,543 | |
Commercial real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 873,573 | 771,028 | |
Allowance for loan losses | (8,654) | (7,458) | (9,635) |
Commercial and industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 28,859 | 29,677 | |
Allowance for loan losses | (271) | (713) | (1,015) |
Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 417,538 | 403,680 | |
Allowance for loan losses | (6,289) | (7,228) | (4,069) |
Residential first-lien mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 43,125 | 48,638 | |
Allowance for loan losses | (236) | (267) | (324) |
Home equity/consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 7,260 | 7,685 | |
Allowance for loan losses | (45) | (48) | $ (61) |
Payroll Protection Program - Phase I [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,307 | 6,641 | |
Payroll Protection Program - Phase II [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,162 | $ 73,099 |
Loans Receivable - Summary of N
Loans Receivable - Summary of Nonaccrual Loans by Segment of Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | $ 266 | $ 1,175 |
Commercial real estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 0 | 766 |
Commercial and industrial [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Construction [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 148 | 278 |
Residential first-lien mortgage [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | $ 118 | $ 131 |
Loans Receivable - Summary of I
Loans Receivable - Summary of Impaired Loans by Loan Portfolio Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance | $ 13,444 | $ 17,405 |
Recorded investment with no related allowance | 12,229 | 13,409 |
Average recorded investment with no related allowance | 12,564 | 10,698 |
Interest income recognized with no related allowance | 551 | 686 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance | 248 | 278 |
Recorded investment with an allowance | 148 | 278 |
Related allowance with an allowance | 118 | 196 |
Average recorded investment with an allowance | 155 | 359 |
Interest income recognized with an allowance | 0 | 0 |
Total: | ||
Unpaid principal balance | 13,692 | 17,683 |
Recorded investment | 12,377 | 13,687 |
Related allowance | 118 | 196 |
Average recorded investment | 12,719 | 11,057 |
Interest income recognized | 551 | 686 |
Commercial real estate [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance | 13,226 | 16,017 |
Recorded investment with no related allowance | 12,030 | 13,155 |
Average recorded investment with no related allowance | 12,339 | 9,667 |
Interest income recognized with no related allowance | 538 | 656 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Related allowance with an allowance | 0 | 0 |
Average recorded investment with an allowance | 0 | 0 |
Interest income recognized with an allowance | 0 | 0 |
Total: | ||
Unpaid principal balance | 13,226 | 16,017 |
Recorded investment | 12,030 | 13,155 |
Related allowance | 0 | 0 |
Average recorded investment | 12,339 | 9,667 |
Interest income recognized | 538 | 656 |
Commercial and industrial [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance | 10 | 1,138 |
Recorded investment with no related allowance | 10 | 15 |
Average recorded investment with no related allowance | 12 | 526 |
Interest income recognized with no related allowance | 1 | 16 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Related allowance with an allowance | 0 | 0 |
Average recorded investment with an allowance | 0 | 0 |
Interest income recognized with an allowance | 0 | 0 |
Total: | ||
Unpaid principal balance | 10 | 1,138 |
Recorded investment | 10 | 15 |
Related allowance | 0 | 0 |
Average recorded investment | 12 | 526 |
Interest income recognized | 1 | 16 |
Construction [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance | 0 | 0 |
Recorded investment with no related allowance | 0 | 0 |
Average recorded investment with no related allowance | 0 | 243 |
Interest income recognized with no related allowance | 0 | 0 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance | 248 | 278 |
Recorded investment with an allowance | 148 | 278 |
Related allowance with an allowance | 118 | 196 |
Average recorded investment with an allowance | 155 | 359 |
Interest income recognized with an allowance | 0 | 0 |
Total: | ||
Unpaid principal balance | 248 | 278 |
Recorded investment | 148 | 278 |
Related allowance | 118 | 196 |
Average recorded investment | 155 | 602 |
Interest income recognized | 0 | 0 |
Residential first-lien mortgage [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance | 137 | 144 |
Recorded investment with no related allowance | 118 | 131 |
Average recorded investment with no related allowance | 124 | 138 |
Interest income recognized with no related allowance | 6 | 6 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Related allowance with an allowance | 0 | 0 |
Average recorded investment with an allowance | 0 | 0 |
Interest income recognized with an allowance | 0 | 0 |
Total: | ||
Unpaid principal balance | 137 | 144 |
Recorded investment | 118 | 131 |
Related allowance | 0 | 0 |
Average recorded investment | 124 | 138 |
Interest income recognized | 6 | 6 |
Home equity/consumer [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance | 71 | 106 |
Recorded investment with no related allowance | 71 | 108 |
Average recorded investment with no related allowance | 89 | 124 |
Interest income recognized with no related allowance | 6 | 8 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Related allowance with an allowance | 0 | 0 |
Average recorded investment with an allowance | 0 | 0 |
Interest income recognized with an allowance | 0 | 0 |
Total: | ||
Unpaid principal balance | 71 | 106 |
Recorded investment | 71 | 108 |
Related allowance | 0 | 0 |
Average recorded investment | 89 | 124 |
Interest income recognized | $ 6 | $ 8 |
Loans Receivable - Summary of P
Loans Receivable - Summary of Performance and Credit Quality of Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | $ 266 | $ 1,175 |
Current | 1,364,634 | 1,336,962 |
Total loans receivable | 1,372,824 | 1,340,448 |
Loans receivable more than 90 days and accruing | 184 | 151 |
Commercial real estate [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 766 |
Current | 867,380 | 770,235 |
Total loans receivable | 873,573 | 771,028 |
Loans receivable more than 90 days and accruing | 0 | 0 |
Commercial and industrial [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
Current | 28,859 | 29,677 |
Total loans receivable | 28,859 | 29,677 |
Loans receivable more than 90 days and accruing | 0 | 0 |
Construction [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 148 | 278 |
Current | 417,390 | 403,402 |
Total loans receivable | 417,538 | 403,680 |
Loans receivable more than 90 days and accruing | 0 | 0 |
Residential first-lien mortgage [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 118 | 131 |
Current | 41,715 | 48,213 |
Total loans receivable | 43,125 | 48,638 |
Loans receivable more than 90 days and accruing | 0 | 0 |
Home equity/consumer [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Current | 7,260 | 7,685 |
Total loans receivable | 7,260 | 7,685 |
Loans receivable more than 90 days and accruing | 0 | 0 |
PPP Phase I & II [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Current | 2,030 | 77,750 |
Total loans receivable | 2,469 | 79,740 |
Loans receivable more than 90 days and accruing | 184 | 151 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 1,547 | 1,037 |
30 to 59 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 27 |
30 to 59 Days Past Due [Member] | Commercial and industrial [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
30 to 59 Days Past Due [Member] | Construction [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
30 to 59 Days Past Due [Member] | Residential first-lien mortgage [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 1,292 | 425 |
30 to 59 Days Past Due [Member] | Home equity/consumer [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
30 to 59 Days Past Due [Member] | PPP Phase I & II [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 255 | 585 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 6,193 | 1,254 |
60 to 89 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 6,193 | 0 |
60 to 89 Days Past Due [Member] | Commercial and industrial [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
60 to 89 Days Past Due [Member] | Construction [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
60 to 89 Days Past Due [Member] | Residential first-lien mortgage [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
60 to 89 Days Past Due [Member] | Home equity/consumer [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
60 to 89 Days Past Due [Member] | PPP Phase I & II [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 1,254 |
Greater than 90 Days [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 450 | 1,195 |
Greater than 90 Days [Member] | Commercial real estate [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 766 |
Greater than 90 Days [Member] | Commercial and industrial [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
Greater than 90 Days [Member] | Construction [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 148 | 278 |
Greater than 90 Days [Member] | Residential first-lien mortgage [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 118 | 0 |
Greater than 90 Days [Member] | Home equity/consumer [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
Greater than 90 Days [Member] | PPP Phase I & II [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 184 | 151 |
Past Due [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 8,190 | 3,486 |
Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 6,193 | 793 |
Past Due [Member] | Commercial and industrial [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
Past Due [Member] | Construction [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 148 | 278 |
Past Due [Member] | Residential first-lien mortgage [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 1,410 | 425 |
Past Due [Member] | Home equity/consumer [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | 0 | 0 |
Past Due [Member] | PPP Phase I & II [Member] | ||
Financing Receivable Performance and Credit Quality Indicators [Line Items] | ||
Total | $ 439 | $ 1,990 |
Loans Receivable - Summary of A
Loans Receivable - Summary of Aggregate Pass and Classified Rating of Segments of Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 1,372,824 | $ 1,340,448 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,362,973 | 1,322,597 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,392 | 4,438 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,459 | 13,413 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 873,573 | 771,028 |
Commercial real estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 864,497 | 754,192 |
Commercial real estate [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,883 | 3,832 |
Commercial real estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,193 | 13,004 |
Commercial real estate [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial and industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 28,859 | 29,677 |
Commercial and industrial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 28,350 | 29,071 |
Commercial and industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 509 | 606 |
Commercial and industrial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial and industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 417,538 | 403,680 |
Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 417,390 | 403,402 |
Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Construction [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 148 | 278 |
Construction [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Residential first-lien mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 43,125 | 48,638 |
Residential first-lien mortgage [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 43,007 | 48,507 |
Residential first-lien mortgage [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Residential first-lien mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 118 | 131 |
Residential first-lien mortgage [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Home equity/consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7,260 | 7,685 |
Home equity/consumer [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7,260 | 7,685 |
Home equity/consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Home equity/consumer [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Home equity/consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
PPP Phase I & II [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,469 | 79,740 |
PPP Phase I & II [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,469 | 79,740 |
PPP Phase I & II [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
PPP Phase I & II [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
PPP Phase I & II [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans Receivable - Summary of_2
Loans Receivable - Summary of Allowance for Loan Losses On Loans Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for loan losses: | ||
Beginning balance | $ 16,620 | $ 16,027 |
Provision (credit) | 400 | 3,625 |
Charge-offs | (857) | (3,176) |
Recoveries | 298 | 144 |
Total | 16,461 | 16,620 |
Individually evaluated for impairment | 118 | 196 |
Collectively evaluated for impairment | 16,343 | 16,424 |
Loans: | ||
Individually evaluated for impairment | 12,377 | 13,687 |
Collectively evaluated for impairment | 1,360,447 | 1,326,761 |
Ending balance | 1,372,824 | 1,340,448 |
Commercial real estate [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 7,458 | 9,635 |
Provision (credit) | 1,655 | (102) |
Charge-offs | (757) | (2,116) |
Recoveries | 298 | 41 |
Total | 8,654 | 7,458 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 8,654 | 7,458 |
Loans: | ||
Individually evaluated for impairment | 12,030 | 13,155 |
Collectively evaluated for impairment | 861,543 | 757,873 |
Ending balance | 873,573 | 771,028 |
Commercial and industrial [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 713 | 1,015 |
Provision (credit) | (442) | 655 |
Charge-offs | 0 | (1,060) |
Recoveries | 0 | 103 |
Total | 271 | 713 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 271 | 713 |
Loans: | ||
Individually evaluated for impairment | 10 | 15 |
Collectively evaluated for impairment | 28,849 | 29,662 |
Ending balance | 28,859 | 29,677 |
Construction [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 7,228 | 4,069 |
Provision (credit) | (839) | 3,159 |
Charge-offs | (100) | 0 |
Recoveries | 0 | 0 |
Total | 6,289 | 7,228 |
Individually evaluated for impairment | 118 | 196 |
Collectively evaluated for impairment | 6,171 | 7,032 |
Loans: | ||
Individually evaluated for impairment | 148 | 278 |
Collectively evaluated for impairment | 417,390 | 403,402 |
Ending balance | 417,538 | 403,680 |
Residential first-lien mortgage [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 267 | 324 |
Provision (credit) | (31) | (57) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Total | 236 | 267 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 236 | 267 |
Loans: | ||
Individually evaluated for impairment | 118 | 131 |
Collectively evaluated for impairment | 43,007 | 48,507 |
Ending balance | 43,125 | 48,638 |
Home equity/consumer [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 48 | 61 |
Provision (credit) | (3) | (13) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Total | 45 | 48 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 45 | 48 |
Loans: | ||
Individually evaluated for impairment | 71 | 108 |
Collectively evaluated for impairment | 7,189 | 7,577 |
Ending balance | 7,260 | 7,685 |
PPP [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 0 | 0 |
Provision (credit) | 0 | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Total | 0 | 0 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2,469 | 79,740 |
Ending balance | 2,469 | 79,740 |
Unallocated [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 906 | 923 |
Provision (credit) | 60 | (17) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Total | 966 | 906 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 966 | 906 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Loans Receivable - Summary of_3
Loans Receivable - Summary of Loans to Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | ||
Beginning balance | $ 5,639 | $ 6,079 |
New loans | 0 | 515 |
Repayments | (778) | (955) |
Ending balance | $ 4,861 | $ 5,639 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Components of Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total before accumulated depreciation and amortization | $ 17,179 | $ 17,849 |
Accumulated depreciation and amortization | (5,457) | (5,251) |
Total | 11,722 | 12,598 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total before accumulated depreciation and amortization | 1,468 | 1,468 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total before accumulated depreciation and amortization | $ 3,946 | 3,647 |
Estimated useful lives | 40 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total before accumulated depreciation and amortization | $ 8,347 | 8,742 |
Estimated useful lives description | Lessor of lease term or useful life | |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total before accumulated depreciation and amortization | $ 3,311 | 3,157 |
Furniture, fixtures and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Furniture, fixtures and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years | |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total before accumulated depreciation and amortization | $ 107 | $ 835 |
Deposits - Summary of Component
Deposits - Summary of Components of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposit Liability [Line Items] | ||
Demand, non-interest-bearing checking | $ 265,078 | $ 286,247 |
Demand, interest-bearing checking | 269,737 | 259,022 |
Savings | 190,686 | 225,579 |
Money market | 283,652 | 373,075 |
Time deposits, $250,000 and over | 83,410 | 33,741 |
Time deposits, other | 255,167 | 268,479 |
Total deposits | $ 1,347,730 | $ 1,446,143 |
Demand, non-interest-bearing checking percentage | 19.67% | 19.79% |
Demand, interest-bearing checking percentage | 20.01% | 17.91% |
Savings percentage | 14.15% | 15.60% |
Money market percentage | 21.05% | 25.80% |
Time deposits, $250,000 and over percentage | 6.19% | 2.33% |
Time deposits other percentage | 18.93% | 18.57% |
Total deposits percentage | 100% | 100% |
Deposits - Summary of Maturitie
Deposits - Summary of Maturities of Certificates of Deposit (Detail) - Certificates of Deposit [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Deposit Liability [Line Items] | |
2023 | $ 158,659 |
2024 | 120,028 |
2025 | 36,246 |
2026 | 21,786 |
2027 and thereafter | 1,859 |
Total | $ 338,578 |
Deposits - Additional informati
Deposits - Additional information (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deposit Liability [Line Items] | ||
Money market accounts | $ 11,600,000 | $ 23,700,000 |
Brokers deposit liabilities | 107,400,000 | 108,900,000 |
Related party deposits | 3,700,000 | 4,600,000 |
Deposit overdrafts | $ 81,000 | $ 63,000 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Short-Term Debt [Line Items] | ||
Borrowings outstanding | $ 10,000,000 | $ 0 |
Borrowings rate | 4.61% | |
Atlantic Community Bancshares Inc [Member] | ||
Short-Term Debt [Line Items] | ||
Borrowings outstanding | $ 0 | |
Borrowing capacity | 10,000,000 | |
FHLB-NY [Member] | ||
Short-Term Debt [Line Items] | ||
Maximum borrowing capacity | 255,000,000 | |
Borrowing capacity | $ 165,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Off-Balance Sheet Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Line Items] | ||
Total | $ 189,511 | $ 286,031 |
Performance and standby letters of credit [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Total | 1,420 | 486 |
Undisbursed loans-in-process (Construction) [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Total | 140,538 | 229,155 |
Commitments to fund loans [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Total | 41,753 | 51,817 |
Unfunded commitments under lines of credit [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Total | $ 5,800 | $ 4,573 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Expense Benefit (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense: | |||
Federal | $ 4,621,000 | $ 4,608,000 | |
State | 2,411,000 | 1,819,000 | |
Total current | 7,032,000 | 6,427,000 | |
Deferred income tax benefit: | |||
Federal | 876,000 | 417,000 | |
State | (349,000) | (141,000) | |
Total deferred | 527,000 | 276,000 | |
Income tax expense | $ 7,559,000 | $ 6,703,000 | $ 63,000 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 4,638 | $ 4,332 |
Net operating loss carry-forward | 374 | 421 |
Organization costs | 5 | |
Branch acquisition | 26 | 27 |
Other | 681 | 400 |
Core deposit intangible | 397 | 293 |
Deferred PPP loans | 28 | 726 |
Lease liability | 4,726 | 4,446 |
SERP liabiltiy | 202 | 89 |
Unrealized loss on securities | 3,322 | |
Total deferred tax assets | 14,394 | 10,739 |
Deferred tax liabilities: | ||
Depreciation | (1,341) | (993) |
Deferred loan costs | (335) | (242) |
ROU | (4,515) | (4,277) |
Acquisition accounting adjustments | (8) | (7) |
Goodwill amortization | (596) | (397) |
Section 481a Adj. | (18) | |
Unrealized gain on securities | (291) | |
Total deferred tax liabilities | (6,795) | (6,225) |
Net deferred tax asset | $ 7,599 | $ 4,514 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax expense at statutory | $ 7,151,000 | $ 6,130,000 | |
Federal income tax expense at statutory rate | 21% | 21% | |
Increase (reduction) in taxes resulting from: | |||
State income taxes, net of federal benefit | $ 1,629,000 | $ 1,326,000 | |
Tax-exempt income, net | (772,000) | (790,000) | |
Incentive stock options | (146,000) | 17,000 | |
Non-deductible expenses | 17,000 | 8,000 | |
IRS Refund | (516,000) | ||
Other | 196,000 | 12,000 | |
Income tax expense | $ 7,559,000 | $ 6,703,000 | $ 63,000 |
State income taxes, net of federal benefit rate | 4.80% | 4.50% | |
Tax-exempt income, net rate | (2.30%) | (2.70%) | |
Incentive stock options rate | (0.40%) | 0.10% | |
Non-deductible expenses rate | 0.10% | 0% | |
IRS Refund rate | (1.5) | ||
Other rate | 0.50% | 0% | |
Total income taxes applicable to pre-tax income | 22.20% | 22.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Sep. 29, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | ||||
Federal net operating loss carry-forwards | $ 1,800,000 | $ 2,000,000 | ||
Operating loss carryforwards, limitations | 222,000 | |||
Additional income tax expense | 7,559,000 | 6,703,000 | $ 63,000 | |
A.4721 [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Threshold taxable income beyond which surtax is applicable | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Surtax percentage on corporation business tax | 2.50% | 1.50% | 1.50% | 1.50% |
A.4721 [Member] | Maximum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Surtax percentage on corporation business tax | 2.50% | 2.50% | 2.50% | |
A.4721 [Member] | Minimum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Surtax percentage on corporation business tax | 1.50% | 1.50% | 1.50% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Weighted-average remaining lease terms for operating leases | 11 years 3 months 18 days | |
Weighted-average discount rate | 2.54% | |
Rental expense | $ 2,700 | $ 2,940 |
Base rental payments | $ 305,000 | $ 305,000 |
Leases - Summary of Operating L
Leases - Summary of Operating Leases of Lessee (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Gross carrying amount | $ 17,919 | $ 18,408 |
Increased asset from new lease | 1,504 | |
Accumulated amortization | (1,893) | (1,998) |
Net book value | 16,026 | 17,914 |
Lease liabilities | $ 16,772 | $ 18,561 |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease cost: | ||
Operating lease | $ 2,700 | $ 2,940 |
Short-term lease cost | 94 | 97 |
Total lease cost | 2,794 | 3,037 |
Cash paid for amounts included in the measurement of lease liabilities: | $ 2,309 | $ 2,488 |
Leases - Summary of Lessee Oper
Leases - Summary of Lessee Operating Lease Liability Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2023 | $ 2,298 | |
2024 | 2,065 | |
2025 | 2,048 | |
2026 | 1,854 | |
2027 | 1,559 | |
Thereafter | 10,371 | |
Total future operating lease payment | 20,195 | |
Amounts representing interest | (3,423) | |
Present value of net future lease payments | $ 16,772 | $ 18,561 |
Directors Fee Plan - Additional
Directors Fee Plan - Additional Information (Detail) - Directors Fee Plan [Member] - USD ($) | 12 Months Ended | ||
Apr. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Directors Fee Plan [Line Items] | |||
Deferred compensation expense | $ 280,000,000 | ||
Percentage of annual compensation | 100% | ||
Bank issued share, shares | 4,019 | ||
Bank issued share, value | $ 120,000,000 | ||
Maximum [Member] | |||
Directors Fee Plan [Line Items] | |||
Deferred compensation percentage | 100% | ||
Minimum [Member] | |||
Directors Fee Plan [Line Items] | |||
Deferred compensation percentage | 0% |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangible - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 17, 2019 | |
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Branch deposits | $ 177,900 | |||
Branch deposits net cash | $ 159,900 | |||
Business acquisition, transaction costs | $ 627 | |||
Goodwill | 8,853 | $ 8,853 | $ 8,853 | |
Core deposit intangible assets | 1,825 | $ 2,393 | $ 3,036 | |
Goodwill tax deductible | $ 8,900 | |||
Goodwill amortization period | 15 years | |||
Core Deposits [Member] | ||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Core deposit intangible assets | $ 4,200 | |||
Intangible assets amortized year | 10 years |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangible - Summary of Carrying Amount of Goodwill and Core Deposit Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning balance | $ 8,853 | $ 8,853 |
Core Deposit Intangible, Beginning balance | 2,393 | 3,036 |
Amortization expense | 568 | 643 |
Goodwill, Ending balance | 8,853 | 8,853 |
Core Deposit Intangible, Ending balance | $ 1,825 | $ 2,393 |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangible - Summary of Future Fiscal Periods Amortization for the Core Deposit Intangible (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2023 | $ 492 | ||
2024 | 415 | ||
2025 | 338 | ||
2026 | 261 | ||
2027 | 183 | ||
Thereafter | 136 | ||
Total | $ 1,825 | $ 2,393 | $ 3,036 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosure - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 83,402 | $ 101,158 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 81,341 | 100,356 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 2,061 | 802 |
Fair Value, Recurring [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 83,402 | 101,158 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 81,341 | 100,356 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 2,061 | 802 |
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 34,915 | 44,650 |
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 34,915 | 44,650 |
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | ||
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 34,915 | 44,650 |
US Government Agencies Debt Securities [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 5,085 | 6,238 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 5,085 | 6,238 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | ||
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 5,085 | 6,238 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 41,341 | 49,468 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 41,341 | 49,468 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 41,341 | 49,468 |
Mortgage-Backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 2,061 | 802 |
Mortgage-Backed Securities, Issued by Private Enterprises [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 2,061 | 802 |
Mortgage-Backed Securities, Issued by Private Enterprises [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | ||
Mortgage-Backed Securities, Issued by Private Enterprises [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | |
Mortgage-Backed Securities, Issued by Private Enterprises [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 2,061 | $ 802 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosure - Summary of Financial Assets Measured at Fair Value on NonRecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 0 | $ 226 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,347,137 | 1,384,470 |
Fair Value, Nonrecurring [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Other real estate owned | 226 | |
Assets, Fair Value Disclosure | 30 | 308 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Other real estate owned | ||
Assets, Fair Value Disclosure | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Other real estate owned | ||
Assets, Fair Value Disclosure | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Other real estate owned | 226 | |
Assets, Fair Value Disclosure | 30 | 308 |
Impaired Loans [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Impaired loans | 30 | 82 |
Impaired Loans [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Impaired Loans [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Impaired Loans [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 30 | $ 82 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosure - Summary of Quantitative Information with Regards to Level 3 Fair Value Measurements (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable, Fair Value Disclosure | $ 1,347,137 | $ 1,384,470 |
Measurement Input Discount Rate Adjustment [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable Measurement Input | 0 | |
Measurement Input Discount Rate Adjustment [Member] | Impaired Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable Measurement Input | 6 | 6 |
Measurement Input Discount Rate Adjustment [Member] | Valuation Technique Collateral [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable, Fair Value Disclosure | $ 226 | |
Loans Receivable Measurement Input | 0 | |
Measurement Input Discount Rate Adjustment [Member] | Valuation Technique Collateral [Member] | Weighted Average [Member] | Impaired Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable, Fair Value Disclosure | $ 30 | $ 82 |
Loans Receivable Measurement Input | (6) | (6) |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosure - Summary of Carrying Amounts and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Assets: (Carrying Amount) | ||
Cash and cash equivalents | $ 53,351 | $ 158,716 |
Securities AFS | 83,402 | 101,158 |
Securities HTM | 201 | 208 |
Loans receivable, net | 1,353,907 | 1,318,543 |
Restricted bank stock | 1,742 | 1,345 |
Accrued interest receivable | 4,756 | 4,218 |
Financial Liabilities (Carrying Amount) | ||
Deposits | 1,347,730 | 1,446,143 |
Borrowings | 10,000 | 0 |
Accrued interest payable | 1,027 | 1,044 |
Financial Assets: (Fair Value) | ||
Securities AFS | 83,402 | 101,158 |
Securities HTM | 200 | 225 |
Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member] | ||
Financial Assets: (Fair Value) | ||
Cash and cash equivalents | 53,351 | 158,716 |
Securities AFS | 83,402 | 101,158 |
Securities HTM | 200 | 225 |
Loans receivable, net | 1,347,137 | 1,384,470 |
Restricted bank stock | 1,742 | 1,345 |
Accrued interest receivable | 4,756 | 4,218 |
Financial Liabilities (Fair Value) | ||
Deposits | 1,225,087 | 1,438,912 |
Borrowings | 10,000 | |
Accrued interest payable | 1,027 | 1,044 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: (Fair Value) | ||
Cash and cash equivalents | 53,351 | 158,716 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: (Fair Value) | ||
Securities AFS | 81,341 | 100,356 |
Securities HTM | 200 | 225 |
Restricted bank stock | 1,742 | 1,345 |
Accrued interest receivable | 4,756 | 4,218 |
Financial Liabilities (Fair Value) | ||
Deposits | 1,225,087 | 1,438,912 |
Borrowings | 10,000 | |
Accrued interest payable | 1,027 | 1,044 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: (Fair Value) | ||
Securities AFS | 2,061 | 802 |
Loans receivable, net | $ 1,347,137 | $ 1,384,470 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | 63 Months Ended | ||||
Apr. 30, 2023 | Dec. 31, 2013 | Dec. 31, 2007 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 685,000 | $ 685,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 26 days | |||||
Salary And Employee Benefit Expenses [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Payment Arrangement, Expense | $ 491,000 | $ 335,000 | ||||
Share-Based Payment Arrangement, Expense, Tax Benefit | 131,000 | 70,000 | ||||
Other Expense [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Payment Arrangement, Expense | 162,000 | 70,000 | ||||
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 37,000 | $ 15,000 | ||||
The Two Thousand And Seven Stock Option Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years | |||||
The Two Thousand And Twelve Equity Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 100,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 600,000 | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 54,738 | 54,738 | ||||
The Bank of Princeton Two Thousand And Eighteen Equity Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 263,489 | 263,489 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 23,732 | 19,830 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 30.12 | $ 21.43 | ||||
Restricted Stock Units (RSUs) [Member] | Salary And Employee Benefit Expenses [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Payment Arrangement, Expense | $ 447,000 | $ 214,000 | ||||
Restricted Stock Units (RSUs) [Member] | One Year Vesting [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 1 year | 1 year | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 4,550 | 3,500 | ||||
Restricted Stock Units (RSUs) [Member] | Three Year Vesting [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 3 years | 3 years | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 19,182 | 16,330 | ||||
Incentive Stock Options [Member] | The Two Thousand And Seven Stock Option Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 300,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 0 | |||||
Non Qualified Stock Options [Member] | The Two Thousand And Seven Stock Option Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 100,000 | |||||
Subsequent Event [Member] | Incentive Stock Options [Member] | The Two Thousand And Twelve Equity Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Of Status Of Bank Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Balance at January 1 | shares | 407,650 | 431,980 |
Granted | shares | 0 | 0 |
Exercised | shares | (76,900) | (22,480) |
Forfeited | shares | 0 | (1,350) |
Expired | shares | (100) | (500) |
Balance at December 31 | shares | 330,650 | 407,650 |
Exercisable at December 31 | shares | 330,650 | 395,125 |
Balance at January 1 | $ / shares | $ 20.08 | $ 19.73 |
Granted | $ / shares | 0 | 0 |
Exercised | $ / shares | 14.18 | 13.22 |
Forfeited | $ / shares | 0 | 25.49 |
Expired | $ / shares | 13.75 | 12 |
Balance at December 31 | $ / shares | 21.45 | 20.08 |
Exercisable at December 31 | $ / shares | $ 21.45 | $ 19.68 |
Balance at December 31 | 2 years 10 months 13 days | 3 years 3 months 10 days |
Exercisable at December 31 | 2 years 10 months 13 days | 3 years 2 months 8 days |
Balance at December 31 | $ | $ 3,463,695 | $ 4,069,054 |
Exercisable at December 31 | $ | $ 3,463,695 | $ 4,069,054 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | ||
Banking regulation, common equity tier 1 risk-based capital ratio, capital adequacy, minimum | 0.045 | |
Banking regulation, tier 1 leverage capital ratio, capital adequacy, minimum | 0.03 | |
Banking regulation, leverage buffer, minimum | 0.04 | |
Banking regulation, tier 1 risk-based capital ratio, capital adequacy, minimum | 0.06 | |
Banking regulation, tier 1 risk-based capital ratio, well capitalized, minimum | 0.08 | 0.08 |
Banking regulation, total risk-based capital ratio, capital adequacy, minimum | 0.08 | |
Banking regulation, total risk-based capital ratio, well capitalized, minimum | 0.10 | 0.10 |
Banking regulation, capital conservation buffer, capital conserved, minimum | 0.025 |
Regulatory Matters - Summary Of
Regulatory Matters - Summary Of Actual Capital Amounts And Ratios (Detail) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual Total capital (to risk-weighted assets) | $ 233,657 | $ 221,113 |
Actual Total capital (to risk-weighted assets) Ratio | 0.15309 | 0.15085 |
Actual Tier 1 capital (to risk-weighted assets) | $ 217,196 | $ 204,493 |
Actual Tier 1 capital (to risk-weighted assets) Ratio | 0.14231 | 0.13951 |
Actual Common equity tier 1 capital (to-risk weighted assets) | $ 217,196 | $ 204,493 |
Actual Common equity tier 1 capital (to-risk weighted assets) Ratio | 0.14231 | 0.13951 |
Actual Tier 1 leverage capital (to average assets) | $ 217,196 | $ 204,493 |
Actual Tier 1 leverage capital (to average assets) Ratio | 0.13474 | 0.12062 |
Buffer requirement Total capital (to risk-weighted assets) | $ 160,256 | $ 153,906 |
Buffer requirement Total capital (to risk-weighted assets) Ratio | 0.105 | 0.105 |
Buffer requirement Tier 1 capital (to risk-weighted assets) | $ 129,731 | $ 124,591 |
Buffer requirement Tier 1 capital (to risk-weighted assets) Ratio | 0.085 | 0.085 |
Buffer requirement Common equity tier 1 capital (to-risk weighted assets) | $ 106,838 | $ 102,604 |
Buffer requirement Common equity tier 1 capital (to-risk weighted assets) Ratio | 0.07 | 0.07 |
Buffer requirement Tier 1 leverage capital (to average assets) | $ 104,775 | $ 110,193 |
Buffer requirement Tier 1 leverage capital (to average assets) Ratio | 0.065 | 0.065 |
Action provision Total capital (to risk-weighted assets) | $ 152,625 | $ 146,577 |
Action provision Total capital (to risk-weighted assets) Ratio | 0.10 | 0.10 |
Action provision Tier 1 capital (to risk-weighted assets) | $ 122,100 | $ 117,262 |
Action provision Tier 1 capital (to risk-weighted assets) Ratio | 0.08 | 0.08 |
Action privision Common equity tier 1 capital (to-risk weighted assets) | $ 99,206 | $ 95,275 |
Action provision Common equity tier 1 capital (to-risk weighted assets) Ratio | 0.065 | 0.065 |
Action provision Tier 1 leverage capital (to average assets) | $ 80,596 | $ 84,764 |
Actual provision Tier 1 leverage capital (to average assets) Ratio | 0.05 | 0.05 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] | Jan. 25, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividends payable, date of record | Feb. 10, 2023 |
Dividend Declared [Member] | |
Subsequent Event [Line Items] | |
Dividends payable, amount per share | $ 0.3 |
Dividend Paid [Member] | |
Subsequent Event [Line Items] | |
Dividends payable, date to be paid | Mar. 03, 2023 |