Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 30, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Registrant Name | ECB BANCORP, INC. | ||
Entity Central Index Key | 0001914605 | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 9,175,247 | ||
Entity Public Float | $ 110.1 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | ECBK | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 001-41456 | ||
Entity Tax Identification Number | 88-1502079 | ||
Entity Address, Address Line One | 419 Broadway | ||
Entity Address, City or Town | Everett | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02149 | ||
City Area Code | 617 | ||
Local Phone Number | 387-1110 | ||
Entity Incorporation, State or Country Code | MD | ||
Auditor Name | Baker Newman & Noyes LLC | ||
Auditor Location | Boston, Massachusetts | ||
Auditor Firm ID | 231 | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: None |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 3,123 | $ 7,326 |
Short-term investments | 58,927 | 45,649 |
Total cash and cash equivalents | 62,050 | 52,975 |
Interest-bearing time deposits | 300 | 0 |
Investments in available-for-sale securities (at fair value) | 5,001 | 5,010 |
Investments in held-to-maturity securities, at cost (fair values of $69,707 at December 31, 2022 and $65,556 at December 31, 2021) | 77,591 | 65,571 |
Federal Home Loan Bank stock, at cost | 7,293 | 1,087 |
Loans held-for-sale | 0 | 1,301 |
Loans, net of allowance for loan losses of $7,200 as of December 31, 2022 and $4,236 as of December 31, 2021 | 885,674 | 517,131 |
Premises and equipment, net | 3,698 | 3,784 |
Accrued interest receivable | 2,632 | 1,481 |
Deferred tax asset, net | 4,344 | 2,971 |
Bank-owned life insurance | 14,067 | 14,135 |
Other assets | 1,812 | 1,043 |
Total assets | 1,064,462 | 666,489 |
Deposits: | ||
Noninterest-bearing | 84,903 | 83,311 |
Interest-bearing | 633,246 | 488,443 |
Total deposits | 718,149 | 571,754 |
Federal Home Loan Bank advances | 174,000 | 9,000 |
Other liabilities | 9,583 | 8,462 |
Total liabilities | 901,732 | 589,216 |
Shareholders' Equity: | ||
Preferred Stock, par value $0.01; Authorized: 1,000,000 and 0 shares; Issued and outstanding: 0 shares; and 0 shares, respectively | ||
Common Stock, par value $0.01; Authorized: 30,000,000 and 0 shares; Issued and outstanding: 9,175,247 shares; and 0 shares, respectively | 92 | 0 |
Additional Paid in Capital | 89,286 | 0 |
Retained earnings | 80,076 | 77,356 |
Accumulated other comprehensive income (loss) | 249 | (83) |
Unallocated common shares held by the Employee Stock Ownership Plan | (6,973) | 0 |
Total shareholders' equity | 162,730 | 77,273 |
Total liabilities and shareholders' equity | $ 1,064,462 | $ 666,489 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Fair value of investments in held-to-maturity securities | $ 69,707 | $ 65,556 |
Allowance for loan losses | $ 7,200 | $ 4,236 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 30,000,000 | 0 |
Common Stock, Shares, Issued | 9,175,247 | 0 |
Common Stock, Shares, Outstanding | 9,175,247 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 26,946 | $ 21,319 |
Interest and dividends on securities | 1,488 | 1,012 |
Other interest income | 715 | 44 |
Total interest and dividend income | 29,149 | 22,375 |
Interest expense: | ||
Interest on deposits | 4,566 | 3,546 |
Interest on Federal Home Loan Bank advances | 948 | 135 |
Interest on Federal Funds purchased | 1 | |
Total interest expense | 5,515 | 3,681 |
Net interest and dividend income | 23,634 | 18,694 |
Provision for loan losses | 2,940 | 360 |
Net interest and dividend income after provision for loan losses | 20,694 | 18,334 |
Noninterest income: | ||
Customer service fees | 446 | 393 |
Income from bank-owned life insurance | 828 | 355 |
Net gain on sales of loans | 84 | 446 |
Other income | 43 | 28 |
Total noninterest income | 1,401 | 1,222 |
Noninterest expense: | ||
Salaries and employee benefits | 9,928 | 9,599 |
Director compensation | 429 | 430 |
Occupancy and equipment expense | 766 | 721 |
Data processing | 704 | 684 |
Computer software and licensing fees | 247 | 253 |
Advertising and promotions | 752 | 648 |
Professional fees | 846 | 482 |
Federal Deposit Insurance Corporation assessment | 225 | 156 |
Charitable contributions | 3,256 | 54 |
Other expense | 1,446 | 1,058 |
Total noninterest expense | 18,599 | 14,085 |
Income before income tax expense | 3,496 | 5,471 |
Income tax expense | 776 | 1,429 |
Net (loss) income | $ 2,720 | $ 4,042 |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding, basic | 8,456,218 | 0 |
Weighted average shares outstanding, diluted | 8,456,218 | 0 |
Basic earnings per share | $ 0.32 | |
Diluted earnings per share | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 2,720 | $ 4,042 |
Other comprehensive (loss) income , net of tax: | ||
Net change in unrealized holding gain on securities available-for-sale | (6) | (18) |
Net change in unrecognized postretirement benefit costs pertaining to supplemental executive retirement plan | 202 | 95 |
Net change in unrecognized postretirement benefit costs pertaining to director fee continuation plan | 136 | 120 |
Other comprehensive income, net of tax | 332 | 197 |
Comprehensive income | $ 3,052 | $ 4,239 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unallocated Common Stock Held by ESOP |
Beginning balance at Dec. 31, 2020 | $ 73,034 | $ 73,314 | $ (280) | |||
Net income | 4,042 | 4,042 | ||||
Other comprehensive income, net of tax | 197 | 197 | ||||
Ending balance at Dec. 31, 2021 | $ 77,273 | 77,356 | (83) | |||
Ending Balance, shares at Dec. 31, 2021 | 0 | |||||
Net income | $ 2,720 | 2,720 | ||||
Other comprehensive income, net of tax | 332 | 332 | ||||
Proceeds of stock offering and issuance of common shares | 86,586 | $ 89 | $ 86,497 | |||
Proceeds of stock offering and issuance of common shares, shares | 8,915,247 | |||||
Issuance of common shares donated to the Everett Co-operative Bank Charitable Foundation | 2,600 | $ 3 | 2,597 | |||
Issuance of common shares donated to the Everett Co-operative Bank Charitable Foundation, shares | 260,000 | |||||
Purchase of common shares by the ESOP | $ (7,340) | $ (7,340) | ||||
Purchase of common shares by the ESOP, Shares | 734,020 | |||||
ESOP shares allocated | $ 559 | 192 | 367 | |||
Ending balance at Dec. 31, 2022 | $ 162,730 | $ 92 | $ 89,286 | $ 80,076 | $ 249 | $ (6,973) |
Ending Balance, shares at Dec. 31, 2022 | 9,175,247 | 9,175,247 |
Statements of Changes in Shar_2
Statements of Changes in Shareholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2022 USD ($) shares | |
Statement Of Stockholders Equity [Abstract] | |
Stock offering costs | $ | $ 2,567,000 |
Purchase of common shares by the ESOP, Shares | 734,020 |
ESOP shares allocated, shares | 36,701 |
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 | $ 2,720 | $ 4,042 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of securities, net | 182 | 338 |
Provision for loan losses | 2,940 | 360 |
Change in deferred loan costs/fees | (175) | 175 |
Gain on sales of loans, net | (84) | (446) |
Proceeds from sales of loans | 5,824 | 24,566 |
Loans originated for sale, net | (4,439) | (24,980) |
Depreciation and amortization expense | 302 | 300 |
(Increase) decrease in accrued interest receivable | (1,151) | 339 |
Increase in bank-owned life insurance | (398) | (355) |
Gain from life insurance policy death benefit | (430) | 0 |
Deferred income tax benefit | (1,502) | (1,117) |
Accrual for pension plan withdrawal liability | (2,001) | 2,001 |
Issuance of common shares donated to the Everett Co-operative Bank Charitable Foundation | 2,600 | 0 |
ESOP expense | 559 | 0 |
Increase in other assets | (769) | (364) |
Increase in accrued interest payable | 687 | 0 |
Increase in other liabilities | 2,905 | 1,590 |
Net cash provided by operating activities | 7,770 | 6,449 |
Cash flows from investing activities: | ||
Purchases of held-to-maturity securities | (22,628) | (26,903) |
Proceeds from paydowns and maturities of held-to-maturity securities | 10,426 | 13,965 |
Premiums paid on bank-owned life insurance | 0 | (5,000) |
Proceeds from life insurance policy death benefit | 896 | 0 |
Purchase of interest-bearing time deposits | (300) | 0 |
Purchase of Federal Home Loan Bank Stock | (8,025) | 0 |
Redemption of Federal Home Loan Bank stock | 1,819 | 331 |
Loan originations and principal collections, net | (354,493) | (50,507) |
Purchase of loans | (16,841) | 0 |
Recoveries of loans previously charged off | 26 | 0 |
Capital expenditures | (216) | (104) |
Net cash used in investing activities | (389,336) | (68,218) |
Cash flows from financing activities: | ||
Net increase in demand deposits, NOW and savings accounts | 53,368 | 70,693 |
Net increase in time deposits | 93,027 | 9,640 |
Proceeds from long-term Federal Home Loan Bank advances | 110,000 | 4,000 |
Repayments of long-term Federal Home Loan Bank advances | (20,000) | (13,000) |
Net change in short-term Federal Home Loan Bank advances | 75,000 | 0 |
Net proceeds from issuance of common stock | 79,246 | 0 |
Net cash provided by financing activities | 390,641 | 71,333 |
Net increase in cash and cash equivalents | 9,075 | 9,564 |
Cash and cash equivalents at beginning of year | 52,975 | 43,411 |
Cash and cash equivalents at end of year | 62,050 | 52,975 |
Supplemental disclosures: | ||
Interest paid | 4,828 | 3,655 |
Income taxes paid | $ 1,982 | $ 2,412 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | NOTE 1 - NATURE OF OPERATIONS CONVERSION On March 9, 2022, the Board of Directors of Everett Co-operative Bank ("the Bank") adopted a Plan of Conversion under which the Bank would convert from a Massachusetts mutual co-operative bank into a Massachusetts stock co-operative bank and become the wholly owned subsidiary of a newly chartered stock holding company, ECB Bancorp, Inc. (the “Holding Company”). The Plan of Conversion received all of the approvals of various regulatory agencies and the Plan of Conversion was approved by the required vote of more than two-thirds of the Bank’s depositors present and voting at a special meeting of depositors held on May 5, 2022. The Bank’s mutual to stock conversion and the Company’s stock offering were consummated on July 27, 2022. In the offering, the Company sold 8,915,247 shares of common stock at a per share price of $ 10.00 for gross offering proceeds of $ 89.2 million. Additionally, the Company contributed 260,000 shares to the Everett Co-operative Bank Charitable Foundation (the “Foundation”). The offering costs of issuing the capital stock were deferred and deducted from the proceeds of the offering. Total offering costs that were deducted from the proceeds amounted to $ 2,567,000 . At December 31, 2022 and December 31, 2021 , the Bank had incurred approximately $ 0 and $ 76,000 , respectively, in offering costs that were deferred and capitalized. The Bank has established a Liquidation Account in an amount equal to the net worth of the Bank as of the date of the latest consolidated balance sheet contained in the final prospectus distributed in connection with the conversion and stock offering. The function of the Liquidation Account is to establish a priority on liquidation of the Bank. The Liquidation Account will be maintained by the Bank for the benefit of the eligible account holders who continue to maintain deposit accounts with the Bank following the conversion. Each eligible account holder shall, with respect to each deposit account, hold a related inchoate interest in a portion of the Liquidation Account balance, in relation to each deposit account balance at the eligibility record date, or to such balance as it may be subsequently reduced, as hereinafter provided. The initial Liquidation Account balance shall not be increased, and shall be subject to downward adjustment to the extent of any downward adjustment of any subaccount balance of any eligible account holder in accordance with the regulations of the Division of Banks of the Commonwealth of Massachusetts. In the unlikely event of a complete liquidation of the Bank (and only in such event), following all liquidation payments to creditors (including those to depositors to the extent of their deposit accounts) each eligible account holder shall be entitled to receive a liquidating distribution from the Liquidation Account, in the amount of the then-adjusted subaccount balances for his or her deposit accounts then held, before any liquidating distribution may be made to any holder of the Bank’s capital stock. The Bank may not declare or pay a cash dividend on its outstanding capital stock if the effect thereof would cause its regulatory capital to be reduced below the amount required to maintain the Liquidation Account and under FDIC rules and regulations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING POLICIES The accounting and reporting policies of ECB Bancorp, Inc. (the "Company") and its subsidiary conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and predominant practices within the banking industry. The consolidated financial statements are prepared using the accrual basis of accounting. The significant accounting policies are summarized below to assist the reader in better understanding the consolidated financial statements and other data contained herein. In the opinion of management, all adjustments necessary for a fair presentation are reflected in these consolidated financial statements, and all adjustments made are of a normal recurring nature. Principles of Consolidation The consolidated financial statements of the Company include the balances and results of operations of ECB Bancorp, Inc. and its wholly-owned subsidiary Everett Co-operative Bank ("the Bank") as well as First Everett Securities Corporation, a wholly-owned subsidiary of the Bank. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses. Reclassification Certain previously reported amounts have been reclassified to conform to the current period’s presentation. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, cash items, due from banks and short-term investments. The Company has historically been required to maintain certain vault cash and/or deposits with the Federal Reserve Bank of Boston. However, based on the COVID-19 pandemic the Federal Reserve has reduced the reserve requirement ratio to zero percent across all deposit tiers as of March 26, 2020. Securities The Company classifies securities at the time of purchase into one of four categories: held-to-maturity, available-for-sale, trading, or equity. These security classifications may be modified after acquisition only under certain specified conditions. In general, debt securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other debt securities must be classified as available-for-sale. • Held-to-maturity securities are measured at amortized cost on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, or in a separate component of shareholders' equity; they are merely disclosed in the notes to the consolidated financial statements. • Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings but are reported in other comprehensive income, net of related tax. • Trading and equity securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading and equity securities are included in earnings. The Company had no securities classified as trading or equity securities at December 31, 2022 and 2021. Purchase premiums and discounts are recognized in interest income, using the interest method, to arrive at periodic interest income at a constant effective yield, thereby reflecting the securities' market yield. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Such gains and losses are recognized within non-interest income or non-interest expense within the consolidated statements of income. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive income (loss). Federal Home Loan Bank Stock The Bank, as a member of the Federal Home Loan Bank of Boston (FHLB), is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. The Company reviews its investment in capital stock of the FHLB for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are recognized through a valuation allowance and recorded in noninterest expense. Fair value is based on committed secondary market prices. No losses have been recorded during 2022 or 2021. Loans Loans receivable that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest on loans is recognized on a simple interest basis. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is amortized as an adjustment to the related loan’s yield. The Company is amortizing these amounts over the contractual lives of the related loans. Residential real estate loans are generally placed on nonaccrual when reaching 90 days past due or in process of foreclosure. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on nonaccrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on nonaccrual status. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against current income. A loan can be returned to accrual status when collectability of principal and interest is reasonably assured and the loan has performed for a period of time, generally six months. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) established the Paycheck Protection Program (PPP), a stimulus program which grants SBA-guaranteed, forgivable loans to businesses to encourage employee retention by subsidizing payroll and certain other costs during the pandemic. These loans are originated and funded by financial institutions and are an extension of the Small Business Administration’s (SBA) 7(a) loan program. There were no PPP loans originated during 2022. The Bank originated 70 PPP loans totaling $ 6,049,000 and recorded net deferred fees of $ 237,000 during the year ended December 31, 2021. Origination fees, net of costs, are being accreted into interest income over the contractual life of each loan. Included in the loan portfolio at December 31, 2022 and December 31, 2021 were 2 PPP loans amounting to $ 121,000 and 48 PPP loans amounting to $ 3,404,000 , respectively, which are classified within commercial loans. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. General Component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, multi-family real estate, commercial real estate, home equity lines of credit and loans, construction, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Bank’s policies or methodology pertaining to the general component of the allowance for loan losses during 2022 or 2021. Although not separately segmented, loans subject to COVID-19 modifications and PPP loans are monitored within their respective segments for purposes of identifying any potential problem loans and to ensure that their respective risks are captured in the allowance model. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate and home equity lines of credit and loans : The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent without requiring private mortgage insurance. Loans in these segments are collateralized primarily by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in these segments. Commercial real estate and multi-family residential : Loans in these segments are primarily income-producing properties throughout Massachusetts. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates which, in turn, will have an effect on the credit quality in these segments. Management periodically obtains rent rolls and continually monitors the cash flows of these loans. Construction : The loans in this segment are residential and commercial construction-to-permanent loans collateralized by owner-occupied residential and commercial real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial : Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Also included within this segment are PPP loans. These loans are 100% guaranteed by the SBA and are subject to forgiveness if the borrower complies with the employee retention and other requirements. Although these loans are guaranteed, management has determined that there is some level of risk inherent in this portfolio. Consumer : Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated Component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, multi-family, commercial real estate, construction and residential loans and home equity lines of credit and loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring (TDR) agreement. 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. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are initially classified as impaired. Unallocated Component An unallocated component 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 allocated and general reserves in the portfolio. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than their carrying amount. In that event, the Company records a loss equal to the difference between the carrying amount and the fair value of the asset based on quoted market prices, if applicable, or a discounted cash flow analysis. Other Real Estate Owned and In-Substance Foreclosures Other real estate owned includes properties acquired through foreclosure and properties classified as in-substance repossession. These properties are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure or transfer, establishing a new cost basis. Subsequent to foreclosure or transfer, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Any write-down from cost to estimated fair value required at the time of foreclosure or classification as in-substance foreclosure is charged to the allowance for loan losses. Expenses incurred in connection with maintaining these assets, subsequent write-downs and gains or losses recognized upon sale are included in other expense. The Company classifies commercial loans as in-substance repossessed or foreclosed if the Company receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. An in-substance repossession or foreclosure occurs, and the Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Advertising The Company directly expenses costs associated with advertising as they are incurred. Income Taxes Deferred tax assets and liabilities are recognized for the 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 income in the period that includes the enactment date. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of income tax expense. The Company has evaluated the positions taken on its tax returns filed and the potential impact on its tax status as of December 31, 2022. The Company has concluded no uncertain income tax positions exist at December 31, 2022. The Company is subject to U.S. federal, state and local income tax examinations by tax authorities for the 2019 through 2021 tax years. Risks and Uncertainties Most of the Company’s business activity is with customers located within the greater Boston area. The majority of the Company’s loan portfolio is comprised of loans collateralized by real estate located in the greater Boston area. The Company invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the consolidated balance sheet or statements of income. Ineffective liquidity management could adversely affect our financial results and condition. Effective liquidity management is essential for the operation of our business. We require sufficient liquidity to meet customer loan requests, customer deposit maturities/withdrawals, payments on our debt obligations as they come due, and other cash commitments under both normal operating conditions and other unpredictable circumstances causing industry or general financial market stress. Our access to funding sources in amounts adequate to finance our activities on terms that are acceptable to us could be impaired by factors that affect us specifically, or the financial services industry or economy generally. Factors that could detrimentally impact our access to liquidity sources include a downturn in the geographic markets in which our loans and operations are concentrated or difficult credit markets. Our access to deposits may also be affected by the liquidity needs of our depositors. In particular, a portion of our liabilities are checking accounts and other liquid deposits, which are payable on demand or upon several days’ notice, while by comparison, a substantial majority of our assets are loans, which cannot be called or sold in the same time frame. Although we have historically been able to replace maturing deposits and advances as necessary, we might not be able to replace such funds in the future, especially if a large number of our depositors seek to withdraw their accounts, regardless of the reason. A failure to maintain adequate liquidity could materially and adversely affect our business, results of operations, or financial condition. Reven ue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) Topic 606 : Revenue from Contracts with Customers . The Company’s principal revenue streams come from interest and dividend income and mortgage banking activities – which are specifically excluded from the scope of Topic 606. Revenue streams within the scope of Topic 606 such as customer service and account maintenance fees, deposit charges, ATM interchange and other transaction fees represent an immaterial percentage of total revenue and are recognized when the Company’s performance obligations have been satisfied. Earnings Per Share Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. Diluted earnings per share is determined using the treasury stock method and reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Employee Stock Ownership Plan ("ESOP") ESOP shares are shown as a reduction of equity and are presented in the consolidated statements of changes in shareholders’ equity as unallocated common stock held by ESOP. Compensation expense for the Company’s ESOP is recorded at an amount equal to the shares committed to be allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the period based upon the Company’s estimate of the number of shares committed to be allocated by the ESOP. When the shares are released, unallocated common stock held by ESOP is reduced by the cost of the ESOP shares released and the difference between the average fair market value and the cost of the shares committed to be allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The loan receivable from the ESOP is not reported as an asset nor is the Company’s guarantee to fund the ESOP reported as a liability on the Company’s consolidated balance sheet. RECENT ACCOUNTING STANDARDS The Company qualifies as an emerging growth company (“EGC”) under the Jumpstart Our Business Startups Act of 2012 and has elected to defer the adoption of new or revised accounting standards until the nonpublic company effective dates. As such, the Company will adopt standards on the nonpublic company effective dates until such time that we no longer qualify as an EGC. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Subsequent to the issuance of Topic 842, additional ASUs were issued to provide additional implementation guidance, practical expedients, targeted improvements, and revised effective dates. Under the new guidance, lessees are required to recognize lease right of use assets and related lease liabilities on the balance sheet for all leases with original terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting generally remains unchanged with minor changes. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021 with early adoption permitted. The Company leases two of its locations. The adoption of this ASU did no t have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments in this ASU affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU also requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a reporting entity’s portfolio. Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The Company intends to adopt this ASU effective January 1, 2023. An entity will apply the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). To date, the Company has been assessing the key differences and gaps between its current allowance methodology with those it is considering to use upon adoption. This has included assessing the adequacy of existing data and selecting a vendor for a loss model. The Company is in process of finalizing its model and executing parallel runs. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures . Update No. 2022-02 applies to public entities that have adopted ASC Topic 326. The amendments in this update eliminate the existing accounting guidance for troubled debt restructures ("TDRs") by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors and instead requires that an entity evaluate whether a modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements for certain loans refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. ASU 2022-02 also requires additional disclosure of current period gross write-offs by year of origination for financing receivables to be included in the entity's vintage disclosure, as currently required under Topic 326. All amendments in this update are effective for fiscal years beginning after December 15, 2022 , including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on the Company's consolidated financial statements. |
Investments in Securities
Investments in Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Investments in Securities | NOTE 3 – INVESTMENTS IN SECURITIES Investments in securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost basis of securities and their approximate fair values are as follows at the dates indicated: Amortized Gross Gross Cost Unrealized Unrealized Fair Held-to-maturity Basis Gains Losses Value (In Thousands) December 31, 2022 Debt securities issued by U.S. government-sponsored enterprises $ 11,213 $ 6 $ ( 578 ) $ 10,641 Mortgage-backed securities 51,864 3 ( 6,181 ) $ 45,686 Corporate bonds 11,612 — ( 1,041 ) $ 10,571 U.S. Treasury securities 2,902 — ( 93 ) $ 2,809 Total held-to-maturity securities $ 77,591 $ 9 $ ( 7,893 ) $ 69,707 December 31, 2021 Debt securities issued by U.S. government-sponsored enterprises $ 10,107 $ 75 $ ( 142 ) $ 10,040 Mortgage-backed securities 44,818 311 ( 492 ) 44,637 Corporate bonds 10,646 233 — 10,879 Total held-to-maturity securities $ 65,571 $ 619 $ ( 634 ) $ 65,556 Amortized Gross Gross Cost Unrealized Unrealized Fair Available-for-sale Basis Gains Losses Value (In Thousands) December 31, 2022 Debt securities Corporate bonds $ 4,991 $ 10 $ — $ 5,001 Total available-for-sale securities $ 4,991 $ 10 $ — $ 5,001 December 31, 2021 Debt securities Corporate bonds $ 4,990 $ 20 $ — $ 5,010 Total available-for-sale securities $ 4,990 $ 20 $ — $ 5,010 The actual maturities of certain available for sale or held to maturity securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of available for sale and held to maturity securities as of December 31, 2022 is presented below: Available- for-sale Held-to-maturity Fair Amortized Fair Value Cost Basis Value (In Thousands) Within 1 year $ — $ 1,032 $ 1,015 After 1 year through 5 years 5,001 25,934 24,470 After 5 years through 10 years — 4,315 3,889 After 10 years — 46,310 40,333 Total $ 5,001 $ 77,591 $ 69,707 There were no sales of securities during the years ended December 31, 2022 and 2021. The carrying value of securities pledged to secure advances from the Federal Home Loan Bank of Boston (“FHLB”) were $ 63.0 million and $ 0 as of December 31, 2022 and December 31, 2021, respectively. The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more, and are not other-than-temporarily impaired, are as follows as of December 31, 2022 and December 31, 2021 : Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2022 Held to Maturity: Debt securities issued by U.S. government-sponsored enterprises $ 2,847 $ ( 40 ) $ 5,046 $ ( 538 ) $ 7,893 $ ( 578 ) Mortgage-backed securities 20,795 ( 1,294 ) 24,710 ( 4,887 ) 45,505 ( 6,181 ) Corporate bonds 10,571 ( 1,041 ) - - 10,571 ( 1,041 ) U.S. Treasury securities 2,809 ( 93 ) - - 2,809 ( 93 ) Total temporarily impaired securities $ 37,022 $ ( 2,468 ) $ 29,756 $ ( 5,425 ) $ 66,778 $ ( 7,893 ) December 31, 2021 Held to Maturity: Debt securities issued by U.S. government-sponsored enterprises $ 2,919 $ ( 73 ) $ 2,520 $ ( 69 ) $ 5,439 $ ( 142 ) Mortgage-backed securities 28,643 ( 376 ) 4,259 ( 116 ) 32,902 ( 492 ) Total temporarily impaired securities $ 31,562 $ ( 449 ) $ 6,779 $ ( 185 ) $ 38,341 $ ( 634 ) Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. At December 31, 2022 , four debt securities issued by U.S. government-sponsored enterprises, fifty three mortgage backed securities, seven corporate bonds and one U.S. treasury security had unrealized losses with aggregate depreciation of 6.8 %, 12.0 %, 9.0 % and 3.2 %, respectively, from the Company’s amortized cost basis. These unrealized losses relate to changes in market interest rates since acquiring the securities. As management has the intent and ability to hold debt securities until maturity or cost recovery, no declines are deemed to be other-than-temporary. |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses and Credit Quality | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans, Allowance for Loan Losses and Credit Quality | NOTE 4 – LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY Loans consisted of the following as of the dates indicated: At December 31, At December 31, 2022 2021 Amount Percent Amount Percent (Dollars in thousands) Real estate loans: One- to four-family residential $ 355,381 39.8 % $ 259,673 49.8 % Multi-family 241,951 27.1 % 59,517 11.4 % Commercial 156,212 17.5 % 99,953 19.2 % Home equity lines of credit and loans 27,783 3.1 % 26,050 5.0 % Construction 107,317 12.0 % 70,668 13.5 % Other loans: Commercial loans 4,266 0.5 % 5,439 1.0 % Consumer 222 0.0 % 500 0.1 % 893,132 100.0 % 521,800 100.0 % Less: Net deferred loan fees ( 258 ) ( 433 ) Allowance for loan losses ( 7,200 ) ( 4,236 ) Total loans, net $ 885,674 $ 517,131 Certain directors and executive officers of the Company and companies in which they have a significant ownership interest are also customers of the Bank. Total outstanding loan balances to such persons and their companies amounted to $ 943,000 and $ 1,257,000 as of December 31, 2022 and December 31, 2021 , respectively. The following table sets forth the activity for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 (In Thousands) Beginning Balance $ 1,257 $ 1,268 Advances 375 887 Paydowns ( 689 ) ( 898 ) Ending Balance $ 943 $ 1,257 The carrying value of loans pledged to secure advances from the FHLB were $ 333.5 million and $ 176.2 million as of December 31, 2022 and December 31, 2021, respectively. The following tables set forth information regarding the allowance for loan losses as of and for the years ended December 31, 2022 and 2021: For the year ended December 31, 2022 As of December 31, 2022 (in thousands) (in thousands) Beginning Charge-offs Recoveries Provision Ending Allowance for loans individually Allowance for loans collectively Total allowance for loan losses Loans individually Loans collectively Total loans Real estate loans: One- to four-family residential $ 1,271 $ - $ - $ 432 $ 1,703 $ - $ 1,703 $ 1,703 $ 656 $ 354,725 $ 355,381 Multi-family 417 - - 1,422 1,839 - 1,839 1,839 - 241,951 241,951 Commercial 1,099 - 25 673 1,797 - 1,797 1,797 - 156,212 156,212 Home equity lines of credit and loans 185 - - 9 194 - 194 194 - 27,783 27,783 Construction 855 - - 431 1,286 - 1,286 1,286 - 107,317 107,317 Other loans: Commercial loans 60 - - - 60 - 60 60 - 4,266 4,266 Consumer 2 ( 2 ) 1 - 1 - 1 1 - 222 222 Unallocated 347 - - ( 27 ) 320 - 320 320 - - - Total $ 4,236 $ ( 2 ) $ 26 $ 2,940 $ 7,200 $ - $ 7,200 $ 7,200 $ 656 $ 892,476 $ 893,132 For the year ended December 31, 2021 As of December 31, 2021 (in thousands) (in thousands) Beginning Charge-offs Recoveries Provision Ending Allowance for loans individually Allowance for loans collectively Total allowance for loan losses Loans individually Loans collectively Total loans Real estate loans: One- to four-family residential $ 1,167 $ - $ - $ 104 $ 1,271 $ - $ 1,271 $ 1,271 $ 883 $ - $ 258,790 $ 259,673 Multi-family 266 - - 151 417 - 417 417 - 59,517 59,517 Commercial 1,175 - - ( 76 ) 1,099 - 1,099 1,099 - 99,953 99,953 Home equity lines of credit and loans 208 - - ( 23 ) 185 - 185 185 99 25,951 26,050 Construction 802 - - 53 855 - 855 855 - 70,668 70,668 Other loans: Commercial loans 103 - - ( 43 ) 60 - 60 60 - 5,439 5,439 Consumer 4 ( 1 ) 1 ( 2 ) 2 - 2 2 - 500 500 Unallocated 151 - - 196 347 - 347 347 - - - Total $ 3,876 $ ( 1 ) $ 1 $ 360 $ 4,236 $ - $ 4,236 $ 4,236 $ 982 $ 520,818 $ 521,800 The following tables set forth information regarding nonaccrual loans and past-due loans as of the dates indicated: 30–59 Days 60–89 Days 90 Days Total Total Total 90 days Loans on (in Thousands) As of December 31, 2022 Real estate loans: Residential $ — $ — $ 189 $ 189 $ 355,192 $ 355,381 $ — $ 656 Multi-family — — — — 241,951 241,951 — — Commercial — — — — 156,212 156,212 — — Home equity lines of credit and loans — — — — 27,783 27,783 — — Construction — — — — 107,317 107,317 — — Other loans: Commercial — — — — 4,266 4,266 — — Consumer — — — — 222 222 — — $ — $ — $ 189 $ 189 $ 892,943 $ 893,132 $ — $ 656 30–59 Days 60–89 Days 90 Days Total Total Total 90 days Loans on (in Thousands) As of December 31, 2021 Real estate loans: Residential $ — $ 88 $ 817 $ 905 $ 258,768 $ 259,673 $ — $ 883 Multi-family — — — — 59,517 59,517 — — Commercial — — — — 99,953 99,953 — — Home equity lines of credit and loans 99 — — 99 25,951 26,050 — 99 Construction — — — — 70,668 70,668 — — Other loans: Commercial — — — — 5,439 5,439 — — Consumer 1 — — 1 499 500 — — $ 100 $ 88 $ 817 $ 1,005 $ 520,795 $ 521,800 $ — $ 982 Information about loans that meet the definition of an impaired loan in Accounting Standards Codification (ASC) 310-10-35 is as follows as of and for the years ended December 31, 2022 and 2021: As of December 31, 2022 Year Ended December 31, 2022 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in Thousands) December 31, 2022 With no related allowance recorded: Real estate loans: Residential $ 656 $ 656 $ — $ 685 $ 50 Multi-family — — — — — Commercial — — — — — Home equity lines of credit and loans — — — 25 1 Construction — — — — — Other loans: Commercial — — — — — Total impaired with no related allowance 656 656 — 710 51 With an allowance recorded: Real estate loans: Residential — — — — — Multi-family — — — — — Home equity lines of credit and loans — — — — — Commercial — — — — — Construction — — — — — Other loans: Commercial — — — — — Total impaired with a related allowance — — — — — Total Real estate loans: Residential 656 656 — 685 50 Multi-family — — — — — Commercial — — — — — Home equity lines of credit and loans — — — 25 1 Construction — — — — — Other loans: Commercial — — — — — Total impaired loans $ 656 $ 656 $ — $ 710 $ 51 As of December 31, 2021 Year Ended December 31, 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in Thousands) December 31, 2021 With no related allowance recorded: Real estate loans: Residential $ 883 $ 883 $ — $ 1,172 $ 32 Multi-family — — — — — Commercial — — — 513 34 Home equity lines of credit and loans 99 99 — 99 3 Construction — — — — — Other loans: Commercial — — — 2 — Total impaired with no related allowance 982 982 — 1,786 69 With an allowance recorded: Real estate loans: Residential — — — — — Multi-family — — — — — Home equity lines of credit and loans — — — — — Commercial — — — — — Construction — — — — — Other loans: Commercial — — — — — Total impaired with a related allowance — — — — — Total Real estate loans: Residential 883 883 — 1,172 32 Multi-family — — — — — Commercial — — — 513 34 Home equity lines of credit and loans 99 99 — 99 3 Construction — — — — — Other loans: Commercial — — — 2 — Total impaired loans $ 982 $ 982 $ — $ 1,786 $ 69 The Company classifies loan modifications as TDRs when a borrower is experiencing financial difficulties and it has granted a concession to the borrower. All TDRs, regardless of size, are evaluated for impairment individually to determine the probable loss and are assigned a specific loan allowance, if deemed appropriate, in the determination of the allowance for loan losses. The financial effects of TDRs are reflected in the components that comprise the allowance for loan losses in either the amount of charge-offs or loan loss provision and ultimate allowance level. During the years ended December 31, 2022 and 2021, there were no loans that were modified in a troubled debt restructuring. During the years ended December 31, 2022 and 2021, there were no loans modified as TDR loans that subsequently defaulted within one year of the modification. As of December 31, 2022 and December 31, 2021 , there were no commitments to lend additional funds to borrowers whose loans were modified as troubled debt restructurings. The following tables present the Company’s loans by risk rating as of the dates indicated: Real Estate Home Equity Residential Multi-family Commercial Lines of Credit Construction Commercial Consumer Total (In Thousands) As of December 31, 2022 Grade Pass $ 63,817 $ 241,951 $ 156,212 $ 2,995 $ 103,272 $ 4,266 $ — $ 572,513 Special 467 — — — — — — 467 Substandard — — — — — — — — Doubtful — — — — — — — — Loans not 291,097 — — 24,788 4,045 — 222 320,152 $ 355,381 $ 241,951 $ 156,212 $ 27,783 $ 107,317 $ 4,266 $ 222 $ 893,132 Real Estate Home Equity Residential Multi-family Commercial Lines of Credit Construction Commercial Consumer Total (In Thousands) As of December 31, 2021 Grade Pass $ 34,613 $ 59,517 $ 99,953 $ 624 $ 64,623 $ 5,339 $ — $ 264,669 Special mention 970 — — 99 394 100 — 1,563 Substandard — — — — — — — — Doubtful — — — — — — — — Loans not 224,090 — — 25,327 5,651 — 500 255,568 $ 259,673 $ 59,517 $ 99,953 $ 26,050 $ 70,668 $ 5,439 $ 500 $ 521,800 Credit Quality Information The Company utilizes a seven grade internal loan rating system for multi-family and commercial real estate, construction, commercial loans and certain residential and home equity lines of credit and loans as follows: Loans rated 1 – 3: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 4: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Bank will sustain some loss if the weakness is not corrected. Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 7: Loans in this category are considered uncollectible (loss) and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial loans with aggregate potential outstanding balances of $ 500,000 or more, and all commercial real estate loans (including multi-family and construction loans as well as residential and home equity line of credit loans to commercial borrowers) with aggregate potential outstanding balances of $ 1,000,000 or more. For all other loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and subsequently monitors these loans based on the borrower’s payment activity. There were no consumer mortgage loans secured by residential real estate in the process of foreclosure as of December 31, 2022. There was one consumer mortgage loan in the amount of $ 243,000 that was secured by residential real estate in the process of foreclosure as of December 31, 2021 . |
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 following is a summary of premises and equipment as of December 31: 2022 2021 (in Thousands) Banking premises and equipment: Land $ 594 $ 594 Buildings and improvements 5,699 5,691 Leasehold improvements 301 240 Furniture and equipment 1,554 1,407 Total cost 8,148 7,932 Accumulated depreciation and amortization ( 4,450 ) ( 4,148 ) Net premises and equipment $ 3,698 $ 3,784 Depreciation and amortization expense for the years ended December 31, 2022 and 2021 amounted to $ 302,000 and $ 300,000 , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | NOTE 6 – DEPOSITS The aggregate amount of time deposit accounts in denominations that meet or exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit (currently $ 250,000 ) at December 31, 2022 and 2021 was $ 98,419,000 and $ 88,836,000 , respectively. The aggregate amount of brokered time deposits at December 31, 2022 and 2021 was $ 100,842,000 and $ 19,868,000 , respectively. All brokered time deposits are in denominations less than $ 250,000 . For time deposits as of December 31, 2022, the scheduled maturities for each of the following years ended December 31 are (in thousands): 2023 $ 183,382 2024 48,801 2025 55,417 2026 15,093 2027 17,154 Total $ 319,847 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 7 – BORROWINGS Borrowings consist of advances borrowed from the Federal Home Loan Bank of Boston (FHLB). Maturities of advances from the FHLB for the years ending after December 31, 2022 and December 31, 2021 are summarized as follows (in thousands): 2022 2021 Stated Maturity Total Outstanding Weighted Average Contractual Rate Stated Maturity Total Outstanding Weighted Average Contractual Rate 2023 $ 55,000 4.37 % 2022 $ - - 2024 5,000 1.69 % 2023 - - 2025 - - 2024 5,000 1.69 % 2026 4,000 0.82 % 2025 - - 2027 110,000 3.76 % 2026 4,000 0.82 % Total 174,000 3.83 % 9,000 1.30 % Borrowings from the FHLB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family, multifamily and commercial real estate properties and other qualified assets. At December 31, 2022 and 2021, the interest rates on FHLB advances ranged from 0.82 % to 4.38 % and 0.82 % to 1.69 %, respectively. At December 31, 2022 and 2021, the Bank had a $ 2,199,000 line of credit established with the FHLB. There were no advances on this line. The available borrowing capacity with the FHLB was $ 84,757,000 as of December 31, 2022 and $ 112,450,000 as of December 31, 2021. At December 31, 2022, the Bank had a $ 10,000,000 line of credit established with the Atlantic Community Bankers Bank. There were no advances on this line. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plan [Abstract] | |
Employee Benefits Plan | NOTE 8 – EMPLOYEE BENEFIT PLANS Pension Plans Defined Benefit Plan The Company provided pension benefits for its employees through membership in the Defined Benefit Plan of the Co-operative Banks Employees Retirement Association (CBERA) (the Plan). The Plan is a multi-employer plan whereby the contributions by each bank are not restricted to provide benefits to the employees of the contributing bank. Each employee reaching the age of 21 and having completed at least one year of service automatically became eligible to participate in the Plan. Participants became vested after completion of six years of eligible service. At the December 15, 2021 Board of Directors' meeting, the Directors voted to freeze benefit accruals and withdraw from the CBERA Plan as of April 30, 2022. The Company recorded a liability as of December 31, 2021 and a related expense, each in the amount of $ 2,001,000 , related to this withdrawal. For the year ended December 31, 2022 a benefit of $ 582,000 was recorded to reflect a reduction in the liability related to the pending withdrawal from the defined benefit plan. The reduction was primarily driven by increases in interest rates since December 31, 2021, which caused defined benefit plan discount rates to rise. In May of 2022, the final withdrawal liability was determined to be $ 1,419,000 . The Company paid the final amount and has withdrawn from the plan. The liability as of December 31, 2022 was $ 0 . 401(k) Plan In addition to the defined benefit plan, the Company has adopted a savings plan which qualifies under Section 401(k) of the Internal Revenue Code and provides for voluntary contributions by participating employees ranging from 1 % to 75 % of their compensation, subject to certain limitations based on federal tax laws. The Bank makes matching contributions equal to 100 % of each employee’s voluntary contributions, up to 7 % of the employee’s compensation. Total expense related to the 401(k) plan for the years ended December 31, 2022 and 2021 amounted to $ 362,000 and $ 265,000 , respectively. Employee Incentive Plan The Company provides an employee incentive plan which is approved annually by the Board of Directors, based on various factors. The employee incentive plan expense for the years ended December 31, 2022 and 2021 amounted to $ 1,302,000 and $ 662,000 , respectively. Supplemental Executive Retirement Plan (SERP) The Bank formed a SERP for certain executive officers. This plan provides nonfunded retirement benefits designed to supplement benefits available through the Bank’s retirement plan for employees. Director Fee Continuation Plan (DFCP) Effective January 1, 2017, the Bank established a Director Fee Continuation Plan which provides supplemental retirement benefits for directors. Under the DFCP, individuals who are directors as of the effective date of the DFCP are 100 % vested in their benefits. Individuals who become directors after the effective date shall be fully vested in their accounts after having served on the Board of Directors for twelve years. The following tables set forth information about the SERP and DFCP as of December 31 and the years then ended: 2022 2021 SERP DFCP SERP DFCP (In thousands) Change in projected benefit obligation: Benefit obligation at beginning of year $ 1,437 $ 791 $ 1,539 $ 822 Service cost 17 101 18 105 Interest cost 34 17 29 12 Actuarial gain ( 232 ) ( 180 ) ( 49 ) ( 108 ) Benefits paid ( 100 ) ( 40 ) ( 100 ) ( 40 ) Benefit obligation at end of year 1,156 689 1,437 791 Funded status ( 1,156 ) ( 689 ) ( 1,437 ) ( 791 ) Amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2022 and 2021, before tax effect, consist of: 2022 2021 SERP DFCP SERP DFCP (In thousands) Net (gain) loss $ ( 207 ) $ ( 128 ) $ 75 $ 60 The accumulated benefit obligation and unfunded status of the SERP was $ 1,156,000 and $ 1,437,000 at December 31, 2022 and 2021, respectively, and is classified within “other liabilities” in the accompanying consolidated balance sheets. The accumulated benefit obligation and unfunded status of the DFCP was $ 689,000 and $ 791,000 at December 31, 2022 and 2021, respectively, and is classified within “other liabilities” in the accompanying consolidated balance sheets. Assumptions used to determine the benefit obligation at December 31 are as follows: 2022 2021 SERP DFCP SERP DFCP Discount rate 4.86 % 4.77 % 2.42 % 2.15 % Rate of increase in compensation levels N/A N/A N/A N/A Components of net periodic cost and other comprehensive (income) loss for the years ended December 31 are as follows: 2022 2021 SERP DFCP SERP DFCP (In thousands) Components of net periodic cost Service cost $ 17 $ 101 $ 18 $ 105 Interest cost 34 17 29 12 Amortization of net actuarial loss 50 10 83 59 Net periodic cost 101 128 130 176 Other changes in benefit obligations recognized as other comprehensive (income) loss: Net actuarial gain $ ( 232 ) $ ( 180 ) $ ( 49 ) $ ( 108 ) Amortization of net actuarial loss ( 50 ) ( 10 ) ( 83 ) ( 59 ) Total other comprehensive income ( 282 ) ( 190 ) ( 132 ) ( 167 ) Total net periodic cost and other comprehensive income $ ( 181 ) $ ( 62 ) $ ( 2 ) $ 9 The components of net periodic benefit cost attributable to service cost for the SERP and DFCP are included in the line items "salaries and employee benefits" and "director compensation," respectively. The components of net periodic benefit cost other than the service cost component are included in the line item “other expense” in the income statement. Assumptions used to determine the net periodic cost for years ended December 31 are as follows: 2022 2021 SERP DFCP SERP DFCP Discount rate 2.42 % 2.15 % 1.95 % 1.59 % Rate of increase in compensation levels N/A N/A N/A N/A Estimated future benefit payments, which reflect expected future service, as appropriate, as of December 31, 2022 are as follows (in thousands): 2022 SERP DFCP (In thousands) 2023 $ 100 $ 40 2024 105 40 2025 110 60 2026 109 60 2027 108 100 Years 2028 through 2032 $ 515 $ 460 Supplemental Executive Retirement Agreement On January 1, 2018, the Company entered into a supplemental executive retirement agreement with an executive officer whereby the Company is obligated to provide post-retirement salary continuation benefits equal to 60 % of the executive officer’s final average compensation, as defined. Benefits are 100 % vested, commence upon retirement, and are payable based on a ten-year certain and life annuity. The liability for the Plan amounted to $ 3,081,000 and $ 2,332,000 as of December 31, 2022 and 2021, respectively. The expense recognized for the Plan for the years ended December 31, 2022 and 2021 amounted to $ 749,000 and $ 869,000 , respectively. Executive Deferred Compensation Agreement In 2021, the Company entered into a deferred compensation agreement with an executive officer that allows the Company to make contributions to an account for the executive officer each year, as of January 1, based on the prior year’s performance and the Company intends the contribution will equal 10 % of the executive officer’s salary and bonus. The Company may make other contributions to the deferred compensation plan, at its discretion, at other times during the year. Contributions made under the deferred compensation plan for the years ended December 31, 2022 and 2021 amounted to $ 34,600 and $ 33,200 , respectively. Deferred Compensation Plan for Directors The Company maintains the Everett Co-operative Bank Deferred Compensation Plan for Directors (the “Director Deferred Compensation Plan”) to allow for certain tax planning opportunities and additional retirement income for directors of the Company. All non-employee directors are eligible to participate in the Director Deferred Compensation Plan. Under the Director Deferred Compensation Plan, directors may elect to defer the receipt of up to 100 % of their director fees. Participants are always 100 % vested in their deferred fees and any interest credited to those deferrals. Earnings are credited to a participant’s deferrals each year and are indexed to the highest certificate of deposit rate offered by the Bank. The liability for the Director Deferred Compensation Plan amounted to $ 592,000 and $ 479,000 as of December 31, 2022 and 2021, respectively. Survivor Benefit Plan The Company entered into Survivor Benefit Plan Participation Agreements with a group of employees whereby the Company is obligated to provide up to two years of recognized compensation, as defined, to the beneficiary if the participant dies while employed by the Company. During the year ended December 31, 2022 one of the participants died. The expense recognized for the year ended December 31, 2022 was $ 166,000 . There was no expense recognized during 2021. Employment and Change in Control Agreements During 2022, the Company entered into an employment agreement with the Chief Executive Officer and Change in Control agreements with certain executive officers, which provide severance payments in the event of the executive’s involuntary or constructive termination of employment, including upon a termination following a change in control as defined in the agreements. Employee Stock Ownership Plan As part of the Initial Public Offering ("IPO") completed on July 27, 2022, the Company established a tax-qualified Employee Stock Ownership Plan ("ESOP") to provide eligible employees the opportunity to own Company shares. The ESOP borrowed $ 7.3 million from the Company to purchase 734,020 common shares during the IPO. The loan is payable in annual installments over 20 years at an interest rate of 4.75 %. As the loan is repaid to the Company, shares are released and allocated proportionally to eligible participants on the basis of each participant’s proportional share of compensation relative to the compensation of all participants. The unallocated ESOP shares are pledged as collateral on the loan. The Company accounts for its ESOP in accordance with FASB ASC 718-40, Compensation – Stock Compensation. Under this guidance, unreleased shares are deducted from shareholders’ equity as unearned ESOP shares in the accompanying consolidated balance sheets. The Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the difference will be credited or debited to additional paid-in capital included within shareholders' equity. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s consolidated balance sheets. Total compensation expense recognized in connection with the ESOP was $ 559,000 for the year ended December 31, 2022. There was no expense recognized in 2021 related to the ESOP. The following table presents share information held by the ESOP: As of December 31, 2022 (Dollars in thousands) Allocated shares 36,701 Shares committed to be released - Unallocated shares 697,319 Total shares 734,020 Fair value of unallocated shares $ 11,192 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 – INCOME TAXES The components of income tax expense are as follows for the years ended December 31: 2022 2021 (In thousands) Current: Federal 1,582 1,757 State 696 789 2,278 2,546 Deferred: Federal ( 1,017 ) ( 759 ) State ( 485 ) ( 358 ) ( 1,502 ) ( 1,117 ) Total income tax expense 776 1,429 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows for the years ended December 31: 2022 2021 % of income % of income Statutory tax rates 21.0 % 21.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit 4.8 6.2 Bank-owned life insurance ( 5.0 ) ( 1.4 ) Share based compensation 1.2 - Other, net 0.2 0.3 Effective tax rates 22.2 % 26.1 % The Bank had gross deferred tax assets and gross deferred tax liabilities as follows as of December 31: 2022 2021 (In thousands) Deferred tax assets: Allowance for loan losses 2,137 1,257 Employee benefit plans 1,988 1,970 Unrecognized employee benefit costs under ASC 715-10 — 38 Interest on non-performing loans 2 8 Charitable contribution carryover 682 — Gross deferred tax assets 4,809 3,273 Deferred tax liabilities: Depreciation ( 296 ) ( 280 ) Unrecognized employee benefit costs under ASC 715-10 ( 94 ) — Net deferred loan costs ( 59 ) ( 16 ) ESOP ( 13 ) — Net unrealized holding gain on available-for-sale securities ( 3 ) ( 6 ) Gross deferred tax liabilities ( 465 ) ( 302 ) Net deferred tax asset 4,344 2,971 The federal income tax reserve for loan losses at the Bank’s base year amounted to $ 1,876,000 as of December 31, 2022 and 2021. If any portion of the reserve is used for purposes other than to absorb the losses for which it was established, approximately 150 % of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year it is used. As the Bank intends to use the reserve only to absorb loan losses, a deferred income tax liability of approximately $ 527,000 has not been provided as of December 31, 2022 and 2021. At December 31, 2022, the Company had a charitable contribution carryover of $ 2,412,000 which expires on December 31, 2027. There is no valuation allowance recorded against the related deferred tax asset as the Company deems it probable that the deferred tax benefits will be fully realized. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 10 - RELATED PARTY TRANSACTIONS During 2018, the Bank entered into a lease agreement with a related party for office space. The initial lease term expires in February 2023 and contains a five year option to extend, as well as a cancellation clause permitting the Bank to cancel the lease anytime during the initial term with sixty days’ notice. Annual rent is approximately $ 48,000 , payable monthly, not including an annual tenant improvement credit of $ 18,000 during the original term. The Bank is responsible for a portion of common area charges, as well as other customary leasehold costs. Net annual rental payments amounted to $ 30,000 and $ 28,000 for 2022 and 2021, respectively. In February of 2022, the lease was amended to replace the five year option to extend with three options to extend the term of two years , two years and one year . In addition, during February 2022, a new lease agreement was entered into with the related party for additional office space. The initial lease term expired in February 2023 and contains three options to extend the term of two years , two years and one year . The first two year option was exercised during 2022. Annual rent is approximately $ 21,000 , payable monthly. The Bank is responsible for a portion of common area charges, as well as other customary leasehold costs. Net annual rental payments amounted to $ 18,000 for 2022. The Company utilizes the services of a law firm that is a related party for loan closings and related matters as well as general corporate legal matters. Fees for the years ended December 31, 2022 and December 31, 2021 were $ 145,000 and $ 253,000 , respectively. The Company utilizes the services of one of the members of the Board of Directors of the Company for loan closings and related matters. Fees for the years ended December 31, 2022 and December 31, 2021 were $ 307,000 and $ 305,000 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 11 - FAIR VALUE MEASUREMENTS ASC 820-10, Fair Value Measurement – Overall, provides a framework for measuring fair value under U.S. GAAP. This guidance also allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. In accordance with ASC 820-10, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. Level 3 – Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value for December 31, 2022 and December 31, 2021. The Company’s investment in debt instruments available for sale is generally classified within Level 2 of the fair value hierarchy. For those securities, the Bank obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that considers standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. The Company’s impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using appraisals obtained from a third party, and are adjusted for selling costs. These appraised values may be discounted based on management’s historical knowledge, expertise, or changes in the market conditions from time of valuation. For Level 3 inputs, fair values are based upon management’s estimates of the value of the underlying collateral or the present value of the expected cash flows. As of December 31, 2022 and December 31, 2021, the following summarizes assets measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Total Quoted Prices Significant Significant in Active Other Unobservable Markets for Observable Inputs Identical Assets Inputs Level 3 Level 1 Level 2 (In Thousands) December 31, 2022 Corporate bonds $ 5,001 $ — $ 5,001 $ — $ — Total available for-sale-securities $ 5,001 $ — $ 5,001 $ — December 31, 2021 Corporate bonds $ 5,010 $ — $ 5,010 $ — Total available for-sale-securities $ 5,010 $ — $ 5,010 $ — Under certain circumstances, the Company makes adjustments to its assets and liabilities although they are not measured at fair value on an ongoing basis. As of December 31, 2022 and December 31, 2021, the Bank had no assets or liabilities for which a nonrecurring change in fair value had been recorded. ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. ASU 2016-01 requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The exit price notion is a market-based measurement of fair value that is represented by the price to sell an asset or transfer a liability in the principal market (or most advantageous market in the absence of a principal market) on the measurement date. For December 31, 2022 and December 31, 2021 , fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 62,050 $ 62,050 $ 62,050 $ - $ - Interest bearing time deposits 300 300 - 300 - Held-to-maturity securities 77,591 69,707 - 69,707 - Federal Home Loan Bank stock 7,293 7,293 - 7,293 - Loans, net 885,674 841,271 - - 841,271 Accrued interest receivable 2,632 2,632 2,632 - - Bank-owned life insurance 14,067 14,067 - 14,067 - Financial liabilities: Deposits, other than certificates of deposit $ 398,302 $ 398,302 $ - $ 398,302 $ - Certificates of deposit 319,847 310,943 - 310,943 - Federal Home Loan Bank advances 174,000 172,427 - 172,427 - Accrued interest payable 736 736 736 - - December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 52,975 $ 52,975 $ 52,975 $ - $ - Held-to-maturity securities 65,571 65,556 - 65,556 - Federal Home Loan Bank stock 1,087 1,087 - 1,087 - Loans, net 517,131 517,167 - - 517,167 Loans held for sale 1,301 1,322 - 1,322 - Accrued interest receivable 1,481 1,481 1,481 - - Bank-owned life insurance 14,135 14,135 - 14,135 - Financial liabilities: Deposits, other than certificates of deposit $ 344,934 $ 344,934 $ - $ 344,934 $ - Certificates of deposit 226,820 227,265 - 227,265 - Federal Home Loan Bank advances 9,000 8,969 - 8,969 - Accrued interest payable 49 49 49 - - |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 – COMMITMENTS AND CONTINGENCIES The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. 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. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies but usually includes income producing commercial properties or residential real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of December 31, 2022 and December 31, 2021 , the maximum potential amount of the Company’s obligation was $ 13,000 and $ 13,000 , respectively, for standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year . If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit. Amounts of financial instrument liabilities whose contract amounts represent off-balance sheet credit risk are as follows as of the dates indicated: December 31, 2022 December 31, 2021 (In Thousands) Commitments to originate loans $ 37,220 $ 24,658 Commitments to purchase loans 6,653 - Unadvanced funds on lines of credit 80,224 45,548 Unadvanced funds on construction loans 72,431 37,352 Letters of credit 13 13 $ 196,541 $ 107,571 The Bank accrues for credit losses related to off-balance sheet financial instruments. Potential losses on off-balance sheet loan commitments are estimated using the same risk factors used to determine the allowance for loan losses. The allowance for off-balance sheet commitments is recorded within other liabilities on the consolidated balance sheets and amounted to $ 402,000 and $ 235,000 as of December 31, 2022 and December 31, 2021 , respectively. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Other Comprehensive Income | NOTE 13 – OTHER COMPREHENSIVE INCOME Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the shareholders' equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. The com ponents of other comprehensive income and related tax effects are as follows for the years ended December 31 2022 and 2021: Year ended December 31, 2022 2021 (In thousands) Change in unrealized gains on securities: Change in net unrealized holding gains on available-for-sale securities ( 10 ) ( 25 ) Reclassification adjustment for realized gains in net income — — Other comprehensive loss related to available-for-sale securities ( 10 ) ( 25 ) Income tax benefit 3 7 Net-of-tax amount ( 7 ) ( 18 ) Net actuarial gain on SERP 232 49 Reclassification adjustment for amortization of net actuarial loss (1) 50 83 Other comprehensive income related to SERP 282 132 Income tax expense ( 79 ) ( 37 ) Net-of-tax amount 203 95 Net actuarial gain on director fee continuation plan 179 108 Reclassification adjustment for amortization of net actuarial loss (2) 10 59 Other comprehensive income related to director fee continuation plan 189 167 Income tax expense ( 53 ) ( 47 ) Net-of-tax amount 136 120 Other comprehensive income, net of tax $ 332 $ 197 (1) Reclassification adjustments are comprised of amortization of unrecognized SERP costs. The amortization of unrecognized SERP costs has been reclassified out of accumulated other comprehensive loss and has affected certain lines in the consolidated statements of income as follows: the amount is included in other expense; the tax expense in the amounts of $ 14,000 and $ 23,000 for the years ended December 31, 2022 and 2021, respectively, is included in income tax expense; and the net of tax amount is included in net income. (2) Reclassification adjustments are comprised of amortization of unrecognized Director Fee Continuation Plan (DFCP) costs. The amortization of unrecognized DFCP costs has been reclassified out of accumulated other comprehensive loss and has affected certain lines in the consolidated statements of income as follows: the amount is included in other expense; the tax expense in the amounts of $ 3,000 and $ 17,000 for the years ended December 31, 2022 and 2021, respectively, are included in income tax expense; and the net of tax amount is included in net income. Accumulated other comprehensive income (loss) as of December 31, 2022 and December 31, 2021 consists of unrecognized benefit costs, net of taxes, and unrealized holding gains on securities available for sale, net of tax, as follows: As of December 31, 2022 As of December 31, 2021 (In thousands) Net unrealized holding gains on securities available-for-sale, net of tax $ 9 $ 14 Unrecognized SERP credits (costs), net of tax 149 ( 53 ) Unrecognized director fee continuation plan credits (costs), net of tax 91 ( 44 ) Accumulated other comprehensive income (loss) $ 249 $ ( 83 ) |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | NOTE 14 – REGULATORY MATTERS The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Management believes, as of December 31, 2022, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2022, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are presented in the table as of the dates indicated: Minimum For Capital Minimum To Be Well Adequacy Purposes Capitalized Under Plus Capital Prompt Corrective Actual Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital (to Risk Weighted Assets) $ 138,023 16.40 % $ 88,386 10.50 % $ 84,177 10.00 % Tier 1 Capital (to Risk Weighted Assets) 130,421 15.49 % 71,550 8.50 % 67,342 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 130,421 15.49 % 58,924 7.00 % 54,715 6.50 % Tier 1 Capital (to Average Assets) 130,421 13.89 % 37,562 4.00 % 46,953 5.00 % As of December 31, 2021 Total Capital (to Risk Weighted Assets) $ 81,827 17.77 % $ 48,355 10.50 % $ 46,052 10.00 % Tier 1 Capital (to Risk Weighted Assets) 77,356 16.80 % 39,144 8.50 % 36,842 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 77,356 16.80 % 32,236 7.00 % 29,934 6.50 % Tier 1 Capital (to Average Assets) 77,356 11.83 % 26,164 4.00 % 32,705 5.00 % In addition to the above minimum requirements, the Bank is subject to a Capital Conservation Buffer requirement of 2.5 %. The requirement limits capital distributions and certain discretionary bonus payments to management if the Bank does not maintain the minimum Capital Conservation Buffer. At December 31, 2022, the Bank exceeded the minimum Capital Conservation Buffer. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | NOTE 15 - PARENT COMPANY FINANCIAL STATEMENTS ECB BANCORP, INC. BALANCE SHEETS (Dollars in thousands) December 31, 2022 December 31, 2021 ASSETS Cash $ 24,294 $ - Investment in subsidiary 130,670 - Loan to Everett Co-operative Bank ESOP 6,928 - Deferred tax asset, net 683 - Income taxes receivable 149 - Other assets 11 - Total assets $ 162,735 $ - LIABILITIES AND SHAREHOLDERS' EQUITY Other liabilities $ 5 $ - Total liabilities 5 - Shareholders' equity 162,730 - Total liabilities and shareholders' equity $ 162,735 $ - ECB BANCORP, INC. STATEMENTS OF INCOME (Dollars in thousands) Year Ended December 31, 2022 2021 Interest income Interest on loan $ 150 $ - Interest on cash 155 - Total interest income 305 - Noninterest expense Charitable contributions 3,200 - Other expense 62 - Total noninterest expense 3,262 - Loss before income taxes and equity in undistributed income of subsidiaries ( 2,957 ) - Income tax benefit ( 831 ) - Loss of parent company ( 2,126 ) - Equity in undistributed income of subsidiary 4,846 - Net income $ 2,720 $ - ECB BANCORP, INC. STATEMENTS OF CASH FLOWS (Dollars in thousands) Year Ended December 31, 2022 2021 Cash flows from operating activities: Net income $ 2,720 $ — Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary ( 4,846 ) — Deferred income tax benefit ( 683 ) — Issuance of common shares donated to the Everett Co-operative Bank Charitable Foundation 2,600 — Net change in: Other assets ( 11 ) — Income taxes receivable ( 149 ) — Other liabilities 5 — Net cash provided by operating activities ( 364 ) — Cash flows from investing activities: ESOP loan, net of principal payments ( 6,928 ) — Capital contribution to Everett Co-operative Bank ( 55,000 ) — Net cash used in investing activities ( 61,928 ) — Cash flows from financing activities: Net proceeds from issuance of common stock 86,586 — Net cash provided by financing activities 86,586 — Net increase in cash and cash equivalents 24,294 — Cash and cash equivalents at beginning of year — — Cash and cash equivalents at end of year $ 24,294 $ — |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share ("EPS") | NOTE 16 - EARNINGS PER SHARE ("EPS") Basic EPS represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the year, plus the effect of potential dilutive common share equivalents computed using the treasury stock method. There were no securities that had a dilutive effect during the year ended December 31, 2022, and therefore the weighted-average common shares outstanding used to calculate both basic and diluted EPS are the same. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per share data is not applicable for the year ende d December 31, 2021 as the Company had no shares outstanding. Year Ended December 31, 2022 (dollars in thousands, except per share data) Net income applicable to common shares $ 2,720 Average number of common shares outstanding 9,175,247 Less: Average unallocated ESOP shares ( 719,029 ) Average number of common shares outstanding used to calculate basic earnings per common share 8,456,218 Common stock equivalents - Average number of common shares outstanding used to calculate diluted earnings per common share 8,456,218 Earnings per common share Basic $ 0.32 Diluted $ 0.32 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17 - SUBSEQUENT EVENTS Management has reviewed events occurring through March 30, 2023, the da te the consolidated financial statements were issued and determined that no subsequent events occurred requiring adjustment to or disclosure in these consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the balances and results of operations of ECB Bancorp, Inc. and its wholly-owned subsidiary Everett Co-operative Bank ("the Bank") as well as First Everett Securities Corporation, a wholly-owned subsidiary of the Bank. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses. |
Reclassification | Reclassification Certain previously reported amounts have been reclassified to conform to the current period’s presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, cash items, due from banks and short-term investments. The Company has historically been required to maintain certain vault cash and/or deposits with the Federal Reserve Bank of Boston. However, based on the COVID-19 pandemic the Federal Reserve has reduced the reserve requirement ratio to zero percent across all deposit tiers as of March 26, 2020. |
Securities | Securities The Company classifies securities at the time of purchase into one of four categories: held-to-maturity, available-for-sale, trading, or equity. These security classifications may be modified after acquisition only under certain specified conditions. In general, debt securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other debt securities must be classified as available-for-sale. • Held-to-maturity securities are measured at amortized cost on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, or in a separate component of shareholders' equity; they are merely disclosed in the notes to the consolidated financial statements. • Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings but are reported in other comprehensive income, net of related tax. • Trading and equity securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading and equity securities are included in earnings. The Company had no securities classified as trading or equity securities at December 31, 2022 and 2021. Purchase premiums and discounts are recognized in interest income, using the interest method, to arrive at periodic interest income at a constant effective yield, thereby reflecting the securities' market yield. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Such gains and losses are recognized within non-interest income or non-interest expense within the consolidated statements of income. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive income (loss). |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank, as a member of the Federal Home Loan Bank of Boston (FHLB), is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. The Company reviews its investment in capital stock of the FHLB for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. |
Loans Held-for-Sale | Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are recognized through a valuation allowance and recorded in noninterest expense. Fair value is based on committed secondary market prices. No losses have been recorded during 2022 or 2021. |
Loans | Loans Loans receivable that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest on loans is recognized on a simple interest basis. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is amortized as an adjustment to the related loan’s yield. The Company is amortizing these amounts over the contractual lives of the related loans. Residential real estate loans are generally placed on nonaccrual when reaching 90 days past due or in process of foreclosure. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on nonaccrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on nonaccrual status. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against current income. A loan can be returned to accrual status when collectability of principal and interest is reasonably assured and the loan has performed for a period of time, generally six months. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) established the Paycheck Protection Program (PPP), a stimulus program which grants SBA-guaranteed, forgivable loans to businesses to encourage employee retention by subsidizing payroll and certain other costs during the pandemic. These loans are originated and funded by financial institutions and are an extension of the Small Business Administration’s (SBA) 7(a) loan program. There were no PPP loans originated during 2022. The Bank originated 70 PPP loans totaling $ 6,049,000 and recorded net deferred fees of $ 237,000 during the year ended December 31, 2021. Origination fees, net of costs, are being accreted into interest income over the contractual life of each loan. Included in the loan portfolio at December 31, 2022 and December 31, 2021 were 2 PPP loans amounting to $ 121,000 and 48 PPP loans amounting to $ 3,404,000 , respectively, which are classified within commercial loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. General Component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, multi-family real estate, commercial real estate, home equity lines of credit and loans, construction, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Bank’s policies or methodology pertaining to the general component of the allowance for loan losses during 2022 or 2021. Although not separately segmented, loans subject to COVID-19 modifications and PPP loans are monitored within their respective segments for purposes of identifying any potential problem loans and to ensure that their respective risks are captured in the allowance model. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate and home equity lines of credit and loans : The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent without requiring private mortgage insurance. Loans in these segments are collateralized primarily by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in these segments. Commercial real estate and multi-family residential : Loans in these segments are primarily income-producing properties throughout Massachusetts. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates which, in turn, will have an effect on the credit quality in these segments. Management periodically obtains rent rolls and continually monitors the cash flows of these loans. Construction : The loans in this segment are residential and commercial construction-to-permanent loans collateralized by owner-occupied residential and commercial real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial : Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Also included within this segment are PPP loans. These loans are 100% guaranteed by the SBA and are subject to forgiveness if the borrower complies with the employee retention and other requirements. Although these loans are guaranteed, management has determined that there is some level of risk inherent in this portfolio. Consumer : Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated Component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, multi-family, commercial real estate, construction and residential loans and home equity lines of credit and loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring (TDR) agreement. 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. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are initially classified as impaired. Unallocated Component An unallocated component 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 allocated and general reserves in the portfolio. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than their carrying amount. In that event, the Company records a loss equal to the difference between the carrying amount and the fair value of the asset based on quoted market prices, if applicable, or a discounted cash flow analysis. |
Other Real Estate Owned and In-Substance Foreclosures | Other Real Estate Owned and In-Substance Foreclosures Other real estate owned includes properties acquired through foreclosure and properties classified as in-substance repossession. These properties are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure or transfer, establishing a new cost basis. Subsequent to foreclosure or transfer, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Any write-down from cost to estimated fair value required at the time of foreclosure or classification as in-substance foreclosure is charged to the allowance for loan losses. Expenses incurred in connection with maintaining these assets, subsequent write-downs and gains or losses recognized upon sale are included in other expense. The Company classifies commercial loans as in-substance repossessed or foreclosed if the Company receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. An in-substance repossession or foreclosure occurs, and the Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. |
Advertising | Advertising The Company directly expenses costs associated with advertising as they are incurred. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the 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 income in the period that includes the enactment date. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of income tax expense. The Company has evaluated the positions taken on its tax returns filed and the potential impact on its tax status as of December 31, 2022. The Company has concluded no uncertain income tax positions exist at December 31, 2022. The Company is subject to U.S. federal, state and local income tax examinations by tax authorities for the 2019 through 2021 tax years. |
Risks and Uncertainties | Risks and Uncertainties Most of the Company’s business activity is with customers located within the greater Boston area. The majority of the Company’s loan portfolio is comprised of loans collateralized by real estate located in the greater Boston area. The Company invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the consolidated balance sheet or statements of income. Ineffective liquidity management could adversely affect our financial results and condition. Effective liquidity management is essential for the operation of our business. We require sufficient liquidity to meet customer loan requests, customer deposit maturities/withdrawals, payments on our debt obligations as they come due, and other cash commitments under both normal operating conditions and other unpredictable circumstances causing industry or general financial market stress. Our access to funding sources in amounts adequate to finance our activities on terms that are acceptable to us could be impaired by factors that affect us specifically, or the financial services industry or economy generally. Factors that could detrimentally impact our access to liquidity sources include a downturn in the geographic markets in which our loans and operations are concentrated or difficult credit markets. Our access to deposits may also be affected by the liquidity needs of our depositors. In particular, a portion of our liabilities are checking accounts and other liquid deposits, which are payable on demand or upon several days’ notice, while by comparison, a substantial majority of our assets are loans, which cannot be called or sold in the same time frame. Although we have historically been able to replace maturing deposits and advances as necessary, we might not be able to replace such funds in the future, especially if a large number of our depositors seek to withdraw their accounts, regardless of the reason. A failure to maintain adequate liquidity could materially and adversely affect our business, results of operations, or financial condition. |
Revenue Recognition | Reven ue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) Topic 606 : Revenue from Contracts with Customers . The Company’s principal revenue streams come from interest and dividend income and mortgage banking activities – which are specifically excluded from the scope of Topic 606. Revenue streams within the scope of Topic 606 such as customer service and account maintenance fees, deposit charges, ATM interchange and other transaction fees represent an immaterial percentage of total revenue and are recognized when the Company’s performance obligations have been satisfied. |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. Diluted earnings per share is determined using the treasury stock method and reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. |
Employee Stock Ownership Plan ("ESOP") | Employee Stock Ownership Plan ("ESOP") ESOP shares are shown as a reduction of equity and are presented in the consolidated statements of changes in shareholders’ equity as unallocated common stock held by ESOP. Compensation expense for the Company’s ESOP is recorded at an amount equal to the shares committed to be allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the period based upon the Company’s estimate of the number of shares committed to be allocated by the ESOP. When the shares are released, unallocated common stock held by ESOP is reduced by the cost of the ESOP shares released and the difference between the average fair market value and the cost of the shares committed to be allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The loan receivable from the ESOP is not reported as an asset nor is the Company’s guarantee to fund the ESOP reported as a liability on the Company’s consolidated balance sheet. |
Recent Accounting Pronouncements | RECENT ACCOUNTING STANDARDS The Company qualifies as an emerging growth company (“EGC”) under the Jumpstart Our Business Startups Act of 2012 and has elected to defer the adoption of new or revised accounting standards until the nonpublic company effective dates. As such, the Company will adopt standards on the nonpublic company effective dates until such time that we no longer qualify as an EGC. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Subsequent to the issuance of Topic 842, additional ASUs were issued to provide additional implementation guidance, practical expedients, targeted improvements, and revised effective dates. Under the new guidance, lessees are required to recognize lease right of use assets and related lease liabilities on the balance sheet for all leases with original terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting generally remains unchanged with minor changes. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021 with early adoption permitted. The Company leases two of its locations. The adoption of this ASU did no t have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments in this ASU affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU also requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a reporting entity’s portfolio. Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The Company intends to adopt this ASU effective January 1, 2023. An entity will apply the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). To date, the Company has been assessing the key differences and gaps between its current allowance methodology with those it is considering to use upon adoption. This has included assessing the adequacy of existing data and selecting a vendor for a loss model. The Company is in process of finalizing its model and executing parallel runs. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures . Update No. 2022-02 applies to public entities that have adopted ASC Topic 326. The amendments in this update eliminate the existing accounting guidance for troubled debt restructures ("TDRs") by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors and instead requires that an entity evaluate whether a modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements for certain loans refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. ASU 2022-02 also requires additional disclosure of current period gross write-offs by year of origination for financing receivables to be included in the entity's vintage disclosure, as currently required under Topic 326. All amendments in this update are effective for fiscal years beginning after December 15, 2022 , including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on the Company's consolidated financial statements. |
Investments in Securities (Tabl
Investments in Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Held-to-Maturity Securities | Investments in securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost basis of securities and their approximate fair values are as follows at the dates indicated: Amortized Gross Gross Cost Unrealized Unrealized Fair Held-to-maturity Basis Gains Losses Value (In Thousands) December 31, 2022 Debt securities issued by U.S. government-sponsored enterprises $ 11,213 $ 6 $ ( 578 ) $ 10,641 Mortgage-backed securities 51,864 3 ( 6,181 ) $ 45,686 Corporate bonds 11,612 — ( 1,041 ) $ 10,571 U.S. Treasury securities 2,902 — ( 93 ) $ 2,809 Total held-to-maturity securities $ 77,591 $ 9 $ ( 7,893 ) $ 69,707 December 31, 2021 Debt securities issued by U.S. government-sponsored enterprises $ 10,107 $ 75 $ ( 142 ) $ 10,040 Mortgage-backed securities 44,818 311 ( 492 ) 44,637 Corporate bonds 10,646 233 — 10,879 Total held-to-maturity securities $ 65,571 $ 619 $ ( 634 ) $ 65,556 |
Schedule of Available-for-Sale Securities | Amortized Gross Gross Cost Unrealized Unrealized Fair Available-for-sale Basis Gains Losses Value (In Thousands) December 31, 2022 Debt securities Corporate bonds $ 4,991 $ 10 $ — $ 5,001 Total available-for-sale securities $ 4,991 $ 10 $ — $ 5,001 December 31, 2021 Debt securities Corporate bonds $ 4,990 $ 20 $ — $ 5,010 Total available-for-sale securities $ 4,990 $ 20 $ — $ 5,010 |
Schedule of the Contractual Maturities of Available for Sale and Held-to-Maturity Securities | A schedule of the contractual maturities of available for sale and held to maturity securities as of December 31, 2022 is presented below: Available- for-sale Held-to-maturity Fair Amortized Fair Value Cost Basis Value (In Thousands) Within 1 year $ — $ 1,032 $ 1,015 After 1 year through 5 years 5,001 25,934 24,470 After 5 years through 10 years — 4,315 3,889 After 10 years — 46,310 40,333 Total $ 5,001 $ 77,591 $ 69,707 |
Aggregate Fair Value and Unrealized Losses of Securities in a Continuous Unrealized Loss Position | The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more, and are not other-than-temporarily impaired, are as follows as of December 31, 2022 and December 31, 2021 : Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2022 Held to Maturity: Debt securities issued by U.S. government-sponsored enterprises $ 2,847 $ ( 40 ) $ 5,046 $ ( 538 ) $ 7,893 $ ( 578 ) Mortgage-backed securities 20,795 ( 1,294 ) 24,710 ( 4,887 ) 45,505 ( 6,181 ) Corporate bonds 10,571 ( 1,041 ) - - 10,571 ( 1,041 ) U.S. Treasury securities 2,809 ( 93 ) - - 2,809 ( 93 ) Total temporarily impaired securities $ 37,022 $ ( 2,468 ) $ 29,756 $ ( 5,425 ) $ 66,778 $ ( 7,893 ) December 31, 2021 Held to Maturity: Debt securities issued by U.S. government-sponsored enterprises $ 2,919 $ ( 73 ) $ 2,520 $ ( 69 ) $ 5,439 $ ( 142 ) Mortgage-backed securities 28,643 ( 376 ) 4,259 ( 116 ) 32,902 ( 492 ) Total temporarily impaired securities $ 31,562 $ ( 449 ) $ 6,779 $ ( 185 ) $ 38,341 $ ( 634 ) |
Loans, Allowance for Loan Los_2
Loans, Allowance for Loan Losses and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consisted of the following as of the dates indicated: At December 31, At December 31, 2022 2021 Amount Percent Amount Percent (Dollars in thousands) Real estate loans: One- to four-family residential $ 355,381 39.8 % $ 259,673 49.8 % Multi-family 241,951 27.1 % 59,517 11.4 % Commercial 156,212 17.5 % 99,953 19.2 % Home equity lines of credit and loans 27,783 3.1 % 26,050 5.0 % Construction 107,317 12.0 % 70,668 13.5 % Other loans: Commercial loans 4,266 0.5 % 5,439 1.0 % Consumer 222 0.0 % 500 0.1 % 893,132 100.0 % 521,800 100.0 % Less: Net deferred loan fees ( 258 ) ( 433 ) Allowance for loan losses ( 7,200 ) ( 4,236 ) Total loans, net $ 885,674 $ 517,131 |
Summary of Activity for Loans | The following table sets forth the activity for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 (In Thousands) Beginning Balance $ 1,257 $ 1,268 Advances 375 887 Paydowns ( 689 ) ( 898 ) Ending Balance $ 943 $ 1,257 |
Schedule of Information Regarding Allowance for Loan Losses | The following tables set forth information regarding the allowance for loan losses as of and for the years ended December 31, 2022 and 2021: For the year ended December 31, 2022 As of December 31, 2022 (in thousands) (in thousands) Beginning Charge-offs Recoveries Provision Ending Allowance for loans individually Allowance for loans collectively Total allowance for loan losses Loans individually Loans collectively Total loans Real estate loans: One- to four-family residential $ 1,271 $ - $ - $ 432 $ 1,703 $ - $ 1,703 $ 1,703 $ 656 $ 354,725 $ 355,381 Multi-family 417 - - 1,422 1,839 - 1,839 1,839 - 241,951 241,951 Commercial 1,099 - 25 673 1,797 - 1,797 1,797 - 156,212 156,212 Home equity lines of credit and loans 185 - - 9 194 - 194 194 - 27,783 27,783 Construction 855 - - 431 1,286 - 1,286 1,286 - 107,317 107,317 Other loans: Commercial loans 60 - - - 60 - 60 60 - 4,266 4,266 Consumer 2 ( 2 ) 1 - 1 - 1 1 - 222 222 Unallocated 347 - - ( 27 ) 320 - 320 320 - - - Total $ 4,236 $ ( 2 ) $ 26 $ 2,940 $ 7,200 $ - $ 7,200 $ 7,200 $ 656 $ 892,476 $ 893,132 For the year ended December 31, 2021 As of December 31, 2021 (in thousands) (in thousands) Beginning Charge-offs Recoveries Provision Ending Allowance for loans individually Allowance for loans collectively Total allowance for loan losses Loans individually Loans collectively Total loans Real estate loans: One- to four-family residential $ 1,167 $ - $ - $ 104 $ 1,271 $ - $ 1,271 $ 1,271 $ 883 $ - $ 258,790 $ 259,673 Multi-family 266 - - 151 417 - 417 417 - 59,517 59,517 Commercial 1,175 - - ( 76 ) 1,099 - 1,099 1,099 - 99,953 99,953 Home equity lines of credit and loans 208 - - ( 23 ) 185 - 185 185 99 25,951 26,050 Construction 802 - - 53 855 - 855 855 - 70,668 70,668 Other loans: Commercial loans 103 - - ( 43 ) 60 - 60 60 - 5,439 5,439 Consumer 4 ( 1 ) 1 ( 2 ) 2 - 2 2 - 500 500 Unallocated 151 - - 196 347 - 347 347 - - - Total $ 3,876 $ ( 1 ) $ 1 $ 360 $ 4,236 $ - $ 4,236 $ 4,236 $ 982 $ 520,818 $ 521,800 |
Schedule of Information Regarding Nonaccrual Loans and Past Due Loans | The following tables set forth information regarding nonaccrual loans and past-due loans as of the dates indicated: 30–59 Days 60–89 Days 90 Days Total Total Total 90 days Loans on (in Thousands) As of December 31, 2022 Real estate loans: Residential $ — $ — $ 189 $ 189 $ 355,192 $ 355,381 $ — $ 656 Multi-family — — — — 241,951 241,951 — — Commercial — — — — 156,212 156,212 — — Home equity lines of credit and loans — — — — 27,783 27,783 — — Construction — — — — 107,317 107,317 — — Other loans: Commercial — — — — 4,266 4,266 — — Consumer — — — — 222 222 — — $ — $ — $ 189 $ 189 $ 892,943 $ 893,132 $ — $ 656 30–59 Days 60–89 Days 90 Days Total Total Total 90 days Loans on (in Thousands) As of December 31, 2021 Real estate loans: Residential $ — $ 88 $ 817 $ 905 $ 258,768 $ 259,673 $ — $ 883 Multi-family — — — — 59,517 59,517 — — Commercial — — — — 99,953 99,953 — — Home equity lines of credit and loans 99 — — 99 25,951 26,050 — 99 Construction — — — — 70,668 70,668 — — Other loans: Commercial — — — — 5,439 5,439 — — Consumer 1 — — 1 499 500 — — $ 100 $ 88 $ 817 $ 1,005 $ 520,795 $ 521,800 $ — $ 982 |
Schedule of Information About Impaired Loan | Information about loans that meet the definition of an impaired loan in Accounting Standards Codification (ASC) 310-10-35 is as follows as of and for the years ended December 31, 2022 and 2021: As of December 31, 2022 Year Ended December 31, 2022 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in Thousands) December 31, 2022 With no related allowance recorded: Real estate loans: Residential $ 656 $ 656 $ — $ 685 $ 50 Multi-family — — — — — Commercial — — — — — Home equity lines of credit and loans — — — 25 1 Construction — — — — — Other loans: Commercial — — — — — Total impaired with no related allowance 656 656 — 710 51 With an allowance recorded: Real estate loans: Residential — — — — — Multi-family — — — — — Home equity lines of credit and loans — — — — — Commercial — — — — — Construction — — — — — Other loans: Commercial — — — — — Total impaired with a related allowance — — — — — Total Real estate loans: Residential 656 656 — 685 50 Multi-family — — — — — Commercial — — — — — Home equity lines of credit and loans — — — 25 1 Construction — — — — — Other loans: Commercial — — — — — Total impaired loans $ 656 $ 656 $ — $ 710 $ 51 As of December 31, 2021 Year Ended December 31, 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in Thousands) December 31, 2021 With no related allowance recorded: Real estate loans: Residential $ 883 $ 883 $ — $ 1,172 $ 32 Multi-family — — — — — Commercial — — — 513 34 Home equity lines of credit and loans 99 99 — 99 3 Construction — — — — — Other loans: Commercial — — — 2 — Total impaired with no related allowance 982 982 — 1,786 69 With an allowance recorded: Real estate loans: Residential — — — — — Multi-family — — — — — Home equity lines of credit and loans — — — — — Commercial — — — — — Construction — — — — — Other loans: Commercial — — — — — Total impaired with a related allowance — — — — — Total Real estate loans: Residential 883 883 — 1,172 32 Multi-family — — — — — Commercial — — — 513 34 Home equity lines of credit and loans 99 99 — 99 3 Construction — — — — — Other loans: Commercial — — — 2 — Total impaired loans $ 982 $ 982 $ — $ 1,786 $ 69 |
Summary of Loans by Risk Rating | The following tables present the Company’s loans by risk rating as of the dates indicated: Real Estate Home Equity Residential Multi-family Commercial Lines of Credit Construction Commercial Consumer Total (In Thousands) As of December 31, 2022 Grade Pass $ 63,817 $ 241,951 $ 156,212 $ 2,995 $ 103,272 $ 4,266 $ — $ 572,513 Special 467 — — — — — — 467 Substandard — — — — — — — — Doubtful — — — — — — — — Loans not 291,097 — — 24,788 4,045 — 222 320,152 $ 355,381 $ 241,951 $ 156,212 $ 27,783 $ 107,317 $ 4,266 $ 222 $ 893,132 Real Estate Home Equity Residential Multi-family Commercial Lines of Credit Construction Commercial Consumer Total (In Thousands) As of December 31, 2021 Grade Pass $ 34,613 $ 59,517 $ 99,953 $ 624 $ 64,623 $ 5,339 $ — $ 264,669 Special mention 970 — — 99 394 100 — 1,563 Substandard — — — — — — — — Doubtful — — — — — — — — Loans not 224,090 — — 25,327 5,651 — 500 255,568 $ 259,673 $ 59,517 $ 99,953 $ 26,050 $ 70,668 $ 5,439 $ 500 $ 521,800 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following is a summary of premises and equipment as of December 31: 2022 2021 (in Thousands) Banking premises and equipment: Land $ 594 $ 594 Buildings and improvements 5,699 5,691 Leasehold improvements 301 240 Furniture and equipment 1,554 1,407 Total cost 8,148 7,932 Accumulated depreciation and amortization ( 4,450 ) ( 4,148 ) Net premises and equipment $ 3,698 $ 3,784 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Deposits | For time deposits as of December 31, 2022, the scheduled maturities for each of the following years ended December 31 are (in thousands): 2023 $ 183,382 2024 48,801 2025 55,417 2026 15,093 2027 17,154 Total $ 319,847 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Maturities of Advances from FHLB | Maturities of advances from the FHLB for the years ending after December 31, 2022 and December 31, 2021 are summarized as follows (in thousands): 2022 2021 Stated Maturity Total Outstanding Weighted Average Contractual Rate Stated Maturity Total Outstanding Weighted Average Contractual Rate 2023 $ 55,000 4.37 % 2022 $ - - 2024 5,000 1.69 % 2023 - - 2025 - - 2024 5,000 1.69 % 2026 4,000 0.82 % 2025 - - 2027 110,000 3.76 % 2026 4,000 0.82 % Total 174,000 3.83 % 9,000 1.30 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plan [Abstract] | |
Summary of Information about SERP and DFCP | The following tables set forth information about the SERP and DFCP as of December 31 and the years then ended: 2022 2021 SERP DFCP SERP DFCP (In thousands) Change in projected benefit obligation: Benefit obligation at beginning of year $ 1,437 $ 791 $ 1,539 $ 822 Service cost 17 101 18 105 Interest cost 34 17 29 12 Actuarial gain ( 232 ) ( 180 ) ( 49 ) ( 108 ) Benefits paid ( 100 ) ( 40 ) ( 100 ) ( 40 ) Benefit obligation at end of year 1,156 689 1,437 791 Funded status ( 1,156 ) ( 689 ) ( 1,437 ) ( 791 ) |
Summary of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2022 and 2021, before tax effect, consist of: 2022 2021 SERP DFCP SERP DFCP (In thousands) Net (gain) loss $ ( 207 ) $ ( 128 ) $ 75 $ 60 |
Summary of Assumptions Used to Determine Benefit Obligation | Assumptions used to determine the benefit obligation at December 31 are as follows: 2022 2021 SERP DFCP SERP DFCP Discount rate 4.86 % 4.77 % 2.42 % 2.15 % Rate of increase in compensation levels N/A N/A N/A N/A |
Schedule of Components of Net Periodic Cost and Other Comprehensive (Income) Loss | Components of net periodic cost and other comprehensive (income) loss for the years ended December 31 are as follows: 2022 2021 SERP DFCP SERP DFCP (In thousands) Components of net periodic cost Service cost $ 17 $ 101 $ 18 $ 105 Interest cost 34 17 29 12 Amortization of net actuarial loss 50 10 83 59 Net periodic cost 101 128 130 176 Other changes in benefit obligations recognized as other comprehensive (income) loss: Net actuarial gain $ ( 232 ) $ ( 180 ) $ ( 49 ) $ ( 108 ) Amortization of net actuarial loss ( 50 ) ( 10 ) ( 83 ) ( 59 ) Total other comprehensive income ( 282 ) ( 190 ) ( 132 ) ( 167 ) Total net periodic cost and other comprehensive income $ ( 181 ) $ ( 62 ) $ ( 2 ) $ 9 |
Summary of Assumptions Used to Determine Net Periodic Cost | Assumptions used to determine the net periodic cost for years ended December 31 are as follows: 2022 2021 SERP DFCP SERP DFCP Discount rate 2.42 % 2.15 % 1.95 % 1.59 % Rate of increase in compensation levels N/A N/A N/A N/A |
Schedule of Estimated Future Benefit Payments | Estimated future benefit payments, which reflect expected future service, as appropriate, as of December 31, 2022 are as follows (in thousands): 2022 SERP DFCP (In thousands) 2023 $ 100 $ 40 2024 105 40 2025 110 60 2026 109 60 2027 108 100 Years 2028 through 2032 $ 515 $ 460 |
Summary of share information held by the ESOP | The following table presents share information held by the ESOP: As of December 31, 2022 (Dollars in thousands) Allocated shares 36,701 Shares committed to be released - Unallocated shares 697,319 Total shares 734,020 Fair value of unallocated shares $ 11,192 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense are as follows for the years ended December 31: 2022 2021 (In thousands) Current: Federal 1,582 1,757 State 696 789 2,278 2,546 Deferred: Federal ( 1,017 ) ( 759 ) State ( 485 ) ( 358 ) ( 1,502 ) ( 1,117 ) Total income tax expense 776 1,429 |
Schedule of Differences Between Statutory Federal Income Tax Rate and Effective Tax Rates | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows for the years ended December 31: 2022 2021 % of income % of income Statutory tax rates 21.0 % 21.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit 4.8 6.2 Bank-owned life insurance ( 5.0 ) ( 1.4 ) Share based compensation 1.2 - Other, net 0.2 0.3 Effective tax rates 22.2 % 26.1 % |
Schedule of Gross Deferred Tax Assets and Gross Deferred Tax Liabilities | The Bank had gross deferred tax assets and gross deferred tax liabilities as follows as of December 31: 2022 2021 (In thousands) Deferred tax assets: Allowance for loan losses 2,137 1,257 Employee benefit plans 1,988 1,970 Unrecognized employee benefit costs under ASC 715-10 — 38 Interest on non-performing loans 2 8 Charitable contribution carryover 682 — Gross deferred tax assets 4,809 3,273 Deferred tax liabilities: Depreciation ( 296 ) ( 280 ) Unrecognized employee benefit costs under ASC 715-10 ( 94 ) — Net deferred loan costs ( 59 ) ( 16 ) ESOP ( 13 ) — Net unrealized holding gain on available-for-sale securities ( 3 ) ( 6 ) Gross deferred tax liabilities ( 465 ) ( 302 ) Net deferred tax asset 4,344 2,971 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | As of December 31, 2022 and December 31, 2021, the following summarizes assets measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Total Quoted Prices Significant Significant in Active Other Unobservable Markets for Observable Inputs Identical Assets Inputs Level 3 Level 1 Level 2 (In Thousands) December 31, 2022 Corporate bonds $ 5,001 $ — $ 5,001 $ — $ — Total available for-sale-securities $ 5,001 $ — $ 5,001 $ — December 31, 2021 Corporate bonds $ 5,010 $ — $ 5,010 $ — Total available for-sale-securities $ 5,010 $ — $ 5,010 $ — |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis or Non-Recurring Basis | For December 31, 2022 and December 31, 2021 , fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 62,050 $ 62,050 $ 62,050 $ - $ - Interest bearing time deposits 300 300 - 300 - Held-to-maturity securities 77,591 69,707 - 69,707 - Federal Home Loan Bank stock 7,293 7,293 - 7,293 - Loans, net 885,674 841,271 - - 841,271 Accrued interest receivable 2,632 2,632 2,632 - - Bank-owned life insurance 14,067 14,067 - 14,067 - Financial liabilities: Deposits, other than certificates of deposit $ 398,302 $ 398,302 $ - $ 398,302 $ - Certificates of deposit 319,847 310,943 - 310,943 - Federal Home Loan Bank advances 174,000 172,427 - 172,427 - Accrued interest payable 736 736 736 - - December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 52,975 $ 52,975 $ 52,975 $ - $ - Held-to-maturity securities 65,571 65,556 - 65,556 - Federal Home Loan Bank stock 1,087 1,087 - 1,087 - Loans, net 517,131 517,167 - - 517,167 Loans held for sale 1,301 1,322 - 1,322 - Accrued interest receivable 1,481 1,481 1,481 - - Bank-owned life insurance 14,135 14,135 - 14,135 - Financial liabilities: Deposits, other than certificates of deposit $ 344,934 $ 344,934 $ - $ 344,934 $ - Certificates of deposit 226,820 227,265 - 227,265 - Federal Home Loan Bank advances 9,000 8,969 - 8,969 - Accrued interest payable 49 49 49 - - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Financial Instrument Liabilities Represent Off-Balance Sheet Credit Risk | Amounts of financial instrument liabilities whose contract amounts represent off-balance sheet credit risk are as follows as of the dates indicated: December 31, 2022 December 31, 2021 (In Thousands) Commitments to originate loans $ 37,220 $ 24,658 Commitments to purchase loans 6,653 - Unadvanced funds on lines of credit 80,224 45,548 Unadvanced funds on construction loans 72,431 37,352 Letters of credit 13 13 $ 196,541 $ 107,571 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income and Related Tax Effects | The com ponents of other comprehensive income and related tax effects are as follows for the years ended December 31 2022 and 2021: Year ended December 31, 2022 2021 (In thousands) Change in unrealized gains on securities: Change in net unrealized holding gains on available-for-sale securities ( 10 ) ( 25 ) Reclassification adjustment for realized gains in net income — — Other comprehensive loss related to available-for-sale securities ( 10 ) ( 25 ) Income tax benefit 3 7 Net-of-tax amount ( 7 ) ( 18 ) Net actuarial gain on SERP 232 49 Reclassification adjustment for amortization of net actuarial loss (1) 50 83 Other comprehensive income related to SERP 282 132 Income tax expense ( 79 ) ( 37 ) Net-of-tax amount 203 95 Net actuarial gain on director fee continuation plan 179 108 Reclassification adjustment for amortization of net actuarial loss (2) 10 59 Other comprehensive income related to director fee continuation plan 189 167 Income tax expense ( 53 ) ( 47 ) Net-of-tax amount 136 120 Other comprehensive income, net of tax $ 332 $ 197 (1) Reclassification adjustments are comprised of amortization of unrecognized SERP costs. The amortization of unrecognized SERP costs has been reclassified out of accumulated other comprehensive loss and has affected certain lines in the consolidated statements of income as follows: the amount is included in other expense; the tax expense in the amounts of $ 14,000 and $ 23,000 for the years ended December 31, 2022 and 2021, respectively, is included in income tax expense; and the net of tax amount is included in net income. (2) Reclassification adjustments are comprised of amortization of unrecognized Director Fee Continuation Plan (DFCP) costs. The amortization of unrecognized DFCP costs has been reclassified out of accumulated other comprehensive loss and has affected certain lines in the consolidated statements of income as follows: the amount is included in other expense; the tax expense in the amounts of $ 3,000 and $ 17,000 for the years ended December 31, 2022 and 2021, respectively, are included in income tax expense; and the net of tax amount is included in net income. |
Schedule of Accumulated Other Comprehensive income (Loss) | Accumulated other comprehensive income (loss) as of December 31, 2022 and December 31, 2021 consists of unrecognized benefit costs, net of taxes, and unrealized holding gains on securities available for sale, net of tax, as follows: As of December 31, 2022 As of December 31, 2021 (In thousands) Net unrealized holding gains on securities available-for-sale, net of tax $ 9 $ 14 Unrecognized SERP credits (costs), net of tax 149 ( 53 ) Unrecognized director fee continuation plan credits (costs), net of tax 91 ( 44 ) Accumulated other comprehensive income (loss) $ 249 $ ( 83 ) |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Company's and Bank's Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the table as of the dates indicated: Minimum For Capital Minimum To Be Well Adequacy Purposes Capitalized Under Plus Capital Prompt Corrective Actual Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital (to Risk Weighted Assets) $ 138,023 16.40 % $ 88,386 10.50 % $ 84,177 10.00 % Tier 1 Capital (to Risk Weighted Assets) 130,421 15.49 % 71,550 8.50 % 67,342 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 130,421 15.49 % 58,924 7.00 % 54,715 6.50 % Tier 1 Capital (to Average Assets) 130,421 13.89 % 37,562 4.00 % 46,953 5.00 % As of December 31, 2021 Total Capital (to Risk Weighted Assets) $ 81,827 17.77 % $ 48,355 10.50 % $ 46,052 10.00 % Tier 1 Capital (to Risk Weighted Assets) 77,356 16.80 % 39,144 8.50 % 36,842 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 77,356 16.80 % 32,236 7.00 % 29,934 6.50 % Tier 1 Capital (to Average Assets) 77,356 11.83 % 26,164 4.00 % 32,705 5.00 % In addition to the above minimum requirements, the Bank is subject to a Capital Conservation Buffer requirement of 2.5 %. The requirement limits capital distributions and certain discretionary bonus payments to management if the Bank does not maintain the minimum Capital Conservation Buffer. At December 31, 2022, the Bank exceeded the minimum Capital Conservation Buffer. |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Statements of Balance Sheets | ECB BANCORP, INC. BALANCE SHEETS (Dollars in thousands) December 31, 2022 December 31, 2021 ASSETS Cash $ 24,294 $ - Investment in subsidiary 130,670 - Loan to Everett Co-operative Bank ESOP 6,928 - Deferred tax asset, net 683 - Income taxes receivable 149 - Other assets 11 - Total assets $ 162,735 $ - LIABILITIES AND SHAREHOLDERS' EQUITY Other liabilities $ 5 $ - Total liabilities 5 - Shareholders' equity 162,730 - Total liabilities and shareholders' equity $ 162,735 $ - |
Statements of Income | ECB BANCORP, INC. STATEMENTS OF INCOME (Dollars in thousands) Year Ended December 31, 2022 2021 Interest income Interest on loan $ 150 $ - Interest on cash 155 - Total interest income 305 - Noninterest expense Charitable contributions 3,200 - Other expense 62 - Total noninterest expense 3,262 - Loss before income taxes and equity in undistributed income of subsidiaries ( 2,957 ) - Income tax benefit ( 831 ) - Loss of parent company ( 2,126 ) - Equity in undistributed income of subsidiary 4,846 - Net income $ 2,720 $ - |
Statements of Cash Flows | ECB BANCORP, INC. STATEMENTS OF CASH FLOWS (Dollars in thousands) Year Ended December 31, 2022 2021 Cash flows from operating activities: Net income $ 2,720 $ — Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary ( 4,846 ) — Deferred income tax benefit ( 683 ) — Issuance of common shares donated to the Everett Co-operative Bank Charitable Foundation 2,600 — Net change in: Other assets ( 11 ) — Income taxes receivable ( 149 ) — Other liabilities 5 — Net cash provided by operating activities ( 364 ) — Cash flows from investing activities: ESOP loan, net of principal payments ( 6,928 ) — Capital contribution to Everett Co-operative Bank ( 55,000 ) — Net cash used in investing activities ( 61,928 ) — Cash flows from financing activities: Net proceeds from issuance of common stock 86,586 — Net cash provided by financing activities 86,586 — Net increase in cash and cash equivalents 24,294 — Cash and cash equivalents at beginning of year — — Cash and cash equivalents at end of year $ 24,294 $ — |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per share data | Year Ended December 31, 2022 (dollars in thousands, except per share data) Net income applicable to common shares $ 2,720 Average number of common shares outstanding 9,175,247 Less: Average unallocated ESOP shares ( 719,029 ) Average number of common shares outstanding used to calculate basic earnings per common share 8,456,218 Common stock equivalents - Average number of common shares outstanding used to calculate diluted earnings per common share 8,456,218 Earnings per common share Basic $ 0.32 Diluted $ 0.32 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 09, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of shares sold in offering | 8,915,247 | 9,175,247 | 0 |
Common stock per share price | $ 10 | $ 0.01 | $ 0.01 |
Gross offering proceeds | $ 89,200,000 | $ 79,246,000 | $ 0 |
Payment for deferred offering costs | 2,567,000 | ||
Number of common stock shares funded | 260,000 | ||
Prepaid Expenses and Other Assets | |||
Offering costs | $ 0 | $ 76,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) Loans Security | Dec. 31, 2021 USD ($) Loans Security | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of trading or equity securities | Security | 0 | 0 |
Losses related to loans held-for-sale | $ 0 | $ 0 |
Minimum | U.S. Federal | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax examination year | 2019 | |
Minimum | State and Local | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax examination year | 2019 | |
Maximum | U.S. Federal | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax examination year | 2021 | |
Maximum | State and Local | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax examination year | 2021 | |
Paycheck Protection Program | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of originated loans | Loans | 0 | 70 |
Loan origination amount | $ 6,049,000 | |
Loan originated net deferred fees | $ 237,000 | |
Paycheck Protection Program | Commercial Loans | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of originated loans | Loans | 2 | 48 |
Loans outstanding amount | $ 121,000 | $ 3,404,000 |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in accounting principle, accounting standards update, adoption date | Dec. 15, 2021 | |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | |
Accounting Standards Update 2022-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in accounting principle, accounting standards update, adoption date | Dec. 15, 2022 |
Investments in Securities - Sch
Investments in Securities - Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost Basis | $ 77,591 | $ 65,571 |
Held-to-maturity securities, Gross Unrealized Gains | 9 | 619 |
Held-to-maturity securities, Gross Unrealized Losses | (7,893) | (634) |
Held-to-maturity securities, Fair Value | 69,707 | 65,556 |
Debt Securities Issued by U.S. Government-Sponsored Enterprises | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost Basis | 11,213 | 10,107 |
Held-to-maturity securities, Gross Unrealized Gains | 6 | 75 |
Held-to-maturity securities, Gross Unrealized Losses | (578) | (142) |
Held-to-maturity securities, Fair Value | 10,641 | 10,040 |
Mortgage-backed Securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost Basis | 51,864 | 44,818 |
Held-to-maturity securities, Gross Unrealized Gains | 3 | 311 |
Held-to-maturity securities, Gross Unrealized Losses | (6,181) | (492) |
Held-to-maturity securities, Fair Value | 45,686 | 44,637 |
Corporate Bonds | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost Basis | 11,612 | 10,646 |
Held-to-maturity securities, Gross Unrealized Gains | 0 | 233 |
Held-to-maturity securities, Gross Unrealized Losses | (1,041) | 0 |
Held-to-maturity securities, Fair Value | 10,571 | $ 10,879 |
US Treasury Securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost Basis | 2,902 | |
Held-to-maturity securities, Gross Unrealized Gains | 0 | |
Held-to-maturity securities, Gross Unrealized Losses | (93) | |
Held-to-maturity securities, Fair Value | $ 2,809 |
Investments in Securities - S_2
Investments in Securities - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 4,991 | $ 4,990 |
Available-for-sale Securities, Gross Unrealized Gains | 10 | 20 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Fair Value | 5,001 | 5,010 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 4,991 | 4,990 |
Available-for-sale Securities, Gross Unrealized Gains | 10 | 20 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Fair Value | $ 5,001 | $ 5,010 |
Investments in Securities - S_3
Investments in Securities - Schedule of the Contractual Maturities of Available for Sale and Held-to-Maturity Securities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Available-for-sale, Fair Value, Within 1 year | $ 0 |
Available-for-sale, Fair Value, After 1 year through 5 years | 5,001 |
Available-for-sale, Fair Value, After 5 years through 10 years | 0 |
Available-for-sale, Fair Value, After 10 Years | 0 |
Available-for-sale, Fair Value | 5,001 |
Held-to-maturity, Amortized Cost Basis, Within 1 year | 1,032 |
Held-to-maturity, Amortized Cost Basis, After 1 year through 5 years | 25,934 |
Held-to-maturity, Amortized Cost Basis, After 5 years through 10 years | 4,315 |
Held-to-maturity, Amortized Cost Basis, After 10 years | 46,310 |
Held-to-maturity, Amortized Cost Basis, Total | 77,591 |
Held-to-maturity, Fair Value, Within 1 year | 1,015 |
Held-to-maturity, Fair Value, After 1 year through 5 years | 24,470 |
Held-to-maturity, Fair Value, After 5 years through 10 years | 3,889 |
Held-to-maturity, Fair Value, After 10 years | 40,333 |
Held-to-maturity, Fair Value | $ 69,707 |
Investments in Securities - Add
Investments in Securities - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) Age Security | Dec. 31, 2021 USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||
Sale of securities | $ | $ 0 | $ 0 |
Debt securities issued by U.S. government-sponsored enterprises | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of securities | Security | 4 | |
Percentage of unrealized losses with aggregate depreciation | 6.80% | |
Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of securities | 53 | |
Percentage of unrealized losses with aggregate depreciation | 12% | |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of securities | 7 | |
Percentage of unrealized losses with aggregate depreciation | 9% | |
US Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of securities | 1 | |
Percentage of unrealized losses with aggregate depreciation | 3.20% | |
FHLB | Loans Pledged | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Pledged securities | $ | $ 63,000,000 | $ 0 |
Investments in Securities - Agg
Investments in Securities - Aggregate Fair Value and Unrealized Losses of Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 37,022 | $ 31,562 |
Less than 12 Months, Unrealized Losses | (2,468) | (449) |
12 Months or Longer, Fair Value | 29,756 | 6,779 |
12 Months or Longer, Unrealized Losses | (5,425) | (185) |
Fair Value, Total | 66,778 | 38,341 |
Unrealized Losses, Total | (7,893) | (634) |
Debt Securities Issued by U.S. Government-Sponsored Enterprises | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 2,847 | 2,919 |
Less than 12 Months, Unrealized Losses | (40) | (73) |
12 Months or Longer, Fair Value | 5,046 | 2,520 |
12 Months or Longer, Unrealized Losses | (538) | (69) |
Fair Value, Total | 7,893 | 5,439 |
Unrealized Losses, Total | (578) | (142) |
Mortgage-backed Securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 20,795 | 28,643 |
Less than 12 Months, Unrealized Losses | (1,294) | (376) |
12 Months or Longer, Fair Value | 24,710 | 4,259 |
12 Months or Longer, Unrealized Losses | (4,887) | (116) |
Fair Value, Total | 45,505 | 32,902 |
Unrealized Losses, Total | (6,181) | $ (492) |
Corporate Bonds | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 10,571 | |
Less than 12 Months, Unrealized Losses | (1,041) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Losses | 0 | |
Fair Value, Total | 10,571 | |
Unrealized Losses, Total | (1,041) | |
US Treasury Securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 2,809 | |
Less than 12 Months, Unrealized Losses | (93) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Losses | 0 | |
Fair Value, Total | 2,809 | |
Unrealized Losses, Total | $ (93) |
Loans, Allowance for Loan Los_3
Loans, Allowance for Loan Losses and Credit Quality - Schedule of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 893,132 | $ 521,800 | |
Net deferred loan fees | (258) | (433) | |
Allowance for loan losses | 7,200 | 4,236 | $ 3,876 |
Total loans, net | $ 885,674 | $ 517,131 | |
Total loans, gross percent | 100% | 100% | |
Real Estate Loans | Home Equity Lines of Credit and Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 27,783 | $ 26,050 | |
Allowance for loan losses | $ 194 | $ 185 | 208 |
Total loans, gross percent | 3.10% | 5% | |
Real Estate Loans | One-to Four Family Residential | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 355,381 | $ 259,673 | |
Total loans, gross percent | 39.80% | 49.80% | |
Real Estate Loans | Multi Family | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 241,951 | $ 59,517 | |
Allowance for loan losses | $ 1,839 | $ 417 | 266 |
Total loans, gross percent | 27.10% | 11.40% | |
Real Estate Loans | Commercial Real Estate Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 156,212 | $ 99,953 | |
Allowance for loan losses | $ 1,797 | $ 1,099 | 1,175 |
Total loans, gross percent | 17.50% | 19.20% | |
Real Estate Loans | Construction | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 107,317 | $ 70,668 | |
Allowance for loan losses | $ 1,286 | $ 855 | 802 |
Total loans, gross percent | 12% | 13.50% | |
Other Loans | Commercial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 4,266 | $ 5,439 | |
Allowance for loan losses | $ 60 | $ 60 | 103 |
Total loans, gross percent | 0.50% | 1% | |
Other Loans | Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, gross | $ 222 | $ 500 | |
Allowance for loan losses | $ 1 | $ 2 | $ 4 |
Total loans, gross percent | 0% | 0.10% |
Loans, Allowance for Loan Los_4
Loans, Allowance for Loan Losses and Credit Quality - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Grade | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule Of Loans Allowance For Loan Losses And Credit Quality [Line Items] | |||
Total outstanding loan balances | $ 943,000 | $ 1,257,000 | $ 1,268,000 |
Troubled debt restructuring | 0 | 0 | |
TDR loans, subsequently defaulted within one year | 0 | 0 | |
Commitment to lend additional funds to borrowers | $ 0 | 0 | |
Number of Internal Loan Rating Grades | Grade | 7 | ||
FHLB | Loans Pledged | |||
Schedule Of Loans Allowance For Loan Losses And Credit Quality [Line Items] | |||
Carrying value of loans pledged | $ 333,500,000 | 176,200,000 | |
Commercial And Industrial Loans | |||
Schedule Of Loans Allowance For Loan Losses And Credit Quality [Line Items] | |||
Threshold limit for loans receivable | 500,000 | ||
Other Commercial Loans | |||
Schedule Of Loans Allowance For Loan Losses And Credit Quality [Line Items] | |||
Threshold limit for loans receivable | 1,000,000 | ||
Residential Real Estate | |||
Schedule Of Loans Allowance For Loan Losses And Credit Quality [Line Items] | |||
Mortgage loans in process of foreclosure | $ 243,000 | $ 243,000 |
Loans, Allowance for Loan Los_5
Loans, Allowance for Loan Losses and Credit Quality - Summary of Activity for Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Beginning Balance | $ 1,257,000 | $ 1,268,000 |
Advances | 375,000 | 887,000 |
Paydowns | (689,000) | (898,000) |
Ending Balance | $ 943,000 | $ 1,257,000 |
Loans, Allowance for Loan Los_6
Loans, Allowance for Loan Losses and Credit Quality - Schedule of Information Regarding Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for loan losses | ||
Beginning balance | $ 4,236 | $ 3,876 |
Charge-offs | (2) | (1) |
Recoveries | 26 | 1 |
Provision (benefit) | 2,940 | 360 |
Ending balance | 7,200 | 4,236 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 7,200 | 4,236 |
Total allowance for loan losses ending balance | 7,200 | 4,236 |
Individually evaluated for impairment | 656 | 982 |
Collectively evaluated for impairment | 892,476 | 520,818 |
Total Loans | 893,132 | 521,800 |
Commercial Loans | ||
Allowance for loan losses | ||
Total Loans | 4,266 | 5,439 |
Consumer | ||
Allowance for loan losses | ||
Total Loans | 222 | 500 |
Real Estate | Home Equity Lines of Credit and Loans | ||
Allowance for loan losses | ||
Beginning balance | 185 | 208 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (benefit) | 9 | (23) |
Ending balance | 194 | 185 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 194 | 185 |
Total allowance for loan losses ending balance | 194 | 185 |
Individually evaluated for impairment | 0 | 99 |
Collectively evaluated for impairment | 27,783 | 25,951 |
Total Loans | 27,783 | 26,050 |
Real Estate | One- to Four-Family Residential | ||
Allowance for loan losses | ||
Beginning balance | 1,271 | 1,167 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (benefit) | 432 | 104 |
Ending balance | 1,703 | 1,271 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,703 | 1,271 |
Total allowance for loan losses ending balance | 1,703 | 1,271 |
Individually evaluated for impairment | 656 | 883 |
Collectively evaluated for impairment | 354,725 | 258,790 |
Total Loans | 355,381 | 259,673 |
Real Estate | Multi Family | ||
Allowance for loan losses | ||
Beginning balance | 417 | 266 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (benefit) | 1,422 | 151 |
Ending balance | 1,839 | 417 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,839 | 417 |
Total allowance for loan losses ending balance | 1,839 | 417 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 241,951 | 59,517 |
Total Loans | 241,951 | 59,517 |
Real Estate | Commercial | ||
Allowance for loan losses | ||
Beginning balance | 1,099 | 1,175 |
Charge-offs | 0 | 0 |
Recoveries | 25 | 0 |
Provision (benefit) | 673 | (76) |
Ending balance | 1,797 | 1,099 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,797 | 1,099 |
Total allowance for loan losses ending balance | 1,797 | 1,099 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 156,212 | 99,953 |
Total Loans | 156,212 | 99,953 |
Real Estate | Construction | ||
Allowance for loan losses | ||
Beginning balance | 855 | 802 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (benefit) | 431 | 53 |
Ending balance | 1,286 | 855 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,286 | 855 |
Total allowance for loan losses ending balance | 1,286 | 855 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 107,317 | 70,668 |
Total Loans | 107,317 | 70,668 |
Other Loans | Commercial Loans | ||
Allowance for loan losses | ||
Beginning balance | 60 | 103 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (benefit) | 0 | (43) |
Ending balance | 60 | 60 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 60 | 60 |
Total allowance for loan losses ending balance | 60 | 60 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 4,266 | 5,439 |
Total Loans | 4,266 | 5,439 |
Other Loans | Consumer | ||
Allowance for loan losses | ||
Beginning balance | 2 | 4 |
Charge-offs | (2) | (1) |
Recoveries | 1 | 1 |
Provision (benefit) | 0 | (2) |
Ending balance | 1 | 2 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1 | 2 |
Total allowance for loan losses ending balance | 1 | 2 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 222 | 500 |
Total Loans | 222 | 500 |
Other Loans | Unallocated | ||
Allowance for loan losses | ||
Beginning balance | 347 | 151 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (benefit) | (27) | 196 |
Ending balance | 320 | 347 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 320 | 347 |
Total allowance for loan losses ending balance | 320 | 347 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total Loans | $ 0 | $ 0 |
Loans, Allowance for Loan Los_7
Loans, Allowance for Loan Losses and Credit Quality - Schedule of Information Regarding Nonaccrual Loans and Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | $ 893,132 | $ 521,800 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 656 | 982 |
30–59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 100 |
60–89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 88 |
90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 189 | 817 |
Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 189 | 1,005 |
Total Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 892,943 | 520,795 |
Commercial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 4,266 | 5,439 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 222 | 500 |
Real Estate Loans | Home Equity Lines of Credit and Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 27,783 | 26,050 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 0 | 99 |
Real Estate Loans | 30–59 Days | Home Equity Lines of Credit and Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 99 |
Real Estate Loans | 60–89 Days | Home Equity Lines of Credit and Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | 90 Days or More | Home Equity Lines of Credit and Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Total Past Due | Home Equity Lines of Credit and Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 99 |
Real Estate Loans | Total Current | Home Equity Lines of Credit and Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 27,783 | 25,951 |
Real Estate Loans | Residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 355,381 | 259,673 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 656 | 883 |
Real Estate Loans | Residential | 30–59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Residential | 60–89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 88 |
Real Estate Loans | Residential | 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 189 | 817 |
Real Estate Loans | Residential | Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 189 | 905 |
Real Estate Loans | Residential | Total Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 355,192 | 258,768 |
Real Estate Loans | Multi Family | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 241,951 | 59,517 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 0 | 0 |
Real Estate Loans | Multi Family | 30–59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Multi Family | 60–89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Multi Family | 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Multi Family | Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Multi Family | Total Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 241,951 | 59,517 |
Real Estate Loans | Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 156,212 | 99,953 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | 30–59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | 60–89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | Total Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 156,212 | 99,953 |
Real Estate Loans | Construction | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 107,317 | 70,668 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 0 | 0 |
Real Estate Loans | Construction | 30–59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Construction | 60–89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Construction | 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Construction | Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Construction | Total Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 107,317 | 70,668 |
Other Loans | Commercial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 4,266 | 5,439 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 0 | 0 |
Other Loans | Commercial Loans | 30–59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Other Loans | Commercial Loans | 60–89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Other Loans | Commercial Loans | 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Other Loans | Commercial Loans | Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | |
Loans on Non-accrual | 0 | |
Other Loans | Commercial Loans | Total Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 4,266 | 5,439 |
Other Loans | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 222 | 500 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 0 | 0 |
Other Loans | Consumer | 30–59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 1 |
Other Loans | Consumer | 60–89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Other Loans | Consumer | 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Other Loans | Consumer | Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 0 | 1 |
Other Loans | Consumer | Total Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | $ 222 | $ 499 |
Loans, Allowance for Loan Los_8
Loans, Allowance for Loan Losses and Credit Quality - Schedule of Information About Impaired Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Recorded Investment | ||
Total impaired with no related allowance | $ 656 | $ 982 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 656 | 982 |
Unpaid Principal Balance | ||
Total impaired with no related allowance | 656 | 982 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 656 | 982 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with no related allowance | 710 | 1,786 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 710 | 1,786 |
Interest Income Recognized | ||
Total impaired with no related allowance | 51 | 69 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 51 | 69 |
Real Estate Loans | Home Equity Lines of Credit and Loans | ||
Recorded Investment | ||
Total impaired with no related allowance | 0 | 99 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | 99 |
Unpaid Principal Balance | ||
Total impaired with no related allowance | 0 | 99 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | 99 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with no related allowance | 25 | 99 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 25 | 99 |
Interest Income Recognized | ||
Total impaired with no related allowance | 1 | 3 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 1 | 3 |
Real Estate Loans | Residential | ||
Recorded Investment | ||
Total impaired with no related allowance | 656 | 883 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 656 | 883 |
Unpaid Principal Balance | ||
Total impaired with no related allowance | 656 | 883 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 656 | 883 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with no related allowance | 685 | 1,172 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 685 | 1,172 |
Interest Income Recognized | ||
Total impaired with no related allowance | 50 | 32 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 50 | 32 |
Real Estate Loans | Multi Family | ||
Recorded Investment | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Unpaid Principal Balance | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Interest Income Recognized | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | ||
Recorded Investment | ||
Total impaired with no related allowance | 0 | |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | |
Unpaid Principal Balance | ||
Total impaired with no related allowance | 0 | |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with no related allowance | 0 | 513 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | 513 |
Interest Income Recognized | ||
Total impaired with no related allowance | 0 | 34 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | 34 |
Real Estate Loans | Construction | ||
Recorded Investment | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Unpaid Principal Balance | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Interest Income Recognized | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 0 |
Real Estate Loans | Commercial Loans | ||
Recorded Investment | ||
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | |
Unpaid Principal Balance | ||
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with a related allowance | 0 | |
Interest Income Recognized | ||
Total impaired with a related allowance | 0 | |
Other Loans | Commercial Real Estate Loans | ||
Unpaid Principal Balance | ||
Related Allowance | 0 | |
Other Loans | Commercial Loans | ||
Recorded Investment | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | 0 |
Unpaid Principal Balance | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | |
Total impaired loans | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
Total impaired with no related allowance | 0 | 2 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | 0 | 2 |
Interest Income Recognized | ||
Total impaired with no related allowance | 0 | 0 |
Total impaired with a related allowance | 0 | 0 |
Total impaired loans | $ 0 | $ 0 |
Loans, Allowance for Loan Los_9
Loans, Allowance for Loan Losses and Credit Quality - Summary of Loans by Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Impaired [Line Items] | ||
Total Loans | $ 893,132 | $ 521,800 |
Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 572,513 | 264,669 |
Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 467 | 1,563 |
Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 320,152 | 255,568 |
Commercial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 4,266 | 5,439 |
Commercial Loans | Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 4,266 | 5,339 |
Commercial Loans | Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 100 |
Commercial Loans | Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Loans | Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Loans | Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 222 | 500 |
Consumer | Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 222 | 500 |
Real Estate Loans | Home Equity Lines of Credit and Loans | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 27,783 | 26,050 |
Real Estate Loans | Home Equity Lines of Credit and Loans | Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 2,995 | 624 |
Real Estate Loans | Home Equity Lines of Credit and Loans | Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 99 |
Real Estate Loans | Home Equity Lines of Credit and Loans | Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Home Equity Lines of Credit and Loans | Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Home Equity Lines of Credit and Loans | Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 24,788 | 25,327 |
Real Estate Loans | Residential | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 355,381 | 259,673 |
Real Estate Loans | Residential | Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 63,817 | 34,613 |
Real Estate Loans | Residential | Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 467 | 970 |
Real Estate Loans | Residential | Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Residential | Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Residential | Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 291,097 | 224,090 |
Real Estate Loans | Multi Family | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 241,951 | 59,517 |
Real Estate Loans | Multi Family | Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 241,951 | 59,517 |
Real Estate Loans | Multi Family | Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Multi Family | Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Multi Family | Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Multi Family | Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 156,212 | 99,953 |
Real Estate Loans | Commercial Real Estate Loans | Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 156,212 | 99,953 |
Real Estate Loans | Commercial Real Estate Loans | Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate Loans | Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Construction | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 107,317 | 70,668 |
Real Estate Loans | Construction | Pass | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 103,272 | 64,623 |
Real Estate Loans | Construction | Special Mention | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 394 |
Real Estate Loans | Construction | Substandard | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Construction | Doubtful | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | 0 | 0 |
Real Estate Loans | Construction | Loans Not Formally Rated | ||
Financing Receivable Impaired [Line Items] | ||
Total Loans | $ 4,045 | $ 5,651 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 8,148 | $ 7,932 |
Accumulated depreciation and amortization | (4,450) | (4,148) |
Net premises and equipment | 3,698 | 3,784 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 594 | 594 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 5,699 | 5,691 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 301 | 240 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 1,554 | $ 1,407 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 302,000 | $ 300,000 |
Deposits Additional Information
Deposits Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deposit Liability [Line Items] | ||
Time deposit accounts in denominations of federally insured | $ 250,000 | |
Time deposits accounts in denominations at or Above FDIC Insurance Limit | 98,419,000 | $ 88,836,000 |
Brokered time deposits | 100,842,000 | $ 19,868,000 |
Maximum | ||
Deposit Liability [Line Items] | ||
Brokered time deposits | $ 250,000 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities Of Time Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Deposits [Abstract] | |
2023 | $ 183,382 |
2024 | 48,801 |
2025 | 55,417 |
2026 | 15,093 |
2027 | 17,154 |
Total | $ 319,847 |
Borrowings - Summary of Maturit
Borrowings - Summary of Maturities of Advances from FHLB (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Outstanding amount year one | $ 55,000 | |
Outstanding amount year two | 5,000 | |
Outstanding amount year three | $ 5,000 | |
Outstanding amount year four | 4,000 | |
Outstanding amount year five | 110,000 | 4,000 |
Total outstanding | $ 174,000 | $ 9,000 |
Weighted average contractual rate year one | 4.37% | |
Weighted average contractual rate year two | 1.69% | |
Weighted average contractual rate year three | 1.69% | |
Weighted average contractual rate year four | 0.82% | |
Weighted average contractual rate year five | 3.76% | 0.82% |
Weighted average contractual rate | 3.83% | 1.30% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
FHLB | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 2,199,000 | $ 2,199,000 |
Available borrowing capacity | 84,757,000 | $ 112,450,000 |
Atlantic Community Bankers Bank | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 10,000,000 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on FHLB advances | 4.38% | 1.69% |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on FHLB advances | 0.82% | 0.82% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 12 Months Ended | |||||||
Jul. 27, 2022 USD ($) shares | Jan. 01, 2018 | Sep. 18, 2017 | Jan. 01, 2017 | Dec. 31, 2022 USD ($) Age shares | Dec. 31, 2021 USD ($) | May 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Eligible age of employee to participate in defined benefit plan | Age | 21 | |||||||
Eligible year of service period for employee participation | 1 year | |||||||
Eligible year of service period for employee to become vested | 6 years | |||||||
Defined benefit plan liability related to withdrawal | $ 0 | $ 2,001,000 | $ 1,419,000 | |||||
Increase (decrease) in defined benefit plan | 582,000 | |||||||
Defined contribution plan, employee incentive plan expense | $ 1,302,000 | 662,000 | ||||||
Amount borrowed under ESOP | $ 7,300,000 | |||||||
Shares purchased under ESOP | shares | 734,020 | 734,020 | ||||||
ESOP loan term | 20 years | |||||||
ESOP interest rate | 4.75% | |||||||
Total compensation expense | $ 559,000 | 0 | ||||||
Director | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Percentage of director fees | 100% | |||||||
Percentage of vested deferred fees and interest | 100% | |||||||
Deferred compensation liability | $ 592,000 | 479,000 | ||||||
Supplemental Executive Retirement Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan, pension expense | 101,000 | 130,000 | ||||||
Accumulated benefit obligation | 1,156,000 | 1,437,000 | $ 1,539,000 | |||||
Unfunded status | 1,156,000 | 1,437,000 | ||||||
Supplemental Executive Retirement Plan | Other Liabilities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Accumulated benefit obligation | 1,156,000 | 1,437,000 | ||||||
Unfunded status | 1,156,000 | 1,437,000 | ||||||
Director Fee Continuation Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan, pension expense | 128,000 | 176,000 | ||||||
Defined benefit plan, vesting percentage | 100% | |||||||
Accumulated benefit obligation | 689,000 | 791,000 | $ 822,000 | |||||
Unfunded status | 689,000 | 791,000 | ||||||
Director Fee Continuation Plan | Other Liabilities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Accumulated benefit obligation | 689,000 | 791,000 | ||||||
Unfunded status | 689,000 | 791,000 | ||||||
Supplemental Executive Retirement Agreement | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Liability related expense, to withdrawal | 3,081,000 | 2,332,000 | ||||||
Defined benefit plan, pension expense | 749,000 | $ 869,000 | ||||||
Defined benefit plan, employer matching contribution, percent of employees' compensation | 60% | |||||||
Defined benefit plan, vesting percentage | 100% | |||||||
Defined benefit payment period | 10 years | |||||||
Executive Deferred Compensation Agreement | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Percentage of contribution | 10% | |||||||
Deferred compensation plan | 34,600 | $ 33,200 | ||||||
Survivor Benefit Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan, pension expense | $ 166,000 | 0 | ||||||
Number of years of compensation | 2 years | |||||||
401(k) Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Minimum percentage of voluntary contributions by participating employees | 1% | |||||||
Maximum percentage of voluntary contributions by participating employees | 75% | |||||||
Defined contribution plan, employer matching contribution, percent of match | 100% | |||||||
Defined contribution plan, employer matching contribution, percent of employees' compensation | 7% | |||||||
Defined contribution plan, pension expense | $ 362,000 | $ 265,000 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Information about SERP and DFCP (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SERP | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | $ 1,437 | $ 1,539 |
Service cost | $ 17 | $ 18 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense |
Interest cost | $ 34 | $ 29 |
Actuarial gain | (232) | (49) |
Benefits paid | (100) | (100) |
Benefit obligation at end of year | 1,156 | 1,437 |
Funded status | (1,156) | (1,437) |
DFCP | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | 791 | 822 |
Service cost | $ 101 | $ 105 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense |
Interest cost | $ 17 | $ 12 |
Actuarial gain | (180) | (108) |
Benefits paid | (40) | (40) |
Benefit obligation at end of year | 689 | 791 |
Funded status | $ (689) | $ (791) |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net (gain) loss | $ (207) | $ 75 |
DFCP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net (gain) loss | $ (128) | $ 60 |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.86% | 2.42% |
DFCP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.77% | 2.15% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Net Periodic Cost and Other Comprehensive (Income) Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SERP | ||
Components of net periodic cost | ||
Service cost | $ 17 | $ 18 |
Interest cost | 34 | 29 |
Amortization of net actuarial loss | $ 50 | $ 83 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Net periodic cost | $ 101 | $ 130 |
Other changes in benefit obligations recognized as other comprehensive (income) loss: | ||
Net actuarial gain | (232) | (49) |
Amortization of net actuarial loss | (50) | (83) |
Total other comprehensive income | (282) | (132) |
Total net periodic cost and other comprehensive income | (181) | (2) |
DFCP | ||
Components of net periodic cost | ||
Service cost | 101 | 105 |
Interest cost | 17 | 12 |
Amortization of net actuarial loss | $ 10 | $ 59 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Net periodic cost | $ 128 | $ 176 |
Other changes in benefit obligations recognized as other comprehensive (income) loss: | ||
Net actuarial gain | (180) | (108) |
Amortization of net actuarial loss | (10) | (59) |
Total other comprehensive income | (190) | (167) |
Total net periodic cost and other comprehensive income | $ (62) | $ 9 |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary of Assumptions Used to Determine Net Periodic Cost (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.42% | 1.95% |
DFCP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.15% | 1.59% |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 100 |
2024 | 105 |
2025 | 110 |
2026 | 109 |
2027 | 108 |
Years 2028 through 2032 | 515 |
DFCP | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 40 |
2024 | 40 |
2025 | 60 |
2026 | 60 |
2027 | 100 |
Years 2028 through 2032 | $ 460 |
Employee Benefit Plans - Summ_5
Employee Benefit Plans - Summary of Share information held by the ESOP (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jul. 27, 2022 |
Defined Benefit Plan [Abstract] | ||
Allocated shares | 36,701 | |
Unallocated shares | 697,319 | |
Total shares | 734,020 | 734,020 |
Fair value of unallocated shares | $ 11,192 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | ||
Federal | $ 1,582 | $ 1,757 |
State | 696 | 789 |
Total | 2,278 | 2,546 |
Deferred: | ||
Federal | (1,017) | (759) |
State | (485) | (358) |
Total | (1,502) | (1,117) |
Total income tax expense | $ 776 | $ 1,429 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between Statutory Federal Income Tax Rate and Effective Tax Rates (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory tax rates | 21% | 21% |
Increase (decrease) in tax resulting from: | ||
State tax, net of federal tax benefit | 4.80% | 6.20% |
Bank-owned life insurance | (5.00%) | (1.40%) |
Share based compensation | 1.20% | |
Other, net | 0.20% | 0.30% |
Effective tax rates | 22.20% | 26.10% |
Income Taxes - Schedule of Gros
Income Taxes - Schedule of Gross Deferred Tax Assets and Gross Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,137 | $ 1,257 |
Employee benefit plans | 1,988 | 1,970 |
Unrecognized employee benefit costs under ASC 715-10 | 38 | |
Interest on non-performing loans | 2 | 8 |
Charitable contribution carryover | 682 | |
Gross deferred tax assets | 4,809 | 3,273 |
Deferred tax liabilities: | ||
Depreciation | (296) | (280) |
Unrecognized employee benefit costs under ASC 715-10 | (94) | |
Net deferred loan costs | (59) | (16) |
ESOP | (13) | |
Net unrealized holding gain on available-for-sale securities | (3) | (6) |
Gross deferred tax liabilities | (465) | (302) |
Net deferred tax asset | $ 4,344 | $ 2,971 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Examination [Line Items] | ||
Income tax reserve for loan losses at Bank's base year | $ 1,876,000 | $ 1,876,000 |
Percentage of amount actually used net of reserve subject to taxation | 150% | 150% |
Deferred tax liability | $ 527,000 | $ 527,000 |
Charitable contribution carryover | 682,000 | |
Valuation Allowance | 0 | |
December 31, 2027 | ||
Income Tax Examination [Line Items] | ||
Charitable contribution carryover | $ 2,412,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||
Initial lease expiration term | 2023-02 | |||
Lease, option to extend | five year | |||
Description of lease | In February of 2022, the lease was amended to replace the five year option to extend with three options to extend the term of two years, two years and one year. | The initial lease term expires in February 2023 and contains a five year option to extend, as well as a cancellation clause permitting the Bank to cancel the lease anytime during the initial term with sixty days’ notice. | ||
Annual rent of operating lease | $ 48,000 | |||
Annual tenant improvement credit amount | $ (18,000) | |||
Net annual rent of operating lease | $ 30,000 | $ 28,000 | ||
Director | ||||
Related Party Transaction [Line Items] | ||||
Fees for loan closings and related matters | 307,000 | 305,000 | ||
Law firm | ||||
Related Party Transaction [Line Items] | ||||
Fees for loan closings and related matters | $ 145,000 | $ 253,000 | ||
New Lease Agreement | ||||
Related Party Transaction [Line Items] | ||||
Description of lease | during February 2022, a new lease agreement was entered into with the related party for additional office space. The initial lease term expired in February 2023 and contains three options to extend the term of two years, two years and one year. The first two year option was exercised during 2022. | |||
Annual rent of operating lease | $ 21,000 | |||
Net annual rent of operating lease | $ 18,000 | |||
Option 1 | ||||
Related Party Transaction [Line Items] | ||||
Lease, option to extend | two years | |||
Option 1 | New Lease Agreement | ||||
Related Party Transaction [Line Items] | ||||
Lease, option to extend | two years | |||
Option 2 | ||||
Related Party Transaction [Line Items] | ||||
Lease, option to extend | two years | |||
Option 2 | New Lease Agreement | ||||
Related Party Transaction [Line Items] | ||||
Lease, option to extend | two years | |||
Option 3 | ||||
Related Party Transaction [Line Items] | ||||
Lease, option to extend | one year | |||
Option 3 | New Lease Agreement | ||||
Related Party Transaction [Line Items] | ||||
Lease, option to extend | one year |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | $ 5,001 | $ 5,010 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | 5,001 | 5,010 |
Fair Value, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | 5,001 | 5,010 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | 5,001 | 5,010 |
Fair Value, Recurring | Significant Unobservable Inputs Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | 0 | 0 |
Fair Value, Recurring | Corporate Bonds | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | 0 | 0 |
Fair Value, Recurring | Corporate Bonds | Significant Other Observable Inputs Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | 5,001 | 5,010 |
Fair Value, Recurring | Corporate Bonds | Significant Unobservable Inputs Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available for-sale-securities | $ 0 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis or Non-Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity securities | $ 69,707 | $ 65,556 |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 62,050 | 52,975 |
Interest bearing time deposits | 300 | |
Held-to-maturity securities | 77,591 | 65,571 |
Federal Home Loan Bank stock | 7,293 | 1,087 |
Loans, net | 885,674 | 517,131 |
Loans held-for-sale | 1,301 | |
Accrued interest receivable | 2,632 | 1,481 |
Bank-owned life insurance | 14,067 | 14,135 |
Deposits, other than certificates of deposit | 398,302 | 344,934 |
Certificates of deposit | 319,847 | 226,820 |
Federal Home Loan Bank advances | 174,000 | 9,000 |
Accrued interest payable | 736 | 49 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 62,050 | 52,975 |
Interest bearing time deposits | 300 | |
Held-to-maturity securities | 69,707 | 65,556 |
Federal Home Loan Bank stock | 7,293 | 1,087 |
Loans, net | 841,271 | 517,167 |
Loans held-for-sale | 1,322 | |
Accrued interest receivable | 2,632 | 1,481 |
Bank-owned life insurance | 14,067 | 14,135 |
Deposits, other than certificates of deposit | 398,302 | 344,934 |
Certificates of deposit | 310,943 | 227,265 |
Federal Home Loan Bank advances | 172,427 | 8,969 |
Accrued interest payable | 736 | 49 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 62,050 | 52,975 |
Interest bearing time deposits | 0 | |
Held-to-maturity securities | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 0 | 0 |
Loans held-for-sale | 0 | |
Accrued interest receivable | 2,632 | 1,481 |
Bank-owned life insurance | 0 | 0 |
Deposits, other than certificates of deposit | 0 | 0 |
Certificates of deposit | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Accrued interest payable | 736 | 49 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing time deposits | 300 | |
Held-to-maturity securities | 69,707 | 65,556 |
Federal Home Loan Bank stock | 7,293 | 1,087 |
Loans, net | 0 | 0 |
Loans held-for-sale | 1,322 | |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 14,067 | 14,135 |
Deposits, other than certificates of deposit | 398,302 | 344,934 |
Certificates of deposit | 310,943 | 227,265 |
Federal Home Loan Bank advances | 172,427 | 8,969 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing time deposits | 0 | |
Held-to-maturity securities | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 841,271 | 517,167 |
Loans held-for-sale | 0 | |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Deposits, other than certificates of deposit | 0 | 0 |
Certificates of deposit | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Maximum potential amount of bank obligation | $ 13,000 | $ 13,000 |
Letter of credit outstanding term | 1 year | |
Allowance for off balance sheet loan losses | $ 402,000 | $ 235,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Financial Instrument Liabilities Represent Off-Balance Sheet Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Off-balance-sheet, credit risk | $ 196,541 | $ 107,571 |
Commitments To Originate Loans | ||
Loss Contingencies [Line Items] | ||
Off-balance-sheet, credit risk | 37,220 | 24,658 |
Commitment To Purchase Loans | ||
Loss Contingencies [Line Items] | ||
Off-balance-sheet, credit risk | 6,653 | 0 |
Unadvanced Funds On Lines Of Credit | ||
Loss Contingencies [Line Items] | ||
Off-balance-sheet, credit risk | 80,224 | 45,548 |
Unadvanced Funds on Construction Loans | ||
Loss Contingencies [Line Items] | ||
Off-balance-sheet, credit risk | 72,431 | 37,352 |
Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Off-balance-sheet, credit risk | $ 13 | $ 13 |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Components of Other Comprehensive Income and Related Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income, net of tax | $ 332 | $ 197 |
Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications, before tax | (10) | (25) |
Other comprehensive income (loss), before tax | (10) | (25) |
Income tax (expense) benefit | 3 | 7 |
Other comprehensive income, net of tax | (7) | (18) |
Supplemental Executive Retirement Plan | Net Actuarial Gain (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications, before tax | 232 | 49 |
Reclassification adjustment, before tax | 50 | 83 |
Other comprehensive income (loss), before tax | 282 | 132 |
Income tax (expense) benefit | (79) | (37) |
Other comprehensive income, net of tax | 203 | 95 |
Director Fee Continuation Plan | Net Actuarial Gain (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications, before tax | 179 | 108 |
Reclassification adjustment, before tax | 10 | 59 |
Other comprehensive income (loss), before tax | 189 | 167 |
Income tax (expense) benefit | (53) | (47) |
Other comprehensive income, net of tax | $ 136 | $ 120 |
Other Comprehensive Income - _2
Other Comprehensive Income - Schedule of Components of Other Comprehensive Income and Related Tax Effects (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Executive Retirement Plan | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification adjustment for amortization of net actuarial loss, tax expense | $ 14,000 | $ 23,000 |
Director Fee Continuation Plan | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification adjustment for amortization of net actuarial loss, tax expense | $ 3,000 | $ 17,000 |
Other Comprehensive Income - _3
Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized holding gains on securities available-for-sale, net of tax | $ 9 | $ 14 |
Accumulated other comprehensive income (loss) | 249 | (83) |
Supplemental Executive Retirement Plan | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Unrecognized credits (costs), net of tax | 149 | (53) |
Director Fee Continuation Plan | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Unrecognized credits (costs), net of tax | $ 91 | $ (44) |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Company's and Bank's Actual Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Regulated Operations [Abstract] | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 138,023 | $ 81,827 |
Total Capital (to Risk Weighted Assets), Actual Ratio | 0.1640 | 0.1777 |
Total Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 88,386 | $ 48,355 |
Total Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 0.1050 | 0.1050 |
Total Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 84,177 | $ 46,052 |
Total Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 130,421 | $ 77,356 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 0.1549 | 0.1680 |
Tier 1 Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 71,550 | $ 39,144 |
Tier 1 Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 0.0850 | 0.0850 |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 67,342 | $ 36,842 |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 130,421 | $ 77,356 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 0.1549 | 0.1680 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 58,924 | $ 32,236 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 0.0700 | 0.0700 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 54,715 | $ 29,934 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0650 | 0.0650 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 130,421 | $ 77,356 |
Tier 1 Capital (to Average Assets), Actual Ratio | 0.1389 | 0.1183 |
Tier 1 Capital (to Average Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 37,562 | $ 26,164 |
Tier 1 Capital (to Average Assets), Minimum For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 0.0400 | 0.0400 |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 46,953 | $ 32,705 |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) | Dec. 31, 2022 |
Regulated Operations [Abstract] | |
Capital conservation buffer percentage | 0.025 |
Parent Company Financial Stat_3
Parent Company Financial Statements - Statements of Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||
Deferred tax asset, net | $ 4,344 | $ 2,971 | |
Other assets | 1,812 | 1,043 | |
Total assets | 1,064,462 | 666,489 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Other Liabilities | 9,583 | 8,462 | |
Total liabilities | 901,732 | 589,216 | |
Shareholders' equity | 162,730 | 77,273 | $ 73,034 |
Total liabilities and shareholders' equity | 1,064,462 | $ 666,489 | |
Parent Company | |||
ASSETS | |||
Cash | 24,294 | ||
Investment in subsidiary | 130,670 | ||
Loan to Everett Co-operative Bank ESOP | 6,928 | ||
Deferred tax asset, net | 683 | ||
Income taxes receivable | 149 | ||
Other assets | 11 | ||
Total assets | 162,735 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Other Liabilities | 5 | ||
Total liabilities | 5 | ||
Shareholders' equity | 162,730 | ||
Total liabilities and shareholders' equity | $ 162,735 |
Parent Company Financial Stat_4
Parent Company Financial Statements - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Noninterest expense: | ||
Charitable contributions | $ 3,256 | $ 54 |
Other expense | 1,446 | 1,058 |
Total noninterest expense | 18,599 | 14,085 |
Income before income tax expense | 3,496 | 5,471 |
Income tax benefit | 776 | 1,429 |
Loss of parent company | 2,720 | 4,042 |
Equity in undistributed income of subsidiary | 2,720 | |
Net (loss) income | 2,720 | $ 4,042 |
Parent Company | ||
Interest income | ||
Interest on loan | 150 | |
Interest on cash | 155 | |
Total interest income | 305 | |
Noninterest expense: | ||
Charitable contributions | 3,200 | |
Other expense | 62 | |
Total noninterest expense | 3,262 | |
Income before income tax expense | (2,957) | |
Income tax benefit | (831) | |
Loss of parent company | (2,126) | |
Equity in undistributed income of subsidiary | 4,846 | |
Net (loss) income | $ 2,720 |
Parent Company Financial Stat_5
Parent Company Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 09, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 2,720 | $ 4,042 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income tax benefit | (1,502) | (1,117) | |
Issuance of common shares donated to the Everett Co-operative Bank Charitable Foundation | 2,600 | 0 | |
ESOP expense | 559 | 0 | |
Net change in: | |||
Other assets | (769) | (364) | |
Other liabilities | 2,905 | 1,590 | |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | $ 89,200 | 79,246 | 0 |
Net increase in cash and cash equivalents | 9,075 | 9,564 | |
Cash and cash equivalents at beginning of year | 52,975 | 43,411 | |
Cash and cash equivalents at end of year | 62,050 | $ 52,975 | |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 2,720 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiary | (4,846) | ||
Deferred income tax benefit | (683) | ||
Issuance of common shares donated to the Everett Co-operative Bank Charitable Foundation | 2,600 | ||
Net change in: | |||
Other assets | (11) | ||
Income taxes receivable | (149) | ||
Other liabilities | 5 | ||
Net cash provided by operating activities | (364) | ||
Cash flows from investing activities: | |||
ESOP loan, net of principal payments | (6,928) | ||
Capital contribution to Everett Co-operative Bank | (55,000) | ||
Net cash used in investing activities | (61,928) | ||
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 86,586 | ||
Net cash provided by financing activities | 86,586 | ||
Net increase in cash and cash equivalents | 24,294 | ||
Cash and cash equivalents at end of year | $ 24,294 |
EARNINGS PER SHARE ("EPS") (Add
EARNINGS PER SHARE ("EPS") (Additional Information) (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities | 0 | |
Weighted average shares outstanding, basic | 8,456,218 | 0 |
Weighted average shares outstanding, diluted | 8,456,218 | 0 |
EARNINGS PER SHARE ("EPS") - Sc
EARNINGS PER SHARE ("EPS") - Schedule of Earnings per share data (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income applicable to common shares | $ 2,720 | |
Average number of common shares outstanding | 9,175,247 | |
Less: Average unallocated ESOP shares | (719,029) | |
Average number of common shares outstanding used to calculate basic earnings per common share | 8,456,218 | 0 |
Common stock equivalents | 0 | |
Average number of common shares outstanding used to calculate diluted earnings per common share | 8,456,218 | 0 |
Earnings per common share | ||
Basic | $ 0.32 | |
Diluted | $ 0.32 |