Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | First Seacoast Bancorp, Inc. | ||
Entity Central Index Key | 0001943802 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Address, State or Province | NH | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Small Business | true | ||
Trading Symbol | FSEA | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 5,077,164 | ||
Entity Public Float | $ 39.4 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity File Number | 001-41597 | ||
Entity Tax Identification Number | 92-0334805 | ||
Entity Address, Address Line One | 633 Central Avenue | ||
Entity Address, City or Town | Dover | ||
Entity Address, Postal Zip Code | 03820 | ||
City Area Code | 603 | ||
Local Phone Number | 742-4680 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Firm ID | 231 | ||
Auditor Name | Baker Newman & Noyes LLC | ||
Auditor Location | Portsmouth, New Hampshire | ||
Documents Incorporated by Reference | 1. Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Stockholders, scheduled to be held on May 30, 2024, are incorporated by reference into Part II and Part III of this report. | ||
Document Financial Statement Error Correction [Flag] | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
ASSETS | ||||
Cash and due from banks | $ 6,069 | $ 8,250 | ||
Interest bearing time deposits with other banks | 747 | |||
Securities available-for-sale, at fair value | 121,854 | 106,100 | ||
Federal Home Loan Bank stock | 2,986 | 3,502 | ||
Total loans | 430,031 | 402,505 | ||
Less allowance for credit losses on loans | (3,390) | (3,581) | ||
Net loans | 426,641 | 398,924 | ||
Land, building and equipment, net | 4,072 | 4,181 | ||
Bank-owned life insurance | 4,663 | 4,561 | ||
Accrued interest receivable | 2,294 | 1,988 | ||
Other assets | 2,456 | 9,171 | ||
Total assets | 571,035 | 537,424 | ||
Deposits: | ||||
Non-interest bearing deposits | 65,845 | 92,757 | ||
Interest bearing deposits | 338,953 | 289,606 | ||
Total deposits | 404,798 | 382,363 | ||
Advances from Federal Home Loan Bank | 73,007 | 99,397 | ||
Advances from Federal Reserve Bank | 20,000 | |||
Mortgagors’ tax escrow | 640 | 938 | ||
Deferred compensation liability | 2,071 | 1,830 | ||
Other liabilities | 3,901 | 3,559 | ||
Total liabilities | 504,417 | 488,087 | ||
Stockholders' Equity: | ||||
Preferred Stock, $.01 par value, 10,000,000 shares authorized, none issued | ||||
Common Stock, $.01 par value, 90,000,000 shares authorized; 5,192,612 issued and 5,077,164 outstanding at December 31, 2023; and 5,183,536 issued and 5,068,637 outstanding at December 31, 2022 | [1] | 52 | 62 | |
Additional paid-in capital | 52,642 | 26,768 | ||
Retained earnings | 25,597 | 36,248 | ||
Accumulated other comprehensive loss | (5,944) | (9,727) | ||
Treasury stock, at cost: 115,448 and 114,899 shares outstanding as of December 31, 2023 and 2022, respectively | [1] | (1,381) | (1,377) | |
Unearned stock compensation | (4,348) | (2,637) | ||
Total stockholders' equity | 66,618 | 49,337 | [2] | |
Total liabilities and stockholders' equity | $ 571,035 | $ 537,424 | ||
[1] (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. Shares adjusted for conversion of the former First Seacoast Bancorp, MHC. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock par value per share | $ 0.01 | $ 0.01 |
Common stock, number of shares authorized | 90,000,000 | 90,000,000 |
Common stock, number of shares issued | 5,192,612 | 5,183,536 |
Common stock, number of shares outstanding | 5,077,164 | 5,068,637 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Treasury Stock, Shares outstanding | 115,448 | 114,899 |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Interest and dividend income: | |||
Interest and fees on loans | $ 16,896,000 | $ 14,092,000 | |
Interest on debt securities: | |||
Taxable | 1,722,000 | 1,084,000 | |
Non-taxable | 1,735,000 | 1,316,000 | |
Total interest on debt securities | 3,457,000 | 2,400,000 | |
Dividends | 237,000 | 118,000 | |
Total interest and dividend income | 20,590,000 | 16,610,000 | |
Interest expense: | |||
Interest on deposits | 5,371,000 | 701,000 | |
Interest on borrowings | 3,709,000 | 1,046,000 | |
Total interest expense | 9,080,000 | 1,747,000 | |
Net interest and dividend income | 11,510,000 | 14,863,000 | |
Provision for credit losses | 188,000 | ||
Net interest and dividend income after provision for credit losses | 11,322,000 | 14,863,000 | |
Non-interest income: | |||
Customer service fees | 759,000 | 1,039,000 | |
Gain on sale of loans | 2,000 | 2,000 | |
Securities losses, net | (4,173,000) | (747,000) | |
Gain on termination of interest rate swaps | 849,000 | ||
Income from bank-owned life insurance | 102,000 | 100,000 | |
Loan servicing fee income | 77,000 | 126,000 | |
Investment services fees | 332,000 | 328,000 | |
Other income | 45,000 | 40,000 | |
Total non-interest (loss) income | (2,007,000) | 888,000 | |
Non-interest expense: | |||
Salaries and employee benefits | 9,659,000 | 10,673,000 | |
Director compensation | 343,000 | 324,000 | |
Occupancy expense | 758,000 | 732,000 | |
Equipment expense | 456,000 | 488,000 | |
Marketing | 530,000 | 598,000 | |
Data processing | 1,596,000 | 1,400,000 | |
Deposit insurance fees | 257,000 | 154,000 | |
Professional fees and assessments | 1,014,000 | 983,000 | |
Debit card fees | 191,000 | 184,000 | |
Employee travel and education expenses | 208,000 | 198,000 | |
Other expense | 1,015,000 | 1,033,000 | |
Total non-interest expense | 16,027,000 | 16,767,000 | |
Loss before income tax expense (benefit) | (6,712,000) | (1,016,000) | |
Income tax (benefit) expense | 3,944,000 | (451,000) | |
Net loss | $ (10,656,000) | $ (565,000) | |
Loss per share: | |||
Basic | [1] | $ (2.29) | $ (0.12) |
Diluted | [1] | $ (2.29) | $ (0.12) |
Weighted average shares: | |||
Basic | [1] | 4,650,916 | 4,820,330 |
Diluted | [1],[2] | 4,650,916 | 4,820,330 |
[1] (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. (2) Not adjusted for potentially dilutive shares for years where a net loss is recognized. The years ended December 31, 2023 and 2022 exclude 64,786 and 32,393 , respectively, of stock-based awards that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the years presented. |
CONSOLIDATED STATEMENTS OF LO_2
CONSOLIDATED STATEMENTS OF LOSS (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-based Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares that are not included in computation of diluted earnings per share | 64,786 | 32,393 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ (10,656) | $ (565) | |
Other comprehensive income (loss), net of income taxes: | |||
Unrealized holding gains (losses) on securities available-for-sale arising during the year, net of income taxes of $315 and $(4,562) in 2023 and 2022, respectively | [1] | 773 | (12,283) |
Reclassification adjustment for securities losses, net and net amortization of bond premiums included in net loss, net of income taxes of $1,367 and $476 in 2023 and 2022, respectively | [1] | 3,711 | 1,280 |
Total unrealized gain (loss) on securities available-for-sale | [1] | 4,484 | (11,003) |
Change in interest rate swaps, net of income taxes of $(30) and $237 in 2023 and 2022, respectively | [1] | (82) | 639 |
Reclassification adjustment for gains and net interest expense on swaps included in net loss, net of income taxes of $(230) and $31 in 2023 and 2022, respectively | [1] | (619) | (84) |
Total change in interest rate swaps | [1] | (701) | 555 |
Other comprehensive income (loss) | 3,783 | (10,448) | |
Comprehensive loss | $ (6,873) | $ (11,013) | |
[1] (1) Includes a deferred tax valuation allowance equal to the net tax benefit. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gains (losses) on securities available-for-sale arising during the year, income tax | $ 315 | $ (4,562) |
Reclassification adjustment for securities losses, net and net amortization of bond premiums included in net loss, income tax | 1,367 | 476 |
Change in interest rate swaps, income tax | (30) | 237 |
Reclassification adjustment for gains and net interest expense on swaps included in net loss, income tax | $ (230) | $ 31 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Adjustment for Change in Accounting Principle [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member] Cumulative Adjustment for Change in Accounting Principle [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock | Unearned Compensation ESOP [Member] | ||||||||
Beginning Balance at Dec. 31, 2021 | [1] | $ 60,468 | $ 62 | $ 26,783 | $ 36,813 | $ 721 | $ (748) | $ (3,163) | |||||||||
Beginning Balance (shares) at Dec. 31, 2021 | [1] | 5,117,982 | |||||||||||||||
Net Income (Loss) | (565) | (565) | |||||||||||||||
Other comprehensive (loss) income | (10,448) | (10,448) | |||||||||||||||
Treasury stock activity | [1] | (629) | (629) | ||||||||||||||
Treasury stock activity (shares) | [1] | (49,345) | |||||||||||||||
Issuance of stock compensation | 387 | 387 | |||||||||||||||
Amortization of unearned stock compensation | (20) | 20 | |||||||||||||||
ESOP shares earned | [1] | 124 | 5 | 119 | |||||||||||||
Ending Balance at Dec. 31, 2022 | 49,337 | [1] | $ 5 | $ 62 | [1] | 26,768 | [1] | 36,248 | [1] | $ 5 | (9,727) | [1] | (1,377) | [1] | (2,637) | [1] | |
Ending Balance (shares) at Dec. 31, 2022 | [1] | 5,068,637 | |||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member] | |||||||||||||||
Net Income (Loss) | (10,656) | (10,656) | |||||||||||||||
Other comprehensive (loss) income | 3,783 | 3,783 | |||||||||||||||
Treasury stock activity | (4) | (4) | |||||||||||||||
Treasury stock activity (shares) | (549) | ||||||||||||||||
Issuance of stock compensation | 20 | (20) | |||||||||||||||
Issuance of stock compensation (shares) | 2,478 | ||||||||||||||||
Amortization of unearned stock compensation | 399 | 399 | |||||||||||||||
Reorganization: Conversion of First Seacoast Bancorp, Inc. | 25,722 | $ (10) | 25,732 | ||||||||||||||
Reorganization: Conversion of First Seacoast Bancorp, Inc., Shares | 6,598 | ||||||||||||||||
Purchase of common stock by the ESOP | (2,244) | (2,244) | |||||||||||||||
Stock-based compensation expense | 150 | 150 | |||||||||||||||
ESOP shares earned | 126 | (28) | 154 | ||||||||||||||
Ending Balance at Dec. 31, 2023 | $ 66,618 | $ 52 | $ 52,642 | $ 25,597 | $ (5,944) | $ (1,381) | $ (4,348) | ||||||||||
Ending Balance (shares) at Dec. 31, 2023 | 5,077,164 | ||||||||||||||||
[1] Shares adjusted for conversion of the former First Seacoast Bancorp, MHC. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | [1] | |
Statement of Stockholders' Equity [Abstract] | |||
Number of shares committed to be released each year,ESOP | 15,354 | 9,967 | |
Conversion, net of cost | $ 2.4 | ||
Purchase of shares of common stock | 224,400 | ||
[1] Shares adjusted for conversion of the former First Seacoast Bancorp, MHC. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (10,656) | $ (565) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Cumulative change in accounting principle (ASU 2016-13) | 5 | |
ESOP expense | 126 | 124 |
Stock based compensation | 549 | 387 |
Loss on disposition of property and equipment | 2 | |
Depreciation and amortization | 486 | 522 |
Net amortization of bond premium | 904 | 1,009 |
Provision for credit losses | 188 | |
Gain on sale of loans | (2) | (2) |
Securities losses, net | 4,173 | 747 |
Gain on termination of interest rate swaps | (849) | |
Proceeds from loans sold | 419 | 639 |
Origination of loans sold | (417) | (637) |
Increase in bank-owned life insurance | (102) | (100) |
Increase in deferred costs on loans | (183) | (799) |
Deferred tax expense (benefit) | 3,861 | (296) |
Increase in accrued interest receivable | (306) | (489) |
Decrease (increase) in other assets | 440 | (1,483) |
Increase in deferred compensation liability | 241 | 101 |
(Decrease) increase in other liabilities | (794) | 1,815 |
Net cash (used) provided by operating activities | (1,915) | 973 |
Cash flows from investing activities: | ||
Proceeds from sales, calls, maturities and principal payments received on securities available-for-sale | 40,863 | 9,872 |
Purchase of securities available-for-sale | (55,401) | (41,452) |
Purchase of property and equipment | (349) | (103) |
Loan purchases | (4,327) | (3,673) |
Loan originations and principal collections, net | (22,385) | (21,401) |
Net redemption (purchase) of Federal Home Loan Bank stock | 516 | (1,814) |
Proceeds from sales and maturities of interest bearing time deposits with other banks | 747 | 498 |
Proceeds from termination of interest rate swaps | 849 | |
Net cash (used) provided by investing activities | (39,487) | (58,073) |
Cash flows from financing activities: | ||
Net decrease in NOW, demand deposits, money market and savings accounts | (7,121) | (14,293) |
Net increase in time deposits | 29,556 | 3,413 |
(Decrease) increase in mortgagors' escrow accounts | (298) | 286 |
Proceeds from sale of common stock, net | 25,622 | |
Common stock purchased by ESOP | (2,244) | |
Treasury stock activity | (4) | (629) |
Proceeds from advances from Federal Reserve Bank | 45,000 | |
Payments on advances from Federal Reserve Bank | (25,000) | |
Net cash provided (used) by financing activities | 39,221 | 58,712 |
Net change in cash and cash equivalents | (2,181) | 1,612 |
Cash and cash equivalents at beginning of year | 8,250 | 6,638 |
Cash and cash equivalents at end of year | 6,069 | 8,250 |
Cash activities: | ||
Cash paid for interest | 8,794 | 1,685 |
Cash paid for income taxes | 56 | 47 |
Effect of change in fair value of securities available-for-sale: | ||
Securities available-for-sale | 6,167 | (15,089) |
Deferred taxes | (1,683) | 4,086 |
Other comprehensive income (loss) | 4,484 | (11,003) |
Effect of change in fair value of interest rate swaps: | ||
Interest rate swaps | (961) | 761 |
Deferred taxes | 260 | (206) |
Other comprehensive (loss) income | (701) | 555 |
Cumulative fair value hedging adjustment - loans | (632) | |
Cumulative fair value hedging adjustment - securities available-for-sale | (126) | |
First Seacoast Bancorp, Inc [Member] | ||
Cash flows from financing activities: | ||
Return of capital from conversion of former First Seacoast Bancorp, MHC | 100 | |
ASU 2016-02 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Effect of the adoption of ASU | ||
Other assets | 224 | |
Other liabilities | 224 | |
ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Effect of the adoption of ASU | ||
Allowance for credit losses on loans | (295) | |
Other liabilities | 290 | |
Federal Home Loan Bank Advances [Member] | ||
Cash flows from financing activities: | ||
Net (payments) proceeds from short-term FHLB advances | (61,390) | 71,729 |
Proceeds from long-term FHLB advances | 50,000 | 468 |
Payments on long-term FHLB advances | $ (15,000) | $ (2,262) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (10,656) | $ (565) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
The Company
The Company | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | 1. The Company The accompanying consolidated financial statements include the accounts of First Seacoast Bancorp, Inc. (the “Company”), its wholly-owned subsidiary, First Seacoast Bank (the “Bank”) and the Bank’s wholly-owned subsidiary, FSB Service Corporation, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Corporate Structure On January 19, 2023, the conversion of First Seacoast Bancorp, MHC from mutual to stock form and the related stock offering by First Seacoast Bancorp, Inc., the new holding company for First Seacoast Bank, was completed. As a result, both First Seacoast Bancorp, MHC and First Seacoast Bancorp (a federal corporation) ceased to exist. First Seacoast Bancorp, Inc.’s common stock began trading on the Nasdaq Capital Market under the trading symbol “FSEA” on January 20, 2023. As a result of the subscription offering, the community offering and the syndicated community offering, First Seacoast Bancorp, Inc. sold a total of 2,805,000 shares of its common stock at a price of $ 10.00 per share, which includes 224,400 shares sold to First Seacoast Bank’s Employee Stock Ownership Plan. As part of the conversion transaction, each outstanding share of First 0.8358 shares of First Seacoast Bancorp, Inc. common stock for each share of First Seacoast Bancorp (a federal corporation) common stock. The Bank offers a full range of banking and wealth management services to its customers. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations. Investment management services are offered through FSB Wealth Management. FSB Wealth Management is a division of First Seacoast Bank. The division currently consists of two financial advisors who are located in Dover, New Hampshire. FSB Wealth Management provides access to non-FDIC insured products that include retirement planning, portfolio management, investment and insurance strategies, business retirement plans and college planning to individuals throughout our primary market area. These investments and services are offered through a third-party registered broker-dealer and investment advisor. FSB Wealth Management receives fees from advisory services and commissions on individual investment and insurance products purchased by clients. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the Company’s consolidated balance sheets. The Bank is engaged principally in the business of attracting deposits from the public and investing those funds in various types of loans, including residential and commercial real estate loans, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit and Insurance Corporation (“FDIC”) for the maximum amount permitted by law. The Company has one reportable segment, “Banking Services.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and other borrowings and manage interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change relate to the determination of the allowance for credit losses and the valuation of deferred tax assets. Consolidated Statements of Cash Flows For the purpose of reporting cash flows, cash includes cash and due from banks with original maturities of 90 days or less. Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. Securities Available-for-Sale The Company classifies the available-for-sale securities portfolio into the following major security types: U.S. Government-sponsored enterprise obligations, U.S. Government agency small business administration pools guaranteed by SBA, collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA, residential mortgage-backed securities, municipal bonds, corporate debt and corporate subordinated debt. Nearly all of the mortgage-backed securities held by the Company are issued by the U.S. government and its entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a history of no credit losses. The remainder of the residential mortgage-backed securities are non-agency collateralized mortgage obligations which currently carry investment-grade bond ratings. At December 31, 2023, municipal bonds are highly-rated and are issued by state and local governments with minimal credit risk. Available-for-sale securities consist of debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. These assets are carried at fair value. Unrealized holding gains and losses for these assets, net of related deferred income taxes adjusted for valuation allowances, are recorded in and reported as accumulated other comprehensive loss within stockholders’ equity. For debt securities in an unrealized loss position, the Company considers the extent of the unrealized loss and the financial condition and near-term prospects of the issuer. The Company also determines 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 write-down to fair value through a charge to earnings. For all other debt securities, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to this security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount the fair value is less than the amortized cost basis. Losses related to non-credit- related factors will be recorded in other comprehensive loss. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Debt securities are placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual is reversed against interest income. Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. Premiums and discounts are recognized in interest income using the interest method. Discounts are recognized over the period to maturity. Premiums are recognized over the period to call, if applicable. Otherwise, premiums are recognized over the period to maturity. Interest Bearing Time Deposits With Other Banks The Company maintained time deposits with other banks and credit unions, which were fully insured by the FDIC or National Credit Union Administration (“NCUA”). Balances were carried at cost and the time deposits carried terms of up to four years . Federal Home Loan Bank Stock Federal Home Loan Bank (“FHLB”) stock is carried at cost and can only be sold to the FHLB based on its current redemption policies. 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. Based on the most recent analysis of the FHLB, as of December 31, 2023, management deems its investment in FHLB stock to not be impaired. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for credit losses, net deferred loan origination fees/costs on originated loans or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance on a simple interest basis. The accrual of interest on loans is discontinued at the time the loan is 90 days past due or determined to be non-performing, if earlier. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for such loans is reversed against interest income. For payments received on such loans, the interest is accounted for on the cash-basis or recorded as a reduction to loan principal if recovery is not assured, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash receipts of interest income on non-performing 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 non-performing 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 a non-performing 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. Loan Origination Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the consolidated balance sheets with the related loan balances. The amount charged or credited to income is included with the related interest income. Allowance for Credit Losses ("ACL") Effective January 1, 2023 , the Company adopted the new accounting standard for credit losses, ASU No. 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended ("ASU 2016-13" or “ASC 326”)." This new accounting standard, commonly referred to as "CECL," significantly changed the methodology for accounting for reserves on loans and unfunded off-balance sheet credit exposures, including certain unfunded loan commitments and standby guarantees. ASU 2016-13 replaced the "incurred loss" methodology used to establish an allowance on loans and off-balance sheet credit exposures, with an "expected loss" approach. Under CECL, the ACL at each reporting period serves as a best estimate of projected credit losses over the contractual life of certain assets, adjusted for expected prepayments, given an expectation of economic conditions and forecasts as of the valuation date. Upon adoption of CECL, the Company made the following elections regarding accrued interest receivable: (i) present accrued interest receivable balances separately on the balance sheet on the consolidated statements of condition; (ii) exclude accrued interest from the measurement of the ACL, including investments and loans; and (iii) continue to write-off accrued interest receivable by reversing interest income. The Company has a policy in place to write-off accrued interest when a loan is placed on non-accrual. Accrued interest is written-off by reversing previously recorded interest income. For loans, write-off typically occurs when a loan has been in default for 90 days or more. An immaterial amount of accrued interest on non-accrual loans was written off during the year ended December 31, 2023, by reversing interest income. Historically, the Company has not experienced uncollectible accrued interest receivable on its securities available-for-sale. The ACL is the sum of various components including the following: (a) historical loss experience, (b) a reasonable and supportable forecast, (c) loans evaluated individually, and (d) changes in relevant environmental factors. The historical loss component is segmented by loan type and serves as the core of the ACL adequacy methodology. The Company has selected the Weighted Average Remaining Maturity Model (“WARM”), for the loss calculation of each of the Bank’s loan pools utilizing a third-party software application. The WARM uses a quarterly loss rate and future expectations of loan balances to calculate an ACL. A loss rate is applied to pool balances over time. CECL may create more volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures. Under CECL, the ACL may increase or decrease period to period based on many factors, including, but not limited to: (i) macroeconomic forecasts and conditions; (ii) forecast period and reversion speed; (iii) prepayment speed assumption; (iv) loan portfolio volumes and changes in mix; (v) credit quality; and (vi) various qualitative factors outlined in ASU 2016-13. The significant key assumptions used with the ACL calculation at December 31, 2023 using the CECL methodology, included: Macroeconomic factors (loss drivers): Monitoring and assessing local and national unemployment, changes in national GDP and other macroeconomic factors which may be the most predictive indicator of losses within the loan portfolio. The macroeconomic factors considered in determining the ACL may change from time to time. Forecast Period and Reversion speed: ASU 2016-13 requires a company to use a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers. Generally, the forecast period the Company believes to be reasonable and supportable will be set annually and validated through an assessment of economic leading indicators. In periods of greater volatility and uncertainty, such as the current interest rate environment, the Company will likely use a shorter forecast period, whereas when markets, economies, interest rate environment, political matters, and other factors are considered to be more stable and certain, a longer forecast period may be used. Also, in times of greater uncertainty, the Company may consider a range of possible forecasts and evaluate the probability of each scenario. Generally, the forecasted period is expected to range from one to three years. Once the reasonable and supportable forecast period is determined, ASU 2016-13 requires a company to revert its loss expectations to the long-run historical mean for the remainder of the contract life of the asset, adjusted for prepayments. In determining the length of time over which the reversion will take place (i.e., "reversion speed"), factors such as, historical credit loss experience over previous economic cycles, as well as where the Company believes it is within the current economic cycle, will be considered. At December 31, 2023, the Company has chosen a forecast period of four quarters which will be similar to the historical loss period between January 2014 and December 2016 and then reverting to the long-term average over the following two quarters using the straight-line reversion method. The Company believes this historical forecast period to be representative of potential economic conditions over the next eighteen months. Prepayment speeds: Prepayment speeds are determined for each loan segment utilizing the Company's historical loan data, as well as consideration of current environmental factors. The prepayment speed assumption is utilized with the WARM method to forecast expected cash flows over the contractual life of the loan, adjusted for expected prepayments. A higher prepayment speed assumption will drive a lower ACL, and vice versa. Qualitative factors: As within previous accounting guidance used for the "incurred loss" model, ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company continues to consider qualitative factors in determining and arriving at an ACL at each reporting period such as: (i) actual or expected changes in economic trends and conditions, (ii) changes in the value of underlying collateral for loans, (iii) changes to lending policies, underwriting standards and/or management personnel performing such functions, (iv) delinquency and other credit quality trends, (v) credit risk concentrations, if any, (vi) changes to the nature of the Company's business impacting the loan portfolio, (vii) and other external factors, that may include, but are not limited to, results of internal loan reviews and examinations by bank regulatory agencies. Certain loans which may not share similar risk characteristics with other loans in the portfolio may be tested individually for estimated credit losses, including (i) loans classified as special mention, substandard or doubtful and are on non-accrual, (ii) a loan modified for a borrower experiencing financial difficulty or (iii) loans that have other unique characteristics. Factors considered in measuring the extent of the expected credit loss for these loans may include payment status, collateral value, borrower's financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due. The ACL is measured on a collective basis for pools of loans with similar risk characteristics. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Owner occupied commercial real estate mortgage loans - Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business. Non-owner occupied commercial real estate and multi-family real estate loans - These loans represent investment real estate loans secured by office buildings, industrial buildings, warehouses, retail buildings, and multi-family residential housing. Repayment is primarily dependent on lease income generated from the underlying collateral. Consumer real estate mortgage loans - Consumer real estate mortgage consists primarily of loans secured by one- to four-family residential properties, including home equity loans and lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower. Acquisition, development and land loans - Acquisition, development and land loans include loans where the repayment is dependent on the successful completion and eventual sale, refinance or operation of the related real estate project. Acquisition, development and land loans include one- to four-family construction projects and commercial construction or rehabilitation endeavors such as warehouses, apartments, office and retail space and land acquisition and development. Commercial and industrial loans - Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows. Consumer and other loans - Consumer and other loans include all loans issued to individuals, primarily pre-existing Bank customers, not included in the consumer real estate mortgage classification and purchased loans secured by manufactured housing properties. Examples of consumer and other loans are automobile loans and other installment loans extended directly to the borrower. Consumer loans may be unsecured. Repayment is primarily dependent on the personal cash flow of the borrower. The WARM method uses an approach that begins with a quarterly loss rate and applies that rate to the loan pools of financial assets with similar risk characteristics noted above on a periodic basis over time for the remaining life expectation of each loan pool. Due to the Company’s limited loss experience, the Company has chosen to use peer group loss data in the calculation of the quarterly loss rate. A peer group was selected within the third-party software application which includes all banks between $ 300 million and $ 1 billion in asset size located in the northeastern United States. The historical loss component segmented by loan pool serves as the core of the ACL adequacy methodology. The remaining life calculation for each pool is calculated by the third-party software application using an attrition calculator that performs quarterly cohort-based attrition measurements using the actual historical experience of each loan pool. The estimated credit losses for all loan pools are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by the Company but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan portfolios. These adjustments are based upon quarterly trend assessments in portfolio concentrations, policy exceptions, associate retention, independent loan review results, competition and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. Additional qualitative considerations are made for any identified risk which did not exist within the portfolio historically and therefore may not be adequately addressed through evaluation of such risk factor based on historical portfolio trends as previously discussed. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: the Company has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. During the year ended December 31, 2023 , the Company adopted ASU 2022-02 , "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ," which eliminated the accounting guidance for troubled debt restructurings (TDRs) by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The allowance for credit losses on off-balance sheet commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet commitments is recognized as a liability (other liabilities in the consolidated balance sheet), with adjustments to the allowance recognized in the provision for credit losses in the consolidated statements of loss. The allowance for credit losses on off-balance sheet commitments is determined by estimating future draws and applying the expected loss utilization rates are below historical utilization rates, the rate difference is applied to the committed balance to estimate the future draw. Loss rates are estimated by utilizing the same loss rates calculated for the allowance for credit losses general reserves. While policies and procedures used to estimate the ACL, as well as the resultant provision for credit losses charged to loss, are considered adequate by the Company, they are necessarily approximate and imprecise. There are factors beyond the Company's control, such as changes in projected economic conditions, real estate markets or particular industry conditions which may materially impact asset quality and the adequacy of the ACL and thus the resulting provision for credit losses. Prior to the adoption of the new accounting standard for credit losses, the allowance for loan losses ("ALL") consisted of general, allocated and unallocated components. The general component of the ALL was based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: commercial real estate; multifamily; commercial and industrial; acquisition, development and land; one to four family residential; home equity loans and lines of credit and consumer. The Company used a rolling average of historical losses based on a timeframe appropriate to capture relevant loss data for each loan segment. This historical loss factor was adjusted for the following qualitative factors: levels/trends in delinquencies; credit quality trends; portfolio growth trends and concentrations; 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. Under previous accounting guidance, the allocated component related to loans which were classified as impaired. The Company assessed non-accrual loans and certain loans rated substandard or worse for impairment. Generally, impaired loans were collateral-dependent and impairment was measured through the collateral method. When the measurement of the impaired loan was less than the recorded investment in the loan, the impairment was recorded through the ALL. At December 31, 2022, the collateral values of collateral-dependent impaired loans was sufficient and no impairment charge was necessary. The unallocated component was maintained to cover uncertainties that could affect the Company's estimate of probable losses. The unallocated component of the ALL reflected the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Prior to January 1, 2023, when a loan was modified and a concession was made to a borrower experiencing financial difficulty, the modification was considered a TDR. An allowance for loan losses for loans that have been modified in a TDR is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercised significant judgment in developing these estimates. Land, Building and Equipment Land is stated at cost. Building and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets or the lease term for leasehold improvements unless renewal is reasonably assured. Maintenance and repair costs are included in operating expenses while major expenditures for improvements are capitalized and depreciated. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of loss and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15 % of Tier one capital, and the total cash surrender value of life insurance policies is limited to 25 % of Tier one capital at the time of purchase. Treasury Stock The Company records common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. Transfers and Servicing of Financial Assets Transfers of an entire financial asset, a group of entire financial assets or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company services mortgage loans for others. Loan servicing fee income is reported in the consolidated statements of loss as loan servicing fee income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Mortgage servicing rights (“MSR”) are initially recorded as an asset and measured at fair value when loans are sold to third parties with servicing rights retained. MSR are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s MSR accounted for under the fair value method are carried on the balance sheet at fair value with changes in fair value recorded in loan servicing fee income in the period in which the change occurs. Changes in the fair value of MSR are primarily due to changes in valuation inputs, assumptions and the collection and realization of expected cash flows. Customer List Intangible On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a final adjusted purchase price of $ 324,000 (included in other assets at December 31, 2023 and 2022), of which $ 172,000 was paid at closing. Each client account was assigned a value, and as each client transferred to the Bank, 85 % of this value was paid to the seller. Once it was determined that the transition of client accounts was completed, the final purchase price was adjusted and a final payment made to the seller. As of December 31, 2023 and 2022, approximately $ 25.7 million and $ 23.0 million of purchased client accounts are included in total assets under management, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the years ended December 31, 2023 and 2022, $ 30,000 and $ 34,000 of amortization expense was recorded in other expense, respectively. Revenue Recognition Accounting Standards Codification (“ASC”) section 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit and investments securities, as well as revenue related to our mortgage servicing activities and bank owned life insurance, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606 and which are presented in our income statements as components of non-interest income are as follows: • Customer service fees—these represent general service fees for monthly account maintenance and activity- or transaction- based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Reve |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | 3. Recent Accounting Pronouncements Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of December 31, 2023 , there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). In March 2022, the FASB issued ASU 2022-2, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” All other creditors must continue to apply the TDR accounting model until they adopt ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Due to the removal of the TDR accounting model, all loan modifications now will be accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities will be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage (that is, year of origination). This ASU becomes effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also during November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective dates for ASU 2016-02, “ Leases (Topic 842)” was deferred to fiscal years beginning after December 15, 2021. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” to increase stakeholders’ awareness of the amendments and to expedite improvements to the Codification. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses, Topic 326.” This ASU addresses certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. On October 16, 2019, the FASB approved a proposal to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Early adoption is permitted. See the next paragraph for further discussion regarding the implementation of this standard. In June 2016, the FASB issued ASU 2016-13 ,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which creates a new credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost (including loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected, through an allowance for credit losses that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. The measurement of credit losses for newly recognized financial assets (other than certain purchased assets) and subsequent changes in the allowance for credit losses are recorded in the statement of loss as the amounts expected to be collected change. The ASU was originally to be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” extending the implementation date by one year for smaller reporting companies and clarifying that operating lease receivables are outside the scope of Accounting. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today are still permitted, though the inputs to those techniques have changed to reflect the full lifetime amount of expected credit losses. The Company has selected a loss estimation methodology which utilizes a third-party software application. The Company has recorded the effect of implementing this ASU using a modified-retrospective approach through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU was effective, which was January 1, 2023 . The adoption of the new standard resulted in a decrease to its allowance for credit losses on loans (“ACL”). This decrease, though, was offset by an increase in the allowance for credit losses on off-balance sheet ("OBS") commitments that are not unconditionally cancelable. The decrease in ACL was due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is much more robust with broader time horizons as compared to the Company's actual historical loss data used under an incurred loss methodology. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements (see below and Note 6, Loans, for more information). January 1, 2023 CECL Transition (Day 1) Impact The CECL methodology reflects the Company's view of the state of the economy and forecasted macroeconomic conditions and their impact on the Company's loan portfolio as of the adoption date. The following table illustrates the impact of the adoption of ASU 2016-13: January 1, 2023 As reported under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (Dollars in thousands) ASSETS Allowance for credit losses on loans: Commercial real estate (CRE) $ 788 $ 942 $ ( 154 ) Multifamily (MF) 55 54 1 Commercial and industrial (C+I) 273 184 89 Acquisition, development, and land (ADL) 120 138 ( 18 ) 1-4 family residential (RES) 1,847 2,048 ( 201 ) Home equity line of credit (HELOC) 88 81 7 Consumer (CON) 114 100 14 Unallocated 1 34 ( 33 ) Allowance for credit losses on loans $ 3,286 $ 3,581 ( 295 ) LIABILITIES Allowance for credit losses on OBS credit exposures $ 308 $ 18 $ 290 STOCKHOLDERS' EQUITY Retained earnings $ 36,253 $ 36,248 $ 5 Recent Accounting Pronouncements Yet To Be Adopted The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures," which provides updated guidance for segment reporting. The updated guidance requires enhanced disclosures for significant expenses by reportable operating segment. Significant expense categories and amounts are those regularly provided to the chief operating decision maker ("CODM") and included in the measure of a segment’s profit or loss. The updated guidance will also require the Company to disclose the title and position of its CODM, including an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The Company plans to adopt this ASU for the annual reporting period beginning January 1, 2024, and for interim periods beginning January 1, 2025. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” effective January 1, 2025, with early adoption permitted, updating accounting guidance. The updated guidance requires additional disclosure and disaggregated information in the income tax rate reconciliation using both percentages and reporting currency amounts, with additional qualitative explanations of individually significant reconciling items. The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by jurisdictional categories (federal (national), state and foreign). The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial statements. In January 2021, the FASB issued ASU 2021-1, “ Reference Rate Reform (Topic 848) (Scope), ” which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. This ASU was to become effective immediately for all entities on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. The effective date was extended by the issuance of ASU No. 2022-06, “ Reference Rate Reform (Topic 848), ” which defers the sunset date of Topic 848 from December 2022 to December 2024. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
Interest Bearing Time Deposits
Interest Bearing Time Deposits With Other Banks | 12 Months Ended |
Dec. 31, 2023 | |
Banking And Thrift1 [Abstract] | |
Interest Bearing Time Deposits With Other Banks | 4. Interest Bearing Time Deposits with Other Banks The Company’s $ 747,000 of time deposits outstanding at December 31, 2022 matured during 2023. |
Securities Available-for-Sale
Securities Available-for-Sale | 12 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | |
Securities Available For Sale | 5. Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of December 31, 2023 and 2022: December 31, 2023 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 1,668 $ — $ ( 270 ) $ 1,398 U.S. Government agency small business administration 16,410 36 ( 863 ) 15,583 Collateralized mortgage obligations issued by the 2,958 — ( 484 ) 2,474 Residential mortgage-backed securities 41,186 653 ( 3,618 ) 38,221 Municipal bonds 57,192 1,087 ( 3,587 ) 54,692 Corporate debt 500 — ( 8 ) 492 Corporate subordinated debt 10,074 3 ( 1,083 ) 8,994 $ 129,988 $ 1,779 $ ( 9,913 ) $ 121,854 December 31, 2022 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 2,191 $ — $ ( 365 ) $ 1,826 U.S. Government agency small business administration 9,475 — ( 1,116 ) 8,359 Collateralized mortgage obligations issued by the 6,922 8 ( 708 ) 6,222 Residential mortgage-backed securities 26,390 — ( 4,567 ) 21,823 Municipal bonds 69,373 172 ( 7,129 ) 62,416 Corporate debt 500 — ( 3 ) 497 Corporate subordinated debt 5,550 — ( 593 ) 4,957 $ 120,401 $ 180 $ ( 14,481 ) $ 106,100 The amortized cost and fair values of available-for-sale securities at December 31, 2023 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2023 Amortized Fair Value (Dollars in thousands) Due in one year or less $ 1,767 $ 1,764 Due after one year through five years 500 492 Due after five years through ten years 10,917 9,530 Due after ten years 56,250 53,790 Total U.S. Government-sponsored enterprises obligations, 69,434 65,576 U.S. Government agency small business pools guaranteed (1) 16,410 15,583 Collateralized mortgage obligations issued by the FHLMC, (1) 2,958 2,474 Residential mortgage-backed securities (1) 41,186 38,221 Total $ 129,988 $ 121,854 (1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. Proceeds from sales, maturities, principal payments received and gross realized gains and losses on available-for-sale securities were as follows for the years ended December 31: December 31, 2023 2022 (Dollars in thousands) Proceeds from sales, maturities and principal payments $ 40,863 $ 9,872 Gross realized gains — 52 Gross realized losses ( 4,173 ) ( 799 ) Net realized losses $ ( 4,173 ) $ ( 747 ) The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2023 and 2022. Less than 12 Months More than 12 Months Total Number of Fair Unrealized Number of Fair Unrealized Fair Unrealized (Dollars in thousands) December 31, 2023 U.S. Government sponsored — $ — $ — 3 $ 1,398 $ ( 270 ) $ 1,398 $ ( 270 ) U.S. Government agency small 8 8,432 ( 75 ) 5 3,899 ( 788 ) 12,331 ( 863 ) Collateralized mortgage — — — 4 2,474 ( 484 ) 2,474 ( 484 ) Residential mortgage 5 4,806 ( 53 ) 23 15,347 ( 3,565 ) 20,153 ( 3,618 ) Municipal bonds 1 1,941 ( 10 ) 49 30,729 ( 3,577 ) 32,670 ( 3,587 ) Corporate debt — — — 1 492 ( 8 ) 492 ( 8 ) Corporate subordinated debt 4 4,080 ( 82 ) 4 4,029 ( 1,001 ) 8,109 ( 1,083 ) 18 $ 19,259 $ ( 220 ) 89 $ 58,368 $ ( 9,693 ) $ 77,627 $ ( 9,913 ) December 31, 2022 U.S. Government sponsored 1 $ 453 $ ( 43 ) 3 $ 1,373 $ ( 322 ) $ 1,826 $ ( 365 ) U.S. Government agency small 8 5,947 ( 602 ) 3 2,412 ( 514 ) 8,359 ( 1,116 ) Collateralized mortgage 5 3,212 ( 209 ) 4 2,016 ( 499 ) 5,228 ( 708 ) Residential mortgage 8 4,239 ( 503 ) 23 16,649 ( 4,064 ) 20,888 ( 4,567 ) Municipal bonds 86 49,228 ( 5,900 ) 8 5,769 ( 1,229 ) 54,997 ( 7,129 ) Corporate debt 1 497 ( 3 ) — — — 497 ( 3 ) Corporate subordinated debt 4 4,457 ( 593 ) — — — 4,457 ( 593 ) 113 $ 68,033 $ ( 7,853 ) 41 $ 28,219 $ ( 6,628 ) $ 96,252 $ ( 14,481 ) Management evaluates securities available-for-sale in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2023, the Company had 107 securities available-for-sale in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of December 31, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore the Company carried no allowance for credit losses on securities available-for-sale as of December 31, 2023. There was no accrued interest reversed against interest income for the years ended December 31, 2023 and 2022. Accrued interest receivable on available-for-sale securities totaled $ 1.1 million at December 31, 2023, and is excluded from the estimate of credit losses. At December 31, 2023, $ 74.1 million of securities available-for-sale were pledged as collateral for the Company's Bank Term Funding Program and Borrower-In-Custody secured credit facilities (see Note 10 Borrowings for more information). As of December 31, 2023 and 2022, there were no holdings of securities of any issuer, other than the SBA, FHLMC, GNMA and FNMA, whose aggregate carrying value exceeded 10% of stockholders’ equity. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses on Loans | 6. Loans and Allowance for Credit Losses on Loans The Company’s lending activities are primarily conducted in and around Dover, New Hampshire and in the areas surrounding its branches. The Company originates commercial real estate loans, multifamily 5+ dwelling unit loans, commercial and industrial loans, acquisition, development and land loans, one- to four-family residential loans, home equity loans and lines of credit and consumer loans. Most loans originated by the Company are collateralized by real estate. The ability and willingness of real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic area and the general economy. Loans consisted of the following at December 31: 2023 2022 (Dollars in thousands) Commercial real estate (CRE) $ 86,566 $ 80,616 Multifamily (MF) 7,582 8,186 Commercial and industrial (C+I) 25,511 24,059 Acquisition, development, and land (ADL) 17,520 18,490 1-4 family residential (RES) 268,943 252,806 Home equity line of credit (HELOC) 14,093 10,161 Consumer (CON) 9,816 8,187 Total loans 430,031 402,505 Allowance for credit losses on loans ( 3,390 ) ( 3,581 ) Total loans, net $ 426,641 $ 398,924 The Company elected to include deferred loan originations costs, net from and exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of December 31, 2023 and 2022, accrued interest receivable for loans totaled $ 1.2 million and $ 989,000 , respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated balance sheets. Changes in the ACL for the year ended December 31, 2023, under the CECL model, by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2022, Prior to Adoption of ASC 326 $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 Impact of adopting ASC 326 ( 154 ) 1 89 ( 18 ) ( 202 ) 7 14 ( 32 ) ( 295 ) Provision for credit losses on loans 42 21 ( 37 ) ( 15 ) ( 245 ) 68 244 27 105 Charge-offs — — — — — — ( 4 ) — ( 4 ) Recoveries — — — — — — 3 — 3 Balance, December 31, 2023 $ 830 $ 76 $ 236 $ 105 $ 1,601 $ 156 $ 357 $ 29 $ 3,390 Changes in the ALL for the year ended December 31, 2022, under the incurred loss model, by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance at December 31, 2021 $ 833 $ 80 $ 194 $ 178 $ 2,139 $ 63 $ 75 $ 28 $ 3,590 Provision for loan losses 109 ( 26 ) ( 14 ) ( 40 ) ( 91 ) 18 38 6 — Charge-offs — — — — — — ( 14 ) — ( 14 ) Recoveries — — 4 — — — 1 — 5 Balance at December 31, 2022 $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 As of December 31, 2022, information about loans and the ALL, by portfolio segment, are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total December 31, 2022 Loan Balances Individually evaluated for impairment $ — $ — $ — $ — $ 273 $ — $ 5 $ — $ 278 Collectively evaluated for impairment 80,616 8,186 24,059 18,490 252,533 10,161 8,182 — 402,227 Total $ 80,616 $ 8,186 $ 24,059 $ 18,490 $ 252,806 $ 10,161 $ 8,187 $ — $ 402,505 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 942 54 184 138 2,048 81 100 34 3,581 Total $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2023: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ — $ — $ — $ — $ 86,566 $ 86,566 $ — MF — — — — 7,582 7,582 — C+I — — — — 25,511 25,511 — ADL — — — — 17,520 17,520 — RES — 131 — 131 268,812 268,943 127 HELOC — — 14 14 14,079 14,093 14 CON — — — — 9,816 9,816 — $ — $ 131 $ 14 $ 145 $ 429,886 $ 430,031 $ 141 The Company's collateral-dependent non-accrual RES and HELOC loans with one borrower had an amortized cost basis of $ 141,000 at December 31, 2023 and was secured by real estate with an appraised value of $ 216,000 . There was no significant change in the extent to which the collateral secures the loan. Interest income recognized on non-accrual loans during the year ended December 31, 2023 was $- 0 -. There were no loans past due over 90 days still accruing interest at December 31, 2023. There were no loans collateralized by residential real estate property in the process of foreclosure at December 31, 2023 and 2022. There were no loans modified for borrowers experiencing financial difficulty during the year ended December 31, 2023. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification, if applicable. The ACL incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. Because the effect of most modifications made to borrowers experiencing financial difficulty would already be included in the ACL as a result of the measurement methodologies used to estimate the allowance, a change in the ACL is generally not recorded upon modification. There were no loans modified and determined to be a troubled debt restructuring during the year ended December 31, 2022. The following is an aged analysis of past due loans by portfolio segment as of December 31, 2022: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ — $ — $ — $ — $ 80,616 $ 80,616 $ — MF — — — — 8,186 8,186 — C+I — — — — 24,059 24,059 — ADL — — — — 18,490 18,490 — RES — 84 — 84 252,722 252,806 84 HELOC 5 — — 5 10,156 10,161 — CON 7 — — 7 8,180 8,187 5 $ 12 $ 84 $ — $ 96 $ 402,409 $ 402,505 $ 89 The following table provides information on impaired loans as of and for the year ended December 31, 2022: As of December 31, 2022 At December 31, 2022 (Dollars in thousands) Recorded Unpaid Related Average Interest With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 273 273 — 446 32 HELOC — — — 57 3 CON 5 5 — 2 — Total impaired loans $ 278 $ 278 $ — $ 505 $ 35 Credit Quality Information The Company utilizes a ten-grade internal loan rating system for its commercial real estate, multifamily, commercial and industrial and acquisition, development and land loans. Residential real estate, home equity loans and line of credit and consumer loans are considered “pass” rated loans until they become delinquent. Once delinquent, loans can be rated an 8, 9 or 10 as applicable. Loans rated 1 through 6: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 7: 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 8: 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 9: 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 10: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted and should be charged off. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial and industrial, commercial real estate, acquisition, development and land loans and multifamily loans. On a periodic basis, the Company engages an independent third party to review a significant portion of loans within these segments and to assess the credit risk management practices of its commercial lending department. Management uses the results of these reviews as part of its annual review process and overall credit risk administration. On a quarterly basis, the Company formally reviews the ratings on all residential real estate and home equity loans if they have become delinquent. Criteria used to determine ratings consist of loan-to-value ratios and days delinquent. Based upon the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of December 31, 2023: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total CRE: Risk rating: Pass $ 7,552 $ 10,849 $ 11,977 $ 2,268 $ 2,724 $ 18,713 $ 32,244 $ — $ 86,327 Special mention — — — — — 239 — — 239 Substandard — — — — — — — — — Total CRE 7,552 10,849 11,977 2,268 2,724 18,952 32,244 — 86,566 MF: Risk rating: Pass — 145 5,157 1,081 — 852 347 — 7,582 Special mention — — — — — — — — — Substandard — — — — — — — — — Total MF — 145 5,157 1,081 — 852 347 — 7,582 C+I: Risk rating: Pass 5,745 6,580 4,151 2,875 1,537 1,917 2,704 — 25,509 Special mention — — 2 — — — — — 2 Substandard — — — — — — — — — Total C+I 5,745 6,580 4,153 2,875 1,537 1,917 2,704 — 25,511 ADL: Risk rating: Pass 10,511 4,048 1,507 — 1,454 — — — 17,520 Special mention — — — — — — — — — Substandard — — — — — — — — — Total ADL 10,511 4,048 1,507 — 1,454 — — — 17,520 RES: Risk rating: Pass 19,533 43,517 64,226 50,675 20,021 70,844 — — 268,816 Special mention — — — — — — — — — Substandard — — — — — 127 — — 127 Total RES 19,533 43,517 64,226 50,675 20,021 70,971 — — 268,943 HELOC: Risk rating: Pass — — — — — — 14,079 — 14,079 Special mention — — — — — — — — — Substandard — — — — — — 14 — 14 Total HELOC — — — — — — 14,093 — 14,093 CON: Risk rating: Pass 2,902 3,145 1,966 1,512 215 76 — — 9,816 Special mention — — — — — — — — — Substandard — — — — — — — — — Total CON 2,902 3,145 1,966 1,512 215 76 — — 9,816 Total $ 46,243 $ 68,284 $ 88,986 $ 58,411 $ 25,951 $ 92,768 $ 49,388 $ — $ 430,031 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2022: (Dollars in thousands) Pass Special Substandard Total CRE $ 77,930 $ 2,686 $ — $ 80,616 MF 8,186 — — 8,186 C+I 24,059 — — 24,059 ADL 18,490 — — 18,490 RES 252,722 — 84 252,806 HELOC 10,161 — — 10,161 CON 8,182 — 5 8,187 Total $ 399,730 $ 2,686 $ 89 $ 402,505 Certain directors and executive officers of the Company and entities in which they have significant ownership interests were customers of the Bank during 2023 and 2022. For the years ended December 31, 2023 and 2022, activity in these loans was as follows: December 31, (Dollars in thousands) 2023 2022 Loans outstanding – beginning of year $ 4,443 $ 4,849 Principal payments ( 552 ) ( 576 ) Advances 1,271 170 Loans outstanding – end of year $ 5,162 $ 4,443 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | 7. Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $ 33.9 million and $ 36.0 million at December 31, 2023 and 2022, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 20 Fair Value of Assets and Liabilities for more information). Changes to the balance of mortgage servicing rights are recorded in loan servicing fee income in the Company’s consolidated statements of loss. The Company’s mortgage servicing activities include: collecting principal, interest and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Loan servicing fee income, including late and ancillary fees, was $ 77,000 and $ 126,000 for the years ended December 31, 2023 and 2022, respectively. Servicing fee income is recorded in loan servicing fee income in the Company’s consolidated statements of loss. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in the Company’s market areas. The following summarizes activity in mortgage servicing rights for the years ended December 31, 2023 and 2022. (Dollars in thousands) 2023 2022 Balance, beginning of year $ 357 $ 322 Additions 4 6 Payoffs ( 7 ) ( 28 ) Change in fair value due to change in assumptions ( 15 ) 57 Balance, end of year $ 339 $ 357 |
Land, Buildings and Equipment
Land, Buildings and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Land, Buildings and Equipment | 8. Land, Buildings and Equipment Land, buildings and equipment consisted of the following at December 31, 2023 and 2022: (Dollars in thousands) 2023 2022 Land $ 995 $ 995 Buildings 3,167 3,167 Building & leasehold improvements 3,831 3,831 Furniture, fixtures and equipment 4,360 4,529 12,353 12,522 Less accumulated depreciation ( 8,281 ) ( 8,341 ) $ 4,072 $ 4,181 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | 9. Deposits Deposits consisted of the following at December 31, 2023 and 2022: (Dollars in thousands) 2023 2022 NOW and demand deposits $ 163,316 $ 204,739 Money market deposits 85,364 60,931 Savings deposits 64,823 54,954 Time deposits of $250,000 and greater 17,107 7,796 Time deposits less than $250,000 74,188 53,943 $ 404,798 $ 382,363 There were $ 23.6 million and $ 18.1 million of brokered time deposits which were bifurcated into amounts below the FDIC insurance limit at December 31, 2023 and 2022, respectively. Additionally, there were $ 20.9 million and $- 0 - of brokered deposits included in savings deposits at December 31, 2023 and 2022, respectively. Reciprocal deposits were $ 1.1 million and $- 0 - at December 31, 2023 and 2022, respectively. Deposits from related parties totaled approximately $ 10.7 million and $ 7.1 million at of December 31, 2023 and 2022, respectively. At December 31, 2023, the scheduled maturities of time deposits were as follows: (Dollars in thousands) Total 2024 $ 73,022 2025 14,399 2026 3,077 2027 569 2028 228 $ 91,295 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. Borrowings Federal Home Loan Bank (“FHLB”) All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans and commercial real estate loans, discounted by a certain percentage, in an aggregate amount greater than or equal to outstanding advances. The Bank’s unused remaining available borrowing capacity at the FHLB was $ 71.8 million and $ 36.5 million at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. A summary of borrowings from the FHLB are as follows: December 31, 2023 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 21,139 2024 0.00 % to 5.53 % – fixed 520 2025 0.00 % – fixed 50,000 2026 4.38 % to 4.48 % – fixed 718 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 73,007 December 31, 2022 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 96,729 2023 0.44 % to 4.38 % – fixed 800 2024 0.00 % – fixed 520 2025 0.00 % – fixed 718 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 99,397 Included in the above borrowings from the FHLB at December 31, 2023 is a $ 25.0 million long-term advance, with an interest rate of 4.48 %, which is callable by the FHLB on May 2, 2024 and quarterly thereafter, and a $ 25.0 million long-term advance, with an interest rate of 4.38 %, which is callable by the FHLB on December 8, 2025 and quarterly thereafter. As of December 31, 2023 and 2022 borrowings from the FHLB also include $ 2.7 million of advances through the FHLB’s Jobs for New England program where certain qualifying small business loans that create or preserve jobs, expand woman-, minority- or veteran-owned businesses, or otherwise stimulate the economy in New England communities are offered at an interest rate of 0 %. At December 31, 2023 and 2022, the Bank had an overnight line of credit with the FHLB that may be drawn up to $ 3.0 million. Additionally, the Bank had a total of $ 5.0 million of unsecured Fed Funds borrowing lines of credit with two correspondent banks. The entire balance of all these credit facilities was available at December 31, 2023 and 2022. Federal Reserve Bank of Boston (“FRB”) The Bank has established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”). As of December 31, 2023, a $ 20.0 million BTFP advance is outstanding and collateralized by eligible collateral consisting primarily of government-sponsored enterprise obligations, mortgage-backed securities and collateralized mortgage obligations issued by various U.S. Government agencies, owned as of March 12, 2023. The advance matures on December 13, 2024 at a fixed annual rate of 4.89 %. The interest rate for term advances under the BTFP are based upon the one-year overnight index swap rate plus 10 basis points and fixed for the term of the advance – up to one year - on the day the advance is made. At December 31, 2023, the Bank’s remaining borrowing capacity is $ 3.5 million under the BTFP. Advances under the BIC would be collateralized by eligible collateral - principally general obligation municipal bonds. The entire $ 50.6 million borrowing capacity of the BIC was available at December 31, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The current and deferred components of income tax expense (benefit) consisted of the following for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Federal State Total Federal State Total (Dollars in thousands) Current $ — $ 83 $ 83 $ ( 59 ) $ 109 $ 50 Deferred 3,382 479 3,861 ( 369 ) ( 132 ) ( 501 ) $ 3,382 $ 562 $ 3,944 $ ( 428 ) $ ( 23 ) $ ( 451 ) Total income tax expense (benefit) is different from the amounts computed by applying the U.S. Federal income tax rates in effect to loss before income taxes. The reasons for these differences are as follows for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Amount % of Amount % of (Dollars in thousands) Computed “expected” tax benefit $ ( 1,410 ) ( 21.0 )% $ ( 213 ) ( 21.0 )% State tax expense (benefit), net of federal tax expense (benefit) ( 471 ) ( 7.0 ) ( 18 ) ( 1.8 ) BOLI income ( 21 ) ( 0.3 ) ( 21 ) ( 2.1 ) Valuation allowance 6,050 90.1 62 6.1 Income on tax exempt securities ( 242 ) ( 3.6 ) ( 252 ) ( 24.8 ) Other 38 0.6 ( 8 ) ( 0.8 ) $ 3,944 58.8 % $ ( 451 ) ( 44.4 )% Components of deferred tax assets and liabilities at December 31, 2023 and 2022 are as follows: December 31, 2023 2022 (Dollars in thousands) Deferred tax assets: Allowance for credit losses $ 1,021 $ 977 Deferred compensation liabilities 558 494 Contribution carryforward 176 171 State tax credit carryforward 223 62 Depreciation 50 16 Securities available-for-sale 2,190 3,873 Net operating loss carryforward 2,566 707 Other 112 48 Subtotal 6,896 6,348 Less: valuation allowance ( 6,226 ) ( 171 ) Total deferred tax assets 670 6,177 Deferred tax liabilities: Interest rate swaps — ( 260 ) Prepaid expenses ( 37 ) ( 43 ) Net deferred loan costs ( 709 ) ( 661 ) Mortgage servicing rights ( 91 ) ( 96 ) Total deferred tax liabilities ( 837 ) ( 1,060 ) Net deferred tax (liabilities) assets, included in other (liabilities) assets $ ( 167 ) $ 5,117 The calculation of the Company’s charitable contribution carryforward deferred tax asset is based upon a carryforward of approximately $ 654,000 and $ 633,000 of charitable contributions at December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, it has been determined that it is more likely than not that the benefit from this charitable contribution carryforward will not be realized prior to expiration. As a result, a valuation allowance of $ 176,000 and $ 171,000 has been provided on this deferred tax asset for the years ended December 31, 2023 and 2022, respectively. The ultimate realization of this deferred tax asset is dependent upon the generation of future taxable income. The Internal Revenue Federal Tax Code (the “Code”) limits the charitable contribution deduction in any one year to 10 % of taxable income, computed without regard to charitable contributions, certain special deductions, net operating loss carry backs and capital loss carry backs. However, the Code allows a corporation to carry forward the excess charitable contributions to each of the five immediately succeeding years, subject to a 10% limitation in each of those years. Thus, the Company would have six years in which to utilize the December 31, 2019 charitable contribution carryforward. The valuation allowance for this net deferred tax asset may be adjusted in the future if estimates of taxable income during the carryforward period are increased. As of December 31, 2023, the Company has a Federal and New Hampshire net operating loss carryforward of $ 9.8 million and $ 8.4 million, respectively. The Federal net operating loss carryforward can be carried forward indefinitely but is limited to 80 % of each subsequent year’s taxable income. The New Hampshire net operating loss carryforward expires in 2032 and 2033 and is also limited to 80 % of each subsequent year’s taxable income. Additionally, as of December 31, 2023, the Company has a New Hampshire Business Enterprise Tax credit carry forward of $ 223,000 that expires in 2029 through 2033. As of December 31, 2023, it has been determined that it is more likely than not that the benefit from these net operating loss and state tax credit carryforwards will not be realized. As a result, a valuation allowance of $ 2.1 million for the Federal net operating loss carryforward, $ 501,000 for the New Hampshire net operating loss carryforward and $ 223,000 for the New Hampshire Business Enterprise Tax credit carry forward has been provided on these deferred tax assets for the year ended December 31, 2023. All other deferred tax assets as of December 31, 2023 have also been reduced by a valuation allowance of $ 3.3 million because management believes that it is more likely than not that the benefit of these deferred tax assets will not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of future taxable income. The valuation allowance for these net deferred tax assets may be adjusted in the future if estimates of taxable income during the carryforward period are increased. The tax reserve for credit losses at the Company’s base year amounted to approximately $ 2.3 million. If any portion of the reserve is used for purposes other than to absorb credit losses, approximately 150 % of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve to only absorb credit losses, a deferred tax liability of approximately $ 620,000 has not been provided. The Company does not have any uncertain tax positions at December 31, 2023 or 2022 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2023 and 2022. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2020 through 2023. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2020 are open. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 12. Employee Benefits 401(k) Plan During the years ended December 31, 2023 and 2022, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company also makes matching and profit-sharing contributions to eligible participants in accordance with plan provisions. The Company’s contributions for the years ended December 31, 2023 and 2022 was $ 209,000 and $ 202,000 , respectively. Pension Plan The Company participated in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There were no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413 (c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The Company enacted a “hard freeze” for the Pentegra DB Plan as of December 31, 2018, eliminating all future service-related accruals for participants. Prior to this enactment the Company maintained a “soft freeze” status that continued service-related accruals for its active participants with no new participants permitted into the Pentegra DB Plan. On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. On September 30, 2022, the Company proceeded with its notification to withdraw from the Pentegra DB Plan as of September 30, 2022. As a result, a contribution amount that achieved a funded status of 100 % - market value of plan assets equal to the final withdrawal liability - was due. The final withdrawal liability amounted to $ 1.5 million of which $ 200,000 was paid prior to December 31, 2022 and $ 1.3 million of pension expense was accrued at December 31, 2022 and subsequently paid in January 2023. A final settlement credit was received in June 2023. Total pension plan (credit) expense for the years ended December 31, 2023 and 2022 was $( 14,000 ) and $ 1.5 million, respectively, and is included in salaries and employee benefits in the accompanying consolidated statements of loss. Supplemental Executive Retirement Plans Salary Continuation Plan The Company maintains a nonqualified supplemental retirement plan for its current President and former President. The plan provides supplemental retirement benefits payable in installments over a period of years upon retirement or death. The recorded liability at December 31, 2023 and 2022 relating to this supplemental retirement plan was $ 735,000 and $ 660,000 , respectively. The discount rate used to determine the Company’s obligation was 5.00 % during the years ended December 31, 2023 and 2022. The projected rate of salary increase for its current President was 3 % for the years ended December 31, 2023 and 2022. For the years ended December 31, 2023 and 2022, the expense of this salary retirement plan was $ 131,000 and $ 82,000 , respectively. Directors’ Deferred Supplemental Retirement Plan The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at December 31, 2023 and 2022 relating to this plan was $ 581,000 and $ 537,000 , respectively. The discount rate used to determine the Company’s obligation was 6.25 % during the years ended December 31, 2023 and 2022. For the years ended December 31, 2023 and 2022 the expense of the supplemental retirement plan was $ 75,000 . The Company enacted a “hard freeze” for this supplemental retirement plan as of January 1, 2022. On February 10, 2022, the Bank and the non-employee members of the board of directors of the Bank entered into amendments to the Supplemental Director Retirement Agreements (the “Agreements”) previously entered into by the Bank and the directors. The amendments eliminate the formula for determining the normal annual retirement benefit (previously “ 70 % of Final Base Fee”) and replaces it with a fixed annual benefit of $ 20,000 . The amendments also eliminate the formula for determining the benefit payable on a change in control (previously tied to the normal annual retirement formula with certain imputed increases in the Base Fee) and replacing it with a fixed amount equal to the present value of $ 200,000 . The effect of the amendments is to eliminate the variable and increasing costs associated with the Agreements. Instead, since the normal annual retirement benefit will be a fixed amount, the future costs associated with the Agreements is now more predictable. It is the intention of the Company that no new directors of the Company would enter into similar agreements. Additionally, the Company has a deferred directors’ fee plan which allows members of the board of directors to defer the receipt of fees that otherwise would be paid to them in cash. At December 31, 2023 and 2022, the total deferred directors’ fees amounted to $ 718,000 and $ 553,000 , respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | 13. Stock Based Compensation Employee Stock Ownership Plan The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The Company uses the principal and interest method to determine the release of shares amount. The number of shares committed to be released per year through 2047 is 15,354 . The ESOP funded its purchase of 423,715 shares through a loan from the Company equal to 100 % of the aggregate purchase price of the common stock. The ESOP trustee is repaying the loan principally through the Bank’s contributions to the ESOP over the remaining loan term that matures on December 31, 2047. At December 31, 2023 and 2022, the remaining principal balance on the ESOP debt was $ 4.2 million and $ 2.0 million, respectively. Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2023 and 2022, was $ 126,000 and $ 124,000 , respectively. At December 31, 2023 and 2022, total unearned compensation for the ESOP was $ 4.0 million and $ 1.9 million, respectively. December 31, 2023 2022 (1) Shares held by the ESOP include the following: Allocated 39,864 29,898 Committed to be allocated 15,354 9,966 Unallocated 368,497 159,451 Total 423,715 199,315 (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. The fair value of unallocated shares was approximately $ 2.8 million and $ 1.8 million at December 31, 2023 and 2022, respectively. Equity Incentive Plan Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock and the granting of shares of restricted stock awards and restricted stock units. The 2021 Plan authorizes the issuance or delivery to participants of up to 348,801 shares of common stock (adjusted for the second step conversion transaction). Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 249,144 shares (adjusted for the second step conversion transaction), and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 99,657 shares (adjusted for the second step conversion transaction). The exercise price of stock options may not be less than the fair market value on the date the stock option is granted. Further, stock options may not be granted with a term that is longer than 10 years. On May 25, 2023, 249,144 incentive and non-statutory stock options to purchase shares of common stock were granted to directors for their services on the board of directors and certain members of management. As of December 31, 2022, no stock options had been granted. The Company estimates the grant date fair value of each option using the Black-Scholes option pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. Since it was determined that the Company lacked sufficient historical closing stock prices, the expected volatility assumption was based upon a combination of actual historical volatility combined with the historical volatility developed for comparable companies. Also, since the Company lacked the appropriate historical data, the expected term of the option was calculated using the simplified method. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated grant date fair value of each option is expensed as employee benefits expense ratably over the vesting period. The expense recognized for this equity incentive plan was $ 150,000 and $- 0 -, for the years ended December 31, 2023 and 2022, respectively, which provided a tax benefit of $ 40,000 and $- 0 -, respectively. At December 31, 2023, total unrecognized compensation expense for this equity incentive plan was $ 598,000 with a 2.4 year weighted average future recognition period. A summary of stock options outstanding as of December 31, 2023, and changes during the year ended December 31, 2023 is presented below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Stock options: (In Thousands) Balance at beginning of year — $ — — $ — Granted 249,144 8.06 9.4 — Vested — — — — Forfeited — — — — Balance at end of year 249,144 $ 8.06 9.4 $ — Date of grant 5/25/2023 Options granted 249,144 Exercise price $ 8.06 Vesting period (1) 3 years Expiration date 5/25/2033 Expected volatility 27.8 % Expected term 6.5 years Expected dividend yield 0 % Expected forfeiture rate 0 % Risk free interest rate 3.9 % Fair value per option $ 3.00 (1) Vesting is ratably and the period begins on the date of the grant. On June 1, 2023, 2,478 restricted stock awards were granted to a certain member of management at $ 7.99 per share. The total fair value related to the June 1, 2023 grant was $ 20,000 . These restricted stock awards time-vest 50 % as of November 18, 2023 and 50 % as of November 18, 2024 and have been fair valued as of the date of grant. On November 18, 2021, 98,850 restricted stock awards (adjusted for the second step conversion transaction) were granted to directors for their services on the board of directors and certain members of management at $ 11.95 per share (adjusted for the second step conversion transaction). The total fair value related to the grant was $ 1.2 million. These restricted stock awards time-vest over a three year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting rights when granted and dividend rights when vested. A summary of non-vested restricted shares outstanding as of December 31, 2023 and 2022, and changes during the years ended December 31, 2023 and 2022 is presented below: December 31, 2023 Number of Shares Weighted Average Grant Value Restricted stock: Non-vested at beginning of year (1) 64,785 $ 11.95 Granted 2,478 7.99 Vested ( 33,634 ) 11.80 Forfeited — — Non-vested at end of year 33,629 $ 11.80 December 31, 2022 (1) Number of Shares Weighted Average Grant Value Restricted stock: Non-vested at beginning of year 98,850 $ 11.95 Granted — — Vested ( 32,393 ) 11.95 Forfeited ( 1,672 ) 11.95 Non-vested at end of year 64,785 $ 11.95 (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. For the years ended December 31, 2023 and 2022, the expense recognized for this equity incentive plan was $ 399,000 and $ 387,000 , respectively, which provided a tax benefit of $ 108,000 and $ 105,000 , respectively. At December 31, 2023 and 2022, total unrecognized compensation expense for this equity incentive plan was $ 350,000 and $ 729,000 , respectively, with a 0.9 year and 1.9 year weighted average future recognition period, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 14. Leases The Company is obligated under various lease agreements for one of its branch offices and certain equipment. These agreements are accounted for as operating leases and their terms expire between 2024 and 2031 and, in some instances, contain options to renew for periods up to four years . The Company has no financing leases. The Company adopted ASU 2016-02 –Leases (Topic 842)– effective January 1, 2022 and began recognizing its operating leases on its consolidated balance sheet by recording a net lease liability, representing the Company’s legal obligation to make these lease payments, and a ROU asset, representing the Company’s legal right to use the leased assets. The Company, by policy, does not include renewal options for leases as part of its ROU asset and lease liabilities unless they are deemed reasonably certain to exercise. The Company does not have any sub-lease agreements. The following table summarizes information related to the Company’s right-of-use asset and net lease liability: December 31, 2023 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 587 Other Assets Net lease liability 587 Other Liabilities December 31, 2022 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 202 Other Assets Net lease liability 202 Other Liabilities The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is either implicit in the lease or, when such a rate cannot be readily determined, the Company’s incremental borrowing rate is used. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. During 2023, the Company completed a conversion of all of its branch ATMs from owned equipment to leased equipment and recognized a $ 2,000 loss on the disposition of all ATM-related equipment. The Company's obligation under the operating lease related to these ATMs expires in August 2030 and has future lease payments of $ 509,000 as of December 31, 2023. Total lease expense was $ 26,000 and $- 0 - for the years ended December 31, 2023 and 2022, respectively. The Company's obligation under the operating lease related to one of its branches expires in August 2027 and has future lease payments of $ 151,000 as of December 31, 2023. Total lease expense was $ 37,000 and $ 33,000 for the years ended December 31, 2023 and 2022, respectively. This lease agreement contains clauses calling for escalation of minimum lease payments contingent on increases in LIBOR, or a similar replacement index, and the consumer price index. The components of operating lease cost and other related information are as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 Operating lease cost $ 63 $ 54 Short-term lease cost — — Variable lease cost (cost excluded from lease payments) — — Sublease income — — Total operating lease cost 63 54 Other Information: Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases 63 54 Operating lease - operating cash flows (liability reduction) $ — $ — Weighted average lease term remaining (in years) 5.85 4.37 Weighted average discount rate 4.79 % 3.29 % The total minimum lease payments due in future periods for lease agreements in effect at December 31, 2023 were as follows: As of December 31, 2023 Future Minimum Lease Payments (Dollars in thousands) 2024 126 2025 122 2026 120 2027 307 Total minimum lease payments 675 Less: interest ( 88 ) Total lease liability $ 587 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Other Comprehensive Income (Loss) | 15. Other Comprehensive Income (Loss) The Company reports certain items as “other comprehensive income (loss)" and reflects total accumulated other comprehensive loss (“AOCI”) in the consolidated financial statements for all years containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss: Year Ended December 31, Reclassification Adjustment 2023 2022 Affected Line Item (Dollars in thousands) Losses on sale of securities available-for-sale $ 4,173 $ 747 Securities losses, net Tax effect ( 1,123 ) ( 202 ) Income tax expense (benefit) 3,050 545 Net loss Net amortization of bond premiums 904 1,009 Interest on debt securities Tax effect ( 243 ) ( 274 ) Income tax expense (benefit) 661 735 Net loss Gain on termination of interest rate swaps ( 849 ) — Gain on termination of interest rate swaps Tax effect 230 — Income tax expense (benefit) ( 619 ) — Net loss Net interest expense on swaps — ( 115 ) Interest expense on borrowings Tax effect — 31 Income tax expense (benefit) — ( 84 ) Net loss Total reclassification adjustments $ 3,092 $ 1,196 The following tables present the changes in each component of AOCI for the periods indicated: (Dollars in thousands) Net Unrealized (Losses) (1) Net Unrealized Gains (Losses) on Cash Flow (1) AOCI (1) Balance at December 31, 2021 $ 575 $ 146 $ 721 Other comprehensive (loss) income before ( 12,283 ) 639 ( 11,644 ) Amounts reclassified from AOCI 1,280 ( 84 ) 1,196 Other comprehensive (loss) income (1) ( 11,003 ) 555 ( 10,448 ) Balance at December 31, 2022 $ ( 10,428 ) $ 701 $ ( 9,727 ) Balance at December 31, 2022 $ ( 10,428 ) $ 701 $ ( 9,727 ) Other comprehensive income (loss) before 773 ( 82 ) 691 Amounts reclassified from AOCI 3,711 ( 619 ) 3,092 Other comprehensive income (loss) (1) 4,484 ( 701 ) 3,783 Balance at December 31, 2023 $ ( 5,944 ) $ — $ ( 5,944 ) (1) All amounts are net of income tax including a deferred tax valuation allowance equal to the net tax benefit. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Credit Exposures | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments with Off-Balance Sheet Credit Exposures [Abstract] | |
Financial Instruments with Off-Balance Sheet Credit Exposures | 16. Financial Instruments with Off-Balance Sheet Credit Exposures The Company is 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 originate loans, unadvanced funds on loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract 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 loan commitments and standby letters of credit is represented by the contractual amounts 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 originate loans are agreements to lend to a customer provided 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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but generally includes secured interests in mortgages. Standby letters of credit are conditional commitments issued by the Bank to guarantee 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. Notional amounts of financial instruments with off-balance sheet credit risk are approximately as follows as of December 31: 2023 2022 Unadvanced portions of loans $ 46,175 $ 44,929 Commitments to originate loans 34,074 16,134 Standby letters of credit 125 302 The Company records an ACL for off-balance sheet credit exposures that are not unconditionally cancelable through a charge to the provision for credit losses on the Company’s consolidated statements of loss. At December 31, 2023 and 2022, the ACL for off-balance sheet credit exposures totaled $ 391,000 and $ 18,000 , respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The provision for credit losses for off-balance sheet credit exposures for the years ended December 31, 2023 and 2022 was $ 83,000 and $- 0 -, respectively. In the ordinary course of business, the Company may be subject to various legal proceedings. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings will not be material to the consolidated balance sheet or consolidated statements of loss. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Regulatory Matters [Abstract] | |
Regulatory Matters | 17. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below). As of December 31, 2023, the most recent notification from the Office of the Comptroller of the Currency 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 capital amounts and ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes that, as of December 31, 2023 and 2022, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer, at those dates. The following table presents actual and required capital ratios as of December 31, 2023 and 2022 for the Bank under the Basel Committee on Banking Supervisions capital guidelines for U.S. banks (“Basel III Capital Rules”) as fully phased-in on January 1, 2019. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Minimum Minimum Capital Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total Capital (to risk- weighted assets) $ 55,701 15.32 % $ 29,090 8.00 % $ 36,363 10.00 % $ 38,181 10.50 % Tier 1 Capital (to risk- weighted assets) 51,878 14.27 21,818 6.00 29,090 8.00 30,908 8.50 Tier 1 Capital (to average assets) 51,878 9.19 22,592 4.00 28,240 5.00 22,592 4.00 Common Equity Tier 1 (to risk-weighted assets) 51,878 14.27 16,363 4.50 23,636 6.50 25,454 7.00 As of December 31, 2022 Total Capital (to risk-weighted assets) $ 52,475 15.53 % $ 27,028 8.00 % $ 33,785 10.00 % $ 35,474 10.50 % Tier 1 Capital (to risk-weighted assets) 48,821 14.45 20,271 6.00 27,028 8.00 28,717 8.50 Tier 1 Capital (to average assets) 48,821 9.20 21,224 4.00 26,530 5.00 21,224 4.00 Common Equity Tier 1 (to risk-weighted assets) 48,821 14.45 15,203 4.50 21,960 6.50 23,649 7.00 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Treasury Stock | 18. Treasury Stock Common Stock Repurchases On September 23, 2020, the board of directors of First Seacoast Bancorp (a federal corporation) authorized the repurchase of up to 114,403 shares of First Seacoast Bancorp's (a federal corporation) outstanding common stock (adjusted for the second step conversion transaction), which equals approximately 2.2 % of all shares then outstanding and approximately 5.0 % of the then outstanding shares owned by stockholders other than First Seacoast Bancorp, MHC. The Company holds repurchased shares in its treasury. As of December 31, 2022, First Seacoast Bancorp (a federal corporation) had repurchased all 114,403 shares authorized (adjusted for the second step conversion transaction). Equity Incentive Plan A certain member of management elected to surrender 549 and 496 (adjusted for the second step conversion transaction) shares of a vested restricted stock award on November 18, 2023 and 2022, respectively, in lieu of a cash payment for the tax liabilities associated with the time-vesting of their award. The Company holds these shares in its treasury. As of December 31, 2023 and 2022, the Company held a total of 115,448 and 114,899 (adjusted for the second step conversion transaction) shares in its treasury, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 19. Derivatives and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. These derivative financial instruments are reported at fair value in other assets or other liabilities and are not reported on a net basis. Derivatives Designated as Hedging Instruments Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed rate payments or the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without exchange of the underlying notional amount. The Company entered into two $ 5 million notional interest rate swaps that were designated as cash flow hedges on 90-day advances from FHLB. The purpose of these cash flow hedges was to reduce potential interest rate risk by swapping a variable rate borrowing to a fixed rate. Management deemed it prudent to limit the variability of these interest payments by entering into these interest rate swap agreements. These agreements provided for the Company to receive payments at a variable rate determined by a specific index (three-month LIBOR) in exchange for making payments at a fixed rate. Publication of LIBOR is expected to cease in December of 2024. The swap agreements allowed for substitution of an alternative reference rate such as the secured overnight financing rate (“SOFR”) at that time. On January 17, 2023, the Company terminated both of its interest rate swap derivative instruments at a gain of $ 849,000 . The Company recognized the change in fair value of these hedging instruments, previously accumulated in AOCI, as a gain on termination of interest rate swaps in its consolidated statement of loss for the year ended December 31, 2023 as it was determined that it was probable that the hedged forecasted transaction - the variability in cash flows related to 90-day advances from the FHLB - would not occur by the end of the original maturity dates of the hedging instruments. The use of derivatives for debt hedging as part of the Company's overall interest rate risk management strategy has been infrequent as the Company has utilized other interest rate risk management activities to achieve similar business purposes. Also, $ 536,000 of cash posted to the counterparty as collateral on these interest rate swaps contracts was returned to the Company. The changes in the fair value of interest rate swaps were reported in other comprehensive income (loss) and were subsequently reclassified into interest expense or income in the period that the hedged transactions affected earnings. The change in fair value for these derivative instruments for the year ended December 31, 2023 and 2022, was $( 112,000 ) and $ 761,000 for the years ended December 31, 2023 and 2022, respectively. At December 31, 2022, the fair value of interest rate swap derivatives resulted in an asset of $ 961,000 and is recorded in other assets. The following table summarizes the Company's cash flow hedges associated with its interest rate risk management activities: December 31, 2022 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68 % $ 5,000 $ 431 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74 % $ 5,000 $ 530 $ — Total Hedging Instruments $ 10,000 $ 961 $ — Hedged Items: Variability in cash flows N/A $ — $ 10,000 The following table summarizes the effect of cash flow hedge accounting on the consolidated statements of loss for the years ended December 31, 2023 and 2022: Location and Amount of Loss Recognized in 2023 2022 (Dollars in thousands) Interest Other Interest Other The effect of cash flow hedge accounting: Amount reclassified from AOCI into expense $ — $ — $ 115 $ — Fair Value Hedges of Interest Rate Risk During 2023, the Company entered into interest rate contracts that were designated as fair value hedges utilizing a pay fixed interest rate swap to hedge portions of the residential mortgage loan portfolio's change in fair value attributable to the movement in the one-month SOFR. Additionally, the Company entered into an interest rate contract that was designated as fair value hedge utilizing a pay fixed interest rate swap to hedge a portion of the securities available-for-sale municipal bond portfolio's change in fair value attributable to the movement in the one-month SOFR. The Company is exposed to changes in the fair value of certain pools of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. The Company's interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreement without the exchange of the underlying notional amount. The hedging strategy effectively converts these fixed-rate assets to SOFR floating rate assets for the term of the swap starting on the effective date. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of December 31, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Location in Consolidated Balance Sheets Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (Dollars in thousands) 2023 2022 2023 2022 Securities available-for-sale, at fair value $ 10,126 $ — $ 126 $ — Total loans 50,632 — 632 — Total $ 60,758 $ — $ 758 $ — The carrying amount of the hedged asset located in “total loans” includes the amortized cost basis of closed portfolios of fixed-rate residential loans used to designate hedging relationships in which the hedged items are the stated amount of assets anticipated to be outstanding for the designated hedged period. At December 31, 2023, the amortized cost basis of the closed portfolios of fixed-rate residential loans used in the hedging relationship was approximately $ 62.2 million; the cumulative basis adjustments associated with this hedging relationship was $ 632,000 ; and the notional amount of the designated hedged item was $ 50.0 million. Under the "portfolio layer" approach, the Company designated a $ 50.0 million notional amount of portfolio assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows of the designated hedged layer. The carrying amount of the hedged asset located in “securities available-for-sale, at fair value” includes the principal amount of municipal bonds used to designate hedging relationships in which the hedged items are the stated amount of assets anticipated to be outstanding for the designated hedged period. At December 31, 2023, the fair value of the principal amount of municipal bonds used in this hedging relationship was approximately $ 19.3 million; the cumulative basis adjustments associated with these hedging relationships was $ 126,000 ; and the notional amount of the designated hedged items were $ 10.0 million. Under the "portfolio layer" approach, the Company designated a $ 10.0 million notional amount of portfolio assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows of the designated hedged layer. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of potential loss exposure. At December 31, 2023, the Company’s fair value hedges had a remaining maturity of 2.73 years, an average pay fixed rate of 4.29 % and an average received rate of 5.32 %. The Company had no fair value hedges at December 31, 2022. Derivatives not Designated as Hedging Instruments Customer Loan Swaps Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain commercial banking customers. On May 19, 2023, the Company entered into an interest rate swap with a commercial loan borrower. The Company executes interest rate swaps with customers to facilitate their respective risk management strategies. The interest rate swap contract with the commercial loan borrower allows them to convert floating-rate loan payments based on SOFR to fixed-rate loan payments. This interest rate swap is simultaneously hedged by an offsetting derivative that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivative and the offsetting derivative are recognized directly in earnings. The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheet: Derivative Assets Derivative Liabilities Notional Amount Location Fair Value Notional Amount Location Fair Value (Dollars in thousands) December 31, 2023 Derivatives designated as hedging instruments: Interest rate contracts - fair value hedge $ 60,000 Other assets $ — $ — Other liabilities $ 758 Total derivatives designated as hedging instruments $ — $ 758 Derivatives not designated as hedging instruments: Customer loan swaps $ 4,766 Other assets $ 90 $ 4,766 Other liabilities $ 90 Total derivatives not designated as hedging instruments $ 90 $ 90 December 31, 2022 Derivatives designated as hedging instruments: Interest rate contracts - cash flow hedge $ 10,000 Other assets $ 961 $ — Other liabilities $ — Total derivatives designated as hedging instruments $ 961 $ — The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of loss for years ended December 31, 2023 and 2022: Amount of Gain Recognized in Income 2023 2022 (Dollars in thousands) Location of Gain Customer loan swaps Interest and fees on loans $ 83 $ — Credit-risk-related Contingent Features By entering into derivative transactions, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, and other monitoring procedures. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s board of directors. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. As of December 31, 2023 and 2022, the Company posted $ 1.6 million and $ 535,000 , respectively, of cash to the counterparties as collateral on its interest rate swap contracts and customer loan swaps, which was presented within cash and due from banks on the consolidated balance sheets. Balance Sheet Offsetting Certain financial instruments may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Generally, the Company does not offset such financial instruments for financial reporting purposes. The following tables present the information about derivative positions that are eligible for offset in the consolidated balance sheets as of December 31, 2023 and 2022: Gross Amounts Not Offset (Dollars in thousands) Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Pledged (Received) Cash Collateral Pledged (Received) (1) Net Amount December 31, 2023 Derivative Assets: Interest rate contracts(2) $ — $ — $ — $ — $ — $ — Customer loan swaps - dealer bank(3) 90 — 90 — 90 — Total $ 90 $ — $ 90 $ — $ 90 $ — Derivative Liabilities: Interest rate contracts(2) $ 758 $ — $ 758 $ — $ 758 $ — Customer loan swaps - commercial customer(3) 90 — 90 — — 90 Total $ 848 $ — $ 848 $ — $ 758 $ 90 December 31, 2022 Derivative Assets: Interest rate contracts(2) $ 961 $ — $ 961 $ — $ 535 $ 426 (1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated balance sheets. (2) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts. (3) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. The Company does not post collateral to its commercial customers as part of its contract. At December 31, 2023 and 2022, there were no derivatives in a net liability position related to these agreements. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | 20. Fair Values of Assets and Liabilities Determination of Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the observability and reliability of the assumptions used to determine fair value. Level 1 – Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented therein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. 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 at December 31, 2023 and 2022. Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following: Securities Available-for-Sale : The Company’s investment in U.S. Government-sponsored entities bonds, U.S Government agency small business administration pools guaranteed by the SBA, collateralized mortgage obligations issued by the FHLMC, FNMA, and GNMA residential mortgage-backed securities, other municipal bonds, corporate debt and corporate subordinated debt is generally classified within Level 2 of the fair value hierarchy. For these securities, the Company obtains fair value measurements from independent pricing services or uses fair value measurements considering observable market data. The fair value measurements consider observable data that may include reported trades, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. Mortgage Servicing Rights : Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (see Note 7 Loan Servicing, for more information). These assumptions are inherently sensitive to change as these unobservable inputs are not based on quoted prices in active markets or otherwise observable. Derivative Instruments and Hedges: The valuation of these instruments is determined using the discounted cash flow method on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2023 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 1,398 $ — $ 1,398 $ — U.S Government agency small business administration 15,583 — 15,583 — Collateralized mortgage obligations issued by 2,474 — 2,474 — Residential mortgage-backed-securities 38,221 — 38,221 — Municipal bonds 54,692 — 54,692 — Corporate debt 492 — 492 — Corporate subordinated debt 8,994 — 8,994 — Other assets: Mortgage servicing rights 339 — — 339 Derivatives 90 — 90 — Other liabilities: Derivatives 848 — 848 — Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2022 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 1,826 $ — $ 1,826 $ — U.S Government agency small business administration 8,359 — 8,359 — Collateralized mortgage obligations issued by 6,222 — 6,222 — Residential mortgage-backed-securities 21,823 — 21,823 — Municipal bonds 62,416 — 62,416 — Corporate debt 497 — 497 — Corporate subordinated debt 4,957 — 4,957 — Other assets: Mortgage servicing rights $ 357 — — 357 Derivatives 961 — 961 — For the years ended December 31, 2023 and 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage Servicing Rights (1) Balance as of January 1, 2023 $ 357 Included in net loss ( 18 ) Balance as of December 31, 2023 $ 339 Total unrealized net gains (losses) $ — Balance as of January 1, 2022 $ 322 Included in net loss 35 Balance as of December 31, 2022 $ 357 Total unrealized net gains (losses) $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of loss. For Level 3 assets measured at fair value on a recurring basis as of December 31, 2023 and 2022, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2023 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 5.35 % - 20.53 % 6.85 % $ 339 Discount Rate 9.375 % - 9.375 % 9.38 % Delinquency Rate 2.08 % - 2.60 % 2.17 % Default Rate 0.12 % - 0.14 % 0.14 % December 31, 2022 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 6.48 % - 23.49 % 7.78 % $ 357 Discount Rate 9.50 % - 9.50 % 9.50 % Delinquency Rate 2.13 % - 2.79 % 2.24 % Default Rate 0.14 % - 0.20 % 0.15 % (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average prepayment rate, weighted-average discount rate, weighted average delinquency rate and weighted-average default rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other. The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Observable and unobservable inputs are entered into this model as prescribed by an independent third party to arrive at an estimated fair value. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods may include certain individually evaluated loans reported at the fair value of the underlying collateral. Fair value is measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, real estate collateral related nonrecurring fair value measurement adjustments have generally been classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace, and therefore, such valuations have been classified as Level 3. Financial assets measured at fair value on a non-recurring basis during the reported periods also include loans held for sale. Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. The fair values for loans held for sale are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality and are included in Level 3. At December 31, 2023 and 2022, there were no assets measured at fair value on a nonrecurring basis. Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis generally include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses and certain foreclosed assets which, subsequent to their initial recognition, are remeasured at fair value through a write-down included in other non-interest expense. There were no foreclosed assets at December 31, 2023 or 2022. 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. At December 31, 2023 and 2022, fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Summary of Fair Values of Financial Instruments not Carried at Fair Value The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments not carried at fair value at December 31 are as follows: (Dollars in thousands) Carrying Fair Level 1 Level 2 Level 3 December 31, 2023 Financial Assets: Cash and due from banks $ 6,069 $ 6,069 $ 6,069 $ — $ — Federal Home Loan Bank stock 2,986 2,986 — 2,986 — Bank-owned life insurance 4,663 4,663 — 4,663 — Loans, net 426,641 376,772 — — 376,772 Accrued interest receivable 2,294 2,294 2,294 — — Financial Liabilities: Deposits $ 404,798 $ 403,489 $ 313,503 $ 89,986 $ — Advances from Federal Home Loan Bank 73,007 73,162 — 73,162 — Advances from Federal Reserve Bank 20,000 20,020 — 20,020 — Mortgagors’ tax escrow 640 640 — 640 — Accrued interest payable 380 380 380 — — December 31, 2022 Financial Assets: Cash and due from banks $ 8,250 $ 8,250 $ 8,250 $ — $ — Interest-bearing time deposits with other banks 747 747 — 747 — Federal Home Loan Bank stock 3,502 3,502 — 3,502 — Bank-owned life insurance 4,561 4,561 — 4,561 — Loans, net 398,924 361,402 — — 361,402 Accrued interest receivable 1,988 1,988 1,988 — — Financial Liabilities: Deposits $ 382,363 $ 379,714 $ 320,624 $ 59,090 $ — Advances from Federal Home Loan Bank 99,397 97,675 — 97,675 — Mortgagors’ tax escrow 938 938 — 938 — Accrued interest payable 95 95 95 — — |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 21. Condensed Financial Statements of Parent Company Financial information pertaining to First Seacoast Bancorp, Inc. only is as follows: CONDENSED BALANCE SHEETS December 31, 2023 2022 (Dollars in thousands) ASSETS Cash held at First Seacoast Bank $ 20,396 $ 9,346 Investment in First Seacoast Bank 41,984 37,925 Loan to First Seacoast Bank ESOP 4,196 2,025 Other assets 41 41 Total assets 66,618 49,337 LIABILITIES Other liabilities — — Total liabilities — — STOCKHOLDERS’ EQUITY Stockholders’ equity 66,618 49,337 Total liabilities and stockholders’ equity $ 66,618 $ 49,337 CONDENSED STATEMENTS OF LOSS For the Year Ended 2023 2022 (Dollars in thousands) Income: Interest on ESOP loan $ 309 $ 110 Expense: Miscellaneous expense — 4 Income before income tax expense and equity in 309 106 Income tax expense — 62 Net income before equity in undistributed net 309 44 Equity in undistributed net loss of ( 10,965 ) ( 609 ) Net loss $ ( 10,656 ) $ ( 565 ) CONDENSED STATEMENTS OF CASH FLOWS For the Year Ended 2023 2022 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 10,656 ) $ ( 565 ) Adjustments to reconcile net loss to net Undistributed net loss of First Seacoast Bank 10,965 609 Deferred tax expense — 60 Decrease in other assets — 2 Decrease in other liabilities — ( 2 ) Net cash provided by operating activities 309 104 CASH FLOWS FROM INVESTING ACTIVITIES: Capital contribution to First Seacoast Bank ( 12,811 ) — ESOP loan ( 2,244 ) — Principal payments received on ESOP loan 78 80 Net cash (used) provided by investing activities ( 14,977 ) 80 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the sale of common stock, net 25,622 — Return of capital from conversion of former First Seacoast Bancorp, MHC 100 — Treasury stock purchases ( 4 ) ( 623 ) Net cash provided (used) by financing activities 25,718 ( 623 ) Net change in cash 11,050 ( 439 ) Cash at beginning of year 9,346 9,785 Cash at end of year $ 20,396 $ 9,346 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On March 22, 2024, the Bank signed a letter of intent for the sale and leaseback of its five properties owned and operated by the Bank, which consists of its main office and branch, a building annex used primarily by its FSB Wealth Management division and three standalone branches. Each of the sold branches include an adjacent drive thru. All of the sold properties include an adjacent parking lot. Subject to the results of its due diligence, the Bank intends to enter into a purchase and sale agreement for these properties for an aggregate cash purchase price of $ 7.9 million. The Bank will concurrently enter into absolute net lease agreements with the purchaser under which the Bank will lease each of the properties under an initial term of 15 years. We will not close any branches or exit any markets as a result of the sale-leaseback transaction. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change relate to the determination of the allowance for credit losses and the valuation of deferred tax assets. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For the purpose of reporting cash flows, cash includes cash and due from banks with original maturities of 90 days or less. |
Reclassifications | Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. |
Securities Available for Sale | Securities Available-for-Sale The Company classifies the available-for-sale securities portfolio into the following major security types: U.S. Government-sponsored enterprise obligations, U.S. Government agency small business administration pools guaranteed by SBA, collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA, residential mortgage-backed securities, municipal bonds, corporate debt and corporate subordinated debt. Nearly all of the mortgage-backed securities held by the Company are issued by the U.S. government and its entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a history of no credit losses. The remainder of the residential mortgage-backed securities are non-agency collateralized mortgage obligations which currently carry investment-grade bond ratings. At December 31, 2023, municipal bonds are highly-rated and are issued by state and local governments with minimal credit risk. Available-for-sale securities consist of debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. These assets are carried at fair value. Unrealized holding gains and losses for these assets, net of related deferred income taxes adjusted for valuation allowances, are recorded in and reported as accumulated other comprehensive loss within stockholders’ equity. For debt securities in an unrealized loss position, the Company considers the extent of the unrealized loss and the financial condition and near-term prospects of the issuer. The Company also determines 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 write-down to fair value through a charge to earnings. For all other debt securities, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to this security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount the fair value is less than the amortized cost basis. Losses related to non-credit- related factors will be recorded in other comprehensive loss. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Debt securities are placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual is reversed against interest income. Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. Premiums and discounts are recognized in interest income using the interest method. Discounts are recognized over the period to maturity. Premiums are recognized over the period to call, if applicable. Otherwise, premiums are recognized over the period to maturity. |
Interest Bearing Time Deposits With Other Banks | Interest Bearing Time Deposits With Other Banks The Company maintained time deposits with other banks and credit unions, which were fully insured by the FDIC or National Credit Union Administration (“NCUA”). Balances were carried at cost and the time deposits carried terms of up to four years . |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank (“FHLB”) stock is carried at cost and can only be sold to the FHLB based on its current redemption policies. 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. Based on the most recent analysis of the FHLB, as of December 31, 2023, management deems its investment in FHLB stock to not be impaired. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for credit losses, net deferred loan origination fees/costs on originated loans or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance on a simple interest basis. The accrual of interest on loans is discontinued at the time the loan is 90 days past due or determined to be non-performing, if earlier. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for such loans is reversed against interest income. For payments received on such loans, the interest is accounted for on the cash-basis or recorded as a reduction to loan principal if recovery is not assured, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash receipts of interest income on non-performing 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 non-performing 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 a non-performing 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. |
Loan Origination Fees and Costs | Loan Origination Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the consolidated balance sheets with the related loan balances. The amount charged or credited to income is included with the related interest income. |
Allowance for Credit Losses ("ACL") | Allowance for Credit Losses ("ACL") Effective January 1, 2023 , the Company adopted the new accounting standard for credit losses, ASU No. 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended ("ASU 2016-13" or “ASC 326”)." This new accounting standard, commonly referred to as "CECL," significantly changed the methodology for accounting for reserves on loans and unfunded off-balance sheet credit exposures, including certain unfunded loan commitments and standby guarantees. ASU 2016-13 replaced the "incurred loss" methodology used to establish an allowance on loans and off-balance sheet credit exposures, with an "expected loss" approach. Under CECL, the ACL at each reporting period serves as a best estimate of projected credit losses over the contractual life of certain assets, adjusted for expected prepayments, given an expectation of economic conditions and forecasts as of the valuation date. Upon adoption of CECL, the Company made the following elections regarding accrued interest receivable: (i) present accrued interest receivable balances separately on the balance sheet on the consolidated statements of condition; (ii) exclude accrued interest from the measurement of the ACL, including investments and loans; and (iii) continue to write-off accrued interest receivable by reversing interest income. The Company has a policy in place to write-off accrued interest when a loan is placed on non-accrual. Accrued interest is written-off by reversing previously recorded interest income. For loans, write-off typically occurs when a loan has been in default for 90 days or more. An immaterial amount of accrued interest on non-accrual loans was written off during the year ended December 31, 2023, by reversing interest income. Historically, the Company has not experienced uncollectible accrued interest receivable on its securities available-for-sale. The ACL is the sum of various components including the following: (a) historical loss experience, (b) a reasonable and supportable forecast, (c) loans evaluated individually, and (d) changes in relevant environmental factors. The historical loss component is segmented by loan type and serves as the core of the ACL adequacy methodology. The Company has selected the Weighted Average Remaining Maturity Model (“WARM”), for the loss calculation of each of the Bank’s loan pools utilizing a third-party software application. The WARM uses a quarterly loss rate and future expectations of loan balances to calculate an ACL. A loss rate is applied to pool balances over time. CECL may create more volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures. Under CECL, the ACL may increase or decrease period to period based on many factors, including, but not limited to: (i) macroeconomic forecasts and conditions; (ii) forecast period and reversion speed; (iii) prepayment speed assumption; (iv) loan portfolio volumes and changes in mix; (v) credit quality; and (vi) various qualitative factors outlined in ASU 2016-13. The significant key assumptions used with the ACL calculation at December 31, 2023 using the CECL methodology, included: Macroeconomic factors (loss drivers): Monitoring and assessing local and national unemployment, changes in national GDP and other macroeconomic factors which may be the most predictive indicator of losses within the loan portfolio. The macroeconomic factors considered in determining the ACL may change from time to time. Forecast Period and Reversion speed: ASU 2016-13 requires a company to use a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers. Generally, the forecast period the Company believes to be reasonable and supportable will be set annually and validated through an assessment of economic leading indicators. In periods of greater volatility and uncertainty, such as the current interest rate environment, the Company will likely use a shorter forecast period, whereas when markets, economies, interest rate environment, political matters, and other factors are considered to be more stable and certain, a longer forecast period may be used. Also, in times of greater uncertainty, the Company may consider a range of possible forecasts and evaluate the probability of each scenario. Generally, the forecasted period is expected to range from one to three years. Once the reasonable and supportable forecast period is determined, ASU 2016-13 requires a company to revert its loss expectations to the long-run historical mean for the remainder of the contract life of the asset, adjusted for prepayments. In determining the length of time over which the reversion will take place (i.e., "reversion speed"), factors such as, historical credit loss experience over previous economic cycles, as well as where the Company believes it is within the current economic cycle, will be considered. At December 31, 2023, the Company has chosen a forecast period of four quarters which will be similar to the historical loss period between January 2014 and December 2016 and then reverting to the long-term average over the following two quarters using the straight-line reversion method. The Company believes this historical forecast period to be representative of potential economic conditions over the next eighteen months. Prepayment speeds: Prepayment speeds are determined for each loan segment utilizing the Company's historical loan data, as well as consideration of current environmental factors. The prepayment speed assumption is utilized with the WARM method to forecast expected cash flows over the contractual life of the loan, adjusted for expected prepayments. A higher prepayment speed assumption will drive a lower ACL, and vice versa. Qualitative factors: As within previous accounting guidance used for the "incurred loss" model, ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company continues to consider qualitative factors in determining and arriving at an ACL at each reporting period such as: (i) actual or expected changes in economic trends and conditions, (ii) changes in the value of underlying collateral for loans, (iii) changes to lending policies, underwriting standards and/or management personnel performing such functions, (iv) delinquency and other credit quality trends, (v) credit risk concentrations, if any, (vi) changes to the nature of the Company's business impacting the loan portfolio, (vii) and other external factors, that may include, but are not limited to, results of internal loan reviews and examinations by bank regulatory agencies. Certain loans which may not share similar risk characteristics with other loans in the portfolio may be tested individually for estimated credit losses, including (i) loans classified as special mention, substandard or doubtful and are on non-accrual, (ii) a loan modified for a borrower experiencing financial difficulty or (iii) loans that have other unique characteristics. Factors considered in measuring the extent of the expected credit loss for these loans may include payment status, collateral value, borrower's financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due. The ACL is measured on a collective basis for pools of loans with similar risk characteristics. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Owner occupied commercial real estate mortgage loans - Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business. Non-owner occupied commercial real estate and multi-family real estate loans - These loans represent investment real estate loans secured by office buildings, industrial buildings, warehouses, retail buildings, and multi-family residential housing. Repayment is primarily dependent on lease income generated from the underlying collateral. Consumer real estate mortgage loans - Consumer real estate mortgage consists primarily of loans secured by one- to four-family residential properties, including home equity loans and lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower. Acquisition, development and land loans - Acquisition, development and land loans include loans where the repayment is dependent on the successful completion and eventual sale, refinance or operation of the related real estate project. Acquisition, development and land loans include one- to four-family construction projects and commercial construction or rehabilitation endeavors such as warehouses, apartments, office and retail space and land acquisition and development. Commercial and industrial loans - Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows. Consumer and other loans - Consumer and other loans include all loans issued to individuals, primarily pre-existing Bank customers, not included in the consumer real estate mortgage classification and purchased loans secured by manufactured housing properties. Examples of consumer and other loans are automobile loans and other installment loans extended directly to the borrower. Consumer loans may be unsecured. Repayment is primarily dependent on the personal cash flow of the borrower. The WARM method uses an approach that begins with a quarterly loss rate and applies that rate to the loan pools of financial assets with similar risk characteristics noted above on a periodic basis over time for the remaining life expectation of each loan pool. Due to the Company’s limited loss experience, the Company has chosen to use peer group loss data in the calculation of the quarterly loss rate. A peer group was selected within the third-party software application which includes all banks between $ 300 million and $ 1 billion in asset size located in the northeastern United States. The historical loss component segmented by loan pool serves as the core of the ACL adequacy methodology. The remaining life calculation for each pool is calculated by the third-party software application using an attrition calculator that performs quarterly cohort-based attrition measurements using the actual historical experience of each loan pool. The estimated credit losses for all loan pools are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by the Company but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan portfolios. These adjustments are based upon quarterly trend assessments in portfolio concentrations, policy exceptions, associate retention, independent loan review results, competition and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. Additional qualitative considerations are made for any identified risk which did not exist within the portfolio historically and therefore may not be adequately addressed through evaluation of such risk factor based on historical portfolio trends as previously discussed. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: the Company has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. During the year ended December 31, 2023 , the Company adopted ASU 2022-02 , "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ," which eliminated the accounting guidance for troubled debt restructurings (TDRs) by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The allowance for credit losses on off-balance sheet commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet commitments is recognized as a liability (other liabilities in the consolidated balance sheet), with adjustments to the allowance recognized in the provision for credit losses in the consolidated statements of loss. The allowance for credit losses on off-balance sheet commitments is determined by estimating future draws and applying the expected loss utilization rates are below historical utilization rates, the rate difference is applied to the committed balance to estimate the future draw. Loss rates are estimated by utilizing the same loss rates calculated for the allowance for credit losses general reserves. While policies and procedures used to estimate the ACL, as well as the resultant provision for credit losses charged to loss, are considered adequate by the Company, they are necessarily approximate and imprecise. There are factors beyond the Company's control, such as changes in projected economic conditions, real estate markets or particular industry conditions which may materially impact asset quality and the adequacy of the ACL and thus the resulting provision for credit losses. Prior to the adoption of the new accounting standard for credit losses, the allowance for loan losses ("ALL") consisted of general, allocated and unallocated components. The general component of the ALL was based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: commercial real estate; multifamily; commercial and industrial; acquisition, development and land; one to four family residential; home equity loans and lines of credit and consumer. The Company used a rolling average of historical losses based on a timeframe appropriate to capture relevant loss data for each loan segment. This historical loss factor was adjusted for the following qualitative factors: levels/trends in delinquencies; credit quality trends; portfolio growth trends and concentrations; 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. Under previous accounting guidance, the allocated component related to loans which were classified as impaired. The Company assessed non-accrual loans and certain loans rated substandard or worse for impairment. Generally, impaired loans were collateral-dependent and impairment was measured through the collateral method. When the measurement of the impaired loan was less than the recorded investment in the loan, the impairment was recorded through the ALL. At December 31, 2022, the collateral values of collateral-dependent impaired loans was sufficient and no impairment charge was necessary. The unallocated component was maintained to cover uncertainties that could affect the Company's estimate of probable losses. The unallocated component of the ALL reflected the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Prior to January 1, 2023, when a loan was modified and a concession was made to a borrower experiencing financial difficulty, the modification was considered a TDR. An allowance for loan losses for loans that have been modified in a TDR is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercised significant judgment in developing these estimates. |
Land, Building and Equipment | Land, Building and Equipment Land is stated at cost. Building and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets or the lease term for leasehold improvements unless renewal is reasonably assured. Maintenance and repair costs are included in operating expenses while major expenditures for improvements are capitalized and depreciated. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. |
Bank-Owned Life Insurance | Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of loss and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15 % of Tier one capital, and the total cash surrender value of life insurance policies is limited to 25 % of Tier one capital at the time of purchase. |
Treasury Stock | Treasury Stock The Company records common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. |
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets Transfers of an entire financial asset, a group of entire financial assets or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company services mortgage loans for others. Loan servicing fee income is reported in the consolidated statements of loss as loan servicing fee income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Mortgage servicing rights (“MSR”) are initially recorded as an asset and measured at fair value when loans are sold to third parties with servicing rights retained. MSR are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s MSR accounted for under the fair value method are carried on the balance sheet at fair value with changes in fair value recorded in loan servicing fee income in the period in which the change occurs. Changes in the fair value of MSR are primarily due to changes in valuation inputs, assumptions and the collection and realization of expected cash flows. |
Customer List Intangible | Customer List Intangible On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a final adjusted purchase price of $ 324,000 (included in other assets at December 31, 2023 and 2022), of which $ 172,000 was paid at closing. Each client account was assigned a value, and as each client transferred to the Bank, 85 % of this value was paid to the seller. Once it was determined that the transition of client accounts was completed, the final purchase price was adjusted and a final payment made to the seller. As of December 31, 2023 and 2022, approximately $ 25.7 million and $ 23.0 million of purchased client accounts are included in total assets under management, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the years ended December 31, 2023 and 2022, $ 30,000 and $ 34,000 of amortization expense was recorded in other expense, respectively. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification (“ASC”) section 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit and investments securities, as well as revenue related to our mortgage servicing activities and bank owned life insurance, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606 and which are presented in our income statements as components of non-interest income are as follows: • Customer service fees—these represent general service fees for monthly account maintenance and activity- or transaction- based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer, debit card transaction or ATM withdrawal). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Investment service fees—these represent fees for investment advisory services, which are generally based on the market values of assets under management, and commissions earned on individual investment and insurance products purchased by clients of FSB Wealth Management. Revenue is recognized when a performance obligation is completed, which is generally monthly for investment advisory services or when an investment product is purchased. Payment for such performance obligations is generally received in the month following the time the performance obligations are satisfied. |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred and recorded within marketing expense. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the company the opportunity to own company common stock. The ESOP is a tax-qualified retirement plan for the benefit of company employees. |
Defined Contribution Plan | Defined Contribution Plan During the years ended December 31, 2023 and 2022, the Company sponsored a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company also made matching and profit-sharing contributions to eligible participants in accordance with plan provisions. |
Stock Based Compensation | Stock Based Compensation Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock or the granting of shares of restricted stock awards and restricted stock units. The 2021 Plan authorizes the issuance or delivery to participants of up to 348,801 converted shares of common stock (adjusted for the second step conversion transaction). Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 249,144 shares (adjusted for the second step conversion transaction), and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 99,657 shares (adjusted for the second step conversion transaction). The Company recognizes stock-based compensation based on the grant-date fair value of the award adjusted for actual forfeitures. The Company will value share-based stock option awards as granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. |
Defined Benefit Plan | Defined Benefit Plan The Company participated in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There were no collective bargaining agreements in place that required contributions to the Pentegra DB Plan. On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. On September 30, 2022, the Company proceeded with its notification to withdraw from the Pentegra DB Plan as of September 30, 2022 (see Note 12 Employee Benefits for more information). The Company’s funding policy was to make an annual contribution determined by the Pentegra DB Plan actuaries that will not be less than the minimum required contribution nor greater than the maximum federal income tax deductible limit. Contributions were based on the individual employer’s experience. |
Supplemental Executive Retirement Plans | Supplemental Executive Retirement Plans The Company maintains nonqualified supplemental executive benefit agreements with certain directors and its current and former Presidents and certain officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death and for the crediting to a liability account a fixed amount of compensation, which earns interest at a rate determined in the agreement. The Company recognizes the cost of providing these benefits over the time period the individuals render service through the retirement date. At each measurement date, the aggregate amount accrued equals the then present value of the benefits expected to be provided to the individual in exchange for the individual’s service to that date. |
Leases | Leases All leases with an initial term greater than 12 months recognize: (1) a Right of Use ("ROU" asset), which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term; and (2) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, each measured on a discounted basis. The Company elected to not separate lease and non-lease components. As a lessee, the majority of the operating lease portfolio consists of a real estate lease for one branch location and leases for certain equipment. The operating leases have remaining lease terms of one year to eight years , and in some instances include options to renew for periods up to four years . ROU assets and lease liabilities are not recognized for leases with an initial term of 12 months or less. Operating lease expense represents fixed lease payments for operating leases recognized on a straight-line basis over the applicable lease term (see Note 14, Leases, for more information). |
Income Taxes | Income Taxes Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. 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 provision for income taxes. The Company has evaluated the positions taken on its tax returns filed and the potential impact on its tax status as of December 31, 2023. The Company has concluded that no uncertain tax positions exist at December 31, 2023. Judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the consolidated balance sheets. The Company assesses the likelihood that deferred tax assets will be recovered from future taxable income and, to the extent the Company believes recovery is not likely, a valuation allowance is established. To the extent that the Company establishes or adjusts a valuation allowance in a period, an expense or benefit is recorded within the tax provision in the consolidated statements of loss. |
Comprehensive Loss | Comprehensive Loss Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net loss. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale, are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net loss, are components of comprehensive loss. The Company also records changes in the fair value of interest rate derivatives used in its cash flow hedging activities, net of deferred income tax, in comprehensive loss. |
Loss Per Share | Loss Per Share Basic loss per share represents loss allocable to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed in a manner similar to that of basic loss per share since the weighted-average number of common shares outstanding is not adjusted to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period in periods where a net loss was recognized. Unallocated ESOP shares are not deemed outstanding for loss per share calculations. Securities that could potentially dilute basic earnings per common share in the future (i.e., unvested restricted stock) were not included in the computation of diluted earnings per common share because to do so would have been antidilutive for 2023 and 2022. All unvested stock based compensation awards exclude the right to receive non-forfeitable dividends and are considered nonparticipating securities and exclude the right to participate with common stock in undistributed earnings for purposes of computing loss per share. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives designated as cash flow hedges, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. The Company formally assesses the effectiveness of each hedging transaction at inception, and on an on- going basis. When it is determined that the contract is no longer highly effective, the Company discontinues hedge accounting prospectively. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Company is a party settle monthly or quarterly. |
Risk And Uncertainties | Risks and Uncertainties Most of the Company’s business activity is with customers located within the New Hampshire and southern Maine Seacoast region. The Company's commercial real estate loans are secured by a variety of properties in its primary market area, including retail spaces, distribution centers, office buildings, manufacturing and warehouse properties, convenience stores and other local businesses, without any material concentrations in property type. The Company has limited exposure to non-owner occupied office space. Multi-family real estate loans are secured by properties consisting of five or more rental units in the Company's market area, including apartment buildings and student housing. Also, the Company’s exposure to the transportation and hospitality/restaurant industries amounted to less than 5 % of the gross loan portfolio at December 31, 2023 and 2022. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of December 31, 2023 , there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). In March 2022, the FASB issued ASU 2022-2, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” All other creditors must continue to apply the TDR accounting model until they adopt ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Due to the removal of the TDR accounting model, all loan modifications now will be accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities will be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage (that is, year of origination). This ASU becomes effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also during November 2019, the FASB issued ASU 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective dates for ASU 2016-02, “ Leases (Topic 842)” was deferred to fiscal years beginning after December 15, 2021. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” to increase stakeholders’ awareness of the amendments and to expedite improvements to the Codification. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses, Topic 326.” This ASU addresses certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. On October 16, 2019, the FASB approved a proposal to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Early adoption is permitted. See the next paragraph for further discussion regarding the implementation of this standard. In June 2016, the FASB issued ASU 2016-13 ,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which creates a new credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost (including loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected, through an allowance for credit losses that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. The measurement of credit losses for newly recognized financial assets (other than certain purchased assets) and subsequent changes in the allowance for credit losses are recorded in the statement of loss as the amounts expected to be collected change. The ASU was originally to be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” extending the implementation date by one year for smaller reporting companies and clarifying that operating lease receivables are outside the scope of Accounting. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today are still permitted, though the inputs to those techniques have changed to reflect the full lifetime amount of expected credit losses. The Company has selected a loss estimation methodology which utilizes a third-party software application. The Company has recorded the effect of implementing this ASU using a modified-retrospective approach through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU was effective, which was January 1, 2023 . The adoption of the new standard resulted in a decrease to its allowance for credit losses on loans (“ACL”). This decrease, though, was offset by an increase in the allowance for credit losses on off-balance sheet ("OBS") commitments that are not unconditionally cancelable. The decrease in ACL was due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is much more robust with broader time horizons as compared to the Company's actual historical loss data used under an incurred loss methodology. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements (see below and Note 6, Loans, for more information). January 1, 2023 CECL Transition (Day 1) Impact The CECL methodology reflects the Company's view of the state of the economy and forecasted macroeconomic conditions and their impact on the Company's loan portfolio as of the adoption date. The following table illustrates the impact of the adoption of ASU 2016-13: January 1, 2023 As reported under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (Dollars in thousands) ASSETS Allowance for credit losses on loans: Commercial real estate (CRE) $ 788 $ 942 $ ( 154 ) Multifamily (MF) 55 54 1 Commercial and industrial (C+I) 273 184 89 Acquisition, development, and land (ADL) 120 138 ( 18 ) 1-4 family residential (RES) 1,847 2,048 ( 201 ) Home equity line of credit (HELOC) 88 81 7 Consumer (CON) 114 100 14 Unallocated 1 34 ( 33 ) Allowance for credit losses on loans $ 3,286 $ 3,581 ( 295 ) LIABILITIES Allowance for credit losses on OBS credit exposures $ 308 $ 18 $ 290 STOCKHOLDERS' EQUITY Retained earnings $ 36,253 $ 36,248 $ 5 |
Recent Accounting Pronouncements Yet to be Adopted | Recent Accounting Pronouncements Yet To Be Adopted The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures," which provides updated guidance for segment reporting. The updated guidance requires enhanced disclosures for significant expenses by reportable operating segment. Significant expense categories and amounts are those regularly provided to the chief operating decision maker ("CODM") and included in the measure of a segment’s profit or loss. The updated guidance will also require the Company to disclose the title and position of its CODM, including an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The Company plans to adopt this ASU for the annual reporting period beginning January 1, 2024, and for interim periods beginning January 1, 2025. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” effective January 1, 2025, with early adoption permitted, updating accounting guidance. The updated guidance requires additional disclosure and disaggregated information in the income tax rate reconciliation using both percentages and reporting currency amounts, with additional qualitative explanations of individually significant reconciling items. The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by jurisdictional categories (federal (national), state and foreign). The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial statements. In January 2021, the FASB issued ASU 2021-1, “ Reference Rate Reform (Topic 848) (Scope), ” which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. This ASU was to become effective immediately for all entities on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. The effective date was extended by the issuance of ASU No. 2022-06, “ Reference Rate Reform (Topic 848), ” which defers the sunset date of Topic 848 from December 2022 to December 2024. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of impact of the adoption | The following table illustrates the impact of the adoption of ASU 2016-13: January 1, 2023 As reported under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (Dollars in thousands) ASSETS Allowance for credit losses on loans: Commercial real estate (CRE) $ 788 $ 942 $ ( 154 ) Multifamily (MF) 55 54 1 Commercial and industrial (C+I) 273 184 89 Acquisition, development, and land (ADL) 120 138 ( 18 ) 1-4 family residential (RES) 1,847 2,048 ( 201 ) Home equity line of credit (HELOC) 88 81 7 Consumer (CON) 114 100 14 Unallocated 1 34 ( 33 ) Allowance for credit losses on loans $ 3,286 $ 3,581 ( 295 ) LIABILITIES Allowance for credit losses on OBS credit exposures $ 308 $ 18 $ 290 STOCKHOLDERS' EQUITY Retained earnings $ 36,253 $ 36,248 $ 5 |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of December 31, 2023 and 2022: December 31, 2023 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 1,668 $ — $ ( 270 ) $ 1,398 U.S. Government agency small business administration 16,410 36 ( 863 ) 15,583 Collateralized mortgage obligations issued by the 2,958 — ( 484 ) 2,474 Residential mortgage-backed securities 41,186 653 ( 3,618 ) 38,221 Municipal bonds 57,192 1,087 ( 3,587 ) 54,692 Corporate debt 500 — ( 8 ) 492 Corporate subordinated debt 10,074 3 ( 1,083 ) 8,994 $ 129,988 $ 1,779 $ ( 9,913 ) $ 121,854 December 31, 2022 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 2,191 $ — $ ( 365 ) $ 1,826 U.S. Government agency small business administration 9,475 — ( 1,116 ) 8,359 Collateralized mortgage obligations issued by the 6,922 8 ( 708 ) 6,222 Residential mortgage-backed securities 26,390 — ( 4,567 ) 21,823 Municipal bonds 69,373 172 ( 7,129 ) 62,416 Corporate debt 500 — ( 3 ) 497 Corporate subordinated debt 5,550 — ( 593 ) 4,957 $ 120,401 $ 180 $ ( 14,481 ) $ 106,100 |
Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity | The amortized cost and fair values of available-for-sale securities at December 31, 2023 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2023 Amortized Fair Value (Dollars in thousands) Due in one year or less $ 1,767 $ 1,764 Due after one year through five years 500 492 Due after five years through ten years 10,917 9,530 Due after ten years 56,250 53,790 Total U.S. Government-sponsored enterprises obligations, 69,434 65,576 U.S. Government agency small business pools guaranteed (1) 16,410 15,583 Collateralized mortgage obligations issued by the FHLMC, (1) 2,958 2,474 Residential mortgage-backed securities (1) 41,186 38,221 Total $ 129,988 $ 121,854 (1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Summary of gross unrealized losses and fair value for those investments with unrealized losses | The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2023 and 2022. Less than 12 Months More than 12 Months Total Number of Fair Unrealized Number of Fair Unrealized Fair Unrealized (Dollars in thousands) December 31, 2023 U.S. Government sponsored — $ — $ — 3 $ 1,398 $ ( 270 ) $ 1,398 $ ( 270 ) U.S. Government agency small 8 8,432 ( 75 ) 5 3,899 ( 788 ) 12,331 ( 863 ) Collateralized mortgage — — — 4 2,474 ( 484 ) 2,474 ( 484 ) Residential mortgage 5 4,806 ( 53 ) 23 15,347 ( 3,565 ) 20,153 ( 3,618 ) Municipal bonds 1 1,941 ( 10 ) 49 30,729 ( 3,577 ) 32,670 ( 3,587 ) Corporate debt — — — 1 492 ( 8 ) 492 ( 8 ) Corporate subordinated debt 4 4,080 ( 82 ) 4 4,029 ( 1,001 ) 8,109 ( 1,083 ) 18 $ 19,259 $ ( 220 ) 89 $ 58,368 $ ( 9,693 ) $ 77,627 $ ( 9,913 ) December 31, 2022 U.S. Government sponsored 1 $ 453 $ ( 43 ) 3 $ 1,373 $ ( 322 ) $ 1,826 $ ( 365 ) U.S. Government agency small 8 5,947 ( 602 ) 3 2,412 ( 514 ) 8,359 ( 1,116 ) Collateralized mortgage 5 3,212 ( 209 ) 4 2,016 ( 499 ) 5,228 ( 708 ) Residential mortgage 8 4,239 ( 503 ) 23 16,649 ( 4,064 ) 20,888 ( 4,567 ) Municipal bonds 86 49,228 ( 5,900 ) 8 5,769 ( 1,229 ) 54,997 ( 7,129 ) Corporate debt 1 497 ( 3 ) — — — 497 ( 3 ) Corporate subordinated debt 4 4,457 ( 593 ) — — — 4,457 ( 593 ) 113 $ 68,033 $ ( 7,853 ) 41 $ 28,219 $ ( 6,628 ) $ 96,252 $ ( 14,481 ) |
Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities | Proceeds from sales, maturities, principal payments received and gross realized gains and losses on available-for-sale securities were as follows for the years ended December 31: December 31, 2023 2022 (Dollars in thousands) Proceeds from sales, maturities and principal payments $ 40,863 $ 9,872 Gross realized gains — 52 Gross realized losses ( 4,173 ) ( 799 ) Net realized losses $ ( 4,173 ) $ ( 747 ) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consisted of the following at December 31: 2023 2022 (Dollars in thousands) Commercial real estate (CRE) $ 86,566 $ 80,616 Multifamily (MF) 7,582 8,186 Commercial and industrial (C+I) 25,511 24,059 Acquisition, development, and land (ADL) 17,520 18,490 1-4 family residential (RES) 268,943 252,806 Home equity line of credit (HELOC) 14,093 10,161 Consumer (CON) 9,816 8,187 Total loans 430,031 402,505 Allowance for credit losses on loans ( 3,390 ) ( 3,581 ) Total loans, net $ 426,641 $ 398,924 |
Schedule of Allowance For Loans And Leases Receivable Classification | Changes in the ACL for the year ended December 31, 2023, under the CECL model, by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2022, Prior to Adoption of ASC 326 $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 Impact of adopting ASC 326 ( 154 ) 1 89 ( 18 ) ( 202 ) 7 14 ( 32 ) ( 295 ) Provision for credit losses on loans 42 21 ( 37 ) ( 15 ) ( 245 ) 68 244 27 105 Charge-offs — — — — — — ( 4 ) — ( 4 ) Recoveries — — — — — — 3 — 3 Balance, December 31, 2023 $ 830 $ 76 $ 236 $ 105 $ 1,601 $ 156 $ 357 $ 29 $ 3,390 Changes in the ALL for the year ended December 31, 2022, under the incurred loss model, by portfolio segment, are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance at December 31, 2021 $ 833 $ 80 $ 194 $ 178 $ 2,139 $ 63 $ 75 $ 28 $ 3,590 Provision for loan losses 109 ( 26 ) ( 14 ) ( 40 ) ( 91 ) 18 38 6 — Charge-offs — — — — — — ( 14 ) — ( 14 ) Recoveries — — 4 — — — 1 — 5 Balance at December 31, 2022 $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 As of December 31, 2022, information about loans and the ALL, by portfolio segment, are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total December 31, 2022 Loan Balances Individually evaluated for impairment $ — $ — $ — $ — $ 273 $ — $ 5 $ — $ 278 Collectively evaluated for impairment 80,616 8,186 24,059 18,490 252,533 10,161 8,182 — 402,227 Total $ 80,616 $ 8,186 $ 24,059 $ 18,490 $ 252,806 $ 10,161 $ 8,187 $ — $ 402,505 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 942 54 184 138 2,048 81 100 34 3,581 Total $ 942 $ 54 $ 184 $ 138 $ 2,048 $ 81 $ 100 $ 34 $ 3,581 |
Past Due Financing Receivables | The following is an aged analysis of past due loans by portfolio segment as of December 31, 2023: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ — $ — $ — $ — $ 86,566 $ 86,566 $ — MF — — — — 7,582 7,582 — C+I — — — — 25,511 25,511 — ADL — — — — 17,520 17,520 — RES — 131 — 131 268,812 268,943 127 HELOC — — 14 14 14,079 14,093 14 CON — — — — 9,816 9,816 — $ — $ 131 $ 14 $ 145 $ 429,886 $ 430,031 $ 141 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2022: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual CRE $ — $ — $ — $ — $ 80,616 $ 80,616 $ — MF — — — — 8,186 8,186 — C+I — — — — 24,059 24,059 — ADL — — — — 18,490 18,490 — RES — 84 — 84 252,722 252,806 84 HELOC 5 — — 5 10,156 10,161 — CON 7 — — 7 8,180 8,187 5 $ 12 $ 84 $ — $ 96 $ 402,409 $ 402,505 $ 89 |
Impaired Financing Receivables | The following table provides information on impaired loans as of and for the year ended December 31, 2022: As of December 31, 2022 At December 31, 2022 (Dollars in thousands) Recorded Unpaid Related Average Interest With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I — — — — — ADL — — — — — RES 273 273 — 446 32 HELOC — — — 57 3 CON 5 5 — 2 — Total impaired loans $ 278 $ 278 $ — $ 505 $ 35 |
Schedule of risk category of loans by portfolio segment by vintage under CECL methodology | Based upon the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of December 31, 2023: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total CRE: Risk rating: Pass $ 7,552 $ 10,849 $ 11,977 $ 2,268 $ 2,724 $ 18,713 $ 32,244 $ — $ 86,327 Special mention — — — — — 239 — — 239 Substandard — — — — — — — — — Total CRE 7,552 10,849 11,977 2,268 2,724 18,952 32,244 — 86,566 MF: Risk rating: Pass — 145 5,157 1,081 — 852 347 — 7,582 Special mention — — — — — — — — — Substandard — — — — — — — — — Total MF — 145 5,157 1,081 — 852 347 — 7,582 C+I: Risk rating: Pass 5,745 6,580 4,151 2,875 1,537 1,917 2,704 — 25,509 Special mention — — 2 — — — — — 2 Substandard — — — — — — — — — Total C+I 5,745 6,580 4,153 2,875 1,537 1,917 2,704 — 25,511 ADL: Risk rating: Pass 10,511 4,048 1,507 — 1,454 — — — 17,520 Special mention — — — — — — — — — Substandard — — — — — — — — — Total ADL 10,511 4,048 1,507 — 1,454 — — — 17,520 RES: Risk rating: Pass 19,533 43,517 64,226 50,675 20,021 70,844 — — 268,816 Special mention — — — — — — — — — Substandard — — — — — 127 — — 127 Total RES 19,533 43,517 64,226 50,675 20,021 70,971 — — 268,943 HELOC: Risk rating: Pass — — — — — — 14,079 — 14,079 Special mention — — — — — — — — — Substandard — — — — — — 14 — 14 Total HELOC — — — — — — 14,093 — 14,093 CON: Risk rating: Pass 2,902 3,145 1,966 1,512 215 76 — — 9,816 Special mention — — — — — — — — — Substandard — — — — — — — — — Total CON 2,902 3,145 1,966 1,512 215 76 — — 9,816 Total $ 46,243 $ 68,284 $ 88,986 $ 58,411 $ 25,951 $ 92,768 $ 49,388 $ — $ 430,031 |
Financing Receivable Credit Quality Indicators | The following presents the internal risk rating of loans by portfolio segment as of December 31, 2022: (Dollars in thousands) Pass Special Substandard Total CRE $ 77,930 $ 2,686 $ — $ 80,616 MF 8,186 — — 8,186 C+I 24,059 — — 24,059 ADL 18,490 — — 18,490 RES 252,722 — 84 252,806 HELOC 10,161 — — 10,161 CON 8,182 — 5 8,187 Total $ 399,730 $ 2,686 $ 89 $ 402,505 |
Activity of Loans | For the years ended December 31, 2023 and 2022, activity in these loans was as follows: December 31, (Dollars in thousands) 2023 2022 Loans outstanding – beginning of year $ 4,443 $ 4,849 Principal payments ( 552 ) ( 576 ) Advances 1,271 170 Loans outstanding – end of year $ 5,162 $ 4,443 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following summarizes activity in mortgage servicing rights for the years ended December 31, 2023 and 2022. (Dollars in thousands) 2023 2022 Balance, beginning of year $ 357 $ 322 Additions 4 6 Payoffs ( 7 ) ( 28 ) Change in fair value due to change in assumptions ( 15 ) 57 Balance, end of year $ 339 $ 357 |
Land, Buildings and Equipment (
Land, Buildings and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Land, Building and Equipment | Land, buildings and equipment consisted of the following at December 31, 2023 and 2022: (Dollars in thousands) 2023 2022 Land $ 995 $ 995 Buildings 3,167 3,167 Building & leasehold improvements 3,831 3,831 Furniture, fixtures and equipment 4,360 4,529 12,353 12,522 Less accumulated depreciation ( 8,281 ) ( 8,341 ) $ 4,072 $ 4,181 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposit Liabilities | Deposits consisted of the following at December 31, 2023 and 2022: (Dollars in thousands) 2023 2022 NOW and demand deposits $ 163,316 $ 204,739 Money market deposits 85,364 60,931 Savings deposits 64,823 54,954 Time deposits of $250,000 and greater 17,107 7,796 Time deposits less than $250,000 74,188 53,943 $ 404,798 $ 382,363 |
Maturities of Time Deposits | At December 31, 2023, the scheduled maturities of time deposits were as follows: (Dollars in thousands) Total 2024 $ 73,022 2025 14,399 2026 3,077 2027 569 2028 228 $ 91,295 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | A summary of borrowings from the FHLB are as follows: December 31, 2023 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 21,139 2024 0.00 % to 5.53 % – fixed 520 2025 0.00 % – fixed 50,000 2026 4.38 % to 4.48 % – fixed 718 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 73,007 December 31, 2022 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 96,729 2023 0.44 % to 4.38 % – fixed 800 2024 0.00 % – fixed 520 2025 0.00 % – fixed 718 2028 0.00 % – fixed 200 2030 0.00 % – fixed 430 2031 0.00 % – fixed $ 99,397 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Current and Deferred Components of Income Tax Expense (Benefit) | The current and deferred components of income tax expense (benefit) consisted of the following for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Federal State Total Federal State Total (Dollars in thousands) Current $ — $ 83 $ 83 $ ( 59 ) $ 109 $ 50 Deferred 3,382 479 3,861 ( 369 ) ( 132 ) ( 501 ) $ 3,382 $ 562 $ 3,944 $ ( 428 ) $ ( 23 ) $ ( 451 ) |
Schedule of Reasons for Differences in Amount Computed by U.S. Federal Income Tax Rates | Total income tax expense (benefit) is different from the amounts computed by applying the U.S. Federal income tax rates in effect to loss before income taxes. The reasons for these differences are as follows for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Amount % of Amount % of (Dollars in thousands) Computed “expected” tax benefit $ ( 1,410 ) ( 21.0 )% $ ( 213 ) ( 21.0 )% State tax expense (benefit), net of federal tax expense (benefit) ( 471 ) ( 7.0 ) ( 18 ) ( 1.8 ) BOLI income ( 21 ) ( 0.3 ) ( 21 ) ( 2.1 ) Valuation allowance 6,050 90.1 62 6.1 Income on tax exempt securities ( 242 ) ( 3.6 ) ( 252 ) ( 24.8 ) Other 38 0.6 ( 8 ) ( 0.8 ) $ 3,944 58.8 % $ ( 451 ) ( 44.4 )% |
Schedule of Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities at December 31, 2023 and 2022 are as follows: December 31, 2023 2022 (Dollars in thousands) Deferred tax assets: Allowance for credit losses $ 1,021 $ 977 Deferred compensation liabilities 558 494 Contribution carryforward 176 171 State tax credit carryforward 223 62 Depreciation 50 16 Securities available-for-sale 2,190 3,873 Net operating loss carryforward 2,566 707 Other 112 48 Subtotal 6,896 6,348 Less: valuation allowance ( 6,226 ) ( 171 ) Total deferred tax assets 670 6,177 Deferred tax liabilities: Interest rate swaps — ( 260 ) Prepaid expenses ( 37 ) ( 43 ) Net deferred loan costs ( 709 ) ( 661 ) Mortgage servicing rights ( 91 ) ( 96 ) Total deferred tax liabilities ( 837 ) ( 1,060 ) Net deferred tax (liabilities) assets, included in other (liabilities) assets $ ( 167 ) $ 5,117 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Company Compensation Expense for the ESOP | At December 31, 2023 and 2022, total unearned compensation for the ESOP was $ 4.0 million and $ 1.9 million, respectively. December 31, 2023 2022 (1) Shares held by the ESOP include the following: Allocated 39,864 29,898 Committed to be allocated 15,354 9,966 Unallocated 368,497 159,451 Total 423,715 199,315 (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Company Compensation Expense for the ESOP | At December 31, 2023 and 2022, total unearned compensation for the ESOP was $ 4.0 million and $ 1.9 million, respectively. December 31, 2023 2022 (1) Shares held by the ESOP include the following: Allocated 39,864 29,898 Committed to be allocated 15,354 9,966 Unallocated 368,497 159,451 Total 423,715 199,315 (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. |
Summary of Stock Options Outstanding | A summary of stock options outstanding as of December 31, 2023, and changes during the year ended December 31, 2023 is presented below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Stock options: (In Thousands) Balance at beginning of year — $ — — $ — Granted 249,144 8.06 9.4 — Vested — — — — Forfeited — — — — Balance at end of year 249,144 $ 8.06 9.4 $ — Date of grant 5/25/2023 Options granted 249,144 Exercise price $ 8.06 Vesting period (1) 3 years Expiration date 5/25/2033 Expected volatility 27.8 % Expected term 6.5 years Expected dividend yield 0 % Expected forfeiture rate 0 % Risk free interest rate 3.9 % Fair value per option $ 3.00 (1) Vesting is ratably and the period begins on the date of the grant. |
Summary of Non-vested Restricted Shares Outstanding | A summary of non-vested restricted shares outstanding as of December 31, 2023 and 2022, and changes during the years ended December 31, 2023 and 2022 is presented below: December 31, 2023 Number of Shares Weighted Average Grant Value Restricted stock: Non-vested at beginning of year (1) 64,785 $ 11.95 Granted 2,478 7.99 Vested ( 33,634 ) 11.80 Forfeited — — Non-vested at end of year 33,629 $ 11.80 December 31, 2022 (1) Number of Shares Weighted Average Grant Value Restricted stock: Non-vested at beginning of year 98,850 $ 11.95 Granted — — Vested ( 32,393 ) 11.95 Forfeited ( 1,672 ) 11.95 Non-vested at end of year 64,785 $ 11.95 (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Right-of-Use Asset and Net Lease Liability | The following table summarizes information related to the Company’s right-of-use asset and net lease liability: December 31, 2023 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 587 Other Assets Net lease liability 587 Other Liabilities December 31, 2022 Operating Leases Balance Sheet Location (Dollars in thousands) Right-of-use asset $ 202 Other Assets Net lease liability 202 Other Liabilities |
Components of Operating Lease Cost and Other Related Information | The components of operating lease cost and other related information are as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 Operating lease cost $ 63 $ 54 Short-term lease cost — — Variable lease cost (cost excluded from lease payments) — — Sublease income — — Total operating lease cost 63 54 Other Information: Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases 63 54 Operating lease - operating cash flows (liability reduction) $ — $ — Weighted average lease term remaining (in years) 5.85 4.37 Weighted average discount rate 4.79 % 3.29 % |
Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements | The total minimum lease payments due in future periods for lease agreements in effect at December 31, 2023 were as follows: As of December 31, 2023 Future Minimum Lease Payments (Dollars in thousands) 2024 126 2025 122 2026 120 2027 307 Total minimum lease payments 675 Less: interest ( 88 ) Total lease liability $ 587 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The Company reports certain items as “other comprehensive income (loss)" and reflects total accumulated other comprehensive loss (“AOCI”) in the consolidated financial statements for all years containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss: Year Ended December 31, Reclassification Adjustment 2023 2022 Affected Line Item (Dollars in thousands) Losses on sale of securities available-for-sale $ 4,173 $ 747 Securities losses, net Tax effect ( 1,123 ) ( 202 ) Income tax expense (benefit) 3,050 545 Net loss Net amortization of bond premiums 904 1,009 Interest on debt securities Tax effect ( 243 ) ( 274 ) Income tax expense (benefit) 661 735 Net loss Gain on termination of interest rate swaps ( 849 ) — Gain on termination of interest rate swaps Tax effect 230 — Income tax expense (benefit) ( 619 ) — Net loss Net interest expense on swaps — ( 115 ) Interest expense on borrowings Tax effect — 31 Income tax expense (benefit) — ( 84 ) Net loss Total reclassification adjustments $ 3,092 $ 1,196 |
Summary of Changes in Component of AOCI | The following tables present the changes in each component of AOCI for the periods indicated: (Dollars in thousands) Net Unrealized (Losses) (1) Net Unrealized Gains (Losses) on Cash Flow (1) AOCI (1) Balance at December 31, 2021 $ 575 $ 146 $ 721 Other comprehensive (loss) income before ( 12,283 ) 639 ( 11,644 ) Amounts reclassified from AOCI 1,280 ( 84 ) 1,196 Other comprehensive (loss) income (1) ( 11,003 ) 555 ( 10,448 ) Balance at December 31, 2022 $ ( 10,428 ) $ 701 $ ( 9,727 ) Balance at December 31, 2022 $ ( 10,428 ) $ 701 $ ( 9,727 ) Other comprehensive income (loss) before 773 ( 82 ) 691 Amounts reclassified from AOCI 3,711 ( 619 ) 3,092 Other comprehensive income (loss) (1) 4,484 ( 701 ) 3,783 Balance at December 31, 2023 $ ( 5,944 ) $ — $ ( 5,944 ) (1) All amounts are net of income tax including a deferred tax valuation allowance equal to the net tax benefit. |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Credit Exposures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments with Off-Balance Sheet Credit Exposures [Abstract] | |
Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk | Notional amounts of financial instruments with off-balance sheet credit risk are approximately as follows as of December 31: 2023 2022 Unadvanced portions of loans $ 46,175 $ 44,929 Commitments to originate loans 34,074 16,134 Standby letters of credit 125 302 The Company records an ACL for off-balance sheet credit exposures that are not unconditionally cancelable through a charge to the provision for credit losses on the Company’s consolidated statements of loss. At December 31, 2023 and 2022, the ACL for off-balance sheet credit exposures totaled $ 391,000 and $ 18,000 , respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The provision for credit losses for off-balance sheet credit exposures for the years ended December 31, 2023 and 2022 was $ 83,000 and $- 0 -, respectively. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Regulatory Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents actual and required capital ratios as of December 31, 2023 and 2022 for the Bank under the Basel Committee on Banking Supervisions capital guidelines for U.S. banks (“Basel III Capital Rules”) as fully phased-in on January 1, 2019. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Minimum Minimum Capital Actual Requirement Capitalized Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total Capital (to risk- weighted assets) $ 55,701 15.32 % $ 29,090 8.00 % $ 36,363 10.00 % $ 38,181 10.50 % Tier 1 Capital (to risk- weighted assets) 51,878 14.27 21,818 6.00 29,090 8.00 30,908 8.50 Tier 1 Capital (to average assets) 51,878 9.19 22,592 4.00 28,240 5.00 22,592 4.00 Common Equity Tier 1 (to risk-weighted assets) 51,878 14.27 16,363 4.50 23,636 6.50 25,454 7.00 As of December 31, 2022 Total Capital (to risk-weighted assets) $ 52,475 15.53 % $ 27,028 8.00 % $ 33,785 10.00 % $ 35,474 10.50 % Tier 1 Capital (to risk-weighted assets) 48,821 14.45 20,271 6.00 27,028 8.00 28,717 8.50 Tier 1 Capital (to average assets) 48,821 9.20 21,224 4.00 26,530 5.00 21,224 4.00 Common Equity Tier 1 (to risk-weighted assets) 48,821 14.45 15,203 4.50 21,960 6.50 23,649 7.00 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedges Associated with Interest Rate Risk Management Activities | The following table summarizes the Company's cash flow hedges associated with its interest rate risk management activities: December 31, 2022 (Dollars in thousands) Start Date Maturity Date Rate Notional Other Assets Other Liabilities Debt Hedging Hedging Instruments: Interest Rate Swap 2020 4/13/2020 4/13/2025 0.68 % $ 5,000 $ 431 $ — Interest Rate Swap 2021 4/13/2021 4/13/2026 0.74 % $ 5,000 $ 530 $ — Total Hedging Instruments $ 10,000 $ 961 $ — Hedged Items: Variability in cash flows N/A $ — $ 10,000 |
Summary of the Effect of Cash Flow Hedge Accounting | The following table summarizes the effect of cash flow hedge accounting on the consolidated statements of loss for the years ended December 31, 2023 and 2022: Location and Amount of Loss Recognized in 2023 2022 (Dollars in thousands) Interest Other Interest Other The effect of cash flow hedge accounting: Amount reclassified from AOCI into expense $ — $ — $ 115 $ — |
Summary of Balance Sheet Related to Cumulative Basis Adjustment for Fair Value Hedges | As of December 31, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Location in Consolidated Balance Sheets Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (Dollars in thousands) 2023 2022 2023 2022 Securities available-for-sale, at fair value $ 10,126 $ — $ 126 $ — Total loans 50,632 — 632 — Total $ 60,758 $ — $ 758 $ — |
Summary of Fair Values of Derivative Financial Instruments Classification on Consolidated Balance Sheets | The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheet: Derivative Assets Derivative Liabilities Notional Amount Location Fair Value Notional Amount Location Fair Value (Dollars in thousands) December 31, 2023 Derivatives designated as hedging instruments: Interest rate contracts - fair value hedge $ 60,000 Other assets $ — $ — Other liabilities $ 758 Total derivatives designated as hedging instruments $ — $ 758 Derivatives not designated as hedging instruments: Customer loan swaps $ 4,766 Other assets $ 90 $ 4,766 Other liabilities $ 90 Total derivatives not designated as hedging instruments $ 90 $ 90 December 31, 2022 Derivatives designated as hedging instruments: Interest rate contracts - cash flow hedge $ 10,000 Other assets $ 961 $ — Other liabilities $ — Total derivatives designated as hedging instruments $ 961 $ — |
Summary of Derivative Financial Instruments Not Designated as Hedging Instruments on Consolidated Statements of Loss | The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of loss for years ended December 31, 2023 and 2022: Amount of Gain Recognized in Income 2023 2022 (Dollars in thousands) Location of Gain Customer loan swaps Interest and fees on loans $ 83 $ — |
Summary of Derivative Positions Offset in Consolidated Balance Sheets | The following tables present the information about derivative positions that are eligible for offset in the consolidated balance sheets as of December 31, 2023 and 2022: Gross Amounts Not Offset (Dollars in thousands) Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Pledged (Received) Cash Collateral Pledged (Received) (1) Net Amount December 31, 2023 Derivative Assets: Interest rate contracts(2) $ — $ — $ — $ — $ — $ — Customer loan swaps - dealer bank(3) 90 — 90 — 90 — Total $ 90 $ — $ 90 $ — $ 90 $ — Derivative Liabilities: Interest rate contracts(2) $ 758 $ — $ 758 $ — $ 758 $ — Customer loan swaps - commercial customer(3) 90 — 90 — — 90 Total $ 848 $ — $ 848 $ — $ 758 $ 90 December 31, 2022 Derivative Assets: Interest rate contracts(2) $ 961 $ — $ 961 $ — $ 535 $ 426 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2023 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 1,398 $ — $ 1,398 $ — U.S Government agency small business administration 15,583 — 15,583 — Collateralized mortgage obligations issued by 2,474 — 2,474 — Residential mortgage-backed-securities 38,221 — 38,221 — Municipal bonds 54,692 — 54,692 — Corporate debt 492 — 492 — Corporate subordinated debt 8,994 — 8,994 — Other assets: Mortgage servicing rights 339 — — 339 Derivatives 90 — 90 — Other liabilities: Derivatives 848 — 848 — Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2022 Securities available-for-sale: U.S. Government-sponsored enterprises obligations $ 1,826 $ — $ 1,826 $ — U.S Government agency small business administration 8,359 — 8,359 — Collateralized mortgage obligations issued by 6,222 — 6,222 — Residential mortgage-backed-securities 21,823 — 21,823 — Municipal bonds 62,416 — 62,416 — Corporate debt 497 — 497 — Corporate subordinated debt 4,957 — 4,957 — Other assets: Mortgage servicing rights $ 357 — — 357 Derivatives 961 — 961 — |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | For the years ended December 31, 2023 and 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage Servicing Rights (1) Balance as of January 1, 2023 $ 357 Included in net loss ( 18 ) Balance as of December 31, 2023 $ 339 Total unrealized net gains (losses) $ — Balance as of January 1, 2022 $ 322 Included in net loss 35 Balance as of December 31, 2022 $ 357 Total unrealized net gains (losses) $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of loss. |
Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis | For Level 3 assets measured at fair value on a recurring basis as of December 31, 2023 and 2022, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2023 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 5.35 % - 20.53 % 6.85 % $ 339 Discount Rate 9.375 % - 9.375 % 9.38 % Delinquency Rate 2.08 % - 2.60 % 2.17 % Default Rate 0.12 % - 0.14 % 0.14 % December 31, 2022 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 6.48 % - 23.49 % 7.78 % $ 357 Discount Rate 9.50 % - 9.50 % 9.50 % Delinquency Rate 2.13 % - 2.79 % 2.24 % Default Rate 0.14 % - 0.20 % 0.15 % (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Value Measurements, Recurring and Nonrecurring | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments not carried at fair value at December 31 are as follows: (Dollars in thousands) Carrying Fair Level 1 Level 2 Level 3 December 31, 2023 Financial Assets: Cash and due from banks $ 6,069 $ 6,069 $ 6,069 $ — $ — Federal Home Loan Bank stock 2,986 2,986 — 2,986 — Bank-owned life insurance 4,663 4,663 — 4,663 — Loans, net 426,641 376,772 — — 376,772 Accrued interest receivable 2,294 2,294 2,294 — — Financial Liabilities: Deposits $ 404,798 $ 403,489 $ 313,503 $ 89,986 $ — Advances from Federal Home Loan Bank 73,007 73,162 — 73,162 — Advances from Federal Reserve Bank 20,000 20,020 — 20,020 — Mortgagors’ tax escrow 640 640 — 640 — Accrued interest payable 380 380 380 — — December 31, 2022 Financial Assets: Cash and due from banks $ 8,250 $ 8,250 $ 8,250 $ — $ — Interest-bearing time deposits with other banks 747 747 — 747 — Federal Home Loan Bank stock 3,502 3,502 — 3,502 — Bank-owned life insurance 4,561 4,561 — 4,561 — Loans, net 398,924 361,402 — — 361,402 Accrued interest receivable 1,988 1,988 1,988 — — Financial Liabilities: Deposits $ 382,363 $ 379,714 $ 320,624 $ 59,090 $ — Advances from Federal Home Loan Bank 99,397 97,675 — 97,675 — Mortgagors’ tax escrow 938 938 — 938 — Accrued interest payable 95 95 95 — — |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) - First Seacoast Bancorp (Parent) Company | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2023 2022 (Dollars in thousands) ASSETS Cash held at First Seacoast Bank $ 20,396 $ 9,346 Investment in First Seacoast Bank 41,984 37,925 Loan to First Seacoast Bank ESOP 4,196 2,025 Other assets 41 41 Total assets 66,618 49,337 LIABILITIES Other liabilities — — Total liabilities — — STOCKHOLDERS’ EQUITY Stockholders’ equity 66,618 49,337 Total liabilities and stockholders’ equity $ 66,618 $ 49,337 |
Schedule of Condensed Statements of Income | CONDENSED STATEMENTS OF LOSS For the Year Ended 2023 2022 (Dollars in thousands) Income: Interest on ESOP loan $ 309 $ 110 Expense: Miscellaneous expense — 4 Income before income tax expense and equity in 309 106 Income tax expense — 62 Net income before equity in undistributed net 309 44 Equity in undistributed net loss of ( 10,965 ) ( 609 ) Net loss $ ( 10,656 ) $ ( 565 ) |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the Year Ended 2023 2022 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 10,656 ) $ ( 565 ) Adjustments to reconcile net loss to net Undistributed net loss of First Seacoast Bank 10,965 609 Deferred tax expense — 60 Decrease in other assets — 2 Decrease in other liabilities — ( 2 ) Net cash provided by operating activities 309 104 CASH FLOWS FROM INVESTING ACTIVITIES: Capital contribution to First Seacoast Bank ( 12,811 ) — ESOP loan ( 2,244 ) — Principal payments received on ESOP loan 78 80 Net cash (used) provided by investing activities ( 14,977 ) 80 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the sale of common stock, net 25,622 — Return of capital from conversion of former First Seacoast Bancorp, MHC 100 — Treasury stock purchases ( 4 ) ( 623 ) Net cash provided (used) by financing activities 25,718 ( 623 ) Net change in cash 11,050 ( 439 ) Cash at beginning of year 9,346 9,785 Cash at end of year $ 20,396 $ 9,346 |
The Company - Additional Inform
The Company - Additional Information (Details) | 12 Months Ended | ||
Jan. 19, 2023 $ / shares shares | Dec. 31, 2023 Service Segment $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Number of core services | Service | 4 | ||
Number of reportable segment | Segment | 1 | ||
Common stock, price per share | $ / shares | $ 0.01 | $ 0.01 | |
Common stock issued | 5,192,612 | 5,183,536 | |
First Seacoast Bank Employee Stock Ownership Plan [Member] | First Seacoast Bancorp, Inc [Member] | |||
Common stock shares sold | 2,805,000 | ||
Common stock, price per share | $ / shares | $ 10 | ||
Common stock coversion ratio | 0.8358 | ||
Common stock issued | 224,400 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Aug. 17, 2021 USD ($) | May 27, 2021 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | |
Securities available-for-sale credit loss | $ 0 | |||
Assets | 571,035,000 | $ 537,424,000 | ||
Accounts purchase price | $ 324,000 | |||
Accounts purchase price, paid | $ 172,000 | 25,700,000 | 23,000,000 | |
Percentage of accounts receivables paid to seller | 85 | |||
Deposit assets, amortization expense from expirations | 30,000 | $ 34,000 | ||
Stock issued during period, shares, restricted stock award | shares | 99,657 | |||
Unrecognized Tax Benefits | $ 0 | |||
ASU 2022-2 [Member] | ||||
Change in accounting principle, accounting standards update, adoption date | Dec. 31, 2023 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
ASU 2016-13 [Member] | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2023 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
2021 Equity Incentive Plan [Member] | ||||
Common stock shares issued during period, new issues | shares | 348,801 | 348,801 | ||
Branch Office and Certain Equipment [Member] | ||||
Operating lease option to extend | true | |||
Operating lease, renewal term | 4 years | |||
Maximum [Member] | ||||
Certificates of deposit term | 4 years | |||
Life insurance policy with individual carrier as a percentage of tier one capital | 15% | |||
Total cash surrender value of life insurance policies as a percentage of tier one capital | 25% | |||
Exposure to transportation and hospitality industries in gross loan | 5% | |||
Maximum [Member] | Peer Group Loss Data [Member] | Northeastern United States [Member] | ||||
Assets | $ 1,000,000,000 | |||
Maximum [Member] | 2021 Equity Incentive Plan [Member] | ||||
Share-based payment arrangement, exercise of option | shares | 249,144 | 249,144 | ||
Stock issued during period, shares, restricted stock award | shares | 99,657 | |||
Maximum [Member] | Branch Office and Certain Equipment [Member] | ||||
Operating leases remaining lease terms | 8 years | |||
Minimum [Member] | Peer Group Loss Data [Member] | Northeastern United States [Member] | ||||
Assets | $ 300,000,000 | |||
Minimum [Member] | Branch Office and Certain Equipment [Member] | ||||
Operating leases remaining lease terms | 1 year |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Emerging growth of company status | (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). |
ASU 2022-2 [Member] | |
Change in accounting principle, accounting standards update, early adoption [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Dec. 31, 2023 |
ASU 2019-11 [Member] | |
Change in accounting principle, accounting standards update, early adoption [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
ASU 2019-04 [Member] | |
Change in accounting principle, accounting standards update, early adoption [true false] | true |
ASU 2016-13 | |
Change in accounting principle, accounting standards update, early adoption [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2023 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Summary of impact of the adoption (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets [Abstract] | ||||
Allowance for credit losses on loans | $ 3,390 | $ 3,581 | $ 3,590 | |
Liabilities [Abstract] | ||||
Allowance for credit losses on OBS credit exposures | 391,000 | 18,000 | ||
STOCKHOLDERS' EQUITY | ||||
Retained earnings | 25,597 | 36,248 | ||
ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | $ 3,286 | |||
Liabilities [Abstract] | ||||
Allowance for credit losses on OBS credit exposures | 308 | |||
STOCKHOLDERS' EQUITY | ||||
Retained earnings | 36,253 | |||
ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 3,581 | |||
Liabilities [Abstract] | ||||
Allowance for credit losses on OBS credit exposures | 18 | |||
STOCKHOLDERS' EQUITY | ||||
Retained earnings | 36,248 | |||
ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | (295) | (295) | ||
Liabilities [Abstract] | ||||
Allowance for credit losses on OBS credit exposures | 290 | |||
STOCKHOLDERS' EQUITY | ||||
Retained earnings | 5 | |||
CRE [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 830 | 942 | 833 | |
CRE [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 788 | |||
CRE [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 942 | |||
CRE [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | (154) | (154) | ||
MF [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 76 | 54 | 80 | |
MF [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 55 | |||
MF [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 54 | |||
MF [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 1 | 1 | ||
C+I [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 236 | 184 | 194 | |
C+I [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 273 | |||
C+I [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 184 | |||
C+I [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 89 | 89 | ||
ADL [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 105 | 138 | 178 | |
ADL [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 120 | |||
ADL [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 138 | |||
ADL [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | (18) | (18) | ||
RES [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 1,601 | 2,048 | 2,139 | |
RES [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 1,847 | |||
RES [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 2,048 | |||
RES [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | (201) | (202) | ||
HELOC [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 156 | 81 | 63 | |
HELOC [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 88 | |||
HELOC [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 81 | |||
HELOC [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 7 | 7 | ||
CON [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 357 | 100 | 75 | |
CON [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 114 | |||
CON [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 100 | |||
CON [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 14 | 14 | ||
Unallocated [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | $ 29 | 34 | $ 28 | |
Unallocated [Member] | ASU 2016-13 | As reported under ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 1 | |||
Unallocated [Member] | ASU 2016-13 | Pre-ASC 326 Adoption [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | 34 | |||
Unallocated [Member] | ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses on loans | $ (33) | $ (32) |
Interest Bearing Time Deposit_2
Interest Bearing Time Deposits with Other Banks - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Banking And Thrift1 [Abstract] | ||
Time deposits outstanding | $ 747,000 | |
Time deposits scheduled to mature during 2023 | $ 747,000 |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of amortized cost and fair value of securities available-for-sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Amortized Cost | $ 129,988 | $ 120,401 | |
Gross Unrealized Gains | 1,779 | 180 | |
Gross Unrealized Losses | (9,913) | (14,481) | |
Fair Value | 121,854 | 106,100 | |
U.S. Government-sponsored enterprises obligations [Member] | |||
Amortized Cost | 1,668 | 2,191 | |
Gross Unrealized Losses | (270) | (365) | |
Fair Value | 1,398 | 1,826 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Amortized Cost | 16,410 | [1] | 9,475 |
Gross Unrealized Gains | 36 | ||
Gross Unrealized Losses | (863) | (1,116) | |
Fair Value | 15,583 | [1] | 8,359 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Amortized Cost | 2,958 | [1] | 6,922 |
Gross Unrealized Gains | 8 | ||
Gross Unrealized Losses | (484) | (708) | |
Fair Value | 2,474 | [1] | 6,222 |
Residential mortgage backed securities [Member] | |||
Amortized Cost | 41,186 | [1] | 26,390 |
Gross Unrealized Gains | 653 | ||
Gross Unrealized Losses | (3,618) | (4,567) | |
Fair Value | 38,221 | [1] | 21,823 |
Municipal bonds [Member] | |||
Amortized Cost | 57,192 | 69,373 | |
Gross Unrealized Gains | 1,087 | 172 | |
Gross Unrealized Losses | (3,587) | (7,129) | |
Fair Value | 54,692 | 62,416 | |
Corporate debt [Member] | |||
Amortized Cost | 500 | 500 | |
Gross Unrealized Losses | (8) | (3) | |
Fair Value | 492 | 497 | |
Corporate subordinated debt [Member] | |||
Amortized Cost | 10,074 | 5,550 | |
Gross Unrealized Gains | 3 | ||
Gross Unrealized Losses | (1,083) | (593) | |
Fair Value | $ 8,994 | $ 4,957 | |
[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Securities Available-for-Sale_2
Securities Available-for-Sale - Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Due in one year or less | $ 1,767 | ||
Due after one year through five years, Amortized Cost | 500 | ||
Due after five years through ten years, Amortized Cost | 10,917 | ||
Due after ten years, Amortized Cost | 56,250 | ||
Total U.S. Government-sponsored enterprises obligations, municipal bonds, corporate debt and corporate subordinated debt | 69,434 | ||
Mortgage-backed securities, Amortized Cost | 129,988 | $ 120,401 | |
Due in one year or less, Fair value | 1,764 | ||
Due after one year through five years, Fair Value | 492 | ||
Due after five years through ten years, Fair Value | 9,530 | ||
Due after ten years, Fair Value | 53,790 | ||
Total U.S. Government-sponsored enterprises obligations, municipal bonds and corporate subordinated debt | 65,576 | ||
Mortgage-backed securities, Fair Value | 121,854 | 106,100 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Mortgage-backed securities, Amortized Cost | 16,410 | [1] | 9,475 |
Mortgage-backed securities, Fair Value | 15,583 | [1] | 8,359 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Mortgage-backed securities, Amortized Cost | 2,958 | [1] | 6,922 |
Mortgage-backed securities, Fair Value | 2,474 | [1] | 6,222 |
Residential mortgage backed securities [Member] | |||
Mortgage-backed securities, Amortized Cost | 41,186 | [1] | 26,390 |
Mortgage-backed securities, Fair Value | $ 38,221 | [1] | $ 21,823 |
[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Securities Available-for-Sale_3
Securities Available-for-Sale - Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | ||
Proceeds from sales, calls, maturities and principal payments received on securities available-for-sale | $ 40,863 | $ 9,872 |
Gross realized gains | 52 | |
Gross realized losses | (4,173) | (799) |
Net realized losses | $ (4,173) | $ (747) |
Securities Available-for-Sale_4
Securities Available-for-Sale - Summary of gross unrealized losses and fair value for those investments with unrealized losses (Detail) $ in Thousands | Dec. 31, 2023 USD ($) Number | Dec. 31, 2022 USD ($) Number |
Less than 12 Months, Number of Securities | Number | 18 | 113 |
Less than 12 Months, Fair Value | $ 19,259 | $ 68,033 |
Less than 12 Months, Unrealized Losses | $ (220) | $ (7,853) |
More than 12 Months, Number of Securities | Number | 89 | 41 |
More than 12 Months, Fair Value | $ 58,368 | $ 28,219 |
More than 12 Months, Unrealized Losses | (9,693) | (6,628) |
Total, Fair Value | 77,627 | 96,252 |
Total, Unrealized Losses | $ (9,913) | $ (14,481) |
U.S. Government-sponsored enterprises obligations [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | |
Less than 12 Months, Fair Value | $ 453 | |
Less than 12 Months, Unrealized Losses | $ (43) | |
More than 12 Months, Number of Securities | Number | 3 | 3 |
More than 12 Months, Fair Value | $ 1,398 | $ 1,373 |
More than 12 Months, Unrealized Losses | (270) | (322) |
Total, Fair Value | 1,398 | 1,826 |
Total, Unrealized Losses | $ (270) | $ (365) |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Less than 12 Months, Number of Securities | Number | 8 | 8 |
Less than 12 Months, Fair Value | $ 8,432 | $ 5,947 |
Less than 12 Months, Unrealized Losses | $ (75) | $ (602) |
More than 12 Months, Number of Securities | Number | 5 | 3 |
More than 12 Months, Fair Value | $ 3,899 | $ 2,412 |
More than 12 Months, Unrealized Losses | (788) | (514) |
Total, Fair Value | 12,331 | 8,359 |
Total, Unrealized Losses | $ (863) | $ (1,116) |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | ||
Less than 12 Months, Number of Securities | Number | 5 | |
Less than 12 Months, Fair Value | $ 3,212 | |
Less than 12 Months, Unrealized Losses | $ (209) | |
More than 12 Months, Number of Securities | Number | 4 | 4 |
More than 12 Months, Fair Value | $ 2,474 | $ 2,016 |
More than 12 Months, Unrealized Losses | (484) | (499) |
Total, Fair Value | 2,474 | 5,228 |
Total, Unrealized Losses | $ (484) | $ (708) |
Residential mortgage backed securities [Member] | ||
Less than 12 Months, Number of Securities | Number | 5 | 8 |
Less than 12 Months, Fair Value | $ 4,806 | $ 4,239 |
Less than 12 Months, Unrealized Losses | $ (53) | $ (503) |
More than 12 Months, Number of Securities | Number | 23 | 23 |
More than 12 Months, Fair Value | $ 15,347 | $ 16,649 |
More than 12 Months, Unrealized Losses | (3,565) | (4,064) |
Total, Fair Value | 20,153 | 20,888 |
Total, Unrealized Losses | $ (3,618) | $ (4,567) |
Municipal bonds [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | 86 |
Less than 12 Months, Fair Value | $ 1,941 | $ 49,228 |
Less than 12 Months, Unrealized Losses | $ (10) | $ (5,900) |
More than 12 Months, Number of Securities | Number | 49 | 8 |
More than 12 Months, Fair Value | $ 30,729 | $ 5,769 |
More than 12 Months, Unrealized Losses | (3,577) | (1,229) |
Total, Fair Value | 32,670 | 54,997 |
Total, Unrealized Losses | $ (3,587) | $ (7,129) |
Corporate debt [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | |
Less than 12 Months, Fair Value | $ 497 | |
Less than 12 Months, Unrealized Losses | (3) | |
More than 12 Months, Number of Securities | Number | 1 | |
More than 12 Months, Fair Value | $ 492 | |
More than 12 Months, Unrealized Losses | (8) | |
Total, Fair Value | 492 | 497 |
Total, Unrealized Losses | $ (8) | $ (3) |
Corporate subordinated debt [Member] | ||
Less than 12 Months, Number of Securities | Number | 4 | 4 |
Less than 12 Months, Fair Value | $ 4,080 | $ 4,457 |
Less than 12 Months, Unrealized Losses | $ (82) | (593) |
More than 12 Months, Number of Securities | Number | 4 | |
More than 12 Months, Fair Value | $ 4,029 | |
More than 12 Months, Unrealized Losses | (1,001) | |
Total, Fair Value | 8,109 | 4,457 |
Total, Unrealized Losses | $ (1,083) | $ (593) |
Securities Available-for-Sale_5
Securities Available-for-Sale - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) Security | Dec. 31, 2022 Security | |
Debt Securities, Available-for-Sale [Abstract] | ||
Securities available for sale | Security | 107 | |
Accrued interest receivable on available-for-sale securities | $ | $ 1.1 | |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Fair Value | |
Available-for-sale were pledged as collateral | $ | $ 74.1 | |
Number of holdings of securities aggregate carrying value exceeded ten percentage of stockholders' equity | Security | 0 | 0 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) | |
Accrued interest receivable | $ 1,200,000 | $ 989,000 | |
Non-Accrual Loans | 141,000 | 89,000 | |
Interest income recognized on non-accrual loans | 0 | ||
Loans past due over 90 days still accruing interest | 0 | ||
Loans outstanding | $ 5,162,000 | $ 4,443,000 | $ 4,849,000 |
Number of Loans | Loan | 0 | 0 | |
RES and HELOC [Member] | |||
Non-Accrual Loans | $ 141,000 | ||
Residential Real Estate [Member] | |||
Real estate appraial value | 216,000 | ||
Loans collateralized by real estate | $ 0 | $ 0 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Total loans | $ 430,031 | $ 402,505 | |
Allowance for credit losses on loans | (3,390) | (3,581) | $ (3,590) |
Net loans | 426,641 | 398,924 | |
CRE [Member] | |||
Total loans | 86,566 | 80,616 | |
Allowance for credit losses on loans | (830) | (942) | (833) |
MF [Member] | |||
Total loans | 7,582 | 8,186 | |
Allowance for credit losses on loans | (76) | (54) | (80) |
C+I [Member] | |||
Total loans | 25,511 | 24,059 | |
Allowance for credit losses on loans | (236) | (184) | (194) |
ADL [Member] | |||
Total loans | 17,520 | 18,490 | |
Allowance for credit losses on loans | (105) | (138) | (178) |
RES [Member] | |||
Total loans | 268,943 | 252,806 | |
Allowance for credit losses on loans | (1,601) | (2,048) | (2,139) |
HELOC [Member] | |||
Total loans | 14,093 | 10,161 | |
Allowance for credit losses on loans | (156) | (81) | (63) |
CON [Member] | |||
Total loans | 9,816 | 8,187 | |
Allowance for credit losses on loans | $ (357) | $ (100) | $ (75) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans - Transactions In The Allowance For Loan Losses ("ALL") (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Balance | $ 3,581 | $ 3,590 |
Provision for credit losses | 105 | |
Charge-offs | (4) | (14) |
Recoveries | 3 | 5 |
Balance | 3,390 | 3,581 |
ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | (295) | |
Balance | (295) | |
CRE [Member] | ||
Balance | 942 | 833 |
Provision for credit losses | 42 | 109 |
Balance | 830 | 942 |
CRE [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | (154) | |
Balance | (154) | |
MF [Member] | ||
Balance | 54 | 80 |
Provision for credit losses | 21 | (26) |
Balance | 76 | 54 |
MF [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | 1 | |
Balance | 1 | |
C+I [Member] | ||
Balance | 184 | 194 |
Provision for credit losses | (37) | (14) |
Recoveries | 4 | |
Balance | 236 | 184 |
C+I [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | 89 | |
Balance | 89 | |
ADL [Member] | ||
Balance | 138 | 178 |
Provision for credit losses | (15) | (40) |
Balance | 105 | 138 |
ADL [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | (18) | |
Balance | (18) | |
RES [Member] | ||
Balance | 2,048 | 2,139 |
Provision for credit losses | (245) | (91) |
Balance | 1,601 | 2,048 |
RES [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | (202) | |
Balance | (202) | |
HELOC [Member] | ||
Balance | 81 | 63 |
Provision for credit losses | 68 | 18 |
Balance | 156 | 81 |
HELOC [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | 7 | |
Balance | 7 | |
CON [Member] | ||
Balance | 100 | 75 |
Provision for credit losses | 244 | 38 |
Charge-offs | (4) | (14) |
Recoveries | 3 | 1 |
Balance | 357 | 100 |
CON [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | 14 | |
Balance | 14 | |
Unallocated [Member] | ||
Balance | 34 | 28 |
Provision for credit losses | 27 | 6 |
Balance | 29 | 34 |
Unallocated [Member] | ASU 2016-13 [Member] | Cumulative Adjustment for Change in Accounting Principle [Member] | ||
Balance | $ (32) | |
Balance | $ (32) |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans - Information About Loans And The ALL By Portfolio Segment Are Summarized (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Individually evaluated for impairment | $ 278 | ||
Collectively evaluated for impairment | 402,227 | ||
Total | $ 430,031 | 402,505 | |
Collectively evaluated for impairment | 3,581 | ||
Total | 3,390 | 3,581 | $ 3,590 |
CRE [Member] | |||
Collectively evaluated for impairment | 80,616 | ||
Total | 86,566 | 80,616 | |
Collectively evaluated for impairment | 942 | ||
Total | 830 | 942 | 833 |
MF [Member] | |||
Collectively evaluated for impairment | 8,186 | ||
Total | 7,582 | 8,186 | |
Collectively evaluated for impairment | 54 | ||
Total | 76 | 54 | 80 |
C+I [Member] | |||
Collectively evaluated for impairment | 24,059 | ||
Total | 25,511 | 24,059 | |
Collectively evaluated for impairment | 184 | ||
Total | 236 | 184 | 194 |
ADL [Member] | |||
Collectively evaluated for impairment | 18,490 | ||
Total | 17,520 | 18,490 | |
Collectively evaluated for impairment | 138 | ||
Total | 105 | 138 | 178 |
RES [Member] | |||
Individually evaluated for impairment | 273 | ||
Collectively evaluated for impairment | 252,533 | ||
Total | 268,943 | 252,806 | |
Collectively evaluated for impairment | 2,048 | ||
Total | 1,601 | 2,048 | 2,139 |
HELOC [Member] | |||
Collectively evaluated for impairment | 10,161 | ||
Total | 14,093 | 10,161 | |
Collectively evaluated for impairment | 81 | ||
Total | 156 | 81 | 63 |
CON [Member] | |||
Individually evaluated for impairment | 5 | ||
Collectively evaluated for impairment | 8,182 | ||
Total | 9,816 | 8,187 | |
Collectively evaluated for impairment | 100 | ||
Total | 357 | 100 | 75 |
Unallocated [Member] | |||
Collectively evaluated for impairment | 34 | ||
Total | $ 29 | $ 34 | $ 28 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans - Analysis Of Past Due Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total Past Due | $ 430,031 | |
Total | 430,031 | $ 402,505 |
Non-Accrual Loans | 141 | 89 |
30-59 Days Past Due [Member] | ||
Total Past Due | 12 | |
60-89 Days Past Due [Member] | ||
Total Past Due | 131 | 84 |
Greater than 90 Days [Member] | ||
Total Past Due | 14 | |
Total Past Due | ||
Total Past Due | 145 | 96 |
Current | ||
Total Past Due | 429,886 | 402,409 |
CRE [Member] | ||
Total Past Due | 86,566 | |
Total | 86,566 | 80,616 |
CRE [Member] | Current | ||
Total Past Due | 86,566 | 80,616 |
MF [Member] | ||
Total Past Due | 7,582 | |
Total | 7,582 | 8,186 |
MF [Member] | Current | ||
Total Past Due | 7,582 | 8,186 |
C+I [Member] | ||
Total Past Due | 25,511 | |
Total | 25,511 | 24,059 |
C+I [Member] | Current | ||
Total Past Due | 25,511 | 24,059 |
ADL [Member] | ||
Total Past Due | 17,520 | |
Total | 17,520 | 18,490 |
ADL [Member] | Current | ||
Total Past Due | 17,520 | 18,490 |
RES [Member] | ||
Total Past Due | 268,943 | |
Total | 268,943 | 252,806 |
Non-Accrual Loans | 127 | 84 |
RES [Member] | 60-89 Days Past Due [Member] | ||
Total Past Due | 131 | 84 |
RES [Member] | Total Past Due | ||
Total Past Due | 131 | 84 |
RES [Member] | Current | ||
Total Past Due | 268,812 | 252,722 |
HELOC [Member] | ||
Total Past Due | 14,093 | |
Total | 14,093 | 10,161 |
Non-Accrual Loans | 14 | |
HELOC [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 5 | |
HELOC [Member] | Greater than 90 Days [Member] | ||
Total Past Due | 14 | |
HELOC [Member] | Total Past Due | ||
Total Past Due | 14 | 5 |
HELOC [Member] | Current | ||
Total Past Due | 14,079 | 10,156 |
CON [Member] | ||
Total Past Due | 9,816 | |
Total | 9,816 | 8,187 |
Non-Accrual Loans | 5 | |
CON [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 7 | |
CON [Member] | Total Past Due | ||
Total Past Due | 7 | |
CON [Member] | Current | ||
Total Past Due | $ 9,816 | $ 8,180 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans - Provides Information On Impaired Loans (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Recorded Carrying Value | $ 278 |
Unpaid Principal Balance | 278 |
Average Recorded Investment | 505 |
Interest Income Recognized | 35 |
RES [Member] | |
Recorded Carrying Value | 273 |
Unpaid Principal Balance | 273 |
Average Recorded Investment | 446 |
Interest Income Recognized | 32 |
HELOC [Member] | |
Average Recorded Investment | 57 |
Interest Income Recognized | 3 |
CON [Member] | |
Recorded Carrying Value | 5 |
Unpaid Principal Balance | 5 |
Average Recorded Investment | $ 2 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans - Schedule Of Risk Category Of Loans By Portfolio Segment By Vintage Under CECL Methodology (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 46,243 |
2022 | 68,284 |
2021 | 88,986 |
2020 | 58,411 |
2019 | 25,951 |
Prior | 92,768 |
Revolving Loans Amortized Cost Basis | 49,388 |
Total loans | 430,031 |
CRE [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 7,552 |
2022 | 10,849 |
2021 | 11,977 |
2020 | 2,268 |
2019 | 2,724 |
Prior | 18,952 |
Revolving Loans Amortized Cost Basis | 32,244 |
Total loans | 86,566 |
CRE [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 7,552 |
2022 | 10,849 |
2021 | 11,977 |
2020 | 2,268 |
2019 | 2,724 |
Prior | 18,713 |
Revolving Loans Amortized Cost Basis | 32,244 |
Total loans | 86,327 |
CRE [Member] | Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Prior | 239 |
Total loans | 239 |
MF [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 145 |
2021 | 5,157 |
2020 | 1,081 |
Prior | 852 |
Revolving Loans Amortized Cost Basis | 347 |
Total loans | 7,582 |
MF [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 145 |
2021 | 5,157 |
2020 | 1,081 |
Prior | 852 |
Revolving Loans Amortized Cost Basis | 347 |
Total loans | 7,582 |
C+I [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 5,745 |
2022 | 6,580 |
2021 | 4,153 |
2020 | 2,875 |
2019 | 1,537 |
Prior | 1,917 |
Revolving Loans Amortized Cost Basis | 2,704 |
Total loans | 25,511 |
C+I [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 5,745 |
2022 | 6,580 |
2021 | 4,151 |
2020 | 2,875 |
2019 | 1,537 |
Prior | 1,917 |
Revolving Loans Amortized Cost Basis | 2,704 |
Total loans | 25,509 |
C+I [Member] | Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 2 |
Total loans | 2 |
ADL [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 10,511 |
2022 | 4,048 |
2021 | 1,507 |
2019 | 1,454 |
Total loans | 17,520 |
ADL [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 10,511 |
2022 | 4,048 |
2021 | 1,507 |
2019 | 1,454 |
Total loans | 17,520 |
RES [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 19,533 |
2022 | 43,517 |
2021 | 64,226 |
2020 | 50,675 |
2019 | 20,021 |
Prior | 70,971 |
Total loans | 268,943 |
RES [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 19,533 |
2022 | 43,517 |
2021 | 64,226 |
2020 | 50,675 |
2019 | 20,021 |
Prior | 70,844 |
Total loans | 268,816 |
RES [Member] | Substandard [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Prior | 127 |
Total loans | 127 |
HELOC [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Revolving Loans Amortized Cost Basis | 14,093 |
Total loans | 14,093 |
HELOC [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Revolving Loans Amortized Cost Basis | 14,079 |
Total loans | 14,079 |
HELOC [Member] | Substandard [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Revolving Loans Amortized Cost Basis | 14 |
Total loans | 14 |
CON [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 2,902 |
2022 | 3,145 |
2021 | 1,966 |
2020 | 1,512 |
2019 | 215 |
Prior | 76 |
Total loans | 9,816 |
CON [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 2,902 |
2022 | 3,145 |
2021 | 1,966 |
2020 | 1,512 |
2019 | 215 |
Prior | 76 |
Total loans | $ 9,816 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans - Internal Risk Rating Of Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total loans | $ 430,031 | $ 402,505 |
Pass [Member] | ||
Total loans | 399,730 | |
Special Mention [Member] | ||
Total loans | 2,686 | |
Substandard [Member] | ||
Total loans | 89 | |
CRE [Member] | ||
Total loans | 86,566 | 80,616 |
CRE [Member] | Pass [Member] | ||
Total loans | 77,930 | |
CRE [Member] | Special Mention [Member] | ||
Total loans | 2,686 | |
MF [Member] | ||
Total loans | 7,582 | 8,186 |
MF [Member] | Pass [Member] | ||
Total loans | 8,186 | |
C+I [Member] | ||
Total loans | 25,511 | 24,059 |
C+I [Member] | Pass [Member] | ||
Total loans | 24,059 | |
ADL [Member] | ||
Total loans | 17,520 | 18,490 |
ADL [Member] | Pass [Member] | ||
Total loans | 18,490 | |
RES [Member] | ||
Total loans | 268,943 | 252,806 |
RES [Member] | Pass [Member] | ||
Total loans | 252,722 | |
RES [Member] | Substandard [Member] | ||
Total loans | 84 | |
HELOC [Member] | ||
Total loans | 14,093 | 10,161 |
HELOC [Member] | Pass [Member] | ||
Total loans | 10,161 | |
CON [Member] | ||
Total loans | $ 9,816 | 8,187 |
CON [Member] | Pass [Member] | ||
Total loans | 8,182 | |
CON [Member] | Substandard [Member] | ||
Total loans | $ 5 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses on Loans - Activity of Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | ||
Loans outstanding - beginning of year | $ 4,443 | $ 4,849 |
Principal payments | (552) | (576) |
Advances | 1,271 | 170 |
Loans outstanding - end of year | $ 5,162 | $ 4,443 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Transferred financial assets principal amount outstanding | $ 33,900,000 | $ 36,000,000 |
Loan servicing fee income | $ 77,000 | $ 126,000 |
Loan Servicing - Summary Of Act
Loan Servicing - Summary Of Activity In Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Balance, beginning of year | $ 357 | $ 322 |
Additions | 4 | 6 |
Payoffs | (7) | (28) |
Change in fair value due to change in assumptions | (15) | 57 |
Balance, end of year | $ 339 | $ 357 |
Land, Buildings And Equipment -
Land, Buildings And Equipment - Schedule of Land, Building and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 12,353 | $ 12,522 |
Less accumulated depreciation | (8,281) | (8,341) |
Property, Plant and Equipment, Net | 4,072 | 4,181 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 995 | 995 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,167 | 3,167 |
Building and Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,831 | 3,831 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 4,360 | $ 4,529 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
NOW and demand deposits | $ 163,316 | $ 204,739 |
Money market deposits | 85,364 | 60,931 |
Savings deposits | 64,823 | 54,954 |
Time deposits of $250,000 and greater | 17,107 | 7,796 |
Time deposits less than $250,000 | 74,188 | 53,943 |
Total deposits | $ 404,798 | $ 382,363 |
Deposits - Additional informati
Deposits - Additional information (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Reciprocal deposits | $ 1.1 | $ 0 |
Deposits from related parties | 10.7 | 7.1 |
Time Deposits [Member] | ||
Brokered time deposits | 23.6 | 18.1 |
Savings Deposits [Member] | ||
Brokered time deposits | $ 20.9 | $ 0 |
Deposits - Time Deposit Maturit
Deposits - Time Deposit Maturities (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits [Abstract] | |
2024 | $ 73,022 |
2025 | 14,399 |
2026 | 3,077 |
2027 | 569 |
2028 | 228 |
Total | $ 91,295 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Banks unused remaining borrowing capacity | $ 71,800 | $ 36,500 |
Advances through FLHB | 73,007 | 99,397 |
Federal home loan bank maximum borrowing capacity | 3,000 | 3,000 |
Fed Funds Borrowing [Member] | ||
Fed funds borrowing capacity | $ 5,000 | |
Bank Term Funding Program [Member] | ||
Fixed annual rate | 4.89% | |
Fed funds borrowing capacity | $ 3,500 | |
Borrowing advance outstanding | 20,000 | |
Borrower-In-Custody of Collateral Program [Member] | ||
Fed funds borrowing capacity | 50,600 | |
New England Program [Member] | ||
Advances through FLHB | $ 2,700 | $ 2,700 |
Interest rate | 0% | 0% |
FHLB Callable Date May 2, 2024 [Member] | ||
FHLB loan borrowed | $ 25,000 | |
Interest rate | 4.48% | |
FHLB Callable Date December 8, 2025 [Member] | ||
FHLB loan borrowed | $ 25,000 | |
Interest rate | 4.38% |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank Advances by Branch of FHLB Bank (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Principal Amounts | $ 73,007 | $ 99,397 |
Federal Home Loan Bank Advances One | ||
Principal Amounts | $ 21,139 | $ 96,729 |
Maturity Dates | 2024 | 2023 |
Federal Home Loan Bank Advances One | Minimum [Member] | ||
Interest Rates | 0% | 0.44% |
Federal Home Loan Bank Advances One | Maximum [Member] | ||
Interest Rates | 5.53% | 4.38% |
Federal Home Loan Bank Advances Two | ||
Principal Amounts | $ 520 | $ 800 |
Maturity Dates | 2025 | 2024 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Three | ||
Principal Amounts | $ 50,000 | $ 520 |
Maturity Dates | 2026 | 2025 |
Interest Rates | 0% | |
Federal Home Loan Bank Advances Three | Minimum [Member] | ||
Interest Rates | 4.38% | |
Federal Home Loan Bank Advances Three | Maximum [Member] | ||
Interest Rates | 4.48% | |
Federal Home Loan Bank Advances Four | ||
Principal Amounts | $ 718 | $ 718 |
Maturity Dates | 2028 | 2028 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Five | ||
Principal Amounts | $ 200 | $ 200 |
Maturity Dates | 2030 | 2030 |
Interest Rates | 0% | 0% |
Federal Home Loan Bank Advances Six | ||
Principal Amounts | $ 430 | $ 430 |
Maturity Dates | 2031 | 2031 |
Interest Rates | 0% | 0% |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Current, federal | $ 0 | $ (59) |
Current, state | 83 | 109 |
Current, federal and state, total | 83 | 50 |
Deferred, federal | 3,382 | (369) |
Deferred, state | 479 | (132) |
Deferred, federal and state, total | 3,861 | (501) |
Federal, income tax expense (benefit) | 3,382 | (428) |
State, income tax expense (benefit) | 562 | (23) |
Income tax expense (benefit) | $ 3,944 | $ (451) |
Income Taxes - Schedule of Reas
Income Taxes - Schedule of Reasons for Differences in Amount Computed by U.S. Federal Income Tax Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Computed "expected" tax benefit | $ (1,410) | $ (213) |
State tax expense (benefit), net of federal tax expense (benefit) | (471) | (18) |
BOLI income | (21) | (21) |
Valuation allowance | 6,050 | 62 |
Income on tax exempt securities | (242) | (252) |
Other | 38 | (8) |
Income tax expense (benefit) | $ 3,944 | $ (451) |
Computed "expected" tax benefit | (21.00%) | (21.00%) |
State tax, net of federal tax expense (benefit) | (7.00%) | (1.80%) |
BOLI income | (0.30%) | (2.10%) |
Valuation allowance | 90.10% | 6.10% |
Income on tax exempt securities | (3.60%) | (24.80%) |
Other | 0.60% | (0.80%) |
Effective income tax rate | 58.80% | (44.40%) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 1,021 | $ 977 |
Deferred compensation liabilities | 558 | 494 |
Contribution carryforward | 176 | 171 |
State tax credit carryforward | 223 | 62 |
Depreciation | 50 | 16 |
Securities available-for-sale | 2,190 | 3,873 |
Net operating loss carryforward | 2,566 | 707 |
Other | 112 | 48 |
Subtotal | 6,896 | 6,348 |
Less: valuation allowance | (6,226) | (171) |
Total deferred tax assets | 670 | 6,177 |
Deferred tax liabilities: | ||
Interest rate swaps | (260) | |
Prepaid expenses | (37) | (43) |
Net deferred loan costs | (709) | (661) |
Mortgage servicing rights | (91) | (96) |
Total deferred tax liabilities | (837) | (1,060) |
Net deferred tax liabilities, included in other liabilities | $ (167) | |
Net deferred tax assets, included in other assets | $ 5,117 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Line Items] | ||
Carryforward of charitable contributions | $ 654,000 | $ 633,000 |
Valuation allowance | 6,226,000 | 171,000 |
Charitable contributions carryforwards valuation allowance | $ 176,000 | 171,000 |
Charitable contributions limit percentage of taxable income deduction | 10% | |
Excess charitable contributions carryforwards succeeding period | 5 years | |
Charitable contribution carryforward utilization period | 6 years | |
Deferred tax assets, tax reserves for credit losses | $ 2,300,000 | |
Percentage of tax reserve for credit losses used for purpose other than to absorb loan losses subject to taxation | 150% | |
Reserve for loan losses of deferred tax liability not provided | $ 620,000 | |
Amount of interest and penalties recorded | 0 | $ 0 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance of net operating loss carryforward | 2,100,000 | |
Net operating loss carryforward | $ 9,800,000 | |
Percentage of net operating loss carryforwards | 80% | |
All Other Deffered Tax Assets | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance | $ 3,300,000 | |
NEW HAMPSHIRE | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance of net operating loss carryforward | 501,000 | |
NEW HAMPSHIRE | Business Enterprise Tax Credit Carry Forward [Member] | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance, tax credit carry forward | 223,000 | |
NEW HAMPSHIRE | State [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforward | $ 8,400,000 | |
Percentage of net operating loss carryforwards | 80% | |
NEW HAMPSHIRE | State [Member] | Business Enterprise Tax Credit Carry Forward [Member] | ||
Income Tax Disclosure [Line Items] | ||
Tax credit carry forward | $ 223,000 |
Employee Benefits - Additional
Employee Benefits - Additional information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 209,000 | $ 202,000 |
Pension Cost (Reversal of Cost) | 1,300,000 | |
Deferred Compensation Liability Current And Noncurrent | $ 2,071,000 | 1,830,000 |
Funded percentage | 100% | |
Withdrawal liability amount | 1,500,000 | |
Withdrawal liability paid | 200,000 | |
Pentegra DB Plan [Member] | ||
Pension Cost (Reversal of Cost) | $ (14,000) | 1,500,000 |
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||
Liability, Defined Benefit Plan | $ 735,000 | $ 660,000 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5% | 5% |
Employee salary incremental percent | 3% | 3% |
Defined Contribution Plan, Cost | $ 131,000 | $ 82,000 |
Deferred Directors Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||
Pension Cost (Reversal of Cost) | 75,000 | 75,000 |
Liability, Defined Benefit Plan | $ 581,000 | $ 537,000 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% |
Defined Contribution Plan, Cost | $ 20,000 | |
Revised fixed annual retirement benefits, payable | 200,000 | |
Deferred Compensation Liability Current And Noncurrent | $ 718,000 | $ 553,000 |
Previous final base fee, percentage | 70% |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||||
Nov. 18, 2024 | Nov. 18, 2023 | Jun. 01, 2023 | May 25, 2023 | Nov. 18, 2021 | May 27, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of shares committed to be released each year, ESOP | 15,354 | 9,966 | [1] | ||||||
Unearned compensation for ESOP | $ 4,348,000 | $ 2,637,000 | |||||||
Restricted stock awards granted | 2,478 | 2,478 | 0 | [1] | |||||
Stock Issued During Period, Shares, Restricted Stock Award, | 99,657 | ||||||||
Stock options granted, outstanding | 249,144 | 249,144 | 0 | ||||||
Share price | $ 7.99 | $ 7.99 | $ 0 | [1] | |||||
Fair value related to grant | $ 20,000 | ||||||||
Share based expense recognized | $ 399,000 | $ 387,000 | |||||||
Income tax (benefit) expense | $ 3,944,000 | $ (451,000) | |||||||
Weighted average future recognition period | 10 months 24 days | 1 year 10 months 24 days | |||||||
First Seacoast Bank Employee Stock Ownership Plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of shares committed to be released each year, ESOP | 15,354 | ||||||||
Unearned compensation for ESOP | $ 4,000,000 | $ 1,900,000 | |||||||
Employee stock option compensation recognized | 126,000 | 124,000 | |||||||
Employee stock option unallocated shares fair value | $ 2,800,000 | 1,800,000 | |||||||
Employee stock option plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock repurchase | 423,715 | ||||||||
Percentage of Purchase price common stock | 100% | ||||||||
Remaining principal balance of debt | $ 4,200,000 | 2,000,000 | |||||||
Restricted Stock Awards [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted stock awards time-vest | 50% | ||||||||
Restricted Stock Awards [Member] | Directors and Members [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, | 98,850 | ||||||||
Share price | $ 11.95 | ||||||||
Total fair value related to stock options granted | $ 1,200,000 | ||||||||
Restricted Stock Awards [Member] | Scenario Forecast [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted stock awards time-vest | 50% | ||||||||
Minimum [Member] | Restricted Stock Awards [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Issued stock option granted, term | 3 years | ||||||||
2021 Equity Incentive Plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unearned compensation for ESOP | $ 350,000 | 729,000 | |||||||
Common stock shares issued during period, new issues | 348,801 | 348,801 | |||||||
Issued stock option granted, term | 10 years | ||||||||
Income tax (benefit) expense | $ 108,000 | 105,000 | |||||||
2021 Equity Incentive Plan [Member] | Director [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unearned compensation for ESOP | 598,000 | ||||||||
Share based expense recognized | 150,000 | 0 | |||||||
Income tax (benefit) expense | $ 40,000 | $ 0 | |||||||
Weighted average future recognition period | 2 years 4 months 24 days | ||||||||
2021 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based Payment Arrangement, Exercise of Option | 249,144 | 249,144 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, | 99,657 | ||||||||
[1] Adjusted for conversion of the former First Seacoast Bancorp, MHC. |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Company Compensation Expense for the ESOP (Detail) - shares | Dec. 31, 2023 | Dec. 31, 2022 | [1] |
Share-Based Payment Arrangement [Abstract] | |||
Allocated | 39,864 | 29,898 | |
Committed to be allocated | 15,354 | 9,966 | |
Unallocated | 368,497 | 159,451 | |
Total | 423,715 | 199,315 | |
[1] Adjusted for conversion of the former First Seacoast Bancorp, MHC. |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Options Outstanding (Details) - $ / shares | 12 Months Ended | ||
May 25, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Granted | 249,144 | 249,144 | 0 |
Stock options at end of period | 249,144 | ||
Granted | $ 8.06 | ||
Stock options at end of period | $ 8.06 | ||
Granted | 9 years 4 months 24 days | ||
Stock options at end of period | 9 years 4 months 24 days | ||
Date of grant | May 25, 2023 | ||
Vesting period | 3 years | ||
Expiration date | May 25, 2033 | ||
Expected volatility | 27.80% | ||
Expected term | 6 years 6 months | ||
Expected dividend yield | 0% | ||
Expected forfeiture rate | 0% | ||
Risk free interest rate | 3.90% | ||
Fair value per option | $ 3 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Non-vested Restricted Shares Outstanding (Details) - $ / shares | 12 Months Ended | ||||
Jun. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |||
Share-Based Payment Arrangement [Abstract] | |||||
Non-vested at beginning of year | [1] | 64,785 | 98,850 | ||
Granted | 2,478 | 2,478 | 0 | [1] | |
Vested | (33,634) | (32,393) | [1] | ||
Forfeited | 0 | (1,672) | [1] | ||
Non-vested at end of year | 33,629 | 64,785 | [1] | ||
Non-vested at beginning of year | [1] | $ 11.95 | $ 11.95 | ||
Share price | $ 7.99 | 7.99 | 0 | [1] | |
Vested | 11.8 | 11.95 | [1] | ||
Forfeited | 0 | 11.95 | [1] | ||
Non-vested at end of year | $ 11.8 | $ 11.95 | [1] | ||
[1] Adjusted for conversion of the former First Seacoast Bancorp, MHC. |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | ||
Loss on disposition of equipment | $ (2,000) | |
Future lease payments | 675,000 | |
ATM Related Equipment Expires in August 2030 | ||
Lessee Lease Description [Line Items] | ||
Loss on disposition of equipment | $ (2,000) | |
Lease expiration month and year | 2030-08 | |
Future lease payments | $ 509,000 | |
Operating lease expense | $ 26,000 | $ 0 |
Branch Office Expires in August 2027 | ||
Lessee Lease Description [Line Items] | ||
Lease expiration month and year | 2027-08 | |
Future lease payments | $ 151,000 | |
Operating lease expense | $ 37,000 | $ 33,000 |
Branch Office and Certain Equipment [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating leases expiration beginning year | 2024 | |
Operating leases expiration ending year | 2031 | |
Operating lease option to extend | true | |
Operating lease, renewal term | 4 years |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Asset and Net Lease Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Right-of-use asset | $ 587 | $ 202 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Net lease liability | $ 587 | $ 202 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Leases - Components of Operatin
Leases - Components of Operating Lease Cost and Other Related Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 63 | $ 54 |
Total operating lease cost | 63 | 54 |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases | $ 63 | $ 54 |
Weighted average lease term remaining (in years) | 5 years 10 months 6 days | 4 years 4 months 13 days |
Weighted average discount rate | 4.79% | 3.29% |
Leases - Schedule of Total Mini
Leases - Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 126 | |
2025 | 122 | |
2026 | 120 | |
2027 | 307 | |
Total minimum lease payments | 675 | |
Less: interest | (88) | |
Net lease liability | $ 587 | $ 202 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | ||
Losses on sale of securities available-for-sale | $ 4,173 | $ 747 |
Tax effect | (1,123) | (202) |
Net loss | 3,050 | 545 |
Net amortization of bond premiums | 904 | 1,009 |
Tax effect | (243) | (274) |
Net loss | 661 | 735 |
Gains on termination of interest rate swaps | (849) | |
Tax effect | 230 | |
Net loss | (619) | |
Net interest expense on swaps | (115) | |
Tax effect | 31 | |
Net loss | (84) | |
Total reclassification adjustments | $ 3,092 | $ 1,196 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Summary of Changes in Component of AOCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Balance at the beginning of the period | $ (9,727) | $ 721 |
Other comprehensive (loss) income before reclassification | 691 | (11,644) |
Amounts reclassified from AOCI | 3,092 | 1,196 |
Other comprehensive (loss) income | 3,783 | (10,448) |
Balance at the end of the period | (5,944) | (9,727) |
Net Unrealized (Losses) Gains on AFS Securities | ||
Balance at the beginning of the period | (10,428) | 575 |
Other comprehensive (loss) income before reclassification | 773 | (12,283) |
Amounts reclassified from AOCI | 3,711 | 1,280 |
Other comprehensive (loss) income | 4,484 | (11,003) |
Balance at the end of the period | (5,944) | (10,428) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Balance at the beginning of the period | 701 | 146 |
Other comprehensive (loss) income before reclassification | (82) | 639 |
Amounts reclassified from AOCI | (619) | (84) |
Other comprehensive (loss) income | $ (701) | 555 |
Balance at the end of the period | $ 701 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Credit Exposures - Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Unadvanced portions of loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | $ 46,175 | $ 44,929 |
Commitments to originate loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | 34,074 | 16,134 |
Standby letters of credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Unadvanced portions of loans | $ 125 | $ 302 |
Financial Instruments with Of_4
Financial Instruments with Off-Balance Sheet Credit Exposures - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Off-Balance-Sheet, Credit Loss, Liability [Abstract] | ||
Allowance for credit losses on OBS credit exposures | $ 391,000 | $ 18,000 |
Provision for credit losses for off-balance sheet | $ 83,000 | $ 0 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Capital Requirements (Detail) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Actual, Total Capital (to risk- weighted assets) | $ 55,701 | $ 52,475 |
Actual, Tier 1 Capital (to risk- weighted assets) | 51,878 | 48,821 |
Actual, Tier 1 Capital (to average assets) | 51,878 | 48,821 |
Actual, Common Equity Tier 1 (to risk-weighted assets) | $ 51,878 | $ 48,821 |
Actual Ratio, Total Capital (to risk- weighted assets) | 0.1532 | 0.1553 |
Actual Ratio, Tier 1 Capital (to risk- weighted assets) | 0.1427 | 0.1445 |
Actual Ratio, Tier 1 Capital (to average assets) | 0.0919 | 0.092 |
Actual Ratio, Common Equity Tier 1 (to risk-weighted assets) | 0.1427 | 0.1445 |
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 29,090 | $ 27,028 |
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets) | 21,818 | 20,271 |
Minimum Capital Requirement, Tier 1 Capital (to average assets) | 22,592 | 21,224 |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 16,363 | $ 15,203 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.08 | 0.08 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.06 | 0.06 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.04 | 0.04 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 4.50% | 4.50% |
Minimum Capital Required to be Well Capitalized, Total Capital (to risk-weighted assets) | $ 36,363 | $ 33,785 |
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to risk-weighted assets) | 29,090 | 27,028 |
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to average assets) | 28,240 | 26,530 |
Minimum Capital Required to be Well Capitalized, Common Equity Tier 1 (to risk-weighted assets) | $ 23,636 | $ 21,960 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.10 | 0.10 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.08 | 0.08 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.05 | 0.05 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 0.065 | 0.065 |
Fully Phased In [Member] | ||
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 38,181 | $ 35,474 |
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets) | 30,908 | 28,717 |
Minimum Capital Requirement, Tier 1 Capital (to average assets) | 22,592 | 21,224 |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 25,454 | $ 23,649 |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 0.105 | 0.105 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets) | 0.085 | 0.085 |
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets) | 0.04 | 0.04 |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 7% | 7% |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - shares | Dec. 31, 2023 | Nov. 18, 2023 | Dec. 31, 2022 | Nov. 18, 2022 | Sep. 23, 2020 |
Equity Class Of Treasury Stock [Line Items] | |||||
Vested restricted stock award surrendered in lieu of cash payment | 549 | 496 | |||
Treasury Stock, Shares outstanding | 115,448 | 114,899 | |||
Common Stock [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Percentage of repurchase of Common Stock | 2.20% | ||||
Number of shares authorized for repurchase | 114,403 | ||||
Common Stock [Member] | Maximum [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Number of shares authorized for repurchase | 114,403 | ||||
Common Stock [Member] | Stockholders other than First Seacoast Bancorp, MHC [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Equity method investment ownership percentage | 5% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Detail) | 12 Months Ended | ||
Jan. 17, 2023 USD ($) | Dec. 31, 2023 USD ($) Derivative | Dec. 31, 2022 USD ($) | |
Derivatives Fair Value [Line Items] | |||
Interest rate swaps | $ (961,000) | $ 761,000 | |
Cash in collateral returned | 6,069,000 | 8,250,000 | |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) | 758,000 | ||
Derivatives liability | 0 | 0 | |
Loans [Member] | |||
Derivatives Fair Value [Line Items] | |||
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) | 632,000 | ||
Securities Available-for-sale, at Fair Value [Member] | |||
Derivatives Fair Value [Line Items] | |||
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) | 126,000 | ||
Interest Rate Swap 2021 [Member] | |||
Derivatives Fair Value [Line Items] | |||
Gain on derivative | $ 849,000 | ||
Cash in collateral returned | $ 536,000 | ||
Interest Rate Swap Contracts and Customer Loan Swaps [Member] | |||
Derivatives Fair Value [Line Items] | |||
Cash collateral from counterparties | 1,600,000 | 535,000 | |
Designated as Hedging Instrument [Member] | Loans [Member] | |||
Derivatives Fair Value [Line Items] | |||
Designated hedged items | 50,000,000 | ||
Derivative assets, notional amount | 50,000,000 | ||
Designated as Hedging Instrument [Member] | Securities Available-for-sale, at Fair Value [Member] | |||
Derivatives Fair Value [Line Items] | |||
Designated hedged items | 10,000,000 | ||
Derivative assets, notional amount | 10,000,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 10,000,000 | ||
Interest rate swaps | $ (112,000) | 761,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Assets [Member] | |||
Derivatives Fair Value [Line Items] | |||
Interest rate swap derivative asset | 961,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 5,000,000 | ||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Interest Rate Swap [Member] | |||
Derivatives Fair Value [Line Items] | |||
Number of notional interest rate swaps | Derivative | 2 | ||
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 5,000,000 | ||
Fair Value Hedging [Member] | |||
Derivatives Fair Value [Line Items] | |||
Fair Value Hedges | $ 0 | ||
Remaining maturity | 2 years 8 months 23 days | ||
Average fixed interest rate | 4.29% | ||
Fixed annual rate | 5.32% | ||
Fair Value Hedging [Member] | Fixed Rate Assets [Member] | Loans [Member] | |||
Derivatives Fair Value [Line Items] | |||
Amortized cost basis of the closed portfolios used in hedging relationships | $ 62,200,000 | ||
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) | 632,000 | ||
Fair Value Hedging [Member] | Fixed Rate Assets [Member] | Securities Available-for-sale, at Fair Value [Member] | |||
Derivatives Fair Value [Line Items] | |||
Amortized cost basis of the closed portfolios used in hedging relationships | 19,300,000 | ||
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) | $ 126,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Summary of Cash Flow Hedges Associated with Interest Rate Risk Management Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other Liabilities | $ 10,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap 2020 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Start Date | Apr. 13, 2020 | |
Maturity Date | Apr. 13, 2025 | |
Rate | 0.68% | |
Notional | $ 5,000 | |
Other Assets | $ 431 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Start Date | Apr. 13, 2021 | |
Maturity Date | Apr. 13, 2026 | |
Rate | 0.74% | |
Notional | $ 5,000 | |
Other Assets | 530 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member] | Cash Flow Hedges on 90-day Advances from FHLB [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional | $ 5,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional | 10,000 | |
Other Assets | $ 961 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Summary of the Effect of Cash Flow Hedge Accounting (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives Fair Value [Line Items] | ||
Location and Amount of Loss Recognized in Consolidated Statements of Loss | $ 9,080 | $ 1,747 |
Amount Reclassified from AOCI into Expense [Member] | ||
Derivatives Fair Value [Line Items] | ||
Location and Amount of Loss Recognized in Consolidated Statements of Loss | $ 115 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Summary of Balance Sheet Related to Cumulative Basis Adjustment for Fair Value Hedges (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Derivatives Fair Value [Line Items] | |
Carrying Amount of Hedged Assets/(Liabilities) | $ 60,758 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | 758 |
Securities Available-for-sale, at Fair Value [Member] | |
Derivatives Fair Value [Line Items] | |
Carrying Amount of Hedged Assets/(Liabilities) | 10,126 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | 126 |
Loans [Member] | |
Derivatives Fair Value [Line Items] | |
Carrying Amount of Hedged Assets/(Liabilities) | 50,632 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | $ 632 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance SheetsSummary of Fair Values of Derivative Financial Instruments Classification on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative assets, fair value | $ 90 | ||
Derivative liabilities, fair value | 848 | ||
Interest Rate Contract [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative assets, fair value | [1] | $ 961 | |
Derivative liabilities, fair value | [1] | 758 | |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative assets, fair value | 961 | ||
Derivative liabilities, fair value | 758 | ||
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative assets, notional amount | $ 60,000 | ||
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||
Derivative liabilities, fair value | $ 758 | ||
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | ||
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative assets, notional amount | 10,000 | ||
Derivative assets, fair value | $ 961 | ||
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||
Derivatives Not Designated as Hedging Instruments [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative assets, fair value | $ 90 | ||
Derivative liabilities, fair value | 90 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Customer Loan Swaps [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative assets, notional amount | 4,766 | ||
Derivative assets, fair value | $ 90 | ||
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||
Derivative liabilities, notional amount | $ 4,766 | ||
Derivative liabilities, fair value | $ 90 | ||
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | ||
[1] Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts. |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities - Summary of Derivative Financial Instruments Not Designated as Hedging Instruments on Consolidated Statements of Loss (Detail) - Derivatives Not Designated as Hedging Instruments [Member] - Customer Loan Swaps [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Amount of Gain Recognized in Income | $ 83 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and fees on loans |
Derivatives and Hedging Activ_9
Derivatives and Hedging Activities - Summary of Derivative Position offset in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Assets, Gross Amounts Recognized | $ 90 | ||
Derivative Assets, Net Amounts Recognized | 90 | ||
Derivative Assets, Cash Collateral Pledged (Received) | [1] | 90 | |
Derivative Liabilities, Gross Amounts Recognized | 848 | ||
Derivative Liabilities, Net Amounts Recognized | 848 | ||
Derivative Liabilities, Cash Collateral Pledged (Received) | [1] | 758 | |
Derivative Liabilities, Net Amount | 90 | ||
Interest Rate Contract [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Assets, Gross Amounts Recognized | [2] | $ 961 | |
Derivative Assets, Net Amounts Recognized | [2] | 961 | |
Derivative Assets, Cash Collateral Pledged (Received) | [1],[2] | 535 | |
Derivative Asset, Net Amount | [2] | $ 426 | |
Derivative Liabilities, Gross Amounts Recognized | [2] | 758 | |
Derivative Liabilities, Net Amounts Recognized | [2] | 758 | |
Derivative Liabilities, Cash Collateral Pledged (Received) | [1],[2] | 758 | |
Customer Loan Swaps - Commercial Customer [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Liabilities, Gross Amounts Recognized | [3] | 90 | |
Derivative Liabilities, Net Amounts Recognized | [3] | 90 | |
Derivative Liabilities, Net Amount | [3] | 90 | |
Customer Loan Swaps - Dealer Bank [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Assets, Gross Amounts Recognized | [3] | 90 | |
Derivative Assets, Net Amounts Recognized | [3] | 90 | |
Derivative Assets, Cash Collateral Pledged (Received) | [1],[3] | $ 90 | |
[1] The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated balance sheets. Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts. The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. The Company does not post collateral to its commercial customers as part of its contract. |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | $ 121,854 | $ 106,100 | |
U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 1,398 | 1,826 | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 15,583 | [1] | 8,359 |
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 2,474 | [1] | 6,222 |
Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 38,221 | [1] | 21,823 |
Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 54,692 | 62,416 | |
Corporate debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 492 | 497 | |
Corporate subordinated debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 8,994 | 4,957 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 1,398 | 1,826 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 15,583 | 8,359 | |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 2,474 | 6,222 | |
Fair Value, Measurements, Recurring [Member] | Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 38,221 | 21,823 | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 54,692 | 62,416 | |
Fair Value, Measurements, Recurring [Member] | Corporate debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 492 | 497 | |
Fair Value, Measurements, Recurring [Member] | Corporate subordinated debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 8,994 | 4,957 | |
Fair Value, Measurements, Recurring [Member] | Derivative [Member] | |||
Other assets: | |||
Other assets, at fair value | 90 | 961 | |
Other liabilities: | |||
Other liabilities, at fair value | 848 | ||
Fair Value, Measurements, Recurring [Member] | Mortgage servicing rights [Member] | |||
Other assets: | |||
Other assets, at fair value | 339 | 357 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government-sponsored enterprises obligations [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 1,398 | 1,826 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 15,583 | 8,359 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 2,474 | 6,222 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential mortgage backed securities [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 38,221 | 21,823 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 54,692 | 62,416 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 492 | 497 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate subordinated debt [Member] | |||
Securities available-for-sale: | |||
Securities available-for-sale, at fair value | 8,994 | 4,957 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative [Member] | |||
Other assets: | |||
Other assets, at fair value | 90 | 961 | |
Other liabilities: | |||
Other liabilities, at fair value | 848 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage servicing rights [Member] | |||
Other assets: | |||
Other assets, at fair value | $ 339 | $ 357 | |
[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - Mortgage servicing rights [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning Balance | [1] | $ 357 | $ 322 |
Included in net loss | [1] | (18) | 35 |
Ending Balance | [1] | $ 339 | $ 357 |
[1] Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of loss. |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Mortgage servicing rights [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights | [1] | $ 339 | $ 357 | $ 322 |
Prepayment Rate [Member] | Mortgage servicing rights [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember | ||
Mortgage Servicing Rights | $ 339 | $ 357 | ||
Prepayment Rate [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0535 | 0.0648 | ||
Prepayment Rate [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.2053 | 0.2349 | ||
Prepayment Rate [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0685 | 0.0778 | |
Fair value valuation Techniques | Prepayment Rate | Prepayment Rate | ||
Discount Rate [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.09375 | 0.095 | ||
Discount Rate [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.09375 | 0.095 | ||
Discount Rate [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0938 | 0.095 | |
Fair value valuation Techniques | Discount Rate | Discount Rate | ||
Delinquency Rate [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0208 | 0.0213 | ||
Delinquency Rate [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.026 | 0.0279 | ||
Delinquency Rate [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0217 | 0.0224 | |
Fair value valuation Techniques | Delinquency Rate | Delinquency Rate | ||
Default Rate [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0012 | 0.0014 | ||
Default Rate [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | 0.0014 | 0.002 | ||
Default Rate [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.0014 | 0.0015 | |
Fair value valuation Techniques | Default Rate | Default Rate | ||
[1] Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of loss. Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-financial assets and liabilities measured at fair value on a recurring basis | $ 0 | |
Foreclosed assets | 0 | $ 0 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 0 | $ 0 |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Fair Value Measurements, Recurring and Nonrecurring (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Cash and due from banks | $ 6,069 | $ 8,250 |
Interest-bearing time deposits with other banks | 747 | |
Federal Home Loan Bank stock | 2,986 | 3,502 |
Bank-owned life insurance | 4,663 | 4,561 |
Loans, net | 426,641 | 398,924 |
Accrued interest receivable | 2,294 | 1,988 |
Financial Liabilities: | ||
Deposits | 404,798 | 382,363 |
Advances from Federal Home Loan Bank | 73,007 | 99,397 |
Advances from Federal Reserve Bank | 20,000 | |
Mortgagors’ tax escrow | 640 | 938 |
Accrued interest payable | 380 | 95 |
Cash and due from banks [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 6,069 | 8,250 |
Interest-bearing time deposits with other banks [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 747 | |
Federal Home Loan Bank stock [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 2,986 | 3,502 |
Bank-owned life insurance [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 4,663 | 4,561 |
Loans, net [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 376,772 | 361,402 |
Accrued interest receivable [member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 2,294 | 1,988 |
Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 403,489 | 379,714 |
Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 73,162 | 97,675 |
Federal Reserve Bank Advances [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 20,020 | |
Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 640 | 938 |
Accrued interest payable [member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 380 | 95 |
Fair Value, Inputs, Level 1 [Member] | Cash and due from banks [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 6,069 | 8,250 |
Fair Value, Inputs, Level 1 [Member] | Accrued interest receivable [member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 2,294 | 1,988 |
Fair Value, Inputs, Level 1 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 313,503 | 320,624 |
Fair Value, Inputs, Level 1 [Member] | Accrued interest payable [member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 380 | 95 |
Fair Value, Inputs, Level 2 [Member] | Interest-bearing time deposits with other banks [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 747 | |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank stock [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 2,986 | 3,502 |
Fair Value, Inputs, Level 2 [Member] | Bank-owned life insurance [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | 4,663 | 4,561 |
Fair Value, Inputs, Level 2 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 89,986 | 59,090 |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 73,162 | 97,675 |
Fair Value, Inputs, Level 2 [Member] | Federal Reserve Bank Advances [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 20,020 | |
Fair Value, Inputs, Level 2 [Member] | Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 640 | 938 |
Fair Value, Inputs, Level 3 [Member] | Loans, net [Member] | ||
Financial Assets: | ||
Financial Assests, Fair Vlue Disclosure | $ 376,772 | $ 361,402 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
ASSETS | |||||
Other assets | $ 2,456 | $ 9,171 | |||
Total assets | 571,035 | 537,424 | |||
LIABILITIES | |||||
Other liabilities | 3,901 | 3,559 | |||
Total liabilities | 504,417 | 488,087 | |||
STOCKHOLDERS' EQUITY | |||||
Stockholders’ equity | 66,618 | 49,337 | [1] | $ 60,468 | |
Total liabilities and stockholders' equity | 571,035 | 537,424 | |||
First Seacoast Bancorp (Parent) Company | |||||
ASSETS | |||||
Cash held at First Seacoast Bank | 20,396 | 9,346 | |||
Investment in First Seacoast Bank | 41,984 | 37,925 | |||
Loan to First Seacoast Bank ESOP | 4,196 | 2,025 | |||
Other assets | 41 | 41 | |||
Total assets | 66,618 | 49,337 | |||
STOCKHOLDERS' EQUITY | |||||
Stockholders’ equity | 66,618 | 49,337 | |||
Total liabilities and stockholders' equity | $ 66,618 | $ 49,337 | |||
[1] Shares adjusted for conversion of the former First Seacoast Bancorp, MHC. |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Schedule of Condensed Statements of Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income tax expense | $ 3,944 | $ (451) |
Net loss | (10,656) | (565) |
First Seacoast Bancorp (Parent) Company | ||
Interest on ESOP loan | 309 | 110 |
Miscellaneous expense | 4 | |
Income before income tax expense and equity in undistributed net loss of First Seacoast Bank | 309 | 106 |
Income tax expense | 62 | |
Net income before equity in undistributed net loss of First Seacoast Bank | 309 | 44 |
Equity in undistributed net loss of First Seacoast Bank | (10,965) | (609) |
Net loss | $ (10,656) | $ (565) |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (10,656) | $ (565) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Deferred tax expense | 3,861 | (296) |
Decrease in other assets | 440 | (1,483) |
Net cash (used) provided by operating activities | (1,915) | 973 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash (used) provided by investing activities | (39,487) | (58,073) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock, net | 25,622 | |
Net cash provided (used) by financing activities | 39,221 | 58,712 |
Net change in cash and cash equivalents | (2,181) | 1,612 |
Cash and cash equivalents at beginning of year | 8,250 | 6,638 |
Cash and cash equivalents at end of year | 6,069 | 8,250 |
First Seacoast Bancorp (Parent) Company | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | (10,656) | (565) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Undistributed net loss of First Seacoast Bank | 10,965 | 609 |
Deferred tax expense | 60 | |
Decrease in other assets | 2 | |
Decrease in other liabilities | (2) | |
Net cash (used) provided by operating activities | 309 | 104 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital contribution to First Seacoast Bank | (12,811) | |
ESOP loan | (2,244) | |
Principal payments received on ESOP loan | 78 | 80 |
Net cash (used) provided by investing activities | (14,977) | 80 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock, net | 25,622 | |
Return of capital from conversion of former First Seacoast Bancorp, MHC | 100 | |
Treasury stock purchases | (4) | (623) |
Net cash provided (used) by financing activities | 25,718 | (623) |
Net change in cash and cash equivalents | 11,050 | (439) |
Cash and cash equivalents at beginning of year | 9,346 | 9,785 |
Cash and cash equivalents at end of year | $ 20,396 | $ 9,346 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | Mar. 22, 2024 USD ($) Property Branch |
Subsequent Event [Line Items] | |
Initial Term of Lease Agreement | 15 years |
Aggregate Cash Purchase Price | $ | $ 7.9 |
FSB Wealth Management [Member] | |
Subsequent Event [Line Items] | |
Number of Standalone Branches | Branch | 3 |
Office and Branch [Member] | |
Subsequent Event [Line Items] | |
Number of properties owned and operated | Property | 5 |