UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
For the Quarterly Period ended
or
For transition period from to
Commission File Number
(Exact Name of Registrant as Specified in Charter)
|
||
(State or Other Jurisdiction of Incorporation) |
|
(I.R.S. Employer Identification No.) |
|
||
(Address of Principal Executive Offices) |
|
(Zip Code) |
(
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and formal fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
Title of each class |
Trading symbol |
Name of each exchange on which registered |
Indicate by check mark whether the registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports),
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ |
|
Accelerated filer ☐ |
|
Smaller reporting company |
|
|
|
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date:
CULLMAN BANCORP, INC.
Form 10-Q Quarterly Report
Table of Contents
PART I |
||
|
|
|
ITEM 1. |
2 |
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
39 |
|
ITEM 3. |
48 |
|
ITEM 4. |
49 |
|
|
|
|
PART II |
||
|
||
ITEM 1. |
50 |
|
ITEM 1A. |
50 |
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES |
50 |
ITEM 3. |
50 |
|
ITEM 4. |
50 |
|
ITEM 5. |
50 |
|
ITEM 6. |
51 |
|
|
|
|
52 |
1
PART I
ITEM 1. FINANCIAL STATEMENTS
CULLMAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
September 30, 2023 and December 31, 2022
(All amounts in thousands, except share and per share data)
|
|
September 30, 2023 (Unaudited) |
|
|
December 31, |
|
||
ASSETS |
|
|
|
|
|
|
||
Interest bearing cash and cash equivalents |
|
$ |
|
|
$ |
|
||
Non-interest bearing cash and cash equivalents |
|
|
|
|
|
|
||
Federal funds sold |
|
|
|
|
|
|
||
Total cash and cash equivalents |
|
|
|
|
|
|
||
Securities available for sale |
|
|
|
|
|
|
||
Equity securities |
|
|
|
|
|
|
||
Loans, net of allowance of $ |
|
|
|
|
|
|
||
Premises and equipment, net |
|
|
|
|
|
|
||
Foreclosed real estate |
|
|
|
|
|
|
||
Accrued interest receivable |
|
|
|
|
|
|
||
Restricted equity securities |
|
|
|
|
|
|
||
Bank owned life insurance |
|
|
|
|
|
|
||
Deferred tax asset, net |
|
|
|
|
|
|
||
Other assets |
|
|
|
|
|
|
||
Total assets |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Deposits |
|
|
|
|
|
|
||
Non-interest bearing |
|
$ |
|
|
$ |
|
||
Interest bearing |
|
|
|
|
|
|
||
Total deposits |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Federal Home Loan Bank advances |
|
|
|
|
|
|
||
Accrued interest payable |
|
|
|
|
|
|
||
Other liabilities |
|
|
|
|
|
|
||
Total liabilities |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Shareholders' equity |
|
|
|
|
|
|
||
Common stock, $ |
|
|
|
|
|
|
||
Additional paid-in capital |
|
|
|
|
|
|
||
Retained earnings |
|
|
|
|
|
|
||
Accumulated other comprehensive loss |
|
|
( |
) |
|
|
( |
) |
Unearned ESOP shares, at cost |
|
|
( |
) |
|
|
( |
) |
Total shareholders' equity |
|
|
|
|
|
|
||
Total liabilities and shareholders' equity |
|
$ |
|
|
$ |
|
2
CULLMAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited)
Three and nine months ended September 30, 2023 and 2022
(All amounts in thousands, except share and per share data)
|
|
For the Three Months |
|
|
For the Nine Months |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans, including fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Non taxable securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
FHLB dividends |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Federal funds sold and other |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Federal Home Loan Bank advances and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for credit losses on loans |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Provision for unfunded commitments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income after provision for loan losses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service charges on deposit accounts |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income on bank owned life insurance |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on sales of mortgage loans |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net gain on sale of foreclosed real estate |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on prepayment of Federal Home Loan Bank advances |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Occupancy and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Data processing |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Professional and supervisory fees |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Office expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advertising |
|
|
|
|
|
|
|
|
|
|
|
|
||||
FDIC deposit insurance |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss on prepayment of Federal Home Loan Bank advances |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Dilutive |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
3
CULLMAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Loss) (Unaudited)
Three and nine months ended September 30, 2023 and 2022
(All amounts in thousands, except share and per share data)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net Income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive income, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized loss on securities available for sale |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Less income tax effect |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive loss |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Comprehensive income (loss) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
4
CULLMAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
Three and nine months ended September 30, 2023 and 2022
(All amounts in thousands, except share and per share data)
|
|
Shares |
|
|
Common |
|
|
Additional |
|
|
Retained |
|
|
Accumulated |
|
|
Unearned |
|
|
Total |
|
|||||||
Balance at July 1, 2023 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Share repurchases |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
ESOP shares earned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance at September 30, 2023 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at January 1, 2023 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
CECL implementations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Share repurchases |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
ESOP shares earned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Dividend paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance at September 30, 2023 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Shares |
|
|
Common |
|
|
Additional |
|
|
Retained |
|
|
Accumulated |
|
|
Unearned |
|
|
Total |
|
|||||||
Balance at July 1, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
ESOP shares earned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance at September 30, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at January 1, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
ESOP shares earned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Dividend paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance at September 30, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
5
CULLMAN BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended September 30, 2023 and 2022
(All amounts in thousands, except share and per share data)
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
|
|
$ |
|
||
Adjustment to reconcile net income to net cash provided from operating |
|
|
|
|
|
|
||
Provision for loan losses |
|
|
|
|
|
|
||
Depreciation, amortization and accretion, net |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
( |
) |
|
|
|
|
Net gains from sales and impairment of foreclosed real estate |
|
|
|
|
|
( |
) |
|
Net gain on extinguishment of debt |
|
|
( |
) |
|
|
( |
) |
Gain from change in fair value of equity securities |
|
|
( |
) |
|
|
( |
) |
Losses on disposals of fixed assets |
|
|
|
|
|
|
||
Gains on sales of repossessions |
|
|
( |
) |
|
|
|
|
Income on bank owned life insurance |
|
|
( |
) |
|
|
( |
) |
Gains on sale of mortgage loans |
|
|
( |
) |
|
|
( |
) |
Mortgage loans originated for sale |
|
|
( |
) |
|
|
( |
) |
Proceeds from sale of mortgage loans |
|
|
|
|
|
|
||
ESOP Compensation expense |
|
|
|
|
|
|
||
Stock based compensation expense |
|
|
|
|
|
|
||
Net change in operating assets and liabilities |
|
|
|
|
|
|
||
(Increase)/decrease in Accrued interest receivable |
|
|
|
|
|
( |
) |
|
Increase/(decrease) in Accrued interest payable |
|
|
|
|
|
( |
) |
|
(Increase)/decrease in other assets |
|
|
( |
) |
|
|
|
|
Decrease in other liabilities |
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
|
||
Net purchases of premises and equipment |
|
|
( |
) |
|
|
( |
) |
Purchases of securities- available for sale |
|
|
|
|
|
( |
) |
|
Redemptions (purchases) of securities- equity |
|
|
|
|
|
( |
) |
|
Purchases of restricted equity securities |
|
|
( |
) |
|
|
|
|
Proceeds from maturities, prepayments and calls of securities |
|
|
|
|
|
|
||
Proceeds from sales of foreclosed real estate |
|
|
|
|
|
|
||
Redemption of restricted equity securities |
|
|
|
|
|
|
||
Purchase of bank owned life insurance |
|
|
|
|
|
( |
) |
|
Loan originations and payments, net |
|
|
( |
) |
|
|
( |
) |
Net cash used in investing activities |
|
|
( |
) |
|
|
( |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Net (decrease)/increase in deposits |
|
|
( |
) |
|
|
|
|
Proceeds from Federal Home Loan Bank advances |
|
|
|
|
|
|
||
Repayment of Federal Home Loan Bank advances |
|
|
( |
) |
|
|
( |
) |
Cash payment of dividends |
|
|
( |
) |
|
|
( |
) |
Payments from share repurchases |
|
|
( |
) |
|
|
|
|
Net cash (used for)/provided by financing activities |
|
|
( |
) |
|
|
|
|
Net change in cash and cash equivalents |
|
|
( |
) |
|
|
( |
) |
Cash and cash equivalents at the beginning of period |
|
|
|
|
|
|
||
Cash and cash equivalents at end of the period |
|
$ |
|
|
$ |
|
||
Supplemental cash flow information |
|
|
|
|
|
|
||
Interest expense |
|
$ |
|
|
$ |
|
||
Income taxes paid |
|
|
|
|
|
|
||
Supplemental noncash disclosures |
|
|
|
|
|
|
||
Day 1 impact of adoption of Current Expected Credit Losses methodology |
|
|
( |
) |
|
|
|
6
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations and Principles of Consolidation: The consolidated financial statements of Cullman Bancorp, Inc. (“the Bancorp”) include the accounts of its wholly owned subsidiary, Cullman Savings Bank (“the Bank”), together referred to as “the Company”.
Risk and Uncertainties: Ongoing economic challenges, including issues such as rising inflation and global supply chain disruption have impacted global financial markets. Additionally, the Company faces increased public and regulatory scrutiny resulting from the financial market crisis resulting from recent bank failures. Because of the significant uncertainties related to the economy and its potential effects on customers and prospects, there can be no assurances as to how the crisis may ultimately affect the Company. It is unknown how long the adverse conditions associated with the ongoing issues will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including expected credit losses on loans and off-balance sheet credit exposures.
7
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
As an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), the Bank is permitted an extended transition period for complying with new or revised accounting standards affecting public companies. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $
ADOPTION OF NEW ACCOUNTING STANDARDS:
FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”
On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13 Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities. Management does not intend to sell or believes that it is more likely than not they will be required to sell.
(Continued)
8
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Company adopted Accounting Standards Codification (ASC) 326 using the modified retrospective method for all financial assets measured at amortized cost, and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (GAAP). The Company recorded a net decrease to retained earnings of $
The following table illustrates the impact of ASC 326.
|
|
January 1, 2023 |
|
|||||||||
Assets: |
|
As Reported Under ASC 326 |
|
|
Pre-ASC 326 Adoption |
|
|
Impact of ASC 326 Adoption |
|
|||
Allowance for credit losses on loans: |
|
|
|
|
|
|
|
|
|
|||
One-to-Four Family |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Multi-Family |
|
|
|
|
|
|
|
|
|
|||
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|||
Construction |
|
|
|
|
|
|
|
|
( |
) |
||
Commercial |
|
|
|
|
|
|
|
|
( |
) |
||
Consumer |
|
|
|
|
|
|
|
|
|
|||
Allowance for credit losses on loans |
|
|
|
|
|
|
|
|
|
|||
Liabilities: |
|
|
|
|
|
|
|
|
|
|||
Allowance for credit losses on OBS(1) credit exposures |
|
|
|
|
|
|
|
|
|
|||
Totals: |
|
$ |
|
|
$ |
|
|
$ |
|
(1)
Allowance for Credit Losses- Available-For-Sale Securities: For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management 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 the adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exist, the present value of cash flows expected to be collected from the security are 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 that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.
(Continued)
9
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectability of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Allowance for Credit Losses- Loans: The allowance for credit losses (ACL) is a valuation account that is deducted from (or added to) the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.
The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. The Company has identified the following portfolio segments:
One-to-four family
Multi-family
Commercial real estate
Construction
Commercial
Home equity loans and line of credit
Consumer loans
The Company uses call code and loan level information in a probability of default/loss given default model. The model incorporates life-of-loan requirements and considers assumptions that effect the contractual life. There is one set of financial models for all interest rate risk, liquidity risk and credit risk modeling, in addition to loan origination and pricing process.
(Continued)
10
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the unfunded commitments provision. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.
FASB ASU 2022-02 (Topic 326), “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures”
On January 1, 2023, the Company prospectively adopted ASU 2022-02 “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures” related to troubled debt restructurings and vintage disclosures for financing receivables. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivable by year or origination in the vintage disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted.
(Continued)
11
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 2 – SECURITIES AVAILABLE FOR SALE
Debt Securities
The fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at September 30, 2023 and December 31, 2022 were as follows:
September 30, 2023 |
|
Amortized |
|
|
Gross |
|
|
Gross |
|
|
Estimated |
|
||||
U.S Government sponsored entities |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Municipal – taxable |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Municipal – tax exempt |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Residential mortgage-backed |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Commercial mortgage-backed |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
SBA(1) guaranteed debenture |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Total |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
December 31, 2022 |
|
Amortized |
|
|
Gross |
|
|
Gross |
|
|
Estimated |
|
||||
U.S Government sponsored entities |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Municipal – taxable |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Municipal – tax exempt |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Residential mortgage-backed |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Commercial mortgage-backed |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
SBA guaranteed debenture |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Total |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
(1)
The Company’s mortgage-backed securities are primarily issued by agencies such as Fannie Mae and Ginnie Mae.
(Continued)
12
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued)
The proceeds from calls of securities are listed below:
|
|
For the Nine Months Ended September 30, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Proceeds |
|
$ |
|
|
$ |
|
||
Gross gains |
|
|
|
|
|
|
||
Gross losses |
|
|
|
|
|
|
There were
The amortized cost and fair value of the investment securities portfolio are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|
|
September 30, 2023 |
|
|||||
|
|
Amortized |
|
|
Estimated |
|
||
Due within one year |
|
$ |
|
|
$ |
|
||
Due after one to five years |
|
|
|
|
|
|
||
Due after five to ten years |
|
|
|
|
|
|
||
Due after ten years |
|
|
|
|
|
|
||
Residential mortgage-backed |
|
|
|
|
|
|
||
Commercial mortgage-backed |
|
|
|
|
|
|
||
SBA guaranteed debenture |
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
Carrying amounts of securities pledged to secure public deposits as of September 30, 2023 and December 31, 2022 were $
(Continued)
13
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued)
S
|
|
Less than 12 months |
|
|
12 months or more |
|
|
Total |
|
|||||||||||||||
September 30, 2023 |
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
||||||
U.S Government sponsored entities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||||
Municipal – taxable |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Municipal – tax exempt |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Residential mortgage-backed |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Commercial mortgage-backed |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
SBA guaranteed debenture |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Total temporarily impaired |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
|
Less than 12 months |
|
|
12 months or more |
|
|
Total |
|
|||||||||||||||
December 31, 2022 |
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
||||||
U.S Government sponsored entities |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
) |
|
$ |
|
|
$ |
( |
) |
||||
Municipal – taxable |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Municipal – tax exempt |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Residential mortgage-backed |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Commercial mortgage-backed |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
SBA guaranteed debenture |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Total temporarily impaired |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
ACL on Securities:
The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Quarterly, the Company evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis. The Company considers the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer. Additionally, the Company considers its intent to sell or whether it will be more likely than not it will be required to sell the security prior to the security’s anticipated recovery in fair value. If the Company determines that a credit loss exists, the credit portion of the allowance is measured using a discounted cash flow analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss will be limited to the amount by which the amortized cost exceeds the fair value. The analysis utilizes contractual maturities, as well as third-party credit ratings.
(Continued)
14
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued)
At September 30, 2023, the Company did not identify any securities that violate the credit loss triggers; therefore, no analysis was performed and no credit loss was recognized on any of the securities available-for-sale. Additionally, accrued interest receivable is excluded from the estimate of credit losses for securities available-for-sale and was reported in other assets on the accompanying consolidated balance sheet.
All of the securities have unrealized losses at September 30, 2023. None of the unrealized losses for these securities have been recognized into net income for the period ended September 30, 2023 because the issuer's bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach their maturity date or reset date.
Equity Securities
There was
(Continued)
15
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS
Loans at September 30, 2023 and December 31, 2022 were as follows:
|
|
2023 |
|
|
2022 |
|
||
|
|
|
|
|
|
|
||
Real Estate Loans: |
|
|
|
|
|
|
||
One-to-four family |
|
$ |
|
|
$ |
|
||
Multi-family |
|
|
|
|
|
|
||
Commercial |
|
|
|
|
|
|
||
Construction |
|
|
|
|
|
|
||
Total real estate loans |
|
|
|
|
|
|
||
Commercial loans |
|
|
|
|
|
|
||
Consumer loans: |
|
|
|
|
|
|
||
Home equity loans and lines of credit |
|
|
|
|
|
|
||
Other consumer |
|
|
|
|
|
|
||
Total consumer loans |
|
|
|
|
|
|
||
Total loans |
|
|
|
|
|
|
||
Net deferred loans fees |
|
|
( |
) |
|
|
( |
) |
Allowance for loan losses |
|
|
( |
) |
|
|
( |
) |
Loans, net |
|
$ |
|
|
$ |
|
(Continued)
16
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
The following tables present the activity in the allowance for loan losses for the periods ending September 30, 2023, and the allowance for loan losses for the period ending September 30, 2022. On January 1, 2023, the Company adopted ASC 326. Refer to Note 1 for further details. The recorded investment in loans in any of the following tables does not include accrued and unpaid interest or any deferred loan fees or costs, as amounts are not significant.
|
|
Real Estate |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Three Months Ended September 30, 2023 |
|
One-to-Four Family |
|
|
Multi-Family |
|
|
Commercial |
|
|
Construction |
|
|
Commercial |
|
|
Consumer |
|
|
Total |
|
|||||||
Beginning balance July 1, 2023 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Charge offs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provisions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Total ending balance September 30, 2023 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance January 1, 2023, prior to adoption of ASC 326 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Impact of adopting ASC 326 |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|||||
Charge offs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Provisions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|||
Total ending balance September 30, 2023 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Real Estate |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Three Months Ended September 30, 2022 |
|
One-to-Four Family |
|
|
Multi-Family |
|
|
Commercial |
|
|
Construction |
|
|
Commercial |
|
|
Consumer |
|
|
Total |
|
|||||||
Beginning balance July 1, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Charge offs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provisions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||||
Total ending balance September 30, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Nine Months Ended September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance January 1, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Charge offs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Recoveries |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Provisions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total ending balance September 30, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
For collateral-dependent loans, the allowance for credit losses is individually assessed based on the fair value of the collateral less estimated costs of sale.
|
|
September 30, 2023 |
|
|
Real estate loans: |
|
|
|
|
One-to-four family |
|
$ |
|
|
Multi-family |
|
|
|
|
Commercial |
|
|
|
|
Commercial |
|
|
|
|
Consumer |
|
|
|
|
Total |
|
$ |
|
(Continued)
17
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
The following table provides the amount of the allowance for credit losses by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality for the period ending December 31, 2022.
|
|
Real Estate |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
December 31, 2022 |
|
One-to-Four Family |
|
|
Multi-Family |
|
|
Commercial |
|
|
Construction |
|
|
Commercial |
|
|
Consumer |
|
|
Total |
|
|||||||
Ending balance attributed to loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Individually evaluated for impairment |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Collectively evaluated for impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total ending allowance balance December 31, 2022: |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
The following table provides the amount of loans by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality for the period ending December 31, 2022.
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans individually evaluated for impairment |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Loans collectively evaluated for impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total ending loans balance December 31, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
The following tables present loans individually evaluated for impairment by portfolio class at December 31, 2022 and the respective average balances of impaired loans and interest income recognized for the three and nine months ended September 30, 2022:
|
|
December 31, 2022 |
|
|||||||||
|
|
Unpaid |
|
|
Recorded |
|
|
Related |
|
|||
With no recorded allowance: |
|
|
|
|
|
|
|
|
|
|||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|||
One-to-four family |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Multi-family |
|
|
|
|
|
|
|
|
|
|||
Commercial |
|
|
|
|
|
|
|
|
|
|||
Commercial |
|
|
|
|
|
|
|
|
|
|||
Consumer: |
|
|
|
|
|
|
|
|
|
|||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
(Continued)
18
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
|
|
Three Months ended |
|
|
Nine Months ended |
|
||||||||||
|
|
Average |
|
|
Interest |
|
|
Average |
|
|
Interest |
|
||||
With no recorded allowance: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
One-to-four family |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Multi-family |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial loans |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no loans individually evaluated for impairment with recorded allowance for the three and nine months ended September 30, 2023 and 2022. The difference between interest income recognized and cash basis interest income recognized was not material.
The following tables present the aging of the recorded investment in past due loans at September 30, 2023 and December 31, 2022 by portfolio class of loans:
September 30, 2023 |
|
30-59 Days Past Due |
|
|
60-89 Days Past Due |
|
|
90 Days or More Past Due |
|
|
Total Past Due |
|
|
Current |
|
|
Total Loans |
|
||||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
One-to-four family |
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Multi-family |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Commercial |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Total real estate loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Home equity loans and lines of credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Other consumer loans |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
(Continued)
19
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
December 31, 2022 |
|
30-59 Days Past due |
|
|
60-89 Days Past due |
|
|
90 Days or More Past Due |
|
|
Total Past Due |
|
|
Current |
|
|
Total Loans |
|
||||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
One-to-four family |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Multi-family |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Commercial |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Total real estate loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Home equity loans and lines of credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Other consumer loans |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
A loan past due 90 days or more need not automatically be placed in nonaccrual status if the loan is a consumer loan (loans to individuals for household, family and other personal expenditures) or the loan is secured by a one-to-four family residential property. Such loans should be subject to other alternative methods of evaluation to assure that the Bank's interest income is not materially overstated. The loans that were past due 90 days or more and were accruing interest as of September 30, 2023 due to the fact that they were well secured and in the process of collection. Not all nonaccrual loans, including loans over 89 past due and still accruing, have an individually evaluated ACL.
The following tables present the recorded investment in nonaccrual loans by class of loans as of September 30, 2023 and December 31, 2022:
|
|
September 30, 2023 |
|
|||||||||
|
|
Nonaccrual with No ACL |
|
|
Total Nonaccrual |
|
|
Loans Past Due 90 Days or More Still Accruing |
|
|||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|||
One-to-four family |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Commercial real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total real estate loans |
|
|
|
|
|
|
|
|
|
|||
Commercial loans: |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|||
Other consumer loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total consumer loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
|
|
$ |
|
|
$ |
|
(Continued)
20
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
|
|
December 31, 2022 |
|
|||||||||
|
|
Nonaccrual with No ACL |
|
|
Total Nonaccrual |
|
|
Loans Past Due 90 Days or More Still Accruing |
|
|||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|||
One-to-four family |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Commercial real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total real estate loans |
|
|
|
|
|
|
|
|
|
|||
Commercial loans: |
|
|
|
|
|
|
|
|
— |
|
||
Consumer loans: |
|
|
|
|
|
|
|
|
|
|||
Other consumer loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total consumer loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
|
|
$ |
|
|
$ |
|
Loan Modifications to Borrowers Experiencing Financial Difficulty:
Occasionally, the Company may make certain modifications of loans to borrowers experiencing financial difficultly. These modifications may be in the form of an interest rate reduction, a term extension or a combination thereof.
Upon the Company's determination that a modified loan has subsequently been uncollectible, the portion of the loan deemed uncollectible is charged off against the allowance for credit losses on loans held for investment.
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of these modifications efforts. During the three and nine months ended September 30, 2023, the Company had no modified loans to borrowers experiencing financial difficulty.
Troubled Debt Restructurings (TDR):
The following disclosure is presented in accordance with GAAP in effect prior to the adoption of ASU 2022-02. The Company has included this disclosure as of December 31, 2022 or for the three and nine months ended September 30, 2023.
Prior to the Company's adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of loans that resulted in granting a concession to borrowers experiencing financial difficulties as a TDR. ASU 2022-02 eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Loans that were restructured in a TDR prior to the adoption of ASU 2022-002 will continue to be accounted for under the historical TDR accounting until the loan is paid off, liquidated or subsequently modified. See Note 1 for more information on the Company's adoption of ASU 2022-02.
(Continued)
21
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
Loan restructurings as of December 31, 2022 were $
There were
Credit Quality Indicators:
The Company utilizes a grading system whereby all loans are assigned a grade based on the risk profile of each loan. Loan grades are determined based on an evaluation of relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. All loans, regardless of size, are analyzed and are given a grade based upon the management’s assessment of the ability of borrowers to service their debts. The analysis is performed on a quarterly basis.
The Company uses the following definitions for loan grades:
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the loan or of the institution’s credit position at some future date.
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
(Continued)
22
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
Loans not meeting the criteria above are graded Pass. These loans are included within groups of homogeneous pools of loans based upon portfolio segment and class for estimation of the allowance for loan losses on a collective basis.
At September 30, 2023 and December 31, 2022, based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
|
|
Term Loans by Origination Year |
|
|
|
|
|
|
|
|||||||||||||||||||||||
September 30, 2023 |
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Prior |
|
|
Revolving Loans |
|
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
One-to-four family |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||||||
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total one-to-four family |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
$ |
|
||||||||
Multi-family |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass |
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||||
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total multi-family. |
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||||
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|||
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total commercial real estate |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||||
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total construction |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total commercial |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
(Continued)
23
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 3 – LOANS (Continued)
|
|
Term Loans by Origination Year |
|
|
|
|
|
|
|
|||||||||||||||||||||||
September 30, 2023 |
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Prior |
|
|
Revolving Loans |
|
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Home equity and lines of credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
|
||
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total home equity and lines of credit |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
|
||
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
||||||
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total consumer |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Loans |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
December 31, 2022 |
|
Pass |
|
|
Special Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Total |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
One-to-four family |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
||||
Multi-family |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Construction |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Total real estate loans |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Commercial |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|||
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Home equity loans and lines of credit |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Other consumer loans |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
(Continued)
24
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 4- PREMISES AND EQUIPMENT
Premises and equipment at September 30, 2023 and December 31, 2022 were as follows:
|
|
2023 |
|
|
2022 |
|
||
Land |
|
$ |
|
|
$ |
|
||
Buildings and improvements |
|
|
|
|
|
|
||
Furniture, fixtures and equipment |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Less: Accumulated depreciation |
|
|
( |
) |
|
|
( |
) |
|
|
$ |
|
|
$ |
|
Depreciation expense for the three and nine months ended September 30, 2023 was $
NOTE 5 – DEPOSITS
Time deposits that meet or exceed the FDIC insurance limit of $
2023 |
|
$ |
|
|
2024 |
|
|
|
|
2025 |
|
|
|
|
2026 |
|
|
|
|
2027 |
|
|
|
|
Thereafter |
|
|
|
At September 30, 2023 and 2022, overdraft demand and savings deposits reclassified to loans totaled $
(Continued)
25
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 6 – FEDERAL HOME LOAN BANK ADVANCES AND OTHER DEBT
At September 30, 2023 and December 31, 2022, advances from the Federal Home Loan Bank were as follows:
|
|
2023 |
|
|
2022 |
|
||
Maturities October 2025 through March 2028, fixed rate at rates |
|
$ |
|
|
$ |
|
||
Maturities September 2024 through October 2027, fixed rate at rates |
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
During the nine months ended September 30, 2023, the Company restructured $
Each advance in the table above is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $
Payments over the next five years are as follows:
2023 |
|
$ |
|
|
2024 |
|
|
|
|
2025 |
|
|
|
|
2026 |
|
|
|
|
2027 |
|
|
|
|
Thereafter |
|
|
|
The Company had approximately $
(Continued)
26
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 7 - EMPLOYEE STOCK OWNERSHIP PLAN
With the conversion to the stock holding company,
The Company will make discretionary contributions to the ESOP, as well as paying dividends on unallocated shares to the ESOP, and the ESOP uses funds it receives to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation and expense is recorded. Dividends on allocated shares increase participant accounts.
Participants receive the shares at the end of employment. A participant may require stock received to be repurchased unless the stock is traded on an established market.
The ESOP compensation expense for the three months ended September 30, 2023 and 2022 was $
NOTE 8 – STOCK BASED COMPENSATION
In May 2020, the stockholders approved the Cullman Bancorp, Inc. 2020 Equity Incentive Plan (the “2020 Equity Incentive Plan”) for employees and directors of the Company. The Equity Incentive Plan authorizes the issuance of up to
(Continued)
27
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 8 – STOCK BASED COMPENSATION (Continued)
In May 2023, the stockholders approved the Cullman Bancorp, Inc. 2023 Equity Incentive Plan (the "2023 Equity Incentive Plan") for employees and directors of the Company. The 2023 Equity Incentive Plan authorizes the issuance of up to
As of September 30, 2023, there were
The following table summarizes stock option activity for the nine months ended September 30, 2023:
|
|
Options |
|
|
Weighted- |
|
|
Weighted- |
|
|
Aggregate |
|
||||
Outstanding 1/1/23 |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exercised |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forfeited |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Outstanding 9/30/23 |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Vested or expected to vest |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Exercisable at period end |
|
|
|
|
|
|
|
|
|
|
$ |
|
(1)
There were
(Continued)
28
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 8 – STOCK BASED COMPENSATION (Continued)
In relation to the 2023 Equity Incentive Plan, there were
A summary of changes in the Company's nonvested shares for the nine months ended September 30, 2023 follows:
|
|
2023 |
|
|
Weighted Average Grant-Date Fair Value |
|
||
Balance – January 1, 2023 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
( |
) |
|
|
|
|
Balance –September 30, 2023 |
|
|
|
|
$ |
|
The following table summarizes the restricted stock fair value:
Date of Awards |
Shares |
|
|
|
Converted Shares |
|
|
Vesting Period (years) |
|
Converted Fair Value |
|
|||
August 2020 |
|
|
|
|
|
|
|
|
$ |
|
||||
August 2023 |
|
|
|
|
|
|
|
|
|
|
For the three and nine months ended September 30, 2023, stock-based compensation expense for restricted stock included in non-interest expense was $
For both the three and nine months ended September 30, 2023, stock-based compensation expense for restricted stock included in non-interest expense was $
(Continued)
29
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 9 - REGULATORY CAPITAL MATTERS
Banks and their holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of September 30, 2023, the Bank meets all capital adequacy requirements to which they are subject. The Bancorp is not subject to regulatory capital requirements due to its size.
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of September 30, 2023 and December 31, 2022, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.
The community bank leverage ratio framework (CBLR framework), provides qualifying community banking organizations an optional, simplified measure to determine capital adequacy. The Bank made the election to be subject to the CBLR framework as of December 31, 2020.
The community bank leverage ratio removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying banking organizations that elect to use the community bank leverage rate framework and that maintain a leverage ratio of greater than required minimums will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) and, if applicable, will be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. The community bank leverage ratio minimum requirement is currently
(Continued)
30
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 9 - REGULATORY CAPITAL MATTERS (Continued)
An eligible banking organization can opt out of the CBLR framework and revert back to the risk-weighting framework without restriction. As of September 30, 2023 the Bank was a qualifying community banking organization as defined by the federal banking agencies and elected to measure capital adequacy under the CBLR framework.
Actual and required capital amounts for the Bank and ratios at September 30, 2023 and December 31, 2022 are presented below:
|
|
Actual |
|
|
To be well Capitalized |
|
||||||||||
|
|
Amount |
|
|
Ratio |
|
|
Amount |
|
|
Ratio |
|
||||
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tier 1 (Core) Capital to average total |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
||||
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tier 1 (Core) Capital to average total |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
The Qualified Thrift Lender test requires at least
Dividend Restrictions - The Company’s principal source of funds for dividend payments is dividends received from the Bank as well as proceeds retained from the mutual-to-stock conversion. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. During 2023, the Bank could, without prior approval from its regulators, declare dividends of approximately $
(Continued)
31
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability; or generated from model-based techniques that use at least one significant assumption not observable in the market. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
The Company used the following methods and significant assumptions to estimate fair value:
Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Equity securities are carried at fair value, with changes in fair value reported in net income. This investment is considered an equity security with readily determinable fair value not held for trading (Level 3).
(Continued)
32
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)
For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The Company’s taxable municipal investment securities’ fair values are determined based on a discounted cash flow analysis prepared by an independent third party.
Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.
Foreclosed Real Estate: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.
For appraisals where the value is $
(Continued)
33
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)
Assets and Liabilities Measured on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized below:
|
|
Fair Value Measurement Using |
|
|||||||||
|
|
Quoted Prices in |
|
|
Significant Other |
|
|
Significant |
|
|||
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|||
Securities available for sale |
|
|
|
|
|
|
|
|
|
|||
U.S. Government sponsored agencies |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Municipal – taxable |
|
|
|
|
|
|
|
|
|
|||
Municipal – taxable exempt |
|
|
|
|
|
|
|
|
|
|||
Residential mortgage-backed |
|
|
|
|
|
|
|
|
|
|||
Commercial mortgage-backed |
|
|
|
|
|
|
|
|
|
|||
SBA guaranteed debenture |
|
|
|
|
|
|
|
|
|
|||
Total investment securities available for sale |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
Fair Value Measurement Using |
|
|||||||||
|
|
Quoted Prices in |
|
|
Significant Other |
|
|
Significant |
|
|||
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|||
Securities available for sale |
|
|
|
|
|
|
|
|
|
|||
U.S. Government sponsored agencies |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Municipal – taxable |
|
|
|
|
|
|
|
|
|
|||
Municipal – taxable exempt |
|
|
|
|
|
|
|
|
|
|||
Residential mortgage-backed |
|
|
|
|
|
|
|
|
|
|||
Commercial mortgage-backed |
|
|
— |
|
|
|
|
|
|
— |
|
|
SBA guaranteed debenture |
|
|
|
|
|
|
|
|
|
|||
Total investment securities available for sale |
|
$ |
|
|
$ |
|
|
$ |
|
(Continued)
34
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2023:
|
|
Equity Securities |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
|
|
|
|
|
|
|
||
Beginning Balance of recurring Level 3 assets |
|
$ |
|
|
$ |
|
||
Purchases |
|
|
|
|
|
|
||
Redemption |
|
|
( |
) |
|
|
|
|
Unrealized gain |
|
|
|
|
|
|
||
Ending Balance of recurring Level 3 assets |
|
$ |
|
|
$ |
|
There were
Our state and municipal securities valuations are supported by analysis prepared by an independent third party. Their approach to determining fair value involves using recently executed transactions for similar securities and market quotations for similar securities. As these securities are not rated by the rating agencies and trading volumes are thin, it was determined that these were valued using Level 3 inputs. The significant unobservable inputs used in the fair value measurement of the Company's taxable municipal securities are discount rates and credit spreads that the market would require for taxable municipal securities with similar maturities and risk characteristics. Significant increases/(decreases) in any of those inputs in isolation would result in a significantly lower/(higher) fair value measurement.
(Continued)
35
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)
Assets and Liabilities Measured on a Nonrecurring Basis
The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period.
|
|
Fair Value Measurements |
|
|||||
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
||
Impaired loans: |
|
|
|
|
|
|
||
RE loans: |
|
|
|
|
|
|
||
One-to four family |
|
$ |
|
|
$ |
|
||
Commercial |
|
|
|
|
|
|
||
Foreclosed real estate: |
|
|
|
|
|
|
||
One-to four family |
|
$ |
|
|
$ |
|
The Company has estimated the fair values of these assets using Level 3 inputs, specifically the appraised value of the collateral. Impaired loan balances represent those collateral dependent impaired loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the impaired loan for the amount of the credit loss. The Company had
(Continued)
36
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)
The carrying amounts and estimated fair values of the Company’s on-balance sheet financial instruments at September 30, 2023 and December 31, 2022 are summarized below:
|
|
|
|
|
Fair Value Measurements at |
|
||||||||||||||
|
|
Carrying Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|||||
Financial assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Securities available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accrued interest receivable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restricted equity securities |
|
|
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|||||
Federal Home Loan Bank advances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accrued interest payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at |
|
||||||||||||||
|
|
Carrying Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|||||
Financial assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Securities available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accrued interest receivable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restricted equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|||||
Federal Home Loan Bank advances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accrued interest payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
37
CULLMAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data)
NOTE 11 – EARNINGS PER COMMON SHARE
The factors used in the earnings per common share computation follow:
|
|
For the Three Months |
|
|
For the Nine Months |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Less: Distributed earning allocated to participating |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plus (Less): Loss (Earnings) allocated to participating securities |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net earnings allocated to common stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Participating securities |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Less: Average unearned ESOP shares |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Weighted average shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings (loss) per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings allocated to common stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Add: dilutive effects of assumed exercises of stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average shares and dilutive potential common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings (loss) per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Stock options for shares of common stock of
(Continued)
38
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Statement Regarding Forward-Looking Information
This Quarterly Report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may,” “continue” and words of similar meaning. These forward-looking statements include, but are not limited to:
These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. You should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this Quarterly Report.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
39
40
Comparison of Financial Condition at September 30, 2023 and December 31, 2022
Total assets decreased $5.9 million, or 1.4%, to $417.3 million at September 30, 2023 from $423.2 million at December 31, 2022. The decrease was due to a decrease in federal funds due to a decrease in deposits.
Cash and cash equivalents decreased $13.8 million, or 37.8%, to $22.8 million at September 30, 2023 from $36.6 million at December 31, 2022. The decrease was due to the decrease in deposits as well as us using cash to fund loan growth.
Gross loans held for investment increased $8.3 million, or 2.5%, to $341.1 million at September 30, 2023 from $332.8 million at December 31, 2022. The increase was primarily due to an increase in one-to-four family loans, which increased $6.8 million, or 4.0%, to $179.0 million at September 30, 2023 from $172.2 million at December 31, 2022. The increase was also due to an increase in commercial real estate loans, which increased $4.2 million, or 4.4% to $100.2 million at September 30, 2023 from $96.0 million at December 31, 2022.
Securities available for sale decreased $2.5 million or 8.3%, to $27.3 million at September 30, 2023 from $29.8 million at December 31, 2022. The decrease was caused by the increase in the unrealized loss as well as paydowns received.
Total deposits decreased $18.7 million, or 6.4%, to $274.2 million at September 30, 2023 from $292.9 million at December 31, 2022. We experienced decreases in regular savings and other deposits of $16.9 million, or 21.2%, to $62.7 million at September 30, 2023 from $79.6 million at December 31, 2022, This decrease was due to public funds using deposits for construction projects. Interest-bearing demand deposits decreased $5.2 million, or 4.6%, to $109.7 million at September 30, 2023 from $114.9 million at December 31, 2022. Noninterest bearing demand deposits decreased $3.2 million or 19.4% to $13.1 million at September 30, 2023 from $16.3 million at December 31, 2022. The decrease was also a result of customers moving funds into time deposits to take advantage of higher interest rates. Time deposits increased $7.1 million, or 9.0%, to $86.6 million at September 30, 2023 from $79.5 million at December 31, 2022.
Borrowings increased $10.0 million, or 40.0%, to $35.0 million of borrowings at September 30, 2023, from $25.0 million at December 31, 2022. We restructured our borrowings during the year to extend our liability duration and recognized a gain of $127,000. We regularly review our liquidity position based on alternative uses of available funds as well as market conditions.
Stockholders’ equity increased $1.0 million, or 1.0%, to $101.2 million at September 30, 2023 from $100.2 million at December 31, 2022. The increase was mainly due to the increase in retained earnings of $2.0 million for the nine months ended September 30, 2023. Stockholders' equity (book value) per share at September 30, 2023 was $13.89.
41
Average Balance Sheets
The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Loan balances exclude loans held for sale.
|
|
Three Months Ended September 30, |
|
|||||||||||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||||||||||
|
|
Average |
|
|
Interest |
|
|
Average |
|
|
Average |
|
|
Interest |
|
|
Average |
|
||||||
|
|
(Dollars in thousands) |
|
|||||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans |
|
$ |
339,415 |
|
|
$ |
4,460 |
|
|
|
5.26 |
% |
|
$ |
319,258 |
|
|
$ |
3,892 |
|
|
|
4.88 |
% |
Securities |
|
|
28,741 |
|
|
|
232 |
|
|
|
3.23 |
% |
|
|
29,329 |
|
|
|
254 |
|
|
|
3.46 |
% |
Federal Home Loan Bank and Federal Reserve stock |
|
|
2,596 |
|
|
|
54 |
|
|
|
8.32 |
% |
|
|
270 |
|
|
|
2 |
|
|
|
2.96 |
% |
Federal funds sold |
|
|
22,938 |
|
|
|
305 |
|
|
|
5.32 |
% |
|
|
17,288 |
|
|
|
95 |
|
|
|
2.20 |
% |
Total interest-earning assets |
|
|
393,690 |
|
|
|
5,051 |
|
|
|
5.13 |
% |
|
|
366,145 |
|
|
|
4,243 |
|
|
|
4.64 |
% |
Noninterest-earning assets |
|
|
26,141 |
|
|
|
|
|
|
|
|
|
23,501 |
|
|
|
|
|
|
|
||||
Total assets |
|
$ |
419,831 |
|
|
|
|
|
|
|
|
$ |
389,646 |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits |
|
$ |
108,373 |
|
|
|
163 |
|
|
|
0.60 |
% |
|
$ |
104,077 |
|
|
|
32 |
|
|
|
0.12 |
% |
Regular savings and other deposits |
|
|
66,844 |
|
|
|
78 |
|
|
|
0.47 |
% |
|
|
82,632 |
|
|
|
66 |
|
|
|
0.32 |
% |
Money market deposits |
|
|
2,223 |
|
|
|
3 |
|
|
|
0.54 |
% |
|
|
3,297 |
|
|
|
1 |
|
|
|
0.12 |
% |
Certificates of deposit |
|
|
85,464 |
|
|
|
555 |
|
|
|
2.60 |
% |
|
|
75,839 |
|
|
|
155 |
|
|
|
0.82 |
% |
Total interest-bearing deposits |
|
|
262,904 |
|
|
|
799 |
|
|
|
1.22 |
% |
|
|
265,845 |
|
|
|
254 |
|
|
|
0.38 |
% |
Federal Home Loan Bank advances |
|
|
35,000 |
|
|
|
381 |
|
|
|
4.35 |
% |
|
|
2,500 |
|
|
|
27 |
|
|
|
4.32 |
% |
Total interest-bearing liabilities |
|
|
297,904 |
|
|
|
1,180 |
|
|
|
1.58 |
% |
|
|
268,345 |
|
|
|
281 |
|
|
|
0.42 |
% |
Noninterest-bearing demand deposits |
|
|
12,506 |
|
|
|
|
|
|
|
|
|
15,617 |
|
|
|
|
|
|
|
||||
Other noninterest-bearing liabilities |
|
|
8,290 |
|
|
|
|
|
|
|
|
|
7,163 |
|
|
|
|
|
|
|
||||
Total liabilities |
|
|
318,700 |
|
|
|
|
|
|
|
|
|
291,125 |
|
|
|
|
|
|
|
||||
Total shareholders’ equity |
|
|
101,131 |
|
|
|
|
|
|
|
|
|
98,521 |
|
|
|
|
|
|
|
||||
Total liabilities and shareholders’ |
|
$ |
419,831 |
|
|
|
|
|
|
|
|
$ |
389,646 |
|
|
|
|
|
|
|
||||
Net interest income |
|
|
|
|
$ |
3,871 |
|
|
|
|
|
|
|
|
$ |
3,962 |
|
|
|
|
||||
Net interest rate spread (2) |
|
|
|
|
|
|
|
|
3.55 |
% |
|
|
|
|
|
|
|
|
4.22 |
% |
||||
Net interest-earning assets (3) |
|
$ |
95,786 |
|
|
|
|
|
|
|
|
$ |
97,800 |
|
|
|
|
|
|
|
||||
Net interest margin (4) |
|
|
|
|
|
|
|
|
3.93 |
% |
|
|
|
|
|
|
|
|
4.33 |
% |
||||
Average interest-earning assets to |
|
1.32x |
|
|
|
|
|
|
|
|
1.36x |
|
|
|
|
|
|
|
42
|
|
For the Nine Months Ended September 30, |
|
|||||||||||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||||||||||
|
|
Average |
|
|
Interest |
|
|
Average |
|
|
Average |
|
|
Interest |
|
|
Average |
|
||||||
|
|
(Dollars in thousands) |
|
|||||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans |
|
$ |
337,387 |
|
|
$ |
12,814 |
|
|
|
5.06 |
% |
|
$ |
289,876 |
|
|
$ |
11,110 |
|
|
|
5.11 |
% |
Securities |
|
|
29,607 |
|
|
|
721 |
|
|
|
3.25 |
% |
|
|
26,787 |
|
|
|
588 |
|
|
|
2.93 |
% |
Federal Home Loan Bank and Federal Reserve stock |
|
|
2,398 |
|
|
|
92 |
|
|
|
5.12 |
% |
|
|
255 |
|
|
|
17 |
|
|
|
8.89 |
% |
Federal funds sold |
|
|
22,776 |
|
|
|
840 |
|
|
|
4.92 |
% |
|
|
33,858 |
|
|
|
187 |
|
|
|
0.74 |
% |
Total interest-earning assets |
|
|
392,168 |
|
|
|
14,467 |
|
|
|
4.92 |
% |
|
|
350,776 |
|
|
|
11,902 |
|
|
|
4.52 |
% |
Noninterest-earning assets |
|
|
25,240 |
|
|
|
|
|
|
|
|
|
21,454 |
|
|
|
|
|
|
|
||||
Total assets |
|
$ |
417,408 |
|
|
|
|
|
|
|
|
$ |
372,230 |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits |
|
$ |
106,381 |
|
|
|
327 |
|
|
|
0.41 |
% |
|
$ |
95,882 |
|
|
|
84 |
|
|
|
0.12 |
% |
Regular savings and other deposits |
|
|
71,280 |
|
|
|
252 |
|
|
|
0.47 |
% |
|
|
73,132 |
|
|
|
126 |
|
|
|
0.23 |
% |
Money market deposits |
|
|
2,523 |
|
|
|
7 |
|
|
|
0.37 |
% |
|
|
4,102 |
|
|
|
5 |
|
|
|
0.16 |
% |
Certificates of deposit |
|
|
83,011 |
|
|
|
1,345 |
|
|
|
2.16 |
% |
|
|
76,696 |
|
|
|
473 |
|
|
|
0.82 |
% |
Total interest-bearing deposits |
|
|
263,195 |
|
|
|
1,931 |
|
|
|
0.98 |
% |
|
|
249,812 |
|
|
|
688 |
|
|
|
0.37 |
% |
Federal Home Loan Bank advances |
|
|
32,070 |
|
|
|
1,041 |
|
|
|
4.33 |
% |
|
|
2,194 |
|
|
|
48 |
|
|
|
2.92 |
% |
Total interest-bearing liabilities |
|
|
295,265 |
|
|
|
2,972 |
|
|
|
1.34 |
% |
|
|
252,006 |
|
|
|
736 |
|
|
|
0.39 |
% |
Noninterest-bearing demand deposits |
|
|
14,440 |
|
|
|
|
|
|
|
|
|
14,722 |
|
|
|
|
|
|
|
||||
Other noninterest-bearing liabilities |
|
|
6,826 |
|
|
|
|
|
|
|
|
|
6,418 |
|
|
|
|
|
|
|
||||
Total liabilities |
|
|
316,531 |
|
|
|
|
|
|
|
|
|
273,146 |
|
|
|
|
|
|
|
||||
Total shareholders’ equity |
|
|
100,877 |
|
|
|
|
|
|
|
|
|
99,084 |
|
|
|
|
|
|
|
||||
Total liabilities and shareholders’ |
|
$ |
417,408 |
|
|
|
|
|
|
|
|
$ |
372,230 |
|
|
|
|
|
|
|
||||
Net interest income |
|
|
|
|
$ |
11,495 |
|
|
|
|
|
|
|
|
$ |
11,166 |
|
|
|
|
||||
Net interest rate spread (2) |
|
|
|
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
|
|
|
4.13 |
% |
||||
Net interest-earning assets (3) |
|
$ |
96,903 |
|
|
|
|
|
|
|
|
$ |
98,770 |
|
|
|
|
|
|
|
||||
Net interest margin (4) |
|
|
|
|
|
|
|
|
3.91 |
% |
|
|
|
|
|
|
|
|
4.24 |
% |
||||
Average interest-earning assets to |
|
1.33x |
|
|
|
|
|
|
|
|
1.39x |
|
|
|
|
|
|
|
The following tables present the effects of changing rates and volumes on our net interest income for the three and nine months ended September 30, 2023 and 2022. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of these tables, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the tables below.
43
|
For the Three Months ended September 30, 2023 vs. 2022 |
|
|||||||||
|
|
|
|||||||||
|
Increase (Decrease) Due to |
|
|
Total Increase |
|
||||||
|
Volume |
|
|
Rate |
|
|
(Decrease) |
|
|||
|
|
|
|
(In thousands) |
|
|
|
|
|||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|||
Loans |
$ |
1,060 |
|
|
$ |
(492 |
) |
|
$ |
568 |
|
Securities |
|
(19 |
) |
|
|
(3 |
) |
|
|
(22 |
) |
Federal Home Loan Bank stock |
|
194 |
|
|
|
(142 |
) |
|
|
52 |
|
Federal funds sold |
|
301 |
|
|
|
(91 |
) |
|
|
210 |
|
Total interest-earning assets |
|
1,536 |
|
|
|
(728 |
) |
|
|
808 |
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|||
Interest-bearing demand deposits |
|
146 |
|
|
|
(15 |
) |
|
|
131 |
|
Regular savings and other deposits |
|
(74 |
) |
|
|
86 |
|
|
|
12 |
|
Money market deposits |
|
(6 |
) |
|
|
8 |
|
|
|
2 |
|
Certificates of deposit |
|
250 |
|
|
|
150 |
|
|
|
400 |
|
Total interest-bearing deposits |
|
316 |
|
|
|
229 |
|
|
|
545 |
|
Federal Home Loan Bank advances |
|
1,414 |
|
|
|
(1,060 |
) |
|
|
354 |
|
Total interest bearing liabilities |
|
1,730 |
|
|
|
(831 |
) |
|
|
899 |
|
|
|
|
|
|
|
|
|
|
|||
Change in net interest income |
$ |
(194 |
) |
|
$ |
103 |
|
|
$ |
(91 |
) |
|
For the Nine Months ended September 30, 2023 vs. 2022 |
|
|||||||||
|
|
|
|||||||||
|
Increase (Decrease) Due to |
|
|
Total Increase |
|
||||||
|
Volume |
|
|
Rate |
|
|
(Decrease) |
|
|||
|
|
|
|
(In thousands) |
|
|
|
|
|||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|||
Loans |
$ |
2,429 |
|
|
$ |
(725 |
) |
|
$ |
1,704 |
|
Securities |
|
83 |
|
|
|
50 |
|
|
|
133 |
|
Federal Home Loan Bank stock |
|
191 |
|
|
|
(116 |
) |
|
|
75 |
|
Federal funds sold |
|
(82 |
) |
|
|
735 |
|
|
|
653 |
|
Total interest-earning assets |
|
2,621 |
|
|
|
(56 |
) |
|
|
2,565 |
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|||
Interest-bearing demand deposits |
|
150 |
|
|
|
93 |
|
|
|
243 |
|
Regular savings and other deposits |
|
(4 |
) |
|
|
130 |
|
|
|
126 |
|
Money market deposits |
|
(3 |
) |
|
|
5 |
|
|
|
2 |
|
Certificates of deposit |
|
52 |
|
|
|
820 |
|
|
|
872 |
|
Total interest-bearing deposits |
|
195 |
|
|
|
1,048 |
|
|
|
1,243 |
|
Federal Home Loan Bank advances |
|
869 |
|
|
|
124 |
|
|
|
993 |
|
Total interest bearing liabilities |
|
1,064 |
|
|
|
1,172 |
|
|
|
2,236 |
|
|
|
|
|
|
|
|
|
|
|||
Change in net interest income |
$ |
1,557 |
|
|
$ |
(1,228 |
) |
|
$ |
329 |
|
Comparison of Operating Results for the three months ended September 30, 2023 and 2022
General. Net income was $1.1 million for the three months ended September 30, 2023, compared to $926,000 for the three months ended September 30, 2022. There was an increase in net income primarily due to an increase in interest income resulting from an increase in loans.
Interest Income. Interest income increased $808,000, or 19.0%, to $5.1 million for three months ended September 30, 2023 from $4.2 million for the three months ended September 30, 2022. The increase was due primarily to an increase in interest income on loans, which is our primary source of interest income. Interest income on loans increased $568,000, or 14.6%, to $4.5 million for the three months ended September 30, 2023 from $3.9 million for the three
44
months ended September 30, 2022. Our average balance of loans increased $20.2 million, or 6.3% for the three months ended September 30, 2023, to $339.4 million for three months ended September 30, 2023 from $319.3 million for the three months ended September 30, 2022. The increase is due to our decision to retain longer-term, fixed-rate loans instead of selling them, as well as the continued growth of commercial lending. Our weighted average yield on loans increased 38 basis points to 5.26% for the three months ended September 30, 2023 compared to 4.88% for the three months ended September 30, 2022. The increase was a reflection of the current rate environment.
Interest Expense. Interest expense increased $899,000, or 319.9% to $1.2 million for the three months ended September 30, 2023 compared to $281,000 for the three months ended September 30, 2022. The increase was due to an increase in borrowing balances as well as an increase in deposit expense due to the rising rate environment.
Interest expense on deposits increased $545,000, or 214.6%, to $799,000 for the three months ended September 30, 2023 compared to $254,000 for the three months ended September 30, 2022. The increase was due primarily to a increase in interest expense on certificates of deposit. Interest expense on certificates of deposit increased $400,000, or 258.1%, to $555,000 for the three months ended September 30, 2023, compared to $155,000 for the three months ended September 30, 2022. We experienced increases in both the average balance of certificates of deposit ($9.6 million, or 12.7%) for the three months ended September 30, 2023 from 2022, and rates paid on certificates of deposit (178 basis points, to 2.6%) for the three months ended September 30, 2023 from 2022.
Due to obtaining additional advances, interest expense on borrowings increased $354,000 to $381,000 for the three months ended September 30, 2023 compared to $27,000 for the three months ended September 30, 2022. The average balance of borrowings increased $32.5 million to $35.0 million compared to a $2.5 million average balance for the three months ended September 30, 2022.
Net Interest Income. Net interest income decreased $91,000, or 2.3%, to $3.9 million for the three months ended September 30, 2023 from $4.0 million for the three months ended September 30, 2022. Our interest rate spread decreased to 3.55% for the three months ended September 30, 2023, compared to 4.22% for the three months ended September 30, 2022, while our interest margin decreased to 3.93% for the three months ended September 30, 2023 compared to 4.33% for the three months ended September 30, 2022.
Provision for Credit Losses. Provisions for credit losses was a credit for $108,000 for the three months ended September 30, 2023 compared to an expenses of $120,000 for the three months ended September 30, 2022. In addition to the provision, there was an expense of $108,000 was related to unfunded commitments. The credit to the provision for funded loans was due to refinements in the model to better incorporate customer debt service coverage ratios into probabilities of default. The increase in the provision for unfunded commitments was due to the change in mix of unfunded commitments and increase in expected loss rates on unfunded home equity lines. Our allowance for credit losses was $3.0 million at September 30, 2023 compared to $2.8 million at December 31, 2022 and $2.7 million at September 30, 2022. The ratio of our allowance for credit/loan losses to total loans was 0.88% at September 30, 2023 compared to 0.85% at December 31, 2022 and 0.82% at September 30, 2022, while the allowance for credit
45
losses to nonperforming loans was 1,950.65% at September 30, 2023 compared to 850.6% at December 31, 2022. We had no charge offs or recoveries for the three months ended September 30, 2023 and 2022.
Non-interest Income. Non-interest income decreased $12,000, or 3.0%, to $390,000 for the three months ended September 30, 2023 from $402,000 for the three months ended September 30, 2022. Our gain on sales of mortgage loans decreased to zero for the three months ended September 30, 2023 from $24,000 for the three months ended September 30, 2022 due to our decision to retain loan originations.
Non-interest Expense. Non-interest expense decreased $76,000, or 2.6%, to $2.9 million for the three months ended September 30, 2023 compared to $3.0 million for the three months ended September 30, 2022. The decrease was primarily due to a decrease in advertising expense of $44,000, or 55.7%, to $35,000 for the three months ended September 30, 2023 compared to $79,000 for the three months ended September 30, 2022. There was also a decrease in salaries and employee benefits of $52,000, or 2.6%. This decrease was due to the fact that the month of September 2022 had three payrolls.
Income Tax Expense. We recognized income tax expense of $297,000 and $358,000 for the three months ended September 30, 2023 and 2022, respectively, resulting in effective rates of 21.6% and 27.9%, respectively.
Comparison of Operating Results for the Nine months ended September 30, 2023 and 2022
General. Net income was $3.1 million for the nine months ended September 30, 2023, compared to $3.2 million for the nine months ended September 30, 2022. We experienced an increase in non-interest expense mainly due to salaries and employee benefits.
Interest Income. Interest income increased $2.6 million, or 21.6%, to $14.5 million for the nine months ended September 30, 2023 from $11.9 million for the nine months ended September 30, 2022. The increase was due primarily to an increase in interest income on loans, which is our primary source of interest income. Interest income on loans increased $1.7 million, or 15.3%, to $12.8 million for the nine months ended September 30, 2023 from $11.1 million for the nine months ended September 30, 2022. Our average balance of loans increased $47.5 million, or 16.4%, to $337.4 million for the nine months ended September 30, 2023 from $289.9 million for the nine months ended September 30, 2022. The increase was primarily due to the growth in our one-to-four family and commercial real estate loans.
Interest Expense. Interest expense increased $2.2 million, or 303.8%, to $3.0 million for the nine months ended September 30, 2023 compared to $736,000 for the nine months ended September 30, 2022. These decreases are due to an increase in rates as well as additional borrowings in 2023.
Interest expense on deposits increased $1.2 million, or 180.7%, to $1.9 million for the nine months ended September 30, 2023 compared to $688,000 for the nine months ended September 30, 2022. The increase was due primarily to an increase in interest expense on certificates of deposit. Interest expense on certificates of deposit increased $872,000, or 184.4%, to $1.3 million for the nine months ended September 30, 2023 from $473,000 for the nine
46
months ended September 30, 2022. We experienced increases in both the average balance of certificates of deposit ($6.3 million, or 8.2%) for the nine months ended September 30, 2023 and 2022, and rates paid on certificates of deposit (134 basis points, to 2.16%) for the nine months ended September 30, 2023 and 2022.
Interest expense on borrowings increased $993,000, to $1.0 million for the nine months ended September 30, 2023 compared to $48,000 for the nine months ended September 30, 2022. The average balance of borrowings increased $29.9 million, to $32.0 million for the nine months ended September 30, 2023 compared to $2.2 million for the nine months ended September 30, 2022 due to our funding needs increasing.
Net Interest Income. Net interest income increased $329,000, or 2.9%, to $11.5 million for the nine months ended September 30, 2023 from $11.2 million for the nine months ended September 30, 2022. Our interest rate spread decreased 55 basis points to 3.58% for the nine months ended September 30, 2023, compared to 4.13% for the nine months ended September 30, 2022, while our net interest margin decreased 33 basis points to 3.91% for the nine months ended September 30, 2023 compared to 4.24% for the nine months ended September 30, 2022.
Provision for Credit Losses. Provisions for credit losses had a credit of $85,000 for the nine months ended September 30, 2023 compared to a provision for loan losses of $275,000 for the nine months ended September 30, 2022. In addition to the provision for credit losses, there was a provision of $132,000 was related to unfunded commitments. The credit to the provision for funded loans as due to refinements in the model to better incorporate customer debt service coverage ratios into probabilities of default. The increase in the provision for unfunded commitments was due to the change in mix of unfunded commitments and increase in expected loss rates on unfunded home equity lines. Our allowance for credit losses was $3.0 million at September 30, 2023 compared to the allowance for loan losses at $2.84 million at December 31, 2022 and $2.7 million at September 30, 2022. The ratio of our allowance for credit losses to total loans was 0.88% at September 30, 2023 compared to 0.85% at December 31, 2022 and 0.82% at September 30, 2022, while the allowance for credit losses to non-performing loans was 1,950.65% at September 30, 2023 compared to 850.6% at December 31, 2022. We had $2,000 of net recoveries for the nine months ended September 30, 2023 and $1,000 of net recoveries for the nine months ended September 30, 2022.
Non-interest Income. Non-interest income increased $28,000 or 2.2% from the nine months ended September 30, 2023 from for the nine months ended September 30, 2022. Service charges on deposit accounts increased $72,000 to $825,000 for the nine months ended September 30, 2023 from $753,000 for the nine months ended September 30, 2022 due to an increase in new accounts. These increases were offset by the gain on sale of mortgage loans decreasing by $71,000, or 82.6%, as we sold $3.3 million of mortgage loans during the nine months ended September 30, 2022 compared to $455,000 during the nine months ended September 30, 2023.
Non-interest Expense. Non-interest expense increased $753,000, or 9.5%, to $8.7 million for the nine months ended September 30, 2023 compared to $7.9 million for the nine months ended September 30, 2022. The increase was primarily due to customary raises, increased costs of employee benefits expense, and the implementation of the 2023 Equity Plan.
47
Income Tax Expense. We recognized income tax expense of $930,000 and $973,000 for the nine months ended September 30, 2023 and 2022, respectively, resulting in effective rates of 22.9% and 23.1%, respectively.
Liquidity and Capital Resources
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Atlanta. At September 30, 2023 and December 31, 2022, we had a $124.9 million and $121.3 million line of credit with the Federal Home Loan Bank of Atlanta, and had $35.0 million and $25.0 million outstanding as of those dates, respectively. In addition, at September 30, 2023, we had an unsecured federal funds line of credit of $10.0 million. No amount was outstanding on this line of credit at September 30, 2023.
While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments including interest-bearing demand deposits. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $5.4 million and $5.3 million for the nine months ended September 30, 2023 and 2022, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations and the purchase of investment securities and bank owned life insurance, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $8.5 million and $88.9 million for the nine months ended September 30, 2023 and 2022, respectively. Net cash (used for)/provided by financing activities, consisting primarily of activity in deposit accounts and proceeds from Federal Home Loan Bank borrowings, offset by repayment of Federal Home Loan Bank borrowings, was ($10.7) million and $50.4 million for the nine months ended September 30, 2023 and 2022, respectively.
We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.
At September 30, 2023, Cullman Savings Bank exceeded all of its regulatory capital requirements, and was categorized as well capitalized. Management is not aware of any conditions or events since the most recent notification that would change our category.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not applicable to smaller reporting companies.
48
Item 4. Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by the quarterly report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that we file or submit under the Securities and Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.
There has been no change in our internal control over financial reporting during the most recent fiscal quarter that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.
49
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
As of September 30, 2023, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.
Item 1A. Risk Factors.
Not applicable as Cullman Bancorp, Inc. is a small reporting company.
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.
Period |
|
Total Number of Shares Purchased |
|
|
Average Price Paid per Share |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs for the Year |
|
|
Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs (1) |
|
||||
July 1, 2023 through July 31, 2023 |
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
526,464 |
|
August 1, 2023 through August 31, 2023 |
|
|
46,095 |
|
|
|
11.00 |
|
|
|
46,095 |
|
|
|
480,369 |
|
September 1, 2023 through September 30, 2023 |
|
|
49,793 |
|
|
|
10.76 |
|
|
|
95,888 |
|
|
|
430,576 |
|
Total |
|
|
95,888 |
|
|
$ |
10.88 |
|
|
|
95,888 |
|
|
|
430,576 |
|
Item 3 – Defaults Upon Senior Securities
None
Item 4 – Mine Safety Disclosures
Not applicable
Item 5 – Other Information
None
50
Item 6 – Exhibits
Exhibit Number |
|
Description |
|
|
|
31.1 |
|
|
|
|
|
31.2 |
|
|
|
|
|
32 |
|
|
|
|
|
101 |
|
The following materials from Cullman Bancorp Inc.’s Form 10-Q report for the quarter ended September 30, 2023, formatted in Inline XBRL pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Net Income; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Changes in Shareholders’ Equity (v) Condensed Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements. |
|
|
|
101.INS |
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH |
|
Inline XBRL Taxonomy Extension Schema Document |
101.CAL |
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF |
|
Inline XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB |
|
Inline XBRL Taxonomy Extension Label Linkbase |
101.PRE |
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 |
|
Cover Page Interactive Data File (formatted as inline XBRL document and contained in Exhibit 101) |
51
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
CULLMAN BANCORP INC. |
|
(Registrant) |
|
|
|
|
Date: November 14, 2023 |
/s/ John A. Riley, III |
|
John A. Riley, III |
|
Chairman of the Board, President and Chief Executive Officer |
|
|
|
|
Date: November 14, 2023 |
/s/ Katrina I. Stephens |
|
Katrina I. Stephens |
|
Senior Vice President and |
52
Exhibit 31.1
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, John A. Riley, III, certify that:
1) I have reviewed this quarterly report on Form 10-Q of Cullman Bancorp, Inc.;
2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Dated: |
|
November 14, 2023 |
|
By: |
/s/ John A. Riley III |
|
|
|
|
|
John A. Riley, III |
|
|
|
|
|
Chairman of the Board, President and |
|
|
|
|
|
Chief Executive Officer |
Exhibit 31.2
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Katrina I. Stephens, certify that:
1) I have reviewed this quarterly report on Form 10-Q of Cullman Bancorp, Inc.;
2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Dated: |
|
November 14, 2023 |
|
By: |
/s/ Katrina. I. Stephens |
|
|
|
|
|
Katrina I. Stephens |
|
|
|
|
|
Senior Vice President and |
|
|
|
|
|
Chief Financial Officer |
Exhibit 32
Certification of Chief Executive Officer and Chief Financial Officer
Pursuant to Section 906 of the Sarbanes- Oxley Act of 2002
John A. Riley, III, Chairman of the Board, President and Chief Executive Officer of Cullman Bancorp, Inc., a Maryland corporation (the “Company”) and Katrina I. Stephens, Senior Vice President and Chief Financial Officer of the Company, each certify in his or her capacity as an officer of the Company that he or she has reviewed the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “Report”) and that to the best of his or her knowledge:
|
|||||
|
|
|
|
|
|
|
|
|
CULLMAN BANCORP, INC. |
|
|
|
|
|
|
|
|
Dated: |
November 14, 2023 |
|
By: |
/s/ John A. Riley, III |
|
|
|
|
|
John A. Riley, III |
|
|
|
|
|
Chairman of the Board, President and Chief Executive Officer |
|
|
|
|
|
|
|
Dated: |
November 14, 2023 |
|
|
/s/ Katrina I. Stephens |
|
|
|
|
|
Katrina I. Stephens |
|
|
|
|
|
Senior Vice President and |
|
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Loans and Leases Receivable, Allowance | $ 3,004 | $ 2,841 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Outstanding | 7,286,651 | 7,394,615 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,080 | $ 926 | $ 3,123 | $ 3,248 |
Other comprehensive income, net of tax | ||||
Unrealized loss on securities available for sale | (1,120) | (1,617) | (737) | (5,190) |
Less income tax effect | 281 | 340 | 371 | 1,090 |
Other comprehensive loss | (839) | (1,277) | (366) | (4,100) |
Comprehensive income (loss) | $ 241 | $ (351) | $ 2,757 | $ (852) |
Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation: The consolidated financial statements of Cullman Bancorp, Inc. (“the Bancorp”) include the accounts of its wholly owned subsidiary, Cullman Savings Bank (“the Bank”), together referred to as “the Company”. The Company provides financial services through its offices in Cullman County, Alabama. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers' ability to repay their loans is dependent on the real estate and general economic conditions in the area. Risk and Uncertainties: Ongoing economic challenges, including issues such as rising inflation and global supply chain disruption have impacted global financial markets. Additionally, the Company faces increased public and regulatory scrutiny resulting from the financial market crisis resulting from recent bank failures. Because of the significant uncertainties related to the economy and its potential effects on customers and prospects, there can be no assurances as to how the crisis may ultimately affect the Company. It is unknown how long the adverse conditions associated with the ongoing issues will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including expected credit losses on loans and off-balance sheet credit exposures.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) As an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), the Bank is permitted an extended transition period for complying with new or revised accounting standards affecting public companies. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.235 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering (December 31, 2026), (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the end of the fiscal year in which the market value of our equity securities that are held by non-affiliates exceeds $700 million as of June 30 of that year. We have elected to take advantage of this extended transition period, which means that the financial statements included herein, as well as any financial statements that we file in the future, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as we remain an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period under the JOBS Act. If we do so, we will prominently disclose this decision in the first periodic report following our decision, and such decision is irrevocable. As a filer under the JOBS Act, we will implement new accounting standards subject to the effective dates required for non-public entities.
ADOPTION OF NEW ACCOUNTING STANDARDS:
FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”
On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13 Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities. Management does not intend to sell or believes that it is more likely than not they will be required to sell.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Company adopted Accounting Standards Codification (ASC) 326 using the modified retrospective method for all financial assets measured at amortized cost, and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (GAAP). The Company recorded a net decrease to retained earnings of $284, an increase to deferred tax asset of $95, and an increase to the allowance for credit losses of $379 as of January 1, 2023 for the cumulative effect of adopting ASC 326.
The following table illustrates the impact of ASC 326.
(1) Off Balance Sheet
Allowance for Credit Losses- Available-For-Sale Securities: For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management 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 the adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exist, the present value of cash flows expected to be collected from the security are 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 that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectability of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Allowance for Credit Losses- Loans: The allowance for credit losses (ACL) is a valuation account that is deducted from (or added to) the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.
The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. The Company has identified the following portfolio segments: One-to-four family Multi-family Commercial real estate Construction Commercial Home equity loans and line of credit Consumer loans
The Company uses call code and loan level information in a probability of default/loss given default model. The model incorporates life-of-loan requirements and considers assumptions that effect the contractual life. There is one set of financial models for all interest rate risk, liquidity risk and credit risk modeling, in addition to loan origination and pricing process.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the unfunded commitments provision. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.
FASB ASU 2022-02 (Topic 326), “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures”
On January 1, 2023, the Company prospectively adopted ASU 2022-02 “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures” related to troubled debt restructurings and vintage disclosures for financing receivables. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivable by year or origination in the vintage disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. |
Securities Available for Sale |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-Sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Available for Sale | NOTE 2 – SECURITIES AVAILABLE FOR SALE Debt Securities The fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at September 30, 2023 and December 31, 2022 were as follows:
(1) Small Business Administration
The Company’s mortgage-backed securities are primarily issued by agencies such as Fannie Mae and Ginnie Mae.
NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued) The proceeds from calls of securities are listed below:
There were no sales or tax expense related to sales of securities in the nine months ended September 30, 2023 and 2022.
The amortized cost and fair value of the investment securities portfolio are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
Carrying amounts of securities pledged to secure public deposits as of September 30, 2023 and December 31, 2022 were $19,155 and $26,666, respectively. At September 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.
NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued) Securities with unrealized losses at September 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:
ACL on Securities: The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Quarterly, the Company evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis. The Company considers the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer. Additionally, the Company considers its intent to sell or whether it will be more likely than not it will be required to sell the security prior to the security’s anticipated recovery in fair value. If the Company determines that a credit loss exists, the credit portion of the allowance is measured using a discounted cash flow analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss will be limited to the amount by which the amortized cost exceeds the fair value. The analysis utilizes contractual maturities, as well as third-party credit ratings.
NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued) At September 30, 2023, the Company did not identify any securities that violate the credit loss triggers; therefore, no analysis was performed and no credit loss was recognized on any of the securities available-for-sale. Additionally, accrued interest receivable is excluded from the estimate of credit losses for securities available-for-sale and was reported in other assets on the accompanying consolidated balance sheet. All of the securities have unrealized losses at September 30, 2023. None of the unrealized losses for these securities have been recognized into net income for the period ended September 30, 2023 because the issuer's bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach their maturity date or reset date.
Equity Securities
There was one equity security with a readily determinable fair value amount of $479 as of December 31, 2022. We had redemptions of $0 and $497 for the three and nine months ended September 30, 2023. Net gains of $0 and $18 were recognized for the three and nine months ended September 30, 2023 respectively. |
Loans |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | NOTE 3 – LOANS Loans at September 30, 2023 and December 31, 2022 were as follows:
NOTE 3 – LOANS (Continued) The following tables present the activity in the allowance for loan losses for the periods ending September 30, 2023, and the allowance for loan losses for the period ending September 30, 2022. On January 1, 2023, the Company adopted ASC 326. Refer to Note 1 for further details. The recorded investment in loans in any of the following tables does not include accrued and unpaid interest or any deferred loan fees or costs, as amounts are not significant.
For collateral-dependent loans, the allowance for credit losses is individually assessed based on the fair value of the collateral less estimated costs of sale. The following table presents the amortized cost of collateral-dependent loans by class of loans as September 30, 2023.
NOTE 3 – LOANS (Continued)
The following table provides the amount of the allowance for credit losses by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality for the period ending December 31, 2022.
The following table provides the amount of loans by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality for the period ending December 31, 2022.
The following tables present loans individually evaluated for impairment by portfolio class at December 31, 2022 and the respective average balances of impaired loans and interest income recognized for the three and nine months ended September 30, 2022:
NOTE 3 – LOANS (Continued)
There were no loans individually evaluated for impairment with recorded allowance for the three and nine months ended September 30, 2023 and 2022. The difference between interest income recognized and cash basis interest income recognized was not material. The following tables present the aging of the recorded investment in past due loans at September 30, 2023 and December 31, 2022 by portfolio class of loans:
NOTE 3 – LOANS (Continued)
A loan past due 90 days or more need not automatically be placed in nonaccrual status if the loan is a consumer loan (loans to individuals for household, family and other personal expenditures) or the loan is secured by a one-to-four family residential property. Such loans should be subject to other alternative methods of evaluation to assure that the Bank's interest income is not materially overstated. The loans that were past due 90 days or more and were accruing interest as of September 30, 2023 due to the fact that they were well secured and in the process of collection. Not all nonaccrual loans, including loans over 89 past due and still accruing, have an individually evaluated ACL. The following tables present the recorded investment in nonaccrual loans by class of loans as of September 30, 2023 and December 31, 2022:
NOTE 3 – LOANS (Continued)
Loan Modifications to Borrowers Experiencing Financial Difficulty:
Occasionally, the Company may make certain modifications of loans to borrowers experiencing financial difficultly. These modifications may be in the form of an interest rate reduction, a term extension or a combination thereof.
Upon the Company's determination that a modified loan has subsequently been uncollectible, the portion of the loan deemed uncollectible is charged off against the allowance for credit losses on loans held for investment.
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of these modifications efforts. During the three and nine months ended September 30, 2023, the Company had no modified loans to borrowers experiencing financial difficulty.
Troubled Debt Restructurings (TDR): The following disclosure is presented in accordance with GAAP in effect prior to the adoption of ASU 2022-02. The Company has included this disclosure as of December 31, 2022 or for the three and nine months ended September 30, 2023. Prior to the Company's adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of loans that resulted in granting a concession to borrowers experiencing financial difficulties as a TDR. ASU 2022-02 eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Loans that were restructured in a TDR prior to the adoption of ASU 2022-002 will continue to be accounted for under the historical TDR accounting until the loan is paid off, liquidated or subsequently modified. See Note 1 for more information on the Company's adoption of ASU 2022-02.
NOTE 3 – LOANS (Continued) Loan restructurings as of December 31, 2022 were $2,878. The Company has committed no additional amounts at December 31, 2022 to customers with outstanding loans that are restructured. There were no loan restructurings for which there was a payment default within twelve months of the modification during the nine months ended September 30, 2023 or the year ended December 31, 2022. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. Credit Quality Indicators: The Company utilizes a grading system whereby all loans are assigned a grade based on the risk profile of each loan. Loan grades are determined based on an evaluation of relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. All loans, regardless of size, are analyzed and are given a grade based upon the management’s assessment of the ability of borrowers to service their debts. The analysis is performed on a quarterly basis. The Company uses the following definitions for loan grades: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
NOTE 3 – LOANS (Continued) Loans not meeting the criteria above are graded Pass. These loans are included within groups of homogeneous pools of loans based upon portfolio segment and class for estimation of the allowance for loan losses on a collective basis. At September 30, 2023 and December 31, 2022, based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
NOTE 3 – LOANS (Continued)
|
Premises and Equipment |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | NOTE 4- PREMISES AND EQUIPMENT Premises and equipment at September 30, 2023 and December 31, 2022 were as follows:
Depreciation expense for the three and nine months ended September 30, 2023 was $128 and $384, respectively. Depreciation expense for the three and nine months ended September 30, 2022 was $132 and $358 respectively. |
Deposits |
9 Months Ended | |||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||
Deposits | NOTE 5 – DEPOSITS Time deposits that meet or exceed the FDIC insurance limit of $250 at September 30, 2023 and December 31, 2022 were $33,800 and $32,614, respectively. Scheduled maturities of time deposits at September 30, 2023 for the next five years were as follows:
At September 30, 2023 and 2022, overdraft demand and savings deposits reclassified to loans totaled $40 and $69, respectively. |
Federal Home Loan Bank Advances and Other Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances and Other Debt | NOTE 6 – FEDERAL HOME LOAN BANK ADVANCES AND OTHER DEBT At September 30, 2023 and December 31, 2022, advances from the Federal Home Loan Bank were as follows:
During the nine months ended September 30, 2023, the Company restructured $15,000 of outstanding advances, recognizing a net gain of $127. The average rate of 4.26% was a blended rate at September 30, 2023. During the nine months ended September 30, 2022, the Company paid $18,500 of outstanding advances, recognizing a net gain of $87.
Each advance in the table above is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $82,490 and $83,008 of eligible first mortgage one-to-four family, multi-family, and commercial loans under a blanket lien arrangement at September 30, 2023 and December 31, 2022, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company is eligible to borrow additional funds of $89,909 at September 30, 2023. Payments over the next five years are as follows:
The Company had approximately $10,000 available in a line of credit for federal funds (or the equivalent thereof) with correspondent banks at September 30, 2023 and December 31, 2022. There were no amounts outstanding as of September 30, 2023 or December 31, 2022. |
Employee Stock Ownership Plan |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Compensation Related Costs [Abstract] | |
Employee Stock Ownership Plan | NOTE 7 - EMPLOYEE STOCK OWNERSHIP PLAN With the conversion to the stock holding company, 354,599 shares were sold to the Employee Stock Ownership Plan (ESOP). The ESOP borrowed from the Company to purchase the shares of the Company’s common stock at $10. The Company combined the preexisting loan with the current loan. The Company will make discretionary contributions to the ESOP, as well as paying dividends on unallocated shares to the ESOP, and the ESOP uses funds it receives to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation and expense is recorded. Dividends on allocated shares increase participant accounts. Participants receive the shares at the end of employment. A participant may require stock received to be repurchased unless the stock is traded on an established market. The ESOP compensation expense for the three months ended September 30, 2023 and 2022 was $63 and $105, respectively. The ESOP compensation expense for the nine months ended September 30, 2023 and 2022 was $214 and $225, respectively. At September 30, 2023, there were 295,938 shares not yet released, having an aggregate market value based of $3,107 based on close price of $10.50. |
Stock Based Compensation |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | NOTE 8 – STOCK BASED COMPENSATION In May 2020, the stockholders approved the Cullman Bancorp, Inc. 2020 Equity Incentive Plan (the “2020 Equity Incentive Plan”) for employees and directors of the Company. The Equity Incentive Plan authorizes the issuance of up to 200,000 shares of the Company’s common stock, with no more than 80,000 of shares as restricted stock awards and 120,000 as stock options, either incentive stock options or non-qualified stock options. The amounts have been subsequently converted at the exchange ratio of 2.8409-to-one for the mutual-to-stock conversion, rounding down for fractional shares. The exercise price of options granted under the 2020 Equity Incentive Plan may not be less than the fair market value on the date the stock option is granted. The Compensation Committee of the Board of Directors has sole discretion to determine the amount and to whom equity incentive awards are granted.
NOTE 8 – STOCK BASED COMPENSATION (Continued) In May 2023, the stockholders approved the Cullman Bancorp, Inc. 2023 Equity Incentive Plan (the "2023 Equity Incentive Plan") for employees and directors of the Company. The 2023 Equity Incentive Plan authorizes the issuance of up to 620,548 shares of the Company's common stock, with no more than 177,299 of shares as restricted stock awards and 443,249 as stock options, either incentive stock options or non-qualified stock options. The exercise price of the options granted under the 2023 Equity Incentive Plan may not be less than the fair market value on the date the stock options is granted. The Compensation Committee of the Board of Directors has sole discretion to determine the amount and to whom equity incentive awards are granted. As of September 30, 2023, there were no shares available for future grants under either plan. The following table summarizes stock option activity for the nine months ended September 30, 2023:
(1) Based on close price of $10.50 as of September 30, 2023. Intrinsic value for stock options is defined as the difference between the current market value and the exercise price multiplied by the number of in-the-money options.
There were 68,177 options that vested during the nine months ended September 30, 2023. Stock based compensation expense for stock options for the three and nine months ended September 30, 2023 and 2022 was $27 and $81, respectively in relation to the 340,903 options. Unrecognized compensation cost related to nonvested stock options at September 30, 2023 was $207 and is expected to be recognized over 1.83 years related to the 2020 Equity Plan.
NOTE 8 – STOCK BASED COMPENSATION (Continued) In relation to the 2023 Equity Incentive Plan, there were no options vested as of September 30, 2023. Stock based compensation expense for the stock options for the three and nine months ended September 30, 2023 were both $30. Unrecognized compensation cost related to nonvested stock options at September 30, 2023 was $564 and is expected to be recognized over 4.75 years. A summary of changes in the Company's nonvested shares for the nine months ended September 30, 2023 follows:
The following table summarizes the restricted stock fair value:
For the three and nine months ended September 30, 2023, stock-based compensation expense for restricted stock included in non-interest expense was $112 and $336, respectively. Unrecognized compensation expense for nonvested restricted stock awards was $859 as of September 30, 2023 and is expected to be recognized over 1.83 years related to the 2020 Equity Plan. For both the three and nine months ended September 30, 2023, stock-based compensation expense for restricted stock included in non-interest expense was $63. Unrecognized compensation expense for nonvested restricted stock awards was $1,834 as of September 30, 2023 and is expected to be recognized over 4.83 years related to the 2023 Equity Plan. |
Regulatory Capital Matters |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Matters | NOTE 9 - REGULATORY CAPITAL MATTERS Banks and their holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of September 30, 2023, the Bank meets all capital adequacy requirements to which they are subject. The Bancorp is not subject to regulatory capital requirements due to its size. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of September 30, 2023 and December 31, 2022, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The community bank leverage ratio framework (CBLR framework), provides qualifying community banking organizations an optional, simplified measure to determine capital adequacy. The Bank made the election to be subject to the CBLR framework as of December 31, 2020. The community bank leverage ratio removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying banking organizations that elect to use the community bank leverage rate framework and that maintain a leverage ratio of greater than required minimums will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) and, if applicable, will be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. The community bank leverage ratio minimum requirement is currently 9.00%.
NOTE 9 - REGULATORY CAPITAL MATTERS (Continued) An eligible banking organization can opt out of the CBLR framework and revert back to the risk-weighting framework without restriction. As of September 30, 2023 the Bank was a qualifying community banking organization as defined by the federal banking agencies and elected to measure capital adequacy under the CBLR framework. Actual and required capital amounts for the Bank and ratios at September 30, 2023 and December 31, 2022 are presented below:
The Qualified Thrift Lender test requires at least 65% of assets be maintained in housing-related finance and other specified areas. If this test is not met, limits are placed on growth, branching, new investments, FHLB advances and dividends, or the Bank must convert to a commercial bank charter. Management believes this test is met. However, during 2022, the Bank was approved to make and made the election for Covered Savings Association (CSA) status. This election provides the Bank with the same rights and privileges as a national bank but the Bank retains its federal savings association charter. Dividend Restrictions - The Company’s principal source of funds for dividend payments is dividends received from the Bank as well as proceeds retained from the mutual-to-stock conversion. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. During 2023, the Bank could, without prior approval from its regulators, declare dividends of approximately $7,257 plus any 2023 net profits retained to the date of the dividend declaration. |
Fair Values of Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability; or generated from model-based techniques that use at least one significant assumption not observable in the market. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
The Company used the following methods and significant assumptions to estimate fair value: Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Equity securities are carried at fair value, with changes in fair value reported in net income. This investment is considered an equity security with readily determinable fair value not held for trading (Level 3).
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The Company’s taxable municipal investment securities’ fair values are determined based on a discounted cash flow analysis prepared by an independent third party. Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Foreclosed Real Estate: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. For appraisals where the value is $100 or above for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Loan Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. In accordance to company policy, if the Company holds the property for over two years, an updated appraisal or validation would be obtained in order to determine if the fair value amount should be adjusted.
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below:
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2023:
There were no transfers between levels during the nine months ended September 30, 2023 and 2022.
Our state and municipal securities valuations are supported by analysis prepared by an independent third party. Their approach to determining fair value involves using recently executed transactions for similar securities and market quotations for similar securities. As these securities are not rated by the rating agencies and trading volumes are thin, it was determined that these were valued using Level 3 inputs. The significant unobservable inputs used in the fair value measurement of the Company's taxable municipal securities are discount rates and credit spreads that the market would require for taxable municipal securities with similar maturities and risk characteristics. Significant increases/(decreases) in any of those inputs in isolation would result in a significantly lower/(higher) fair value measurement.
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) Assets and Liabilities Measured on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2023 and December 31, 2022 (amounts in thousands):
The Company has estimated the fair values of these assets using Level 3 inputs, specifically the appraised value of the collateral. Impaired loan balances represent those collateral dependent impaired loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the impaired loan for the amount of the credit loss. The Company had no Level 3 assets measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022. For Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2023 and December 31, 2022, appraisals were used for the valuation technique. For the significant unobservable input, the appraisal discounts and the weighted average input of 15% to 20% were used. This is for the period ended September 30, 2023 and December 31, 2022.
NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) The carrying amounts and estimated fair values of the Company’s on-balance sheet financial instruments at September 30, 2023 and December 31, 2022 are summarized below:
|
Earnings Per Common Share |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | NOTE 11 – EARNINGS PER COMMON SHARE The factors used in the earnings per common share computation follow:
Stock options for shares of common stock of 443,249 and 340,903 were not considered in computing diluted earnings per share for 2023 and 2022, respectively because they were antidilutive. |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation: The consolidated financial statements of Cullman Bancorp, Inc. (“the Bancorp”) include the accounts of its wholly owned subsidiary, Cullman Savings Bank (“the Bank”), together referred to as “the Company”. The Company provides financial services through its offices in Cullman County, Alabama. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers' ability to repay their loans is dependent on the real estate and general economic conditions in the area. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk and Uncertainties | Risk and Uncertainties: Ongoing economic challenges, including issues such as rising inflation and global supply chain disruption have impacted global financial markets. Additionally, the Company faces increased public and regulatory scrutiny resulting from the financial market crisis resulting from recent bank failures. Because of the significant uncertainties related to the economy and its potential effects on customers and prospects, there can be no assurances as to how the crisis may ultimately affect the Company. It is unknown how long the adverse conditions associated with the ongoing issues will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including expected credit losses on loans and off-balance sheet credit exposures.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) As an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), the Bank is permitted an extended transition period for complying with new or revised accounting standards affecting public companies. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.235 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering (December 31, 2026), (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the end of the fiscal year in which the market value of our equity securities that are held by non-affiliates exceeds $700 million as of June 30 of that year. We have elected to take advantage of this extended transition period, which means that the financial statements included herein, as well as any financial statements that we file in the future, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as we remain an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period under the JOBS Act. If we do so, we will prominently disclose this decision in the first periodic report following our decision, and such decision is irrevocable. As a filer under the JOBS Act, we will implement new accounting standards subject to the effective dates required for non-public entities. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements and Accounting Changes | ADOPTION OF NEW ACCOUNTING STANDARDS:
FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”
On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13 Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities. Management does not intend to sell or believes that it is more likely than not they will be required to sell.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Company adopted Accounting Standards Codification (ASC) 326 using the modified retrospective method for all financial assets measured at amortized cost, and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (GAAP). The Company recorded a net decrease to retained earnings of $284, an increase to deferred tax asset of $95, and an increase to the allowance for credit losses of $379 as of January 1, 2023 for the cumulative effect of adopting ASC 326.
The following table illustrates the impact of ASC 326.
(1) Off Balance Sheet |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses- Available-For-Sale Securities | Allowance for Credit Losses- Available-For-Sale Securities: For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management 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 the adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exist, the present value of cash flows expected to be collected from the security are 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 that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectability of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses- Loans | Allowance for Credit Losses- Loans: The allowance for credit losses (ACL) is a valuation account that is deducted from (or added to) the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.
The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. The Company has identified the following portfolio segments: One-to-four family Multi-family Commercial real estate Construction Commercial Home equity loans and line of credit Consumer loans
The Company uses call code and loan level information in a probability of default/loss given default model. The model incorporates life-of-loan requirements and considers assumptions that effect the contractual life. There is one set of financial models for all interest rate risk, liquidity risk and credit risk modeling, in addition to loan origination and pricing process.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the unfunded commitments provision. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.
FASB ASU 2022-02 (Topic 326), “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures”
On January 1, 2023, the Company prospectively adopted ASU 2022-02 “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures” related to troubled debt restructurings and vintage disclosures for financing receivables. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivable by year or origination in the vintage disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. |
Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cumulative Effect of Adopting ASC 326 | The following table illustrates the impact of ASC 326.
(1) Off Balance Sheet |
Securities Available for Sale (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-Sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Available for Sale Securities and Related Gross Unrealized Gains and Losses | The fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at September 30, 2023 and December 31, 2022 were as follows:
(1) Small Business Administration |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Proceeds from Sales and Calls of Securities and Associated Gains and Losses | The proceeds from calls of securities are listed below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Investment Securities Portfolio by Expected Maturities | The amortized cost and fair value of the investment securities portfolio are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unrealized Loss on Securities | ecurities with unrealized losses at September 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:
|
Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Major Classifications of Loans | Loans at September 30, 2023 and December 31, 2022 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded investment in loans based on impairment method | The following table presents the amortized cost of collateral-dependent loans by class of loans as September 30, 2023.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses and recorded investment not include accrued and unpaid interest or any deferred loan fees or costs | The following tables present the activity in the allowance for loan losses for the periods ending September 30, 2023, and the allowance for loan losses for the period ending September 30, 2022. On January 1, 2023, the Company adopted ASC 326. Refer to Note 1 for further details. The recorded investment in loans in any of the following tables does not include accrued and unpaid interest or any deferred loan fees or costs, as amounts are not significant.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method | The following table provides the amount of the allowance for credit losses by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality for the period ending December 31, 2022.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans By Class Of Financing Receivable For Loans Individually Evaluated For Impairment Text Block | The following table provides the amount of loans by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality for the period ending December 31, 2022.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment by portfolio class | The following tables present loans individually evaluated for impairment by portfolio class at December 31, 2022 and the respective average balances of impaired loans and interest income recognized for the three and nine months ended September 30, 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Analysis of Past due Loans | The following tables present the aging of the recorded investment in past due loans at September 30, 2023 and December 31, 2022 by portfolio class of loans:
NOTE 3 – LOANS (Continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Information Regarding Non-accrual Loans | The following tables present the recorded investment in nonaccrual loans by class of loans as of September 30, 2023 and December 31, 2022:
NOTE 3 – LOANS (Continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Internal Risk Ratings of Loans | At September 30, 2023 and December 31, 2022, based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
NOTE 3 – LOANS (Continued)
|
Premises and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Premises and Equipment | Premises and equipment at September 30, 2023 and December 31, 2022 were as follows:
|
Deposits (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits at September 30, 2023 for the next five years were as follows:
|
Federal Home Loan Bank Advances and Other Debt (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Summary of Advances from Federal Home Loan Bank | At September 30, 2023 and December 31, 2022, advances from the Federal Home Loan Bank were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||
Summary of Payments Over Next Five Years | Payments over the next five years are as follows:
|
Stock Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | The following table summarizes stock option activity for the nine months ended September 30, 2023:
(1) Based on close price of $10.50 as of September 30, 2023. Intrinsic value for stock options is defined as the difference between the current market value and the exercise price multiplied by the number of in-the-money options. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Nonvested Shares | A summary of changes in the Company's nonvested shares for the nine months ended September 30, 2023 follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Fair Value | The following table summarizes the restricted stock fair value:
|
Regulatory Capital Matters (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Actual and Required Capital Amounts for the Bank and Ratios | Actual and required capital amounts for the Bank and ratios at September 30, 2023 and December 31, 2022 are presented below:
|
Fair Values of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Unobservable Inputs | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Non Recurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2023 and December 31, 2022 (amounts in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of the Company’s on-balance sheet financial instruments at September 30, 2023 and December 31, 2022 are summarized below:
|
Earnings Per Common Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Earnings Per Common Share | The factors used in the earnings per common share computation follow:
|
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | |
---|---|---|
Jan. 01, 2023 |
Sep. 30, 2023 |
|
Decrease in Retained Earnings | $ 284 | |
Allowance for Loan and Lease Losses Period Increase Decrease | 379 | |
Valuation Allowance Deferred Tax Asset Change in Amount | $ 95 | |
Minimum [Member] | ||
Annual gross revenue to cease emerging growth company status | $ 1,235,000 | |
Non-convertible debt issued during three years period to cease emerging growth company status | 1,000,000 | |
Market value of equity securties issued to non-affiliates to cease emerging growth company status | $ 700,000 | |
Conversion and Reorganization Plan [Member] | 2009 ESOP [Member] | ||
Sale of stock, price per share | $ 10 |
Securities Available for Sale - Summary of Fair Value of Available for Sale Securities and Related Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
[1] | ||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Amortized cost | $ 32,565 | $ 34,299 | |||||
Gross Unrealized Gains | 0 | 14 | |||||
Gross Unrealized Losses | (5,240) | (4,517) | |||||
Estimated fair value | 27,325 | 29,796 | |||||
US Government Sponsored Entities and Agencies | |||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Amortized cost | 5,989 | 5,987 | |||||
Gross Unrealized Gains | 0 | 0 | |||||
Gross Unrealized Losses | (900) | (734) | |||||
Estimated fair value | 5,089 | 5,253 | |||||
Municipal- Taxable | |||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Amortized cost | 14,315 | 14,421 | |||||
Gross Unrealized Gains | 0 | 14 | |||||
Gross Unrealized Losses | (3,286) | (2,924) | |||||
Estimated fair value | 11,029 | 11,511 | |||||
Municipal- Tax Exempt | |||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Amortized cost | 945 | 1,365 | |||||
Gross Unrealized Gains | 0 | 0 | |||||
Gross Unrealized Losses | (83) | (50) | |||||
Estimated fair value | 862 | 1,315 | |||||
Residential mortgage-backed | |||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Amortized cost | 9,854 | 10,871 | |||||
Gross Unrealized Gains | 0 | 0 | |||||
Gross Unrealized Losses | (906) | (729) | |||||
Estimated fair value | 8,948 | 10,142 | |||||
Commercial MBS | |||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Amortized cost | 990 | 983 | |||||
Gross Unrealized Gains | 0 | 0 | |||||
Gross Unrealized Losses | (24) | (23) | |||||
Estimated fair value | 966 | 960 | |||||
SBA Guaranteed Debenture | |||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Amortized cost | 472 | [1] | 672 | ||||
Gross Unrealized Gains | 0 | [1] | 0 | ||||
Gross Unrealized Losses | $ (41) | [1] | (57) | ||||
Estimated fair value | $ 615 | $ 431 | |||||
|
Securities Available for Sale - Summary of Proceeds from Sales and Calls of Securities and Associated Gains and Losses (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Debt Securities, Available-for-Sale [Abstract] | ||
Proceeds | $ 75 | $ 90 |
Gross gains | 0 | 0 |
Gross losses | $ 0 | $ 0 |
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Investment Securities Portfolio by Expected Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule Of Available For Sale Securities [Line Items] | ||
Due within one year | $ 250 | |
Due after one to five years | 3,916 | |
Due after five to ten years | 4,074 | |
Due after ten years | 13,009 | |
Total amortized cost | 32,565 | $ 34,299 |
Due within one year, estimated fair value | 248 | |
Due after one to five years, estimated fair value | 3,802 | |
Due after five to ten years, estimated fair value | 3,412 | |
Due after ten years, estimated fair value | 9,518 | |
Total estimated fair value | 27,325 | $ 29,796 |
Residential Mortgage Backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | 9,854 | |
Debt securities, available-for-sale, maturity, allocated and single maturity date, estimated fair value | 8,948 | |
Commercial mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | 990 | |
Debt securities, available-for-sale, maturity, allocated and single maturity date, estimated fair value | 966 | |
SBA Guaranteed Debenture | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | 472 | |
Debt securities, available-for-sale, maturity, allocated and single maturity date, estimated fair value | $ 431 |
Securities Available for Sale - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023
USD ($)
Security
shares
|
Sep. 30, 2023
USD ($)
Security
shares
|
Sep. 30, 2022
shares
|
Dec. 31, 2022
USD ($)
Security
|
|
Schedule Of Available For Sale Securities [Line Items] | ||||
Carrying amounts of securities pledged to secure public deposits | $ 19,155 | $ 19,155 | $ 26,666 | |
Number of security holdings greater than 10% percent of equity | Security | 0 | 0 | 0 | |
Calls of securities | shares | 0 | 0 | ||
Equity Securities [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Number of securities held and carried at fair value | shares | 1 | 1 | ||
Fair value carried amount | $ 479 | |||
Equity Redemption | $ 0 | $ 497 | ||
Equity securities net gains | $ 0 | $ 18 |
Securities Available for Sale - Summary of Unrealized Loss on Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
US Government Sponsored Entities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair value | $ 2,978 | |
Less than 12 months, Unrealized loss | (9) | |
12 months or more, Fair value | 5,089 | 2,275 |
12 months or more, Unrealized loss | (900) | |
Total fair value | 5,089 | 5,253 |
Total unrealized loss | (900) | (734) |
Municipal- Taxable | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair value | 681 | 4,404 |
Less than 12 months, Unrealized loss | (15) | (815) |
12 months or more, Fair value | 10,348 | 6,318 |
12 months or more, Unrealized loss | (3,271) | (2,109) |
Total fair value | 11,029 | 10,722 |
Total unrealized loss | (3,286) | (2,924) |
Municipal- Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair value | 248 | 1,065 |
Less than 12 months, Unrealized loss | (2) | (50) |
12 months or more, Fair value | 614 | 0 |
12 months or more, Unrealized loss | (81) | 0 |
Total fair value | 862 | 1,065 |
Total unrealized loss | (83) | (50) |
Residential mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair value | 9,789 | |
Less than 12 months, Unrealized loss | (661) | |
12 months or more, Fair value | 8,948 | 353 |
12 months or more, Unrealized loss | (906) | (68) |
Total fair value | 8,948 | 10,142 |
Total unrealized loss | (906) | (729) |
Commercial mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair value | 960 | |
Less than 12 months, Unrealized loss | (23) | |
12 months or more, Fair value | 966 | 0 |
12 months or more, Unrealized loss | (24) | 0 |
Total fair value | 966 | 960 |
Total unrealized loss | (24) | (23) |
SBA Guaranteed Debenture | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair value | 0 | |
Less than 12 months, Unrealized loss | 0 | |
12 months or more, Fair value | 431 | 615 |
12 months or more, Unrealized loss | (41) | (57) |
Total fair value | 431 | 615 |
Total unrealized loss | (41) | (57) |
Total Temporarily Impaired | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair value | 929 | 19,196 |
Less than 12 months, Unrealized loss | (17) | (1,558) |
12 months or more, Fair value | 26,396 | 9,561 |
12 months or more, Unrealized loss | (5,223) | (2,959) |
Total fair value | 27,325 | 28,757 |
Total unrealized loss | $ (5,240) | $ (4,517) |
Loans - Summary of Major Classification of Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 341,124 | $ 332,794 |
Net deferred loans fees | (9) | (10) |
Allowance for loan losses | (3,004) | (2,841) |
Loans, net | 338,111 | 329,943 |
Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 303,625 | 290,280 |
Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 178,970 | 172,157 |
Real estate loans [Member] | Multi-Family | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 3,512 | 3,668 |
Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 100,247 | 95,989 |
Real estate loans [Member] | Construction [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 20,896 | 18,466 |
Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 27,264 | 32,156 |
Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 10,235 | 10,358 |
Consumer Loans [Member] | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 6,372 | 6,656 |
Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 3,863 | $ 3,702 |
Loans - Allowance for loan losses and recorded investment not include accrued and unpaid interest or any deferred loan fees or costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | $ 3,112 | $ 2,562 | $ 2,841 | $ 2,406 | |
Impact of adopting | 246 | ||||
Charge offs | (11) | (5) | |||
Recoveries | 13 | 6 | |||
Provisions | (108) | 120 | (85) | 275 | |
Ending balance | 3,004 | 2,682 | 3,004 | 2,682 | |
Individually evaluated for impairment | $ 0 | ||||
Collectively evaluated for impairment | 2,841 | ||||
Loans individually evaluated for impairment | 2,472 | ||||
Loans collectively evaluated for impairment | 330,322 | ||||
Total ending loans balance | 332,794 | ||||
Commercial Loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 143 | 211 | 204 | 145 | |
Impact of adopting | (75) | ||||
Provisions | 1 | 3 | 15 | 69 | |
Ending balance | 144 | 214 | 144 | 214 | |
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 204 | ||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 32,156 | ||||
Total ending loans balance | 32,156 | ||||
Consumer Loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 272 | 99 | 111 | 66 | |
Impact of adopting | 94 | ||||
Charge offs | (11) | ||||
Provisions | (3) | (1) | 75 | 32 | |
Ending balance | 269 | 98 | 269 | 98 | |
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 111 | ||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 10,358 | ||||
Total ending loans balance | 10,358 | ||||
One To Four Family [Member] | Real estate loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 1,854 | 1,504 | 1,710 | 1,355 | |
Impact of adopting | 117 | ||||
Recoveries | 6 | ||||
Provisions | 12 | 43 | 39 | 186 | |
Ending balance | 1,866 | 1,547 | 1,866 | 1,547 | |
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 1,710 | ||||
Loans individually evaluated for impairment | 9 | ||||
Loans collectively evaluated for impairment | 172,148 | ||||
Total ending loans balance | 172,157 | ||||
Multi-Family | Real estate loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 17 | 14 | 17 | 19 | |
Impact of adopting | 1 | ||||
Provisions | (8) | 3 | (9) | (2) | |
Ending balance | 9 | 17 | 9 | 17 | |
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 17 | ||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 3,668 | ||||
Total ending loans balance | 3,668 | ||||
Commercial | Real estate loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 713 | 592 | 654 | 712 | |
Impact of adopting | 130 | ||||
Provisions | (122) | 20 | (193) | (100) | |
Ending balance | 591 | 612 | 591 | 612 | |
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 654 | ||||
Loans individually evaluated for impairment | 2,463 | ||||
Loans collectively evaluated for impairment | 93,526 | ||||
Total ending loans balance | 95,989 | ||||
Construction [Member] | Real estate loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 113 | 142 | 145 | 109 | |
Impact of adopting | (21) | ||||
Charge offs | (5) | ||||
Recoveries | 13 | ||||
Provisions | 12 | (52) | 12 | 90 | |
Ending balance | $ 125 | $ 194 | $ 125 | $ 194 | |
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 145 | ||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 18,466 | ||||
Total ending loans balance | $ 18,466 |
Loans - Summary of Information Regarding Non-accrual Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with No ACL | $ 6 | $ 82 |
Total Nonaccrual | 6 | 82 |
Loans Past Due 90 Days or More Still Accruing | 148 | 211 |
Collateralized Loan Obligations [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual | 4,649 | |
Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with No ACL | 6 | 9 |
Total Nonaccrual | 6 | 9 |
Loans Past Due 90 Days or More Still Accruing | 148 | 211 |
Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with No ACL | 6 | 9 |
Total Nonaccrual | 6 | 9 |
Loans Past Due 90 Days or More Still Accruing | 148 | 211 |
Real estate loans [Member] | One To Four Family [Member] | Collateralized Loan Obligations [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual | 481 | |
Real estate loans [Member] | Multi-Family | Collateralized Loan Obligations [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual | 0 | |
Real estate loans [Member] | Commercial Loan [Member] | Collateralized Loan Obligations [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual | 4,168 | |
Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with No ACL | 73 | |
Total Nonaccrual | $ 73 | |
Commercial Loans [Member] | Collateralized Loan Obligations [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual | 0 | |
Consumer Loans [Member] | Collateralized Loan Obligations [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual | $ 0 |
Loans - Loans individually evaluated for impairment by portfolio class (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Financing Receivable Impaired [Line Items] | |||
Unpaid principal balance | $ 2,508 | ||
Recorded Investment | 2,472 | ||
Related Allowance | 0 | ||
Average Recorded Investment | $ 3,360 | $ 3,488 | |
Interest Income Recognized | 44 | 87 | |
Real estate loans [Member] | One To Four Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid principal balance | 45 | ||
Recorded Investment | 9 | ||
Related Allowance | 0 | ||
Average Recorded Investment | 297 | 298 | |
Interest Income Recognized | 4 | 6 | |
Real estate loans [Member] | Multi-Family | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid principal balance | 0 | ||
Recorded Investment | 0 | ||
Related Allowance | 0 | ||
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Real estate loans [Member] | Commercial | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid principal balance | 2,463 | ||
Recorded Investment | 2,463 | ||
Related Allowance | 0 | ||
Average Recorded Investment | 3,011 | 3,096 | |
Interest Income Recognized | 38 | 77 | |
Commercial Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid principal balance | 0 | ||
Recorded Investment | 0 | ||
Related Allowance | 0 | ||
Average Recorded Investment | 52 | 94 | |
Interest Income Recognized | 2 | 4 | |
Consumer Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid principal balance | 0 | ||
Recorded Investment | 0 | ||
Related Allowance | $ 0 | ||
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | $ 0 | $ 0 |
Loans - Schedule of Analysis of Past due Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | $ 341,124 | $ 332,794 |
Financing Receivable, before Allowance for Credit Loss | 341,124 | |
One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 178,970 | |
Multi-Family | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,512 | |
Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 27,264 | |
Construction [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 20,896 | |
Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 6,372 | |
Other Consumer [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,863 | |
Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 303,625 | 290,280 |
Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 178,970 | 172,157 |
Real estate loans [Member] | Multi-Family | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 3,512 | 3,668 |
Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 100,247 | 95,989 |
Real estate loans [Member] | Construction [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 20,896 | 18,466 |
Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 27,264 | 32,156 |
Consumer Loans [Member] | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 6,372 | 6,656 |
Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 3,863 | 3,702 |
30-59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 795 | 2,373 |
30-59 Days Past Due [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 678 | 2,315 |
30-59 Days Past Due [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 2,315 | |
30-59 Days Past Due [Member] | Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 678 | |
30-59 Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 87 | 48 |
30-59 Days Past Due [Member] | Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 30 | 10 |
60-89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 475 | 1,291 |
60-89 Days Past Due [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 472 | 1,251 |
60-89 Days Past Due [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 472 | 1,251 |
60-89 Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 40 | |
60-89 Days Past Due [Member] | Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 3 | |
90 Days or More Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 148 | 252 |
90 Days or More Past Due [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 148 | 211 |
90 Days or More Past Due [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 148 | 211 |
90 Days or More Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 41 | |
Financing Receivable Total Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 1,418 | 3,916 |
Financing Receivable Total Past Due [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 1,298 | 3,777 |
Financing Receivable Total Past Due [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 620 | 3,777 |
Financing Receivable Total Past Due [Member] | Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 678 | |
Financing Receivable Total Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 87 | 129 |
Financing Receivable Total Past Due [Member] | Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 33 | 10 |
Financing Receivable Current [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 339,706 | 328,878 |
Financing Receivable Current [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 302,327 | 286,503 |
Financing Receivable Current [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 178,350 | 168,380 |
Financing Receivable Current [Member] | Real estate loans [Member] | Multi-Family | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 3,512 | 3,668 |
Financing Receivable Current [Member] | Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 99,569 | 95,989 |
Financing Receivable Current [Member] | Real estate loans [Member] | Construction [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 20,896 | 18,466 |
Financing Receivable Current [Member] | Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 27,177 | 32,027 |
Financing Receivable Current [Member] | Consumer Loans [Member] | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | 6,372 | 6,656 |
Financing Receivable Current [Member] | Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Financing Receivable Recorded Investment in Past Due | $ 3,830 | $ 3,692 |
Loans - Additional Information (Detail) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
Loan
|
|
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled debt restructurings | $ 2,878 | |
Troubled debt restructurings additional amount | $ 0 | |
Number of troubled debt restructured loans | Loan | 0 | |
Loan modification description | A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. | |
Loans and leases receivable net reported amount | $ 338,111 | $ 329,943 |
Total loans | $ 341,124 | $ 332,794 |
Loans - Summary of Internal Risk Ratings of Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 332,794 | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 341,124 | |
One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 178,970 | |
Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,512 | |
Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 27,264 | |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 100,247 | |
Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 20,896 | |
Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 6,372 | |
Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,863 | |
2023 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 47,110 | |
2023 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 22,711 | |
2023 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,444 | |
2023 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,996 | |
2023 | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 5,971 | |
2023 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,988 | |
2022 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 121,425 | |
2022 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 61,224 | |
2022 | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 756 | |
2022 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 7,790 | |
2022 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 36,855 | |
2022 | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 13,606 | |
2022 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,194 | |
2021 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 47,142 | |
2021 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 30,919 | |
2021 | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 910 | |
2021 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,060 | |
2021 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,471 | |
2021 | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,319 | |
2021 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 463 | |
2020 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 31,562 | |
2020 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 17,764 | |
2020 | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,294 | |
2020 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 714 | |
2020 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,605 | |
2020 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 185 | |
2019 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,235 | |
2019 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 6,675 | |
2019 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 64 | |
2019 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,496 | |
Prior | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 65,062 | |
Prior | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 39,677 | |
Prior | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 552 | |
Prior | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,335 | |
Prior | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 20,465 | |
Prior | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 33 | |
Revolving Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 17,588 | |
Revolving Loans | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 7,857 | |
Revolving Loans | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,359 | |
Revolving Loans | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 6,372 | |
Real estate loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 290,280 | |
Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 172,157 | |
Real estate loans [Member] | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,668 | |
Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 95,989 | |
Real estate loans [Member] | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 18,466 | |
Commercial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 32,156 | |
Consumer Loans [Member] | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 6,656 | |
Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,702 | |
Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 326,753 | |
Pass [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 178,584 | |
Pass [Member] | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,512 | |
Pass [Member] | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 27,264 | |
Pass [Member] | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 96,079 | |
Pass [Member] | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 20,896 | |
Pass [Member] | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 6,372 | |
Pass [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,863 | |
Pass [Member] | 2023 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 22,711 | |
Pass [Member] | 2023 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,444 | |
Pass [Member] | 2023 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,996 | |
Pass [Member] | 2023 | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 5,971 | |
Pass [Member] | 2023 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,988 | |
Pass [Member] | 2022 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 61,224 | |
Pass [Member] | 2022 | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 756 | |
Pass [Member] | 2022 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 7,790 | |
Pass [Member] | 2022 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 35,150 | |
Pass [Member] | 2022 | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 13,606 | |
Pass [Member] | 2022 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,194 | |
Pass [Member] | 2021 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 30,919 | |
Pass [Member] | 2021 | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 910 | |
Pass [Member] | 2021 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,060 | |
Pass [Member] | 2021 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,471 | |
Pass [Member] | 2021 | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,319 | |
Pass [Member] | 2021 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 463 | |
Pass [Member] | 2020 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 17,764 | |
Pass [Member] | 2020 | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,294 | |
Pass [Member] | 2020 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 714 | |
Pass [Member] | 2020 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,605 | |
Pass [Member] | 2020 | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 185 | |
Pass [Member] | 2019 | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 6,675 | |
Pass [Member] | 2019 | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 64 | |
Pass [Member] | 2019 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,033 | |
Pass [Member] | Prior | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 39,291 | |
Pass [Member] | Prior | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 552 | |
Pass [Member] | Prior | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,335 | |
Pass [Member] | Prior | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 20,465 | |
Pass [Member] | Prior | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 33 | |
Pass [Member] | Revolving Loans | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 7,857 | |
Pass [Member] | Revolving Loans | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,359 | |
Pass [Member] | Revolving Loans | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 6,372 | |
Pass [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 284,280 | |
Pass [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 170,397 | |
Pass [Member] | Real estate loans [Member] | Multi-Family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,668 | |
Pass [Member] | Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 91,749 | |
Pass [Member] | Real estate loans [Member] | Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 18,466 | |
Pass [Member] | Commercial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 32,115 | |
Pass [Member] | Consumer Loans [Member] | Home Equity Loans And Lines Of Credit [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 6,656 | |
Pass [Member] | Consumer Loans [Member] | Other Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,702 | |
Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,203 | |
Special Mention [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 386 | |
Special Mention [Member] | Prior | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 386 | |
Special Mention [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,203 | |
Special Mention [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,452 | |
Special Mention [Member] | Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,751 | |
Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,838 | |
Substandard [Member] | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,168 | |
Substandard [Member] | 2022 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,705 | |
Substandard [Member] | 2019 | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Total | $ 2,463 | |
Substandard [Member] | Real estate loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,797 | |
Substandard [Member] | Real estate loans [Member] | One To Four Family [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 308 | |
Substandard [Member] | Real estate loans [Member] | Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,489 | |
Substandard [Member] | Commercial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 41 |
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Land | $ 1,924 | $ 1,924 |
Buildings and improvements | 17,178 | 15,668 |
Furniture, fixtures and equipment | 2,555 | 2,623 |
Premises and equipment, gross | 21,657 | 20,215 |
Less: Accumulated depreciation | (9,659) | (9,364) |
Premises and equipment, net | $ 11,998 | $ 10,851 |
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 128 | $ 132 | $ 384 | $ 358 |
Deposits - Additional Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|---|
Deposits [Abstract] | |||
FDIC insurance limit | $ 250 | ||
Time deposits that meet or exceed the FDIC Insurance limit | 33,800 | $ 32,614 | |
Demand account reclassification to loans | $ 40 | $ 69 |
Deposits - Scheduled Maturities of Time Deposits (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Deposits [Abstract] | |
2023 | $ 16,904 |
2024 | 49,807 |
2025 | 15,548 |
2026 | 2,293 |
2027 | 1,441 |
Thereafter | $ 613 |
Federal Home Loan Bank Advances and Other Debt - Summary of Advances from the Federal Home Loan Bank (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank advances | $ 35,000 | $ 25,000 |
Maturities October 2025 through March 2028, fixed rate at rates from 4.12% to 4.61%, averaging 4.26% [Member] | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank advances | 35,000 | 0 |
Maturities September 2024 through October 2027, fixed rate at rates from 4.23% to 4.61%, averaging 4.26% [Member] | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank advances | $ 0 | $ 25,000 |
Federal Home Loan Bank Advances and Other Debt - Summary of Advances from the Federal Home Loan Bank (Parenthetical) (Details) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Maturities October 2025 through March 2028, fixed rate at rates from 4.12% to 4.61%, averaging 4.26% [Member] | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB average interest rate | 4.26% | 4.26% |
Maturities October 2025 through March 2028, fixed rate at rates from 4.12% to 4.61%, averaging 4.26% [Member] | Minimum | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB advances, interest rate | 4.12% | 4.12% |
Maturities October 2025 through March 2028, fixed rate at rates from 4.12% to 4.61%, averaging 4.26% [Member] | Maximum | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB advances, interest rate | 4.61% | 4.61% |
Maturities September 2024 through October 2027, fixed rate at rates from 4.23% to 4.61%, averaging 4.26% [Member] | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB average interest rate | 4.26% | 4.26% |
Maturities September 2024 through October 2027, fixed rate at rates from 4.23% to 4.61%, averaging 4.26% [Member] | Minimum | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB advances, interest rate | 4.23% | 4.23% |
Maturities September 2024 through October 2027, fixed rate at rates from 4.23% to 4.61%, averaging 4.26% [Member] | Maximum | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB advances, interest rate | 4.61% | 4.61% |
Federal Home Loan Bank Advances and Other Debt - Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Federal Home Loan Banks [Abstract] | |||
Payments for FHLB advance | $ 15,000 | $ 18,500 | |
Average rate of funds raised | 4.26% | ||
Recognized gain loss | $ 127 | $ 87 | |
Collateralized agreements | 82,490 | $ 83,008 | |
Maximum borrowing capacity | 89,909 | ||
Long-term line of credit | 10,000 | 10,000 | |
Line of credit facility, average outstanding amount | $ 0 | $ 0 |
Federal Home Loan Bank Advances and Other Debt - Summary of Payments over next Five Years (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Federal Home Loan Banks [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 5,000 |
2026 | 10,000 |
2027 | 10,000 |
Thereafter | $ 10,000 |
Employee Stock Ownership Plan - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Employee stock ownership plan ESOP compensation expense including mark to market adjustment amount | $ 63,000 | $ 105,000 | $ 214,000 | $ 225,000 |
2009 ESOP [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Number of shares not yet released | 295,938 | 295,938 | ||
Annual ESOP on the based on close price. | $ 3,107,000 | $ 3,107,000 | ||
Close Price | 10.5 | 10.5 | ||
Conversion and Reorganization Plan [Member] | 2009 ESOP [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Sale of stock, price per share | $ 10 | $ 10 | ||
Number of shares not yet released | 354,599 | 354,599 |
Stock Based Compensation - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
shares
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
shares
|
Sep. 30, 2022
USD ($)
|
May 31, 2023
shares
|
Dec. 31, 2022
shares
|
May 31, 2020
shares
|
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||
Number of shares available for future grants | 0 | 0 | |||||
Options converted | 784,152 | 784,152 | |||||
Number of stock options | 784,152 | 784,152 | 340,903 | ||||
2020 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 200,000 | ||||||
Stock Exchange Ratio | 2.8409 | ||||||
2023 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 620,548 | ||||||
Restricted Stock | 2020 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ | $ 112 | $ 336 | |||||
Unrecognized compensation cost | $ | 859 | $ 859 | |||||
Unrecognized compensation cost recognition period | 1 year 9 months 29 days | ||||||
Restricted Stock | 2023 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ | 63 | $ 63 | |||||
Unrecognized compensation cost | $ | 1,834 | $ 1,834 | |||||
Unrecognized compensation cost recognition period | 4 years 9 months 29 days | ||||||
Restricted Stock | Maximum | 2020 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 80,000 | ||||||
Restricted Stock | Maximum | 2023 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 177,299 | ||||||
Stock Options | 2020 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 120,000 | ||||||
Options vested | 68,177 | ||||||
Stock-based compensation expense | $ | 27 | $ 81 | $ 27 | $ 81 | |||
Unrecognized compensation cost | $ | $ 207 | $ 207 | |||||
Number of stock options | 340,903 | 340,903 | |||||
Unrecognized compensation cost recognition period | 1 year 9 months 29 days | ||||||
Stock Options | 2023 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 443,249 | ||||||
Options vested | 0 | ||||||
Stock-based compensation expense | $ | $ 30 | $ 30 | |||||
Unrecognized compensation cost | $ | $ 564 | $ 564 | |||||
Unrecognized compensation cost recognition period | 4 years 9 months |
Stock Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
Share-Based Payment Arrangement [Abstract] | ||||
Beginning balance of stock option | 340,903 | |||
Granted | 443,249 | |||
Options exercised | 0 | |||
Forfeited | 0 | |||
Ending balance of stock option | 784,152 | 340,903 | ||
Options, Vested or expected to vest | 784,152 | |||
Options, Exercisable at period end | 204,531 | |||
Beginning balance of weighted avg exercise price per share | $ 9.86 | |||
Granted | 10.54 | |||
Weighted avg exercise price per share | 0 | |||
Forfeited | 0 | |||
Ending balance of weighted avg exercise price per share | 10.24 | $ 9.86 | ||
Weighted avg exercise price per share, Vested or expected to vest | $ 10.24 | |||
Beginning balance of weighted avg remaining contractual life | 8 years 6 months | 6 years 10 months 17 days | ||
Weighted- Average Remaining Contractual Life, Granted | 9 years 9 months | |||
Ending balance of weighted avg remaining contractual life | 8 years 6 months | 6 years 10 months 17 days | ||
Weighted average remaining contractual life, Vested or expected to vest | 8 years 6 months | |||
Ending balance of aggregate intrinsic value | [1] | $ 53 | ||
Aggregate intrinsic value, vested or expected to vest | [1] | $ 204 | ||
|
Stock Based Compensation - Summary of Stock Option Activity (Parenthetical) (Details) |
Sep. 30, 2023
$ / shares
|
---|---|
Share-Based Payment Arrangement [Abstract] | |
Share Price | $ 10.5 |
Stock Based Compensation - Summary of Nonvested Shares (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested at beginning of period | shares | 136,356 |
Granted | shares | 177,299 |
Vested | shares | (45,455) |
Nonvested at end of period | shares | 268,200 |
Weighted Average Grant-Date Fair Value, Beginning of period | $ / shares | $ 9.86 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | 10.7 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 9.86 |
Weighted Average Grant-Date Fair Value, Ending Balance | $ / shares | $ 10.42 |
Stock Based Compensation - Summary of Restricted Stock Fair Value (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Converted Shares | 45,455 |
Converted Fair Value | $ / shares | $ 10.7 |
Restricted Stock [Member] | August 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares issued | 80,000 |
Converted Shares | 227,266 |
Vesting period | 5 years |
Converted Fair Value | $ / shares | $ 9.86 |
Restricted Stock [Member] | August 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares issued | 177,299 |
Converted Shares | 177,299 |
Vesting period | 5 years |
Converted Fair Value | $ / shares | $ 10.7 |
Regulatory Capital Matters - Additional information (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022 |
|
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Community bank leverage ratio minimum requirement | 0.1864 | 0.1775 |
Banking regulation, tier one leverage capital ratio | 0.09 | |
Dividends yet to be declare | $ 7,257 | |
Minimum | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Percentage of assets be maintianed | 65.00% |
Regulatory Capital Matters - Schedule of actual and required capital amounts for the bank and ratios (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Tier I capital (to average assets), Amount [Abstract] | ||
Actual Amount | $ 78,848 | $ 75,221 |
To be well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) Amount | $ 38,062 | $ 38,137 |
Tier I capital (to average assets), Ratio [Abstract] | ||
Actual Ratio | 0.1864 | 0.1775 |
To be well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) Ratio | 0.09 | 0.09 |
Fair Values of Financial Instruments - Additional Information (Details) - USD ($) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
|
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Other real estate owned assets value | $ 100,000 | ||
Transfers of Financial Assets Accounted for as Sale, Initial Fair Value of Assets Obtained as Proceeds | 0 | $ 0 | |
Fair Value, Recurring [Member] | Fair Value Inputs Level 3 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | $ 0 | $ 0 | |
Minimum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Duration of real estate assets hold | 2 years | ||
Significant Unobservable Input Appraisal Discounts and Weighted Average Input Used | 15.00% | 15.00% | |
Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Significant Unobservable Input Appraisal Discounts and Weighted Average Input Used | 20.00% | 20.00% |
Fair Values of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value Inputs Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | $ 0 | $ 0 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 27,325 | 29,796 |
Fair Value Inputs Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
US Government Sponsored Entities and Agencies | Fair Value Inputs Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
US Government Sponsored Entities and Agencies | Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 5,089 | 5,253 |
US Government Sponsored Entities and Agencies | Fair Value Inputs Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
Municipal- Taxable [Member] | Fair Value Inputs Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
Municipal- Taxable [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 11,029 | 11,511 |
Municipal- Taxable [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
Municipal- Tax Exempt [Member] | Fair Value Inputs Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
Municipal- Tax Exempt [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 862 | 1,315 |
Municipal- Tax Exempt [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
Residential MBS | Fair Value Inputs Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
Residential MBS | Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 8,948 | 10,142 |
Residential MBS | Fair Value Inputs Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
Commercial MBS [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 966 | 960 |
SBA Guaranteed Debenture | Fair Value Inputs Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 0 | 0 |
SBA Guaranteed Debenture | Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | 431 | 615 |
SBA Guaranteed Debenture | Fair Value Inputs Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total AFS | $ 0 | $ 0 |
Fair Values of Financial Instruments - Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - Municipal- Taxable [Member] - Fair Value Inputs Level 3 [Member] - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance of recurring Level 3 assets | $ 479 | $ 0 |
Purchase | 0 | 1,000 |
Redemption | (497) | |
Unrealized gain | 18 | 3 |
Ending balance of recurring Level 3 assets | $ 0 | $ 1,003 |
Fair Values of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Non Recurring Basis (Details) - Fair Value Inputs Level 3 [Member] - Fair Value Measurements Non Recurring [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Real Estate Loan [Member] | One-To Four Family [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | $ 6 | $ 9 |
Real Estate Loan [Member] | Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | 0 | 73 |
Foreclosed Real Esate [Member] | One-To Four Family [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | $ 0 | $ 50 |
Fair Values of Financial Instruments - Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial assets: | ||
Securities available for sale | $ 27,325 | $ 29,796 |
Accrued interest receivable | 1,133 | 1,162 |
Restricted equity securities | 2,770 | 2,033 |
Financial liabilities: | ||
Deposits | 274,201 | 292,949 |
Accrued interest payable | 235 | 155 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 22,801 | 36,645 |
Securities available for sale | 27,325 | 29,796 |
Loan, net | 325,988 | 320,687 |
Accrued interest receivable | 1,133 | 1,162 |
Financial liabilities: | ||
Deposits | 271,819 | 289,805 |
Federal Home Loan Bank advances | 35,869 | 25,102 |
Accrued interest payable | 235 | 155 |
Fair Value [Member] | Fair Value Inputs Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 22,801 | 36,645 |
Securities available for sale | 0 | 0 |
Loan, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Restricted equity securities | 0 | |
Financial liabilities: | ||
Deposits | 187,595 | 213,499 |
Federal Home Loan Bank advances | 0 | 0 |
Accrued interest payable | 8 | 5 |
Fair Value [Member] | Fair Value Inputs Level 2 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 27,325 | 29,796 |
Loan, net | 0 | 0 |
Accrued interest receivable | 153 | 219 |
Restricted equity securities | 0 | |
Financial liabilities: | ||
Deposits | 84,224 | 76,306 |
Federal Home Loan Bank advances | 35,869 | 25,102 |
Accrued interest payable | 227 | 150 |
Fair Value [Member] | Fair Value Inputs Level 3 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Loan, net | 325,988 | 320,687 |
Accrued interest receivable | 980 | 943 |
Restricted equity securities | 0 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets: | ||
Securities available for sale | 27,325 | 29,796 |
Cash and cash equivalents | 22,801 | 36,645 |
Loan, net | 338,111 | 329,943 |
Accrued interest receivable | 1,133 | 1,162 |
Restricted equity securities | 2,770 | 2,033 |
Financial liabilities: | ||
Deposits | 274,201 | 292,949 |
Federal Home Loan Bank advances | 35,000 | 25,000 |
Accrued interest payable | $ 235 | $ 155 |
Earnings Per Common Share - Calculation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings (loss) per share: | ||||
Net Income | $ 1,080 | $ 926 | $ 3,123 | $ 3,248 |
Less: Distributed earning allocated to participating securities | 0 | 0 | 0 | |
Plus (Less): Loss (Earnings) allocated to participating securities | (17) | (1) | (39) | (50) |
Net earnings allocated to common stock | $ 1,063 | $ 925 | $ 3,084 | $ 3,198 |
Weighted common shares outstanding including participating securities | 7,354,166 | 7,405,893 | 7,373,666 | 7,405,893 |
Less: Participating securities | (114,877) | (103,629) | (129,170) | (155,655) |
Less: Average unearned ESOP shares | (299,603) | (352,079) | (299,562) | (234,206) |
Weighted average shares | 6,939,686 | 6,950,185 | 6,944,934 | 7,016,032 |
Basic earnings (loss) per share | $ 0.15 | $ 0.13 | $ 0.44 | $ 0.46 |
Net earnings allocated to common stock | $ 1,063 | $ 925 | $ 3,084 | $ 3,198 |
Weighted average shares | 6,939,686 | 6,950,185 | 6,944,934 | 7,016,032 |
Add: dilutive effects of assumed exercises of stock options | 52,682 | 64,366 | 45,015 | 51,804 |
Average shares and dilutive potential common shares | 6,992,368 | 7,014,551 | 6,989,949 | 7,067,836 |
Diluted earnings (loss) per share | $ 0.15 | $ 0.13 | $ 0.44 | $ 0.45 |
Earning Per Common Share - Additional Information (Details) - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Stock Options | ||
Diluted earnings per common share | 443,249 | 340,903 |
^^68JFKXY?)79\TY3[[INL/I5-4^ZZEUN>;GC5!HC_/Y9E\_5-
M^^58IR]TN_L?4$L#!!0 ( !1+;E?-QW(>\ @ $\I 8 >&PO=V]R
M:W-H965T =:=B^D%?FZ\:)D^ROAQ,&,
MF,>1:5,=!
M$)IX&[5]CH-2V$A7Q@>]]>%:&9*K0ZVNC4^KI6H O7\JSS^7KE[:N 2@NZJ [R"1(;UD-;WFWE#O W""8
MW_M- @8B3,;,VRK5YM 5XP:R4+BA0ARC7(ZY3_E%6[LDBF-&4++OK>Y4!U@=
MZ+A>--D>R23M;<6%3$&+P9;3G!RRJDG5*U+6O:(U5(Q5((@B4K]Q[";N=S=2
MWR]R4*(C?@\9BD5!7&:TGEX=)5)53^D(U=N^,B>7[-+@Q>#U%#JHE#ODMKB*
M?.QRA>$ 1!5C!TKLN&*XA@)>T=<#$8TNB$I9MP$[+E.NCE*,("Z2BR1_DE!A
MI6H3YSZ:=0F!1@=+I# ;WM:J6!=+)&%% S=7%-D 7@_<;'\T6 5)G4-%!=]+GCW*FU^R^K)A)UN"/MJPMN+:^91]^'5XUU?)7T"0QQRINFQ
M.W(5+ W\39R<]D^/3L7!Z>#X2/R,@3_NAXG'CXZI'G/V#Y37\\/A ')X.3
M-XWE@\.39)ES)4HCB3F2&];98FCG#,+,NFOM2V,&735U44TO1P$6_UNV9QZEWKB<5R
M$L;RMQW$] ;U%^0GV&ES;J'VL?MV)?IFF:^'\W",NSCF7
M4E[FXJ)/N>[=UU8G#A.YU1(B'+)CY"U\Q
M/Y"[(LF2WJDT@"O[2CJQ_"Z1_R(X" U1'TW30+*]<@%'T@E%5*:$O06Z9&(ED]%YP!EVQMH
M>N-4[794(0(.4VAK$J4QN*1YJD:K6L7CQ5^,%Q[B1>$A7I+^%NW4S?6.9*9$
MN;%BJB 33:5;Q>E6.[V>MC+UOWDK]C=,;GBEH, UN?H7EXD#LA70=J)%;45K
M)31)H!UNZ9^#TAC0_EH(?9B8 -U?;/(+4$L#!!0 ( !1+;E=O"Z)]\P(
M &L& 9 >&PO=V]R:W-H965T8%,W5B@>#;Y_;O?#TG8B[VXB[
M[Z'_#R5[%W]_]+?3QPGUZ-OG?M1NG]+E9#RY'U[3U?1F0M?3X2V-AK=_T'#\
M8WA[,7F@X>V8IH]7DWL:3T:/-#2$NAF>SQ!573P7Z)C'E;3MI%$TD53(G
M$*$W&*^YXL2@)S.<+?KDDT.U()]NF%DJ8010IK&1U@'DAT!3