| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price of common stock
|
| | | $ | 21.00 | | | | | $ | 26,775,000 | | |
Underwriting discounts and commissions
|
| | | $ | 1.365 | | | | | $ | 1,740,375 | | |
Proceeds to us, before expenses
|
| | | $ | 19.635 | | | | | $ | 25,034,625 | | |
|
Stephens Inc.
|
| |
Piper Sandler
|
|
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | 1 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 18 | | | |
| | | | | 24 | | | |
| | | | | 26 | | | |
| | | | | 55 | | | |
| | | | | 55 | | | |
| | | | | 56 | | | |
| | | | | 57 | | | |
| | | | | 58 | | | |
| | | | | 60 | | | |
| | | | | 88 | | | |
| | | | | 93 | | | |
| | | | | 104 | | | |
| | | | | 111 | | | |
| | | | | 116 | | | |
| | | | | 116 | | | |
| | | | | 118 | | | |
| | | | | 118 | | | |
| | | | | 122 | | | |
| | | | | 126 | | | |
| | | | | 126 | | | |
| | | | | 126 | | | |
| | | | | 126 | | | |
| | | | | F-1 | | |
| | |
As of or For the Years Ended September 30,
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans originated
|
| | | $ | 157,461 | | | | | $ | 268,283 | | | | | $ | 334,099 | | | | | $ | 96,031 | | | | | $ | 104,567 | | |
Loans sold
|
| | | | 79,286 | | | | | | 134,464 | | | | | | 194,978 | | | | | | 36,982 | | | | | | 36,375 | | |
| | |
As of or For the
Three Months Ended March 31, 2021 |
| |||
Total Assets
|
| | | $ | 693,720 | | |
Total Gross Loans
|
| | | | 600,649 | | |
Total PPP Loans
|
| | | | 271,938 | | |
Total Deposits
|
| | | | 365,285 | | |
Total Equity
|
| | | | 49,063 | | |
Net Income
|
| | | | 3,040 | | |
Net Interest Margin
|
| | | | 3.70% | | |
Return on Average Assets
|
| | | | 1.88% | | |
Return on Average Equity
|
| | | | 25.83% | | |
| | |
As of or For the
Three Months Ended December 31, |
| |
As of or For the Years Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Selected Financial Condition Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 1,458,180 | | | | | $ | 876,883 | | | | | $ | 1,484,641 | | | | | $ | 851,606 | | | | | $ | 848,836 | | | | | $ | 649,963 | | | | | $ | 501,358 | | |
Loans, excluding PPP loans
|
| | | | 1,203,505 | | | | | | 711,428 | | | | | | 1,105,948 | | | | | | 707,729 | | | | | | 720,977 | | | | | | 560,403 | | | | | | 423,385 | | |
PPP loans
|
| | | | 72,944 | | | | | | 17,322 | | | | | | 140,657 | | | | | | 17,622 | | | | | | — | | | | | | — | | | | | | — | | |
Net deferred costs (fees)
|
| | | | 985 | | | | | | 2 | | | | | | 520 | | | | | | (332) | | | | | | (535) | | | | | | (1,023) | | | | | | (758) | | |
Loans, net of deferred fees and
costs |
| | | | 1,277,434 | | | | | | 728,752 | | | | | | 1,247,125 | | | | | | 725,019 | | | | | | 720,442 | | | | | | 559,380 | | | | | | 422,627 | | |
Allowance for loan losses
|
| | | | 9,386 | | | | | | 7,979 | | | | | | 8,552 | | | | | | 7,869 | | | | | | 7,143 | | | | | | 6,493 | | | | | | 4,795 | | |
Securities – available-for-sale
|
| | | | 7,536 | | | | | | 7,434 | | | | | | 7,747 | | | | | | 6,035 | | | | | | 911 | | | | | | 185 | | | | | | 1,526 | | |
Securities – held-to-maturity
|
| | | | 4,834 | | | | | | 10,001 | | | | | | 8,611 | | | | | | 10,727 | | | | | | 12,030 | | | | | | 12,931 | | | | | | 13,872 | | |
Goodwill and other intangible assets
|
| | | | 19,627 | | | | | | 1,921 | | | | | | 19,648 | | | | | | 1,922 | | | | | | 1,508 | | | | | | — | | | | | | — | | |
Borrowings
|
| | | | 113,274 | | | | | | 74,514 | | | | | | 159,642 | | | | | | 85,154 | | | | | | 100,745 | | | | | | 109,518 | | | | | | 73,955 | | |
Note payable, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 14,984 | | | | | | 14,981 | | | | | | 14,978 | | | | | | 8,414 | | |
Subordinated debt, net
|
| | | | 24,504 | | | | | | 24,468 | | | | | | 24,513 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Deposits
|
| | | | 1,176,751 | | | | | | 688,316 | | | | | | 1,164,662 | | | | | | 664,760 | | | | | | 650,286 | | | | | | 468,123 | | | | | | 372,730 | | |
Total stockholders’ equity
|
| | | | 129,379 | | | | | | 80,024 | | | | | | 122,529 | | | | | | 78,043 | | | | | | 71,950 | | | | | | 54,230 | | | | | | 41,778 | | |
Tangible common stockholders’ equity(1)
|
| | | | 109,752 | | | | | | 78,103 | | | | | | 102,881 | | | | | | 76,121 | | | | | | 70,442 | | | | | | 54,230 | | | | | | 41,778 | | |
Selected Operating Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 16,616 | | | | | $ | 9,497 | | | | | $ | 48,675 | | | | | $ | 40,133 | | | | | $ | 34,497 | | | | | $ | 26,724 | | | | | $ | 18,161 | | |
Interest expense
|
| | | | 1,347 | | | | | | 2,170 | | | | | | 6,967 | | | | | | 13,011 | | | | | | 12,076 | | | | | | 8,503 | | | | | | 5,279 | | |
Net interest income
|
| | | | 15,269 | | | | | | 7,327 | | | | | | 41,708 | | | | | | 27,122 | | | | | | 22,421 | | | | | | 18,221 | | | | | | 12,882 | | |
Provision for loan losses
|
| | | | 900 | | | | | | 100 | | | | | | 1,000 | | | | | | 1,250 | | | | | | 650 | | | | | | 1,698 | | | | | | 1,376 | | |
| | |
As of or For the
Three Months Ended December 31, |
| |
As of or For the Years Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses
|
| | | | 14,369 | | | | | | 7,227 | | | | | | 40,708 | | | | | | 25,872 | | | | | | 21,771 | | | | | | 16,523 | | | | | | 11,506 | | |
Non-interest income
|
| | | | 2,375 | | | | | | 286 | | | | | | 3,349 | | | | | | 1,364 | | | | | | 4,770 | | | | | | 2,733 | | | | | | 1,543 | | |
Non-interest expense, excluding
acquisition costs |
| | | | 8,264 | | | | | | 5,445 | | | | | | 25,575 | | | | | | 20,572 | | | | | | 15,150 | | | | | | 11,783 | | | | | | 9,584 | | |
Acquisition costs
|
| | | | — | | | | | | 145 | | | | | | 4,430 | | | | | | 450 | | | | | | 737 | | | | | | 97 | | | | | | — | | |
Income before income tax expense
|
| | | | 8,480 | | | | | | 1,923 | | | | | | 14,052 | | | | | | 6,214 | | | | | | 10,654 | | | | | | 7,376 | | | | | | 3,465 | | |
Income tax expense
|
| | | | 1,943 | | | | | | 404 | | | | | | 3,201 | | | | | | 1,240 | | | | | | 2,569 | | | | | | 2,775 | | | | | | 1,313 | | |
Net income
|
| | | $ | 6,537 | | | | | $ | 1,519 | | | | | $ | 10,851 | | | | | $ | 4,974 | | | | | $ | 8,085 | | | | | $ | 4,601 | | | | | $ | 2,152 | | |
Add back: acquisition costs, net of taxes
|
| | | | — | | | | | | 115 | | | | | | 3,411 | | | | | | 361 | | | | | | 560 | | | | | | 61 | | | | | | — | | |
Adjusted net income(1)
|
| | | $ | 6,537 | | | | | $ | 1,634 | | | | | $ | 14,262 | | | | | $ | 5,335 | | | | | $ | 8,645 | | | | | $ | 4,662 | | | | | $ | 2,152 | | |
|
|
Tangible book value per common
share(1) |
| | | | 19.73 | | | | | | 18.66 | | | | | | 18.49 | | | | | | 18.23 | | | | | | 16.92 | | | | | | 15.14 | | | | | | 13.41 | | |
| Selected Performance Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Return on average assets
|
| | | | 1.80% | | | | | | 0.71% | | | | | | 0.99% | | | | | | 0.58% | | | | | | 1.16% | | | | | | 0.81% | | | | | | 0.51% | | |
|
Adjusted return on average assets(1)
|
| | | | 1.80% | | | | | | 0.77% | | | | | | 1.31% | | | | | | 0.63% | | | | | | 1.24% | | | | | | 0.82% | | | | | | 0.51% | | |
|
Return on average common stockholders’
equity |
| | | | 20.52% | | | | | | 7.62% | | | | | | 11.53% | | | | | | 6.63% | | | | | | 12.71% | | | | | | 9.89% | | | | | | 6.09% | | |
|
Adjusted return on average common stockholders’ equity(1)
|
| | | | 20.52% | | | | | | 8.20% | | | | | | 15.16% | | | | | | 7.11% | | | | | | 13.59% | | | | | | 10.02% | | | | | | 6.09% | | |
|
Return on average tangible common equity(1)
|
| | | | 24.29% | | | | | | 7.81% | | | | | | 12.56% | | | | | | 6.77% | | | | | | 12.81% | | | | | | 9.89% | | | | | | 6.09% | | |
|
Adjusted return on average tangible common equity(1)
|
| | | | 24.29% | | | | | | 8.40% | | | | | | 16.51% | | | | | | 7.27% | | | | | | 13.70% | | | | | | 10.02% | | | | | | 6.09% | | |
|
Operating efficiency ratio(1)
|
| | | | 46.84% | | | | | | 73.43% | | | | | | 66.95% | | | | | | 73.79% | | | | | | 58.43% | | | | | | 56.75% | | | | | | 66.44% | | |
|
Adjusted operating efficiency ratio(1)
|
| | | | 46.84% | | | | | | 71.52% | | | | | | 57.07% | | | | | | 72.22% | | | | | | 55.72% | | | | | | 56.29% | | | | | | 66.44% | | |
|
Non-interest expense to average assets
|
| | | | 2.28% | | | | | | 2.60% | | | | | | 2.75% | | | | | | 2.47% | | | | | | 2.28% | | | | | | 2.09% | | | | | | 2.26% | | |
|
Adjusted non-interest expense to average
assets(1) |
| | | | 2.28% | | | | | | 0.85% | | | | | | 2.34% | | | | | | 2.41% | | | | | | 2.17% | | | | | | 2.08% | | | | | | 2.26% | | |
|
Net interest margin
|
| | | | 4.39% | | | | | | 3.53% | | | | | | 3.97% | | | | | | 3.29% | | | | | | 3.30% | | | | | | 3.30% | | | | | | 3.14% | | |
| Capital Ratios(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Tangible common equity to tangible assets(1)
|
| | | | 7.63% | | | | | | 8.93% | | | | | | 7.02% | | | | | | 8.96% | | | | | | 8.31% | | | | | | 8.34% | | | | | | 8.33% | | |
|
Tier 1 leverage ratio
|
| | | | 9.92% | | | | | | 12.04% | | | | | | 9.45% | | | | | | 11.22% | | | | | | 10.47% | | | | | | 10.85% | | | | | | 10.06% | | |
|
Common equity tier 1 risk-based capital
ratio |
| | | | 14.44% | | | | | | 21.49% | | | | | | 14.54% | | | | | | 19.32% | | | | | | 17.81% | | | | | | 19.04% | | | | | | 16.56% | | |
|
Tier 1 risk-based capital ratio
|
| | | | 14.44% | | | | | | 21.49% | | | | | | 14.54% | | | | | | 19.32% | | | | | | 17.81% | | | | | | 19.04% | | | | | | 16.56% | | |
|
Total risk-based capital ratio
|
| | | | 15.52% | | | | | | 22.75% | | | | | | 15.59% | | | | | | 20.57% | | | | | | 19.07% | | | | | | 20.30% | | | | | | 17.82% | | |
| Selected Asset Quality Data and Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Nonaccrual loans (excluding loans held-for-sale “HFS”)
|
| | | $ | 6,115 | | | | | $ | 4,053 | | | | | $ | 7,028 | | | | | $ | 953 | | | | | $ | 1,613 | | | | | $ | — | | | | | $ | — | | |
|
Loans 90 days or more past due and still accruing
|
| | | | 2,501 | | | | | | 318 | | | | | | 2,519 | | | | | | 296 | | | | | | 629 | | | | | | — | | | | | | — | | |
|
Total non-performing loans/non-performing assets(2)
|
| | | | 8,616 | | | | | | 4,371 | | | | | | 9,547 | | | | | | 1,249 | | | | | | 2,242 | | | | | | — | | | | | | — | | |
|
Performing troubled debt restructuring loans (“TDRs”)
|
| | | | 455 | | | | | | 454 | | | | | | 455 | | | | | | 454 | | | | | | 454 | | | | | | 354 | | | | | | 562 | | |
|
Allowance for loan losses
|
| | | | 9,386 | | | | | | 7,979 | | | | | | 8,552 | | | | | | 7,869 | | | | | | 7,143 | | | | | | 6,493 | | | | | | 4,795 | | |
|
Total loan fair value adjustment
|
| | | | 4,702 | | | | | | (205) | | | | | | 6,117 | | | | | | (211) | | | | | | (250) | | | | | | — | | | | | | — | | |
|
Net loan charge-offs/(recoveries)
|
| | | | 66 | | | | | | (10) | | | | | | 317 | | | | | | 524 | | | | | | — | | | | | | — | | | | | | — | | |
|
Nonaccrual loans as a percentage of total
loans(4) |
| | | | 0.51% | | | | | | 0.57% | | | | | | 0.64% | | | | | | 0.13% | | | | | | 0.22% | | | | | | N/A | | | | | | N/A | | |
|
Nonperforming loans as a percentage of total loans(4)
|
| | | | 0.72% | | | | | | 0.61% | | | | | | 0.86% | | | | | | 0.18% | | | | | | 0.31% | | | | | | N/A | | | | | | N/A | | |
|
Nonperforming assets(2) to total assets
|
| | | | 0.59% | | | | | | 0.50% | | | | | | 0.64% | | | | | | 0.15% | | | | | | 0.26% | | | | | | N/A | | | | | | N/A | | |
|
Net loan charge-offs/(recoveries) to average loans
|
| | | | 0.02% | | | | | | -0.01% | | | | | | 0.03% | | | | | | 0.07% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
|
Allowance for loan losses as a percentage
of total loans(4) |
| | | | 0.78% | | | | | | 1.12% | | | | | | 0.77% | | | | | | 1.11% | | | | | | 0.99% | | | | | | 1.16% | | | | | | 1.13% | | |
|
Allowance for loan losses and total loan
fair value mark as a percentage of total loans(4) |
| | | | 1.17% | | | | | | 1.09% | | | | | | 1.33% | | | | | | 1.08% | | | | | | 0.96% | | | | | | 1.16% | | | | | | 1.13% | | |
|
Allowance for loan losses as a percentage
of nonperforming loans (excluding loans HFS) |
| | | | 109% | | | | | | 183% | | | | | | 90% | | | | | | 630% | | | | | | 319% | | | | | | N/A | | | | | | N/A | | |
|
Allowance for loan losses to nonaccrual loans (excluding loans HFS)
|
| | | | 153% | | | | | | 197% | | | | | | 122% | | | | | | 826% | | | | | | 443% | | | | | | N/A | | | | | | N/A | | |
Non-GAAP Reconciliation
Table |
| |
As of December 31,
|
| |
As of September 30,
|
| ||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||
| | |
(dollars in thousands, except share data)
|
| |||||||||||||||||||||||||||||||||||||||
Book value per common
share |
| | | $ | 23.26 | | | | | $ | 19.12 | | | | | $ | 22.02 | | | | | $ | 18.69 | | | | | $ | 17.28 | | | | | $ | 15.14 | | | | | $ | 13.41 | | |
Less: goodwill and other intangible assets
|
| | | | (3.53) | | | | | | (0.46) | | | | | | (3.53) | | | | | | (0.46) | | | | | | (0.36) | | | | | | — | | | | | | — | | |
Tangible book value per
common share |
| | | $ | 19.73 | | | | | $ | 18.66 | | | | | $ | 18.49 | | | | | $ | 18.23 | | | | | $ | 16.92 | | | | | $ | 15.14 | | | | | $ | 13.41 | | |
Common stockholders’
equity |
| | | $ | 129,379 | | | | | $ | 80,024 | | | | | $ | 122,529 | | | | | $ | 78,043 | | | | | $ | 71,950 | | | | | $ | 54,230 | | | | | $ | 41,778 | | |
Less: goodwill and other intangible assets
|
| | | | (19,627) | | | | | | (1,921) | | | | | | (19,648) | | | | | | (1,922) | | | | | | (1,508) | | | | | | — | | | | | | — | | |
Tangible common stockholders’
equity |
| | | $ | 109,752 | | | | | $ | 78,103 | | | | | $ | 102,881 | | | | | $ | 76,121 | | | | | $ | 70,442 | | | | | $ | 54,230 | | | | | $ | 41,778 | | |
Total assets
|
| | | $ | 1,458,180 | | | | | $ | 876,883 | | | | | $ | 1,484,641 | | | | | $ | 851,606 | | | | | $ | 848,836 | | | | | $ | 649,963 | | | | | $ | 501,358 | | |
Less: goodwill and other intangible assets
|
| | | | (19,627) | | | | | | (1,921) | | | | | | (19,648) | | | | | | (1,922) | | | | | | (1,508) | | | | | | — | | | | | | — | | |
Tangible assets
|
| | | $ | 1,438,553 | | | | | $ | 874,962 | | | | | $ | 1,464,993 | | | | | $ | 849,684 | | | | | $ | 847,328 | | | | | $ | 649,963 | | | | | $ | 501,358 | | |
Tangible common equity ratio
|
| | | | 7.63% | | | | | | 8.93% | | | | | | 7.02% | | | | | | 8.96% | | | | | | 8.31% | | | | | | 8.34% | | | | | | 8.33% | | |
Non-GAAP Reconciliation Table
|
| |
As of or For the
Three Months Ended December 31, |
| |
As of or For the Years Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||
| | |
(dollars in thousands, except share data)
|
| |||||||||||||||||||||||||||||||||||||||
Net income
|
| | | $ | 6,537 | | | | | $ | 1,519 | | | | | $ | 10,851 | | | | | $ | 4,974 | | | | | $ | 8,085 | | | | | $ | 4,601 | | | | | $ | 2,152 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition costs
|
| | | | — | | | | | | 145 | | | | | | 4,430 | | | | | | 450 | | | | | | 737 | | | | | | 97 | | | | | | — | | |
Income tax effect of adjustment above
|
| | | | — | | | | | | (30) | | | | | | (1,019) | | | | | | (89) | | | | | | (177) | | | | | | (36) | | | | | | — | | |
Adjusted net income (non-GAAP)
|
| | | $ | 6,537 | | | | | $ | 1,634 | | | | | $ | 14,262 | | | | | $ | 5,335 | | | | | $ | 8,645 | | | | | $ | 4,662 | | | | | $ | 2,152 | | |
Diluted earnings per share
|
| | | $ | 1.16 | | | | | $ | 0.36 | | | | | $ | 2.28 | | | | | $ | 1.18 | | | | | $ | 2.06 | | | | | $ | 1.36 | | | | | $ | 0.78 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition costs
|
| | | | — | | | | | | 0.04 | | | | | | 0.93 | | | | | | 0.11 | | | | | | 0.19 | | | | | | 0.03 | | | | | | — | | |
Income tax effect of adjustment above
|
| | | | — | | | | | | (0.01) | | | | | | (0.21) | | | | | | (0.03) | | | | | | (0.04) | | | | | | (0.01) | | | | | | — | | |
Adjusted diluted earnings per share (non-GAAP)
|
| | | $ | 1.16 | | | | | $ | 0.39 | | | | | $ | 3.00 | | | | | $ | 1.26 | | | | | $ | 2.21 | | | | | $ | 1.38 | | | | | $ | 0.78 | | |
Return on average total
assets |
| | | | 1.80% | | | | | | 0.71% | | | | | | 0.99% | | | | | | 0.58% | | | | | | 1.16% | | | | | | 0.81% | | | | | | 0.51% | | |
Non-GAAP Reconciliation Table
|
| |
As of or For the
Three Months Ended December 31, |
| |
As of or For the Years Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||
| | |
(dollars in thousands, except share data)
|
| |||||||||||||||||||||||||||||||||||||||
Acquisition costs
|
| | | | 0.00% | | | | | | 0.07% | | | | | | 0.41% | | | | | | 0.06% | | | | | | 0.11% | | | | | | 0.02% | | | | | | — | | |
Income tax effect of adjustment above
|
| | | | 0.00% | | | | | | (0.01)% | | | | | | (0.09)% | | | | | | (0.01)% | | | | | | (0.03)% | | | | | | (0.01)% | | | | | | — | | |
Adjusted return on average total assets
|
| | | | 1.80% | | | | | | 0.77% | | | | | | 1.31% | | | | | | 0.63% | | | | | | 1.24% | | | | | | 0.82% | | | | | | 0.51% | | |
Average common stockholders’ equity
|
| | | $ | 126,397 | | | | | $ | 79,063 | | | | | $ | 94,072 | | | | | $ | 74,976 | | | | | $ | 63,588 | | | | | $ | 46,545 | | | | | $ | 35,312 | | |
Less: goodwill and other intangible assets
|
| | | | (19,638) | | | | | | (1,922) | | | | | | (7,672) | | | | | | (1,549) | | | | | | (492) | | | | | | — | | | | | | — | | |
Average tangible common stockholders’ equity
|
| | | $ | 106,759 | | | | | $ | 77,141 | | | | | $ | 86,400 | | | | | $ | 73,427 | | | | | $ | 63,096 | | | | | $ | 46,545 | | | | | $ | 35,312 | | |
Return on average common stockholders’ equity
|
| | | | 20.52% | | | | | | 7.62% | | | | | | 11.53% | | | | | | 6.63% | | | | | | 12.71% | | | | | | 9.89% | | | | | | 6.09% | | |
Acquisition costs
|
| | | | 0.00% | | | | | | 0.73% | | | | | | 4.71% | | | | | | 0.60% | | | | | | 1.16% | | | | | | 0.21% | | | | | | — | | |
Income tax effect of adjustment above
|
| | | | 0.00% | | | | | | (0.15)% | | | | | | (1.08)% | | | | | | (0.12)% | | | | | | (0.28)% | | | | | | (0.08)% | | | | | | — | | |
Adjusted return on average common stockholders’ equity
|
| | | | 20.52% | | | | | | 8.20% | | | | | | 15.16% | | | | | | 7.11% | | | | | | 13.59% | | | | | | 10.02% | | | | | | 6.09% | | |
Return on average tangible common stockholders’ equity
|
| | | | 24.29% | | | | | | 7.81% | | | | | | 12.56% | | | | | | 6.77% | | | | | | 12.81% | | | | | | 9.89% | | | | | | 6.09% | | |
Acquisition costs
|
| | | | 0.00% | | | | | | 0.75% | | | | | | 5.13% | | | | | | 0.61% | | | | | | 1.17% | | | | | | 0.21% | | | | | | — | | |
Income tax effect of adjustment above
|
| | | | 0.00% | | | | | | (0.16)% | | | | | | (1.18)% | | | | | | (0.11)% | | | | | | (0.28)% | | | | | | (0.08)% | | | | | | — | | |
Adjusted return on average tangible common stockholders’ equity
|
| | | | 24.29% | | | | | | 8.40% | | | | | | 16.51% | | | | | | 7.27% | | | | | | 13.70% | | | | | | 10.02% | | | | | | 6.09% | | |
Non-GAAP Reconciliation Table
|
| |
As of or For the
Three Months Ended December 31, |
| |
As of or For the Years Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||
| | |
(dollars in thousands, except share data)
|
| |||||||||||||||||||||||||||||||||||||||
Operating efficiency ratio (non-GAAP)
|
| | | | 46.84% | | | | | | 73.43% | | | | | | 66.95% | | | | | | 73.79% | | | | | | 58.43% | | | | | | 56.75% | | | | | | 66.44% | | |
Non-interest expense
|
| | | $ | 8,264 | | | | | $ | 5,590 | | | | | $ | 30,005 | | | | | $ | 21,022 | | | | | $ | 15,887 | | | | | $ | 11,880 | | | | | $ | 9,584 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition costs
|
| | | | — | | | | | | 145 | | | | | | 4,430 | | | | | | 450 | | | | | | 737 | | | | | | 97 | | | | | | — | | |
Adjusted non-interest expense (non-GAAP)
|
| | | $ | 8,264 | | | | | $ | 5,445 | | | | | $ | 25,575 | | | | | $ | 20,572 | | | | | $ | 15,150 | | | | | $ | 11,783 | | | | | $ | 9,584 | | |
Net interest income – as reported
|
| | | | 15,269 | | | | | | 7,327 | | | | | | 41,708 | | | | | | 27,122 | | | | | | 22,421 | | | | | | 18,221 | | | | | | 12,882 | | |
Non-interest income – as reported
|
| | | | 2,375 | | | | | | 286 | | | | | | 3,349 | | | | | | 1,364 | | | | | | 4,770 | | | | | | 2,733 | | | | | | 1,543 | | |
Less: Gain on sale of securities
for sale |
| | | | — | | | | | | — | | | | | | 240 | | | | | | — | | | | | | — | | | | | | 20 | | | | | | — | | |
Non-GAAP Reconciliation Table
|
| |
As of or For the
Three Months Ended December 31, |
| |
As of or For the Years Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||
| | |
(dollars in thousands, except share data)
|
| |||||||||||||||||||||||||||||||||||||||
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)
|
| | | $ | 17,644 | | | | | $ | 7,613 | | | | | $ | 44,817 | | | | | $ | 28,486 | | | | | $ | 27,191 | | | | | $ | 20,934 | | | | | $ | 14,425 | | |
Adjusted operating efficiency ratio (non-GAAP)
|
| | | | 46.84% | | | | | | 71.52% | | | | | | 57.07% | | | | | | 72.22% | | | | | | 55.72% | | | | | | 56.29% | | | | | | 66.44% | | |
Non-interest expense to average
total assets |
| | | | 2.28% | | | | | | 2.60% | | | | | | 2.75% | | | | | | 2.47% | | | | | | 2.28% | | | | | | 2.09% | | | | | | 2.26% | | |
Acquisition costs
|
| | | | 0.00% | | | | | | 0.07% | | | | | | 0.41% | | | | | | 0.06% | | | | | | 0.11% | | | | | | 0.01% | | | | | | — | | |
Adjusted non-interest expense on average total assets (non-GAAP)
|
| | | | 2.28% | | | | | | 2.53% | | | | | | 2.34% | | | | | | 2.41% | | | | | | 2.17% | | | | | | 2.08% | | | | | | 2.26% | | |
| | |
Hanover for the
Twelve Months Ended September 30, 2021(a) |
| |
Savoy for the
Period from 10/1/2020 to 5/27/2021(b) |
| |
Adjustments
|
| |
Pro Forma
Combined for the Twelve Months Ended September 30, 2021 |
| ||||||||||||
| | |
(Dollars in thousands, except per share amounts)
|
| |||||||||||||||||||||
Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 45,175 | | | | | $ | 17,405 | | | | | $ | 2,252(c) | | | | | $ | 64,832 | | |
Investment securities
|
| | | | 685 | | | | | | 62 | | | | | | | | | | | | 747 | | |
Federal funds sold
|
| | | | 1 | | | | | | — | | | | | | | | | | | | 1 | | |
Other
|
| | | | 304 | | | | | | 36 | | | | | | | | | | | | 340 | | |
Total interest income
|
| | | | 46,165 | | | | | | 17,503 | | | | | | 2,252 | | | | | | 65,920 | | |
Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 5,290 | | | | | | 2,700 | | | | | | (1,358)(d) | | | | | | 6,632 | | |
Borrowings
|
| | | | 2,302 | | | | | | 653 | | | | | | (180)(e) | | | | | | 2,775 | | |
Total interest expense
|
| | | | 7,592 | | | | | | 3,353 | | | | | | (1,538) | | | | | | 9,407 | | |
Net interest income before provision
|
| | | | 38,573 | | | | | | 14,150 | | | | | | 3,790 | | | | | | 56,513 | | |
Provision for loan losses
|
| | | | 1,000 | | | | | | 600 | | | | | | | | | | | | 1,600 | | |
Net interest income after provision for loan losses
|
| | | | 37,573 | | | | | | 13,550 | | | | | | 3,790 | | | | | | 54,913 | | |
Non-interest income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan fees and service charges
|
| | | | 703 | | | | | | 337 | | | | | | | | | | | | 1,040 | | |
Loan servicing income
|
| | | | 504 | | | | | | 501 | | | | | | | | | | | | 1,005 | | |
Service charges on deposit accounts
|
| | | | 127 | | | | | | 53 | | | | | | | | | | | | 180 | | |
Gain on sale of investment securities available-
for-sale, net |
| | | | 240 | | | | | | 3 | | | | | | | | | | | | 243 | | |
Gain on sale of loans held-for-sale
|
| | | | 1,307 | | | | | | 5,371 | | | | | | | | | | | | 6,678 | | |
Other income
|
| | | | 468 | | | | | | 1,189 | | | | | | | | | | | | 1,657 | | |
Total non-interest income
|
| | | | 3,349 | | | | | | 7,454 | | | | | | — | | | | | | 10,803 | | |
Non-interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 15,009 | | | | | | 4,570 | | | | | | | | | | | | 19,579 | | |
Occupancy and equipment
|
| | | | 4,978 | | | | | | 628 | | | | | | | | | | | | 5,606 | | |
Data processing
|
| | | | 1,280 | | | | | | 724 | | | | | | | | | | | | 2,004 | | |
Advertising and promotion
|
| | | | 118 | | | | | | 49 | | | | | | | | | | | | 167 | | |
Acquisition costs
|
| | | | — | | | | | | 779 | | | | | | | | | | | | 779 | | |
Professional fees
|
| | | | 1,706 | | | | | | 372 | | | | | | | | | | | | 2,078 | | |
Other
|
| | | | 2,456 | | | | | | 1,419 | | | | | | 80(f) | | | | | | 3,955 | | |
Total non-interest expense
|
| | | | 25,547 | | | | | | 8,541 | | | | | | 80 | | | | | | 34,168 | | |
| | |
Hanover for the
Twelve Months Ended September 30, 2021(a) |
| |
Savoy for the
Period from 10/1/2020 to 5/27/2021(b) |
| |
Adjustments
|
| |
Pro Forma
Combined for the Twelve Months Ended September 30, 2021 |
| ||||||||||||
| | |
(Dollars in thousands, except per share amounts)
|
| |||||||||||||||||||||
Income before income tax expense
|
| | | | 15,375 | | | | | | 12,463 | | | | | | 3,710 | | | | | | 31,548 | | |
Income tax expense
|
| | | | 1,508 | | | | | | 3,754 | | | | | | 816(g) | | | | | | 6,078 | | |
Net Income
|
| | | $ | 13,867 | | | | | $ | 8,709 | | | | | $ | 2,894 | | | | | $ | 25,470 | | |
Per share information: | | | | | | | | | | | | | | | | | | | | | | | | | |
Average basic shares outstanding
|
| | | | 4,669,009 | | | | | | | | | | | | 892,440(h) | | | | | | 5,561,449 | | |
Average fully diluted shares outstanding
|
| | | | 4,758,669 | | | | | | | | | | | | 892,440(h) | | | | | | 5,651,109 | | |
Basic earnings per share
|
| | | $ | 2.97 | | | | | | | | | | | | | | | | | $ | 4.58 | | |
Diluted earnings per share
|
| | | $ | 2.91 | | | | | | | | | | | | | | | | | $ | 4.51 | | |
| | |
December 31, 2021
|
| |||||||||
| | |
Actual
|
| |
Pro Forma
|
| ||||||
| | |
(Dollars in thousands, except per share data)
|
| |||||||||
Debt | | | | | | | | | | | | | |
Short term debt
|
| | | $ | 13,444 | | | | | $ | 13,444 | | |
Long term debt
|
| | | | 124,334 | | | | | | 124,334 | | |
Total debt
|
| | | | 137,778 | | | | | | 137,778 | | |
Stockholders’ equity | | | | | | | | | | | | | |
Common stock (par value $0.01; 17,000,000 shares authorized; 5,562,799 shares outstanding)
|
| | | $ | 56 | | | | | $ | 69 | | |
Surplus
|
| | | | 97,505 | | | | | | 121,472 | | |
Retained earnings
|
| | | | 31,508 | | | | | | 31,508 | | |
Accumulated other comprehensive income, net of tax
|
| | | | 310 | | | | | | 310 | | |
Total stockholders’ equity:
|
| | | $ | 129,379 | | | | | $ | 153,359 | | |
Total capitalization
|
| | | $ | 267,157 | | | | | $ | 291,137 | | |
Capital Ratios(1) | | | | | | | | | | | | | |
Tier 1 (leverage) ratio
|
| | | | 9.92% | | | | | | 11.45% | | |
Common equity tier 1 risk-based ratio
|
| | | | 14.44% | | | | | | 16.96% | | |
Tier 1 risk-based ratio
|
| | | | 14.44% | | | | | | 16.96% | | |
Total risk-based capital ratio
|
| | | | 15.52% | | | | | | 18.03% | | |
Per share data: | | | | | | | | | | | | | |
Book value per common share
|
| | | $ | 23.26 | | | | | $ | 22.43 | | |
Tangible book value per common share(2)
|
| | | $ | 19.73 | | | | | $ | 19.56 | | |
|
Assumed initial public offering price
|
| | | | | | | | | $ | 21.00 | | |
|
Tangible book value per share of common stock at December 31, 2021
|
| | | $ | | | | | | 19.73 | | | |
|
Decrease in tangible book value per share of common stock attributable to new
investors |
| | | | 0.17 | | | | | | | | |
|
As adjusted tangible book value per share of common stock after this offering
|
| | | | | | | | | | 19.56 | | |
|
Dilution per share of common stock to new investors in this offering
|
| | | | | | | | | | 1.44 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price |
| |||||||||||||||||||||
(Dollars in thousands, except per share amounts)
|
| |
Number
|
| |
Percentage
|
| |
Amount
|
| |
Percentage
|
| |
Per Share
|
| |||||||||||||||
Existing shareholders as of December 31, 2021
|
| | | | 5,562,799 | | | | | | 81% | | | | | $ | 98,163 | | | | | | 79% | | | | | $ | 17.65 | | |
New Investors
|
| | | | 1,275,000 | | | | | | 19% | | | | | | 26,775 | | | | | | 21% | | | | | | 21.00 | | |
Total
|
| | | | 6,837,799 | | | | | | 100% | | | | | $ | 124,938 | | | | | | 100% | | | | | $ | 18.27 | | |
| | |
Three months ended
December 31, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Revenue(1) | | | |
$
|
17,644
|
| | | | $ | 7,613 | | |
Non-interest expense
|
| | |
|
8,264
|
| | | | | 5,590 | | |
Provision for loan losses
|
| | |
|
900
|
| | | | | 100 | | |
Net income
|
| | |
|
6,537
|
| | | | | 1,519 | | |
Net income per common share – diluted
|
| | |
|
1.16
|
| | | | | 0.36 | | |
Return on average assets
|
| | |
|
1.80%
|
| | | | | 0.71% | | |
Return on average common stockholders’ equity
|
| | |
|
20.52%
|
| | | | | 7.62% | | |
Tier 1 leverage ratio
|
| | |
|
9.92%
|
| | | | | 12.04% | | |
Common equity tier 1 risk-based capital ratio
|
| | |
|
14.44%
|
| | | | | 21.49% | | |
Tier 1 risk-based capital ratio
|
| | |
|
14.44%
|
| | | | | 21.49% | | |
Total risk-based capital ratio
|
| | |
|
15.52%
|
| | | | | 22.75% | | |
Tangible common equity ratio (non-GAAP)
|
| | |
|
7.63%
|
| | | | | 8.93% | | |
Total common stockholders’ equity/total assets(2)
|
| | |
|
8.87%
|
| | | | | 9.13% | | |
| | | | | | | | | | | | | | | | | |
Ratios
|
| |||
Total common stockholders’ equity
|
| | | $ | 129,379 | | | |
Total assets
|
| | | $ | 1,458,180 | | | | | | 8.87%(1) | | |
Less: goodwill
|
| | | | (19,168) | | | |
Less: goodwill
|
| | | | (19,168) | | | | | | | | |
Less: core deposit intangible
|
| | | | (459) | | | |
Less: core deposit intangible
|
| | | | (459) | | | | | | | | |
Tangible common equity
|
| | | $ | 109,752 | | | |
Tangible assets
|
| | | $ | 1,438,553 | | | | | | 7.63%(2) | | |
| | |
2021
|
| |
2020
|
| ||||||||||||||||||||||||||||||
| | |
Average
Balance |
| |
Interest
|
| |
Average
Yield/Cost |
| |
Average
Balance |
| |
Interest
|
| |
Average
Yield/Cost |
| ||||||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 1,253,827 | | | | | $ | 16,381 | | | | | | 5.18% | | | | | $ | 724,751 | | | | | $ | 9,258 | | | | | | 5.07% | | |
Investment securities
|
| | | | 15,634 | | | | | | 155 | | | | | | 3.93% | | | | | | 16,520 | | | | | | 173 | | | | | | 4.15% | | |
Interest-earning cash
|
| | | | 106,660 | | | | | | 38 | | | | | | 0.14% | | | | | | 78,958 | | | | | | 21 | | | | | | 0.11% | | |
FHLB stock and other investments
|
| | | | 5,252 | | | | | | 42 | | | | | | 3.17% | | | | | | 3,922 | | | | | | 45 | | | | | | 4.55% | | |
Total interest-earning assets
|
| | | | 1,381,373 | | | | | | 16,616 | | | | | | 4.77% | | | | | | 824,151 | | | | | | 9,497 | | | | | | 4.57% | | |
Non interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
|
| | | | 8,264 | | | | | | | | | | | | | | | | | | 4,709 | | | | | | | | | | | | | | |
Other assets
|
| | | | 49,011 | | | | | | | | | | | | | | | | | | 24,300 | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 1,438,648 | | | | | | | | | | | | | | | | | $ | 853,160 | | | | | | | | | | | | | | |
Liabilities and stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings, NOW and money market deposits
|
| | | $ | 609,251 | | | | | $ | 366 | | | | | | 0.24% | | | | | $ | 186,894 | | | | | $ | 117 | | | | | | 0.25% | | |
Time deposits
|
| | | | 346,448 | | | | | | 491 | | | | | | 0.56% | | | | | | 391,442 | | | | | | 1,454 | | | | | | 1.47% | | |
Total savings and time deposits
|
| | | | 955,699 | | | | | | 857 | | | | | | 0.36% | | | | | | 578,336 | | | | | | 1,571 | | | | | | 1.08% | | |
Fed funds purchased & FHLB & FRB advances
|
| | | | 126,058 | | | | | | 160 | | | | | | 0.50% | | | | | | 78,937 | | | | | | 221 | | | | | | 1.11% | | |
Note payable
|
| | | | — | | | | | | — | | | | | | 0.00% | | | | | | 1,303 | | | | | | 73 | | | | | | 22.23%(1) | | |
Subordinated debentures
|
| | | | 24,499 | | | | | | 330 | | | | | | 5.34% | | | | | | 22,899 | | | | | | 305 | | | | | | 5.28% | | |
Total interest-bearing liabilities
|
| | | | 1,106,256 | | | | | | 1,347 | | | | | | 0.48% | | | | | | 681,475 | | | | | | 2,170 | | | | | | 1.26% | | |
Demand deposits
|
| | | | 192,161 | | | | | | | | | | | | | | | | | | 83,701 | | | | | | | | | | | | | | |
Other liabilities
|
| | | | 13,834 | | | | | | | | | | | | | | | | | | 8,921 | | | | | | | | | | | | | | |
Total liabilities
|
| | | | 1,312,251 | | | | | | | | | | | | | | | | | | 774,097 | | | | | | | | | | | | | | |
Stockholders’ equity
|
| | | | 126,397 | | | | | | | | | | | | | | | | | | 79,063 | | | | | | | | | | | | | | |
Total liabilities & stockholders’ equity
|
| | | $ | 1,438,648 | | | | | | | | | | | | | | | | | $ | 853,160 | | | | | | | | | | | | | | |
Net interest rate spread
|
| | | | | | | | | | | | | | | | 4.29% | | | | | | | | | | | | | | | | | | 3.31% | | |
Net interest income/margin
|
| | | | | | | | | $ | 15,269 | | | | | | 4.39% | | | | | | | | | | | $ | 7,327 | | | | | | 3.53% | | |
| | |
Three months ended
December 31, |
| |
Over/
(under) 2020 |
| ||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||
Loan servicing and fee income
|
| | |
$
|
690
|
| | | | $ | 83 | | | | | | 731.3% | | |
Service charges on deposit accounts
|
| | |
|
63
|
| | | | | 15 | | | | | | 320.0 | | |
Net gain on sale of loans held for sale
|
| | |
|
1,492
|
| | | | | 181 | | | | | | 724.3 | | |
Other income
|
| | |
|
130
|
| | | | | 7 | | | | | | 1,757.1 | | |
Total non-interest income
|
| | |
$
|
2,375
|
| | | | $ | 286 | | | | | | 730.4% | | |
| | |
Three months ended
December 31, |
| |
Over/
(under) 2020 |
| ||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||
Salaries and employee benefits
|
| | |
$
|
4,939
|
| | | | $ | 3,108 | | | | | | 58.9% | | |
Occupancy and equipment
|
| | |
|
1,413
|
| | | | | 1,171 | | | | | | 20.7 | | |
Data processing
|
| | |
|
366
|
| | | | | 245 | | | | | | 49.4 | | |
Advertising and promotion
|
| | |
|
33
|
| | | | | 48 | | | | | | (31.3) | | |
Acquisition costs
|
| | |
|
—
|
| | | | | 145 | | | | | | (100.0) | | |
Professional fees
|
| | |
|
499
|
| | | | | 412 | | | | | | 21.1 | | |
Other expenses
|
| | |
|
1,014
|
| | | | | 461 | | | | | | 120.0 | | |
Total non-interest expense
|
| | |
$
|
8,264
|
| | | | $ | 5,590 | | | | | | 47.8% | | |
| | |
As of or for the three months ended
|
| |||||||||||||||
| | |
12/31/2021
|
| |
9/30/2021
|
| |
12/31/2020
|
| |||||||||
Non-accrual loans
|
| | | $ | 6,115 | | | | | $ | 7,028 | | | | | $ | 4,053 | | |
Non-accrual loans held for sale
|
| | | | — | | | | | | — | | | | | | — | | |
Other real estate owned
|
| | | | — | | | | | | — | | | | | | — | | |
Total non-performing assets(1)
|
| | | $ | 6,115 | | | | | $ | 7,028 | | | | | $ | 4,053 | | |
Purchased credit-impaired loans 90 days or more past due and still accruing
|
| | | $ | 2,501 | | | | | $ | 2,519 | | | | | $ | 318 | | |
Performing TDRs
|
| | | | 455 | | | | | | 455 | | | | | | 454 | | |
Loans held for sale
|
| | | | — | | | | | | — | | | | | | 4,150 | | |
Loans held for investment
|
| | | | 1,277,434 | | | | | | 1,247,125 | | | | | | 728,752 | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 8,552 | | | | | $ | 7,852 | | | | | $ | 7,869 | | |
Provision
|
| | | | 900 | | | | | | 700 | | | | | | 100 | | |
Charge-offs
|
| | | | (66) | | | | | | — | | | | | | — | | |
Recoveries
|
| | | | — | | | | | | — | | | | | | 10 | | |
Ending balance
|
| | | $ | 9,386 | | | | | $ | 8,552 | | | | | $ | 7,979 | | |
Allowance for loan losses as a % of total loans(2)
|
| | | | 0.73% | | | | | | 0.69% | | | | | | 1.09% | | |
Allowance for loan losses as a % of non-accrual loans(2)
|
| | | | 153% | | | | | | 122% | | | | | | 197% | | |
Non-accrual loans as a % of total loans(2)
|
| | | | 0.48% | | | | | | 0.56% | | | | | | 0.56% | | |
Non-performing assets as a % of total loans, loans held for sale and other real estate owned
|
| | | | 0.48% | | | | | | 0.56% | | | | | | 0.55% | | |
Non-performing assets as a % of total assets
|
| | | | 0.42% | | | | | | 0.47% | | | | | | 0.46% | | |
Non-performing assets, purchased credit-impaired loans 90 days or more past due and still accruing and performing TDRs, to total loans held for sale and investment
|
| | | | 0.71% | | | | | | 0.80% | | | | | | 0.66% | | |
| | |
September 30,
|
| |||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Selected Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Securities available-for-sale, at fair value
|
| | | $ | 7,747 | | | | | $ | 6,035 | | | | | $ | 911 | | |
Securities held-to-maturity
|
| | | | 8,611 | | | | | | 10,727 | | | | | | 12,030 | | |
Loans held for investment
|
| | | | 1,247,125 | | | | | | 725,019 | | | | | | 720,442 | | |
Total assets
|
| | | | 1,484,641 | | | | | | 851,606 | | | | | | 848,836 | | |
Total deposits
|
| | | | 1,164,662 | | | | | | 664,760 | | | | | | 650,286 | | |
Total stockholders’ equity
|
| | | | 122,529 | | | | | | 78,043 | | | | | | 71,950 | | |
| | |
Year Ended September 30,
|
| |||||||||||||||
(amounts in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Selected Operating Data: | | | | | | | | | | | | | | | | | | | |
Total interest income
|
| | | $ | 48,675 | | | | | $ | 40,133 | | | | | $ | 34,497 | | |
Total interest expense
|
| | | | 6,967 | | | | | | 13,011 | | | | | | 12,076 | | |
Net interest income
|
| | | | 41,708 | | | | | | 27,122 | | | | | | 22,421 | | |
Provision for loan losses
|
| | | | 1,000 | | | | | | 1,250 | | | | | | 650 | | |
Total non-interest income
|
| | | | 3,349 | | | | | | 1,364 | | | | | | 4,770 | | |
Total non-interest expense
|
| | | | 30,005 | | | | | | 21,022 | | | | | | 15,887 | | |
Income before income taxes
|
| | | | 14,052 | | | | | | 6,214 | | | | | | 10,654 | | |
Income tax expense
|
| | | | 3,201 | | | | | | 1,240 | | | | | | 2,569 | | |
Net income
|
| | | | 10,851 | | | | | | 4,974 | | | | | | 8,085 | | |
Selected Financial Data and Other Data: | | | | | | | | | | | | | | | | | | | |
Return on average assets
|
| | | | 0.99% | | | | | | 0.58% | | | | | | 1.16% | | |
Return on average equity
|
| | | | 11.53% | | | | | | 6.63% | | | | | | 12.71% | | |
Yield on average interest earning assets
|
| | | | 4.63% | | | | | | 4.87% | | | | | | 5.07% | | |
Cost of average interest bearing liabilities
|
| | | | 0.81% | | | | | | 1.87% | | | | | | 2.07% | | |
Net interest rate spread
|
| | | | 3.82% | | | | | | 3.00% | | | | | | 3.00% | | |
Net interest rate margin
|
| | | | 3.97% | | | | | | 3.29% | | | | | | 3.30% | | |
Average equity to average assets
|
| | | | 8.61% | | | | | | 8.80% | | | | | | 9.11% | | |
| | |
Year Ended September 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2019
|
| |||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Average
Balance |
| |
Interest
|
| |
Average
Rate |
| |
Average
Balance |
| |
Interest
|
| |
Average
Rate |
| |
Average
Balance |
| |
Interest
|
| |
Average
Rate |
| |||||||||||||||||||||||||||
Interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans(1)(2) | | | | $ | 934,066 | | | | | $ | 47,685 | | | | | | 5.11% | | | | | $ | 717,834 | | | | | $ | 38,641 | | | | | | 5.38% | | | | | $ | 616,353 | | | | | $ | 32,660 | | | | | | 5.30% | | |
Investment securities(1)
|
| | | | 16,845 | | | | | | 685 | | | | | | 4.07% | | | | | | 13,907 | | | | | | 523 | | | | | | 3.76% | | | | | | 12,851 | | | | | | 427 | | | | | | 3.32% | | |
Interest-earning balances and other
|
| | | | 99,348 | | | | | | 305 | | | | | | 0.31% | | | | | | 92,506 | | | | | | 969 | | | | | | 1.05% | | | | | | 51,209 | | | | | | 1,410 | | | | | | 2.75% | | |
Total interest-earning assets
|
| | | | 1,050,259 | | | | | | 48,675 | | | | | | 4.63% | | | | | | 824,247 | | | | | | 40,133 | | | | | | 4.87% | | | | | | 680,413 | | | | | | 34,497 | | | | | | 5.07% | | |
Other assets
|
| | | | 42,675 | | | | | | | | | | | | | | | | | | 27,807 | | | | | | | | | | | | | | | | | | 17,453 | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 1,092,934 | | | | | | | | | | | | | | | | | $ | 852,054 | | | | | | | | | | | | | | | | | $ | 697,866 | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings, NOW and money market deposits
|
| | | $ | 333,996 | | | | | $ | 903 | | | | | | 0.27% | | | | | $ | 179,106 | | | | | $ | 1,445 | | | | | | 0.81% | | | | | $ | 160,073 | | | | | $ | 2,510 | | | | | | 1.57% | | |
Time deposits
|
| | | | 380,473 | | | | | | 3,822 | | | | | | 1.00% | | | | | | 418,384 | | | | | | 9,180 | | | | | | 2.19% | | | | | | 302,124 | | | | | | 6,725 | | | | | | 2.23% | | |
Total interest-bearing deposits
|
| | | | 714,469 | | | | | | 4,725 | | | | | | 0.66% | | | | | | 597,490 | | | | | | 10,625 | | | | | | 1.78% | | | | | | 462,197 | | | | | | 9,235 | | | | | | 2.00% | | |
Borrowings
|
| | | | 121,246 | | | | | | 955 | | | | | | 0.79% | | | | | | 99,550 | | | | | | 2,386 | | | | | | 2.40% | | | | | | 120,376 | | | | | | 2,841 | | | | | | 2.36% | | |
Subordinated debentures
|
| | | | 24,088 | | | | | | 1,287 | | | | | | 5.34% | | | | | | — | | | | | | — | | | | | | 0.00% | | | | | | — | | | | | | — | | | | | | 0.00% | | |
Total interest-bearing liabilities
|
| | | | 859,803 | | | | | | 6,967 | | | | | | 0.81% | | | | | | 697,040 | | | | | | 13,011 | | | | | | 1.87% | | | | | | 582,573 | | | | | | 12,076 | | | | | | 2.07% | | |
Non-interest-bearing deposits
|
| | | | 128,540 | | | | | | | | | | | | | | | | | | 72,007 | | | | | | | | | | | | | | | | | | 46,132 | | | | | | | | | | | | | | |
Other liabilities
|
| | | | 10,519 | | | | | | | | | | | | | | | | | | 8,031 | | | | | | | | | | | | | | | | | | 5,573 | | | | | | | | | | | | | | |
Stockholders’ equity
|
| | | | 94,072 | | | | | | | | | | | | | | | | | | 74,976 | | | | | | | | | | | | | | | | | | 63,588 | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity
|
| | | $ | 1,092,934 | | | | | | | | | | | | | | | | | $ | 852,054 | | | | | | | | | | | | | | | | | $ | 697,866 | | | | | | | | | | | | | | |
Net interest income and interest rate spread
|
| | | | | | | | | | | | | | | | 3.82% | | | | | | | | | | | | | | | | | | 3.00% | | | | | | | | | | | | | | | | | | 3.00% | | |
Net interest margin
|
| | | | | | | | | $ | 41,708 | | | | | | 3.97% | | | | | | | | | | | $ | 27,122 | | | | | | 3.29% | | | | | | | | | | | $ | 22,421 | | | | | | 3.30% | | |
| | |
2021 vs. 2020
|
| |
2020 vs. 2019
|
| ||||||||||||||||||||||||||||||
| | |
Increase (decrease) due to change in:
|
| |||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Average
volume |
| |
Average
rate |
| |
Total
|
| |
Average
volume |
| |
Average
rate |
| |
Total
|
| ||||||||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 11,127 | | | | | $ | (2,083) | | | | | $ | 9,044 | | | | | $ | 5,455 | | | | | $ | 526 | | | | | $ | 5,981 | | |
Investment securities
|
| | | | 117 | | | | | | 45 | | | | | | 162 | | | | | | 37 | | | | | | 59 | | | | | | 96 | | |
Interest-earning balances and other
|
| | | | 67 | | | | | | (731) | | | | | | (664) | | | | | | 539 | | | | | | (980) | | | | | | (441) | | |
Total interest income
|
| | | | 11,311 | | | | | | (2,769) | | | | | $ | 8,542 | | | | | | 6,031 | | | | | | (395) | | | | | $ | 5,636 | | |
| | |
2021 vs. 2020
|
| |
2020 vs. 2019
|
| ||||||||||||||||||||||||||||||
| | |
Increase (decrease) due to change in:
|
| |||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Average
volume |
| |
Average
rate |
| |
Total
|
| |
Average
volume |
| |
Average
rate |
| |
Total
|
| ||||||||||||||||||
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings, NOW and money market deposits
|
| | | $ | 780 | | | | | $ | (1,322) | | | | | $ | (542) | | | | | $ | 269 | | | | | $ | (1,334) | | | | | $ | (1,065) | | |
Time deposits
|
| | | | (775) | | | | | | (4,583) | | | | | | (5,358) | | | | | | 2,553 | | | | | | (98) | | | | | | 2,455 | | |
Borrowings
|
| | | | 434 | | | | | | (1,865) | | | | | | (1,431) | | | | | | (370) | | | | | | (85) | | | | | | (455) | | |
Subordinated debentures
|
| | | | 1,287 | | | | | | — | | | | | | 1,287 | | | | | | — | | | | | | — | | | | | | — | | |
Total interest expense
|
| | | | 1,726 | | | | | | (7,770) | | | | | | (6,044) | | | | | | 2,452 | | | | | | (1,517) | | | | | $ | 935 | | |
Net increase in net interest income
|
| | | $ | 9,585 | | | | | $ | 5,001 | | | | | $ | 14,586 | | | | | $ | 3,579 | | | | | $ | 1,122 | | | | | $ | 4,701 | | |
|
| | |
Year Ended September 30,
|
| |||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Loan fees and service charges
|
| | | $ | 703 | | | | | $ | 301 | | | | | $ | 185 | | |
Loan servicing income
|
| | | | 504 | | | | | | 84 | | | | | | 160 | | |
Service charges on deposit accounts
|
| | | | 127 | | | | | | 62 | | | | | | 64 | | |
Net gain on sale of investments available-for-sale
|
| | | | 240 | | | | | | — | | | | | | — | | |
Net gain on sale of loans held-for-sale
|
| | | | 1,307 | | | | | | 917 | | | | | | 4,361 | | |
Other income
|
| | | | 468 | | | | | | — | | | | | | — | | |
Total non-interest income
|
| | | $ | 3,349 | | | | | $ | 1,364 | | | | | $ | 4,770 | | |
| | |
Year Ended September 30,
|
| |||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Salaries and employee benefits
|
| | | $ | 15,009 | | | | | $ | 11,182 | | | | | $ | 9,041 | | |
Occupancy and equipment
|
| | | | 4,978 | | | | | | 4,462 | | | | | | 2,835 | | |
Data processing
|
| | | | 1,280 | | | | | | 911 | | | | | | 662 | | |
Advertising and promotion
|
| | | | 118 | | | | | | 296 | | | | | | 487 | | |
Acquisition costs
|
| | | | 4,430 | | | | | | 450 | | | | | | 737 | | |
Professional fees
|
| | | | 1,706 | | | | | | 2,070 | | | | | | 775 | | |
Other
|
| | | | 2,484 | | | | | | 1,651 | | | | | | 1,350 | | |
Total non-interest expense
|
| | | $ | 30,005 | | | | | $ | 21,022 | | | | | $ | 15,887 | | |
| | |
Balance at September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2019
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Fair Value
|
| |
Amortized
Cost |
| |
Fair Value
|
| |
Amortized
Cost |
| |
Fair Value
|
| ||||||||||||||||||
Investment securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 722 | | | | | $ | 833 | | | | | $ | 838 | | | | | $ | 962 | | | | | $ | 883 | | | | | $ | 911 | | |
Corporate bonds
|
| | | | 6,700 | | | | | | 6,914 | | | | | | 5,000 | | | | | | 5,073 | | | | | | — | | | | | | — | | |
Total investment securities available-for-sale
|
| | | | 7,422 | | | | | | 7,747 | | | | | | 5,838 | | | | | | 6,035 | | | | | | 883 | | | | | | 911 | | |
| | |
Balance at September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2019
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Fair Value
|
| |
Amortized
Cost |
| |
Fair Value
|
| |
Amortized
Cost |
| |
Fair Value
|
| ||||||||||||||||||
Investment securities held-to-maturity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | | 2,417 | | | | | | 2,491 | | | | | | 4,478 | | | | | | 4,596 | | | | | | 5,729 | | | | | | 5,748 | | |
U.S. GSE commercial mortgage-backed securities
|
| | | | 2,694 | | | | | | 2,869 | | | | | | 2,749 | | | | | | 3,002 | | | | | | 2,801 | | | | | | 2,904 | | |
Corporate bonds
|
| | | | 3,500 | | | | | | 3,505 | | | | | | 3,500 | | | | | | 3,533 | | | | | | 3,500 | | | | | | 3,539 | | |
Total investment securities held-to-maturity
|
| | | | 8,611 | | | | | | 8,865 | | | | | | 10,727 | | | | | | 11,131 | | | | | | 12,030 | | | | | | 12,191 | | |
Total investment securities
|
| | | $ | 16,033 | | | | | $ | 16,612 | | | | | $ | 16,565 | | | | | $ | 17,166 | | | | | $ | 12,913 | | | | | $ | 13,102 | | |
|
| | |
Balance at September 30, 2021
|
| |||||||||||||||||||||
| | |
Available-for-Sale
|
| |
Held-to-Maturity
|
| ||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| ||||||||||||
U.S. GSE residential mortgage-backed securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Due within one year
|
| | | $ | 25 | | | | | | -0.99% | | | | | $ | — | | | | | | — | | |
Due after one year through five years
|
| | | | 1 | | | | | | -3.75% | | | | | | — | | | | | | — | | |
Due after ten years
|
| | | | 696 | | | | | | 2.44% | | | | | | 2,417 | | | | | | 2.29% | | |
| | | | | 722 | | | | | | 2.01% | | | | | | 2,417 | | | | | | 2.29% | | |
U.S. GSE commercial mortgage-backed securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Due after one year through five years
|
| | | | — | | | | | | — | | | | | | 2,694 | | | | | | 2.68% | | |
| | | | | — | | | | | | — | | | | | | 2,694 | | | | | | 2.68% | | |
Corporate bonds | | | | | | | | | | | | | | | | | | | | | | | | | |
Due after one year through five years
|
| | | | — | | | | | | — | | | | | | 1,500 | | | | | | 5.00% | | |
Due after five years through ten years
|
| | | | 6,700 | | | | | | 4.61% | | | | | | 2,000 | | | | | | 5.25% | | |
Due after ten years
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 6,700 | | | | | | 4.61% | | | | | | 3,500 | | | | | | 5.14% | | |
Total investment securities
|
| | | $ | 7,422 | | | | | | 4.36% | | | | | $ | 8,611 | | | | | | 3.57% | | |
| | |
Balance at September 30, 2020
|
| |||||||||||||||||||||
| | |
Available-for-Sale
|
| |
Held-to-Maturity
|
| ||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| ||||||||||||
U.S. GSE residential mortgage-backed securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Due after five years through ten years
|
| | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | |
Due after one year through five years
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Due after ten years
|
| | | | 838 | | | | | | 2.73% | | | | | | 4,478 | | | | | | 2.19% | | |
| | | | | 838 | | | | | | 2.73% | | | | | | 4,478 | | | | | | 2.19% | | |
U.S. GSE commercial mortgage-backed securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Due after five years through ten years
|
| | | | — | | | | | | — | | | | | | 2,749 | | | | | | 2.68% | | |
| | | | | — | | | | | | — | | | | | | 2,749 | | | | | | 2.68% | | |
Corporate bonds | | | | | | | | | | | | | | | | | | | | | | | | | |
Due after one year through five years
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Due after five years through ten years
|
| | | | 5,000 | | | | | | 5.75% | | | | | | 3,500 | | | | | | 5.79% | | |
Due after ten years
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 5,000 | | | | | | 5.75% | | | | | | 3,500 | | | | | | 5.14% | | |
Total investment securities
|
| | | $ | 5,838 | | | | | | 5.32% | | | | | $ | 10,727 | | | | | | 3.49% | | |
| | |
Balance at September 30,
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 444,011 | | | | | $ | 454,073 | | | | | $ | 465,422 | | | | | $ | 372,673 | | | | | $ | 238,251 | | |
Multi-family
|
| | | | 266,294 | | | | | | 136,539 | | | | | | 139,504 | | | | | | 132,301 | | | | | | 120,143 | | |
Commercial
|
| | | | 348,641 | | | | | | 113,615 | | | | | | 108,197 | | | | | | 48,669 | | | | | | 59,190 | | |
Total real estate
|
| | | | 1,058,946 | | | | | | 704,227 | | | | | | 713,123 | | | | | | 553,643 | | | | | | 417,584 | | |
Commercial and industrial
|
| | | | 172,274 | | | | | | 21,100 | | | | | | 7,353 | | | | | | 6,736 | | | | | | 5,715 | | |
Construction
|
| | | | 15,374 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | 11 | | | | | | 24 | | | | | | 501 | | | | | | 24 | | | | | | 86 | | |
Gross loans
|
| | | | 1,246,605 | | | | | | 725,351 | | | | | | 720,977 | | | | | | 560,403 | | | | | | 423,385 | | |
Net deferred loan costs (fees)
|
| | | | 520 | | | | | | (332) | | | | | | (535) | | | | | | (1,023) | | | | | | (758) | | |
Total loans held for investment
|
| | | $ | 1,247,125 | | | | | $ | 725,019 | | | | | $ | 720,442 | | | | | $ | 559,380 | | | | | $ | 422,627 | | |
| | |
Balance at September 30, 2021
|
| |||||||||||||||||||||
(in thousands)
|
| |
Due within
One Year |
| |
Due After
One Year But Within Five Years |
| |
Due After
Five Years |
| |
Total
|
| ||||||||||||
By Loan Type: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | 29,689 | | | | | $ | 129,503 | | | | | $ | 13,082 | | | | | $ | 172,274 | | |
Real estate construction
|
| | | | 8,761 | | | | | | 2,789 | | | | | | 3,824 | | | | | | 15,374 | | |
Total
|
| | | $ | 38,450 | | | | | $ | 132,292 | | | | | $ | 16,906 | | | | | $ | 187,648 | | |
By Interest Rate Type: | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed rate
|
| | | $ | 21,986 | | | | | $ | 123,823 | | | | | $ | 183 | | | | | $ | 145,992 | | |
Variable rate
|
| | | | 16,464 | | | | | | 8,469 | | | | | | 16,723 | | | | | | 41,656 | | |
Total
|
| | | $ | 38,450 | | | | | $ | 132,292 | | | | | $ | 16,906 | | | | | $ | 187,648 | | |
| | |
Balance at September 30, 2020
|
| |||||||||||||||||||||
(in thousands)
|
| |
Due within
One Year |
| |
Due After
One Year But Within Five Years |
| |
Due After
Five Years |
| |
Total
|
| ||||||||||||
By Loan Type: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | $ | 2,322 | | | | | $ | 18,123 | | | | | $ | 655 | | | | | $ | 21,100 | | |
Real estate construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 2,322 | | | | | $ | 18,123 | | | | | $ | 655 | | | | | $ | 21,100 | | |
By Interest Rate Type: | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed rate
|
| | | $ | 1,000 | | | | | $ | 17,825 | | | | | $ | 206 | | | | | $ | 19,031 | | |
Variable rate
|
| | | | 1,322 | | | | | | 298 | | | | | | 449 | | | | | | 2,069 | | |
Total
|
| | | $ | 2,322 | | | | | $ | 18,123 | | | | | $ | 655 | | | | | $ | 21,100 | | |
| | |
Balance at September 30,
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
Nonaccrual loans
|
| | | $ | 7,028 | | | | | $ | 953 | | | | | $ | 1,613 | | | | | $ | — | | | | | $ | — | | |
Loans greater than 90 days past due
|
| | | | — | | | | | | 296 | | | | | | 629 | | | | | | — | | | | | | — | | |
Total nonperforming assets
|
| | | $ | 7,028 | | | | | $ | 1,249 | | | | | $ | 2,242 | | | | | $ | — | | | | | $ | — | | |
Performing TDRs
|
| | | $ | 455 | | | | | $ | 454 | | | | | $ | 454 | | | | | $ | 354 | | | | | $ | 562 | | |
Nonaccrual loans as a percentage of loans held-for-investment
|
| | | | 0.56% | | | | | | 0.13% | | | | | | 0.22% | | | | | | 0.00% | | | | | | 0.00% | | |
Non-performing assets as a percentage of total assets
|
| | | | 0.47% | | | | | | 0.15% | | | | | | 0.26% | | | | | | 0.00% | | | | | | 0.00% | | |
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Amount
|
| |
% of
Gross Loans |
| |
Amount
|
| |
% of
Gross Loans |
| |
Amount
|
| |
% of
Gross Loans |
| |
Amount
|
| |
% of
Gross Loans |
| |
Amount
|
| |
% of
Gross Loans |
| ||||||||||||||||||||||||||||||
Residential real estate
|
| | | $ | 4,155 | | | | | | 0.94% | | | | | $ | 5,103 | | | | | | 1.12% | | | | | $ | 4,647 | | | | | | 1.00% | | | | | $ | 4,363 | | | | | | 1.17% | | | | | $ | 2,659 | | | | | | 1.12% | | |
Multi-family
|
| | | | 2,433 | | | | | | 0.91% | | | | | | 1,506 | | | | | | 1.10% | | | | | | 1,215 | | | | | | 0.87% | | | | | | 1,478 | | | | | | 1.12% | | | | | | 1,422 | | | | | | 1.18% | | |
Commercial real estate
|
| | | | 1,884 | | | | | | 0.54% | | | | | | 1,221 | | | | | | 1.07% | | | | | | 1,193 | | | | | | 1.10% | | | | | | 500 | | | | | | 1.03% | | | | | | 651 | | | | | | 1.10% | | |
Commercial and industrial
|
| | | | 79 | | | | | | 0.05% | | | | | | 38 | | | | | | 0.18% | | | | | | 75 | | | | | | 1.02% | | | | | | 152 | | | | | | 2.26% | | | | | | 62 | | | | | | 1.08% | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | 1 | | | | | | 9.09% | | | | | | 1 | | | | | | 4.17% | | | | | | 13 | | | | | | 2.59% | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 1.16% | | |
Total allowance for loan losses
|
| | | $ | 8,552 | | | | | | 0.69% | | | | | $ | 7,869 | | | | | | 1.08% | | | | | $ | 7,143 | | | | | | 0.99% | | | | | $ | 6,493 | | | | | | 1.16% | | | | | $ | 4,795 | | | | | | 1.13% | | |
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
Beginning balance
|
| | | $ | 7,869 | | | | | $ | 7,143 | | | | | $ | 6,493 | | | | | $ | 4,795 | | | | | $ | 3,419 | | |
Provision for loan losses
|
| | | | 1,000 | | | | | | 1,250 | | | | | | 650 | | | | | | 1,698 | | | | | | 1,376 | | |
Charge-Offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate
|
| | | | (267) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Multi-family
|
| | | | (32) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate
|
| | | | (30) | | | | | | (224) | | | | | | — | | | | | | — | | | | | | — | | |
Commercial and industrial
|
| | | | — | | | | | | (300) | | | | | | — | | | | | | — | | | | | | — | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total loan charge-offs
|
| | | | (329) | | | | | | (524) | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial
|
| | | | 12 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total recoveries
|
| | | | 12 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total net charge-offs
|
| | | | (317) | | | | | | (524) | | | | | | — | | | | | | — | | | | | | — | | |
Ending balance
|
| | | $ | 8,552 | | | | | $ | 7,869 | | | | | $ | 7,143 | | | | | $ | 6,493 | | | | | $ | 4,795 | | |
Allowance for loan losses to total loans held-for-investment(1)(2)
|
| | | | 0.69% | | | | | | 1.09% | | | | | | 0.99% | | | | | | 1.16% | | | | | | 1.13% | | |
Net charge-offs to average loans held-for-investment
|
| | | | 0.03% | | | | | | 0.07% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
| | |
Year Ended September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2019
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Average
Balance |
| |
Average
Rate |
| |
Average
Balance |
| |
Average
Rate |
| |
Average
Balance |
| |
Average
Rate |
| ||||||||||||||||||
Non-interest bearing demand
|
| | | $ | 128,540 | | | | | | 0.00% | | | | | $ | 72,007 | | | | | | 0.00% | | | | | $ | 46,132 | | | | | | 0.00% | | |
Savings
|
| | | | 48,995 | | | | | | 0.20% | | | | | | 41,223 | | | | | | 0.45% | | | | | | 25,688 | | | | | | 1.01% | | |
NOW
|
| | | | 153,595 | | | | | | 0.26% | | | | | | 37,774 | | | | | | 0.63% | | | | | | 40,764 | | | | | | 0.86% | | |
Money market
|
| | | | 131,406 | | | | | | 0.30% | | | | | | 100,109 | | | | | | 1.02% | | | | | | 93,621 | | | | | | 2.03% | | |
Time deposits
|
| | | | 380,473 | | | | | | 1.00% | | | | | | 418,384 | | | | | | 2.19% | | | | | | 302,124 | | | | | | 2.23% | | |
Total average deposits
|
| | | $ | 843,009 | | | | | | 0.56% | | | | | $ | 669,497 | | | | | | 1.59% | | | | | $ | 508,329 | | | | | | 1.82% | | |
| | |
September 30,
|
| |||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Three months or less
|
| | | $ | 69,530 | | | | | $ | 59,075 | | | | | $ | 38,372 | | |
Over three months through six months
|
| | | | 66,506 | | | | | | 73,907 | | | | | | 30,459 | | |
Over six months through 12 months
|
| | | | 51,485 | | | | | | 83,940 | | | | | | 94,411 | | |
Over 12 months
|
| | | | 90,603 | | | | | | 39,111 | | | | | | 84,311 | | |
Total
|
| | | $ | 278,124 | | | | | $ | 256,033 | | | | | $ | 247,553 | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Less than
One Year |
| |
More Than
One Year but Less than Three Years |
| |
More Than
Three Years but Less than Five Years |
| |
After
Five Years |
| |
Total
|
| |||||||||||||||
Time deposits
|
| | | $ | 277,431 | | | | | $ | 74,307 | | | | | $ | 25,106 | | | | | $ | 992 | | | | | $ | 377,836 | | |
Subordinated debentures
|
| | | | | | | | | | | | | | | | | | | | | | 24,513 | | | | | | 24,513 | | |
FHLB borrowings
|
| | | | 4,000 | | | | | | 30,900 | | | | | | 7,080 | | | | | | | | | | | | 41,980 | | |
FRB borrowings
|
| | | | 10,980 | | | | | | | | | | | | 106,682 | | | | | | | | | | | | 117,662 | | |
Operating leases
|
| | | | 1,886 | | | | | | 3,869 | | | | | | 3,572 | | | | | | 4,729 | | | | | | 14,056 | | |
Standby letters of credit
|
| | | | 786 | | | | | | | | | | | | | | | | | | | | | | | | 786 | | |
Unused lines of credit(1)
|
| | | | 5,109 | | | | | | 266 | | | | | | 2 | | | | | | 5,316 | | | | | | 10,693 | | |
Total contractual obligations
|
| | | $ | 300,192 | | | | | $ | 109,342 | | | | | $ | 142,442 | | | | | $ | 35,550 | | | | | $ | 587,526 | | |
| | |
September 30,
|
| |||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Total capital
|
| | | $ | 132,554 | | | | | $ | 95,079 | | | | | $ | 89,295 | | |
Tier 1 capital
|
| | | | 123,666 | | | | | | 89,275 | | | | | | 83,424 | | |
Common equity tier 1 capital
|
| | | | 123,666 | | | | | | 89,275 | | | | | | 83,424 | | |
Total capital ratio
|
| | | | 15.59% | | | | | | 20.57% | | | | | | 19.07% | | |
Tier 1 capital ratio
|
| | | | 14.54% | | | | | | 19.32% | | | | | | 17.81% | | |
Common equity tier 1 capital ratio
|
| | | | 14.54% | | | | | | 19.32% | | | | | | 17.81% | | |
Tier 1 leverage ratio
|
| | | | 9.45% | | | | | | 11.22% | | | | | | 10.47% | | |
| | |
As of or For the Years Ended September 30,
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| |||||||||||||||
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans originated
|
| | | $ | 157,461 | | | | | $ | 268,283 | | | | | $ | 334,099 | | | | | $ | 96,031 | | | | | $ | 104,567 | | |
Loans sold
|
| | | | 79,286 | | | | | | 134,464 | | | | | | 194,978 | | | | | | 36,982 | | | | | | 36,375 | | |
Name and Position with Hanover
|
| |
Age
|
| |
Principal Occupation for Past Five Years
|
| |
Term of Office
Since — Expires(1) |
|
Michael P. Puorro, Chairman and CEO | | |
62
|
| |
Chairman and CEO of Hanover and Hanover Bank
|
| |
2012 – 2022
|
|
Varkey Abraham, Director | | |
68
|
| | Owner of Shoe Wholesale/Retail Company and Real Estate Investor | | |
2008 – 2024
|
|
Robert Golden, Director | | |
58
|
| | Founder and CEO of TREO Brands and President of Golden Properties Group LLC | | |
2014 – 2024
|
|
Ahron H. Haspel, Director
|
| |
79
|
| | Attorney and Certified Public Accountant, Retired Partner of the law firm of Jones Day and KPMG, LLP | | |
2012 – 2024
|
|
Michael Katz, Director | | |
83
|
| | Physician, Former President of Ear Nose and Throat Associates of New York, P.C. | | |
2012 – 2023
|
|
Metin Negrin, Director | | |
56
|
| | Founder, Owner and President of Lexin Capital, a real estate investment, redevelopment and management company, Former Chairman of Savoy Bank | | |
2021 – 2022
|
|
Philip Okun, Director | | |
67
|
| | Former President of Polimeni International and Chief Operating Officer of Skyline Management; Founding Partner of Realty Connect USA, LLC | | |
2008 – 2023
|
|
Elena Sisti, Director | | |
66
|
| | Managing Partner of Durel Associates, AGEM LLC, and Riviera Development Corporation, real estate investment and management companies in New Jersey, Founder and Former Director of Savoy Bank | | |
2021 – 2022
|
|
John R. Sorrenti, Director | | |
71
|
| | Architect, Founder and President of JRS Architect, P.C. | | |
2012 – 2023
|
|
Name
|
| |
Age
|
| |
Position with Hanover
|
| |
Term of Office
Since — Expires(1) |
|
Brian K. Finneran | | |
64
|
| | President | | |
2017
|
|
Lance P. Burke | | |
42
|
| | Executive Vice President, Chief Financial Officer | | |
2021
|
|
Denise Chardavoyne | | |
44
|
| | Executive Vice President, Chief Operations Officer | | |
2018
|
|
Kevin Corbett | | |
62
|
| | Executive Vice President, Chief Credit Officer | | |
2020
|
|
Lisa A. Diiorio | | |
58
|
| | First Senior Vice President, Chief Accounting Officer | | |
2016
|
|
Michael Locorriere | | |
53
|
| | Executive Vice President, Chief Municipal Officer | | |
2020
|
|
Alice Rouse | | |
56
|
| | Executive Vice President, Chief Risk Officer | | |
2017
|
|
McClelland Wilcox | | |
50
|
| | Senior Executive Vice President, Chief Lending & Revenue Officer | | |
2021
|
|
Name and Principal Position
|
| |
Year
|
| |
Salary ($)
|
| |
Bonus ($)
|
| |
Stock
Awards ($) |
| |
Option
Awards |
| |
Non-equity
Incentive Plan Compensation ($) |
| |
Change in
Pension Value and Non-Qualified Deferred Compensation Earnings (4) |
| |
All Other
Compensation (4) |
| |
Total ($)
|
| |||||||||||||||||||||||||||
(a)
|
| |
(b)
|
| |
(c)
|
| |
(d)
|
| |
(e)
|
| |
(f)
|
| |
(g)
|
| |
(h)
|
| |
(i)
|
| |
(j)
|
| |||||||||||||||||||||||||||
Michael P. Puorro, Chairman and Chief Executive Officer
|
| | | | 2021 | | | | | | 570,769 | | | | | | 247,500 | | | | | | 82,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 36,662 | | | | | | 937,431 | | |
| | | 2020 | | | | | | 534,615 | | | | | | 311,200 | | | | | | 103,742 | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,194 | | | | | | 977,751 | | | ||
| | | 2019 | | | | | | 486,346 | | | | | | 304,853 | | | | | | 669,750 | | | | | | — | | | | | | — | | | | | | — | | | | | | 24,790 | | | | | | 1,485,739 | | | ||
Brian K. Finneran, President
|
| | | | 2021 | | | | | | 417,308 | | | | | | 120,000 | | | | | | 39,996 | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,706 | | | | | | 603,010 | | |
| | | 2020 | | | | | | 381,539 | | | | | | 150,000 | | | | | | 51,010 | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,506 | | | | | | 608,055 | | | ||
| | | 2019 | | | | | | 331,398 | | | | | | 138,825 | | | | | | 280,782 | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,306 | | | | | | 776,311 | | | ||
Kevin Corbett,
Executive Vice President and Chief Credit Officer(3) |
| | | | 2021 | | | | | | 295,385 | | | | | | 66,500 | | | | | | 21,384 | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,892 | | | | | | 398,161 | | |
| | | 2020 | | | | | | 204,981 | | | | | | — | | | | | | 65,370 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,823 | | | | | | 275,174 | | | ||
| | | 2019 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Outstanding Equity Awards at Fiscal Year-End
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Number of
securities underlying unexercised options (#) exerciseable |
| |
Number of
securities underlying unexercised options (#) un-exerciseable |
| |
Equity
incentive plan awards: Number of securities underlying unexercised unearned options |
| |
Option
exercise price |
| |
Option
expiration date |
| |
Number of
shares or units of stock that have not vested |
| |
Market value
of shares or units of stock that have not vested |
| |
Equity
incentive plan awards: Number of unearned shares, units or other rights that have not vested |
| |
Equity
incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested |
| |||||||||||||||||||||||||||
| | |
(#)
|
| |
(#)
|
| |
(#)
|
| |
($)
|
| |
(#)
|
| |
(#)
|
| |
($)
|
| |
(#)
|
| |
(#)
|
| |||||||||||||||||||||||||||
(a)
|
| |
(b)
|
| |
(c)
|
| |
(d)
|
| |
(e)
|
| |
(f)
|
| |
(g)
|
| |
(h)
|
| |
(i)
|
| |
(j)
|
| |||||||||||||||||||||||||||
Michael P. Puorro
|
| | | | 71,840 | | | | | | — | | | | | | — | | | | | | 10.00 | | | | | | 10/1/2024 | | | | | | 18,705 | | | | | | 345,855 | | | | | | — | | | | | | — | | |
Brian K. Finneran
|
| | | | 20,000 | | | | | | — | | | | | | — | | | | | | 16.25 | | | | | | 7/24/2027 | | | | | | 8,318 | | | | | | 153,800 | | | | | | — | | | | | | — | | |
Kevin Corbett
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,972 | | | | | | 54,952 | | | | | | — | | | | | | — | | |
Director Compensation
|
| ||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Fees Earned
or Paid in Cash |
| |
Stock
Awards |
| |
Option
Awards |
| |
Non-equity
Incentive Plan Compensation |
| |
Non-Qualified
Deferred Compensation Earnings |
| |
All Other
Compensation |
| |
Total
|
| |||||||||||||||||||||
| | |
($)
|
| |
($)
|
| |
($)
|
| |
($)
|
| |
($)
|
| |
($)
|
| |
($)
|
| |||||||||||||||||||||
(a) | | |
(b)
|
| |
(c)
|
| |
(d)
|
| |
(e)
|
| |
(f)
|
| |
(g)
|
| |
(h)
|
| |||||||||||||||||||||
Varkey Abraham | | | | | 28,000 | | | | | | 17,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45,400 | | |
Frank V. Carone* | | | | | 30,000 | | | | | | 17,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,400 | | |
Robert Golden | | | | | 49,350 | | | | | | 17,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 66,750 | | |
Ahron H. Haspel | | | | | 43,900 | | | | | | 17,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 61,300 | | |
Michael Katz | | | | | 31,850 | | | | | | 17,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 49,250 | | |
Metin Negrin | | | | | 11,800 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,800 | | |
Philip Okun | | | | | 33,350 | | | | | | 17,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 50,750 | | |
Elena Sisti | | | | | 12,650 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,650 | | |
John R. Sorrenti | | | | | 31,350 | | | | | | 17,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 48,750 | | |
Name
|
| |
Number of
Shares Beneficially Owned |
| |
Percentage
of Class |
| ||||||
Directors | | | | | | | | | | | | | |
Michael P. Puorro
|
| | | | 323,563(1) | | | | | | 5.48% | | |
Varkey Abraham
|
| | | | 49,851(2) | | | | | | 0.85% | | |
Robert Golden
|
| | | | 371,540(3) | | | | | | 6.36% | | |
Ahron H. Haspel
|
| | | | 61,706(4) | | | | | | 1.06% | | |
Michael Katz
|
| | | | 241,610(5) | | | | | | 4.14% | | |
Metin Negrin
|
| | | | 223,995(6) | | | | | | 3.84% | | |
Philip Okun
|
| | | | 36,979(7) | | | | | | 0.63% | | |
Elena Sisti
|
| | | | 132,768(8) | | | | | | 2.28% | | |
John R. Sorrenti
|
| | | | 38,057(9) | | | | | | 0.65% | | |
Executive Officers | | | | | | | | | | | | | |
Lance P. Burke
|
| | | | 14,934(10) | | | | | | 0.26% | | |
Name
|
| |
Number of
Shares Beneficially Owned |
| |
Percentage
of Class |
| ||||||
Denise Chardavoyne
|
| | | | 16,750(11) | | | | | | 0.29% | | |
Kevin Corbett
|
| | | | 13,438(12) | | | | | | 0.23% | | |
Lisa A. DiIorio
|
| | | | 19,747(13) | | | | | | 0.34% | | |
Brian K. Finneran
|
| | | | 104,529(14) | | | | | | 1.79% | | |
Michael P. Locorriere
|
| | | | 14,466(15) | | | | | | 0.25% | | |
Alice T. Rouse
|
| | | | 28,487(16) | | | | | | 0.49% | | |
McClelland Wilcox
|
| | | | 126,329(17) | | | | | | 2.14% | | |
All Executive Officer and Directors as a Group (17 persons)
|
| | | | 1,818,749 | | | | | | 31.08% | | |
Name of Beneficial Owner of More Than 5% of the Common Stock
|
| |
Number of Shares
Beneficially Owned |
| |
Percent
of Class |
| ||||||
Muthoot Holdings LLC
|
| | | | 443,481 | | | | | | 7.61% | | |
Name
|
| |
Number
of Shares of Common Stock |
| |||
Stephens Inc. | | | | | 828,750 | | |
Piper Sandler & Co. | | | | | 446,250 | | |
Total
|
| | | | 1,275,000 | | |
| | |
Per Share
|
| |
Total Without
Over-Allotment |
| |
Total With
Over-Allotment |
| |||||||||
Price to public
|
| | | $ | 21.00 | | | | | $ | 26,775,000 | | | | | $ | 30,791,250 | | |
Underwriting discount | | | | $ | 1.365 | | | | | $ | 1,740,375 | | | | | $ | 2,001,431 | | |
Proceeds to us, before expenses | | | | $ | 19.635 | | | | | $ | 25,034,625 | | | | | $ | 28,789,819 | | |
| Hanover Bancorp, Inc. and Subsidiary | | | | | | | | | ||
| Consolidated Financial Statements | | | | | | | | | ||
| As of December 31, 2021 and September 30, 2021 | | | | | | | | | ||
| and for the three months ended December 31, 2021 and December 31, 2020 (unaudited) | | | | | | | | | ||
| | | | | F-2 | | | | |||
| | | | | F-3 | | | | |||
| | | | | F-4 | | | | |||
| | | | | F-5 | | | | |||
| | | | | F-6 | | | | |||
| | | | | F-7 | | | | |||
| Hanover Bancorp, Inc. and Subsidiary | | | | | | | | | ||
| Consolidated Financial Statements September 30, 2021 and 2020 | | | | | | | | | | |
| | | | | F-26 | | | | |||
| | | | | F-27 | | | | |||
| | | | | F-28 | | | | |||
| | | | | F-29 | | | | |||
| | | | | F-30 | | | | |||
| | | | | F-31 | | | | |||
| | | | | F-33 | | | | |||
| Savoy Bank | | | | | | | | | ||
| New York, New York | | | | | | | | | ||
| As of March 31, 2021 and December 31, 2020 | | | | | | | | | ||
| and for the three months ended March 31, 2021 and March 31, 2020 (unaudited) | | | | | | | | | ||
| | | | | F-68 | | | | |||
| | | | | F-69 | | | | |||
| | | | | F-70 | | | | |||
| | | | | F-71 | | | | |||
| | | | | F-72 | | | | |||
| | | | | F-73 | | | | |||
| Savoy Bank | | | | | | | | | ||
| New York, New York | | | | | | | | | ||
| December 31, 2020 and 2019 | | | | | | | | | ||
| | | | | F-85 | | | | |||
| | | | | F-86 | | | | |||
| | | | | F-87 | | | | |||
| | | | | F-88 | | | | |||
| | | | | F-89 | | | | |||
| | | | | F-90 | | | | |||
| | | | | F-91 | | | |
| | |
December 31, 2021
|
| |
September 30, 2021
|
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Cash and non-interest-bearing deposits due from banks
|
| | | $ | 7,794 | | | | | $ | 8,302 | | |
Interest-bearing deposits due from banks
|
| | | | 106,973 | | | | | | 142,950 | | |
Federal funds sold
|
| | | | 184 | | | | | | 15,292 | | |
Total cash and cash equivalents
|
| | | | 114,951 | | | | | | 166,544 | | |
Securities: | | | | | | | | | | | | | |
Held to maturity (fair value of $5,008 and $8,865, respectively)
|
| | | | 4,834 | | | | | | 8,611 | | |
Available for sale, at fair value
|
| | | | 7,536 | | | | | | 7,747 | | |
Total securities
|
| | | | 12,370 | | | | | | 16,358 | | |
Loans held for investment
|
| | | | 1,277,434 | | | | | | 1,247,125 | | |
Allowance for loan losses
|
| | | | (9,386) | | | | | | (8,552) | | |
Loans held for investment, net
|
| | | | 1,268,048 | | | | | | 1,238,573 | | |
Premises and equipment, net
|
| | | | 14,895 | | | | | | 15,003 | | |
Accrued interest receivable
|
| | | | 8,858 | | | | | | 9,363 | | |
Prepaid pension
|
| | | | 4,233 | | | | | | 4,233 | | |
Stock in Federal Home Loan Bank, at cost
|
| | | | 4,057 | | | | | | 3,714 | | |
Goodwill
|
| | | | 19,168 | | | | | | 19,168 | | |
Other intangible assets
|
| | | | 459 | | | | | | 480 | | |
Loan servicing rights
|
| | | | 3,741 | | | | | | 3,690 | | |
Deferred income taxes
|
| | | | 3,025 | | | | | | 3,558 | | |
Other assets
|
| | | | 4,375 | | | | | | 3,957 | | |
TOTAL ASSETS
|
| | | $ | 1,458,180 | | | | | $ | 1,484,641 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Non-interest-bearing demand
|
| | | $ | 190,724 | | | | | $ | 191,537 | | |
Savings, NOW and money market
|
| | | | 659,144 | | | | | | 595,289 | | |
Time
|
| | | | 326,883 | | | | | | 377,836 | | |
Total deposits
|
| | | | 1,176,751 | | | | | | 1,164,662 | | |
Borrowings
|
| | | | 113,274 | | | | | | 159,642 | | |
Subordinated debentures
|
| | | | 24,504 | | | | | | 24,513 | | |
Accrued interest payable
|
| | | | 879 | | | | | | 1,290 | | |
Other liabilities
|
| | | | 13,393 | | | | | | 12,005 | | |
TOTAL LIABILITIES
|
| | | | 1,328,801 | | | | | | 1,362,112 | | |
COMMITMENTS AND CONTINGENT LIABILITIES
|
| | | | — | | | | | | — | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Preferred stock (par value $0.01; 15,000,000 shares authorized; none issued)
|
| | | | — | | | | | | — | | |
Common stock (par value $0.01; 17,000,000 shares authorized; issued and outstanding 5,562,799 and 5,563,426, respectively)
|
| | | | 56 | | | | | | 56 | | |
Surplus
|
| | | | 97,505 | | | | | | 97,246 | | |
Retained earnings
|
| | | | 31,508 | | | | | | 24,971 | | |
Accumulated other comprehensive income, net of tax
|
| | | | 310 | | | | | | 256 | | |
TOTAL STOCKHOLDERS’ EQUITY
|
| | | | 129,379 | | | | | | 122,529 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 1,458,180 | | | | | $ | 1,484,641 | | |
| | |
Three Months Ended
December 31, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
INTEREST INCOME | | | | | | | | | | | | | |
Loans
|
| | | $ | 16,381 | | | | | $ | 9,258 | | |
Taxable securities
|
| | | | 154 | | | | | | 173 | | |
Federal funds sold
|
| | | | 1 | | | | | | — | | |
Other interest income
|
| | | | 80 | | | | | | 66 | | |
Total interest income
|
| | | | 16,616 | | | | | | 9,497 | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
Savings, NOW and money market deposits
|
| | | | 366 | | | | | | 117 | | |
Time deposits
|
| | | | 491 | | | | | | 1,454 | | |
Borrowings
|
| | | | 490 | | | | | | 599 | | |
Total interest expense
|
| | | | 1,347 | | | | | | 2,170 | | |
Net interest income
|
| | | | 15,269 | | | | | | 7,327 | | |
Provision for loan losses
|
| | | | 900 | | | | | | 100 | | |
Net interest income after provision for loan losses
|
| | | | 14,369 | | | | | | 7,227 | | |
NON-INTEREST INCOME | | | | | | | | | | | | | |
Loan servicing and fee income
|
| | | | 690 | | | | | | 83 | | |
Service charges on deposit accounts
|
| | | | 63 | | | | | | 15 | | |
Gain on sale of loans held-for-sale
|
| | | | 1,492 | | | | | | 181 | | |
Other income
|
| | | | 130 | | | | | | 7 | | |
Total non-interest income
|
| | | | 2,375 | | | | | | 286 | | |
NON-INTEREST EXPENSE | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 4,939 | | | | | | 3,108 | | |
Occupancy and equipment
|
| | | | 1,413 | | | | | | 1,171 | | |
Data processing
|
| | | | 366 | | | | | | 245 | | |
Advertising and promotion
|
| | | | 33 | | | | | | 48 | | |
Acquisition costs
|
| | | | — | | | | | | 145 | | |
Professional fees
|
| | | | 499 | | | | | | 412 | | |
Other expenses
|
| | | | 1,014 | | | | | | 461 | | |
Total non-interest expense
|
| | | | 8,264 | | | | | | 5,590 | | |
Income before income tax expense
|
| | | | 8,480 | | | | | | 1,923 | | |
Income tax expense
|
| | | | 1,943 | | | | | | 404 | | |
NET INCOME
|
| | | $ | 6,537 | | | | | $ | 1,519 | | |
EARNINGS PER COMMON SHARE – BASIC
|
| | | $ | 1.18 | | | | | $ | 0.36 | | |
EARNINGS PER COMMON SHARE – DILUTED
|
| | | $ | 1.16 | | | | | $ | 0.36 | | |
| | |
Three Months Ended
December 31, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net income
|
| | | $ | 6,537 | | | | | $ | 1,519 | | |
Other comprehensive income, net of tax: | | | | | | | | | | | | | |
Change in unrealized gain on securities available for sale arising during the period, net
of tax of $18 and $45, respectively |
| | | | 54 | | | | | | 167 | | |
Total other comprehensive income, net of tax
|
| | | | 54 | | | | | | 167 | | |
Total comprehensive income, net of tax
|
| | | $ | 6,591 | | | | | $ | 1,686 | | |
| | |
Three Months Ended December 31, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Common
Stock (Shares) |
| |
Common
Stock |
| |
Surplus
|
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
Beginning balance as of October 1,
2021 |
| | | | 5,563,426 | | | | | $ | 56 | | | | | $ | 97,246 | | | | | $ | 24,971 | | | | | $ | 256 | | | | | $ | 122,529 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 6,537 | | | | | | — | | | | | | 6,537 | | |
Other comprehensive income, net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 54 | | | | | | 54 | | |
Stock-based compensation
|
| | | | (3,011) | | | | | | — | | | | | | 217 | | | | | | — | | | | | | — | | | | | | 217 | | |
Issuance of common stock in lieu of directors’ fees
|
| | | | 2,384 | | | | | | — | | | | | | 42 | | | | | | — | | | | | | — | | | | | | 42 | | |
Ending balance as of December 31,
2021 |
| | | | 5,562,799 | | | | | $ | 56 | | | | | $ | 97,505 | | | | | $ | 31,508 | | | | | $ | 310 | | | | | $ | 129,379 | | |
| | |
Three Months Ended December 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Common
Stock (Shares) |
| |
Common
Stock |
| |
Surplus
|
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
Beginning balance as of October 1,
2020 |
| | | | 4,175,144 | | | | | $ | 42 | | | | | $ | 63,725 | | | | | $ | 14,120 | | | | | $ | 156 | | | | | $ | 78,043 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,519 | | | | | | — | | | | | | 1,519 | | |
Other comprehensive income, net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 167 | | | | | | 167 | | |
Stock-based compensation
|
| | | | 7,390 | | | | | | — | | | | | | 229 | | | | | | — | | | | | | — | | | | | | 229 | | |
Issuance of common stock
|
| | | | 3,000 | | | | | | — | | | | | | 66 | | | | | | — | | | | | | — | | | | | | 66 | | |
Ending balance as of December 31,
2020 |
| | | | 4,185,534 | | | | | $ | 42 | | | | | $ | 64,020 | | | | | $ | 15,639 | | | | | $ | 323 | | | | | $ | 80,024 | | |
| | |
Three Months Ended
December 31, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 6,537 | | | | | $ | 1,519 | | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
Provision for loan losses
|
| | | | 900 | | | | | | 100 | | |
Depreciation and amortization
|
| | | | 397 | | | | | | 344 | | |
Originations of loans held for sale
|
| | | | — | | | | | | (12,279) | | |
Proceeds from sales of loans held for sale
|
| | | | — | | | | | | 8,286 | | |
Net gain on sale of loans
|
| | | | (1,492) | | | | | | (181) | | |
Stock-based compensation
|
| | | | 217 | | | | | | 229 | | |
Net accretion of premiums, discounts and loan fees and costs
|
| | | | (1,640) | | | | | | (105) | | |
Amortization of intangible assets
|
| | | | 21 | | | | | | 1 | | |
Amortization of debt issuance costs
|
| | | | 22 | | | | | | 30 | | |
Loan servicing rights valuation adjustments
|
| | | | 117 | | | | | | 11 | | |
Deferred tax expense
|
| | | | 526 | | | | | | — | | |
Decrease in accrued interest receivable
|
| | | | 505 | | | | | | 165 | | |
Decrease (increase) in other assets
|
| | | | (597) | | | | | | 827 | | |
Increase (decrease) in accrued interest payable
|
| | | | (411) | | | | | | 180 | | |
Increase in other liabilities
|
| | | | 1,357 | | | | | | 716 | | |
Net cash provided by (used in) operating activities
|
| | | | 6,459 | | | | | | (157) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of securities available for sale
|
| | | | — | | | | | | (1,200) | | |
Purchases of restricted securities
|
| | | | (1,081) | | | | | | — | | |
Principal repayments of securities held to maturity
|
| | | | 3,775 | | | | | | 720 | | |
Principal repayments of securities available for sale
|
| | | | 275 | | | | | | 9 | | |
Redemptions of restricted securities
|
| | | | 738 | | | | | | 469 | | |
Proceeds from sales of loans
|
| | | | 36,704 | | | | | | 334 | | |
Net increase in loans
|
| | | | (64,330) | | | | | | (3,919) | | |
Purchases of premises and equipment
|
| | | | (289) | | | | | | (514) | | |
Net cash used in investing activities
|
| | | | (24,208) | | | | | | (4,101) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net increase in deposits
|
| | | | 12,437 | | | | | | 23,556 | | |
Advances of term FHLB borrowings
|
| | | | 20,000 | | | | | | — | | |
Repayments of Federal Home Loan Bank advances
|
| | | | (14,000) | | | | | | (10,390) | | |
Repayments of Federal Reserve Bank borrowings
|
| | | | (52,323) | | | | | | (250) | | |
Proceeds from issuance of subordinated debentures, net of issuance costs
|
| | | | — | | | | | | 24,455 | | |
Repayment of note payable
|
| | | | — | | | | | | (15,000) | | |
Net proceeds from issuance of common stock
|
| | | | 42 | | | | | | 66 | | |
Net cash provided by (used in) financing activities
|
| | | | (33,844) | | | | | | 22,437 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | (51,593) | | | | | | 18,179 | | |
Cash and cash equivalents, beginning of period
|
| | | | 166,544 | | | | | | 80,209 | | |
Cash and cash equivalents, end of period
|
| | | $ | 114,951 | | | | | $ | 98,388 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 1,758 | | | | | $ | 1,990 | | |
Income taxes paid
|
| | | | — | | | | | | 36 | | |
Supplemental non-cash disclosure: | | | | | | | | | | | | | |
Transfers from portfolio loans to loans held-for-sale
|
| | | $ | 35,212 | | | | | $ | 334 | | |
(in thousands)
|
| |
As Recorded
by Savoy |
| |
Fair Value
Adjustments |
| |
As Recorded
by Hanover |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 59,155 | | | | | $ | — | | | | | $ | 59,155 | | |
Investment securities available-for-sale
|
| | | | 239 | | | | | | — | | | | | | 239 | | |
(in thousands)
|
| |
As Recorded
by Savoy |
| |
Fair Value
Adjustments |
| |
As Recorded
by Hanover |
| |||||||||
Loans held for sale
|
| | | | 3,883 | | | | | | — | | | | | | 3,883 | | |
Loans held for investment
|
| | | | 569,251 | | | | | | 8,612(a) | | | | | | 577,863 | | |
Premises and equipment, net
|
| | | | 234 | | | | | | (22)(b) | | | | | | 212 | | |
Core deposit intangible
|
| | | | — | | | | | | 490(c) | | | | | | 490 | | |
Accrued interest receivable
|
| | | | 5,171 | | | | | | (650)(d) | | | | | | 4,521 | | |
Other assets
|
| | | | 10,432 | | | | | | (2,925)(e) | | | | | | 7,507 | | |
Total assets acquired
|
| | | $ | 648,365 | | | | | $ | 5,505 | | | | | | 653,870 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | $ | 340,215 | | | | | $ | 2,527(f) | | | | | | 342,742 | | |
Borrowings
|
| | | | 258,247 | | | | | | 301(g) | | | | | | 258,548 | | |
Accrued interest payable
|
| | | | 1,050 | | | | | | — | | | | | | 1,050 | | |
Other liabilities and accrued expenses
|
| | | | 3,817 | | | | | | (342)(h) | | | | | | 3,475 | | |
Total liabilities assumed
|
| | | $ | 603,329 | | | | | $ | 2,486 | | | | | | 605,815 | | |
Net assets acquired
|
| | | | | | | | | | | | | | | | 48,055 | | |
Total consideration
|
| | | | | | | | | | | | | | | | 65,512 | | |
Goodwill
|
| | | | | | | | | | | | | | | $ | 17,457 | | |
|
(in thousands, except share data)
|
| | | | | | |
Common stock issued (1,357,567 shares issued)
|
| | | $ | 32,521 | | |
Cash payments to common shareholders
|
| | | | 32,991 | | |
Total consideration paid
|
| | | $ | 65,512 | | |
(in thousands)
|
| | | | | | |
Contractually required principal and interest at acquisition
|
| | | $ | 14,416 | | |
Contractual cash flows not expected to be collected (non-accretable discount)
|
| | | | (3,467) | | |
Expected cash flows at acquisition
|
| | | | 10,949 | | |
Interest component of expected cash flows (accretable discount)
|
| | | | (540) | | |
Fair value of acquired purchased credit impaired loans
|
| | | $ | 10,409 | | |
| | |
Three Months Ended December 31,
|
| |||||||||
(in thousands, except share and per share data)
|
| |
2021
|
| |
2020
|
| ||||||
Basic earnings per common share | | | | | | | | | | | | | |
Net income
|
| | | $ | 6,537 | | | | | $ | 1,519 | | |
Weighted average common shares outstanding
|
| | | | 5,562,939 | | | | | | 4,180,936 | | |
Basic earnings per common share
|
| | | $ | 1.18 | | | | | $ | 0.36 | | |
Diluted earnings per common share | | | | | | | | | | | | | |
Net income
|
| | | $ | 6,537 | | | | | $ | 1,519 | | |
Weighted average common shares outstanding for basic earnings per common share
|
| | | | 5,562,939 | | | | | | 4,180,936 | | |
Add: dilutive effects of assumed exercises of stock options
|
| | | | 95,489 | | | | | | 64,860 | | |
Average shares and dilutive potential common shares
|
| | | | 5,658,428 | | | | | | 4,245,796 | | |
Diluted earnings per common share
|
| | | $ | 1.16 | | | | | $ | 0.36 | | |
| | |
December 31, 2021
|
| |||||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 439 | | | | | $ | 78 | | | | | $ | (2) | | | | | $ | 515 | | |
Corporate bonds
|
| | | | 6,700 | | | | | | 321 | | | | | | — | | | | | | 7,021 | | |
Total available for sale securities
|
| | | $ | 7,139 | | | | | $ | 399 | | | | | $ | (2) | | | | | $ | 7,536 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 2,154 | | | | | $ | 48 | | | | | $ | — | | | | | $ | 2,202 | | |
U.S. GSE commercial mortgage-backed securities
|
| | | | 2,680 | | | | | | 126 | | | | | | — | | | | | | 2,806 | | |
Total held to maturity securities
|
| | | | 4,834 | | | | | | 174 | | | | | | — | | | | | | 5,008 | | |
Total investment securities
|
| | | $ | 11,973 | | | | | $ | 573 | | | | | $ | (2) | | | | | $ | 12,544 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 722 | | | | | $ | 112 | | | | | $ | (1) | | | | | $ | 833 | | |
Corporate bonds
|
| | | | 6,700 | | | | | | 214 | | | | | | — | | | | | | 6,914 | | |
Total available for sale securities
|
| | | $ | 7,422 | | | | | $ | 326 | | | | | $ | (1) | | | | | $ | 7,747 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 2,417 | | | | | $ | 74 | | | | | $ | — | | | | | $ | 2,491 | | |
U.S. GSE commercial mortgage-backed securities
|
| | | | 2,694 | | | | | | 175 | | | | | | — | | | | | | 2,869 | | |
Corporate bonds
|
| | | | 3,500 | | | | | | 9 | | | | | | (4) | | | | | | 3,505 | | |
Total held to maturity securities
|
| | | | 8,611 | | | | | | 258 | | | | | | (4) | | | | | | 8,865 | | |
Total investment securities
|
| | | $ | 16,033 | | | | | $ | 584 | | | | | $ | (5) | | | | | $ | 16,612 | | |
| | |
December 31, 2021
|
| |||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Fair
Value |
| ||||||
Securities available for sale: | | | | | | | | | | | | | |
Five to ten years
|
| | | $ | 6,700 | | | | | $ | 7,021 | | |
U.S. GSE residential mortgage-backed securities
|
| | | | 439 | | | | | | 515 | | |
Total securities available for sale
|
| | | | 7,139 | | | | | | 7,536 | | |
Securities held to maturity: | | | | | | | | | | | | | |
One to five years
|
| | | | — | | | | | | — | | |
| | |
December 31, 2021
|
| |||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Fair
Value |
| ||||||
Five to ten years
|
| | | | — | | | | | | — | | |
U.S. GSE residential mortgage-backed securities
|
| | | | 2,154 | | | | | | 2,202 | | |
U.S. GSE commercial mortgage-backed securities
|
| | | | 2,680 | | | | | | 2,806 | | |
Total securities held to maturity
|
| | | | 4,834 | | | | | | 5,008 | | |
Total investment securities
|
| | | $ | 11,973 | | | | | $ | 12,544 | | |
|
(in thousands)
|
| |
December 31, 2021
|
| |
September 30, 2021
|
| ||||||
Residential real estate
|
| | | $ | 436,348 | | | | | $ | 444,011 | | |
Multi-family
|
| | | | 358,456 | | | | | | 266,294 | | |
Commercial real estate
|
| | | | 360,610 | | | | | | 348,641 | | |
Commercial and industrial
|
| | | | 109,562 | | | | | | 172,274 | | |
Construction and land development
|
| | | | 11,444 | | | | | | 15,374 | | |
Consumer
|
| | | | 29 | | | | | | 11 | | |
Gross loans
|
| | | | 1,276,449 | | | | | | 1,246,605 | | |
Net deferred costs (fees)
|
| | | | 985 | | | | | | 520 | | |
Total loans
|
| | | | 1,277,434 | | | | | | 1,247,125 | | |
Allowance for loan losses
|
| | | | (9,386) | | | | | | (8,552) | | |
Total loans, net
|
| | | $ | 1,268,048 | | | | | $ | 1,238,573 | | |
(in thousands)
|
| |
December 31,
2021 |
| |||
Commercial real estate
|
| | | $ | 3,590 | | |
Commercial and industrial
|
| | | | 1,899 | | |
Total recorded investment
|
| | | $ | 5,489 | | |
(in thousands)
|
| |
Three Months
Ended December 31, 2021 |
| |||
Balance at beginning of period
|
| | | $ | 346 | | |
Accretable differences acquired
|
| | | | — | | |
Accretion
|
| | | | (1,035) | | |
Adjustments to accretable difference due to changes in expected cash flows
|
| | | | 363 | | |
Other changes, net
|
| | | | 416 | | |
Ending balance
|
| | | $ | 90 | | |
| | |
Three Months Ended December 31, 2021
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate Loans |
| |
Multi-
Family Loans |
| |
Commercial
Real Estate Loans |
| |
Commercial
and Industrial Loans |
| |
Construction
and Land Development Loans |
| |
Consumer
Loans |
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning Balance
|
| | | $ | 4,155 | | | | | $ | 2,433 | | | | | $ | 1,884 | | | | | $ | 79 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 8,552 | | |
Charge-offs
|
| | |
|
—
|
| | | |
|
(66)
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | |
|
(66)
|
| |
Recoveries
|
| | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | |
|
—
|
| |
Provision (credit) for loan losses
|
| | |
|
(40)
|
| | | |
|
201
|
| | | |
|
634
|
| | | |
|
105
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
900
|
| |
Ending Balance
|
| | | $ | 4,115 | | | | | $ | 2,568 | | | | | $ | 2,518 | | | | | $ | 184 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 9,386 | | |
| | |
Three Months Ended December 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate Loans |
| |
Multi-
Family Loans |
| |
Commercial
Real Estate Loans |
| |
Commercial
and Industrial Loans |
| |
Construction
and Land Development Loans |
| |
Consumer
Loans |
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning Balance
|
| | | $ | 5,103 | | | | | $ | 1,506 | | | | | $ | 1,221 | | | | | $ | 38 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 7,869 | | |
Charge-offs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | 10 | | | | | | — | | | | | | — | | | | | | 10 | | |
Provision (credit) for loan losses
|
| | | | (9) | | | | | | 113 | | | | | | — | | | | | | (4) | | | | | | — | | | | | | — | | | | | | 100 | | |
Ending Balance
|
| | | $ | 5,094 | | | | | $ | 1,619 | | | | | $ | 1,221 | | | | | $ | 44 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 7,979 | | |
| | |
December 31, 2021
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate |
| |
Multi-
Family |
| |
Commercial
Real Estate |
| |
Commercial
and Industrial |
| |
Construction
and Land Development |
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
impairment
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
impairment
|
| | | | 4,115 | | | | | | 2,568 | | | | | | 2,518 | | | | | | 184 | | | | | | — | | | | | | 1 | | | | | | 9,386 | | |
Purchased-credit impaired
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total allowance for loan
losses |
| | | $ | 4,115 | | | | | $ | 2,568 | | | | | $ | 2,518 | | | | | $ | 184 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 9,386 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
impairment
|
| | | $ | 6,315 | | | | | $ | 432 | | | | | $ | 523 | | | | | $ | 480 | | | | | $ | — | | | | | $ | — | | | | | $ | 7,750 | | |
Collectively evaluated for
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
impairment
|
| | | | 430,254 | | | | | | 358,399 | | | | | | 356,685 | | | | | | 107,339 | | | | | | 11,487 | | | | | | 31 | | | | | | 1,264,195 | | |
Purchased-credit impaired
|
| | | | — | | | | | | — | | | | | | 3,590 | | | | | | 1,899 | | | | | | — | | | | | | — | | | | | | 5,489 | | |
Total loans held for
investment |
| | | $ | 436,569 | | | | | $ | 358,831 | | | | | $ | 360,798 | | | | | $ | 109,718 | | | | | $ | 11,487 | | | | | $ | 31 | | | | | $ | 1,277,434 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate |
| |
Multi-
Family |
| |
Commercial
Real Estate |
| |
Commercial
and Industrial |
| |
Construction
and Land Development |
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment
|
| | | | 4,155 | | | | | | 2,433 | | | | | | 1,884 | | | | | | 79 | | | | | | — | | | | | | 1 | | | | | | 8,552 | | |
Purchased-credit impaired
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total allowance for loan
losses |
| | | $ | 4,155 | | | | | $ | 2,433 | | | | | $ | 1,884 | | | | | $ | 79 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 8,552 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 7,198 | | | | | $ | 458 | | | | | $ | 517 | | | | | $ | 500 | | | | | $ | — | | | | | $ | — | | | | | $ | 8,673 | | |
Collectively evaluated for
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
impairment
|
| | | | 436,942 | | | | | | 266,256 | | | | | | 339,966 | | | | | | 169,660 | | | | | | 15,374 | | | | | | 13 | | | | | | 1,228,211 | | |
Purchased-credit impaired
|
| | | | — | | | | | | — | | | | | | 8,324 | | | | | | 1,917 | | | | | | — | | | | | | — | | | | | | 10,241 | | |
Total loans held for
investment |
| | | $ | 444,140 | | | | | $ | 266,714 | | | | | $ | 348,807 | | | | | $ | 172,077 | | | | | $ | 15,374 | | | | | $ | 13 | | | | | $ | 1,247,125 | | |
| | |
December 31, 2021
|
| |
September 30, 2021
|
| ||||||||||||||||||||||||||||||
(in thousands)
|
| |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Allowance
Allocated |
| |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Allowance
Allocated |
| ||||||||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate
|
| | | $ | 6,315 | | | | | $ | 6,315 | | | | | $ | — | | | | | $ | 7,382 | | | | | $ | 7,198 | | | | | $ | — | | |
Multi-family
|
| | | | 432 | | | | | | 432 | | | | | | — | | | | | | 382 | | | | | | 458 | | | | | | — | | |
Commercial real estate
|
| | | | 523 | | | | | | 523 | | | | | | — | | | | | | 522 | | | | | | 517 | | | | | | — | | |
Commercial and industrial
|
| | | | 480 | | | | | | 480 | | | | | | — | | | | | | 535 | | | | | | 500 | | | | | | — | | |
Total
|
| | | $ | 7,750 | | | | | $ | 7,750 | | | | | $ | — | | | | | $ | 8,821 | | | | | $ | 8,673 | | | | | $ | — | | |
| | |
Three Months Ended December 31,
|
| |||||||||||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||||||||
(in thousands)
|
| |
Average
Recorded Investment |
| |
Interest
Income Recognized(1) |
| |
Average
Recorded Investment |
| |
Interest
Income Recognized(1) |
| ||||||||||||
Residential real estate
|
| | | $ | 6,347 | | | | | $ | 20 | | | | | $ | 5,655 | | | | | $ | 22 | | |
Multi-family
|
| | | | 440 | | | | | | — | | | | | | 46 | | | | | | 1 | | |
Commercial real estate
|
| | | | 520 | | | | | | — | | | | | | 28 | | | | | | 1 | | |
Commercial and industrial
|
| | | | 481 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 7,788 | | | | | $ | 20 | | | | | $ | 5,729 | | | | | $ | 24 | | |
(in thousands)
|
| |
Past Due and Non-Accrual
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
December 31, 2021
|
| |
30 – 59 days
past due and accruing |
| |
60 – 89 days
past due and accruing |
| |
Greater than
89 days past due and accruing |
| |
Non-accrual
|
| | | | | | | |
Total past
due and non- accrual |
| |
Purchased-
credit impaired |
| |
Current
|
| |
Total
|
| ||||||||||||||||||||||||
Residential real estate
|
| | | $ | 52 | | | | | $ | 317 | | | | | $ | — | | | | | $ | 4,680 | | | | | | (1) | | | | | $ | 5,049 | | | | | $ | — | | | | | $ | 431,520 | | | | | $ | 436,569 | | |
Multi-family
|
| | | | — | | | | | | — | | | | | | — | | | | | | 432 | | | | | | (2) | | | | | | 432 | | | | | | — | | | | | | 358,399 | | | | | | 358,831 | | |
Commercial real estate
|
| | | | 5,068 | | | | | | — | | | | | | — | | | | | | 523 | | | | | | (3) | | | | | | 5,591 | | | | | | 3,590 | | | | | | 351,617 | | | | | | 360,798 | | |
Commercial and industrial
|
| | | | 143 | | | | | | 484 | | | | | | — | | | | | | 480 | | | | | | (4) | | | | | | 1,107 | | | | | | 1,899 | | | | | | 106,712 | | | | | | 109,718 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 11,487 | | | | | | 11,487 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 31 | | | | | | 31 | | |
Total
|
| | | $ | 5,263 | | | | | $ | 801 | | | | | $ | — | | | | | $ | 6,115 | | | | | | | | | | | $ | 12,179 | | | | | $ | 5,489 | | | | | $ | 1,259,766 | | | | | $ | 1,277,434 | | |
(in thousands)
|
| |
Past Due and Non-Accrual
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
September 30, 2021
|
| |
30 – 59 days
past due and accruing |
| |
60 – 89 days
past due and accruing |
| |
Greater than
89 days past due and accruing |
| |
Non-accrual
|
| | | | | | | |
Total past
due and non- accrual |
| |
Purchased-
credit impaired |
| |
Current
|
| |
Total
|
| ||||||||||||||||||||||||
Residential real estate
|
| | | $ | 1,032 | | | | | $ | 1,601 | | | | | $ | — | | | | | $ | 5,554 | | | | | | (1) | | | | | $ | 8,187 | | | | | $ | — | | | | | $ | 435,953 | | | | | $ | 444,140 | | |
Multi-family
|
| | | | — | | | | | | — | | | | | | — | | | | | | 458 | | | | | | (2) | | | | | | 458 | | | | | | — | | | | | | 266,256 | | | | | | 266,714 | | |
Commercial real estate
|
| | | | 1,939 | | | | | | — | | | | | | — | | | | | | 1,016 | | | | | | (3) | | | | | | 2,955 | | | | | | 8,324 | | | | | | 337,528 | | | | | | 348,807 | | |
Commercial and industrial
|
| | | | 3,641 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 3,641 | | | | | | 1,917 | | | | | | 166,519 | | | | | | 172,077 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 15,374 | | | | | | 15,374 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 13 | | | | | | 13 | | |
Total
|
| | | $ | 6,612 | | | | | $ | 1,601 | | | | | $ | — | | | | | $ | 7,028 | | | | | | | | | | | $ | 15,241 | | | | | $ | 10,241 | | | | | $ | 1,221,643 | | | | | $ | 1,247,125 | | |
| | |
December 31, 2021
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Total
|
| |||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 426,327 | | | | | $ | 4,816 | | | | | $ | 5,205 | | | | | $ | — | | | | | $ | 436,348 | | |
Multi-family
|
| | | | 354,292 | | | | | | 3,732 | | | | | | 432 | | | | | | — | | | | | | 358,456 | | |
Commercial
|
| | | | 338,852 | | | | | | 15,109 | | | | | | 6,649 | | | | | | — | | | | | | 360,610 | | |
Commercial and industrial
|
| | | | 105,071 | | | | | | 116 | | | | | | 4,375 | | | | | | — | | | | | | 109,562 | | |
Construction and land development
|
| | | | 9,446 | | | | | | 1,998 | | | | | | — | | | | | | — | | | | | | 11,444 | | |
Consumer
|
| | | | 29 | | | | | | — | | | | | | — | | | | | | — | | | | | | 29 | | |
Total
|
| | | $ | 1,234,017 | | | | | $ | 25,771 | | | | | $ | 16,661 | | | | | $ | — | | | | | $ | 1,276,449 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Total
|
| |||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 433,299 | | | | | $ | 5,115 | | | | | $ | 5,594 | | | | | $ | 3 | | | | | $ | 444,011 | | |
Multi-family
|
| | | | 262,984 | | | | | | 2,852 | | | | | | 458 | | | | | | — | | | | | | 266,294 | | |
Commercial
|
| | | | 316,727 | | | | | | 16,274 | | | | | | 15,640 | | | | | | — | | | | | | 348,641 | | |
Commercial and industrial
|
| | | | 168,104 | | | | | | 540 | | | | | | 3,630 | | | | | | — | | | | | | 172,274 | | |
Construction and land development
|
| | | | 13,607 | | | | | | 1,767 | | | | | | — | | | | | | — | | | | | | 15,374 | | |
Consumer
|
| | | | 11 | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | |
Total
|
| | | $ | 1,194,732 | | | | | $ | 26,548 | | | | | $ | 25,322 | | | | | $ | 3 | | | | | $ | 1,246,605 | | |
| | |
Number
of Options |
| |
Weighted
Average Exercise Price |
| |
Aggregate
Intrinsic Value |
| |
Weighted
Average Remaining Contractual Term |
| ||||||||||||
Outstanding, October 1, 2021
|
| | | | 227,406 | | | | | $ | 9.50 | | | | | $ | 2,043 | | | | | | 3.51 years | | |
Granted
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Outstanding, December 31, 2021(1)
|
| | | | 227,406 | | | | | $ | 9.50 | | | | | $ | 2,043 | | | | | | 3.20 years | | |
| | |
Number of
Shares |
| |
Weighted-
Average Grant Date Fair Value |
| ||||||
Unvested, October 1, 2021
|
| | | | 75,833 | | | | | $ | 19.87 | | |
Granted
|
| | | | — | | | | | | — | | |
Vested
|
| | | | (2,666) | | | | | | 21.49 | | |
Forfeited
|
| | | | (2,887) | | | | | | 19.07 | | |
Unvested, December 31, 2021
|
| | | | 70,280 | | | | | $ | 19.84 | | |
| | |
Actual Capital
|
| |
Minimum Capital
Adequacy Requirement |
| |
Minimum Capital
Adequacy Requirement with Capital Conservation Buffer |
| |
Minimum to Be
Well Capitalized Under Prompt Corrective Action Provisions |
| ||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk-weighted assets
|
| | | $ | 141,803 | | | | | | 15.52% | | | | | $ | 73,114 | | | | | | 8.00% | | | | | $ | 95,963 | | | | | | 10.50% | | | | | $ | 91,393 | | | | | | 10.00% | | |
Tier 1 capital to risk-weighted assets
|
| | | | 132,006 | | | | | | 14.44% | | | | | | 54,836 | | | | | | 6.00% | | | | | | 77,684 | | | | | | 8.50% | | | | | | 73,114 | | | | | | 8.00% | | |
Common equity tier 1 capital to
risk-weighted assets |
| | | | 132,006 | | | | | | 14.44% | | | | | | 41,127 | | | | | | 4.50% | | | | | | 63,975 | | | | | | 7.00% | | | | | | 59,405 | | | | | | 6.50% | | |
| | |
Actual Capital
|
| |
Minimum Capital
Adequacy Requirement |
| |
Minimum Capital
Adequacy Requirement with Capital Conservation Buffer |
| |
Minimum to Be
Well Capitalized Under Prompt Corrective Action Provisions |
| ||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||||||||
Tier 1 capital to adjusted average assets (leverage)
|
| | | | 132,006 | | | | | | 9.92% | | | | | | 53,241 | | | | | | 4.00% | | | | | | N/A | | | | | | N/A | | | | | | 66,551 | | | | | | 5.00% | | |
September 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk-weighted assets
|
| | | $ | 132,554 | | | | | | 15.59% | | | | | $ | 68,040 | | | | | | 8.00% | | | | | $ | 89,303 | | | | | | 10.50% | | | | | $ | 85,050 | | | | | | 10.00% | | |
Tier 1 capital to risk-weighted assets
|
| | | | 123,666 | | | | | | 14.54% | | | | | | 51,030 | | | | | | 6.00% | | | | | | 72,293 | | | | | | 8.50% | | | | | | 68,040 | | | | | | 8.00% | | |
Common equity tier 1 capital to
risk-weighted assets |
| | | | 123,666 | | | | | | 14.54% | | | | | | 38,273 | | | | | | 4.50% | | | | | | 59,535 | | | | | | 7.00% | | | | | | 55,283 | | | | | | 6.50% | | |
Tier 1 capital to adjusted average assets (leverage)
|
| | | | 123,666 | | | | | | 9.45% | | | | | | 52,338 | | | | | | 4.00% | | | | | | N/A | | | | | | N/A | | | | | | 65,423 | | | | | | 5.00% | | |
| | |
December 31, 2021
|
| | |||||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| | | | |||||||||||||||
(In thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices
In Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| | ||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 515 | | | | | $ | — | | | | | $ | 515 | | | | | $ | — | | | | | |
Corporate bonds
|
| | |
|
7,021
|
| | | |
|
—
|
| | | |
|
7,021
|
| | | |
|
—
|
| | | | |
Mortgage servicing rights
|
| | |
|
3,741
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
3,741
|
| | | | |
Total | | | | $ | 11,277 | | | | | $ | — | | | | | $ | 7,536 | | | | | $ | 3,741 | | | | | |
| | |
September 30, 2021
|
| | | | |||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| | |||||||||||||||||
(In thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices
In Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| | ||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
U.S. GSE residential mortgage-backed securities
|
| | | $ | 833 | | | | | $ | — | | | | | $ | 833 | | | | | $ | — | | | | ||
Corporate bonds
|
| | | | 6,914 | | | | | | — | | | | | | 6,914 | | | | | | — | | | | ||
Mortgage servicing rights
|
| | | | 3,690 | | | | | | — | | | | | | — | | | | | | 3,690 | | | | ||
Total
|
| | | $ | 11,437 | | | | | $ | — | | | | | $ | 7,747 | | | | | $ | 3,690 | | | |
| | |
Three Months Ended December 31,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Balance, October 1
|
| | | $ | 3,690 | | | | | $ | 155 | | |
Additions
|
| | | | 168 | | | | | | — | | |
Adjustment to fair value
|
| | | | (117) | | | | | | (11) | | |
Balance, December 31
|
| | | $ | 3,741 | | | | | $ | 144 | | |
| | |
December 31, 2021
|
| |||||||||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| | | | | | | |||||||||||||||
(In thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices
In Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
Fair Value |
| |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 114,951 | | | | | $ | 114,951 | | | | | $ | — | | | | | $ | — | | | | | $ | 114,951 | | |
Securities held-to-maturity
|
| | | | 4,834 | | | | | | — | | | | | | 5,008 | | | | | | — | | | | | | 5,008 | | |
Securities available-for-sale
|
| | | | 7,536 | | | | | | — | | | | | | 7,536 | | | | | | — | | | | | | 7,536 | | |
Loans, net
|
| | | | 1,268,048 | | | | | | — | | | | | | — | | | | | | 1,282,865 | | | | | | 1,282,865 | | |
Federal Home Loan Bank stock
|
| | | | 4,057 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Accrued interest receivable
|
| | | | 8,858 | | | | | | — | | | | | | 116 | | | | | | 8,742 | | | | | | 8,858 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Time deposits
|
| | | | 326,883 | | | | | | — | | | | | | 326,517 | | | | | | — | | | | | | 326,517 | | |
Demand and other deposits
|
| | | | 849,868 | | | | | | 849,868 | | | | | | — | | | | | | — | | | | | | 849,868 | | |
Borrowings
|
| | | | 113,274 | | | | | | — | | | | | | 112,852 | | | | | | — | | | | | | 112,852 | | |
Subordinated debentures
|
| | | | 24,504 | | | | | | — | | | | | | 27,083 | | | | | | — | | | | | | 27,083 | | |
Accrued interest payable
|
| | | | 879 | | | | | | 1 | | | | | | 878 | | | | | | — | | | | | | 879 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| | | | | | | |||||||||||||||
(In thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices
In Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
Fair Value |
| |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 166,544 | | | | | $ | 166,544 | | | | | $ | — | | | | | $ | — | | | | | $ | 166,544 | | |
Securities held-to-maturity
|
| | | | 8,611 | | | | | | — | | | | | | 8,865 | | | | | | — | | | | | | 8,865 | | |
Securities available-for-sale
|
| | | | 7,747 | | | | | | — | | | | | | 7,747 | | | | | | — | | | | | | 7,747 | | |
Loans, net
|
| | | | 1,238,573 | | | | | | — | | | | | | — | | | | | | 1,278,056 | | | | | | 1,278,056 | | |
Federal Home Loan Bank stock
|
| | | | 3,714 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Accrued interest receivable
|
| | | | 9,363 | | | | | | — | | | | | | 211 | | | | | | 9,152 | | | | | | 9,363 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Time deposits
|
| | | | 377,836 | | | | | | — | | | | | | 378,333 | | | | | | — | | | | | | 378,333 | | |
Demand and other deposits
|
| | | | 786,826 | | | | | | 786,826 | | | | | | — | | | | | | — | | | | | | 786,826 | | |
Borrowings
|
| | | | 159,642 | | | | | | — | | | | | | 159,608 | | | | | | — | | | | | | 159,608 | | |
Subordinated debentures
|
| | | | 24,513 | | | | | | — | | | | | | 27,092 | | | | | | — | | | | | | 27,092 | | |
Accrued interest payable
|
| | | | 1,290 | | | | | | 1 | | | | | | 713 | | | | | | 576 | | | | | | 1,290 | | |
| | |
Balance at December 31, 2021
|
| |||||||||
Contractual Maturity
|
| |
Amount
|
| |
Weighted Average Rate
|
| ||||||
2022
|
| | | $ | 10,000 | | | | | | 0.34% | | |
2023
|
| | | | 11,995 | | | | | | 2.23% | | |
2024
|
| | | | 18,860 | | | | | | 0.98% | | |
2025
|
| | | | 7,080 | | | | | | 0.58% | | |
Total
|
| | | $ | 47,935 | | | | | | 1.10% | | |
| | |
Balance at September 30, 2021
|
| |||||||||
Contractual Maturity
|
| |
Amount
|
| |
Weighted Average Rate
|
| ||||||
2022
|
| | | $ | 4,000 | | | | | | 2.02% | | |
2023
|
| | | | 12,040 | | | | | | 2.23% | | |
2024
|
| | | | 18,860 | | | | | | 0.98% | | |
2025
|
| | | | 7,080 | | | | | | 0.58% | | |
Total
|
| | | $ | 41,980 | | | | | | 1.37% | | |
(in thousands)
|
| |
Unrealized Gains and
Losses on Available- for-Sale Debt Securities |
| |
Total
|
| ||||||
Balance at October 1, 2021
|
| | | $ | 256 | | | | | $ | 256 | | |
Other comprehensive income
|
| | | | 54 | | | | | | 54 | | |
Balance at December 31, 2021
|
| | | $ | 310 | | | | | $ | 310 | | |
Balance at October 1, 2020
|
| | | $ | 156 | | | | | $ | 156 | | |
Other comprehensive income
|
| | | | 167 | | | | | | 167 | | |
Balance at December 31, 2020
|
| | | $ | 323 | | | | | $ | 323 | | |
| | |
September 30,
|
| |||||||||
(in thousands, except share and per share data)
|
| |
2021
|
| |
2020
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash and non-interest-bearing deposits due from banks
|
| | | $ | 8,302 | | | | | $ | 6,239 | | |
Interest-bearing deposits due from banks
|
| | | | 142,950 | | | | | | 73,970 | | |
Federal funds sold
|
| | | | 15,292 | | | | | | — | | |
Total cash and cash equivalents
|
| | | | 166,544 | | | | | | 80,209 | | |
Investment securities, held-to-maturity (fair value of $8,865 and $11,131 at September 30, 2021 and 2020, respectively)
|
| | | | 8,611 | | | | | | 10,727 | | |
Investment securities, available-for-sale, at fair value
|
| | | | 7,747 | | | | | | 6,035 | | |
Loans held for investment
|
| | | | 1,247,125 | | | | | | 725,019 | | |
Allowance for loan losses
|
| | | | (8,552) | | | | | | (7,869) | | |
Loans held for investment, net
|
| | | | 1,238,573 | | | | | | 717,150 | | |
Premises and equipment, net
|
| | | | 15,003 | | | | | | 14,156 | | |
Accrued interest receivable
|
| | | | 9,363 | | | | | | 6,766 | | |
Prepaid pension
|
| | | | 4,233 | | | | | | 4,660 | | |
Stock in Federal Home Loan Bank, at cost
|
| | | | 3,714 | | | | | | 4,170 | | |
Goodwill
|
| | | | 19,168 | | | | | | 1,901 | | |
Other intangible assets
|
| | | | 480 | | | | | | 22 | | |
Loan servicing rights
|
| | | | 3,690 | | | | | | 155 | | |
Deferred income taxes
|
| | | | 3,558 | | | | | | 1,897 | | |
Other assets
|
| | | | 3,957 | | | | | | 3,758 | | |
TOTAL ASSETS
|
| | | $ | 1,484,641 | | | | | $ | 851,606 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Non-interest bearing demand
|
| | | $ | 191,537 | | | | |
$
|
82,350
|
| |
Savings, NOW and money market
|
| | | | 595,289 | | | | | | 187,657 | | |
Time
|
| | | | 377,836 | | | | | | 394,753 | | |
Total deposits
|
| | | | 1,164,662 | | | | | | 664,760 | | |
Borrowings
|
| | | | 159,642 | | | | | | 85,154 | | |
Note payable
|
| | | | — | | | | | | 14,984 | | |
Subordinated debentures
|
| | | | 24,513 | | | | | | — | | |
Accrued interest payable
|
| | | | 1,290 | | | | | | 374 | | |
Other liabilities
|
| | | | 12,005 | | | | | | 8,291 | | |
TOTAL LIABILITIES
|
| | | | 1,362,112 | | | | | | 773,563 | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Preferred stock; par value $0.01; 15,000,000 shares authorized; 0 issued at September 30, 2021 and 2020, respectively
|
| | | | — | | | | | | — | | |
Common stock; par value $0.01; 17,000,000 shares authorized; 5,563,426 and 4,175,144 shares issued and outstanding at September 30, 2021 and 2020, respectively
|
| | | | 56 | | | | | | 42 | | |
Capital in excess of par
|
| | | | 97,246 | | | | | | 63,725 | | |
Retained earnings
|
| | | | 24,971 | | | | | | 14,120 | | |
Accumulated other comprehensive income, net of tax
|
| | | | 256 | | | | | | 156 | | |
TOTAL STOCKHOLDERS’ EQUITY
|
| | | | 122,529 | | | | | | 78,043 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 1,484,641 | | | | | $ | 851,606 | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands, except share and per share data)
|
| |
2021
|
| |
2020
|
| ||||||
INTEREST INCOME | | | | | | | | | | | | | |
Interest on loans
|
| | | $ | 47,685 | | | | | $ | 38,641 | | |
Interest and dividends on investment securities
|
| | | | 685 | | | | | | 523 | | |
Federal funds sold
|
| | | | 1 | | | | | | 107 | | |
Other interest income
|
| | | | 304 | | | | | | 862 | | |
Total interest income
|
| | | | 48,675 | | | | | | 40,133 | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
Savings, NOW and money market deposits
|
| | | | 903 | | | | | | 1,445 | | |
Time deposits
|
| | | | 3,822 | | | | | | 9,180 | | |
Borrowings
|
| | | | 2,242 | | | | | | 2,386 | | |
Total interest expense
|
| | | | 6,967 | | | | | | 13,011 | | |
Net interest income
|
| | | | 41,708 | | | | | | 27,122 | | |
Provision for loan losses
|
| | | | 1,000 | | | | | | 1,250 | | |
Net interest income after provision for loan losses
|
| | | | 40,708 | | | | | | 25,872 | | |
NON-INTEREST INCOME | | | | | | | | | | | | | |
Loan fees and service charges
|
| | | | 703 | | | | | | 301 | | |
Loan servicing income
|
| | | | 504 | | | | | | 84 | | |
Service charges on deposit accounts
|
| | | | 127 | | | | | | 62 | | |
Gain on sale of investment securities available-for-sale, net
|
| | | | 240 | | | | | | — | | |
Gain on sale of loans held-for-sale
|
| | | | 1,307 | | | | | | 917 | | |
Other income
|
| | | | 468 | | | | | | — | | |
Total non-interest income
|
| | | | 3,349 | | | | | | 1,364 | | |
NON-INTEREST EXPENSE | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 15,009 | | | | | | 11,182 | | |
Occupancy and equipment
|
| | | | 4,978 | | | | | | 4,462 | | |
Data processing
|
| | | | 1,280 | | | | | | 911 | | |
Advertising and promotion
|
| | | | 118 | | | | | | 296 | | |
Acquisition costs
|
| | | | 4,430 | | | | | | 450 | | |
Professional fees
|
| | | | 1,706 | | | | | | 2,070 | | |
Other expenses
|
| | | | 2,484 | | | | | | 1,651 | | |
Total non-interest expense
|
| | | | 30,005 | | | | | | 21,022 | | |
Income before income tax expense
|
| | | | 14,052 | | | | | | 6,214 | | |
Income tax expense
|
| | | | 3,201 | | | | | | 1,240 | | |
Net income
|
| | | $ | 10,851 | | | | | $ | 4,974 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic
|
| | | $ | 2.32 | | | | | $ | 1.20 | | |
Diluted
|
| | | $ | 2.28 | | | | | $ | 1.18 | | |
Weighted average shares outstanding: | | | | | | | | | | | | | |
Basic
|
| | | | 4,669,009 | | | | | | 4,162,280 | | |
Diluted
|
| | | | 4,758,669 | | | | | | 4,226,967 | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Net income
|
| | |
$
|
10,851
|
| | | | $ | 4,974 | | |
Other comprehensive income, net of tax: | | | | | | | | | | | | | |
Change in unrealized gain on investment securities available-for-sale, net of tax of
$77 and $35, respectively |
| | | | 291 | | | | | | 134 | | |
Reclassification adjustment for gains realized in net income, net of tax of $49 and
$0, respectively |
| | | | (191) | | | | | | — | | |
Total other comprehensive income, net of tax
|
| | | | 100 | | | | | | 134 | | |
Total comprehensive income, net of tax
|
| | |
$
|
10,951
|
| | | | $ | 5,108 | | |
(in thousands, except shares)
|
| |
Common stock
(shares) |
| |
Common
stock |
| |
Capital
in excess of par |
| |
Retained
Earnings |
| |
Accumulated
other comprehensive income |
| |
Total
stockholders’ equity |
| ||||||||||||||||||
Balance at October 1, 2019
|
| | | | 4,162,904 | | | | | $ | 42 | | | | | $ | 62,740 | | | | | $ | 9,146 | | | | | $ | 22 | | | | | $ | 71,950 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4,974 | | | | | | — | | | | | | 4,974 | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 134 | | | | | | 134 | | |
Stock-based compensation
|
| | | | (3,597) | | | | | | — | | | | | | 766 | | | | | | — | | | | | | — | | | | | | 766 | | |
Exercise of stock options
|
| | | | 10,735 | | | | | | — | | | | | | 107 | | | | | | — | | | | | | — | | | | | | 107 | | |
Issuance of common stock
|
| | | | 5,102 | | | | | | — | | | | | | 112 | | | | | | — | | | | | | — | | | | | | 112 | | |
Balance at September 30, 2020
|
| | | | 4,175,144 | | | | | $ | 42 | | | | | $ | 63,725 | | | | | $ | 14,120 | | | | | $ | 156 | | | | | $ | 78,043 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 10,851 | | | | | | — | | | | | | 10,851 | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100 | | | | | | 100 | | |
Common stock issued in purchase of Savoy
|
| | | | 1,357,567 | | | | | | 14 | | | | | | 31,238 | | | | | | — | | | | | | — | | | | | | 31,252 | | |
Savoy acquisition rollover options
|
| | | | — | | | | | | — | | | | | | 1,269 | | | | | | — | | | | | | — | | | | | | 1,269 | | |
Issuance of common stock
|
| | | | 5,127 | | | | | | — | | | | | | 113 | | | | | | — | | | | | | — | | | | | | 113 | | |
Stock-based compensation, net
|
| | | | 25,588 | | | | | | — | | | | | | 901 | | | | | | — | | | | | | — | | | | | | 901 | | |
Balance at September 30, 2021
|
| | | | 5,563,426 | | | | | $ | 56 | | | | | $ | 97,246 | | | | | $ | 24,971 | | | | | $ | 256 | | | | | $ | 122,529 | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 10,851 | | | | | $ | 4,974 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Provision for loan losses
|
| | | | 1,000 | | | | | | 1,250 | | |
Depreciation and amortization
|
| | | | 1,444 | | | | | | 1,343 | | |
Originations of loans held for sale
|
| | | | — | | | | | | (5,337) | | |
Proceeds from sales of loans held for sale
|
| | | | — | | | | | | 5,338 | | |
Net gain on sale of loans
|
| | | | (1,307) | | | | | | (917) | | |
Stock-based compensation
|
| | | | 901 | | | | | | 766 | | |
Net gain on sale of securities available for sale
|
| | | | (240) | | | | | | — | | |
Net accretion of premiums, discounts and loan fees and costs
|
| | | | (3,604) | | | | | | (282) | | |
Amortization of intangible assets
|
| | | | 32 | | | | | | 5 | | |
Amortization of debt issuance costs
|
| | | | 72 | | | | | | 3 | | |
Loan servicing rights valuation adjustments
|
| | | | 251 | | | | | | 111 | | |
Deferred tax expense
|
| | | | 365 | | | | | | 202 | | |
Decrease (increase) in accrued interest receivable
|
| | | | 1,924 | | | | | | (3,501) | | |
Decrease (increase) in other assets
|
| | | | 1,398 | | | | | | (1,180) | | |
Decrease in accrued interest payable
|
| | | | (134) | | | | | | (157) | | |
Increase (decrease) in other liabilities
|
| | | | 239 | | | | | | (2,052) | | |
Net cash provided by operating activities
|
| | | | 13,192 | | | | | | 566 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of securities available for sale
|
| | | | (4,700) | | | | | | (5,000) | | |
Purchases of restricted securities
|
| | | | (494) | | | | | | (1,155) | | |
Principal repayments of securities held to maturity
|
| | | | 2,100 | | | | | | 1,288 | | |
Principal repayments of securities available for sale
|
| | | | 338 | | | | | | 34 | | |
Redemptions of restricted securities
|
| | | | 1,645 | | | | | | 2,513 | | |
Proceeds from sales of loans
|
| | | | 46,640 | | | | | | 32,561 | | |
Net decrease (increase) in loans
|
| | | | 16,996 | | | | | | (36,438) | | |
Proceeds from sales of securities available for sale
|
| | | | 3,240 | | | | | | — | | |
Purchases of premises and equipment
|
| | | | (2,079) | | | | | | (1,093) | | |
Cash acquired in business combination
|
| | | | 59,155 | | | | | | — | | |
Cash consideration paid in acquisition
|
| | | | (32,991) | | | | | | — | | |
Net cash provided by (used in) investing activities
|
| | | | 89,850 | | | | | | (7,290) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net increase in deposits
|
| | | $ | 157,725 | | | | | $ | 14,474 | | |
Net decrease in federal funds purchased
|
| | | | — | | | | | | — | | |
Advances of term FHLB borrowings
|
| | | | — | | | | | | 23,940 | | |
Repayments of Federal Home Loan Bank advances
|
| | | | (34,758) | | | | | | (55,688) | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Advances of FRB borrowings
|
| | | | — | | | | | | 16,255 | | |
Repayments of Federal Reserve Bank borrowings
|
| | | | (149,242) | | | | | | (98) | | |
Proceeds from issuance of subordinated debentures, net of issuance costs
|
| | | | 24,455 | | | | | | — | | |
Repayment of note payable
|
| | | | (15,000) | | | | | | — | | |
Net proceeds from stock options exercised
|
| | | | — | | | | | | 107 | | |
Net proceeds from issuance of common stock
|
| | | | 113 | | | | | | 112 | | |
Net cash used in financing activities
|
| | | | (16,707) | | | | | | (898) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 86,335 | | | | | | (7,622) | | |
Cash and cash equivalents, beginning of period
|
| | | | 80,209 | | | | | | 87,831 | | |
Cash and cash equivalents, end of period
|
| | | $ | 166,544 | | | | | $ | 80,209 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 7,101 | | | | | $ | 13,168 | | |
Income taxes paid
|
| | | | 1,375 | | | | | | 1,243 | | |
Supplemental non-cash disclosures: | | | | | | | | | | | | | |
Transfers from portfolio loans to loans held-for-sale
|
| | | $ | 47,826 | | | | | $ | 31,668 | | |
Transfers from loans held-for-sale to portfolio loans
|
| | | | 2,493 | | | | | | — | | |
Business combination:
|
| | | | | | | | | | | | |
Fair value of tangible assets acquired
|
| | | | 653,380 | | | | | | — | | |
Goodwill and other intangible assets
|
| | | | 17,947 | | | | | | — | | |
Liabilities assumed
|
| | | | 605,815 | | | | | | — | | |
Common stock issued in business combination
|
| | | | 31,252 | | | | | | — | | |
Stock options rolled over in acquisition
|
| | | | 1,269 | | | | | | — | | |
(in thousands)
|
| |
As Recorded
by Savoy |
| |
Fair Value
Adjustments |
| |
As Recorded
by Hanover |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 59,155 | | | | | $ | — | | | | | $ | 59,155 | | |
Investment securities available-for-sale
|
| | | | 239 | | | | | | — | | | | | | 239 | | |
Loans held for sale
|
| | | | 3,883 | | | | | | — | | | | | | 3,883 | | |
Loans held for investment
|
| | | | 569,251 | | | | | | 8,612(a) | | | | | | 577,863 | | |
Premises and equipment, net
|
| | | | 234 | | | | | | (22)(b) | | | | | | 212 | | |
Core deposit intangible
|
| | | | — | | | | | | 490(c) | | | | | | 490 | | |
Accrued interest receivable
|
| | | | 5,171 | | | | | | (650)(d) | | | | | | 4,521 | | |
Other assets
|
| | | | 10,432 | | | | | | (2,925)(e) | | | | | | 7,507 | | |
Total assets acquired
|
| | | $ | 648,365 | | | | | $ | 5,505 | | | | | | 653,870 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | $ | 340,215 | | | | | $ | 2,527(f) | | | | | $ | 342,742 | | |
Borrowings
|
| | | | 258,247 | | | | | | 301(g) | | | | | | 258,548 | | |
Accrued interest payable
|
| | | | 1,050 | | | | | | — | | | | | | 1,050 | | |
Other liabilities and accrued expenses
|
| | | | 3,817 | | | | | | (342)(h) | | | | | | 3,475 | | |
Total liabilities assumed
|
| | | $ | 603,329 | | | | | $ | 2,486 | | | | | | 605,815 | | |
Net assets acquired
|
| | | | | | | | | | | | | | | | 48,055 | | |
Total consideration
|
| | | | | | | | | | | | | | | | 65,512 | | |
Goodwill
|
| | | | | | | | | | | | | | | $ | 17,457 | | |
(in thousands, except shares)
|
| | | | | | |
Common stock issued (1,357,567 shares issued)
|
| | | $ | 32,521 | | |
Cash payments to common shareholders
|
| | | | 32,991 | | |
Total consideration paid
|
| | | $ | 65,512 | | |
(in thousands)
|
| | | | | | |
Contractually required principal and interest at acquisition
|
| | | $ | 14,416 | | |
Contractual cash flows not expected to be collected (non-accretable discount)
|
| | | | (3,467) | | |
Expected cash flows at acquisition
|
| | | | 10,949 | | |
Interest component of expected cash flows (accretable discount)
|
| | | | (540) | | |
Fair value of acquired purchased credit impaired loans
|
| | | $ | 10,409 | | |
| | |
Actual from Acquisition
Date through September 30, 2021 |
| |
Pro-Forma for Year Ended
September 30, |
| ||||||||||||
(in thousands, except share and per share data)
|
| |
2021
|
| |
2020
|
| ||||||||||||
Net interest income
|
| | | $ | 20,736 | | | | | $ | 54,841 | | | | | $ | 48,555 | | |
Non-interest income
|
| | | | 2,171 | | | | | | 10,803 | | | | | | 5,785 | | |
Net income
|
| | | | 7,420 | | | | | | 24,173 | | | | | | 12,770 | | |
Pro-forma earnings per share: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 1.33 | | | | | $ | 4.35 | | | | | $ | 2.31 | | |
Diluted
|
| | | $ | 1.31 | | | | | $ | 4.28 | | | | | $ | 2.29 | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 5,558,008 | | | | | | 5,561,449 | | | | | | 5,519,847 | | |
Diluted
|
| | | | 5,643,529 | | | | | | 5,651,109 | | | | | | 5,584,534 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| ||||||||||||
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 722 | | | | | $ | 112 | | | | | $ | (1) | | | | | $ | 833 | | |
Corporate bonds
|
| | | | 6,700 | | | | | | 214 | | | | | | — | | | | | | 6,914 | | |
Total available-for-sale
|
| | | $ | 7,422 | | | | | $ | 326 | | | | | $ | (1) | | | | | $ | 7,747 | | |
Held-to-maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 2,417 | | | | | $ | 74 | | | | | $ | — | | | | | $ | 2,491 | | |
U.S. GSE commercial mortgage-backed securities
|
| | | | 2,694 | | | | | | 175 | | | | | | — | | | | | | 2,869 | | |
Corporate bonds
|
| | | | 3,500 | | | | | | 9 | | | | | | (4) | | | | | | 3,505 | | |
Total held-to-maturity
|
| | | | 8,611 | | | | | | 258 | | | | | | (4) | | | | | | 8,865 | | |
Total securities
|
| | | $ | 16,033 | | | | | $ | 584 | | | | | $ | (5) | | | | | $ | 16,612 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| ||||||||||||
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 838 | | | | | $ | 124 | | | | | $ | — | | | | | $ | 962 | | |
Corporate bonds
|
| | | | 5,000 | | | | | | 73 | | | | | | — | | | | | | 5,073 | | |
Total available-for-sale
|
| | | $ | 5,838 | | | | | $ | 197 | | | | | $ | — | | | | | $ | 6,035 | | |
Held-to-maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 4,478 | | | | | $ | 118 | | | | | $ | — | | | | | $ | 4,596 | | |
U.S. GSE commercial mortgage-backed securities
|
| | | | 2,749 | | | | | | 253 | | | | | | — | | | | | | 3,002 | | |
Corporate bonds
|
| | | | 3,500 | | | | | | 33 | | | | | | — | | | | | | 3,533 | | |
Total held-to-maturity
|
| | | | 10,727 | | | | | | 404 | | | | | | — | | | | | | 11,131 | | |
Total securities
|
| | | $ | 16,565 | | | | | $ | 601 | | | | | $ | — | | | | | $ | 17,166 | | |
| | |
September 30, 2021
|
| |||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Fair Value
|
| ||||||
Available-for-sale: | | | | | | | | | | | | | |
Due in one year or less
|
| | | $ | — | | | | | $ | — | | |
Due after one year through five years
|
| | | | — | | | | | | — | | |
Due after five years through ten years
|
| | | | 6,700 | | | | | | 6,914 | | |
Due after ten years
|
| | | | — | | | | | | — | | |
Residential mortgage-backed securities
|
| | | | 722 | | | | | | 833 | | |
Total available-for-sale
|
| | | $ | 7,422 | | | | | $ | 7,747 | | |
| | |
September 30, 2021
|
| |||||||||
(in thousands)
|
| |
Amortized
Cost |
| |
Fair Value
|
| ||||||
Held-to-maturity: | | | | | | | | | | | | | |
Due in one year or less
|
| | | $ | — | | | | | $ | — | | |
Due after one year through five years
|
| | | | 1,500 | | | | | | 1,496 | | |
Due after five years through ten years
|
| | | | 2,000 | | | | | | 2,009 | | |
Due after ten years
|
| | | | — | | | | | | — | | |
Residential mortgage-backed securities
|
| | | | 2,417 | | | | | | 2,491 | | |
Commercial mortgage-backed securities
|
| | | | 2,694 | | | | | | 2,869 | | |
Total held-to-maturity
|
| | | $ | 8,611 | | | | | $ | 8,865 | | |
|
| | |
Year Ended
September 30, |
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Proceeds from sales
|
| | | $ | 3,240 | | | | | $ | — | | |
Gross realized gains on sales
|
| | | $ | 240 | | | | | $ | — | | |
Gross realized losses on sales
|
| | | | — | | | | | | — | | |
Total realized gains, net(1)
|
| | | $ | 240 | | | | | $ | — | | |
| | |
Less than Twelve Months
|
| |
Twelve Months or Longer
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
(in thousands, except number of
securities) |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Number of
Securities |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |||||||||||||||||||||
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed securities
|
| | | $ | 143 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | | 6 | | | | | $ | 143 | | | | | $ | (1) | | |
Total available-for-sale
|
| | | $ | 143 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | | 6 | | | | | $ | 143 | | | | | $ | (1) | | |
Held-to-maturity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate bonds
|
| | | $ | 1,496 | | | | | $ | (4) | | | | | $ | — | | | | | $ | — | | | | | | 1 | | | | | $ | 1,496 | | | | | $ | (4) | | |
Total held-to-maturity
|
| | | $ | 1,496 | | | | | $ | (4) | | | | | $ | — | | | | | $ | — | | | | | | 1 | | | | | $ | 1,496 | | | | | $ | (4) | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Real estate: | | | | | | | | | | | | | |
Residential
|
| | | $ | 444,011 | | | | | $ | 454,073 | | |
Multi-family
|
| | | | 266,294 | | | | | | 136,539 | | |
Commercial
|
| | | | 348,641 | | | | | | 113,615 | | |
Total real estate
|
| | | | 1,058,946 | | | | | | 704,227 | | |
Commercial and industrial
|
| | | | 172,274 | | | | | | 21,100 | | |
Construction
|
| | | | 15,374 | | | | | | — | | |
Consumer
|
| | | | 11 | | | | | | 24 | | |
| | | | | 1,246,605 | | | | | | 725,351 | | |
Deferred loan fees and costs, net
|
| | | | 520 | | | | | | (332) | | |
Total loans
|
| | | | 1,247,125 | | | | | | 725,019 | | |
Allowance for loan losses
|
| | | | (8,552) | | | | | | (7,869) | | |
Net loans
|
| | | $ | 1,238,573 | | | | | $ | 717,150 | | |
(in thousands)
|
| | | | | | |
Commercial real estate
|
| | | $ | 8,324 | | |
Commercial and industrial
|
| | | | 1,917 | | |
Total recorded investment
|
| | | $ | 10,241 | | |
(in thousands)
|
| |
Year Ended
September 30, 2021 |
| |||
Balance at beginning of period
|
| | | $ | — | | |
Accretable differences acquired
|
| | | | 540 | | |
Accretion
|
| | | | (194) | | |
Adjustments to accretable difference due to changes in expected cash flows
|
| | | | — | | |
Ending balance
|
| | | $ | 346 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Total
|
| |||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 433,299 | | | | | $ | 5,115 | | | | | $ | 5,594 | | | | | $ | 3 | | | | | $ | 444,011 | | |
Multi-family
|
| | | | 262,984 | | | | | | 2,852 | | | | | | 458 | | | | | | — | | | | | | 266,294 | | |
Commercial
|
| | | | 316,727 | | | | | | 16,274 | | | | | | 15,640 | | | | | | — | | | | | | 348,641 | | |
Commercial and industrial
|
| | | | 168,104 | | | | | | 540 | | | | | | 3,630 | | | | | | — | | | | | | 172,274 | | |
Construction
|
| | | | 13,607 | | | | | | 1,767 | | | | | | — | | | | | | — | | | | | | 15,374 | | |
Consumer
|
| | | | 11 | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | |
Total loans
|
| | | $ | 1,194,732 | | | | | $ | 26,548 | | | | | $ | 25,322 | | | | | $ | 3 | | | | | $ | 1,246,605 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Total
|
| |||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 449,834 | | | | | $ | 3,702 | | | | | $ | 537 | | | | | $ | — | | | | | $ | 454,073 | | |
Multi-family
|
| | | | 135,197 | | | | | | 1,294 | | | | | | 48 | | | | | | — | | | | | | 136,539 | | |
Commercial
|
| | | | 111,314 | | | | | | 893 | | | | | | 1,408 | | | | | | — | | | | | | 113,615 | | |
Commercial and industrial
|
| | | | 20,767 | | | | | | — | | | | | | 333 | | | | | | — | | | | | | 21,100 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | 24 | | | | | | — | | | | | | — | | | | | | — | | | | | | 24 | | |
Total loans
|
| | | $ | 717,136 | | | | | $ | 5,889 | | | | | $ | 2,326 | | | | | $ | — | | | | | $ | 725,351 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
30-59
Days Past Due |
| |
60-89
Days Past Due |
| |
Greater than
89 days Past Due |
| |
Non-accrual
|
| |
Total past
due and Non-accrual |
| |
Purchased
Credit Impaired |
| |
Current
|
| |
Total
Loans |
| ||||||||||||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 1,032 | | | | | $ | 1,601 | | | | | $ | — | | | | | $ | 5,554(1) | | | | | $ | 8,187 | | | | | $ | — | | | | | $ | 435,953 | | | | | $ | 444,140 | | |
Multi-family
|
| | | | — | | | | | | — | | | | | | — | | | | | | 458(2) | | | | | | 458 | | | | | | — | | | | | | 266,256 | | | | | | 266,714 | | |
Commercial
|
| | | | 1,939 | | | | | | — | | | | | | — | | | | | | 1,016(3) | | | | | | 2,955 | | | | | | 8,324 | | | | | | 337,528 | | | | | | 348,807 | | |
Commercial and industrial
|
| | | | 3,641 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,641 | | | | | | 1,917 | | | | | | 166,519 | | | | | | 172,077 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,374 | | | | | | 15,374 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 13 | | | | | | 13 | | |
Total loans
|
| | | $ | 6,612 | | | | | $ | 1,601 | | | | | $ | — | | | | | $ | 7,028 | | | | | $ | 15,241 | | | | | $ | 10,241 | | | | | $ | 1,221,643 | | | | | $ | 1,247,125 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
30-59
Days Past Due |
| |
60-89
Days Past Due |
| |
Greater than
89 days Past Due |
| |
Non-accrual(1)
|
| |
Total past
due and Non-accrual |
| |
Purchased
Credit Impaired |
| |
Current
|
| |
Total
Loans |
| ||||||||||||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 4,507 | | | | | $ | — | | | | | $ | — | | | | | $ | 538 | | | | | $ | 5,045 | | | | | $ | — | | | | | $ | 448,715 | | | | | $ | 453,760 | | |
Multi-family
|
| | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | 47 | | | | | | 47 | | | | | | — | | | | | | 136,690 | | | | | | 136,737 | | |
Commercial
|
| | |
|
—
|
| | | |
|
—
|
| | | | | 296 | | | | | | 34 | | | | | | 330 | | | | | | — | | | | | | 113,428 | | | | | | 113,758 | | |
Commercial and industrial
|
| | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | 334 | | | | | | 334 | | | | | | — | | | | | | 20,404 | | | | | | 20,738 | | |
Consumer
|
| | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | |
|
—
|
| | | | | — | | | | | | 26 | | | | | | 26 | | |
Total loans
|
| | | $ | 4,507 | | | | |
$
|
—
|
| | | | $ | 296 | | | | | $ | 953 | | | | | $ | 5,756 | | | | | $ | — | | | | | $ | 719,263 | | | | | $ | 725,019 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Allowance for
Loan Losses |
| |
Interest
Income Recognized |
| |
Average
Recorded Investment |
| |||||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 7,382 | | | | | $ | 7,198 | | | | | $ | — | | | | | $ | 103 | | | | | $ | 4,994 | | |
Multi-family
|
| | | | 382 | | | | | | 458 | | | | | | — | | | | | | 7 | | | | | | 177 | | |
Commercial
|
| | | | 522 | | | | | | 517 | | | | | | — | | | | | | 3 | | | | | | 197 | | |
Commercial and industrial
|
| | | | 535 | | | | | | 500 | | | | | | — | | | | | | — | | | | | | 173 | | |
Total
|
| | | $ | 8,821 | | | | | $ | 8,673 | | | | | $ | — | | | | | $ | 113 | | | | | $ | 5,541 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Allowance for
Loan Losses |
| |
Interest
Income Recognized |
| |
Average
Recorded Investment |
| |||||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 2,221 | | | | | $ | 2,221 | | | | | $ | — | | | | | $ | 87 | | | | | $ | 2,237 | | |
Multi-family
|
| | | | 47 | | | | | | 47 | | | | | | — | | | | | | 16 | | | | | | 66 | | |
Commercial
|
| | | | 629 | | | | | | 629 | | | | | | — | | | | | | 44 | | | | | | 651 | | |
Commercial and industrial
|
| | | | 634 | | | | | | 334 | | | | | | — | | | | | | — | | | | | | 634 | | |
Total
|
| | | $ | 3,531 | | | | | $ | 3,231 | | | | | $ | — | | | | | $ | 147 | | | | | $ | 3,588 | | |
| | |
Year Ended September 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate |
| |
Multi-
Family |
| |
Commercial
Real Estate |
| |
Commercial
and Industrial |
| |
Construction
|
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 5,103 | | | | | $ | 1,506 | | | | | $ | 1,221 | | | | | $ | 38 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 7,869 | | |
Provision for loan losses
|
| | | | (681) | | | | | | 959 | | | | | | 693 | | | | | | 29 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Loans charged-off
|
| | | | (267) | | | | | | (32) | | | | | | (30) | | | | | | — | | | | | | — | | | | | | — | | | | | | (329) | | |
Recoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | 12 | | | | | | — | | | | | | — | | | | | | 12 | | |
Ending balance
|
| | | $ | 4,155 | | | | | $ | 2,433 | | | | | $ | 1,884 | | | | | $ | 79 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 8,552 | | |
| | |
Year Ended September 30, 2020
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate |
| |
Multi-
Family |
| |
Commercial
Real Estate |
| |
Commercial
and Industrial |
| |
Construction
|
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 4,647 | | | | | $ | 1,215 | | | | | $ | 1,193 | | | | | $ | 75 | | | | | $ | — | | | | | $ | 13 | | | | | $ | 7,143 | | |
Provision for loan losses
|
| | | | 456 | | | | | | 291 | | | | | | 252 | | | | | | 263 | | | | | | — | | | | | | (12) | | | | | | 1,250 | | |
Loans charged-off
|
| | | | — | | | | | | — | | | | | | (224) | | | | | | (300) | | | | | | — | | | | | | — | | | | | | (524) | | |
Recoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ending balance
|
| | | $ | 5,103 | | | | | $ | 1,506 | | | | | $ | 1,221 | | | | | $ | 38 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 7,869 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate |
| |
Multi-
Family |
| |
Commercial
Real Estate |
| |
Commercial &
Industrial |
| |
Construction
|
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for
impairment |
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment
|
| | | | 4,155 | | | | | | 2,433 | | | | | | 1,884 | | | | | | 79 | | | | | | — | | | | | | 1 | | | | | | 8,552 | | |
Purchased-credit
impaired |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total allowance for loan losses
|
| | | $ | 4,155 | | | | | $ | 2,433 | | | | | $ | 1,884 | | | | | $ | 79 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 8,552 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for
impairment |
| | | $ | 7,198 | | | | | $ | 458 | | | | | $ | 517 | | | | | $ | 500 | | | | | $ | — | | | | | $ | — | | | | | $ | 8,673 | | |
Collectively evaluated for impairment
|
| | | | 436,942 | | | | | | 266,256 | | | | | | 339,966 | | | | | | 169,660 | | | | | | 15,374 | | | | | | 13 | | | | | | 1,228,211 | | |
Purchased-credit
impaired |
| | | | — | | | | | | — | | | | | | 8,324 | | | | | | 1,917 | | | | | | — | | | | | | — | | | | | | 10,241 | | |
Total loans held for investment
|
| | | $ | 444,140 | | | | | $ | 266,714 | | | | | $ | 348,807 | | | | | $ | 172,077 | | | | | $ | 15,374 | | | | | $ | 13 | | | | | $ | 1,247,125 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Residential
Real Estate |
| |
Multi-
Family |
| |
Commercial
Real Estate |
| |
Commercial &
Industrial |
| |
Construction
|
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment
|
| | | | 5,103 | | | | | | 1,506 | | | | | | 1,221 | | | | | | 38 | | | | | | — | | | | | | 1 | | | | | | 7,869 | | |
Purchased-credit
impaired |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total allowance for loan losses
|
| | | $ | 5,103 | | | | | $ | 1,506 | | | | | $ | 1,221 | | | | | $ | 38 | | | | | $ | — | | | | | $ | 1 | | | | | $ | 7,869 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 2,221 | | | | | $ | 47 | | | | | $ | 629 | | | | | $ | 334 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,231 | | |
Collectively evaluated for impairment
|
| | | | 451,539 | | | | | | 136,690 | | | | | | 113,129 | | | | | | 20,404 | | | | | | — | | | | | | 26 | | | | | | 721,788 | | |
Purchased-credit
impaired |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total loans held for investment
|
| | | $ | 453,760 | | | | | $ | 136,737 | | | | | $ | 113,758 | | | | | $ | 20,738 | | | | | $ | — | | | | | $ | 26 | | | | | $ | 725,019 | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Land
|
| | | $ | 1,600 | | | | | $ | 1,600 | | |
Buildings and improvements
|
| | | | 9,974 | | | | | | 9,434 | | |
Leasehold improvements
|
| | | | 2,354 | | | | | | 2,001 | | |
Furniture, fixtures and equipment
|
| | | | 5,269 | | | | | | 5,454 | | |
Construction in progress
|
| | | | 1,124 | | | | | | 329 | | |
| | | | | 20,321 | | | | | | 18,818 | | |
Less: Accumulated depreciation and amortization
|
| | | | (5,318) | | | | | | (4,662) | | |
Premises and equipment, net
|
| | | $ | 15,003 | | | | | $ | 14,156 | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Non-interest bearing: | | | | | | | | | | | | | |
Demand
|
| | | $ | 191,537 | | | | | $ | 82,350 | | |
Interest-bearing: | | | | | | | | | | | | | |
NOW
|
| | | | 353,977 | | | | | | 34,086 | | |
Money market
|
| | | | 181,148 | | | | | | 110,353 | | |
Savings
|
| | | | 60,164 | | | | | | 43,218 | | |
Time deposits $250,000 and greater
|
| | | | 60,242 | | | | | | 78,628 | | |
Time deposits less than $250,000
|
| | | | 317,594 | | | | | | 316,125 | | |
Total interest-bearing
|
| | | | 973,125 | | | | | | 582,410 | | |
Total deposits
|
| | | $ | 1,164,662 | | | | | $ | 664,760 | | |
(in thousands)
|
| |
September 30,
2021 |
| |||
2022
|
| | | $ | 277,431 | | |
2023
|
| | | | 49,059 | | |
2024
|
| | | | 25,248 | | |
2025
|
| | | | 18,002 | | |
2026
|
| | | | 7,104 | | |
Thereafter
|
| | | | 992 | | |
Total
|
| | | $ | 377,836 | | |
(in thousands)
|
| |
Balance at September 30,
2021 |
| |||||||||
Contractual Maturity
|
| |
Amount
|
| |
Weighted
Average Rate |
| ||||||
2022
|
| | | $ | 4,000 | | | | | | 2.02% | | |
2023
|
| | | | 12,040 | | | | | | 2.23% | | |
2024
|
| | | | 18,860 | | | | | | 0.98% | | |
2025
|
| | | | 7,080 | | | | | | 0.58% | | |
Total
|
| | | $ | 41,980 | | | | | | 1.37% | | |
| | |
Balance at September 30,
2020 |
| |||||||||
Contractual Maturity
|
| |
Amount
|
| |
Weighted
Average Rate |
| ||||||
2021
|
| | | $ | 34,758 | | | | | | 1.67% | | |
2022
|
| | | | 4,000 | | | | | | 2.02% | | |
2023
|
| | | | 4,300 | | | | | | 1.15% | | |
2024
|
| | | | 18,860 | | | | | | 0.98% | | |
Thereafter
|
| | | | 7,080 | | | | | | 0.58% | | |
Total
|
| | | $ | 68,998 | | | | | | 1.36% | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Goodwill at beginning of period
|
| | | $ | 1,901 | | | | | $ | 1,482 | | |
Acquisition
|
| | | | 17,457 | | | | | | — | | |
Measurement period adjustment for previous acquisition
|
| | | | (190) | | | | | | 419 | | |
Goodwill at end of period
|
| | | $ | 19,168 | | | | | $ | 1,901 | | |
Other intangible assets at beginning of period
|
| | | $ | 22 | | | | | $ | 27 | | |
Acquisition
|
| | | | 490 | | | | | | — | | |
Amortization
|
| | | | (32) | | | | | | (5) | | |
Other intangible assets at end of period
|
| | | $ | 480 | | | | | $ | 22 | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Gross carrying amount
|
| | | $ | 517 | | | | | $ | 27 | | |
Accumulated amortization
|
| | | | (37) | | | | | | (5) | | |
Net book value
|
| | | $ | 480 | | | | | $ | 22 | | |
(in thousands)
|
| | | | | | |
2022
|
| | | $ | 81 | | |
2023
|
| | | | 72 | | |
2024
|
| | | | 63 | | |
2025
|
| | | | 55 | | |
2026
|
| | | | 49 | | |
Thereafter
|
| | | | 160 | | |
Total
|
| | | $ | 480 | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Current: | | | | | | | | | |||||
Federal
|
| | | $ | 2,594 | | | | | $ | 1,303 | | |
State
|
| | | | 242 | | | | | | 116 | | |
Total current
|
| | | | 2,836 | | | | | | 1,419 | | |
Deferred: | | | | | | | | | |||||
Federal
|
| | | | 394 | | | | | | 91 | | |
State
|
| | | | (383) | | | | | | (1,200) | | |
Total deferred
|
| | | | 11 | | | | | | (1,109) | | |
Change in valuation allowance
|
| | | | 354 | | | | | | 930 | | |
Total income tax expense
|
| | | $ | 3,201 | | | | | $ | 1,240 | | |
| | |
Year Ended September 30,
|
| |||||||||||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||||||||
(in thousands)
|
| |
Amount
|
| |
Percentage
of Pre-tax Earnings |
| |
Amount
|
| |
Percentage
of Pre-tax Earnings |
| ||||||||||||
Federal income tax expense computed by applying the statutory rate to income before income taxes
|
| | | $ | 2,951 | | | | | | 21.0% | | | | | | 1,305 | | | | | | 21.0% | | |
State taxes, net of federal benefit
|
| | | | 48 | | | | | | 0.3% | | | | | | (646) | | | | | | -10.4% | | |
Non-deductible transaction costs
|
| | | | 204 | | | | | | 1.5% | | | | | | 43 | | | | | | 0.7% | | |
Other
|
| | | | (356) | | | | | | -2.5% | | | | | | (392) | | | | | | -6.3% | | |
Valuation allowance
|
| | | | 354 | | | | | | 2.5% | | | | | | 930 | | | | | | 15.0% | | |
Income tax expense
|
| | | $ | 3,201 | | | | | | 22.8% | | | | | $ | 1,240 | | | | | | 20.0% | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses
|
| | | $ | 2,602 | | | | | $ | 2,468 | | |
Organizational costs
|
| | | | 76 | | | | | | 46 | | |
Start-up and other costs
|
| | | | 77 | | | | | | 115 | | |
Net operating loss carryforwards
|
| | | | 2,443 | | | | | | 1,887 | | |
Accrued SERP
|
| | | | 1,288 | | | | | | 1,462 | | |
Purchase accounting fair value adjustments
|
| | | | 2,034 | | | | | | — | | |
Other assets
|
| | | | 1,984 | | | | | | 1,134 | | |
Total deferred tax assets
|
| | | | 10,504 | | | | | | 7,112 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Depreciation
|
| | | | (771) | | | | | | (734) | | |
Deferred loan fees/costs
|
| | | | (883) | | | | | | (651) | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Purchase accounting fair value adjustments
|
| | | | — | | | | | | (670) | | |
Tax bad debt reserve
|
| | | | (204) | | | | | | (124) | | |
Mortgage servicing rights
|
| | | | (1,122) | | | | | | (49) | | |
Unrealized gain on securities AFS
|
| | | | (70) | | | | | | (41) | | |
Total deferred tax liabilities
|
| | | | (3,050) | | | | | | (2,269) | | |
Total
|
| | | | 7,454 | | | | | | 4,843 | | |
Valuation allowance
|
| | | | (3,896) | | | | | | (2,765) | | |
Net deferred tax asset
|
| | | $ | 3,558 | | | | | $ | 2,078 | | |
|
| | |
Number of
Options |
| |
Weighted
Average Exercise Price |
| |
Aggregate
Intrinsic Value |
| |
Weighted
Average Remaining Contractual Term |
| ||||||||||||
Outstanding, October 1, 2020
|
| | | | 155,506 | | | | | $ | 11.35 | | | | | $ | 1,623 | | | | | | 4.66 years | | |
Converted in Savoy acquisition
|
| | | | 71,900 | | | | | | 5.51 | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Forfeited
|
| | |
|
—
|
| | | |
|
—
|
| | | | | | | | | | | | | |
Outstanding, September 30, 2021(1)
|
| | | | 227,406 | | | | | $ | 9.50 | | | | | $ | 2,043 | | | | | | 3.51 years | | |
| | |
Shares
|
| |
Weighted Average
Grant Date Fair Value |
| ||||||
Unvested, October 1, 2020
|
| | | | 95,052 | | | | | $ | 19.56 | | |
Granted
|
| | | | 28,727 | | | | | | 19.88 | | |
Vested
|
| | | | (46,112) | | | | | | 19.16 | | |
Forfeited
|
| | | | (1,834) | | | | | | 21.85 | | |
Unvested, September 30, 2021
|
| | | | 75,833 | | | | | | 19.87 | | |
(in thousands)
|
| | | | | | |
Beginning balance, October 1, 2020
|
| | | $ | 2,577 | | |
New loans
|
| | | | — | | |
Repayments
|
| | | | (87) | | |
Ending balance, September 30, 2021
|
| | | $ | 2,490 | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Standby letters of credit
|
| | | $ | 786 | | | | | $ | 159 | | |
Loan commitments outstanding
|
| | | | 81,040 | | | | | | 17,405 | | |
Unused lines of credit
|
| | | | 24,639 | | | | | | 11,218 | | |
Total
|
| | | $ | 106,465 | | | | | $ | 28,782 | | |
(in thousands)
|
| |
Total
|
| |||
2022
|
| | | $ | 1,886 | | |
2023
|
| | | | 1,921 | | |
2024
|
| | | | 1,948 | | |
2025
|
| | | | 1,951 | | |
2026
|
| | | | 1,621 | | |
Thereafter
|
| | | | 4,729 | | |
Total
|
| | | $ | 14,056 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Actual Capital
|
| |
Minimum Capital
Adequacy Requirement |
| |
Minimum Capital
Adequacy Requirement with Capital Conservation Buffer |
| |
Minimum To Be Well
Capitalized Under Prompt Corrective Action Provisions |
| ||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||||||||
Total capital to risk-weighted assets
|
| | | $ | 132,554 | | | | | | 15.59% | | | | | $ | 68,040 | | | | | | 8.00% | | | | | $ | 89,303 | | | | | | 10.50% | | | | | $ | 85,050 | | | | | | 10.00% | | |
Tier 1 capital to risk-weighted assets
|
| | | | 123,666 | | | | | | 14.54 | | | | | | 51,030 | | | | | | 6.00 | | | | | | 72,293 | | | | | | 8.50 | | | | | | 68,040 | | | | | | 8.00 | | |
Common equity tier 1
capital to risk-weighted assets |
| | | | 123,666 | | | | | | 14.54 | | | | | | 38,273 | | | | | | 4.50 | | | | | | 59,535 | | | | | | 7.00 | | | | | | 55,283 | | | | | | 6.50 | | |
Tier 1 capital to average total assets
|
| | | | 123,666 | | | | | | 9.45 | | | | | | 52,338 | | | | | | 4.00 | | | | | | N/A | | | | | | N/A | | | | | | 65,423 | | | | | | 5.00 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Actual Capital
|
| |
Minimum Capital
Adequacy Requirement |
| |
Minimum Capital
Adequacy Requirement with Capital Conservation Buffer |
| |
Minimum To Be Well
Capitalized Under Prompt Corrective Action Provisions |
| ||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||||||||
Total capital to risk-weighted assets
|
| | | $ | 95,079 | | | | | | 20.57% | | | | | $ | 36,970 | | | | | | 8.00% | | | | | $ | 48,523 | | | | | | 10.50% | | | | | $ | 46,212 | | | | | | 10.00% | | |
Tier 1 capital to risk-weighted assets
|
| | | | 89,275 | | | | | | 19.32 | | | | | | 27,727 | | | | | | 6.00 | | | | | | 39,281 | | | | | | 8.50 | | | | | | 36,970 | | | | | | 8.00 | | |
Common equity tier 1 capital to risk-weighted assets
|
| | | | 89,275 | | | | | | 19.32 | | | | | | 20,796 | | | | | | 4.50 | | | | | | 32,349 | | | | | | 7.00 | | | | | | 30,038 | | | | | | 6.50 | | |
Tier 1 capital to average total assets
|
| | | | 89,275 | | | | | | 11.22 | | | | | | 31,820 | | | | | | 4.00 | | | | | | N/A | | | | | | N/A | | | | | | 39,775 | | | | | | 5.00 | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| |||||||||||||||
(in thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed
securities |
| | | $ | 833 | | | | | $ | — | | | | | $ | 833 | | | | | $ | — | | |
Corporate bonds
|
| | | | 6,914 | | | | | | — | | | | | | 6,914 | | | | | | — | | |
Mortgage servicing rights
|
| | | | 3,690 | | | | | | — | | | | | | — | | | | | | 3,690 | | |
Total
|
| | | $ | 11,437 | | | | | $ | — | | | | | $ | 7,747 | | | | | $ | 3,690 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| |||||||||||||||
(in thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. GSE residential mortgage-backed
securities |
| | | $ | 962 | | | | |
$
|
—
|
| | | | $ | 962 | | | | |
$
|
—
|
| |
Corporate bonds
|
| | | | 5,073 | | | | | | — | | | | | | 5,073 | | | | | | — | | |
Mortgage servicing rights
|
| | | | 155 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 155 | | |
Total
|
| | | $ | 6,190 | | | | |
$
|
—
|
| | | | $ | 6,035 | | | | | $ | 155 | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Beginning balance
|
| | |
$
|
155
|
| | | | $ | 266 | | |
Loan servicing rights obtained from acquisition of Savoy
|
| | | | 3,777 | | | | | | — | | |
Additions
|
| | | | 10 | | | | | | — | | |
Adjustment to fair value
|
| | | | (252) | | | | | | (111) | | |
Ending balance
|
| | |
$
|
3,690
|
| | | | $ | 155 | | |
Assets Measured at Fair Value on a Non-recurring Basis | | | | | | | | | | | | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| |||||||||||||||||||||
(in thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total Fair
Value |
| |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 166,544 | | | | | $ | 166,544 | | | | | $ | — | | | | | $ | — | | | | | $ | 166,544 | | |
Securities held-to-maturity
|
| | | | 8,611 | | | | | | — | | | | | | 8,865 | | | | | | — | | | | | | 8,865 | | |
Securities available-for-sale
|
| | | | 7,747 | | | | | | — | | | | | | 7,747 | | | | | | — | | | | | | 7,747 | | |
Federal Home Loan Bank stock
|
| | | | 3,714 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Loans, net
|
| | | | 1,238,573 | | | | | | — | | | | | | — | | | | | | 1,278,056 | | | | | | 1,278,056 | | |
Accrued interest receivable
|
| | | | 9,363 | | | | | | — | | | | | | 211 | | | | | | 9,152 | | | | | | 9,363 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Time deposits
|
| | | | 377,836 | | | | | | — | | | | | | 378,333 | | | | | | — | | | | | | 378,333 | | |
Demand and other deposits
|
| | | | 786,826 | | | | | | 786,826 | | | | | | — | | | | | | — | | | | | | 786,826 | | |
Borrowings
|
| | | | 159,642 | | | | | | — | | | | | | 159,608 | | | | | | — | | | | | | 159,608 | | |
Subordinated debentures
|
| | | | 24,513 | | | | | | — | | | | | | 27,092 | | | | | | — | | | | | | 27,092 | | |
Accrued interest payable
|
| | | | 1,290 | | | | | | 1 | | | | | | 713 | | | | | | 576 | | | | | | 1,290 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||
| | | | | | | | |
Fair Value Measurements Using:
|
| |||||||||||||||||||||
(in thousands)
|
| |
Carrying
Amount |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total Fair
Value |
| |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 80,209 | | | | | $ | 80,209 | | | | |
$
|
—
|
| | | |
$
|
—
|
| | | | $ | 80,209 | | |
Securities held-to-maturity
|
| | | | 10,727 | | | | |
|
—
|
| | | | | 11,131 | | | | |
|
—
|
| | | | | 11,131 | | |
Securities available-for-sale
|
| | | | 6,035 | | | | |
|
—
|
| | | | | 6,035 | | | | |
|
—
|
| | | | | 6,035 | | |
Federal Home Loan Bank stock
|
| | | | 4,170 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Loans, net
|
| | | | 717,150 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 746,969 | | | | | | 746,969 | | |
Accrued interest receivable
|
| | | | 6,766 | | | | |
|
—
|
| | | | | 218 | | | | | | 6,548 | | | | | | 6,766 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Time deposits
|
| | | | 394,753 | | | | |
|
—
|
| | | | | 397,842 | | | | |
|
—
|
| | | | | 397,842 | | |
Demand and other deposits
|
| | | | 270,007 | | | | | | 270,007 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 270,007 | | |
Borrowings
|
| | | | 85,154 | | | | |
|
—
|
| | | | | 87,052 | | | | |
|
—
|
| | | | | 87,052 | | |
Note payable
|
| | | | 14,984 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 15,329 | | | | | | 15,329 | | |
Accrued interest payable
|
| | | | 374 | | | | | | 1 | | | | | | 339 | | | | | | 34 | | | | | | 374 | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash and deposits due from banks
|
| | | $ | 571 | | | | | $ | 514 | | |
Investment in bank
|
| | | | 146,232 | | | | | | 91,792 | | |
Other assets
|
| | | | 1,050 | | | | | | 755 | | |
Total Assets
|
| | | $ | 147,853 | | | | | $ | 93,061 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Note payable
|
| | | $ | — | | | | | $ | 14,984 | | |
Subordinated debentures
|
| | | | 24,513 | | | | | | — | | |
Accrued interest payable
|
| | | | 576 | | | | | | 34 | | |
Accrued expenses and other liabilities
|
| | | | 235 | | | | | | — | | |
Total Liabilities
|
| | | | 25,324 | | | | | | 15,018 | | |
Total Stockholders’ equity
|
| | | | 122,529 | | | | | | 78,043 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 147,853 | | | | | $ | 93,061 | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Interest income
|
| | | $ | — | | | | | $ | 3 | | |
Interest expense
|
| | | | 1,361 | | | | | | 895 | | |
Loss before income taxes and equity in undistributed earnings of the bank
|
| | | | (1,361) | | | | | | (892) | | |
Income tax benefit
|
| | | | 296 | | | | | | 187 | | |
Equity in undistributed earnings of the bank
|
| | | | 11,916 | | | | | | 5,679 | | |
Net Income
|
| | | $ | 10,851 | | | | | $ | 4,974 | | |
| | |
September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 10,851 | | | | | $ | 4,974 | | |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | | | | | |
Equity in undistributed earnings of the bank
|
| | | | (11,916) | | | | | | (5,679) | | |
Amortization of debt issuance costs
|
| | | | 72 | | | | | | 3 | | |
Increase in other assets
|
| | | | (295) | | | | | | (187) | | |
Increase in accrued interest payable
|
| | | | 542 | | | | | | 29 | | |
Increase (decrease) in other liabilities
|
| | | | 235 | | | | | | (13) | | |
Net cash used in operating activities
|
| | | | (511) | | | | | | (873) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment in bank
|
| | | | (9,000) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (9,000) | | | | | | — | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from issuance of subordinated debentures, net of issuance costs
|
| | | | 24,455 | | | | | | — | | |
Repayment of note payable
|
| | | | (15,000) | | | | | | — | | |
Net proceeds from stock options exercised
|
| | | | — | | | | | | 107 | | |
Net proceeds from issuance of common stock
|
| | | | 113 | | | | | | 112 | | |
Net cash provided by financing activities
|
| | | | 9,568 | | | | | | 219 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 57 | | | | | | (654) | | |
Cash and cash equivalents, beginning of period
|
| | | | 514 | | | | | | 1,168 | | |
Cash and cash equivalents, end of period
|
| | | $ | 571 | | | | | $ | 514 | | |
Supplemental non-cash disclosures: | | | | | | | | | | | | | |
Common stock issued in acquisition
|
| | | $ | 31,252 | | | | | $ | — | | |
Stock options rolled over in acquisition
|
| | | | 1,269 | | | | | | — | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands, except share and per share data)
|
| |
2021
|
| |
2020
|
| ||||||
Net income
|
| | | $ | 10,851 | | | | | $ | 4,974 | | |
Weighted-average common shares – basic
|
| | | | 4,669,009 | | | | | | 4,162,280 | | |
Add: Dilutive effect of stock options
|
| | | | 89,660 | | | | | | 64,687 | | |
Weighted-average common shares – diluted
|
| | | | 4,758,669 | | | | | | 4,226,967 | | |
Basic earnings per share
|
| | | $ | 2.32 | | | | | $ | 1.20 | | |
Diluted earnings per share
|
| | | $ | 2.28 | | | | | $ | 1.18 | | |
(in thousands)
|
| |
Unrealized Gains and
Losses on Available- for-Sale Debt Securities |
| |
Total
|
| ||||||
Balance at October 1, 2020
|
| | | $ | 156 | | | | | $ | 156 | | |
Other comprehensive income, before reclassification
|
| | | | 291 | | | | | | 291 | | |
Amount reclassified from accumulated other comprehensive income
|
| | | | (191) | | | | | | (191) | | |
Balance at September 30, 2021
|
| | | $ | 256 | | | | | $ | 256 | | |
(in thousands)
|
| |
Unrealized Gains and
Losses on Available- for-Sale Debt Securities |
| |
Total
|
| ||||||
Balance at October 1, 2019
|
| | | $ | 22 | | | | | $ | 22 | | |
Other comprehensive income
|
| | | | 134 | | | | | | 134 | | |
Balance at September 30, 2020
|
| | | $ | 156 | | | | | $ | 156 | | |
(in thousands)
|
| |
Amount Reclassified
from Accumulated Other Comprehensive Income |
| |
Affected Line Item in Statement of
Income |
|
Realized gains on securities
available-for-sale |
| |
$240
|
| |
Gain on sale of investment
securities available-for-sale, net |
|
Tax effect | | |
(49)
|
| | Income tax expense | |
Net of tax | | |
$191
|
| | | |
| | |
Year Ended September 30,
|
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Loan fees and service charges(1)
|
| | | $ | 703 | | | | | $ | 301 | | |
Loan servicing income(1)
|
| | | | 504 | | | | | | 84 | | |
Service charges on deposit accounts
|
| | | | 127 | | | | | | 62 | | |
Net gain on sale of investments available-for-sale(1)
|
| | | | 240 | | | | | | — | | |
Net gain on sale of loans held-for-sale(1)
|
| | | | 1,307 | | | | | | 917 | | |
Other income(2)
|
| | | | 468 | | | | | | — | | |
Total non-interest income
|
| | | $ | 3,349 | | | | | $ | 1,364 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 1,786,781 | | | | | $ | 1,754,037 | | |
Federal funds sold
|
| | | | 77,641,608 | | | | | | 88,652,000 | | |
Total cash and cash equivalents
|
| | | | 79,428,389 | | | | | | 90,406,037 | | |
Time deposits in other financial institutions
|
| | | | 1,849,055 | | | | | | 1,849,055 | | |
Securities available for sale
|
| | | | 944,754 | | | | | | 1,337,566 | | |
Loans, net of allowance of $8,401,269 and $8,354,694
|
| | | | 592,247,611 | | | | | | 493,242,667 | | |
Accrued interest receivable
|
| | | | 5,052,743 | | | | | | 4,278,269 | | |
Loan servicing rights
|
| | | | 3,355,646 | | | | | | 3,178,189 | | |
Restricted stock, at cost
|
| | | | 767,800 | | | | | | 767,800 | | |
Premises and equipment, net
|
| | | | 489,709 | | | | | | 472,721 | | |
Deferred tax asset, net
|
| | | | 5,268,965 | | | | | | 3,129,326 | | |
Other real estate owned
|
| | | | 1,500,257 | | | | | | 1,500,257 | | |
Other assets
|
| | | | 2,815,223 | | | | | | 417,799 | | |
Total assets
|
| | | $ | 693,720,152 | | | | | $ | 600,579,686 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | |
Deposits
|
| | | | | | | | | | | | |
Non-interest bearing
|
| | | $ | 59,786,485 | | | | | $ | 47,358,387 | | |
Interest bearing
|
| | | | 305,498,612 | | | | | | 312,094,312 | | |
Total deposits
|
| | | | 365,285,097 | | | | | | 359,452,699 | | |
Borrowings
|
| | | | 270,808,407 | | | | | | 190,021,351 | | |
Accrued interest payable
|
| | | | 983,239 | | | | | | 1,030,248 | | |
Other liabilities
|
| | | | 7,580,649 | | | | | | 4,045,812 | | |
Total liabilities
|
| | | | 644,657,392 | | | | | | 554,550,110 | | |
Shareholders’ equity | | | | | | | | | | | | | |
Common stock, $1.00 par value, 10,389,070 shares authorized; 9,628,626
and 9,628,626 shares issued and outstanding |
| | | | 9,628,626 | | | | | | 9,628,626 | | |
Additional paid-in capital
|
| | | | 21,839,624 | | | | | | 21,839,624 | | |
Retained earnings
|
| | | | 17,591,833 | | | | | | 14,552,017 | | |
Accumulated other comprehensive income
|
| | | | 2,677 | | | | | | 9,309 | | |
Total shareholders’ equity
|
| | | | 49,062,760 | | | | | | 46,029,576 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 693,720,152 | | | | | $ | 600,579,686 | | |
| | |
Three-months ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Interest income | | | | | | | | | | | | | |
Loans, including fees
|
| | | $ | 7,028,724 | | | | | $ | 5,538,387 | | |
Securities
|
| | | | 5,974 | | | | | | 14,872 | | |
Federal funds sold and other
|
| | | | 30,724 | | | | | | 148,853 | | |
Total interest income
|
| | | | 7,065,422 | | | | | | 5,702,112 | | |
Interest expense | | | | | | | | | | | | | |
Deposits
|
| | | | 986,084 | | | | | | 1,590,222 | | |
Borrowings
|
| | | | 237,587 | | | | | | 81,281 | | |
Total interest expense
|
| | | | 1,223,671 | | | | | | 1,671,503 | | |
Net interest income
|
| | | | 5,841,751 | | | | | | 4,030,609 | | |
Provision for loan losses
|
| | | | — | | | | | | 400,000 | | |
Net interest income after provision for loan losses
|
| | | | 5,841,751 | | | | | | 3,630,609 | | |
Non-interest income | | | | | | | | | | | | | |
Service charges and fees on deposit accounts
|
| | | | 18,530 | | | | | | 41,419 | | |
Net gain on sale of the guaranteed portion of Small Business Administration
(“SBA”) loans |
| | | | 1,207,632 | | | | | | 594,134 | | |
Loan servicing fees
|
| | | | 225,221 | | | | | | 167,513 | | |
Gain on sale of real estate owned
|
| | | | — | | | | | | 111,866 | | |
Other income
|
| | | | — | | | | | | 37,108 | | |
Total non-interest income
|
| | | | 1,451,383 | | | | | | 952,040 | | |
Non-interest expenses | | | | | | | | | | | | | |
Salaries and benefits
|
| | | | 1,563,772 | | | | | | 1,935,843 | | |
Occupancy
|
| | | | 245,721 | | | | | | 231,530 | | |
Professional services
|
| | | | 368,950 | | | | | | 251,018 | | |
Data processing
|
| | | | 382,021 | | | | | | 131,303 | | |
Marketing
|
| | | | 15,799 | | | | | | 72,418 | | |
Federal Deposit Insurance Corporation (“FDIC”) insurance
|
| | | | 35,962 | | | | | | 33,000 | | |
Other expense
|
| | | | 361,722 | | | | | | 437,044 | | |
Total non-interest expenses
|
| | | | 2,973,947 | | | | | | 3,092,156 | | |
Income before income taxes
|
| | | | 4,319,187 | | | | | | 1,490,493 | | |
Income tax expense
|
| | | | 1,279,371 | | | | | | 399,732 | | |
Net income
|
| | | $ | 3,039,816 | | | | | $ | 1,090,761 | | |
| | |
Three-months ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net income
|
| | | $ | 3,039,816 | | | | | $ | 1,090,761 | | |
Other comprehensive income (loss) | | | | | | | | | | | | | |
Unrealized gain (loss) on securities
|
| | | | | | | | | | | | |
Unrealized holding gain (loss) arising during the period
|
| | | | (8,395) | | | | | | 2,163 | | |
Tax effect
|
| | | | (1,763) | | | | | | 454 | | |
Total other comprehensive income (loss)
|
| | | | (6,632) | | | | | | 1,709 | | |
Comprehensive income
|
| | | $ | 3,033,184 | | | | | $ | 1,092,470 | | |
| | |
Common
Stock |
| |
Additional
Paid-In Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income |
| |
Total
|
| |||||||||||||||
Balances, January 1, 2020
|
| | | $ | 9,609,646 | | | | | $ | 21,830,134 | | | | | $ | 9,505,660 | | | | | $ | 11,401 | | | | | $ | 40,956,841 | | |
Exercise of 18,980 stock options
|
| | | | 18,980 | | | | | | 9,490 | | | | | | | | | | | | | | | | | | 28,470 | | |
Net income
|
| | | | | | | | | | | | | | | | 1,090,761 | | | | | | | | | | | | 1,090,761 | | |
Dividend paid, $0.05 per share
|
| | | | | | | | | | | | | | | | (481,430) | | | | | | | | | | | | (481,430) | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | 1,709 | | | | | | 1,709 | | |
Balances, March 31, 2020
|
| | | $ | 9,628,626 | | | | | $ | 21,839,624 | | | | | $ | 10,114,991 | | | | | $ | 13,110 | | | | | $ | 41,596,351 | | |
Balances, January 1, 2021
|
| | | $ | 9,628,626 | | | | | $ | 21,839,624 | | | | | $ | 14,552,017 | | | | | $ | 9,309 | | | | | $ | 46,029,576 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 3,039,816 | | | | | | — | | | | | | 3,039,816 | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (6,632) | | | | | | (6,632) | | |
Balances, March 31, 2021
|
| | | $ | 9,628,626 | | | | | $ | 21,839,624 | | | | | $ | 17,591,833 | | | | | $ | 2,677 | | | | | $ | 49,062,760 | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income
|
| | | $ | 3,039,816 | | | | | $ | 1,090,761 | | |
Adjustments to reconcile net income to net cash provided by operating activities
|
| | | | | | | | | | | | |
Provision for loan losses
|
| | | | — | | | | | | 400,000 | | |
Gain on sale of real estate owned
|
| | | | — | | | | | | (111,866) | | |
Depreciation and amortization
|
| | | | 68,182 | | | | | | 55,667 | | |
Net amortization (accretion) of securities
|
| | | | 9 | | | | | | (809) | | |
Loan servicing rights
|
| | | | 75,650 | | | | | | 73,789 | | |
Deferred income taxes
|
| | | | (2,137,877) | | | | | | (102,683) | | |
Net gain on sale of the guaranteed portion of SBA loans
|
| | | | (1,207,632) | | | | | | (594,134) | | |
Changes in operating assets and liabilities
|
| | | | | | | | | | | | |
Accrued interest receivable
|
| | | | (774,474) | | | | | | (188,517) | | |
Other assets
|
| | | | (2,397,424) | | | | | | (252,817) | | |
Accrued interest payable
|
| | | | (47,009) | | | | | | (19,518) | | |
Other liabilities
|
| | | | 3,534,837 | | | | | | 165,258 | | |
Net cash provided by operating activities
|
| | | | 154,081 | | | | | | 515,131 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Proceeds from calls, maturities and principal payments of securities available for sale
|
| | | | 384,409 | | | | | | 1,043,827 | | |
Net increase in loans
|
| | | | (109,441,904) | | | | | | (18,235,928) | | |
Proceeds from sale of the guaranteed portion of SBA loans
|
| | | | 11,391,485 | | | | | | 9,042,961 | | |
Sale of real estate owned
|
| | | | — | | | | | | 348,866 | | |
Purchase of bank premises and equipment, net
|
| | | | (85,170) | | | | | | (78,052) | | |
Net cash used in investing activities
|
| | | | (97,751,183) | | | | | | (7,878,326) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net change in deposits
|
| | | | 5,832,398 | | | | | | 14,178,977 | | |
Proceeds from Federal Reserve Bank (“FRB”) borrowings
|
| | | | 80,787,056 | | | | | | — | | |
Cash dividends paid
|
| | | | — | | | | | | (481,430) | | |
Proceeds from exercise of stock options
|
| | | | — | | | | | | 28,470 | | |
Net cash provided by financing activities
|
| | | | 86,619,454 | | | | | | 13,726,017 | | |
Net change in cash and cash equivalents
|
| | | | (10,977,648) | | | | | | 6,362,822 | | |
Cash and cash equivalents at beginning of period
|
| | | | 90,406,037 | | | | | | 41,277,238 | | |
Cash and cash equivalents at end of period
|
| | | $ | 79,428,389 | | | | | $ | 47,640,060 | | |
Supplemental cash flow information | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 1,270,680 | | | | | $ | 1,691,021 | | |
Income taxes paid
|
| | | | 52,520 | | | | | | 51,904 | | |
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
At March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage-backed securities
|
| | | | 241,310 | | | | | | 8,825 | | | | | | (10) | | | | | | 250,125 | | |
Corporate bonds
|
| | | | 700,000 | | | | | | — | | | | | | (5,371) | | | | | | 694,629 | | |
| | | | $ | 941,310 | | | | | $ | 8,825 | | | | | $ | (5,381) | | | | | $ | 944,754 | | |
At December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency
|
| | | $ | 350,000 | | | | | $ | 335 | | | | | $ | — | | | | | $ | 350,335 | | |
Residential mortgage-backed securities
|
| | | | 275,742 | | | | | | 10,291 | | | | | | (12) | | | | | | 286,021 | | |
Corporate bonds
|
| | | | 700,000 | | | | | | 1,210 | | | | | | — | | | | | | 701,210 | | |
| | | | $ | 1,325,742 | | | | | $ | 11,836 | | | | | $ | (12) | | | | | $ | 1,337,566 | | |
| | |
Amortized
Cost |
| |
Fair
Value |
| ||||||
Less than one year
|
| | | $ | — | | | | | $ | — | | |
One to five years
|
| | | | 700,000 | | | | | | 694,629 | | |
Five to ten years
|
| | | | — | | | | | | — | | |
Beyond ten years
|
| | | | — | | | | | | — | | |
Mortgage-backed
|
| | | | 241,310 | | | | | | 250,125 | | |
| | | | $ | 941,310 | | | | | $ | 944,754 | | |
| | |
Less Than 12 Months
|
| |
12 Months or Longer
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential mortgage backed
securities |
| | | | — | | | | | | — | | | | | | 5,547 | | | | | | (10) | | | | | | 5,547 | | | | | | (10) | | |
Corporate bonds
|
| | | | 694,629 | | | | | | (5,371) | | | | | | — | | | | | | — | | | | | | 694,629 | | | | | | (5,371) | | |
| | | | $ | 694,629 | | | | | $ | (5,371) | | | | | $ | 5,547 | | | | | $ | (10) | | | | | $ | 700,176 | | | | | $ | (5,381) | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential mortgage backed
securities |
| | | | — | | | | | | — | | | | | | 5,634 | | | | | | (12) | | | | | | 5,634 | | | | | | (12) | | |
Corporate bonds
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | — | | | | | $ | — | | | | | $ | 5,634 | | | | | $ | (12) | | | | | $ | 5,634 | | | | | $ | (12) | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Real estate
|
| | | $ | 283,766,498 | | | | | $ | 272,087,625 | | |
Commercial
|
| | | | 323,578,718 | | | | | | 232,192,454 | | |
Total loans
|
| | | | 607,345,216 | | | | | | 504,280,079 | | |
Net deferred loan fees
|
| | | | (6,696,336) | | | | | | (2,682,718) | | |
Allowance for loan losses
|
| | | | (8,401,269) | | | | | | (8,354,694) | | |
Net loans
|
| | | $ | 592,247,611 | | | | | $ | 493,242,667 | | |
| | |
Real Estate
|
| |
Commercial
|
| |
Total
|
| |||||||||
Balance, January 1, 2021
|
| | | $ | 3,785,700 | | | | | $ | 4,568,994 | | | | | $ | 8,354,694 | | |
Charge-offs
|
| | | | — | | | | | | — | | | | | | — | | |
Recoveries
|
| | | | | | | | | | 46,575 | | | | | | 46,575 | | |
Provision for loan losses
|
| | | | — | | | | | | — | | | | | | — | | |
Balance, March 31, 2021
|
| | | $ | 3,785,700 | | | | | $ | 4,615,569 | | | | | $ | 8,401,269 | | |
Balance, January 1, 2020
|
| | | $ | 2,968,324 | | | | | $ | 2,293,459 | | | | | $ | 5,261,783 | | |
Charge-offs
|
| | | | — | | | | | | — | | | | | | — | | |
Recoveries
|
| | | | — | | | | | | 32,421 | | | | | | 32,421 | | |
Provision for loan losses
|
| | | | (24,807) | | | | | | 424,807 | | | | | | 400,000 | | |
Balance, March 31, 2020
|
| | | $ | 2,943,517 | | | | | $ | 2,750,687 | | | | | $ | 5,694,204 | | |
| | |
Real Estate
|
| |
Commercial
|
| |
Total
|
| |||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | 380,632 | | | | | $ | 380,632 | | |
Collectively evaluated for impairment
|
| | | | 3,785,700 | | | | | | 4,234,937 | | | | | | 8,020,637 | | |
Ending balance
|
| | | $ | 3,785,700 | | | | | $ | 4,615,569 | | | | | $ | 8,401,269 | | |
Loans | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 9,478,687 | | | | | $ | 2,999,890 | | | | | $ | 12,478,577 | | |
Collectively evaluated for impairment
|
| | | | 274,287,811 | | | | | | 320,578,828 | | | | | | 594,866,639 | | |
Ending balance
|
| | | $ | 283,766,498 | | | | | $ | 323,578,718 | | | | | $ | 607,345,216 | | |
| | |
Real Estate
|
| |
Commercial
|
| |
Total
|
| |||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | 390,939 | | | | | $ | 390,939 | | |
Collectively evaluated for impairment
|
| | | | 3,785,700 | | | | | | 4,178,055 | | | | | | 7,963,755 | | |
Ending balance
|
| | | $ | 3,785,700 | | | | | $ | 4,568,994 | | | | | $ | 8,354,694 | | |
Loans | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 9,443,415 | | | | | $ | 3,243,265 | | | | | $ | 12,686,680 | | |
Collectively evaluated for impairment
|
| | | | 262,644,210 | | | | | | 228,949,189 | | | | | | 491,593,399 | | |
Ending balance
|
| | | $ | 272,087,625 | | | | | $ | 232,192,454 | | | | | $ | 504,280,079 | | |
| | |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Allowance
Recorded |
| |||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 9,478,687 | | | | | $ | 9,478,687 | | | | | | — | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 2,619,258 | | | | | | 2,619,258 | | | | | | — | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 380,632 | | | | | | 380,632 | | | | | | 380,632 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 9,603,687 | | | | | $ | 9,603,687 | | | | | | | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | | | |
Commercial
|
| | | | 2,692,054 | | | | | | 2,692,054 | | | | | | | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 722,954 | | | | | | 390,939 | | | | | | 390,939 | | |
| | |
March 31, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||
| | |
Nonaccrual
|
| |
Past Due
90 Days Still on Accrual |
| |
Nonaccrual
|
| |
Past Due
90 Days Still on Accrual |
| ||||||||||||
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 4,030,762 | | | | | $ | — | | | | | $ | 4,135,669 | | | | | $ | — | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 2,050,056 | | | | | | — | | | | | | 2,105,184 | | | | | | — | | |
| | | | $ | 6,080,818 | | | | | $ | — | | | | | $ | 6,240,853 | | | | | $ | — | | |
| | |
30 – 59
Days Past Due |
| |
60 – 89
Days Past Due |
| |
Greater Than
90 Days Past Due |
| |
Total
Past Due |
| |
Loans Not
Past Due |
| |||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 973,956 | | | | | $ | — | | | | | $ | 4,010,669 | | | | | $ | 4,984,625 | | | | | $ | 196,227,433 | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 46,639,319 | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 35,915,121 | | |
Commercial
|
| | | | 200,000 | | | | | | — | | | | | | 989,156 | | | | | | 1,189,156 | | | | | | 322,389,562 | | |
| | | | $ | 1,173,956 | | | | | $ | — | | | | | $ | 4,999,825 | | | | | $ | 6,173,781 | | | | | $ | 601,171,435 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | — | | | | | $ | — | | | | | $ | 4,135,669 | | | | | $ | 4,135,689 | | | | | $ | 186,860,710 | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 42,366,824 | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 38,724,422 | | |
Commercial
|
| | | | — | | | | | | — | | | | | | 2,105,184 | | | | | | 2,105,184 | | | | | | 230,087,270 | | |
| | | | $ | — | | | | | $ | — | | | | | $ | 6,240,853 | | | | | $ | 6,240,853 | | | | | $ | 498,039,226 | | |
| | |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| ||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 179,654,821 | | | | | $ | 12,078,550 | | | | | $ | 9,478,687 | | | | | $ | — | | |
Multifamily
|
| | | | 46,639,319 | | | | | | — | | | | | | — | | | | | | — | | |
Residential
|
| | | | 35,915,121 | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 308,526,535 | | | | | | 11,506,438 | | | | | | 3,545,745 | | | | | | | | |
| | | | $ | 570,735,796 | | | | | $ | 23,584,988 | | | | | $ | 13,024,432 | | | | | $ | — | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 169,299,626 | | | | | $ | 12,093,066 | | | | | $ | 9,603,687 | | | | | $ | — | | |
Multifamily
|
| | | | 42,366,824 | | | | | | — | | | | | | — | | | | | | — | | |
Residential
|
| | | | 38,724,422 | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 217,075,279 | | | | | | 11,515,553 | | | | | | 3,601,622 | | | | | | — | | |
| | | | $ | 467,466,151 | | | | | $ | 23,608,619 | | | | | $ | 13,205,309 | | | | | $ | — | | |
| | |
2021
|
| |
2020
|
| ||||||
Loan servicing rights: | | | | | | | | | | | | | |
January 1
|
| | | $ | 3,178,189 | | | | | $ | 2,724,436 | | |
Additions
|
| | | | 253,107 | | | | | | 186,987 | | |
Change in fair value
|
| | | | (75,650) | | | | | | (285,726) | | |
March 31
|
| | | $ | 3,355,646 | | | | | $ | 2,837,634 | | |
| | |
Fair Value Measurements
|
| |||||||||||||||
| | |
Quoted Prices
In Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | |
Recurring basis
|
| | | | | | | | | | | | | | | | | | |
Available-for-sale securities
|
| | | $ | — | | | | | $ | 944,754 | | | | | $ | — | | |
Loan servicing rights
|
| | | | — | | | | | | — | | | | | | 3,355,646 | | |
Non-recurring basis
|
| | | | | | | | | | | | | | | | | | |
Impaired loans
|
| | | | — | | | | | | — | | | | | | — | | |
Other real estate owned
|
| | | | — | | | | | | — | | | | | | 1,500,257 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Recurring basis
|
| | | | | | | | | | | | | | | | | | |
Available for sale securities
|
| | | $ | — | | | | | $ | 1,337,566 | | | | | $ | — | | |
Loan servicing rights
|
| | | | — | | | | | | — | | | | | | 3,178,189 | | |
Non-recurring basis
|
| | | | | | | | | | | | | | | | | | |
Impaired loans
|
| | | | — | | | | | | — | | | | | | — | | |
Other real estate owned
|
| | | | — | | | | | | — | | | | | | 1,500,257 | | |
| | |
Carrying
Amount |
| |
Fair
Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 79,428 | | | | | $ | 79,428 | | | | | $ | 79,428 | | | | | $ | — | | | | | $ | — | | |
Time deposits in other financial institutions
|
| | | | 1,849 | | | | | | 1,849 | | | | | | 1,849 | | | | | | — | | | | | | — | | |
Securities available for sale
|
| | | | 945 | | | | | | 945 | | | | | | — | | | | | | 945 | | | | | | — | | |
Loans, net
|
| | | | 592,248 | | | | | | 610,540 | | | | | | — | | | | | | — | | | | | | 610,540 | | |
Restricted stock
|
| | | | 768 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Accrued interest receivable
|
| | | | 5,053 | | | | | | 5,053 | | | | | | — | | | | | | 5,053 | | | | | | — | | |
| | |
Carrying
Amount |
| |
Fair
Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits
|
| | | $ | 365,285 | | | | | $ | 365,946 | | | | | $ | — | | | | | $ | 365,946 | | | | | $ | — | | |
Borrowings
|
| | | | 270,808 | | | | | | 271,003 | | | | | | — | | | | | | 271,003 | | | | | | — | | |
Accrued interest payable
|
| | | | 983 | | | | | | 983 | | | | | | — | | | | | | 983 | | | | | | — | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 90,406 | | | | | $ | 90,406 | | | | | $ | 90,406 | | | | | $ | — | | | | | $ | — | | |
Time deposits in other financial institutions
|
| | | | 1,849 | | | | | | 1,849 | | | | | | 1,849 | | | | | | — | | | | | | — | | |
Securities available for sale
|
| | | | 1,338 | | | | | | 1,338 | | | | | | — | | | | | | 1,338 | | | | | | — | | |
Loans, net
|
| | | | 493,243 | | | | | | 492,222 | | | | | | — | | | | | | — | | | | | | 492,222 | | |
Restricted stock
|
| | | | 768 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Accrued interest receivable
|
| | | | 4,278 | | | | | | 4,278 | | | | | | — | | | | | | 4,278 | | | | | | — | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits
|
| | | $ | 359,453 | | | | | $ | 361,551 | | | | | $ | — | | | | | $ | 361,551 | | | | | $ | — | | |
Borrowings
|
| | | | 190,021 | | | | | | 190,310 | | | | | | — | | | | | | 190,310 | | | | | | — | | |
Accrued interest payable
|
| | | | 1,030 | | | | | | 1,030 | | | | | | — | | | | | | 1,030 | | | | | | — | | |
|
2021
|
| | | $ | 67,578,004 | | |
|
2022
|
| | | | 67,972,460 | | |
|
2023
|
| | | | 23,487,263 | | |
|
2024
|
| | | | 16,732,870 | | |
|
2025
|
| | | | 14,887,025 | | |
|
Thereafter
|
| | | | 3,468,000 | | |
| | | | | $ | 194,125,622 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Fixed-rate advances, at rates of 2.85%
|
| | | $ | 7,500,000 | | | | | $ | 7,500,000 | | |
|
2021
|
| | | $ | — | | |
|
2022
|
| | | | — | | |
|
2023
|
| | | | 7,500,000 | | |
|
2024
|
| | | | — | | |
|
2025
|
| | | | — | | |
| | | | | $ | 7,500,000 | | |
| | |
Shares
|
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding at beginning of period
|
| | | | 606,421 | | | | | $ | 1.54 | | | | | | 4.12 | | | | | $ | 1,451,900 | | |
Granted
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Forfeited or expired
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Outstanding and exercisable of at end of period
|
| | | | 606,421 | | | | | $ | 1.54 | | | | | | 3.87 | | | | | $ | 1,451,900 | | |
| | |
Actual
|
| |
Required
For Capital Adequacy Purposes |
| |
To Be Well
Capitalized Under Prompt Corrective Action Regulations |
| |||||||||||||||||||||||||||
| | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk weighted assets
|
| | | $ | 52,448 | | | | | | 16.66% | | | | | $ | 25,188 | | | | | | 8.00% | | | | | $ | 31,484 | | | | | | 10.00% | | |
Tier 1 (core) capital to risk weighted assets
|
| | | | 48,456 | | | | | | 15.39 | | | | | | 18,891 | | | | | | 6.00 | | | | | | 25,188 | | | | | | 8.00 | | |
Common tier 1 (CET1) to risk weighted assets
|
| | | | 48,456 | | | | | | 15.39 | | | | | | 14,168 | | | | | | 4.50 | | | | | | 20,465 | | | | | | 6.50 | | |
Tier 1 (core) capital to average assets
|
| | | | 48,456 | | | | | | 11.23 | | | | | | 17,255 | | | | | | 4.00 | | | | | | 21,568 | | | | | | 5.00 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk weighted assets
|
| | | $ | 49,216 | | | | | | 16.28% | | | | | $ | 24,185 | | | | | | 8.00% | | | | | $ | 30,232 | | | | | | 10.00% | | |
Tier 1 (core) capital to risk weighted assets
|
| | | | 45,380 | | | | | | 15.01 | | | | | | 18,139 | | | | | | 6.00 | | | | | | 24,185 | | | | | | 8.00 | | |
Common tier 1 (CET1) to risk weighted assets
|
| | | | 45,380 | | | | | | 15.01 | | | | | | 13,604 | | | | | | 4.50 | | | | | | 19,651 | | | | | | 6.50 | | |
Tier 1 (core) capital to average assets
|
| | | | 45,380 | | | | | | 10.66 | | | | | | 17,024 | | | | | | 4.00 | | | | | | 21,280 | | | | | | 5.00 | | |
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 1,754,037 | | | | | $ | 1,424,238 | | |
Federal funds sold
|
| | | | 88,652,000 | | | | | | 39,853,000 | | |
Total cash and cash equivalents
|
| | | | 90,406,037 | | | | | | 41,277,238 | | |
Time deposits in other financial institutions
|
| | | | 1,849,055 | | | | | | 1,600,054 | | |
Securities available for sale
|
| | | | 1,337,566 | | | | | | 2,778,079 | | |
Loans, net of allowance of $8,354,694 and $5,261,783
|
| | | | 493,242,667 | | | | | | 326,989,448 | | |
Accrued interest receivable
|
| | | | 4,278,269 | | | | | | 1,571,188 | | |
Loan servicing rights
|
| | | | 3,178,189 | | | | | | 2,724,436 | | |
Restricted stock, at cost
|
| | | | 767,800 | | | | | | 969,600 | | |
Premises and equipment, net
|
| | | | 472,721 | | | | | | 580,619 | | |
Deferred tax asset, net
|
| | | | 3,129,326 | | | | | | 2,253,610 | | |
Other real estate owned
|
| | | | 1,500,257 | | | | | | 1,737,257 | | |
Other assets
|
| | | | 417,799 | | | | | | 186,585 | | |
Total assets
|
| | | $ | 600,579,686 | | | | | $ | 382,668,114 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | |
Deposits
|
| | | | | | | | | | | | |
Non-interest bearing
|
| | | $ | 47,358,387 | | | | | $ | 39,380,646 | | |
Interest bearing
|
| | | | 312,094,312 | | | | | | 286,474,174 | | |
Total deposits
|
| | | | 359,452,699 | | | | | | 325,854,820 | | |
Borrowings
|
| | | | 190,021,351 | | | | | | 12,500,000 | | |
Accrued interest payable
|
| | | | 1,030,248 | | | | | | 1,048,857 | | |
Other liabilities
|
| | | | 4,045,812 | | | | | | 2,307,596 | | |
Total liabilities
|
| | | | 554,550,110 | | | | | | 341,711,273 | | |
Shareholders’ equity | | | | | | | | | | | | | |
Common stock, $1.00 par value, 10,389,070 shares authorized; 9,628,626
and 9,609,646 shares issued and outstanding |
| | | | 9,628,626 | | | | | | 9,609,646 | | |
Additional paid-in capital
|
| | | | 21,839,624 | | | | | | 21,830,134 | | |
Retained earnings
|
| | | | 14,552,017 | | | | | | 9,505,660 | | |
Accumulated other comprehensive income
|
| | | | 9,309 | | | | | | 11,401 | | |
Total shareholders’ equity
|
| | | | 46,029,576 | | | | | | 40,956,841 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 600,579,686 | | | | | $ | 382,668,114 | | |
| | |
2020
|
| |
2019
|
| ||||||
Interest income | | | | | | | | | | | | | |
Loans, including fees
|
| | | $ | 25,179,915 | | | | | $ | 22,447,692 | | |
Securities
|
| | | | 36,171 | | | | | | 82,577 | | |
Federal funds sold and other
|
| | | | 241,322 | | | | | | 999,977 | | |
Total interest income
|
| | | | 25,457,408 | | | | | | 23,530,246 | | |
Interest expense | | | | | | | | | | | | | |
Deposits
|
| | | | 5,496,358 | | | | | | 6,447,625 | | |
Borrowings
|
| | | | 717,139 | | | | | | 333,252 | | |
Total interest expense
|
| | | | 6,213,497 | | | | | | 6,780,877 | | |
Net interest income
|
| | | | 19,243,911 | | | | | | 16,749,369 | | |
Provision for loan losses
|
| | | | 3,275,000 | | | | | | 2,840,000 | | |
Net interest income after provision for loan losses
|
| | | | 15,968,911 | | | | | | 13,909,369 | | |
Non-interest income | | | | | | | | | | | | | |
Service charges and fees on deposit accounts
|
| | | | 102,316 | | | | | | 182,684 | | |
Net gain on sale of the guaranteed portion of Small Business Administration (“SBA”) loans
|
| | | | 2,697,207 | | | | | | 3,552,245 | | |
Loan servicing fees
|
| | | | 728,139 | | | | | | 424,326 | | |
Gain on sale of real estate owned
|
| | | | 111,866 | | | | | | — | | |
Grants from U.S. Treasury Department
|
| | | | — | | | | | | 210,162 | | |
Other income
|
| | | | 122,062 | | | | | | 5,404 | | |
Total non-interest income
|
| | | | 3,761,590 | | | | | | 4,374,821 | | |
Non-interest expenses | | | | | | | | | | | | | |
Salaries and benefits
|
| | | | 7,128,731 | | | | | | 6,957,969 | | |
Occupancy
|
| | | | 924,812 | | | | | | 897,982 | | |
Professional services
|
| | | | 1,411,551 | | | | | | 998,342 | | |
Data processing
|
| | | | 616,564 | | | | | | 502,392 | | |
Marketing
|
| | | | 157,262 | | | | | | 279,352 | | |
Federal Deposit Insurance Corporation (“FDIC”) insurance
|
| | | | 100,941 | | | | | | 55,814 | | |
Other expense
|
| | | | 1,587,850 | | | | | | 1,583,999 | | |
Total non-interest expenses
|
| | | | 11,927,711 | | | | | | 11,275,850 | | |
Income before income taxes
|
| | | | 7,802,790 | | | | | | 7,008,340 | | |
Income tax expense
|
| | | | 2,275,003 | | | | | | 1,672,621 | | |
Net income
|
| | | $ | 5,527,787 | | | | | $ | 5,335,719 | | |
| | |
2020
|
| |
2019
|
| ||||||
Net income
|
| | | $ | 5,527,787 | | | | | $ | 5,335,719 | | |
Other comprehensive income (loss) | | | | | | | | | | | | | |
Unrealized gain (loss) on securities
|
| | | | | | | | | | | | |
Unrealized holding gain (loss) arising during the period
|
| | | | (2,649) | | | | | | 118,788 | | |
Tax effect
|
| | | | (557) | | | | | | 24,985 | | |
Total other comprehensive income (loss)
|
| | | | (2,092) | | | | | | 93,803 | | |
Comprehensive income
|
| | | $ | 5,525,695 | | | | | $ | 5,429,522 | | |
| | |
Common
Stock |
| |
Additional
Paid-In Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
|
| |||||||||||||||
Balances, January 1, 2019
|
| | | $ | 9,556,196 | | | | | $ | 21,803,409 | | | | | $ | 4,169,941 | | | | | $ | (82,402) | | | | | $ | 35,447,144 | | |
Exercise of 53,450 stock options
|
| | | | 53,450 | | | | | | 26,725 | | | | | | — | | | | | | — | | | | | | 80,175 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 5,335,719 | | | | | | — | | | | | | 5,335,719 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 93,803 | | | | | | 93,803 | | |
Balances, December 31, 2019
|
| | | | 9,609,646 | | | | | | 21,830,134 | | | | | | 9,505,660 | | | | | | 11,401 | | | | | | 40,956,841 | | |
Exercise of 18,980 stock options
|
| | | | 18,980 | | | | | | 9,490 | | | | | | — | | | | | | — | | | | | | 28,470 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 5,527,787 | | | | | | — | | | | | | 5,527,787 | | |
Dividends declared, $0.05 per share
|
| | | | — | | | | | | — | | | | | | (481,430) | | | | | | — | | | | | | (481,430) | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2,092) | | | | | | (2,092) | | |
Balances, December 31, 2020
|
| | | $ | 9,628,626 | | | | | $ | 21,839,624 | | | | | $ | 14,552,017 | | | | | $ | 9,309 | | | | | $ | 46,029,576 | | |
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income
|
| | | $ | 5,527,787 | | | | | $ | 5,335,719 | | |
Adjustments to reconcile net income to net cash
|
| | | | | | | | | | | | |
provided by operating activities Provision for loan losses
|
| | | | 3,275,000 | | | | | | 2,840,000 | | |
Gain on sale of real estate owned
|
| | | | (111,866) | | | | | | — | | |
Depreciation and amortization
|
| | | | 235,812 | | | | | | 201,527 | | |
Net (accretion) amortization of securities
|
| | | | (1,056) | | | | | | (7,046) | | |
Loan servicing rights
|
| | | | 333,995 | | | | | | 456,657 | | |
Deferred income taxes
|
| | | | (875,160) | | | | | | 24,007 | | |
Net gain on sale of the guaranteed portion of SBA loans
|
| | | | (2,697,207) | | | | | | (3,552,245) | | |
Changes in operating assets and liabilities
|
| | | | | | | | | | | | |
Accrued interest receivable
|
| | | | (2,707,081) | | | | | | (23,675) | | |
Other assets
|
| | | | (231,213) | | | | | | 93,493 | | |
Accrued interest payable
|
| | | | (18,609) | | | | | | 209,606 | | |
Other liabilities
|
| | | | 1,738,216 | | | | | | 260,500 | | |
Net cash provided by operating activities
|
| | | | 4,468,618 | | | | | | 5,838,543 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Net change in time deposits in other financial institutions
|
| | | | (249,001) | | | | | | — | | |
Purchases of securities available for sale
|
| | | | (5,597,712) | | | | | | — | | |
Proceeds from calls, maturities and principal payments of securities available for sale
|
| | | | 7,036,632 | | | | | | 749,725 | | |
Net increase in loans
|
| | | | (204,187,195) | | | | | | (81,524,117) | | |
Proceeds from sale of the guaranteed portion of SBA loans
|
| | | | 36,568,435 | | | | | | 58,663,734 | | |
Sale of real estate owned
|
| | | | 348,866 | | | | | | — | | |
Sale (purchase) of restricted stock
|
| | | | 201,800 | | | | | | (179,400) | | |
Purchase of bank premises and equipment, net
|
| | | | (127,914) | | | | | | (471,053) | | |
Net cash used in investing activities
|
| | | | (166,006,089) | | | | | | (22,761,111) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net change in deposits
|
| | | | 33,597,879 | | | | | | 24,708,117 | | |
Proceeds from FHLB advances
|
| | | | — | | | | | | 2,500,000 | | |
Repayment of FHLB advances
|
| | | | (5,000,000) | | | | | | — | | |
Proceeds from Federal Reserve Bank (“FRB”) borrowings
|
| | | | 182,521,351 | | | | | | — | | |
Cash dividends paid
|
| | | | (481,430) | | | | | | — | | |
Proceeds from exercise of stock options
|
| | | | 28,470 | | | | | | 80,175 | | |
Net cash provided by financing activities
|
| | | | 210,666,270 | | | | | | 27,288,292 | | |
Net change in cash and cash equivalents
|
| | | | 49,128,799 | | | | | | 10,365,724 | | |
Cash and cash equivalents at beginning of year
|
| | | | 41,277,238 | | | | | | 30,911,514 | | |
Cash and cash equivalents at end of year
|
| | | $ | 90,406,037 | | | | | $ | 41,277,238 | | |
Supplemental cash flow information | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 6,232,106 | | | | | $ | 6,571,271 | | |
Income taxes paid
|
| | | | 2,661,904 | | | | | | 1,629,421 | | |
|
2021
|
| | | $ | 1,849,055 | | |
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency
|
| | | $ | 350,000 | | | | | $ | 335 | | | | | $ | — | | | | | $ | 350,335 | | |
Residential mortgage-backed securities
|
| | | | 275,742 | | | | | | 10,291 | | | | | | (12) | | | | | | 286,021 | | |
Corporate bonds
|
| | | | 700,000 | | | | | | 1,210 | | | | | | — | | | | | | 701,210 | | |
| | | | $ | 1,325,742 | | | | | $ | 11,836 | | | | | $ | (12) | | | | | $ | 1,337,566 | | |
2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency
|
| | | $ | 1,783,049 | | | | | $ | 15,934 | | | | | $ | (4,154) | | | | | $ | 1,794,829 | | |
Residential mortgage-backed securities
|
| | | | 480,548 | | | | | | 8,702 | | | | | | (2,296) | | | | | | 486,954 | | |
Corporate bonds
|
| | | | 500,000 | | | | | | — | | | | | | (3,704) | | | | | | 496,296 | | |
| | | | $ | 2,763,597 | | | | | $ | 24,636 | | | | | $ | (10,154) | | | | | $ | 2,778,079 | | |
| | |
Amortized
Cost |
| |
Fair
Value |
| ||||||
Less than one year
|
| | | $ | — | | | | | $ | — | | |
One to five years
|
| | | | 1,050,000 | | | | | | 1,051,545 | | |
Five to ten years
|
| | | | — | | | | | | — | | |
Beyond ten years
|
| | | | — | | | | | | — | | |
Mortgage-backed
|
| | | | 275,742 | | | | | | 286,021 | | |
| | | | $ | 1,325,742 | | | | | $ | 1,337,566 | | |
| | |
Less Than 12 Months
|
| |
12 Months or Longer
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential mortgage | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
backed securities
|
| | | | — | | | | | | — | | | | | | 5,634 | | | | | | (12) | | | | | | 5,634 | | | | | | (12) | | |
Corporate bonds
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (12) | | | | | $ | — | | | | | $ | (12) | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency
|
| | | $ | — | | | | | $ | — | | | | | $ | 995,846 | | | | | $ | (4,154) | | | | | $ | 995,846 | | | | | $ | (4,154) | | |
Residential mortgage | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
backed securities
|
| | | | — | | | | | | — | | | | | | 76,474 | | | | | | (2,296) | | | | | | 76,474 | | | | | | (2,296) | | |
Corporate bonds
|
| | | | — | | | | | | — | | | | | | 496,296 | | | | | | (3,704) | | | | | | 496,296 | | | | | | (3,704) | | |
| | | | $ | — | | | | | $ | — | | | | | $ | 1,568,616 | | | | | $ | (10,154) | | | | | $ | 1,568,616 | | | | | $ | (10,154) | | |
| | |
2020
|
| |
2019
|
| ||||||
Real estate
|
| | | $ | 272,087,625 | | | | | $ | 279,813,216 | | |
Commercial
|
| | | | 232,192,454 | | | | | | 52,076,265 | | |
600.ns
|
| | | | 504,280,079 | | | | | | 331,889,481 | | |
Net deferred loan costs (fees)
|
| | | | (2,682,718) | | | | | | 361,750 | | |
Allowance for loan losses
|
| | | | (8,354,694) | | | | | | (5,261,783) | | |
Net loans
|
| | | $ | 493,242,667 | | | | | $ | 326,989,448 | | |
| | |
Real Estate
|
| |
Commercial
|
| |
Total
|
| |||||||||
2020 | | | | | | | | | | | | | | | | | | | |
Balance, beginning of year
|
| | | $ | 2,968,324 | | | | | $ | 2,293,459 | | | | | $ | 5,261,783 | | |
Charge-offs
|
| | | | — | | | | | | (374,303) | | | | | | (374,303) | | |
Recoveries
|
| | | | — | | | | | | 192,214 | | | | | | 192,214 | | |
Provision for loan losses
|
| | | | 817,376 | | | | | | 2,457,624 | | | | | | 3,275,000 | | |
Balance, end of year
|
| | | $ | 3,785,700 | | | | | $ | 4,568,994 | | | | | $ | 8,354,694 | | |
2019 | | | | | | | | | | | | | | | | | | | |
Balance, beginning of year
|
| | | $ | 2,309,692 | | | | | $ | 2,413,295 | | | | | $ | 4,722,987 | | |
Charge-offs
|
| | | | — | | | | | | (2,566,000) | | | | | | (2,566,000) | | |
Recoveries
|
| | | | — | | | | | | 264,796 | | | | | | 264,796 | | |
Provision for loan losses
|
| | | | 658,632 | | | | | | 2,181,368 | | | | | | 2,840,000 | | |
Balance, end of year
|
| | | $ | 2,968,324 | | | | | $ | 2,293,459 | | | | | $ | 5,261,783 | | |
| | |
Real Estate
|
| |
Commercial
|
| |
Total
|
| |||||||||
December 31, 2020
|
| | | | | | | | | | | | | | | | | | |
Allowance for loan losses
|
| | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | 390,939 | | | | | $ | 390,939 | | |
Collectively evaluated for impairment
|
| | | | 3,785,700 | | | | | | 4,178,055 | | | | | | 7,963,755 | | |
Ending balance
|
| | | $ | 3,785,700 | | | | | $ | 4,568,994 | | | | | $ | 8,354,694 | | |
Loans
|
| | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 9,443,415 | | | | | $ | 3,243,265 | | | | | $ | 12,686,680 | | |
Collectively evaluated for impairment
|
| | | | 262,644,210 | | | | | | 228,949,189 | | | | | | 491,593,399 | | |
Ending balance
|
| | | $ | 272,087,625 | | | | | $ | 232,192,454 | | | | | $ | 504,280,079 | | |
December 31, 2019
|
| | | | | | | | | | | | | | | | | | |
Allowance for loan losses
|
| | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | 767,346 | | | | | $ | 767,346 | | |
Collectively evaluated for impairment
|
| | | | 2,968,324 | | | | | | 1,526,113 | | | | | | 4,494,437 | | |
Ending balance
|
| | | $ | 2,968,324 | | | | | $ | 2,293,459 | | | | | $ | 5,261,783 | | |
Loans
|
| | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 355,477 | | | | | $ | 3,878,439 | | | | | $ | 4,233,916 | | |
Collectively evaluated for impairment
|
| | | | 279,457,739 | | | | | | 48,197,826 | | | | | | 327,655,565 | | |
Ending balance
|
| | | $ | 279,813,216 | | | | | $ | 52,076,265 | | | | | $ | 331,889,481 | | |
| | |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Allowance
Recorded |
| |||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 9,603,687 | | | | | $ | 9,603,687 | | | | | | | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | | | |
Commercial
|
| | | | 2,692,054 | | | | | | 2,692,054 | | | | | | | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 722,954 | | | | | | 390,939 | | | | | | 390,939 | | |
| | |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Allowance
Recorded |
| |||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 355,477 | | | | | $ | 355,477 | | | | | | | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | | | |
Commercial
|
| | | | 2,256,623 | | | | | | 2,256,623 | | | | | | | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | |
Real estate
|
| | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 1,621,816 | | | | | | 1,621,816 | | | | | | 767,346 | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||||||||||||||
| | |
Nonaccrual
|
| |
Past Due
90 Days Still on Accrual |
| |
Nonaccrual
|
| |
Past Due
90 Days Still on Accrual |
| ||||||||||||
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 4,135,669 | | | | | $ | — | | | | | $ | 355,477 | | | | | $ | — | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 2,105,184 | | | | | | — | | | | | | 1,910,671 | | | | | | — | | |
| | | | $ | 6,240,853 | | | | | $ | — | | | | | $ | 2,266,148 | | | | | $ | — | | |
| | |
30 — 59
Days Past Due |
| |
60 — 89
Days Past Due |
| |
Greater Than
90 Days Past Due |
| |
Total
Past Due |
| |
Loans Not
Past Due |
| |||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | — | | | | | $ | — | | | | | | 4,135,669 | | | | | $ | 4,135,689 | | | | | $ | 186,860,710 | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 42,366,824 | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 38,724,422 | | |
Commercial
|
| | | | — | | | | | | — | | | | | | 2,105,184 | | | | | | 2,105,184 | | | | | | 230,087,270 | | |
| | | | $ | — | | | | | $ | — | | | | | | 6,240,853 | | | | | $ | 6,240,853 | | | | | $ | 498,039,226 | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 474,059 | | | | | $ | 115,000 | | | | | $ | 355,477 | | | | | $ | 944,536 | | | | | $ | 183,080,338 | | |
Multifamily
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 49,282,430 | | |
Residential
|
| | | | 312,328 | | | | | | 1,087,853 | | | | | | — | | | | | | 1,400,181 | | | | | | 45,105,731 | | |
Commercial
|
| | | | 1,593,397 | | | | | | 1,055,412 | | | | | | 1,910,671 | | | | | | 4,559,480 | | | | | | 47,516,785 | | |
| | | | $ | 2,379,784 | | | | | $ | 2,258,265 | | | | | $ | 2,266,148 | | | | | $ | 6,904,197 | | | | | $ | 324,985,284 | | |
| | |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 169,299,626 | | | | | $ | 12,093,066 | | | | | $ | 9,603,687 | | | | | $ | — | | |
Multifamily
|
| | | | 42,366,824 | | | | | | — | | | | | | — | | | | | | — | | |
Residential
|
| | | | 38,724,422 | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 217,075,279 | | | | | | 11,515,553 | | | | | | 3,601,622 | | | | | | — | | |
| | | | $ | 467,466,151 | | | | | $ | 23,608,619 | | | | | $ | 13,205,309 | | | | | $ | — | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | $ | 182,319,337 | | | | | $ | 1,350,060 | | | | | $ | 355,477 | | | | | $ | — | | |
Multifamily
|
| | | | 49,282,430 | | | | | | — | | | | | | — | | | | | | — | | |
Residential
|
| | | | 46,505,912 | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 46,079,403 | | | | | | 3,214,727 | | | | | | 2,782,135 | | | | | | — | | |
| | | | $ | 324,187,082 | | | | | $ | 4,564,787 | | | | | $ | 3,137,612 | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Loan servicing rights: | | | | | | | | | | | | | |
Beginning of year
|
| | | $ | 2,724,436 | | | | | $ | 1,937,897 | | |
Additions
|
| | | | 787,818 | | | | | | 1,243,196 | | |
Change in fair value
|
| | | | (334,065) | | | | | | (456,657) | | |
End of year
|
| | | $ | 3,178,189 | | | | | $ | 2,724,436 | | |
| | |
Fair Value Measurements
|
| |||||||||||||||
| | |
Quoted Prices
In Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Recurring basis
|
| | | | | | | | | | | | | | | | | | |
Available for sale securities
|
| | | $ | — | | | | | $ | 1,337,566 | | | | | $ | — | | |
Loan servicing rights
|
| | | | — | | | | | | — | | | | | | 3,178,189 | | |
Non-recurring basis
|
| | | | | | | | | | | | | | | | | | |
Impaired loans
|
| | | | — | | | | | | — | | | | | | — | | |
Other real estate owned
|
| | | | — | | | | | | — | | | | | | 1,500,257 | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Recurring basis
|
| | | | | | | | | | | | | | | | | | |
Available for sale securities
|
| | | $ | — | | | | | $ | 2,778,079 | | | | | $ | — | | |
Loan servicing rights
|
| | | | — | | | | | | — | | | | | | 2,724,436 | | |
Non-recurring basis
|
| | | | | | | | | | | | | | | | | | |
Impaired loans
|
| | | | — | | | | | | — | | | | | | 854,470 | | |
Other real estate owned
|
| | | | — | | | | | | — | | | | | | 1,737,257 | | |
| | |
Carrying
Amount |
| |
Fair
Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 90,406 | | | | | $ | 90,406 | | | | | $ | 90,406 | | | | | $ | — | | | | | $ | — | | |
Time deposits in other
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
financial institutions
|
| | | | 1,849 | | | | | | 1,849 | | | | | | 1,849 | | | | | | — | | | | | | — | | |
Securities available for sale
|
| | | | 1,338 | | | | | | 1,338 | | | | | | — | | | | | | 1,338 | | | | | | — | | |
Loans, net
|
| | | | 493,243 | | | | | | 492,222 | | | | | | — | | | | | | — | | | | | | 492,222 | | |
Restricted stock
|
| | | | 768 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Accrued interest receivable
|
| | | | 4,278 | | | | | | 4,278 | | | | | | — | | | | | | 4,278 | | | | | | — | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits
|
| | | $ | 359,453 | | | | | $ | 361,551 | | | | | $ | — | | | | | $ | 361,551 | | | | | $ | — | | |
Borrowings
|
| | | | 190,021 | | | | | | 190,310 | | | | | | — | | | | | | 190,310 | | | | | | — | | |
Accrued interest payable
|
| | | | 1,030 | | | | | | 1,030 | | | | | | — | | | | | | 1,030 | | | | | | — | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 41,277 | | | | | $ | 41,277 | | | | | $ | 41,277 | | | | | $ | — | | | | | $ | — | | |
Time deposits in other financial institutions
|
| | | | 1,600 | | | | | | 1,600 | | | | | | 1,600 | | | | | | — | | | | | | — | | |
Securities available for sale
|
| | | | 2,778 | | | | | | 2,778 | | | | | | — | | | | | | 2,778 | | | | | | — | | |
Loans, net
|
| | | | 326,989 | | | | | | 323,520 | | | | | | — | | | | | | — | | | | | | 323,520 | | |
Restricted stock
|
| | | | 970 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Accrued interest receivable
|
| | | | 1,571 | | | | | | 1,571 | | | | | | — | | | | | | 1,571 | | | | | | — | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits
|
| | | $ | 325,855 | | | | | $ | 326,352 | | | | | $ | — | | | | | $ | 326,352 | | | | | $ | — | | |
Borrowings
|
| | | | 12,500 | | | | | | 12,687 | | | | | | — | | | | | | 12,687 | | | | | | — | | |
Accrued interest payable
|
| | | | 1,049 | | | | | | 1,049 | | | | | | — | | | | | | 1,049 | | | | | | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Leasehold improvements
|
| | | $ | 258,619 | | | | | $ | 251,510 | | |
Furniture and equipment
|
| | | | 540,477 | | | | | | 447,601 | | |
Computer hardware and software
|
| | | | 664,002 | | | | | | 636,073 | | |
| | | | | 1,463,098 | | | | | | 1,335,184 | | |
Less: accumulated depreciation
|
| | | | (990,377) | | | | | | (754,565) | | |
Premises and equipment, net
|
| | | $ | 472,721 | | | | | $ | 580,618 | | |
|
2021
|
| | | $ | 596,670 | | |
|
2022
|
| | | | 616,693 | | |
|
2023
|
| | | | 616,693 | | |
|
2024
|
| | | | 616,693 | | |
|
2025
|
| | | | 616,693 | | |
|
Thereafter
|
| | | | 308,346 | | |
| | | | | $ | 3,371,788 | | |
|
2021
|
| | | $ | 106,238,847 | | |
|
2022
|
| | | | 49,267,848 | | |
|
2023
|
| | | | 22,477,317 | | |
|
2024
|
| | | | 16,723,395 | | |
|
2025
|
| | | | 14,887,025 | | |
|
Thereafter
|
| | | | 1,261,101 | | |
| | | | | $ | 210,855,533 | | |
| | |
2020
|
| |
2019
|
| ||||||
Fixed-rate advances, at an average rate of 2.85%
|
| | | $ | 7,500,000 | | | | | $ | 12,500,000 | | |
|
2021
|
| | | $ | — | | |
|
2022
|
| | | | — | | |
|
2023
|
| | | | 7,500,000 | | |
|
2024
|
| | | | — | | |
|
2025
|
| | | | — | | |
| | | | | $ | 7,500,000 | | |
| | |
Shares
|
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at beginning of year
|
| | | | 625,401 | | | | | $ | 1.53 | | | | | | | | | | | | | | |
Granted
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Exercised
|
| | | | (18,980) | | | | | | 1.50 | | | | | | | | | | | | | | |
Forfeited or expired
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Outstanding at end of year
|
| | | | 606,421 | | | | | $ | 1.54 | | | | | | 4.12 | | | | | $ | 1,451,900 | | |
Exercisable at end of year
|
| | | | 606,421 | | | | | | 1.54 | | | | | | 4.12 | | | | | $ | 1,451,900 | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at beginning of year
|
| | | | 686,883 | | | | | $ | 1.53 | | | | | | | | | | | | | | |
Granted
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Exercised
|
| | | | (53,450) | | | | | | 1.50 | | | | | | | | | | | | | | |
Forfeited or expired
|
| | | | (8,032) | | | | | | 1.50 | | | | | | | | | | | | | | |
Outstanding at end of year
|
| | | | 625,401 | | | | | $ | 1.53 | | | | | | 5.14 | | | | | $ | 53,393 | | |
Exercisable at end of year
|
| | | | 625,401 | | | | | $ | 53,393 | | | | | | | | | | | | | | |
| | |
2020
|
| |
2019
|
| ||||||
Current expense
|
| | | $ | 3,150,163 | | | | | $ | 1,648,614 | | |
Deferred expense (benefit)
|
| | | | (875,160) | | | | | | 24,007 | | |
Total income tax expense
|
| | | $ | 2,275,003 | | | | | $ | 1,672,621 | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets
|
| | | $ | 3,628,468 | | | | | $ | 2,492,805 | | |
Deferred tax liabilities
|
| | | | (499,142) | | | | | | (239,195) | | |
Net deferred tax assets
|
| | | $ | 3,129,326 | | | | | $ | 2,253,610 | | |
| | |
2020
|
| |
2019
|
| ||||||
Commitments to extend credit
|
| | | $ | 13,766,282 | | | | | $ | 12,045,142 | | |
Standby letters of credit
|
| | | | 800,262 | | | | | | 800,262 | | |
| | |
Actual
|
| |
Required
For Capital Adequacy Purposes |
| |
To Be Well
Capitalized Under Prompt Corrective Action Regulations |
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2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk weighted assets
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| | | $ | 49,216 | | | | | | 16.28% | | | | | $ | 24,185 | | | | | | 8.00% | | | | | $ | 30,232 | | | | | | 10.00% | | |
Tier 1 (core) capital to risk weighted assets
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| | | | 45,380 | | | | | | 15.01 | | | | | | 18,139 | | | | | | 6.00 | | | | | | 24,185 | | | | | | 8.00 | | |
Common tier 1 (CET1) to risk weighted assets
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| | | | 45,380 | | | | | | 15.01 | | | | | | 13,604 | | | | | | 4.50 | | | | | | 19,651 | | | | | | 6.50 | | |
Tier 1 (core) capital to average assets
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| | | | 45,380 | | | | | | 10.66 | | | | | | 17,024 | | | | | | 4.00 | | | | | | 21,280 | | | | | | 5.00 | | |
2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk weighted assets
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| | | $ | 44,605 | | | | | | 14.18% | | | | | $ | 24,860 | | | | | | 8.00% | | | | | $ | 31,075 | | | | | | 10.00% | | |
Tier 1 (core) capital to risk weighted assets
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| | | | 40,163 | | | | | | 12.92 | | | | | | 18,645 | | | | | | 6.00 | | | | | | 24,860 | | | | | | 8.00 | | |
Common tier 1 (CET1) to risk weighted assets
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| | | | 40,163 | | | | | | 12.92 | | | | | | 13,984 | | | | | | 4.50 | | | | | | 20,198 | | | | | | 6.50 | | |
Tier 1 (core) capital to average assets
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| | | | 40,163 | | | | | | 10.62 | | | | | | 15,132 | | | | | | 4.00 | | | | | | 18,915 | | | | | | 5.00 | | |