Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 06, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HFBC | ||
Entity Registrant Name | HOPFED BANCORP INC | ||
Entity Central Index Key | 0001041550 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 6,648,887 | ||
Entity Public Float | $ 105,862,156 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 36,339 | $ 37,965 |
Interest-bearing deposits in banks | 15,711 | 7,111 |
Cash and cash equivalents | 52,050 | 45,076 |
Federal Home Loan Bank stock, at cost | 4,428 | 4,428 |
Securities available for sale | 170,804 | 184,791 |
Loans held for sale | 1,248 | 1,539 |
Loans receivable, net of allowance for loans of 4,536 at December 31, 2018 and 4,826 at December 31, 2017 and deferred loan fees of $419 at December 31, 2018 and $443 at December 31, 2017. | 658,782 | 637,102 |
Accrued interest receivable | 3,503 | 3,589 |
Foreclosed assets, net | 3,598 | 3,369 |
Bank owned life insurance | 10,672 | 10,368 |
Premises and equipment, net | 21,759 | 22,700 |
Deferred tax assets | 1,825 | 1,764 |
Other assets | 2,730 | 2,784 |
Total assets | 931,399 | 917,510 |
Deposits: | ||
Non-interest-bearing accounts | 129,476 | 136,197 |
Interest-bearing accounts: | ||
Interest bearing checking accounts | 196,972 | 208,496 |
Savings and money market accounts | 97,232 | 104,347 |
Other time deposits | 316,157 | 304,969 |
Total deposits | 739,837 | 754,009 |
Advances from Federal Home Loan Bank | 33,000 | 23,000 |
Repurchase agreements | 53,011 | 38,353 |
Subordinated debentures | 10,310 | 10,310 |
Advances from borrowers for taxes and insurance | 1,279 | 808 |
Accrued expenses and other liabilities | 3,176 | 3,618 |
Total liabilities | 840,613 | 830,098 |
Stockholders' equity | ||
Preferred stock, par value $0.01 per share; authorized 500,000 shares; no shares issued or outstanding at December 31, 2018 and December 31, 2017 | ||
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,990,867 issued and 6,648,887 outstanding at December 31, 2018 and 7,976,131 issued and 6,637,771 outstanding at December 31, 2017 | 80 | 80 |
Additional paid-in-capital | 59,105 | 58,825 |
Retained earnings | 55,134 | 51,162 |
Treasury stock, at cost (1,341,980 shares at December 31, 2018 and 1,338,360 shares at December 31, 2017) | (16,706) | (16,655) |
Unearned ESOP shares (at cost 382,691 shares at December 31, 2018 and 434,548 at December 31, 2017) | (5,268) | (5,901) |
Accumulated other comprehensive loss, net of taxes | (1,559) | (99) |
Total stockholders' equity | 90,786 | 87,412 |
Total liabilities and stockholders' equity | $ 931,399 | $ 917,510 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance for loans | $ 4,536 | $ 4,826 |
Deferred loan fees | $ 419 | $ 443 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,990,867 | 7,976,131 |
Common stock, shares outstanding | 6,648,887 | 6,637,771 |
Treasury stock, shares | 1,341,980 | 1,338,360 |
Unearned ESOP shares | 382,691 | 434,548 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income | |||
Loans | $ 31,709 | $ 28,167 | $ 25,778 |
Taxable securities available for sale | 4,080 | 4,478 | 4,595 |
Nontaxable securities available for sale | 797 | 1,014 | 1,308 |
Interest bearing deposits in banks | 145 | 96 | 46 |
Total interest and dividend income | 36,731 | 33,755 | 31,727 |
Interest expense: | |||
Deposits | 6,276 | 4,810 | 4,240 |
Advances from Federal Home Loan Bank | 623 | 248 | 163 |
Repurchase agreements | 736 | 469 | 508 |
Subordinated debentures | 539 | 436 | 388 |
Total interest expense | 8,174 | 5,963 | 5,299 |
Net interest income | 28,557 | 27,792 | 26,428 |
Provision for loan losses | 288 | 477 | 1,241 |
Net interest income after provision for loan losses | 28,269 | 27,315 | 25,187 |
Non-interest income: | |||
Service charges | 2,938 | 3,224 | 2,788 |
Merchant card | 1,279 | 1,222 | 1,224 |
Mortgage origination | 1,434 | 1,321 | 1,585 |
Realized gains from sale of securities available for sale, net | 553 | 169 | 612 |
Income from bank owned life insurance | 304 | 483 | 343 |
Financial services commission | 677 | 536 | 614 |
Other operating | 632 | 1,075 | 769 |
Total non-interest income | 7,817 | 8,030 | 7,935 |
Non-interest expenses: | |||
Salaries and employee benefits | 16,064 | 16,049 | 15,400 |
Occupancy | 3,012 | 2,920 | 3,173 |
Data processing | 3,168 | 2,884 | 2,942 |
State deposit tax | 699 | 770 | 990 |
Professional services | 1,711 | 2,316 | 1,404 |
Advertising | 1,204 | 1,354 | 1,401 |
Foreclosed assets, net | 72 | 9 | 448 |
Loss (gain) on sale of premises and equipment | 10 | 2 | (72) |
Other operating | 3,410 | 3,592 | 4,170 |
Total non-interest expense | 29,350 | 29,896 | 29,856 |
Income before income tax expense | 6,736 | 5,449 | 3,266 |
Income tax expense | 1,067 | 2,148 | 362 |
Net income | $ 5,669 | $ 3,301 | $ 2,904 |
Earnings per share available to common stockholders: | |||
Basic | $ 0.91 | $ 0.53 | $ 0.47 |
Diluted | $ 0.91 | $ 0.53 | $ 0.47 |
Weighted average shares outstanding - basic | 6,233,176 | 6,221,632 | 6,233,860 |
Weighted average shares outstanding - diluted | 6,233,176 | 6,221,632 | 6,233,860 |
Interim Consolidated Condensed
Interim Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 5,669 | $ 3,301 | $ 2,904 |
Other comprehensive loss, net of tax: | |||
Unrealized loss on non - other than temporary impaired ("OTTI") investment securities available for sale, net of taxes | (1,256) | (387) | (1,351) |
Unrealized gain (loss) on OTTI securities, net of taxes | 233 | (148) | (170) |
Reclassification adjustment for gains and accretion included in net income, net of taxes | (437) | (112) | (405) |
Total other comprehensive loss | (1,460) | (647) | (1,926) |
Comprehensive income | $ 4,209 | $ 2,654 | $ 978 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2015 | $ 87,630 | $ 79 | $ 58,604 | $ 47,124 | $ (13,471) | $ (7,180) | $ 2,474 |
Beginning balance, Shares at Dec. 31, 2015 | 6,865,811 | ||||||
Net income | 2,904 | 2,904 | |||||
Restricted stock awards | 1 | $ 1 | |||||
Restricted stock awards, shares | 11,679 | ||||||
Net change in unrealized gain (loss) on securities available for sale, net of taxes | (1,926) | (1,926) | |||||
Cash dividend to common stockholders | (993) | (993) | |||||
Common stock repurchase | (1,876) | (1,876) | |||||
Common stock repurchase, shares | (160,248) | ||||||
ESOP shares earned | 553 | (79) | 632 | ||||
Compensation expense, restricted stock awards | 135 | 135 | |||||
Ending balance at Dec. 31, 2016 | 86,428 | $ 80 | 58,660 | 49,035 | (15,347) | (6,548) | 548 |
Ending balance, Shares at Dec. 31, 2016 | 6,717,242 | ||||||
Net income | 3,301 | 3,301 | |||||
Restricted stock awards, shares | 12,753 | ||||||
Net change in unrealized gain (loss) on securities available for sale, net of taxes | (647) | (647) | |||||
Cash dividend to common stockholders | (1,174) | (1,174) | |||||
Common stock repurchase | (1,308) | (1,308) | |||||
Common stock repurchase, shares | (92,224) | ||||||
ESOP shares earned | $ 706 | 59 | 647 | ||||
ESOP Shares Earned, shares | 600,234 | 600,234 | |||||
Compensation expense, restricted stock awards | $ 106 | 106 | |||||
Ending balance at Dec. 31, 2017 | 87,412 | $ 80 | 58,825 | 51,162 | (16,655) | (5,901) | (99) |
Ending balance, Shares at Dec. 31, 2017 | 6,637,771 | ||||||
Net income | 5,669 | 5,669 | |||||
Restricted stock awards, shares | 15,039 | ||||||
Net change in unrealized gain (loss) on securities available for sale, net of taxes | (1,460) | (1,460) | |||||
Cash dividend to common stockholders | (1,697) | (1,697) | |||||
Restricted stock awards forfeited | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock awards forfeited, shares | (303) | ||||||
Common stock repurchase | $ (51) | (51) | |||||
Common stock repurchase, shares | (296,380) | (3,620) | |||||
ESOP shares earned | $ 749 | 116 | 633 | ||||
ESOP Shares Earned, shares | 598,201 | 598,201 | |||||
Compensation expense, restricted stock awards | $ 164 | 164 | |||||
Ending balance at Dec. 31, 2018 | $ 90,786 | $ 80 | $ 59,105 | $ 55,134 | $ (16,706) | $ (5,268) | $ (1,559) |
Ending balance, Shares at Dec. 31, 2018 | 6,648,887 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net change in unrealized gain (loss) on securities available for sale, taxes | $ 388 | $ 172 | $ 992 |
Cash dividend to common stockholders, per share | $ 0.26 | $ 0.19 | $ 0.16 |
Retained Earnings [Member] | |||
Cash dividend to common stockholders, per share | $ 0.26 | $ 0.19 | $ 0.16 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Net change in unrealized gain (loss) on securities available for sale, taxes | $ 388 | $ 172 | $ 992 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 5,669 | $ 3,301 | $ 2,904 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 288 | 477 | 1,241 |
Depreciation | 1,250 | 1,225 | 1,320 |
Amortization of investment premiums and discounts, net | 799 | 1,073 | 1,515 |
OTTI recovery on available for sale securities | (4) | (17) | (17) |
Expense for deferred income taxes | 296 | 1,585 | 267 |
Stock compensation expense | 164 | 106 | 135 |
Income from bank owned life insurance | (304) | (483) | (343) |
Gain on sale of securities available for sale | (553) | (169) | (612) |
Gain on sale of mortgage loans | (1,434) | (1,321) | (1,585) |
Loss (gain) on disposal of premises and equipment | 10 | 2 | (72) |
Proceeds from sale of mortgage loans | 44,073 | 51,494 | 56,309 |
Gain on sale of foreclosed assets | (10) | (158) | (21) |
Originations of mortgage loans sold | (42,639) | (50,618) | (53,026) |
(Increase) decrease in: | |||
Accrued interest receivable | 86 | 210 | 340 |
Other assets | (784) | 389 | 145 |
(Decrease) increase in accrued expenses and other liabilities | (442) | 1,173 | (1,980) |
Net cash provided by operating activities | 6,465 | 8,269 | 6,520 |
Cash flows from investing activities: | |||
Proceeds from sales, calls and maturities of securities available for sale | 35,298 | 54,416 | 67,671 |
Purchase of securities available for sale | (23,377) | (31,594) | (43,778) |
Net increase in loans | (21,099) | (37,605) | (49,586) |
Proceeds from sale of foreclosed assets | 164 | 3,498 | 1,623 |
Proceeds from death benefit of bank owned life insurance policy | 777 | ||
Proceeds from sale of premises and equipment | 100 | ||
Purchase of premises and equipment | (319) | (466) | (775) |
Net cash used in investing activities | (9,333) | (10,974) | (24,745) |
Cash flows from financing activities: | |||
Net (decrease) increase in deposits | (14,172) | 21,127 | (6,524) |
Increase in advance payments by borrowers for taxes and insurance | 471 | 42 | 152 |
Advances from Federal Home Loan Bank | 87,000 | 80,000 | 26,000 |
Repayment of advances from Federal Home Loan Bank | (77,000) | (68,000) | (30,000) |
Increase (decrease) in repurchase agreements | 14,658 | (9,302) | 1,885 |
Acquisition of treasury stock | (51) | (1,308) | (1,876) |
Proceeds from repayment of ESOP loan | 633 | 647 | 632 |
Dividends paid on common stock | (1,697) | (1,174) | (993) |
Net cash provided by (used in) financing activities | 9,842 | 22,032 | (10,724) |
Increase (decrease) in cash and cash equivalents | 6,974 | 19,327 | (28,949) |
Cash and cash equivalents, beginning of period | 45,076 | 25,749 | 54,698 |
Cash and cash equivalents, end of period | 52,050 | 45,076 | 25,749 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 7,891 | 5,920 | 5,354 |
Income taxes paid (refund) | 583 | 1,044 | (564) |
Supplemental disclosures of non-cash investing and financing activities: | |||
Foreclosures and in-substance foreclosures of loans during year | $ 383 | $ 4,312 | $ 2,263 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Nature of Operations and Customer Concentration HopFed Bancorp, Inc. (the “Corporation”) is a bank holding company which incorporated in the state of Delaware and headquartered in Hopkinsville, Kentucky. The Corporation’s principal business activities are conducted through its wholly-owned subsidiary, Heritage Bank USA, Inc. (the “Bank”), a Kentucky state chartered commercial bank engaged in the business of accepting deposits and providing mortgage, consumer, construction and commercial loans to the general public through its retail banking offices. The Bank’s business activities are primarily limited to western Kentucky and middle and western Tennessee. Deposits at the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank is a Kentucky commercial chartered bank and is supervised by the Kentucky Department of Financial Institutions (“KDFI”) and the FDIC. Supervision of the Corporation is conducted by the Federal Reserve Bank of Saint Louis (“FED”). The Bank owns JBMM, LLC, a wholly owned limited liability company which owns and manages the Bank’s foreclosed assets. The Bank owns Heritage USA Title, LLC, which sells title insurance to the Bank’s real estate loan customers. The Bank owns Fort Webb LP, LLC, which owns a limited partnership interest in Fort Webb Elderly Housing LP, LLC, a low income senior citizen housing facility in Bowling Green, Kentucky. The facility offers apartments for rent for those senior citizens who qualify and is managed by the Bowling Green, Kentucky Housing Authority. A substantial portion of the Bank’s loans are secured by real estate in the western Kentucky and middle and west Tennessee markets. Accordingly, the ultimate ability to collect on a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate is susceptible to changes in local market conditions. Principles of Consolidation The consolidated financial statements include the accounts of the Corporation, the Bank and its subsidiaries (collectively the “Company”) for all periods. Significant inter-company balances and transactions have been eliminated in consolidation. Accounting The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and conform to general practices in the banking industry. U.S. GAAP is generally defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), as amended by Accounting Standards Updates (“ASUs”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) are also sources of authoritative U.S. GAAP for SEC registrants. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE) under U.S. GAAP. Voting interest entities in which the total equity investment is a risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decision about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The subsidiaries, HopFed Capital Trust I and Fort Webb LP, LLC are VIEs for which the Company is not the primary beneficiary. Accordingly, these accounts are not included in the Company’s consolidated financial statements. Subsequent Events The Company has evaluated subsequent events for potential impact and disclosure through the issue date of these Consolidated Financial Statements. On January 7, 2019, First Financial Corporation (NASDAQ: THFF) (“First Financial”) and the Company jointly announced today the execution of a definitive merger agreement under which the Company will merge into First Financial in a cash and stock transaction. Upon completion of the merger, the Bank will merge into First Financial Bank, N.A. (“First Financial Bank”), a wholly owned subsidiary of First Financial. Under the terms of the merger agreement, which was unanimously approved by the boards of both companies, stockholders of the Company may elect to receive either (or a combination of) 0.444 shares of First Financial common stock or $21.00 in cash for each share of HFBC common stock owned, subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of 50% of HFBC shares being exchanged for First Financial common stock and 50% for cash. Based upon the $43.01 closing price of the common stock of First Financial on January 4, 2019 and assuming that a shareholder received 50% stock and 50% cash, the purchase price would be worth $20.05 per share, with an aggregate transaction value of approximately $128.3 million. The merger is subject to regulatory approval and an affirmative vote of shareholders and is expected to close in the second quater of 2019. Estimates In preparing the consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and revenues and expenses for each year. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant collateral. Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, amounts due on demand from commercial banks, interest-bearing deposits in other financial institutions and federal funds sold with maturities of three months or less. The Company is required to maintain reserve funds in either cash on hand or on deposit with the Federal Reserve Bank. At December 31, 2018, the Company’s reserve requirement was met with available cash on hand. Securities The Company reports debt, readily-marketable equity, mortgage-backed and mortgage related securities in one of the following categories: (i) “trading” (held for current resale) which are to be reported at fair value, with unrealized gains and losses included in earnings; and (ii) “available for sale” (all other debt, equity, mortgage-backed and mortgage related securities) which are to be reported at fair value, with unrealized gains and losses reported net of tax as a separate component of stockholders’ equity. The Company does not utilize a held to maturity classification for investment securities. At the time of new security purchases, a determination is made as to the appropriate classification. Realized and unrealized gains and losses on trading securities are included in net income. Unrealized gains and losses on securities available for sale are recognized as direct increases or decreases in stockholders’ equity, net of any tax effect. Cost of securities sold is recognized using the specific identification method. Interest income on securities is recognized as earned. The Company purchases many agency bonds at either a premium or discount to its par value. Premiums and discounts on agency bonds are amortized using the net interest method. For callable bonds purchased at a premium, the premium is amortized to the first call date. If the bond is not called on that date, the premium is fully amortized and the Company recognizes an increase in the net yield of the investment. For agency bonds purchased at a discount, the discount is accreted to the final maturity date. For callable bonds purchased at discount and called before maturity, the Company recognizes a gain on the sale of securities. The Company amortizes premiums and accretes discounts on mortgage back securities and collateralized mortgage obligations based on the securities three-month average prepayment speed. Gains and losses on sales are recorded on the trade date. Other Than Temporary Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic conditions warrant such evaluation. A decline in the fair value of any available-for-sale is other-than-temporary, management more-likely-than-not more-likely-than-not Other Securities Other securities which are not actively traded and may be restricted, such as Federal Home Loan Bank (FHLB) stock are recognized at cost. FHLB stock is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Receivable and Allowance for Loan Losses Loans receivable are stated at unpaid principal balances, less the allowance for loan losses and deferred loan cost, net of unearned income, ASC 310-20, Nonrefundable Fees and Other Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, non-accrual, The Company provides an allowance for loan losses and includes a provision for loan losses determined by management. Subsequent recoveries, if any, are credited to the allowance. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. The loss experience is determined by portfolio segment and is based on the actual losses experienced by the Company over the most recent three years. Loans are considered to be impaired when, in management’s judgment, principal or interest is not collectible according to the contractual terms of the loan agreement. When conducting loan evaluations, management considers various factors such as historical loan performance, the financial condition of the borrower and adequacy of collateral to determine if a loan is impaired. Impaired loans and loans classified as Troubled Debt Restructurings (“TDRs”) may be classified as either substandard or doubtful and reserved for based on individual loans risk for loss. Loans not considered impaired may be classified as either special mention or watch and may have an allowance established for it. Typically, unimpaired classified loans exhibit some form of weakness in either industry trends, collateral, or cash flow that result in a default risk greater than that of the Company’s typical loan. All classified amounts include all unpaid interest and fees as well as the principal balance outstanding. The measurement of impaired loans may be based on the present value of future cash flows discounted at the historical effective interest rate. However, the majority of the Company’s problem loans become collateral dependent at the time they are judged to be impaired. Therefore, the measurement of impairment requires the Company to obtain a current appraisal to determine the fair value of the collateral. The appraised value is then discounted to an estimate of the Company’s net realizable value. When the measured amount of an impaired loan is less than the recorded investment in the loan, the impairment is recorded as a charge to income and a valuation allowance, which is included as a component of the allowance for loan losses. For loans not individually evaluated, management considers the Company’s recent charge off history, the Company’s current past due and non-accrual If an asset or portion thereof is classified as a loss, we establish a specific reserve for such amount. If the Company determines that a loan relationship is collateral dependent, the Company will charge off the portion of that loan that is deemed to be impaired against the allowance for loan loss account. The Company defines collateral dependent as any loan in that the customer will be unable to reduce the principal balance of the loan without the complete or partial sale of the collateral. The Company will charge off a portion or all of a loan balance once it deems the collection of any remaining interest and principal due to be unlikely. Loans Held For Sale Mortgage loans originated and intended for sale are carried at the lower of cost or estimated fair value as determined on a loan-by-loan Fixed Rate Mortgage Originations The Company operates a mortgage division that originates mortgage loans in the name of assorted investors, including Federal Home Loan Mortgage Corporation (Freddie Mac). Originations for are sold through the Bank. On a limited basis, loans sold to Freddie Mac may result in the Bank retaining loan servicing rights. In recent years, customers have chosen lower origination rates over having their loan locally serviced; thereby limiting the amount of new loans sold with servicing retained. At December 31, 2018, the Bank maintained a servicing portfolio of one to four family real estate loans of approximately $14.3 million. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are initially recorded at fair value less selling cost when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Costs of improving the assets are capitalized if the Company determines that it is likely to recover the improvement cost. Other improvement costs and all costs relating to holding the property are expensed. Management conducts periodic valuations and any adjustments to value are recognized in the current period’s operations. Repurchase Agreements The Company sells investments from its portfolio to business and municipal customers with a written agreement to repurchase those investments on the next business day. The repurchase product gives business customers the opportunity to earn income on liquid cash reserves. These funds are overnight borrowings of the Company secured by Company assets and are not FDIC insured. Treasury Stock The Company may purchase its own common stock either in open market transactions or privately negotiated transactions. The value of the Company’s common stock held in treasury is listed at cost. Unearned ESOP Shares The Company offers an Employee Stock Ownership Plan (“ESOP”) to the employees of the Company. Compensation expense under the ESOP is equal to the fair value of common shares released or committed to be released to participants in the ESOP in each respective period. The unearned portion of common stock of the Company held in the ESOP Trust is recorded on the balance sheet at cost as a reduction of shareholder’s equity. Common stock is released from the ESOP Trust to the participants as the Bank makes payments on the loan to the Corporation on behalf of the ESOP Trust. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, net of tax. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets have been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Revenue Recognition Mortgage loans held for sale are generally delivered to secondary market investors under best efforts sales commitments entered into prior to the closing of the individual loan. Loan sales and related gains or losses are recognized at settlement. Loan fees earned for the servicing of secondary market loans are recognized as earned. Interest income on loans receivable is reported on the interest method. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired, placed in non-accrual non-accrual Income Taxes Income taxes are accounted for through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates are recognized in income in the period that includes the enactment date. Accordingly, deferred tax assets that will be realized at December 31, 2017 were revalued using the tax rates enacted as a result of the 2017 Tax Cuts and Jobs Act resulting in a revaluation charge of $980,000, which is included in income tax expense for the year ended December 31, 2017. The Company files its federal and Kentucky income tax returns as well as its Kentucky and Tennessee franchise and excise tax returns on a consolidated basis with its subsidiaries. All taxes are accrued on a separate entity basis. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being recognized on examination. For tax positions not meeting the “more likely than not test”, no benefit is recorded. Operating Segments The Company’s continuing operations include one primary segment, retail banking. The retail banking segment involves the origination of commercial, residential and consumer loans as well as the collections of deposits in eighteen branch offices. Premises and Equipment Land, land improvements, buildings, and furniture and equipment are carried at cost, less accumulated depreciation and amortization. Buildings and land improvements are depreciated generally by the straight-line method, and furniture and equipment are depreciated under various methods over the estimated useful lives of the assets. The Company capitalizes interest expense on construction in process at a rate equal to the Company’s cost of funds. The estimated useful lives used to compute depreciation are as follows: Land improvements 5-15 years Buildings 40 years Furniture and equipment 5-15 Bank Owned Life Insurance Bank owned life insurance policies (BOLI) are recorded at the cash surrender value or the amount to be realized upon current redemption. The realization of the redemption value is evaluated for each insuring entity that holds insurance contracts annually by management. Advertising The Company expenses the cost of advertising as incurred. Financial Instruments The Company has entered into off-balance-sheet Fair Values of Financial Instruments (ASC 825) requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. Accordingly, such estimates involve uncertainties and matters of judgment and therefore cannot be determined with precision. ASC 825 excludes certain financial instruments and all non-financial The following are the more significant methods and assumptions used by the Company in estimating the fair value of financial instruments: Available-for-sale Fair values for investment securities available-for-sale Loans held for sale Mortgage loans originated and intended to be sold are carried at the lower of cost or estimated fair value as determined on a loan by loan basis. Gains or losses are recognized at the time of ownership transfer. Net unrealized losses, if any, are recognized through a valuation allowance and charged to income. Dividend Restrictions The Company is not permitted to pay a dividend to common shareholders if it fails to make a quarterly interest payment to the holders of the Company’s subordinated debentures. Furthermore, the Bank may be restricted in the payment of dividends to the Corporation by the KDFI or FDIC. Any restrictions imposed by either regulator would effectively limit the Company’s ability to pay a dividend to its common stockholders as discussed in Note 16. At December 31, 2018, there were no such restrictions. At December 31, 2018 and December 31, 2017, the Corporation had cash balances on hand to pay common dividends and repurchase treasury stock as outlined in Note 18 of approximately $1.1 million and $860,000, respectively. Earnings Per Share Earnings per share (EPS) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus dilutive common stock equivalents (CSE). CSE consists of dilutive stock options granted through the Company’s stock option plan. Restricted stock awards represent future compensation expense and are dilutive. Anti-dilutive common stock equivalents are not included for the purposes of this calculation. At December 31, 2018 and December 31, 2017, the Company has no warrants or stock options outstanding. Stock Compensation Compensation cost is recognized for restricted stock awards issued to employees based on the fair value of these awards at the date of grant. The cost is recognized over the required service period, generally defined as the vesting period. Effect of New Accounting Pronouncements In May 2014, the FASB issued new guidance related to “ Revenue from Contracts with Customers Revenue Recognition • Service charges on deposits, investment services and interchange fees — • Title Insurance sales commissions • Gains on sales of other real estate — 2014-09 610-20, ASU 2016-01, 825-10): 2016-01, available-for-sale. 2016-01 2016-01 ASU 2016-02 Leases (Topic 842) 2016-02 right-of-use 2016-02 2016-02 ASU 2016-09, 2016-09 paid-in paid-in paid-in ASU 2016-09 2016-09 2016-09 2016-09 On June 16, 2016, the FASB released its finalized ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” available-for-sale. 2016-13 2016-13 2016-13. ASU 2016-15 “Statement of Cash Flows” (Topic 230) 2016-15 2016-15 In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, 2017-01”) 2017-01 ASU 2017-08, “Receivables – Nonrefundable Fees and Other Cost” (Topic 310) 2017-08 non-contingent 2017-08 ASU 2017-09 “Compensation – Stock Compensation” (Topic 718) – 2017-09, • The fair value of the modified award is the same as the fair value of the original award immediately before modification, • The vesting conditions of the modified award is the same as the vesting conditions value of the original award immediately before modification, and • The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before modification. ASU 2017-09 ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. 2018-02 ASU 2018-02 2018-02 ASU 2018-02 2018-02 2018-02 2018-02 ASU 2018-16, ASU 2018-16 In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” No. 2018-13 No. 2018-13 Other accounting standards that have been issued or proposed by the FASB or other standards bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. Reclassifications had no effect on prior year’s net income or shareholders’ equity. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Securities | (2) Securities: Securities, which consist of debt and equity investments, have been classified in the consolidated balance sheets according to management’s intent. The carrying amount of securities and their estimated fair values follow: December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Agency securities $ 81,158 345 (1,154 ) 80,349 Tax free municipal bonds 25,753 181 (152 ) 25,782 Taxable municipal bonds 957 2 (5 ) 954 Mortgage-backed securities 64,909 56 (1,246 ) 63,719 $ 172,777 584 (2,557 ) 170,804 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Agency securities $ 84,210 536 (653 ) 84,093 Tax free municipal bonds 26,412 637 (83 ) 26,966 Taxable municipal bonds 1,279 5 (1 ) 1,283 Trust preferred securities 1,650 35 — 1,685 Mortgage-backed securities 71,389 201 (826 ) 70,764 $ 184,940 1,414 (1,563 ) 184,791 The scheduled maturities of debt securities available for sale at December 31, 2018 are as follows: Estimated December 31, 2018 Amortized Fair Due within one year $ 2,991 2,996 Due in one to five years 28,101 27,736 Due in five to ten years 14,146 13,944 Due after ten years 14,890 14,971 Amortizing agency bonds 47,740 47,438 Mortgage-backed securities 64,909 63,719 $ 172,777 170,804 The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2018 and December 31, 2017 are as follows: Less than 12 months 12 months or longer Total December 31, 2018 Estimated Unrealized Estimated Unrealized Estimated Unrealized Available for sale U.S. Agency securities $ — — 54,441 (1,154 ) 54,441 (1,154 ) Tax free municipals 1,465 (8 ) 5,619 (144 ) 7,084 (152 ) Taxable municipals — — 507 (5 ) 507 (5 ) Mortgage-backed securities — — 54,548 (1,246 ) 54,548 (1,246 ) $ 1,465 (8 ) 115,115 (2,549 ) 116,580 (2,557 ) Less than 12 months 12 months or longer Total December 31, 2017 Estimated Unrealized Estimated Unrealized Estimated Unrealized Available for sale U.S. Agency securities $ 41,501 (431 ) 9,846 (222 ) 51,347 (653 ) Tax free municipals 4,860 (51 ) 913 (32 ) 5,773 (83 ) Taxable municipals 521 (1 ) — — 521 (1 ) Mortgage-backed securities 40,441 (289 ) 21,566 (537 ) 62,007 (826 ) $ 87,323 (772 ) 32,325 (791 ) 119,648 (1,563 ) Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Management gives consideration to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2018, the Company has 86 securities with unrealized losses. Management believes these unrealized losses relate to changes in interest rates and not credit quality. Management also believes the Company has the ability to hold these securities until maturity and, therefore, no declines are deemed to be other than temporary. The carrying value of the Company’s investment securities may decline in the future if the financial condition of issuers deteriorates and management determines it is probable that the Company will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. In June of 2008, the Company purchased $2.0 million par value of a private placement subordinated debenture issued by First Financial Services Corporation (“FFKY”), the holding Company for First Federal Savings Bank (“First Fed”). At September 30, 2013, the Company recognized a $400,000 impairment charge related to management’s financial analysis of the issuing institution, and our opinion that it would be unable to make dividend payments after the five-year extension expired. In June 2018, the security was called at its $2.0 million par value by its current sponsor. The unrealized accretion of the previous impairment was recognized as a $373,000 gain on the sale of securities in June 2018. During 2018, the Company sold investment securities classified as available for sale for proceeds of $10.1 million resulting in gross gains of $195,000 and gross losses of $15,000. During 2017, the Company sold investment securities classified as available for sale for proceeds of $18.0 million resulting in gross gains of $272,000 and gross losses of $103,000. During 2016, the Company sold investment securities classified as available for sale for proceeds of $19.0 million resulting in gross gains of $690,000 and gross losses of $78,000. As part of its normal course of business, the Bank holds significant balances of municipal and other deposits that require the Bank to pledge investment instruments as collateral. At December 31, 2018, the Bank pledged investments with a book value of $96.5 million and a market value of approximately $96.9 million to various municipal entities as required by law. In addition, the Bank has provided $49.6 million of letters of credit issued by the Federal Home Loan Bank of Cincinnati to collateralize municipal deposits. At December 31, 2017, the Bank pledged investments with a book value of $118.0 million and a market value of approximately $119.8 million to various municipal entities as required by law. In addition, the Bank has provided $47.6 million of letters of credit issued by the Federal Home Loan Bank of Cincinnati to collateralize municipal deposits. At December 31, 2018 and December 31, 2017, the collateral for the letters of credit issued are the Bank’s one to four family loan portfolio. |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans Receivable, Net | (3) Loans Receivable, Net The Company uses the following loan segments as described below: • One-to-four closed-end non-owner • Home equity lines of credit may be first or second mortgages secured by one-to-four • Junior liens are closed-end one-to-four • Multi-family loans are closed-end • Constructions loans may consist of residential or commercial properties and carry a fixed or variable rate for the term of the construction period. Construction loans have a maturity of between twelve and twenty-four months depending on the type of property. After the construction period, loans are amortized over a twenty-year period. All construction loans are under written under the Company’s commercial loan underwriting guidelines for the type of property being constructed. • Land loans consist of properties currently under development, land held for future development and land held for recreational purposes. Land loans used for recreational purposes are amortized for twenty years and typically carry a fixed rate of interest for one-to-five • Non-residential non-owner non-residential • Loans classified as farmland by the Company include properties that are used exclusively for the production of grain, livestock, poultry or swine. Loans secured by farmland have a maturity of up to twenty years and carry a fixed rate of interest for five to ten years. Loans secured by farmland are under-written under the Company’s commercial loan underwriting guidelines. • The Company originates secured and unsecured consumer loans. Collateral for consumer loans may include deposits, brokerage accounts, automobiles and other personal items. Consumer loans are typically fixed for a term of one to five years and are under-written using the Company’s consumer loan policy. • The Company originates unsecured and secured commercial loans. Secured commercial loans may have business inventory, accounts receivable and equipment as collateral. The typical customer may include all forms of manufacturing, retail and wholesale sales, professional services and various forms of agri-business interest. Commercial loans may be fixed or variable rate and typically have terms between one and five years. Set forth below is selected data relating to the composition of the loan portfolio by type of loan at December 31, 2018 and December 31, 2017: December 31, 2018 December 31, 2017 Real estate loans: One-to-four family (closed end) first mortgages $ 175,638 $ 163,565 Home equity lines of credit 32,781 35,697 Junior liens (closed end) 1,037 1,184 Multi-family 26,067 37,445 Construction 38,700 30,246 Land 12,175 14,873 Non-residential real estate 242,390 224,952 Farmland 34,041 36,851 Total mortgage loans 562,829 544,813 Consumer loans 8,442 8,620 Commercial loans 92,466 88,938 Total other loans 100,908 97,558 Total loans, gross 663,737 642,371 Deferred loan cost, net of fees (419 ) (443 ) Less allowance for loan losses (4,536 ) (4,826 ) Total loans $ 658,782 $ 637,102 Although the Company has a diversified loan portfolio, 84.8% of the portfolio was concentrated in loans secured by real estate at December 31, 2018 and December 31, 2017. At December 31, 2018 and December 31, 2017, the majority of these loans are located within the Company’s general operating areas of Western Kentucky and Middle and Western Tennessee. Risk Grade Classifications The Company uses the following risk definitions for commercial loan risk grades: Excellent - Very Good - Satisfactory - Acceptable - Watch - All loans with a risk classification of watch or better are considered a pass credit. Special Mention - Non-financial Substandard - Doubtful - work-out work-out Loss - The following credit risk standards are assigned to consumer loans: Satisfactory - open-end closed-end Substandard - open-end closed-end Loss - closed-end open-end charge-off 120-day 180-day Loans by classification type and credit risk indicator at December 31, 2018 were as follows: Special Pass Mention Substandard Doubtful Total One-to-four $ 174,973 — 665 — 175,638 Home equity line of credit 32,684 — 97 — 32,781 Junior liens 1,033 — 4 — 1,037 Multi-family 26,067 — — — 26,067 Construction 38,548 152 — — 38,700 Land 12,175 — — — 12,175 Non-residential 232,289 596 9,505 — 242,390 Farmland 33,808 233 — — 34,041 Consumer loans 8,233 — 209 — 8,442 Commercial loans 85,433 3,190 3,843 — 92,466 Total $ 645,243 4,171 14,323 — 663,737 Loans by classification type and credit risk indicator at December 31, 2017 were as follows: Special Pass Mention Substandard Doubtful Total One-to-four $ 162,993 — 572 — 163,565 Home equity line of credit 35,285 — 412 — 35,697 Junior liens 1,184 — — — 1,184 Multi-family 37,445 — — — 37,445 Construction 30,246 — — — 30,246 Land 14,318 — 555 — 14,873 Non-residential 216,901 979 7,072 — 224,952 Farmland 35,253 1,147 451 — 36,851 Consumer loans 8,376 — 244 — 8,620 Commercial loans 83,892 3,572 1,474 — 88,938 Total $ 625,893 5,698 10,780 — 642,371 Impaired loans by classification type and the related valuation allowance amounts at December 31, 2018 were as follows: For the year ended At December 31, 2018 December 31, 2018 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans with no specific allowance One-to-four $ — — — 710 27 Home equity line of credit — — — 261 4 Junior liens — — — 2 — Multi-family — — — — — Construction — — — — — Land — — — 312 — Non-residential 9,174 9,174 — 5,973 693 Farmland — — — 111 — Consumer loans — — — 5 — Commercial loans 3,452 3,452 — 2,333 234 Total 12,626 12,626 — 9,707 958 Impaired loans with a specific allowance One-to-four $ 274 274 13 55 12 Home equity line of credit — — — — — Junior liens — — — — — Multi-family — — — — — Construction — — — — — Land — — — — — Non-residential — — — 1,115 — Farmland — — — — — Consumer loans 208 208 52 284 — Commercial loans 141 141 141 793 23 Total 623 623 206 2,247 35 Total impaired loans $ 13,249 13,249 206 11,954 993 Impaired loans by classification type and the related valuation allowance amounts at December 31, 2017 were as follows: For the year ended At December 31, 2017 December 31, 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans with no specific allowance One-to-four $ 257 257 — 1,235 35 Home equity line of credit — — — 447 26 Junior liens — — — 6 — Multi-family — — — 1,135 — Construction — — — — — Land 515 515 — 837 44 Non-residential 7,086 7,086 — 8,979 395 Farmland 444 444 — 1,094 35 Consumer loans — — — 8 2 Commercial loans 875 875 — 1,571 46 Total 9,177 9,177 — 15,312 583 Impaired loans with a specific allowance One-to-four $ — — — — — Home equity line of credit — — — — — Junior liens — — — — — Multi-family — — — — — Construction — — — — — Land — — — 4,006 — Non-residential 2 2 2 88 2 Farmland — — — 195 — Consumer loans 217 217 54 248 — Commercial loans 541 541 233 479 13 Total 760 760 289 5,016 15 Total impaired loans $ 9,937 9,937 289 20,328 598 The average recorded investment in impaired loans and income earned on impaired loans for the year ended December 31, 2016 was $31.6 million and $1.5 million, respectively. Allowance for Loan Losses A loan is considered to be impaired when management determines that it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. The value of individually impaired loans is measured based on the present value of expected payments or using the fair value of the collateral if the loan is collateral dependent. The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A management reporting system supplements the review process by providing the Company with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner . non-residential non-owner At December 31, 2017, approximately $95.6 million of the outstanding principal balance of the Company’s non-residential non-owner non-residential non-owner The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2018 and December 31, 2017 by portfolio segment and based on the impairment method as of December 31, 2018 and December 31, 2017. Land Development / Commercial Residential Commercial Construction Real Estate Real Estate Consumer Total December 31, 2018: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 141 — — 13 52 206 Collectively evaluated for impairment 534 969 1,616 1,151 60 4,330 Total ending allowance balance $ 675 969 1,616 1,164 112 4,536 Loans: Loans individually evaluated for impairment $ 3,593 — 9,174 274 208 $ 13,249 Loans collectively evaluated for impairment 88,873 50,875 293,324 209,182 8,234 650,488 Total ending loans balance $ 92,466 50,875 302,498 209,456 8,442 663,737 Land Development / Commercial Residential Commercial Construction Real Estate Real Estate Consumer Total December 31, 2017: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 233 — 2 — 54 289 Collectively evaluated for impairment 614 1,384 1,468 941 130 4,537 Total ending allowance balance $ 847 1,384 1,470 941 184 4,826 Loans: Loans individually evaluated for impairment $ 1,416 515 7,532 257 217 9,937 Loans collectively evaluated for impairment 87,522 44,604 291,716 200,189 8,403 632,434 Total ending loans balance $ 88,938 45,119 299,248 200,446 8,620 642,371 The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the years ended December 31, 2018, December 31, 2017 and December 31, 2016: Provision Ending Balance for Loan Balance December 31, 2018 12/31/2017 Charge off Recovery Loss 12/31/2018 One-to-four $ 747 (6 ) 13 238 992 Home equity line of credit 189 — 9 (30 ) 168 Junior liens 5 — — (1 ) 4 Multi-family 314 — — (142 ) 172 Construction 161 — — 10 171 Land 1,223 (40 ) — (386 ) 797 Non-residential 789 (23 ) 14 513 1,293 Farmland 367 (2 ) 1 (214 ) 152 Consumer loans 184 (329 ) 80 177 112 Commercial loans 847 (307 ) 12 123 675 $ 4,826 (707 ) 129 288 4,536 Provision Ending Balance for Loan Balance December 31, 2017 12/31/2016 Charge off Recovery Loss 12/31/2017 One-to-four family mortgages $ 852 (66 ) 13 (52 ) 747 Home equity line of credit 260 — 12 (83 ) 189 Junior liens 8 — 4 (7 ) 5 Multi-family 412 — 417 (515 ) 314 Construction 277 — — (116 ) 161 Land 1,760 (2,608 ) 559 1,512 1,223 Non-residential real estate 964 — 16 (191 ) 789 Farmland 778 — 10 (421 ) 367 Consumer loans 208 (261 ) 87 150 184 Commercial loans 593 (224 ) 278 200 847 $ 6,112 (3,159 ) 1,396 477 4,826 Provision Ending Balance for Loan Balance December 31, 2016 12/31/2015 Charge off Recovery Loss 12/31/2016 One-to-four $ 1,030 — 167 (345 ) 852 Home equity line of credit 201 (30 ) 14 75 260 Junior liens 8 — 14 (14 ) 8 Multi-family 227 (421 ) — 606 412 Construction 377 — — (100 ) 277 Land 1,379 — — 381 1,760 Non-residential 1,139 — 10 (185 ) 964 Farmland 358 — — 420 778 Consumer loans 358 (422 ) 293 (21 ) 208 Commercial loans 623 (595 ) 141 424 593 $ 5,700 (1,468 ) 639 1,241 6,112 Non-accrual non-accrual non-accrual non-accrual 12/31/2018 12/31/2017 One-to-four $ 62 $ 266 Home equity lines of credit 98 402 Junior lien 4 4 Construction 152 — Land — 40 Non-residential 581 — Farmland — 111 Consumer loans 8 3 Commercial loans 525 459 $ 1,430 $ 1,285 The table below presents gross loan balances at December 31, 2018 by loan classification allocated between past due, performing and non-accrual: Currently 30 – 89 Days More than 90 days past Non-accrual Performing Past Due Accruing Loans Total One-to-four $ 174,962 614 — 62 $ 175,638 Home equity line of credit 32,525 158 — 98 32,781 Junior liens 1,033 — — 4 1,037 Multi-family 26,067 — — — 26,067 Construction 38,548 — — 152 38,700 Land 12,175 — — — 12,175 Non-residential 241,809 — — 581 242,390 Farmland 34,041 — — — 34,041 Consumer loans 8,408 26 — 8 8,442 Commercial loans 91,930 11 — 525 92,466 Total $ 661,498 809 — 1,430 663,737 The table below presents gross loan balances at December 31, 2017 by loan classification allocated between past due, performing and non-accrual: Currently 30 – 89 Days More than 90 days past Non-accrual Performing Past Due Accruing Loans Total One-to-four $ 163,030 181 88 266 $ 163,565 Home equity line of credit 35,295 — — 402 35,697 Junior liens 1,180 — — 4 1,184 Multi-family 37,445 — — — 37,445 Construction 30,246 — — — 30,246 Land 14,833 — — 40 14,873 Non-residential 224,743 209 — — 224,952 Farmland 36,740 — — 111 36,851 Consumer loans 8,614 3 — 3 8,620 Commercial loans 88,479 — — 459 88,938 Total $ 640,605 393 88 1,285 642,371 Troubled Debt Restructuring On a periodic basis, the Company may modify the terms of certain loans. In evaluating whether a restructuring constitutes a TDR, ASC 310; A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring, a.) The restructuring constitutes a concession b.) The debtor is experiencing financial difficulties ASC 310 provides the following guidance for the Company’s evaluation of whether it has granted a concession. If a debtor does not otherwise have access to funds at a market interest rate for debt with similar risk characteristics as the restructured debt, the restructured debt would be considered a below market rate, which may indicate that the Company may have granted a concession. In that circumstance, the Company should consider all aspects of the restructuring in determining whether it has granted a concession, the creditor must make a separate assessment about whether the debtor is experiencing financial difficulties to determine whether the restructuring constitutes a TDR. A temporary or permanent increase in the interest rate on a loan as a result of a restructuring does not eliminate the possibility of the restructuring from being considered a concession if the new interest rate on the loan is below the market interest rate for loans of similar risk characteristics. A restructuring that results in a delay in payment that is insignificant is not a concession. However, the Company must consider a variety of factors in assessing whether a restructuring resulting in a delay in payment is insignificant. There were no loans as of December 31, 2018, December 31, 2017 and December 31, 2016 that were been modified as TDRs and within twelve months of the modification subsequently defaulted on their modified terms. At December 31, 2018 and December 31, 2017, there were no commitments to lend additional funds to any borrower whose loan terms have been modified in a TDR. There was no allowance for loan loss allocated to loans classified as a TDR at December 31, 2018 and December 31, 2017. A summary of the activity in loans classified as TDRs for the year ended December 31, 2018 is as follows: Balance at New Loss on Transferred to Non-accrual Loan Balance Non-residential $ 3,163 322 — — (62 ) $ 3,423 Commercial loans — 109 — — (2 ) 107 Total performing TDR $ 3,163 431 — — (64 ) $ 3,530 During the year ended December 31, 2018, the Company made modifications to three loans which resulted in a TDR classification. The two new commercial loans classified as a TDR are secured by equipment and inventory. The TDR classification is the result of the borrower’s declining financial condition, prompting the Company to lengthen the amortization period of both loans. Each loans current amortization period is in excess of the Company’s lending policy. Both loans have a one year balloon and will be re-evaluated non-residential A summary of the activity in loans classified as TDRs for the year ended December 31, 2017 is as follows: Balance at New Loss on Transferred to Non-accrual Loan Balance Multi-family real estate $ 815 — — — (815 ) — Non-residential 5,646 — — — (2,483 ) 3,163 Total performing TDR $ 6,461 — — — (3,298 ) 3,163 During the year ended December 31, 2017, there were no loans newly classified as a TDR. During the year ended December 31, 2016, the Company made financial concessions to one borrower having four loans totaling $1.0 million that resulted in in a TDR classification. The loans were secured by three multi-family real estate properties and one parcel of non-residential The Company originates loans to officers and directors and their affiliates at terms substantially equivalent to those available to other borrowers. Loans to officers and directors at December 31, 2018 and December 31, 2017, were approximately $5.2 million and $5.9 million, respectively. At December 31, 2018 and December 31, 2017, there were no loans to officers and directors that were past due, classified as a TDR, impaired or placed into non-accrual The following summarizes activity of loans to officers and directors and their affiliates for the years ended December 31, 2018 and December 31, 2017: 2018 2017 Balance at beginning of period $ 5,933 4,894 New loans 931 3,043 Principal repayments (1,660 ) (2,004 ) Balance at end of period $ 5,204 5,933 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | (4) Premises and Equipment Components of premises and equipment included in the consolidated balance sheets as of December 31, 2018 and December 31, 2017 consisted of the following: December 31, 2018 2017 Land $ 6,546 6,555 Land improvements 1,141 1,153 Buildings 22,504 22,467 Furniture and equipment 6,071 6,957 36,262 37,132 Less accumulated depreciation (14,503 ) 14,432 Premises and equipment, net $ 21,759 22,700 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Deposits | (5) Deposits At December 31, 2018, the scheduled maturities of other time deposits were as follows: Years Ending December 31, 2019 $ 165,628 2020 67,500 2021 50,810 2022 9,177 2023 23,042 $ 316,157 The amount of other time deposits with a minimum denomination of $250,000 or more was approximately $104.5 million and $97.8 million at December 31, 2018, and December 31, 2017, respectively. At December 31, 2018 and December 31, 2017, directors, members of senior management and their affiliates had deposits in the Bank of approximately $1.6 million and $2.1 million, respectively. At December 31, 2018 and December 31, 2017, the Company had deposits classified as brokered deposits totaling $65.8 million and $60.1 million, respectively. Interest expense on deposits for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, is summarized as follows: 2018 2017 2016 Interest bearing checking accounts $ 1,492 $ 1,262 1,183 Money market accounts 73 71 76 Savings 133 94 95 Other time deposits 4,578 3,383 2,886 $ 6,276 4,810 4,240 The Bank maintains clearing arrangements for its demand, interest bearing checking accounts and money market accounts with BBVA Compass Bank. The Bank is required to maintain certain cash reserves in its account to cover average daily clearings. For the month ended December 31, 2018, average daily clearings were approximately $5.2 million. At December 31, 2018 and December 31, 2017, the Company had deposit accounts in overdraft status that were reclassified to loans on the accompanying consolidated balance sheet of $208,000 and $217,000, respectively. |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Advances from Federal Home Loan Bank | (6) Advances from Federal Home Loan Bank Federal Home Loan Bank advances are summarized as follows: December 31, 2018 2017 Weighted Weighted Types of Advances Amount Average Rate Amount Average Rate Fixed-rate $ 33,000 2.25 % $ 23,000 1.57 % Scheduled maturities of FHLB advances as of December 31, 2018, are as follows: Years Ending December 31, Fixed Average 2019 $ 12,000 1.97 % 2020 15,000 2.16 % 2023 6,000 3.01 % Total $ 33,000 2.25 % At January 10, 2019, the Company had a $7.0 million FHLB advance mature. The Company liquidated the advance without borrowing additional funds from the FHLB. The Bank has an approved line of credit of $30 million at the FHLB of Cincinnati, which is secured by a blanket agreement to maintain residential first mortgage loans and non-residential |
Repurchase Agreements
Repurchase Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Repurchase Agreements | (7) Repurchase Agreements: At December 31, 2018, the Company provided investment securities with a market value of $53.0 million as collateral for repurchase agreements. The maximum repurchase balance outstanding during the year ended December 31, 2018 and December 31, 2017 was $53.0 million and $46.8 million, respectively. At December 31, 2018 and December 31, 2017, the respective cost and maturities of the Company’s repurchase agreements are as follows: 2018 Balance Average Rate Maturity Various customers $ 53,011 2.15 % Overnight Total $ 53,011 2.15 % 2017 Balance Average Rate Maturity Various customers $ 38,353 1.24 % Overnight Total $ 38,353 1.24 % |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (8) Fair Value Measurement ASC Topic 820, Fair Value Measurements and Disclosures Management has developed a process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market based or based on third party market data, including interest rate yield curves, option volatilities and other third party information. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financials instruments could result in a different estimate of fair value at the reporting date. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. • Level 1 is for assets and liabilities that management has obtained quoted prices for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. • Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value of securities available for sale are determined by a matrix pricing, which is a mathematical technique what is widely used in the industry to value debt securities without relying exclusively on quoted prices for the individual securities in the Company’s portfolio but relying on the securities relationship to other benchmark quoted securities. Impaired loans are valued at the net present value of expected payments and considering the fair value of any assigned collateral. The fair value of these assets is based on information obtained from a third party bank and is reflected within level 2 of the valuation hierarchy. Assets and Liabilities Measured on a Recurring Basis The assets and liabilities measured at fair value on a recurring basis are summarized below: Total carrying Quoted Prices Significant value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet at Identical Assets Inputs Inputs Description 12/31/2018 (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Securities available for sale U.S. Agency securities $ 80,349 — 80,349 — Taxable municipals 954 — 954 — Tax-free 25,782 — 25,782 — Mortgage backed securities 63,719 — 93,719 — Total $ 170,804 — 170,804 — Total carrying Quoted Prices Significant value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet at Identical Assets Inputs Inputs Description 12/31/2017 (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Securities available for sale U.S. Agency securities $ 84,093 — 84,093 — Taxable municipals 1,283 — 1,283 — Tax-free 26,966 — 26,966 — Trust preferred securities 1,685 — — 1,685 Mortgage backed securities 70,764 — 70,764 — Total $ 184,791 — 183,106 1,685 The assets and liabilities measured at fair value on a non-recurring Total carrying Quoted Prices Significant December 31, 2018 value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet Identical Assets Inputs Inputs Description At 12/31/2018 (Level 1) (Level 2) (Level 3) Assets Foreclosed assets $ — — — — Impaired loans, net of allowance of $154 $ 261 — — 261 Total carrying Quoted Prices Significant December 31, 2017 value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet Identical Assets Inputs Inputs Description At 12/31/2017 (Level 1) (Level 2) (Level 3) Assets Foreclosed assets $ 3,369 — — 3,369 Impaired loans, net of allowance of $289 $ 473 — — 473 Total carrying Quoted Prices Significant December 31, 2016 value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet Identical Assets Inputs Inputs Description At 12/31/2016 (Level 1) (Level 2) (Level 3) Assets Foreclosed assets $ 2,397 — — 2,397 Impaired loans, net of allowance of $1,148 $ 6,123 — — 6,123 The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a recurring and non-recurring Level 3 Significant Unobservable Input Assumptions Fair Valuation Unobservable Quantitative Range Inputs December 31, 2018 Assets measured on a non-recurring Foreclosed assets $ — Discount to either actual Appraisal and sales — Impaired loans 415 Discount to appraised Appraisal 25% to 50% December 31, 2017 Assets measured on a non-recurring Foreclosed assets $ 3,369 Discount to either actual Appraisal and sales 30% to 55% Impaired loans 760 Discount to appraised Appraisal 10% to 25% Asset measured on a recurring basis Trust preferred securities 1,685 Discounted cash flow Compare to quotes One month libor plus 4% to 6% Foreclosed assets and impaired loans are valued at fair value, less cost to sell. Fair value of a foreclosed asset is determined by an appraised value of the underlying collateral to which a discount is applied. Management establishes the discount or adjustments based on recent sales and any unique features the collateral may possess. Management also considers the anticipated selling cost associated with the collateral when establishing the discounted percentage. Management may adjust the discounts based on the most recent sales of comparable collateral. Change in Level 3 fair value measurements: The table below includes a roll-forward of the balance sheet items for the years ended December 31, 2018 and 2017, (including the change in fair value) for assets and liabilities classified by the Company within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Company based the value of its trust preferred security on a quarterly review of SEC filings by the issuer to ascertain overall financial strength. Based on our analysis, the Company then reviewed the Libor swap curve to analyze the overall yield of our investment as compared to long-term swap rates. On rare occasions, the Company received an offer from a broker to purchase similar instruments and the Company analyzed those offerings as compared to our investment. The security was called in June 2018 at par. The following table provides a reconciliation for trust preferred securities owned by the Company and measured at fair value on a recurring basis using level 3 inputs during the years ended December 31, 2018 and December 31, 2017. 2018 2017 (Dollar in Thousands) Balance, January 1, $ 1,685 1,817 Accretion included in net income 4 16 Unrealized gain (loss) included in comprehensive income 294 (148 ) Call of security at book value (1,658 ) — Realized gain on call of security (325 ) — Ending balance, December 31, — 1,685 The estimated fair values of financial instruments were as follows at December 31, 2018: Carrying Estimated Quoted Prices Using Significant Financial Assets: Cash and due from banks $ 36,339 36,339 36,339 — — Interest-bearing deposits in banks 15,711 15,711 15,711 — — Securities available for sale 170,804 170,804 — 170,804 — Federal Home Loan Bank stock 4,428 4,428 — — 4,428 Loans held for sale 1,248 1,248 — 1,248 — Loans receivable 658,782 627,956 — — 627,956 Accrued interest receivable 3,503 3,503 — — 3,503 Financial Liabilities: Deposits 739,837 739,573 — 739,573 — Advances from borrowers for taxes and insurance 1,279 1,279 — 1,279 — Advances from Federal Home Loan Bank 33,000 32,830 — 32,830 — Repurchase agreements 53,011 53,011 — 53,011 — Subordinated debentures 10,310 10,310 — — 10,310 The estimated fair values of financial instruments were as follows at December 31, 2017: Carrying Estimated Quoted Prices Using Significant Financial Assets: Cash and due from banks $ 37,965 37,965 37,965 — — Interest-bearing deposits in banks 7,111 7,111 7,111 — — Securities available for sale 184,791 184,791 — 183,106 1,685 Federal Home Loan Bank stock 4,428 4,428 — — 4,428 Loans held for sale 1,539 1,539 — 1,539 — Loans receivable 637,102 615,265 — — 615,265 Accrued interest receivable 3,589 3,589 — — 3,589 Financial Liabilities: Deposits 754,009 754,510 — 754,510 — Advances from borrowers for taxes and insurance 808 808 — 808 — Advances from Federal Home Loan Bank 23,000 22,849 — 22,849 — Repurchase agreements 38,353 38,353 — 38,353 — Subordinated debentures 10,310 10,099 — — 10,099 Non-Financial Non-Financial The Company has no non-financial non-financial non-financial non-recurring non-financial non-financial Non-financial non-recurring re-measured charge-off re-measured non-interest Changes in economic conditions of model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. There were no transfers between levels for the years ended December 31, 2018, December 31, 2017 and December 31, 2016. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2018 | |
Brokers and Dealers [Abstract] | |
Subordinated Debentures | (9) Subordinated Debentures On September 25, 2003, the Company formed HopFed Capital Trust I (the “Trust”). The Trust is a statutory trust formed under the laws of the state of Delaware. In September 2003, the Trust issued variable rate capital securities with an aggregate liquidation amount of $10,000,000 ($1,000 per preferred security) to a third-party investor. The Company then issued floating rate junior subordinated debentures aggregating $10,310,000 to the Trust. The junior subordinated debentures are the sole assets of the Trust. The junior subordinated debentures and the capital securities pay interest and dividends, respectively, on a quarterly basis. The variable interest rate is the three-month LIBOR plus 3.10% adjusted quarterly. The most recent interest rate adjustment for the trust was effective January 8, 2019, which adjusted the total coupon rate to 5.89%. These junior subordinated debentures mature in 2033, at which time the capital securities must be redeemed. The junior subordinated debentures and capital securities became redeemable contemporaneously, in whole or in part, beginning October 8, 2008 at a redemption price of $1,000 per capital security. The Company has provided a full-irrevocable and unconditional guarantee on a subordinated basis of the obligations of the Trust under the capital securities in the event of the occurrence of an event of default, as defined in such guarantee. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | (10) Concentrations of Credit Risk Most of the Bank’s business activity is with customers located within the western part of the Commonwealth of Kentucky and middle and western Tennessee. One-to-four The distribution of commitments to extend credit approximates the distribution of loans outstanding. The contractual amounts of credit-related financial instruments such as commitments to extend credit and commercial letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. At December 31, 2018 and December 31, 2017, all cash and cash equivalents are deposited with BBVA Bank, the Federal Reserve Bank or the Federal Home Loan Bank of Cincinnati (FHLB). Deposits at BBVA Bank are insured to $250,000. All deposits at the FHLB are liabilities of the individual bank and were not federally insured. The FHLB is a government sponsored enterprise (GSE) and has the second highest rating available by all rating agencies. At December 31, 2018, total FHLB deposits were approximately $7.3 million and total deposits at the Federal Reserve were $15.7 million, none of which is insured by the FDIC. At December 31, 2018, total deposits at BBVA were $9.8 million, of which $500,000 is insured by the FDIC. At December 31, 2017 total FHLB deposits were approximately $5.6 million and total deposits at the Federal Reserve were $7.1 million, none of which is insured by the FDIC. At December 31, 2017, total deposits at BBVA were $26.3 million, of which $500,000 were insured by the FDIC. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | (11) Employee Benefit Plans HopFed Bancorp Long Term Incentive Plans On March 20, 2013, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 2013 Long Term Incentive Plan (the “Plan”), which was subsequently approved at the 2013 Annual Meeting of Stockholders. Under the Plan, the Compensation Committee has discretionary authority to grant up to 300,000 shares in the form of restricted stock grants and options to such employees, directors and advisory directors as the committee shall designate. The grants vest in equal installments over three or four year periods. Grants may vest immediately upon specific events, including a change of control of the Company, death or disability of award recipient, and termination of employment of the recipient by the Company without cause. Awards are recognized as an expense to the Company in accordance with the vesting schedule. Awards in which the vesting is accelerated must be recognized as an expense immediately. Awards are valued at the closing stock price on the day the award is granted. For the year ended December 31, 2018, the Compensation Committee granted 15,039 shares of restricted stock with a market value of $225,000. For the year ended December 31, 2017, the Compensation Committee granted 12,753 shares of restricted stock with a market value of $178,000. For the year ended December 31, 2016, the Compensation Committee granted 11,679 shares of restricted stock with a market value of $145,000. The Company recognized $164,000, $106,000 and $135,000 in compensation expense for the years ending December 31, 2018, December 31, 2017 and December 31, 2016, respectively. The remaining compensation expense to be recognized at December 31, 2018, is as follows: Year Ending December 31, Approximate Future 2019 $ 138 2020 116 2021 24 2022 3 Total $ 281 The Compensation Committee may make additional awards of restricted stock, thereby increasing the future expense related to this plan. The early vesting of restricted stock awards due to factors outlined in the award agreement may accelerate future compensation expenses related to the plan, including a change in control of the Company. However, the total amount of future compensation expense would not change as a result of an accelerated vesting of shares. At December 31, 2018, the Company has 214,786 restricted shares available from the Plan that may be awarded. 401(K) Plan The Company has a 401(K) retirement program that is available to all employees who meet minimum eligibility requirements. In 2015, the Company discontinued all employer 401(K) contributions on behalf of employees while allowing employees to continue contributions to the 401(K) plan. HopFed Bancorp, Inc. 2015 Employee Stock Ownership Plan On March 2, 2015, the Company implemented the HopFed Bancorp, Inc. 2015 Employee Stock Ownership Plan which covers substantially all employees who are at least 21 years old with at least one year of employment with the Company and Heritage Bank USA, Inc., the Company’s commercial bank subsidiary. The ESOP has three individuals who have been selected by the Company to serve as trustees. A directed corporate trustee has also been appointed. The ESOP will be administered by a committee (the “Committee”) currently composed of eleven employees selected by the Company or its designee. On March 2, 2015, the ESOP purchased 600,000 shares from the Corporation at a cost of $7,884,000 using the proceeds of a loan granted to the ESOP from the Company. In accordance with the ESOP Loan documents, the common stock purchased by the ESOP serves as collateral for the ESOP Loan. The ESOP Loan will be repaid principally from discretionary contributions by the Bank to the ESOP. The ESOP Loan requires annual payments and has a final maturity of December 9, 2026. The interest rate on the ESOP Loan is 3.0%. Shares purchased by the ESOP are be held in a trust account for allocation among participants as the ESOP Loan is repaid. The ESOP shares receive dividends. Dividends on unearned shares will be used to repay the ESOP Loan. For the year ended December 31, 2018, the Company recognized an expense of $633,000 related to the ESOP loan payment and the Company released 51,856 shares from the ESOP trust to individual participants of the plan as a result of the 2018 loan payment. For the year ended December 31, 2017, the Company recognized an expense of $706,000 related to the ESOP loan payment and the Company released 64,032 shares from the ESOP trust to individual participants of the plan as a result of the 2017 loan payment. For the year ended December 31, 2016, the Company recognized an expense of $553,000 related to the ESOP loan payment and released 48,067 shares from the ESOP trust to individual participants as a result of the 2016 loan payment. At December 31, 2018 and December 31, 2017, shares held by the ESOP were as follows: December 31, 2018 December 31, 2017 Earned ESOP shares 215,510 165,686 Unearned ESOP shares 382,691 434,548 Total ESOP shares 598,201 600,234 Share price at December 31, $ 13.29 $ 14.10 Fair value of unearned ESOP shares $ 5,085,963 $ 6,127,127 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) Income Taxes: The provision for income tax expense for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, consisted of the following: 2018 2017 2016 Current Federal $ 676 468 — State 95 95 95 771 563 95 Deferred Federal 296 1,585 267 State — — — 296 1,585 267 $ 1,067 2,148 362 Total income tax expense for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, differed from the amounts computed by applying the applicable statutory federal income tax rate to income before income taxes as follows: 2018 2017 2016 Expected federal income tax expense at statutory tax rate $ 1,415 1,853 1,110 Effect of nontaxable interest income (220 ) (345 ) (452 ) Effect of nontaxable bank owned life insurance income (64 ) (164 ) (117 ) Effect of Qualified Zone Academy Bond (QZAB) — — (114 ) State taxes on income, net of federal benefit 75 59 59 Other tax credits (129 ) (243 ) (128 ) Deferred tax asset revaluation — 980 — Other (23 ) — — Non-deductible 13 8 4 Total income tax expense $ 1,067 2,148 362 Income tax rate 15.8 % 39.4 % 11.1 % The components of deferred taxes as of December 31, 2018 and December 31, 2017 are summarized as follows: 2018 2017 Deferred tax assets: Allowance for loan loss $ 953 1,014 Accrued expenses 79 77 Net operating loss carry forward 160 192 Tax credit carry forward 540 651 Unrealized loss on securities available for sale 414 57 Intangible amortization — 192 Depreciation and amortization 18 — Other 147 77 2,311 2,260 Deferred tax liabilities: FHLB stock dividends (486 ) (486 ) Depreciation and amortization (10 ) 486 (496 ) Net deferred tax asset $ 1,825 1,764 At December 31, 2018, the Company has operating loss carry forwards of approximately $763,000, which begin to expire in 2034. No valuation allowance for deferred tax assets was recorded at December 31, 2018 and December 31, 2017, as management believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years and expected future taxable income. There were no unrecognized tax benefits during any of the reported periods. The Corporation files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2014. The Company recognizes interest and penalties on income taxes, if any, as a component of income tax expense. |
Foreclosed Asset
Foreclosed Asset | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Foreclosed Asset | (13) Foreclosed Asset: The Company’s foreclosed asset balances at December 31, 2018 and December 31, 2017 represent properties and personal collateral acquired by the Bank through customer loan defaults. The property is recorded at fair value less selling cost at the date acquired with any loss recognized as a charge off through the allowance for loan loss account. Additional real estate and other asset losses may be determined on individual properties at specific intervals or at the time of disposal. Additional losses are recognized as a non-interest Balance Reduction Gain Balance 12/31/2017 Foreclosure Sales in Values on Sale 12/31/2018 One-to-four $ 169 241 (164 ) (5 ) 15 $ 256 Non-residential — 142 — — — 142 Land 3,200 — — — — 3,200 Total 3,369 383 (164 ) (5 ) 15 3,598 Balance Reduction Gain (Loss) Balance 12/31/2016 Foreclosure Sales in Values on Sale 12/31/2017 One-to-four $ 163 1,069 (1,237 ) (10 ) 184 $ 169 Multi-family 1,775 — (1,761 ) — (14 ) — Non-residential 459 43 (500 ) — (2 ) — Land — 3,200 — — — 3,200 Total 2,397 4,312 (3,498 ) (10 ) 168 3,369 Balance Reduction Gain (Loss) Balance 12/31/2015 Foreclosure Sales in Values on Sale 12/31/2016 One-to-four family mortgages $ 55 203 (77 ) (8 ) (10 ) $ 163 Multi-family — 1,915 (153 ) — 13 1,775 Non-residential real estate 738 — (270 ) — (9 ) 459 Consumer — 15 (15 ) — — — Land 943 130 (1,108 ) — 35 — Total 1,736 2,263 (1,623 ) (8 ) (10 ) 2,397 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies In the ordinary course of business, the Bank has various outstanding commitments and contingent liabilities that are not reflected in the accompanying consolidated financial statements. The table below outlines the Company’s open loan commitments at December 31, 2018 and December 31, 2017: December 31, 2018 2017 Commitments to extend credit 50,158 54,458 Standby letters of credit 1,046 143 Unused commercial lines of credit 45,912 62,910 Unused home equity lines of credit 31,733 32,701 Unused personal lines of credit 12,109 17,048 The Company and the Bank have agreed to enter into employment agreements with certain officers, which provide certain benefits in the event of their termination following a change in control of the Company or the Bank. The employment agreements provide for an initial term of three years. On each anniversary of the commencement date of the employment agreements, the term of each agreement may be extended for an additional year at the discretion of the Board. In the event of a change in control of the Company or the Bank, as defined in the agreement, the officers shall be paid an amount equal to 2.9 times the officer’s base salary as defined in the employment agreement. The Company and the Bank have entered into commitments to rent facilities, purchase services and lease operating equipment that are non-cancelable. Years Ending December 31, 2019 $ 308 2020 260 2021 224 2022 173 2023 22 Total $ 987 The Company incurred rental expenses of approximately $121,000, $130,000 and $127,000 for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, respectively. In the normal course of business, the Bank and Corporation have entered into operating contracts necessary to conduct the Company’s daily business. The most significant operating contract is for the Bank’s data processing services, ACH item processing and ATM / Debit card processing which is variable based on the number of accounts and usage but has an expected annual cost of approximately $3.0 million. The entire data processing contract expires in September of 2019. The Company is partially self-insured for medical benefits provided to employees. Heritage Bank is named as the plan administrator for this plan and has retained Anthem Blue Cross Blue Shield (“Anthem”) to process claims and handle other duties of the plan. Anthem does not assume any liabilities as a third-party administrator. The Bank purchased two stop-loss insurance policies to limit total medical claims from Anthem. The first specific stop-loss policy limits the Company’s annual cost per covered individual in 2018, 2017 and 2016 of $100,000, $100,000 and $90,000, respectively. The Company has purchased a second stop-loss policy that limits the aggregate claims for the Company in 2018, 2017 and 2016 at $1.8 million, $1.7 million and $1.8 million, respectively, based upon the Company’s enrollment during those years. The Company has established a liability for outstanding claims as well as incurred but unreported claims. While management uses what it believes are pertinent factors in estimating the plan liability, the actual liability is subject to change based upon unexpected claims experience and fluctuations in enrollment during the plan year. At December 31, 2018 and December 31, 2017, the Company recognized a liability for self-insured medical expenses of approximately $210,000 and $172,000, respectively . The Company is a party to financial instruments with off-balance-sheet The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making these commitments and conditional obligations as it does for on-balance-sheet Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. Most guarantees extend from one to two years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank, in the normal course of business, originates fixed rate mortgages that are sold to Freddie Mac. Upon tentative underwriting approval by Freddie Mac, the Bank issues a best effort commitment to originate a fixed rate first mortgage under specific terms and conditions that the Bank intends to sell to Freddie Mac. The Bank no longer assumes a firm commitment to originate fixed rate loans, thus eliminating the risk of having to deliver loans they did not close or pay commitment fees to make Freddie Mac whole. The Company is subject to various claims and legal actions that have arisen in the course of conducting business. The Company records these as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not expect the ultimate disposition of these matters to have a material adverse impact of the Company’s consolidated financial statements. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | (15) Regulatory Matters The Company is a commercial bank holding company and, as such, is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve System. The Company’s wholly owned bank subsidiary is a state chartered commercial bank supervised by the KDFI and the FDIC. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under regulatory capital regulations and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of tangible and core capital (as defined in the regulations) to adjusted total assets (as defined), and of total capital (as defined) and Tier 1 to risk weighted assets (as defined). The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2018 and December 31, 2017. Management believes, as of December 31, 2018 and December 31, 2017, that the Bank meets all capital adequacy requirements to which it is subject. The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of December 31, 2018 and December 31, 2017 are presented below: To be Well Capitalized for Minimum Capital Prompt Corrective Actual Required Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018 Tier 1 leverage capital to adjusted total assets Company $ 100,520 11.0 % $ 36,417 4.0 % $ 45,521 5.0 % Bank $ 99,478 10.9 % $ 36,361 4.0 % $ 45,451 5.0 % Total capital to risk weighted assets Company $ 105,055 16.2 % $ 52.049 8.0 % $ 65,061 10.0 % Bank $ 104,014 16.0 % $ 51,937 8.0 % $ 64,922 10.0 % Tier 1 capital to risk weighted assets Company $ 100,520 15.5 % $ 39,037 6.0 % $ 52,049 8.0 % Bank $ 99,478 15.3 % $ 38,953 6.0 % $ 51,937 8.0 % Common equity tier 1capital to risk weighted assets Company $ 100,520 15.5 % $ 29,277 4.5 % n/a n/a Bank $ 99,478 15.3 % $ 29,215 4.5 % $ 42,199 6.5 % As of December 31, 2017 Tier 1 leverage capital to adjusted total assets Company $ 95,709 10.6 % $ 36,137 4.0 % $ 45,171 5.0 % Bank $ 95,123 10.5 % $ 36,090 4.0 % $ 45,112 5.0 % Total capital to risk weighted assets Company $ 100,535 16.0 % $ 50,352 8.0 % $ 62,940 10.0 % Bank $ 99,949 15.9 % $ 50,314 8.0 % $ 62,892 10.0 % Tier 1 capital to risk weighted assets Company $ 95,709 15.2 % $ 37,764 6.0 % $ 50,352 8.0 % Bank $ 95,123 15.1 % $ 37,735 6.0 % $ 50,314 8.0 % Common equity tier 1capital to risk weighted assets Company $ 95,709 15.2 % $ 28,323 4.5 % n/a n/a Bank $ 95,123 15.1 % $ 28,301 4.5 % $ 40,880 6.5 % Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial status. At December 31, 2018 and 2017, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. Management is not aware of any conditions or events that have changed the Bank’s status as a well-capitalized bank. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | (16) Stockholders’ Equity The Company’s sources of income and funds for dividends to its stockholders are earnings on its investments and dividends from the Bank. The Bank’s primary regulator, the KDFI, has regulations that impose certain restrictions on payment of dividends to the Corporation. Current regulations of the KDFI allow the Bank (based upon its current capital level and supervisory status assigned by the KDFI) to pay a dividend as long as the Bank subsidiary maintains an appropriate Tier 1 Capital ratio. Furthermore, for the Bank to pay a dividend to the Corporation without regulatory approval, the dividend is limited to the total amount of the Bank’s current year net income plus the Bank’s net income of the prior two years less any previous dividends paid by the Bank to the Corporation during that time. At December 31, 2018, the Company holds a total of 1,341,980 shares of treasury stock at an average price of $12.45 per share. At December 31, 2018, the Company may purchase 296,380 shares of treasury stock under a new stock repurchase plan announced on November 11, 2017 that expires December 31, 2019. The Company conducts repurchases through open market transactions or in privately negotiated transactions that may be made from time to time depending on market conditions and other factors. The Company has paid all interest payments due on HopFed Capital Trust I. If interest payments to HopFed Capital Trust I are not made in a timely manner, the Company is prohibited from making cash dividend payments to its common shareholders. In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to Heritage Bank USA, Inc. and HopFed Bancorp, Inc. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” (Basel III) and changes required by the Dodd-Frank Act. Under these rules, the leverage capital and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing the Basel III regulatory capital reforms became effective on January 1, 2015, and include new minimum risk-based capital and leverage ratios. Moreover, these rules refine the definition of what constitutes “capital” for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. The new minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: • a new common equity Tier 1 capital ratio of 4.5%; • a Tier 1 risk-based capital ratio of 6% (increased from 4%); • a total risk-based capital ratio of 8% (unchanged from current rules); and • a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a “capital conservation buffer” of 2.5% (to be phased by 2019) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: • a common equity Tier 1 risk-based capital ratio of 7.0%; • a Tier 1 risk-based capital ratio of 8.5%; and • a total risk-based capital ratio of 10.5%. At December 31, 2018, the Bank and Corporation met all fully phased capital requirements of Basel III, including the capital conservation buffer of 2.5% to be fully phased in by January 1, 2019. The Capital conservation buffer for 2017 is 1.25% and 1.875% for 2018. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (17) Earnings Per Share Earnings per share of common stock are based on the weighted average number of basic shares and dilutive shares outstanding during the year. Common stock warrants outstanding are not included in the dilutive earnings per share computations because they would be anti-dilutive. The following is a reconciliation of weighted average common shares for the basic and dilutive earnings per share computations: For the years ended December 31, 2018 2017 2016 Basic earnings per share: Weighted average common shares 6,641,796 6,695,721 6,757,345 Less: Average unallocated ESOP shares (408,620 ) (474,089 ) (523,485 ) Weighted average common shares 6,233,176 6,221,632 6,233,860 Dilutive effect of stock options — — — Weighted average common shares - diluted 6,233,176 6,221,632 6,233,860 |
Condensed Parent Company Only F
Condensed Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Parent Company Only Financial Statements | (18) Condensed Parent Company Only Financial Statements The following condensed balance sheets as of December 31, 2018 and December 31, 2017 and condensed statements of income and cash flows for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, of the parent company only should be read in conjunction with the consolidated financial statements and the notes thereto. Condensed Balance Sheets: 2018 2017 Assets: Cash $ 1,086 862 Investment in subsidiary 99,745 96,826 Prepaid expenses and other assets 871 1,109 Total assets 101,702 98,797 Liabilities: Dividend payable - common 463 353 Interest payable 141 112 Other liabilities 2 610 Subordinated debentures 10,310 10,310 Total liabilities 10,916 11,385 Equity: Preferred stock — — Common stock 80 80 Additional paid-capital 59,105 58,825 Retained earnings 55,134 51,162 Treasury stock - common stock (16,706 ) (16,655 ) Unearned ESOP shares (5,268 ) (5,901 ) Accumulated other comprehensive loss (1,559 ) (99 ) Total equity 90,786 87,412 Total liabilities and equity $ 101,702 98,797 Condensed Statements of Income: 2018 2017 2016 Interest and dividend income: Dividend income from subsidiary Bank $ 2,500 2,500 2,000 Total interest and dividend income 2,500 2,500 2,000 Interest expense 538 436 388 Non-interest expenses 964 1,538 391 Total expenses 1,502 1,974 779 Income before income taxes and equity in undistributed earnings of subsidiary 998 526 1,221 Income tax benefits (291 ) (545 ) (319 ) Income before equity in undistributed earnings of subsidiary 1,289 1,071 1,540 Equity in earnings of subsidiary 4,380 2,230 1,364 Income available to common shareholders $ 5,669 3,301 2,904 Condensed Statements of Cash Flows: 2018 2017 2016 Cash flows from operating activities Net income $ 5,669 $ 3,301 2,904 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (4,380 ) (2,230 ) (1,364 ) Amortization of restricted stock 164 106 135 Increase (decrease) in: Current income taxes payable 187 330 (49 ) Accrued expenses (301 ) 106 (392 ) Net cash provided by operating activities 1,339 1,613 1,234 Cash flows from financing activities: Purchase of treasury stock (51 ) (1,308 ) (1,876 ) Proceeds on ESOP loan 633 647 632 Dividends paid on common stock (1,697 ) (1,174 ) (993 ) Net cash used in financing activities (1,115 ) (1,835 ) (2,237 ) Net increase (decrease) in cash 224 (222 ) (1,003 ) Cash and due from banks at beginning of year 862 1,084 2,087 Cash and due from banks at end of year $ 1,086 $ 862 1,084 |
Investments in Affiliated Compa
Investments in Affiliated Companies | 12 Months Ended |
Dec. 31, 2018 | |
Investments in and Advances to Affiliates [Abstract] | |
Investments in Affiliated Companies | (19) Investments in Affiliated Companies (Unaudited): Investments in affiliated companies accounted for under the equity method consist of 100% of the common stock of HopFed Capital Trust I (the Trust), a wholly owned statutory business trust. The Trust was formed on September 25, 2003. Summary financial information for the HopFed Capital Trust 1 is as follows: Summary Balance Sheets December 31, December 31, Asset – investment in subordinated debentures issued by HopFed Bancorp, Inc. $ 10,310 10,310 Liabilities Stockholders’ equity: Trust preferred securities 10,000 10,000 Common stock (100% owned by HopFed Bancorp, Inc.) 310 310 Total stockholder’s equity 10,310 10,310 Total liabilities and stockholder’s equity $ 10,310 10,310 Summary Statements of Income Year Ended December 31, 2018 2017 Income – interest income from subordinated debentures issued by HopFed Bancorp, Inc. $ 555 449 Net income $ 555 449 Summary Statements of Stockholder’s Equity Trust Common Retained Total Stockholder’s Beginning balances, January 1, 2018 $ 10,000 310 — 10,310 Retained earnings: Net income — — 555 555 Dividends: Trust preferred securities — — (538 ) (538 ) Common dividends paid to HopFed Bancorp, Inc. — — (17 ) (17 ) Total retained earnings — — — — Ending balances, December 31, 2018 $ 10,000 310 — 10,310 |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | (20) Quarterly Results of Operations Summarized unaudited quarterly operating results for the year ended December 31, 2018: First Second Third Fourth Quarter Quarter Quarter Quarter December 31, 2018: Interest and dividend income $ 8,798 9,115 9,344 9,474 Interest expense 1,612 1,835 2,231 2,496 Net interest income 7,186 7.280 7,113 6,978 Provision for loan losses 68 62 74 84 Net interest income after provision for loan losses 7,118 7,218 7,039 6,894 Noninterest income 1,744 2,364 1,893 1,816 Noninterest expense 7,540 7,574 7,512 6,724 Income before income taxes 1,322 2,008 1,420 1,986 Income taxes 196 323 180 368 Net income $ 1,126 1,685 1,240 1,618 Basic earnings per share $ 0.18 0.28 0.20 0.26 Diluted earnings per share $ 0.18 0.28 0.20 0.26 Weighted average shares outstanding: Basic 6,188,413 6,142,680 6,211,636 6,266,585 Diluted 6,188,413 6,142,680 6,211,636 6,266,585 Summarized unaudited quarterly operating results for the year ended December 31, 2017: First Second Third Fourth Quarter Quarter Quarter Quarter December 31, 2017: Interest and dividend income $ 8,160 8,419 8,635 8,541 Interest expense 1,406 1,454 1,537 1,566 Net interest income 6,754 6,965 7,098 6,975 Provision for loan losses 291 59 71 56 Net interest income after provision for loan losses 6,463 6,906 7,027 6,919 Noninterest income 2,296 1,836 2,030 1,868 Noninterest expense 7,689 7,233 7,168 7,806 Income before income taxes 1,070 1,509 1,889 981 Income taxes 135 368 486 1,159 Net income (loss) $ 935 1,141 1,403 (178 ) Basic earnings (loss) per share $ 0.15 0.18 0.22 (0.03 ) Diluted earnings (loss) per share $ 0.15 0.18 0.22 (0.03 ) Weighted average shares outstanding: Basic 6,218,706 6,228,994 6,236,075 6,202,635 Diluted 6,218,706 6,228,994 6,236,075 6,202,635 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Income | (21) Comprehensive Income FASB ASC 220, Comprehensive Income non-owner Pre-Tax Tax Benefit Net of Tax Amount (Expense) Amount December 31, 2018: Unrealized holding gains (losses) on: Available for sale securities ($ 1,589 ) 333 (1,256 ) Available for sale securities – OTTI 294 (61 ) 233 Reclassification adjustments for gains on: Available for sale securities (553 ) 116 (437 ) ($ 1,848 ) 388 (1,460 ) December 31, 2017: Unrealized holding gains (losses) on: Available for sale securities ($ 585 ) 198 (387 ) Available for sale securities – OTTI (224 ) 76 (148 ) Reclassification adjustments for gains on: Available for sale securities (169 ) 57 (112 ) ($ 978 ) 331 (647 ) December 31, 2016: Unrealized holding gains (losses) on: Available for sale securities ($ 2,048 ) 697 (1,351 ) Available for sale securities – OTTI (258 ) 88 (170 ) Reclassification adjustments for gains on: Available for sale securities (612 ) 207 (405 ) ($ 2,918 ) 992 (1,926 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Customer Concentration | Nature of Operations and Customer Concentration HopFed Bancorp, Inc. (the “Corporation”) is a bank holding company which incorporated in the state of Delaware and headquartered in Hopkinsville, Kentucky. The Corporation’s principal business activities are conducted through its wholly-owned subsidiary, Heritage Bank USA, Inc. (the “Bank”), a Kentucky state chartered commercial bank engaged in the business of accepting deposits and providing mortgage, consumer, construction and commercial loans to the general public through its retail banking offices. The Bank’s business activities are primarily limited to western Kentucky and middle and western Tennessee. Deposits at the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank is a Kentucky commercial chartered bank and is supervised by the Kentucky Department of Financial Institutions (“KDFI”) and the FDIC. Supervision of the Corporation is conducted by the Federal Reserve Bank of Saint Louis (“FED”). The Bank owns JBMM, LLC, a wholly owned limited liability company which owns and manages the Bank’s foreclosed assets. The Bank owns Heritage USA Title, LLC, which sells title insurance to the Bank’s real estate loan customers. The Bank owns Fort Webb LP, LLC, which owns a limited partnership interest in Fort Webb Elderly Housing LP, LLC, a low income senior citizen housing facility in Bowling Green, Kentucky. The facility offers apartments for rent for those senior citizens who qualify and is managed by the Bowling Green, Kentucky Housing Authority. A substantial portion of the Bank’s loans are secured by real estate in the western Kentucky and middle and west Tennessee markets. Accordingly, the ultimate ability to collect on a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate is susceptible to changes in local market conditions. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Corporation, the Bank and its subsidiaries (collectively the “Company”) for all periods. Significant inter-company balances and transactions have been eliminated in consolidation. |
Accounting | Accounting The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and conform to general practices in the banking industry. U.S. GAAP is generally defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), as amended by Accounting Standards Updates (“ASUs”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) are also sources of authoritative U.S. GAAP for SEC registrants. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE) under U.S. GAAP. Voting interest entities in which the total equity investment is a risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decision about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The subsidiaries, HopFed Capital Trust I and Fort Webb LP, LLC are VIEs for which the Company is not the primary beneficiary. Accordingly, these accounts are not included in the Company’s consolidated financial statements. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for potential impact and disclosure through the issue date of these Consolidated Financial Statements. On January 7, 2019, First Financial Corporation (NASDAQ: THFF) (“First Financial”) and the Company jointly announced today the execution of a definitive merger agreement under which the Company will merge into First Financial in a cash and stock transaction. Upon completion of the merger, the Bank will merge into First Financial Bank, N.A. (“First Financial Bank”), a wholly owned subsidiary of First Financial. Under the terms of the merger agreement, which was unanimously approved by the boards of both companies, stockholders of the Company may elect to receive either (or a combination of) 0.444 shares of First Financial common stock or $21.00 in cash for each share of HFBC common stock owned, subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of 50% of HFBC shares being exchanged for First Financial common stock and 50% for cash. Based upon the $43.01 closing price of the common stock of First Financial on January 4, 2019 and assuming that a shareholder received 50% stock and 50% cash, the purchase price would be worth $20.05 per share, with an aggregate transaction value of approximately $128.3 million. The merger is subject to regulatory approval and an affirmative vote of shareholders and is expected to close in the second quater of 2019. |
Estimates | Estimates In preparing the consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and revenues and expenses for each year. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant collateral. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, amounts due on demand from commercial banks, interest-bearing deposits in other financial institutions and federal funds sold with maturities of three months or less. The Company is required to maintain reserve funds in either cash on hand or on deposit with the Federal Reserve Bank. At December 31, 2018, the Company’s reserve requirement was met with available cash on hand. |
Securities | Securities The Company reports debt, readily-marketable equity, mortgage-backed and mortgage related securities in one of the following categories: (i) “trading” (held for current resale) which are to be reported at fair value, with unrealized gains and losses included in earnings; and (ii) “available for sale” (all other debt, equity, mortgage-backed and mortgage related securities) which are to be reported at fair value, with unrealized gains and losses reported net of tax as a separate component of stockholders’ equity. The Company does not utilize a held to maturity classification for investment securities. At the time of new security purchases, a determination is made as to the appropriate classification. Realized and unrealized gains and losses on trading securities are included in net income. Unrealized gains and losses on securities available for sale are recognized as direct increases or decreases in stockholders’ equity, net of any tax effect. Cost of securities sold is recognized using the specific identification method. Interest income on securities is recognized as earned. The Company purchases many agency bonds at either a premium or discount to its par value. Premiums and discounts on agency bonds are amortized using the net interest method. For callable bonds purchased at a premium, the premium is amortized to the first call date. If the bond is not called on that date, the premium is fully amortized and the Company recognizes an increase in the net yield of the investment. For agency bonds purchased at a discount, the discount is accreted to the final maturity date. For callable bonds purchased at discount and called before maturity, the Company recognizes a gain on the sale of securities. The Company amortizes premiums and accretes discounts on mortgage back securities and collateralized mortgage obligations based on the securities three-month average prepayment speed. Gains and losses on sales are recorded on the trade date. |
Other Than Temporary Impairment | Other Than Temporary Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic conditions warrant such evaluation. A decline in the fair value of any available-for-sale is other-than-temporary, management more-likely-than-not more-likely-than-not |
Other Securities | Other Securities Other securities which are not actively traded and may be restricted, such as Federal Home Loan Bank (FHLB) stock are recognized at cost. FHLB stock is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans Receivable and Allowance for Loan Losses | Loans Receivable and Allowance for Loan Losses Loans receivable are stated at unpaid principal balances, less the allowance for loan losses and deferred loan cost, net of unearned income, ASC 310-20, Nonrefundable Fees and Other Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, non-accrual, The Company provides an allowance for loan losses and includes a provision for loan losses determined by management. Subsequent recoveries, if any, are credited to the allowance. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. The loss experience is determined by portfolio segment and is based on the actual losses experienced by the Company over the most recent three years. Loans are considered to be impaired when, in management’s judgment, principal or interest is not collectible according to the contractual terms of the loan agreement. When conducting loan evaluations, management considers various factors such as historical loan performance, the financial condition of the borrower and adequacy of collateral to determine if a loan is impaired. Impaired loans and loans classified as Troubled Debt Restructurings (“TDRs”) may be classified as either substandard or doubtful and reserved for based on individual loans risk for loss. Loans not considered impaired may be classified as either special mention or watch and may have an allowance established for it. Typically, unimpaired classified loans exhibit some form of weakness in either industry trends, collateral, or cash flow that result in a default risk greater than that of the Company’s typical loan. All classified amounts include all unpaid interest and fees as well as the principal balance outstanding. The measurement of impaired loans may be based on the present value of future cash flows discounted at the historical effective interest rate. However, the majority of the Company’s problem loans become collateral dependent at the time they are judged to be impaired. Therefore, the measurement of impairment requires the Company to obtain a current appraisal to determine the fair value of the collateral. The appraised value is then discounted to an estimate of the Company’s net realizable value. When the measured amount of an impaired loan is less than the recorded investment in the loan, the impairment is recorded as a charge to income and a valuation allowance, which is included as a component of the allowance for loan losses. For loans not individually evaluated, management considers the Company’s recent charge off history, the Company’s current past due and non-accrual If an asset or portion thereof is classified as a loss, we establish a specific reserve for such amount. If the Company determines that a loan relationship is collateral dependent, the Company will charge off the portion of that loan that is deemed to be impaired against the allowance for loan loss account. The Company defines collateral dependent as any loan in that the customer will be unable to reduce the principal balance of the loan without the complete or partial sale of the collateral. The Company will charge off a portion or all of a loan balance once it deems the collection of any remaining interest and principal due to be unlikely. |
Loans held for sale | Loans Held For Sale Mortgage loans originated and intended for sale are carried at the lower of cost or estimated fair value as determined on a loan-by-loan |
Fixed Rate Mortgage Originations | Fixed Rate Mortgage Originations The Company operates a mortgage division that originates mortgage loans in the name of assorted investors, including Federal Home Loan Mortgage Corporation (Freddie Mac). Originations for are sold through the Bank. On a limited basis, loans sold to Freddie Mac may result in the Bank retaining loan servicing rights. In recent years, customers have chosen lower origination rates over having their loan locally serviced; thereby limiting the amount of new loans sold with servicing retained. At December 31, 2018, the Bank maintained a servicing portfolio of one to four family real estate loans of approximately $14.3 million. |
Foreclosed Assets | Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are initially recorded at fair value less selling cost when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Costs of improving the assets are capitalized if the Company determines that it is likely to recover the improvement cost. Other improvement costs and all costs relating to holding the property are expensed. Management conducts periodic valuations and any adjustments to value are recognized in the current period’s operations. |
Repurchase Agreements | Repurchase Agreements The Company sells investments from its portfolio to business and municipal customers with a written agreement to repurchase those investments on the next business day. The repurchase product gives business customers the opportunity to earn income on liquid cash reserves. These funds are overnight borrowings of the Company secured by Company assets and are not FDIC insured. |
Treasury Stock | Treasury Stock The Company may purchase its own common stock either in open market transactions or privately negotiated transactions. The value of the Company’s common stock held in treasury is listed at cost. |
Unearned ESOP Shares | Unearned ESOP Shares The Company offers an Employee Stock Ownership Plan (“ESOP”) to the employees of the Company. Compensation expense under the ESOP is equal to the fair value of common shares released or committed to be released to participants in the ESOP in each respective period. The unearned portion of common stock of the Company held in the ESOP Trust is recorded on the balance sheet at cost as a reduction of shareholder’s equity. Common stock is released from the ESOP Trust to the participants as the Bank makes payments on the loan to the Corporation on behalf of the ESOP Trust. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, net of tax. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets have been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Revenue Recognition | Revenue Recognition Mortgage loans held for sale are generally delivered to secondary market investors under best efforts sales commitments entered into prior to the closing of the individual loan. Loan sales and related gains or losses are recognized at settlement. Loan fees earned for the servicing of secondary market loans are recognized as earned. Interest income on loans receivable is reported on the interest method. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired, placed in non-accrual non-accrual |
Income Taxes | Income Taxes Income taxes are accounted for through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates are recognized in income in the period that includes the enactment date. Accordingly, deferred tax assets that will be realized at December 31, 2017 were revalued using the tax rates enacted as a result of the 2017 Tax Cuts and Jobs Act resulting in a revaluation charge of $980,000, which is included in income tax expense for the year ended December 31, 2017. The Company files its federal and Kentucky income tax returns as well as its Kentucky and Tennessee franchise and excise tax returns on a consolidated basis with its subsidiaries. All taxes are accrued on a separate entity basis. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being recognized on examination. For tax positions not meeting the “more likely than not test”, no benefit is recorded. |
Operating Segments | Operating Segments The Company’s continuing operations include one primary segment, retail banking. The retail banking segment involves the origination of commercial, residential and consumer loans as well as the collections of deposits in eighteen branch offices. |
Premises and Equipment | Premises and Equipment Land, land improvements, buildings, and furniture and equipment are carried at cost, less accumulated depreciation and amortization. Buildings and land improvements are depreciated generally by the straight-line method, and furniture and equipment are depreciated under various methods over the estimated useful lives of the assets. The Company capitalizes interest expense on construction in process at a rate equal to the Company’s cost of funds. The estimated useful lives used to compute depreciation are as follows: Land improvements 5-15 years Buildings 40 years Furniture and equipment 5-15 |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance policies (BOLI) are recorded at the cash surrender value or the amount to be realized upon current redemption. The realization of the redemption value is evaluated for each insuring entity that holds insurance contracts annually by management. |
Advertising | Advertising The Company expenses the cost of advertising as incurred. |
Financial Instruments | Financial Instruments The Company has entered into off-balance-sheet |
Fair Values of Financial Instruments | Fair Values of Financial Instruments (ASC 825) requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. Accordingly, such estimates involve uncertainties and matters of judgment and therefore cannot be determined with precision. ASC 825 excludes certain financial instruments and all non-financial The following are the more significant methods and assumptions used by the Company in estimating the fair value of financial instruments: Available-for-sale Fair values for investment securities available-for-sale Loans held for sale Mortgage loans originated and intended to be sold are carried at the lower of cost or estimated fair value as determined on a loan by loan basis. Gains or losses are recognized at the time of ownership transfer. Net unrealized losses, if any, are recognized through a valuation allowance and charged to income. |
Dividend Restrictions | Dividend Restrictions The Company is not permitted to pay a dividend to common shareholders if it fails to make a quarterly interest payment to the holders of the Company’s subordinated debentures. Furthermore, the Bank may be restricted in the payment of dividends to the Corporation by the KDFI or FDIC. Any restrictions imposed by either regulator would effectively limit the Company’s ability to pay a dividend to its common stockholders as discussed in Note 16. At December 31, 2018, there were no such restrictions. At December 31, 2018 and December 31, 2017, the Corporation had cash balances on hand to pay common dividends and repurchase treasury stock as outlined in Note 18 of approximately $1.1 million and $860,000, respectively. |
Earnings Per Share | Earnings Per Share Earnings per share (EPS) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus dilutive common stock equivalents (CSE). CSE consists of dilutive stock options granted through the Company’s stock option plan. Restricted stock awards represent future compensation expense and are dilutive. Anti-dilutive common stock equivalents are not included for the purposes of this calculation. At December 31, 2018 and December 31, 2017, the Company has no warrants or stock options outstanding. |
Stock Compensation | Stock Compensation Compensation cost is recognized for restricted stock awards issued to employees based on the fair value of these awards at the date of grant. The cost is recognized over the required service period, generally defined as the vesting period. |
Effect of New Accounting Pronouncements | Effect of New Accounting Pronouncements In May 2014, the FASB issued new guidance related to “ Revenue from Contracts with Customers Revenue Recognition • Service charges on deposits, investment services and interchange fees — • Title Insurance sales commissions • Gains on sales of other real estate — 2014-09 610-20, ASU 2016-01, 825-10): 2016-01, available-for-sale. 2016-01 2016-01 ASU 2016-02 Leases (Topic 842) 2016-02 right-of-use 2016-02 2016-02 ASU 2016-09, 2016-09 paid-in paid-in paid-in ASU 2016-09 2016-09 2016-09 2016-09 On June 16, 2016, the FASB released its finalized ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” available-for-sale. 2016-13 2016-13 2016-13. ASU 2016-15 “Statement of Cash Flows” (Topic 230) 2016-15 2016-15 In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, 2017-01”) 2017-01 ASU 2017-08, “Receivables – Nonrefundable Fees and Other Cost” (Topic 310) 2017-08 non-contingent 2017-08 ASU 2017-09 “Compensation – Stock Compensation” (Topic 718) – 2017-09, • The fair value of the modified award is the same as the fair value of the original award immediately before modification, • The vesting conditions of the modified award is the same as the vesting conditions value of the original award immediately before modification, and • The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before modification. ASU 2017-09 ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. 2018-02 ASU 2018-02 2018-02 ASU 2018-02 2018-02 2018-02 2018-02 ASU 2018-16, ASU 2018-16 In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” No. 2018-13 No. 2018-13 Other accounting standards that have been issued or proposed by the FASB or other standards bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Reclassifications | Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. Reclassifications had no effect on prior year’s net income or shareholders’ equity. |
Fair Value Measurement | ASC Topic 820, Fair Value Measurements and Disclosures Management has developed a process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market based or based on third party market data, including interest rate yield curves, option volatilities and other third party information. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financials instruments could result in a different estimate of fair value at the reporting date. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. • Level 1 is for assets and liabilities that management has obtained quoted prices for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. • Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value of securities available for sale are determined by a matrix pricing, which is a mathematical technique what is widely used in the industry to value debt securities without relying exclusively on quoted prices for the individual securities in the Company’s portfolio but relying on the securities relationship to other benchmark quoted securities. Impaired loans are valued at the net present value of expected payments and considering the fair value of any assigned collateral. The fair value of these assets is based on information obtained from a third party bank and is reflected within level 2 of the valuation hierarchy. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Useful Life of Property, Plant, and Equipment | The estimated useful lives used to compute depreciation are as follows: Land improvements 5-15 years Buildings 40 years Furniture and equipment 5-15 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Amortized Cost of Securities and their Estimated Fair Values | The carrying amount of securities and their estimated fair values follow: December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Agency securities $ 81,158 345 (1,154 ) 80,349 Tax free municipal bonds 25,753 181 (152 ) 25,782 Taxable municipal bonds 957 2 (5 ) 954 Mortgage-backed securities 64,909 56 (1,246 ) 63,719 $ 172,777 584 (2,557 ) 170,804 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Agency securities $ 84,210 536 (653 ) 84,093 Tax free municipal bonds 26,412 637 (83 ) 26,966 Taxable municipal bonds 1,279 5 (1 ) 1,283 Trust preferred securities 1,650 35 — 1,685 Mortgage-backed securities 71,389 201 (826 ) 70,764 $ 184,940 1,414 (1,563 ) 184,791 |
Maturities of Debt Securities Available for Sale | The scheduled maturities of debt securities available for sale at December 31, 2018 are as follows: Estimated December 31, 2018 Amortized Fair Due within one year $ 2,991 2,996 Due in one to five years 28,101 27,736 Due in five to ten years 14,146 13,944 Due after ten years 14,890 14,971 Amortizing agency bonds 47,740 47,438 Mortgage-backed securities 64,909 63,719 $ 172,777 170,804 |
Estimated Fair Value and Unrealized Loss Amounts of Impaired Investments | The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2018 and December 31, 2017 are as follows: Less than 12 months 12 months or longer Total December 31, 2018 Estimated Unrealized Estimated Unrealized Estimated Unrealized Available for sale U.S. Agency securities $ — — 54,441 (1,154 ) 54,441 (1,154 ) Tax free municipals 1,465 (8 ) 5,619 (144 ) 7,084 (152 ) Taxable municipals — — 507 (5 ) 507 (5 ) Mortgage-backed securities — — 54,548 (1,246 ) 54,548 (1,246 ) $ 1,465 (8 ) 115,115 (2,549 ) 116,580 (2,557 ) Less than 12 months 12 months or longer Total December 31, 2017 Estimated Unrealized Estimated Unrealized Estimated Unrealized Available for sale U.S. Agency securities $ 41,501 (431 ) 9,846 (222 ) 51,347 (653 ) Tax free municipals 4,860 (51 ) 913 (32 ) 5,773 (83 ) Taxable municipals 521 (1 ) — — 521 (1 ) Mortgage-backed securities 40,441 (289 ) 21,566 (537 ) 62,007 (826 ) $ 87,323 (772 ) 32,325 (791 ) 119,648 (1,563 ) |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Composition of Loan Portfolio By Type of Loan | Set forth below is selected data relating to the composition of the loan portfolio by type of loan at December 31, 2018 and December 31, 2017: December 31, 2018 December 31, 2017 Real estate loans: One-to-four family (closed end) first mortgages $ 175,638 $ 163,565 Home equity lines of credit 32,781 35,697 Junior liens (closed end) 1,037 1,184 Multi-family 26,067 37,445 Construction 38,700 30,246 Land 12,175 14,873 Non-residential real estate 242,390 224,952 Farmland 34,041 36,851 Total mortgage loans 562,829 544,813 Consumer loans 8,442 8,620 Commercial loans 92,466 88,938 Total other loans 100,908 97,558 Total loans, gross 663,737 642,371 Deferred loan cost, net of fees (419 ) (443 ) Less allowance for loan losses (4,536 ) (4,826 ) Total loans $ 658,782 $ 637,102 |
Loans by Classification Type and Credit Risk Indicator | Loans by classification type and credit risk indicator at December 31, 2018 were as follows: Special Pass Mention Substandard Doubtful Total One-to-four $ 174,973 — 665 — 175,638 Home equity line of credit 32,684 — 97 — 32,781 Junior liens 1,033 — 4 — 1,037 Multi-family 26,067 — — — 26,067 Construction 38,548 152 — — 38,700 Land 12,175 — — — 12,175 Non-residential 232,289 596 9,505 — 242,390 Farmland 33,808 233 — — 34,041 Consumer loans 8,233 — 209 — 8,442 Commercial loans 85,433 3,190 3,843 — 92,466 Total $ 645,243 4,171 14,323 — 663,737 Loans by classification type and credit risk indicator at December 31, 2017 were as follows: Special Pass Mention Substandard Doubtful Total One-to-four $ 162,993 — 572 — 163,565 Home equity line of credit 35,285 — 412 — 35,697 Junior liens 1,184 — — — 1,184 Multi-family 37,445 — — — 37,445 Construction 30,246 — — — 30,246 Land 14,318 — 555 — 14,873 Non-residential 216,901 979 7,072 — 224,952 Farmland 35,253 1,147 451 — 36,851 Consumer loans 8,376 — 244 — 8,620 Commercial loans 83,892 3,572 1,474 — 88,938 Total $ 625,893 5,698 10,780 — 642,371 |
Impaired Loans by Classification Type | Impaired loans by classification type and the related valuation allowance amounts at December 31, 2018 were as follows: For the year ended At December 31, 2018 December 31, 2018 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans with no specific allowance One-to-four $ — — — 710 27 Home equity line of credit — — — 261 4 Junior liens — — — 2 — Multi-family — — — — — Construction — — — — — Land — — — 312 — Non-residential 9,174 9,174 — 5,973 693 Farmland — — — 111 — Consumer loans — — — 5 — Commercial loans 3,452 3,452 — 2,333 234 Total 12,626 12,626 — 9,707 958 Impaired loans with a specific allowance One-to-four $ 274 274 13 55 12 Home equity line of credit — — — — — Junior liens — — — — — Multi-family — — — — — Construction — — — — — Land — — — — — Non-residential — — — 1,115 — Farmland — — — — — Consumer loans 208 208 52 284 — Commercial loans 141 141 141 793 23 Total 623 623 206 2,247 35 Total impaired loans $ 13,249 13,249 206 11,954 993 Impaired loans by classification type and the related valuation allowance amounts at December 31, 2017 were as follows: For the year ended At December 31, 2017 December 31, 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans with no specific allowance One-to-four $ 257 257 — 1,235 35 Home equity line of credit — — — 447 26 Junior liens — — — 6 — Multi-family — — — 1,135 — Construction — — — — — Land 515 515 — 837 44 Non-residential 7,086 7,086 — 8,979 395 Farmland 444 444 — 1,094 35 Consumer loans — — — 8 2 Commercial loans 875 875 — 1,571 46 Total 9,177 9,177 — 15,312 583 Impaired loans with a specific allowance One-to-four $ — — — — — Home equity line of credit — — — — — Junior liens — — — — — Multi-family — — — — — Construction — — — — — Land — — — 4,006 — Non-residential 2 2 2 88 2 Farmland — — — 195 — Consumer loans 217 217 54 248 — Commercial loans 541 541 233 479 13 Total 760 760 289 5,016 15 Total impaired loans $ 9,937 9,937 289 20,328 598 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2018 and December 31, 2017 by portfolio segment and based on the impairment method as of December 31, 2018 and December 31, 2017. Land Development / Commercial Residential Commercial Construction Real Estate Real Estate Consumer Total December 31, 2018: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 141 — — 13 52 206 Collectively evaluated for impairment 534 969 1,616 1,151 60 4,330 Total ending allowance balance $ 675 969 1,616 1,164 112 4,536 Loans: Loans individually evaluated for impairment $ 3,593 — 9,174 274 208 $ 13,249 Loans collectively evaluated for impairment 88,873 50,875 293,324 209,182 8,234 650,488 Total ending loans balance $ 92,466 50,875 302,498 209,456 8,442 663,737 Land Development / Commercial Residential Commercial Construction Real Estate Real Estate Consumer Total December 31, 2017: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 233 — 2 — 54 289 Collectively evaluated for impairment 614 1,384 1,468 941 130 4,537 Total ending allowance balance $ 847 1,384 1,470 941 184 4,826 Loans: Loans individually evaluated for impairment $ 1,416 515 7,532 257 217 9,937 Loans collectively evaluated for impairment 87,522 44,604 291,716 200,189 8,403 632,434 Total ending loans balance $ 88,938 45,119 299,248 200,446 8,620 642,371 |
Allowance for Loan Loss Account by Loan | The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the years ended December 31, 2018, December 31, 2017 and December 31, 2016: Provision Ending Balance for Loan Balance December 31, 2018 12/31/2017 Charge off Recovery Loss 12/31/2018 One-to-four $ 747 (6 ) 13 238 992 Home equity line of credit 189 — 9 (30 ) 168 Junior liens 5 — — (1 ) 4 Multi-family 314 — — (142 ) 172 Construction 161 — — 10 171 Land 1,223 (40 ) — (386 ) 797 Non-residential 789 (23 ) 14 513 1,293 Farmland 367 (2 ) 1 (214 ) 152 Consumer loans 184 (329 ) 80 177 112 Commercial loans 847 (307 ) 12 123 675 $ 4,826 (707 ) 129 288 4,536 Provision Ending Balance for Loan Balance December 31, 2017 12/31/2016 Charge off Recovery Loss 12/31/2017 One-to-four family mortgages $ 852 (66 ) 13 (52 ) 747 Home equity line of credit 260 — 12 (83 ) 189 Junior liens 8 — 4 (7 ) 5 Multi-family 412 — 417 (515 ) 314 Construction 277 — — (116 ) 161 Land 1,760 (2,608 ) 559 1,512 1,223 Non-residential real estate 964 — 16 (191 ) 789 Farmland 778 — 10 (421 ) 367 Consumer loans 208 (261 ) 87 150 184 Commercial loans 593 (224 ) 278 200 847 $ 6,112 (3,159 ) 1,396 477 4,826 Provision Ending Balance for Loan Balance December 31, 2016 12/31/2015 Charge off Recovery Loss 12/31/2016 One-to-four $ 1,030 — 167 (345 ) 852 Home equity line of credit 201 (30 ) 14 75 260 Junior liens 8 — 14 (14 ) 8 Multi-family 227 (421 ) — 606 412 Construction 377 — — (100 ) 277 Land 1,379 — — 381 1,760 Non-residential 1,139 — 10 (185 ) 964 Farmland 358 — — 420 778 Consumer loans 358 (422 ) 293 (21 ) 208 Commercial loans 623 (595 ) 141 424 593 $ 5,700 (1,468 ) 639 1,241 6,112 |
Non-accrual Loans | At December 31, 2018 and December 31, 2017, the Company’s balances of non-accrual 12/31/2018 12/31/2017 One-to-four $ 62 $ 266 Home equity lines of credit 98 402 Junior lien 4 4 Construction 152 — Land — 40 Non-residential 581 — Farmland — 111 Consumer loans 8 3 Commercial loans 525 459 $ 1,430 $ 1,285 |
Gross Loan Balances Excluding Deferred Loan Fees by Loan Classification Allocated Between Past Due Performing and Non-accrual | The table below presents gross loan balances at December 31, 2018 by loan classification allocated between past due, performing and non-accrual: Currently 30 – 89 Days More than 90 days past Non-accrual Performing Past Due Accruing Loans Total One-to-four $ 174,962 614 — 62 $ 175,638 Home equity line of credit 32,525 158 — 98 32,781 Junior liens 1,033 — — 4 1,037 Multi-family 26,067 — — — 26,067 Construction 38,548 — — 152 38,700 Land 12,175 — — — 12,175 Non-residential 241,809 — — 581 242,390 Farmland 34,041 — — — 34,041 Consumer loans 8,408 26 — 8 8,442 Commercial loans 91,930 11 — 525 92,466 Total $ 661,498 809 — 1,430 663,737 The table below presents gross loan balances at December 31, 2017 by loan classification allocated between past due, performing and non-accrual: Currently 30 – 89 Days More than 90 days past Non-accrual Performing Past Due Accruing Loans Total One-to-four $ 163,030 181 88 266 $ 163,565 Home equity line of credit 35,295 — — 402 35,697 Junior liens 1,180 — — 4 1,184 Multi-family 37,445 — — — 37,445 Construction 30,246 — — — 30,246 Land 14,833 — — 40 14,873 Non-residential 224,743 209 — — 224,952 Farmland 36,740 — — 111 36,851 Consumer loans 8,614 3 — 3 8,620 Commercial loans 88,479 — — 459 88,938 Total $ 640,605 393 88 1,285 642,371 |
Summary of the Activity in Loans Classified as TDRs | A summary of the activity in loans classified as TDRs for the year ended December 31, 2018 is as follows: Balance at New Loss on Transferred to Non-accrual Loan Balance Non-residential $ 3,163 322 — — (62 ) $ 3,423 Commercial loans — 109 — — (2 ) 107 Total performing TDR $ 3,163 431 — — (64 ) $ 3,530 A summary of the activity in loans classified as TDRs for the year ended December 31, 2017 is as follows: Balance at New Loss on Transferred to Non-accrual Loan Balance Multi-family real estate $ 815 — — — (815 ) — Non-residential 5,646 — — — (2,483 ) 3,163 Total performing TDR $ 6,461 — — — (3,298 ) 3,163 |
Summary of Loans to Officers, Directors and Their Affiliates | The following summarizes activity of loans to officers and directors and their affiliates for the years ended December 31, 2018 and December 31, 2017: 2018 2017 Balance at beginning of period $ 5,933 4,894 New loans 931 3,043 Principal repayments (1,660 ) (2,004 ) Balance at end of period $ 5,204 5,933 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Premises and Equipment Included in Consolidated Balance Sheets | Components of premises and equipment included in the consolidated balance sheets as of December 31, 2018 and December 31, 2017 consisted of the following: December 31, 2018 2017 Land $ 6,546 6,555 Land improvements 1,141 1,153 Buildings 22,504 22,467 Furniture and equipment 6,071 6,957 36,262 37,132 Less accumulated depreciation (14,503 ) 14,432 Premises and equipment, net $ 21,759 22,700 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Scheduled Maturities of Other Time Deposits | At December 31, 2018, the scheduled maturities of other time deposits were as follows: Years Ending December 31, 2019 $ 165,628 2020 67,500 2021 50,810 2022 9,177 2023 23,042 $ 316,157 |
Interest Expense on Deposits | Interest expense on deposits for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, is summarized as follows: 2018 2017 2016 Interest bearing checking accounts $ 1,492 $ 1,262 1,183 Money market accounts 73 71 76 Savings 133 94 95 Other time deposits 4,578 3,383 2,886 $ 6,276 4,810 4,240 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Summarized Federal Home Loan Bank Advances | Federal Home Loan Bank advances are summarized as follows: December 31, 2018 2017 Weighted Weighted Types of Advances Amount Average Rate Amount Average Rate Fixed-rate $ 33,000 2.25 % $ 23,000 1.57 % |
Scheduled Maturities of FHLB Advances | Scheduled maturities of FHLB advances as of December 31, 2018, are as follows: Years Ending December 31, Fixed Average 2019 $ 12,000 1.97 % 2020 15,000 2.16 % 2023 6,000 3.01 % Total $ 33,000 2.25 % |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Cost and Maturities of the Company's Repurchase Agreements | At December 31, 2018 and December 31, 2017, the respective cost and maturities of the Company’s repurchase agreements are as follows: 2018 Balance Average Rate Maturity Various customers $ 53,011 2.15 % Overnight Total $ 53,011 2.15 % 2017 Balance Average Rate Maturity Various customers $ 38,353 1.24 % Overnight Total $ 38,353 1.24 % |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The assets and liabilities measured at fair value on a recurring basis are summarized below: Total carrying Quoted Prices Significant value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet at Identical Assets Inputs Inputs Description 12/31/2018 (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Securities available for sale U.S. Agency securities $ 80,349 — 80,349 — Taxable municipals 954 — 954 — Tax-free 25,782 — 25,782 — Mortgage backed securities 63,719 — 93,719 — Total $ 170,804 — 170,804 — Total carrying Quoted Prices Significant value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet at Identical Assets Inputs Inputs Description 12/31/2017 (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Securities available for sale U.S. Agency securities $ 84,093 — 84,093 — Taxable municipals 1,283 — 1,283 — Tax-free 26,966 — 26,966 — Trust preferred securities 1,685 — — 1,685 Mortgage backed securities 70,764 — 70,764 — Total $ 184,791 — 183,106 1,685 |
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The assets and liabilities measured at fair value on a non-recurring Total carrying Quoted Prices Significant December 31, 2018 value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet Identical Assets Inputs Inputs Description At 12/31/2018 (Level 1) (Level 2) (Level 3) Assets Foreclosed assets $ — — — — Impaired loans, net of allowance of $154 $ 261 — — 261 Total carrying Quoted Prices Significant December 31, 2017 value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet Identical Assets Inputs Inputs Description At 12/31/2017 (Level 1) (Level 2) (Level 3) Assets Foreclosed assets $ 3,369 — — 3,369 Impaired loans, net of allowance of $289 $ 473 — — 473 Total carrying Quoted Prices Significant December 31, 2016 value in the In Active Other Significant consolidated Markets for Observable Unobservable balance sheet Identical Assets Inputs Inputs Description At 12/31/2016 (Level 1) (Level 2) (Level 3) Assets Foreclosed assets $ 2,397 — — 2,397 Impaired loans, net of allowance of $1,148 $ 6,123 — — 6,123 |
Quantitative Information about Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis | The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a recurring and non-recurring Level 3 Significant Unobservable Input Assumptions Fair Valuation Unobservable Quantitative Range Inputs December 31, 2018 Assets measured on a non-recurring Foreclosed assets $ — Discount to either actual Appraisal and sales — Impaired loans 415 Discount to appraised Appraisal 25% to 50% December 31, 2017 Assets measured on a non-recurring Foreclosed assets $ 3,369 Discount to either actual Appraisal and sales 30% to 55% Impaired loans 760 Discount to appraised Appraisal 10% to 25% Asset measured on a recurring basis Trust preferred securities 1,685 Discounted cash flow Compare to quotes One month libor plus 4% to 6% |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments were as follows at December 31, 2018: Carrying Estimated Quoted Prices Using Significant Financial Assets: Cash and due from banks $ 36,339 36,339 36,339 — — Interest-bearing deposits in banks 15,711 15,711 15,711 — — Securities available for sale 170,804 170,804 — 170,804 — Federal Home Loan Bank stock 4,428 4,428 — — 4,428 Loans held for sale 1,248 1,248 — 1,248 — Loans receivable 658,782 627,956 — — 627,956 Accrued interest receivable 3,503 3,503 — — 3,503 Financial Liabilities: Deposits 739,837 739,573 — 739,573 — Advances from borrowers for taxes and insurance 1,279 1,279 — 1,279 — Advances from Federal Home Loan Bank 33,000 32,830 — 32,830 — Repurchase agreements 53,011 53,011 — 53,011 — Subordinated debentures 10,310 10,310 — — 10,310 The estimated fair values of financial instruments were as follows at December 31, 2017: Carrying Estimated Quoted Prices Using Significant Financial Assets: Cash and due from banks $ 37,965 37,965 37,965 — — Interest-bearing deposits in banks 7,111 7,111 7,111 — — Securities available for sale 184,791 184,791 — 183,106 1,685 Federal Home Loan Bank stock 4,428 4,428 — — 4,428 Loans held for sale 1,539 1,539 — 1,539 — Loans receivable 637,102 615,265 — — 615,265 Accrued interest receivable 3,589 3,589 — — 3,589 Financial Liabilities: Deposits 754,009 754,510 — 754,510 — Advances from borrowers for taxes and insurance 808 808 — 808 — Advances from Federal Home Loan Bank 23,000 22,849 — 22,849 — Repurchase agreements 38,353 38,353 — 38,353 — Subordinated debentures 10,310 10,099 — — 10,099 |
Trust Preferred Securities [Member] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table provides a reconciliation for trust preferred securities owned by the Company and measured at fair value on a recurring basis using level 3 inputs during the years ended December 31, 2018 and December 31, 2017. 2018 2017 (Dollar in Thousands) Balance, January 1, $ 1,685 1,817 Accretion included in net income 4 16 Unrealized gain (loss) included in comprehensive income 294 (148 ) Call of security at book value (1,658 ) — Realized gain on call of security (325 ) — Ending balance, December 31, — 1,685 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Compensation Expense to be Recognized | The remaining compensation expense to be recognized at December 31, 2018, is as follows: Year Ending December 31, Approximate Future 2019 $ 138 2020 116 2021 24 2022 3 Total $ 281 |
Summary of Shares Held by Employee Stock Ownership Plan (ESOP) | At December 31, 2018 and December 31, 2017, shares held by the ESOP were as follows: December 31, 2018 December 31, 2017 Earned ESOP shares 215,510 165,686 Unearned ESOP shares 382,691 434,548 Total ESOP shares 598,201 600,234 Share price at December 31, $ 13.29 $ 14.10 Fair value of unearned ESOP shares $ 5,085,963 $ 6,127,127 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax Expense | The provision for income tax expense for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, consisted of the following: 2018 2017 2016 Current Federal $ 676 468 — State 95 95 95 771 563 95 Deferred Federal 296 1,585 267 State — — — 296 1,585 267 $ 1,067 2,148 362 |
Reconciliation of Federal Income Tax Rate | Total income tax expense for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, differed from the amounts computed by applying the applicable statutory federal income tax rate to income before income taxes as follows: 2018 2017 2016 Expected federal income tax expense at statutory tax rate $ 1,415 1,853 1,110 Effect of nontaxable interest income (220 ) (345 ) (452 ) Effect of nontaxable bank owned life insurance income (64 ) (164 ) (117 ) Effect of Qualified Zone Academy Bond (QZAB) — — (114 ) State taxes on income, net of federal benefit 75 59 59 Other tax credits (129 ) (243 ) (128 ) Deferred tax asset revaluation — 980 — Other (23 ) — — Non-deductible 13 8 4 Total income tax expense $ 1,067 2,148 362 Income tax rate 15.8 % 39.4 % 11.1 % |
Components of Deferred Taxes | The components of deferred taxes as of December 31, 2018 and December 31, 2017 are summarized as follows: 2018 2017 Deferred tax assets: Allowance for loan loss $ 953 1,014 Accrued expenses 79 77 Net operating loss carry forward 160 192 Tax credit carry forward 540 651 Unrealized loss on securities available for sale 414 57 Intangible amortization — 192 Depreciation and amortization 18 — Other 147 77 2,311 2,260 Deferred tax liabilities: FHLB stock dividends (486 ) (486 ) Depreciation and amortization (10 ) 486 (496 ) Net deferred tax asset $ 1,825 1,764 |
Foreclosed Asset (Tables)
Foreclosed Asset (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Summary of Foreclosed Properties Activity | The compensation and activity in the Company’s foreclosed assets are summarized below: Balance Reduction Gain Balance 12/31/2017 Foreclosure Sales in Values on Sale 12/31/2018 One-to-four $ 169 241 (164 ) (5 ) 15 $ 256 Non-residential — 142 — — — 142 Land 3,200 — — — — 3,200 Total 3,369 383 (164 ) (5 ) 15 3,598 Balance Reduction Gain (Loss) Balance 12/31/2016 Foreclosure Sales in Values on Sale 12/31/2017 One-to-four $ 163 1,069 (1,237 ) (10 ) 184 $ 169 Multi-family 1,775 — (1,761 ) — (14 ) — Non-residential 459 43 (500 ) — (2 ) — Land — 3,200 — — — 3,200 Total 2,397 4,312 (3,498 ) (10 ) 168 3,369 Balance Reduction Gain (Loss) Balance 12/31/2015 Foreclosure Sales in Values on Sale 12/31/2016 One-to-four family mortgages $ 55 203 (77 ) (8 ) (10 ) $ 163 Multi-family — 1,915 (153 ) — 13 1,775 Non-residential real estate 738 — (270 ) — (9 ) 459 Consumer — 15 (15 ) — — — Land 943 130 (1,108 ) — 35 — Total 1,736 2,263 (1,623 ) (8 ) (10 ) 2,397 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Open Loan Commitments | The table below outlines the Company’s open loan commitments at December 31, 2018 and December 31, 2017: December 31, 2018 2017 Commitments to extend credit 50,158 54,458 Standby letters of credit 1,046 143 Unused commercial lines of credit 45,912 62,910 Unused home equity lines of credit 31,733 32,701 Unused personal lines of credit 12,109 17,048 |
Future Minimal Purchase, Lease and Rental Commitments | At December 31, 2018, future minimal purchase, lease and rental commitments were as follows: Years Ending December 31, 2019 $ 308 2020 260 2021 224 2022 173 2023 22 Total $ 987 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios | The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of December 31, 2018 and December 31, 2017 are presented below: To be Well Capitalized for Minimum Capital Prompt Corrective Actual Required Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018 Tier 1 leverage capital to adjusted total assets Company $ 100,520 11.0 % $ 36,417 4.0 % $ 45,521 5.0 % Bank $ 99,478 10.9 % $ 36,361 4.0 % $ 45,451 5.0 % Total capital to risk weighted assets Company $ 105,055 16.2 % $ 52.049 8.0 % $ 65,061 10.0 % Bank $ 104,014 16.0 % $ 51,937 8.0 % $ 64,922 10.0 % Tier 1 capital to risk weighted assets Company $ 100,520 15.5 % $ 39,037 6.0 % $ 52,049 8.0 % Bank $ 99,478 15.3 % $ 38,953 6.0 % $ 51,937 8.0 % Common equity tier 1capital to risk weighted assets Company $ 100,520 15.5 % $ 29,277 4.5 % n/a n/a Bank $ 99,478 15.3 % $ 29,215 4.5 % $ 42,199 6.5 % As of December 31, 2017 Tier 1 leverage capital to adjusted total assets Company $ 95,709 10.6 % $ 36,137 4.0 % $ 45,171 5.0 % Bank $ 95,123 10.5 % $ 36,090 4.0 % $ 45,112 5.0 % Total capital to risk weighted assets Company $ 100,535 16.0 % $ 50,352 8.0 % $ 62,940 10.0 % Bank $ 99,949 15.9 % $ 50,314 8.0 % $ 62,892 10.0 % Tier 1 capital to risk weighted assets Company $ 95,709 15.2 % $ 37,764 6.0 % $ 50,352 8.0 % Bank $ 95,123 15.1 % $ 37,735 6.0 % $ 50,314 8.0 % Common equity tier 1capital to risk weighted assets Company $ 95,709 15.2 % $ 28,323 4.5 % n/a n/a Bank $ 95,123 15.1 % $ 28,301 4.5 % $ 40,880 6.5 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Weighted Average Common Shares | The following is a reconciliation of weighted average common shares for the basic and dilutive earnings per share computations: For the years ended December 31, 2018 2017 2016 Basic earnings per share: Weighted average common shares 6,641,796 6,695,721 6,757,345 Less: Average unallocated ESOP shares (408,620 ) (474,089 ) (523,485 ) Weighted average common shares 6,233,176 6,221,632 6,233,860 Dilutive effect of stock options — — — Weighted average common shares - diluted 6,233,176 6,221,632 6,233,860 |
Investments in Affiliated Com_2
Investments in Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments [Member] | |
Summary of Balance Sheets | Summary Balance Sheets December 31, December 31, Asset – investment in subordinated debentures issued by HopFed Bancorp, Inc. $ 10,310 10,310 Liabilities Stockholders’ equity: Trust preferred securities 10,000 10,000 Common stock (100% owned by HopFed Bancorp, Inc.) 310 310 Total stockholder’s equity 10,310 10,310 Total liabilities and stockholder’s equity $ 10,310 10,310 |
Summary of Condensed Statements of Income | Summary Statements of Income Year Ended December 31, 2018 2017 Income – interest income from subordinated debentures issued by HopFed Bancorp, Inc. $ 555 449 Net income $ 555 449 |
Summary Statement of Stockholders' Equity | Summary Statements of Stockholder’s Equity Trust Common Retained Total Stockholder’s Beginning balances, January 1, 2018 $ 10,000 310 — 10,310 Retained earnings: Net income — — 555 555 Dividends: Trust preferred securities — — (538 ) (538 ) Common dividends paid to HopFed Bancorp, Inc. — — (17 ) (17 ) Total retained earnings — — — — Ending balances, December 31, 2018 $ 10,000 310 — 10,310 |
HopFed [Member] | |
Summary of Balance Sheets | Condensed Balance Sheets: 2018 2017 Assets: Cash $ 1,086 862 Investment in subsidiary 99,745 96,826 Prepaid expenses and other assets 871 1,109 Total assets 101,702 98,797 Liabilities: Dividend payable - common 463 353 Interest payable 141 112 Other liabilities 2 610 Subordinated debentures 10,310 10,310 Total liabilities 10,916 11,385 Equity: Preferred stock — — Common stock 80 80 Additional paid-capital 59,105 58,825 Retained earnings 55,134 51,162 Treasury stock - common stock (16,706 ) (16,655 ) Unearned ESOP shares (5,268 ) (5,901 ) Accumulated other comprehensive loss (1,559 ) (99 ) Total equity 90,786 87,412 Total liabilities and equity $ 101,702 98,797 |
Summary of Condensed Statements of Income | Condensed Statements of Income: 2018 2017 2016 Interest and dividend income: Dividend income from subsidiary Bank $ 2,500 2,500 2,000 Total interest and dividend income 2,500 2,500 2,000 Interest expense 538 436 388 Non-interest expenses 964 1,538 391 Total expenses 1,502 1,974 779 Income before income taxes and equity in undistributed earnings of subsidiary 998 526 1,221 Income tax benefits (291 ) (545 ) (319 ) Income before equity in undistributed earnings of subsidiary 1,289 1,071 1,540 Equity in earnings of subsidiary 4,380 2,230 1,364 Income available to common shareholders $ 5,669 3,301 2,904 |
Condensed Parent Company Only_2
Condensed Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
HopFed [Member] | |
Summary of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows: 2018 2017 2016 Cash flows from operating activities Net income $ 5,669 $ 3,301 2,904 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (4,380 ) (2,230 ) (1,364 ) Amortization of restricted stock 164 106 135 Increase (decrease) in: Current income taxes payable 187 330 (49 ) Accrued expenses (301 ) 106 (392 ) Net cash provided by operating activities 1,339 1,613 1,234 Cash flows from financing activities: Purchase of treasury stock (51 ) (1,308 ) (1,876 ) Proceeds on ESOP loan 633 647 632 Dividends paid on common stock (1,697 ) (1,174 ) (993 ) Net cash used in financing activities (1,115 ) (1,835 ) (2,237 ) Net increase (decrease) in cash 224 (222 ) (1,003 ) Cash and due from banks at beginning of year 862 1,084 2,087 Cash and due from banks at end of year $ 1,086 $ 862 1,084 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Unaudited Quarterly Operating Results | Summarized unaudited quarterly operating results for the year ended December 31, 2018: First Second Third Fourth Quarter Quarter Quarter Quarter December 31, 2018: Interest and dividend income $ 8,798 9,115 9,344 9,474 Interest expense 1,612 1,835 2,231 2,496 Net interest income 7,186 7.280 7,113 6,978 Provision for loan losses 68 62 74 84 Net interest income after provision for loan losses 7,118 7,218 7,039 6,894 Noninterest income 1,744 2,364 1,893 1,816 Noninterest expense 7,540 7,574 7,512 6,724 Income before income taxes 1,322 2,008 1,420 1,986 Income taxes 196 323 180 368 Net income $ 1,126 1,685 1,240 1,618 Basic earnings per share $ 0.18 0.28 0.20 0.26 Diluted earnings per share $ 0.18 0.28 0.20 0.26 Weighted average shares outstanding: Basic 6,188,413 6,142,680 6,211,636 6,266,585 Diluted 6,188,413 6,142,680 6,211,636 6,266,585 Summarized unaudited quarterly operating results for the year ended December 31, 2017: First Second Third Fourth Quarter Quarter Quarter Quarter December 31, 2017: Interest and dividend income $ 8,160 8,419 8,635 8,541 Interest expense 1,406 1,454 1,537 1,566 Net interest income 6,754 6,965 7,098 6,975 Provision for loan losses 291 59 71 56 Net interest income after provision for loan losses 6,463 6,906 7,027 6,919 Noninterest income 2,296 1,836 2,030 1,868 Noninterest expense 7,689 7,233 7,168 7,806 Income before income taxes 1,070 1,509 1,889 981 Income taxes 135 368 486 1,159 Net income (loss) $ 935 1,141 1,403 (178 ) Basic earnings (loss) per share $ 0.15 0.18 0.22 (0.03 ) Diluted earnings (loss) per share $ 0.15 0.18 0.22 (0.03 ) Weighted average shares outstanding: Basic 6,218,706 6,228,994 6,236,075 6,202,635 Diluted 6,218,706 6,228,994 6,236,075 6,202,635 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income Included in Stockholders' Equity | The following table sets forth the amounts of other comprehensive income (loss) included in stockholders’ equity along with the related tax effect for the years ended December 31, 2018, 2017 and 2016. Pre-Tax Tax Benefit Net of Tax Amount (Expense) Amount December 31, 2018: Unrealized holding gains (losses) on: Available for sale securities ($ 1,589 ) 333 (1,256 ) Available for sale securities – OTTI 294 (61 ) 233 Reclassification adjustments for gains on: Available for sale securities (553 ) 116 (437 ) ($ 1,848 ) 388 (1,460 ) December 31, 2017: Unrealized holding gains (losses) on: Available for sale securities ($ 585 ) 198 (387 ) Available for sale securities – OTTI (224 ) 76 (148 ) Reclassification adjustments for gains on: Available for sale securities (169 ) 57 (112 ) ($ 978 ) 331 (647 ) December 31, 2016: Unrealized holding gains (losses) on: Available for sale securities ($ 2,048 ) 697 (1,351 ) Available for sale securities – OTTI (258 ) 88 (170 ) Reclassification adjustments for gains on: Available for sale securities (612 ) 207 (405 ) ($ 2,918 ) 992 (1,926 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 07, 2019$ / sharesshares | Jan. 04, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)Branchshares | Dec. 31, 2017USD ($)shares |
Accounting Policies [Line Items] | ||||
Maturity period of federal funds | 3 months | |||
Average prepayment speed period of securities to amortize premiums and accretes discount | 3 months | |||
Servicing portfolio of real estate loan | $ 14,300,000 | |||
Accrued interest receivable maximum recovery period | 90 days | |||
Revaluation of deferred tax assets due to change in tax rate | $ 980,000 | |||
Number of branch offices involved in origination of loans and collection of deposits | Branch | 18 | |||
Cash available for dividend | $ 1,100,000 | 860,000 | ||
Warrants outstanding | $ 0 | $ 0 | ||
Stock options outstanding | shares | 0 | 0 | ||
Effective tax rate | 21.00% | 35.00% | ||
First Financial Corporation [Member] | Subsequent Event [Member] | ||||
Accounting Policies [Line Items] | ||||
Expected stock split conversion ratio in sale of business | shares | 0.444 | |||
Expected per share expected consideration from sale of business | $ / shares | $ 21 | |||
Expected percentage of consideration as common stock | 50.00% | 50.00% | ||
Expected percentage of consideration as cash | 50.00% | 50.00% | ||
Share price | $ / shares | $ 43.01 | |||
Sale of business purchase price per share | $ / shares | $ 20.05 | |||
Consideration from sale of business | $ 128,300,000 | |||
Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Amount of tax benefit that is greater than likely being recognized on examination | 50.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 40 years |
Minimum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 5 years |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 5 years |
Maximum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 15 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 15 years |
Securities - Amortized Cost of
Securities - Amortized Cost of Securities and their Estimated Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
FHLB stock | $ 4,428 | $ 4,428 |
FHLB stock | 4,428 | 4,428 |
Amortized Cost | 172,777 | 184,940 |
Gross Unrealized Gains | 584 | 1,414 |
Gross Unrealized Losses | (2,557) | (1,563) |
Estimated Fair Value | 170,804 | 184,791 |
Estimated Fair Value, Less than 12 months | 1,465 | 87,323 |
Unrealized Losses, Less than 12 months | (8) | (772) |
Estimated Fair Value, 12 months or longer | 115,115 | 32,325 |
Unrealized Losses, 12 months or longer | (2,549) | (791) |
Estimated Fair Value | 116,580 | 119,648 |
Unrealized Losses | (2,557) | (1,563) |
U.S. Agency Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 81,158 | 84,210 |
Gross Unrealized Gains | 345 | 536 |
Gross Unrealized Losses | (1,154) | (653) |
Estimated Fair Value | 80,349 | 84,093 |
U.S. Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 41,501 | |
Unrealized Losses, Less than 12 months | (431) | |
Estimated Fair Value, 12 months or longer | 54,441 | 9,846 |
Unrealized Losses, 12 months or longer | (1,154) | (222) |
Estimated Fair Value | 54,441 | 51,347 |
Unrealized Losses | (1,154) | (653) |
Tax Free Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,753 | 26,412 |
Gross Unrealized Gains | 181 | 637 |
Gross Unrealized Losses | (152) | (83) |
Estimated Fair Value | 25,782 | 26,966 |
Tax Free Municipal Bonds [Member] | Temporarily Impaired Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 1,465 | 4,860 |
Unrealized Losses, Less than 12 months | (8) | (51) |
Estimated Fair Value, 12 months or longer | 5,619 | 913 |
Unrealized Losses, 12 months or longer | (144) | (32) |
Estimated Fair Value | 7,084 | 5,773 |
Unrealized Losses | (152) | (83) |
Taxable Municipals Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 957 | 1,279 |
Gross Unrealized Gains | 2 | 5 |
Gross Unrealized Losses | (5) | (1) |
Estimated Fair Value | 954 | 1,283 |
Taxable Municipals Bonds [Member] | Temporarily Impaired Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 521 | |
Unrealized Losses, Less than 12 months | (1) | |
Estimated Fair Value, 12 months or longer | 507 | |
Unrealized Losses, 12 months or longer | (5) | |
Estimated Fair Value | 507 | 521 |
Unrealized Losses | (5) | (1) |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 64,909 | 71,389 |
Gross Unrealized Gains | 56 | 201 |
Gross Unrealized Losses | (1,246) | (826) |
Estimated Fair Value | 63,719 | 70,764 |
Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 40,441 | |
Unrealized Losses, Less than 12 months | (289) | |
Estimated Fair Value, 12 months or longer | 54,548 | 21,566 |
Unrealized Losses, 12 months or longer | (1,246) | (537) |
Estimated Fair Value | 54,548 | 62,007 |
Unrealized Losses | $ (1,246) | (826) |
Trust Preferred Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,650 | |
Gross Unrealized Gains | 35 | |
Estimated Fair Value | $ 1,685 |
Securities - Maturities of Debt
Securities - Maturities of Debt Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost of debt securities available for sale, due within one year | $ 2,991 | $ 2,078 |
Amortized cost of debt securities available for sale, due in one to five years | 28,101 | 28,692 |
Amortized cost of debt securities available for sale, due in five to ten years | 14,146 | 18,161 |
Amortized cost of debt securities available for sale, due after ten years | 14,890 | 7,218 |
Amortized Cost | 172,777 | 184,940 |
Estimated fair value of debt securities available for sale, due within one year | 2,996 | 2,095 |
Estimated fair value of debt securities available for sale, due in one to five years | 27,736 | 28,624 |
Estimated fair value of debt securities available for sale, due in five to ten years | 13,944 | 18,287 |
Estimated fair value of debt securities available for sale, due after ten years | 14,971 | 7,443 |
Total unrestricted securities available for sale at estimated fair value | 170,804 | 184,791 |
Amortizing Agency Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost of debt securities available for sale without specific maturities | 47,740 | 57,402 |
Total estimated fair value of debt securities available for sale without specific maturities | 47,438 | 57,578 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost of debt securities available for sale without specific maturities | 64,909 | 71,389 |
Amortized Cost | 64,909 | 71,389 |
Total estimated fair value of debt securities available for sale without specific maturities | 63,719 | 70,764 |
Total unrestricted securities available for sale at estimated fair value | $ 63,719 | $ 70,764 |
Securities - Additional Informa
Securities - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2008USD ($) | Dec. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||||
Number of securities with unrealized losses | Securities | 86 | |||||
Investment par value | $ 2,000,000 | |||||
Dividend payment period | 5 years | |||||
Impairment charges | $ 400,000 | |||||
Security amount called by current sponsors | $ 2,000,000 | |||||
Unrealised accretion of impairment | $ 373,000 | |||||
Available for sale for proceeds | $ 9,900,000 | $ 18,000,000 | $ 19,000,000 | |||
Gross gains in available for sale for proceeds | 195,000 | 272,000 | 690,000 | |||
Gross loss in available for sale for proceeds | 15,000 | 103,000 | $ 78,000 | |||
Securities pledged to municipalities for deposits in excess of FDIC limits, book value | 96,500,000 | 118,000,000 | ||||
Securities pledged to municipalities for deposits in excess of FDIC limits, market value | 96,900,000 | 119,800,000 | ||||
Letter of credit issued by FHLB | $ 49,600,000 | $ 47,600,000 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)SecurityLoan | Dec. 31, 2017USD ($)SecurityLoan | Dec. 31, 2016USD ($)SecurityLoanBorrower | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment in impaired loans | $ 11,954,000 | $ 20,328,000 | $ 31,600,000 |
Interest income recognized on impaired loans | 993,000 | 598,000 | 1,600,000 |
Non-accrual loans | 1,430,000 | 1,285,000 | |
Total loans past due more than 90 days and still accruing interest | 0 | 88,000 | 0 |
Interest income foregone on non accrual loans | 127,000 | 100,000 | 108,000 |
Loans that have been modified as TDRs, subsequently defaulted | 0 | 0 | 0 |
Commitments to lend additional funds to borrower | $ 0 | $ 0 | $ 0 |
Number of loans modified as TDR | SecurityLoan | 2 | 0 | 4 |
Number of borrowers received financial concessions | Borrower | 1 | ||
Troubled debt restructurings outstanding balance of four loans | $ 1,000,000 | ||
Loans to officers and directors | $ 5,204,000 | $ 5,933,000 | $ 4,894,000 |
Funds undisbursed to officers and directors | 300,000 | 1,500,000 | |
Impaired Loans Substandard [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual loans | 1,400,000 | 1,300,000 | |
Officers and Directors [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans to officers and directors | 5,200,000 | 5,900,000 | |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual loans | $ 8,000 | 3,000 | |
Consumer Loans [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 1 year | ||
Consumer Loans [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 5 years | ||
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual loans | $ 525,000 | 459,000 | |
Commercial Loans [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 1 year | ||
Commercial Loans [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 5 years | ||
Multi-Family [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans modified as TDR | SecurityLoan | 3 | ||
Multi-Family [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 5 years | ||
Multi-Family [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans amortization period | 20 years | ||
Owner Occupied Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured non-residential real estate loans | $ 96,600,000 | 95,600,000 | $ 78,700,000 |
Non Owner Occupied Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured non-residential real estate loans | 145,800,000 | 129,400,000 | $ 104,200,000 |
One-to-Four Family Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual loans | $ 62,000 | 266,000 | |
Total loans past due more than 90 days and still accruing interest | 88,000 | ||
One-to-Four Family Mortgages [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable maturity period | 30 years | ||
Home Equity Line of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual loans | $ 98,000 | 402,000 | |
Home Equity Line of Credit [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable maturity period | 10 years | ||
Home Equity Line of Credit [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable maturity period | 15 years | ||
Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans amortization period | 20 years | ||
Non-accrual loans | $ 152,000 | ||
Construction [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable maturity period | 12 months | ||
Construction [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable maturity period | 24 months | ||
Recreational Land Development Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans amortization period | 20 years | ||
Recreational Land Development Loans [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 1 year | ||
Recreational Land Development Loans [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 5 years | ||
Farmland [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual loans | $ 111,000 | ||
Farmland [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 5 years | ||
Farmland [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable maturity period | 20 years | ||
Fixed rate of interest period | 10 years | ||
Non-Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable maturity period | 20 years | ||
Non-accrual loans | $ 581,000 | ||
Number of loans modified as TDR | SecurityLoan | 1 | ||
Non-Residential Real Estate [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 5 years | ||
Non-Residential Real Estate [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fixed rate of interest period | 10 years | ||
Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases receivable in percentage | 84.80% | 84.80% |
Loans Receivable, Net - Composi
Loans Receivable, Net - Composition of Loan Portfolio By Type of Loan (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Real estate loans: | ||
Total loans, gross | $ 663,737 | $ 642,371 |
Deferred loan cost, net of fees | (419) | (443) |
Less allowance for loan losses | (4,536) | (4,826) |
Total loans | 658,782 | 637,102 |
Multi-Family [Member] | ||
Real estate loans: | ||
Total loans, gross | 26,067 | 37,445 |
Consumer Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 8,442 | 8,620 |
Less allowance for loan losses | (112) | (184) |
Commercial Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 92,466 | 88,938 |
Less allowance for loan losses | (675) | (847) |
Junior Liens [Member] | ||
Real estate loans: | ||
Total loans, gross | 1,037 | 1,184 |
Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 562,829 | 544,813 |
Real Estate Loans [Member] | Multi-Family [Member] | ||
Real estate loans: | ||
Total loans, gross | 26,067 | 37,445 |
Real Estate Loans [Member] | One-to-Four Family Mortgages [Member] | ||
Real estate loans: | ||
Total loans, gross | 175,638 | 163,565 |
Real Estate Loans [Member] | Home Equity Line of Credit [Member] | ||
Real estate loans: | ||
Total loans, gross | 32,781 | 35,697 |
Real Estate Loans [Member] | Construction [Member] | ||
Real estate loans: | ||
Total loans, gross | 38,700 | 30,246 |
Real Estate Loans [Member] | Land [Member] | ||
Real estate loans: | ||
Total loans, gross | 12,175 | 14,873 |
Real Estate Loans [Member] | Non-Residential Real Estate [Member] | ||
Real estate loans: | ||
Total loans, gross | 242,390 | 224,952 |
Real Estate Loans [Member] | Farmland [Member] | ||
Real estate loans: | ||
Total loans, gross | 34,041 | 36,851 |
Real Estate Loans [Member] | Junior Liens [Member] | ||
Real estate loans: | ||
Total loans, gross | 1,037 | 1,184 |
Total Other Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 100,908 | 97,558 |
Total Other Loans [Member] | Consumer Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 8,442 | 8,620 |
Total Other Loans [Member] | Commercial Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | $ 92,466 | $ 88,938 |
Loans Receivable, Net - Loans b
Loans Receivable, Net - Loans by Classification Type and Credit Risk Indicator (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | $ 663,737 | $ 642,371 |
Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 26,067 | 37,445 |
One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 175,638 | 163,565 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 32,781 | 35,697 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 38,700 | 30,246 |
Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 12,175 | 14,873 |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 242,390 | 224,952 |
Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 34,041 | 36,851 |
Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 1,037 | 1,184 |
Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 8,442 | 8,620 |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 92,466 | 88,938 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 645,243 | 625,893 |
Pass [Member] | Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 26,067 | 37,445 |
Pass [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 174,973 | 162,993 |
Pass [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 32,684 | 35,285 |
Pass [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 38,548 | 30,246 |
Pass [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 12,175 | 14,318 |
Pass [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 232,289 | 216,901 |
Pass [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 33,808 | 35,253 |
Pass [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 1,033 | 1,184 |
Pass [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 8,233 | 8,376 |
Pass [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 85,433 | 83,892 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 4,171 | 5,698 |
Special Mention [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 152 | |
Special Mention [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 596 | 979 |
Special Mention [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 233 | 1,147 |
Special Mention [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 3,190 | 3,572 |
Impaired Loans Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 14,323 | 10,780 |
Impaired Loans Substandard [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 665 | 572 |
Impaired Loans Substandard [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 97 | 412 |
Impaired Loans Substandard [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 555 | |
Impaired Loans Substandard [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 9,505 | 7,072 |
Impaired Loans Substandard [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 451 | |
Impaired Loans Substandard [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 4 | |
Impaired Loans Substandard [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 209 | 244 |
Impaired Loans Substandard [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | $ 3,843 | $ 1,474 |
Loans Receivable, Net - Impaire
Loans Receivable, Net - Impaired Loans by Classification Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 12,626 | $ 9,177 | |
Total Recorded Investment | 13,249 | 9,937 | |
Unpaid Principal Balance | 12,626 | 9,177 | |
Total Unpaid Principal Balance | 13,249 | 9,937 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 9,707 | 15,312 | |
Interest Income Recognized | 958 | 583 | |
Recorded Investment | 623 | 760 | |
Unpaid Principal Balance | 623 | 760 | |
Related Allowance | 206 | 289 | |
Average Recorded Investment | 2,247 | 5,016 | |
Total Average Recorded Investment | 11,954 | 20,328 | $ 31,600 |
Interest Income Recognized | 35 | 15 | |
Total Interest Income Recognized | 993 | 598 | $ 1,600 |
Multi-Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 1,135 | ||
One-to-Four Family Mortgages [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 257 | ||
Unpaid Principal Balance | 257 | ||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 710 | 1,235 | |
Interest Income Recognized | 27 | 35 | |
Recorded Investment | 274 | ||
Unpaid Principal Balance | 274 | ||
Related Allowance | 13 | ||
Average Recorded Investment | 55 | ||
Interest Income Recognized | 12 | ||
Home Equity Line of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 261 | 447 | |
Interest Income Recognized | 4 | 26 | |
Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Land [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 515 | ||
Unpaid Principal Balance | 515 | ||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 312 | 837 | |
Interest Income Recognized | 44 | ||
Average Recorded Investment | 4,006 | ||
Non-Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 9,174 | 7,086 | |
Unpaid Principal Balance | 9,174 | 7,086 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 5,973 | 8,979 | |
Interest Income Recognized | 693 | 395 | |
Recorded Investment | 2 | ||
Unpaid Principal Balance | 2 | ||
Related Allowance | 2 | ||
Average Recorded Investment | 1,115 | 88 | |
Interest Income Recognized | 2 | ||
Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 444 | ||
Unpaid Principal Balance | 444 | ||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 111 | 1,094 | |
Interest Income Recognized | 35 | ||
Average Recorded Investment | 195 | ||
Junior Liens [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 2 | 6 | |
Consumer Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 5 | 8 | |
Interest Income Recognized | 2 | ||
Recorded Investment | 208 | 217 | |
Unpaid Principal Balance | 208 | 217 | |
Related Allowance | 52 | 54 | |
Average Recorded Investment | 284 | 248 | |
Commercial Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 3,452 | 875 | |
Unpaid Principal Balance | 3,452 | 875 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 2,333 | 1,571 | |
Interest Income Recognized | 234 | 46 | |
Recorded Investment | 141 | 541 | |
Unpaid Principal Balance | 141 | 541 | |
Related Allowance | 141 | 233 | |
Average Recorded Investment | 793 | 479 | |
Interest Income Recognized | $ 23 | $ 13 |
Loans Receivable, Net - Allowan
Loans Receivable, Net - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 206 | $ 289 |
Collectively evaluated for impairment | 4,330 | 4,537 |
Total ending allowance balance | 4,536 | 4,826 |
Loans individually evaluated for impairment | 13,249 | 9,937 |
Loans collectively evaluated for impairment | 650,488 | 632,434 |
Total ending loans balance | 663,737 | 642,371 |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 141 | 233 |
Collectively evaluated for impairment | 534 | 614 |
Total ending allowance balance | 675 | 847 |
Loans individually evaluated for impairment | 3,593 | 1,416 |
Loans collectively evaluated for impairment | 88,873 | 87,522 |
Total ending loans balance | 92,466 | 88,938 |
Land Development/Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 969 | 1,384 |
Total ending allowance balance | 969 | 1,384 |
Loans individually evaluated for impairment | 515 | |
Loans collectively evaluated for impairment | 50,875 | 44,604 |
Total ending loans balance | 50,875 | 45,119 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 2 | |
Collectively evaluated for impairment | 1,616 | 1,468 |
Total ending allowance balance | 1,616 | 1,470 |
Loans individually evaluated for impairment | 9,174 | 7,532 |
Loans collectively evaluated for impairment | 293,324 | 291,716 |
Total ending loans balance | 302,498 | 299,248 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 13 | |
Collectively evaluated for impairment | 1,151 | 941 |
Total ending allowance balance | 1,164 | 941 |
Loans individually evaluated for impairment | 274 | 257 |
Loans collectively evaluated for impairment | 209,182 | 200,189 |
Total ending loans balance | 209,456 | 200,446 |
Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 52 | 54 |
Collectively evaluated for impairment | 60 | 130 |
Total ending allowance balance | 112 | 184 |
Loans individually evaluated for impairment | 208 | 217 |
Loans collectively evaluated for impairment | 8,234 | 8,403 |
Total ending loans balance | $ 8,442 | $ 8,620 |
Loans Receivable, Net - Allow_2
Loans Receivable, Net - Allowance for Loan Loss Account by Loan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | $ 4,826 | $ 6,112 | $ 4,826 | $ 6,112 | $ 5,700 | ||||||
Charge off | (707) | (3,159) | (1,468) | ||||||||
Recoveries | 129 | 1,396 | 639 | ||||||||
Provision for Loan Loss | $ 84 | $ 74 | $ 62 | 68 | $ 56 | $ 71 | $ 59 | 291 | 288 | 477 | 1,241 |
Ending balance | 4,536 | 4,826 | 4,536 | 4,826 | 6,112 | ||||||
Multi-Family [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 314 | 412 | 314 | 412 | 227 | ||||||
Charge off | (421) | ||||||||||
Recoveries | 417 | ||||||||||
Provision for Loan Loss | (142) | (515) | 606 | ||||||||
Ending balance | 172 | 314 | 172 | 314 | 412 | ||||||
One-to-Four Family Mortgages [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 747 | 852 | 747 | 852 | 1,030 | ||||||
Charge off | (6) | (66) | |||||||||
Recoveries | 13 | 13 | 167 | ||||||||
Provision for Loan Loss | 238 | (52) | (345) | ||||||||
Ending balance | 992 | 747 | 992 | 747 | 852 | ||||||
Home Equity Line of Credit [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 189 | 260 | 189 | 260 | 201 | ||||||
Charge off | (30) | ||||||||||
Recoveries | 9 | 12 | 14 | ||||||||
Provision for Loan Loss | (30) | (83) | 75 | ||||||||
Ending balance | 168 | 189 | 168 | 189 | 260 | ||||||
Construction [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 161 | 277 | 161 | 277 | 377 | ||||||
Provision for Loan Loss | 10 | (116) | (100) | ||||||||
Ending balance | 171 | 161 | 171 | 161 | 277 | ||||||
Land [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 1,223 | 1,760 | 1,223 | 1,760 | 1,379 | ||||||
Charge off | (40) | (2,608) | |||||||||
Recoveries | 559 | ||||||||||
Provision for Loan Loss | (386) | 1,512 | 381 | ||||||||
Ending balance | 797 | 1,223 | 797 | 1,223 | 1,760 | ||||||
Non-Residential Real Estate [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 789 | 964 | 789 | 964 | 1,139 | ||||||
Charge off | (23) | ||||||||||
Recoveries | 14 | 16 | 10 | ||||||||
Provision for Loan Loss | 513 | (191) | (185) | ||||||||
Ending balance | 1,293 | 789 | 1,293 | 789 | 964 | ||||||
Farmland [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 367 | 778 | 367 | 778 | 358 | ||||||
Charge off | (2) | ||||||||||
Recoveries | 1 | 10 | |||||||||
Provision for Loan Loss | (214) | (421) | 420 | ||||||||
Ending balance | 152 | 367 | 152 | 367 | 778 | ||||||
Junior Liens [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 5 | 8 | 5 | 8 | 8 | ||||||
Recoveries | 4 | 14 | |||||||||
Provision for Loan Loss | (1) | (7) | (14) | ||||||||
Ending balance | 4 | 5 | 4 | 5 | 8 | ||||||
Consumer Loans [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | 184 | 208 | 184 | 208 | 358 | ||||||
Charge off | (329) | (261) | (422) | ||||||||
Recoveries | 80 | 87 | 293 | ||||||||
Provision for Loan Loss | 177 | 150 | (21) | ||||||||
Ending balance | 112 | 184 | 112 | 184 | 208 | ||||||
Commercial Loans [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Beginning balance | $ 847 | $ 593 | 847 | 593 | 623 | ||||||
Charge off | (307) | (224) | (595) | ||||||||
Recoveries | 12 | 278 | 141 | ||||||||
Provision for Loan Loss | 123 | 200 | 424 | ||||||||
Ending balance | $ 675 | $ 847 | $ 675 | $ 847 | $ 593 |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Non-accrual Loans by Loan Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 1,430 | $ 1,285 |
One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 62 | 266 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 98 | 402 |
Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 152 | |
Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 40 | |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 581 | |
Farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 111 | |
Junior Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 4 | 4 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 8 | 3 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 525 | $ 459 |
Loans Receivable, Net - Loan Ba
Loans Receivable, Net - Loan Balances by Loan Classification Allocated Between Past Due Performing and Non-performing (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | $ 661,498,000 | $ 640,605,000 | |
30 - 89 Days Past Due | 809,000 | 393,000 | |
More than 90 days past Due and still Accruing | 0 | 88,000 | $ 0 |
Non-accrual loans | 1,430,000 | 1,285,000 | |
Total loans, gross | 663,737,000 | 642,371,000 | |
Multi-Family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 26,067,000 | 37,445,000 | |
Total loans, gross | 26,067,000 | 37,445,000 | |
One-to-Four Family Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 174,962,000 | 163,030,000 | |
30 - 89 Days Past Due | 614,000 | 181,000 | |
More than 90 days past Due and still Accruing | 88,000 | ||
Non-accrual loans | 62,000 | 266,000 | |
Total loans, gross | 175,638,000 | 163,565,000 | |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 32,525,000 | 35,295,000 | |
30 - 89 Days Past Due | 158,000 | ||
Non-accrual loans | 98,000 | 402,000 | |
Total loans, gross | 32,781,000 | 35,697,000 | |
Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 38,548,000 | 30,246,000 | |
Non-accrual loans | 152,000 | ||
Total loans, gross | 38,700,000 | 30,246,000 | |
Land [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 12,175,000 | 14,833,000 | |
Non-accrual loans | 40,000 | ||
Total loans, gross | 12,175,000 | 14,873,000 | |
Non-Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 241,809,000 | 224,743,000 | |
30 - 89 Days Past Due | 209,000 | ||
Non-accrual loans | 581,000 | ||
Total loans, gross | 242,390,000 | 224,952,000 | |
Farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 34,041,000 | 36,740,000 | |
Non-accrual loans | 111,000 | ||
Total loans, gross | 34,041,000 | 36,851,000 | |
Junior Liens [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 1,033,000 | 1,180,000 | |
Non-accrual loans | 4,000 | 4,000 | |
Total loans, gross | 1,037,000 | 1,184,000 | |
Consumer Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 8,408,000 | 8,614,000 | |
30 - 89 Days Past Due | 26,000 | 3,000 | |
Non-accrual loans | 8,000 | 3,000 | |
Total loans, gross | 8,442,000 | 8,620,000 | |
Commercial Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Currently Performing | 91,930,000 | 88,479,000 | |
30 - 89 Days Past Due | 11,000 | ||
Non-accrual loans | 525,000 | 459,000 | |
Total loans, gross | $ 92,466,000 | $ 88,938,000 |
Loans Receivable, Net - Summa_2
Loans Receivable, Net - Summary of the Activity in Loans Classified as TDRs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications [Line Items] | ||
Beginning Balance | $ 3,163 | $ 6,461 |
New TDR | 431 | |
Loss on Foreclosure | 0 | 0 |
Transferred to Non-accrual | 0 | 0 |
Loan Paid off | (64) | |
Loan Paid off | (3,298) | |
Ending Balance | 3,530 | 3,163 |
Multi-Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Beginning Balance | 815 | |
Loss on Foreclosure | 0 | |
Transferred to Non-accrual | 0 | |
Loan Paid off | (815) | |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Beginning Balance | 3,163 | 5,646 |
New TDR | 322 | |
Loss on Foreclosure | 0 | 0 |
Transferred to Non-accrual | 0 | 0 |
Loan Paid off | (62) | |
Loan Paid off | (2,483) | |
Ending Balance | 3,423 | $ 3,163 |
Commercial Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
New TDR | 109 | |
Loss on Foreclosure | 0 | |
Transferred to Non-accrual | 0 | |
Loan Paid off | (2) | |
Ending Balance | $ 107 |
Loans Receivable, Net - Summa_3
Loans Receivable, Net - Summary of Loans to Officers, Directors and Their Affiliates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 5,933 | $ 4,894 |
New loans | 931 | 3,043 |
Principal repayments | (1,660) | (2,004) |
Balance at end of period | $ 5,204 | $ 5,933 |
Premises and Equipment - Compon
Premises and Equipment - Components of Premises and Equipment Included in the Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | $ 36,262 | $ 37,132 |
Less accumulated depreciation | 14,503 | 14,432 |
Premises and equipment, net | 21,759 | 22,700 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 6,546 | 6,555 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 1,141 | 1,153 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 22,504 | 22,467 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | $ 6,071 | $ 6,957 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,250 | $ 1,225 | $ 1,320 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Other Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
2019 | $ 165,628 | |
2020 | 67,500 | |
2021 | 50,810 | |
2022 | 9,177 | |
2023 | 23,042 | |
Other time deposits | $ 316,157 | $ 304,969 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items] | ||
Other time deposits | $ 104,500,000 | $ 97,800,000 |
Deposits of directors, members of senior management and their affiliates | 1,600,000 | 2,100,000 |
Brokered and CDARS Deposits | 739,837,000 | 754,009,000 |
Average daily clearings | 5,200,000 | |
Deposit with overdraft status | 208,000 | 217,000 |
Brokered Deposits [Member] | ||
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items] | ||
Brokered and CDARS Deposits | $ 65,800,000 | $ 60,100,000 |
Deposits - Interest Expenses on
Deposits - Interest Expenses on Deposits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |||
Interest bearing checking accounts | $ 1,492 | $ 1,262 | $ 1,183 |
Money market accounts | 73 | 71 | 76 |
Savings | 133 | 94 | 95 |
Other time deposits | 4,578 | 3,383 | 2,886 |
Total | $ 6,276 | $ 4,810 | $ 4,240 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank - Summarized Federal Home Loan Bank Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed-rate | $ 33,000 | $ 23,000 |
Weighted Average [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted Average Rate | 2.25% | 1.57% |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank - Scheduled Maturities of FHLB Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Line Items] | ||
2019, Fixed rate | $ 12,000 | |
2020, Fixed rate | 15,000 | |
2023, Fixed rate | 6,000 | |
Total, Fixed rate | $ 33,000 | |
2019, Average cost | 1.97% | |
2020, Average cost | 2.16% | |
2023, Average cost | 3.01% | |
Weighted Average [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total | 2.25% | 1.57% |
Advances from Federal Home Lo_5
Advances from Federal Home Loan Bank - Additional Information (Detail) - USD ($) | Jan. 10, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Line Items] | |||
Advances from federal home loan banks | $ 33,000,000 | ||
Agreement of first mortgage loan and non-residential real estate loan | 125.00% | ||
Additional borrowing capacity | $ 43,200,000 | ||
Additional collateral pledged that could be pledged to FHLB | 13,200,000 | ||
Subsequent Event [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Advances from federal home loan banks | $ 7,000,000 | ||
Federal Home Loan Bank of Cincinnati [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Approved line of credit | 30,000,000 | ||
BBVA Compass Bank [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Approved line of credit | 12,000,000 | ||
Bbva Compass Bank and Cincinnati [Member] | Overnight Line of Credit [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Overnight lines of credit outstanding amount | $ 0 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Investment securities for repurchase agreements | $ 53,000,000 | |
Maximum repurchase balances outstanding | $ 53,000,000 | $ 46,800,000 |
Repurchase Agreements - Cost an
Repurchase Agreements - Cost and Maturities of Company's Repurchase Agreements (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | $ 53,011 | $ 38,353 |
Average Rate | 2.15% | 1.24% |
Various Customers [Member] | Overnight [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | $ 53,011 | $ 38,353 |
Average Rate | 2.15% | 1.24% |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | $ 170,804 | $ 184,791 |
U.S. Agency Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 80,349 | 84,093 |
Taxable Municipals Bonds [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 954 | 1,283 |
Tax Free Municipal Bonds [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 25,782 | 26,966 |
Mortgage-Backed Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 63,719 | 70,764 |
Trust Preferred Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 1,685 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 170,804 | 184,791 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 80,349 | 84,093 |
Fair Value, Measurements, Recurring [Member] | Taxable Municipals Bonds [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 954 | 1,283 |
Fair Value, Measurements, Recurring [Member] | Tax Free Municipal Bonds [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 25,782 | 26,966 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 63,719 | 70,764 |
Fair Value, Measurements, Recurring [Member] | Trust Preferred Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 1,685 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 170,804 | 183,106 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 170,804 | 183,106 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 80,349 | 84,093 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Taxable Municipals Bonds [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 954 | 1,283 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Tax Free Municipal Bonds [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 25,782 | 26,966 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | $ 93,719 | 70,764 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 1,685 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | 1,685 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred Securities [Member] | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available for sale | $ 1,685 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Foreclosed assets | $ 3,598 | $ 3,369 | $ 2,397 | $ 1,736 |
Fair Value, Measurements, Nonrecurring [Member] | ||||
Assets | ||||
Foreclosed assets | 3,369 | 2,397 | ||
Impaired loans, net of allowance | 261 | 473 | 6,123 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Assets | ||||
Foreclosed assets | 3,369 | 2,397 | ||
Impaired loans, net of allowance | $ 261 | $ 473 | $ 6,123 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | |||
Allowance for impaired loans | $ 206 | $ 289 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | |||
Allowance for impaired loans | $ 154 | $ 289 | $ 1,148 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Quantitative Information about Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis (Detail) - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Measurements, Nonrecurring [Member] | Foreclosed Assets [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 3,369 | |
Unobservable Input | Appraisal and sales comparability adjustments | Appraisal and sales comparability adjustments |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 415 | $ 760 |
Unobservable Input | Appraisal and sales comparability adjustments | Appraisal comparability adjustments |
Fair Value, Measurements, Nonrecurring [Member] | Minimum [Member] | Foreclosed Assets [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Quantitative Range of Unobservable Inputs, Percentage | 30 | |
Fair Value, Measurements, Nonrecurring [Member] | Minimum [Member] | Impaired Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Quantitative Range of Unobservable Inputs, Percentage | 25 | 10 |
Fair Value, Measurements, Nonrecurring [Member] | Maximum [Member] | Foreclosed Assets [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Quantitative Range of Unobservable Inputs, Percentage | 55 | |
Fair Value, Measurements, Nonrecurring [Member] | Maximum [Member] | Impaired Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Quantitative Range of Unobservable Inputs, Percentage | 50 | 25 |
Fair Value, Measurements, Recurring [Member] | Trust Preferred Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 1,685 | |
Unobservable Input | Compare to quotes for sale when available | |
Quantitative Range of Unobservable Inputs, Description | One month libor | |
Fair Value, Measurements, Recurring [Member] | Minimum [Member] | Trust Preferred Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Quantitative Range of Unobservable Inputs, Percentage | 4 | |
Fair Value, Measurements, Recurring [Member] | Maximum [Member] | Trust Preferred Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Quantitative Range of Unobservable Inputs, Percentage | 6 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Schedule of Trust Preferred Securities Measured at Fair Value on a Recurring Basis (Detail) - Trust Preferred Securities [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ||
Balance at beginning of period | $ 1,685 | $ 1,817 |
Accretion included in net income | 4 | 16 |
Unrealized gain (loss) included in comprehensive income | 294 | (148) |
Call of security at book value | (1,658) | |
Realized gain on call of security | $ (325) | |
Balance at end of period | $ 1,685 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Securities available for sale | $ 170,804 | $ 184,791 |
Amortized Cost [Member] | ||
Financial Assets: | ||
Cash and due from banks | 36,339 | 37,965 |
Interest-bearing deposits in banks | 15,711 | 7,111 |
Securities available for sale | 170,804 | 184,791 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 1,248 | 1,539 |
Loans receivable | 658,782 | 637,102 |
Accrued interest receivable | 3,503 | 3,589 |
Financial Liabilities: | ||
Deposits | 739,837 | 754,009 |
Advances from borrowers for taxes and insurance | 1,279 | 808 |
Advances from Federal Home Loan Bank | 33,000 | 23,000 |
Repurchase agreements | 53,011 | 38,353 |
Subordinated debentures | 10,310 | 10,310 |
Estimated Fair Value [Member] | ||
Financial Assets: | ||
Cash and due from banks | 36,339 | 37,965 |
Interest-bearing deposits in banks | 15,711 | 7,111 |
Securities available for sale | 170,804 | 184,791 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 1,248 | 1,539 |
Loans receivable | 627,956 | 615,265 |
Accrued interest receivable | 3,503 | 3,589 |
Financial Liabilities: | ||
Deposits | 739,573 | 754,510 |
Advances from borrowers for taxes and insurance | 1,279 | 808 |
Advances from Federal Home Loan Bank | 32,830 | 22,849 |
Repurchase agreements | 53,011 | 38,353 |
Subordinated debentures | 10,310 | 10,099 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial Assets: | ||
Cash and due from banks | 36,339 | 37,965 |
Interest-bearing deposits in banks | 15,711 | 7,111 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Securities available for sale | 170,804 | 183,106 |
Loans held for sale | 1,248 | 1,539 |
Financial Liabilities: | ||
Deposits | 739,573 | 754,510 |
Advances from borrowers for taxes and insurance | 1,279 | 808 |
Advances from Federal Home Loan Bank | 32,830 | 22,849 |
Repurchase agreements | 53,011 | 38,353 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets: | ||
Securities available for sale | 1,685 | |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans receivable | 627,956 | 615,265 |
Accrued interest receivable | 3,503 | 3,589 |
Financial Liabilities: | ||
Subordinated debentures | $ 10,310 | $ 10,099 |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2003USD ($)$ / Security | Dec. 31, 2017USD ($) | Dec. 31, 2003USD ($) | Dec. 31, 2018USD ($) | Oct. 08, 2008USD ($) | |
Debt Disclosure [Abstract] | |||||
Variable rate capital securities with an aggregate liquidation amount | $ 10,000,000 | ||||
Preferred security, Aggregate liquidation amount | $ / Security | 1,000 | ||||
Floating rate junior subordinated debentures | $ 10,310,000 | $ 10,310,000 | $ 10,310,000 | ||
Percentage above LIBOR | 3.10% | ||||
Interest rate to be received under swap agreement, adjusted quarterly | Three-month London Interbank Lending Rate (Libor) plus 3.10% | ||||
Interest rate after adjustment | 5.89% | ||||
Junior subordinated debentures maturity | 2033 | ||||
Junior subordinated debentures and capital securities redemption price | $ 1,000 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Risks and Uncertainties [Abstract] | ||
Deposit with bank insured amount | $ 250,000 | $ 500,000 |
Total FHLB deposits | 7,300,000 | 5,600,000 |
Total deposits at federal reserve | 15,700,000 | 7,100,000 |
Total deposits at BBVA | $ 9,800,000 | $ 26,300,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | Mar. 02, 2015 | Mar. 20, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation Related Costs Disclosure [Line Items] | |||||
Shares purchased from the corporation | 598,201 | 600,234 | |||
Cost of shares purchased from the corporation | $ 633,000 | $ 647,000 | $ 632,000 | ||
2015 Employee Stock Ownership Plan [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Employee stock ownership plan employee minimum service period | 1 year | ||||
Employee stock ownership plan, description | 2015 Employee Stock Ownership Plan which covers substantially all employees who are at least 21 years old with at least one year of employment with the Company and Heritage Bank USA, Inc., the Company’s commercial bank subsidiary. The ESOP has three individuals who have been selected by the Company to serve as trustees. A directed corporate trustee has also been appointed. The ESOP will be administered by a committee (the “Committee”) currently composed of eleven employees selected by the Company or its designee. | ||||
Employee stock ownership plan loan, shares released from the ESOP trust | 51,856 | 64,032 | 48,067 | ||
Employee stock ownership plan loan, expenses recognized | $ 633,000 | $ 706,000 | $ 553,000 | ||
Employee Stock Option Plan Loan [Member] | 2015 Employee Stock Ownership Plan [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Shares purchased from the corporation | 600,000 | ||||
Cost of shares purchased from the corporation | $ 7,884,000 | ||||
Interest rate on ESOP loan | 3.00% | ||||
Final maturity date | Dec. 9, 2026 | ||||
ESOP Loan, frequency of periodic payment | Annual | ||||
HopFed [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Cost of shares purchased from the corporation | 633,000 | $ 647,000 | 632,000 | ||
2013 Long Term Incentive Plan [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Shares authorized to be granted under option or other stock incentive plans | 300,000 | ||||
Compensation expense | $ 164,000 | $ 106,000 | $ 135,000 | ||
2013 Long Term Incentive Plan [Member] | HopFed [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Restricted shares available from the HOPFED Bancorp | 214,786 | ||||
2013 Long Term Incentive Plan [Member] | Minimum [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Stock options vesting period | 3 years | ||||
2013 Long Term Incentive Plan [Member] | Maximum [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Stock options vesting period | 4 years | ||||
2013 Long Term Incentive Plan [Member] | Restricted Stock [Member] | |||||
Compensation Related Costs Disclosure [Line Items] | |||||
Shares authorized to be granted under option or other stock incentive plans | 15,039 | 12,753 | 11,679 | ||
Restricted stock granted by Compensation Committee, market value | $ 225,000 | $ 178,000 | $ 145,000 |
Employee Benefit Plans - Compen
Employee Benefit Plans - Compensation Expense to be Recognized (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
2019 | $ 138 |
2020 | 116 |
2021 | 24 |
2022 | 3 |
Total | $ 281 |
Esop - Summary of Shares Held b
Esop - Summary of Shares Held by Employee Stock Ownership Plan (ESOP) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Earned ESOP shares | 215,510 | 165,686 |
Unearned ESOP shares | 382,691 | 434,548 |
Total ESOP shares | 598,201 | 600,234 |
Share price at December 31, | $ 13.29 | $ 14.10 |
Fair value of unearned ESOP shares | $ 5,085,963 | $ 6,127,127 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||||||||||
Federal | $ 676 | $ 468 | |||||||||
State | 95 | 95 | $ 95 | ||||||||
Current income tax expenses | 771 | 563 | 95 | ||||||||
Deferred | |||||||||||
Federal | 296 | 1,585 | 267 | ||||||||
State | 0 | 0 | 0 | ||||||||
Deferred income taxes expenses | 296 | 1,585 | 267 | ||||||||
Income tax expense (benefit) | $ 368 | $ 180 | $ 323 | $ 196 | $ 1,159 | $ 486 | $ 368 | $ 135 | $ 1,067 | $ 2,148 | $ 362 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Expected federal income tax expense at statutory tax rate | $ 1,415 | $ 1,853 | $ 1,110 | ||||||||
Effect of nontaxable interest income | (220) | (345) | (452) | ||||||||
Effect of nontaxable bank owned life insurance income | (64) | (164) | (117) | ||||||||
Effect of Qualified Zone Academy Bond (QZAB) | (114) | ||||||||||
State taxes on income, net of federal benefit | 75 | 59 | 59 | ||||||||
Other tax credits | (129) | (243) | (128) | ||||||||
Deferred tax asset revaluation | 980 | ||||||||||
Other | (23) | ||||||||||
Non-deductible expenses | 13 | 8 | 4 | ||||||||
Income tax expense (benefit) | $ 368 | $ 180 | $ 323 | $ 196 | $ 1,159 | $ 486 | $ 368 | $ 135 | $ 1,067 | $ 2,148 | $ 362 |
Income tax rate | 15.80% | 39.40% | 11.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan loss | $ 953 | $ 1,014 |
Accrued expenses | 79 | 77 |
Net operating loss carry forward | 160 | 192 |
Tax credit carry forward | 540 | 651 |
Unrealized loss on securities available for sale | 414 | 57 |
Intangible amortization | 192 | |
Depreciation and amortization | 18 | |
Other | 147 | 77 |
Deferred tax assets Net | 2,311 | 2,260 |
Deferred tax liabilities: | ||
FHLB stock dividends | (486) | (486) |
Depreciation and amortization | (10) | |
Deferred tax liabilities, Gross, Total | (486) | (496) |
Net deferred tax asset | $ 1,825 | $ 1,764 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Operating loss carry forwards | $ 763,000 |
Operating loss carryforwards expiration year | 2034 |
Valuation allowance for deferred tax assets | $ 0 |
Unrecognized tax benefits | $ 0 |
Foreclosed Assets - Summary of
Foreclosed Assets - Summary of Foreclosed Properties Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | $ 3,369 | $ 2,397 | $ 1,736 |
Foreclosure | 383 | 4,312 | 2,263 |
Sales | (164) | (3,498) | (1,623) |
Reduction in Values | (5) | (10) | (8) |
Gain (Loss) on Sale | 15 | 168 | (10) |
Ending Balance | 3,598 | 3,369 | 2,397 |
Multi-Family [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | 1,775 | ||
Foreclosure | 1,915 | ||
Sales | (1,761) | (153) | |
Gain (Loss) on Sale | (14) | 13 | |
Ending Balance | 1,775 | ||
One-to-Four Family Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | 169 | 163 | 55 |
Foreclosure | 241 | 1,069 | 203 |
Sales | (164) | (1,237) | (77) |
Reduction in Values | (5) | (10) | (8) |
Gain (Loss) on Sale | 15 | 184 | (10) |
Ending Balance | 256 | 169 | 163 |
Non-Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | 459 | 738 | |
Foreclosure | 142 | 43 | |
Sales | (500) | (270) | |
Gain (Loss) on Sale | (2) | (9) | |
Ending Balance | 142 | 459 | |
Land [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | 3,200 | 943 | |
Foreclosure | 3,200 | 130 | |
Sales | (1,108) | ||
Gain (Loss) on Sale | 35 | ||
Ending Balance | $ 3,200 | $ 3,200 | |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Foreclosure | 15 | ||
Sales | $ (15) |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Open Loan Commitments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | $ 50,158 | $ 54,458 |
Unused Commercial Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | 45,912 | 62,910 |
Unused Home Equity Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | 31,733 | 32,701 |
Unused Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | 12,109 | 17,048 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | $ 1,046 | $ 143 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitment and Contingencies [Line Items] | |||
Initial term of employment agreements | 3 years | ||
Rental expenses | $ 121,000 | $ 130,000 | $ 127,000 |
Expense relates to data processing and related contracts | 3,168,000 | 2,884,000 | 2,942,000 |
Amount of annual cost per covered individual under first specific stop loss policy limits | 100,000 | 100,000 | 90,000 |
Amount of annual cost per covered individual under second specific stop loss policy limits | 1,800,000 | 1,700,000 | $ 1,800,000 |
Liability related to self insured medical expenses | $ 210,000 | $ 172,000 | |
Minimum [Member] | |||
Commitment and Contingencies [Line Items] | |||
Period of most guarantees | 1 year | ||
Maximum [Member] | |||
Commitment and Contingencies [Line Items] | |||
Period of most guarantees | 2 years |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimal Purchase, Lease and Rental Commitments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 308 |
2020 | 260 |
2021 | 224 |
2022 | 173 |
2023 | 22 |
Total | $ 987 |
Regulatory Matters - The Compan
Regulatory Matters - The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital to adjusted total assets, Actual Amount | $ 100,520 | $ 95,709 |
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | 36,417 | 36,137 |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount | 45,521 | 45,171 |
Total capital to risk weighted assets, Actual Amount | 105,055 | 100,535 |
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | 52,049 | 50,352 |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount | 65,061 | 62,940 |
Tier 1 capital to risk weighted assets, Actual Amount | 100,520 | 95,709 |
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | 39,037 | 37,764 |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount | 52,049 | 50,352 |
Common equity tier 1 capital to risk weighted assets, Actual Amount | 100,520 | 95,709 |
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | $ 29,277 | $ 28,323 |
Tier 1 leverage capital to adjusted total assets, Actual Ratio | 11.00% | 10.60% |
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 4.00% | 4.00% |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio | 5.00% | 5.00% |
Total capital to risk weighted assets, Actual Ratio | 16.20% | 16.00% |
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Actual Ratio | 15.50% | 15.20% |
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 6.00% | 6.00% |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital to risk weighted assets, Actual Ratio | 15.50% | 15.20% |
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 4.50% | 4.50% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital to adjusted total assets, Actual Amount | $ 99,478 | $ 95,123 |
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | 36,361 | 36,090 |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount | 45,451 | 45,112 |
Total capital to risk weighted assets, Actual Amount | 104,014 | 99,949 |
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | 51,937 | 50,314 |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount | 64,922 | 62,892 |
Tier 1 capital to risk weighted assets, Actual Amount | 99,478 | 95,123 |
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | 38,953 | 37,735 |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount | 51,937 | 50,314 |
Common equity tier 1 capital to risk weighted assets, Actual Amount | 99,478 | 95,123 |
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount | 29,215 | 28,301 |
Common equity tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount | $ 42,199 | $ 40,880 |
Tier 1 leverage capital to adjusted total assets, Actual Ratio | 10.90% | 10.50% |
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 4.00% | 4.00% |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio | 5.00% | 5.00% |
Total capital to risk weighted assets, Actual Ratio | 16.00% | 15.90% |
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Actual Ratio | 15.30% | 15.10% |
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 6.00% | 6.00% |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital to risk weighted assets, Actual Ratio | 15.30% | 15.10% |
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio | 4.50% | 4.50% |
Common equity tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio | 6.50% | 6.50% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders Equity [Line Items] | |||
Treasury stock, shares | 1,341,980 | 1,338,360 | |
Treasury stock shares purchased | 296,380 | ||
Repurchase program expiration date | Dec. 31, 2019 | ||
Common equity Tier 1 capital ratio | 15.50% | 15.20% | |
Tier 1 risk-based capital ratio | 15.50% | 15.20% | |
Total risk-based capital ratio | 16.20% | 16.00% | |
Capital conservation buffer | 1.875% | 1.25% | |
Basel Three Requirements [Member] | |||
Stockholders Equity [Line Items] | |||
Common equity Tier 1 capital ratio | 4.50% | ||
Tier 1 risk-based capital ratio | 6.00% | ||
Total risk-based capital ratio | 8.00% | ||
Tier 1 leverage ratio | 4.00% | ||
Post Capital Conservation Buffer [Member] | |||
Stockholders Equity [Line Items] | |||
Common equity Tier 1 capital ratio | 7.00% | ||
Tier 1 risk-based capital ratio | 8.50% | ||
Total risk-based capital ratio | 10.50% | ||
Capital conservation buffer | 2.50% | ||
Common Stock [Member] | |||
Stockholders Equity [Line Items] | |||
Treasury stock, shares | 1,341,980 | ||
Average price of treasury stock | $ 12.45 | ||
Treasury stock shares purchased | 3,620 | 92,224 | 160,248 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Weighted Average Common Shares (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic earnings per share: | |||||||||||
Weighted average common shares | 6,641,796 | 6,695,721 | 6,757,345 | ||||||||
Less: Average unallocated ESOP shares | (408,620) | (474,089) | (523,485) | ||||||||
Weighted average common shares | 6,266,585 | 6,211,636 | 6,142,680 | 6,188,413 | 6,202,635 | 6,236,075 | 6,228,994 | 6,218,706 | 6,233,176 | 6,221,632 | 6,233,860 |
Dilutive effect of stock options | 0 | 0 | 0 | ||||||||
Weighted average common shares - diluted | 6,266,585 | 6,211,636 | 6,142,680 | 6,188,413 | 6,202,635 | 6,236,075 | 6,228,994 | 6,218,706 | 6,233,176 | 6,221,632 | 6,233,860 |
Condensed Parent Company Only_3
Condensed Parent Company Only Financial Statements - Summary of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2003 |
Assets: | |||||
Cash | $ 36,339 | $ 37,965 | |||
Total assets | 931,399 | 917,510 | |||
Liabilities: | |||||
Subordinated debentures | 10,310 | 10,310 | $ 10,310 | ||
Total liabilities | 840,613 | 830,098 | |||
Equity: | |||||
Preferred stock | |||||
Common stock | 80 | 80 | |||
Additional paid-capital | 59,105 | 58,825 | |||
Retained earnings | 55,134 | 51,162 | |||
Treasury stock - common stock | (16,706) | (16,655) | |||
Unearned ESOP shares | (5,268) | (5,901) | |||
Accumulated other comprehensive loss | (1,559) | (99) | |||
Total equity | 90,786 | 87,412 | $ 86,428 | $ 87,630 | |
Total liabilities and equity | 931,399 | 917,510 | |||
HopFed [Member] | |||||
Assets: | |||||
Cash | 1,086 | 862 | |||
Investment in subsidiary | 99,745 | 96,826 | |||
Prepaid expenses and other assets | 871 | 1,109 | |||
Total assets | 101,702 | 98,797 | |||
Liabilities: | |||||
Dividend payable - common | 463 | 353 | |||
Interest payable | 141 | 112 | |||
Other liabilities | 2 | 610 | |||
Subordinated debentures | 10,310 | 10,310 | |||
Total liabilities | 10,916 | 11,385 | |||
Equity: | |||||
Preferred stock | |||||
Common stock | 80 | 80 | |||
Additional paid-capital | 59,105 | 58,825 | |||
Retained earnings | 55,134 | 51,162 | |||
Treasury stock - common stock | (16,706) | (16,655) | |||
Unearned ESOP shares | (5,268) | (5,901) | |||
Accumulated other comprehensive loss | (1,559) | (99) | |||
Total equity | 90,786 | 87,412 | |||
Total liabilities and equity | $ 101,702 | $ 98,797 |
Condensed Parent Company Only_4
Condensed Parent Company Only Financial Statements - Summary of Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income: | |||||||||||
Total interest and dividend income | $ 9,474 | $ 9,344 | $ 9,115 | $ 8,798 | $ 8,541 | $ 8,635 | $ 8,419 | $ 8,160 | $ 36,731 | $ 33,755 | $ 31,727 |
Interest expense | 2,496 | 2,231 | 1,835 | 1,612 | 1,566 | 1,537 | 1,454 | 1,406 | 8,174 | 5,963 | 5,299 |
Non-interest expenses | 6,724 | 7,512 | 7,574 | 7,540 | 7,806 | 7,168 | 7,233 | 7,689 | 29,350 | 29,896 | 29,856 |
Income tax benefits | $ 368 | $ 180 | $ 323 | $ 196 | $ 1,159 | $ 486 | $ 368 | $ 135 | 1,067 | 2,148 | 362 |
HopFed [Member] | |||||||||||
Interest and dividend income: | |||||||||||
Dividend income from subsidiary Bank | 2,500 | 2,500 | 2,000 | ||||||||
Total interest and dividend income | 2,500 | 2,500 | 2,000 | ||||||||
Interest expense | 538 | 436 | 388 | ||||||||
Non-interest expenses | 964 | 1,538 | 391 | ||||||||
Total expenses | 1,502 | 1,974 | 779 | ||||||||
Income before income taxes and equity in undistributed earnings of subsidiary | 998 | 526 | 1,221 | ||||||||
Income tax benefits | (291) | (545) | (319) | ||||||||
Income before equity in undistributed earnings of subsidiary | 1,289 | 1,071 | 1,540 | ||||||||
Equity in earnings of subsidiary | 4,380 | 2,230 | 1,364 | ||||||||
Income available to common shareholders | $ 5,669 | $ 3,301 | $ 2,904 |
Condensed Parent Company Only_5
Condensed Parent Company Only Financial Statements - Summary of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||||||||||
Net income | $ (1,618) | $ (1,240) | $ (1,685) | $ (1,126) | $ 178 | $ (1,403) | $ (1,141) | $ (935) | $ (5,669) | $ (3,301) | $ (2,904) |
Cash flows from financing activities: | |||||||||||
Purchase of treasury stock | (51) | (1,308) | (1,876) | ||||||||
Proceeds on ESOP loan | 633 | 647 | 632 | ||||||||
Dividends paid on common stock | (1,697) | (1,174) | (993) | ||||||||
Increase (decrease) in cash and cash equivalents | 6,974 | 19,327 | (28,949) | ||||||||
Cash and cash equivalents, beginning of period | 45,076 | 25,749 | 45,076 | 25,749 | 54,698 | ||||||
Cash and cash equivalents, end of period | 52,050 | 45,076 | 52,050 | 45,076 | 25,749 | ||||||
HopFed [Member] | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | 5,669 | 3,301 | 2,904 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in undistributed earnings of subsidiary | (4,380) | (2,230) | (1,364) | ||||||||
Amortization of restricted stock | 164 | 106 | 135 | ||||||||
Increase (decrease) in: | |||||||||||
Current income taxes payable | 187 | 330 | (49) | ||||||||
Accrued expenses | (301) | 106 | (392) | ||||||||
Net cash provided by operating activities | 1,339 | 1,613 | 1,234 | ||||||||
Cash flows from financing activities: | |||||||||||
Purchase of treasury stock | (51) | (1,308) | (1,876) | ||||||||
Proceeds on ESOP loan | 633 | 647 | 632 | ||||||||
Dividends paid on common stock | (1,697) | (1,174) | (993) | ||||||||
Net cash used in financing activities | (1,115) | (1,835) | (2,237) | ||||||||
Increase (decrease) in cash and cash equivalents | 224 | (222) | (1,003) | ||||||||
Cash and cash equivalents, beginning of period | $ 862 | $ 1,084 | 862 | 1,084 | 2,087 | ||||||
Cash and cash equivalents, end of period | $ 1,086 | $ 862 | $ 1,086 | $ 862 | $ 1,084 |
Investments in Affiliated Com_3
Investments in Affiliated Companies - Additional Information (Detail) | Dec. 31, 2018 |
HopFed Capital Trust [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | |
Percent of common stock of HopFed Bancorp, Inc. | 100.00% |
Investments in Affiliated Com_4
Investments in Affiliated Companies - Summary Balance Sheets (Detail) - Majority-Owned Subsidiary, Unconsolidated [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Asset - investment in subordinated debentures issued by HopFed Bancorp, Inc. | $ 10,310 | $ 10,310 |
Liabilities | 0 | 0 |
Stockholders' equity: | ||
Total stockholder's equity | 10,310 | 10,310 |
Total liabilities and stockholder's equity | 10,310 | 10,310 |
Trust Preferred Securities [Member] | ||
Stockholders' equity: | ||
Total stockholder's equity | 10,000 | 10,000 |
Common Stock [Member] | ||
Stockholders' equity: | ||
Total stockholder's equity | $ 310 | $ 310 |
Investments in Affiliated Com_5
Investments in Affiliated Companies - Summary Balance Sheets (Parenthetical) (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Common Stock [Member] | ||
Percent of common stock of HopFed Bancorp, Inc. | 100.00% | 100.00% |
Investments in Affiliated Com_6
Investments in Affiliated Companies - Summary Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Income - interest income from subordinated debentures issued by HopFed Bancorp, Inc. | $ 9,474 | $ 9,344 | $ 9,115 | $ 8,798 | $ 8,541 | $ 8,635 | $ 8,419 | $ 8,160 | $ 36,731 | $ 33,755 | $ 31,727 |
Majority-Owned Subsidiary, Unconsolidated [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Income - interest income from subordinated debentures issued by HopFed Bancorp, Inc. | 555 | 449 | |||||||||
Net income | $ 555 | $ 449 |
Investments in Affiliated Com_7
Investments in Affiliated Companies - Summary Statements of Stockholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends: | ||
Total retained earnings | $ 55,134 | $ 51,162 |
Majority-Owned Subsidiary, Unconsolidated [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning balances | 10,310 | |
Retained earnings: | ||
Net income | 555 | 449 |
Dividends: | ||
Trust preferred securities | (538) | |
Common dividends paid to HopFed Bancorp, Inc. | (17) | |
Total retained earnings | 0 | |
Ending balances | 10,310 | 10,310 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Trust Preferred Securities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning balances | 10,000 | |
Dividends: | ||
Total retained earnings | 0 | |
Ending balances | 10,000 | 10,000 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Common Stock [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning balances | 310 | |
Dividends: | ||
Total retained earnings | 0 | |
Ending balances | 310 | $ 310 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Retained Earnings [Member] | ||
Retained earnings: | ||
Net income | 555 | |
Dividends: | ||
Trust preferred securities | (538) | |
Common dividends paid to HopFed Bancorp, Inc. | (17) | |
Total retained earnings | $ 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations - Summarized Unaudited Quarterly Operating Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 9,474 | $ 9,344 | $ 9,115 | $ 8,798 | $ 8,541 | $ 8,635 | $ 8,419 | $ 8,160 | $ 36,731 | $ 33,755 | $ 31,727 |
Interest expense | 2,496 | 2,231 | 1,835 | 1,612 | 1,566 | 1,537 | 1,454 | 1,406 | 8,174 | 5,963 | 5,299 |
Net interest income | 6,978 | 7,113 | 7,280 | 7,186 | 6,975 | 7,098 | 6,965 | 6,754 | 28,557 | 27,792 | 26,428 |
Provision for loan losses | 84 | 74 | 62 | 68 | 56 | 71 | 59 | 291 | 288 | 477 | 1,241 |
Net interest income after provision for loan losses | 6,894 | 7,039 | 7,218 | 7,118 | 6,919 | 7,027 | 6,906 | 6,463 | 28,269 | 27,315 | 25,187 |
Noninterest income | 1,816 | 1,893 | 2,364 | 1,744 | 1,868 | 2,030 | 1,836 | 2,296 | 7,817 | 8,030 | 7,935 |
Noninterest expense | 6,724 | 7,512 | 7,574 | 7,540 | 7,806 | 7,168 | 7,233 | 7,689 | 29,350 | 29,896 | 29,856 |
Income before income taxes | 1,986 | 1,420 | 2,008 | 1,322 | 981 | 1,889 | 1,509 | 1,070 | 6,736 | 5,449 | 3,266 |
Income taxes | 368 | 180 | 323 | 196 | 1,159 | 486 | 368 | 135 | 1,067 | 2,148 | 362 |
Net income | $ 1,618 | $ 1,240 | $ 1,685 | $ 1,126 | $ (178) | $ 1,403 | $ 1,141 | $ 935 | $ 5,669 | $ 3,301 | $ 2,904 |
Basic earnings (loss) per share | $ 0.26 | $ 0.20 | $ 0.28 | $ 0.18 | $ (0.03) | $ 0.22 | $ 0.18 | $ 0.15 | $ 0.91 | $ 0.53 | $ 0.47 |
Diluted earnings (loss) per share | $ 0.26 | $ 0.20 | $ 0.28 | $ 0.18 | $ (0.03) | $ 0.22 | $ 0.18 | $ 0.15 | $ 0.91 | $ 0.53 | $ 0.47 |
Weighted average shares outstanding: | |||||||||||
Basic | 6,266,585 | 6,211,636 | 6,142,680 | 6,188,413 | 6,202,635 | 6,236,075 | 6,228,994 | 6,218,706 | 6,233,176 | 6,221,632 | 6,233,860 |
Diluted | 6,266,585 | 6,211,636 | 6,142,680 | 6,188,413 | 6,202,635 | 6,236,075 | 6,228,994 | 6,218,706 | 6,233,176 | 6,221,632 | 6,233,860 |
Comprehensive Income - Other Co
Comprehensive Income - Other Comprehensive (Loss) Income Included in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized holding gains (losses) on: | |||
Available for sale securities, Pre-Tax | $ (1,589) | $ (585) | $ (2,048) |
Available for sale securities - OTTI, Pre-Tax | 294 | (224) | (258) |
Reclassification adjustments for gains on available for sale securities, Pre-Tax | (553) | (169) | (612) |
Other comprehensive income, Pre-Tax | (1,848) | (978) | (2,918) |
Available for sale securities, tax benefit (expense) | 333 | 198 | 697 |
Available for sale securities - OTTI, tax benefit (expense) | (61) | 76 | 88 |
Reclassification adjustments for gains on available for sale securities, tax benefit (expense) | 116 | 57 | 207 |
Other comprehensive income, tax benefit (expense) | 388 | 331 | 992 |
Available for sale securities, net of tax | (1,256) | (387) | (1,351) |
Available for sale securities - OTTI, net of tax | 233 | (148) | (170) |
Reclassification adjustments for gains on available for sale securities, net of tax | (437) | (112) | (405) |
Total other comprehensive loss | $ (1,460) | $ (647) | $ (1,926) |