Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CENTRAL FEDERAL CORP | ||
Entity Central Index Key | 1,070,680 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 21.8 | ||
Entity Common Stock, Shares Outstanding | 16,294,910 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 57,941 | $ 25,895 |
Interest-bearing deposits in other financial institutions | 100 | |
Securities available for sale | 14,058 | 9,368 |
Loans held for sale, at fair value | 2,812 | 889 |
Loans and leases, net of allowance of $6,925 and $6,620 | 346,125 | 297,064 |
FHLB stock | 1,942 | 1,942 |
Foreclosed assets, net | 204 | 1,636 |
Premises and equipment, net | 3,429 | 3,609 |
Bank owned life insurance | 4,930 | 4,797 |
Accrued interest receivable and other assets | 4,571 | 6,093 |
Total assets | 436,112 | 351,293 |
Deposits | ||
Noninterest bearing | 72,779 | 42,926 |
Interest bearing | 302,585 | 247,541 |
Total deposits | 375,364 | 290,467 |
FHLB advances | 13,500 | 14,500 |
Advances by borrowers for taxes and insurance | 408 | 656 |
Accrued interest payable and other liabilities | 2,393 | 2,203 |
Subordinated debentures | 5,155 | 5,155 |
Total liabilities | 396,820 | 312,981 |
Commitments and Contingent Liabilities | ||
Stockholders' equity | ||
Common stock, $.01 par value; shares authorized: 50,000,000; shares issued: 16,427,917 in 2016 and 16,135,917 in 2015 | 164 | 161 |
Series B Preferred stock, $0.01 par value; 480,000 shares authorized; 480,000 issued at December 31, 2016 and December 31, 2015 | 5 | 5 |
Additional paid-in capital | 60,163 | 59,937 |
Accumulated deficit | (17,767) | (18,537) |
Accumulated other comprehensive income (loss) | 2 | (9) |
Treasury stock, at cost; 133,007 and 111,707 shares of common stock | (3,275) | (3,245) |
Total stockholders' equity | 39,292 | 38,312 |
Total liabilities and stockholder's equity | $ 436,112 | $ 351,293 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loans, allowance | $ 6,925 | $ 6,620 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 16,427,917 | 16,135,917 |
Treasury stock, shares | 133,007 | 111,707 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, share authorized | 480,000 | 480,000 |
Preferred stock, share issued | 480,000 | 480,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income | ||
Loans and leases, including fees | $ 14,050,000 | $ 12,126,000 |
Securities | 125,000 | 131,000 |
FHLB stock dividends | 78,000 | 78,000 |
Federal funds sold and other | 156,000 | 70,000 |
Total interest and dividend income | 14,409,000 | 12,405,000 |
Interest expense | ||
Deposits | 2,657,000 | 2,212,000 |
FHLB advances and other debt | 254,000 | 232,000 |
Subordinated debentures | 185,000 | 164,000 |
Total interest expense | 3,096,000 | 2,608,000 |
Net interest income | 11,313,000 | 9,797,000 |
Provision for loan losses and leases | 230,000 | 250,000 |
Net interest income after provision for loan and lease losses | 11,083,000 | 9,547,000 |
Noninterest income | ||
Service charges on deposit accounts | 741,000 | 491,000 |
Net gains on sales of loans | 134,000 | 325,000 |
Net loss on sales of securitites | (12,000) | |
Earnings on bank owned life insurance | 133,000 | 132,000 |
Other | 169,000 | 412,000 |
Total noninterest income | 1,177,000 | 1,348,000 |
Noninterest expense | ||
Salaries and employee benefits | 4,965,000 | 4,753,000 |
Occupancy and equipment | 579,000 | 533,000 |
Data processing | 1,116,000 | 1,054,000 |
Franchise and other taxes | 358,000 | 318,000 |
Professional fees | 1,148,000 | 956,000 |
Director fees | 228,000 | 150,000 |
Postage, printing and supplies | 168,000 | 198,000 |
Advertising and promotion | 125,000 | 145,000 |
Telephone | 123,000 | 119,000 |
Loan expenses | 141,000 | 207,000 |
Foreclosed assets, net | 65,000 | 137,000 |
Depreciation | 211,000 | 211,000 |
FDIC premiums | 222,000 | 421,000 |
Regulatory assessment | 62,000 | 131,000 |
Other insurance | 109,000 | 121,000 |
Other | 203,000 | 157,000 |
Total noninterest expense | 9,823,000 | 9,611,000 |
Income before income taxes | 2,437,000 | 1,284,000 |
Income tax expense (benefit) | 810,000 | (3,193,000) |
Net income | 1,627,000 | 4,477,000 |
Dividends on Series B preferred stock and accretion of discount | (857,000) | (857,000) |
Net income attributable to common stockholders | $ 770,000 | $ 3,620,000 |
Earnings per common share: | ||
Basic | $ 0.05 | $ 0.23 |
Diluted | $ 0.05 | $ 0.20 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net income | $ 1,627 | $ 4,477 |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) arising during the period related to investment securities available for sale, net of tax of $1 and $0: | 11 | (72) |
Less: reclassification adjustment for net losses realized during the period on investment securities available for sale, net of tax of $0 and $0: | 12 | |
Other comprehensive income (loss), net of tax | 11 | (60) |
Comprehensive income | $ 1,638 | $ 4,417 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Unrealized holding gains (losses) arising during the period related to investment securities available for sale, tax | $ 1 | $ 0 |
Reclassification adjustment for net losses realized during the period on investment securities available for sale, tax | $ 0 | $ 0 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Series B Preferred Stock [Member] | Total |
Balance at Dec. 31, 2014 | $ 159 | $ 59,696 | $ (22,157) | $ 51 | $ (3,245) | $ 5 | $ 34,509 |
Net income | 4,477 | 4,477 | |||||
Other comprehensive income (loss) | (60) | (60) | |||||
Issuance of stock based incentive plan shares, net of forfeitures | 2 | 2 | |||||
Restricted stock expense, net of forfeitures | 15 | 15 | |||||
Stock option expense, net of forfeitures | 119 | 119 | |||||
Cash dividends declared on Series B preferred stock and accretion of discount | 107 | (857) | (750) | ||||
Balance at Dec. 31, 2015 | 161 | 59,937 | (18,537) | (9) | (3,245) | 5 | 38,312 |
Net income | 1,627 | 1,627 | |||||
Other comprehensive income (loss) | 11 | 11 | |||||
Issuance of stock based incentive plan shares, net of forfeitures | 3 | (3) | |||||
Restricted stock expense, net of forfeitures | 96 | 96 | |||||
Stock option expense, net of forfeitures | 26 | 26 | |||||
Purchase of treasury shares | (30) | (30) | |||||
Cash dividends declared on Series B preferred stock and accretion of discount | 107 | (857) | (750) | ||||
Balance at Dec. 31, 2016 | $ 164 | $ 60,163 | $ (17,767) | $ 2 | $ (3,275) | $ 5 | $ 39,292 |
Consolidated Statements Of Cha8
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements Of Changes In Stockholders' Equity [Abstract] | ||
Stock based incentive plan, shares issued | 292,000 | 200,500 |
Treasury Stock, Shares, Acquired | 21,300 |
Consolidated Statements Of Cha9
Consolidated Statements Of Changes Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements Of Changes Of Cash Flows [Abstract] | ||
Net income | $ 1,627 | $ 4,477 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses and leases | 230 | 250 |
Depreciation | 211 | 211 |
Amortization, net | (66) | 25 |
Deferred income tax (benefit) | 623 | (3,251) |
Net loss on sales of securities | 12 | |
Originations of loans held for sale | (24,219) | (41,617) |
Proceeds from sale of loans held for sale | 22,430 | 44,830 |
Net gains on sales of loans | (134) | (325) |
Loss on disposal of premises and equipment | 16 | |
Gain on sale of foreclosed assets | (4) | |
Earnings on bank owned life insurance | (133) | (132) |
Stock-based compensation expense | 122 | 134 |
Net change in: | ||
Accrued interest receivable and other assets | 899 | 993 |
Accrued interest payable and other liabilities | 190 | (505) |
Net cash from operating activities | 1,792 | 5,102 |
Cash flows from investing activities: | ||
Net (increase) decrease in interest-bearing deposits in other financial institutions | (100) | 494 |
Available-for-sale securities: | ||
Maturities, prepayments and calls | 1,261 | 5,509 |
Purchases | (5,981) | (4,573) |
Loan and lease originations and payments, net | (49,056) | (44,531) |
Proceeds from the sale of loans | 1,124 | 4,099 |
Additions to premises and equipment | (47) | (45) |
Proceeds from the sale of foreclosed assets | 200 | |
Net cash used by investing activities | (52,599) | (39,047) |
Cash flows from financing activities: | ||
Net change in deposits | 84,881 | 32,128 |
Proceeds from FHLB advances | 37,700 | 2,500 |
Repayments on FHLB advances | (38,700) | (2,500) |
Net change in advances by borrowers for taxes and insurance | (248) | 255 |
Cash dividends paid on Series B preferred stock | (750) | (750) |
Purchase of treasury shares | (30) | |
Net cash from financing activities | 82,853 | 31,633 |
Net change in cash and cash equivalents | 32,046 | (2,312) |
Beginning cash and cash equivalents | 25,895 | 28,207 |
Ending cash and cash equivalents | 57,941 | 25,895 |
Supplemental cash flow information: | ||
Interest paid | 3,061 | 2,612 |
Income taxes paid | 70 | |
Supplemental noncash disclosures: | ||
Transfers from loans to repossessed assets | 204 | |
Loans issued to finance the sale of repossessed assets | 1,440 | |
Loans transferred from held for sale to portfolio | 1,833 | |
Loans transferred from portfolio to held for sale | 1,561 | |
Dividends payable on Series B preferred stock | $ 187 | $ 187 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation : The consolidated financial statements include Central Federal Corporation (the “Holding Company”) and its wholly-owned subsidiary, CFBank , National Association (CFBank) . On December 1, 2016, CFBank converted from a federal savings institution to a national bank. The Holding Company and CFBank are sometimes collectively referred to herin as the “Company”. Intercompany transactions and balances are eliminated in consolidation. CFBank provides financial services through its four full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio, and through its agency office in Woodmere, Ohio. Its primary deposit products are commercial and retail checking, savings, money market and term certificate accounts. Its primary lending products are commercial and commercial real estate, residential mortgages and installment loans. There are no significant concentrations of loans to any one industry or customer segment. However, our customers’ ability to repay their loans is dependent on general economic conditions and the real estate values in their geographic areas. Use of Estimates : To prepare financial statements in conformity with U.S. generally accepted accounting principles (GAAP), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan and lease losses (ALLL), deferred tax assets and fair values of financial instruments are particularly subject to change. Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions and borrowings with original maturities under 90 days. Interest-Bearing Deposits in Other Financial Institutions : Interest ‑bearing deposits in other financial institutions mature in April, 2019 and are carried at cost. As of December 31, 201 6 , there was $100 in an interest-bearing deposit in other financial institutions. Securities : Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Interest income includes amortization of purchase premium or accretion of discount. Premiums and discounts on securities are amortized or accreted on the level-yield method without anticipating prepayments, except for mortgage-backed securities and collateralized mortgage obligations where prepayments are anticipated based on industry payment trends. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or will more likely than not be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Loans Held for Sale : Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing rights when mortgage loans held for sale are sold with servicing rights retained. Loans originated as construction loans, that were subsequently transferred to held for sale, are carried at the lower of cost or market. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Loans and Leases : Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, adjusted for purchase premiums and discounts, deferred loan fees and costs and an allowance for loan and lease losses (ALLL). Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level ‑yield method without anticipating prepayments. The accrual of interest income on all classes of loans, except other consumer loans, is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Other consumer loans are typically charged off no later than 90 days past due. Past due status is based on the contractual terms of the loan for all classes of loans. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Commercial, multi-family residential real estate loans and commercial real estate loans placed on nonaccrual status are individually classified as impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income in the period in which it is placed in a nonaccrual status. Interest received on such loans is accounted for on the cash-basis or cost ‑recovery method, until qualifying for return to accrual status. Loans are considered for return to accrual status provided all the principal and interest amounts that are contractually due are brought current, there is a current and well documented credit analysis, there is reasonable assurance of repayment of principal and interest, and the customer has demonstrated sustained, amortizing payment performance of at least six months. Concentration of Credit Risk : Most of the Company’s primary business activity is with customers located within the Ohio counties of Columbiana, Franklin, Summit, Cuyahoga and contiguous counties. Therefore, the Company’s exposure to credit risk can be affected by changes in the economies within these counties. Although these counties are the Company’s primary market area for loans, the Company originates residential and commercial real estate loans throughout the United States. Allowance for Loan and Lease Losses (ALLL) : The ALLL is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that CFBank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans within any loan class for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (TDRs) and classified as impaired. Factors considered by management in determining impairment for all loan classes include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. All loans within the commercial, multi-family residential and commercial real estate segments, regardless of size, and loans of all other classes with balances over $250 are individually evaluated for impairment when they are 90 days past due, or earlier than 90 days past due if information regarding the payment capacity of the borrower indicates that payment in full according to the loan terms is doubtful. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral, less costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and single-family residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. TDRs of all classes of loans are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using each loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. If the payment of the loan is dependent on the sale of the collateral, then costs to liquidate the collateral are included when determining the impairment. For TDRs that subsequently default, the amount of reserve is determined in accordance with the accounting policy for the ALLL. Interest income on all classes of impaired loans that are on nonaccrual status is recognized in accordance with the accounting policy for nonaccrual loans. Cash receipts on all classes of impaired loans that are on nonaccrual status are generally applied to the principal balance outstanding. Interest income on all classes of impaired loans that are not on nonaccrual status is recognized on the accrual method. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. The general reserve component covers non ‑impaired loans of all classes and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by loan class and is based on the actual loss history experienced by the Company over a three-year period. The general component is calculated based on CFBank’s loan balances and actual historical three-year historical loss rates. For loans with little or no actual loss experience, industry estimates are used based on loan segment. This actual loss experience is supplemented with other economic and judgmental factors based on the risks present for each loan class. These economic and judgmental factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: commercial loans ; single-family residential real estate loans; multi-family residential real estate loans; commercial real estate loans; construction loans; home equity lines of credit; and other consumer loans. A description of each segment of the loan portfolio, along with the risk characteristics of each segment , is included below . Commercial loans: Commercial loans include loans to businesses generally located within our primary market area. Those loans are generally secured by business equipment, inventory, accounts receivable and other business assets. In underwriting commercial loans, we consider the net operating income of the borrower , the debt service ratio and the financial strength, expertise and credit history of the business owners and/or guarantors. Because payments on commercial loans are dependent on successful operation of the business enterprise, repayment of such loans may be subject to a greater extent to adverse conditions in the economy. We seek to mitigate these risks through underwriting policies which require such loans to be qualified at origination on the basis of the borrower ’s financial performance and the financial strength of the business owners and/or guarantors. Single-family residential real estate loans: Single-family residential real estate loans include permanent conventional mortgage loans secured by single-family residences located within and outside of our primary market area. Credit approval for single-family residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment and an established credit record. Our policy is to originate single-family residential real estate loans for portfolio in amounts up to 85% of the lower of the appraised value or the purchase price of the property securing the loan, without requiring private mortgage insurance. Loans in excess of 85% of the lower of the appraised value or purchase price of the property securing the loan require private mortgage insurance. CFBank has not engaged in subprime lending, used option adjustable-rate mortgage products or made loans with initial teaser rates. Multi-family residential real estate loans: Multi-family residential real estate loans include loans secured by apartment buildings, condominiums and multi-family residential houses generally located within our primary market area. Underwriting policies provide that multi-family residential real estate loans may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting multi-family residential real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed-rate and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by multi-family residential properties are dependent on successful operation or management of the properties, repayment of multi-family residential real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate multi-family residential real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate multi-family residential real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate multi-family residential real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Commercial real estate loans: Commercial real estate loans include loans secured by owner occupied and non-owner occupied properties used for business purposes, such as manufacturing facilities, office buildings or retail facilities generally located within our primary market area. Underwriting policies provide that commercial real estate loans may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting commercial real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by commercial real estate properties are dependent on successful operation or management of the properties, repayment of commercial real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate commercial real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate commercial real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate commercial real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Construction loans: Construction loans include loans to finance the construction of residential and commercial properties generally located within our primary market area. Construction loans are fixed-rate or adjustable-rate loans which may convert to permanent loans with maturities of up to 30 years. Our policies provide that construction loans may be made in amounts up to 80% of the appraised value of the property, and an independent appraisal of the property is required. Loan proceeds are disbursed in increments as construction progresses and as inspections warrant, and regular inspections are required to monitor the progress of construction. In underwriting construction loans, we consider the property owner’s and/or guarantor’s financial strength, expertise and credit history. Construction financing is considered to involve a higher degree of credit risk than long-term financing on improved, owner occupied real estate. Risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value at completion of construction or development compared to the estimated cost (including interest) of construction. If the estimate of value proves to be inaccurate, we may be confronted with a project, when completed, having a value which is insufficient to assure full repayment. We attempt to reduce such risks on construction loans through inspections of construction progress on the property and by requiring personal guarantees and reviewing current personal financial statements and tax returns, as well as other projects of the developer. Home equity lines of credit: Home equity lines of credit include both loans we originate for portfolio and purchased loans. We originate home equity lines of credit to customers generally within our primary market area. Home equity lines of credit are variable rate loans and the interest rate adjusts monthly at various margins above the prime rate of interest as disclosed in The Wall Street Journal. The margin is based on certain factors including the loan balance, value of collateral, election of auto-payment, and the borrower’s FICO® score. The amount of the line is based on the borrower’s credit, income and equity in the home. When combined with the balance of the prior mortgage liens, these lines generally may not exceed 89.9% of the appraised value of the property at the time of the loan commitment. The lines are secured by a subordinate lien on the underlying real estate and are, therefore, vulnerable to declines in property values in the geographic areas where the properties are located. Credit approval for home equity lines of credit requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral. Collectability of home equity lines of credit are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. In 2005 and 2006, we purchased home equity lines of credit collateralized by properties located throughout the United States. The purchased home equity lines of credit may present higher risk than the home equity lines of credit we originate for our portfolio as they include properties in geographic areas that have experienced significant declines in housing values, such as California, Florida and Virginia. We continue to monitor collateral values and borrower FICO® scores on both purchased and portfolio loans and, when the situation warrants, have frozen the lines of credit. Other consumer loans: Other consumer loans include closed-end home equity, home improvement, and auto and credit card loans to consumers generally located within our primary market area. Credit approval for other consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. CFBank’s charge-off policy for commercial loans, single-family residential real estate loans, multi-family residential real estate loans, commercial real estate loans, construction loans and home equity lines of credit requires management to record a specific reserve or charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be a collateral shortfall related to the estimated value of the collateral securing the loan. Other consumer loans are typically charged off no later than 90 days past due. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales when control over the assets has 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. Foreclosed Assets : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, an adjustment is recorded through expense. Operating costs after acquisition are expensed. Joint Ventures: The Holding Company contributed funds into a series of joint ventures (equity stake) for the purpose of allocating excess liquidity into higher earning assets while diversifying its revenue sources. The funding for the joint ventures is related to shorter term operating activities and is related to the development of single family real estate in the form of condominiums. Income is recognized based on a rate of return on the outstanding investment balance. As units are sold, the Holding Company receives an additional incentive payment; the incentive payment is recognized as income. The balance outstanding in joint ventures at December 31, 201 6 and December 31, 201 5 was $325 and $1,285 , respectively. Income recognized on the joint ventures was $100 and $265 , respectively, for 201 6 and 201 5 . Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight ‑line method with useful lives ranging from 3 to 40 years. Furniture, fixtures and equipment are depreciated using the straight ‑line method with useful lives ranging from 2 to 25 years. Leasehold improvements are depreciated straight-line over the shorter of the useful life or the lease term. Federal Home Loan Bank (FHLB) stock: CFBank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Bank Owned Life Insurance : CFBank purchased life insurance policies on certain directors and employees in 2002. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Loan Commitments and Related Financial Instruments : Financial instruments include off ‑balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, and fees associated with origination are booked to non-interest income at the origination date. Derivatives : Derivative financial instruments are recognized as assets or liabilities at fair value. The Company's derivatives consist mainly of interest rate swap agreements, which are used as part of its asset liability management program to help manage interest rate risk. The Company does not use derivatives for trading purposes. The derivative transactions are considered instruments with no hedging designation, otherwise known as stand-alone derivatives. Changes in the fair value of the derivatives are reported currently in earnings, as other noninterest income. Mortgage Banking Derivatives : Commitments to fund mortgage loans to be sold into the secondary market, otherwise known as interest rate locks, are accounted for as free standing derivatives. Fair values of these mortgage derivatives are based on anticipated gains on the underlying loans. Changes in the fair values of these derivatives are included in net gains on sales of loans. Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to directors and employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the required service period for each separately vesting portion of the award. Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A full valuation allowance was recorded in 2009 to reduce the carrying amount of the Company’s net deferred tax asset to zero. This valuation allowance was reversed in the fourth quarter of 2015. See Note 14 – Income Taxes. 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 realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest related to income tax matters as interest expense and penalties related to income tax matters as other noninterest expense. Retirement Plans : Pension expense is the amount of annual contributions by the Company to the multi-employer contributory trusteed pension plan. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Supplemental retirement plan expense allocates the benefits over years of service. Reverse Stock Split : Reclassifications did not impact prior period net loss or total stockholders' equity. On May 4, 2012, the Company completed a 1 -for-5 reverse stock split, whereby every 5 shares of the Company’s common stock were reclassified into one share of common stock. All share and per share amounts for all periods presented have been adjusted to reflect the reverse split as though it had occurred prior to the earliest period presented. Earnings Per Common Share : Basic earnings per common share is net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are restated for all reverse stock splits through the date of issuance of the financial statements. Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, which are also recognized as a separate component of equity. Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements. See Note 24 – Contingent Liabilities. Restrictions on Cash : Cash on hand or on deposit with the Federal Reserve Bank (FRB) is required to meet regulatory reserve and clearing requirements. The reserve requirement at December 31, 2016 was $267 . Cash on deposit with the FHLB includes $3,300 pledged as collateral for FHLB advances. Equity : Treasury stock is carried at cost. The carrying value of preferred stock and the common stock warrant is based on allocation of issuance proceeds, net of issuance costs, in proportion to their |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | NOTE 2- REGULATORY MATTERS Regulatory Matters : From May 2011 until 2014, the Holding Company and CFBank each were subject to Cease and Desist Orders (the “Holding Company Order” and the “CFBank Order”, respectively, and collectively, the “Orders”) with the Federal Reserve Board (the “FRB”), as successor to the Office of Thrift Supervision (the “OTS”) as the primary regulator of the Holding Company and CFBank. The Orders imposed significant directives applicable to the Holding Company and CFBank, including requirements that we maintain heightened capital levels, reduce the level of our classified and criticized assets, achieve growth and operating metrics in line with an approved business plan, and comply with restrictions on brokered deposits and on certain types of lending and prohibitions on dividends and repurchases of our capital stock. Effective as of January 23, 2014, the OCC released and terminated the CFBank Order based upon the improved capital position of CFBank, among other factors. Notwithstanding the release of the CFBank Order, CFBank was required to continue to maintain a minimum Tier 1 Leverage Capital Ratio of 8% and a Total Risk-based Capital to Risk-Weighted Assets ratio of 12% until December 23, 2015, and CFBank further committed to the OCC to adhere to certain prudent practices. The foregoing commitments remained in place until December 23, 2015. On May 15, 2014, the FRB announced the termination of the Holding Company Order, effective as of May 9, 2014. Notwithstanding the termination of the Holding Company Order, the Holding Company was required to continue to adhere to certain requirements and restrictions based on commitments made to the FRB in connection with the termination of the Holding Company Order. These commitments required the Holding Company, among other things, to continue to implement certain actions in accordance with the capital plan previously submitted to the FRB; not declare or pay dividends on its stock, purchase or redeem its stock, or accept dividends or other capital distributions from CFBank without the prior written approval of the FRB; not incur, increase or guarantee any debt without the prior written consent of the FRB; and provide prior written notice to the FRB with respect to certain changes in directors and senior executive officers. The foregoing commitments remained in place until January 8, 2016. Although we are no longer subject to the Orders or the regulatory commitments made following the release of the Orders, we remain subject to extensive supervision and regulation by our regulators and it is possible that regulatory compliance expenses could continue to have a material adverse impact on us in the future. Dividend Restrictions : The ability of the Holding Company to pay dividends on its common stock and Series B Preferred Stock is generally dependent upon the receipt of dividends and other distributions from CFBank. The Holding Company is a legal entity that is separate and distinct from CFBank, which has no obligation to make any dividends or other funds available for the payment of dividends by the Holding Company. The Holding Company also is subject to various legal and regulatory policies and guidelines impacting the Holding Company’s ability to pay dividends on its stock. In addition, the Holding Company’s ability to pay dividends on its stock is conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Finally, so long as the Company’s Series B Preferred Stock remains outstanding, the Holding Company will be prohibited from paying dividends on (other than dividends payable solely in shares) the Company’s common stock, for the then-current dividend period, unless full dividends on the Series B Preferred Stock have been paid or set aside for payment. Dividends on the Series B Preferred Stock are non-cumulative, which means that if for any reason we do not declare cash dividends on the Series B Preferred Stock for a quarterly dividend period we will have no obligation to pay any dividends for that period (i.e., the dividends will not accrue or cumulate), whether or not we declare dividends on the Series B Preferred Stock for any subsequent dividend period. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2016 | |
Securities [Abstract] | |
Securities | NOTE 3 – SECURITIES The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 201 6 and December 31, 201 5 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2016 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 13,521 $ 11 $ 27 $ 13,505 Mortgage-backed securities - residential 345 12 - 357 Collateralized mortgage obligations 189 7 - 196 Total $ 14,055 $ 30 $ 27 $ 14,058 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2015 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,575 $ 4 $ 43 $ 8,536 Mortgage-backed securities - residential 463 18 - 481 Collateralized mortgage obligations 339 12 - 351 Total $ 9,377 $ 34 $ 43 $ 9,368 There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at December 31, 201 6 or December 31, 201 5 . The re were no sales of securities for the years ended December 31, 2016 or December 31, 2015; however, there was an early redemption of a municipal security during the first quarter of 2015 which is reflected in net loss on sales of securities. The amortized cost and fair value of debt securities at December 31, 201 6 and December 31, 2015 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. December 31, 2016 December 31, 2015 Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 2,518 $ 2,518 $ 1,002 $ 1,000 Due from one to five years 11,003 10,987 7,573 7,536 Mortgage-backed securities - residential 345 357 463 481 Collateralized mortgage obligations 189 196 339 351 Total $ 14,055 $ 14,058 $ 9,377 $ 9,368 Fair value of securities pledged was as follows: 2016 2015 Pledged as collateral for: FHLB advances $ 2,327 $ 3,530 Public deposits 2,043 2,055 Interest-rate swaps 195 261 Total $ 4,565 $ 5,846 At year end 2016 and 2015, there were no holdings of securities of any one issuer, other than U.S. Treasuries and U.S. government-sponsored entities and agencies, in an amount greater than 10% of stockholders’ equity. The following table summarizes securities with unrealized losses at December 31, 201 6 and December 31, 201 5 aggregated by major security type and length of time in a continuous unrealized loss position. December 31, 2016 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 10,492 $ 27 $ - $ - $ 10,492 $ 27 Mortgage-backed securities - residential (1) 1 - - - 1 - Total temporarily impaired $ 10,493 $ 27 $ - $ - $ 10,493 $ 27 (1) Securities with an unrealized loss were less than $1 resulting in rounding to zero. December 31, 2015 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 6,541 $ 43 $ - $ - $ 6,541 $ 43 Mortgage-backed securities - residential - - - - - - Total temporarily impaired $ 6,541 $ 43 $ - $ - $ 6,541 $ 43 The unrealized loss es in U.S. Treasuries and Mortgage-backed securities at December 31, 2016 and U.S. Treasuries at December 31, 201 5 , are related to multiple securities. Because the decline in fair value is attributable to changes in market conditions, and not credit quality, and because the Company does not have the intent to sell these securities and will unlikely be required to sell these securities before their anticipated recovery, the Company did not consider these securities to be other-than-temporarily impaired at December 31, 201 6 and December 31, 201 5 . |
Loans And Leases
Loans And Leases | 12 Months Ended |
Dec. 31, 2016 | |
Loans And Leases [Abstract] | |
Loans And Leases | NOTE 4 – LOANS AND LEASES The following table presents the recorded investment in loans and leases by portfolio segment. The recorded investment in loans and leases includes the principal balance outstanding adjusted for purchase premiums and discounts, and deferred loan fees and costs. December 31, 2016 December 31, 2015 Commercial (1) $ 71,334 $ 43,744 Real estate: Single-family residential 92,544 81,985 Multi-family residential 34,291 28,950 Commercial 105,313 96,488 Construction 25,822 24,662 Consumer: Home equity lines of credit 23,109 21,837 Other 637 6,018 Subtotal 353,050 303,684 Less: ALLL (6,925) (6,620) Loans and Leases, net $ 346,125 $ 297,064 (1) Includes $2,874 of commercial leases . Mortgage Purchase Program : CFBank has participated in a Mortgage Purchase Program with Northpointe Bank (Northpointe), a Michigan banking corporation , since December 2012 . Pursuant to the terms of a participation agreement, CFBank purchase s participation interests in loans made by Northpointe related to fully underwritten and pre-sold mortgage loans originated by various prescreened mortgage brokers located throughout the U.S. The underlying loans are individually (MERS ) registered loans which are held until funded by the end investor. The mortgage loan investors include Fannie Mae and Freddie Mac, and other major financial institutions. This process on average takes approximately 14 days. Given the short-term holding period of the underlying loans, common credit risks (such as past due, impairment and TDR, nonperforming, and nonaccrual classification) are substantially reduced. Therefore, no allowance is allocated by CFBank to these loans. These loans are 100% risk rated for CFBank capital adequacy purposes . Under the participation agreement, CFBank agrees to purchase a 95% ownership/participation interest in each of the aforementioned loans, and Northpointe maintains a 5% ownership interest in each loan it participates. At December 31, 201 6 and 201 5 , CFBank held $46,919 and $43,517 , respectively , of such loans which have been included in single-family residential loan totals above. Allowance for L oan and Lease L oss es: The ALLL is a valuation allowance for probable incurred credit losses in the loan and lease portfolio based on management’s evaluation of various factors including past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. A provision for loan and lease losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors described in Note 1 of the Notes to Consolidated Financial Statements. The following tables present the activity in the ALLL by portfolio segment for the year s ended December 31, 201 6 and 201 5 : December 31, 2016 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 1,380 $ 691 $ 705 $ 2,710 $ 561 $ 474 $ 99 $ 6,620 Addition to (reduction in) provision for loan losses 390 149 (132) (128) 19 (4) (64) 230 Charge-offs (123) (147) - - - (53) (1) (324) Recoveries - 42 143 145 - 69 - 399 Ending balance $ 1,647 $ 735 $ 716 $ 2,727 $ 580 $ 486 $ 34 $ 6,925 December 31, 2015 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 1,346 $ 634 $ 818 $ 2,541 $ 442 $ 441 $ 94 $ 6,316 Addition to (reduction in) provision for loan losses 17 96 (113) 161 119 (39) 9 250 Charge-offs (8) (40) - (25) - (41) (10) (124) Recoveries 25 1 - 33 - 113 6 178 Ending balance $ 1,380 $ 691 $ 705 $ 2,710 $ 561 $ 474 $ 99 $ 6,620 The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 201 6 : Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1 $ - $ - $ 21 $ - $ - $ - $ 22 Collectively evaluated for impairment 1,646 735 716 2,706 580 486 34 6,903 Total ending allowance balance $ 1,647 $ 735 $ 716 $ 2,727 $ 580 $ 486 $ 34 $ 6,925 Loans: Individually evaluated for impairment $ 557 $ 122 $ 37 $ 2,732 $ - $ - $ - $ 3,448 Collectively evaluated for impairment 70,777 92,422 34,254 102,581 25,822 23,109 637 349,602 Total ending loan balance $ 71,334 $ 92,544 $ 34,291 $ 105,313 $ 25,822 $ 23,109 $ 637 $ 353,050 The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 201 5 : Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 5 $ 1 $ - $ 14 $ - $ - $ - $ 20 Collectively evaluated for impairment 1,375 690 705 2,696 561 474 99 6,600 Total ending allowance balance $ 1,380 $ 691 $ 705 $ 2,710 $ 561 $ 474 $ 99 $ 6,620 Loans: Individually evaluated for impairment 422 $ 289 $ 1,590 $ 3,449 $ - $ - $ - $ 5,750 Collectively evaluated for impairment 43,322 81,696 27,360 93,039 24,662 21,837 6,018 297,934 Total ending loan balance $ 43,744 $ 81,985 $ 28,950 $ 96,488 $ 24,662 $ 21,837 $ 6,018 $ 303,684 The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 201 6 . The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 476 $ 358 $ - $ 436 $ 13 Real estate: Single-family residential - - - - - Multi-family residential 37 37 - 41 2 Commercial: Non-owner occupied 112 112 - 114 8 Owner occupied 871 350 - 360 46 Land - - - - - Total with no allowance recorded 1,496 857 - 951 69 With an allowance recorded: Commercial 199 199 1 232 9 Real estate: Single-family residential 122 122 - 125 7 Multi-family residential - - - - - Commercial: Non-owner occupied 2,068 2,068 19 2,086 126 Owner occupied 202 202 2 208 10 Land - - - - - Total with an allowance recorded 2,591 2,591 22 2,651 152 Total $ 4,087 $ 3,448 $ 22 $ 3,602 $ 221 The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 201 5 . The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 36 $ 28 $ - $ 65 $ 1 Real estate: Single-family residential 322 161 - 166 - Multi-family residential 1,545 1,545 - 1,561 95 Commercial: Non-owner occupied 546 446 - 455 - Owner occupied 688 167 - 174 39 Land - - - - - Total with no allowance recorded 3,137 2,347 - 2,421 135 With an allowance recorded: Commercial 394 394 5 439 12 Real estate: Single-family residential 128 128 1 130 7 Multi-family residential 45 45 - 48 3 Commercial: Non-owner occupied 2,224 2,224 9 2,242 136 Owner occupied 363 363 1 371 20 Land 294 249 4 274 18 Total with an allowance recorded 3,448 3,403 20 3,504 196 Total $ 6,585 $ 5,750 $ 20 $ 5,925 $ 331 The following table presents the recorded investment in non performing loans by class of loans as of December 31, 201 6 and 201 5 : 2016 2015 Loans past due over 90 days still on accrual $ - $ - Nonaccrual loans: Commercial 263 224 Real estate: Single-family residential 397 640 Commercial: Non-owner occupied - 446 Consumer: Home equity lines of credit: Originated for portfolio 44 20 Purchased for portfolio - 95 Total nonaccrual 704 1,425 Total nonperforming loans $ 704 $ 1,425 Nonaccrual loans include both smaller balance single-family mortgage and consumer loans that are collectively evaluated for impairment and individually classified impaired loans. There were no loans 90 days or more past due and still accruing interest at December 31, 201 6 or December 31, 201 5 . The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 201 6 : 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ - $ 119 $ 119 $ 71,215 $ 144 Real estate: Single-family residential 284 49 106 439 92,105 291 Multi-family residential - - - - 34,291 - Commercial: Non-owner occupied - - - - 60,936 - Owner occupied 269 600 - 869 34,891 - Land - - - - 8,617 - Construction 48 - - 48 25,774 - Consumer: Home equity lines of credit: Originated for portfolio - 15 - 15 22,440 44 Purchased for portfolio 69 - - 69 585 - Other - - - - 637 - Total $ 670 $ 664 $ 225 $ 1,559 $ 351,491 $ 479 The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 201 5 : 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ 9 $ 28 $ 37 $ 43,707 $ 196 Real estate: Single-family residential 598 161 148 907 81,078 492 Multi-family residential - - - - 28,950 - Commercial: Non-owner occupied - 446 - 446 57,573 446 Owner occupied - - - - 30,169 - Land - - - - 8,300 - Construction - - - - 24,662 - Consumer: Home equity lines of credit: Originated for portfolio - - - - 20,789 20 Purchased for portfolio - - - - 1,048 95 Other - - - - 6,018 - Total $ 598 $ 616 $ 176 $ 1,390 $ 302,294 $ 1,249 Troubled Debt Restructurings (TDRs) : From time to time , the terms of certain loans are modified as TDRs, where concessions are granted to borrowers experiencing financial difficulties. The modification of the terms of such loans may have included one or a combination of the following: a reduction of the stated interest rate of the loan; an increase in the stated rate of interest lower than the current market rate for new debt with similar risk; an extension of the maturity date; or a change in the payment terms. As of December 31, 201 6 and December 31, 201 5 , TDR’s totaled $3,130 and $5,276 , respectively. The Company allocated $22 and $20 of specific reserves to loans modified in TDRs as of December 31, 201 6 and 201 5 , respectively. The Company had not committed to lend additional amounts as of December 31, 201 6 or 201 5 to customers with outstanding loans that were classified as nonaccrual TDRs. There was one commercial loan in the amount of $239 that was modified as a TDR during the year ended December 31, 2016, where concessions were granted to a borrower experiencing financial difficulty. There was one single-family residential loan and one home equity line of credit that were modifi ed as TDRs during the year ended December 31, 2015, where concessions were granted to borrowers experiencing financial difficulties. The home equity line of credit was paid off in June 2015. The following table presents loans modified as TDRs by class of loans during the year ended December 31, 201 6 : Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 1 $ 339 $ 339 1 $ 339 $ 339 The following table presents loans modified as TDRs by class of loans during the year ended December 31, 201 5 : Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate: Single-family residential 1 $ 9 $ 9 Consumer: Home equity lines of credit: Originated for portfolio 1 9 9 2 $ 18 $ 18 The TDRs described above resulted in no charge-offs during the years ended December 31, 201 6 and 201 5, respectively . There was one nonperforming TDR that went into payment default during the year ended December 31, 2016. There were no loans classified as TDRs for which there was a payment default within twelve months following the modification during the year ending December 31, 2015 . The terms of certain other loans were modified during the year ended December 31, 201 6 and 201 5 that did not meet the definition of a TDR. These loans had a total recorded investment of $33,294 and $19,097 as of December 31, 201 6 and 201 5 , respectively. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties, a delay in a payment that was considered to be insignificant or there were no concessions granted. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Nonaccrual loans include loans that were modified and identified as TDRs and the loans are not performing. At December 31, 201 6 and 201 5 , nonaccrual TDRs were as follows: 2016 2015 Commercial $ 144 $ 195 Real estate: Single-family residential - 161 Total $ 144 $ 356 Nonaccrual loans at December 31, 201 6 and 201 5 did not include $2,986 and $4,920 , respectively, of TDRs where customers have established a sustained period of repayment performance, generally six months, the loans are current according to their modified terms and repayment of the remaining contractual payments is expected. These loans are included in total impaired loans. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial, commercial real estate and multi-family residential real estate loans. Internal loan reviews for these loan types are performed at least annually, and more often for loans with higher credit risk. Adjustments to loan risk ratings are based on the reviews and at any time information is received that may affect risk ratings. The following definitions are used for risk ratings: Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of CFBank’s credit position at some future date. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that there will be some loss if the deficiencies are not corrected. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, condition and values, highly questionable and improbable. Loans not meeting the criteria to be classified into one of the above categories are considered to be not rated or pass-rated loans. Loans listed as not rated are included in groups of homogeneous loans. Past due information is the primary credit indicator for groups of homogenous loans. Loans listed as pass-rated loans are loans that are subject to internal loan reviews and are determined not to meet the criteria required to be classified as special mention, substandard, doubtful or loss. The recorded investment in loans by risk category and by class of loans as of December 31, 201 6 and based on the most recent analysis performed follows. There were no loans rated doubtful at December 31, 201 6 . Not Rated Pass Special Mention Substandard Total Commercial $ 47 $ 70,444 $ 286 $ 557 $ 71,334 Real estate: Single-family residential 92,130 - - 414 92,544 Multi-family residential - 33,615 505 171 34,291 Commercial: Non-owner occupied 115 58,183 1,782 856 60,936 Owner occupied - 33,493 1,048 1,219 35,760 Land - 6,380 - 2,237 8,617 Construction 1,997 23,825 - - 25,822 Consumer: Home equity lines of credit: Originated for portfolio 22,328 - - 127 22,455 Purchased for portfolio 512 - - 142 654 Other 637 - - - 637 $ 117,766 $ 225,940 $ 3,621 $ 5,723 $ 353,050 The recorded investment in loans by risk category and class of loans as of December 31, 201 5 follows. There were no loans rated doubtful at December 31, 201 5 . Not Rated Pass Special Mention Substandard Total Commercial $ 83 $ 41,473 $ 1,892 $ 296 $ 43,744 Real estate: Single-family residential 81,318 - - 667 81,985 Multi-family residential 2,777 25,466 528 179 28,950 Commercial: Non-owner occupied 125 54,674 1,852 1,368 58,019 Owner occupied - 26,923 3,079 167 30,169 Land - 5,720 - 2,580 8,300 Construction 11,252 13,410 - - 24,662 Consumer: Home equity lines of credit: Originated for portfolio 20,677 - - 112 20,789 Purchased for portfolio 802 - - 246 1,048 Other 2,172 3,846 - - 6,018 $ 119,206 $ 171,512 $ 7,351 $ 5,615 $ 303,684 |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Foreclosed Assets [Abstract] | |
Foreclosed Assets | NOTE 5 – FORECLOSED ASSETS Foreclosed assets at year-end were as follows: 2016 2015 Commercial real estate $ - $ 1,636 Single-family residential 204 - Subtotal 204 1,636 Valuation Allowance - - Total $ 204 $ 1,636 There was no activity in the valuation allowance account or any write-downs during the years ended December 31, 2016 and 2015. Expenses related to foreclosed assets include: 2016 2015 Net loss (gain) on sales $ (4) $ - Operating expenses, net of rental income 69 137 $ 65 $ 137 Foreclosed assets at December 31, 201 6 consisted of one single-family residential property that was transferred into REO at fair value in December 2016. Foreclosed assets at December 31, 2015 consisted of one multi-family property that was transferred into REO at fair value at the time of transfer in 2013 . Foreclosed asset expense s incurred during 2016 and 201 5 related to light rehabilitation and maintenance expense incurred to ready the property to sell, increase occupancy levels, and certain other operating costs . |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value [Abstract] | |
Fair Value | NOTE 6 – FAIR VALUE F air value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of asset and liability: Securities available for sale : The fair value of securities available for sale is determined using pricing models that vary based on asset class and include available trade, bid and other market information or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Derivatives : The fair value of derivatives, which includes yield maintenance provisions, interest rate lock commitments and interest rate swaps, is based on valuation models using observable market data as of the measurement date (Level 2). Impaired loans : The fair value of impaired loans with specific allocations of the ALLL is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by a third-party appraisal management company approved by the Board of Directors annually. Once received, the loan officer or a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are updated as needed based on facts and circumstances associated with the individual properties. Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management applies an additional discount to real estate appraised values, typically to reflect changes in market conditions since the date of the appraisal and to cover disposition costs (including selling expenses) based on the intended disposition method of the property. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Loans held for sale: Loans held for sale are carried at fair value, as determined by outstanding commitments from third party investors (Level 2). During the second quarter of 2015, CFBank signed an agreement with the intent to sell its credit card portfolio to a third party. As a result, as of June 30, 2015, the credit card portfolio was transferred to held for sale at the lower of cost of market of $175,000 , which approximated fair value at the time of transfer. In February 2016, the sale of the credit card portfolio was consummated. Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: Fair Value Measurements at December 31, 2016 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 13,505 Mortgage-backed securities - residential 357 Collateralized mortgage obligations 196 Total securities available for sale $ 14,058 Loans held for sale $ 2,812 Yield maintenance provisions (embedded derivatives) $ 122 Interest rate lock commitments $ 9 Financial Liabilities: Interest-rate swaps $ 122 Fair Value Measurements at December 31, 2015 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,536 Mortgage-backed securities - residential 481 Collateralized mortgage obligations 351 Total securities available for sale $ 9,368 Loans held for sale $ 889 Yield maintenance provisions (embedded derivatives) $ 213 Interest rate lock commitments $ 8 Financial Liabilities: Interest-rate swaps $ 213 The Company had no assets or liabilities measured at fair value on a recurring basis that were measured using Level 1 or Level 3 inputs at December 31, 201 6 or 201 5 . There were no transfers of assets or liabilities measured at fair value between levels during 201 6 or 201 5 . Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2016 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 130 Real Estate: Single-family residential 122 Multi-family residential 37 Commercial: Non-owner occupied 2,161 Owner occupied 200 Land - Total impaired loans $ 2,650 Fair Value Measurements at December 31, 2015 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 143 Real Estate: Single-family residential 128 Multi-family residential 45 Commercial: Non-owner occupied 2,215 Owner occupied 213 Land 245 Total impaired loans $ 2,989 The Company had no assets or liabilities measured at fair value on a non-recurring basis that were measured using Level 1 or 2 inputs at December 31, 201 6 or 201 5 . Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans, had a principal balance of $2,672 , with a valuation allowance of $21 at December 31, 201 6 . Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans, had a principal balance of $3,050 with a valuation allowance of $16 at December 31, 201 5 . The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 201 6 : Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 130 Comparable sales approach Adjustment for differences between the comparable market transactions 3.48% Real estate: Single-family residential 122 Comparable sales approach Adjustment for differences between the comparable market transactions ( 1.81% , 3.61% ) 2.91% Multi-family residential 37 Comparable sales approach Adjustment for differences between the comparable market transactions 9.64% Commercial: Non-owner occupied 2,161 Comparable sales approach Adjustment for differences between the comparable market transactions ( 1.10% , 5.74% ) 1.35% Owner occupied 200 Comparable sales approach Adjustment for differences between the comparable market transactions -4.46% The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 201 5 : Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 143 Comparable sales approach Adjustments by management to reflect current discount rates 1.10% Real estate: Single -family residential 128 Comparable sales approach Adjustment for differences between the comparable market transactions ( -1.23% , 4.63% ) -.17% Multi-family residential 45 Comparable sales approach Adjustment for differences between the comparable market transactions 5.74% Commercial: Non-owner occupied 2,215 Comparable sales approach Adjustment for differences between the comparable market transactions ( 1.10% , 5.74% ) 1.35% Owner occupied 213 Comparable sales approach Adjustment for differences between the comparable market transactions -29.30% Land 245 Comparable sales approach Adjustment for differences between the comparable market transactions ( -1.89% , 2.54% ) .08% Financial Instruments Recorded Using Fair Value Option : The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Loans originated as construction loans, that were subsequently transferred to held for sale, are carried at the lower cost or market and are not included. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans were 90 days or more past due or on nonaccrual as of December 31, 201 6 or December 31, 201 5 . As of December 31, 201 6 and December 31, 201 5 , the aggregate fair value, contractual balance and gain or loss of loans held for sale were as follows: December 31, 2016 December 31, 2015 Aggregate fair value $ 2,812 $ 889 Contractual balance 2,801 884 Gain (loss) 11 5 The total amount of gains and losses from changes in fair value included in earnings for the year ended December 31, 201 6 and 201 5 for loans held for sale were : 2016 2015 Interest income $ 60 $ 56 Interest expense - - Change in fair value 6 (10) Total change in fair value $ 66 $ 46 The carrying amounts and estimated fair values of financial instruments at year-end were as follows: Fair Value Measurements at December 31, 2016 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 57,941 $ 57,941 $ - $ - $ 57,941 Interest-bearing deposits in other financial institutions 100 100 - - 100 Securities available for sale 14,058 - 14,058 - 14,058 Loans held for sale 2,812 - 2,812 - 2,812 Loans, net 346,125 - - 343,523 343,523 FHLB stock 1,942 n/a n/a n/a n/a Accrued interest receivable 1,054 13 40 1,001 1,054 Yield maintenance provisions (embedded derivatives) 122 - 122 - 122 Interest rate lock commitments 9 - 9 - 9 Financial liabilities Deposits $ (375,364) $ (202,158) $ (171,967) $ - $ (374,125) FHLB advances and other borrowings (13,500) - (13,597) - (13,597) Advances by borrowers for taxes and insurance (408) - - (408) (408) Subordinated debentures (5,155) - (3,411) - (3,411) Accrued interest payable (78) (2) (76) - (78) Interest-rate swaps (122) - (122) - (122) The carrying amounts and estimated fair values of financial instruments at December 31, 201 5 were as follows: Fair Value Measurements at December 31, 2015 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 25,895 $ 25,895 $ - $ - $ 25,895 Interest-bearing deposits in other financial institutions - - - - - Securities available for sale 9,368 - 9,368 - 9,368 Loans held for sale 889 - 889 - 889 Loans, net 297,064 - - 295,498 295,498 FHLB stock 1,942 n/a n/a n/a n/a Accrued interest receivable 831 1 21 809 831 Yield maintenance provisions (embedded derivatives) 213 - 213 - 213 Interest rate lock commitments 8 - 8 - 8 Financial liabilities Deposits $ (290,467) $ (147,523) $ (143,236) $ - $ (290,759) FHLB advances and other borrowings (14,500) - (14,693) - (14,693) Advances by borrowers for taxes and insurance (656) - - (656) (656) Subordinated debentures (5,155) - (2,269) - (2,269) Accrued interest payable (44) - (44) - (44) Interest-rate swaps (213) - (213) - (213) The methods and assumptions used to estimate fair value are described as follows. Cash and Cash Equivalents The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. Interest-Bearing Deposits in Other Financial Institutions The carrying amounts of interest bearing deposits in other financial institutions approximate fair values and are classified as Level 1. FHLB Stock It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. Loans Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Deposits The fair values disclosed for demand deposits (e.g., interest and noninterest bearing checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. Fair values for fixed - rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Other Borrowings The fair values of the Company’s long-term FHLB advances are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. The fair values for the secured borrowings are valued in the same manner as loans noted above, resulting in a L evel 3 classification. The fair values of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value resulting in a Level 1 or 2 classification, consistent with the asset or liability with which they are associated. Off-Balance-Sheet Instruments The fair value of off-balance-sheet items is not considered material. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2016 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 7 – LOAN SERVICING Mortgage loans serviced for others are not reported as assets. The principal balances of these loans at year-end were as follows: December 31, 2016 December 31, 2015 Mortgage loans serviced for Freddie Mac $ 4,261 $ 5,593 Custodial escrow balances maintained in connection with serviced loans were $119 and $132 at year-end 2015 and 2014, respectively. |
Premises And Equipment
Premises And Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Premises And Equipment [Abstract] | |
Premises And Equipment | NOTE 8- PREMISES AND EQUIPMENT Year-end premises and equipment were as follows: December 31, 2016 December 31, 2015 Land and land improvements $ 1,293 $ 1,293 Buildings 3,832 3,827 Furniture, fixtures and equipment 2,150 2,655 7,275 7,775 Less: Accumulated Depreciation (3,846) (4,166) $ 3,429 $ 3,609 Depreciation expense for 201 6 and 201 5 totaled $211 and $211 , respectively. Operating Leases : The Company leases certain branch and loan office property space under two operating leases. Each lease requires CFBank to absorb its pro rata share of building operating expenses and utilities based on square footage. The Company entered into a lease agreement to open a commercial banking agency o ffice in Woodmere, Ohio, which opened in January of 2014. The Woodmere lease is for a 128 -month term commencing January 1, 2014 with no renewal options. The Company leases CFBank’s Fairlawn branch office pursuant to a ten year operating lease beginning in 2014 with annual rent increases each year. There is one five -year renewal option on this lease. Lease expense for the years ended December 31, 201 6 and 201 5 totaled $311 and $319 , respectively. Leasehold improvements are depreciated straight line over the lease term before consideration of renewal options. Lease expense is recognized evenly over the lease term to account for lease incentives. Rent commitments, before renewal options, are as follows: 2017 $ 320 2018 321 2019 322 2020 324 2021 325 Thereafter 858 $ 2,470 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | NOTE 9 – DEPOSITS Time deposits of $100 or more were $128,185 and $106,574 at year-end 201 6 and 201 5, respectively . Time deposits of $250 or more were $38,575 and $23,970 at year-end 2016 and 2015, respectively. Scheduled maturities of time deposits for the next five years are as follows: 2017 $ 108,620 2018 33,617 2019 7,749 2020 14,626 2021 7,697 Thereafter - Total $ 172,309 B rokered deposits at year-end 201 6 and 201 5 totaled $29,738 and $22,073 , respectively . |
FHLB Advances
FHLB Advances | 12 Months Ended |
Dec. 31, 2016 | |
FHLB Advances [Abstract] | |
FHLB Advances | NOTE 10 –FHLB ADVANCES Fixed Rate Advances from the FHLB were as follows: Weighted Average Rate December 31, 2016 December 31, 2015 Fixed Rate Advances Maturities: 2016 $ - $ 5,000 2017 1.12% 2,500 1,500 2019 1.62% 3,500 2,500 2020 2.02% 3,500 2,500 2021 2.32% 4,000 3,000 Total $ 13,500 $ 14,500 Each advance is payable at its maturity date, with a prepayment penalty for fixed-rate advances. The advances were collateralized as follows: December 31, 2016 December 31, 2015 Single-family mortgage loans $ 38,342 $ 29,490 Multi-family mortgage loans 14,854 8,185 Commercial real estate loans (1-4 family) 2,793 3,155 Securities 2,327 3,530 Cash 3,300 3,300 Total $ 61,616 $ 47,660 Based on the collateral pledged to the FHLB and CFBank’s holdings of FHLB stock, CFBank was eligible to borrow up to a total of $44 ,498 from the FHLB at December 31, 201 6 . Payments due to the FHLB over the next five years are as follows: December 31, 2016 2017 $ 2,500 2018 - 2019 3,500 2020 3,500 2021 4,000 $ 13,500 |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Other Borrowings [Abstract] | |
Other Borrowings | NOTE 11 - OTHER BORROWINGS There were no outstanding borrowings with the Federal Reserve Bank (the “FRB”) at December 31, 201 6 or at December 31, 201 5 . Assets pledged as collateral with the FRB were as follows: 2016 2015 Commercial loans $ 16,380 $ 19,696 Commercial real estate loans 39,230 37,702 $ 55,610 $ 57,398 Based on the collateral pledged, CFBank was eligible to borrow up to $31,846 from the FRB at year-end 201 6 . CFBank had a $1.0 million line of credit with a commercial bank at both December 31, 201 6 and December 31, 201 5 . There were no outstanding borrowings on this line of credit at December 31, 201 6 or December 31, 201 5 . If CFBank were to borrow on this line of credit, interest would accrue daily at a variable rate based on the commercial bank’s cost of funds and current market returns. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2016 | |
Subordinated Debentures [Abstract] | |
Subordinated Debentures | NOTE 12 – SUBORDINATED DEBENTURES In December 2003, Central Federal Capital Trust I, a trust formed by the Holding Company, closed a pooled private offering of 5,000 trust preferred securities with a liquidation amount of $1 per security. The Holding Company issued $5,155 of subordinated debentures to the trust in exchange for ownership of all of the common stock of the trust and the proceeds of the preferred securities sold by the trust . The Holding Company is not considered the primary beneficiary of this trust (variable interest entity); therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Holding Company’s investment in the common stock of the trust was $155 and is included in other assets. The Holding Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1 , on or after December 30, 2008 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on December 30, 2033 . The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. There are no required principal payments on the subordinated debentures over the next five years. The Holding Company has the option to defer interest payments on the subordinated debentures for a period not to exceed five consecutive years. The Holding Company’s Board of Directors elected to defer interest payments on the subordinated debentures from time to time beginning in December 2010 in order to preserve cash at the Holding Company. However, the Holding Company paid all deferred and current interest payments in June 2014, and has paid the interest current on the subordinated debentures for all subsequent quarters through December 31, 201 6. The subordinated debentures have a variable rate of interest, reset quarterly, equal to the three-month London Interbank Offered Rate plus 2.85% , which was 3.85% at year-end 201 6 and 3.45% at year-end 201 5 . |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Benefit Plans [Abstract] | |
Benefit Plans | NOTE 13 – BENEFIT PLANS Multi-employer pension plan : CFBank participates in the Pentegra Defined Benefit Plan for Financial Institutions (the Pentegra DB Plan), a multi-employer contributory trusteed pension plan. The retirement benefits to be provided by the plan were frozen as of June 30, 2003 and future employee participation in the plan was stopped. The plan was maintained for all eligible employees and the benefits were funded as accrued. The cost of funding was charged directly to operations. The unfunded liability under the Pentegra DB Plan at June 30, 201 6 totale d $53 a nd at June 30, 201 5 was $36 . CFBank’s contributions for the plan years ending June 30, 201 7 and June 30, 201 6 , totaled $42 , a nd $22 , respectively. Contributions to the plan may vary from period to period due to the change in the plan's unfunded liability. The unfunded liability is primarily related to the change in plan assets and the change in plan liability from one year to the next. The change in plan assets is based on contributions deposited, benefits paid and the actual rate of return earned on those assets. The change in plan liability is based on demographic changes and changes in the interest rates used to determine plan liability. In the event the actual rate of return earned on plan assets declines, the value of the plan assets will decline. In the event the interest rates used to determine plan liability decrease, plan liability will increase. The combined effect of each change determines the change in the unfunded liability and the change in the employer contributions. The Pentegra DB Plan is a tax-qualified defined-benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan contributions made by a participating employer may be used to provide benefits to participants of other participating employers. Funded status (market value of plan assets divided by funding target) based on valuation reports as of July 1, 201 6 and 201 5 was 94.90% an d 96.52% , respectively. Total contributions made to the Pentegra DB Plan, as reported on Form 5500 of the Pentegra DB Plan, total ed $163 an d $191 for the plan years ended June 30, 201 5 and June 30, 201 4 , respectively. CFBank’s contributions to the Pentegra DB Plan were not more than 5% of the total contributions to the Pentegra DB Plan. 401(k) Plan: The Company sponsors a 401(k) plan that allows employee contributions up to the maximum amount allowable under federal tax regulations, which are currently matched in an amount equal to 25% of the first 8% of the compensation contributed. Expense for 201 6 and 201 5 was $49 and $52 , respectively. Salary Continuation Agreement: In 2004, CFBank entered into a nonqualified salary continuation agreement with its former Chairman Emeritus. Benefits provided under the plan are unfunded, and payments are made by CFBank. Under the plan, CFBank pays him, or his beneficiary, a benefit of $25 annually for 20 years, beginning 6 months after his retirement date, which was February 28, 2008. The expense related to this plan totaled $10 and $11 in 201 6 and 201 5 , respectively. The accrual is included in accrued interest payable and other liabilities in the consolidated balance sheets and totaled $218 at year-end 201 6 and $233 at year-end 201 5 . Life Insurance Benefits: CFBank has entered into agreements with certain employees, former employees and directors to provide life insurance benefits which are funded through life insurance policies purchased and owned by CFBank. The expense related to these benefits totaled ($3) and ($2) in 201 6 and 201 5 , respectively. The accrual for CFBank’s obligation under these agreements is included in accrued interest payable and other liabilities in the consolidated balance sheets and totaled $210 at year-end 201 6 and $213 at year-end 201 5 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 14 – INCOME TAXES Income tax expense was as follows: December 31, 2016 December 31, 2015 Current Federal $ 187 $ 58 Deferred Federal (1) 623 (3,251) Total $ 810 $ (3,193) (1) Includes tax benefit of operating loss carryforwards of $717 and $531 for the years ended December 31, 2016 and 2015. Effective tax rates differ from the federal statutory rate of 34% applied to income (loss) before income taxes due to the following: December 31, 2016 December 31, 2015 Federal Statutory rate times financial statement income (loss) $ 829 $ 436 Effect of: Incentive Stock Options 6 33 Bank owned life insurance income (45) (45) Increase (decrease) in deferred tax valuation allowance - (3,656) Other 20 39 $ 810 $ (3,193) Effective tax rate 33% -249% Year-end deferred tax assets and liabilities were due to the following: 2016 2015 Deferred tax assets: Allowance for loan and lease losses $ 1,575 $ 1,497 Compensation related issues 353 314 Deferred loan fees 155 118 AMT Credit 50 105 Nonaccrual interest 41 132 Net operating loss carry forward 863 1,580 Other 70 2 3,107 3,748 Deferred tax liability: FHLB stock dividend 366 366 Mortgage servicing rights 2 4 Depreciation 47 43 Prepaid expenses 63 78 Mark-to-market Loans 2 3 480 494 Net deferred tax asset $ 2,627 $ 3,254 At December 31, 2016, the Company had a deferred tax asset recorded of approximately $2,600. At December 31, 2015, the Company had a deferred tax asset recorded of approximately $3,300 aft er reversing its valuation allowance noted below . At December 31, 201 6 and December 31, 2015 , the Company had no unrecognized tax benefits recorded. The Company is subject to U.S. federal income tax and is no longer subject to federal examination for years prior to 201 3 . Our deferred tax assets are composed of U.S. net operating losses (“NOLs”), and other temporary book to tax differences. The Company recorded a deferred tax valuation allowance which reduced the Company’s deferred tax asset to zero beginning in 2009 and continuing up until the fourth quarter of 2015. The Company maintained this valuation allowance against the net deferred tax assets during this period based on its estimate of future reversal and utilization. As a result, there was no income tax benefit recorded during the first three quarters of 2015 . When determining the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded as a benefit, the Company conducts a regular assessment of all available information. This information includes, but is not limited to, taxable income in prior periods, projected future income and projected future reversals of deferred tax items. Based on these criteria, the Company determined as of December 31, 2015, in part because the Company had achieved seven consecutive quarters of pretax income, that it was no longer necessary to maintain a full valuation allowance against the entire net deferred tax asset. As a result, the valuation allowance on the deferred tax asset was reversed , which resulted in a credit to income tax expense of $3 , 2 00 during the fourth quarter of 2015 . In 2012, a recapitalization program through the sale of $22,500 in common stock improved the capital levels of CF Bank and provided working capital for the H olding C ompany. The result of the change in stock ownership associated with the stock offering, however , was that the Company incurred an ownership change within the guidelines of Section 382 of the Internal Revenue Code of 1986. At year-end 201 6 , the Company had net operating loss carryforwards o f $23,059 , whic h expire at various dates from 2024 to 2033 , and has alternative minimum tax credit carryforwards of $50 , which do not expire. As a result of the ownership change, the Company's ability to utilize carryforwards that arose before the stock offering closed is limited to $163 per year. Due to this limitation, management determined it is more likely than not that $20,520 of net operating loss carryforwards will expire unutilized. As required by accounting standards, the Company reduced the carrying value of deferred tax assets, and the corresponding valuation allowance, by the $6,977 tax effect of this lost realizability. Federal income tax laws provided additional deductions, totaling $2,250 , for thrift bad debt reserves established before 1988. Accounting standards do not require a deferred tax liability to be recorded on this amount, which otherwise would have total ed $765 at year-end 201 6 . However, if CFBank were wholly or partially liquidated or otherwise ceases to be a bank, or if tax laws were to change, this amount would have to be recaptured and a tax liability recorded. Additionally, any distributions in excess of CFBank’s current or accumulated earnings and profits would reduce amounts allocated to its bad debt reserve and create a tax liability for CFBank. The amount of additional taxable income created by such a distribution is an amount that, when reduced by the tax attributable to the income, is equal to the amount of the distribution. Thus, if CFBank were to make a distribution that reduce d the amount allocated to its bad debt reserve, then approximately one and one-half times the amount used would be includible in gross income for federal income tax purposes, assuming a 34% corporate income tax rate. CFBank does not intend to make distributions that would result in a recapture of any portion of its bad debt reserve. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | NOTE 15 – RELATED-PARTY TRANSACTIONS Loans to principal officers, directors and their affiliates during 201 6 were as follows: Beginning balance $ 635 New loans 1,826 Effect of changes in composition of related parties - Repayments (62) Ending balance $ 2,399 All loans to related parties were made in the ordinary course of business under terms equivalent to those prevailing in the market for arm’s length transactions at the time of origination. Deposits from principal officers, directors, and their affiliates at year-end 201 6 and 201 5 were $274 and $262 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 16 – STOCK-BASED COMPENSATION The Company has issued awards under three stock-based compensation plans (the “Plans”), as described below. Total compensation cost that has been charged against income for those Plans totaled $122 and $134 for 201 6 and 201 5 , respectively. The total income tax benefit was $35 and $13 for 201 6 and 201 5 , respectively . The Plans are all stockholder-approved and authorize stock option grants and restricted stock awards to be made to directors, officers and employees. The 1999 Stock-Based Incentive Plan, which expired July 13, 2009, provided 38,778 shares of common stock for stock option grants and 15,511 shares of common stock for restricted stock awards. The 2003 Equity Compensation Plan (the “2003 Plan”), as amended and restated, provided an aggregate of 100,000 shares for stock option grants and restricted stock awards, of which up to 30,000 shares could be awarded in the form of restricted stock awards. The 2009 Equity Compensation Plan (the “2009 Plan”), which was approved by stockholders on May 21, 2009, replaced the 2003 Plan and provided for 200,000 shares, plus any remaining shares available to grant or that are later forfeited or expire under the 2003 Plan, to be made available to be issued as stock option grants, stock appreciation rights or restricted stock awards. On May 16, 2013, the Company’s stockholders approved the First Amendment to the 2009 Plan to increase the number of shares of common stock reserved for stock option grants and restricted stock awards thereunder to 1,500,000 . Stock Options: The Plans permit the grant of stock options to directors, officers and employees of the Holding Company and CFBank. Option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant, generally have vesting periods ranging from one to three years, and are exercisable for ten years from the date of grant. Unvested stock options immediately vest upon a change of control. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. Employee and management options are tracked separately. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no stock options granted or exercised during the years ended December 31, 201 6 and December 31, 201 5 . A summary of stock option activity in the Plans for 201 6 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Intrinsic Value Outstanding at beginning of year 566,696 $ 1.48 Cancelled or Forfeited (23,950) 2.01 Outstanding at end of period 542,746 $ 1.46 6.4 $ 198,040 Expected to vest - $ - - $ - Exercisable at end of period 542,746 $ 1.46 6.4 $ 198,040 During the year ended December 31, 2016, there were 2 3, 95 0 stock options canceled or forfeited. Expense associated with unvested forfeited shares is reversed. As of December 31, 2016, all stock options granted under the Plans were vested. Restricted Stock Awards: The Plans also permit the grant of restricted stock awards to directors, officers and employees. Compensation is recognized over the vesting period of the awards based on the fair value of the stock at grant date. The fair value of the stock is determined using the closing share price on the date of grant and shares generally have vesting periods of one to three years. There were 292,000 shares of restricted stock issued in 201 6 and 200,500 shares of restricted stock issued in 201 5 . A summary of changes in the Company’s nonvested restricted shares for the year follows: Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at January 1, 2016 200,500 $ 1.37 Granted 292,000 1.64 Vested (66,834) 1.37 Forfeited - - Nonvested at December 31, 2016 425,666 $ 1.56 As of December 31, 201 6 and 201 5 , the unrecognized compensation cost related to nonvested shares granted under the Plans was $642 and $272 , respectively. There were 66,834 shares that vested during the year ended December 31, 201 6 . There were 539,792 shares remaining available for stock option grants and restricted stock awards under the 2009 Plan at December 31, 201 6 . |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Preferred Stock [Abstract] | |
Preferred Stock | NOTE 17 – PREFERRED STOCK Series B Preferred Stock: Commencing in April 2014, the Company conducted a private placement of up to 480,000 shares of its 6.25% Non-Cumulative Convertible Perpetual Preferred Stock, Series B (“Series B Preferred Stock”) for an offering price of $25.00 per share (the “Private Placement”). Pursuant to the Private Placement, the Company sold an aggregate of 480,000 shares of Series B Preferred Stock on May 12, 2014 and July 15, 2014, for an aggregate offering price of $12,000 . The Series B Preferred Stock was sold by the Company with the assistance of McDonald Partners, LLC, as placement agent, on a best efforts basis. After payment of approximately $482 in placement fees to McDonald Partners, LLC and approximately $149 of other offering expenses, the Company’s net proceeds from its sale of the 480,000 shares of Series B Preferred Stock in the Private Placement were approximately $11,369 . For each share of Series B Preferred Stock sold in the Private Placement, the Company also agreed to issue, at no additional charge, a Warrant to purchase (i) 2.00 shares of common stock of the Company if the purchaser purchased less than $700 ( 28,000 shares) of Series B Preferred Stock in the Private Placement, or (ii) 3.25 shares of common stock if the purchaser purchased $700 ( 28,000 shares) or more of Series B Preferred Stock in the Private Placement. See Note 18-Common Stock Warrants for additional information. The Series B Preferred Stock and Warrants have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any state in reliance upon exemptions from registration thereunder, including the exemptions provided under Section 4(a)(2) of the Securities Act and Rule 506(b) promulgated thereunder. The Series B Preferred Stock and Warrants were sold solely to “accredited investors” as defined in Rule 501(a), and neither the Series B Preferred Stock or Warrants, nor any shares of common stock of the Company into which the Series B Preferred Stock may be converted or for which the Warrants may be exercised, may be resold for a period of at least six months from the date of issue without registration or an exemption from registration under the Securities Act and applicable state securities laws. However, the Company has agreed to provide certain registration rights to the holders of the Warrants pursuant to the terms of a Registration Rights Agreement between the Company and each purchaser of Series B Preferred Stock and Warrants in the Private Placement. |
Common Stock Warrants
Common Stock Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock Warrants [Abstract] | |
Common Stock Warrants | NOTE 18 – COMMON STOCK WARRANTS Series B Preferred Stock – Warrants: For each share of Series B Preferred Stock issued by the Company in the Private Placement, the Company also issued, at no additional charge, a Warrant to purchase (i) 2.00 shares of common stock of the Company if the purchaser purchased less than $700 ( 28,000 shares) of Series B Preferred Stock in the Private Placement, or (ii) 3.25 shares of common stock if the purchaser purchased $700 ( 28,000 shares) or more of Series B Preferred Stock in the Private Placement. Warrants to purchase an aggregate of 1,152,125 shares of common stock were issued by the Company to the purchasers of the 480,000 shares of Series B Preferred Stock sold in the Private Placement. Subject to certain limitations, the Warrants are exercisable for a period of approximately five (5) years expiring on July 15, 2019, at a cash purchase price of $1.85 per share of common stock. |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Matters [Abstract] | |
Regulatory Capital Matters | NOTE 19 – REGULATORY CAPITAL MATTERS CFBank is subject to regulatory capital requirements administered by federal banking agencies. Prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off ‑balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Prompt corrective action regulations provide five classifications for banking organizations: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a banking organization is classified as adequately capitalized, regulatory approval is required to accept brokered deposits. If a banking organization is classified as undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. In July 2013, the Holding Company’s primary federal regulator, the FRB, published final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee's December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules provide higher capital requirements and more restrictive leverage and liquidity ratios than those previously in place. In addition, in order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the Basel III Capital Rules require insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above the minimum risk-based capital requirements. The capital conservation buffer will be phased in over time, becoming fully effective on January 1, 2019, and will consist of an additional amount of common equity equal to 2.5% of risk-weighted assets. The Basel III Capital Rules revise the regulatory agencies' prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of common equity. The Basel III Capital Rules became effective for the Company on January 1, 2015, and will be fully phased in by January 1, 2019. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital, as defined in the regulations, to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets (“Leverage Ratio”). CBank’s implementation of the new rules on January 1, 2015 did not have a material impact on our capital needs or classifications. When fully phased in on January 1, 2019, the Basel III Capital Rules will require CFBank to maintain: 1) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 4.5%, plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 7.0% upon full implementation); 2) a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, plus the capital conservation buffer (resulting in a minimum of Tier 1 capital ratio of 8.5% upon full implementation); 3) a minimum ratio of Total capital to risk-weighted assets of 8.0%, plus a capital conservation buffer (resulting in a minimum Total capital ratio of 10.5% upon full implementation); and 4) a minimum Leverage Ratio of 4.0%. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will be phased in over a four year period increasing by increments of that amount on each subsequent January 1 until it reaches 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Failure to maintain the minimum Common Equity Tier 1 capital ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees. The CFBank Order required CFBank to have an 8% Tier 1 (Core) Capital to adjusted total assets and 12% Total Capital to risk weighted assets. CFBank remained subject to the heightened capital requirements imposed by the OCC and was required to maintain an 8% Tier 1 (core) Capital ratio t o adjusted total assets and 12% Total Capital to risk weighted assets , until December 23, 2015. See Note 2.-Regulatory Matters for additional information. Actual and required capital amounts and ratios are presented below at year end : To Be Well Minimum Capital Minimum Capital Capitalized Under Required-Basel III Required-Basel III Applicable Regulatory Actual Phase-In Schedule Fully Phased-In Capital Standards Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital to risk weighted assets $ 45,118 12.46% $ 31,256 8.63% $ 38,029 10.50% $ 36,218 10.00% Tier 1 (Core) Capital to risk weighted assets 40,556 11.20% 24,013 6.63% 30,785 8.50% 28,974 8.00% Common equity tier 1 capital to risk-weighted assets 40,556 11.20% 18,580 5.13% 25,353 7.00% 23,542 6.50% Tier 1 (Core) Capital to adjusted total assets (Leverage ratio) 40,556 9.66% 16,792 4.00% 16,792 4.00% 20,991 5.00% To Be Well Capitalized Under Required For Capital Applicable Regulatory Pursuant to Actual Adequacy Purposes Capital Standards OCC Commitment (1) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31,2015 Total Capital to risk weighted assets $ 41,528 13.67% $ 24,310 8.00% $ 30,388 10.00% $ N/A N/A Tier 1 (Core) Capital to risk weighted assets 37,694 12.40% 18,233 6.00% 24,310 8.00% N/A N/A Common equity tier 1 capital to risk-weighted assets 37,694 12.40% 13,675 4.50% 19,752 6.50% N/A N/A Tier 1 (Core) Capital to adjusted total assets 37,694 11.12% 13,557 4.00% 16,946 5.00% N/A N/A (1) The heightened capital requirements were applicable to CFBank until December 23, 2015, under the CFBank Order and the subsequent commitments made by CFBank to the OCC. See Note 2- Regulatory Matters for additional info rmation . The Qualified Thrift Lender (QTL) test requires savings associations to maintain at least 65% of assets in housing-related finance and other specified areas . If this test is not met, limits are placed on growth, branching, new investments, FHLB advances and dividends. Management believes that this test wa s met by CFBank at December 31, 201 5 . Effective December 1, 2016, CFBank converted from a federal savings association to a national bank and, as a result, is no longer subject to the QTL requirements. CFBank converted from a mutual to a stock institution in 1998, and a “liquidation account” was established with an initial balance of $14,300 , which was the net worth reported in the conversion prospectus. The liquidation account represents a calculated amount for the purposes described below, and it does not represent actual funds included in the consolidated financial statements of the Company. Eligible depositors who have maintained their accounts, less annual reductions to the extent they have reduced their deposits, would be entitled to a priority distribution from this account if CFBank liquidated and its assets exceeded its liabilities. Dividends may not reduce CFBank’s stockholder’s equity below the required liquidation account balance. Dividend Restrictions: The Holding Company’s principal source of funds for dividend payments is dividends received from CFBank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. Any future dividend payments by CFBank to the Holding Company would be based on future earnings and, if necessary, regulatory approval. Prior to January 8, 2016, any dividends by the Holding Company on its common stock or Series B Preferred Stock, and any dividends or capital contributions by CFBank to the Holding Company, were also subject to the commitments made by the Holding Company and CFBank in connection with the release of the Orders. The Holding Company received prior approval from the FRB for the payment of quarterly cash dividends on its Series B Preferred Stock in each of the previous quarters commencing with the first dividend payment on July 15, 2014 through the dividend payment on January 15, 2016. The Holding Company’s ability to pay dividends on its stock is also conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Additionally , so long as the Company’s Series B Preferred Stock remains outstanding, the Holding Company will be prohibited from paying dividends (other than dividends payable solely in shares) on the Company’s common stock for the then-current dividend period, unless full dividends on the Series B Preferred Stock have been paid or set aside for payment. Dividends on the Series B Preferred Stock are non-cumulative, which means that if for any reason we do not declare cash dividends on the Series B Preferred Stock for a quarterly dividend period we will have no obligation to pay any dividends for that period (i.e., the dividends will not accrue or cumulate), whether or not we declare dividends on the Series B Preferred Stock for any subsequent dividend period. Additionally CFBank does not intend to make distributions to the Holding Company that would result in a recapture of any portion of its thrift bad debt reserve as discussed in Note 14-Income taxes . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | NOTE 20 – DERIVATIVE INSTRUMENTS Interest-rate swaps: CFBank utilizes interest-rate swaps as part of its asset liability management strategy to help manage its interest rate risk position and does not use derivatives for trading purposes. The notional amount of the interest-rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest-rate swap agreements. CFBank was party to interest-rate swaps with a combined notional amount of $2,280 at December 31, 201 6 and $2,877 at December 31, 201 5 . The objective of the interest-rate swaps is to protect the related fixed - rate commercial real estate loans from changes in fair value due to changes in interest rates. CFBank has a program whereby it lends to its borrowers at a fixed - rate with the loan agreement containing a two-way yield maintenance provision, which will be invoked in the event of prepayment of the loan, and is expected to exactly offset the fair value of unwinding the swap. The yield maintenance provision represents an embedded derivative which is bifurcated from the host loan contract and, as such, the swaps and embedded derivatives are not designated as hedges. Accordingly, both instruments are carried at fair value and changes in fair value are reported in current period earnings. CFBank currently does not have any derivatives designated as hedges. Contingent Features: The counterparty to CFBank’s interest-rate swaps is exposed to credit risk whenever the interest-rate swaps are in a liability position. At December 31, 201 6 , CFBank had $695 in securities and cash pledged as collateral for these derivatives. Should the liability increase beyond the collateral value , CFBank will be required to pledge additional collateral. Additionally, CFBank’s interest-rate swap instruments contain provisions that require CFBank to remain well capitalized under regulatory capital standards. The interest-rate swaps may be called by the counterparty if CFBank fails to maintain well-capitalized status under regulatory capital standards. As of December 31, 2016, CFBank was well-capitalized under regulatory capital standards. Summary information about the derivative instruments is as follows: 2016 2015 Notional amount $ 2,280 $ 2,877 Weighted average pay rate on interest-rate swaps 3.74% 3.67% Weighted average receive rate on interest-rate swaps 0.75% 0.39% Weighted average maturity (years) 3.1 4.0 Fair value of interest-rate swaps $ (122) $ (213) Fair value of yield maintenance provisions $ 122 $ 213 The fair value of the yield maintenance provisions and interest-rate swaps is recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. Changes in the fair value of the yield maintenance provisions and interest-rate swaps are reported currently in earnings, as other noninterest income in the consolidated statements of income . There were no net gains or losses recognized in earnings related to yield maintenance provisions and interest-rate swaps in 201 6 or 201 5 . Mortgage banking derivatives: Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market are considered derivatives. These mortgage banking derivatives are not designated in hedge relationships. The Company had approximately $2,164 and $1,560 of interest rate lock commitments related to residential mortgage loans at December 31, 201 6 and 201 5 , respectively. The fair value of these mortgage banking derivatives was reflected by a derivative asset of $8 and $8 at December 31, 201 6 and 201 5 , respectively, which was included in other assets in the consolidated balance sheet. Fair values were estimated based on anticipated gains on the sale of the underlying loans. Changes in the fair values of these mortgage banking derivatives are included in net gains on sales of loans. Net gains (losses) recognized in earnings related to these mortgage banking derivatives totaled $7 and ($28) in 201 6 and 201 5 , respectively . |
Loan Commitments And Other Rela
Loan Commitments And Other Related Activities | 12 Months Ended |
Dec. 31, 2016 | |
Loan Commitments And Other Related Activities [Abstract] | |
Loan Commitments And Other Related Activities | NOTE 21 – LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft pro tection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off ‑balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk at year end were as follows : 2016 2015 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 21,335 $ 22,171 $ 4,623 $ 15,187 Unused lines of credit $ 3,714 $ 29,621 $ 647 $ 19,764 Standby letters of credit $ 991 $ - $ 1,154 $ - Commitments to make loans are generally made for periods of 60 days or less, except for construction loan commitments, which are typically for a period of one year, and loans under a specific drawdown schedule, which are based on the individual contracts . The fixed-rate loan commitments had interest rates ranging from 1.75% to 6.50% and maturities ranging from 2 months to 30 years at December 31, 201 6 . The fixed-rate loan commitments had interest rates ranging from 4.25% to 6.50% and maturities ranging from 3 months to 14 years at December 31, 201 5 . |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company Only Condensed Financial Information [Abstract] | |
Parent Company Only Condensed Financial Information | NOTE 22 – PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Central Federal Corporation follows: 2016 2015 Assets Cash and cash equivalents $ 2,197 $ 2,673 Investment in banking subsidiary 41,448 37,745 Investment in and advances to other subsidiary 225 222 Other assets 901 3,112 Total assets $ 44,771 $ 43,752 Liabilities and Equity Subordinated debentures $ 5,155 $ 5,155 Accrued expenses and other liabilities 324 285 Stockholders' equity 39,292 38,312 Total liabilities and stockholders' equity $ 44,771 $ 43,752 2016 2015 Interest income $ 2 $ 1 Other income 131 291 Interest expense 185 164 Other expense 646 548 Loss before income tax and undistributed subsidiary income (698) (420) Tax effect 236 1,798 Gain (loss) after income tax and undistributed subsidiary income (462) 1,378 Equity in undistributed subsidiary income 2,089 3,099 Net income $ 1,627 $ 4,477 Comprehensive income $ 1,638 $ 4,417 2016 2015 Cash flows from operating activities Net Income $ 1,627 $ 4,477 Adjustments: Effect of subsidiaries' operations (2,089) (3,099) Change in other assets and other liabilities 766 (980) Net cash from (used by) operating activities 304 398 Cash flows from financing activities Purchase of treasury shares (30) - Dividends paid on Series B preferred stock (750) (750) Net cash from (used by) financing activities (780) (750) Net change in cash and cash equivalents (476) (352) Beginning cash and cash equivalents 2,673 3,025 Ending cash and cash equivalents $ 2,197 $ 2,673 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Common Share [Abstract] | |
Earnings (Loss) Per Common Share | NOTE 23 – EARNINGS (LOSS) PER COMMON SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and unvested share-based payment awards according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow: December 31, 2016 December 31, 2015 Basic Net income $ 1,627 $ 4,477 Dividends on Series B preferred stock and accretion of discount (857) (857) Net income allocated to common stockholders $ 770 $ 3,620 Weighted average common shares outstanding including unvested share-based payment awards 16,020,847 15,857,127 Less: Unvested share-based payment awards - - Average shares 16,020,847 15,857,127 Basic earnings per common share $ 0.05 $ 0.23 Diluted Net earnings allocated to common stockholders $ 770 $ 3,620 Add back: Preferred Dividends on Series B stock - 857 Net earnings allocated to fully-diluted $ 770 $ 4,477 Weighted average common shares outstanding for basic earnings per common share 16,020,847 15,857,127 Add: Dilutive effects of assumed exercises of stock options 38,184 8,473 Add: Dilutive effects of assumed exercises of Series B preferred stock - 6,857,143 Average shares and dilutive potential common shares 16,059,031 22,722,743 Diluted earnings per common share $ 0.05 $ 0.20 The following potential common shares were anti-dilutive and not considered in computing diluted earnings (loss) per common share. 2016 2015 Stock options 282,971 417,058 Series B preferred stock 6,857,143 - Stock warrants 1,152,125 1,152,125 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | NOTE 24 - CONTINGENT LIABILITIES General Litigation: The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 25 - ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes within each classification of accumulated other comprehensive income, net of tax, for the year ended December 31, 201 6 and December 31, 201 5 and summarizes the significant amounts reclassified out of each component of accumulated other comprehensive income: Changes in Accumulated Other Comprehensive Income by Component For the Year Ended December 31, 2016 and 2015 (1) Unrealized Gains and Losses on Available-for-Sale Securities 2016 2015 Accumulated other comprehensive income (loss), beginning of period $ (9) $ 51 Other comprehensive gain (loss) before reclassifications 11 (72) Less amount reclassified from accumulated other comprehensive loss (2) - 12 Net current-period other comprehensive income (loss) 11 (60) Accumulated other comprehensive income (loss), end of period $ 2 $ (9) (1) All amounts are net of tax. Amounts in parentheses indicate a reduction of other comprehensive income. (2) There were no amounts reclassified out of other comprehensive income for year ended December 31, 2016. There was $12 reclassified out of other comprehensive income for year ended December 31, 2015 due to an early redemption of a municipal security. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation : The consolidated financial statements include Central Federal Corporation (the “Holding Company”) and its wholly-owned subsidiary, CFBank , National Association (CFBank) . On December 1, 2016, CFBank converted from a federal savings institution to a national bank. The Holding Company and CFBank are sometimes collectively referred to herin as the “Company”. Intercompany transactions and balances are eliminated in consolidation. CFBank provides financial services through its four full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio, and through its agency office in Woodmere, Ohio. Its primary deposit products are commercial and retail checking, savings, money market and term certificate accounts. Its primary lending products are commercial and commercial real estate, residential mortgages and installment loans. There are no significant concentrations of loans to any one industry or customer segment. However, our customers’ ability to repay their loans is dependent on general economic conditions and the real estate values in their geographic areas. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with U.S. generally accepted accounting principles (GAAP), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan and lease losses (ALLL), deferred tax assets and fair values of financial instruments are particularly subject to change. |
Cash Flows | Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions and borrowings with original maturities under 90 days. |
Interest-Bearing Deposits in Other Financial Institutions | Interest-Bearing Deposits in Other Financial Institutions : Interest ‑bearing deposits in other financial institutions mature in April, 2019 and are carried at cost. As of December 31, 201 6 , there was $100 in an interest-bearing deposit in other financial institutions. |
Securities | Securities : Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Interest income includes amortization of purchase premium or accretion of discount. Premiums and discounts on securities are amortized or accreted on the level-yield method without anticipating prepayments, except for mortgage-backed securities and collateralized mortgage obligations where prepayments are anticipated based on industry payment trends. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or will more likely than not be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Loans Held for Sale | Loans Held for Sale : Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing rights when mortgage loans held for sale are sold with servicing rights retained. Loans originated as construction loans, that were subsequently transferred to held for sale, are carried at the lower of cost or market. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. |
Loans And Lease | Loans and Leases : Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, adjusted for purchase premiums and discounts, deferred loan fees and costs and an allowance for loan and lease losses (ALLL). Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level ‑yield method without anticipating prepayments. The accrual of interest income on all classes of loans, except other consumer loans, is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Other consumer loans are typically charged off no later than 90 days past due. Past due status is based on the contractual terms of the loan for all classes of loans. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Commercial, multi-family residential real estate loans and commercial real estate loans placed on nonaccrual status are individually classified as impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income in the period in which it is placed in a nonaccrual status. Interest received on such loans is accounted for on the cash-basis or cost ‑recovery method, until qualifying for return to accrual status. Loans are considered for return to accrual status provided all the principal and interest amounts that are contractually due are brought current, there is a current and well documented credit analysis, there is reasonable assurance of repayment of principal and interest, and the customer has demonstrated sustained, amortizing payment performance of at least six months. |
Concentration of Credit Risk | Concentration of Credit Risk : Most of the Company’s primary business activity is with customers located within the Ohio counties of Columbiana, Franklin, Summit, Cuyahoga and contiguous counties. Therefore, the Company’s exposure to credit risk can be affected by changes in the economies within these counties. Although these counties are the Company’s primary market area for loans, the Company originates residential and commercial real estate loans throughout the United States. |
Allowance for Loan Losses (ALLL) | Allowance for Loan and Lease Losses (ALLL) : The ALLL is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that CFBank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans within any loan class for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (TDRs) and classified as impaired. Factors considered by management in determining impairment for all loan classes include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. All loans within the commercial, multi-family residential and commercial real estate segments, regardless of size, and loans of all other classes with balances over $250 are individually evaluated for impairment when they are 90 days past due, or earlier than 90 days past due if information regarding the payment capacity of the borrower indicates that payment in full according to the loan terms is doubtful. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral, less costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and single-family residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. TDRs of all classes of loans are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using each loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. If the payment of the loan is dependent on the sale of the collateral, then costs to liquidate the collateral are included when determining the impairment. For TDRs that subsequently default, the amount of reserve is determined in accordance with the accounting policy for the ALLL. Interest income on all classes of impaired loans that are on nonaccrual status is recognized in accordance with the accounting policy for nonaccrual loans. Cash receipts on all classes of impaired loans that are on nonaccrual status are generally applied to the principal balance outstanding. Interest income on all classes of impaired loans that are not on nonaccrual status is recognized on the accrual method. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. The general reserve component covers non ‑impaired loans of all classes and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by loan class and is based on the actual loss history experienced by the Company over a three-year period. The general component is calculated based on CFBank’s loan balances and actual historical three-year historical loss rates. For loans with little or no actual loss experience, industry estimates are used based on loan segment. This actual loss experience is supplemented with other economic and judgmental factors based on the risks present for each loan class. These economic and judgmental factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: commercial loans ; single-family residential real estate loans; multi-family residential real estate loans; commercial real estate loans; construction loans; home equity lines of credit; and other consumer loans. A description of each segment of the loan portfolio, along with the risk characteristics of each segment , is included below . Commercial loans: Commercial loans include loans to businesses generally located within our primary market area. Those loans are generally secured by business equipment, inventory, accounts receivable and other business assets. In underwriting commercial loans, we consider the net operating income of the borrower , the debt service ratio and the financial strength, expertise and credit history of the business owners and/or guarantors. Because payments on commercial loans are dependent on successful operation of the business enterprise, repayment of such loans may be subject to a greater extent to adverse conditions in the economy. We seek to mitigate these risks through underwriting policies which require such loans to be qualified at origination on the basis of the borrower ’s financial performance and the financial strength of the business owners and/or guarantors. Single-family residential real estate loans: Single-family residential real estate loans include permanent conventional mortgage loans secured by single-family residences located within and outside of our primary market area. Credit approval for single-family residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment and an established credit record. Our policy is to originate single-family residential real estate loans for portfolio in amounts up to 85% of the lower of the appraised value or the purchase price of the property securing the loan, without requiring private mortgage insurance. Loans in excess of 85% of the lower of the appraised value or purchase price of the property securing the loan require private mortgage insurance. CFBank has not engaged in subprime lending, used option adjustable-rate mortgage products or made loans with initial teaser rates. Multi-family residential real estate loans: Multi-family residential real estate loans include loans secured by apartment buildings, condominiums and multi-family residential houses generally located within our primary market area. Underwriting policies provide that multi-family residential real estate loans may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting multi-family residential real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed-rate and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by multi-family residential properties are dependent on successful operation or management of the properties, repayment of multi-family residential real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate multi-family residential real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate multi-family residential real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate multi-family residential real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Commercial real estate loans: Commercial real estate loans include loans secured by owner occupied and non-owner occupied properties used for business purposes, such as manufacturing facilities, office buildings or retail facilities generally located within our primary market area. Underwriting policies provide that commercial real estate loans may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting commercial real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by commercial real estate properties are dependent on successful operation or management of the properties, repayment of commercial real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate commercial real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate commercial real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate commercial real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Construction loans: Construction loans include loans to finance the construction of residential and commercial properties generally located within our primary market area. Construction loans are fixed-rate or adjustable-rate loans which may convert to permanent loans with maturities of up to 30 years. Our policies provide that construction loans may be made in amounts up to 80% of the appraised value of the property, and an independent appraisal of the property is required. Loan proceeds are disbursed in increments as construction progresses and as inspections warrant, and regular inspections are required to monitor the progress of construction. In underwriting construction loans, we consider the property owner’s and/or guarantor’s financial strength, expertise and credit history. Construction financing is considered to involve a higher degree of credit risk than long-term financing on improved, owner occupied real estate. Risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value at completion of construction or development compared to the estimated cost (including interest) of construction. If the estimate of value proves to be inaccurate, we may be confronted with a project, when completed, having a value which is insufficient to assure full repayment. We attempt to reduce such risks on construction loans through inspections of construction progress on the property and by requiring personal guarantees and reviewing current personal financial statements and tax returns, as well as other projects of the developer. Home equity lines of credit: Home equity lines of credit include both loans we originate for portfolio and purchased loans. We originate home equity lines of credit to customers generally within our primary market area. Home equity lines of credit are variable rate loans and the interest rate adjusts monthly at various margins above the prime rate of interest as disclosed in The Wall Street Journal. The margin is based on certain factors including the loan balance, value of collateral, election of auto-payment, and the borrower’s FICO® score. The amount of the line is based on the borrower’s credit, income and equity in the home. When combined with the balance of the prior mortgage liens, these lines generally may not exceed 89.9% of the appraised value of the property at the time of the loan commitment. The lines are secured by a subordinate lien on the underlying real estate and are, therefore, vulnerable to declines in property values in the geographic areas where the properties are located. Credit approval for home equity lines of credit requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral. Collectability of home equity lines of credit are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. In 2005 and 2006, we purchased home equity lines of credit collateralized by properties located throughout the United States. The purchased home equity lines of credit may present higher risk than the home equity lines of credit we originate for our portfolio as they include properties in geographic areas that have experienced significant declines in housing values, such as California, Florida and Virginia. We continue to monitor collateral values and borrower FICO® scores on both purchased and portfolio loans and, when the situation warrants, have frozen the lines of credit. Other consumer loans: Other consumer loans include closed-end home equity, home improvement, and auto and credit card loans to consumers generally located within our primary market area. Credit approval for other consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. CFBank’s charge-off policy for commercial loans, single-family residential real estate loans, multi-family residential real estate loans, commercial real estate loans, construction loans and home equity lines of credit requires management to record a specific reserve or charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be a collateral shortfall related to the estimated value of the collateral securing the loan. Other consumer loans are typically charged off no later than 90 days past due. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales when control over the assets has 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. |
Foreclosed Assets | Foreclosed Assets : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, an adjustment is recorded through expense. Operating costs after acquisition are expensed. |
Joint Ventures | Joint Ventures: The Holding Company contributed funds into a series of joint ventures (equity stake) for the purpose of allocating excess liquidity into higher earning assets while diversifying its revenue sources. The funding for the joint ventures is related to shorter term operating activities and is related to the development of single family real estate in the form of condominiums. Income is recognized based on a rate of return on the outstanding investment balance. As units are sold, the Holding Company receives an additional incentive payment; the incentive payment is recognized as income. The balance outstanding in joint ventures at December 31, 201 6 and December 31, 201 5 was $325 and $1,285 , respectively. Income recognized on the joint ventures was $100 and $265 , respectively, for 201 6 and 201 5 . |
Premises and Equipment | Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight ‑line method with useful lives ranging from 3 to 40 years. Furniture, fixtures and equipment are depreciated using the straight ‑line method with useful lives ranging from 2 to 25 years. Leasehold improvements are depreciated straight-line over the shorter of the useful life or the lease term. |
Federal Home Loan Bank (FHLB) Stock | Federal Home Loan Bank (FHLB) stock: CFBank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Bank Owned Life Insurance | Bank Owned Life Insurance : CFBank purchased life insurance policies on certain directors and employees in 2002. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments : Financial instruments include off ‑balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, and fees associated with origination are booked to non-interest income at the origination date. |
Derivatives | Derivatives : Derivative financial instruments are recognized as assets or liabilities at fair value. The Company's derivatives consist mainly of interest rate swap agreements, which are used as part of its asset liability management program to help manage interest rate risk. The Company does not use derivatives for trading purposes. The derivative transactions are considered instruments with no hedging designation, otherwise known as stand-alone derivatives. Changes in the fair value of the derivatives are reported currently in earnings, as other noninterest income. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives : Commitments to fund mortgage loans to be sold into the secondary market, otherwise known as interest rate locks, are accounted for as free standing derivatives. Fair values of these mortgage derivatives are based on anticipated gains on the underlying loans. Changes in the fair values of these derivatives are included in net gains on sales of loans. |
Stock-Based Compensation | Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to directors and employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the required service period for each separately vesting portion of the award. |
Income Taxes | Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A full valuation allowance was recorded in 2009 to reduce the carrying amount of the Company’s net deferred tax asset to zero. This valuation allowance was reversed in the fourth quarter of 2015. See Note 14 – Income Taxes. 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 realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest related to income tax matters as interest expense and penalties related to income tax matters as other noninterest expense. |
Retirement Plans | Retirement Plans : Pension expense is the amount of annual contributions by the Company to the multi-employer contributory trusteed pension plan. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Supplemental retirement plan expense allocates the benefits over years of service. |
Reverse Stock Split | Reverse Stock Split : Reclassifications did not impact prior period net loss or total stockholders' equity. On May 4, 2012, the Company completed a 1 -for-5 reverse stock split, whereby every 5 shares of the Company’s common stock were reclassified into one share of common stock. All share and per share amounts for all periods presented have been adjusted to reflect the reverse split as though it had occurred prior to the earliest period presented. |
Earnings (Loss) Per Common Share | Earnings Per Common Share : Basic earnings per common share is net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are restated for all reverse stock splits through the date of issuance of the financial statements. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, which are also recognized as a separate component of equity. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements. See Note 24 – Contingent Liabilities. |
Restrictions on Cash | Restrictions on Cash : Cash on hand or on deposit with the Federal Reserve Bank (FRB) is required to meet regulatory reserve and clearing requirements. The reserve requirement at December 31, 2016 was $267 . Cash on deposit with the FHLB includes $3,300 pledged as collateral for FHLB advances. |
Equity | Equity : Treasury stock is carried at cost. The carrying value of preferred stock and the common stock warrant is based on allocation of issuance proceeds, net of issuance costs, in proportion to their relative fair values. Preferred stock is carried net of the discount established through the allocation of proceeds. |
Dividend Restriction | Dividend Restriction : Banking regulations require us to maintain certain capital levels and may limit the dividends paid by CFBank to the Holding Company or by the Holding Company to stockholders. The ability of the Holding Company to pay dividends on its common stock and Series B Preferred Stock is generally dependent upon the receipt of dividends and other distributions from CFBank. The Holding Company is a legal entity that is separate and distinct from CFBank, which has no obligation to make any dividends or other funds available for the payment of dividends by the Holding Company. The Holding Company also is subject to various legal and regulatory policies and guidelines impacting the Holding Company’s ability to pay dividends on its stock . P rior to January 8, 2016, pursuant to the commitments made to the FRB in connection with the termination of the Holding Company Order (as further discussed in Note 2) , the Holding Company was not permitted to declare or pay dividends on its stock without the prior approval or written non-objection of the FRB. In addition, the Holding Company’s ability to pay dividends on its stock is conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Finally, so long as the Company’s Series B Preferred Stock remains outstanding, the Holding Company will be prohibited from paying dividends on (other than dividends payable solely in shares) the Company’s common stock, for the then-current dividend period, unless full dividends on the Series B Preferred Stock have been paid or set aside for payment. Dividends on the Series B Preferred Stock are non-cumulative, which means that if for any reason we do not declare cash dividends on the Series B Preferred Stock for a quarterly dividend period we will have no obligation to pay any dividends for that period (i.e., the dividends will not accrue or cumulate), whether or not we declare dividends on the Series B Preferred Stock for any subsequent dividend period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 6 – Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Operating Segments : While management monitors and analyzes the revenue streams of the Company’s various products and services, the operations and financial performance is evaluated on a Company ‑wide basis. Operating results are not reviewed by senior management to make resource allocation or performance decisions. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior period net loss or stockholders’ equity. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards : As extended by ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, Accounting Standards update ( ASU ) No. 2014-09 and the clarifying ASUs are effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Transitional guidance is included in the updates. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. While interest income is specifically out of scope of this standard, management is currently evaluating the revenue streams within “noninterest income” to assess the applicability of this standard. Since the Company’s products are substantially financial in nature, adoption of ASU No. 201 5 - 14 is not expected to have a material impact on the Company’s consolidated financial statements . In June 2014 the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (June 2014). This Update defines the accounting treatment for share-based payments and “resolves the diverse accounting treatment of those awards in practice.” The new requirement mandates that “a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.” Compensation cost will now be recognized in the period in which it becomes likely that the performance target will be met. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. Adoption of the ASU 2014-12 on January 1, 2016 did not have an impact on the Company's accounting disclosures. The FASB has issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes how deferred taxes are classified on organizations’ balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Adoption of the ASU is not expected to have a significant effect on the Company's consolidated financial statements . In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 amends the guidance in U.S. GAAP on the accounting for equity investments, financial liabilities under the fair value option and the presentations and disclosure requirements of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option. The Company will adopt the methodologies prescribed by the ASU by the date required. The Company continues to evaluate this standard, however, adoption of the ASU is not expected to have a significant impact on the Company’s consolidated financial statements. On February 25, 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new ASU, lessees will recognize lease assets and liabilities on their balance sheet for all leases with terms of more than 12 months. The new lessee accounting model retains two types of leases, and is consistent with the lessee accounting model under existing GAAP. One type of lease (finance leases) will be accounted for in substantially the same manner as capital leases are accounted for today. The other type of lease (operating leases) will be accounted for (both in the income statement and statement of cash flows) in a manner consistent with today’s operating leases. Lessor accounting under the new standard is fundamentally consistent with existing GAAP. Lessees and lessors would be required to provide additional qualitative and quantitative disclosures to help financial statement users assess the amount, timing, and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an organization’s leasing activities. For public business entities, the final leases standard will be effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Early application is permitted. The Company continues to evaluate the provision of the new lease standard but, due to the small number of lease agreements presently in effect for the Company, believes the new guidance will not have a significant impact on the Company’s consolidated financial statements. The FASB has issued ASU No. 2015-03 , Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amendments should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line items, i.e., debt issuance cost asset and the debt liability. The Company has adopted the methodologies prescribed by this ASU. Adoption of the ASU did not have a significant effect on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07 , Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. ASU No. 2016-07 affects all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments in this update eliminate the requirement that, when an investment qualifies for use of the equity method, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. ASU No. 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in ASU No. 2016-07 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Earlier application is permitted. Adoption of ASU No. 2016-07 is not expected to have a material impact on the Company’s consolidated financial statements . In March 2016, the FASB issued ASU No. 2016-09 , Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU No. 2016-09 affects all entities that issue share-based payment awards to their employees. The new guidance involves several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under ASU No. 2016-09, any excess tax benefits or tax deficiencies should be recognized as income tax expense or benefit in the income statement. Excess tax benefits are to be classified as an operating activity in the statement of cash flows. In accruing compensation cost, an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as required under current guidance, or account for forfeitures when they occur. For an award to qualify for equity classification, an entity cannot partially settle the award in excess of the employer's maximum statutory withholding requirements. Such cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity in the statement of cash flows. The amendments in ASU No. 2016-09 are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Adoption of ASU No. 2016-07 is not expected to have a material impact on the Company’s consolidated financial statements . The FASB has issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. While interest income is specifically out of scope of this standard, management is currently evaluating the revenue streams within “noninterest income’ to assess the applicability of this standard. Since the Company’s products are substantially financial in nature, adoption of ASU No. 2016-10 is not expected to have a material impact on the Company’s consolidated financial statements . The FASB has issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. This ASU rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. SEC Staff Announcement, “Rescission of Certain SEC Staff Observer Comments upon Adoption of Topic 606, Revenue from Contracts with Customers,” was announced at the March 3, 2016, EITF meeting. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The SEC Staff is rescinding the following SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, effective upon adoption of Topic 606, Revenue from Contracts with Customers. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: · Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; · Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; · Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor’s Products), which is codified in paragraph 605-50-S99-1; and · Accounting for Gas-Balancing Arrangements (i.e., use of the “entitlements method”), which is codified in paragraph 932-10-S99-5. While interest income is specifically out of scope of this standard, management is currently evaluating the revenue streams within “noninterest income’ to assess the applicability of this standard. Adoption of ASU No. 2016-11 is not expected to have a material impact on the Company’s consolidated financial statements . In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . O nce effective, ASU No. 2016-13 will significantly change current guidance for recognizing impairment of financial instruments. Current guidance requires an "incurred loss" methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. ASU No. 2016-13 replaces the incurred loss impairment methodology with a new methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to inform credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required. ASU No. 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Under the new guidance, entities will determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Any credit loss will be recognized as an allowance for credit losses on available-for-sale debt securities rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings rather than as interest income over time, as currently required. ASU No. 2016-13 eliminates the current accounting model for purchased credit impaired loans and debt securities. Instead, purchased financial assets with credit deterioration will be recorded gross of estimated credit losses as of the date of acquisition and the estimated credit losses amounts will be added to the allowance for credit losses. Thereafter, entities will account for additional impairment of such purchased assets using the models listed above. ASU No. 2016-13 will take effect for U.S. Securities and Exchange Commission (SEC) filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. While the Company generally expects that the implementation of ASU 2016-13 has the potential to increase their allowance for loan losses balance, the Company is continuing to evaluate the potential impact on the Company’s financial statements. Presentations have been made to the Board of Directors, and management is currently assessing any additional data and system requirements necessary for adoption . |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Securities [Abstract] | |
Amortized cost and fair value of available-for-sale securities portfolio | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2016 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 13,521 $ 11 $ 27 $ 13,505 Mortgage-backed securities - residential 345 12 - 357 Collateralized mortgage obligations 189 7 - 196 Total $ 14,055 $ 30 $ 27 $ 14,058 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2015 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,575 $ 4 $ 43 $ 8,536 Mortgage-backed securities - residential 463 18 - 481 Collateralized mortgage obligations 339 12 - 351 Total $ 9,377 $ 34 $ 43 $ 9,368 |
Securities classified by maturity date | December 31, 2016 December 31, 2015 Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 2,518 $ 2,518 $ 1,002 $ 1,000 Due from one to five years 11,003 10,987 7,573 7,536 Mortgage-backed securities - residential 345 357 463 481 Collateralized mortgage obligations 189 196 339 351 Total $ 14,055 $ 14,058 $ 9,377 $ 9,368 |
Fair value of securities pledged | 2016 2015 Pledged as collateral for: FHLB advances $ 2,327 $ 3,530 Public deposits 2,043 2,055 Interest-rate swaps 195 261 Total $ 4,565 $ 5,846 |
Securities with unrealized losses | December 31, 2016 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 10,492 $ 27 $ - $ - $ 10,492 $ 27 Mortgage-backed securities - residential (1) 1 - - - 1 - Total temporarily impaired $ 10,493 $ 27 $ - $ - $ 10,493 $ 27 (1) Securities with an unrealized loss were less than $1 resulting in rounding to zero. December 31, 2015 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 6,541 $ 43 $ - $ - $ 6,541 $ 43 Mortgage-backed securities - residential - - - - - - Total temporarily impaired $ 6,541 $ 43 $ - $ - $ 6,541 $ 43 |
Loans And Leases (Tables)
Loans And Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans And Leases [Abstract] | |
Schedule of loan portfolio segments | December 31, 2016 December 31, 2015 Commercial (1) $ 71,334 $ 43,744 Real estate: Single-family residential 92,544 81,985 Multi-family residential 34,291 28,950 Commercial 105,313 96,488 Construction 25,822 24,662 Consumer: Home equity lines of credit 23,109 21,837 Other 637 6,018 Subtotal 353,050 303,684 Less: ALLL (6,925) (6,620) Loans and Leases, net $ 346,125 $ 297,064 (1) Includes $2,874 of commercial leases . |
Activity in ALLL by portfolio segment | December 31, 2016 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 1,380 $ 691 $ 705 $ 2,710 $ 561 $ 474 $ 99 $ 6,620 Addition to (reduction in) provision for loan losses 390 149 (132) (128) 19 (4) (64) 230 Charge-offs (123) (147) - - - (53) (1) (324) Recoveries - 42 143 145 - 69 - 399 Ending balance $ 1,647 $ 735 $ 716 $ 2,727 $ 580 $ 486 $ 34 $ 6,925 December 31, 2015 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 1,346 $ 634 $ 818 $ 2,541 $ 442 $ 441 $ 94 $ 6,316 Addition to (reduction in) provision for loan losses 17 96 (113) 161 119 (39) 9 250 Charge-offs (8) (40) - (25) - (41) (10) (124) Recoveries 25 1 - 33 - 113 6 178 Ending balance $ 1,380 $ 691 $ 705 $ 2,710 $ 561 $ 474 $ 99 $ 6,620 |
Balance in ALLL and recorded investment in loans by portfolio segment and based on impairment method | The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 201 6 : Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1 $ - $ - $ 21 $ - $ - $ - $ 22 Collectively evaluated for impairment 1,646 735 716 2,706 580 486 34 6,903 Total ending allowance balance $ 1,647 $ 735 $ 716 $ 2,727 $ 580 $ 486 $ 34 $ 6,925 Loans: Individually evaluated for impairment $ 557 $ 122 $ 37 $ 2,732 $ - $ - $ - $ 3,448 Collectively evaluated for impairment 70,777 92,422 34,254 102,581 25,822 23,109 637 349,602 Total ending loan balance $ 71,334 $ 92,544 $ 34,291 $ 105,313 $ 25,822 $ 23,109 $ 637 $ 353,050 The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 201 5 : Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 5 $ 1 $ - $ 14 $ - $ - $ - $ 20 Collectively evaluated for impairment 1,375 690 705 2,696 561 474 99 6,600 Total ending allowance balance $ 1,380 $ 691 $ 705 $ 2,710 $ 561 $ 474 $ 99 $ 6,620 Loans: Individually evaluated for impairment 422 $ 289 $ 1,590 $ 3,449 $ - $ - $ - $ 5,750 Collectively evaluated for impairment 43,322 81,696 27,360 93,039 24,662 21,837 6,018 297,934 Total ending loan balance $ 43,744 $ 81,985 $ 28,950 $ 96,488 $ 24,662 $ 21,837 $ 6,018 $ 303,684 |
Individually evaluated for impairment by class of loans | The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 201 6 . The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 476 $ 358 $ - $ 436 $ 13 Real estate: Single-family residential - - - - - Multi-family residential 37 37 - 41 2 Commercial: Non-owner occupied 112 112 - 114 8 Owner occupied 871 350 - 360 46 Land - - - - - Total with no allowance recorded 1,496 857 - 951 69 With an allowance recorded: Commercial 199 199 1 232 9 Real estate: Single-family residential 122 122 - 125 7 Multi-family residential - - - - - Commercial: Non-owner occupied 2,068 2,068 19 2,086 126 Owner occupied 202 202 2 208 10 Land - - - - - Total with an allowance recorded 2,591 2,591 22 2,651 152 Total $ 4,087 $ 3,448 $ 22 $ 3,602 $ 221 The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 201 5 . The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 36 $ 28 $ - $ 65 $ 1 Real estate: Single-family residential 322 161 - 166 - Multi-family residential 1,545 1,545 - 1,561 95 Commercial: Non-owner occupied 546 446 - 455 - Owner occupied 688 167 - 174 39 Land - - - - - Total with no allowance recorded 3,137 2,347 - 2,421 135 With an allowance recorded: Commercial 394 394 5 439 12 Real estate: Single-family residential 128 128 1 130 7 Multi-family residential 45 45 - 48 3 Commercial: Non-owner occupied 2,224 2,224 9 2,242 136 Owner occupied 363 363 1 371 20 Land 294 249 4 274 18 Total with an allowance recorded 3,448 3,403 20 3,504 196 Total $ 6,585 $ 5,750 $ 20 $ 5,925 $ 331 |
Recorded investment in nonaccrual loans by class of loans | 2016 2015 Loans past due over 90 days still on accrual $ - $ - Nonaccrual loans: Commercial 263 224 Real estate: Single-family residential 397 640 Commercial: Non-owner occupied - 446 Consumer: Home equity lines of credit: Originated for portfolio 44 20 Purchased for portfolio - 95 Total nonaccrual 704 1,425 Total nonperforming loans $ 704 $ 1,425 |
Aging of recorded investment in past due loans by class of loans | The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 201 6 : 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ - $ 119 $ 119 $ 71,215 $ 144 Real estate: Single-family residential 284 49 106 439 92,105 291 Multi-family residential - - - - 34,291 - Commercial: Non-owner occupied - - - - 60,936 - Owner occupied 269 600 - 869 34,891 - Land - - - - 8,617 - Construction 48 - - 48 25,774 - Consumer: Home equity lines of credit: Originated for portfolio - 15 - 15 22,440 44 Purchased for portfolio 69 - - 69 585 - Other - - - - 637 - Total $ 670 $ 664 $ 225 $ 1,559 $ 351,491 $ 479 The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 201 5 : 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ 9 $ 28 $ 37 $ 43,707 $ 196 Real estate: Single-family residential 598 161 148 907 81,078 492 Multi-family residential - - - - 28,950 - Commercial: Non-owner occupied - 446 - 446 57,573 446 Owner occupied - - - - 30,169 - Land - - - - 8,300 - Construction - - - - 24,662 - Consumer: Home equity lines of credit: Originated for portfolio - - - - 20,789 20 Purchased for portfolio - - - - 1,048 95 Other - - - - 6,018 - Total $ 598 $ 616 $ 176 $ 1,390 $ 302,294 $ 1,249 |
Loans modified as TDRs by class of loans | The following table presents loans modified as TDRs by class of loans during the year ended December 31, 201 6 : Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 1 $ 339 $ 339 1 $ 339 $ 339 The following table presents loans modified as TDRs by class of loans during the year ended December 31, 201 5 : Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate: Single-family residential 1 $ 9 $ 9 Consumer: Home equity lines of credit: Originated for portfolio 1 9 9 2 $ 18 $ 18 |
Schedule of debtor troubled debt restructuring, subsequent periods | 2016 2015 Commercial $ 144 $ 195 Real estate: Single-family residential - 161 Total $ 144 $ 356 |
Financing receivable credit quality indicators | The recorded investment in loans by risk category and by class of loans as of December 31, 201 6 and based on the most recent analysis performed follows. There were no loans rated doubtful at December 31, 201 6 . Not Rated Pass Special Mention Substandard Total Commercial $ 47 $ 70,444 $ 286 $ 557 $ 71,334 Real estate: Single-family residential 92,130 - - 414 92,544 Multi-family residential - 33,615 505 171 34,291 Commercial: Non-owner occupied 115 58,183 1,782 856 60,936 Owner occupied - 33,493 1,048 1,219 35,760 Land - 6,380 - 2,237 8,617 Construction 1,997 23,825 - - 25,822 Consumer: Home equity lines of credit: Originated for portfolio 22,328 - - 127 22,455 Purchased for portfolio 512 - - 142 654 Other 637 - - - 637 $ 117,766 $ 225,940 $ 3,621 $ 5,723 $ 353,050 The recorded investment in loans by risk category and class of loans as of December 31, 201 5 follows. There were no loans rated doubtful at December 31, 201 5 . Not Rated Pass Special Mention Substandard Total Commercial $ 83 $ 41,473 $ 1,892 $ 296 $ 43,744 Real estate: Single-family residential 81,318 - - 667 81,985 Multi-family residential 2,777 25,466 528 179 28,950 Commercial: Non-owner occupied 125 54,674 1,852 1,368 58,019 Owner occupied - 26,923 3,079 167 30,169 Land - 5,720 - 2,580 8,300 Construction 11,252 13,410 - - 24,662 Consumer: Home equity lines of credit: Originated for portfolio 20,677 - - 112 20,789 Purchased for portfolio 802 - - 246 1,048 Other 2,172 3,846 - - 6,018 $ 119,206 $ 171,512 $ 7,351 $ 5,615 $ 303,684 |
Foreclosed Assets (Tables)
Foreclosed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Foreclosed Assets [Abstract] | |
Foreclosed assets | 2016 2015 Commercial real estate $ - $ 1,636 Single-family residential 204 - Subtotal 204 1,636 Valuation Allowance - - Total $ 204 $ 1,636 |
Expenses related to foreclosed assets | 2016 2015 Net loss (gain) on sales $ (4) $ - Operating expenses, net of rental income 69 137 $ 65 $ 137 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities | Fair Value Measurements at December 31, 2016 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 13,505 Mortgage-backed securities - residential 357 Collateralized mortgage obligations 196 Total securities available for sale $ 14,058 Loans held for sale $ 2,812 Yield maintenance provisions (embedded derivatives) $ 122 Interest rate lock commitments $ 9 Financial Liabilities: Interest-rate swaps $ 122 Fair Value Measurements at December 31, 2015 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,536 Mortgage-backed securities - residential 481 Collateralized mortgage obligations 351 Total securities available for sale $ 9,368 Loans held for sale $ 889 Yield maintenance provisions (embedded derivatives) $ 213 Interest rate lock commitments $ 8 Financial Liabilities: Interest-rate swaps $ 213 |
Assets measured at fair value on a non-recurring basis | Fair Value Measurements at December 31, 2016 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 130 Real Estate: Single-family residential 122 Multi-family residential 37 Commercial: Non-owner occupied 2,161 Owner occupied 200 Land - Total impaired loans $ 2,650 Fair Value Measurements at December 31, 2015 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 143 Real Estate: Single-family residential 128 Multi-family residential 45 Commercial: Non-owner occupied 2,215 Owner occupied 213 Land 245 Total impaired loans $ 2,989 |
Financial instruments measured at fair value on a non-recurring basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 201 6 : Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 130 Comparable sales approach Adjustment for differences between the comparable market transactions 3.48% Real estate: Single-family residential 122 Comparable sales approach Adjustment for differences between the comparable market transactions ( 1.81% , 3.61% ) 2.91% Multi-family residential 37 Comparable sales approach Adjustment for differences between the comparable market transactions 9.64% Commercial: Non-owner occupied 2,161 Comparable sales approach Adjustment for differences between the comparable market transactions ( 1.10% , 5.74% ) 1.35% Owner occupied 200 Comparable sales approach Adjustment for differences between the comparable market transactions -4.46% The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 201 5 : Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 143 Comparable sales approach Adjustments by management to reflect current discount rates 1.10% Real estate: Single -family residential 128 Comparable sales approach Adjustment for differences between the comparable market transactions ( -1.23% , 4.63% ) -.17% Multi-family residential 45 Comparable sales approach Adjustment for differences between the comparable market transactions 5.74% Commercial: Non-owner occupied 2,215 Comparable sales approach Adjustment for differences between the comparable market transactions ( 1.10% , 5.74% ) 1.35% Owner occupied 213 Comparable sales approach Adjustment for differences between the comparable market transactions -29.30% Land 245 Comparable sales approach Adjustment for differences between the comparable market transactions ( -1.89% , 2.54% ) .08% |
Aggregate fair value, contractual balance (including accrued interest) and gain or loss | December 31, 2016 December 31, 2015 Aggregate fair value $ 2,812 $ 889 Contractual balance 2,801 884 Gain (loss) 11 5 |
Amount of gains and losses from changes in fair value included in earnings | 2016 2015 Interest income $ 60 $ 56 Interest expense - - Change in fair value 6 (10) Total change in fair value $ 66 $ 46 |
Carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments at year-end were as follows: Fair Value Measurements at December 31, 2016 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 57,941 $ 57,941 $ - $ - $ 57,941 Interest-bearing deposits in other financial institutions 100 100 - - 100 Securities available for sale 14,058 - 14,058 - 14,058 Loans held for sale 2,812 - 2,812 - 2,812 Loans, net 346,125 - - 343,523 343,523 FHLB stock 1,942 n/a n/a n/a n/a Accrued interest receivable 1,054 13 40 1,001 1,054 Yield maintenance provisions (embedded derivatives) 122 - 122 - 122 Interest rate lock commitments 9 - 9 - 9 Financial liabilities Deposits $ (375,364) $ (202,158) $ (171,967) $ - $ (374,125) FHLB advances and other borrowings (13,500) - (13,597) - (13,597) Advances by borrowers for taxes and insurance (408) - - (408) (408) Subordinated debentures (5,155) - (3,411) - (3,411) Accrued interest payable (78) (2) (76) - (78) Interest-rate swaps (122) - (122) - (122) The carrying amounts and estimated fair values of financial instruments at December 31, 201 5 were as follows: Fair Value Measurements at December 31, 2015 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 25,895 $ 25,895 $ - $ - $ 25,895 Interest-bearing deposits in other financial institutions - - - - - Securities available for sale 9,368 - 9,368 - 9,368 Loans held for sale 889 - 889 - 889 Loans, net 297,064 - - 295,498 295,498 FHLB stock 1,942 n/a n/a n/a n/a Accrued interest receivable 831 1 21 809 831 Yield maintenance provisions (embedded derivatives) 213 - 213 - 213 Interest rate lock commitments 8 - 8 - 8 Financial liabilities Deposits $ (290,467) $ (147,523) $ (143,236) $ - $ (290,759) FHLB advances and other borrowings (14,500) - (14,693) - (14,693) Advances by borrowers for taxes and insurance (656) - - (656) (656) Subordinated debentures (5,155) - (2,269) - (2,269) Accrued interest payable (44) - (44) - (44) Interest-rate swaps (213) - (213) - (213) |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loan Servicing [Abstract] | |
Principal Balances of Mortgage Loans at Year-End | December 31, 2016 December 31, 2015 Mortgage loans serviced for Freddie Mac $ 4,261 $ 5,593 |
Premises And Equipment (Tables)
Premises And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Premises And Equipment [Abstract] | |
Year-End Premises and Equipment | December 31, 2016 December 31, 2015 Land and land improvements $ 1,293 $ 1,293 Buildings 3,832 3,827 Furniture, fixtures and equipment 2,150 2,655 7,275 7,775 Less: Accumulated Depreciation (3,846) (4,166) $ 3,429 $ 3,609 |
Rent Commitments | 2017 $ 320 2018 321 2019 322 2020 324 2021 325 Thereafter 858 $ 2,470 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Deposits | 2017 $ 108,620 2018 33,617 2019 7,749 2020 14,626 2021 7,697 Thereafter - Total $ 172,309 |
FHLB Advances (Tables)
FHLB Advances (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FHLB Advances [Abstract] | |
Advances from the FHLB | Weighted Average Rate December 31, 2016 December 31, 2015 Fixed Rate Advances Maturities: 2016 $ - $ 5,000 2017 1.12% 2,500 1,500 2019 1.62% 3,500 2,500 2020 2.02% 3,500 2,500 2021 2.32% 4,000 3,000 Total $ 13,500 $ 14,500 |
Schedule of federal home loan advances pledged by assets | December 31, 2016 December 31, 2015 Single-family mortgage loans $ 38,342 $ 29,490 Multi-family mortgage loans 14,854 8,185 Commercial real estate loans (1-4 family) 2,793 3,155 Securities 2,327 3,530 Cash 3,300 3,300 Total $ 61,616 $ 47,660 |
Federal home loan advances outstanding maturity period | December 31, 2016 2017 $ 2,500 2018 - 2019 3,500 2020 3,500 2021 4,000 $ 13,500 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Borrowings [Abstract] | |
Assets pledged as collateral with FRB | 2016 2015 Commercial loans $ 16,380 $ 19,696 Commercial real estate loans 39,230 37,702 $ 55,610 $ 57,398 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Tax Expense | December 31, 2016 December 31, 2015 Current Federal $ 187 $ 58 Deferred Federal (1) 623 (3,251) Total $ 810 $ (3,193) (1) Includes tax benefit of operating loss carryforwards of $717 and $531 for the years ended December 31, 2016 and 2015. |
Effective Tax Rates Differ from Federal Statutory Rate | December 31, 2016 December 31, 2015 Federal Statutory rate times financial statement income (loss) $ 829 $ 436 Effect of: Incentive Stock Options 6 33 Bank owned life insurance income (45) (45) Increase (decrease) in deferred tax valuation allowance - (3,656) Other 20 39 $ 810 $ (3,193) Effective tax rate 33% -249% |
Deferred Tax Assets and Liabilities | 2016 2015 Deferred tax assets: Allowance for loan and lease losses $ 1,575 $ 1,497 Compensation related issues 353 314 Deferred loan fees 155 118 AMT Credit 50 105 Nonaccrual interest 41 132 Net operating loss carry forward 863 1,580 Other 70 2 3,107 3,748 Deferred tax liability: FHLB stock dividend 366 366 Mortgage servicing rights 2 4 Depreciation 47 43 Prepaid expenses 63 78 Mark-to-market Loans 2 3 480 494 Net deferred tax asset $ 2,627 $ 3,254 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related-Party Transactions [Abstract] | |
Loans to Principal Officers, Directors and Affiliates | Beginning balance $ 635 New loans 1,826 Effect of changes in composition of related parties - Repayments (62) Ending balance $ 2,399 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Summary Of Stock Option Activity | Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Intrinsic Value Outstanding at beginning of year 566,696 $ 1.48 Cancelled or Forfeited (23,950) 2.01 Outstanding at end of period 542,746 $ 1.46 6.4 $ 198,040 Expected to vest - $ - - $ - Exercisable at end of period 542,746 $ 1.46 6.4 $ 198,040 |
Summary of changes in the Company's nonvested restricted shares | Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at January 1, 2016 200,500 $ 1.37 Granted 292,000 1.64 Vested (66,834) 1.37 Forfeited - - Nonvested at December 31, 2016 425,666 $ 1.56 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Matters [Abstract] | |
Actual and required capital amounts and ratios of CFBank | To Be Well Minimum Capital Minimum Capital Capitalized Under Required-Basel III Required-Basel III Applicable Regulatory Actual Phase-In Schedule Fully Phased-In Capital Standards Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital to risk weighted assets $ 45,118 12.46% $ 31,256 8.63% $ 38,029 10.50% $ 36,218 10.00% Tier 1 (Core) Capital to risk weighted assets 40,556 11.20% 24,013 6.63% 30,785 8.50% 28,974 8.00% Common equity tier 1 capital to risk-weighted assets 40,556 11.20% 18,580 5.13% 25,353 7.00% 23,542 6.50% Tier 1 (Core) Capital to adjusted total assets (Leverage ratio) 40,556 9.66% 16,792 4.00% 16,792 4.00% 20,991 5.00% To Be Well Capitalized Under Required For Capital Applicable Regulatory Pursuant to Actual Adequacy Purposes Capital Standards OCC Commitment (1) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31,2015 Total Capital to risk weighted assets $ 41,528 13.67% $ 24,310 8.00% $ 30,388 10.00% $ N/A N/A Tier 1 (Core) Capital to risk weighted assets 37,694 12.40% 18,233 6.00% 24,310 8.00% N/A N/A Common equity tier 1 capital to risk-weighted assets 37,694 12.40% 13,675 4.50% 19,752 6.50% N/A N/A Tier 1 (Core) Capital to adjusted total assets 37,694 11.12% 13,557 4.00% 16,946 5.00% N/A N/A (1) The heightened capital requirements were applicable to CFBank until December 23, 2015, under the CFBank Order and the subsequent commitments made by CFBank to the OCC. See Note 2- Regulatory Matters for additional info rmation . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments [Abstract] | |
Summary of derivative instruments | 2016 2015 Notional amount $ 2,280 $ 2,877 Weighted average pay rate on interest-rate swaps 3.74% 3.67% Weighted average receive rate on interest-rate swaps 0.75% 0.39% Weighted average maturity (years) 3.1 4.0 Fair value of interest-rate swaps $ (122) $ (213) Fair value of yield maintenance provisions $ 122 $ 213 |
Loan Commitments And Other Re50
Loan Commitments And Other Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loan Commitments And Other Related Activities [Abstract] | |
Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk | 2016 2015 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 21,335 $ 22,171 $ 4,623 $ 15,187 Unused lines of credit $ 3,714 $ 29,621 $ 647 $ 19,764 Standby letters of credit $ 991 $ - $ 1,154 $ - |
Parent Company Only Condensed51
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company Only Condensed Financial Information [Abstract] | |
Condensed Balance Sheets | 2016 2015 Assets Cash and cash equivalents $ 2,197 $ 2,673 Investment in banking subsidiary 41,448 37,745 Investment in and advances to other subsidiary 225 222 Other assets 901 3,112 Total assets $ 44,771 $ 43,752 Liabilities and Equity Subordinated debentures $ 5,155 $ 5,155 Accrued expenses and other liabilities 324 285 Stockholders' equity 39,292 38,312 Total liabilities and stockholders' equity $ 44,771 $ 43,752 |
Condensed Statements of Operations | 2016 2015 Interest income $ 2 $ 1 Other income 131 291 Interest expense 185 164 Other expense 646 548 Loss before income tax and undistributed subsidiary income (698) (420) Tax effect 236 1,798 Gain (loss) after income tax and undistributed subsidiary income (462) 1,378 Equity in undistributed subsidiary income 2,089 3,099 Net income $ 1,627 $ 4,477 Comprehensive income $ 1,638 $ 4,417 |
Condensed Statements of Cash Flows | 2016 2015 Cash flows from operating activities Net Income $ 1,627 $ 4,477 Adjustments: Effect of subsidiaries' operations (2,089) (3,099) Change in other assets and other liabilities 766 (980) Net cash from (used by) operating activities 304 398 Cash flows from financing activities Purchase of treasury shares (30) - Dividends paid on Series B preferred stock (750) (750) Net cash from (used by) financing activities (780) (750) Net change in cash and cash equivalents (476) (352) Beginning cash and cash equivalents 2,673 3,025 Ending cash and cash equivalents $ 2,197 $ 2,673 |
Earnings (Loss) Per Common Sh52
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Common Share [Abstract] | |
Computation of Earnings Per Share | December 31, 2016 December 31, 2015 Basic Net income $ 1,627 $ 4,477 Dividends on Series B preferred stock and accretion of discount (857) (857) Net income allocated to common stockholders $ 770 $ 3,620 Weighted average common shares outstanding including unvested share-based payment awards 16,020,847 15,857,127 Less: Unvested share-based payment awards - - Average shares 16,020,847 15,857,127 Basic earnings per common share $ 0.05 $ 0.23 Diluted Net earnings allocated to common stockholders $ 770 $ 3,620 Add back: Preferred Dividends on Series B stock - 857 Net earnings allocated to fully-diluted $ 770 $ 4,477 Weighted average common shares outstanding for basic earnings per common share 16,020,847 15,857,127 Add: Dilutive effects of assumed exercises of stock options 38,184 8,473 Add: Dilutive effects of assumed exercises of Series B preferred stock - 6,857,143 Average shares and dilutive potential common shares 16,059,031 22,722,743 Diluted earnings per common share $ 0.05 $ 0.20 |
Summary of Anti-Dilutive Options or Warrants | 2016 2015 Stock options 282,971 417,058 Series B preferred stock 6,857,143 - Stock warrants 1,152,125 1,152,125 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Changes in Accumulated Other Comprehensive Income by Component For the Year Ended December 31, 2016 and 2015 (1) Unrealized Gains and Losses on Available-for-Sale Securities 2016 2015 Accumulated other comprehensive income (loss), beginning of period $ (9) $ 51 Other comprehensive gain (loss) before reclassifications 11 (72) Less amount reclassified from accumulated other comprehensive loss (2) - 12 Net current-period other comprehensive income (loss) 11 (60) Accumulated other comprehensive income (loss), end of period $ 2 $ (9) (1) All amounts are net of tax. Amounts in parentheses indicate a reduction of other comprehensive income. (2) There were no amounts reclassified out of other comprehensive income for year ended December 31, 2016. There was $12 reclassified out of other comprehensive income for year ended December 31, 2015 due to an early redemption of a municipal security. |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Details) $ in Thousands | May 04, 2012 | Dec. 31, 2016USD ($)store | Dec. 31, 2015USD ($) |
Significant Accounting Policies [Line Items] | |||
Number of full-service banking offices | store | 4 | ||
Interest-bearing deposits in other financial institutions | $ 100 | ||
Minimum balance of loans individually evaluated for impairment | 250 | ||
Total original investment into joint ventures | 325 | $ 1,285 | |
Incentive payment recognized as income | $ 100 | 265 | |
Tax benefit greater than being realized on examination | 50.00% | ||
Stock split description | On May 4, 2012, the Company completed a 1-for-5 reverse stock split, whereby every 5 shares of the Company's common stock were reclassified into one share of common stock. | ||
Reverse stock split ratio | 0.2 | ||
FRB regulatory reserve requirement | $ 267 | ||
Collateral pledged to secure advances | 61,616 | 47,660 | |
Cash [Member] | |||
Significant Accounting Policies [Line Items] | |||
Collateral pledged to secure advances | $ 3,300 | 3,300 | |
Minimum [Member] | Buildings and related components [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Minimum [Member] | Furniture, fixtures and equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 2 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Home equity lines of credit combined with the balance of the prior mortgage liens | 89.90% | ||
Maximum [Member] | Buildings and related components [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 40 years | ||
Maximum [Member] | Furniture, fixtures and equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 25 years | ||
Single-Family Mortgage Loans [Member] | |||
Significant Accounting Policies [Line Items] | |||
Collateral pledged to secure advances | $ 38,342 | 29,490 | |
Single-Family Mortgage Loans [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Lending amount up to the percentage of collateral | 85.00% | ||
Multi-Family Mortgage Loans [Member] | |||
Significant Accounting Policies [Line Items] | |||
Collateral pledged to secure advances | $ 14,854 | 8,185 | |
Multi-Family Mortgage Loans [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Fixed rates loans limit, period | 3 years | ||
Multi-Family Mortgage Loans [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Lending amount up to the percentage of collateral | 85.00% | ||
Fixed rates loans limit, period | 5 years | ||
Commercial Real Estate [Member] | |||
Significant Accounting Policies [Line Items] | |||
Collateral pledged to secure advances | $ 2,793 | $ 3,155 | |
Commercial Real Estate [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Fixed rates loans limit, period | 3 years | ||
Commercial Real Estate [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Lending amount up to the percentage of collateral | 85.00% | ||
Fixed rates loans limit, period | 5 years | ||
Construction Loans [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Lending amount up to the percentage of collateral | 80.00% | ||
Maturity of construction loans convert to permanent loans | 30 years |
Regulatory Matters (Details)
Regulatory Matters (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Order Considarations [Line Items] | ||
Core capital | 5.00% | 5.00% |
Total risk-based capital | 10.00% | 10.00% |
CF Bank [Member] | ||
Regulatory Order Considarations [Line Items] | ||
Core capital | 8.00% | 8.00% |
Total risk-based capital | 12.00% | 12.00% |
Securities (Narrative) (Details
Securities (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment | $ 0 | $ 0 |
Sales of securities | $ 0 | $ 0 |
Issued by U.S. Government-Sponsored Entities and Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Minimum percentage of securities held | 10.00% | 10.00% |
Securities (Amortized Cost And
Securities (Amortized Cost And Fair Value Of Available-For-Sale Securities Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 14,055 | $ 9,377 |
Gross Unrealized Gains | 30 | 34 |
Gross Unrealized Losses | 27 | 43 |
Fair Value | 14,058 | 9,368 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,521 | 8,575 |
Gross Unrealized Gains | 11 | 4 |
Gross Unrealized Losses | 27 | 43 |
Fair Value | 13,505 | 8,536 |
Mortgage-Backed Securities - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 345 | 463 |
Gross Unrealized Gains | 12 | 18 |
Fair Value | 357 | 481 |
Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 189 | 339 |
Gross Unrealized Gains | 7 | 12 |
Fair Value | $ 196 | $ 351 |
Securities (Amortized Cost an58
Securities (Amortized Cost and Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 2,518 | $ 1,002 |
Due from one to five years, Amortized Cost | 11,003 | 7,573 |
Amortized Cost | 14,055 | 9,377 |
Due in one year or less, Fair Value | 2,518 | 1,000 |
Due from one to five years, Fair Value | 10,987 | 7,536 |
Available-for-sale Securities, Total | 14,058 | 9,368 |
Mortgage-Backed Securities - Residential [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 345 | 463 |
Available-for-sale Securities, Total | 357 | 481 |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 189 | 339 |
Available-for-sale Securities, Total | $ 196 | $ 351 |
Securities (Fair value Of Secur
Securities (Fair value Of Securities Pledged) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Pledged as collateral for: | ||
FHLB advances | $ 2,327 | $ 3,530 |
Public deposits | 2,043 | 2,055 |
Interest-rate swaps | 195 | 261 |
Total | $ 4,565 | $ 5,846 |
Securities (Securities With Unr
Securities (Securities With Unrealized Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 10,493 | $ 6,541 |
Less than 12 Months, Unrealized Loss | 27 | 43 |
12 Months or More, Fair Value | ||
12 Months or More, Unrealized Loss | ||
Total, Fair Value | 10,493 | 6,541 |
Total, Unrealized Loss | 27 | 43 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 10,492 | 6,541 |
Less than 12 Months, Unrealized Loss | 27 | 43 |
12 Months or More, Fair Value | ||
12 Months or More, Unrealized Loss | ||
Total, Fair Value | 10,492 | 6,541 |
Total, Unrealized Loss | 27 | 43 |
Mortgage-Backed Securities - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1 | |
Less than 12 Months, Unrealized Loss | ||
12 Months or More, Fair Value | ||
12 Months or More, Unrealized Loss | ||
Total, Fair Value | 1 | |
Total, Unrealized Loss |
Loans And Leases (Narrative) (D
Loans And Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 346,125 | $ 297,064 |
Loans 90 days or more past due and still accruing interest | ||
Total TDR's | 3,130 | 5,276 |
Allocated specific reserves to modified TDRs | $ 22 | $ 20 |
Number of loans modified as a TDR | loan | 1 | 2 |
TDR's charge-offs | $ 0 | $ 0 |
Number of TDRs in payment default | loan | 1 | 0 |
Northpointe [Member] | Mortgage Purchase Program [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percent of loans risk rated for capital adequacy | 100.00% | |
Percent of participation agreement interest | 95.00% | |
Ownership interest in each loan is participates | 5.00% | |
Nonaccrual [Member] | Commitments to Lend Additional Amounts [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total TDR's | $ 0 | $ 0 |
Single-Family Mortgage Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of loans modified as a TDR | loan | 1 | 1 |
Single-Family Mortgage Loans [Member] | Northpointe [Member] | Mortgage Purchase Program [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 46,919 | $ 43,517 |
Home Equity Line of Credit, Originated Portfolio [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of loans modified as a TDR | loan | 1 | 1 |
Other Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total TDR's | $ 33,294 | $ 19,097 |
Accruing [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total TDR's | $ 2,986 | $ 4,920 |
Commercial [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of loans modified as a TDR | loan | 1 | |
TDR's charge-offs | $ 239 |
Loans And Leases (Recorded Inve
Loans And Leases (Recorded Investment In Loans By Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | $ 353,050 | $ 303,684 | ||
Less: ALLL | (6,925) | (6,620) | $ (6,316) | |
Loans and leases, net | 346,125 | 297,064 | ||
Commercial [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | [1] | 71,334 | 43,744 | |
Less: ALLL | (1,647) | (1,380) | (1,346) | |
Single-Family Mortgage Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 92,544 | 81,985 | ||
Less: ALLL | (735) | (691) | (634) | |
Multi-Family Mortgage Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 34,291 | 28,950 | ||
Less: ALLL | (716) | (705) | (818) | |
Commercial Real Estate [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 105,313 | 96,488 | ||
Less: ALLL | (2,727) | (2,710) | (2,541) | |
Construction Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 25,822 | 24,662 | ||
Less: ALLL | (580) | (561) | (442) | |
Home Equity Lines of Credit [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 23,109 | 21,837 | ||
Less: ALLL | (486) | (474) | (441) | |
Other Financing Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 637 | 6,018 | ||
Less: ALLL | (34) | $ (99) | $ (94) | |
Commercial Leases [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | $ 2,874 | |||
[1] | Includes $2,874 of commercial leases. |
Loans And Leases (Activity In A
Loans And Leases (Activity In ALLL By Portfolio Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 6,620 | $ 6,316 |
Addition to (reduction in) provision for loan losses | 230 | 250 |
Charge-offs | (324) | (124) |
Recoveries | 399 | 178 |
Ending balance | 6,925 | 6,620 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 1,380 | 1,346 |
Addition to (reduction in) provision for loan losses | 390 | 17 |
Charge-offs | (123) | (8) |
Recoveries | 25 | |
Ending balance | 1,647 | 1,380 |
Single-Family Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 691 | 634 |
Addition to (reduction in) provision for loan losses | 149 | 96 |
Charge-offs | (147) | (40) |
Recoveries | 42 | 1 |
Ending balance | 735 | 691 |
Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 705 | 818 |
Addition to (reduction in) provision for loan losses | (132) | (113) |
Recoveries | 143 | |
Ending balance | 716 | 705 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 2,710 | 2,541 |
Addition to (reduction in) provision for loan losses | (128) | 161 |
Charge-offs | (25) | |
Recoveries | 145 | 33 |
Ending balance | 2,727 | 2,710 |
Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 561 | 442 |
Addition to (reduction in) provision for loan losses | 19 | 119 |
Ending balance | 580 | 561 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 474 | 441 |
Addition to (reduction in) provision for loan losses | (4) | (39) |
Charge-offs | (53) | (41) |
Recoveries | 69 | 113 |
Ending balance | 486 | 474 |
Other Financing Receivable [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 99 | 94 |
Addition to (reduction in) provision for loan losses | (64) | 9 |
Charge-offs | (1) | (10) |
Recoveries | 6 | |
Ending balance | $ 34 | $ 99 |
Loans And Leases (Balance In AL
Loans And Leases (Balance In ALLL And Recorded Investment In Loans By Portfolio Segment And Based On Impairment Method) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 22 | $ 20 | ||
Collectively evaluated for impairment | 6,903 | 6,600 | ||
Total ending allowance balance | 6,925 | 6,620 | $ 6,316 | |
Individually evaluated for impairment | 3,448 | 5,750 | ||
Collectively evaluated for impairment | 349,602 | 297,934 | ||
Subtotal | 353,050 | 303,684 | ||
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 1 | 5 | ||
Collectively evaluated for impairment | 1,646 | 1,375 | ||
Total ending allowance balance | 1,647 | 1,380 | 1,346 | |
Individually evaluated for impairment | 557 | 422 | ||
Collectively evaluated for impairment | 70,777 | 43,322 | ||
Subtotal | [1] | 71,334 | 43,744 | |
Single-Family Mortgage Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 1 | |||
Collectively evaluated for impairment | 735 | 690 | ||
Total ending allowance balance | 735 | 691 | 634 | |
Individually evaluated for impairment | 122 | 289 | ||
Collectively evaluated for impairment | 92,422 | 81,696 | ||
Subtotal | 92,544 | 81,985 | ||
Multi-Family Mortgage Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 716 | 705 | ||
Total ending allowance balance | 716 | 705 | 818 | |
Individually evaluated for impairment | 37 | 1,590 | ||
Collectively evaluated for impairment | 34,254 | 27,360 | ||
Subtotal | 34,291 | 28,950 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 21 | 14 | ||
Collectively evaluated for impairment | 2,706 | 2,696 | ||
Total ending allowance balance | 2,727 | 2,710 | 2,541 | |
Individually evaluated for impairment | 2,732 | 3,449 | ||
Collectively evaluated for impairment | 102,581 | 93,039 | ||
Subtotal | 105,313 | 96,488 | ||
Construction Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 580 | 561 | ||
Total ending allowance balance | 580 | 561 | 442 | |
Collectively evaluated for impairment | 25,822 | 24,662 | ||
Subtotal | 25,822 | 24,662 | ||
Home Equity Lines of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 486 | 474 | ||
Total ending allowance balance | 486 | 474 | 441 | |
Collectively evaluated for impairment | 23,109 | 21,837 | ||
Subtotal | 23,109 | 21,837 | ||
Other Financing Receivable [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 34 | 99 | ||
Total ending allowance balance | 34 | 99 | $ 94 | |
Collectively evaluated for impairment | 637 | 6,018 | ||
Subtotal | $ 637 | $ 6,018 | ||
[1] | Includes $2,874 of commercial leases. |
Loans And Leases (Individually
Loans And Leases (Individually Evaluated For Impairment By Class Of Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | $ 1,496 | $ 3,137 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,591 | 3,448 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 4,087 | 6,585 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 857 | 2,347 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,591 | 3,403 |
Impaired Financing Receivable, Recorded Investment, Total | 3,448 | 5,750 |
Impaired Financing Receivable, Allocated Loans and Leases | 22 | 20 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 951 | 2,421 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,651 | 3,504 |
Impaired Financing Receivable, Average Recorded Investment, Total | 3,602 | 5,925 |
Impaired Financing Receivable, with no Related Allowance, Interest Income Recognized | 69 | 135 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 152 | 196 |
Impaired Financing Receivable, Interest Income Recognized, Total | 221 | 331 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 476 | 36 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 199 | 394 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 358 | 28 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 199 | 394 |
Impaired Financing Receivable, Allocated Loans and Leases | 1 | 5 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 436 | 65 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 232 | 439 |
Impaired Financing Receivable, with no Related Allowance, Interest Income Recognized | 13 | 1 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 9 | 12 |
Single-Family Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 322 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 122 | 128 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 161 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 122 | 128 |
Impaired Financing Receivable, Allocated Loans and Leases | 1 | |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 166 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 125 | 130 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 7 | 7 |
Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 37 | 1,545 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 45 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 37 | 1,545 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 45 | |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 41 | 1,561 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 48 | |
Impaired Financing Receivable, with no Related Allowance, Interest Income Recognized | 2 | 95 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 3 | |
Real Estate, Commercial, Non-Owner Occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 112 | 546 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,068 | 2,224 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 112 | 446 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,068 | 2,224 |
Impaired Financing Receivable, Allocated Loans and Leases | 19 | 9 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 114 | 455 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,086 | 2,242 |
Impaired Financing Receivable, with no Related Allowance, Interest Income Recognized | 8 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 126 | 136 |
Real Estate, Commercial, Owner Occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 871 | 688 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 202 | 363 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 350 | 167 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 202 | 363 |
Impaired Financing Receivable, Allocated Loans and Leases | 2 | 1 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 360 | 174 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 208 | 371 |
Impaired Financing Receivable, with no Related Allowance, Interest Income Recognized | 46 | 39 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | $ 10 | 20 |
Real Estate, Commercial, Land [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 294 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 249 | |
Impaired Financing Receivable, Allocated Loans and Leases | 4 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 274 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | $ 18 |
Loans And Leases (Recorded In66
Loans And Leases (Recorded Investment In Nonaccrual Loans By Class Of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due over 90 days still on accrual | ||
Total nonaccrual and nonperforming loans | 704 | 1,425 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 263 | 224 |
Single-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 397 | 640 |
Real Estate, Commercial, Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 446 | |
Home Equity Line of Credit, Originated Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 44 | 20 |
Home Equity Line of Credit, Purchased Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 95 | |
Nonaccrual [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | $ 704 | $ 1,425 |
Loans And Leases (Aging Of Reco
Loans And Leases (Aging Of Recorded Investment In Past Due Loans By Class Of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,559 | $ 1,390 |
Loans Not Past Due | 351,491 | 302,294 |
Nonaccrual Loans Not > 90 Days Past Due | 479 | 1,249 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 670 | 598 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 664 | 616 |
Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 225 | 176 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 119 | 37 |
Loans Not Past Due | 71,215 | 43,707 |
Nonaccrual Loans Not > 90 Days Past Due | 144 | 196 |
Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9 | |
Commercial [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 119 | 28 |
Single-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 439 | 907 |
Loans Not Past Due | 92,105 | 81,078 |
Nonaccrual Loans Not > 90 Days Past Due | 291 | 492 |
Single-Family Mortgage Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 284 | 598 |
Single-Family Mortgage Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49 | 161 |
Single-Family Mortgage Loans [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 106 | 148 |
Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 34,291 | 28,950 |
Real Estate, Commercial, Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 446 | |
Loans Not Past Due | 60,936 | 57,573 |
Nonaccrual Loans Not > 90 Days Past Due | 446 | |
Real Estate, Commercial, Non-Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 446 | |
Real Estate, Commercial, Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 869 | |
Loans Not Past Due | 34,891 | 30,169 |
Real Estate, Commercial, Owner Occupied [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 269 | |
Real Estate, Commercial, Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 600 | |
Real Estate, Commercial, Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 8,617 | 8,300 |
Construction Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 48 | |
Loans Not Past Due | 25,774 | 24,662 |
Construction Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 48 | |
Home Equity Line of Credit, Originated Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15 | |
Loans Not Past Due | 22,440 | 20,789 |
Nonaccrual Loans Not > 90 Days Past Due | 44 | 20 |
Home Equity Line of Credit, Originated Portfolio [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15 | |
Home Equity Line of Credit, Purchased Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 69 | |
Loans Not Past Due | 585 | 1,048 |
Nonaccrual Loans Not > 90 Days Past Due | 95 | |
Home Equity Line of Credit, Purchased Portfolio [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 69 | |
Other Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | $ 637 | $ 6,018 |
Loans And Leases (Loans Modifie
Loans And Leases (Loans Modified As TDRs By Class Of Loans) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 339 | $ 18 |
Post-Modification Outstanding Recorded Investment | $ 339 | $ 18 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 339 | |
Post-Modification Outstanding Recorded Investment | $ 339 | |
Single-Family Mortgage Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 9 | |
Post-Modification Outstanding Recorded Investment | $ 9 | |
Home Equity Line of Credit, Originated Portfolio [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 9 | |
Post-Modification Outstanding Recorded Investment | $ 9 |
Loans And Leases (Schedule of D
Loans And Leases (Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual Troubled Debt Restructurings, Total | $ 144 | $ 356 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual Troubled Debt Restructurings, Total | $ 144 | 195 |
Single-Family Mortgage Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual Troubled Debt Restructurings, Total | $ 161 |
Loans And Leases (Financing Rec
Loans And Leases (Financing Receivables Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 353,050 | $ 303,684 | |
Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 117,766 | 119,206 | |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 225,940 | 171,512 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 3,621 | 7,351 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,723 | 5,615 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 71,334 | 43,744 |
Commercial [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 47 | 83 | |
Commercial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 70,444 | 41,473 | |
Commercial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 286 | 1,892 | |
Commercial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 557 | 296 | |
Single-Family Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 92,544 | 81,985 | |
Single-Family Mortgage Loans [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 92,130 | 81,318 | |
Single-Family Mortgage Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 414 | 667 | |
Multi-Family Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 34,291 | 28,950 | |
Multi-Family Mortgage Loans [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,777 | ||
Multi-Family Mortgage Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 33,615 | 25,466 | |
Multi-Family Mortgage Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 505 | 528 | |
Multi-Family Mortgage Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 171 | 179 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 105,313 | 96,488 | |
Real Estate, Commercial, Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 60,936 | 58,019 | |
Real Estate, Commercial, Non-Owner Occupied [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 115 | 125 | |
Real Estate, Commercial, Non-Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 58,183 | 54,674 | |
Real Estate, Commercial, Non-Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,782 | 1,852 | |
Real Estate, Commercial, Non-Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 856 | 1,368 | |
Real Estate, Commercial, Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 35,760 | 30,169 | |
Real Estate, Commercial, Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 33,493 | 26,923 | |
Real Estate, Commercial, Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,048 | 3,079 | |
Real Estate, Commercial, Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,219 | 167 | |
Real Estate, Commercial, Land [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8,617 | 8,300 | |
Real Estate, Commercial, Land [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 6,380 | 5,720 | |
Real Estate, Commercial, Land [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,237 | 2,580 | |
Construction Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 25,822 | 24,662 | |
Construction Loans [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,997 | 11,252 | |
Construction Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 23,825 | 13,410 | |
Home Equity Lines of Credit [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 23,109 | 21,837 | |
Home Equity Line of Credit, Originated Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 22,455 | 20,789 | |
Home Equity Line of Credit, Originated Portfolio [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 22,328 | 20,677 | |
Home Equity Line of Credit, Originated Portfolio [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 127 | 112 | |
Home Equity Line of Credit, Purchased Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 654 | 1,048 | |
Home Equity Line of Credit, Purchased Portfolio [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 512 | 802 | |
Home Equity Line of Credit, Purchased Portfolio [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 142 | 246 | |
Other Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 637 | 6,018 | |
Other Financing Receivable [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 637 | 2,172 | |
Other Financing Receivable [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 3,846 | ||
[1] | Includes $2,874 of commercial leases. |
Foreclosed Assets (Narrative) (
Foreclosed Assets (Narrative) (Details) - property | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of properties | 1 | |
Single-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Properties transferred into REO | 1 |
Foreclosed Assets (Foreclosed A
Foreclosed Assets (Foreclosed Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real estate | $ 204 | $ 1,636 |
Valuation Allowance | ||
Foreclosed assets, net | 204 | 1,636 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real estate | $ 1,636 | |
Single-Family Mortgage Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real estate | $ 204 |
Foreclosed Assets (Expenses Rel
Foreclosed Assets (Expenses Related To Foreclosed Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Foreclosed Assets [Abstract] | ||
Net loss (gain) on sales | $ (4) | |
Operating expenses, net of rental income | 69 | 137 |
Foreclosed assets, net | $ 65 | $ 137 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale | $ 2,812 | $ 889 | |
Unpaid principal balance of impairment loan at collateral | 2,672 | 3,050 | |
Valuation allowance | 21 | 16 | |
Credit Card Portfolio [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale | $ 175 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on a nonrecurring basis | 0 | 0 | |
Liabilities measured at fair value on a nonrecurring basis | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on a recurring basis | 0 | 0 | |
Liabilities measured at fair value on a recurring basis | 0 | 0 | |
Assets measured at fair value on a nonrecurring basis | 0 | 0 | |
Liabilities measured at fair value on a nonrecurring basis | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on a recurring basis | 0 | 0 | |
Liabilities measured at fair value on a recurring basis | $ 0 | $ 0 |
Fair Value (Assets And Liabilit
Fair Value (Assets And Liabilities Measured At Fair Value On A Recurring Basis, Including Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Assets: | ||
Total securities available for sale | $ 14,058 | $ 9,368 |
Loans held for sale | 2,812 | 889 |
Yield maintenance provisions | 122 | 213 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 14,058 | 9,368 |
Loans held for sale | 2,812 | 889 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 13,505 | 8,536 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities - Residential [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 357 | 481 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 196 | 351 |
Fair Value, Measurements, Recurring [Member] | Yield maintenance provisions (embedded derivatives) [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Yield maintenance provisions | 122 | 213 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Interest rate lock commitments | 9 | 8 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Liabilities: | ||
Interest-rate swaps | $ 122 | $ 213 |
Fair Value (Assets Measured At
Fair Value (Assets Measured At Fair Value On A Non-Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | $ 4,087 | $ 6,585 |
Financial instruments measured at fair value on a non-recurring basis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 2,650 | 2,989 |
Commercial [Member] | Financial instruments measured at fair value on a non-recurring basis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 130 | 143 |
Single-Family Mortgage Loans [Member] | Financial instruments measured at fair value on a non-recurring basis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 122 | 128 |
Multi-Family Mortgage Loans [Member] | Financial instruments measured at fair value on a non-recurring basis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 37 | 45 |
Real Estate, Commercial, Non-Owner Occupied [Member] | Financial instruments measured at fair value on a non-recurring basis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 2,161 | 2,215 |
Real Estate, Commercial, Owner Occupied [Member] | Financial instruments measured at fair value on a non-recurring basis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | $ 200 | 213 |
Real Estate, Commercial, Land [Member] | Financial instruments measured at fair value on a non-recurring basis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | $ 245 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Measured At Fair Value On A Non-Recurring Basis) (Details) - Financial instruments measured at fair value on a non-recurring basis [Member] - Comparable Sales Approach [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commercial [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 130 | $ 143 |
Valuation Technique(s) | Comparable sales approach | |
Unobservable Inputs | Adjustment for differences between the comparable market transactions | |
Commercial [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 3.48% | 1.10% |
Single-Family Mortgage Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 122 | $ 128 |
Valuation Technique(s) | Comparable sales approach | |
Unobservable Inputs | Adjustment for differences between the comparable market transactions | |
Single-Family Mortgage Loans [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 1.81% | (1.23%) |
Single-Family Mortgage Loans [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 3.61% | 4.63% |
Single-Family Mortgage Loans [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 2.91% | (0.17%) |
Multi-Family Mortgage Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 37 | $ 45 |
Valuation Technique(s) | Comparable sales approach | |
Unobservable Inputs | Adjustment for differences between the comparable market transactions | |
Multi-Family Mortgage Loans [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 9.64% | 5.74% |
Real Estate, Commercial, Non-Owner Occupied [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 2,161 | $ 2,215 |
Valuation Technique(s) | Comparable sales approach | |
Unobservable Inputs | Adjustment for differences between the comparable market transactions | |
Real Estate, Commercial, Non-Owner Occupied [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 1.10% | 1.10% |
Real Estate, Commercial, Non-Owner Occupied [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 5.74% | 5.74% |
Real Estate, Commercial, Non-Owner Occupied [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 1.35% | 1.35% |
Real Estate, Commercial, Owner Occupied [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 200 | $ 213 |
Valuation Technique(s) | Comparable sales approach | |
Unobservable Inputs | Adjustment for differences between the comparable market transactions | |
Real Estate, Commercial, Owner Occupied [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | (4.46%) | (29.30%) |
Real Estate, Commercial, Land [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 245 | |
Real Estate, Commercial, Land [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | (1.89%) | |
Real Estate, Commercial, Land [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 2.54% | |
Real Estate, Commercial, Land [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 0.08% |
Fair Value (Aggregate Fair Valu
Fair Value (Aggregate Fair Value, Contractual Balance (Including Accrued Interest) And Gain Or Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value [Abstract] | ||
Aggregate fair value | $ 2,812 | $ 889 |
Contractual balance | 2,801 | 884 |
Gain (loss) | $ 11 | $ 5 |
Fair Value (Amount Of Gains And
Fair Value (Amount Of Gains And Losses From Changes In Fair Value Included In Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value [Abstract] | ||
Interest income | $ 60 | $ 56 |
Interest expense | ||
Change in fair value | 6 | (10) |
Total change in fair value | $ 66 | $ 46 |
Fair Value (Carrying Amounts An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets | ||
Securities available for sale | $ 14,058 | $ 9,368 |
Loans held for sale | 2,812 | 889 |
Yield maintenance provisions | 122 | 213 |
Financial liabilities | ||
Advances by borrowers for taxes and insurance | (408) | (656) |
Carrying Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 57,941 | 25,895 |
Interest-bearing deposits in other financial institutions | 100 | |
Securities available for sale | 14,058 | 9,368 |
Loans held for sale | 2,812 | 889 |
Loans, net | 346,125 | 297,064 |
FHLB stock | 1,942 | 1,942 |
Accrued interest receivable | 1,054 | 831 |
Yield maintenance provisions | 122 | 213 |
Interest rate lock commitments | 9 | 8 |
Financial liabilities | ||
Deposits | (375,364) | (290,467) |
FHLB advances and other borrowings | (13,500) | (14,500) |
Advances by borrowers for taxes and insurance | (408) | (656) |
Subordinated debentures | (5,155) | (5,155) |
Accrued interest payable | (78) | (44) |
Interest-rate swaps | (122) | (213) |
Fair Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 57,941 | 25,895 |
Interest-bearing deposits in other financial institutions | 100 | |
Securities available for sale | 14,058 | 9,368 |
Loans held for sale | 2,812 | 889 |
Loans, net | 343,523 | 295,498 |
Accrued interest receivable | 1,054 | 831 |
Yield maintenance provisions | 122 | 213 |
Interest rate lock commitments | 9 | 8 |
Financial liabilities | ||
Deposits | (374,125) | (290,759) |
FHLB advances and other borrowings | (13,597) | (14,693) |
Advances by borrowers for taxes and insurance | (408) | (656) |
Subordinated debentures | (3,411) | (2,269) |
Accrued interest payable | (78) | (44) |
Interest-rate swaps | (122) | (213) |
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and cash equivalents | 57,941 | 25,895 |
Interest-bearing deposits in other financial institutions | 100 | |
Accrued interest receivable | 13 | 1 |
Financial liabilities | ||
Deposits | (202,158) | (147,523) |
Accrued interest payable | (2) | |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Interest-bearing deposits in other financial institutions | ||
Securities available for sale | 14,058 | 9,368 |
Loans held for sale | 2,812 | 889 |
Accrued interest receivable | 40 | 21 |
Yield maintenance provisions | 122 | 213 |
Interest rate lock commitments | 9 | 8 |
Financial liabilities | ||
Deposits | (171,967) | (143,236) |
FHLB advances and other borrowings | (13,597) | (14,693) |
Subordinated debentures | (3,411) | (2,269) |
Accrued interest payable | (76) | (44) |
Interest-rate swaps | (122) | (213) |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial assets | ||
Interest-bearing deposits in other financial institutions | ||
Loans, net | 343,523 | 295,498 |
Accrued interest receivable | 1,001 | 809 |
Financial liabilities | ||
Advances by borrowers for taxes and insurance | $ (408) | $ (656) |
Loan Servicing (Narrative) (Det
Loan Servicing (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loan Servicing [Abstract] | ||
Custodial escrow balances maintained in connection with serviced loans | $ 119 | $ 132 |
Loan Servicing (Principal Balan
Loan Servicing (Principal Balances of Mortgage Loans at Year-End) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loan Servicing [Abstract] | ||
Mortgage loans serviced for Freddie Mac | $ 4,261 | $ 5,593 |
Premises And Equipment (Narrati
Premises And Equipment (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 211 | $ 211 |
Number of operating leases | contract | 2 | |
Lease expenses | $ 311 | $ 319 |
Woodmere Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease term | 128 months | |
Fairlawn Branch [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease term | 10 years | |
Renewal option term | 5 years |
Premises And Equipment (Year-En
Premises And Equipment (Year-End Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Premises And Equipment [Abstract] | ||
Land and land improvements | $ 1,293 | $ 1,293 |
Buildings | 3,832 | 3,827 |
Furniture, fixtures and equipment | 2,150 | 2,655 |
Premises and equipment, gross | 7,275 | 7,775 |
Less: Accumulated Depreciation | (3,846) | (4,166) |
Premises and equipment, net | $ 3,429 | $ 3,609 |
Premises And Equipment (Rent Co
Premises And Equipment (Rent Commitments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Premises And Equipment [Abstract] | |
2,017 | $ 320 |
2,018 | 321 |
2,019 | 322 |
2,020 | 324 |
2,021 | 325 |
Thereafter | 858 |
Total | $ 2,470 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Time deposits, $100,000 or more | $ 128,185 | $ 106,574 |
Time deposits, $250,000 or more | 38,575 | 23,970 |
Brokered deposits | $ 29,738 | $ 22,073 |
Deposits (Scheduled Maturities
Deposits (Scheduled Maturities of Time Deposits) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Deposits [Abstract] | |
2,017 | $ 108,620 |
2,018 | 33,617 |
2,019 | 7,749 |
2,020 | 14,626 |
2,021 | 7,697 |
Thereafter | |
Total | $ 172,309 |
FHLB Advances (Narrative) (Deta
FHLB Advances (Narrative) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
FHLB Advances [Abstract] | |
Amount available of FHLB | $ 44,498 |
FHLB Advances (Advances From FH
FHLB Advances (Advances From FHLB) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
FHLB Advances [Abstract] | ||
2017, Weighted Average Rate | 1.12% | |
2019, Weighted Average Rate | 1.62% | |
2020, Weighted Average Rate | 2.02% | |
2021, Weighted Average Rate | 2.32% | |
Due in one year | $ 2,500 | $ 5,000 |
Due in two years | 1,500 | |
Due in three years | 3,500 | |
Due in four years | 3,500 | 2,500 |
Due in five years | 4,000 | 2,500 |
Due after year five | 3,000 | |
Total | $ 13,500 | $ 14,500 |
FHLB Advances (Schedule Of Fede
FHLB Advances (Schedule Of Federal Home Loan Advances Pledged By Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged to secure advances | $ 61,616 | $ 47,660 |
Securities [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged to secure advances | 2,327 | 3,530 |
Cash [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged to secure advances | 3,300 | 3,300 |
Single-Family Mortgage Loans [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged to secure advances | 38,342 | 29,490 |
Multi-Family Mortgage Loans [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged to secure advances | 14,854 | 8,185 |
Commercial Real Estate [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged to secure advances | $ 2,793 | $ 3,155 |
FHLB Advances - Federal Home Lo
FHLB Advances - Federal Home Loan Advances Outstanding Maturity Period (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
FHLB Advances [Abstract] | ||
2,017 | $ 2,500 | $ 5,000 |
2,018 | 1,500 | |
2,019 | 3,500 | |
2,020 | 3,500 | 2,500 |
2,021 | 4,000 | 2,500 |
Thereafter | 3,000 | |
Total | $ 13,500 | $ 14,500 |
Other Borrowings (Narrative) (D
Other Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Line Items] | ||
Line of credit with a commercial bank | $ 1,000,000 | $ 1,000,000 |
Federal Reserve Bank Advances [Member] | ||
Debt Disclosure [Line Items] | ||
Outstanding borrowings | 0 | 0 |
Debt instrument maximum borrowing capacity amount | 31,846,000 | |
Credit Card Portfolio [Member] | ||
Debt Disclosure [Line Items] | ||
Outstanding borrowings | $ 0 | $ 0 |
Other Borrowings (Assets Pledge
Other Borrowings (Assets Pledged As Collateral With FRB) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets pledged as collateral with the FRB | $ 55,610 | $ 57,398 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets pledged as collateral with the FRB | 16,380 | 19,696 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets pledged as collateral with the FRB | $ 39,230 | $ 37,702 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2008 | Dec. 31, 2003 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Subordinated debentures | $ 5,155 | $ 5,155 | $ 5,155 | |
Holding Company's investment in the common stock | 155 | |||
Holding Company may redeem the subordinated debentures in a principal amount with integral multiples | $ 1 | |||
Percentage in which holding company redeem subordinated debentures | 100.00% | |||
Current interest paid | $ 3,061 | $ 2,612 | ||
Private Placement [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Holding Company, closed a pooled private offering | 5,000 | |||
Trust preferred securities with a liquidation amount | $ 1 | |||
Subordinated Debentures Maturing On December 30,2033 [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Maturity date of subordinated debentures | Dec. 30, 2033 | |||
Trust preferred securities and subordinated debentures have a stated percentage | 3.85% | 3.45% | ||
Subordinated [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of years with no principal repayment | 5 years | |||
Maximum number of years for deferred interest payments | 5 years | |||
London Interbank Offered Rate [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Trust preferred securities and subordinated debentures have a variable rate of interest | 2.85% | 2.85% |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Life Insurance Benefits [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Benefit plan expense | $ (3) | $ (2) | ||||
Accrued interest payable and other liabilities Total | $ 210 | 213 | ||||
401 (k) plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Percentage of amount allowable under federal tax regulations | 25.00% | |||||
Percentage of compensation contributed under federal tax regulations | 8.00% | |||||
Benefit plan expense | $ 49 | 52 | ||||
Salary Continuation Agreement [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Benefit plan expense | 10 | 11 | ||||
Accrued interest payable and other liabilities Total | 218 | $ 233 | ||||
Annual benefit for 20 years | $ 25 | |||||
Duration of Annual benefit | 20 years | |||||
Multi-employer pension plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Unfunded liability | $ 53 | $ 36 | ||||
CFBank's contributions | $ 22 | |||||
Funded status | 94.90% | 96.52% | ||||
Total contributions made to Pentegra DB Plan | $ 163 | $ 191 | ||||
Percentage of amount allowable under federal tax regulations | 5.00% | 5.00% | ||||
Multi-employer pension plan [Member] | Scenario, Forecast [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
CFBank's contributions | $ 42 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014 | Dec. 31, 2012USD ($) | Dec. 31, 2009USD ($) | |
Tax effect | $ 0 | $ 810,000 | $ (3,193,000) | |||
Number of consecutive quarters of pretax income | item | 7 | |||||
Proceeds from sale of common stock | $ 22,500,000 | |||||
Net operating loss carry forwards | $ 23,059,000 | |||||
Alternative minimum tax credit carryforwards | 50,000 | $ 105,000 | ||||
Carryforwards utilize limit before the stock offering closed | 163,000 | |||||
Unutilized operating loss carryforwards that will expire | 20,520,000 | |||||
Reduced deferred tax assets and valuation allowance | 6,977,000 | |||||
Deferred tax liability to be recorded | $ 765,000 | |||||
Federal income tax rate | 34.00% | 34.00% | 34.00% | |||
Additional bad debt deductions provided by Federal income tax laws | $ 2,250,000 | |||||
Deferred tax asset | 2,627,000 | $ 3,254,000 | ||||
Deferred tax asset | $ 0 | |||||
Unrecognized tax benefits | $ 0 | $ 0 | ||||
Minimum [Member] | ||||||
Net operating loss carryforwards expiration year | 2,024 | |||||
Maximum [Member] | ||||||
Net operating loss carryforwards expiration year | 2,033 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Operating Loss Carryforwards [Line Items] | ||||
Current federal | $ 187,000 | $ 58,000 | ||
Deferred federal | [1] | 623,000 | (3,251,000) | |
Income tax (expense) benefit | $ 0 | 810,000 | (3,193,000) | |
Operating Loss Carryforwards [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred federal | 717,000 | 531,000 | ||
Parent Company [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax (expense) benefit | $ 236,000 | $ 1,798,000 | ||
[1] | Includes tax benefit of operating loss carryforwards of $717 and $531 for the years ended December 31, 2016 and 2015. |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rates Differ from Federal Statutory Rate) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal income tax rate | 34.00% | 34.00% | 34.00% | |
Federal statutory rate times financial statement income (loss) | $ 829,000 | $ 436,000 | ||
Incentive Stock Options | 6,000 | 33,000 | ||
Bank owned life insurance income | (45,000) | (45,000) | ||
Increase (decrease) in deferred tax valuation allowance | (3,656,000) | |||
Other | 20,000 | 39,000 | ||
Income tax (expense) benefit | $ 0 | $ 810,000 | $ (3,193,000) | |
Effective tax rate | 33.00% | (249.00%) | ||
Parent Company [Member] | ||||
Income tax (expense) benefit | $ 236,000 | $ 1,798,000 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan and lease losses | $ 1,575 | $ 1,497 |
Compensation related issues | 353 | 314 |
Deferred loan fees | 155 | 118 |
ATM Credit | 50 | 105 |
Nonaccrual interest | 41 | 132 |
Net operating loss carryforward | 863 | 1,580 |
Other | 70 | 2 |
Gross deferred tax assets | 3,107 | 3,748 |
Deferred tax liabilities: | ||
FHLB stock dividend | 366 | 366 |
Mortgage servicing rights | 2 | 4 |
Depreciation | 47 | 43 |
Prepaid expenses | 63 | 78 |
Mark-to-market Loans | 2 | 3 |
Deferred tax liabilities | 480 | 494 |
Net deferred tax asset | $ 2,627 | $ 3,254 |
Related-Party Transactions (Nar
Related-Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Related-Party Transactions [Abstract] | ||
Deposits from principal officers, directors, and their affiliates | $ 274 | $ 262 |
Related-Party Transactions (Loa
Related-Party Transactions (Loans to Principal Officers, Directors and Affiliates) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Related-Party Transactions [Abstract] | |
Beginning balance | $ 635 |
New loans | 1,826 |
Effect of changes in composition of related parties | |
Repayments | (62) |
Ending balance | $ 2,399 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)ShareBasedCompensationPlanshares | Dec. 31, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock-based compensation plans | ShareBasedCompensationPlan | 3 | |
Compensation cost | $ | $ 122 | $ 134 |
Total income tax (expense) benefit | $ | $ 35 | $ 13 |
Shares cancelled or forfeited | 23,950 | |
Shares Granted | 0 | 0 |
Shares, Vested | 66,834 | |
2003 Equity Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Authorized | 100,000 | |
2009 Equity Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available to be issued | 1,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 539,792 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting periods exercisable from date of grant | 10 years | |
Stock Options [Member] | 1999 Stock-Based Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Authorized | 38,778 | |
Stock Options [Member] | 2009 Equity Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Authorized | 200,000 | |
Stock Options [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting periods | 1 year | |
Stock Options [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting periods | 3 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available to be issued | 292,000 | 200,500 |
Unrecognized compensation cost | $ | $ 642 | $ 272 |
Restricted Stock [Member] | 1999 Stock-Based Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Authorized | 15,511 | |
Restricted Stock [Member] | 2003 Equity Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Authorized | 30,000 | |
Restricted Stock [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting periods | 1 year | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting periods | 3 years |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Shares, Outstanding at beginning of year | shares | 566,696 |
Shares Cancelled or Forfeited | shares | (23,950) |
Shares, Outstanding at end of year | shares | 542,746 |
Shares, Exercisable at end of period | shares | 542,746 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 1.48 |
Weighted Average Exercise Price, Cancelled or Forfeited | $ / shares | 2.01 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 1.46 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 1.46 |
Outstanding at end of period | 6 years 4 months 24 days |
Exercisable at end of period | 6 years 4 months 24 days |
Intrinsic value, Outstanding at end of year | $ | $ 198,040 |
Intrinsic Value Exercisable at end of period | $ | $ 198,040 |
Stock-Based Compensation (Su104
Stock-Based Compensation (Summary Of Changes In Company's Nonvested Restricted Shares) (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Shares, Nonvested at January 1, 2015 | shares | 200,500 |
Shares, Granted | shares | 292,000 |
Shares, Vested | shares | (66,834) |
Shares, Nonvested at December 31, 2015 | shares | 425,666 |
Weighted Average Grant date Fair Value, Nonvested at January 1, 2015 | $ / shares | $ 1.37 |
Weighted Average Grant date Fair Value, Granted | $ / shares | 1.64 |
Weighted Average Grant date Fair Value, Vested | $ / shares | 1.37 |
Weighted Average Grant date Fair Value, Nonvested at December 31, 2015 | $ / shares | $ 1.56 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2003 | |
Schedule of Capitalization, Equity [Line Items] | |||
Aggregate value | $ 5 | $ 5 | |
Private Placement [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Liquidation preference | $ 1 | ||
Series B Preferred Stock [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Issuance of preferred stock | 480,000 | 480,000 | |
Series B Preferred Stock [Member] | McDonald Partners, LLC [Member] | Private Placement [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Issuance of preferred stock | 480,000 | ||
Preferred stock rate | 6.25% | ||
Share Price | $ 25 | ||
Aggregate value | $ 12,000 | ||
Placement fees | 482 | ||
Other offering expenses | 149 | ||
Net proceeds from issuance of Series B preferred stock | $ 11,369 | ||
Warrants issued | 2 | ||
Warrant, value | $ 700 | ||
Warrant, shares | 28,000 | ||
Common Stock [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Warrants issued | 1,152,125 | ||
Common Stock [Member] | McDonald Partners, LLC [Member] | Private Placement [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Warrants issued | 3.25 | ||
Warrant, value | $ 700 | ||
Warrant, shares | 28,000 |
Common Stock Warrants (Details)
Common Stock Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Series B Preferred Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issuance of preferred stock | 480,000 | 480,000 |
Common Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants issued | 1,152,125 | |
Warrant exercise period | 5 years | |
Exercise price of warrant | $ 1.85 | |
Private Placement [Member] | McDonald Partners, LLC [Member] | Series B Preferred Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants issued | 2 | |
Warrant, value | $ 700 | |
Warrant, shares | 28,000 | |
Issuance of preferred stock | 480,000 | |
Private Placement [Member] | McDonald Partners, LLC [Member] | Common Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants issued | 3.25 | |
Warrant, value | $ 700 | |
Warrant, shares | 28,000 |
Regulatory Capital Matters (Nar
Regulatory Capital Matters (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Future percent of common equity to risk-weighted assets | 2.50% | |
Tier 1 (Core) Capital | 5.00% | 5.00% |
Total capital to risk weighted assets | 10.00% | 10.00% |
Percent of Qualified Thrift Lender test requires | 65.00% | |
Opening balance in liquidation account | $ 14,300 | |
CF Bank [Member] | ||
Tier 1 (Core) Capital | 8.00% | 8.00% |
Total capital to risk weighted assets | 12.00% | 12.00% |
Regulatory Capital Matters (Act
Regulatory Capital Matters (Actual And Required Capital Amounts And Ratios Of CFBank) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to risk weighted assets, Actual Amount | $ 45,118 | $ 41,528 |
Tier 1 (Core) Capital to risk weighted assets, Actual Amount | 40,556 | 37,694 |
Common equity tier 1 capital to risk-weighted assets, Actual Amount | 40,556 | 37,694 |
Tier 1 (Core) Capital to adjusted total assets, Actual Amount | $ 40,556 | $ 37,694 |
Total Capital to risk weighted assets, Actual Ratio | 12.46% | 13.67% |
Tier 1 (Core) Capital to risk weighted assets, Actual Ratio | 11.20% | 12.40% |
Common equity tier 1 capital to risk-weighted assets, Actual Ratio | 11.20% | 12.40% |
Tier 1 (Core) Capital to adjusted total assets, Actual Ratio | 9.66% | 11.12% |
Total Capital to risk weighted assets, For Capital Adequacy Purposes Amount | $ 24,310 | |
Tier 1 (Core) Capital to risk weighted assets, For Capital Adequacy Purposes Amount | 18,233 | |
Common equity tier 1 capital to risk-weighted assets, For Capital Adequacy Purposes Amount | 13,675 | |
Tier 1 (Core) Capital to adjusted total assets, For Capital Adequacy Purposes Amount | $ 13,557 | |
Total Capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 8.00% | |
Tier 1 (Core) Capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 6.00% | |
Common equity tier 1 capital to risk-weighted assets, For Capital Adequacy Purposes Ratio | 4.50% | |
Tier 1 (Core) Capital to adjusted total assets, For Capital Adequacy Purposes Ratio | 4.00% | |
Capital Required to be Well Capitalized | $ 36,218 | $ 30,388 |
Tier One Risk Based Capital Required to be Well Capitalized | 28,974 | 24,310 |
Common equity tier 1 capital to risk-weighted assets, To Be Well Capitalized Under Applicable Regulatory Action Regulations Amount | 23,542 | 19,752 |
Tier One Leverage Capital Required to be Well Capitalized | $ 20,991 | $ 16,946 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Common equity tier 1 capital to risk-weighted assets, To Be Well Capitalized Under Applicable Regulatory Action Regulations Ratio | 6.50% | 6.50% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Basel III Phase-In Schedule [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to risk weighted assets, For Capital Adequacy Purposes Amount | $ 31,256 | |
Tier 1 (Core) Capital to risk weighted assets, For Capital Adequacy Purposes Amount | 24,013 | |
Common equity tier 1 capital to risk-weighted assets, For Capital Adequacy Purposes Amount | 18,580 | |
Tier 1 (Core) Capital to adjusted total assets, For Capital Adequacy Purposes Amount | $ 16,792 | |
Total Capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 8.63% | |
Tier 1 (Core) Capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 6.63% | |
Common equity tier 1 capital to risk-weighted assets, For Capital Adequacy Purposes Ratio | 5.13% | |
Tier 1 (Core) Capital to adjusted total assets, For Capital Adequacy Purposes Ratio | 4.00% | |
Basel III Fully Phased-In [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to risk weighted assets, For Capital Adequacy Purposes Amount | $ 38,029 | |
Tier 1 (Core) Capital to risk weighted assets, For Capital Adequacy Purposes Amount | 30,785 | |
Common equity tier 1 capital to risk-weighted assets, For Capital Adequacy Purposes Amount | 25,353 | |
Tier 1 (Core) Capital to adjusted total assets, For Capital Adequacy Purposes Amount | $ 16,792 | |
Total Capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 10.50% | |
Tier 1 (Core) Capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 8.50% | |
Common equity tier 1 capital to risk-weighted assets, For Capital Adequacy Purposes Ratio | 7.00% | |
Tier 1 (Core) Capital to adjusted total assets, For Capital Adequacy Purposes Ratio | 4.00% |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Notional amount | $ 2,280,000 | $ 2,877,000 |
Derivative assets | 122,000 | 213,000 |
Net gain/loss recognised of fair value of yield maintenance provisions | 0 | 0 |
Net gains (losses) recognized in earnings | 7,000 | (28,000) |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 2,280,000 | 2,877,000 |
Interest-rate swaps | 695,000 | |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative assets | 8,000 | 8,000 |
Interest rate lock commitments related to residential mortgage loans | $ 2,164,000 | $ 1,560,000 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments [Abstract] | ||
Notional amount | $ 2,280 | $ 2,877 |
Weighted average pay rate on interest-rate swaps | 3.74% | 3.67% |
Weighted average receive rate on interest-rate swaps | 0.75% | 0.39% |
Weighted average maturity (years) | 3 years 1 month 6 days | 4 years |
Fair value of interest-rate swaps | $ (122) | $ (213) |
Yield maintenance provisions | $ 122 | $ 213 |
Loan Commitments and Other R111
Loan Commitments and Other Related Activities (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Period for commitments and construction loan commitments | 60 days | |
Construction Loans [Member] | ||
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Period for commitments and construction loan commitments | 1 year | |
Minimum [Member] | ||
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Interest rates for fixed rate loan commitments | 1.75% | 4.25% |
Maturities for fixed rate loan commitments | 2 months | 3 months |
Maximum [Member] | ||
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Interest rates for fixed rate loan commitments | 6.50% | 6.50% |
Maturities for fixed rate loan commitments | 30 years | 14 years |
Loan Commitments and Other R112
Loan Commitments and Other Related Activities (Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments To Make Loans [Member] | ||
Other Contingencies And Commitments [Line Items] | ||
Fixed Rate | $ 21,335 | $ 4,623 |
Variable Rate | 22,171 | 15,187 |
Unused Lines Of Credit [Member] | ||
Other Contingencies And Commitments [Line Items] | ||
Fixed Rate | 3,714 | 647 |
Variable Rate | 29,621 | 19,764 |
Standby Letters Of Credit [Member] | ||
Other Contingencies And Commitments [Line Items] | ||
Fixed Rate | $ 991 | $ 1,154 |
Parent Company Only Condense113
Parent Company Only Condensed Financial Information (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2003 |
ASSETS | ||||
Cash and cash equivalents | $ 57,941 | $ 25,895 | $ 28,207 | |
Other assets | 4,571 | 6,093 | ||
Total assets | 436,112 | 351,293 | ||
Liabilities and Equity | ||||
Subordinated debentures | 5,155 | 5,155 | $ 5,155 | |
Stockholders' equity | 39,292 | 38,312 | 34,509 | |
Total liabilities and stockholder's equity | 436,112 | 351,293 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 2,197 | 2,673 | $ 3,025 | |
Investment in banking subsidiary | 41,448 | 37,745 | ||
Investment in and advances to other subsidiary | 225 | 222 | ||
Other assets | 901 | 3,112 | ||
Total assets | 44,771 | 43,752 | ||
Liabilities and Equity | ||||
Subordinated debentures | 5,155 | 5,155 | ||
Accrued expenses and other liabilities | 324 | 285 | ||
Stockholders' equity | 39,292 | 38,312 | ||
Total liabilities and stockholder's equity | $ 44,771 | $ 43,752 |
Parent Company Only Condense114
Parent Company Only Condensed Financial Information (Condensed Statements Of Operations) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | $ 14,409,000 | $ 12,405,000 | |
Other income | 169,000 | 412,000 | |
Interest expense | 3,096,000 | 2,608,000 | |
Loss before income tax and undistributed subsidiary income | 2,437,000 | 1,284,000 | |
Tax effect | $ 0 | 810,000 | (3,193,000) |
Net income | 1,627,000 | 4,477,000 | |
Comprehensive income | 1,638,000 | 4,417,000 | |
Parent Company [Member] | |||
Interest income | 2,000 | 1,000 | |
Other income | 131,000 | 291,000 | |
Interest expense | 185,000 | 164,000 | |
Other expense | 646,000 | 548,000 | |
Loss before income tax and undistributed subsidiary income | (698,000) | (420,000) | |
Tax effect | 236,000 | 1,798,000 | |
Gain (loss) after income tax and undistributed subsidiary income | (462,000) | 1,378,000 | |
Equity in undistributed subsidiary income | 2,089,000 | 3,099,000 | |
Net income | 1,627,000 | 4,477,000 | |
Comprehensive income | $ 1,638,000 | $ 4,417,000 |
Parent Company Only Condense115
Parent Company Only Condensed Financial Information (Condensed Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net income | $ 1,627 | $ 4,477 |
Net cash from operating activities | 1,792 | 5,102 |
Cash flows from financing activities: | ||
Purchase of treasury shares | (30) | |
Dividends paid on Series B preferred stock | (750) | (750) |
Net cash from financing activities | 82,853 | 31,633 |
Net change in cash and cash equivalents | 32,046 | (2,312) |
Beginning cash and cash equivalents | 25,895 | 28,207 |
Ending cash and cash equivalents | 57,941 | 25,895 |
Parent Company [Member] | ||
Cash flows from operating activities | ||
Net income | 1,627 | 4,477 |
Effect of subsidiaries' operations | (2,089) | (3,099) |
Change in other assets and other liabilities | 766 | (980) |
Net cash from operating activities | 304 | 398 |
Cash flows from financing activities: | ||
Purchase of treasury shares | (30) | |
Dividends paid on Series B preferred stock | (750) | (750) |
Net cash from financing activities | (780) | (750) |
Net change in cash and cash equivalents | (476) | (352) |
Beginning cash and cash equivalents | 2,673 | 3,025 |
Ending cash and cash equivalents | $ 2,197 | $ 2,673 |
Earnings (Loss) Per Common S116
Earnings (Loss) Per Common Share (Computation of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Basic | ||
Net earnings (loss) | $ 1,627 | $ 4,477 |
Dividends on Series B preferred stock and accretion of discount | (857) | (857) |
Net income attributable to common stockholders | $ 770 | $ 3,620 |
Weighted average common shares outstanding including unvested share-based payment awards | 16,020,847 | 15,857,127 |
Less: Unvested share-based payment awards | ||
Average shares | 16,020,847 | 15,857,127 |
Basic earnings per common share | $ 0.05 | $ 0.23 |
Diluted | ||
Add back: Preferred Dividends on Series B stock | $ 857 | $ 857 |
Net loss allocated to common stockholders | $ 770 | $ 4,477 |
Add: Dilutive effects of assumed exercises of stock options | 38,184 | 8,473 |
Add: Dilutive effects of assumed exercises of Series B preferred stock | 6,857,143 | |
Average shares and dilutive potential common shares | 16,059,031 | 22,722,743 |
Diluted loss per common share | $ 0.05 | $ 0.20 |
Earnings (Loss) Per Common S117
Earnings (Loss) Per Common Share (Summary of Anti-Dilutive Options or Warrants) (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares | 282,971 | 417,058 |
Series B Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares | 6,857,143 | |
Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares | 1,152,125 | 1,152,125 |
Accumulated Other Comprehens118
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), beginning of period | $ (9) | ||
Other comprehensive income (loss), net of tax | 11 | $ (60) | |
Accumulated other comprehensive income (loss), end of period | 2 | (9) | |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), beginning of period | [1] | (9) | 51 |
Other comprehensive gain (loss) before reclassifications | [1] | 11 | (72) |
Less amount reclassified from accumulated other comprehensive loss | [1],[2] | 12 | |
Other comprehensive income (loss), net of tax | [1] | 11 | (60) |
Accumulated other comprehensive income (loss), end of period | [1] | $ 2 | $ (9) |
[1] | All amounts are net of tax. Amounts in parentheses indicate a reduction of other comprehensive income. | ||
[2] | There were no amounts reclassified out of other comprehensive income for year ended December 31, 2016. There was $12 reclassified out of other comprehensive income for year ended December 31, 2015 due to an early redemption of a municipal security. |