Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 15, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | OptimumBank Holdings, Inc. | ||
Entity Central Index Key | 1,288,855 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock held by non-affiliates | 6,454,497 | ||
Entity Public Float | $ 6,519,694 | ||
Entity Common Stock, Shares Outstanding | 962,886 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 10,162 | $ 11,601 |
Interest-bearing deposits with banks | 203 | 473 |
Total cash and cash equivalents | 10,365 | 12,074 |
Securities available for sale | 25,749 | 26,748 |
Loans, net of allowance for loan losses of $2,295 and $2,244 | 82,573 | 75,829 |
Federal Home Loan Bank stock | 966 | 1,229 |
Premises and equipment, net | 2,703 | 2,836 |
Foreclosed real estate, net | 4,029 | 4,880 |
Accrued interest receivable | 462 | 426 |
Other assets | 631 | 508 |
Total assets | 127,478 | 124,530 |
Liabilities: | ||
Noninterest-bearing demand deposits | 9,478 | 9,195 |
Savings, NOW and money-market deposits | 24,034 | 24,344 |
Time deposits | 64,059 | 58,064 |
Total deposits | 97,571 | 91,603 |
Federal Home Loan Bank advances | 20,000 | 22,740 |
Junior subordinated debenture | 5,155 | 5,155 |
Advanced payment by borrowers for taxes and insurance | 251 | 241 |
Official checks | 130 | 219 |
Other liabilities | 1,404 | 1,593 |
Total liabilities | $ 124,511 | $ 121,551 |
Stockholders' equity: | ||
Preferred stock, no par value; 6,000,000 shares authorized, 4 shares issued and outstanding in 2015 | ||
Common stock, $.01 par value; 50,000,000 shares authorized 9,628,863 and 9,305,236 shares issued and outstanding in 2015 and 2014 | $ 96 | $ 93 |
Additional paid-in capital | 33,330 | 32,961 |
Accumulated deficit | (30,321) | (30,158) |
Accumulated other comprehensive income | (138) | 83 |
Total stockholders' equity | 2,967 | 2,979 |
Total liabilities and stockholders' equity | $ 127,478 | $ 124,530 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 2,295 | $ 2,244 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 4 | |
Preferred stock, shares outstanding | 4 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 9,628,863 | 9,305,236 |
Common stock, shares outstanding | 9,628,863 | 9,305,236 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | ||
Loans | $ 3,865 | $ 4,366 |
Securities | 597 | 959 |
Other | 72 | 67 |
Total interest income | 4,534 | 5,392 |
Interest expense: | ||
Deposits | 648 | 662 |
Borrowings | 236 | 249 |
Total interest expense | 884 | 911 |
Net interest income | 3,650 | 4,481 |
Net interest income after provision for loan losses | 3,650 | 4,481 |
Noninterest income: | ||
Service charges and fees | 141 | 284 |
Other | 211 | 152 |
Gain on sale of securities | 60 | 136 |
Total noninterest income | 412 | 572 |
Noninterest expenses: | ||
Salaries and employee benefits | 1,902 | 1,963 |
Occupancy and equipment | 476 | 504 |
Data processing | 298 | 307 |
Professional fees | 594 | 862 |
Insurance | 115 | 136 |
Foreclosed real estate | 412 | (654) |
Regulatory assessments | 298 | 387 |
Other | 450 | (57) |
Total noninterest expenses | 4,545 | 3,448 |
(Loss) earnings before tax benefit | (483) | 1,605 |
Income tax benefit | (320) | |
Net (loss) earnings | $ (163) | $ 1,605 |
Net (loss) earnings per share: | ||
Basic | $ (0.17) | $ 1.85 |
Diluted | $ (0.17) | $ 1.85 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ (163) | $ 1,605 |
Unrealized gain (loss) on securities available for sale: | ||
Unrealized gain (loss) arising during the year | (297) | 264 |
Gain on sale of securities available for sale | (60) | (136) |
Net change in unrealized holding (loss) gain | (357) | 128 |
Deferred income taxes (benefit) on above change | (136) | 49 |
Total other comprehensive income (loss) | (221) | 79 |
Comprehensive income (loss) | $ (384) | $ 1,684 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance beginning at Dec. 31, 2013 | $ 80 | $ 31,463 | $ (31,763) | $ 4 | $ (216) | |
Balance beginning ,shares at Dec. 31, 2013 | 8,011,077 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from sale of common stock | $ 13 | 1,259 | 1,272 | |||
Proceeds from sale of common stock shares | 1,092,719 | |||||
Stock compensation | 239 | 239 | ||||
Stock compensation shares | 201,440 | |||||
Net change in unrealized gain on securities available for sale | 79 | 79 | ||||
Net earnings (loss) | 1,605 | 1,605 | ||||
Balance ending at Dec. 31, 2014 | $ 93 | 32,961 | (30,158) | 83 | 2,979 | |
Balance ending, shares at Dec. 31, 2014 | 9,305,236 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from sale of preferred stock | 100 | 100 | ||||
Proceeds from sale of preferred stock shares | 4 | |||||
Proceeds from sale of common stock | 30 | 30 | ||||
Proceeds from sale of common stock shares | 37,500 | |||||
Stock compensation | $ 3 | 239 | 242 | |||
Stock compensation shares | 286,127 | |||||
Net change in unrealized gain on securities available for sale | (221) | (221) | ||||
Net earnings (loss) | (163) | (163) | ||||
Balance ending at Dec. 31, 2015 | $ 96 | $ 33,330 | $ (30,321) | $ (138) | $ 2,967 | |
Balance ending, shares at Dec. 31, 2015 | 4 | 9,628,863 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net (loss) earnings | $ (163) | $ 1,605 |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 157 | 176 |
Stock compensation | 242 | 239 |
Net amortization of fees, premiums and discounts | 540 | 338 |
Gain from sale of securities available for sale | (60) | (136) |
(Increase) decrease in accrued interest receivable | (36) | 70 |
Increase (decrease) in other assets | 13 | 6 |
Gain on sale of foreclosed real estate | (48) | (809) |
Provision for losses on foreclosed real estate | 260 | 99 |
Decrease in official checks and other liabilities | (278) | (285) |
Net cash provided by operating activities | 627 | 1,303 |
Cash flows from investing activities: | ||
Purchases of securities | (12,314) | (20,436) |
Principal repayments and calls of securities | 4,017 | 3,671 |
Proceeds from sale of securities | 8,530 | 13,120 |
Net (increase) decrease in loans | (7,816) | 2,476 |
Purchase of premises and equipment, net | (24) | (133) |
Proceeds from sale of foreclosed real estate, net | 1,679 | 4,116 |
Capital improvements on foreclosed real estate | (39) | |
Redemption (Purchase) of Federal Home Loan Bank stock | 263 | (33) |
Net cash provided by investing activities | (5,704) | 2,781 |
Cash flows from financing activities: | ||
Proceeds from sale of preferred stock | 100 | |
Net increase (decrease) in deposits | 5,968 | (7,089) |
Proceeds from sale of common stock | 30 | 1,272 |
Repayment of Federal Home Loan Bank advances | (2,740) | |
Net increase (decrease) in advanced payment by borrowers for taxes and insurance | 10 | (74) |
Net cash provided by (used in) financing activities | 3,368 | (5,891) |
Decrease in cash and cash equivalents | (1,709) | (1,807) |
Cash and cash equivalents at beginning of the period | 12,074 | 13,881 |
Cash and cash equivalents at end of the period | 10,365 | 12,074 |
Cash paid during the year for: | ||
Interest | 723 | 753 |
Noncash investing and financing activities: | ||
Change in accumulated other comprehensive income, net change in unrealized gain on securities available for sale | (221) | 79 |
Loans transferred to foreclosed real estate | $ 1,001 | $ 733 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Organization. Basis of Presentation. Going Concern Status Use of Estimates. Cash and Cash Equivalents. The Company may be required by law or regulation to maintain cash reserves in the form of vault cash or in accounts with other banks. There were no reserve balances required at December 31, 2015 and 2014. Securities. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. A security is impaired if the fair value is less than its carrying value at the financial statement date. When a security is impaired, the Company determines whether this impairment is temporary or other-than-temporary. In estimating other-than-temporary impairment (“OTTI”) losses, management assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of these criteria is met, the entire difference between amortized cost and fair value is recognized in operations. For securities that do not meet the aforementioned criteria, the amount of impairment recognized in operations is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive loss. Management utilizes cash flow models to segregate impairments to distinguish between impairment related to credit losses and impairment related to other factors. To assess for OTTI, management considers, among other things, (i) the severity and duration of the impairment; (ii) the ratings of the security; (iii) the overall transaction structure (the Company’s position within the structure, the aggregate, near-term financial performance of the underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, and discounted cash flows); and (iv) the timing and magnitude of a break in modeled cash flows. Loans. Commitment fees and loan origination fees are deferred and certain direct origination costs are capitalized. Both are recognized as an adjustment of the yield of the related loan. The accrual of interest on loans is discontinued at the time the loan is ninety days delinquent unless the loan is well collateralized and in process of collection. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loans are lower than the carrying value of those loans. The general component covers all other loans and is based on historical loss experience adjusted for qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over the preceding three years. The historical loss experience is adjusted for the risks by each portfolio segment. Risk factors impacting loans in each of the portfolio segments include: economic trends and conditions; experience, ability and depth of lending management; national and local political environment; industry conditions and trends in charge-offs; and other trends or uncertainties that could affect management’s estimate of probable losses. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due. Factors considered by management in determining impairment 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. Impairment is measured on a loan by loan basis, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. Foreclosed Real Estate. Premises and Equipment. Preferred Securities of Unconsolidated Subsidiary Trust. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities of the Issuer Trust subject to the terms of the guarantee. Transfer of Financial Assets. Income Taxes. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company provides reserves for potential payments of tax related to uncertain tax positions. These reserves are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions is recorded as a component of income tax expense. See Note 10, below, for additional details. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Holding Company and the Bank file a consolidated income tax return. Income taxes are allocated proportionately to the Holding Company and the Bank as though separate income tax returns were filed. Advertising. Stock Compensation Plan. Reverse Common Stock Split. (Loss) Earnings Per Share. Year Ended December 31, 2015 2014 Weighted-average number of common shares outstanding used to calculate basic and diluted (loss) earnings per common share 953,855 867,789 Off-Balance-Sheet Financial Instruments. Fair Value Measurements. Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. The following describes valuation methodologies used for assets measured at fair value: Securities Available for Sale. Impaired Loans Foreclosed Real Estate. Fair Values of Financial Instruments. Cash and Cash Equivalents. Securities. Loans. Federal Home Loan Bank Stock. Accrued Interest Receivable. Deposit Liabilities. Federal Home Loan Bank Advances. Off-Balance-Sheet Financial Instruments. Comprehensive (Loss) Income. Recent Pronouncements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) |
Securities
Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | (2) Securities Securities have been classified according to management’s intent. The carrying amount of securities and approximate fair values are as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2015: Securities Available for Sale- Mortgage-backed securities $ 10,107 $ 31 $ (52 ) $ 10,086 Collateralized mortgage obligations 15,223 21 (227 ) 15,017 SBA Pool Security 644 2 — 646 Total $ 25,974 $ 54 $ (279 ) $ 25,749 At December 31, 2014: Securities Available for Sale- Mortgage-backed securities $ 14,621 $ 164 $ (25 ) $ 14,760 Collateralized mortgage obligations 11,260 22 (40 ) 11,242 SBA Pool Security 735 11 — 746 Total $ 26,616 $ 197 $ (65 ) $ 26,748 The following summarizes sales of securities (in thousands): Year Ended December 31, 2015 2014 Proceeds from sales of securities $ 8,530 $ 13,120 Gross gains from sale of securities 87 168 Gross losses from sale of securities (27 ) (32 ) Net gain from sales of securities $ 60 $ 136 Securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands): At December 31, 2015 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale: Mortgage-backed securities $ — $ — $ (52 ) $ 5,526 Collateralized mortgage obligations — — (227 ) 11,783 $ — $ — $ (279 ) $ 17,309 At December 31, 2014 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale: Mortgage-backed securities $ (25 ) $ 2,553 $ — $ — Collateralized mortgage obligations — — (40 ) 6,402 $ (25 ) $ 2,553 $ (40 ) $ 6,402 At December 31, 2015 and 2014, the unrealized losses on eighteen and ten investment securities, respectively were caused by market conditions. It is expected that the securities would not be settled at a price less than the book value of the investments. Because the decline in fair value is attributable to market conditions and not credit quality, and because the Company has the ability and intent to hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired. Available-for-sale securities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements Using Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2015: Mortgage-backed securities $ 10,086 $ — $ 10,086 $ — Collateralized mortgage obligations 15,017 — 15,017 — SBA Pool Security 646 — 646 — $ 25,749 $ — $ 25,749 $ — At December 31, 2014: Mortgage-backed securities $ 14,760 $ — $ 14,760 $ — Collateralized mortgage obligations 11,242 — 11,242 — SBA Pool Securities 746 — 746 — $ 26,748 $ — $ 26,748 $ — During the years ended December 31, 2015 and 2014, no securities were transferred in or out of Level 1, Level 2 or Level 3. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans | (3) Loans The components of loans are as follows (in thousands): At December 31, 2015 2014 Residential real estate $ 16,024 $ 21,276 Multi-family real estate 3,697 1,979 Commercial real estate 29,029 31,255 Land and construction 5,258 6,177 Commercial 27,691 17,180 Consumer 3,015 20 Total loans 84,714 77,887 Add (deduct): Net deferred loan fees, costs and premiums 154 186 Allowance for loan losses (2,295 ) (2,244 ) Loans, net $ 82,573 $ 75,829 An analysis of the change in the allowance for loan losses for the years ended December 31, 2015 and 2014 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Year Ended December 31, 2015: Beginning balance $ 65 $ 2 $ 1,589 $ 99 $ 22 $ — $ 467 $ 2,244 (Credit) provision for loan losses 35 24 (579 ) (44 ) 132 138 294 — Charge-offs (289 ) — — — — — — (289 ) Recoveries 305 — — 22 — 13 — 340 Ending balance $ 116 $ 26 $ 1,010 $ 77 $ 154 $ 151 $ 761 $ 2,295 Year Ended December 31, 2014: Beginning balance $ 49 $ 4 $ 934 $ 458 $ 61 $ — $ 705 $ 2,211 (Credit) provision for loan losses (4 ) (2 ) 655 (359 ) (39 ) (13 ) (238 ) — Charge-offs — — — — — — — — Recoveries 20 — — — — 13 — 33 Ending balance $ 65 $ 2 $ 1,589 $ 99 $ 22 $ — $ 467 $ 2,244 The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 and 2014 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At December 31, 2015: Individually evaluated for impairment: Recorded investment $ 1,071 $ — $ 2,147 $ — $ 2,126 $ — $ — $ 5,344 Balance in allowance for loan losses $ — $ — $ — $ — $ 13 $ — $ — $ 13 Collectively evaluated for impairment: Recorded investment $ 14,953 $ 3,697 $ 26,882 $ 5,258 $ 25,565 $ 3,015 $ — $ 79,370 Balance in allowance for loan losses $ 116 $ 26 $ 1,010 $ 77 $ 141 $ 151 $ 761 $ 2,282 At December 31, 2014: Individually evaluated for impairment: Recorded investment $ 4,838 $ — $ 4,096 $ — $ 1,151 $ — $ — $ 10,085 Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 16,438 $ 1,979 $ 27,159 $ 6,177 $ 16,029 $ 20 $ — $ 67,802 Balance in allowance for loan losses $ 65 $ 2 $ 1,589 $ 99 $ 22 $ — $ 467 $ 2,244 The Company has divided the loan portfolio into six portfolio segments, each with different risk characteristics and methodologies for assessing risk. The portfolio segments identified by the Company are as follows: Residential Real Estate, Multi-Family Real Estate, Commercial Real Estate, Land and Construction. Commercial. Consumer Loans. The following summarizes the loan credit quality (in thousands): Pass OLEM (Other Loans Especially Mentioned) Substandard Doubtful Loss Total At December 31, 2015: Residential real estate $ 14,953 $ — $ 1,071 $ — $ — $ 16,024 Multi-family real estate 3,697 — — — — 3,697 Commercial real estate 26,309 573 2,147 — — 29,029 Land and construction 5,212 46 — — — 5,258 Commercial 23,711 — 3,980 — — 27,691 Consumer 3,015 — — — — 3,015 Total $ 76,897 $ 619 $ 7,198 $ — $ — $ 84,714 At December 31, 2014: Residential real estate $ 15,170 $ — $ 6,106 $ — $ — $ 21,276 Multi-family real estate 1,979 — — — — 1,979 Commercial real estate 28,391 602 2,262 — — 31,255 Land and construction 4,232 1,945 — — — 6,177 Commercial 12,938 — 4,242 — — 17,180 Consumer 20 — — — — 20 Total $ 62,730 $ 2,547 $ 12,610 $ — $ — $ 77,887 Internally assigned loan grades are defined as follows: Pass OLEM (Other Loans Especially Mentioned) Substandard Doubtful Loss Age analysis of past-due loans is as follows (in thousands): Accruing Loans 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Nonaccrual Loans Total Loans At December 31, 2015: Residential real estate $ — $ — $ — $ — $ 14,953 $ 1,071 $ 16,024 Multi-family real estate — — — — 3,697 — 3,697 Commercial real estate — — — — 26,882 2,147 29,029 Land and construction — — — — 5,258 — 5,258 Commercial — — — — 26,606 1,085 27,691 Consumer — — — — 3,015 — 3,015 Total $ — $ — $ — $ — $ 80,411 $ 4,303 $ 84,714 At December 31, 2014: Residential real estate $ — $ 1,267 $ — $ 1,267 $ 17,910 $ 2,099 $ 21,276 Multi-family real estate — — — — 1,979 — 1,979 Commercial real estate 293 — — 293 29,895 1,067 31,255 Land and construction — — — — 6,177 — 6,177 Commercial — — — — 16,029 1,151 17,180 Consumer — — — — 20 — 20 Total $ 293 $ 1,267 $ — $ 1,560 $ 72,010 $ 4,317 $ 77,887 The following summarizes the amount of impaired loans (in thousands): At December 31, 2015 At December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 1,071 $ 1,196 $ — $ 4,838 $ 5,345 $ — Commercial real estate 2,147 3,960 — 4,096 5,910 — Commercial 1,085 1,326 — 1,151 1,392 — With an allowance recorded: Commercial $ 1,041 $ 1,041 $ 13 $ — $ — $ — Total: Residential real estate $ 1,071 $ 1,196 $ — $ 4,838 $ 5,345 $ — Commercial real estate $ 2,147 $ 3,960 $ — $ 4,096 $ 5,910 $ — Commercial $ 2,126 $ 2,367 $ 13 $ 1,151 $ 1,392 $ — Total $ 5,344 $ 7,523 $ 13 $ 10,085 $ 12,647 $ — The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): For the Year Ended December 31, 2015 2014 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ 4,473 $ 175 $ 236 $ 5,929 $ 421 $ 317 Commercial real estate $ 3,496 $ 57 $ 172 $ 4,421 $ 253 $ 204 Commercial $ 1,464 $ 18 $ 84 $ 1,181 $ — $ 66 Total $ 9,433 $ 250 $ 492 $ 11,531 $ 674 $ 587 There were no loans determined to be troubled debt restructurings during the years ended December 31, 2015 and 2014. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises And Equipment | |
Premises and Equipment | (4) Premises and Equipment A summary of premises and equipment follows (in thousands): At December 31, 2015 2014 Land $ 1,171 $ 1,171 Buildings and improvements 2,053 2,053 Furniture, fixtures and equipment 1,190 1,372 Leasehold improvements 119 122 Total, at cost 4,533 4,718 Less accumulated depreciation and amortization (1,830 ) (1,882 ) Premises and equipment, net $ 2,703 $ 2,836 The Company currently leases one branch facility under operating lease. The lease contains renewal options and requires the Company to pay an allowable share of common area maintenance and real estate taxes. Rent expense under the operating lease during the years ended December 31, 2015 and 2014 was $64,100 and $81,100, respectively. At December 31, 2015, the future minimum lease payments are approximately as follows (in thousands): Year Ending December 31, Amount 2016 60 2017 55 Total $ 115 |
Foreclosed Real Estate
Foreclosed Real Estate | 12 Months Ended |
Dec. 31, 2015 | |
Foreclosed Real Estate | |
Foreclosed Real Estate | (5) Foreclosed Real Estate Expenses (income) applicable to foreclosed real estate are as follows (in thousands): Year Ended December 31, 2015 2014 Provision for losses on foreclosed real estate $ 260 $ 99 Gain on sale of foreclosed real estate (48 ) (809 ) Operating expenses 200 56 $ 412 $ (654 ) At December 31, 2015 the valuation allowance with respect to foreclosed real estate was $260,000. There was no valuation allowance with respect to foreclosed real estate at December 31, 2014 or 2013. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | (6) Deposits The aggregate amount of time deposits with a minimum denomination of $100,000 was approximately $32.2 million and $18.3 million at December 31, 2015 and 2014, respectively. A schedule of maturities of time deposits at December 31, 2015 follows (in thousands): Year Ending December 31, Amount 2015 $ 49,684 2016 12,121 2017 1,462 2018 561 2019 231 $ 64,059 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Junior Subordinated Debenture | 12 Months Ended |
Dec. 31, 2015 | |
Federal Home Loan Bank Advances And Junior Subordinated Debenture | |
Federal Home Loan Bank Advances and Junior Subordinated Debenture | (7) Federal Home Loan Bank Advances and Junior Subordinated Debenture The maturities and interest rates on the Federal Home Loan Bank (“FHLB”) advances were as follows (dollars in thousands) Maturity Year Ending Interest At December 31, December 31, Rate 2015 2014 2016 0.53 13,500 12,740 2016 0.59 6,500 10,000 $ 20,000 $ 22,740 At December 31, 2015 and 2014, the FHLB advances were collateralized by $8.6 million and $13.2 million, respectively, of securities and by a lien on qualifying residential one-to-four family mortgage loans, commercial and multi-family real estate loans and second mortgage loans. On September 30, 2004, the Company issued a $5,155,000 junior subordinated debenture to an unconsolidated subsidiary. The debenture has a term of thirty years. The interest rate was fixed at 6.4% for the first five years, and thereafter, the coupon rate floats quarterly at the three-month LIBOR rate plus 2.45% (2.68% at December 31, 2015). The junior subordinated debenture, due in 2034, is redeemable in certain circumstances. The terms of the debenture agreement allow the Company to defer payments of interest on the debenture by extending the interest payment period at any time during the term of the debenture for up to twenty consecutive quarterly periods. During 2014 and 2013, the Company exercised its right to defer payment of interest on the debenture. Interest payments deferred as of December 31, 2015 and 2014 totaled $955,000 and $793,000, respectively. The Company has deferred interest payments with respect to its junior subordinated debenture for the maximum allowable twenty consecutive quarterly payments. As discussed in note 13 the Company is not able to make these interest payments without the prior approval of the Federal Reserve Bank of Atlanta. Regulatory approval to pay said accrued and unpaid interest has been denied. The holder of the Junior Subordinated Debenture can accelerate the $5,155,000 principal balance due at December 31, 2015 as a result of this technical default. A Director of the Company has agreed to purchase the Debenture and has agreed to provide a forbearance of the payment to the Company upon consummation of the purchase. Although the agreed upon purchase price for the Debenture has been tendered, the Trustee has received conflicting direction and therefore on December 11, 2014, the Trustee commenced an Action for Interpleader in the United States District Court for the Southern District of New York. On August 31, 2015, the court held that the Trustee could not sell the Debenture to the Director because certain conditions and requirements set forth in the indenture for the Trust had not been fulfilled. The Director intends to continue his efforts to acquire the Debenture. Based upon the underlying Debenture documents, Management does not believe the Trustee will call a Default at this time. The Company is continuing to pursue regulatory approval for the interest payment and other mechanisms for paying the accrued interest such as raising additional capital. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | (8) Financial Instruments The estimated fair values of the Company’s financial instruments were as follows (in thousands): At December 31, 2015 At December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 10,365 $ 10,365 $ 12,074 $ 12,074 Securities available for sale 25,749 25,749 26,748 26,748 Loans 82,573 82,429 75,829 75,621 Federal Home Loan Bank stock 966 966 1,229 1,229 Accrued interest receivable 462 462 426 426 Financial liabilities: Deposit liabilities 97,571 97,837 91,603 91,849 Federal Home Loan Bank advances 20,000 20,000 22,740 22,744 Junior subordinated debenture 5,155 N/A (1) 5,155 N/A (1) Off-balance sheet financial instruments — — — — (1) The Company is unable to determine value based on significant unobservable inputs required in the calculation. Refer to Note 7 for further information. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the consolidated balance sheet. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the counterparty. As of December 31, 2015, commitments to extend credit totaled $4.3 million. |
Credit Risk
Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Credit Risk | |
Credit Risk | (9) Credit Risk The Company grants the majority of its loans to borrowers throughout Broward County, Florida and portions of Palm Beach and Miami-Dade Counties, Florida. Although the Company has a diversified loan portfolio, a significant portion of its borrowersÂ’ ability to repay their loans and meet their contractual obligations to the Company is dependent upon the economy in Broward, Palm Beach and Miami-Dade Counties, Florida. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes Income tax benefit consisted of the following (in thousands): Year Ended December 31, 2015 2014 Current: Federal $ (320 ) $ — State — — Total Current (320 ) — Deferred: Federal (153 ) 530 State (26 ) 91 Change in Valuation Allowance 179 (621 ) Total Deferred — — Total $ (320 ) $ — The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows (dollars in thousands): Year Ended December 31, 2015 2014 Amount % of Pretax Earnings Amount % of Pretax Loss Income taxes (benefit) at statutory rate $ (164 ) 34% $ 546 34.0 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit (17 ) 3.5% 75 3.8 % Other permanent differences 2 (0.4% ) Change in valuation allowance 179 (37.1% ) (621 ) (37.8 )% Uncertain tax position (320 ) 66.3% — — $ (320 ) 66.3% $ — — % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands). Year Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 4,005 $ 3,917 Premises and equipment 52 66 Impaired securities — 29 Foreclosed property expenses 849 764 Nonaccrual loan interest 399 345 Unrealized loss on available for sale securities 87 — Other 82 79 Gross deferred tax assets 5,474 5,200 Less: Valuation allowance 5,240 5,061 Net deferred tax assets 234 139 Deferred tax liabilities: Allowance for loan losses (114 ) (114 ) Unrealized gain on available for sale securities — (50 ) Loan costs (37 ) (25 ) Total deferred tax liabilities (151 ) (189 ) Net deferred tax asset (liability) $ 83 $ (50 ) During the years ended December 31, 2015 and 2014, the Company assessed its earnings history and trend over the past year and its estimate of future earnings, and determined that it was more likely than not that the deferred tax assets would not be realized in the near term. Accordingly, a valuation allowance was recorded and maintained against the net deferred tax asset for the amount not expected to be realized in the future At December 31, 2015, the Company had net operating loss carryforwards of approximately $10.7 million for Federal tax purposes and $10.5 million for Florida tax purposes available to offset future taxable income. These carryforwards will begin to expire in 2029. A portion of the Federal and Florida net operating losses are subject to Internal Revenue Code Section 382 limitations. The Company files U.S. and Florida income tax returns. The Company is no longer subject to U.S. Federal or state income tax examinations by taxing authorities for years before 2012. The Company’s 2010 and 2009 Federal income tax returns were under examination by the Internal Revenue Service (“IRS”). In 2015 the IRS closed the examination with no adjustments for taxes due. In 2015, the Company reversed its reserve for unrecognized tax benefits related to these exams by recording an income tax benefit of $320,000. The Company regularly reviews its tax positions in each significant taxing jurisdiction in the process of evaluating its unrecognized tax benefits. The Company makes adjustments to its unrecognized tax benefits when: (i) facts and circumstances regarding a tax position change, causing a change in management’s judgment regarding that tax position; (ii) a tax position is effectively settled with a tax authority at a differing amount; and/or (iii) the statute of limitations expires regarding a tax position. The Company does not expect to a change in unrecognized tax benefits in the next year. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2015 2014 Balance, beginning of year $ 320 $ 320 Additions for tax positions related to current year — — Additions for tax positions of prior years — — Settlement due to exam closure (320 ) — Balance, end of year $ — $ 320 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (11) Related Party Transactions The Company has entered into transactions with its executive officers, directors and their affiliates in the ordinary course of business. There were loans to related parties at December 31, 2015 and 2014 of approximately $240,000 and $546,000, respectively. At December 31, 2015 and 2014, related parties had approximately $8,560,000 and $7,528,000, respectively, on deposit with the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (12) Stock-Based Compensation On December 27, 2011, the Company’s stockholders approved the 2011 Equity Incentive Plan (“2011 Plan”). A total of 520,412 shares of common stock are available to be issued under the 2011 Plan. Options, restricted stock, performance share awards and bonus share awards in lieu of obligations may be issued under the 2011 Plan. Both incentive stock options and nonqualified stock options can be granted under the 2011 Plan. The exercise price of the stock options cannot be less than the fair market value of the common stock on the date of grant. Options must be exercised within ten years of the date of grant. The Company’s prior plan was terminated on February 27, 2011 and the 1,444 option outstanding under the prior plan were forfeited during the year ended December 31, 2015. As of December 31, 2015, 529,588 shares of common stock have been granted under the 2011 Plan as compensation to directors for services rendered. Fair value of the shares of common stock as of the dates of the grants totaled approximately $242,000 and $239,000 during the years ended December 31, 2015 and 2014, respectfully. Such amounts have been reflected as expense in the accompanying consolidated statements of operations. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters | |
Regulatory Matters | (13) Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the regulatory banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Effective January 1, 2015, the Bank, became subject to the new Basel III capital level threshold requirements under the Prompt Corrective Action regulations with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. These new regulations were designed to ensure that banks maintain strong capital positions even in the event of severe economic downturns or unforeseen losses. Changes that could affect the Bank going forward include additional constraints on the inclusion of deferred tax assets in capital and increased risk weightings for nonperforming loans and acquisition/development loans in regulatory capital. Under the new regulations in the first quarter of 2015, the Bank elected an irreversible one-time opt-out to exclude accumulated other comprehensive loss from regulatory capital. As of December 31, 2015 and December 31, 2014, the Bank is subject to a Consent Order issued by the Federal Deposit Insurance Corporation and the State of Florida Office of Financial Regulation (“OFR”), and accordingly is deemed to be “adequately capitalized” even if its capital ratios were to exceed those generally required to be a “well capitalized” bank. An institution must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the following tables. The Bank’s actual capital amounts and percentages are also presented in the table (dollars in thousands): Actual For Capital Adequacy Purposes Minimum To Be Capitalized Prompt Action Requirements of Consent Order Amount % Amount % Amount % Amount % As of December 31, 2015: Total Capital to Risk-Weighted Assets $ 10,319 11.40 $ 7,240 8.0 $ 9,050 10.0 $ 10,860 12.0 Tier I Capital to Risk-Weighted Assets 9,173 10.14 5,430 6.0 7,240 8.0 N/A N/A Common Equity Tier I Capital to Risk-Weighted Assets 9,173 10.14 4,073 4.50 5,883 6.50 N/A N/A Tier I Capital to Total Assets 9,173 7.59 4,836 4.0 6,045 5.0 9,672 8.0 As of December 31, 2014: Total Capital to Risk-Weighted Assets $ 9,757 10.67 % $ 7,320 8.00 % $ 9,145 10.00 % $ 10,970 12.00 % Tier I Capital to Risk-Weighted Assets 8,600 9.40 3,660 4.00 5,490 6.00 N/A N/A Tier I Capital to Total Assets 8,600 6.95 4,950 4.00 6,190 5.00 9,900 8.00 Regulatory Matters - Company. The Written Agreement contains the following principal requirements: · The Board of the Company must take appropriate steps to fully utilize the Company’s financial and managerial resources to serve as a source of strength to the Bank, including, but not limited to, taking steps to ensure that the Bank complies with the Consent Order entered into with the Florida Office of Financial Regulation (“OFR”) and the FDIC and any other supervisory action taken by the Bank’s state or federal regulator. · The Company may not declare or pay any dividends without prior Reserve Bank and Federal Reserve approval. · The Company may not, directly or indirectly, take dividends or any other form of payment representing a reduction in capital from the Bank without prior Reserve Bank approval. · The Company and its nonconsolidated subsidiary, OptimumBank Holdings Capital Trust I, may not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank and the Federal Reserve. · The Company and its nonconsolidated subsidiary, OptimumBank Holdings Capital Trust I, may not, directly or indirectly, incur, increase, or guarantee any debt or purchase or redeem any shares of its stock without the prior written approval of the Reserve Bank. · The Company must obtain prior written consent from the Reserve Bank before appointing any new director or senior executive officer, or changing the responsibilities of any senior executive officer so that the officer would assume a different senior executive officer position, and must comply with the regulations applicable to indemnification and severance payments. · The Company must provide quarterly progress reports to the Reserve Bank, along with parent company only financial statements. Regulatory Matters - Bank. The Consent Order represents an agreement among the Bank, the FDIC and the OFR as to areas of the Bank’s operations that warrant improvement and presents a plan for making those improvements. The Consent Order imposes no fines or penalties on the Bank. The Consent Order will remain in effect and enforceable until it is modified, terminated, suspended, or set aside by the FDIC and the OFR. The Consent Order as amended contains the following principal requirements: · The Board of the Bank is required to increase its participation in the affairs of the Bank, assuming full responsibility for the approval of sound policies and objectives and for the supervision of all of the Bank’s activities, consistent with the role and expertise commonly expected for directors of banks of comparable size. · The Bank is required to have and retain qualified and appropriately experienced senior management, including a chief executive officer, a chief lending officer and a chief operating officer, who are given the authority to implement the provisions of the Consent Order. · Any proposed changes in the Bank’s Board of Directors or senior executive officers are subject to the prior consent of the FDIC and the OFR. · The Bank is required to maintain both a fully funded allowance for loan and lease losses satisfactory to the FDIC and the OFR and a minimum Tier 1 leverage capital ratio of 8% and a total risk-based capital ratio of 12% for as long as the Consent Order remains in effect. · The Bank shall develop, adopt and implement a written plan to ensure that the Bank is in compliance with the provisions of Section 658.33(2), Florida Statutes. Such plan must address how the Bank will ensure that at least three-fifths of the members of the Bank’s Board are current residents of the State of Florida and were residents of the State of Florida for one year preceding their election to the Board, and that at least three-fifths of the members of the Bank’s Board maintain their residence in the State of Florida for so long as they continue as members of the Board. · The Bank shall develop, adopt, and implement a written policy satisfactory to the Supervisory Authorities which shall govern the relationship between the Bank and its holding company and affiliates. · The Bank shall retain a bank consultant who will develop a written analysis and assessment of the Bank’s Board and management needs for the purpose of providing qualified management for the Bank. · The Bank shall submit a written plan to the Supervisory Authorities to reduce the remaining assets classified “Doubtful” and “Substandard” in the 2013 Report or any future regulatory examination report. · The Bank shall perform a risk segmentation analysis and shall develop and submit for review a revised written plan for systematically reducing and monitoring the Bank’s Commercial Real Estate Loans concentration of credit. · The Bank shall not extend, directly or indirectly, any additional credit to, or for the benefit of, any borrower who has a loan or other extension of credit from the Bank that has been charged-off or classified, in whole or in part, “Loss” or “Doubtful” and is uncollected. · The Bank shall not extend, directly or indirectly, any additional credit to, or for the benefit of, any borrower who has a loan or other extension of credit from the Bank that has been classified, in whole or part, “Substandard.” · The Bank shall revise its internal loan review and grading system. · The Board shall review, revise, and implement its written lending and collection policy to provide effective guidance and control over the Bank’s lending and credit administration functions. · The Bank shall prepare and submit to the Supervisory Authorities an acceptable written business/strategic plan covering the overall operation of the Bank. · The Bank shall implement a written plan to improve liquidity, contingency funding, interest rate risk and asset liability management. · The Bank shall revise and implement a written policy for managing interest rate risk in a manner that is appropriate to the size of the Bank and the complexity of its assets. · The Bank shall not accept, renew, or rollover any brokered deposit. · The Bank shall not declare or pay dividends, pay bonuses, or make any other form of payment outside the ordinary course of business resulting in a reduction of capital, without the prior written approval of the Supervisory Authorities. · The Bank shall notify the Supervisory Authorities at least sixty days prior to undertaking asset growth that exceeds 10% or more per annum or initiating material changes in asset or liability composition. · The Bank shall furnish written progress reports to the Supervisory Authorities within forty-five days from the end of each quarter, detailing the form and manner of any actions taken to secure compliance with this Consent Order. The Bank is in process of implementing comprehensive policies and plans to address all of the requirements of the Consent Order and has incorporated recommendations from the FDIC and OFR into these policies and plans. However, at December 31, 2015, the Bank was not in compliance with the minimum Tier 1 leverage capital ratio of 8% and a total risk-based capital ratio of 12%. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Dividends [Abstract] | |
Dividends | (14) Dividends The Company is limited in the amount of cash dividends that may be paid. Banking regulations place certain restrictions on dividends and loans or advances made by the Bank to the Holding Company. The amount of cash dividends that may be paid by the Bank to the Holding Company is based on the BankÂ’s net earnings of the current year combined with the BankÂ’s retained earnings of the preceding two years, as defined by state banking regulations. However, for any dividend declaration, the Company must consider additional factors such as the amount of current period net earnings, liquidity, asset quality, capital adequacy and economic conditions. It is likely that these factors would further limit the amount of dividends which the Company could declare. In addition, bank regulators have the authority to prohibit banks from paying dividends if they deem such payment to be an unsafe or unsound practice. At December 31, 2015, the Bank and Holding Company could not pay cash dividends (See Note 13). |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies | |
Contingencies | (15) Contingencies Various claims also arise from time to time in the normal course of business. In the opinion of management, none have occurred that will have a material effect on the CompanyÂ’s consolidated financial statements. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans | |
Retirement Plans | (16) Retirement Plans The Company has a 401(k) Profit Sharing plan covering all eligible employees who are over the age of twenty one and have completed one year of service. The Company may make a matching contribution each year. The Company did not make any matching contributions in connection with this plan during the year ended December 31, 2015 or 2014. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (17) Fair Value Measurement Impaired collateral-dependent loans are carried at fair value when the current collateral value is lower than the carrying value of the loan. Those impaired collateral-dependent loans which are measured at fair value or a nonrecurring basis are as follows (in thousands): Losses Recorded in Operations For the Year Ended December 31, 2015 At December 31, 2015 Fair Value Level 1 Level 2 Level 3 Total Losses Residential real estate $ 423 $ — $ — $ 423 $ 125 $ — Commercial real estate 1,009 — — 1,009 1,813 — Commercial 1,085 — — 1,085 242 — $ 2,517 $ — $ — $ 2,517 $ 2,180 $ — Losses Recorded in Operations For the Year Ended December 31, 2014 At December 31, 2014 Fair Value Level 1 Level 2 Level 3 Total Losses Residential real estate $ 1,387 $ — $ — $ 1,387 $ 507 $ — Commercial real estate 3,029 — — 3,029 3,269 — Commercial 1,151 — — 1,151 242 — $ 5,567 $ — $ — $ 5,567 $ 4,018 $ — Foreclosed real estate is recorded at fair value less estimated costs to sell. Foreclosed real estate which is measured at fair value on a nonrecurring basis is as follows (in thousands): At Year End Losses Recorded During the Year Fair Value Level 1 Level 2 Level 3 Total Losses At December 31, 2015 $ 4,029 $ — $ — $ 4,029 $ 1,403 $ 260 At December 31, 2014 $ 4,880 $ — $ — $ 4,880 $ 1,143 $ — |
Holding Company Financial Infor
Holding Company Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Holding Company Financial Information | (18) Holding Company Financial Information The Holding CompanyÂ’s unconsolidated financial information as of December 31, 2015 and 2014 and for the years then ended follows (in thousands): Condensed Balance Sheets At December 31, 2015 2014 Assets Cash $ 13 $ 71 Investment in subsidiary 9,036 8,683 Other assets 180 180 Total assets $ 9,229 $ 8,934 Liabilities and StockholdersÂ’ Equity Other liabilities $ 1,107 $ 800 Junior subordinated debenture 5,155 5,155 StockholdersÂ’ equity 2,967 2,979 Total liabilities and stockholdersÂ’ equity $ 9,229 $ 8,934 Condensed Statements of Operations Year Ended December 31, 2015 2014 Earnings of subsidiary $ 532 $ 2,229 Interest expense (162 ) (155 ) Other expense (533 ) (469 ) Net (loss) earnings $ (163 ) $ 1,605 Condensed Statements of Cash Flows Year Ended December 31, 2015 2014 Cash flows from operating activities: Net (loss) earnings $ (163 ) $ 1,605 Adjustments to reconcile net (loss) earnings to net cash used in operating activities: Stock compensation 242 239 Equity in undistributed earnings of subsidiary (532 ) (2,229 ) Increase in other liabilities 307 136 Net cash used in operating activities (146 ) (249 ) Cash flow from investing activities- Investment in subsidiary (42 ) (988 ) Cash flow from financing activities- Proceeds from sale of common stock, net 30 1,272 Proceeds from sale of preferred stock 100 Net cash provided by financing activities 130 1,272 Net (decrease) increase in cash (58 ) 35 Cash at beginning of the year 71 36 Cash at end of year $ 13 $ 71 Noncash transaction- Change in accumulated other comprehensive earnings of subsidiary, net change in unrealized (loss) gain on securities available for sale $ (221 ) $ 79 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | (19) Subsequent Event Amendment to Articles of Incorporation The Company amended its articles of incorporation effective January 11, 2016 to reduce authorized shares of Common Stock to 5,000,000 and to affect a 1 for 10 reverse common stock split. (Loss) Earnings per share have been adjusted in the accompanying Consolidated Financial Statements and Footnotes to reflect the 1 for 10 reverse common stock split. (20) Subsequent Event Loan Loss Recovery. On January 6, 2016, the Bank completed a sale of a judgment on a credit that resulted in a $1.8 million recovery of previously charged-off amounts to the Allowance for Loan and Lease Losses (ALLL). This increased the balance of the ALLL to approximately $4.1 million. On February 12, 2016, pursuant to the terms and requirements of the Consent Order, Management submitted a written request to the FDIC for a partial reversal of the ALLL. As of this date, no response from the FDIC has been received. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. |
Going Concern Status | Going Concern Status |
Use of Estimates | Use of Estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company may be required by law or regulation to maintain cash reserves in the form of vault cash or in accounts with other banks. There were no reserve balances required at December 31, 2015 and 2014. |
Securities | Securities. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. A security is impaired if the fair value is less than its carrying value at the financial statement date. When a security is impaired, the Company determines whether this impairment is temporary or other-than-temporary. In estimating other-than-temporary impairment (“OTTI”) losses, management assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of these criteria is met, the entire difference between amortized cost and fair value is recognized in operations. For securities that do not meet the aforementioned criteria, the amount of impairment recognized in operations is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive loss. Management utilizes cash flow models to segregate impairments to distinguish between impairment related to credit losses and impairment related to other factors. To assess for OTTI, management considers, among other things, (i) the severity and duration of the impairment; (ii) the ratings of the security; (iii) the overall transaction structure (the Company’s position within the structure, the aggregate, near-term financial performance of the underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, and discounted cash flows); and (iv) the timing and magnitude of a break in modeled cash flows. |
Loans | Loans. Commitment fees and loan origination fees are deferred and certain direct origination costs are capitalized. Both are recognized as an adjustment of the yield of the related loan. The accrual of interest on loans is discontinued at the time the loan is ninety days delinquent unless the loan is well collateralized and in process of collection. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses. The allowance for loan losses is evaluated on a regular basis by management and is based upon managementÂ’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrowerÂ’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loans are lower than the carrying value of those loans. The general component covers all other loans and is based on historical loss experience adjusted for qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over the preceding three years. The historical loss experience is adjusted for the risks by each portfolio segment. Risk factors impacting loans in each of the portfolio segments include: economic trends and conditions; experience, ability and depth of lending management; national and local political environment; industry conditions and trends in charge-offs; and other trends or uncertainties that could affect managementÂ’s estimate of probable losses. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due. Factors considered by management in determining impairment 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 borrowerÂ’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis, by either the present value of expected future cash flows discounted at the loanÂ’s effective interest rate, the loanÂ’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. |
Foreclosed Real Estate | Foreclosed Real Estate. |
Premises and Equipment | Premises and Equipment. |
Preferred Securities of Unconsolidated Subsidiary Trust | Preferred Securities of Unconsolidated Subsidiary Trust. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities of the Issuer Trust subject to the terms of the guarantee. |
Transfer of Financial Assets | Transfer of Financial Assets. |
Income Taxes | Income Taxes. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to managementÂ’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company provides reserves for potential payments of tax related to uncertain tax positions. These reserves are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions is recorded as a component of income tax expense. See Note 10, below, for additional details. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Holding Company and the Bank file a consolidated income tax return. Income taxes are allocated proportionately to the Holding Company and the Bank as though separate income tax returns were filed. |
Advertising | Advertising. |
Stock Compensation Plan | Stock Compensation Plan. |
Reverse Common Stock Split | Reverse Common Stock Split. |
(Loss) Earnings Per Share | (Loss) Earnings Per Share. Year Ended December 31, 2015 2014 Weighted-average number of common shares outstanding used to calculate basic and diluted (loss) earnings per common share 953,855 867,789 |
Off-Balance Sheet Financial Instruments | Off-Balance-Sheet Financial Instruments. |
Fair Value Measurements | Fair Value Measurements. Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. The following describes valuation methodologies used for assets measured at fair value: Securities Available for Sale. Impaired Loans Foreclosed Real Estate. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments. Cash and Cash Equivalents. Securities. Loans. Federal Home Loan Bank Stock. Accrued Interest Receivable. Deposit Liabilities. Federal Home Loan Bank Advances. Off-Balance-Sheet Financial Instruments. |
Comprehensive Income (Loss) | Comprehensive (Loss) Income. |
Recent Pronouncements | Recent Pronouncements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) |
Summary of Significant Account
Summary of Significant Account Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of weighted average number of shares | For the year ended December 31, 2014 basic and diluted earnings per share are the same because stock options outstanding during the year were not dilutive due to their exercise prices exceeding the fair value of the CompanyÂ’s common stock during the year. (Loss) earnings per common share has been computed based on the following: Year Ended December 31, 2015 2014 Weighted-average number of common shares outstanding used to calculate basic and diluted (loss) earnings per common share 953,855 867,789 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, unrealized gross gains and losses and fair values of securities available for sale | Securities have been classified according to management’s intent. The carrying amount of securities and approximate fair values are as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2015: Securities Available for Sale- Mortgage-backed securities $ 10,107 $ 31 $ (52 ) $ 10,086 Collateralized mortgage obligations 15,223 21 (227 ) 15,017 SBA Pool Security 644 2 — 646 Total $ 25,974 $ 54 $ (279 ) $ 25,749 At December 31, 2014: Securities Available for Sale- Mortgage-backed securities $ 14,621 $ 164 $ (25 ) $ 14,760 Collateralized mortgage obligations 11,260 22 (40 ) 11,242 SBA Pool Security 735 11 — 746 Total $ 26,616 $ 197 $ (65 ) $ 26,748 |
Schedule of proceeds from sales of securities | The following summarizes sales of securities (in thousands): Year Ended December 31, 2015 2014 Proceeds from sales of securities $ 8,530 $ 13,120 Gross gains from sale of securities 87 168 Gross losses from sale of securities (27 ) (32 ) Net gain from sales of securities $ 60 $ 136 |
Schedule of securities with continuous unrealized loss position | Securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands): At December 31, 2015 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale: Mortgage-backed securities $ — $ — $ (52 ) $ 5,526 Collateralized mortgage obligations — — (227 ) 11,783 $ — $ — $ (279 ) $ 17,309 At December 31, 2014 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale: Mortgage-backed securities $ (25 ) $ 2,553 $ — $ — Collateralized mortgage obligations — — (40 ) 6,402 $ (25 ) $ 2,553 $ (40 ) $ 6,402 |
Schedule of securities available for sale measured at fair value on a recurring basis | Available-for-sale securities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements Using Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2015: Mortgage-backed securities $ 10,086 $ — $ 10,086 $ — Collateralized mortgage obligations 15,017 — 15,017 — SBA Pool Security 646 — 646 — $ 25,749 $ — $ 25,749 $ — At December 31, 2014: Mortgage-backed securities $ 14,760 $ — $ 14,760 $ — Collateralized mortgage obligations 11,242 — 11,242 — SBA Pool Securities 746 — 746 — $ 26,748 $ — $ 26,748 $ — |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of components of loans | The components of loans are as follows (in thousands): At December 31, 2015 2014 Residential real estate $ 16,024 $ 21,276 Multi-family real estate 3,697 1,979 Commercial real estate 29,029 31,255 Land and construction 5,258 6,177 Commercial 27,691 17,180 Consumer 3,015 20 Total loans 84,714 77,887 Add (deduct): Net deferred loan fees, costs and premiums 154 186 Allowance for loan losses (2,295 ) (2,244 ) Loans, net $ 82,573 $ 75,829 |
Schedule of activity in the allowance for loan losses | An analysis of the change in the allowance for loan losses for the years ended December 31, 2015 and 2014 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Year Ended December 31, 2015: Beginning balance $ 65 $ 2 $ 1,589 $ 99 $ 22 $ — $ 467 $ 2,244 (Credit) provision for loan losses 35 24 (579 ) (44 ) 132 138 294 — Charge-offs (289 ) — — — — — — (289 ) Recoveries 305 — — 22 — 13 — 340 Ending balance $ 116 $ 26 $ 1,010 $ 77 $ 154 $ 151 $ 761 $ 2,295 Year Ended December 31, 2014: Beginning balance $ 49 $ 4 $ 934 $ 458 $ 61 $ — $ 705 $ 2,211 (Credit) provision for loan losses (4 ) (2 ) 655 (359 ) (39 ) (13 ) (238 ) — Charge-offs — — — — — — — — Recoveries 20 — — — — 13 — 33 Ending balance $ 65 $ 2 $ 1,589 $ 99 $ 22 $ — $ 467 $ 2,244 The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 and 2014 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At December 31, 2015: Individually evaluated for impairment: Recorded investment $ 1,071 $ — $ 2,147 $ — $ 2,126 $ — $ — $ 5,344 Balance in allowance for loan losses $ — $ — $ — $ — $ 13 $ — $ — $ 13 Collectively evaluated for impairment: Recorded investment $ 14,953 $ 3,697 $ 26,882 $ 5,258 $ 25,565 $ 3,015 $ — $ 79,370 Balance in allowance for loan losses $ 116 $ 26 $ 1,010 $ 77 $ 141 $ 151 $ 761 $ 2,282 At December 31, 2014: Individually evaluated for impairment: Recorded investment $ 4,838 $ — $ 4,096 $ — $ 1,151 $ — $ — $ 10,085 Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 16,438 $ 1,979 $ 27,159 $ 6,177 $ 16,029 $ 20 $ — $ 67,802 Balance in allowance for loan losses $ 65 $ 2 $ 1,589 $ 99 $ 22 $ — $ 467 $ 2,244 |
Schedule of loans by credit quality indicator | The following summarizes the loan credit quality (in thousands): Pass OLEM (Other Loans Especially Mentioned) Substandard Doubtful Loss Total At December 31, 2015: Residential real estate $ 14,953 $ — $ 1,071 $ — $ — $ 16,024 Multi-family real estate 3,697 — — — — 3,697 Commercial real estate 26,309 573 2,147 — — 29,029 Land and construction 5,212 46 — — — 5,258 Commercial 23,711 — 3,980 — — 27,691 Consumer 3,015 — — — — 3,015 Total $ 76,897 $ 619 $ 7,198 $ — $ — $ 84,714 At December 31, 2014: Residential real estate $ 15,170 $ — $ 6,106 $ — $ — $ 21,276 Multi-family real estate 1,979 — — — — 1,979 Commercial real estate 28,391 602 2,262 — — 31,255 Land and construction 4,232 1,945 — — — 6,177 Commercial 12,938 — 4,242 — — 17,180 Consumer 20 — — — — 20 Total $ 62,730 $ 2,547 $ 12,610 $ — $ — $ 77,887 |
Schedule of aging analysis of past due loans | Age analysis of past-due loans is as follows (in thousands): Accruing Loans 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Nonaccrual Loans Total Loans At December 31, 2015: Residential real estate $ — $ — $ — $ — $ 14,953 $ 1,071 $ 16,024 Multi-family real estate — — — — 3,697 — 3,697 Commercial real estate — — — — 26,882 2,147 29,029 Land and construction — — — — 5,258 — 5,258 Commercial — — — — 26,606 1,085 27,691 Consumer — — — — 3,015 — 3,015 Total $ — $ — $ — $ — $ 80,411 $ 4,303 $ 84,714 At December 31, 2014: Residential real estate $ — $ 1,267 $ — $ 1,267 $ 17,910 $ 2,099 $ 21,276 Multi-family real estate — — — — 1,979 — 1,979 Commercial real estate 293 — — 293 29,895 1,067 31,255 Land and construction — — — — 6,177 — 6,177 Commercial — — — — 16,029 1,151 17,180 Consumer — — — — 20 — 20 Total $ 293 $ 1,267 $ — $ 1,560 $ 72,010 $ 4,317 $ 77,887 |
Schedule of impaired loans | The following summarizes the amount of impaired loans (in thousands): At December 31, 2015 At December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 1,071 $ 1,196 $ — $ 4,838 $ 5,345 $ — Commercial real estate 2,147 3,960 — 4,096 5,910 — Commercial 1,085 1,326 — 1,151 1,392 — With an allowance recorded: Commercial $ 1,041 $ 1,041 $ 13 $ — $ — $ — Total: Residential real estate $ 1,071 $ 1,196 $ — $ 4,838 $ 5,345 $ — Commercial real estate $ 2,147 $ 3,960 $ — $ 4,096 $ 5,910 $ — Commercial $ 2,126 $ 2,367 $ 13 $ 1,151 $ 1,392 $ — Total $ 5,344 $ 7,523 $ 13 $ 10,085 $ 12,647 $ — The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): For the Year Ended December 31, 2015 2014 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ 4,473 $ 175 $ 236 $ 5,929 $ 421 $ 317 Commercial real estate $ 3,496 $ 57 $ 172 $ 4,421 $ 253 $ 204 Commercial $ 1,464 $ 18 $ 84 $ 1,181 $ — $ 66 Total $ 9,433 $ 250 $ 492 $ 11,531 $ 674 $ 587 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | A summary of premises and equipment follows (in thousands): At December 31, 2015 2014 Land $ 1,171 $ 1,171 Buildings and improvements 2,053 2,053 Furniture, fixtures and equipment 1,190 1,372 Leasehold improvements 119 122 Total, at cost 4,533 4,718 Less accumulated depreciation and amortization (1,830 ) (1,882 ) Premises and equipment, net $ 2,703 $ 2,836 |
Schedule of future minimum lease payments for operating lease | At December 31, 2015, the future minimum lease payments are approximately as follows (in thousands): Year Ending December 31, Amount 2016 60 2017 55 Total $ 115 |
Foreclosed Real Estate (Tables)
Foreclosed Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Foreclosed Real Estate Tables | |
Schedule of expenses related to other real estate owned | Expenses (income) applicable to foreclosed real estate are as follows (in thousands): Year Ended December 31, 2015 2014 Provision for losses on foreclosed real estate $ 260 $ 99 Gain on sale of foreclosed real estate (48 ) (809 ) Operating expenses 200 56 $ 412 $ (654 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits Tables | |
Schedule of maturities of time deposits | A schedule of maturities of time deposits at December 31, 2015 follows (in thousands): Year Ending December 31, Amount 2015 $ 49,684 2016 12,121 2017 1,462 2018 561 2019 231 $ 64,059 |
Federal Home Loan Bank Advanc34
Federal Home Loan Bank Advances and Junior Subordinated Debenture (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Federal Home Loan Bank Advances And Junior Subordinated Debenture Tables | |
Schedule of maturities of FHLB Advances | The maturities and interest rates on the Federal Home Loan Bank (“FHLB”) advances were as follows (dollars in thousands) Maturity Year Ending Interest At December 31, December 31, Rate 2015 2014 2016 0.53 13,500 12,740 2016 0.59 6,500 10,000 $ 20,000 $ 22,740 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair value of financial instruments | The estimated fair values of the Company’s financial instruments were as follows (in thousands): At December 31, 2015 At December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 10,365 $ 10,365 $ 12,074 $ 12,074 Securities available for sale 25,749 25,749 26,748 26,748 Loans 82,573 82,429 75,829 75,621 Federal Home Loan Bank stock 966 966 1,229 1,229 Accrued interest receivable 462 462 426 426 Financial liabilities: Deposit liabilities 97,571 97,837 91,603 91,849 Federal Home Loan Bank advances 20,000 20,000 22,740 22,744 Junior subordinated debenture 5,155 N/A (1) 5,155 N/A (1) Off-balance sheet financial instruments — — — — (1) The Company is unable to determine value based on significant unobservable inputs required in the calculation. Refer to Note 7 for further information. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | Income tax benefit consisted of the following (in thousands): Year Ended December 31, 2015 2014 Current: Federal $ (320 ) $ — State — — Total Current (320 ) — Deferred: Federal (153 ) 530 State (26 ) 91 Change in Valuation Allowance 179 (621 ) Total Deferred — — Total $ (320 ) $ — |
Schedule of effective income tax rate reconciliation | The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows (dollars in thousands): Year Ended December 31, 2015 2014 Amount % of Pretax Earnings Amount % of Pretax Loss Income taxes (benefit) at statutory rate $ (164 ) 34% $ 546 34.0 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit (17 ) 3.5% 75 3.8 % Other permanent differences 2 (0.4% ) Change in valuation allowance 179 (37.1% ) (621 ) (37.8 )% Uncertain tax position (320 ) 66.3% — — $ (320 ) 66.3% $ — — % |
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands). Year Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 4,005 $ 3,917 Premises and equipment 52 66 Impaired securities — 29 Foreclosed property expenses 849 764 Nonaccrual loan interest 399 345 Unrealized loss on available for sale securities 87 — Other 82 79 Gross deferred tax assets 5,474 5,200 Less: Valuation allowance 5,240 5,061 Net deferred tax assets 234 139 Deferred tax liabilities: Allowance for loan losses (114 ) (114 ) Unrealized gain on available for sale securities — (50 ) Loan costs (37 ) (25 ) Total deferred tax liabilities (151 ) (189 ) Net deferred tax asset (liability) $ 83 $ (50 ) |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2015 2014 Balance, beginning of year $ 320 $ 320 Additions for tax positions related to current year — — Additions for tax positions of prior years — — Settlement due to exam closure (320 ) — Balance, end of year $ — $ 320 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters Tables | |
Schedule of regulatory capital requirements | An institution must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the following tables. The BankÂ’s actual capital amounts and percentages are also presented in the table (dollars in thousands): Actual For Capital Adequacy Purposes Minimum To Be Capitalized Prompt Action Requirements of Consent Order Amount % Amount % Amount % Amount % As of December 31, 2015: Total Capital to Risk-Weighted Assets $ 10,319 11.40 $ 7,240 8.0 $ 9,050 10.0 $ 10,860 12.0 Tier I Capital to Risk-Weighted Assets 9,173 10.14 5,430 6.0 7,240 8.0 N/A N/A Common Equity Tier I Capital to Risk-Weighted Assets 9,173 10.14 4,073 4.50 5,883 6.50 N/A N/A Tier I Capital to Total Assets 9,173 7.59 4,836 4.0 6,045 5.0 9,672 8.0 As of December 31, 2014: Total Capital to Risk-Weighted Assets $ 9,757 10.67 % $ 7,320 8.00 % $ 9,145 10.00 % $ 10,970 12.00 % Tier I Capital to Risk-Weighted Assets 8,600 9.40 3,660 4.00 5,490 6.00 N/A N/A Tier I Capital to Total Assets 8,600 6.95 4,950 4.00 6,190 5.00 9,900 8.00 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured on a nonrecurring basis | Those impaired collateral-dependent loans which are measured at fair value or a nonrecurring basis are as follows (in thousands): Losses Recorded in Operations For the Year Ended December 31, 2015 At December 31, 2015 Fair Value Level 1 Level 2 Level 3 Total Losses Residential real estate $ 423 $ — $ — $ 423 $ 125 $ — Commercial real estate 1,009 — — 1,009 1,813 — Commercial 1,085 — — 1,085 242 — $ 2,517 $ — $ — $ 2,517 $ 2,180 $ — Losses Recorded in Operations For the Year Ended December 31, 2014 At December 31, 2014 Fair Value Level 1 Level 2 Level 3 Total Losses Residential real estate $ 1,387 $ — $ — $ 1,387 $ 507 $ — Commercial real estate 3,029 — — 3,029 3,269 — Commercial 1,151 — — 1,151 242 — $ 5,567 $ — $ — $ 5,567 $ 4,018 $ — Foreclosed real estate is recorded at fair value less estimated costs to sell. Foreclosed real estate which is measured at fair value on a nonrecurring basis is as follows (in thousands): At Year End Losses Recorded During the Year Fair Value Level 1 Level 2 Level 3 Total Losses At December 31, 2015 $ 4,029 $ — $ — $ 4,029 $ 1,403 $ 260 At December 31, 2014 $ 4,880 $ — $ — $ 4,880 $ 1,143 $ — |
Holding Company Financial Inf39
Holding Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | The Holding CompanyÂ’s unconsolidated financial information as of December 31, 2015 and 2014 and for the years then ended follows (in thousands): Condensed Balance Sheets At December 31, 2015 2014 Assets Cash $ 13 $ 71 Investment in subsidiary 9,036 8,683 Other assets 180 180 Total assets $ 9,229 $ 8,934 Liabilities and StockholdersÂ’ Equity Other liabilities $ 1,107 $ 800 Junior subordinated debenture 5,155 5,155 StockholdersÂ’ equity 2,967 2,979 Total liabilities and stockholdersÂ’ equity $ 9,229 $ 8,934 |
Condensed Statements of Income and Comprehensive Income | Condensed Statements of Operations Year Ended December 31, 2015 2014 Earnings of subsidiary $ 532 $ 2,229 Interest expense (162 ) (155 ) Other expense (533 ) (469 ) Net (loss) earnings $ (163 ) $ 1,605 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, 2015 2014 Cash flows from operating activities: Net (loss) earnings $ (163 ) $ 1,605 Adjustments to reconcile net (loss) earnings to net cash used in operating activities: Stock compensation 242 239 Equity in undistributed earnings of subsidiary (532 ) (2,229 ) Increase in other liabilities 307 136 Net cash used in operating activities (146 ) (249 ) Cash flow from investing activities- Investment in subsidiary (42 ) (988 ) Cash flow from financing activities- Proceeds from sale of common stock, net 30 1,272 Proceeds from sale of preferred stock 100 Net cash provided by financing activities 130 1,272 Net (decrease) increase in cash (58 ) 35 Cash at beginning of the year 71 36 Cash at end of year $ 13 $ 71 Noncash transaction- Change in accumulated other comprehensive earnings of subsidiary, net change in unrealized (loss) gain on securities available for sale $ (221 ) $ 79 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Junior subordinated debenture | $ 5,155 | $ 5,155 |
Advertising expense | 6,100 | 5,400 |
Accrued and unpaid interest payable | 955 | $ 793 |
OptimumBank Holdings Capital Trust I | ||
Preferred Securities issued | 5,000 | |
Junior subordinated debenture | $ 5,155 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Weighted-average number of common shares outstanding used to calculate basic and diluted earnings (loss) per common share | 953,855 | 867,789 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | $ 25,974 | $ 26,616 |
Gross Unrealized Gains | 54 | 197 |
Gross Unrealized Losses | (279) | (65) |
Fair Value | 25,749 | 26,748 |
Mortgage-backed securities [Member] | ||
Amortized Cost | 10,107 | 14,621 |
Gross Unrealized Gains | 31 | 164 |
Gross Unrealized Losses | (52) | (25) |
Fair Value | 10,086 | 14,760 |
Collateralized Mortgage Obligations [Member] | ||
Amortized Cost | 15,223 | 11,260 |
Gross Unrealized Gains | 21 | 22 |
Gross Unrealized Losses | (227) | (40) |
Fair Value | 15,017 | 11,242 |
SBA Pool Security [Member] | ||
Amortized Cost | 644 | 735 |
Gross Unrealized Gains | 2 | 11 |
Fair Value | $ 646 | $ 746 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sale of security available for sale | $ 8,530 | $ 13,120 |
Gross gains from sale of securities | 87 | 168 |
Gross losses from sale of securities | (27) | (32) |
Net losses from sale of securities | $ 60 | $ 136 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Gross unrealized Losses | $ (25) | |
Fair Value | 2,553 | |
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Gross unrealized Losses | $ (279) | (40) |
Fair Value | 17,309 | 6,402 |
Mortgage-backed securities [Member] | ||
Securities in an Unrealized Loss Position for More than 12 Months | ||
Gross unrealized Losses | (25) | |
Fair Value | 2,553 | |
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Gross unrealized Losses | (52) | |
Fair Value | 5,526 | |
Collateralized Mortgage Obligations [Member] | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Gross unrealized Losses | (227) | (40) |
Fair Value | $ 11,783 | $ 6,402 |
Securities (Details 3)
Securities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities available for sale, fair value | $ 25,749 | $ 26,748 |
Mortgage-backed securities | ||
Securities available for sale, fair value | 10,086 | 14,760 |
Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, fair value | 15,017 | 11,242 |
SBA Pool Security [Member] | ||
Securities available for sale, fair value | 646 | 746 |
Recurring Basis | Fair Value | ||
Securities available for sale, fair value | 25,749 | 26,748 |
Recurring Basis | Fair Value | Mortgage-backed securities | ||
Securities available for sale, fair value | 10,086 | 14,760 |
Recurring Basis | Fair Value | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, fair value | 15,017 | 11,242 |
Recurring Basis | Fair Value | SBA Pool Security [Member] | ||
Securities available for sale, fair value | 646 | 746 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Securities available for sale, fair value | 25,749 | 26,748 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Securities available for sale, fair value | 10,086 | 14,760 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, fair value | 15,017 | 11,242 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | SBA Pool Security [Member] | ||
Securities available for sale, fair value | $ 646 | $ 746 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans, gross | $ 84,714 | $ 77,887 | |
Net deferred loan fees, costs and premiums | 154 | 186 | |
Allowance for loan losses | (2,295) | (2,244) | $ (2,211) |
Loans, net | 82,573 | 75,829 | |
Residential real estate [Member] | |||
Loans, gross | 17,180 | 21,276 | |
Allowance for loan losses | (116) | (65) | (49) |
Multi-family real estate [Member] | |||
Loans, gross | 3,697 | 1,979 | |
Allowance for loan losses | (26) | (2) | (4) |
Commercial Real Estate [Member] | |||
Loans, gross | 29,029 | 31,255 | |
Allowance for loan losses | (1,010) | (1,589) | (934) |
Land and construction [Member] | |||
Loans, gross | 5,258 | 6,177 | |
Allowance for loan losses | (77) | (99) | (458) |
Commercial [Member] | |||
Loans, gross | 27,691 | 17,180 | |
Allowance for loan losses | (154) | (22) | $ (61) |
Consumer [Member] | |||
Loans, gross | 3,015 | $ 20 | |
Allowance for loan losses | $ (151) |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Activity in the allowance for loan losses by portfolio segment | ||
Beginning balance | $ 2,244 | $ 2,211 |
Provision (credit) for loan losses | ||
Charge-offs | $ (289) | |
Recoveries | 340 | 33 |
Ending balance | 2,295 | 2,244 |
Residential real estate [Member] | ||
Activity in the allowance for loan losses by portfolio segment | ||
Beginning balance | 65 | 49 |
Provision (credit) for loan losses | 35 | (4) |
Charge-offs | (289) | |
Recoveries | 305 | 20 |
Ending balance | 116 | 65 |
Multi-family real estate [Member] | ||
Activity in the allowance for loan losses by portfolio segment | ||
Beginning balance | 2 | 4 |
Provision (credit) for loan losses | 24 | (2) |
Ending balance | 26 | 2 |
Commercial Real Estate [Member] | ||
Activity in the allowance for loan losses by portfolio segment | ||
Beginning balance | 1,589 | 934 |
Provision (credit) for loan losses | (579) | 655 |
Ending balance | 1,010 | 1,589 |
Land and construction [Member] | ||
Activity in the allowance for loan losses by portfolio segment | ||
Beginning balance | 99 | 458 |
Provision (credit) for loan losses | (44) | (359) |
Recoveries | 22 | |
Ending balance | 77 | 99 |
Commercial [Member] | ||
Activity in the allowance for loan losses by portfolio segment | ||
Beginning balance | 22 | 61 |
Provision (credit) for loan losses | 132 | (39) |
Ending balance | 154 | 22 |
Consumer [Member] | ||
Activity in the allowance for loan losses by portfolio segment | ||
Provision (credit) for loan losses | 138 | (13) |
Recoveries | 13 | 13 |
Ending balance | 151 | |
Unallocated [Member] | ||
Activity in the allowance for loan losses by portfolio segment | ||
Beginning balance | 467 | 705 |
Provision (credit) for loan losses | 294 | (238) |
Ending balance | $ 761 | $ 467 |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance balance attributed to loans: | ||
Recorded investment, Individually evaluated for impairment | $ 5,344 | $ 10,085 |
Allowance for loan losses, Individually evaluated for impairment | 13 | |
Recorded investment, Collectively evaluated for impairment | 79,370 | 67,802 |
Allowance for loan losses, Collectively evaluated for impairment | 2,282 | 2,244 |
Residential real estate [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Individually evaluated for impairment | 1,071 | 4,838 |
Recorded investment, Collectively evaluated for impairment | 14,953 | 16,438 |
Allowance for loan losses, Collectively evaluated for impairment | 116 | 65 |
Multi-family real estate [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Collectively evaluated for impairment | 3,697 | 1,979 |
Allowance for loan losses, Collectively evaluated for impairment | 26 | 2 |
Commercial Real Estate [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Individually evaluated for impairment | 2,147 | 4,096 |
Recorded investment, Collectively evaluated for impairment | 26,882 | 27,159 |
Allowance for loan losses, Collectively evaluated for impairment | 1,010 | 1,589 |
Land and construction [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Collectively evaluated for impairment | 5,258 | 6,177 |
Allowance for loan losses, Collectively evaluated for impairment | 77 | 99 |
Commercial [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Individually evaluated for impairment | 2,126 | 1,151 |
Allowance for loan losses, Individually evaluated for impairment | 13 | |
Recorded investment, Collectively evaluated for impairment | 25,565 | 16,029 |
Allowance for loan losses, Collectively evaluated for impairment | 141 | 22 |
Consumer [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Collectively evaluated for impairment | 3,015 | 20 |
Allowance for loan losses, Collectively evaluated for impairment | 151 | |
Unallocated [Member] | ||
Allowance balance attributed to loans: | ||
Allowance for loan losses, Collectively evaluated for impairment | $ 761 | $ 467 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Risk rated loans | $ 84,714 | $ 77,887 |
Pass [Member] | ||
Risk rated loans | 76,897 | 62,730 |
OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 619 | 2,547 |
Substandard [Member] | ||
Risk rated loans | 7,198 | 12,610 |
Residential real estate [Member] | ||
Risk rated loans | 17,180 | 21,276 |
Residential real estate [Member] | Pass [Member] | ||
Risk rated loans | 14,953 | 15,170 |
Residential real estate [Member] | Substandard [Member] | ||
Risk rated loans | 1,071 | 6,106 |
Multi-family real estate [Member] | ||
Risk rated loans | 3,697 | 1,979 |
Multi-family real estate [Member] | Pass [Member] | ||
Risk rated loans | 3,697 | 1,979 |
Commercial Real Estate [Member] | ||
Risk rated loans | 29,029 | 31,255 |
Commercial Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 26,309 | 28,391 |
Commercial Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 573 | 602 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | 2,147 | 2,262 |
Land and construction [Member] | ||
Risk rated loans | 5,258 | 6,177 |
Land and construction [Member] | Pass [Member] | ||
Risk rated loans | 5,212 | 4,232 |
Land and construction [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 46 | 1,945 |
Commercial [Member] | ||
Risk rated loans | 27,691 | 17,180 |
Commercial [Member] | Pass [Member] | ||
Risk rated loans | 23,711 | 12,938 |
Commercial [Member] | Substandard [Member] | ||
Risk rated loans | 3,980 | 4,242 |
Consumer [Member] | ||
Risk rated loans | 3,015 | 20 |
Consumer [Member] | Pass [Member] | ||
Risk rated loans | $ 3,015 | $ 20 |
Loans (Details 4)
Loans (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Aging analysis of past due loans | ||
Total Past Due | $ 1,560 | |
Current Loans | $ 80,411 | 72,010 |
Nonaccrual Loans | 4,303 | 4,317 |
Total loans | 84,714 | 77,887 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging analysis of past due loans | ||
Total Past Due | 1,386 | 293 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging analysis of past due loans | ||
Total Past Due | 1,267 | |
Residential real estate [Member] | ||
Aging analysis of past due loans | ||
Total Past Due | 1,267 | |
Current Loans | 14,953 | 17,910 |
Nonaccrual Loans | 1,071 | 2,099 |
Total loans | 17,180 | 21,276 |
Residential real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging analysis of past due loans | ||
Total Past Due | 1,267 | |
Commercial [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 26,606 | 16,029 |
Nonaccrual Loans | 1,085 | 1,151 |
Total loans | 27,691 | 17,180 |
Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging analysis of past due loans | ||
Total Past Due | 1,386 | |
Commercial Real Estate [Member] | ||
Aging analysis of past due loans | ||
Total Past Due | 293 | |
Current Loans | 26,882 | 29,895 |
Nonaccrual Loans | 2,147 | 1,067 |
Total loans | 29,029 | 31,255 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging analysis of past due loans | ||
Total Past Due | 293 | |
Multi-family real estate [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 3,697 | 1,979 |
Total loans | 3,697 | 1,979 |
Land and construction [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 5,258 | 6,177 |
Total loans | 5,258 | 6,177 |
Consumer [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 3,015 | 20 |
Total loans | $ 3,015 | $ 20 |
Loans (Details 5)
Loans (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans with an allowance recorded: | ||
Related Allowance | $ 13 | |
Total recorded investment | 5,344 | $ 10,085 |
Total unpaid principle balance | 7,523 | 12,647 |
Residential real estate [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment , With no related allowance recorded | 1,071 | 4,838 |
Unpaid Principal Balance, With no related allowance recorded | 1,196 | 5,345 |
Loans with an allowance recorded: | ||
Total recorded investment | 1,071 | 4,838 |
Total unpaid principle balance | 1,196 | 5,345 |
Commercial Real Estate [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment , With no related allowance recorded | 2,147 | 4,096 |
Unpaid Principal Balance, With no related allowance recorded | 3,960 | 5,910 |
Loans with an allowance recorded: | ||
Total recorded investment | 2,147 | 4,096 |
Total unpaid principle balance | 3,960 | 5,910 |
Commercial [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment , With no related allowance recorded | 1,085 | 1,151 |
Unpaid Principal Balance, With no related allowance recorded | 1,326 | 1,392 |
Loans with an allowance recorded: | ||
Recorded Investment , With related allowance recorded | 1,041 | |
Unpaid Principal Balance, With related allowance recorded | 1,041 | |
Related Allowance | 13 | |
Total recorded investment | 2,126 | 1,151 |
Total unpaid principle balance | $ 2,367 | $ 1,392 |
Loans (Details 6)
Loans (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired Loans: | ||
Impaired loans - Average Recorded Investment | $ 9,433 | $ 11,531 |
Impaired loans - Interest Income Recognized | 250 | 674 |
Impaired loans - Interest Income Received | 492 | 587 |
Residential real estate [Member] | ||
Impaired Loans: | ||
Impaired loans - Average Recorded Investment | 4,473 | 5,929 |
Impaired loans - Interest Income Recognized | 175 | 421 |
Impaired loans - Interest Income Received | 236 | 317 |
Commercial Real Estate [Member] | ||
Impaired Loans: | ||
Impaired loans - Average Recorded Investment | 3,496 | 4,421 |
Impaired loans - Interest Income Recognized | 57 | 253 |
Impaired loans - Interest Income Received | 172 | 204 |
Commercial [Member] | ||
Impaired Loans: | ||
Impaired loans - Average Recorded Investment | 1,464 | 1,181 |
Impaired loans - Interest Income Recognized | 18 | |
Impaired loans - Interest Income Received | $ 84 | $ 66 |
Premises and Equipment (Details
Premises and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Rental Expense | $ 64,100 | $ 81,100 |
Premises and Equipment (Detai54
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Premises and equipment, gross | $ 4,533 | $ 4,718 |
Less Accumulated Depreciation and Amortization | (1,830) | (1,882) |
Premises and equipment, net | 2,703 | 2,836 |
Land | ||
Premises and equipment, gross | 1,171 | 1,171 |
Buildings and improvements | ||
Premises and equipment, gross | 2,053 | 2,053 |
Furniture, fixtures and equipment | ||
Premises and equipment, gross | 1,190 | 1,372 |
Leasehold improvements | ||
Premises and equipment, gross | $ 119 | $ 122 |
Premises and Equipment (Detai55
Premises and Equipment (Details 1) $ in Thousands | Dec. 31, 2015USD ($) |
Future minimum operating lease payments | |
2,015 | $ 60 |
2,016 | 55 |
Total | $ 115 |
Foreclosed Real Estate (Details
Foreclosed Real Estate (Details Narrative) $ in Thousands | Dec. 31, 2015USD ($) |
Foreclosed Real Estate Details Narrative | |
Provision for losses on foreclosed real estate | $ 260 |
Foreclosed Real Estate (Detai57
Foreclosed Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Foreclosed Real Estate Details | ||
Provision for losses on foreclosed real estate | $ 260 | $ 99 |
(Gain) Loss on sale of foreclosed real estate | (48) | (809) |
Operating expenses | 200 | 56 |
Foreclosed real estate expenses | $ 412 | $ (654) |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Time deposits greater than $100,000 | $ 32,200 | $ 18,300 |
Time deposits | 64,059 | $ 58,064 |
Minimum [Member] | ||
Time deposits | $ 100,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Maturity of Deposits | ||
2,016 | $ 49,684 | |
2,017 | 12,121 | |
2,018 | 1,462 | |
2,019 | 561 | |
2,020 | 231 | |
Total | $ 64,059 | $ 58,064 |
Federal Home Loan Bank Advanc60
Federal Home Loan Bank Advances and Junior Subordinated Debenture (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank Advances And Junior Subordinated Debenture Details Narrative | ||
Available for sale securities and lien on qualifying loans pledged as collateral to the Federal Home Loan Bank | $ 8,600 | $ 13,200 |
Junior subordinated debenture - face amount | $ 5,155 | |
Debt Instrument Interest Rate Stated | 6.40% | 6.40% |
Debt interest rate terms | Three-month LIBOR rate plus 2.45% | Three-month LIBOR rate plus 2.45% |
Basis spread on variable rate | 2.69% | 2.45% |
Deferred interest payments on debenture | $ 955 | $ 793 |
Federal Home Loan Bank Advanc61
Federal Home Loan Bank Advances and Junior Subordinated Debenture (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Maturities of Federal Home Loan Bank Advances | ||
Total | $ 20,000 | $ 22,740 |
Federal Home Loan Bank Advances Maturing in 2015 Tranche 1 | ||
Maturities of Federal Home Loan Bank Advances | ||
2,016 | $ 13,500 | 12,740 |
Average Interest Rate | ||
2,016 | 0.53% | |
Federal Home Loan Bank Advances Maturing in 2015 Tranche 2 | ||
Maturities of Federal Home Loan Bank Advances | ||
2,016 | $ 6,500 | $ 10,000 |
Average Interest Rate | ||
2,016 | 0.59% |
Financial Instruments (Details
Financial Instruments (Details Narrative) $ in Thousands | Dec. 31, 2015USD ($) |
Financial Instruments Details Narrative | |
Commitments to extend credit | $ 4,300 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Securities available for sale | $ 25,749 | $ 26,748 |
Accrued interest receivable | 462 | 426 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 10,365 | 12,074 |
Securities available for sale | 25,749 | 26,748 |
Loans | 82,573 | 75,829 |
Federal Home Loan Bank stock | 966 | 1,229 |
Accrued interest receivable | 462 | 426 |
Financial liabilities: | ||
Deposit liabilities | 97,571 | 91,603 |
Federal Home Loan Bank advances | 20,000 | 22,740 |
Junior subordinated debenture | 5,155 | 5,155 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 10,365 | 12,074 |
Securities available for sale | 25,749 | 26,748 |
Loans | 8,429 | 75,621 |
Federal Home Loan Bank stock | 966 | 1,229 |
Accrued interest receivable | 462 | 426 |
Financial liabilities: | ||
Deposit liabilities | 97,571 | 91,849 |
Federal Home Loan Bank advances | $ 20,000 | $ 22,744 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) $ in Thousands | Dec. 31, 2015USD ($) |
Penalties and interest accrued for IRS examination | $ 320 |
Federal | |
Net Operating Loss carryforwards | 10,700 |
Florida | |
Net Operating Loss carryforwards | $ 10,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||
Federal | $ (320) | |
Total Current | (320) | |
Deferred: | ||
Federal | (153) | $ 530 |
State | (26) | 91 |
Change in valuation allowance | 179 | $ (621) |
Income Tax Expense | $ (320) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Rate Reconciliation | ||
Income tax benefit at statutory rate, tax rate | 34.00% | 34.00% |
Increase (decrease) in tax rate resulting from: | ||
State income taxes, net of Federal benefit | 3.50% | 3.80% |
Other permanent differences | (4.00%) | |
Change in valuation allowance | (37.10%) | (37.80%) |
Uncertain tax position | 66.30% | |
Expense Reconciliation | ||
Income tax benefit at statutory rate | $ (164) | $ 546 |
Increase (decrease) in income taxes resulting from: | ||
State income taxes, net of Federal benefit | (17) | 75 |
Other permanent differences | 2 | |
Change in valuation allowance | 179 | $ (621) |
Uncertain tax position | (320) | |
Income Tax Expense | $ (320) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 4,005 | $ 3,917 |
Premises and equipment | 52 | 66 |
Impaired securities | 29 | |
Foreclosed property expenses | 849 | 764 |
Nonaccrual loan interest | 399 | 345 |
Unrealized loss on available for sale securities | 87 | |
Other | 82 | 79 |
Gross deferred tax assets | 5,474 | 5,200 |
Valuation allowance for deferred tax assets | 5,240 | 5,061 |
Net deferred tax assets | 234 | 139 |
Deferred tax liabilities: | ||
Allowance for loan losses | (114) | (114) |
Unrealized gain on available for sale securities | (50) | |
Loan costs | (37) | (25) |
Total deferred tax liabilities | (151) | (189) |
Net deferred tax liability | $ 83 | $ (50) |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 320 | $ 320 | |
Settlement due to exam closure | $ (320) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transactions Details | ||
Related party loans receivable | $ 240 | $ 546 |
Related party deposit liabilities | $ 8,560 | $ 7,528 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Shares available to be issued under the 2011 Plan | 20,412 | |
Options forfeitures | 1,444 | |
Options granted | 529,888 | |
Fair value of options granted | $ 242 | $ 239 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Actual | ||
Total Capital | $ 10,319 | $ 9,757 |
Total Capital (to risk-weighted assets) ratio | 11.40% | 10.67% |
Tier 1 Capital | $ 9,173 | $ 8,600 |
Tier 1 Capital (to risk-weighted assets) ratio | 10.14% | 9.40% |
Common Equity Tier 1 Capital | $ 9,173 | |
Common Equity Tier 1 Capital (to risk-weighted assets) | 10.14% | |
Tier 1 Capital | $ 9,173 | $ 8,600 |
Tier 1 Capital (to average assets) ratio | 7.59% | 6.95% |
For Capital Adequacy Purposes | ||
Minimum amount of capital for adequacy purposes | $ 7,240 | $ 7,320 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 5,430 | $ 3,660 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 4.00% |
Common equity Tier I capital to Risk-Weighted Assets | $ 4,073 | |
Common equity Tier I capital to Risk-Weighted Assets, ratio | 4.50% | |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 4,836 | $ 4,950 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum to be Well Capitalized | ||
Minimum Tier 1 Capital required to be well-capitalized | $ 9,050 | $ 9,145 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 7,240 | $ 5,490 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 8.00% | 6.00% |
Common equity Tier I capital to Risk-Weighted Assets | $ 5,883 | |
Common equity Tier I capital to Risk-Weighted Assets, ratio | 6.50% | |
Minimum Capital required to be well-capitalized | $ 6,045 | $ 6,190 |
Minimum Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Consent Order | ||
Minimum Capital required under consent order | $ 10,860 | $ 10,970 |
Minimum Capital required under consent order, ratio | 12.00% | 12.00% |
Minimum Tier 1 Capital required under consent order | $ 9,672 | $ 9,900 |
Minimum Tier 1 Capital required under consent order, ratio | 8.00% | 8.00% |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Foreclosed real estate, Fair Value | $ 4,029 | $ 4,880 |
Nonrecurring [Member] | ||
Cumulative Fair value losses | 2,180 | 4,018 |
Nonrecurring [Member] | Residential real estate [Member] | ||
Cumulative Fair value losses | 125 | 507 |
Nonrecurring [Member] | Commercial Real Estate [Member] | ||
Cumulative Fair value losses | 1,813 | 3,269 |
Nonrecurring [Member] | Commercial [Member] | ||
Cumulative Fair value losses | 242 | 242 |
Nonrecurring [Member] | Fair Value [Member] | Residential real estate [Member] | ||
Loans receivable, Fair Value | 423 | 1,387 |
Nonrecurring [Member] | Foreclosed Real Estate [Member] | ||
Cumulative Fair value losses | 1,403 | 1,143 |
Losses recorded in operations during the period | 260 | |
Nonrecurring [Member] | Fair Value [Member] | ||
Loans receivable, Fair Value | 2,517 | 5,567 |
Nonrecurring [Member] | Fair Value [Member] | Commercial Real Estate [Member] | ||
Loans receivable, Fair Value | 1,009 | 3,029 |
Nonrecurring [Member] | Fair Value [Member] | Commercial [Member] | ||
Loans receivable, Fair Value | 1,085 | 1,151 |
Nonrecurring [Member] | Fair Value [Member] | Foreclosed Real Estate [Member] | ||
Loans receivable, Fair Value | 4,029 | 4,880 |
Nonrecurring [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | ||
Loans receivable, Fair Value | 2,517 | 5,567 |
Nonrecurring [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | Residential real estate [Member] | ||
Loans receivable, Fair Value | 423 | 1,387 |
Nonrecurring [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | ||
Loans receivable, Fair Value | 1,009 | 3,029 |
Nonrecurring [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | ||
Loans receivable, Fair Value | 1,085 | 1,151 |
Nonrecurring [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | Foreclosed Real Estate [Member] | ||
Loans receivable, Fair Value | $ 4,029 | $ 4,880 |
Holding Company Financial Inf73
Holding Company Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||
Other assets | $ 631 | $ 508 | |
Total assets | 127,478 | 124,530 | |
Liabilities and Stockholders' Equity | |||
Other liabilities | 1,404 | 1,593 | |
Junior subordinated debenture | 5,155 | 5,155 | |
Stockholders' equity | 2,967 | 2,979 | $ (216) |
Total liabilities and stockholders' equity | 127,478 | 124,530 | |
Holding Company | |||
Assets | |||
Cash | 13 | 71 | $ 36 |
Investment in subsidiary | 9,036 | 8,683 | |
Other assets | 180 | 180 | |
Total assets | 9,229 | 8,934 | |
Liabilities and Stockholders' Equity | |||
Other liabilities | 1,107 | 800 | |
Junior subordinated debenture | 5,155 | 5,155 | |
Stockholders' equity | 2,967 | 2,979 | |
Total liabilities and stockholders' equity | $ 9,229 | $ 8,934 |
Holding Company Financial Inf74
Holding Company Financial Information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest expense | $ (884) | $ (911) |
Other expense | (450) | 57 |
Net (loss) earnings | (163) | 1,605 |
Holding Company | ||
Earnings of subsidiary | 532 | 2,229 |
Interest expense | (162) | (155) |
Other expense | (533) | (469) |
Net (loss) earnings | $ (163) | $ 1,605 |
Holding Company Financial Inf75
Holding Company Financial Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (163) | $ 1,605 |
Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | ||
Stock compensation | 242 | 239 |
Increase in other liabilities | (278) | (285) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock, net | 30 | 1,272 |
Proceeds from sale of preferred stock | 100 | |
Holding Company | ||
Cash flows from operating activities: | ||
Net earnings (loss) | (163) | 1,605 |
Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | ||
Stock compensation | 242 | 239 |
Equity in undistributed earnings of subsidiary | (532) | (2,229) |
Increase in other liabilities | 307 | 136 |
Net cash provided by (used in) operating activities | (146) | (249) |
Cash flows from investing activities: | ||
Investment in subsidiary | (42) | (988) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock, net | 30 | 1,272 |
Proceeds from sale of preferred stock | 100 | |
Net cash provided by financing activities | 130 | 1,272 |
Net (decrease) increase in cash | (58) | 35 |
Cash at beginning of the year | 71 | 36 |
Cash at end of the year | 13 | 71 |
Noncash transactions: | ||
Change in accumulated other comprehensive earnings of subsidiary, net change in unrealized (loss) gain on securities available for sale | $ (221) | $ 79 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) $ in Thousands | Jan. 11, 2016shares | Jan. 06, 2016USD ($) | Dec. 31, 2015shares | Dec. 31, 2014shares |
Common stock, shares authorized | shares | 50,000,000 | 50,000,000 | ||
Subsequent Event [Member] | ||||
Common stock, shares authorized | shares | 5,000,000 | |||
Reverse stock split ratio | 0.10 | |||
Recovery of previously charged-off amounts to the Allowance for Loan and Lease Losses | $ | $ 1,800 | |||
Allowance for Loan and Lease Losses | $ | $ 4,100 |