Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 28, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 2,968,481 | ||
Entity Common Stock, Shares Outstanding | 1,286,503 | ||
Trading Symbol | OPHC | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 11,233 | $ 17,563 |
Interest-bearing deposits with banks | 432 | 77 |
Total cash and cash equivalents | 11,665 | 17,640 |
Securities available for sale | 11,437 | 20,222 |
Loans, net of allowance for loan losses of $3,991 and $3,915 | 68,220 | 76,999 |
Federal Home Loan Bank stock | 979 | 1,113 |
Premises and equipment, net | 2,593 | 2,648 |
Accrued interest receivable | 316 | 380 |
Other assets | 656 | 701 |
Total assets | 95,866 | 119,703 |
Liabilities: | ||
Noninterest-bearing demand deposits | 12,632 | 7,209 |
Savings, NOW and money-market deposits | 22,045 | 22,153 |
Time deposits | 30,574 | 56,725 |
Total deposits | 65,251 | 86,087 |
Federal Home Loan Bank advances | 20,500 | 23,500 |
Junior subordinated debenture | 5,155 | 5,155 |
Advanced payment by borrowers for taxes and insurance | 7 | 221 |
Official checks | 39 | 36 |
Other liabilities | 2,369 | 1,623 |
Total liabilities | 93,321 | 116,622 |
Commitments and contingencies (Notes 1, 4, 7, 8, 13, 17) | ||
Stockholders' equity: | ||
Preferred stock, no par value; 6,000,000 shares authorized: Designated Series A, no par value, $25,000 liquidation value per share, 7 shares issued and outstanding in 2017 and 2016 | ||
Common stock, $.01 par value; 5,000,000 shares authorized, 1,120,947 shares issued and outstanding in 2017 and 1,103,447 shares issued and outstanding in 2016 | 11 | 11 |
Additional paid-in capital | 34,090 | 34,039 |
Accumulated deficit | (31,306) | (30,717) |
Accumulated other comprehensive loss | (250) | (252) |
Total stockholders' equity | 2,545 | 3,081 |
Total liabilities and stockholders' equity | $ 95,866 | $ 119,703 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 3,991 | $ 3,915 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, liquidation value per share | $ 25,000 | $ 25,000 |
Preferred stock, shares issued | 7 | 7 |
Preferred stock, shares outstanding | 7 | 7 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 1,120,947 | 1,103,447 |
Common stock, shares outstanding | 1,120,947 | 1,103,447 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | ||
Loans | $ 4,126 | $ 4,200 |
Securities | 366 | 459 |
Other | 224 | 105 |
Total interest income | 4,716 | 4,764 |
Interest expense: | ||
Deposits | 674 | 728 |
Borrowings | 522 | 351 |
Total interest expense | 1,196 | 1,079 |
Net interest income | 3,520 | 3,685 |
Provision for loan losses | ||
Net interest income after provision for loan losses | 3,520 | 3,685 |
Noninterest income (loss): | ||
Service charges and fees | 26 | 24 |
Other | 15 | 18 |
Gain (loss) on sale of securities available for sale | 11 | (186) |
Total noninterest income (loss) | 52 | (144) |
Noninterest expenses: | ||
Salaries and employee benefits | 1,770 | 1,774 |
Occupancy and equipment | 415 | 495 |
Data processing | 342 | 333 |
Professional fees | 784 | 659 |
Insurance | 95 | 103 |
Foreclosed real estate expenses | (123) | |
Regulatory assessments | 202 | 253 |
Other | 553 | 443 |
Total noninterest expenses | 4,161 | 3,937 |
Loss before income tax benefit | (589) | (396) |
Income tax benefit | ||
Net loss | $ (589) | $ (396) |
Net loss per share: | ||
Basic | $ (0.53) | $ (0.38) |
Diluted | $ (0.53) | $ (0.38) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Net loss | $ (589) | $ (396) |
Unrealized loss on securities available for sale: | ||
Unrealized gain (loss) arising during the year | 82 | (366) |
Reclassification adjustment for realized (gain) loss on sale of securities available for sale | (11) | 186 |
Net change in unrealized holding loss | 71 | (180) |
Deferred income taxes (benefit) on above change | 69 | (66) |
Total other comprehensive income (loss) | 2 | (114) |
Comprehensive loss | $ (587) | $ (510) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance beginning at Dec. 31, 2015 | $ 96 | $ 33,330 | $ (30,321) | $ (138) | $ 2,967 | |
Balance beginning, shares at Dec. 31, 2015 | 4 | 9,628,863 | ||||
Proceeds from sale of preferred stock | 75 | 75 | ||||
Proceeds from sale of preferred stock, shares | 3 | |||||
Proceeds from sale of common stock | $ 1 | 374 | 375 | |||
Proceeds from sale of common stock, shares | 92,980 | |||||
Common stock issued as compensation to directors | $ 1 | 245 | 246 | |||
Common stock issued as compensation to directors, shares | 57,476 | |||||
Net change in unrealized gain (loss) on securities available for sale, net of income taxes | (114) | (114) | ||||
Reverse common stock split (1-for-10) | $ (87) | 87 | ||||
Reverse common stock split (1-for-10), shares | (8,665,694) | |||||
Common stock issued for services | 128 | 128 | ||||
Common stock issued for services, shares | 36,118 | |||||
Reversal of common stock issued as compensation to directors (See Note 15) | (200) | (200) | ||||
Reversal of common stock issued as compensation to directors (See Note 15), shares | (46,296) | |||||
Net loss | (396) | (396) | ||||
Balance ending at Dec. 31, 2016 | $ 11 | 34,039 | (30,717) | (252) | 3,081 | |
Balance ending, shares at Dec. 31, 2016 | 7 | 1,103,447 | ||||
Proceeds from sale of common stock | 30 | 30 | ||||
Proceeds from sale of common stock, shares | 10,000 | |||||
Net change in unrealized gain (loss) on securities available for sale, net of income taxes | 2 | 2 | ||||
Common stock issued for services | 21 | 21 | ||||
Common stock issued for services, shares | 7,500 | |||||
Net loss | (589) | (589) | ||||
Balance ending at Dec. 31, 2017 | $ 11 | $ 34,090 | $ (31,306) | $ (250) | $ 2,545 | |
Balance ending, shares at Dec. 31, 2017 | 7 | 1,120,947 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Reverse common stock split | (1-for-10) | (1-for-10) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (589) | $ (396) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 149 | 156 |
Common stock issued as compensation to directors | 46 | |
Common stock issued as compensation for services | 21 | 128 |
Net amortization of fees, premiums and discounts | 211 | 324 |
(Gain) loss from sale of securities available for sale | (11) | 186 |
Decrease in accrued interest receivable | 64 | 82 |
Increase in other assets | (24) | (4) |
Gain on sale of foreclosed real estate | (174) | |
Increase in official checks and other liabilities | 749 | 203 |
Net cash provided by operating activities | 570 | 551 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (27,738) | |
Principal repayments and calls of securities available for sale | 2,189 | 4,326 |
Proceeds from sale of securities available for sale | 6,448 | 28,409 |
Net decrease in loans | 8,798 | 5,414 |
Purchase of premises and equipment, net | (94) | (101) |
Proceeds from sale of foreclosed real estate, net | 4,203 | |
Redemption (purchase) of Federal Home Loan Bank stock | 134 | (147) |
Net cash provided by investing activities | 17,475 | 14,366 |
Cash flows from financing activities: | ||
Net decrease in deposits | (20,836) | (11,562) |
(Repayments) purchase of Federal Home Loan Bank advances, net | (3,000) | 3,500 |
Net decrease in advanced payment by borrowers for taxes and insurance | (214) | (30) |
Proceeds from sale of common stock | 30 | 375 |
Proceeds from sale of preferred stock | 75 | |
Net cash used in financing activities | (24,020) | (7,642) |
(Decrease) increase in cash and cash equivalents | (5,975) | 7,275 |
Cash and cash equivalents at beginning of the year | 17,640 | 10,365 |
Cash and cash equivalents at end of the year | 11,665 | 17,640 |
Cash paid during the year for: | ||
Interest | 980 | 874 |
Income taxes | ||
Noncash transactions: | ||
Change in accumulated other comprehensive loss, net change in unrealized loss on securities available for sale, net of income taxes | $ 2 | $ (114) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Organization. Basis of Presentation. Going Concern Status Management’s plans with regard to this matter are as follows: A Director of the Company has offered to purchase the Debenture and this offer has been approved by certain equity owners of the Trust that holds the Debenture. The Director has offered to enter into a forbearance agreement with the Company with respect to payments due under the Debenture upon consummation of the Director’s purchase of the Debenture. In March 2016, the Trustee received a direction from certain equity owners of the Trust that holds the Debenture to sell the Debenture to a Director of the Company. Based upon the receipt of conflicting directions from other debt holders of the Trust, in August 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. The case was subsequently transferred to United States District Court for the Southern District of New York, where the case is currently pending. The Company continues to pursue mechanisms for paying the accrued interest, such as raising additional capital. 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. At December 31, 2017, there were no required cash reserves. Total required cash reserves at December 31, 2016 were $70,000. 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. 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 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. On December 22, 2017, the “Tax Cuts and Jobs Act of 2017,” or the Tax Act, was signed into law. The Tax Act, among other things, reduced the maximum statutory federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of enactment of the Tax Act, the Bank revalued its net deferred tax asset. This revaluation of the deferred tax asset had no effect on income tax provision due to valuation allowance on the deferred tax asset. Advertising. Stock Compensation Plan. Reverse Common Stock Split. Loss Per Share. Year Ended December 31, 2017 2016 Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share 1,104,995 1,041,213 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 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. 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) In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326) In March 2017, FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedge Activities In February 2018, the FASB issued ASU No. 2018-02), Income Statement Reporting Comprehensive Income (Topic 220) Reclassification. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | (2) Securities. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2017: Securities Available for Sale: Collateralized mortgage obligations $ 8,806 $ — $ (340 ) $ 8,466 SBA Pool Securities 2,965 10 (4 ) 2,971 Total $ 11,771 $ 10 $ (344 ) $ 11,437 At December 31, 2016: Securities Available for Sale: Collateralized mortgage obligations $ 10,157 $ — $ (405 ) $ 9,752 SBA Pool Securities 10,470 — — 10,470 Total $ 20,627 $ — $ (405 ) $ 20,222 The following summarizes sales of securities (in thousands): Year Ended December 31, 2017 2016 Proceeds from sales of securities $ 6,448 $ 28,409 Gross gains from sale of securities 11 48 Gross losses from sale of securities — (234 ) Net gain (loss) from sales of securities $ 11 $ (186 ) 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, 2017 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale: Collateralized mortgage obligations 340 8,466 — — SBA Pools $ 3 $ 539 $ 1 $ 540 343 9,005 $ 1 $ 540 At December 31, 2016 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale: Collateralized mortgage obligations $ (46 ) $ 864 $ (359 ) $ 8,888 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. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2017 and 2016, the unrealized losses on eight and six 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, 2017: Collateralized mortgage obligations $ 8,466 $ — $ 8,466 $ — SBA Pool Securities 2,971 — 2,971 — $ 11,437 $ — $ 11,437 $ — At December 31, 2016: Collateralized mortgage obligations $ 9,752 $ — $ 9,752 $ — SBA Pool Securities 10,470 — 10,470 — $ 20,222 $ — $ 20,222 $ — During the years ended December 31, 2017 and 2016, no securities were transferred in or out of Level 1, Level 2 or Level 3. As of December 31, 2017, the Company had pledged Securities with market value of $590,000 as collateral for the Federal Reserve Bank Discount Window. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | (3) Loans. At December 31, At December 31, 2017 2016 Residential real estate $ 26,054 $ 27,334 Multi-family real estate 7,356 5,829 Commercial real estate 32,152 29,264 Land and construction 1,051 5,681 Commercial 4,522 10,514 Consumer 794 1,829 Total loans 71,929 80,451 Add (deduct): Net deferred loan fees, costs and premiums 282 463 Allowance for loan losses (3,991 ) (3,915 ) Loans, net $ 68,220 $ 76,999 An analysis of the change in the allowance for loan losses for the years ended December 31, 2017 and 2016 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Year Ended December 31, 2017: Beginning balance $ 310 $ 58 $ 787 $ 120 $ 188 $ 165 $ 2,287 $ 3,915 Provision (credit) for loan losses 229 1 (28 ) (122 ) (133 ) (29 ) 82 — Charge-offs — — — — — (67 ) — (67 ) Recoveries 102 — — 24 — 17 143 Ending balance $ 641 $ 59 $ 759 $ 22 $ 55 $ 86 $ 2,369 $ 3,991 Year Ended December 31, 2016: Beginning balance $ 116 $ 26 $ 1,085 $ 77 $ 120 $ 151 $ 720 $ 2,295 Provision (credit) for loan losses 194 32 (2,069 ) 19 68 189 1,567 — Charge-offs — — (264 ) — — (205 ) — (469 ) Recoveries — — 2,035 24 — 30 — 2,089 Ending balance $ 310 $ 58 $ 787 $ 120 $ 188 $ 165 $ 2,287 $ 3,915 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, 2017 and 2016 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At December 31, 2017: Individually evaluated for impairment: Recorded investment $ 1,172 $ — $ 975 $ — $ — $ — $ — $ 2,147 Balance in allowance for loan losses $ 330 $ — $ 83 $ — $ — $ — $ — $ 413 Collectively evaluated for impairment: Recorded investment $ 24,882 $ 7,356 $ 31,177 $ 1,051 $ 4,522 $ 794 $ — $ 69,782 Balance in allowance for loan losses $ 311 $ 59 $ 676 $ 22 $ 55 $ 86 $ 2,369 $ 3,578 At December 31, 2016: Individually evaluated for impairment: Recorded investment $ 375 $ — $ 1,004 $ — $ — $ — $ — $ 1,379 Balance in allowance for loan losses $ — $ — $ 104 $ — $ — $ — $ — $ 104 Collectively evaluated for impairment: Recorded investment $ 26,959 $ 5,829 $ 28,260 $ 5,681 $ 10,514 $ 1,829 $ — $ 79,072 Balance in allowance for loan losses $ 310 $ 58 $ 683 $ 120 $ 188 $ 165 $ 2,287 $ 3,811 Residential Real Estate, Multi-Family Real Estate, Commercial Real Estate, Land and Construction Commercial Consumer The following summarizes the loan credit quality (in thousands): Pass OLEM (Other Loans Especially Mentioned) Sub- standard Doubtful Loss Total At December 31, 2017: Residential real estate $ 22,315 $ 2,494 $ 1,245 $ — $ — $ 26,054 Multi-family real estate 7,356 — — — — 7,356 Commercial real estate 24,704 6,473 975 — — 32,152 Land and construction 1,051 — — — — 1,051 Commercial 2,304 2,218 — — — 4,522 Consumer 794 — — — — 794 Total $ 58,524 $ 11,185 $ 2,220 $ — $ — $ 71,929 At December 31, 2016: Residential real estate $ 25,326 $ 1,633 $ 375 $ — $ — $ 27,334 Multi-family real estate 5,829 — — — — 5,829 Commercial real estate 25,979 1,174 2,111 — — 29,264 Land and construction 5,636 45 — — — 5,681 Commercial 8,768 — 1,746 — — 10,514 Consumer 1,823 — 6 — — 1,829 Total $ 73,361 $ 2,852 $ 4,238 $ — $ — $ 80,451 Internally assigned loan grades are defined as follows: Pass – a Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. These are loans that conform in all aspects to bank policy and regulatory requirements, and no repayment risk has been identified. OLEM (Other Loans Especially Mentioned) – an Other Loan Especially Mentioned has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Substandard – a Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Included in this category are loans that are current on their payments, but the Bank is unable to document the source of repayment. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – a loan classified as Doubtful has all the weaknesses inherent in one classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company charges off any loan classified as Doubtful. Loss – a loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company fully charges off any loan classified as Loss. At December 31, 2017, no loans were past due, more than thirty days and no loans were on nonaccrual. Age analysis of past-due loans at December 31, 2016 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, 2016: Residential real estate $ — $ — $ — $ — $ 26,959 $ 375 $ 27,334 Multi-family real estate — — — — 5,829 — 5,829 Commercial real estate — — — — 29,264 — 29,264 Land and construction — — — — 5,681 — 5,681 Commercial — — — — 10,514 — 10,514 Consumer — 6 — 6 1,823 — 1,829 Total $ — $ 6 $ — $ 6 $ 80,070 $ 375 $ 80,451 The following summarizes the amount of impaired loans (in thousands): At December 31, 2017 At December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 194 $ 217 $ — $ 375 $ 501 $ — Commercial real estate 231 231 — — — — With related allowance recorded: Residential real estate 978 978 330 — — — Commercial real estate 744 744 83 1,004 1,004 104 Total Residential real estate $ 1,172 $ 1,195 $ 330 $ 375 $ 501 $ — Commercial real estate $ 975 $ 975 $ 83 $ 1,004 $ 1,004 $ 104 Total $ 2,147 $ 2,170 $ 413 $ 1,379 $ 1,505 $ 104 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, 2017 2016 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ 650 $ 226 $ 121 $ 886 $ 48 $ 76 Commercial real estate $ 900 $ 52 $ 52 $ 2,071 $ 76 $ 106 Total $ 1,550 $ 278 $ 173 $ 2,957 $ 124 $ 182 There were no loans determined to be troubled debt restructurings during the years ended December 31, 2017 and 2016. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | (4) Premises and Equipment A summary of premises and equipment follows (in thousands): At December 31, 2017 2016 Land $ 1,171 $ 1,171 Buildings and improvements 2,105 2,065 Furniture, fixtures and equipment 1,308 1,268 Leasehold improvements 131 119 Total, at cost 4,715 4,623 Less accumulated depreciation and amortization (2,122 ) (1,975 ) Premises and equipment, net $ 2,593 $ 2,648 The Company currently leases one branch facility under an 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, 2017 and 2016 was $73,000 and $68,000, respectively. At December 31, 2017, the future minimum lease payments are approximately as follows (in thousands): Year Ending December 31, Amount 2018 $ 90 2019 92 2020 95 2021 98 2022 93 Total $ 468 |
Foreclosed Real Estate
Foreclosed Real Estate | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Foreclosed Real Estate | (5) Foreclosed Real Estate There was no foreclosed real estate outstanding throughout the year ended December 31, 2017 or as of December 31, 2017. (Income) expenses applicable to foreclosed real estate during the year ended December 31, 2016 are as follows (in thousands): Provision for losses on foreclosed real estate $ — Gain on sale of foreclosed real estate (174 ) Operating expenses 51 $ (123 ) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | (6) Deposits The aggregate amount of time deposits with a minimum denomination of $100,000 was approximately $19.3 and $34.8 million at December 31, 2017 and 2016, respectively. A schedule of maturities of time deposits at December 31, 2017 follows (in thousands): Year Ending December 31, Amount 2018 $ 24,507 2019 4,524 2020 378 2021 99 2022 1,066 $ 30,574 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Junior Subordinated Debenture | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
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 2017 2016 2017 0.80 % $ — $ 3,000 2017 0.49 — 15,500 2018 1.53 % 5,000 — 2018 1.60 10,500 — 2021 1.68 5,000 5,000 $ 20,500 $ 23,500 At December 31, 2017, all FHLB advances had fixed interest rates. At December 31, 2017 and 2016, the FHLB advances were collateralized by a blanket lien on loans totaling $40.1 and $22.0 million, respectively. The blanket lien was on certain qualifying residential one-to-four family mortgage loans, commercial and multi-family real estate loans and second mortgage loans. Junior Subordinated Debenture A Director of the Company has offered to purchase the Debenture and this offer has been approved by certain equity owners of the Trust that holds the Debenture. The Director has also offered to enter into a forbearance agreement with the Company with respect to payments due under the Debenture upon consummation of the Director’s purchase of the Debenture. In March 2016, the Trustee received a direction from certain debt holders of the Trust that holds the Debenture to sell the Debenture to a Director of the Company. Based upon the receipt of conflicting directions from other equity owners of the Trust, in August 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. The case was subsequently transferred to United States District Court for the Southern District of New York, where the case is currently pending. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | (8) Financial Instruments The estimated fair values of the Company’s financial instruments were as follows (in thousands): At December 31, 2017 At December 31, 2016 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 11,665 $ 11,665 1 $ 17,640 $ 17,640 1 Securities available for sale 11,437 11,437 2 20,222 20,222 2 Loans 68,220 68,079 3 76,999 76,829 3 Federal Home Loan Bank stock 979 979 3 1,113 1,113 3 Accrued interest receivable 316 316 3 380 380 3 Financial liabilities: Deposit liabilities 65,251 65,475 3 86,087 86,442 3 Federal Home Loan Bank advances 20,500 20,394 3 23,500 23,500 3 Junior subordinated debenture 5,155 N/A (1) 3 5,155 N/A (1) 3 Off-balance sheet financial instruments __ __ 3 — — 3 (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, unused lines of credit, and standby letters of 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. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit to customers is essentially the same as that involved in extending loan facilities to customers. The Bank generally holds collateral supporting those commitments. Standby letters of credit generally have expiration dates within one year. Commitments to extend credit, unused lines of credit, and standby letters of credit typically result in loans with a market interest rate when funded. A summary of the contractual amounts of the Company’s financial instruments with off-balance-sheet risk at December 31, 2017 follows (in thousands): Commitments to extend credit $ 791 Unused lines of credit $ 2,031 Standby letters of credit $ - |
Credit Risk
Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
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 borrowers’ 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes Income tax benefit consisted of the following (in thousands): Year Ended December 31, 2017 2016 Current: Federal $ — $ — State — — Total Current — — Deferred: Federal 1,633 (134 ) State (32 ) (19 ) Change in Valuation Allowance (1,601 ) 153 Total Deferred — — Total $ — $ — 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, 2017 2016 Amount % of Pretax Loss Amount % of Pretax Loss Income tax benefit at statutory rate $ (200 ) 34.0 % $ (135 ) 34.0 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit (21 ) 3.6 % (13 ) 3.3 % Other permanent differences — — (5 ) 1.3 % Reduction in Federal income-tax rate 1822 (309.3 %) — — Change in valuation allowance (1,601 ) 271.7 % 153 (38.6 %) $ — — $ — — 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). At December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 3,547 $ 5,125 Premises and equipment 66 78 Accrued expenses 104 — Nonaccrual loan interest 122 287 Unrealized loss on available for sale securities 85 153 Other 56 56 Gross deferred tax assets 3,980 5,699 Less: Valuation allowance 3,792 5,393 Net deferred tax assets 188 306 Deferred tax liabilities: Allowance for loan losses (77 ) (114 ) Loan costs (26 ) (39 ) Total deferred tax liabilities (103 ) (153 ) Net deferred tax asset $ 85 $ 153 During the years ended December 31, 2017 and 2016, 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, 2017, the Company had net operating loss carryforwards of approximately $14.0 million for Federal tax purposes and $13.9 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 2014. 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
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 no loans to related parties at December 31, 2017 or 2016. During 2017, the Company incurred approximately $54,000 in legal fees related to a law firm owned by a director. At December 31, 2017 and 2016, related parties had approximately $229,000 and $635,000, respectively, on deposit with the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
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”). In May 2016, the Company increased the total number of shares available to be awarded from 105,000 shares (adjusted for the one-for-ten reverse stock split) to 210,000 shares. Stock 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. Stock options must be exercised within ten years of the date of grant. As of December 31, 2017, only common stock has been issued as compensation to directors for services rendered under this plan. No shares were issued during year ended December 31, 2017. During the year ended December 31, 2016, 57,476 shares of common stock were issued. Pursuant to 2011 Plan (amended), during 2017, the Company accrued stock compensation cost of 2,821 shares at $3.14 per share related to first quarter director’s fees. These 2,821 shares were issued during the first quarter of 2018. As of April 1, 2017, the Company discontinued the issuance of common stock as a method of payment of director’s fees. Additionally, as of December 31, 2017, 105,819 shares were due to be issued as compensation to a director. The Company accrued $200,000 during each of the years ended December 31, 2017 and 2016, for these shares. A total of $214,000 and $246,000 of compensation was recorded during the 2017 and 2016 periods. Subsequently in 2018, $200,000 was accrued for 36,102 shares in additional compensation to the director. All shares due to this director, totaling 141,921, were issued during the first quarter of 2018. At December 31, 2017, a total of 37,220 (adjusted for one-for-ten reverse stock split) shares remain available for grant. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | (13) Regulatory Matters 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. Beginning on January 1, 2016, the Bank became subject to the capital conservation buffer rules which places limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers. In order to avoid these limitations, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. As of December 31, 2017 and 2016, the Bank’s capital conservation buffer exceeds the minimum requirements of 1.250% and 0.625%, respectively. The required conservation buffer of 2.50% is to be phased in at 0.625% on each January 1st over the next two years. As of December 31, 2017 and 2016, the Bank was subject to Consent Orders 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): The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at December 31, 2017 and 2016 (dollars in thousands): Actual For Capital Adequacy Purposes Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Requirements of Consent Order Amount % Amount % Amount % Amount % As of December 31, 2017: Total Capital to Risk-Weighted Assets $ 10,484 15.08 % $ 5,561 8.00 % $ 6,951 10.00 % $ 8,341 12.00 % Tier I Capital to Risk-Weighted Assets 9,577 13.78 4,170 6.00 5,561 8.00 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,577 13.78 3,128 4.50 4,518 6.50 N/A N/A Tier I Capital to Total Assets 9,577 8.89 4,307 4.00 5,383 5.00 8,614 8.00 As of December 31, 2016: Total Capital to Risk-Weighted Assets $ 10,662 12.79 % $ 6,609 8.00 % $ 8,261 10.00 % $ 9,913 12.0 % Tier I Capital to Risk-Weighted Assets 9,498 11.50 4,957 6.00 6,609 8.00 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,498 11.50 3,718 4.50 5,370 6.50 N/A N/A Tier I Capital to Total Assets 9,498 8.06 4,714 4.0 5,893 5.0 9,428 8.0 Regulatory Enforcement Actions Bank Consent Order The Consent Order continues the requirement for the Bank to maintain a Tier 1 leverage ratio of at least 8% and a total risk-based capital ratio of 12% beginning 90 days from the issuance of the Consent Order. At December 31, 2017, the Bank had a Tier 1 leverage ratio of 8.89%, and a total risk-based capital ratio of 15.08%. The Consent Order 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 is required to eliminate from its books, by charge-off or collection, all assets or portions of assets classified “Loss” and 50 percent of those assets or portions of assets classified “Doubtful” in the most recent examination report that have not been previously collected or charged-off. ● The Bank is required to submit a revised plan to reduce the remaining assets classified “Doubtful” and “Substandard” in the current or any future regulatory examination report. ● The Bank may 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 may 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 Board is required to 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 is required to prepare and submit to the Supervisory Authorities an acceptable written business/strategic plan covering the overall operation of the Bank. ● The Bank is required to develop and submit to the Supervisory Authorities a written plan and a comprehensive budget for all categories of income and expense for calendar year 2017 and subsequent years. ● The Bank is required to implement a written plan to improve liquidity, contingency funding, interest rate risk and asset liability management. ● The Bank is required to 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 is required to revise and implement its policy for the operation of the Bank in such a manner as to provide adequate internal routines and controls within the Bank consistent with safe and sound banking practices. ● The Bank may not accept, renew, or rollover any brokered deposit. ● The Bank may 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 is required to 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 is required to develop, adopt, and implement a plan (“Compliance Plan”) for administration of a program reasonably designed to ensure and maintain compliance with the law and regulations related to the Bank Secrecy Act and related anti-money laundering regulations. The Compliance Plan must be consistent with the guidance for BSA/AML Risk Assessment set forth in the Federal Financial Institutions Examination Council’s Bank Secrecy Act/Anti-Money Laundering Examination Manual. ● The Bank is required to 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 required to develop a revised system of internal controls designed to ensure full compliance with the BSA rules and regulations (“BSA Internal Controls”) taking into account its size and risk profile and addressing the deficiencies and recommendations contained in the most recent examination report. ● The Bank is required to assess its BSA staffing needs to ensure adequate qualified personnel are in place at all times. ● The Bank is required to contract with an external independent testing firm that specializes in the BSA, AML, and OFAC rules and regulations for a review. The Bank is required to also engage an independent qualified firm, acceptable to the Supervisory Authorities, to conduct a review of all high-risk accounts and all high-risk transaction activity for the period beginning February 3, 2014, through the date of the 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. Management believes that the Bank has made substantial progress in improving its financial condition through a significant reduction in non-performing assets and the receipt of capital increases from investors since the 2010 consent order. The Bank is also seeking to eliminate the other issues raised by the FDIC and the OFR, although the Bank has been hampered by difficulties in raising capital due to the default under the Debenture and the limits placed on the Company and the Bank under the prior consent order and the Written Agreement. Management intends to continue its efforts to meet the conditions of the Consent Order and the Written Agreement. Company Written Agreement with Reserve Bank |
Loan Loss Recovery
Loan Loss Recovery | 12 Months Ended |
Dec. 31, 2017 | |
Loan Loss Recovery | |
Loan Loss Recovery | (14) Loan Loss Recovery On January 6, 2016, the Bank completed a sale of a judgement on a defaulted credit that resulted in a $1.8 million recovery of previously charged-off amounts to the Allowance for Loan and Lease Losses (“ALLL”). This increases the balance of the ALLL to approximately $3.9 million at December 31, 2017. On February 12, 2016, and amended May 6, 2016, pursuant to the terms and requirements of the Consent Order, Management submitted a Second written request to the FDIC for a partial reversal of the ALLL. As of this date, no response from the FDIC has been received and management does not expect a response until the next safety and soundness examination which is expected to be performed in first and second quarters of 2018. |
Reclassification
Reclassification | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification | (15) Reclassification During the quarter ended March 31, 2016, the Company agreed to issue 46,296 shares to the Bank’s Chairman as compensation. The Company recorded compensation expense of $200,000 based on the fair market value of the shares at that time, and reflected the issuance of the shares as an increase in stockholders’ equity. The Bank’s Chairman has not yet taken delivery of the shares. As a result, during the quarter ended September 30, 2016, the Company determined to reclassify the transaction as a liability of the Company (rather than an increase in stockholders’ equity) until the issuance of the shares. The reclassification had no effect on the Company’s net loss for the year ended December 31, 2016. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2017 | |
Dividends [Abstract] | |
Dividends | (16) 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 Bank’s net earnings of the current year combined with the Bank’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, 2017, the Bank and Holding Company could not pay cash dividends (See Note 13). |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | (17) 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 Company’s consolidated financial statements. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Plans | (18) 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 years ended December 31, 2017 or 2016. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (19) 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): At December 31, 2017 Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations For the Year Ended December 31, 2017 Residential real estate $ 648 $ — $ — $ 648 $ 330 $ — At December 31, 2016 Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations For the Year Ended December 31, 2016 Residential real estate $ 375 $ — $ — $ 375 $ 126 $ — |
Holding Company Financial Infor
Holding Company Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Holding Company Financial Information | (20) Holding Company Financial Information The Holding Company’s unconsolidated financial information as of December 31, 2017 and 2016 and for the years then ended follows (in thousands): Condensed Balance Sheets At December 31, 2017 2016 Assets Cash $ 51 $ 164 Investment in subsidiary 9,328 9,245 Other assets 199 180 Total assets $ 9,578 $ 9,589 Liabilities and Stockholders’ Equity Other liabilities $ 1,878 $ 1,353 Junior subordinated debenture 5,155 5,155 Stockholders’ equity 2,545 3,081 Total liabilities and stockholders’ equity $ 9,578 $ 9,589 Condensed Statements of Operations Year Ended December 31, 2017 2016 Earnings of subsidiary $ 79 $ 302 Interest expense (227 ) (193 ) Other expense (441 ) (505 ) Net loss $ (589 ) $ (396 ) Condensed Statements of Cash Flows Year Ended December 31, 2017 2016 Cash flows from operating activities: Net loss $ (589 ) $ (396 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock compensation to directors — 46 Stock compensation for services 21 128 Equity in undistributed earnings of subsidiary (79 ) (302 ) Increase in other liabilities 525 246 Increase in other assets (19 ) — Net cash used in operating activities (141 ) (278 ) Cash flow from investing activities- Investment in subsidiary (2 ) (21 ) Cash flow from financing activities: Proceeds from sale of common stock, net 30 375 Proceeds from sale of preferred stock — 75 Net cash provided by financing activities 30 450 Net (decrease) increase in cash (113 ) 151 Cash at beginning of the year 164 13 Cash at end of year $ 51 $ 164 Noncash transaction- Change in accumulated other comprehensive loss of subsidiary, net change in unrealized loss on securities available for sale, net of taxes $ 2 $ (114 ) |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Preferred Stock | (21) Preferred Stock The company issued 7 shares of Series A Preferred Stock at $25,000 per share. Each share of the Series A Preferred Stock has no par value and is non-convertible to common stock. The Preferred Stock has a rate of 10% per annum. These dividends will be paid annually in arrears on December 31 of each year. Notwithstanding the foregoing, dividends will not be declared, paid or set aside for payment to the extent such act would cause the Company to fail to comply with laws and regulations. These dividends will be cumulative. A liquidation value of $25,000 is assigned to each share. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization | Organization. |
Basis of Presentation | Basis of Presentation. |
Going Concern Status | Going Concern Status Management’s plans with regard to this matter are as follows: A Director of the Company has offered to purchase the Debenture and this offer has been approved by certain equity owners of the Trust that holds the Debenture. The Director has offered to enter into a forbearance agreement with the Company with respect to payments due under the Debenture upon consummation of the Director’s purchase of the Debenture. In March 2016, the Trustee received a direction from certain equity owners of the Trust that holds the Debenture to sell the Debenture to a Director of the Company. Based upon the receipt of conflicting directions from other debt holders of the Trust, in August 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. The case was subsequently transferred to United States District Court for the Southern District of New York, where the case is currently pending. The Company continues to pursue mechanisms for paying the accrued interest, such as raising additional capital. |
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. At December 31, 2017, there were no required cash reserves. Total required cash reserves at December 31, 2016 were $70,000. |
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 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. |
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 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 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. On December 22, 2017, the “Tax Cuts and Jobs Act of 2017,” or the Tax Act, was signed into law. The Tax Act, among other things, reduced the maximum statutory federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of enactment of the Tax Act, the Bank revalued its net deferred tax asset. This revaluation of the deferred tax asset had no effect on income tax provision due to valuation allowance on the deferred tax asset. |
Advertising | Advertising. |
Stock Compensation Plan | Stock Compensation Plan. |
Reverse Common Stock Split | Reverse Common Stock Split. |
Loss Per Share | Loss Per Share. Year Ended December 31, 2017 2016 Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share 1,104,995 1,041,213 |
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 |
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 Loss | Comprehensive Loss. |
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) In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326) In March 2017, FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedge Activities In February 2018, the FASB issued ASU No. 2018-02), Income Statement Reporting Comprehensive Income (Topic 220) |
Reclassification | Reclassification. |
Summary of Significant Account
Summary of Significant Account Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Common Shares Outstanding | Loss per common share has been computed based on the following (weighted-average number of common shares outstanding have been adjusted for the reverse stock split discussed above): Year Ended December 31, 2017 2016 Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share 1,104,995 1,041,213 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Values of Securities | 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, 2017: Securities Available for Sale: Collateralized mortgage obligations $ 8,806 $ — $ (340 ) $ 8,466 SBA Pool Securities 2,965 10 (4 ) 2,971 Total $ 11,771 $ 10 $ (344 ) $ 11,437 At December 31, 2016: Securities Available for Sale: Collateralized mortgage obligations $ 10,157 $ — $ (405 ) $ 9,752 SBA Pool Securities 10,470 — — 10,470 Total $ 20,627 $ — $ (405 ) $ 20,222 |
Schedule of Sales of Securities | The following summarizes sales of securities (in thousands): Year Ended December 31, 2017 2016 Proceeds from sales of securities $ 6,448 $ 28,409 Gross gains from sale of securities 11 48 Gross losses from sale of securities — (234 ) Net gain (loss) from sales of securities $ 11 $ (186 ) |
Schedule of Securities with Gross Unrealized Losses, by Investment Category | 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, 2017 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale: Collateralized mortgage obligations 340 8,466 — — SBA Pools $ 3 $ 539 $ 1 $ 540 343 9,005 $ 1 $ 540 At December 31, 2016 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale: Collateralized mortgage obligations $ (46 ) $ 864 $ (359 ) $ 8,888 |
Schedule of Available-for-Sale Securities Measured at Fair Value on 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, 2017: Collateralized mortgage obligations $ 8,466 $ — $ 8,466 $ — SBA Pool Securities 2,971 — 2,971 — $ 11,437 $ — $ 11,437 $ — At December 31, 2016: Collateralized mortgage obligations $ 9,752 $ — $ 9,752 $ — SBA Pool Securities 10,470 — 10,470 — $ 20,222 $ — $ 20,222 $ — |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Components of Loans | The components of loans are as follows (in thousands): At December 31, At December 31, 2017 2016 Residential real estate $ 26,054 $ 27,334 Multi-family real estate 7,356 5,829 Commercial real estate 32,152 29,264 Land and construction 1,051 5,681 Commercial 4,522 10,514 Consumer 794 1,829 Total loans 71,929 80,451 Add (deduct): Net deferred loan fees, costs and premiums 282 463 Allowance for loan losses (3,991 ) (3,915 ) Loans, net $ 68,220 $ 76,999 |
Schedule of Change in Allowance for Loan Losses | An analysis of the change in the allowance for loan losses for the years ended December 31, 2017 and 2016 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Year Ended December 31, 2017: Beginning balance $ 310 $ 58 $ 787 $ 120 $ 188 $ 165 $ 2,287 $ 3,915 Provision (credit) for loan losses 229 1 (28 ) (122 ) (133 ) (29 ) 82 — Charge-offs — — — — — (67 ) — (67 ) Recoveries 102 — — 24 — 17 143 Ending balance $ 641 $ 59 $ 759 $ 22 $ 55 $ 86 $ 2,369 $ 3,991 Year Ended December 31, 2016: Beginning balance $ 116 $ 26 $ 1,085 $ 77 $ 120 $ 151 $ 720 $ 2,295 Provision (credit) for loan losses 194 32 (2,069 ) 19 68 189 1,567 — Charge-offs — — (264 ) — — (205 ) — (469 ) Recoveries — — 2,035 24 — 30 — 2,089 Ending balance $ 310 $ 58 $ 787 $ 120 $ 188 $ 165 $ 2,287 $ 3,915 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, 2017 and 2016 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At December 31, 2017: Individually evaluated for impairment: Recorded investment $ 1,172 $ — $ 975 $ — $ — $ — $ — $ 2,147 Balance in allowance for loan losses $ 330 $ — $ 83 $ — $ — $ — $ — $ 413 Collectively evaluated for impairment: Recorded investment $ 24,882 $ 7,356 $ 31,177 $ 1,051 $ 4,522 $ 794 $ — $ 69,782 Balance in allowance for loan losses $ 311 $ 59 $ 676 $ 22 $ 55 $ 86 $ 2,369 $ 3,578 At December 31, 2016: Individually evaluated for impairment: Recorded investment $ 375 $ — $ 1,004 $ — $ — $ — $ — $ 1,379 Balance in allowance for loan losses $ — $ — $ 104 $ — $ — $ — $ — $ 104 Collectively evaluated for impairment: Recorded investment $ 26,959 $ 5,829 $ 28,260 $ 5,681 $ 10,514 $ 1,829 $ — $ 79,072 Balance in allowance for loan losses $ 310 $ 58 $ 683 $ 120 $ 188 $ 165 $ 2,287 $ 3,811 |
Schedule of Loans by Credit Quality | The following summarizes the loan credit quality (in thousands): Pass OLEM (Other Loans Especially Mentioned) Sub- standard Doubtful Loss Total At December 31, 2017: Residential real estate $ 22,315 $ 2,494 $ 1,245 $ — $ — $ 26,054 Multi-family real estate 7,356 — — — — 7,356 Commercial real estate 24,704 6,473 975 — — 32,152 Land and construction 1,051 — — — — 1,051 Commercial 2,304 2,218 — — — 4,522 Consumer 794 — — — — 794 Total $ 58,524 $ 11,185 $ 2,220 $ — $ — $ 71,929 At December 31, 2016: Residential real estate $ 25,326 $ 1,633 $ 375 $ — $ — $ 27,334 Multi-family real estate 5,829 — — — — 5,829 Commercial real estate 25,979 1,174 2,111 — — 29,264 Land and construction 5,636 45 — — — 5,681 Commercial 8,768 — 1,746 — — 10,514 Consumer 1,823 — 6 — — 1,829 Total $ 73,361 $ 2,852 $ 4,238 $ — $ — $ 80,451 |
Schedule of Age Analysis of Past-due Loans | At December 31, 2017, no loans were past due, more than thirty days and no loans were on nonaccrual. Age analysis of past-due loans at December 31, 2016 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, 2016: Residential real estate $ — $ — $ — $ — $ 26,959 $ 375 $ 27,334 Multi-family real estate — — — — 5,829 — 5,829 Commercial real estate — — — — 29,264 — 29,264 Land and construction — — — — 5,681 — 5,681 Commercial — — — — 10,514 — 10,514 Consumer — 6 — 6 1,823 — 1,829 Total $ — $ 6 $ — $ 6 $ 80,070 $ 375 $ 80,451 |
Schedule of Impaired Loans | The following summarizes the amount of impaired loans (in thousands): At December 31, 2017 At December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 194 $ 217 $ — $ 375 $ 501 $ — Commercial real estate 231 231 — — — — With related allowance recorded: Residential real estate 978 978 330 — — — Commercial real estate 744 744 83 1,004 1,004 104 Total Residential real estate $ 1,172 $ 1,195 $ 330 $ 375 $ 501 $ — Commercial real estate $ 975 $ 975 $ 83 $ 1,004 $ 1,004 $ 104 Total $ 2,147 $ 2,170 $ 413 $ 1,379 $ 1,505 $ 104 |
Schedule of Interest Income Recognized and Received On Impaired Loans | 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, 2017 2016 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ 650 $ 226 $ 121 $ 886 $ 48 $ 76 Commercial real estate $ 900 $ 52 $ 52 $ 2,071 $ 76 $ 106 Total $ 1,550 $ 278 $ 173 $ 2,957 $ 124 $ 182 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | A summary of premises and equipment follows (in thousands): At December 31, 2017 2016 Land $ 1,171 $ 1,171 Buildings and improvements 2,105 2,065 Furniture, fixtures and equipment 1,308 1,268 Leasehold improvements 131 119 Total, at cost 4,715 4,623 Less accumulated depreciation and amortization (2,122 ) (1,975 ) Premises and equipment, net $ 2,593 $ 2,648 |
Schedule of Future Minimum Lease Payments for an Operating Lease | At December 31, 2017, the future minimum lease payments are approximately as follows (in thousands): Year Ending December 31, Amount 2018 $ 90 2019 92 2020 95 2021 98 2022 93 Total $ 468 |
Foreclosed Real Estate (Tables)
Foreclosed Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of (Income) Expenses Applicable to Foreclosed Real Estate | (Income) expenses applicable to foreclosed real estate during the year ended December 31, 2016 are as follows (in thousands): Provision for losses on foreclosed real estate $ — Gain on sale of foreclosed real estate (174 ) Operating expenses 51 $ (123 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | A schedule of maturities of time deposits at December 31, 2017 follows (in thousands): Year Ending December 31, Amount 2018 $ 24,507 2019 4,524 2020 378 2021 99 2022 1,066 $ 30,574 |
Federal Home Loan Bank Advanc37
Federal Home Loan Bank Advances and Junior Subordinated Debenture (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities and Interest Rates On the Federal Home Loan Bank 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 2017 2016 2017 0.80 % $ — $ 3,000 2017 0.49 — 15,500 2018 1.53 % 5,000 — 2018 1.60 10,500 — 2021 1.68 5,000 5,000 $ 20,500 $ 23,500 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [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, 2017 At December 31, 2016 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 11,665 $ 11,665 1 $ 17,640 $ 17,640 1 Securities available for sale 11,437 11,437 2 20,222 20,222 2 Loans 68,220 68,079 3 76,999 76,829 3 Federal Home Loan Bank stock 979 979 3 1,113 1,113 3 Accrued interest receivable 316 316 3 380 380 3 Financial liabilities: Deposit liabilities 65,251 65,475 3 86,087 86,442 3 Federal Home Loan Bank advances 20,500 20,394 3 23,500 23,500 3 Junior subordinated debenture 5,155 N/A (1) 3 5,155 N/A (1) 3 Off-balance sheet financial instruments __ __ 3 — — 3 (1) The Company is unable to determine value based on significant unobservable inputs required in the calculation. Refer to Note 7 for further information. |
Schedule of Contractual Amounts of Bank-balance Sheet Risk | A summary of the contractual amounts of the Company’s financial instruments with off-balance-sheet risk at December 31, 2017 follows (in thousands): Commitments to extend credit $ 791 Unused lines of credit $ 2,031 Standby letters of credit $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Income tax benefit consisted of the following (in thousands): Year Ended December 31, 2017 2016 Current: Federal $ — $ — State — — Total Current — — Deferred: Federal 1,633 (134 ) State (32 ) (19 ) Change in Valuation Allowance (1,601 ) 153 Total Deferred — — Total $ — $ — |
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, 2017 2016 Amount % of Pretax Loss Amount % of Pretax Loss Income tax benefit at statutory rate $ (200 ) 34.0 % $ (135 ) 34.0 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit (21 ) 3.6 % (13 ) 3.3 % Other permanent differences — — (5 ) 1.3 % Reduction in Federal income-tax rate 1822 (309.3 %) — — Change in valuation allowance (1,601 ) 271.7 % 153 (38.6 %) $ — — $ — — |
Schedule of Deferred Tax Assets and Deferred Tax 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). At December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 3,547 $ 5,125 Premises and equipment 66 78 Accrued expenses 104 — Nonaccrual loan interest 122 287 Unrealized loss on available for sale securities 85 153 Other 56 56 Gross deferred tax assets 3,980 5,699 Less: Valuation allowance 3,792 5,393 Net deferred tax assets 188 306 Deferred tax liabilities: Allowance for loan losses (77 ) (114 ) Loan costs (26 ) (39 ) Total deferred tax liabilities (103 ) (153 ) Net deferred tax asset $ 85 $ 153 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Capital Amounts, Ratios and Regulatory Thresholds | The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at December 31, 2017 and 2016 (dollars in thousands): Actual For Capital Adequacy Purposes Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Requirements of Consent Order Amount % Amount % Amount % Amount % As of December 31, 2017: Total Capital to Risk-Weighted Assets $ 10,484 15.08 % $ 5,561 8.00 % $ 6,951 10.00 % $ 8,341 12.00 % Tier I Capital to Risk-Weighted Assets 9,577 13.78 4,170 6.00 5,561 8.00 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,577 13.78 3,128 4.50 4,518 6.50 N/A N/A Tier I Capital to Total Assets 9,577 8.89 4,307 4.00 5,383 5.00 8,614 8.00 As of December 31, 2016: Total Capital to Risk-Weighted Assets $ 10,662 12.79 % $ 6,609 8.00 % $ 8,261 10.00 % $ 9,913 12.0 % Tier I Capital to Risk-Weighted Assets 9,498 11.50 4,957 6.00 6,609 8.00 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,498 11.50 3,718 4.50 5,370 6.50 N/A N/A Tier I Capital to Total Assets 9,498 8.06 4,714 4.0 5,893 5.0 9,428 8.0 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured On Nonrecurring Basis | Those impaired collateral-dependent loans which are measured at fair value or a nonrecurring basis are as follows (in thousands): At December 31, 2017 Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations For the Year Ended December 31, 2017 Residential real estate $ 648 $ — $ — $ 648 $ 330 $ — At December 31, 2016 Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations For the Year Ended December 31, 2016 Residential real estate $ 375 $ — $ — $ 375 $ 126 $ — |
Holding Company Financial Inf42
Holding Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Condensed Balance Sheets At December 31, 2017 2016 Assets Cash $ 51 $ 164 Investment in subsidiary 9,328 9,245 Other assets 199 180 Total assets $ 9,578 $ 9,589 Liabilities and Stockholders’ Equity Other liabilities $ 1,878 $ 1,353 Junior subordinated debenture 5,155 5,155 Stockholders’ equity 2,545 3,081 Total liabilities and stockholders’ equity $ 9,578 $ 9,589 |
Schedule of Condensed Statements of Income and Comprehensive Income | Condensed Statements of Operations Year Ended December 31, 2017 2016 Earnings of subsidiary $ 79 $ 302 Interest expense (227 ) (193 ) Other expense (441 ) (505 ) Net loss $ (589 ) $ (396 ) |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, 2017 2016 Cash flows from operating activities: Net loss $ (589 ) $ (396 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock compensation to directors — 46 Stock compensation for services 21 128 Equity in undistributed earnings of subsidiary (79 ) (302 ) Increase in other liabilities 525 246 Increase in other assets (19 ) — Net cash used in operating activities (141 ) (278 ) Cash flow from investing activities- Investment in subsidiary (2 ) (21 ) Cash flow from financing activities: Proceeds from sale of common stock, net 30 375 Proceeds from sale of preferred stock — 75 Net cash provided by financing activities 30 450 Net (decrease) increase in cash (113 ) 151 Cash at beginning of the year 164 13 Cash at end of year $ 51 $ 164 Noncash transaction- Change in accumulated other comprehensive loss of subsidiary, net change in unrealized loss on securities available for sale, net of taxes $ 2 $ (114 ) |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Junior subordinated debenture | $ 5,155,000 | ||
Debt instrument periodic payment, principal | 5,155,000 | ||
Accrued and unpaid interest payable | 1,375,011 | ||
Cash reserves | $ 70,000 | ||
Statutory federal corporate income tax rate | 34.00% | 34.00% | |
Income tax provision | |||
Advertising expense | $ 69,179 | $ 9,400 | |
Reverse common stock split | (1-for-10) | (1-for-10) | |
Minimum [Member] | |||
Statutory federal corporate income tax rate | 21.00% | ||
Maximum [Member] | |||
Statutory federal corporate income tax rate | 35.00% | ||
OptimumBank Holdings Capital Trust I [Member] | |||
Proceeds from issuance of preferred securities | $ 5,000,000 | ||
Common stock to acquire debenture issued, value | $ 5,155,000 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Schedule of Weighted Average Number of Common Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share | 1,104,995 | 1,041,213 |
Securities (Details Narrative)
Securities (Details Narrative) | Dec. 31, 2017USD ($)Number | Dec. 31, 2016Number |
Investment securities in unrealized loss position | Number | 8 | 6 |
Federal Reserve Bank [Member] | ||
Securities pledged, market value | $ | $ 590,000 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Approximate Fair Values of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | $ 11,771 | $ 20,627 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (344) | (405) |
Fair Value | 11,437 | 20,222 |
Collateralized Mortgage Obligations [Member] | ||
Amortized Cost | 8,806 | 10,157 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (340) | (405) |
Fair Value | 8,466 | 9,752 |
SBA Pool Securities [Member] | ||
Amortized Cost | 2,965 | 10,470 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (4) | |
Fair Value | $ 2,971 | $ 10,470 |
Securities - Schedule of Sales
Securities - Schedule of Sales of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of securities | $ 6,448 | $ 28,409 |
Gross gains from sale of securities | 11 | 48 |
Gross losses from sale of securities | (234) | |
Net gain (loss) from sales of securities | $ 11 | $ (186) |
Securities - Schedule of Securi
Securities - Schedule of Securities with Gross Unrealized Losses, by Investment Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Securities in an Unrealized Loss Position Over 12 Months, Gross unrealized Losses | $ 343 | |
Securities in an Unrealized Loss Position Over 12 Months, Fair Value | 9,005 | |
Securities in an Unrealized Loss Position Less than 12 Month, Gross unrealized Losses | 1 | |
Securities in an Unrealized Loss Position Less than 12 Month, Fair Value | 540 | |
Collateralized Mortgage Obligations [Member] | ||
Securities in an Unrealized Loss Position Over 12 Months, Gross unrealized Losses | 340 | $ (46) |
Securities in an Unrealized Loss Position Over 12 Months, Fair Value | 8,466 | 864 |
Securities in an Unrealized Loss Position Less than 12 Month, Gross unrealized Losses | (359) | |
Securities in an Unrealized Loss Position Less than 12 Month, Fair Value | $ 8,888 | |
SBA Pool Securities [Member] | ||
Securities in an Unrealized Loss Position Over 12 Months, Gross unrealized Losses | 3 | |
Securities in an Unrealized Loss Position Over 12 Months, Fair Value | 539 | |
Securities in an Unrealized Loss Position Less than 12 Month, Gross unrealized Losses | 1 | |
Securities in an Unrealized Loss Position Less than 12 Month, Fair Value | $ 540 |
Securities - Schedule of Availa
Securities - Schedule of Available-for-Sale Securities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Securities available for sale, fair value | $ 11,437 | $ 20,222 |
SBA Pool Securities [Member] | ||
Securities available for sale, fair value | 2,971 | 10,470 |
Fair Value [Member] | ||
Securities available for sale, fair value | 11,437 | 20,222 |
Fair Value [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, fair value | 8,466 | 9,752 |
Fair Value [Member] | SBA Pool Securities [Member] | ||
Securities available for sale, fair value | 2,971 | 10,470 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale, fair value | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, fair value | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | SBA Pool Securities [Member] | ||
Securities available for sale, fair value | ||
Significant Other Observable Inputs Level 2 [Member] | ||
Securities available for sale, fair value | 11,437 | 20,222 |
Significant Other Observable Inputs Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, fair value | 8,466 | 9,752 |
Significant Other Observable Inputs Level 2 [Member] | SBA Pool Securities [Member] | ||
Securities available for sale, fair value | 2,971 | 10,470 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale, fair value | ||
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, fair value | ||
Significant Unobservable Inputs (Level 3) [Member] | SBA Pool Securities [Member] | ||
Securities available for sale, fair value |
Loans - Schedule of Components
Loans - Schedule of Components of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total loans | $ 71,929 | $ 80,451 | |
Net deferred loan fees, costs and premiums | 282 | 463 | |
Allowance for loan losses | (3,991) | (3,915) | $ (2,295) |
Loans, net | 68,220 | 76,999 | |
Residential Real Estate [Member] | |||
Total loans | 26,054 | 27,334 | |
Allowance for loan losses | (641) | (310) | (116) |
Multi-Family Real Estate [Member] | |||
Total loans | 7,356 | 5,829 | |
Allowance for loan losses | (59) | (58) | (26) |
Commercial Real Estate [Member] | |||
Total loans | 32,152 | 29,264 | |
Allowance for loan losses | (759) | (787) | (1,085) |
Land and Construction [Member] | |||
Total loans | 1,051 | 5,681 | |
Allowance for loan losses | (22) | (120) | (77) |
Commercial [Member] | |||
Total loans | 4,522 | 10,514 | |
Allowance for loan losses | (55) | (188) | (120) |
Consumer [Member] | |||
Total loans | 794 | 1,829 | |
Allowance for loan losses | $ (86) | $ (165) | $ (151) |
Loans - Schedule of Change in A
Loans - Schedule of Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ 3,915 | $ 2,295 |
Provision (credit) for loan losses | ||
Charge-offs | (67) | (469) |
Recoveries | 143 | 2,089 |
Ending balance | 3,991 | 3,915 |
Individually evaluated for impairment, Recorded investment | 2,147 | 1,379 |
Individually evaluated for impairment, Allowance for loan losses | 413 | 104 |
Collectively evaluated for impairment, Recorded investment | 69,782 | 79,072 |
Collectively evaluated for impairment, Allowance for loan losses | 3,578 | 3,811 |
Residential Real Estate [Member] | ||
Beginning balance | 310 | 116 |
Provision (credit) for loan losses | 229 | 194 |
Charge-offs | ||
Recoveries | 102 | |
Ending balance | 641 | 310 |
Individually evaluated for impairment, Recorded investment | 1,172 | 375 |
Individually evaluated for impairment, Allowance for loan losses | 330 | |
Collectively evaluated for impairment, Recorded investment | 24,882 | 26,959 |
Collectively evaluated for impairment, Allowance for loan losses | 311 | 310 |
Multi-Family Real Estate [Member] | ||
Beginning balance | 58 | 26 |
Provision (credit) for loan losses | 1 | 32 |
Charge-offs | ||
Recoveries | ||
Ending balance | 59 | 58 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 7,356 | 5,829 |
Collectively evaluated for impairment, Allowance for loan losses | 59 | 58 |
Commercial Real Estate [Member] | ||
Beginning balance | 787 | 1,085 |
Provision (credit) for loan losses | (28) | (2,069) |
Charge-offs | (264) | |
Recoveries | 2,035 | |
Ending balance | 759 | 787 |
Individually evaluated for impairment, Recorded investment | 975 | 1,004 |
Individually evaluated for impairment, Allowance for loan losses | 83 | 104 |
Collectively evaluated for impairment, Recorded investment | 31,177 | 28,260 |
Collectively evaluated for impairment, Allowance for loan losses | 676 | 683 |
Land and Construction [Member] | ||
Beginning balance | 120 | 77 |
Provision (credit) for loan losses | (122) | 19 |
Charge-offs | ||
Recoveries | 24 | 24 |
Ending balance | 22 | 120 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 1,051 | 5,681 |
Collectively evaluated for impairment, Allowance for loan losses | 22 | 120 |
Commercial [Member] | ||
Beginning balance | 188 | 120 |
Provision (credit) for loan losses | (133) | 68 |
Charge-offs | ||
Recoveries | ||
Ending balance | 55 | 188 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 4,522 | 10,514 |
Collectively evaluated for impairment, Allowance for loan losses | 55 | 188 |
Consumer [Member] | ||
Beginning balance | 165 | 151 |
Provision (credit) for loan losses | (29) | 189 |
Charge-offs | (67) | (205) |
Recoveries | 17 | 30 |
Ending balance | 86 | 165 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 794 | 1,829 |
Collectively evaluated for impairment, Allowance for loan losses | 86 | 165 |
Unallocated [Member] | ||
Beginning balance | 2,287 | 720 |
Provision (credit) for loan losses | 82 | 1,567 |
Charge-offs | ||
Recoveries | ||
Ending balance | 2,369 | 2,287 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | ||
Collectively evaluated for impairment, Allowance for loan losses | $ 2,369 | $ 2,287 |
Loans - Schedule of Loans by Cr
Loans - Schedule of Loans by Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Risk rated loans | $ 71,929 | $ 80,451 |
Pass [Member] | ||
Risk rated loans | 58,524 | 73,361 |
OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 11,185 | 2,852 |
Substandard [Member] | ||
Risk rated loans | 2,220 | 4,238 |
Doubtful [Member] | ||
Risk rated loans | ||
Loss [Member] | ||
Risk rated loans | ||
Residential Real Estate [Member] | ||
Risk rated loans | 26,054 | 27,334 |
Residential Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 22,315 | 25,326 |
Residential Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 2,494 | 1,633 |
Residential Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | 1,245 | 375 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Residential Real Estate [Member] | Loss [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | ||
Risk rated loans | 7,356 | 5,829 |
Multi-Family Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 7,356 | 5,829 |
Multi-Family Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | Loss [Member] | ||
Risk rated loans | ||
Commercial Real Estate [Member] | ||
Risk rated loans | 32,152 | 29,264 |
Commercial Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 24,704 | 25,979 |
Commercial Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 6,473 | 1,174 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | 975 | 2,111 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Commercial Real Estate [Member] | Loss [Member] | ||
Risk rated loans | ||
Land and Construction [Member] | ||
Risk rated loans | 1,051 | 5,681 |
Land and Construction [Member] | Pass [Member] | ||
Risk rated loans | 1,051 | 5,636 |
Land and Construction [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 45 | |
Land and Construction [Member] | Substandard [Member] | ||
Risk rated loans | ||
Land and Construction [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Land and Construction [Member] | Loss [Member] | ||
Risk rated loans | ||
Commercial [Member] | ||
Risk rated loans | 4,522 | 10,514 |
Commercial [Member] | Pass [Member] | ||
Risk rated loans | 2,304 | 8,768 |
Commercial [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 2,218 | |
Commercial [Member] | Substandard [Member] | ||
Risk rated loans | 1,746 | |
Commercial [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Commercial [Member] | Loss [Member] | ||
Risk rated loans | ||
Consumer [Member] | ||
Risk rated loans | 794 | 1,829 |
Consumer [Member] | Pass [Member] | ||
Risk rated loans | 794 | 1,823 |
Consumer [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | ||
Consumer [Member] | Substandard [Member] | ||
Risk rated loans | 6 | |
Consumer [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Consumer [Member] | Loss [Member] | ||
Risk rated loans |
Loans - Schedule of Age Analysi
Loans - Schedule of Age Analysis of Past-due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total Past Due | $ 6 | |
Current Loans | 80,070 | |
Nonaccrual Loans | 375 | |
Total Loans | $ 71,929 | 80,451 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | 6 | |
Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Residential Real Estate [Member] | ||
Total Past Due | ||
Current Loans | 26,959 | |
Nonaccrual Loans | 375 | |
Total Loans | 26,054 | 27,334 |
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Residential Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Multi-Family Real Estate [Member] | ||
Total Past Due | ||
Current Loans | 5,829 | |
Nonaccrual Loans | ||
Total Loans | 7,356 | 5,829 |
Multi-Family Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Multi-Family Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Multi-Family Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Commercial Real Estate [Member] | ||
Total Past Due | ||
Current Loans | 29,264 | |
Nonaccrual Loans | ||
Total Loans | 32,152 | 29,264 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Commercial Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Land and Construction [Member] | ||
Total Past Due | ||
Current Loans | 5,681 | |
Nonaccrual Loans | ||
Total Loans | 1,051 | 5,681 |
Land and Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Land and Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Land and Construction [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Commercial [Member] | ||
Total Past Due | ||
Current Loans | 10,514 | |
Nonaccrual Loans | ||
Total Loans | 4,522 | 10,514 |
Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Commercial [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Consumer [Member] | ||
Total Past Due | 6 | |
Current Loans | 1,823 | |
Nonaccrual Loans | ||
Total Loans | $ 794 | 1,829 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | 6 | |
Consumer [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due |
Loans - Schedule of Impaired Lo
Loans - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Recorded Investment , With no related allowance recorded | ||
Unpaid Principal Balance, With no related allowance recorded | ||
Related Allowance, With no related allowance recorded | ||
Recorded Investment , With related allowance recorded | ||
Unpaid Principal Balance, With related allowance recorded | ||
Related Allowance, With related allowance recorded | ||
Total recorded investment | 2,147 | 1,379 |
Total unpaid principal balance | 2,170 | 1,505 |
Total related allowance | 413 | 104 |
Residential Real Estate [Member] | ||
Recorded Investment , With no related allowance recorded | 194 | 375 |
Unpaid Principal Balance, With no related allowance recorded | 217 | 501 |
Related Allowance, With no related allowance recorded | ||
Recorded Investment , With related allowance recorded | 978 | |
Unpaid Principal Balance, With related allowance recorded | 978 | |
Related Allowance, With related allowance recorded | 330 | |
Total recorded investment | 1,172 | 375 |
Total unpaid principal balance | 1,195 | 501 |
Total related allowance | 330 | |
Commercial Real Estate [Member] | ||
Recorded Investment , With no related allowance recorded | 231 | |
Unpaid Principal Balance, With no related allowance recorded | 231 | |
Related Allowance, With no related allowance recorded | ||
Recorded Investment , With related allowance recorded | 744 | 1,004 |
Unpaid Principal Balance, With related allowance recorded | 744 | 1,004 |
Related Allowance, With related allowance recorded | 83 | 104 |
Total recorded investment | 975 | 1,004 |
Total unpaid principal balance | 975 | 1,004 |
Total related allowance | $ 83 | $ 104 |
Loans - Schedule of Interest In
Loans - Schedule of Interest Income Recognized and Received on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired loans - Average Recorded Investment | $ 1,550 | $ 2,957 |
Impaired loans - Interest Income Recognized | 278 | 124 |
Impaired loans - Interest Income Received | 173 | 182 |
Residential Real Estate [Member] | ||
Impaired loans - Average Recorded Investment | 650 | 886 |
Impaired loans - Interest Income Recognized | 226 | 48 |
Impaired loans - Interest Income Received | 121 | 76 |
Commercial Real Estate [Member] | ||
Impaired loans - Average Recorded Investment | 900 | 2,071 |
Impaired loans - Interest Income Recognized | 52 | 76 |
Impaired loans - Interest Income Received | $ 52 | $ 106 |
Premises and Equipment (Details
Premises and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Rental Expense | $ 73 | $ 68 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Premises and equipment, gross | $ 4,715 | $ 4,623 |
Less Accumulated Depreciation and Amortization | (2,122) | (1,975) |
Premises and equipment, net | 2,593 | 2,648 |
Land | ||
Premises and equipment, gross | 1,171 | 1,171 |
Buildings and Improvements [Member] | ||
Premises and equipment, gross | 2,105 | 2,065 |
Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment, gross | 1,308 | 1,268 |
Leasehold Improvements [Member] | ||
Premises and equipment, gross | $ 131 | $ 119 |
Premises and Equipment - Sche58
Premises and Equipment - Schedule of Future Minimum Lease Payments for an Operating Lease (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
2,018 | $ 90 |
2,019 | 92 |
2,020 | 95 |
2,021 | 98 |
2,022 | 93 |
Total | $ 468 |
Foreclosed Real Estate - Schedu
Foreclosed Real Estate - Schedule of (Income) Expenses Applicable to Foreclosed Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | ||
Provision for losses on foreclosed real estate | ||
Gain on sale of foreclosed real estate | (174) | |
Operating expenses | 51 | |
Foreclosed real estate (income) expenses | $ (123) |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Time deposits greater than $100,000 | $ 19,300 | $ 34,800 |
Time deposits | 30,574 | $ 56,725 |
Minimum [Member] | ||
Time deposits | $ 100 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
2,018 | $ 24,507 | |
2,019 | 4,524 | |
2,020 | 378 | |
2,021 | 99 | |
2,022 | 1,066 | |
Total | $ 30,574 | $ 56,725 |
Federal Home Loan Bank Advanc62
Federal Home Loan Bank Advances and Junior Subordinated Debenture (Details Narrative) - USD ($) | Sep. 30, 2004 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | |||
Available for sale securities and blanket lien on qualifying loans pledged as collateral to the Federal Home Loan Bank | $ 40,100,000 | $ 22,000,000 | |
Junior subordinated debenture principal amount | $ 5,155,000 | ||
Debenture term | 30 years | ||
Debt instrument interest rate stated | 6.40% | ||
Debt interest rate terms | 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% (3.78% at December 31, 2017). | ||
Variable rate basis description | three-month LIBOR rate plus 2.45% | ||
Basis spread on variable rate | 2.45% | ||
Deferred interest payments on debenture | $ 1,375,011 |
Federal Home Loan Bank Advanc63
Federal Home Loan Bank Advances and Junior Subordinated Debenture - Schedule of Maturities and Interest Rates On the Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total | $ 20,500 | $ 23,500 |
2017 [Member] | ||
Average Interest Rate | 0.80% | |
Total | 3,000 | |
2017 [Member] | ||
Average Interest Rate | 0.49% | |
Total | 15,500 | |
2018 [Member] | ||
Average Interest Rate | 1.53% | |
Total | $ 5,000 | |
2018 [Member] | ||
Average Interest Rate | 1.60% | |
Total | $ 10,500 | |
2021 [Member] | ||
Average Interest Rate | 1.68% | |
Total | $ 5,000 | $ 5,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Securities available for sale | $ 11,437 | $ 20,222 | |
Accrued interest receivable | 316 | 380 | |
Carrying Amount [Member] | |||
Cash and cash equivalents | 11,665 | 17,640 | |
Securities available for sale | 11,437 | 20,222 | |
Loans | 68,220 | 76,999 | |
Federal Home Loan Bank stock | 979 | 1,113 | |
Accrued interest receivable | 316 | 380 | |
Deposit liabilities | 65,251 | 86,087 | |
Federal Home Loan Bank advances | 20,500 | 23,500 | |
Junior subordinated debenture | 5,155 | 5,155 | |
Off-balance sheet financial instruments | |||
Fair Value [Member] | |||
Cash and cash equivalents | 11,665 | 17,640 | |
Securities available for sale | 11,437 | 20,222 | |
Loans | 68,079 | 76,829 | |
Federal Home Loan Bank stock | 979 | 1,113 | |
Accrued interest receivable | 316 | 380 | |
Deposit liabilities | 65,475 | 86,442 | |
Federal Home Loan Bank advances | 20,394 | 23,500 | |
Junior subordinated debenture | [1] | ||
Off-balance sheet financial instruments | |||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||
Cash and cash equivalents | 11,665 | 17,640 | |
Securities available for sale | |||
Significant Other Observable Inputs Level 2 [Member] | |||
Securities available for sale | 11,437 | 20,222 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Securities available for sale | |||
Loans | 68,079 | 76,829 | |
Federal Home Loan Bank stock | 979 | 1,113 | |
Accrued interest receivable | 302 | 380 | |
Deposit liabilities | 65,475 | 86,442 | |
Federal Home Loan Bank advances | 20,394 | 23,500 | |
Junior subordinated debenture | |||
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. |
Financial Instruments - Sched65
Financial Instruments - Schedule of Contractual Amounts of Bank-balance Sheet Risk (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, All Other Investments [Abstract] | |
Commitments to extend credit | $ 791 |
Unused lines of credit | 2,031 |
Standby letters of credit |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Carryforwards expiration, description | carryforwards will begin to expire in 2029. |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss carryforwards | $ 14,000 |
Florida | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss carryforwards | $ 13,900 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Current: Federal | ||
Current: State | ||
Total Current | ||
Deferred: Federal | 1,633 | (134) |
Deferred: State | (32) | (19) |
Deferred: Change in valuation allowance | (1,601) | 153 |
Total Deferred | ||
Income Tax Expense |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at statutory rate | $ (200) | $ (135) |
State taxes, net of Federal tax benefit | (21) | (13) |
Other permanent differences | (5) | |
Reduction in Federal income-tax rate | 1,822 | |
Change in valuation allowance | (1,601) | 153 |
Income Tax Expense | ||
Income tax benefit at statutory rate, tax rate | 34.00% | 34.00% |
State taxes, net of Federal tax benefit | 3.60% | 3.30% |
Other permanent differences | 1.30% | |
Reduction in Federal income-tax rate | (309.30%) | |
Change in valuation allowance | 271.70% | (38.60%) |
Total |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 3,547 | $ 5,125 |
Premises and equipment | 66 | 78 |
Accrued expenses | 104 | |
Nonaccrual loan interest | 122 | 287 |
Unrealized loss on available for sale securities | 85 | 153 |
Other | 56 | 56 |
Gross deferred tax assets | 3,980 | 5,699 |
Less: Valuation allowance | 3,792 | 5,393 |
Net deferred tax assets | 188 | 306 |
Allowance for loan losses | (77) | (114) |
Loan costs | (26) | (39) |
Total deferred tax liabilities | (103) | (153) |
Net deferred tax asset | $ 85 | $ 153 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related party loans receivable | ||
Related party deposit liabilities | 229 | $ 635 |
Directors [Member] | ||
Legal fees | $ 54 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | May 31, 2016shares | Dec. 27, 2011shares | |
Reverse stock split ratio | 0.10 | 0.10 | ||
Accrued employee related compensation | $ | $ 200 | $ 200 | ||
Common stock issued as compensation to directors | $ | 46 | |||
Shares available for grant | 37,220 | |||
Post Split [Member] | ||||
Common stock issued as compensation to directors | $ | $ 214 | $ 246 | ||
First quarter of 2018 [Member] | ||||
Number of shares issued | 2,821 | |||
Directors [Member] | ||||
Common stock issued as compensation to directors for services, shares | 57,476 | |||
Common stock issued as compensation to directors, shares | 105,819 | |||
Directors [Member] | Subsequently in 2018 [Member] | ||||
Number of shares issued | 141,921 | |||
Common stock issued as compensation to directors, shares | 36,102 | |||
Accrued employee related compensation | $ | $ 200 | |||
2011 Compensation Plan [Member] | ||||
Shares authorized for grant | 210,000 | 105,000 | ||
2011 Plan [Member] | ||||
Number of shares issued | 2,821 | |||
Shares issued price per share | $ / shares | $ 3.14 |
Regulatory Matters (Details Nar
Regulatory Matters (Details Narrative) - USD ($) $ in Thousands | Nov. 07, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Minimum requirement of capital conservation buffer, ratio | 1.25% | 0.625% | |
Conversion buffer, description | The required conservation buffer of 2.50% is to be phased in at 0.625% on each January 1st over the next two years. | ||
Leverage ratio | 8.89% | ||
Risk-based capital ratio | 15.08% | ||
Regulatory matters, description | The Bank is required to 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. | ||
Bank accrued | $ 305 | $ 60 | |
Minimum [Member] | |||
Estimated cost of BSA's consent order | $ 250 | ||
Maximum [Member] | |||
Estimated cost of BSA's consent order | $ 420 | ||
Beginning 90 Days from the Issuance [Member] | |||
Leverage ratio | 8.00% | ||
Risk-based capital ratio | 12.00% |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Capital Amounts, Ratios and Regulatory Thresholds (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Total Capital to Risk-Weighted Assets | $ 10,484 | $ 10,662 |
Total Capital to Risk-Weighted Assets ratio | 15.08% | 12.79% |
Tier I Capital to Risk-Weighted Assets | $ 9,577 | $ 9,498 |
Tier I Capital to Risk-Weighted Assets ratio | 13.78% | 11.50% |
Common equity Tier 1 capital to Risk-Weighted Assets | $ 9,577 | $ 9,498 |
Common equity Tier 1 capital to Risk-Weighted Assets, ratio | 13.78% | 11.50% |
Tier I Capital to Total Assets | $ 9,577 | $ 9,498 |
Tier I Capital to Total Assets ratio | 8.89% | 8.06% |
Minimum amount of capital for adequacy purposes | $ 5,561 | $ 6,609 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 4,170 | $ 4,957 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 6.00% |
Common equity Tier 1 capital to Risk-Weighted Assets for adequacy purposes | $ 3,128 | $ 3,718 |
Common equity Tier 1 capital to Risk-Weighted Assets for adequacy purposes, ratio | 4.50% | 4.50% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 4,307 | $ 4,714 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Capital required to be well-capitalized | $ 6,951 | $ 8,261 |
Minimum Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 5,561 | $ 6,609 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 8.00% | 8.00% |
Common equity Tier I capital to Risk-Weighted Assets to be well-capitalized | $ 4,518 | $ 5,370 |
Common equity Tier I capital to Risk-Weighted Assets to be well-capitalized, ratio | 6.50% | 6.50% |
Minimum Capital required to be well-capitalized | $ 5,383 | $ 5,893 |
Minimum Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Minimum Capital required under consent order | $ 8,341 | $ 9,913 |
Minimum Capital required under consent order, ratio | 12.00% | 12.00% |
Minimum Tier 1 Capital required under consent order | $ 8,614 | $ 9,428 |
Minimum Tier 1 Capital required under consent order, ratio | 8.00% | 8.00% |
Loan Loss Recovery (Details Nar
Loan Loss Recovery (Details Narrative) - USD ($) $ in Thousands | Jan. 06, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loan Loss Recovery | ||||
Recovery of previously charged-off amounts to the allowance for loan and lease losses | $ 1,800 | |||
Allowance for loan and lease losses | $ 3,991 | $ 3,915 | $ 2,295 |
Reclassification (Details Narra
Reclassification (Details Narrative) - Chairman [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)shares | |
Common stock issued as compensation to chairman, shares | shares | 46,296 |
Share-based compensation expense | $ | $ 200 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Cumulative Fair value losses | $ 330 | $ 126 |
Losses recorded in operations during the period | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | ||
Significant Other Observable Inputs Level 2 [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Loans receivable, Fair Value | 68,079 | 76,829 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | 648 | 375 |
Fair Value [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | $ 648 | $ 375 |
Holding Company Financial Inf77
Holding Company Financial Information - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other assets | $ 656 | $ 701 | |
Total assets | 95,866 | 119,703 | |
Other liabilities | 2,369 | 1,623 | |
Junior subordinated debenture | 5,155 | 5,155 | |
Stockholders' equity | 2,545 | 3,081 | $ 2,967 |
Total liabilities and stockholders' equity | 95,866 | 119,703 | |
Holding Company [Member] | |||
Cash | 51 | 164 | $ 13 |
Investment in subsidiary | 9,328 | 9,245 | |
Other assets | 199 | 180 | |
Total assets | 9,578 | 9,589 | |
Other liabilities | 1,878 | 1,353 | |
Junior subordinated debenture | 5,155 | 5,155 | |
Stockholders' equity | 2,545 | 3,081 | |
Total liabilities and stockholders' equity | $ 9,578 | $ 9,589 |
Holding Company Financial Inf78
Holding Company Financial Information - Schedule of Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest expense | $ (1,196) | $ (1,079) |
Other expense | (553) | (443) |
Net loss | (589) | (396) |
Holding Company [Member] | ||
Earnings of subsidiary | 79 | 302 |
Interest expense | (227) | (193) |
Other expense | (441) | (505) |
Net loss | $ (589) | $ (396) |
Holding Company Financial Inf79
Holding Company Financial Information - Schedule of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net loss | $ (589) | $ (396) |
Stock compensation to directors | 46 | |
Increase in other liabilities | 749 | 203 |
Increase in other assets | 24 | 4 |
Proceeds from sale of common stock, net | 30 | 375 |
Proceeds from sale of preferred stock | 75 | |
Holding Company [Member] | ||
Net loss | (589) | (396) |
Stock compensation to directors | 46 | |
Stock compensation for services | 21 | 128 |
Equity in undistributed earnings of subsidiary | (79) | (302) |
Increase in other liabilities | 525 | 246 |
Increase in other assets | (19) | |
Net cash used in operating activities | (141) | (278) |
Investment in subsidiary | (2) | (21) |
Proceeds from sale of common stock, net | 30 | 375 |
Proceeds from sale of preferred stock | 75 | |
Net cash provided by financing activities | 30 | 450 |
Net (decrease) increase in cash | (113) | 151 |
Cash at beginning of the year | 164 | 13 |
Cash at end of year | 51 | 164 |
Change in accumulated other comprehensive loss of subsidiary, net change in unrealized loss on securities available for sale, net of taxes | $ 2 | $ (114) |
Preferred Stock (Details Narrat
Preferred Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Preferred stock number of shares issued | 7 | 7 |
Preferred stock value | ||
Preferred stock, liquidation value per share | $ 25,000 | $ 25,000 |
Series A Preferred Stock [Member] | ||
Preferred stock number of shares issued | 7 | |
Preferred stock value | $ 25,000 | |
Preferred stock dividend description | These dividends will be paid annually in arrears on December 31 of each year. Notwithstanding the foregoing, dividends will not be declared, paid or set aside for payment to the extent such act would cause the Company to fail to comply with laws and regulations. These dividends will be cumulative. | |
Preferred stock dividend rate per annum | 10.00% | |
Preferred stock, liquidation value per share | $ 25,000 |