Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 25, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | OptimumBank Holdings, Inc. | ||
Entity Central Index Key | 0001288855 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity Reporting Status Current | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,067,446 | ||
Entity Common Stock, Shares Outstanding | 3,203,455 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and due from banks | $ 25,523 | $ 2,111 |
Interest-bearing deposits with banks | 29,106 | 6,823 |
Total cash and cash equivalents | 54,629 | 8,934 |
Debt securities available for sale | 18,893 | 5,409 |
Debt securities held-to-maturity (fair value of $3,549 and $5,986) | 3,399 | 5,806 |
Loans, net of allowance for loan losses of $1,906 and $2,009 | 152,469 | 102,233 |
Federal Home Loan Bank stock | 1,092 | 642 |
Premises and equipment, net | 1,413 | 1,389 |
Right-of-use operating lease assets | 904 | 1,055 |
Accrued interest receivable | 1,336 | 432 |
Other assets | 977 | 848 |
Total assets | 235,112 | 126,748 |
Liabilities: | ||
Noninterest-bearing demand deposits | 58,312 | 10,545 |
Savings, NOW and money-market deposits | 110,704 | 55,475 |
Time deposits | 21,743 | 35,352 |
Total deposits | 190,759 | 101,372 |
Federal Home Loan Bank advances | 23,000 | 13,000 |
Junior subordinated debenture | 2,068 | 2,580 |
Official checks | 142 | 208 |
Operating lease liabilities | 923 | 1,061 |
Other liabilities | 386 | 1,320 |
Total liabilities | 217,278 | 119,541 |
Commitments and contingencies (Notes 8 and 14) | ||
Stockholders' equity: | ||
Common stock, $.01 par value; 10,000,000 shares authorized, 3,203,455 shares issued and outstanding in 2020 and 2,853,171 shares issued and outstanding in 2019 | 32 | 28 |
Additional paid-in capital | 50,263 | 38,994 |
Accumulated deficit | (32,392) | (31,610) |
Accumulated other comprehensive loss | (69) | (205) |
Total stockholders' equity | 17,834 | 7,207 |
Total liabilities and stockholders' equity | 235,112 | 126,748 |
Designated Series A Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, no par value; 6,000,000 shares authorized: | ||
Designated Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, no par value; 6,000,000 shares authorized: |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt securities held to maturity, fair value | $ 3,549 | $ 5,986 |
Loans, allowance for loan losses | $ 1,906 | $ 2,009 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,203,455 | 2,853,171 |
Common stock, shares outstanding | 3,203,455 | 2,853,171 |
Designated Series A Preferred Stock [Member] | ||
Preferred stock, par value | ||
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Designated Series B Preferred Stock [Member] | ||
Preferred stock, par value | ||
Preferred stock, shares authorized | 560 | |
Preferred stock, shares issued | 400 | |
Preferred stock, shares outstanding | 400 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | ||
Loans | $ 6,413 | $ 4,693 |
Debt securities | 192 | 245 |
Other | 105 | 236 |
Total interest income | 6,710 | 5,174 |
Interest expense: | ||
Deposits | 1,277 | 1,503 |
Borrowings | 443 | 543 |
Total interest expense | 1,720 | 2,046 |
Net interest income | 4,990 | 3,128 |
Provision (credit) for loan losses | 1,020 | (79) |
Net interest income after Provision (credit) for loan losses | 3,970 | 3,207 |
Noninterest income: | ||
Service charges on deposits | 272 | 173 |
Other | 22 | 9 |
Total noninterest income | 294 | 182 |
Noninterest expenses: | ||
Salaries and employee benefits | 2,324 | 2,022 |
Professional fees | 558 | 537 |
Occupancy and equipment | 570 | 487 |
Data processing | 546 | 491 |
Insurance | 85 | 89 |
Regulatory assessment | 158 | 41 |
Loss on sale of premises and equipment, net | 215 | |
Other | 805 | 659 |
Total noninterest expenses | 5,046 | 4,541 |
Net loss before income tax benefit | (782) | (1,152) |
Income tax benefit | (52) | |
Net loss | $ (782) | $ (1,100) |
Net loss per share - Basic and diluted | $ (0.27) | $ (.58) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Net loss | $ (782) | $ (1,100) |
Change in unrealized gain on debt securities- | ||
Unrealized gain arising during the year | 39 | 75 |
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 140 | 93 |
Other comprehensive income before income tax expense | 179 | 168 |
Deferred income tax expense on above change | (43) | (43) |
Total other comprehensive income | 136 | 125 |
Comprehensive loss | $ (646) | $ (975) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Series A Preferred Stock [Member] | Series B 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, 2018 | $ 18 | $ 36,128 | $ (30,510) | $ (330) | $ 5,306 | ||
Balance beginning, shares at Dec. 31, 2018 | 1,858,020 | ||||||
Common stock issued and reclassified from other liabilities | 31 | 31 | |||||
Common stock issued and reclassified from other liabilities, shares | 12,447 | ||||||
Stock-based compensation | $ 1 | 200 | 201 | ||||
Stock-based compensation, shares | 58,309 | ||||||
Common stock issued in exchange for Trust Preferred Securities | $ 9 | 2,635 | 2,644 | ||||
Common stock issued in exchange for Trust Preferred Securities, shares | 924,395 | ||||||
Net change in unrealized gain on debt securities available for sale, net of income taxes | 56 | 56 | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 69 | 69 | |||||
Net earnings (loss) | (1,100) | (1,100) | |||||
Balance ending at Dec. 31, 2019 | $ 28 | 38,994 | (31,610) | (205) | 7,207 | ||
Balance ending, shares at Dec. 31, 2019 | 2,853,171 | ||||||
Proceeds from the sale of preferred stock | 10,000 | 10,000 | |||||
Proceeds from the sale of preferred stock, shares | 400 | ||||||
Proceeds from the sale of common stock | $ 1 | 539 | 540 | ||||
Proceeds from the sale of common stock, shares | 98,182 | ||||||
Common stock issued and reclassified from other liabilities | |||||||
Stock-based compensation | $ 1 | 218 | 219 | ||||
Stock-based compensation, shares | 80,602 | ||||||
Common stock issued in exchange for Trust Preferred Securities | $ 2 | 512 | 514 | ||||
Common stock issued in exchange for Trust Preferred Securities, shares | 171,500 | ||||||
Net change in unrealized gain on debt securities available for sale, net of income taxes | 30 | 30 | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 106 | 106 | |||||
Net earnings (loss) | (782) | (782) | |||||
Balance ending at Dec. 31, 2020 | $ 32 | $ 50,263 | $ (32,392) | $ (69) | $ 17,834 | ||
Balance ending, shares at Dec. 31, 2020 | 400 | 3,203,455 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (782) | $ (1,100) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision (credit) for loan losses | 1,020 | (79) |
Depreciation and amortization | 176 | 173 |
Stock-based compensation | 219 | 201 |
Net (accretion) amortization of fees, premiums and discounts | (37) | 203 |
Loss on sale of premises and equipment, net | 215 | |
Loss on sale of foreclosed real estate, net | 7 | |
Increase in accrued interest receivable | (904) | (118) |
Amortization of right-of-use operating lease assets | 151 | 89 |
Net decrease in operating lease liabilities | (138) | (83) |
Increase in other assets | (172) | (235) |
(Decrease) increase in official checks and other liabilities | (998) | 176 |
Net cash used in operating activities | (1,458) | (558) |
Cash flows from investing activities: | ||
Purchase of debt securities available for sale | (15,720) | (4,158) |
Principal repayments of debt securities available for sale | 2,220 | 1,106 |
Principal repayments of debt securities held-to-maturity | 2,473 | 1,379 |
Net increase in loans | (51,771) | (23,983) |
Proceeds from sale of foreclosed real estate | 674 | |
Purchases of premises and equipment | (200) | (509) |
Proceeds from sale of premises and equipment | 350 | |
(Purchase) redemption of FHLB stock | (450) | 490 |
Net cash used in investing activities | (62,774) | (25,325) |
Cash flows from financing activities: | ||
Net increase in deposits | 89,387 | 38,994 |
Net decrease in federal funds purchased | (560) | |
Net increase (decrease) in Federal Home Loan Bank advances | 10,000 | (11,600) |
Proceeds from sale of common stock | 540 | |
Proceeds from sale of preferred stock | 10,000 | |
Net cash provided by financing activities | 109,927 | 26,834 |
Net increase in cash and cash equivalents | 45,695 | 951 |
Cash and cash equivalents at beginning of the year | 8,934 | 7,983 |
Cash and cash equivalents at end of the year | 54,629 | 8,934 |
Supplemental disclosure of cash flow information: | ||
Interest | 2,681 | 1,756 |
Income taxes | ||
Noncash transaction - | ||
Change in accumulated other comprehensive loss, net change in unrealized gain on debt securities available for sale, net of income taxes | 136 | 125 |
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 140 | 93 |
Premises and equipment transferred to loans | 1,050 | |
Common stock issued and reclassified from other liabilities | 31 | |
Right-of use lease assets obtained in exchange for operating lease liabilities | 1,144 | |
Issuance of common stock in exchange for Trust Preferred Securities | 514 | 2,644 |
Transfer of loan to foreclosed real estate | $ 681 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Organization. Basis of Presentation. Subsequent Events. Coronavirus Global Pandemic (“COVID-19”). Junior Subordinated Debenture The Trust utilized the proceeds of $5,155,000 to purchase a junior subordinated debenture from the Company (the “Junior Subordinated Debenture”). Under the Junior Subordinated Debenture, the Company is required to make interest payments on a periodic basis and to pay the outstanding principal amount plus accrued interest on October 7, 2034. In May 2018, Preferred Shares, LLC (the “Purchaser”) acquired all 5,000 of the Trust Preferred Securities from a third party. The Purchaser is an affiliate of a director of the Company. The Purchaser has subsequently sold and/or transferred 3,087 of the Trust Preferred Securities to unaffiliated third parties. The Company had been in default under the Junior Subordinated Debenture due to the failure to pay interest since 2015. In September 2020, the Company paid approximately $1.1 million to the holders of the outstanding Trust Preferred Securities, which represented all accrued interest through September 2020 under the Junior Subordinated Debenture attributable to the Trust Preferred Securities that had not been cancelled. The coupon interest rate floats quarterly at the three-month LIBOR rate plus 2.45% (2.68% at December 31, 2020). During 2018, the Company issued 301,778 shares of the Company’s common stock in exchange for 694 Trust Preferred Securities. For accounting purposes, the Trust Preferred Securities acquired by the Company were deemed to be cancelled. As a result, the Company cancelled $694,000 in principal amount of the Trust Preferred Securities, together with accrued interest of $211,000, and increased its stockholders’ equity by the same amount. During 2019, the Company issued 924,395 shares of the Company’s common stock in exchange for 1,881 Trust Preferred Securities. For accounting purposes, the Trust Preferred Securities acquired by the Company were deemed to be cancelled. As a result, the Company cancelled $1,881,000 in principal amount of the Trust Preferred Securities, together with accrued interest of $763,000, and increased its stockholders’ equity by the same amount. During December 2020, the Company issued 171,500 shares of the Company’s common stock in exchange for 512 Trust Preferred Securities. For accounting purposes, the Trust Preferred Securities acquired by the Company were deemed to be cancelled. As a result, the Company cancelled $512,000 in principal amount of the Trust Preferred Securities, together with accrued interest of $2,000, and increased its stockholders’ equity by the same amount. The principal owed by the Company in connection with the Junior Subordinated Debenture was $2,068,000 at December 31, 2020 and $2,580,000 at December 31, 2019. The accrued interest owed by the Company associated with the Junior Subordinated Debenture was $30,000 and $995,000 at December 31, 2020, 2019 respectively. The accrued interest is presented on the accompanying consolidated balance sheet under the caption “Other liabilities”. 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 deposit with Federal Reserve Banks or in Pass-through accounts with other banks. This requirement is based on the amount of the Bank’s transaction deposit accounts. As of December 31, 2020, the Bank did not have a reserve requirement as the Federal Reserve Board lowered the requirements to zero for all depository institutions. At December 31, 2019, there were no required cash reserves. Debt Securities. Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. A debt security is impaired if the fair value is less than its carrying value at the financial statement date. When a debt 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 debt 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 debt 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 income. 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 debt 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: (1) changes in national, regional and local economic conditions that affect the collectability of the loan portfolio (2) changes in collateral value of loans (3) changes in lending policies and procedures, risk selection and underwriting standards (4) changes in the volume and severity of past due loans, nonaccrual loans or loans classified special mention, substandard, doubtful or loss (5) the existence and effect of any concentrations of credit and changes in the level of such concentrations (6) changes in the nature and volume of the loan portfolio and terms of loans, (7) changes in the experience, ability and depth of lending management and other relevant staff, (8) quality of loan review and Board of Director’s oversight, (9) the effect of other external factors, trends or uncertainties that could affect management’s estimate of probable losses, such as competition and industry conditions. 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. Leases. Preferred Securities of Unconsolidated Subsidiary Trust. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities of the Trust subject to the terms of the guarantee. Transfer of Financial Assets. Revenue Recognition. Service Charges on Deposit Accounts 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 are recorded as a component of income tax expense. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company and the Bank file a consolidated income tax return. Income taxes are allocated proportionately to the Company and the Bank as though separate income tax returns were filed. Advertising. Stock Compensation Plan. Loss Per Share. Year Ended December 31, 2020 2019 Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share 2,934,293 1,901,970 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: Debt Securities Available for Sale and Held to Maturity. Impaired Loans t Non-real Fair Values of Financial Instruments. Cash and Cash Equivalents. Debt Securities. Loans. Federal Home Loan Bank Stock. Accrued Interest Receivable. Deposit Liabilities. Federal Home Loan Bank Advances. Off-Balance-Sheet Financial Instruments. Comprehensive loss. Accumulated other comprehensive loss consists of the following (in thousands): 31-Dec-20 31-Dec-19 Unrealized gain on debt securities available for sale $ 50 $ 11 Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity (144 ) (284 ) Income tax benefit 25 68 $ (69 ) $ (205 ) Reclassifications. Recent Pronouncements |
Debt Securities
Debt Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities | (2) Debt Securities. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2020: Held-to-maturity: Collateralized mortgage obligations $ 2,420 $ 116 — $ 2,536 Mortgage-backed securities 979 34 — 1,013 Total $ 3,399 $ 150 — $ 3,549 Available for sale: SBA Pool Securities $ 1,338 $ — $ (41 ) $ 1,297 Collateralized mortgage obligations 458 27 — 485 Taxable municipal securities 5,063 29 (7 ) 5,085 Mortgage-backed securities 11,984 53 (11 ) 12,026 Total $ 18,843 $ 109 $ (59 ) $ 18,893 At December 31, 2019: Held-to-maturity: Collateralized mortgage obligations $ 4,218 $ 129 — $ 4,347 Mortgage-backed securities 1,588 51 — 1,639 Total $ 5,806 $ 180 — $ 5,986 Available for sale: SBA Pool Securities $ 1,734 $ — $ (52 ) $ 1,682 Collateralized mortgage obligations 998 18 — 1,016 Mortgage-backed securities 2,666 45 — 2,711 Total $ 5,398 $ 63 $ (52 ) $ 5,409 There were no sales of debt securities available for sale during the years ended December 31, 2020 and 2019. Debt securities with gross unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position, is as follows (in thousands): Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value At December 31, 2020: Available for Sale: SBA Pool Securities $ 41 $ 1,297 $ - $ - Taxable municipal securities $ - $ - $ 7 $ 1,413 Mortgage-backed securities $ - $ - $ 11 $ 3,583 Total 41 1,297 18 4,996 At December 31, 2019 — Available for Sale — SBA Pool Securities $ 52 1.682 - - Management evaluates debt 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, 2020 and 2019, the unrealized losses on eleven and six debt securities, respectively were caused by market conditions. It is expected that the debt 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. As of December 31, 2020, the Company had pledged securities with a market value of $230,000 as collateral for the Federal Reserve Bank (the “FRB”) discount window. The Company’s available-for-sale and held-to-maturity debt securities all have contractual maturity dates which are greater than ten years as of December 31, 2020. Expected maturities of these debt securities will differ from contractual maturities because borrowers have the right to call or repay obligations with or without call or prepayment penalties. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans | (3) Loans. At December 31, 2020 At December 31, 2019 Residential real estate $ 30,254 $ 28,266 Multi-family real estate 20,637 8,396 Commercial real estate 71,714 55,652 Land and construction 4,750 2,496 Commercial 21,849 4,476 Consumer 5,715 4,903 Total loans 154,919 104,189 (Deduct) add: Net deferred loan (fees), costs and premiums (544 ) 53 Allowance for loan losses (1,906 ) (2,009 ) Loans, net $ 152,469 $ 102,233 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. An analysis of the change in the allowance for loan losses for the years ended December 31, 2020 and 2019 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Year Ended December 31, 2020: Beginning balance 531 82 624 21 573 152 26 2,009 Provision (Credit) for loan losses 175 171 260 7 284 149 (26 ) 1,020 Charge-offs (259 ) — — — (775 ) (150 ) — (1,184 ) Recoveries 16 — — 24 21 — — 61 Ending balance $ 463 $ 253 $ 884 $ 52 $ 103 $ 151 $ — $ 1,906 Year Ended December 31, 2019: Beginning balance $ 544 88 545 37 850 25 154 2,243 (Credit) provision for loan losses (36 ) (6 ) 274 (40 ) (277 ) 134 (128 ) (79 ) Charge-offs — — (195 ) — — (7 ) — (202 ) Recoveries 23 — — 24 — — — 47 Ending balance $ 531 $ 82 $ 624 $ 21 $ 573 $ 152 $ 26 $ 2,009 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, 2020 and 2019 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At December 31, 2020: Individually evaluated for impairment: Recorded investment $ — $ — $ 2,193 $ — $ — $ — $ — $ 2,193 Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 30,254 $ 20,637 $ 69,521 $ 4,750 $ 21,849 $ 5,715 $ — $ 152,726 Balance in allowance for loan losses $ 463 $ 253 $ 884 $ 52 $ 103 $ 151 $ — $ 1,906 At December 31, 2019: Individually evaluated for impairment: Recorded investment $ 944 $ — $ 2,206 $ — $ 812 $ — $ — $ 3,962 Balance in allowance for loan losses $ 258 $ — $ — $ — $ 531 $ — $ — $ 789 Collectively evaluated for impairment: Recorded investment $ 27,322 $ 8,396 $ 53,446 $ 2,496 $ 3,664 $ 4,903 $ — $ 100,227 Balance in allowance for loan losses $ 273 $ 82 $ 624 $ 21 $ 42 $ 152 $ 26 $ 1,220 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, 2020: Residential real estate $ 29,408 $ — $ 846 $ — $ — $ 30,254 Multi-family real estate 20,637 — — — — 20,637 Commercial real estate 63,405 4,449 3,860 — — 71,714 Land and construction 4,750 — — — — 4,750 Commercial 20,735 1,114 — — — 21,849 Consumer 5,715 — — — — 5,715 Total $ 144,650 $ 5,563 $ 4,706 $ — $ — $ 154,919 At December 31, 2019: Residential real estate $ 27,322 $ — $ 944 $ — $ — $ 28,266 Multi-family real estate 8,396 — — — — 8,396 Commercial real estate 53,011 435 2,206 — — 55,652 Land and construction 1,261 1,235 — — — 2,496 Commercial 3,027 637 812 — — 4,476 Consumer 4,903 — — — — 4,903 Total $ 97,920 $ 2,307 $ 3,962 $ — $ — $ 104,189 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 – 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 as 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. Age analysis of past due loans at December 31, 2020 and 2019 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, 2020: Residential real estate $ 977 $ — $ — $ 977 $ 29,277 $ — $ 30,254 Multi-family real estate — — — — 20,637 — 20,637 Commercial real estate — — — — 69,521 2,193 71,714 Land and construction — — — — 4,750 — 4,750 Commercial — — — — 21,849 — 21,849 Consumer 6 — — 6 5,709 — 5,715 Total $ 983 $ — $ — $ 983 $ 151,743 $ 2,193 $ 154,919 At December 31, 2019: Residential real estate $ 944 $ — $ — $ 944 $ 27,322 $ — $ 28,266 Multi-family real estate — — — — 8,396 — 8,396 Commercial real estate — — — — 55,652 — 55,652 Land and construction 1,235 — — 1,235 1,261 — 2,496 Commercial — — — — 3,664 812 4,476 Consumer — — — — 4,903 — 4,903 Total $ 2,179 $ — $ — $ 2,179 $ 101,198 $ 812 $ 104,189 The following summarizes the amount of impaired loans (in thousands): At December 31, 2020 At December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial real estate $ 2,193 $ 2,193 — $ 2,206 $ 2,206 — With related allowance recorded: Residential real estate — — — 944 944 258 Commercial — — — 812 812 531 Total Residential real estate $ — $ — $ — $ 944 $ 944 $ 258 Commercial real estate $ 2,193 $ 2,193 $ — $ 2,206 $ 2,206 $ — Commercial $ — $ — $ — $ 812 $ 812 $ 531 Total $ 2,193 $ 2,193 $ — $ 3,962 $ 3,962 $ 789 The average recorded investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): For the Year Ended December 31, 2020 2019 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ 651 $ 18 $ 11 $ 949 $ 75 $ 69 Commercial real estate $ 2,194 $ 78 $ 60 $ 2,672 $ 115 $ 113 Commercial $ 499 $ — $ 18 $ 1,208 $ 43 $ 48 Total $ 3,344 $ 96 $ 89 $ 4,829 $ 233 $ 230 No loans have been determined to be troubled debt restructurings (TDR’s) during the year ended December 31, 2020 and 2019. At December 31, 2020 and 2019, there were no loans modified and entered into TDR’s within the past twelve months, that subsequently defaulted during the years ended December 31, 2020 or 2019. The Company has elected to account for eligible loan modifications under Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). To be eligible, a loan modification must be (1) related to the COVID-19 pandemic; (2) executed on a loan that was not more than thirty days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) sixty days after the date of termination of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”) or (B) December 31, 2020. Eligible loan modifications are not required to be classified as TDRs and will not be reported as past due provided that they are performing in accordance with the modified terms. Interest income will continue to be recognized in accordance with GAAP unless the loan is placed on nonaccrual status in accordance with the nonaccrual policy. During 2020, the Company executed short-term loan payment deferment modifications on certain loans. These modifications qualified as eligible loan modifications under Section 4013 of the CARES Act and therefore, were not required to be classified as TDRs and were not reported as past due. All of the loans that received short-term COVID-19 deferrals had reverted back to their original pre-modification terms and are being paid as agreed. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | (4) Premises and Equipment At December 31, 2020 2019 Land $ 426 $ 426 Buildings and improvements 654 654 Furniture, fixtures and equipment 730 664 Leasehold improvements 505 367 Total, at cost 2,315 2,111 Less accumulated depreciation and amortization (902 ) (722 ) Premises and equipment, net $ 1,413 $ 1,389 The Company sold one of its branch locations to a related party. The related party is a significant stockholder. The sale was completed in November 2019 for $1,400,000. The Company financed $1,050,000 of the total sales price. In connection with the sale, the Company recorded a loss in the consolidated statement of operations of $215,000 in November 2019. The Company entered into an operating lease agreement for the purpose of relocating the aforementioned branch. The lease for the new location commenced during September 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Leases | (5) Leases. For the year ended December 31, 2020 2019 Operating lease cost $ 171 $ 99 Cash paid for amounts included in measurement of lease liabilities $ 158 $ 93 At December 31, 2020 At December 31, 2019 Operating lease right-of-use assets $ 904 1,055 Operating lease liabilities $ 923 1,061 Weighted-average remaining lease term 7.4 years 8.4 years Weighted-average discount rate 2.1 % 2.1 % Future minimum lease payments under non-cancellable leases, reconciled to our discounted operating lease liabilities are as follows (in thousands): At December 31, 2020 2021 $ 163 2022 $ 161 2023 $ 92 2024 $ 94 2025 $ 91 Thereafter $ 397 Total future minimum lease payments $ 998 Less imputed interest $ (75 ) Total operating lease liability $ 923 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | (6) Deposits The aggregate amount of time deposits with a minimum denomination of $250,000 was approximately $2.5 million and $4.9 million at December 31, 2020 and 2019, respectively. A schedule of maturities of time deposits at December 31, 2020 follows (in thousands): Maturing Year Ending December 31, Amount 2021 $ 17,471 2022 3,040 2023 493 2024 252 2025 487 $ 21,743 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Available Credit | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Advances, Other Available Credit | (7) Federal Home Loan Bank Advances and Other Available Credit 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 2020 2019 2021 1.68 % $ 5,000 $ 5,000 2024 1.96 % 4,000 4,000 2025 1.08 % 10,000 — 2029 1.69 % 4,000 4,000 $ 23,000 $ 13,000 At December 31, 2020, one FHLB advance in the amount of $5.0 million had a fixed interest rate, and three FHLB Advances were structured advances with potential calls on a quarterly basis. FHLB advances are collateralized by a blanket lien requiring the Company to maintain certain first mortgage loans as pledged collateral. At Decmeber 31, 2020, the Company has remaining credit availability of $29.1 million which can be used if additional collateral is pledged. At December 31, 2020, the Company had loans pledged with a carrying value of $86.6 million as collateral for FHLB advances. At December 31, 2020, the Company also had lines of credit amounting to $9.5 million with four correspondent banks to purchase federal funds. The Company also has a line of credit with the Federal Reserve Bank under which the Company may draw up to $223,000. The line is secured by $230,000 in securities. At December 31, 2020 and 2019 there were no borrowings under these lines of credit. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 At December 31, 2019 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 54,629 $ 54,629 1 $ 8,934 $ 8,934 1 Debt Securities available for sale 18,893 18,893 2 5,409 5,409 2 Debt Securities held-to-maturity 3,399 3,549 2 5,806 5,986 2 Loans 152,469 153,276 3 102,233 102,060 3 Federal Home Loan Bank stock 1,092 1,092 3 642 642 3 Accrued interest receivable 1,336 1,336 3 432 432 3 Financial liabilities: Deposit liabilities 190,759 191,011 3 101,372 101,256 3 Federal Home Loan Bank advances 23,000 23,254 3 13,000 13,137 3 Junior subordinated debenture 2,068 N/A(1) 3 2,580 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 Note1 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 Company 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 Company 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, 2020 follows (in thousands): Commitments to extend credit $ 5,790 Unused lines of credit $ 9,624 Standby letters of credit $ 4,550 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes Income tax benefit consisted of the following (in thousands): Year Ended December 31, 2020 2019 Current: Federal $ — $ — State — — Total Current — — Deferred: Federal (161 ) (240 ) State (34 ) (50 ) Change in Valuation Allowance 195 238 Total Deferred — (52 ) Total $ — $ (52 ) 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, 2020 2019 Amount % of Pretax Loss Amount % of Pretax Loss Income tax benefit at statutory rate $ (164 ) 21 % $ (242 ) 21 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit (34 ) 4.4 % (50 ) 4.3 % Other permanent differences 3 (0.4 )% 2 (0.2 )% Change in valuation allowance 195 (25 )% 238 (20.7 )% $ — 0 % $ (52 ) 4.4 % 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, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 4,284 $ 4299 Premises and equipment 60 65 Nonaccrual loan interest 40 51 Lease Liability 234 269 Unrealized gain on debt securities 25 68 Other — 1 4,643 4,753 Less: Valuation allowance 4,005 3,810 Total deferred tax assets 638 943 Deferred tax liabilities: Allowance for loan losses (283 ) (541 ) Right of use lease assets (229 ) (267 ) Loan costs (101 ) (67 ) Total deferred tax liabilities (613 ) (875 ) Net deferred tax asset $ 25 $ 68 During the years ended December 31, 2020 and 2019, 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, 2020 and 2019, the net deferred tax asset of $25,000 and $68,000, respectively, was presented under the caption “other assets” on the accompanying consolidated balance sheets. At December 31, 2020, the Company had net operating loss carryforwards of approximately $16.9 million for Federal and 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 (“IRC”) 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 2017. 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 a change in unrecognized tax benefits in the next 12 months. 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 2017. 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 a change in unrecognized tax benefits in the next year. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (10) Related Party Transactions The Company has entered into transactions with its executive officers, directors and their affiliates in the ordinary course of business. During 2020, the Company incurred approximately $44,000 in legal fees payable to a law firm owned by a director. At December 31, 2020 and 2019, related parties had approximately $36,000,000 and $828,000, respectively, on deposit with the Company. At December 31, 2020, all of the outstanding Trust Preferred Securities were held by a company affiliated with a director of the Company. At December 31, 2020 and 2019, related party loans totaled $1,100,000 and $1,000,000, respectively. As disclosed in Note 4, the Company sold one of its branch locations to a related party. As discussed in Note 18, during 2020, the Company issued 400 shares of preferred stock to a related party at a cash price of $25,000 per share, or an aggregate of $10 million. The related party is a significant common stockholder. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (11) Stock-Based Compensation The Company is authorized to grant stock options, stock grants and other forms of equity-based compensation under its 2018 Equity Incentive Plan, as amended, (the “Plan”). The plan has been approved by the shareholders. The Company is authorized to issue up to 550,000 shares of common stock under the 2018 Plan, of which 237,792 have been issued, and 312,208 shares remain available for grant. During the year ended December 31, 2019, the Company recorded compensation expense of $201,000 with respect to 58,309 shares issued to a director for services performed. During the year ended December 31, 2020, the Company recorded compensation expense of $219,000 with respect to 80,602 shares issued to a director and an executive officer for services performed. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Regulatory Matters | (12) Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts, and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In 2019, the federal banking agencies jointly issued a final rule that provides for an optional, simplified measure of capital adequacy, the community bank leverage ratio framework (CBLR framework), for qualifying community banking organizations. The final rule became effective on January 1, 2020 and was elected by the Bank. In April 2020, the federal banking agencies issued an interim final rule that makes temporary changes to the CBLR framework, pursuant to section 4012 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and a second interim final rule that provides a graduated increase in the community bank leverage ratio requirement after the expiration of the temporary changes implemented pursuant to section 4012 of the CARES Act. The community bank leverage ratio removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying community banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than required minimums will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) and, if applicable, will be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. Under the interim final rules, the community bank leverage ratio minimum requirement is 8% as of December 31, 2020, 8.5% for calendar year 2021, and 9% for calendar year 2022 and beyond. The interim rule allows for a two-quarter grace period to correct a ratio that falls below the required amount, provided that the Bank maintains a leverage ratio of 7% as of December 31, 2020, 7.5% for calendar year 2021, and 8% for calendar year 2022 and beyond. Under the final rule, an eligible community banking organization can opt out of the CBLR framework and revert back to the risk-weighting framework without restriction. Management believes, as of December 31, 2020, that the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and percentages are presented in the table ($ in thousands): Actual To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) Amount % Amount % As of December 31, 2020: Tier I Capital to Total Assets 19,261 9.00 % 17,116 8.00 % Actual For Capital Adequacy Purposes Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount % Amount % Amount % As of December 31, 2019: Total Capital to Risk-Weighted Assets $ 12,212 12.03 % $ 8,124 8.00 % $ 10,154 10.00 % Tier I Capital to Risk-Weighted Assets 10,934 10.77 6,093 6.00 8,124 8.00 Common equity Tier I capital to Risk-Weighted Assets 10,934 10.77 4,569 4.50 6,600 6.50 Tier I Capital to Total Assets 10,934 8.73 5,010 4.00 6,263 5.00 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Dividends [Abstract] | |
Dividends | (13) 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 Company. The amount of cash dividends that may be paid by the Bank to the 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. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | (14) 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, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Plans | (15) 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, 2020 or 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (16) Fair Value Measurement There were no impaired collateral dependent loans measured at fair value on a nonrecurring basis of December 31, 2020. Impaired collateral-dependent loans measured at fair value on a nonrecurring basis were as follows at December 31, 2019 (in thousands): Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations For the Year Ended December 31, 2019 Residential real estate $ 686 $ — $ — $ 686 $ 258 $ — Debt securities available for sale 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, 2020: SBA Pool Securities $ 1,297 $ — $ 1,297 $ — Collateralized mortgage obligations 485 — 485 — State and political subdivision 5,085 — 5,085 Mortgage-backed securities 12,026 — 12,026 — Total $ 18,893 — 18,893 — At December 31, 2019: SBA Pool Securities $ 1,682 $ — $ 1,682 $ — Collateralized mortgage obligations 1,016 — 1,016 — Mortgage-backed securities 2,711 — 2,711 — Total $ 5,409 — $ 5,409 $ — During the years ended December 31, 2020 and 2019, no debt securities were transferred in or out of Level 3. |
Company Unconsolidated Financia
Company Unconsolidated Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Company Unconsolidated Financial Information | (17) Company Unconsolidated Financial Information The Company’s unconsolidated financial information as of December 31, 2020 and 2019 and for the years then ended follows (in thousands): Condensed Balance Sheets At December 31, 2020 2019 Assets Cash $ 123 $ 10 Investment in subsidiary 19,193 10,730 Other assets 642 167 Total assets $ 19,958 $ 10,907 Liabilities and Stockholders’ Equity Other liabilities $ 56 $ 1,120 Junior subordinated debenture 2,068 2,580 Stockholders’ equity 17,834 7,207 Total liabilities and stockholders’ equity $ 19,958 $ 10,907 Condensed Statements of Operations Year Ended December 31, 2020 2019 Loss of subsidiary $ (43 ) $ (246 ) Interest expense (122 ) (294 ) Other expense (617 ) (560 ) Net loss $ (782 ) $ (1,100 ) Condensed Statements of Cash Flows Year Ended December 31, 2020 2019 Cash flows from operating activities: Net loss $ (782 ) $ (1,100 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 219 201 Equity in undistributed loss of subsidiary 43 246 (Decrease) increase in other liabilities (1,062 ) 387 (Increase) decrease in other assets (475 ) 31 Net cash used in operating activities (2,057 ) (235 ) Cash flow from investing activities – Capital infusion to bank subsidiary (8,370 ) — Cash flow from financing activities: Proceeds from sale of preferred stock 10,000 — Proceeds from sale of common stock 540 — Cash provided by financing activities 10,540 — Net increase (decrease) in cash 113 (235 ) Cash at beginning of the year 10 245 Cash at end of year $ 123 $ 10 Noncash transactions: Change in accumulated other comprehensive loss of subsidiary, net change in unrealized gain on debt securities available for sale, net of income taxes $ 136 $ 125 Common stock issued and reclassified from other liabilities — 31 Issuance of common stock in exchange for Trust Preferred Securities $ 514 $ 2,644 |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Preferred Stock | (18) Preferred Stock During 2020, the Company issued 400 shares of Series B Participating Preferred Stock (the “Series B Preferred Stock”) to a related party at a cash price of $25,000 per share, or an aggregate of $10,000,000. The related party is a significant common stockholder. The Preferred Stock has no par value. Except in the case of liquidation, if the Company declares or pays a dividend or distribution on the common stock, the Company shall simultaneously declare and pay a dividend on the Series B Preferred Stock on a pro rata basis with the common stock determined on an as-converted basis assuming all shares of Series B Preferred Stock had been converted immediately prior to the record date of the applicable dividend. The Preferred Stock is convertible into 4,000,000 shares of common stock, at the option of the Company, subject to the prior fulfilment of the following conditions: (i) such conversion shall have been by approved by the holders of a majority of the outstanding common stock of the Company; and (ii) such conversion shall not result in any holder of the Series B Preferred Stock and any persons with whom the holder may be acting in concert, becoming beneficial owners of more than 9.9% of the outstanding shares of the common stock. The number of shares issuable upon conversion is subject to adjustment based on the terms of the amended Certificate of Designation in the Amendment to the Company’s Articles of Incorporation filed on December 28, 2020 (the “Certificate of Designation”) The Preferred Stock has preferential liquidation rights over common stockholders and holders of junior securities. The liquidation price is the greater of $25,000 per share of preferred stock or such amount per share of preferred stock that would have been payable had all shares of the preferred stock been converted into common stock per the terms of the Certificate of Designation immediately prior to a liquidation. The Preferred Stock generally has no voting rights except as provided in the Certificate of Designation |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | Organization. |
Basis of Presentation | Basis of Presentation. |
Subsequent Events | Subsequent Events. |
Coronavirus Global Pandemic ("COVID-19") | Coronavirus Global Pandemic (“COVID-19”). |
Junior Subordinated Debenture | Junior Subordinated Debenture The Trust utilized the proceeds of $5,155,000 to purchase a junior subordinated debenture from the Company (the “Junior Subordinated Debenture”). Under the Junior Subordinated Debenture, the Company is required to make interest payments on a periodic basis and to pay the outstanding principal amount plus accrued interest on October 7, 2034. In May 2018, Preferred Shares, LLC (the “Purchaser”) acquired all 5,000 of the Trust Preferred Securities from a third party. The Purchaser is an affiliate of a director of the Company. The Purchaser has subsequently sold and/or transferred 3,087 of the Trust Preferred Securities to unaffiliated third parties. The Company had been in default under the Junior Subordinated Debenture due to the failure to pay interest since 2015. In September 2020, the Company paid approximately $1.1 million to the holders of the outstanding Trust Preferred Securities, which represented all accrued interest through September 2020 under the Junior Subordinated Debenture attributable to the Trust Preferred Securities that had not been cancelled. The coupon interest rate floats quarterly at the three-month LIBOR rate plus 2.45% (2.68% at December 31, 2020). During 2018, the Company issued 301,778 shares of the Company’s common stock in exchange for 694 Trust Preferred Securities. For accounting purposes, the Trust Preferred Securities acquired by the Company were deemed to be cancelled. As a result, the Company cancelled $694,000 in principal amount of the Trust Preferred Securities, together with accrued interest of $211,000, and increased its stockholders’ equity by the same amount. During 2019, the Company issued 924,395 shares of the Company’s common stock in exchange for 1,881 Trust Preferred Securities. For accounting purposes, the Trust Preferred Securities acquired by the Company were deemed to be cancelled. As a result, the Company cancelled $1,881,000 in principal amount of the Trust Preferred Securities, together with accrued interest of $763,000, and increased its stockholders’ equity by the same amount. During December 2020, the Company issued 171,500 shares of the Company’s common stock in exchange for 512 Trust Preferred Securities. For accounting purposes, the Trust Preferred Securities acquired by the Company were deemed to be cancelled. As a result, the Company cancelled $512,000 in principal amount of the Trust Preferred Securities, together with accrued interest of $2,000, and increased its stockholders’ equity by the same amount. The remaining principal owed by the Company in connection with the Junior Subordinated Debenture was $2,068,000 at December 31, 2020 and $2,580,000 at December 31, 2019. The accrued interest owed by the Company associated with the Junior Subordinated Debenture was $30,000 and $995,000 at December 31, 2020, 2019 respectively. The accrued interest is presented on the accompanying consolidated balance sheet under the caption “Other liabilities”. |
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 deposit with Federal Reserve Banks or in Pass-through accounts with other banks. This requirement is based on the amount of the Bank’s transaction deposit accounts. As of December 31, 2020, the Bank did not have a reserve requirement as the Federal Reserve Board lowered the requirements to zero for all depository institutions. At December 31, 2019, there were no required cash reserves. |
Debt Securities | Debt Securities. Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. A debt security is impaired if the fair value is less than its carrying value at the financial statement date. When a debt 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 debt 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 debt 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 income. 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 debt 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: (1) changes in national, regional and local economic conditions that affect the collectability of the loan portfolio (2) changes in collateral value of loans (3) changes in lending policies and procedures, risk selection and underwriting standards (4) changes in the volume and severity of past due loans, nonaccrual loans or loans classified special mention, substandard, doubtful or loss (5) the existence and effect of any concentrations of credit and changes in the level of such concentrations (6) changes in the nature and volume of the loan portfolio and terms of loans, (7) changes in the experience, ability and depth of lending management and other relevant staff, (8) quality of loan review and Board of Director’s oversight, (9) the effect of other external factors, trends or uncertainties that could affect management’s estimate of probable losses, such as competition and industry conditions. 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. |
Leases | Leases. |
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 Trust subject to the terms of the guarantee. |
Transfer of Financial Assets | Transfer of Financial Assets. |
Revenue Recognition | Revenue Recognition. |
Service Charges on Deposit Accounts | Service Charges on Deposit Accounts |
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 are recorded as a component of income tax expense. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company and the Bank file a consolidated income tax return. Income taxes are allocated proportionately to the Company and the Bank as though separate income tax returns were filed. |
Advertising | Advertising. |
Stock Compensation Plan | Stock Compensation Plan. |
Loss Per Share | Loss Per Share. Year Ended December 31, 2020 2019 Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share 2,934,293 1,901,970 |
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: Debt Securities Available for Sale and Held to Maturity. Impaired Loans t Non-real |
Fair Values of Financial Instruments | Fair Values of Financial Instruments. Cash and Cash Equivalents. Debt 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. Accumulated other comprehensive loss consists of the following (in thousands): 31-Dec-20 31-Dec-19 Unrealized gain on debt securities available for sale $ 50 $ 11 Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity (144 ) (284 ) Income tax benefit 25 68 $ (69 ) $ (205 ) |
Reclassifications | Reclassifications. |
Recent Pronouncements | Recent Pronouncements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Common Shares Outstanding | In 2020 and 2019, basic and diluted loss per share is the same due to the net loss incurred by the Company. Loss per common share has been computed based on the following: Year Ended December 31, 2020 2019 Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share 2,934,293 1,901,970 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): 31-Dec-20 31-Dec-19 Unrealized gain on debt securities available for sale $ 50 $ 11 Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity (144 ) (284 ) Income tax benefit 25 68 $ (69 ) $ (205 ) |
Debt Securities (Tables)
Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Values of Debt Securities | The carrying amount of debt securities and approximate fair values are as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2020: Held-to-maturity: Collateralized mortgage obligations $ 2,420 $ 116 — $ 2,536 Mortgage-backed securities 979 34 — 1,013 Total $ 3,399 $ 150 — $ 3,549 Available for sale: SBA Pool Securities $ 1,338 $ — $ (41 ) $ 1,297 Collateralized mortgage obligations 458 27 — 485 Taxable municipal securities 5,063 29 (7 ) 5,085 Mortgage-backed securities 11,984 53 (11 ) 12,026 Total $ 18,843 $ 109 $ (59 ) $ 18,893 At December 31, 2019: Held-to-maturity: Collateralized mortgage obligations $ 4,218 $ 129 — $ 4,347 Mortgage-backed securities 1,588 51 — 1,639 Total $ 5,806 $ 180 — $ 5,986 Available for sale: SBA Pool Securities $ 1,734 $ — $ (52 ) $ 1,682 Collateralized mortgage obligations 998 18 — 1,016 Mortgage-backed securities 2,666 45 — 2,711 Total $ 5,398 $ 63 $ (52 ) $ 5,409 |
Schedule of Debt Securities with Gross Unrealized Losses, by Investment Category | Debt securities with gross unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position, is as follows (in thousands): Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value At December 31, 2020: Available for Sale: SBA Pool Securities $ 41 $ 1,297 $ - $ - Taxable municipal securities $ - $ - $ 7 $ 1,413 Mortgage-backed securities $ - $ - $ 11 $ 3,583 Total 41 1,297 18 4,996 At December 31, 2019 — Available for Sale — SBA Pool Securities $ 52 1.682 - - |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Components of Loans | The components of loans are as follows (in thousands): At December 31, 2020 At December 31, 2019 Residential real estate $ 30,254 $ 28,266 Multi-family real estate 20,637 8,396 Commercial real estate 71,714 55,652 Land and construction 4,750 2,496 Commercial 21,849 4,476 Consumer 5,715 4,903 Total loans 154,919 104,189 (Deduct) add: Net deferred loan (fees), costs and premiums (544 ) 53 Allowance for loan losses (1,906 ) (2,009 ) Loans, net $ 152,469 $ 102,233 |
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, 2020 and 2019 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Year Ended December 31, 2020: Beginning balance 531 82 624 21 573 152 26 2,009 Provision (Credit) for loan losses 175 171 260 7 284 149 (26 ) 1,020 Charge-offs (259 ) — — — (775 ) (150 ) — (1,184 ) Recoveries 16 — — 24 21 — — 61 Ending balance $ 463 $ 253 $ 884 $ 52 $ 103 $ 151 $ — $ 1,906 Year Ended December 31, 2019: Beginning balance $ 544 88 545 37 850 25 154 2,243 (Credit) provision for loan losses (36 ) (6 ) 274 (40 ) (277 ) 134 (128 ) (79 ) Charge-offs — — (195 ) — — (7 ) — (202 ) Recoveries 23 — — 24 — — — 47 Ending balance $ 531 $ 82 $ 624 $ 21 $ 573 $ 152 $ 26 $ 2,009 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, 2020 and 2019 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At December 31, 2020: Individually evaluated for impairment: Recorded investment $ — $ — $ 2,193 $ — $ — $ — $ — $ 2,193 Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 30,254 $ 20,637 $ 69,521 $ 4,750 $ 21,849 $ 5,715 $ — $ 152,726 Balance in allowance for loan losses $ 463 $ 253 $ 884 $ 52 $ 103 $ 151 $ — $ 1,906 At December 31, 2019: Individually evaluated for impairment: Recorded investment $ 944 $ — $ 2,206 $ — $ 812 $ — $ — $ 3,962 Balance in allowance for loan losses $ 258 $ — $ — $ — $ 531 $ — $ — $ 789 Collectively evaluated for impairment: Recorded investment $ 27,322 $ 8,396 $ 53,446 $ 2,496 $ 3,664 $ 4,903 $ — $ 100,227 Balance in allowance for loan losses $ 273 $ 82 $ 624 $ 21 $ 42 $ 152 $ 26 $ 1,220 |
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, 2020: Residential real estate $ 29,408 $ — $ 846 $ — $ — $ 30,254 Multi-family real estate 20,637 — — — — 20,637 Commercial real estate 63,405 4,449 3,860 — — 71,714 Land and construction 4,750 — — — — 4,750 Commercial 20,735 1,114 — — — 21,849 Consumer 5,715 — — — — 5,715 Total $ 144,650 $ 5,563 $ 4,706 $ — $ — $ 154,919 At December 31, 2019: Residential real estate $ 27,322 $ — $ 944 $ — $ — $ 28,266 Multi-family real estate 8,396 — — — — 8,396 Commercial real estate 53,011 435 2,206 — — 55,652 Land and construction 1,261 1,235 — — — 2,496 Commercial 3,027 637 812 — — 4,476 Consumer 4,903 — — — — 4,903 Total $ 97,920 $ 2,307 $ 3,962 $ — $ — $ 104,189 |
Schedule of Age Analysis of Past-due Loans | Age analysis of past due loans at December 31, 2020 and 2019 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, 2020: Residential real estate $ 977 $ — $ — $ 977 $ 29,277 $ — $ 30,254 Multi-family real estate — — — — 20,637 — 20,637 Commercial real estate — — — — 69,521 2,193 71,714 Land and construction — — — — 4,750 — 4,750 Commercial — — — — 21,849 — 21,849 Consumer 6 — — 6 5,709 — 5,715 Total $ 983 $ — $ — $ 983 $ 151,743 $ 2,193 $ 154,919 At December 31, 2019: Residential real estate $ 944 $ — $ — $ 944 $ 27,322 $ — $ 28,266 Multi-family real estate — — — — 8,396 — 8,396 Commercial real estate — — — — 55,652 — 55,652 Land and construction 1,235 — — 1,235 1,261 — 2,496 Commercial — — — — 3,664 812 4,476 Consumer — — — — 4,903 — 4,903 Total $ 2,179 $ — $ — $ 2,179 $ 101,198 $ 812 $ 104,189 |
Schedule of Impaired Loans | The following summarizes the amount of impaired loans (in thousands): At December 31, 2020 At December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial real estate $ 2,193 $ 2,193 — $ 2,206 $ 2,206 — With related allowance recorded: Residential real estate — — — 944 944 258 Commercial — — — 812 812 531 Total Residential real estate $ — $ — $ — $ 944 $ 944 $ 258 Commercial real estate $ 2,193 $ 2,193 $ — $ 2,206 $ 2,206 $ — Commercial $ — $ — $ — $ 812 $ 812 $ 531 Total $ 2,193 $ 2,193 $ — $ 3,962 $ 3,962 $ 789 |
Schedule of Interest Income Recognized and Received on Impaired Loans | The average recorded investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): For the Year Ended December 31, 2020 2019 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ 651 $ 18 $ 11 $ 949 $ 75 $ 69 Commercial real estate $ 2,194 $ 78 $ 60 $ 2,672 $ 115 $ 113 Commercial $ 499 $ — $ 18 $ 1,208 $ 43 $ 48 Total $ 3,344 $ 96 $ 89 $ 4,829 $ 233 $ 230 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | At December 31, 2020 2019 Land $ 426 $ 426 Buildings and improvements 654 654 Furniture, fixtures and equipment 730 664 Leasehold improvements 505 367 Total, at cost 2,315 2,111 Less accumulated depreciation and amortization (902 ) (722 ) Premises and equipment, net $ 1,413 $ 1,389 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Schedule of Components of Lease Cost | For the year ended December 31, 2020 2019 Operating lease cost $ 171 $ 99 Cash paid for amounts included in measurement of lease liabilities $ 158 $ 93 |
Schedule of Operating Lease Liability | At December 31, 2020 At December 31, 2019 Operating lease right-of-use assets $ 904 1,055 Operating lease liabilities $ 923 1,061 Weighted-average remaining lease term 7.4 years 8.4 years Weighted-average discount rate 2.1 % 2.1 % |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | Future minimum lease payments under non-cancellable leases, reconciled to our discounted operating lease liabilities are as follows (in thousands): At December 31, 2020 2021 $ 163 2022 $ 161 2023 $ 92 2024 $ 94 2025 $ 91 Thereafter $ 397 Total future minimum lease payments $ 998 Less imputed interest $ (75 ) Total operating lease liability $ 923 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | A schedule of maturities of time deposits at December 31, 2020 follows (in thousands): Maturing Year Ending December 31, Amount 2021 $ 17,471 2022 3,040 2023 493 2024 252 2025 487 $ 21,743 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances and Other Available Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2021 1.68 % $ 5,000 $ 5,000 2024 1.96 % 4,000 4,000 2025 1.08 % 10,000 — 2029 1.69 % 4,000 4,000 $ 23,000 $ 13,000 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 At December 31, 2019 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 54,629 $ 54,629 1 $ 8,934 $ 8,934 1 Debt Securities available for sale 18,893 18,893 2 5,409 5,409 2 Debt Securities held-to-maturity 3,399 3,549 2 5,806 5,986 2 Loans 152,469 153,276 3 102,233 102,060 3 Federal Home Loan Bank stock 1,092 1,092 3 642 642 3 Accrued interest receivable 1,336 1,336 3 432 432 3 Financial liabilities: Deposit liabilities 190,759 191,011 3 101,372 101,256 3 Federal Home Loan Bank advances 23,000 23,254 3 13,000 13,137 3 Junior subordinated debenture 2,068 N/A(1) 3 2,580 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 Note1 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, 2020 follows (in thousands): Commitments to extend credit $ 5,790 Unused lines of credit $ 9,624 Standby letters of credit $ 4,550 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Benefit | Income tax benefit consisted of the following (in thousands): Year Ended December 31, 2020 2019 Current: Federal $ — $ — State — — Total Current — — Deferred: Federal (161 ) (240 ) State (34 ) (50 ) Change in Valuation Allowance 195 238 Total Deferred — (52 ) Total $ — $ (52 ) |
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, 2020 2019 Amount % of Pretax Loss Amount % of Pretax Loss Income tax benefit at statutory rate $ (164 ) 21 % $ (242 ) 21 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit (34 ) 4.4 % (50 ) 4.3 % Other permanent differences 3 (0.4 )% 2 (0.2 )% Change in valuation allowance 195 (25 )% 238 (20.7 )% $ — 0 % $ (52 ) 4.4 % |
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, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 4,284 $ 4299 Premises and equipment 60 65 Nonaccrual loan interest 40 51 Lease Liability 234 269 Unrealized gain on debt securities 25 68 Other — 1 4,643 4,753 Less: Valuation allowance 4,005 3,810 Total deferred tax assets 638 943 Deferred tax liabilities: Allowance for loan losses (283 ) (541 ) Right of use lease assets (229 ) (267 ) Loan costs (101 ) (67 ) Total deferred tax liabilities (613 ) (875 ) Net deferred tax asset $ 25 $ 68 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Schedule of Capital Amounts, Ratios and Regulatory Thresholds | Management believes, as of December 31, 2020, that the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and percentages are presented in the table ($ in thousands): Actual To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) Amount % Amount % As of December 31, 2020: Tier I Capital to Total Assets 19,261 9.00 % 17,116 8.00 % Actual For Capital Adequacy Purposes Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount % Amount % Amount % As of December 31, 2019: Total Capital to Risk-Weighted Assets $ 12,212 12.03 % $ 8,124 8.00 % $ 10,154 10.00 % Tier I Capital to Risk-Weighted Assets 10,934 10.77 6,093 6.00 8,124 8.00 Common equity Tier I capital to Risk-Weighted Assets 10,934 10.77 4,569 4.50 6,600 6.50 Tier I Capital to Total Assets 10,934 8.73 5,010 4.00 6,263 5.00 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured on Nonrecurring Basis | There were no impaired collateral dependent loans measured at fair value on a nonrecurring basis of December 31, 2020. Impaired collateral-dependent loans measured at fair value on a nonrecurring basis were as follows at December 31, 2019 (in thousands): Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations For the Year Ended December 31, 2019 Residential real estate $ 686 $ — $ — $ 686 $ 258 $ — |
Schedule of Debt Securities Available-for-sale Measured at Fair Value on Recurring Basis | Debt securities available for sale 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, 2020: SBA Pool Securities $ 1,297 $ — $ 1,297 $ — Collateralized mortgage obligations 485 — 485 — State and political subdivision 5,085 — 5,085 Mortgage-backed securities 12,026 — 12,026 — Total $ 18,893 — 18,893 — At December 31, 2019: SBA Pool Securities $ 1,682 $ — $ 1,682 $ — Collateralized mortgage obligations 1,016 — 1,016 — Mortgage-backed securities 2,711 — 2,711 — Total $ 5,409 — $ 5,409 $ — |
Company Uncultivated Financial
Company Uncultivated Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | The Company’s unconsolidated financial information as of December 31, 2020 and 2019 and for the years then ended follows (in thousands): Condensed Balance Sheets At December 31, 2020 2019 Assets Cash $ 123 $ 10 Investment in subsidiary 19,193 10,730 Other assets 642 167 Total assets $ 19,958 $ 10,907 Liabilities and Stockholders’ Equity Other liabilities $ 56 $ 1,120 Junior subordinated debenture 2,068 2,580 Stockholders’ equity 17,834 7,207 Total liabilities and stockholders’ equity $ 19,958 $ 10,907 |
Schedule of Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, 2020 2019 Loss of subsidiary $ (43 ) $ (246 ) Interest expense (122 ) (294 ) Other expense (617 ) (560 ) Net loss $ (782 ) $ (1,100 ) |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, 2020 2019 Cash flows from operating activities: Net loss $ (782 ) $ (1,100 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 219 201 Equity in undistributed loss of subsidiary 43 246 (Decrease) increase in other liabilities (1,062 ) 387 (Increase) decrease in other assets (475 ) 31 Net cash used in operating activities (2,057 ) (235 ) Cash flow from investing activities – Capital infusion to bank subsidiary (8,370 ) — Cash flow from financing activities: Proceeds from sale of preferred stock 10,000 — Proceeds from sale of common stock 540 — Cash provided by financing activities 10,540 — Net increase (decrease) in cash 113 (235 ) Cash at beginning of the year 10 245 Cash at end of year $ 123 $ 10 Noncash transactions: Change in accumulated other comprehensive loss of subsidiary, net change in unrealized gain on debt securities available for sale, net of income taxes $ 136 $ 125 Common stock issued and reclassified from other liabilities — 31 Issuance of common stock in exchange for Trust Preferred Securities $ 514 $ 2,644 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | May 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2004 | |
Ownership percentage | 100.00% | |||||
Junior subordinated debenture | $ 2,068 | $ 2,580 | ||||
Number of stock cancelled during the period | 512 | 1,881 | ||||
Accrued and unpaid interest payable | $ 2 | 763 | ||||
Income tax examination, likelihood of unfavorable settlement | 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. | |||||
Advertising expense | $ 10 | 18 | ||||
Federal Home Loan Bank Stock [Member] | ||||||
Redemption price per share | $ 100 | |||||
Common Stock [Member] | ||||||
Proceeds from issuance of preferred securities | $ 155 | |||||
Junior Subordinated Debenture [Member] | ||||||
Repayments of interest | $ 1,100 | |||||
Debt interest rate terms | The coupon interest rate floats quarterly at the three-month LIBOR rate plus 2.45% (2.68% at December 31, 2020). | |||||
Accrued and unpaid interest payable | $ 30 | 995 | ||||
Debt instrument periodic payment, principal | $ 2,068 | $ 2,580 | ||||
Trust Preferred Securities [Member] | ||||||
Conversion of stock, shares converted | 171,500 | 924,395 | 301,778 | |||
Third Party [Member] | ||||||
Number of trust preferred securities issued | 5,000 | |||||
Number of common trust securities issued | 3,087 | |||||
Holders [Member] | Trust Preferred Securities [Member] | ||||||
Conversion of stock, shares converted | 512 | 1,881 | 694 | |||
Number of stock cancelled during the period | $ 694 | |||||
Accrued and unpaid interest payable | $ 211 | |||||
Optimum Bank Holdings Capital Trust I [Member] | ||||||
Proceeds from issuance of preferred securities | $ 5,000 | $ 5,155 | ||||
Number of trust preferred securities issued | 5,000 | |||||
Number of common trust securities issued | 155 | |||||
Junior subordinated debenture | $ 5,155 | |||||
Debt instrument maturity date | Oct. 7, 2034 | |||||
Common interest to acquire junior subordinated debenture issued, value | $ 5,155 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Weighted Average Number of Common Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share | 2,934,293 | 1,901,970 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Unrealized loss on securities available for sale | $ 50 | $ 11 |
Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity | (144) | (284) |
Income tax benefit | 25 | 68 |
Accumulated other comprehensive loss | $ (69) | $ (205) |
Debt Securities (Details Narrat
Debt Securities (Details Narrative) | Dec. 31, 2020USD ($)Number | Dec. 31, 2019Number |
Debt securities in unrealized loss position | Number | 11 | 6 |
Federal Reserve Bank [Member] | ||
Securities pledged, market value | $ | $ 230,000 |
Debt Securities - Schedule of A
Debt Securities - Schedule of Amortized Cost and Approximate Fair Values of Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Held-to-maturity, amortized cost | $ 3,399 | $ 5,806 |
Held-to-maturity, gross unrealized gains | 150 | 180 |
Held-to-maturity, gross unrealized losses | ||
Held-to-maturity, fair value | 3,549 | 5,986 |
Available for sale, amortized cost | 18,843 | 5,398 |
Available for sale, gross unrealized gains | 109 | 63 |
Available for sale, gross unrealized losses | (59) | (52) |
Available for sale, fair value | 18,893 | 5,409 |
Taxable Municipal Securities [Member] | ||
Available for sale, amortized cost | 5,063 | |
Available for sale, gross unrealized gains | 29 | |
Available for sale, gross unrealized losses | (7) | |
Available for sale, fair value | 5,085 | |
SBA Pool Securities [Member] | ||
Available for sale, amortized cost | 1,338 | 1,734 |
Available for sale, gross unrealized gains | ||
Available for sale, gross unrealized losses | (41) | (52) |
Available for sale, fair value | 1,297 | 1,682 |
Collateralized Mortgage Obligations [Member] | ||
Held-to-maturity, amortized cost | 2,420 | 4,218 |
Held-to-maturity, gross unrealized gains | 116 | 129 |
Held-to-maturity, gross unrealized losses | ||
Held-to-maturity, fair value | 2,536 | 4,347 |
Available for sale, amortized cost | 458 | 998 |
Available for sale, gross unrealized gains | 27 | 18 |
Available for sale, gross unrealized losses | ||
Available for sale, fair value | 485 | 1,016 |
Mortgage Backed Securities [Member] | ||
Held-to-maturity, amortized cost | 979 | 1,588 |
Held-to-maturity, gross unrealized gains | 34 | 51 |
Held-to-maturity, gross unrealized losses | ||
Held-to-maturity, fair value | 1,013 | 1,639 |
Available for sale, amortized cost | 11,984 | 2,666 |
Available for sale, gross unrealized gains | 53 | 45 |
Available for sale, gross unrealized losses | (11) | |
Available for sale, fair value | $ 12,026 | $ 2,711 |
Debt Securities - Schedule of D
Debt Securities - Schedule of Debt Securities with Gross Unrealized Losses, by Investment Category (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | $ 41 | |
Available for Sale, Securities Position Over 12 Months, Fair Value | 1,297 | |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 18 | |
Available for Sale, Securities Position Less than 12 Month, Fair Value | 4,996 | |
Taxable Municipal Securities [Member] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | ||
Available for Sale, Securities Position Over 12 Months, Fair Value | ||
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 7 | |
Available for Sale, Securities Position Less than 12 Month, Fair Value | 1,413 | |
SBA Pool Securities [Member] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | 41 | $ 52 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 1,297 | 1,682 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | ||
Available for Sale, Securities Position Less than 12 Month, Fair Value | ||
Mortgage Backed Securities [Member] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | ||
Available for Sale, Securities Position Over 12 Months, Fair Value | ||
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 11 | |
Available for Sale, Securities Position Less than 12 Month, Fair Value | $ 3,583 |
Loans (Details Narrative)
Loans (Details Narrative) - Payroll Protection Plan [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Proceeds from loans | $ 19,200 |
Loans payable | $ 18,400 |
Loans - Schedule of Components
Loans - Schedule of Components of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Total loans | $ 154,919 | $ 104,189 | |
Net deferred (loan fees), costs and premiums | (544) | 53 | |
Allowance for loan losses | (1,906) | (2,009) | $ (2,243) |
Loans, net | 152,469 | 102,233 | |
Residential Real Estate [Member] | |||
Total loans | 30,254 | 28,266 | |
Allowance for loan losses | (463) | (531) | (544) |
Multi-Family Real Estate [Member] | |||
Total loans | 20,637 | 8,396 | |
Allowance for loan losses | (253) | (82) | (88) |
Commercial Real Estate [Member] | |||
Total loans | 71,714 | 55,652 | |
Allowance for loan losses | (884) | (624) | (545) |
Land and Construction [Member] | |||
Total loans | 4,750 | 2,496 | |
Allowance for loan losses | (52) | (21) | (37) |
Commercial [Member] | |||
Total loans | 21,849 | 4,476 | |
Allowance for loan losses | (103) | (573) | (850) |
Consumer [Member] | |||
Total loans | 5,715 | 4,903 | |
Allowance for loan losses | $ (151) | $ (152) | $ (25) |
Loans - Schedule of Change in A
Loans - Schedule of Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance | $ 2,009 | $ 2,243 |
Provision (Credit) for loan losses | 1,020 | (79) |
Charge-offs | (1,184) | (202) |
Recoveries | 61 | 47 |
Ending balance | 1,906 | 2,009 |
Individually evaluated for impairment, Recorded investment | 2,193 | 3,962 |
Individually evaluated for impairment, Allowance for loan losses | 789 | |
Collectively evaluated for impairment, Recorded investment | 152,726 | 100,227 |
Collectively evaluated for impairment, Allowance for loan losses | 1,906 | 1,220 |
Residential Real Estate [Member] | ||
Beginning balance | 531 | 544 |
Provision (Credit) for loan losses | 175 | (36) |
Charge-offs | (259) | |
Recoveries | 16 | 23 |
Ending balance | 463 | 531 |
Individually evaluated for impairment, Recorded investment | 944 | |
Individually evaluated for impairment, Allowance for loan losses | 258 | |
Collectively evaluated for impairment, Recorded investment | 30,254 | 27,322 |
Collectively evaluated for impairment, Allowance for loan losses | 463 | 273 |
Multi-Family Real Estate [Member] | ||
Beginning balance | 82 | 88 |
Provision (Credit) for loan losses | 171 | (6) |
Charge-offs | ||
Recoveries | ||
Ending balance | 253 | 82 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 20,637 | 8,396 |
Collectively evaluated for impairment, Allowance for loan losses | 253 | 82 |
Commercial Real Estate [Member] | ||
Beginning balance | 624 | 545 |
Provision (Credit) for loan losses | 260 | 274 |
Charge-offs | (195) | |
Recoveries | ||
Ending balance | 884 | 624 |
Individually evaluated for impairment, Recorded investment | 2,193 | 2,206 |
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 69,521 | 53,446 |
Collectively evaluated for impairment, Allowance for loan losses | 884 | 624 |
Land and Construction [Member] | ||
Beginning balance | 21 | 37 |
Provision (Credit) for loan losses | 7 | (40) |
Charge-offs | ||
Recoveries | 24 | 24 |
Ending balance | 52 | 21 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 4,750 | 2,496 |
Collectively evaluated for impairment, Allowance for loan losses | 52 | 21 |
Commercial [Member] | ||
Beginning balance | 573 | 850 |
Provision (Credit) for loan losses | 284 | (277) |
Charge-offs | (775) | |
Recoveries | 21 | |
Ending balance | 103 | 573 |
Individually evaluated for impairment, Recorded investment | 812 | |
Individually evaluated for impairment, Allowance for loan losses | 531 | |
Collectively evaluated for impairment, Recorded investment | 21,849 | 3,664 |
Collectively evaluated for impairment, Allowance for loan losses | 103 | 42 |
Consumer [Member] | ||
Beginning balance | 152 | 25 |
Provision (Credit) for loan losses | 149 | 134 |
Charge-offs | (150) | (7) |
Recoveries | ||
Ending balance | 151 | 152 |
Individually evaluated for impairment, Recorded investment | ||
Individually evaluated for impairment, Allowance for loan losses | ||
Collectively evaluated for impairment, Recorded investment | 5,715 | 4,903 |
Collectively evaluated for impairment, Allowance for loan losses | 151 | 152 |
Unallocated [Member] | ||
Beginning balance | 26 | 154 |
Provision (Credit) for loan losses | (26) | (128) |
Charge-offs | ||
Recoveries | ||
Ending balance | 26 | |
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 | $ 26 |
Loans - Schedule of Loans by Cr
Loans - Schedule of Loans by Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Risk rated loans | $ 154,919 | $ 104,189 |
Pass [Member] | ||
Risk rated loans | 144,650 | 97,920 |
OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 5,563 | 2,307 |
Sub-standard [Member] | ||
Risk rated loans | 4,706 | 3,962 |
Doubtful [Member] | ||
Risk rated loans | ||
Loss [Member] | ||
Risk rated loans | ||
Residential Real Estate [Member] | ||
Risk rated loans | 30,254 | 28,266 |
Residential Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 29,408 | 27,322 |
Residential Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | ||
Residential Real Estate [Member] | Sub-standard [Member] | ||
Risk rated loans | 846 | 944 |
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 | 20,637 | 8,396 |
Multi-Family Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 20,637 | 8,396 |
Multi-Family Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | Sub-standard [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 | 71,714 | 55,652 |
Commercial Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 63,405 | 53,011 |
Commercial Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 4,449 | 435 |
Commercial Real Estate [Member] | Sub-standard [Member] | ||
Risk rated loans | 3,860 | 2,206 |
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 | 4,750 | 2,496 |
Land and Construction [Member] | Pass [Member] | ||
Risk rated loans | 4,750 | 1,261 |
Land and Construction [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 1,235 | |
Land and Construction [Member] | Sub-standard [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 | 21,849 | 4,476 |
Commercial [Member] | Pass [Member] | ||
Risk rated loans | 20,735 | 3,027 |
Commercial [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 1,114 | 637 |
Commercial [Member] | Sub-standard [Member] | ||
Risk rated loans | 812 | |
Commercial [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Commercial [Member] | Loss [Member] | ||
Risk rated loans | ||
Consumer [Member] | ||
Risk rated loans | 5,715 | 4,903 |
Consumer [Member] | Pass [Member] | ||
Risk rated loans | 5,715 | 4,903 |
Consumer [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | ||
Consumer [Member] | Sub-standard [Member] | ||
Risk rated loans | ||
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, 2020 | Dec. 31, 2019 |
Nonaccrual Loans | $ 2,193 | $ 812 |
Total Loans | 154,919 | 104,189 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due loans | 983 | 2,179 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due loans | ||
Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Past Due loans | ||
Past Due [Member] | ||
Past Due loans | 983 | 2,179 |
Current [Member] | ||
Past Due loans | 151,743 | 101,198 |
Residential Real Estate [Member] | ||
Nonaccrual Loans | ||
Total Loans | 30,254 | 28,266 |
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due loans | 977 | 944 |
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due loans | ||
Residential Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Past Due loans | ||
Residential Real Estate [Member] | Past Due [Member] | ||
Past Due loans | 977 | 944 |
Residential Real Estate [Member] | Current [Member] | ||
Past Due loans | 29,277 | 27,322 |
Multi-Family Real Estate [Member] | ||
Nonaccrual Loans | ||
Total Loans | 20,637 | 8,396 |
Multi-Family Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due loans | ||
Multi-Family Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due loans | ||
Multi-Family Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Past Due loans | ||
Multi-Family Real Estate [Member] | Past Due [Member] | ||
Past Due loans | ||
Multi-Family Real Estate [Member] | Current [Member] | ||
Past Due loans | 20,637 | 8,396 |
Commercial Real Estate [Member] | ||
Nonaccrual Loans | 2,193 | |
Total Loans | 71,714 | 55,652 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due loans | ||
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due loans | ||
Commercial Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Past Due loans | ||
Commercial Real Estate [Member] | Past Due [Member] | ||
Past Due loans | ||
Commercial Real Estate [Member] | Current [Member] | ||
Past Due loans | 69,521 | 55,652 |
Land and Construction [Member] | ||
Nonaccrual Loans | ||
Total Loans | 4,750 | 2,496 |
Land and Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due loans | 1,235 | |
Land and Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due loans | ||
Land and Construction [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Past Due loans | ||
Land and Construction [Member] | Past Due [Member] | ||
Past Due loans | 1,235 | |
Land and Construction [Member] | Current [Member] | ||
Past Due loans | 4,750 | 1,261 |
Commercial [Member] | ||
Nonaccrual Loans | 812 | |
Total Loans | 21,849 | 4,476 |
Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due loans | ||
Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due loans | ||
Commercial [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Past Due loans | ||
Commercial [Member] | Past Due [Member] | ||
Past Due loans | ||
Commercial [Member] | Current [Member] | ||
Past Due loans | 21,849 | 3,664 |
Consumer [Member] | ||
Nonaccrual Loans | ||
Total Loans | 5,715 | 4,903 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due loans | 6 | |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due loans | ||
Consumer [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Past Due loans | ||
Consumer [Member] | Past Due [Member] | ||
Past Due loans | 6 | |
Consumer [Member] | Current [Member] | ||
Past Due loans | $ 5,709 | $ 4,903 |
Loans - Schedule of Impaired Lo
Loans - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total: recorded investment | $ 2,193 | $ 3,962 |
Total: unpaid principal balance | 2,193 | 3,962 |
Total: related allowance | 789 | |
Commercial Real Estate [Member] | ||
Recorded Investment , With no related allowance recorded | 2,193 | 2,206 |
Unpaid Principal Balance, With no related allowance recorded | 2,193 | 2,206 |
Related Allowance, With no related allowance recorded | ||
Total: recorded investment | 2,193 | 2,206 |
Total: unpaid principal balance | 2,193 | 2,206 |
Total: related allowance | ||
Residential Real Estate [Member] | ||
Recorded Investment , With related allowance recorded | 944 | |
Unpaid Principal Balance, With related allowance recorded | 944 | |
Related Allowance, With related allowance recorded | 258 | |
Total: recorded investment | 944 | |
Total: unpaid principal balance | 944 | |
Total: related allowance | 258 | |
Commercial [Member] | ||
Recorded Investment , With related allowance recorded | 812 | |
Unpaid Principal Balance, With related allowance recorded | 812 | |
Related Allowance, With related allowance recorded | 531 | |
Total: recorded investment | 812 | |
Total: unpaid principal balance | 812 | |
Total: related allowance | $ 531 |
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, 2020 | Dec. 31, 2019 | |
Impaired loans - Average Recorded Investment | $ 3,344 | $ 4,829 |
Impaired loans - Interest Income Recognized | 96 | 233 |
Impaired loans - Interest Income Received | 89 | 230 |
Residential Real Estate [Member] | ||
Impaired loans - Average Recorded Investment | 651 | 949 |
Impaired loans - Interest Income Recognized | 18 | 75 |
Impaired loans - Interest Income Received | 11 | 69 |
Commercial Real Estate [Member] | ||
Impaired loans - Average Recorded Investment | 2,194 | 2,672 |
Impaired loans - Interest Income Recognized | 78 | 115 |
Impaired loans - Interest Income Received | 60 | 113 |
Commercial [Member] | ||
Impaired loans - Average Recorded Investment | 499 | 1,208 |
Impaired loans - Interest Income Recognized | 43 | |
Impaired loans - Interest Income Received | $ 18 | $ 48 |
Premises and Equipment (Details
Premises and Equipment (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss on sale | $ (215) | $ (215) | |
Related Party [Member] | |||
Sale of branch | 1,400 | ||
Financed amount | $ 1,050 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Premises and equipment, gross | $ 2,315 | $ 2,111 |
Less accumulated depreciation and amortization | (902) | (722) |
Premises and equipment, net | 1,413 | 1,389 |
Land [Member] | ||
Premises and equipment, gross | 426 | 426 |
Buildings and Improvements [Member] | ||
Premises and equipment, gross | 654 | 654 |
Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment, gross | 730 | 664 |
Leasehold Improvements [Member] | ||
Premises and equipment, gross | $ 505 | $ 367 |
Leases (Details Narrative)
Leases (Details Narrative) | Dec. 31, 2020 | Dec. 31, 2019 |
Notes to Financial Statements | ||
Weighted-average remaining lease term | 7 years 4 months 24 days | 8 years 4 months 24 days |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Notes to Financial Statements | ||
Operating lease Cost | $ 171 | $ 99 |
Cash paid for amounts included in measurement of lease liabilities | $ 158 | $ 93 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Notes to Financial Statements | ||
Operating lease right-of-use assets | $ 904 | $ 1,055 |
Operating lease liabilities | $ 923 | $ 1,061 |
Weighted-average remaining lease term | 7 years 4 months 24 days | 8 years 4 months 24 days |
Weighted-average discount rate | 2.10% | 2.10% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Notes to Financial Statements | ||
2021 | $ 163 | |
2022 | 161 | |
2023 | 92 | |
2024 | 94 | |
2025 | 91 | |
Thereafter | 397 | |
Total future minimum lease payments | 998 | |
Less imputed interest | (75) | |
Total operating lease liability | $ 923 | $ 1,061 |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Time deposits | $ 21,743 | $ 35,352 |
Time deposits greater than $100,000 | 2,500 | $ 4,900 |
Minimum [Member] | ||
Time deposits | $ 250 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
2021 | $ 17,471 | |
2022 | 3,040 | |
2023 | 493 | |
2024 | 252 | |
2025 | 487 | |
Total | $ 21,743 | $ 35,352 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances and Other Available Credit (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Available for sale securities and blanket lien on qualifying loans pledged as collateral to the Federal Home Loan Bank | $ 86,600 | |
Mortgage loans line of credit remaining credit availability | 29,100 | |
Line of credit | 9,500 | |
Federal funds purchased outstanding | ||
Federal Reserve Bank [Member] | ||
Line of credit | 223 | |
Securities [Member] | ||
Line of credit | 230 | |
2020 Maturity [Member] | ||
Available for sale securities and blanket lien on qualifying loans pledged as collateral to the Federal Home Loan Bank | $ 500 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances, Other Available Credit and Junior Subordinated Debenture - Schedule of Maturities and Interest Rates on the Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total | $ 23,000 | $ 13,000 |
2021 [Member] | ||
Average Interest Rate | 1.68% | |
Total | $ 5,000 | 5,000 |
2024 [Member] | ||
Average Interest Rate | 1.96% | |
Total | $ 4,000 | 4,000 |
2025 [Member] | ||
Average Interest Rate | 1.08% | |
Total | $ 10,000 | |
2029 [Member] | ||
Average Interest Rate | 1.69% | |
Total | $ 4,000 | $ 4,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities available for sale | $ 18,893 | $ 5,409 | |
Debt Securities held-to-maturity | 3,399 | 5,806 | |
Accrued interest receivable | 1,336 | 432 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||
Cash and cash equivalents | 54,629 | 8,934 | |
Debt Securities available for sale | |||
Significant Other Observable Inputs (Level 2) [Member] | |||
Debt Securities available for sale | 18,893 | 5,409 | |
Debt Securities held-to-maturity | 3,549 | 5,986 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Debt Securities available for sale | |||
Loans | 154,159 | 102,060 | |
Federal Home Loan Bank stock | 1,092 | 642 | |
Accrued interest receivable | 1,336 | 432 | |
Deposit liabilities | 191,011 | 101,256 | |
Federal Home Loan Bank advances | 23,254 | 13,137 | |
Junior subordinated debenture | |||
Off-balance sheet financial instruments | |||
Carrying Amount [Member] | |||
Cash and cash equivalents | 54,629 | 8,934 | |
Debt Securities available for sale | 18,893 | 5,409 | |
Debt Securities held-to-maturity | 3,399 | 5,806 | |
Loans | 152,469 | 102,233 | |
Federal Home Loan Bank stock | 1,092 | 642 | |
Accrued interest receivable | 1,336 | 432 | |
Deposit liabilities | 190,759 | 101,372 | |
Federal Home Loan Bank advances | 23,000 | 13,000 | |
Junior subordinated debenture | 2,068 | 2,580 | |
Off-balance sheet financial instruments | |||
Estimate of Fair Value Measurement [Member] | |||
Cash and cash equivalents | 54,629 | 8,934 | |
Debt Securities available for sale | 18,893 | 5,409 | |
Debt Securities held-to-maturity | 3,549 | 5,986 | |
Loans | 154,159 | 102,060 | |
Federal Home Loan Bank stock | 1,092 | 642 | |
Accrued interest receivable | 1,336 | 432 | |
Deposit liabilities | 191,011 | 101,256 | |
Federal Home Loan Bank advances | 23,254 | 13,137 | |
Junior subordinated debenture | [1] | ||
Off-balance sheet financial instruments | |||
[1] | The Company is unable to determine value based on significant unobservable inputs required in the calculation. Refer to Note1 for further information. |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Contractual Amounts of Bank-balance Sheet Risk (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Investments, All Other Investments [Abstract] | |
Commitments to extend credit | $ 5,790 |
Unused lines of credit | 9,624 |
Standby letters of credit | $ 4,550 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset | $ 25 | $ 68 |
Carryforwards expiration, description | Carryforwards will begin to expire in 2029. | |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 16,900 | |
Florida [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 16,900 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current: Federal | ||
Current: State | ||
Total Current | ||
Deferred: Federal | (161) | (240) |
Deferred: State | (34) | (50) |
Deferred: Change in valuation allowance | 195 | 238 |
Total Deferred | (52) | |
Total | $ (52) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at statutory rate | $ (164) | $ (242) |
State taxes, net of Federal tax benefit | (34) | (50) |
Other permanent differences | 3 | 2 |
Change in valuation allowance | 195 | 238 |
Income Tax Expense | $ (52) | |
Income tax benefit at statutory rate, percent | 21.00% | 21.00% |
State taxes, net of Federal tax benefit, percent | 4.40% | 4.30% |
Other permanent differences, percent | (0.40%) | (0.20%) |
Change in valuation allowance, percent | (25.00%) | (20.70%) |
Income Tax Expense, percent | 0.00% | 4.40% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 4,284 | $ 4,299 |
Premises and equipment | 60 | 65 |
Nonaccrual loan interest | 40 | 51 |
Lease Liability | 234 | 269 |
Unrealized gain on debt securities | 25 | 68 |
Other | 1 | |
Gross deferred tax assets | 4,643 | 4,753 |
Less: Valuation allowance | 4,005 | 3,810 |
Total deferred tax assets | 638 | 943 |
Allowance for loan losses | (283) | (541) |
Right-of-use lease assets | (229) | (267) |
Loan costs | (101) | (67) |
Total deferred tax liabilities | (613) | (875) |
Net deferred tax asset | $ 25 | $ 68 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related party deposit liabilities | $ 36,000 | $ 828 |
Related parties loans receivable | 1,100 | $ 1,000 |
Shares issued during the period, amount | 540 | |
Directors [Member] | ||
Legal fees | $ 44 | |
Related Party [Member] | Series B Participating Preferred Stock [Member] | ||
Number of shares issued | 400 | |
Shares issued price per shares | $ 25,000 | |
Shares issued during the period, amount | $ 10,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
2018 Equity Incentive Plan [Member] | ||
Share-based compensation number of shares authorized | 550,000 | |
Share-based compensation number of shares issued | 237,792 | |
Share-based compensation remain available for grant | 312,208 | |
Director [Member] | ||
Compensation expense | $ 201 | |
Common stock issued as compensation to directors for services | 58,309 | |
Director and Executive officer [Member] | ||
Compensation expense | $ 219 | |
Common stock issued as compensation to directors for services | 80,602 |
Regulatory Matters (Details Nar
Regulatory Matters (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Community bank leverage ratio | 8.00% |
Community bank leverage ratio 2021 | 8.50% |
Community bank leverage ratio 2022 and beyond | 9.00% |
Bank leverage ratio | 7.00% |
Bank leverage ratio 2021 | 7.50% |
Bank leverage ratio 2022 and beyond | 8.00% |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Capital Amounts, Ratios and Regulatory Thresholds (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility [Abstract] | ||
Total Capital to Risk-Weighted Assets | $ 12,212 | |
Total Capital to Risk-Weighted Assets, Ratio | 0.1203 | |
Tier I Capital to Risk-Weighted Assets | $ 10,934 | |
Tier I Capital to Risk-Weighted Assets, Ratio | 0.1077 | |
Common equity Tier I capital to Risk-Weighted Assets | $ 10,934 | |
Common equity Tier I capital to Risk-Weighted Assets, Ratio | 0.1077 | |
Tier I Capital to Total Assets | $ 19,261 | $ 10,934 |
Tier I Capital to Total Assets, Ratio | 9 | 0.0873 |
Total Capital to Risk-Weighted Assets For Capital Adequacy Purposes | $ 8,124 | |
Total Capital to Risk-Weighted Assets For Capital Adequacy Purposes, Ratio | 0.0800 | |
Tier I Capital to Risk-Weighted Assets For Capital Adequacy Purposes | $ 6,093 | |
Tier I Capital to Risk-Weighted Assets For Capital Adequacy Purposes, Ratio | 0.0600 | |
Common equity Tier I capital to Risk-Weighted Assets For Capital Adequacy Purposes | $ 4,569 | |
Common equity Tier I capital to Risk-Weighted Assets For Capital Adequacy Purposes, Ratio | 0.0450 | |
Tier I Capital to Total Assets For Capital Adequacy Purposes | $ 5,010 | |
Tier I Capital to Total Assets For Capital Adequacy Purposes, Ratio | 0.0400 | |
Total Capital to Risk-Weighted Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 10,154 | |
Total Capital to Risk-Weighted Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | |
Tier I Capital to Risk-Weighted Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 8,124 | |
Tier I Capital to Risk-Weighted Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | |
Common equity Tier I capital to Risk-Weighted Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 6,600 | |
Common equity Tier I capital to Risk-Weighted Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0650 | |
Tier I Capital to Total Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 17,116 | $ 6,263 |
Tier I Capital to Total Assets Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8 | 0.0500 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Debt securities transferred in or out |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured on Nonrecurring Basis (Details) - Fair Value Measurements Nonrecurring [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Losses recorded in operations during the period | |
Residential Real Estate [Member] | |
Losses recorded in operations during the period | 258 |
Residential Real Estate [Member] | Fair Value [Member] | |
Losses recorded in operations during the period | 686 |
Residential Real Estate [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |
Losses recorded in operations during the period | |
Residential Real Estate [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Losses recorded in operations during the period | |
Residential Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Losses recorded in operations during the period | $ 686 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Debt Securities Available-for-sale Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities available for sale | $ 18,893 | $ 5,409 |
SBA Pool Securities [Member] | ||
Debt Securities available for sale | 1,297 | 1,682 |
Collateralized Mortgage Obligations [Member] | ||
Debt Securities available for sale | 485 | 1,016 |
Mortgage Backed Securities [Member] | ||
Debt Securities available for sale | 12,026 | 2,711 |
Fair Value [Member] | ||
Debt Securities available for sale | 18,893 | 5,409 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Debt Securities available for sale | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Debt Securities available for sale | 18,893 | 5,409 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | SBA Pool Securities [Member] | ||
Debt Securities available for sale | 1,297 | 1,682 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Collateralized Mortgage Obligations [Member] | ||
Debt Securities available for sale | 485 | 1,016 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | State and Political Subdivisions [Member] | ||
Debt Securities available for sale | 5,085 | |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Mortgage Backed Securities [Member] | ||
Debt Securities available for sale | 12,026 | 2,711 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | SBA Pool Securities [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Collateralized Mortgage Obligations [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | State and Political Subdivisions [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Mortgage Backed Securities [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | SBA Pool Securities [Member] | ||
Debt Securities available for sale | 1,297 | 1,682 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Mortgage Obligations [Member] | ||
Debt Securities available for sale | 485 | 1,016 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Political Subdivisions [Member] | ||
Debt Securities available for sale | 5,085 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | ||
Debt Securities available for sale | 12,026 | 2,711 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | SBA Pool Securities [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Collateralized Mortgage Obligations [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Political Subdivisions [Member] | ||
Debt Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Backed Securities [Member] | ||
Debt Securities available for sale |
Company Unconsolidated Financ_2
Company Unconsolidated Financial Information - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets | $ 977 | $ 848 | |
Total assets | 235,112 | 126,748 | |
Other liabilities | 386 | 1,320 | |
Stockholders' equity | 17,834 | 7,207 | $ 5,306 |
Total liabilities and stockholders' equity | 235,112 | 126,748 | |
Subsidiaries [Member] | |||
Cash | 123 | 10 | $ 245 |
Investment in subsidiary | 19,193 | 10,730 | |
Other assets | 642 | 167 | |
Total assets | 19,958 | 10,907 | |
Other liabilities | 56 | 1,120 | |
Junior subordinated debenture | 2,068 | 2,580 | |
Stockholders' equity | 17,834 | 7,207 | |
Total liabilities and stockholders' equity | $ 19,958 | $ 10,907 |
Company Unconsolidated Financ_3
Company Unconsolidated Financial Information - Schedule of Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest expense | $ (1,720) | $ (2,046) |
Other expense | (805) | (659) |
Net loss | (782) | (1,100) |
Subsidiaries [Member] | ||
Loss of subsidiary | (43) | (246) |
Interest expense | (122) | (294) |
Other expense | (617) | (560) |
Net loss | $ (782) | $ (1,100) |
Company Unconsolidated Financ_4
Company Unconsolidated Financial Information - Schedule of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net loss | $ (782) | $ (1,100) |
Stock-based compensation | 219 | 201 |
(Decrease) increase in other liabilities | (998) | 176 |
(Increase) decrease in other assets | (172) | (235) |
Net cash used in operating activities | (1,458) | (558) |
Proceeds from sale of preferred stock | 10,000 | |
Proceeds from sale of common stock | 540 | |
Net cash provided by financing activities | 109,927 | 26,834 |
Common stock issued and reclassified from other liabilities | 31 | |
Subsidiaries [Member] | ||
Net loss | (782) | (1,100) |
Stock-based compensation | 219 | 201 |
Equity in undistributed loss of subsidiary | 43 | 246 |
(Decrease) increase in other liabilities | (1,062) | 387 |
(Increase) decrease in other assets | (475) | 31 |
Net cash used in operating activities | (2,057) | (235) |
Capital infusion to bank subsidiary | (8,370) | |
Proceeds from sale of preferred stock | 10,000 | |
Proceeds from sale of common stock | 540 | |
Net cash provided by financing activities | 10,540 | |
Net increase (decrease) in cash | 113 | (235) |
Cash at beginning of the year | 10 | 245 |
Cash at end of year | 123 | 10 |
Change in accumulated other comprehensive loss of subsidiary, net change in unrealized gain on debt securities available for sale, net of income taxes | 136 | 125 |
Common stock issued and reclassified from other liabilities | 31 | |
Issuance of common stock in exchange for Trust Preferred Securities | $ 514 | $ 2,644 |
Preferred Stock (Details Narrat
Preferred Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares issued during the period, amount | $ 540 | |
Preferred stock no par value | ||
Convertible shares of common stock | 4,000,000 | |
Liquidation preference per share | $ 25,000 | |
Series B Preferred Stock [Member] | ||
Number of shares issued | ||
Shares issued during the period, amount | ||
Stockholders beneficial ownership percentage of outstanding shares of common stock | 9.90% | |
Preferred stock, voting rights | The Preferred Stock generally has no voting rights except as provided in the Certificate of Designation | |
Series B Participating Preferred Stock [Member] | Related Party [Member] | ||
Number of shares issued | 400 | |
Shares issued price per shares | $ 25,000 | |
Shares issued during the period, amount | $ 10,000 |