Independence Bancshares 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 06, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Independence Bancshares, Inc.
Entity Central Index Key	1,311,828
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		20,502,760

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 4,118,939	$ 5,453,795
Federal funds sold	7,787,000	8,446,000
Cash and cash equivalents	11,905,939	13,899,795
Interest-bearing deposits in other institutions	1,750,000	1,500,000
Investment securities available for sale	10,587,515	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net of allowance for loan losses of $1,072,821 and $1,139,509, respectively	63,857,131	66,402,246
Accrued interest receivable	203,934	232,215
Property, equipment, and software, net	2,152,678	2,198,796
Other real estate owned and repossessed assets	2,112,667	1,910,220
Other assets	170,182	243,683
Total assets	93,120,096	97,467,306
Deposits:
Non-interest bearing	11,074,370	13,010,209
Interest bearing	68,894,620	70,557,116
Total deposits	79,968,990	83,567,325
Securities sold under agreements to repurchase	41,229	113,080
Accrued interest payable	9,251	7,909
Accounts payable and accrued expenses	680,812	1,134,833
Total liabilities	$ 80,700,282	$ 84,823,147
Commitments and contingencies
Shareholders' equity
Common stock, par value $.01 per share; 300,000,000 shares authorized; 20,502,760 shares issued and outstanding	$ 205,028	$ 205,028
Additional paid-in capital	43,048,537	43,043,473
Accumulated other comprehensive income	184,867	113,846
Accumulated deficit	(31,018,702)	(30,718,272)
Total shareholders' equity	12,419,814	12,644,159
Total liabilities and shareholders' equity	93,120,096	97,467,306
Series A Preferred Stock [Member]
Shareholders' equity
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; 8,425 Series A shares issued and outstanding	$ 84	$ 84

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Allowance for loan losses	$ 1,072,821	$ 1,139,509
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	20,502,760	20,502,760
Common stock, shares outstanding	20,502,760	20,502,760
Series A Preferred Stock [Member]
Preferred stock, shares issued	8,425	8,425
Preferred stock, shares outstanding	8,425	8,425

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest income
Loans	$ 830,213	$ 827,464
Investment securities	68,198	94,638
Federal funds sold and other	16,641	9,288
Total interest income	915,052	931,390
Interest expense
Deposits	78,614	74,956
Borrowings	18	10,335
Total interest expense	78,632	85,291
Net interest income	836,420	$ 846,099
Provision for loan losses	(68,000)
Net interest income after provision for loan losses	904,420	$ 846,099
Non-interest income
Service fees on deposit accounts	25,203	21,051
Residential loan origination fees	44,155	$ 32,874
SBA loan fees	$ 119,306
Gain on sale of investment securities		$ 41,148
Other income	$ 9,771	49,133
Total non-interest income	198,435	144,206
Non-interest expenses
Compensation and benefits	660,107	646,727
Real estate owned activity	9,096	8,115
Occupancy and equipment	154,874	159,853
Insurance	57,974	54,434
Data processing and related costs	87,872	81,813
Professional fees	227,688	114,923
Product research and development expense	100,482	195,932
Other	105,192	87,069
Total non-interest expenses	1,403,285	1,348,866
Loss before income tax expense	$ (300,430)	(358,561)
Income tax expense		5,080
Net loss	$ (300,430)	(363,641)
Other comprehensive income, net of tax
Unrealized gain on investment securities available for sale, net of tax	$ 71,021	91,268
Reclassification adjustment included in net income, net of tax		(27,158)
Other comprehensive income	$ 71,021	64,110
Total comprehensive loss	$ (229,409)	$ (299,531)
Net loss per common share - basic and diluted	$ (0.01)	$ (0.02)
Weighted average common shares outstanding - basic and diluted	20,502,760	20,502,760

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($)	Total	Common stock	Preferred stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit
Beginning Balance at Dec. 31, 2014	$ 9,410,580	$ 205,028		$ 35,124,151	$ 1,154	$ (25,919,753)
Beginning Balance, shares at Dec. 31, 2014		20,502,760
Compensation expense related to stock options granted	303,829			303,829
Issuance of preferred stock - net of expenses	7,615,577		$ 84	7,615,493
Issuance of preferred stock - net of expenses, shares			8,425
Net loss	(4,798,519)					$ (4,798,519)
Other comprehensive income	112,692				112,692
Ending Balance at Dec. 31, 2015	12,644,159	$ 205,028	$ 84	43,043,473	$ 113,846	$ (30,718,272)
Ending Balance, shares at Dec. 31, 2015		20,502,760	8,425
Compensation expense related to stock options granted	5,064			$ 5,064
Net loss	(300,430)					$ (300,430)
Other comprehensive income	71,021				$ 71,021
Ending Balance at Mar. 31, 2016	$ 12,419,814	$ 205,028	$ 84	$ 43,048,537	$ 184,867	$ (31,018,702)
Ending Balance, shares at Mar. 31, 2016		20,502,760	8,425

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net loss	$ (300,430)	$ (363,641)
Adjustments to reconcile net loss to cash used in operating activities
Reversal of provision for loan losses	(68,000)
Depreciation	53,685	$ 54,030
Amortization of investment securities discounts/premiums, net	39,357	48,462
Stock option expense related to stock based compensation	5,064	80,817
Net changes in fair value and gains losses on other real estate owned and repossessed assets	$ (4,680)	(17,177)
Gain on sale of investment securities		(41,148)
Decrease (increase) in other assets, net	$ 101,782	(152,918)
(Decrease) increase in other liabilities, net	(489,265)	104,078
Net cash used in operating activities	(662,487)	(287,497)
Investing activities
Net decrease in loans	2,379,348	714,016
Repayments of investment securities available for sale	$ 168,586	270,790
Maturities and sales of investment securities available for sale		$ 533,287
Purchases of interest bearing deposits in other institutions	$ (250,000)
Purchases of investment securities available for sale		$ (300,000)
Redemption of non-marketable equity securities, net	$ 12,450	225,400
Purchase of property, equipment and software	(7,567)	(6,626)
Proceeds from sale of other real estate owned and repossessed assets	36,000	517,534
Net cash provided by investing activities	2,338,817	1,954,401
Financing activities
(Decrease) increase in deposits, net	$ (3,598,335)	2,904,832
Repayments on borrowings		(5,000,000)
Repayments on note payable		(450,226)
Decrease in securities sold under agreements to repurchase	$ (71,851)	(111,331)
Net cash (used in) financing activities	(3,670,186)	(2,656,725)
Net decrease in cash and cash equivalents	(1,993,856)	(989,821)
Cash and cash equivalents at beginning of the period	13,899,795	10,904,080
Cash and cash equivalents at end of the period	11,905,939	9,914,259
Cash paid for
Interest	$ 77,290	84,127
Income taxes		5,080
Schedule of non-cash transactions
Unrealized gain on securities available for sale, net of tax	$ 71,021	97,137
Loans transferred to other real estate owned and repossessed assets	$ 233,767	$ 300,000

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Nature of Business and Basis of Presentation [Abstract]
NATURE OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1 – NATURE OF BUSINESS AND BASIS OF PRESENTATION Independence Bancshares, Inc. (the “Company”) is a South Carolina corporation organized to operate as a bank holding company pursuant to the Federal Bank Holding Company Act of 1956 and the South Carolina Banking and Branching Efficiency Act of 1996, and to own and control all of the capital stock of Independence National Bank (the “Bank”). The Bank is a national association organized under the laws of the United States and opened for business on May 16, 2005. It is primarily engaged in the business of banking and providing services related to banking including accepting demand deposits and savings deposits insured by the Federal Deposit Insurance Corporation (the “FDIC”), and providing commercial, consumer and mortgage loans, principally in Greenville County, South Carolina. On May 31, 2005, the Company sold 2,085,010 shares of its common stock in its initial public offering. All shares were sold at $10.00 per share. The offering raised approximately $20.5 million, net of offering costs. On December 31, 2012, the Company sold 17,648,750 shares of its common stock at $0.80 per share to certain accredited investors in a Private Placement (the “Private Placement”) for gross proceeds of $14.1 million. On August 1, 2013, the Company sold 769,000 shares of its common stock at a price of $0.80 per share to certain existing shareholders in a follow-on offering for gross proceeds of approximately $615,200 (the “Follow-on Offering”). On May 14, 2015, the Company issued 8,425 shares of Series A convertible preferred stock (the “Series A Shares”) to certain institutional investors and members of the Company’s management team at a price of $1,000 per share for gross proceeds of approximately $8,425,000 (the “Series A Private Placement”). Each Series A share is convertible, at the holder’s option, into 1,250 shares of common stock and each Series A Share ranks senior to our common stock with respect to dividends, distributions and liquidation preferences. The Series A shares have a liquidation preference of $1,000 per share. Also on May 14, 2015, the Company entered into a license agreement with MPIB Holdings, LLC (“MPIB”) pursuant to which it received a non-exclusive, non-transferable, non-licensable, worldwide license to use certain intellectual property of MPIB related to mobile payments and digital transactions. On January 4, 2016, the parties amended and restated the license agreement (the “Amended and Restated License Agreement”) pursuant to which MPIB agreed to make the license perpetual, subject to termination rights of the parties set forth in the Amended and Restated License Agreement, in exchange for the Company’s payment of a license fee of $275,000. On September 25, 2015, the Company suspended development of its digital banking, payments and transaction services business, and the board of directors is currently exploring strategic alternatives for this line of business and the Company. As previously disclosed, in conjunction with the suspension, the Company terminated the employment of the employees who were primarily engaged in developing the digital banking, payments and transaction services business, including the Company’s former Chief Executive Officer, effective as of September 25, 2015. No Bank employees were terminated, and there have been no material changes to the Bank’s operations. On October 4, 2015, the board of directors appointed Lawrence R. Miller, the president and chief executive officer of the Bank, as the Company’s interim Chief Executive Officer. If the Company decides to pursue some strategic alternative, the Company may not have sufficient working capital to bring the development to operational capability and would need to raise additional capital. The Bank continues to provide community banking services in Greenville County, South Carolina, fulfilling the financial needs of individuals and small business owners by providing traditional checking and savings products and commercial, consumer and mortgage loans, as well as ATM and online banking, cash management, and safe deposit boxes. The Company seeks to maintain capital resources at both the Bank and at the Company, as well as at any future subsidiary, to adequately finance their operations. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and the Bank. In consolidation, all significant intercompany transactions have been eliminated. The accounting and reporting policies conform to accounting principles generally accepted in the United States and to general practices in the banking industry. The foregoing discussion is a summary only and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 10-K”) as filed with the Securities and Exchange Commission (the“SEC”) and Management’s Discussion and Analysis in this Quarterly Report on Form 10-Q. Operating results for the three month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Reclassifications Certain amounts have been reclassified to state all periods on a comparable basis. Reclassifications had no effect on previously reported shareholders’ equity or net loss. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other real estate owned, fair value of financial instruments, evaluating other-than-temporary impairment of investment securities and valuation of deferred tax assets. Business Segments The Company reports its activities as four business segments - Community Banking, Transaction Services, Asset Management and Parent Only. In determining proper segment definition, the Company considers the materiality of a potential segment and components of the business about which financial information is available and regularly evaluated, relative to a resource allocation and performance assessment. Please refer to “Note 8 – Business Segments” for further information on the reporting for the four business segments. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether or not there have been any subsequent events since the balance sheet date, and concluded that no subsequent events had occurred requiring accrual or disclosure through the date of this filing.

Liquidity and Capital Considera

Liquidity and Capital Considerations	3 Months Ended
	Mar. 31, 2016
Liquidity and Capital Considerations [Abstract]
LIQUIDITY AND CAPITAL CONSIDERATIONS	NOTE 2 – LIQUIDITY AND CAPITAL CONSIDERATIONS The Company The Company’s cash balances, independent of the Bank, were approximately $2.2 million and its real estate held for sale was $600,000 at March 31, 2016 compared to cash balances of approximately $2.9 million and real estate held for sale of $631,320 at December 31, 2015. The decrease in liquid assets of approximately $720,000 is due primarily to the repayment of accrued liabilities during the quarter, approximately $100,000 in expenses incurred related to the transaction services segment, and approximately $300,000 in professional fees and data processing expenses incurred at the Company. See “Note 8 – Business Segments” for additional information related to the transaction services segment. The foregoing discussion is a summary only and should be read in conjunction with the 2015 Form 10-K as filed with the SEC and Management’s Discussion and Analysis in this Quarterly Report on Form 10-Q. If the Company decides to pursue some strategic alternative, the Company may not have sufficient working capital to bring the development to operational capability and would need to raise additional capital. The Bank Our ability to maintain and expand our deposit base and borrowing capabilities serves as our primary source of liquidity at the Bank. We currently have $11.9 million in cash and federal funds sold. If our cash needs at the Bank exceed that, we plan to liquidate temporary investments and generate deposits within our market. In addition, we will receive cash upon the maturity and sale of loans and the maturity of investment securities. Our investment securities available for sale at March 31, 2016 amounted to $10.6 million, or 11.5% of total assets. Investment securities traditionally provide a secondary source of liquidity since they can be converted into cash in a timely manner. At March 31, 2016, $2.6 million of our investment portfolio was pledged against outstanding debt. Therefore, the related debt would need to be repaid prior to the securities being sold and converted to cash. The Bank is a member of the Federal Home Loan Bank of Atlanta (“FHLB”), from which applications for borrowings can be made for leverage purposes. The FHLB requires that securities, qualifying mortgage loans, and stock of the FHLB owned by the Bank be pledged to secure any advances from the FHLB. At March 31, 2016, we had collateral that would support approximately $36.8 million in additional borrowings. We are subject to the FHLB’s credit risk rating policy which assigns member institutions a rating which is reviewed quarterly. The rating system utilizes key factors such as loan quality, capital, liquidity, profitability, etc. Our ability to access our available borrowing capacity from the FHLB in the future is subject to our rating and any subsequent changes based on our financial performance as compared to factors considered by the FHLB in their assignment of our credit risk rating each quarter. The Bank also pledges collateral to the Federal Reserve Bank’s Borrower-in-Custody of Collateral program, and our available credit under this program was $16.9 million as of March 31, 2016. The Bank has a $2.0 million federal funds purchased line of credit through a correspondent bank that is unsecured, but has not been utilized. We believe our liquidity sources are adequate to meet our operating needs at the Bank. However, we continue to carefully focus on liquidity management during 2016. Comprehensive weekly and monthly liquidity analyses serve management as vital decision-making tools by providing summaries of anticipated changes in loans, investments, core deposits, and wholesale funds. These internal funding reports provide management with the details critical to anticipate immediate and long-term cash requirements, such as expected deposit runoff, loan pay downs and amount and cost of available borrowing sources, including secured overnight federal funds lines with our various correspondent banks. The Consolidated Company The Company’s level of liquidity is measured by the cash, cash equivalents, and investment securities available for sale to total assets ratio which was 24.2% at March 31, 2016 compared to 26.7% as of December 31, 2015. The slight decrease in liquidity is due primarily to the decrease in cash and due from bank and federal funds sold.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For further information refer to the consolidated financial statements and footnotes thereto included in our 2015 Form 10K as filed with the SEC. Cash and Cash Equivalents - For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks and federal funds sold. Generally, federal funds are sold for one-day periods. Due to the short term nature of cash and cash equivalents, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value. At March 31, 2016 and December 31, 2015, the Company had restricted cash totaling $2,000 with the FHLB. The Company places its deposits and correspondent accounts with and sells its federal funds to high quality institutions. Management believes credit risk associated with correspondent accounts is not significant. Net Loss per Common Share - Basic loss per common share represents net loss divided by the weighted average number of common shares outstanding during the period. Diluted loss per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and warrants and are determined using the treasury stock method. For the three month periods ended March 31, 2016 and March 31, 2015, as a result of the Company’s net loss, all of the potential common shares were considered anti-dilutive. Research and Development – All costs incurred to establish the technological feasibility of computer software to be sold, leased or otherwise marketed as research and development are expensed as incurred. Once technological feasibility has been established, the subsequent costs of producing, coding and testing the products should be capitalized. The expensing of computer software costs is discontinued when the product is available for general release for customers. The Company has not achieved technological feasibility and has expensed all computer software purchases and development expenses related to research and development of its digital banking, payments and transaction services business and on September 25, 2015 the Company suspended further development of its digital banking and payments and transaction services business. Fair Value Measurements - The Company determines the fair market values of its financial instruments based on the fair value hierarchy established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”), which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investment securities) or on a nonrecurring basis (for example, impaired loans). ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 – Valuations are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuations include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Income Taxes - The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes". Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets if it is determined to be “more likely than not” that all or some portion of the potential deferred tax asset will not be realized. We did not recognize any income tax benefit or expense for the three month periods ended March 31, 2016 and 2015 due to our net operating loss carryforward position. Accounting literature states that a deferred tax asset should be reduced by a valuation allowance if, based on the weight of all available evidence, it is more likely than not (a likelihood of more than 50%) that some portion or the entire deferred tax asset will not be realized. The determination of whether a deferred tax asset is realizable is based on weighting all available evidence, including both positive and negative evidence. In making such judgments, significant weight is given to evidence that can be objectively verified. We will continue to analyze our deferred tax assets and related valuation allowance on a quarterly basis, taking into account performance compared to forecasted earnings as well as current economic and internal information. The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities, and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flows. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. Recently Issued Accounting Pronouncements - The following is a summary of recent authoritative pronouncements that may affect our accounting, reporting, and disclosure of financial information: In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under the U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted, provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2016
Investment Securities [Abstract]
INVESTMENT SECURITIES	NOTE 4 – INVESTMENT SECURITIES Investment securities classified as “Available for Sale” are carried at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity (net of estimated tax effects). Realized gains or losses on the sale of investments are based on the specific identification method. The amortized costs and fair values of investment securities available for sale are as follows: March 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value Government-sponsored mortgage-backed $ 4,104,988 $ 77,853 $ (26,968 ) $ 4,155,873 Municipals, tax-exempt 4,896,412 182,327 (3,557 ) 5,075,182 Municipals, taxable 1,306,013 50,447 - 1,356,460 Total investment securities $ 10,307,413 $ 310,627 $ (30,525 ) $ 10,587,515 December 31, 2015 Amortized Gross Unrealized Fair Cost Gains Losses Value Government-sponsored mortgage-backed $ 4,290,680 $ 66,350 $ (44,581 ) $ 4,312,449 Municipals, tax-exempt 4,916,379 140,335 (17,267 ) 5,039,447 Municipals, taxable 1,308,298 27,657 - 1,335,955 Total investment securities $ 10,515,357 $ 234,342 $ (61,848 ) $ 10,687,851 The following table presents information regarding securities with unrealized losses at March 31, 2016: Securities in an Unrealized Securities in an Unrealized Loss Position for Less than Loss Position for More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government-sponsored mortgage-backed $ 611,378 $ 849 $ 756,676 $ 26,119 $ 1,368,054 $ 26,968 Municipals, tax-exempt - - 324,570 3,557 324,570 3,557 Total temporarily impaired securities $ 611,378 $ 849 $ 1,081,246 $ 29,676 $ 1,692,624 $ 30,525 The following table presents information regarding securities with unrealized losses at December 31, 2015: Securities in an Unrealized Securities in an Unrealized Loss Position for Less than Loss Position for More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government-sponsored mortgage-backed $ 627,542 $ 5,569 $ 764,462 $ 39,012 $ 1,392,004 $ 44,581 Municipals, tax-exempt 323,796 6,249 1,074,440 11,018 1,398,236 17,267 Total temporarily impaired securities $ 951,338 $ 11,818 $ 1,838,902 $ 50,030 $ 2,790,240 $ 61,848 At March 31, 2016, investment securities with a fair value of $611,378 and unrealized losses of $849 had been in a continuous loss position for less than twelve months. At March 31, 2016, investment securities with a fair value of approximately $1.1 million and unrealized losses of $29,676 had been in a continuous loss position for more than twelve months. All remaining investment securities were in an unrealized gain position. The Company believes, based on industry analyst reports and credit ratings that the deterioration in the fair value of these investment securities available for sale is attributed to changes in market interest rates and not in the credit quality of the issuer and therefore, these losses are not considered other-than-temporary. The Company has the ability and intent to hold these securities until such time as the values recover or the securities mature. At December 31, 2015, investment securities with a fair value of $951,338 and unrealized losses of $11,818 had been in a continuous loss for less than twelve months. At December 31, 2015, investment securities with a fair value of approximately $1.8 million and unrealized losses of $50,030 had been in a continuous loss position for more than twelve months. All remaining investment securities were in an unrealized gain position. The amortized costs and fair values of investment securities available for sale at March 31, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to prepay the obligations. March 31, 2016 Amortized Fair Cost Value Due within one year $ — $ — Due after one through three years — — Due after three through five years — — Due after five through ten years 1,306,014 1,356,460 Due after ten years 9,001,399 9,231,055 Total investment securities $ 10,307,413 $ 10,587,515

Loans

Loans	3 Months Ended
	Mar. 31, 2016
Loans [Abstract]
LOANS	NOTE 5 – LOANS At March 31, 2016, our gross loan portfolio consisted primarily of $31.2 million of commercial real estate loans, $17.7 million of commercial business loans, and $16.2 million of consumer and home equity loans. Our current loan portfolio composition is not materially different than the loan portfolio composition disclosed in the footnotes to the consolidated financial statements included in our 2015 10-K. During the quarter ended March 31, 2016, one nonaccrual loan at the Bank was transferred to other real estate owned for $233,767. A specific reserve was included in the December 31, 2015 allowance accounts. During the quarter ended March 31, 2015, one nonaccrual loan at the Bank for $343,266 was transferred to other real estate owned for $300,000, net of a specific reserve, which includes $34,327 in selling costs, of $43,266. Certain credit quality statistics related to our loan portfolio have improved over the past several quarters, including reductions of in-migration of nonaccrual loans and reductions in the aggregate level of nonperforming assets. To the extent such improvement continues, we may continue to reduce our allowance for loan losses in future periods based on our assessment of the inherent risk in the loan portfolio at those future reporting dates. A reduction in the allowance for loan losses would result in a lower provision for loans losses being recorded in future periods. Conversely, there can be no assurance that loan losses in future periods will not exceed the current allowance for loan losses amount or that future increases in the allowance for loan losses will not be required. Additionally, no assurance can be given that our ongoing evaluation of the loan portfolio, in light of changing economic conditions and other relevant factors, will not require significant future additions to the allowance for loan losses, thus adversely impacting our business, financial condition, results of operations, and cash flows. Loan Performance and Asset Quality Generally, a loan will be placed on nonaccrual status when it becomes 90 days past due as to principal or interest (unless the loan is well-collateralized and in the process of collection), or when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of the loan is doubtful. When a loan is placed in nonaccrual status, interest accruals are discontinued and income earned but not collected is reversed. Cash receipts on nonaccrual loans are not recorded as interest income, but are used to reduce principal. Loans are removed from nonaccrual status when they become current as to both principal and interest and when concern no longer exists as to the collectability of principal or interest based on current available information or as evidenced by sufficient payment history, generally six months. The following table summarizes delinquencies and nonaccruals, by portfolio class, as of March 31, 2016 and December 31, 2015. Single and multifamily Construction Commercial residential and real estate - Commercial real estate development other business Consumer Total March 31, 2016 30-59 days past due $ 46,109 $ - $ - $ - $ - $ 46,109 60-89 days past due - - - - - - Nonaccrual 141,645 40,500 1,156,246 - - 1,338,391 Total past due and nonaccrual 187,754 40,500 1,156,246 - - 1,384,500 Current 14,434,413 8,495,787 21,528,957 17,693,369 1,545,720 63,698,246 Total loans (gross of $ 14,622,167 $ 8,536,287 $ 22,685,203 $ 17,693,369 $ 1,545,720 $ 65,082,746 deferred fees) Deferred fees (152,794 ) Loan loss reserve (1,072,821 ) Total Loans, net $ 63,857,131 Single and multifamily Construction Commercial residential and real estate - Commercial real estate development other business Consumer Total December 31, 2015 30-59 days past due $ 75,890 $ - $ - $ - $ - $ 75,890 60-89 days past due 63,702 250,378 - - - 314,080 Nonaccrual 168,879 40,500 1,390,013 65,798 - 1,655,190 Total past due and nonaccrual 308,471 290,878 1,390,013 65,798 - 2,055,160 Current 16,126,251 6,995,581 24,169,930 16,961,256 1,369,224 65,622,242 Total loans (gross of $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402 deferred fees) Deferred fees (135,647 ) Loan loss reserve (1,139,509 ) Total Loans, net $ 66,402,246 At March 31, 2016 and December 31, 2015, there were nonaccrual loans of $1.3 million and $1.7 million, respectively. Foregone interest income related to nonaccrual loans equaled $35,011 for the three months ended March 31, 2016. Foregone interest income related to nonaccrual loans equaled $5,238 for the three months ended March 31, 2015. No interest income was recognized on nonaccrual loans during the three months ended March 31, 2016. At March 31, 2016 and December 31, 2015, there were no accruing loans which were contractually past due 90 days or more as to principal or interest payments. As part of the loan review process, loans are given individual credit grades, representing the risk the Company believes is associated with the loan balance. Credit grades are assigned based on factors that impact the collectability of the loan, the strength of the borrower, the type of collateral, and loan performance. Commercial loans are individually graded at origination and credit grades are reviewed on a regular basis in accordance with our loan policy. Consumer loans are assigned a “pass” credit rating unless something within the loan warrants a specific classification grade . The following table summarizes management’s internal credit risk grades, by portfolio class, as of March 31, 2016 and December 31, 2015. Single and multifamily Construction Commercial residential and real estate - Commercial March 31, 2016 real estate development other business Consumer Total Pass Loans $ 8,742,268 $ 1,655,768 $ - $ - $ 1,545,720 $ 11,943,756 Grade 1 - Prime - - - - - - Grade 2 - Good - - 118,704 - - 118,704 Grade 3 - Acceptable 2,456,493 1,437,514 7,923,364 7,541,362 - 19,358,733 Grade 4 – Acceptable w/ Care 3,218,990 5,189,424 12,179,359 9,066,421 - 29,654,194 Grade 5 – Special Mention 62,771 74,627 605,559 845,648 - 1,588,605 Grade 6 - Substandard 141,645 178,954 1,858,217 239,938 - 2,418,754 Grade 7 - Doubtful - - - - - - Total loans (gross of $ 14,622,167 $ 8,536,287 $ 22,685,203 $ 17,693,369 $ 1,545,720 $ 65,082,746 deferred fees) Single and multifamily Construction Commercial residential and real estate - Commercial December 31, 2015 real estate development other business Consumer Total Pass Loans $ 8,340,816 $ 1,350,332 $ - $ - $ 1,369,224 $ 11,060,372 Grade 1 - Prime - - - - - - Grade 2 - Good - - - - - - Grade 3 - Acceptable 4,479,116 809,004 8,121,125 7,667,706 - 21,076,951 Grade 4 – Acceptable w/ Care 3,382,209 4,759,864 14,724,468 8,199,385 - 31,065,926 Grade 5 – Special Mention 63,702 76,381 611,189 846,106 - 1,597,378 Grade 6 - Substandard 168,879 290,878 2,103,161 313,857 - 2,876,775 Grade 7 - Doubtful - - - - - - Total loans (gross of $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402 deferred fees) Loans graded one through four are considered “pass” credits. At March 31, 2016, approximately 94% of the loan portfolio had a credit grade of “pass” compared to 93% at December 31, 2015. For loans to qualify for this grade, they must be performing relatively close to expectations, with no significant departures from the intended source and timing of repayment. Consumer loans are assigned a “pass” credit rating unless something within the loan warrants a specific classification grade. As of both March 31, 2016 and December 31, 2015, we had loans totaling $1.6 million classified as special mention. This classification is utilized when an initial concern is identified about the financial health of a borrower. Loans are designated as such in order to be monitored more closely than other credits in the loan portfolio. At March 31, 2016, substandard loans totaled approximately $2.4 million, with all loans being collateralized by real estate compared to $2.9 million at December 31, 2015. Substandard credits are evaluated for impairment on a quarterly basis. The Company identifies impaired loans through its normal internal loan review process. 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 according to the contractual terms of the loan agreement. 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. Loans on the Company's problem loan watch list are considered potentially impaired loans. Generally, once loans are considered impaired, they are moved to nonaccrual status and recognition of interest income is discontinued. However, loans may be considered impaired strictly based on a decrease in the underlying value of the collateral securing the loan while the loan is still considered to be performing, thus preventing the need to move the loan to nonaccrual status. Impairment is measured on a loan-by-loan basis based on the determination of the most probable source of repayment which is usually liquidation of the underlying collateral, but may also include discounted future cash flows, or in rare cases, the market value of the loan itself. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement. At March 31, 2016, impaired loans totaled $2.2 million, all of which were valued on a nonrecurring basis at the lower of cost or market value of the underlying collateral. Impaired loans decreased $201,783 from December 31, 2015 due to one loan being transferred to other real estate owned for $233,767 and approximately $107,000 in loan balance reductions through pay downs, partially offset by one loan being deemed impaired for approximately $138,000 during the three months ended March 31, 2016. Market values were obtained using independent appraisals, updated in accordance with our reappraisal policy, or other market data such as recent offers to the borrower. As of March 31, 2016, we had loans totaling approximately $240,000 that were classified in accordance with our loan rating policies but were not considered impaired. The following table summarizes information relative to impaired loans, by portfolio class, at March 31, 2016 and December 31, 2015. Unpaid Average Year to date principal Recorded Related impaired interest balance investment allowance investment income March 31, 2016 With no related allowance recorded: Single and multifamily residential real estate $ - $ - $ - $ 205,715 $ - Construction and development 138,454 138,454 - 157,751 3,004 Commercial real estate - other 1,180,984 1,180,984 - 798,236 8,488 Commercial business - - - 31,007 - With related allowance recorded: Single and multifamily residential real estate 141,645 141,645 100,045 206,156 - Construction and development 40,500 40,500 10,500 139,853 - Commercial real estate - other 677,233 677,233 227,833 741,444 - Commercial business - - - 9,069 - Consumer - - - - - Total: Single and multifamily residential real estate 141,645 141,645 100,045 411,871 - Construction and development 178,954 178,954 10,500 297,604 3,004 Commercial real estate - other 1,858,217 1,858,217 227,833 1,539,680 8,488 Commercial business - - - 40,076 - Consumer - - - - - $ 2,178,816 $ 2,178,816 $ 338,378 $ 2,289,231 $ 11,492 December 31, 2015 With no related allowance recorded: Single and multifamily residential real estate $ — $ — $ — $ 411,430 $ 21,667 Construction and development — — — 177,047 — Commercial real estate - other 905,968 905,968 — 415,488 29,423 Commercial business — — — 62,015 — Consumer — — — — — With related allowance recorded: Single and multifamily residential real estate 236,938 236,938 163,138 270,668 — Construction and development 40,500 40,500 10,500 239,206 727 Commercial real estate - other 1,197,193 1,197,193 201,793 805,654 46,761 Commercial business — — — 18,139 2,119 Consumer — — — — — Total: Single and multifamily residential real estate 236,938 236,938 163,138 682,098 21,667 Construction and development 40,500 40,500 10,500 416,253 727 Commercial real estate - other 2,103,161 2,103,161 201,793 1,221,142 76,184 Commercial business — — — 80,154 2,119 Consumer — — — — — $ 2,380,599 $ 2,380,599 $ 375,431 $ 2,399,647 $ 100,697 TDRs are loans which have been restructured from their original contractual terms and include concessions that would not otherwise have been granted outside of the financial difficulty of the borrower. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of our workout plan for individual loan relationships, we may restructure loan terms to assist borrowers facing challenges in the current economic environment. The purpose of a TDR is to facilitate ultimate repayment of the loan. Our policy with respect to accrual of interest on loans restructured in a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms; continued accrual of interest at the restructured interest rate is likely. If a borrower was materially delinquent on payments prior to the restructuring, but shows capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual going forward. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. We will continue to closely monitor these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured note terms. At March 31, 2016 the principal balance of TDRs was approximately $138,000. At December 31, 2015, the principal balance of TDRs was zero as the one loan constituting our sole TDR had been transferred to other real estate owned. As of March 31, 2016, the carrying balance consisted of one performing loan. The loan defaulted in 2015 but was made current in 2016. There were no changes to the loan terms as the loan is scheduled to be repaid in full in April 2016. There were no loans modified as troubled debt restructurings within the previous 12-month period for which there was a payment default during the three months ended March 31, 2016. Provision and Allowance for Loan Losses An allowance for loan losses is maintained at a level deemed appropriate by management to adequately provide for known and inherent losses in the loan portfolio. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The provision and 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 both a specific and a general component. The specific component relates to loans that are impaired loans as defined in FASB ASC Topic 310, “Receivables.” For such loans, an allowance is established when either the discounted cash flows or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. The following table summarizes activity related to our allowance for loan losses for the three months ended March 31, 2016 and 2015, by portfolio segment. Single and multifamily Construction Commercial residential and real estate - Commercial real estate development other business Consumer Total March 31, 2016 Allowance for loan losses: Balance, beginning of period $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Provision (reversal of provision) for loan losses (30,000 ) (60,000 ) 45,000 (28,000 ) 5,000 (68,000 ) Loan charge-offs - - - - - - Loan recoveries - - - - 1,312 1,312 Net loans charged-off - - - - 1,312 1,312 Balance, end of period $ 235,797 $ 124,130 $ 484,830 $ 216,679 $ 11,385 $ 1,072,821 Individually reviewed for impairment $ 100,045 $ 10,500 $ 227,833 $ - $ - $ 338,378 Collectively reviewed for impairment 135,752 113,630 256,997 216,679 11,385 734,443 Total allowance for loan losses $ 235,797 $ 124,130 $ 484,830 $ 216,679 $ 11,385 $ 1,072,821 Gross loans, end of period: Individually reviewed for impairment $ 141,645 $ 178,954 $ 1,858,217 $ - $ - $ 2,178,816 Collectively reviewed for impairment 14,480,522 8,357,333 20,826,986 17,693,369 1,545,720 62,903,930 Total loans (gross of deferred fees) $ 14,622,167 $ 8,536,287 $ 22,685,203 $ 17,693,369 $ 1,545,720 $ 65,082,746 March 31, 2015 Allowance for loan losses: Balance, beginning of year $ 160,797 $ 234,130 $ 363,097 $ 184,679 $ 90,073 $ 1,032,776 Provision for loan losses - (20,000 ) (10,000 ) 30,000 - - Loan charge-offs - - (43,267 ) - - (43,267 ) Loan recoveries - - - - - - Net loans charged-off - - (43,267 ) - - (43,267 ) Balance, end of period $ 160,797 $ 214,130 $ 309,830 $ 214,679 $ 90,073 $ 989,509 Individually reviewed for impairment $ - $ - $ 34,693 $ - $ - $ 34,693 Collectively reviewed for impairment 160,797 214,130 275,137 214,679 90,073 954,816 Total allowance for loan losses $ 160,797 $ 214,130 $ 309,830 $ 214,679 $ 90,073 $ 989,509 Gross loans, end of period: Individually reviewed for impairment $ 725,590 $ - $ 936,484 $ - $ - $ 1,662,074 Collectively reviewed for impairment 16,307,579 8,624,278 23,749,815 16,486,540 1,288,995 66,457,207 Total loans (gross of deferred fees) $ 17,033,169 $ 8,624,278 $ 24,686,299 $ 16,486,540 $ 1,288,995 $ 68,119,281 March 31, 2016 March 31, 2015 Nonaccrual loans $ 1,338,391 $ 190,790 Average gross loans 65,898,821 68,362,619 Net loans charged-off as a percentage of average gross loans .00 % .00 % Allowance for loan losses as a percentage of total gross loans 1.65 % 1.45 % Allowance for loan losses as a percentage of non-accrual loans 80.16 % 518.6 % Portions of the allowance for loan losses may be allocated for specific loans or portfolio segments. However, the entire allowance for loan losses is available for any loan that, in management’s judgment, should be charged-off. The general reserve as a percentage of loans collectively reviewed for impairment remained unchanged at 1.17% at March 31, 2016 and December 31, 2015, following our reversal of loan loss provision in the amount of $68,000 as of March 31, 2016. The reversal was directly attributable to a recovery on a loan that was specifically reserved for in the September 30, 2015 quarter. While management utilizes the best judgment and information available to it, the ultimate adequacy of the allowance for loan losses depends on a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates, and the view of the regulatory authorities toward loan classifications. If delinquencies and defaults increase, we may be required to increase our provision for loan losses, which would adversely affect our results of operations and financial condition. There can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period. Maturities and Sensitivity of Loans to Changes in Interest Rates The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties. After one but One year or within five After five less years years Total March 31, 2016 Single and multifamily residential real estate $ 3,445,323 $ 6,568,869 $ 4,607,975 $ 14,622,167 Construction and development 4,152,055 4,090,660 293,572 8,536,287 Commercial real estate - other 5,193,281 16,650,258 841,664 22,685,203 Commercial business 4,281,860 12,788,076 623,433 17,693,369 Consumer 533,100 928,189 84,431 1,545,720 Total $ 17,605,619 $ 41,026,052 $ 6,451,075 $ 65,082,746 After one but One year or within five After five less years years Total December 31, 2015 Single and multifamily residential real estate $ 4,107,456 $ 7,977,523 $ 4,349,743 $ 16,434,722 Construction and development 2,850,334 3,915,218 520,907 7,286,459 Commercial real estate - other 5,740,738 17,556,599 2,262,606 25,559,943 Commercial business 5,170,004 11,334,906 522,144 17,027,054 Consumer 551,733 749,455 68,036 1,369,224 Total $ 18,420,265 $ 41,533,701 $ 7,723,436 $ 67,677,402 Loans maturing after one year with: March 31, 2016 December 31, 2015 Fixed interest rates $ 16,647,522 $ 16,892,651 Floating interest rates $ 30,829,605 $ 32,364,486

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2016
Fair Value [Abstract]
FAIR VALUE	NOTE 6 – FAIR VALUE Assets and Liabilities Measured at Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are detailed in Note 2. Available-for-sale investment securities ($10,587,515 and $10,687,851 at March 31, 2016 and December 31, 2015, respectively) are carried at fair value and measured on a recurring basis using Level 2 inputs. Fair values are estimated by using bid prices and quoted prices of pools or tranches of securities with similar characteristics. We do not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve within the allowance for loan losses is established or the loan is charged down to the fair value less costs to sell. At March 31, 2016, all impaired loans were evaluated on a nonrecurring basis based on the market value of the underlying collateral. Market values are generally obtained using independent appraisals or other market data, which the Company considers to be Level 3 inputs. The aggregate carrying amount, net of specific reserves, of impaired loans carried at fair value at March 31, 2016 and December 31, 2015 was $1.8 million and $2.0 million, respectively. Other real estate owned and repossessed assets, generally consisting of properties or other collateral obtained through foreclosure or in satisfaction of loans, are carried at the lower or market value and measured on a non-recurring basis. Market values are generally obtained using independent appraisals which are generally prepared using the income or market valuation approach, adjusted for estimated selling costs which the Company considers to be Level 3 inputs. The carrying amount of other real estate owned and repossessed assets carried at fair value at March 31, 2016 and December 31, 2015 was $2,112,667 and $1,910,220, respectively. The Company utilizes two methods to determine carrying values, either appraised value, or if lower, current net listing price. The Company has no assets whose fair values are measured using Level 1 inputs. The Company also has no liabilities carried at fair value or measured at fair value. For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2016, the significant observable inputs used in the fair value measurements were as follows: Fair Value at Significant Description March 31, 2016 Valuation Technique Unobservable Inputs Other real estate owned and repossessed assets $2,112,667 Appraised value Discounts to reflect current market conditions, abbreviated holding period, and estimated costs to sell Impaired loans $1,840,438 Internal assessment of Adjustments to estimated appraised value value based on recent sales of comparable collateral For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2015, the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at Significant Description December 31, 2015 Valuation Technique Unobservable Inputs Other real estate owned and repossessed assets $1,910,220 Appraised value Discounts to reflect current market conditions and estimated costs to sell Impaired loans $2,005,168 Internal assessment of Adjustments to estimated appraised value value based on recent sales of comparable collateral Disclosures about Fair Value of Financial Instruments FASB ASC Topic 825, “Financial Instruments” requires disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. FASB ASC Topic 825 defines a financial instrument as cash, evidence of an ownership interest in an entity or contractual obligations which require the exchange of cash or other financial instruments. Certain items are specifically excluded from the disclosure requirements, including the Company’s common stock, property, equipment and software, and other assets and liabilities. Fair value approximates carrying value for the following financial instruments due to the short-term nature of the instrument: cash and due from banks, federal funds sold, and securities sold under agreements to repurchase. Investment securities are valued using quoted market prices. No ready market exists for non-marketable equity securities, and they have no quoted market value. However, redemption of these stocks has historically been at par value. Accordingly, the carrying amounts are deemed to be a reasonable estimate of fair value. Fair value of loans is based on the discounted present value of the estimated future cash flows. Discount rates used in these computations approximate the rates currently offered for similar loans of comparable terms and credit quality. Fair value for demand deposit accounts and interest bearing accounts with no fixed maturity date is equal to the carrying value. Fair value of certificate of deposit accounts are estimated by discounting cash flows from expected maturities using current interest rates on similar instruments. Fair value for FHLB advances is based on discounted cash flows using the Company’s current incremental borrowing rate. The Company has used management’s best estimate of fair value based on the above assumptions. Thus, the fair values presented may not be the amounts that could be realized in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses, which would be incurred in an actual sale or settlement, are not taken into consideration in the fair value presented. The estimated fair values of the Company’s financial instruments at March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,118,939 $ 4,118,939 $ 4,118,939 $ - $ - Interest bearing deposits in other institutions 1,750,000 1,750,000 - 1,750,000 - Federal funds sold 7,787,000 7,787,000 7,787,000 - - Investment securities available for sale 10,587,515 10,587,515 - 10,587,515 - Non-marketable equity securities 380,050 380,050 - 380,050 - Loans, net 63,857,131 63,922,061 - - 63,922,061 Financial Liabilities: Accounts payable and accrued expenses 680,812 680,812 - 680,812 - Deposits 79,968,990 79,544,718 - 79,544,718 - Securities sold under agreements to repurchase 41,229 41,229 - 41,229 - Carrying December 31, 2015 Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,453,795 $ 5,453,795 $ 5,453,795 $ - $ - Interest bearing deposits in other institutions 1,500,000 1,500,000 - 1,500,000 - Federal funds sold 8,446,000 8,446,000 8,446,000 - - Investment securities available for sale 10,687,851 10,687,851 - 10,687,851 - Non-marketable equity securities 392,500 392,500 - 392,500 - Loans, net 66,402,246 66,873,213 - - 66,873,213 Financial Liabilities: Deposits 83,567,325 83,538,827 - 83,538,827 - Securities sold under agreements to repurchase 113,080 113,080 - 113,080 -

Stock Compensation Plans

Stock Compensation Plans	3 Months Ended
	Mar. 31, 2016
Stock Compensation Plans [Abstract]
STOCK COMPENSATION PLANS	NOTE 7 – STOCK COMPENSATION PLANS On July 26, 2005, the Company adopted the Independence Bancshares, Inc. 2005 Stock Incentive Plan (the “2005 Incentive Plan”) for the benefit of the directors, officers and employees. The 2005 Incentive Plan initially reserved up to 260,626 shares of the Company’s common stock for the issuance of stock options and contained evergreen provision, which provided that the maximum number of shares to be issued under the 2005 Incentive Plan would automatically increase each time the Company issues additional shares of common stock such that the total number of shares issuable under the 2005 Incentive Plan would at all times equal 12.5% of the then outstanding shares of common stock. In February 2013, our board of directors amended the 2005 Incentive Plan to cap the number of shares issuable thereunder at 2,466,720 and adopted the Independence Bancshares, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”). The 2013 Incentive Plan is an omnibus equity incentive plan which provides for the granting of various types of equity compensation awards, including stock options, restricted stock, and stock appreciation rights, to the Company’s employees and directors. Our board of directors submitted the 2013 Incentive Plan to the shareholders of the Company for their consideration at the 2013 annual shareholders’ meeting and it was approved. As of March 31, 2016 and December 31, 2015, 3,097,255 total options were outstanding at a weighted average price of $1.11. Of the 3,097,255 options outstanding, 3,022,255 options have vested. Compensation expense related to stock options granted was $5,064 and $80,817 for the three months ended March 31, 2016 and March 31, 2015, respectively. Compensation expense is based on the fair value of the option estimated at the date of grant using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight line basis over the vesting period of the option.

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2016
Business Segments [Abstract]
BUSINESS SEGMENTS	NOTE 8 – BUSINESS SEGMENTS The Company reports its activities as four business segments - Community Banking, Transaction Services, Asset Management and Parent Only - as defined in Note 1. In determining proper segment definition, the Company considers the materiality of a potential segment and components of the business about which financial information is available and regularly evaluated, relative to a resource allocation and performance assessment. The following table presents selected financial information for the Company’s reportable business segments for the three months ended March 31, 2016 and 2015. Holding Company Community Transaction Asset Parent Banking Services Management Only Total For the three months ended March 31, 2016 Interest income $ 915,052 $ — $ — $ — $ 915,052 Interest expense 78,632 — — — 78,632 Net interest income (expense) 836,420 — — — 836,420 Provision for loan losses (68,000 ) — — — (68,000 ) Noninterest income 198,435 — — — 198,435 Noninterest expense 1,049,922 100,482 (5,510 ) 258,391 1,403,285 Income (loss) before income 52,933 (100,482 ) 5,510 (258,391 ) (300,430 ) taxes Income taxes — — — — — Net income (loss) $ 52,933 $ (100,482 ) $ 5,510 $ (258,391 ) $ (300,430 ) Community Banking Holding Company (1) Eliminations Total As of March 31, 2016 Cash and due from banks $ 4,123,907 $ 2,220,513 $ (2,225,481 ) $ 4,118,939 Interest bearing deposits in other institutions 1,750,000 — — 1,750,000 Federal funds sold 7,787,000 — — 7,787,000 Investment securities 10,587,515 — — 10,587,515 Loans receivable, net 63,857,131 — — 63,857,131 Other real estate owned 1,512,667 600,000 — 2,112,667 Property, equipment and software, 2,039,725 112,953 — 2,152,678 net Other assets 706,902 47,264 — 754,166 Total assets $ 92,364,847 $ 2,980,730 $ (2,225,481 ) $ 93,120,096 Deposits $ 82,194,471 $ — $ (2,225,481 ) $ 79,968,990 Securities sold under agreements to repurchase 41,229 — — 41,229 Accrued and other liabilities 234,254 455,809 — 690,063 Shareholders’ equity 9,894,893 2,524,921 — 12,419,814 Total liabilities and shareholders’ equity $ 92,364,847 $ 2,980,730 $ (2,225,481 ) $ 93,120,096 (1) Excludes investment in wholly-owned Bank subsidiary Holding Company Transaction Asset Parent Community Banking Services Management Only Eliminations Total For the three months ended March 31, 2015 Interest income $ 931,390 $ — $ — $ — $ — $ 931,390 Interest expense 75,708 — — — — 75,708 Net interest income (expense) 855,682 — — — — 855,682 Provision for loan losses — — — — — — Noninterest income 109,561 33,327 — 1,318 — 144,206 Noninterest expense 983,184 276,432 (8,884 ) 121,155 (23,021 ) 1,348,866 Income (loss) before income taxes (17,941 ) (243,105 ) 8,884 (129,420 ) 23,021 (358,561 ) Income taxes 5,080 — — — — 5,080 Net income (loss) $ (23,021 ) $ (243,105 ) $ 8,884 $ (129,420 ) $ 23,021 $ (363,641 ) Community Banking Holding Company (1) Eliminations Total As of March 31, 2015 Cash and due from banks $ 5,785,561 $ 20,683 $ (15,985 ) $ 5,790,259 Federal funds sold 4,124,000 — — 4,124,000 Investment securities 15,201,271 — — 15,201,271 Loans receivable, net 66,980,651 808,189 — 66,980,651 Other real estate owned 1,603,000 754,100 — 2,357,100 Property and equipment, net 2,098,787 237,816 — 2,336,603 Other assets 760,549 423,214 — 1,183,763 Total assets $ 96,553,819 $ 1,435,813 $ (15,985 ) $ 97,973,647 Deposits $ 85,795,480 $ — $ (15,985 ) $ 85,779,495 Securities sold under agreements to repurchase 42,272 — — 42,272 Note payable — 149,774 — 149,774 Accrued and other liabilities 118,627 2,691,613 — 2,810,240 Shareholders’ equity 10,597,440 (1,405,574 ) — 9,191,866 Total liabilities and shareholders’ equity $ 96,553,819 $ 1,435,813 $ (15,985 ) $ 97,973,647 (1) Excludes investment in wholly-owned Bank subsidiary

Note Payable

Note Payable	3 Months Ended
	Mar. 31, 2016
Loans [Abstract]
NOTE PAYABLE	NOTE 9 — NOTE PAYABLE In September 2014, the Company closed a $600,000 one-year borrowing. The loan was provided by a board member of the Bank and as a result needed to comply with Regulation O. Proceeds of the loan were used primarily to fund the research and development effort in the Transaction Services business segment. The loan was collateralized by a first perfected security interest in certain real estate assets of the Company. The loan was fully drawn at closing, and carried an annual interest rate of 7% per annum for the first six months on any outstanding borrowings and then stepped up to 8% per annum for the remaining six months of the term. On March 18, 2015, one of the parcels of real estate was sold and a payment was made on the loan so that the outstanding balance of the loan was $149,774, which was equal to the balance on June 30, 2015. The outstanding balance of $149,774 plus accrued interest was repaid in its entirety on September 3, 2015.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents - For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks and federal funds sold. Generally, federal funds are sold for one-day periods. Due to the short term nature of cash and cash equivalents, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value. At March 31, 2016 and December 31, 2015, the Company had restricted cash totaling $2,000 with the FHLB. The Company places its deposits and correspondent accounts with and sells its federal funds to high quality institutions. Management believes credit risk associated with correspondent accounts is not significant.
Net Loss per Common Share	Net Loss per Common Share - Basic loss per common share represents net loss divided by the weighted average number of common shares outstanding during the period. Diluted loss per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and warrants and are determined using the treasury stock method. For the three month periods ended March 31, 2016 and March 31, 2015, as a result of the Company’s net loss, all of the potential common shares were considered anti-dilutive.
Research and Development	Research and Development – All costs incurred to establish the technological feasibility of computer software to be sold, leased or otherwise marketed as research and development are expensed as incurred. Once technological feasibility has been established, the subsequent costs of producing, coding and testing the products should be capitalized. The expensing of computer software costs is discontinued when the product is available for general release for customers. The Company has not achieved technological feasibility and has expensed all computer software purchases and development expenses related to research and development of its digital banking, payments and transaction services business and on September 25, 2015 the Company suspended further development of its digital banking and payments and transaction services business.
Fair Value Measurements	Fair Value Measurements - The Company determines the fair market values of its financial instruments based on the fair value hierarchy established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”), which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investment securities) or on a nonrecurring basis (for example, impaired loans). ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 – Valuations are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuations include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Income Taxes	Income Taxes - The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes". Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets if it is determined to be “more likely than not” that all or some portion of the potential deferred tax asset will not be realized. We did not recognize any income tax benefit or expense for the three month periods ended March 31, 2016 and 2015 due to our net operating loss carryforward position. Accounting literature states that a deferred tax asset should be reduced by a valuation allowance if, based on the weight of all available evidence, it is more likely than not (a likelihood of more than 50%) that some portion or the entire deferred tax asset will not be realized. The determination of whether a deferred tax asset is realizable is based on weighting all available evidence, including both positive and negative evidence. In making such judgments, significant weight is given to evidence that can be objectively verified. We will continue to analyze our deferred tax assets and related valuation allowance on a quarterly basis, taking into account performance compared to forecasted earnings as well as current economic and internal information. The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities, and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flows. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements - The following is a summary of recent authoritative pronouncements that may affect our accounting, reporting, and disclosure of financial information: In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under the U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted, provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2016
Investment Securities [Abstract]
Schedule of amortized costs and fair values of investment securities available for sale	March 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value Government-sponsored mortgage-backed $ 4,104,988 $ 77,853 $ (26,968 ) $ 4,155,873 Municipals, tax-exempt 4,896,412 182,327 (3,557 ) 5,075,182 Municipals, taxable 1,306,013 50,447 - 1,356,460 Total investment securities $ 10,307,413 $ 310,627 $ (30,525 ) $ 10,587,515 December 31, 2015 Amortized Gross Unrealized Fair Cost Gains Losses Value Government-sponsored mortgage-backed $ 4,290,680 $ 66,350 $ (44,581 ) $ 4,312,449 Municipals, tax-exempt 4,916,379 140,335 (17,267 ) 5,039,447 Municipals, taxable 1,308,298 27,657 - 1,335,955 Total investment securities $ 10,515,357 $ 234,342 $ (61,848 ) $ 10,687,851
Securities with unrealized losses	Securities in an Unrealized Securities in an Unrealized Loss Position for Less than Loss Position for More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government-sponsored mortgage-backed $ 611,378 $ 849 $ 756,676 $ 26,119 $ 1,368,054 $ 26,968 Municipals, tax-exempt - - 324,570 3,557 324,570 3,557 Total temporarily impaired securities $ 611,378 $ 849 $ 1,081,246 $ 29,676 $ 1,692,624 $ 30,525 Securities in an Unrealized Securities in an Unrealized Loss Position for Less than Loss Position for More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government-sponsored mortgage-backed $ 627,542 $ 5,569 $ 764,462 $ 39,012 $ 1,392,004 $ 44,581 Municipals, tax-exempt 323,796 6,249 1,074,440 11,018 1,398,236 17,267 Total temporarily impaired securities $ 951,338 $ 11,818 $ 1,838,902 $ 50,030 $ 2,790,240 $ 61,848
Amortized costs and fair values of investment securities available for sale by contractual maturity	March 31, 2016 Amortized Fair Cost Value Due within one year $ — $ — Due after one through three years — — Due after three through five years — — Due after five through ten years 1,306,014 1,356,460 Due after ten years 9,001,399 9,231,055 Total investment securities $ 10,307,413 $ 10,587,515

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2016
Loans [Abstract]
Summary of delinquencies and nonaccruals, by portfolio class	Single and multifamily Construction Commercial residential and real estate - Commercial real estate development other business Consumer Total March 31, 2016 30-59 days past due $ 46,109 $ - $ - $ - $ - $ 46,109 60-89 days past due - - - - - - Nonaccrual 141,645 40,500 1,156,246 - - 1,338,391 Total past due and nonaccrual 187,754 40,500 1,156,246 - - 1,384,500 Current 14,434,413 8,495,787 21,528,957 17,693,369 1,545,720 63,698,246 Total loans (gross of $ 14,622,167 $ 8,536,287 $ 22,685,203 $ 17,693,369 $ 1,545,720 $ 65,082,746 deferred fees) Deferred fees (152,794 ) Loan loss reserve (1,072,821 ) Total Loans, net $ 63,857,131 Single and multifamily Construction Commercial residential and real estate - Commercial real estate development other business Consumer Total December 31, 2015 30-59 days past due $ 75,890 $ - $ - $ - $ - $ 75,890 60-89 days past due 63,702 250,378 - - - 314,080 Nonaccrual 168,879 40,500 1,390,013 65,798 - 1,655,190 Total past due and nonaccrual 308,471 290,878 1,390,013 65,798 - 2,055,160 Current 16,126,251 6,995,581 24,169,930 16,961,256 1,369,224 65,622,242 Total loans (gross of $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402 deferred fees) Deferred fees (135,647 ) Loan loss reserve (1,139,509 ) Total Loans, net $ 66,402,246
Summarizes management's internal credit risk grades, by portfolio class	Single and multifamily Construction Commercial residential and real estate - Commercial March 31, 2016 real estate development other business Consumer Total Pass Loans $ 8,742,268 $ 1,655,768 $ - $ - $ 1,545,720 $ 11,943,756 Grade 1 - Prime - - - - - - Grade 2 - Good - - 118,704 - - 118,704 Grade 3 - Acceptable 2,456,493 1,437,514 7,923,364 7,541,362 - 19,358,733 Grade 4 – Acceptable w/ Care 3,218,990 5,189,424 12,179,359 9,066,421 - 29,654,194 Grade 5 – Special Mention 62,771 74,627 605,559 845,648 - 1,588,605 Grade 6 - Substandard 141,645 178,954 1,858,217 239,938 - 2,418,754 Grade 7 - Doubtful - - - - - - Total loans (gross of $ 14,622,167 $ 8,536,287 $ 22,685,203 $ 17,693,369 $ 1,545,720 $ 65,082,746 deferred fees) Single and multifamily Construction Commercial residential and real estate - Commercial December 31, 2015 real estate development other business Consumer Total Pass Loans $ 8,340,816 $ 1,350,332 $ - $ - $ 1,369,224 $ 11,060,372 Grade 1 - Prime - - - - - - Grade 2 - Good - - - - - - Grade 3 - Acceptable 4,479,116 809,004 8,121,125 7,667,706 - 21,076,951 Grade 4 – Acceptable w/ Care 3,382,209 4,759,864 14,724,468 8,199,385 - 31,065,926 Grade 5 – Special Mention 63,702 76,381 611,189 846,106 - 1,597,378 Grade 6 - Substandard 168,879 290,878 2,103,161 313,857 - 2,876,775 Grade 7 - Doubtful - - - - - - Total loans (gross of $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402 deferred fees)
Summarizes information relative to impaired loans, by portfolio class	Unpaid Average Year to date principal Recorded Related impaired interest balance investment allowance investment income March 31, 2016 With no related allowance recorded: Single and multifamily residential real estate $ - $ - $ - $ 205,715 $ - Construction and development 138,454 138,454 - 157,751 3,004 Commercial real estate - other 1,180,984 1,180,984 - 798,236 8,488 Commercial business - - - 31,007 - With related allowance recorded: Single and multifamily residential real estate 141,645 141,645 100,045 206,156 - Construction and development 40,500 40,500 10,500 139,853 - Commercial real estate - other 677,233 677,233 227,833 741,444 - Commercial business - - - 9,069 - Consumer - - - - - Total: Single and multifamily residential real estate 141,645 141,645 100,045 411,871 - Construction and development 178,954 178,954 10,500 297,604 3,004 Commercial real estate - other 1,858,217 1,858,217 227,833 1,539,680 8,488 Commercial business - - - 40,076 - Consumer - - - - - $ 2,178,816 $ 2,178,816 $ 338,378 $ 2,289,231 $ 11,492 December 31, 2015 With no related allowance recorded: Single and multifamily residential real estate $ — $ — $ — $ 411,430 $ 21,667 Construction and development — — — 177,047 — Commercial real estate - other 905,968 905,968 — 415,488 29,423 Commercial business — — — 62,015 — Consumer — — — — — With related allowance recorded: Single and multifamily residential real estate 236,938 236,938 163,138 270,668 — Construction and development 40,500 40,500 10,500 239,206 727 Commercial real estate - other 1,197,193 1,197,193 201,793 805,654 46,761 Commercial business — — — 18,139 2,119 Consumer — — — — — Total: Single and multifamily residential real estate 236,938 236,938 163,138 682,098 21,667 Construction and development 40,500 40,500 10,500 416,253 727 Commercial real estate - other 2,103,161 2,103,161 201,793 1,221,142 76,184 Commercial business — — — 80,154 2,119 Consumer — — — — — $ 2,380,599 $ 2,380,599 $ 375,431 $ 2,399,647 $ 100,697
Schedule of activity related to allowance for loan losses	Single and multifamily Construction Commercial residential and real estate - Commercial real estate development other business Consumer Total March 31, 2016 Allowance for loan losses: Balance, beginning of period $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Provision (reversal of provision) for loan losses (30,000 ) (60,000 ) 45,000 (28,000 ) 5,000 (68,000 ) Loan charge-offs - - - - - - Loan recoveries - - - - 1,312 1,312 Net loans charged-off - - - - 1,312 1,312 Balance, end of period $ 235,797 $ 124,130 $ 484,830 $ 216,679 $ 11,385 $ 1,072,821 Individually reviewed for impairment $ 100,045 $ 10,500 $ 227,833 $ - $ - $ 338,378 Collectively reviewed for impairment 135,752 113,630 256,997 216,679 11,385 734,443 Total allowance for loan losses $ 235,797 $ 124,130 $ 484,830 $ 216,679 $ 11,385 $ 1,072,821 Gross loans, end of period: Individually reviewed for impairment $ 141,645 $ 178,954 $ 1,858,217 $ - $ - $ 2,178,816 Collectively reviewed for impairment 14,480,522 8,357,333 20,826,986 17,693,369 1,545,720 62,903,930 Total loans (gross of deferred fees) $ 14,622,167 $ 8,536,287 $ 22,685,203 $ 17,693,369 $ 1,545,720 $ 65,082,746 March 31, 2015 Allowance for loan losses: Balance, beginning of year $ 160,797 $ 234,130 $ 363,097 $ 184,679 $ 90,073 $ 1,032,776 Provision for loan losses - (20,000 ) (10,000 ) 30,000 - - Loan charge-offs - - (43,267 ) - - (43,267 ) Loan recoveries - - - - - - Net loans charged-off - - (43,267 ) - - (43,267 ) Balance, end of period $ 160,797 $ 214,130 $ 309,830 $ 214,679 $ 90,073 $ 989,509 Individually reviewed for impairment $ - $ - $ 34,693 $ - $ - $ 34,693 Collectively reviewed for impairment 160,797 214,130 275,137 214,679 90,073 954,816 Total allowance for loan losses $ 160,797 $ 214,130 $ 309,830 $ 214,679 $ 90,073 $ 989,509 Gross loans, end of period: Individually reviewed for impairment $ 725,590 $ - $ 936,484 $ - $ - $ 1,662,074 Collectively reviewed for impairment 16,307,579 8,624,278 23,749,815 16,486,540 1,288,995 66,457,207 Total loans (gross of deferred fees) $ 17,033,169 $ 8,624,278 $ 24,686,299 $ 16,486,540 $ 1,288,995 $ 68,119,281
Schedule of non accrual loan activities	March 31, 2016 March 31, 2015 Nonaccrual loans $ 1,338,391 $ 190,790 Average gross loans 65,898,821 68,362,619 Net loans charged-off as a percentage of average gross loans .00 % .00 % Allowance for loan losses as a percentage of total gross loans 1.65 % 1.45 % Allowance for loan losses as a percentage of non-accrual loans 80.16 % 518.6 %
Schedule of loan maturity distribution by type and related interest rate	After one but One year or within five After five less years years Total March 31, 2016 Single and multifamily residential real estate $ 3,445,323 $ 6,568,869 $ 4,607,975 $ 14,622,167 Construction and development 4,152,055 4,090,660 293,572 8,536,287 Commercial real estate - other 5,193,281 16,650,258 841,664 22,685,203 Commercial business 4,281,860 12,788,076 623,433 17,693,369 Consumer 533,100 928,189 84,431 1,545,720 Total $ 17,605,619 $ 41,026,052 $ 6,451,075 $ 65,082,746 After one but One year or within five After five less years years Total December 31, 2015 Single and multifamily residential real estate $ 4,107,456 $ 7,977,523 $ 4,349,743 $ 16,434,722 Construction and development 2,850,334 3,915,218 520,907 7,286,459 Commercial real estate - other 5,740,738 17,556,599 2,262,606 25,559,943 Commercial business 5,170,004 11,334,906 522,144 17,027,054 Consumer 551,733 749,455 68,036 1,369,224 Total $ 18,420,265 $ 41,533,701 $ 7,723,436 $ 67,677,402 Loans maturing after one year with: March 31, 2016 December 31, 2015 Fixed interest rates $ 16,647,522 $ 16,892,651 Floating interest rates $ 30,829,605 $ 32,364,486

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value [Abstract]
Fair value assets measured on non recurring basis unobservable inputs	Fair Value at Significant Description March 31, 2016 Valuation Technique Unobservable Inputs Other real estate owned and repossessed assets $2,112,667 Appraised value Discounts to reflect current market conditions, abbreviated holding period, and estimated costs to sell Impaired loans $1,840,438 Internal assessment of Adjustments to estimated appraised value value based on recent sales of comparable collateral For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2015, the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at Significant Description December 31, 2015 Valuation Technique Unobservable Inputs Other real estate owned and repossessed assets $1,910,220 Appraised value Discounts to reflect current market conditions and estimated costs to sell Impaired loans $2,005,168 Internal assessment of Adjustments to estimated appraised value value based on recent sales of comparable collateral
Estimated fair values of the Company's financial instruments	March 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,118,939 $ 4,118,939 $ 4,118,939 $ - $ - Interest bearing deposits in other institutions 1,750,000 1,750,000 - 1,750,000 - Federal funds sold 7,787,000 7,787,000 7,787,000 - - Investment securities available for sale 10,587,515 10,587,515 - 10,587,515 - Non-marketable equity securities 380,050 380,050 - 380,050 - Loans, net 63,857,131 63,922,061 - - 63,922,061 Financial Liabilities: Accounts payable and accrued expenses 680,812 680,812 - 680,812 - Deposits 79,968,990 79,544,718 - 79,544,718 - Securities sold under agreements to repurchase 41,229 41,229 - 41,229 - Carrying December 31, 2015 Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,453,795 $ 5,453,795 $ 5,453,795 $ - $ - Interest bearing deposits in other institutions 1,500,000 1,500,000 - 1,500,000 - Federal funds sold 8,446,000 8,446,000 8,446,000 - - Investment securities available for sale 10,687,851 10,687,851 - 10,687,851 - Non-marketable equity securities 392,500 392,500 - 392,500 - Loans, net 66,402,246 66,873,213 - - 66,873,213 Financial Liabilities: Deposits 83,567,325 83,538,827 - 83,538,827 - Securities sold under agreements to repurchase 113,080 113,080 - 113,080 -

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2016
Business Segments [Abstract]
Summary of selected financial information for Company's reportable business segments	Holding Company Community Transaction Asset Parent Banking Services Management Only Total For the three months ended March 31, 2016 Interest income $ 915,052 $ — $ — $ — $ 915,052 Interest expense 78,632 — — — 78,632 Net interest income (expense) 836,420 — — — 836,420 Provision for loan losses (68,000 ) — — — (68,000 ) Noninterest income 198,435 — — — 198,435 Noninterest expense 1,049,922 100,482 (5,510 ) 258,391 1,403,285 Income (loss) before income 52,933 (100,482 ) 5,510 (258,391 ) (300,430 ) taxes Income taxes — — — — — Net income (loss) $ 52,933 $ (100,482 ) $ 5,510 $ (258,391 ) $ (300,430 ) Community Banking Holding Company (1) Eliminations Total As of March 31, 2016 Cash and due from banks $ 4,123,907 $ 2,220,513 $ (2,225,481 ) $ 4,118,939 Interest bearing deposits in other institutions 1,750,000 — — 1,750,000 Federal funds sold 7,787,000 — — 7,787,000 Investment securities 10,587,515 — — 10,587,515 Loans receivable, net 63,857,131 — — 63,857,131 Other real estate owned 1,512,667 600,000 — 2,112,667 Property, equipment and software, 2,039,725 112,953 — 2,152,678 net Other assets 706,902 47,264 — 754,166 Total assets $ 92,364,847 $ 2,980,730 $ (2,225,481 ) $ 93,120,096 Deposits $ 82,194,471 $ — $ (2,225,481 ) $ 79,968,990 Securities sold under agreements to repurchase 41,229 — — 41,229 Accrued and other liabilities 234,254 455,809 — 690,063 Shareholders’ equity 9,894,893 2,524,921 — 12,419,814 Total liabilities and shareholders’ equity $ 92,364,847 $ 2,980,730 $ (2,225,481 ) $ 93,120,096 (1) Excludes investment in wholly-owned Bank subsidiary Holding Company Transaction Asset Parent Community Banking Services Management Only Eliminations Total For the three months ended March 31, 2015 Interest income $ 931,390 $ — $ — $ — $ — $ 931,390 Interest expense 75,708 — — — — 75,708 Net interest income (expense) 855,682 — — — — 855,682 Provision for loan losses — — — — — — Noninterest income 109,561 33,327 — 1,318 — 144,206 Noninterest expense 983,184 276,432 (8,884 ) 121,155 (23,021 ) 1,348,866 Income (loss) before income taxes (17,941 ) (243,105 ) 8,884 (129,420 ) 23,021 (358,561 ) Income taxes 5,080 — — — — 5,080 Net income (loss) $ (23,021 ) $ (243,105 ) $ 8,884 $ (129,420 ) $ 23,021 $ (363,641 ) Community Banking Holding Company (1) Eliminations Total As of March 31, 2015 Cash and due from banks $ 5,785,561 $ 20,683 $ (15,985 ) $ 5,790,259 Federal funds sold 4,124,000 — — 4,124,000 Investment securities 15,201,271 — — 15,201,271 Loans receivable, net 66,980,651 808,189 — 66,980,651 Other real estate owned 1,603,000 754,100 — 2,357,100 Property and equipment, net 2,098,787 237,816 — 2,336,603 Other assets 760,549 423,214 — 1,183,763 Total assets $ 96,553,819 $ 1,435,813 $ (15,985 ) $ 97,973,647 Deposits $ 85,795,480 $ — $ (15,985 ) $ 85,779,495 Securities sold under agreements to repurchase 42,272 — — 42,272 Note payable — 149,774 — 149,774 Accrued and other liabilities 118,627 2,691,613 — 2,810,240 Shareholders’ equity 10,597,440 (1,405,574 ) — 9,191,866 Total liabilities and shareholders’ equity $ 96,553,819 $ 1,435,813 $ (15,985 ) $ 97,973,647 (1) Excludes investment in wholly-owned Bank subsidiary

Nature of Business and Basis 21

Nature of Business and Basis of Presentation (Details) - USD ($)	Jan. 04, 2016	May. 14, 2015	Aug. 01, 2013	Dec. 31, 2012	May. 31, 2005
Nature of Business and Basis of Presentation (Textual)
Number of shares sold			769,000
Sale of stock, Price per share			$ 0.80
Proceeds from issuance of initial public offering					$ 20,500,000
Proceeds from issuance			$ 615,200
License Costs	$ 275,000
Series A Preferred Stock [Member]
Nature of Business and Basis of Presentation (Textual)
Number of shares sold		8,425
Sale of stock, Price per share		$ 1,000
Proceeds from issuance		$ 8,425,000
Conversion of convertible common stock		1,250
Liquidation preference of per share		$ 1,000
IPO [Member]
Nature of Business and Basis of Presentation (Textual)
Number of shares sold					2,085,010
Sale of stock, Price per share					$ 10
Proceeds from issuance of initial public offering					$ 20,500,000
Private Placement [Member]
Nature of Business and Basis of Presentation (Textual)
Number of shares sold				17,648,750
Sale of stock, Price per share				$ 0.80
Proceeds of common stock in private placement				$ 14,100,000

Liquidity and Capital Conside22

Liquidity and Capital Considerations (Details) - USD ($)	1 Months Ended	3 Months Ended
	Dec. 31, 2015	Mar. 31, 2016
Liquidity and Capital Considerations (Textual)
Cash balances	$ 2,900,000	$ 2,200,000
Real estate held for sale	$ 631,320	600,000
Decrease in liquid assets		720,000
Professional fees and data processing expenses		300,000
Transaction services segment		100,000
Cash and federal funds sold		$ 11,900,000
Percentage of total assets		11.50%
Investment securities available for sale		$ 10,600,000
Pledged outstanding debt		2,600,000
Additional borrowings		36,800,000
Pledges collateral federal reserve bank borrower custody		16,900,000
Federal funds purchased		$ 2,000,000
Investment securities [Member]
Liquidity and Capital Considerations (Textual)
Percentage of total assets	26.70%	24.20%

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies (Textual)
Restricted cash	$ 2,000	$ 2,000

Investment Securities (Details)

Investment Securities (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Available-for-sale Securities [Abstract]
Amortized cost	$ 10,307,413	$ 10,515,357
Gross Unrealized Gains	310,627	234,342
Gross Unrealized Losses	(30,525)	(61,848)
Fair Value	10,587,515	10,687,851
Government-sponsored mortgage-backed [Member]
Available-for-sale Securities [Abstract]
Amortized cost	4,104,988	4,290,680
Gross Unrealized Gains	77,853	66,350
Gross Unrealized Losses	(26,968)	(44,581)
Fair Value	4,155,873	4,312,449
Municipals, tax-exempt [Member]
Available-for-sale Securities [Abstract]
Amortized cost	4,896,412	4,916,379
Gross Unrealized Gains	182,327	140,335
Gross Unrealized Losses	(3,557)	(17,267)
Fair Value	5,075,182	5,039,447
Municipals, taxable [Member]
Available-for-sale Securities [Abstract]
Amortized cost	1,306,013	1,308,298
Gross Unrealized Gains	$ 50,447	$ 27,657
Gross Unrealized Losses
Fair Value	$ 1,356,460	$ 1,335,955

Investment Securities (Details

Investment Securities (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Available-for-sale Securities [Abstract]
Securities Fair Value Loss Position for Less than 12 Months	$ 611,378	$ 951,338
Securities Unrealized losses Loss Position, Less than 12 Months	849	11,818
Securities Fair Value Loss Position for More than 12 Months	1,081,246	1,838,902
Securities Unrealized Losses Loss Position, More than 12 Months	29,676	50,030
Total Fair Value	1,692,624	2,790,240
Total Unrealized Losses	30,525	61,848
Government-sponsored mortgage-backed [Member]
Available-for-sale Securities [Abstract]
Securities Fair Value Loss Position for Less than 12 Months	611,378	627,542
Securities Unrealized losses Loss Position, Less than 12 Months	849	5,569
Securities Fair Value Loss Position for More than 12 Months	756,676	764,462
Securities Unrealized Losses Loss Position, More than 12 Months	26,119	39,012
Total Fair Value	1,368,054	1,392,004
Total Unrealized Losses	$ 26,968	44,581
Municipals, tax-exempt [Member]
Available-for-sale Securities [Abstract]
Securities Fair Value Loss Position for Less than 12 Months		323,796
Securities Unrealized losses Loss Position, Less than 12 Months		6,249
Securities Fair Value Loss Position for More than 12 Months	$ 324,570	1,074,440
Securities Unrealized Losses Loss Position, More than 12 Months	3,557	11,018
Total Fair Value	324,570	1,398,236
Total Unrealized Losses	$ 3,557	$ 17,267

Investment Securities (Detail26

Investment Securities (Details 2) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Amortized costs and fair values of investment securities available for sale by contractual maturity
Due within one year, Amortized Cost
Due after one through three years, Amortized Cost
Due after three through five years, Amortized Cost
Due after five through ten years, Amortized Cost	$ 1,306,014
Due after ten years, Amortized Cost	9,001,399
Total investment securities, Amortized Cost	$ 10,307,413
Due within one year, Fair Value
Due after one through three years, Fair Value
Due after three through five years, Fair Value
Due after five through ten years, Fair Value	$ 1,356,460
Due after ten years, Fair Value	9,231,055
Total investment securities, Fair Value	$ 10,587,515	$ 10,687,851

Investment Securities (Detail27

Investment Securities (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Investment Securities (Textual)
Investment securities, fair value for continuous loss position for less than twelve months	$ 611,378	$ 951,338
Securities Unrealized losses Loss Position, Less than 12 Months	849	11,818
Investment securities, fair value for more than one year	1,081,246	1,838,902
Investment securities, unrealized loss for more than one year	$ 29,676	$ 50,030

Loans (Details)

Loans (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due	$ 46,109	$ 75,890
60-89 days past due		314,080
Nonaccrual loans	$ 1,338,391	1,655,190	$ 190,790
Total past due and nonaccrual	1,384,500	2,055,160
Current	63,698,246	65,622,242
Total loans	65,082,746	67,677,402	68,119,281
Deferred fees	(152,794)	(135,647)
Loan loss reserve	1,072,821	1,139,509	989,509	$ 1,032,776
Total Loans, net	63,857,131	66,402,246
Single and multifamily residential real estate [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due	$ 46,109	75,890
60-89 days past due		63,702
Nonaccrual loans	$ 141,645	168,879
Total past due and nonaccrual	187,754	308,471
Current	14,434,413	16,126,251
Total loans	14,622,167	16,434,722	17,033,169
Loan loss reserve	$ 235,797	$ 265,797	160,797	160,797
Construction and development [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due
60-89 days past due		$ 250,378
Nonaccrual loans	$ 40,500	40,500
Total past due and nonaccrual	40,500	290,878
Current	8,495,787	6,995,581
Total loans	8,536,287	7,286,459	8,624,278
Loan loss reserve	$ 124,130	$ 184,130	214,130	234,130
Commercial [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due
60-89 days past due
Nonaccrual loans	$ 1,156,246	$ 1,390,013
Total past due and nonaccrual	1,156,246	1,390,013
Current	21,528,957	24,169,930
Total loans	22,685,203	25,559,943	24,686,299
Loan loss reserve	$ 484,830	$ 439,830	309,830	363,097
Commercial business [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due
60-89 days past due
Nonaccrual loans		$ 65,798
Total past due and nonaccrual		65,798
Current	$ 17,693,369	16,961,256
Total loans	17,693,369	17,027,054	16,486,540
Loan loss reserve	$ 216,679	$ 244,679	214,679	184,679
Consumer [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due
60-89 days past due
Nonaccrual loans
Total past due and nonaccrual
Current	$ 1,545,720	$ 1,369,224
Total loans	1,545,720	1,369,224	1,288,995
Loan loss reserve	$ 11,385	$ 5,073	$ 90,073	$ 90,073

Loans (Details 1)

Loans (Details 1) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Summary of management's internal credit risk grades
Total loans	$ 65,082,746	$ 67,677,402	$ 68,119,281
Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	14,622,167	16,434,722	17,033,169
Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	8,536,287	7,286,459	8,624,278
Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	22,685,203	25,559,943	24,686,299
Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	17,693,369	17,027,054	16,486,540
Consumer [Member]
Summary of management's internal credit risk grades
Total loans	1,545,720	1,369,224	$ 1,288,995
Pass Loans [Member]
Summary of management's internal credit risk grades
Total loans	11,943,756	11,060,372
Pass Loans [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	8,742,268	8,340,816
Pass Loans [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	$ 1,655,768	$ 1,350,332
Pass Loans [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans
Pass Loans [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans
Pass Loans [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans	$ 1,545,720	$ 1,369,224
Grade 1 - Prime [Member]
Summary of management's internal credit risk grades
Total loans
Grade 1 - Prime [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans
Grade 1 - Prime [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans
Grade 1 - Prime [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans
Grade 1 - Prime [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans
Grade 1 - Prime [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans
Grade 2 - Good [Member]
Summary of management's internal credit risk grades
Total loans	$ 118,704
Grade 2 - Good [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans
Grade 2 - Good [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans
Grade 2 - Good [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	$ 118,704
Grade 2 - Good [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans
Grade 2 - Good [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans
Grade 3 - Acceptable [Member]
Summary of management's internal credit risk grades
Total loans	$ 19,358,733	$ 21,076,951
Grade 3 - Acceptable [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	2,456,493	4,479,116
Grade 3 - Acceptable [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	1,437,514	809,004
Grade 3 - Acceptable [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	7,923,364	8,121,125
Grade 3 - Acceptable [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	$ 7,541,362	$ 7,667,706
Grade 3 - Acceptable [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans
Grade 4 - Acceptable w/Care [Member]
Summary of management's internal credit risk grades
Total loans	$ 29,654,194	$ 31,065,926
Grade 4 - Acceptable w/Care [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	3,218,990	3,382,209
Grade 4 - Acceptable w/Care [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	5,189,424	4,759,864
Grade 4 - Acceptable w/Care [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	12,179,359	14,724,468
Grade 4 - Acceptable w/Care [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	$ 9,066,421	$ 8,199,385
Grade 4 - Acceptable w/Care [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans
Grade 5 - Special Mention [Member]
Summary of management's internal credit risk grades
Total loans	$ 1,588,605	$ 1,597,378
Grade 5 - Special Mention [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	62,771	63,702
Grade 5 - Special Mention [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	74,627	76,381
Grade 5 - Special Mention [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	605,559	611,189
Grade 5 - Special Mention [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	$ 845,648	$ 846,106
Grade 5 - Special Mention [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans
Grade 6 - Substandard [Member]
Summary of management's internal credit risk grades
Total loans	$ 2,418,754	$ 2,876,775
Grade 6 - Substandard [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	141,645	168,879
Grade 6 - Substandard [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	178,954	290,878
Grade 6 - Substandard [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	1,858,217	2,103,161
Grade 6 - Substandard [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	$ 239,938	$ 313,857
Grade 6 - Substandard [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans
Grade 7 - Doubtful [Member]
Summary of management's internal credit risk grades
Total loans
Grade 7 - Doubtful [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans
Grade 7 - Doubtful [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans
Grade 7 - Doubtful [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans
Grade 7 - Doubtful [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans
Grade 7 - Doubtful [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans

Loans (Details 2)

Loans (Details 2) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Summary of information relative to impaired loans, by portfolio class
Total, Unpaid principal balance	$ 2,178,816	$ 2,380,599
Total, Recorded investment	2,178,816	2,380,599
Total, Related allowance	338,378	375,431
Total, Average impaired investment	2,289,231	2,399,647
Total, Interest income	$ 11,492	$ 100,697
Single and multifamily residential real estate [Member]
Summary of information relative to impaired loans, by portfolio class
With no related allowance recorded, Unpaid principal balance
With no related allowance recorded, Recorded investment
With no related allowance, Related allowance
With no related allowance recorded, Average impaired investment	$ 205,715	$ 411,430
With no related allowance recorded, Interest income		21,667
With related allowance recorded, Unpaid principal balance	$ 141,645	236,938
With related allowance recorded, Recorded investment	141,645	236,938
With related allowance recorded, Related allowance	100,045	163,138
With related allowance recorded, Average impaired investment	$ 206,156	$ 270,668
With related allowance recorded, Interest income
Total, Unpaid principal balance	$ 141,645	$ 236,938
Total, Recorded investment	141,645	236,938
Total, Related allowance	100,045	163,138
Total, Average impaired investment	$ 411,871	682,098
Total, Interest income		$ 21,667
Construction and development [Member]
Summary of information relative to impaired loans, by portfolio class
With no related allowance recorded, Unpaid principal balance	$ 138,454
With no related allowance recorded, Recorded investment	$ 138,454
With no related allowance, Related allowance
With no related allowance recorded, Average impaired investment	$ 157,751	$ 177,047
With no related allowance recorded, Interest income	3,004
With related allowance recorded, Unpaid principal balance	40,500	$ 40,500
With related allowance recorded, Recorded investment	40,500	40,500
With related allowance recorded, Related allowance	10,500	10,500
With related allowance recorded, Average impaired investment	$ 139,853	239,206
With related allowance recorded, Interest income		727
Total, Unpaid principal balance	$ 178,954	40,500
Total, Recorded investment	178,954	40,500
Total, Related allowance	10,500	10,500
Total, Average impaired investment	297,604	416,253
Total, Interest income	3,004	727
Commercial real estate - other [Member]
Summary of information relative to impaired loans, by portfolio class
With no related allowance recorded, Unpaid principal balance	1,180,984	905,968
With no related allowance recorded, Recorded investment	$ 1,180,984	$ 905,968
With no related allowance, Related allowance
With no related allowance recorded, Average impaired investment	$ 798,236	$ 415,488
With no related allowance recorded, Interest income	8,488	29,423
With related allowance recorded, Unpaid principal balance	677,233	1,197,193
With related allowance recorded, Recorded investment	677,233	1,197,193
With related allowance recorded, Related allowance	227,833	201,793
With related allowance recorded, Average impaired investment	$ 741,444	805,654
With related allowance recorded, Interest income		46,761
Total, Unpaid principal balance	$ 1,858,217	2,103,161
Total, Recorded investment	1,858,217	2,103,161
Total, Related allowance	227,833	201,793
Total, Average impaired investment	1,539,680	1,221,142
Total, Interest income	$ 8,488	$ 76,184
Commercial business [Member]
Summary of information relative to impaired loans, by portfolio class
With no related allowance recorded, Unpaid principal balance
With no related allowance recorded, Recorded investment
With no related allowance, Related allowance
With no related allowance recorded, Average impaired investment	$ 31,007	$ 62,015
With no related allowance recorded, Interest income
With related allowance recorded, Unpaid principal balance
With related allowance recorded, Recorded investment
With related allowance recorded, Related allowance
With related allowance recorded, Average impaired investment	$ 9,069	$ 18,139
With related allowance recorded, Interest income		$ 2,119
Total, Unpaid principal balance
Total, Recorded investment
Total, Related allowance
Total, Average impaired investment	$ 40,076	$ 80,154
Total, Interest income		$ 2,119
Consumer [Member]
Summary of information relative to impaired loans, by portfolio class
With no related allowance recorded, Unpaid principal balance
With no related allowance recorded, Recorded investment
With no related allowance, Related allowance
With no related allowance recorded, Average impaired investment
With no related allowance recorded, Interest income
With related allowance recorded, Unpaid principal balance
With related allowance recorded, Recorded investment
With related allowance recorded, Related allowance
With related allowance recorded, Average impaired investment
With related allowance recorded, Interest income
Total, Unpaid principal balance
Total, Recorded investment
Total, Related allowance
Total, Average impaired investment
Total, Interest income

Loans (Details 3)

Loans (Details 3) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Allowance for loan losses:
Balance, beginning of period	$ 1,139,509	$ 1,032,776
Provision (reversal of provision) for loan losses	$ (68,000)
Loan charge-offs		$ (43,267)
Loan recoveries	$ 1,312
Net loans charged-off	1,312	$ (43,267)
Balance, end of year	1,072,821	989,509
Individually reviewed for impairment			$ 338,378		$ 34,693
Collectively reviewed for impairment			734,443		954,816
Total allowance for loan losses	1,139,509	989,509	1,072,821	$ 1,139,509	989,509
Gross loans, end of period:
Individually reviewed for impairment			2,178,816		1,662,074
Collectively reviewed for impairment			62,903,930		66,457,207
Total gross loans			65,082,746	67,677,402	$ 68,119,281
Single and multifamily residential real estate [Member]
Allowance for loan losses:
Balance, beginning of period	265,797	$ 160,797
Provision (reversal of provision) for loan losses	$ (30,000)
Loan charge-offs
Loan recoveries
Net loans charged-off
Balance, end of year	$ 235,797	$ 160,797
Individually reviewed for impairment			100,045
Collectively reviewed for impairment			135,752		$ 160,797
Total allowance for loan losses	265,797	160,797	235,797	265,797	160,797
Gross loans, end of period:
Individually reviewed for impairment			141,645		725,590
Collectively reviewed for impairment			14,480,522		16,307,579
Total gross loans			14,622,167	16,434,722	$ 17,033,169
Construction and development [Member]
Allowance for loan losses:
Balance, beginning of period	184,130	234,130
Provision (reversal of provision) for loan losses	$ (60,000)	$ (20,000)
Loan charge-offs
Loan recoveries
Net loans charged-off
Balance, end of year	$ 124,130	$ 214,130
Individually reviewed for impairment			10,500
Collectively reviewed for impairment			113,630		$ 214,130
Total allowance for loan losses	184,130	214,130	124,130	184,130	$ 214,130
Gross loans, end of period:
Individually reviewed for impairment			178,954
Collectively reviewed for impairment			8,357,333		$ 8,624,278
Total gross loans			8,536,287	7,286,459	8,624,278
Commercial real estate - other [Member]
Allowance for loan losses:
Balance, beginning of period	439,830	363,097
Provision (reversal of provision) for loan losses	$ 45,000	(10,000)
Loan charge-offs		$ (43,267)
Loan recoveries
Net loans charged-off		$ (43,267)
Balance, end of year	$ 484,830	309,830
Individually reviewed for impairment			227,833		34,693
Collectively reviewed for impairment			256,997		275,137
Total allowance for loan losses	439,830	309,830	484,830	439,830	309,830
Gross loans, end of period:
Individually reviewed for impairment			1,858,217		936,484
Collectively reviewed for impairment			20,826,986		23,749,815
Total gross loans			$ 22,685,203	25,559,943	$ 24,686,299
Commercial business [Member]
Allowance for loan losses:
Balance, beginning of period	244,679	184,679
Provision (reversal of provision) for loan losses	$ (28,000)	$ 30,000
Loan charge-offs
Loan recoveries
Net loans charged-off
Balance, end of year	$ 216,679	$ 214,679
Individually reviewed for impairment
Collectively reviewed for impairment			$ 216,679		$ 214,679
Total allowance for loan losses	244,679	214,679	$ 216,679	244,679	$ 214,679
Gross loans, end of period:
Individually reviewed for impairment
Collectively reviewed for impairment			$ 17,693,369		$ 16,486,540
Total gross loans			$ 17,693,369	17,027,054	$ 16,486,540
Consumer [Member]
Allowance for loan losses:
Balance, beginning of period	5,073	$ 90,073
Provision (reversal of provision) for loan losses	$ 5,000
Loan charge-offs
Loan recoveries	$ 1,312
Net loans charged-off	1,312
Balance, end of year	11,385	$ 90,073
Individually reviewed for impairment
Collectively reviewed for impairment			$ 11,385		$ 90,073
Total allowance for loan losses	$ 5,073	$ 90,073	$ 11,385	5,073	$ 90,073
Gross loans, end of period:
Individually reviewed for impairment
Collectively reviewed for impairment			$ 1,545,720		$ 1,288,995
Total gross loans			$ 1,545,720	$ 1,369,224	$ 1,288,995

Loans (Details 4)

Loans (Details 4) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Loans [Abstract]
Nonaccrual loans	$ 1,338,391	$ 1,655,190	$ 190,790
Average gross loans	$ 65,898,821		$ 68,362,619
Net loans charged-off as a percentage of average gross loans	0.00%		0.00%
Allowance for loan losses as a percentage of total gross loans	1.65%		1.45%
Allowance for loan losses as a percentage of non-accrual loans	80.16%		518.60%

Loans (Details 5)

Loans (Details 5) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Loan maturity distribution by type and related interest rate
Loans, One year or less	$ 17,605,619	$ 18,420,265
Loans, After one but within five years	41,026,052	41,533,701
Loan, After five years	6,451,075	7,723,436
Total loans	65,082,746	67,677,402	$ 68,119,281
Loans maturing after one year with:
Fixed interest rates	16,647,522	16,892,651
Floating interest rates	30,829,605	32,364,486
Single and multifamily residential real estate [Member]
Loan maturity distribution by type and related interest rate
Loans, One year or less	3,445,323	4,107,456
Loans, After one but within five years	6,568,869	7,977,523
Loan, After five years	4,607,975	4,349,743
Total loans	14,622,167	16,434,722	17,033,169
Construction and development [Member]
Loan maturity distribution by type and related interest rate
Loans, One year or less	4,152,055	2,850,334
Loans, After one but within five years	4,090,660	3,915,218
Loan, After five years	293,572	520,907
Total loans	8,536,287	7,286,459	8,624,278
Commercial real estate - other [Member]
Loan maturity distribution by type and related interest rate
Loans, One year or less	5,193,281	5,740,738
Loans, After one but within five years	16,650,258	17,556,599
Loan, After five years	841,664	2,262,606
Total loans	22,685,203	25,559,943	24,686,299
Commercial business [Member]
Loan maturity distribution by type and related interest rate
Loans, One year or less	4,281,860	5,170,004
Loans, After one but within five years	12,788,076	11,334,906
Loan, After five years	623,433	522,144
Total loans	17,693,369	17,027,054	16,486,540
Consumer [Member]
Loan maturity distribution by type and related interest rate
Loans, One year or less	533,100	551,733
Loans, After one but within five years	928,189	749,455
Loan, After five years	84,431	68,036
Total loans	$ 1,545,720	$ 1,369,224	$ 1,288,995

Loans (Details Textual)

Loans (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Loans (Textual)
Commercial real estate loans	$ 31,200,000
Commercial business loans	17,700,000
Consumer and home equity loans	16,200,000
Loans transferred to other real estate owned and repossessed assets	233,767	$ 300,000
Nonaccrual loans	1,338,391	190,790	$ 1,655,190
Nonaccrual loan during quarter period	343,266
Nonaccrual loan selling cost	34,327
Nonaccrual loan specific reserve amount	43,266
Foregone interest income related to nonaccrual loans	$ 35,011	5,238
Commercial real estate loan percentage of gross loan	94.00%		93.00%
Total gross loans	$ 65,082,746	$ 68,119,281	$ 67,677,402
Impaired loans	2,178,816		2,380,599
Impaired loans decreased	138,000		$ 201,783
Loan balance reductions through pay downs	107,000
Loans and Leases Receivable, Gross	$ 240,000
Percentage of increase decrease in reserves	1.17%		1.17%
Provision (reversal of provision) for loan losses	$ (68,000)
Percentage of credit grade "pass" for loan portfolio	94.00%
Special Mention [Member]
Loans (Textual)
Total gross loans	$ 1,588,605		$ 1,597,378
Substandard [Member]
Loans (Textual)
Total gross loans	$ 2,418,754		$ 2,876,775

Fair Value (Details)

Fair Value (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Schedule of assets measured at fair value on a non-recurring basis
Other real estate owned and repossessed assets	$ 2,112,667	$ 1,910,220
Other Real Estate Owned and Repossessed Assets [Member]
Schedule of assets measured at fair value on a non-recurring basis
Other real estate owned and repossessed assets	$ 2,112,667	$ 1,910,220
Valuation Technique	Appraised value	Appraised value
Significant Unobservable Inputs	Discounts to reflect current market conditions, abbreviated holding period, and estimated costs to sell	Discounts to reflect current market conditions and estimated costs to sell
Impaired Loans [Member]
Schedule of assets measured at fair value on a non-recurring basis
Impaired loans	$ 1,840,438	$ 2,005,168
Valuation Technique	Internal assessment of appraised value	Internal assessment of appraised value
Significant Unobservable Inputs	Adjustments to estimated value based on recent sales of comparable collateral	Adjustments to estimated value based on recent sales of comparable collateral

Fair Value (Details 1)

Fair Value (Details 1) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Financial Assets:
Cash and due from banks	$ 4,118,939	$ 5,453,795
Interest bearing deposits in other institutions	1,750,000	1,500,000
Federal funds sold	7,787,000	8,446,000
Investment securities available for sale	10,587,515	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net	63,857,131	66,402,246
Financial Liabilities:
Accounts payable and accrued expenses	680,812	1,134,833
Deposits	79,968,990	83,567,325
Securities sold under agreements to repurchase	41,229	113,080
Carrying Amount [Member]
Financial Assets:
Cash and due from banks	4,118,939	5,453,795
Interest bearing deposits in other institutions	1,750,000	1,500,000
Federal funds sold	7,787,000	8,446,000
Investment securities available for sale	10,587,515	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net	63,857,131	66,402,246
Financial Liabilities:
Accounts payable and accrued expenses	680,812
Deposits	79,968,990	83,567,325
Securities sold under agreements to repurchase	41,229	113,080
Fair Value [Member]
Financial Assets:
Cash and due from banks	4,118,939	5,453,795
Interest bearing deposits in other institutions	1,750,000	1,500,000
Federal funds sold	7,787,000	8,446,000
Investment securities available for sale	10,587,515	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net	63,922,061	66,873,213
Financial Liabilities:
Accounts payable and accrued expenses	680,812
Deposits	79,544,718	83,538,827
Securities sold under agreements to repurchase	41,229	113,080
Fair Value [Member] | Level 1 [Member]
Financial Assets:
Cash and due from banks	$ 4,118,939	$ 5,453,795
Interest bearing deposits in other institutions
Federal funds sold	$ 7,787,000	$ 8,446,000
Investment securities available for sale
Non-marketable equity securities
Loans, net
Financial Liabilities:
Accounts payable and accrued expenses
Deposits
Securities sold under agreements to repurchase
Fair Value [Member] | Level 2 [Member]
Financial Assets:
Cash and due from banks
Interest bearing deposits in other institutions	$ 1,750,000	$ 1,500,000
Federal funds sold
Investment securities available for sale	$ 10,587,515	$ 10,687,851
Non-marketable equity securities	$ 380,050	$ 392,500
Loans, net
Financial Liabilities:
Accounts payable and accrued expenses	$ 680,812
Deposits	79,544,718	$ 83,538,827
Securities sold under agreements to repurchase	$ 41,229	$ 113,080
Fair Value [Member] | Level 3 [Member]
Financial Assets:
Cash and due from banks
Interest bearing deposits in other institutions
Federal funds sold
Investment securities available for sale
Non-marketable equity securities
Loans, net	$ 63,922,061	$ 66,873,213
Financial Liabilities:
Accounts payable and accrued expenses
Deposits
Securities sold under agreements to repurchase

Fair Value (Details Textual)

Fair Value (Details Textual) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value (Textual)
Investment securities available for sale	$ 10,587,515	$ 10,687,851
Net of specific reserves of impaired loans carried at fair value	1,800,000	2,000,000
Other real estate owned and repossessed assets	$ 2,112,667	$ 1,910,220

Stock Compensation Plans (Detai

Stock Compensation Plans (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 26, 2005	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Feb. 28, 2013
Stock Compensation Plans (Textual)
Stock options outstanding		3,097,255		3,097,255
Weighted average exercise price		$ 1.11		$ 1.11
Options vested		3,022,255		3,022,255
Stock compensation expense		$ 5,064	$ 80,817
2005 Incentive Plan [Member]
Stock Compensation Plans (Textual)
Description of shares issuable under Incentive Plan	The total number of shares issuable under the 2005 Incentive Plan would at all times equal 12.5% of the then outstanding shares of common stock.
Number of shares reserved for issuance of stock options	260,626
2013 Incentive Plan [Member]
Stock Compensation Plans (Textual)
Number of shares reserved for issuance of stock options					2,466,720

Business Segments (Details)

Business Segments (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Summary of selected financial information for Company's reportable business segments
Interest income	$ 915,052	$ 931,390
Interest expense	78,632	85,291
Net interest income (expense)	836,420	$ 846,099
Provision for loan losses	(68,000)
Noninterest income	198,435	$ 144,206
Noninterest expense	1,403,285	1,348,866
Income (loss) before income taxes	$ (300,430)	(358,561)
Income taxes		5,080
Net income (loss)	$ (300,430)	(363,641)	$ (4,798,519)
Community Banking [Member]
Summary of selected financial information for Company's reportable business segments
Interest income	915,052	931,390
Interest expense	78,632	75,708
Net interest income (expense)	836,420	$ 855,682
Provision for loan losses	(68,000)
Noninterest income	198,435	$ 109,561
Noninterest expense	1,049,922	983,184
Income (loss) before income taxes	$ 52,933	(17,941)
Income taxes		5,080
Net income (loss)	$ 52,933	$ (23,021)
Transaction Services [Member]
Summary of selected financial information for Company's reportable business segments
Interest income
Interest expense
Net interest income (expense)
Provision for loan losses
Noninterest income		$ 33,327
Noninterest expense	$ 100,482	276,432
Income (loss) before income taxes	$ (100,482)	$ (243,105)
Income taxes
Net income (loss)	$ (100,482)	$ (243,105)
Asset Management [Member]
Summary of selected financial information for Company's reportable business segments
Interest income
Interest expense
Net interest income (expense)
Provision for loan losses
Noninterest income
Noninterest expense	$ (5,510)	$ (8,884)
Income (loss) before income taxes	$ 5,510	$ 8,884
Income taxes
Net income (loss)	$ 5,510	$ 8,884
Parent Only [Member]
Summary of selected financial information for Company's reportable business segments
Interest income
Interest expense
Net interest income (expense)
Provision for loan losses
Noninterest income		$ 1,318
Noninterest expense	$ 258,391	121,155
Income (loss) before income taxes	$ (258,391)	$ (129,420)
Income taxes
Net income (loss)	$ (258,391)	$ (129,420)
Eliminations [Member]
Summary of selected financial information for Company's reportable business segments
Interest income
Interest expense
Net interest income (expense)
Provision for loan losses
Noninterest income
Noninterest expense		$ (23,021)
Income (loss) before income taxes		$ 23,021
Income taxes
Net income (loss)		$ 23,021
Total [Member]
Summary of selected financial information for Company's reportable business segments
Interest income		931,390
Interest expense		75,708
Net interest income (expense)		$ 855,682
Provision for loan losses
Noninterest income		$ 144,206
Noninterest expense		1,348,866
Income (loss) before income taxes		(358,561)
Income taxes		5,080
Net income (loss)		$ (363,641)

Business Segments (Details 1)

Business Segments (Details 1) - USD ($)		Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Segment Reporting Information, Profit (Loss) [Abstract]
Cash and Due from Banks		$ 4,118,939	$ 5,453,795
Interest-bearing Deposits in Banks and Other Financial Institutions		1,750,000	1,500,000
Federal Funds Sold		7,787,000	8,446,000
Investment securities		10,587,515
Loans and Leases Receivable, Net Amount		63,857,131	66,402,246
Other Real Estate, Foreclosed Assets, and Repossessed Assets		2,112,667	1,910,220
Property, Plant and Equipment, Net		2,152,678	2,198,796
Other Assets		170,182	243,683
Assets		93,120,096	97,467,306
Deposits		79,968,990	83,567,325
Securities sold under agreements to repurchase		41,229	$ 113,080
Note payable
Liabilities and Equity		93,120,096	$ 97,467,306
Community Banking [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Cash and Due from Banks		4,123,907		$ 5,785,561
Interest-bearing Deposits in Banks and Other Financial Institutions		1,750,000
Federal Funds Sold		7,787,000		4,124,000
Investment securities		10,587,515		15,201,271
Loans and Leases Receivable, Net Amount		63,857,131		66,980,651
Other Real Estate, Foreclosed Assets, and Repossessed Assets		1,512,667		1,603,000
Property, Plant and Equipment, Net		2,039,725		2,098,787
Other Assets		706,902		760,549
Assets		92,364,847		96,553,819
Deposits		82,194,471		85,795,480
Securities sold under agreements to repurchase		41,229		$ 42,272
Note payable
Accrued and other liabilities		234,254		$ 118,627
Shareholders' equity		9,894,893		10,597,440
Liabilities and Equity		92,364,847		96,553,819
Holding Company [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Cash and Due from Banks	[1]	$ 2,220,513		$ 20,683
Interest-bearing Deposits in Banks and Other Financial Institutions	[1]
Federal Funds Sold	[1]
Investment securities	[1]
Loans and Leases Receivable, Net Amount	[1]			$ 808,189
Other Real Estate, Foreclosed Assets, and Repossessed Assets	[1]	$ 600,000		754,100
Property, Plant and Equipment, Net	[1]	112,953		237,816
Other Assets	[1]	47,264		423,214
Assets	[1]	$ 2,980,730		$ 1,435,813
Deposits	[1]
Securities sold under agreements to repurchase	[1]
Note payable	[1]			$ 149,774
Accrued and other liabilities	[1]	$ 455,809		2,691,613
Shareholders' equity		2,524,921		(1,405,574)
Liabilities and Equity	[1]	2,980,730		1,435,813
Consolidation, Eliminations [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Cash and Due from Banks		$ (2,225,481)		$ (15,985)
Interest-bearing Deposits in Banks and Other Financial Institutions
Federal Funds Sold
Investment securities
Loans and Leases Receivable, Net Amount
Other Real Estate, Foreclosed Assets, and Repossessed Assets
Property, Plant and Equipment, Net
Other Assets
Assets		$ (2,225,481)		$ (15,985)
Deposits		$ (2,225,481)		$ (15,985)
Securities sold under agreements to repurchase
Note payable
Accrued and other liabilities
Shareholders' equity
Liabilities and Equity		$ (2,225,481)		$ (15,985)
Total [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Cash and Due from Banks		4,118,939		5,790,259
Interest-bearing Deposits in Banks and Other Financial Institutions		1,750,000
Federal Funds Sold		7,787,000		4,124,000
Investment securities		10,587,515		15,201,271
Loans and Leases Receivable, Net Amount		63,857,131		66,980,651
Other Real Estate, Foreclosed Assets, and Repossessed Assets		2,112,667		2,357,100
Property, Plant and Equipment, Net		2,152,678		2,336,603
Other Assets		754,166		1,183,763
Assets		93,120,096		97,973,647
Deposits		79,968,990		85,779,495
Securities sold under agreements to repurchase		41,229		42,272
Note payable				149,774
Accrued and other liabilities		690,063		2,810,240
Shareholders' equity		12,419,814		9,191,866
Liabilities and Equity		$ 93,120,096		$ 97,973,647
[1]	Excludes investment in wholly-owned Bank subsidiary

Business Segments (Details Text

Business Segments (Details Textual)	3 Months Ended
	Mar. 31, 2016Segment
Business Segments (Textual)
Number of business segments	4

Note Payable (Details)

Note Payable (Details) - USD ($)	Sep. 03, 2015	Sep. 30, 2014	Jun. 30, 2015
Note Payable - Related Party (Textual)
Repayments of Debt		$ 600,000
Interest rate on mortgage loans		7.00%
Interest rate on mortgage loans, maturity		8.00%
Real Estate Loan [Member]
Note Payable - Related Party (Textual)
Outstanding loan			$ 149,774
Repayments of outstanding loan	$ 149,774