Independence Bancshares 10-K 24 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 23, 2017	Jun. 30, 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-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 3,895,524
Entity Common Stock, Shares Outstanding		20,502,760

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 4,631,727	$ 5,453,795
Federal funds sold	6,143,000	8,446,000
Cash and cash equivalents	10,774,727	13,899,795
Interest-bearing deposits in other institutions	10,500,000	1,500,000
Investment securities available for sale	2,499,805	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net of an allowance for loan losses of $1,338,149 and $1,139,509, respectively	59,144,847	66,402,246
Accrued interest receivable	170,342	232,215
Property, equipment, and software, net	2,025,774	2,198,796
Other real estate owned and repossessed assets	2,222,667	1,910,220
Bank-owned life insurance	2,542,910
Other assets	187,935	243,683
Total assets	90,449,057	97,467,306
Deposits:
Non-interest bearing	13,723,903	13,010,209
Interest bearing	65,983,745	70,557,116
Total deposits	79,707,648	83,567,325
Securities sold under agreements to repurchase	113,598	113,080
Accrued interest payable	8,802	7,909
Accounts payable and accrued expenses	674,644	1,134,833
Total liabilities	80,504,692	84,823,147
Commitments and contingencies - notes 13 and 14
Shareholders' equity
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; 8,425 Series A shares issued and outstanding	84	84
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	43,053,599	43,043,473
Accumulated other comprehensive income	(8,056)	113,846
Accumulated deficit	(33,306,290)	(30,718,272)
Total shareholders' equity	9,944,365	12,644,159
Total liabilities and shareholders' equity	$ 90,449,057	$ 97,467,306

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Balance Sheets [Abstract]
Allowance for loan losses	$ 1,338,149	$ 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
Preferred stock, shares issued	8,425	8,425
Preferred stock, shares outstanding	8,425	8,425
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

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Interest income
Loans	$ 3,272,291	$ 3,193,831
Investment securities	219,507	323,979
Federal funds sold and other	73,030	49,953
Total interest income	3,564,828	3,567,763
Interest expense
Deposits	326,120	315,484
Borrowings	220	15,578
Total interest expense	326,340	331,062
Net interest income	3,238,488	3,236,701
Provision for loan losses	407,000	150,000
Net interest income after provision for loan losses	2,831,488	3,086,701
Non-interest income
Service fees on deposit accounts	95,431	81,159
Residential loan origination fees	231,495	224,663
Forgiveness of debt		403,245
SBA loan fees	119,306
Gain (loss) on sale of investments	296,723	(87,995)
Other income	97,739	45,835
Total non-interest income	840,694	666,907
Non-interest expenses
Compensation and benefits	2,557,959	2,950,953
Real estate owned activity	512,407	457,173
Occupancy and equipment	639,167	678,404
Insurance	216,295	233,168
Data processing and related costs	471,976	343,107
Professional fees	1,050,062	1,320,505
Product research and development expense	249,594	2,209,978
Other	562,740	353,759
Total non-interest expenses	6,260,000	8,547,047
Loss before income tax expense	(2,588,018)	(4,793,439)
Income tax expense		5,080
Net loss	(2,588,018)	(4,798,519)
Other comprehensive income (loss), net of tax
Unrealized (loss) gain on investment securities available for sale, net of tax	174,821	24,697
Reclassification adjustment included in net income, net of tax	(296,723)	87,995
Other comprehensive (loss) income	(121,902)	112,692
Total comprehensive loss	$ (2,709,920)	$ (4,685,827)
Loss per common share - basic and diluted	$ (0.13)	$ (0.23)
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 - 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/loss	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	10,126			10,126
Net loss	(2,588,018)					(2,588,018)
Other comprehensive income/loss	(121,902)				(121,902)
Ending Balance at Dec. 31, 2016	$ 9,944,365	$ 205,028	$ 84	$ 43,053,599	$ (8,056)	$ (33,306,290)
Ending Balance, shares at Dec. 31, 2016		20,502,760	8,425

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net loss	$ (2,588,018)	$ (4,798,519)
Adjustments to reconcile net loss to cash used in operating activities:
Provision for loan losses	407,000	150,000
Depreciation	206,623	215,471
Amortization of investment securities discounts/premiums, net	134,622	110,134
Stock option expense related to stock options granted	10,126	303,829
(Gain) loss on sale of investment securities	(296,723)	87,995
Increase in value of bank owned life insurance	(42,910)
Loss on disposal of property, equipment and software	566
Net changes in fair value and losses on other real estate owned and repossessed assets	307,770	364,942
Forgiveness of debt		(403,245)
Decrease in other assets, net	117,621	170,697
Decrease in other liabilities, net	(400,648)	(1,185,202)
Net cash used in operating activities	(2,143,971)	(4,983,898)
Investing activities
Net decrease in loans	5,593,110	1,142,421
Purchases of investment securities available for sale	(7,437,287)	(336,864)
Maturities and sales of investment securities available for sale	14,955,233	4,070,789
Repayments of investment securities available for sale	651,651	1,166,366
Net activity in interest bearing deposits in other institutions	(9,000,000)	(1,500,000)
Redemption of non-marketable equity securities, net	12,450	217,150
Purchase of bank owned life insurance	(2,500,000)
Purchase of property, equipment, and software	(34,167)	(30,260)
Proceeds from sale of other real estate owned and repossessed assets	637,072	582,295
Net cash provided by investing activities	2,878,062	5,311,897
Financing activities
(Decrease) increase in deposits, net	(3,859,677)	692,662
Repayments on borrowings		(5,000,000)
Increase (decrease) in securities sold under agreements to repurchase	518	(40,523)
Repayments on note payable		(600,000)
Issuance of preferred stock, net		7,615,577
Net cash provided by (used in) financing activities	(3,859,159)	2,667,716
Net increase (decrease) in cash and cash equivalents	(3,125,068)	2,995,715
Cash and cash equivalents at beginning of the year	13,899,795	10,904,080
Cash and cash equivalents at end of the year	10,774,727	13,899,795
Cash paid for
Interest	325,447	331,379
Schedule of non-cash transactions
Unrealized gain on securities available for sale, net of tax	174,821	24,697
Loans transferred to other real estate owned and repossessed assets	$ 1,257,289	$ 300,000

Summary of Significant Accounti

Summary of Significant Accounting Policies and Activities	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies and Activities [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES	NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES Independence Bancshares, Inc. As previously reported, on September 25, 2015, the Company suspended development of its digital banking, payments and transaction services business and has subsequently been evaluating strategic alternatives for the Company. A key goal of the Company’s digital banking business was to reduce costs for banking activities and operate more efficiently through utilizing mobile and on-line delivery channels. In furtherance of this goal and based in part upon the institutional knowledge acquired in the pursuit of the digital banking strategy, the Company plans to supplement its current lending strategy by expanding its consumer lending program with on-line offerings, targeting prime and super-prime borrowers in the Bank’s current market area as well as throughout South Carolina. The Company’s board of directors is focused on profitably growing the Bank and enhancing shareholder value through this targeted expansion of its consumer lending program, which may include purchases of in-market consumer loans that meet the Bank’s underwriting criteria. The following is a description of the significant accounting and reporting policies that the Company follows in preparing and presenting consolidated financial statements. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Independence National 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. 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. 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. 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 relate to the determination of the allowance for loan losses, including valuation allowances for impaired loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and calculation of the provision for income taxes and deferred income tax assets and related valuation allowances. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties and takes into account other current market information. Management must also make estimates in determining the useful lives and methods for depreciating premises and equipment. While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowance for loan losses and changes to valuation of foreclosed real estate may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and valuation of foreclosed real estate. Such agencies may require the Company to recognize additions to the allowance for loan losses or additional write-downs on foreclosed real estate based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses and valuation of foreclosed real estate may change materially in the near term. Risks and Uncertainties In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest bearing liabilities mature or reprice at different speeds, or on different bases, than its interest-earning assets. Credit risk is the risk of default within the Company’s loan portfolio that results from borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company. The Company is subject to the regulations of various governmental agencies. These regulations can change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to changes with respect to valuation of assets, amount of required loss allowance and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. The Bank makes loans to individuals and businesses in and around “Upstate” South Carolina for various personal and commercial purposes. The Bank has a diversified loan portfolio. Borrowers’ ability to repay their loans is not dependent upon any specific economic sector. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes 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 December 31, 2016 and 2015, the Company had restricted cash totaling $2,000 with the Federal Home Loan Bank (“FHLB”) of Atlanta. 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. Investment Securities Investment securities are accounted for in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320, “Investments — Debt and Equity Securities.” Management classifies securities at the time of purchase into one of three categories as follows: (1) Securities Held to Maturity: securities which the Company has the positive intent and ability to hold to maturity, which are reported at amortized cost; (2) Trading Securities: securities that are bought and held principally for the purpose of selling them in the near future, which are reported at fair value with unrealized gains and losses included in earnings; and (3) Securities Available for Sale: securities that may be sold under certain conditions, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity as accumulated other comprehensive income. The amortization of premiums and accretion of discounts on investment securities are recorded as adjustments to interest income. Gains or losses on sales of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold, using the specific identification method. Losses on securities, reflecting a decline in value or impairment judged by the Company to be other-than-temporary, are charged to earnings in the consolidated statements of operations. Non-Marketable Equity Securities The Bank, as a member of the Federal Reserve Bank (“FRB”) and the FHLB, is required to own capital stock in these organizations. The amount of FRB stock owned is based on the Bank’s capital levels and totaled $293,050 and $303,500 at December 31, 2016 and 2015, respectively. The amount of FHLB stock owned is determined based on the Bank’s balances of residential mortgages and advances from the FHLB and totaled $87,000 and $89,000 at December 31, 2016 and 2015, respectively. No ready market exists for these stocks, 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. Loans Receivable Loans are stated at their unpaid principal balance net of any charge-offs. Interest income is computed using the simple interest method and is recorded in the period earned. Fees earned and direct costs incurred on loans are amortized using the effective interest method over the life of the loan. When serious doubt exists as to the collectability of a loan or when a loan becomes contractually 90 days past due as to principal or interest, interest income is generally discontinued unless the estimated net realizable value of collateral exceeds the principal balance and accrued interest. When interest accruals are discontinued, income earned but not collected is reversed. Cash receipts on nonaccrual loans are not recorded as interest income, but are used to reduce principal. Generally, loans are returned to accrual status when the loan is brought current and ultimate collectability of principal and interest is no longer in doubt. 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. In cases where management deems the amount of the reserve for loan losses to be less than previously determined, an adjustment to lower or reverse the provision will be recorded. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, as well as any reversal of provision, if any, are credited to the allowance. The allowance for loan losses or any reversal of provision 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 (less estimated selling costs) or observable market price of the impaired loan is lower than the carrying value of that loan. The general reserve component covers non-impaired loans and is calculated by applying historical loss factors to each sector of the loan portfolio and adjusting for qualitative environmental factors. Qualitative adjustments are used to adjust the historical average for changes to loss indicators within the economy, our market, and specifically our portfolio. The general reserve component is then combined with the specific reserve to determine the total allowance for loan losses. The Company identifies impaired loans through its 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 and in the process of the foreclosure process, they are moved to nonaccrual status and recognition of interest income is discontinued. 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. The Company designates loan modifications as troubled debt restructurings (TDRs) when, for economic or legal reasons related to the borrower’s financial difficulties, a concession is granted to the borrower that would not otherwise be considered. Upon initial restructuring, TDRs are considered classified and impaired and are placed in nonaccrual status if not already categorized. TDRs are returned to accrual status when there is economic substance to the restructuring, any portion of the debt not expected to be repaid has been charged off, the remaining note is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally six months). Property and Equipment and Software Land is reported at cost. Buildings and improvements, furniture and equipment, capitalized software, and automobiles are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method, based on the estimated useful lives of 40 years for buildings and 3 to 15 years for software, furniture, equipment and automobiles. Leasehold improvements are amortized over the life of the lease. The cost of assets sold or otherwise disposed of, and the related allowance for depreciation, are eliminated from the accounts and the resulting gains or losses are reflected in the statement of operations when incurred. Maintenance and repairs are charged to current expense. The costs of major renewals and improvements are capitalized. Other Real Estate Owned and Repossessed Assets Real estate and other property acquired in settlement of loans, is recorded at the lower of cost or fair value less estimated selling costs, establishing a new cost basis at the time of acquisition. Fair value of such property is reviewed regularly and write-downs are recorded when it is determined that the carrying value of the property exceeds the fair value less estimated costs to sell. Write-downs resulting from the periodic reevaluation of such properties, costs related to holding such properties, and gains and losses on the sale of foreclosed properties are charged against income. Costs relating to the development and improvement of such properties are capitalized. Securities Sold Under Agreements to Repurchase The Bank enters into sales of securities under agreements to repurchase. Repurchase agreements are treated as financing, with the obligation to repurchase securities sold being reflected as a liability and the securities underlying the agreements remaining as assets. Fair Value The Company determines the fair market values of its financial instruments based on the fair value hierarchy established in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”), which provides a framework for measuring and disclosing fair value under GAAP. 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. Residential Loan Origination Fees The Company offers residential loan origination services to its customers. The loans are offered on terms and prices offered by the Company’s correspondents and are closed in the name of the correspondents. The Company receives fees for services it provides in conjunction with these origination services. The fees are recognized at the time the loans are closed by the Company’s correspondent. Residential loan origination fees are included in other income on the Company’s consolidated statements of operations. 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. 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 common 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 years ended December 31, 2016 and 2015 as a result of the Company’s net loss, all of the potential common shares (3,089,755 and 3,097,255 stock options, respectively, and zero warrants, as the warrants were not exercised and were deemed expired in May 2015) 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 did not achieve technological feasibility in connection with its digital banking business and therefore expensed all computer software purchases and development expenses related to research and development. On September 25, 2015 the Company suspended the development of its digital banking business. 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 May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification 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, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. 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 Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. 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 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 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. 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. 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	12 Months Ended
	Dec. 31, 2016
Investment Securities [Abstract]
INVESTMENT SECURITIES	NOTE 2 — INVESTMENT SECURITIES The amortized costs and fair values of investment securities available for sale are as follows: December 31, 2016 Gross Unrealized Amortized Gains Losses Fair US treasury note $ 2,507,861 $ — $ (8,056 ) $ 2,499,805 Total investment securities available for sale $ 2,507,861 $ — $ (8,056 ) $ 2,499,805 December 31, 2015 Gross Unrealized Amortized Gains Losses Fair 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 available for sale $ 10,515,357 $ 234,342 $ (61,848 ) $ 10,687,851 The following table presents information regarding securities with unrealized losses at December 31, 2016: Securities in an Unrealized Securities in an Unrealized Total Fair Unrealized Fair Unrealized Fair Unrealized US treasury note $ 2,499,805 $ 8,056 $ — $ — $ 2,499,805 $ 8,056 Total temporarily impaired securities $ 2,499,805 $ 8,056 $ — $ — $ 2,499,805 $ 8,056 The following table presents information regarding securities with unrealized losses at December 31, 2015: Securities in an Unrealized Securities in an Unrealized Total Fair Unrealized Fair Unrealized Fair Unrealized 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 December 31, 2016, there were investment securities with a fair value of approximately $ 2.5 million which had been in a continuous loss position for less than twelve months. At December 31, 2016, there were no investment securities which had been in a continuous loss position for more than one year. 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, there were investment securities with a fair value of approximately $ 951,000 which had been in a continuous loss position 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 one year. All remaining investment securities were in an unrealized gain position. The amortized costs and fair values of investment securities available for sale at December 31, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to prepay the obligations. December 31, 2016 Amortized Fair Due within one year $ — $ — Due after one through three years — — Due after three through five years 2,507,861 2,499,805 Due after five through ten years — — Due after ten years — — Total investment securities $ 2,507,861 $ 2,499,805 During 2016, the Company received proceeds from maturities and sales of securities of $15.0 million for a total gain of $296,723. During 2015, the Company received proceeds from sales of securities of $4.1 million for a total loss of $87,995. At December 31, 2016 and 2015, $2.4 million and $2.7 million, respectively, in securities were pledged as collateral for repurchase agreements, a credit line and public deposits. The Company’s investment portfolio consists principally of obligations of the United States of America, its agencies or enterprises it sponsors. In the opinion of management, there is no concentration of credit risk in its investment portfolio.

Loans

Loans	12 Months Ended
	Dec. 31, 2016
Loans/Note Payable - Related Party [Abstract]
LOANS	NOTE 3 — LOANS The composition of net loans by major category is as follows: December 31, 2016 2015 Real estate: Commercial $ 22,033,590 $ 25,559,943 Construction and development 7,913,783 7,286,459 Single and multifamily residential 13,314,130 16,434,722 Total real estate loans 43,261,503 49,281,124 Commercial business 15,954,106 17,027,054 Consumer 1,434,449 1,369,224 Deferred origination fees, net (167,062 ) (135,647 ) Gross loans, net of deferred fees 60,482,996 67,541,755 Less allowance for loan losses (1,338,149 ) (1,139,509 ) Loans, net $ 59,144,847 $ 66,402,246 The Company, through the Bank, makes loans to individuals and small- to mid-sized businesses for various personal and commercial purposes primarily in Greenville County, South Carolina. Credit concentrations can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, certain loan products, or certain regions of the country. Credit risk associated with these concentrations could arise when a significant amount of loans, related by similar characteristics, are simultaneously impacted by changes in economic or other conditions that cause their probability of repayment to be adversely affected. The Company regularly monitors its credit concentrations. The Company does not have a significant concentration to any individual client. The major concentrations of credit arise by collateral type. As of December 31, 2016, management has determined that the Company has a concentration in commercial real estate and construction and development loans, including construction and development loans. At December 31, 2016, the Company had $29.9 million in commercial real estate loans, representing 49.4% of gross loans. Management has extensive experience in commercial real estate lending, and has implemented and continues to maintain heightened portfolio monitoring and reporting, and strong underwriting criteria with respect to its commercial real estate portfolio. As noted above, the Company plans to supplement its current lending strategy by expanding its consumer lending program with on-line offerings, targeting prime and super-prime borrowers in the Bank’s current market area as well as throughout South Carolina. The Company’s board of directors is focused on profitably growing the Bank and enhancing shareholder value through this targeted expansion of its consumer lending program, which may include purchases of in-market consumer loans that meet the Bank’s underwriting criteria. In addition to monitoring potential concentrations of loans to a particular borrower or groups of borrowers, industries and geographic regions, management monitors exposure to credit risk that could arise from potential concentrations of lending products and practices such as loans that subject borrowers to substantial payment increases (e.g. principal deferral periods, loans with initial interest-only periods, etc.) and loans with high loan-to-value ratios. Additionally, there are industry practices that could subject the Company to increased credit risk should economic conditions change over the course of a loan’s life. For example, the Company makes variable rate loans and fixed rate principal-amortizing loans with maturities prior to the loan being fully paid (i.e. balloon payment loans). These loans are underwritten and monitored to manage the associated risks. Management has determined that there is no concentration of credit risk associated with its lending policies or practices. The composition of gross loans, before the deduction for deferred origination fees, by rate type is as follows: December 31, 2016 Variable rate loans $ 41,077,648 Fixed rate loans 19,572,410 $ 60,650,058 Directors, executive officers and associates of such persons are customers of and have transactions with the Bank in the ordinary course of business. Included in such transactions are outstanding loans and commitments, all of which were made under substantially the same credit terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these outstanding loans was $1.7 million and $2.8 million at December 31, 2016 and 2015, respectively. During 2016, there were approximately $95,000 in new loans and advances on these lines of credit and repayments were approximately $738,000. During 2015, there were $266,000 new loans and advances on these lines of credit and repayments were approximately $557,000. At December 31, 2015, there were commitments to extend additional credit to related parties in the amount of approximately $140,000. There were no commitments to extend additional credit to related parties at December 31, 2016. The Bank has a line of credit with the FHLB to borrow funds, subject to the pledge of qualified collateral. Acceptable collateral includes certain types of commercial real estate, consumer residential and home equity loans. At December 31, 2016, approximately $34.9 million of first and second mortgage loans, commercial loans and home equity lines of credit were specifically pledged to the FHLB, resulting in $12.3 million in lendable collateral. At December 31, 2016, the Bank had also pledged $15.5 million of commercial loans to the FRB’s Borrower-in-Custody of Collateral program, resulting in $11.4 million in lendable collateral. Credit Quality The following table summarizes delinquencies and nonaccruals, by portfolio class, as of December 31, 2016 and 2015. Single and Construction Commercial Commercial Consumer Total December 31, 2016 30–59 days past due $ 442,295 $ — $ — $ 617,052 $ — $ 1,059,347 60–89 days past due — — — 409,675 — 409,675 Nonaccrual 108,951 — 195,500 — — 304,451 Total past due and nonaccrual 551,246 — 195,500 — — 1,773,473 Current 12,762,884 7,913,783 21,838,090 14,927,379 1,434,449 58,876,585 Total loans $ 13,314,130 $ 7,913,783 $ 22,033,590 $ 15,954,106 $ 1,434,449 $ 60,650,058 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 — 1,665,190 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 $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402 At December 31, 2016 and 2015, there were nonaccrual loans of $304,451 and $1.7 million, respectively, included in the above loan balances. Foregone interest income related to nonaccrual loans equaled $60,633 and $129,066 for the years ended December 31, 2016 and 2015, respectively. No interest income was recognized on nonaccrual loans during 2016 and 2015. At both December 31, 2016 and 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 December 31, 2016 and 2015. Single and Construction Commercial Commercial Consumer Total December 31, 2016 Pass Loans (Consumer) $ 8,246,567 $ 1,462,925 $ — $ — $ 1,434,449 $ 11,143,941 Grade 1 — Prime — — — — — — Grade 2 — Good — — — — — — Grade 3 — Acceptable 1,919,685 1,108,334 11,057,550 7,676,592 — 21,762,161 Grade 4 — Acceptable w/Care 2,877,013 5,273,411 9,232,019 7,307,961 — 24,690,404 Grade 5 — Special Mention — 69,113 766,388 — — 835,501 Grade 6 — Substandard 270,865 — 977,633 969,553 — 2,218,051 Grade 7 — Doubtful — — — — — — Total loans $ 13,314,130 $ 7,913,783 $ 22,033,590 $ 15,954,106 $ 1,434,449 $ 60,650,058 Single and Construction Commercial Commercial Consumer Total December 31, 2015 Pass Loans (Consumer) $ 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 $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402 Loans graded one through four are considered “pass” credits. At December 31, 2016, approximately 95% 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. Loans totaling $835,501 and $1.6 million, respectively, were classified as special mention at December 31, 2016 and 2015. 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 December 31, 2016 and 2015, substandard loans totaled $2.2 million and $2.9 million, respectively, with the vast majority of these loans being collateralized by real estate. Substandard credits are evaluated for impairment on a quarterly basis. The following table summarizes information relative to impaired loans, by portfolio class, at December 31, 2016 and 2015. Unpaid Recorded Related Average Interest December 31, 2016 With no related allowance recorded: Single and multifamily residential real estate $ 99,794 $ 99,794 $ — $ 179,235 $ 3,261 Construction and development — — — 109,660 6,130 Commercial real estate — other 782,133 782,133 — 718,589 46,778 Commercial business 231,448 231,448 — 96,283 4,744 Consumer — — — — — With related allowance recorded: Single and multifamily residential real estate 171,071 171,071 93,471 201,000 3,251 Construction and development — — — 98,139 — Commercial real estate — other 195,500 195,500 30,500 524,283 — Commercial business 738,105 738,105 487,490 191,329 46,315 Consumer — — — — — Total: Single and multifamily residential real estate 270,865 270,865 93,471 380,235 6,512 Construction and development — — — 207,799 6,130 Commercial real estate — other 977,633 977,633 30,500 1,242,872 46,778 Commercial business 969,553 969,553 487,490 287,612 51,059 Consumer — — — — — $ 2,218,051 $ 2,218,051 $ 611,461 $ 2,118,518 $ 110,479 Unpaid Recorded Related Average Interest 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. At December 31, 2016, the principal balance of TDRs was zero as the one loan previously constituting our sole TDR during the year had been repaid in full at maturity in August 2016. 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. No TDRs went into default during the years ended December 31, 2016 and 2015. A TDR can be removed from “troubled” status once there is sufficient history of demonstrating the borrower can service the credit under market terms. We currently consider sufficient history to be approximately six months. Provision and Allowance for Loan Losses The provision, reversal of 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 following table summarizes activity related to our allowance for loan losses for the years ended December 31, 2016 and 2015, by portfolio segment. Single and Construction Commercial Commercial Consumer Total December 31, 2016 Allowance for loan losses: Balance, beginning of year $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Provision (reversal of provision) for loan losses (30,000 ) (100,000 ) 100,000 440,000 (3,000 ) 407,000 Loan charge-offs — (10,500 ) (209,045 ) — (640 ) (220,185 ) Loan recoveries — — — — 11,825 11,825 Net loans charged-off — (10,500 ) (209,045 ) — 11,185 (208,360 ) Balance, end of year $ 235,797 $ 73,630 $ 330,785 $ 684,679 $ 13,258 $ 1,338,149 Individually reviewed for impairment $ 93,471 $ — $ 30,500 $ 487,490 $ — $ 611,461 Collectively reviewed for impairment 142,326 73,630 300,285 197,189 13,258 726,688 Total allowance for loan losses $ 235,797 $ 73,630 $ 330,785 $ 684,679 $ 13,258 $ 1,338,149 Gross loans, end of period: Individually reviewed for impairment $ 171,071 $ — $ 195,500 $ 738,105 $ — $ 1,104,676 Collectively reviewed for impairment 13,143,059 7,913,783 21,838,090 15,216,001 1,434,449 59,545,382 Total gross loans $ 13,314,130 $ 7,913,783 $ 22,033,590 $ 15,954,106 $ 1,434,449 $ 60,650,058 Single and Construction Commercial Commercial Consumer Total December 31, 2015 Allowance for loan losses: Balance, beginning of year $ 160,797 $ 234,130 $ 363,097 $ 184,679 $ 90,073 $ 1,032,776 Provision (reversal of provision) for loan losses 105,000 (50,000 ) 120,000 60,000 (85,000 ) 150,000 Loan charge-offs — — (43,267 ) — — (43,267 ) Loan recoveries — — — — — — Net loans charged-off — — (43,267 ) — — (43,267 ) Balance, end of year $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Individually reviewed for impairment $ 163,138 $ 10,500 $ 201,793 $ — $ — $ 375,431 Collectively reviewed for impairment 102,659 173,630 238,037 244,679 5,073 764,078 Total allowance for loan losses $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Gross loans, end of period: Individually reviewed for impairment $ 236,938 $ 40,500 $ 2,103,161 $ — $ — $ 2,380,599 Collectively reviewed for impairment 16,197,784 7,245,959 23,456,782 17,027,054 1,369,224 65,296,803 Total gross loans $ 16,434,722 $ 7,286,959 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402

Property, Equipment and Softwar

Property, Equipment and Software	12 Months Ended
	Dec. 31, 2016
Property, Equipment and Software [Abstract]
PROPERTY, EQUIPMENT AND SOFTWARE	NOTE 4 — PROPERTY, EQUIPMENT AND SOFTWARE Property, equipment and software are stated at cost less accumulated depreciation. Components of property, equipment and software included in the consolidated balance sheets are as follows: December 31, 2016 2015 Land and land improvements $ 1,108,064 $ 1,108,064 Building 784,845 784,845 Leasehold improvements 257,159 257,159 Software 24,039 374,039 Furniture and equipment 1,464,847 1,432,378 3,638,954 3,956,485 Accumulated depreciation (1,613,180 ) (1,757,689 ) Total property, equipment and software $ 2,025,774 $ 2,198,796 Depreciation expense for the years ended December 31, 2016 and 2015 was $206,623 and $215,471, respectively. There were asset purchases of $34,167 and two disposals totaling $351,698 during 2016. There were asset purchases of $30,260 and no disposals during 2015.

Other Real Estate Owned and Rep

Other Real Estate Owned and Repossessed Assets	12 Months Ended
	Dec. 31, 2016
Other Real Estate Owned and Repossessed Assets [Abstract]
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS	NOTE 5 — OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS The following table summarizes the composition of other real estate owned and repossessed assets as of the dates noted. December 31, 2016 2015 Residential land lots $ — $ 31,320 Single and multifamily residential real estate — — Commercial office space 1,412,667 1,008,900 Commercial land 810,000 870,000 $ 2,222,667 $ 1,910,220 Changes in other real estate owned and repossessed assets are presented below: 2016 2015 Balance at beginning of year $ 1,910,220 $ 2,557,457 Repossessed property acquired in settlement of loans 1,257,289 300,000 Proceeds from sales of repossessed property (637,072 ) (582,295 ) Loss on sale and write-downs of repossessed property, net (307,770 ) (364,942 ) Balance at end of year $ 2,222,667 $ 1,910,220 During 2015, other real estate owned for the Company increased due to three pieces of real estate being moved to other real estate owned for $1.3 million, partially offset by the sale of one piece of real estate held by the Bank for proceeds of approximately $24,000, which resulted in a loss of approximately $6,000 and another sale of real estate owned that was purchased from the Bank for proceeds of approximately $613,000, which resulted in a loss of approximately $18,000 to the Company. In addition, the Bank recognized writedowns on real estate owned of approximately $284,000 during 2016. On March 7, 2017, one impaired loan was transferred to other real estate owned for $165,000, net of a specific reserve of $35,000.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2016
Deposit Disclosure [Abstract]
DEPOSITS	NOTE 6 — DEPOSITS Deposits at December 31, 2016 and 2015 are summarized as follows: 2016 2015 Non-interest bearing $ 13,723,902 $ 13,010,209 Interest bearing: NOW accounts 8,959,818 8,894,408 Money market accounts 29,620,179 33,164,973 Savings 1,054,314 1,034,438 Time, less than $100,000 5,565,797 5,756,202 Time, $100,000 and over 20,783,638 21,707,095 Total deposits $ 79,707,648 $ 83,567,325 Interest expense on time deposits greater than $100,000 was $192,160 and $182,041 for the years ended December 31, 2016 and 2015 respectively. Time deposits that meet or exceed the FDIC insurance limit at $250,000 amounted to $9,163,592 and $7,578,706 as of December 31, 2016 and 2015, respectively. At December 31, 2016 the scheduled maturities of certificates of deposit (including brokered time deposits) are as follows: 2017 $ 15,097,432 2018 5,217,537 2019 4,468,684 2020 784,291 2021 781,490 $ 26,349,434 At December 31, 2016, $2.3 million in securities were pledged as collateral for public deposits and approximately $50,000 in securities were pledged as collateral for business deposits.

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	12 Months Ended
	Dec. 31, 2016
Securities Sold Under Agreements To Repurchase [Abstract]
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	NOTE 7 — SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE At December 31, 2016 and 2015, the Bank had sold $113,598 and $113,080, respectively, of securities under agreements to repurchase with brokers with a weighted rate of 0.10% for the comparable periods that mature in less than 90 days. These agreements were secured with approximately $50,000 and $107,000 of investment securities, respectively. The securities, under agreements to repurchase, averaged $135,708 during 2016, with $279,628 being the maximum amount outstanding at any month-end. The average rate paid in 2016 was 0.10%. The securities, under agreements to repurchase, averaged $98,636 during 2015, with $354,739 being the maximum amount outstanding at any month-end. The average rate paid in 2015 was 0.10%.

Federal Home Loan Bank Advances

Federal Home Loan Bank Advances	12 Months Ended
	Dec. 31, 2016
Federal Home Loan Bank Advances [Abstract]
FEDERAL HOME LOAN BANK ADVANCES	NOTE 8 — FEDERAL HOME LOAN BANK ADVANCES At December 31, 2014, the Bank had $5.0 million of advances from the FHLB, with a weighted average rate of 0.25%. The advance was obtained in July 2014 with a maturity date of January 2015. The FHLB advance from 2014 was repaid in full in January 2015 upon maturity. There were no advances from the FHLB for the years ended December 31, 2016 and 2015. In February 2017, an advance of $4,000,000 was obtained from the FHLB with a weighted average rate of 0.89% and a maturity date of November 2017.

Note Payable - Related Party

Note Payable - Related Party	12 Months Ended
	Dec. 31, 2016
Loans/Note Payable - Related Party [Abstract]
NOTE PAYABLE - RELATED PARTY	NOTE 9 — NOTE PAYABLE - RELATED PARTY 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 6 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.

Unused Lines of Credit

Unused Lines of Credit	12 Months Ended
	Dec. 31, 2016
Unused Lines of Credit [Abstract]
UNUSED LINES OF CREDIT	NOTE 10 — UNUSED LINES OF CREDIT At December 31, 2016 and 2015, the Bank had an unused unsecured line of credit to purchase federal funds of $2.0 million that has not been utilized. The line of credit is available on a one to fourteen day basis for general corporate purposes of the Bank. The lender has reserved the right to withdraw the line at its option. The Bank has a line of credit with the FHLB to borrow funds, subject to the pledge of qualified collateral. At December 31, 2016, approximately $34.9 million of first and second mortgage loans, commercial loans and home equity lines of credit were specifically pledged to the FHLB, resulting in $12.3 million in lendable collateral. At December 31, 2015, approximately $39.9 million of first and second mortgage loans, commercial loans and home equity lines of credit were specifically pledged to the FHLB, resulting in $13.0 million in lendable collateral. The Bank is 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. During the fourth quarter of 2010, the Bank’s credit risk rating was downgraded by the FHLB, which resulted in decreased borrowing availability (total line reduced to 15% of total assets from 20% of total assets) and increased collateral requirements (moved to 125% of borrowings from 115%). During the third quarter of 2013, the FHLB upgraded our credit risk rating, which resulted in increased borrowing availability (total line increased from 15% of total assets to 20% of total assets) and decreased collateral requirements (moved to 115% of borrowings from 125%). The Bank’s ability to access available borrowing capacity from the FHLB in the future is subject to its rating and any subsequent changes based on financial performance as compared to factors considered by the FHLB in their assignment of our credit risk rating each quarter. At December 31, 2016, the Bank had pledged $15.5 million in loans to the FRB’s Borrower-in-Custody of Collateral program resulting in $12.3 million in lendable collateral. Our available credit under this line was approximately $11.4 million and $10.5 million as of December 31, 2016 and 2015, respectively. The Bank had no outstanding borrowings from the FRB as of December 31, 2016 and 2015.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
INCOME TAXES	NOTE 11 — INCOME TAXES The components of income tax expense were as follows: Year Ended December 31, 2016 2015 Current income tax expense (benefit) $ — $ 5,080 Deferred income tax expense (benefit) (944,814 ) (2,404,737 ) (944,814 ) (2,409,817 ) Change in valuation allowance 944,814 2,404,737 Income tax expense $ — $ 5,080 The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the Company’s statutory federal income tax rate of 34%: Year Ended December 31, 2016 2015 Income tax benefit at federal statutory rate $ (879,926 ) $ (1,629,769 ) Change in valuation allowance 944,814 (2,404,737 ) IRC Section 382 limitation to net operating loss carry-forward — 4,020,027 Other (64,888 ) 19,559 Income tax expense $ — $ 5,080 The components of the net deferred tax asset are as follows: December 31, 2016 2015 Deferred tax assets (liabilities): Allowance for loan losses $ 278,511 $ 140,131 Lost interest on nonaccrual loans 19,047 44,348 Real estate acquired in settlement of loans 187,707 250,453 Net operating loss carry-forward 2,757,843 1,987,292 Deferred operational and start-up costs 43,471 56,513 Other-than-temporary impairment on non-marketable equity securities. — — Unrealized loss (gain) on investment securities available for sale (2,978 ) (58,648 ) Internally developed software 3,864,656 3,771,558 Other 229,187 185,313 7,377,444 6,376,960 Valuation allowance (7,377,444 ) (6,376,960 ) Net deferred tax asset $ — $ — The valuation allowance for deferred tax assets as of December 31, 2016 and 2015 was $7.4 million and $6.4 million, respectively. 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 that the Company will not recognize the entire deferred tax asset. The determination of whether a deferred tax asset is realizable is based on the 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. As of December 31, 2016 and 2015, the Company determined that it is not more likely than not that deferred tax assets will be recognized in future years. The Company will continue to analyze deferred tax assets and the related valuation allowance on a quarterly basis, taking into account performance compared to forecasted earnings as well as current economic and internal information. At December 31, 2016, the Company has federal operating loss carry-forwards of approximately $8.0 million that may be used to offset future taxable income and expire beginning in 2026. At December 31, 2016, the Company has state operating loss carry-forwards of approximately $1.2 million that may be used to offset future taxable income and expire beginning in 2035. The Company has analyzed the tax positions taken or expected to be taken on its tax returns and concluded it has no liability related to uncertain tax positions in accordance with FIN 48. With limited exceptions, income tax returns for 2013 and subsequent years are subject to examination by the taxing authorities. We have generated significant net operating losses, or NOLs, as a result of our operating results. We are generally able to carry NOLs forward to reduce taxable income in future years. However, the ability to utilize the NOLs is subject to the rules of Section 382 of the Internal Revenue Code. Section 382 generally restricts the use of NOLs after an “ownership change.” An ownership change occurs if, among other things, the shareholders (or specified groups of shareholders) who own or have owned, directly or indirectly, 5% or more of a corporation’s common stock or are otherwise treated as 5% shareholders under Section 382 and U.S. Treasury regulations promulgated thereunder because of an increase of their aggregate percentage ownership of that corporation’s stock by more than 50 percentage points over the lowest percentage of the stock owned by these shareholders over a rolling three-year period. In the event of an ownership change, Section 382 imposes an annual limitation on the amount of taxable income a corporation may offset with NOL carryforwards. This annual limitation is generally equal to the product of the value of the corporation’s stock on the date of the ownership change, multiplied by the long-term tax-exempt rate published monthly by the Internal Revenue Service. Any unused annual limitation may be carried over to later years until the applicable expiration date for the respective NOL carryforwards.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 12 — RELATED PARTY TRANSACTIONS On December 31, 2016 and 2015, the Bank had various loans outstanding to directors and officers. All of these loans were made under normal credit terms and did not involve more than normal risk of collection. See Note 3 for further details. 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 6 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. On May 14, 2015, the Company entered into a license agreement with 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 an additional license fee of $275,000. In addition, as previously disclosed, on April 27, 2015, the Company submitted a proposed asset purchase agreement between the Company and MPIB to the Federal Reserve Bank of Richmond. The Company subsequently withdrew this application to the agency and no longer intends to enter into the asset purchase agreement or consummate the transaction contemplated therein.

Financial Instruments with off

Financial Instruments with off Balance Sheet Risk	12 Months Ended
	Dec. 31, 2016
Financial Instruments With Off Balance Sheet Risk [Abstract]
FINANCIAL INSTRUMENTS WITH OFF BALANCE SHEET RISK	NOTE 13 — FINANCIAL INSTRUMENTS WITH OFF BALANCE SHEET RISK In the ordinary course of business, and to meet the financing needs of its customers, the Company is a party to various financial instruments with off balance sheet risk. These financial instruments, which include commitments to extend credit and standby letters of credit, involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheets. The contract amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any material condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. At December 31, 2016, unfunded commitments to extend credit were $8.6 million, of which approximately $7.9 million is at fixed rates and $677,000 is at variable rates. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral varies but may include accounts receivable, inventory, property, plant and equipment, and commercial and residential real estate. The fair value of these off-balance sheet financial instruments is considered immaterial. The Company does not have any commitments to lend additional funds to borrowers whose loans have been modified as a TDR.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 14 — COMMITMENTS AND CONTINGENCIES The Bank has a two-year operating lease on its main office facility which began in October 2008. The Bank exercised its remaining two-year renewal options in September 2012. The Bank renegotiated on terms similar to the current lease and amended the current lease in October 2014 for a term of five years. The monthly rent under the lease amendment is $10,370 from October 1, 2012 through September 30, 2014, $10,789 from October 1, 2014 through September 30, 2015, $11,005 from October 1, 2015 through September 30, 2016 and $11,225 from October 1, 2016 through September 30, 2017. The Bank has a ten-year operating lease on a branch facility which began in August 2007. The monthly rent under the lease is $9,229 from August 1, 2012 through July 31, 2017. The Company is currently in negotiations regarding the terms of renewing the lease. The Company had a 21- month operating lease on its New York office which began in May 2013. The monthly rent under the lease agreement allowed for one month free rent from May 23, 2013 through June 22, 2013, an installment of $2,680 for June 23, 2013 through June 30, 2013, and fixed monthly installments of $9,450 from July 1, 2013 through February 27, 2015. The New York office lease was not renewed in February 2015. At that time, the Company moved to a month to month lease for the New York office at a rate of $2,189 per month. The New York office month to month lease was terminated during 2015. Rent expense of $268,988 and $314,117 was recorded for the years ended December 31, 2016 and 2015, respectively. Future minimum lease payments under these operating leases are summarized as follows: For the year ended December 31, 2017 $ 199,975 2018 138,080 2019 105,105 2020 — Thereafter — $ 443,160 As of December 31, 2016, there were no other commitments outstanding, and there were no new commitments as of March 23, 2017. The board of directors has approved employment agreements with the president and chief executive officer of the Bank, the chief financial officer of the Company and Bank and the Bank’s chief operating officer. The agreements include provisions regarding term, compensation, benefits, annual bonus, incentive program, stock option plan and severance and non-compete upon early termination. The Bank may become party to litigation and claims in the normal course of business. As of December 31, 2016, management believes there is no material litigation pending.

Stock Compensation Plans

Stock Compensation Plans	12 Months Ended
	Dec. 31, 2016
Stock Compensation Plans [Abstract]
STOCK COMPENSATION PLANS	NOTE 15— 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 Equity Incentive Plan (the “2013 Incentive Plan”) which was subsequently approved by the Company’s shareholders at the 2013 annual shareholders’ meeting. 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. As of December 31, 2016 and 2015, 3,089,755 total options were outstanding at a weighted average price of $1.11. Of the 3,097,255 options outstanding, 3,067,255 options were vested. A summary of the status of the plans and changes for the years ended December 31, 2016 and 2015 are presented below: 2016 2015 Shares Weighted Average Shares Weighted Outstanding at beginning of year 3,089,755 $ 1.11 3,102,255 $ 1.08 Granted — — 115,000 1.59 Exercised — — — — Forfeited or expired — — (127,500 ) 0.80 Outstanding at end of year 3,089,755 1.11 $ 0.00 3,089,755 1.11 Options exercisable at year-end 3,022,255 $ 0.00 3,022,255 Shares available for grant 2,030,935 2,030,935 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of 2016 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2016. This amount changes based on the fair market value of the Company’s stock. Fair market value is based on the most recent trade of common stock reported through the OTC Bulletin Board. As of December 31, 2016, the Company’s closing stock price was $0.15 resulting in no intrinsic value. Compensation expense related to stock options granted was $10,126 and $303,829 for the years ended December 31, 2016 and 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. In 2005, the Company issued warrants to each of its organizers to purchase up to an additional 312,500 shares of common stock at $10.00 per share. These warrants vested six-months from the date the Bank opened for business, or May 16, 2005, and they were exercisable in whole or in part until May 16, 2015. No warrants were exercised by May 16, 2015, at which time the warrants were deemed expired.

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2016
Employee Benefit Plan [Abstract]
EMPLOYEE BENEFIT PLAN	NOTE 16 — EMPLOYEE BENEFIT PLAN The Bank maintains an employee benefit plan for all eligible employees of the Bank under the provisions of Internal Revenue Code Section 401(k). The Independence National Bank 401(k) Profit Sharing Plan (the “Plan”), adopted in 2005, allows for employee contributions. Upon annual approval of the board of directors, the Company also matches 50% of employee contributions up to a maximum of 6% of annual compensation. For the year ended December 31, 2016 and 2015, $14,043 and $15,859, respectively, was charged to operations for the Company’s matching contribution. Employees are immediately vested in their contributions to the Plan and become fully vested in the employer matching contribution after six years of service.

Regulatory Matters

Regulatory Matters	12 Months Ended
	Dec. 31, 2016
Regulatory Matters [Abstract]
REGULATORY MATTERS	NOTE 17 — REGULATORY MATTERS The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Total capital includes Tier 1 and Tier 2 capital. Tier 2 capital consists of the allowance for loan losses subject to certain limitations. In July 2013, the FDIC approved a final rule to implement the Basel III regulatory capital reforms among other changes required by the Dodd-Frank Act. The framework requires banking organizations to hold more and higher quality capital, which acts as a financial cushion to absorb losses, taking into account the impact of risk. The approved rule includes a new minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5% as well as a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets. The rule also raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking institutions. For the largest, most internationally active banking organizations, the rule includes a new minimum supplementary leverage ratio that takes into account off-balance sheet exposures. In terms of quality of capital, the final rule emphasized common equity Tier 1 capital and implemented strict eligibility criteria for regulatory capital instruments. It also changed the methodology for calculating risk-weighted assets to enhance risk sensitivity. The changes began to take effect for the Bank on January 1, 2015. The following table summarizes the capital amounts and ratios of the Bank and the regulatory minimum requirements at December 31, 2016 and 2015. For capital To be well capitalized Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Total Capital (to risk weighted assets) $ 9,251,000 13.4 % $ 5,525,000 8.0 % $ 6,906,000 10.0 % Tier 1 Capital (to risk weighted assets) 8,382,000 12.1 2,762,000 4.0 4,144,000 6.0 Tier 1 Capital (to average assets) 8,382,000 9.0 3,724,000 4.0 4,655,000 5.0 Common Equity Tier 1 Capital (to risk weighted assets) 8,382,000 12.1 3,108,000 4.5 3,108,000 4.5 As of December 31, 2015 Total Capital (to risk weighted assets) $ 10,598,000 14.1 % $ 6,029,000 8.0 % $ 7,536,000 10.0 % Tier 1 Capital (to risk weighted assets) 9,653,000 12.8 3,014,000 4.0 4,521,000 6.0 Tier 1 Capital (to average assets) 9,653,000 10.0 3,875,000 4.0 4,844,000 5.0 Common Equity Tier 1 Capital (to risk weighted assets) 9,653,000 12.8 3,391,000 4.5 3,391,000 4.5 The Federal Reserve has similar requirements for bank holding companies. The Company is currently not subject to these requirements because the Federal Reserve guidelines contain an exemption for bank holding companies of less than $1 billion in consolidated assets, subject to certain limitations. Since December 31, 2016, no conditions or events have occurred, of which we are aware, that have resulted in a material change in the Company’s or the Bank’s category, other than as reported in this Annual Report on Form 10-K.

Restrictions on Subsidiary Divi

Restrictions on Subsidiary Dividends, Loans, or Advances	12 Months Ended
	Dec. 31, 2016
Restrictions on Subsidiary Dividends, Loans, or Advances [Abstract]
RESTRICTIONS ON SUBSIDIARY DIVIDENDS, LOANS, OR ADVANCES	NOTE 18 — RESTRICTIONS ON SUBSIDIARY DIVIDENDS, LOANS, OR ADVANCES The ability of the Company to pay cash dividends is dependent upon receiving cash in the form of dividends from the Bank. However, certain restrictions exist regarding the ability of the subsidiary to transfer funds to Independence Bancshares, Inc. in the form of cash dividends, loans, or advances. The approval of the OCC is required to pay dividends in excess of the Bank’s net profits (as defined) for the current year plus retained net profits (as defined) for the preceding two years, less any required transfers to surplus. The Company also has to obtain the prior written approval of the Federal Reserve Bank of Richmond before declaring or paying any dividends.

Business Segments

Business Segments	12 Months Ended
	Dec. 31, 2016
Business Segments [Abstract]
BUSINESS SEGMENTS	NOTE 19— BUSINESS SEGMENTS The Company reports its activities as four business segments — community banking, transaction services, asset management and parent only — as defined in “Item 1. Business”. 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 year ended December 31, 2016 and 2015. See Note 22 for parent company condensed financial information. Parent Company Community Banking Transaction Asset Parent Only Total For the year ended Interest income $ 3,564,828 $ — $ — $ — $ 3,564,828 Interest expense 326,340 — — 326,340 Net interest income 3,238,488 — — — 3,238,488 Provision for loan losses 407,000 — — — 407,000 Noninterest income 840,694 — — — 840,694 Noninterest expense 4,951,094 249,594 146,512 913,000 6,260,200 Loss before income taxes (1,278,912 ) (249,594 ) (146,512 ) (913,000 ) (2,588,018 ) Income taxes — — — — — Net loss $ (1,278,912 ) $ (249,594 ) $ (146,512 ) $ (913,000 ) $ (2,588,018 ) As of December 31, 2016 Community Banking Holding Company (1) Eliminations Total Cash and due from banks $ 4,632,515 $ 1,847,837 $ (1,848,625 ) $ 4,631,727 Interest bearing deposits in other institutions 10,500,000 — — 10,500,000 Federal funds sold 6,143,000 — — 6,143,000 Investment securities 2,499,805 — — 2,499,805 Loans receivable, net 59,144,847 — — 59,144,847 Other real estate owned 2,222,667 — — 2,222,667 Property, equipment, and software, net 2,005,226 20,548 — 2,025,774 Bank owned life insurance 2,542,910 — — 2,542,910 Other assets 731,838 6,489 — 738,328 Total Assets $ 90,422,808 $ 1,874,874 $ (1,848,625 ) $ 90,449,057 Deposits $ 81,556,273 $ — $ (1,848,625 ) $ 79,707,648 Securities sold under agreement to repurchase 113,598 — — 113,598 Accrued and other liabilities 379,100 304,346 — 683,446 Shareholders’ equity 8,373,837 1,570,528 — 9,944,365 Total liabilities and shareholders’ equity $ 90,422,808 $ 1,874,874 $ (1,848,625 ) $ 90,449,057 (1) Excludes investment in wholly-owned Bank subsidiary Parent Community Banking Transaction Asset Parent Only Total For the year ended Interest income $ 3,567,763 $ — $ — $ — $ 3,567,763 Interest expense 316,358 — 14,704 331,062 Net interest income 3,251,405 — — (14,704 ) 3,236,071 Reversal of provision for loan losses 150,000 — — — 150,000 Noninterest income 262,521 383,312 — 21,074 666,907 Noninterest expense 4,271,806 2,214,478 140,782 1,919,981 8,547,047 Income (loss) before income taxes (907,580 ) (1,831,166 ) (140,782 ) (1,913,611 ) (4,793,439 ) Income taxes 5,080 — — — 5,080 Net income (loss) $ (912,960 ) $ (1,831,166 ) $ (140,782 ) $ (1,913,611 ) $ (4,798,519 ) As of December 31, 2015 Community Banking Holding Company (1) Eliminations Total Cash and due from banks $ 5,458,252 $ 2,909,255 $ (2,913,712 ) $ 5,453,795 Interest bearing deposits in other institutions 1,500,000 — — 1,500,000 Federal funds sold 8,446,000 — — 8,446,000 Investment securities 10,687,851 — — 10,687,851 Loans receivable, net 66,402.246 — — 66,402,246 Other real estate owned 1,278,900 631,320 — 1,910,220 Property, equipment, and software, net 2,053,575 145,221 — 2,198,796 Other assets 771,437 96,961 — 868,398 Total Assets $ 96,598,261 $ 3,782,757 $ (2,913,712 ) $ 97,467,306 Deposits $ 86,481,037 $ — $ (2,913,712 ) $ 83,567,325 Securities sold under agreement to repurchase 113,080 — — 113,080 Accrued and other liabilities 236,918 905,824 — 1,142,742 Shareholders’ equity (deficit) 9,767,226 2,876,933 — 12,644,159 Total liabilities and shareholders’ equity $ 96,598,261 $ 3,782,757 $ (2,913,712 ) $ 97,467,306 (1) Excludes investment in wholly-owned Bank subsidiary The sole activity conducted within our asset management business segment is the resolution of assets purchased by the Company in the second quarter of 2013 from the Bank. All assets have been sold and resolved as of December 31, 2016. The activities conducted within our transaction services business segment relate to the Company’s research and development efforts to enhance existing and develop new digital banking, payments and transaction services. The Company incurred approximately $250,000 and $2.2 million in research and development expenses during 2016 and 2015, respectively. The expenses paid since the suspension of the development of the transaction services segment in September 2015 relate to remaining monthly contract costs which have since been completed. The Company recognized approximately $383,000 in noninterest income during 2015 within the transaction services business segment and approximately $21,000 representing forgiveness of debt as a result of settling certain outstanding liabilities for the Company. As previously noted, on September 25, 2015, the Company suspended development of its digital banking business.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2016
Fair Value of Financial Instruments [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 20 — FAIR VALUE OF FINANCIAL INSTRUMENTS 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 1. Available-for-sale investment securities ($2,499,805 and $10,687,851 at December 31, 2016 and 2015, respectively) are carried at fair value and measured on a recurring basis using Level 2 inputs (other observable 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 December 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 December 31, 2016 and 2015 was $1.6 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 December 31, 2016 and 2015 was $2,222,667 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 December 31, 2016, the significant observable inputs used in the fair value measurements were as follows: Description Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs Other real estate owned and repossessed assets $2,222,667 Appraised value Discounts to reflect current market conditions, abbreviated holding period, and estimated costs to sell Impaired loans $1,606,590 Internal assessment of appraised value Adjustments to estimated 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: Description Fair Value at December 31, 2015 Valuation Technique Significant 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 appraised value Adjustments to estimated 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. The carrying value of loans held for sale as of December 31, 2016 approximates fair value as these loans were discounted to their liquidation value which is equal to the minimum acceptable bid price established by the Company in connection with the Company’s intent to sell these loans to unaffiliated third party investors. Fair value for demand deposit accounts and interest bearing accounts with no fixed maturity date is equal to the carrying value. The 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 December 31, 2016 and 2015 are as follows: December 31, 2016 Carrying Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,631,727 $ 4,631,727 $ 4,631,727 $ — $ — Interest bearing deposits in other institutions 10,500,000 10,500,000 — 10,500,000 — Federal funds sold 6,143,000 6,143,000 6,143,000 — — Investment securities available for sale 2,499,805 2,499,805 — 2,499,805 — Non-marketable equity securities 380,050 380,050 — 380,050 — Loans, net 59,144,847 59,084,364 — — 59,084,364 Bank owned life insurance 2,542,910 2,542,910 — 2,542,910 — Financial Liabilities: Deposits 79,707,648 79,598,034 — 79,598,034 — Securities sold under agreements to repurchase 113,598 113,598 — 113,598 — December 31, 2015 Carrying 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 66,602,246 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 —

Bank Owned Life Insurance and P

Bank Owned Life Insurance and Pre-Retirement Benefit Plan	12 Months Ended
	Dec. 31, 2016
Bank Owned Life Insurance And Pre Retirement Benefit Plan [Abstract]
BANK OWNED LIFE INSURANCE AND PRE-RETIREMENT BENEFIT PLAN	NOTE 21 — BANK OWNED LIFE INSURANCE AND PRE-RETIREMENT BENEFIT PLAN In June 2016, the Bank purchased two bank owned life insurance policies with aggregate death benefits of $2,500,000 for investment purposes. The Bank is responsible for paying all premiums and is the owner and beneficiary of the policies. At December 31, 2016, the cash surrender value of these policies was $2,542,910, and as a result $42, 910 in income recognized during the period. In connection with the purchase of the bank owned life insurance policies, the Bank offered pre-retirement death benefits to selected employees of the Bank. The policies are not transferrable to the employees and are not impacted by a change in control. The pre-retirement death benefits are indirectly funded by the bank owned life insurance.

Parent Company Financial Inform

Parent Company Financial Information	12 Months Ended
	Dec. 31, 2016
Parent Company Financial Information [Abstract]
PARENT COMPANY FINANCIAL INFORMATION	NOTE 22 — PARENT COMPANY FINANCIAL INFORMATION Following is condensed financial information of Independence Bancshares, Inc. (includes transaction service, asset management and holding company segments — for further detail, see “Note 19 — Business segments”): Condensed Balance Sheets December 31, 2016 2015 Cash and cash equivalents $ 1,847,837 $ 2,909,255 Investment in subsidiary 8,373,837 9,767,226 Premises and equipment, net 20,548 145,221 Other real estate owned — 631,320 Other assets 6,489 96,961 $ 10,248,711 $ 13,549,983 Liabilities and Shareholders’ Equity Accrued and other liabilities $ 304,346 $ 905,824 Shareholders’ equity 9,944,365 12,644,159 Total liabilities and shareholders’ equity $ 10,248,711 $ 13,549,983 Condensed Statements of Operations Year Ended December 31, 2016 2015 Equity in undistributed net loss of subsidiary $ (1,278,912 ) $ (912,960 ) Product research and development — Transaction Services (249,594 ) (2,209,978 ) Forgiveness of debt — 403,245 Loan interest and other income — 1,141 Interest expense on note payable — (14,704 ) Property tax expense (1,139 ) (23,504 ) Consulting and miscellaneous fees (222,056 ) (378,825 ) Real estate owned activity (145,373 ) (117,278 ) General and administrative expenses (529,432 ) (852,012 ) Legal expense (158,811 ) (404,672 ) Stock compensation expense (2,701 ) (288,972 ) Net loss $ (2,588,018 ) $ (4,798,519 ) Condensed Statements of Cash Flows Year Ended December 31, 2016 2015 Operating activities Net loss $ (2,588,018 ) $ (4,798,519 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock compensation expense 2,701 288,973 Equity in undistributed net loss of subsidiary 1,278,912 912,960 Net changes in fair value and losses on other real estate owned 18,222 105,603 Depreciation expense 124,107 128,549 Loss on disposal of property, equipment and software 566 — Change in other assets 90,472 153,329 Change in accrued items (601,478 ) (1,633,526 ) Net cash used in operating activities (1,674,516 ) (4,842,631 ) Investing activities Purchase of premises and equipment — (7,408 ) Proceeds from sale of other real estate owned 613,098 455,277 Net cash provided by investing activities 613,098 447,869 Financing activities Issuance of preferred stock, net of closing costs — 7,615,577 (Repayments of) proceeds from note payable from affiliate — (600,000 ) Net cash provided by financing activities — 7,015,577 Net increase (decrease) in cash and cash equivalents (1,061,418 ) 2,620,815 Cash and cash equivalents, beginning of year 2,909,255 288,440 Cash and cash equivalents, end of year $ 1,847,837 $ 2,909,255 Schedule of non-cash transactions Loans transferred to other real estate owned $ — $ —

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 23 — SUBSEQUENT EVENTS As part of our strategy to identify growth and sources of new operating revenues, including increasing net interest income, the Company purchased approximately $4.8 million in consumer loans during the first quarter of 2017. These loans are all personal unsecured loans with terms within 36 to 60 months and have a weighted interest rate of 10.42%. While the Company holds the loans, the servicing is retained by the seller for a 1% monthly fee.

Summary of Significant Accoun30

Summary of Significant Accounting Policies and Activities (Policies)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies and Activities [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Independence National 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.
Subsequent Events	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.
Reclassifications	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.
Estimates	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 relate to the determination of the allowance for loan losses, including valuation allowances for impaired loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and calculation of the provision for income taxes and deferred income tax assets and related valuation allowances. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties and takes into account other current market information. Management must also make estimates in determining the useful lives and methods for depreciating premises and equipment. While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowance for loan losses and changes to valuation of foreclosed real estate may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and valuation of foreclosed real estate. Such agencies may require the Company to recognize additions to the allowance for loan losses or additional write-downs on foreclosed real estate based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses and valuation of foreclosed real estate may change materially in the near term.
Risks and Uncertainties	Risks and Uncertainties In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest bearing liabilities mature or reprice at different speeds, or on different bases, than its interest-earning assets. Credit risk is the risk of default within the Company’s loan portfolio that results from borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company. The Company is subject to the regulations of various governmental agencies. These regulations can change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to changes with respect to valuation of assets, amount of required loss allowance and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. The Bank makes loans to individuals and businesses in and around “Upstate” South Carolina for various personal and commercial purposes. The Bank has a diversified loan portfolio. Borrowers’ ability to repay their loans is not dependent upon any specific economic sector.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes 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 December 31, 2016 and 2015, the Company had restricted cash totaling $2,000 with the Federal Home Loan Bank (“FHLB”) of Atlanta. 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.
Investment Securities	Investment Securities Investment securities are accounted for in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320, “Investments — Debt and Equity Securities.” Management classifies securities at the time of purchase into one of three categories as follows: (1) Securities Held to Maturity: securities which the Company has the positive intent and ability to hold to maturity, which are reported at amortized cost; (2) Trading Securities: securities that are bought and held principally for the purpose of selling them in the near future, which are reported at fair value with unrealized gains and losses included in earnings; and (3) Securities Available for Sale: securities that may be sold under certain conditions, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity as accumulated other comprehensive income. The amortization of premiums and accretion of discounts on investment securities are recorded as adjustments to interest income. Gains or losses on sales of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold, using the specific identification method. Losses on securities, reflecting a decline in value or impairment judged by the Company to be other-than-temporary, are charged to earnings in the consolidated statements of operations.
Non-Marketable Equity Securities	Non-Marketable Equity Securities The Bank, as a member of the Federal Reserve Bank (“FRB”) and the FHLB, is required to own capital stock in these organizations. The amount of FRB stock owned is based on the Bank’s capital levels and totaled $293,050 and $303,500 at December 31, 2016 and 2015, respectively. The amount of FHLB stock owned is determined based on the Bank’s balances of residential mortgages and advances from the FHLB and totaled $87,000 and $89,000 at December 31, 2016 and 2015, respectively. No ready market exists for these stocks, 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.
Loans Receivable	Loans Receivable Loans are stated at their unpaid principal balance net of any charge-offs. Interest income is computed using the simple interest method and is recorded in the period earned. Fees earned and direct costs incurred on loans are amortized using the effective interest method over the life of the loan. When serious doubt exists as to the collectability of a loan or when a loan becomes contractually 90 days past due as to principal or interest, interest income is generally discontinued unless the estimated net realizable value of collateral exceeds the principal balance and accrued interest. When interest accruals are discontinued, income earned but not collected is reversed. Cash receipts on nonaccrual loans are not recorded as interest income, but are used to reduce principal. Generally, loans are returned to accrual status when the loan is brought current and ultimate collectability of principal and interest is no longer in doubt.
Allowance for Loan Losses	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. In cases where management deems the amount of the reserve for loan losses to be less than previously determined, an adjustment to lower or reverse the provision will be recorded. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, as well as any reversal of provision, if any, are credited to the allowance. The allowance for loan losses or any reversal of provision 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 (less estimated selling costs) or observable market price of the impaired loan is lower than the carrying value of that loan. The general reserve component covers non-impaired loans and is calculated by applying historical loss factors to each sector of the loan portfolio and adjusting for qualitative environmental factors. Qualitative adjustments are used to adjust the historical average for changes to loss indicators within the economy, our market, and specifically our portfolio. The general reserve component is then combined with the specific reserve to determine the total allowance for loan losses. The Company identifies impaired loans through its 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 and in the process of the foreclosure process, they are moved to nonaccrual status and recognition of interest income is discontinued. 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. The Company designates loan modifications as troubled debt restructurings (TDRs) when, for economic or legal reasons related to the borrower’s financial difficulties, a concession is granted to the borrower that would not otherwise be considered. Upon initial restructuring, TDRs are considered classified and impaired and are placed in nonaccrual status if not already categorized. TDRs are returned to accrual status when there is economic substance to the restructuring, any portion of the debt not expected to be repaid has been charged off, the remaining note is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally six months).
Property and Equipment and Software	Property and Equipment and Software Land is reported at cost. Buildings and improvements, furniture and equipment, capitalized software, and automobiles are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method, based on the estimated useful lives of 40 years for buildings and 3 to 15 years for software, furniture, equipment and automobiles. Leasehold improvements are amortized over the life of the lease. The cost of assets sold or otherwise disposed of, and the related allowance for depreciation, are eliminated from the accounts and the resulting gains or losses are reflected in the statement of operations when incurred. Maintenance and repairs are charged to current expense. The costs of major renewals and improvements are capitalized.
Other Real Estate Owned and Repossessed Assets	Other Real Estate Owned and Repossessed Assets Real estate and other property acquired in settlement of loans, is recorded at the lower of cost or fair value less estimated selling costs, establishing a new cost basis at the time of acquisition. Fair value of such property is reviewed regularly and write-downs are recorded when it is determined that the carrying value of the property exceeds the fair value less estimated costs to sell. Write-downs resulting from the periodic reevaluation of such properties, costs related to holding such properties, and gains and losses on the sale of foreclosed properties are charged against income. Costs relating to the development and improvement of such properties are capitalized.
Securities Sold Under Agreements to Repurchase	Securities Sold Under Agreements to Repurchase The Bank enters into sales of securities under agreements to repurchase. Repurchase agreements are treated as financing, with the obligation to repurchase securities sold being reflected as a liability and the securities underlying the agreements remaining as assets.
Fair Value	Fair Value The Company determines the fair market values of its financial instruments based on the fair value hierarchy established in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”), which provides a framework for measuring and disclosing fair value under GAAP. 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.
Residential Loan Origination Fees	Residential Loan Origination Fees The Company offers residential loan origination services to its customers. The loans are offered on terms and prices offered by the Company’s correspondents and are closed in the name of the correspondents. The Company receives fees for services it provides in conjunction with these origination services. The fees are recognized at the time the loans are closed by the Company’s correspondent. Residential loan origination fees are included in other income on the Company’s consolidated statements of operations.
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.
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 common 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 years ended December 31, 2016 and 2015 as a result of the Company’s net loss, all of the potential common shares (3,089,755 and 3,097,255 stock options, respectively, and zero warrants, as the warrants were not exercised and were deemed expired in May 2015) 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 did not achieve technological feasibility in connection with its digital banking business and therefore expensed all computer software purchases and development expenses related to research and development. On September 25, 2015 the Company suspended the development of its digital banking business.
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 May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification 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, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. 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 Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. 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 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 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. 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. 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)	12 Months Ended
	Dec. 31, 2016
Investment Securities [Abstract]
Schedule of amortized costs and fair values of investment securities available for sale	December 31, 2016 Gross Unrealized Amortized Gains Losses Fair US treasury note $ 2,507,861 $ — $ (8,056 ) $ 2,499,805 Total investment securities available for sale $ 2,507,861 $ — $ (8,056 ) $ 2,499,805 December 31, 2015 Gross Unrealized Amortized Gains Losses Fair 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 available for sale $ 10,515,357 $ 234,342 $ (61,848 ) $ 10,687,851
Schedule of securities with unrealized losses	Securities in an Unrealized Securities in an Unrealized Total Fair Unrealized Fair Unrealized Fair Unrealized US treasury note $ 2,499,805 $ 8,056 $ — $ — $ 2,499,805 $ 8,056 Total temporarily impaired securities $ 2,499,805 $ 8,056 $ — $ — $ 2,499,805 $ 8,056 Securities in an Unrealized Securities in an Unrealized Total Fair Unrealized Fair Unrealized Fair Unrealized 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
Schedule of amortized costs and fair values of investment securities available for sale by contractual maturity	December 31, 2016 Amortized Fair Due within one year $ — $ — Due after one through three years — — Due after three through five years 2,507,861 2,499,805 Due after five through ten years — — Due after ten years — — Total investment securities $ 2,507,861 $ 2,499,805

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2016
Loans/Note Payable - Related Party [Abstract]
Composition of net loans by major category	December 31, 2016 2015 Real estate: Commercial $ 22,033,590 $ 25,559,943 Construction and development 7,913,783 7,286,459 Single and multifamily residential 13,314,130 16,434,722 Total real estate loans 43,261,503 49,281,124 Commercial business 15,954,106 17,027,054 Consumer 1,434,449 1,369,224 Deferred origination fees, net (167,062 ) (135,647 ) Gross loans, net of deferred fees 60,482,996 67,541,755 Less allowance for loan losses (1,338,149 ) (1,139,509 ) Loans, net $ 59,144,847 $ 66,402,246
Composition of gross loan before deduction of deferred origination fees by rate type	December 31, 2016 Variable rate loans $ 41,077,648 Fixed rate loans 19,572,410 $ 60,650,058
Summary of delinquencies and nonaccruals, by portfolio class	Single and Construction Commercial Commercial Consumer Total December 31, 2016 30–59 days past due $ 442,295 $ — $ — $ 617,052 $ — $ 1,059,347 60–89 days past due — — — 409,675 — 409,675 Nonaccrual 108,951 — 195,500 — — 304,451 Total past due and nonaccrual 551,246 — 195,500 — — 1,773,473 Current 12,762,884 7,913,783 21,838,090 14,927,379 1,434,449 58,876,585 Total loans $ 13,314,130 $ 7,913,783 $ 22,033,590 $ 15,954,106 $ 1,434,449 $ 60,650,058 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 — 1,665,190 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 $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402
Summarizes management's internal credit risk grades, by portfolio class	Single and Construction Commercial Commercial Consumer Total December 31, 2016 Pass Loans (Consumer) $ 8,246,567 $ 1,462,925 $ — $ — $ 1,434,449 $ 11,143,941 Grade 1 — Prime — — — — — — Grade 2 — Good — — — — — — Grade 3 — Acceptable 1,919,685 1,108,334 11,057,550 7,676,592 — 21,762,161 Grade 4 — Acceptable w/Care 2,877,013 5,273,411 9,232,019 7,307,961 — 24,690,404 Grade 5 — Special Mention — 69,113 766,388 — — 835,501 Grade 6 — Substandard 270,865 — 977,633 969,553 — 2,218,051 Grade 7 — Doubtful — — — — — — Total loans $ 13,314,130 $ 7,913,783 $ 22,033,590 $ 15,954,106 $ 1,434,449 $ 60,650,058 Single and Construction Commercial Commercial Consumer Total December 31, 2015 Pass Loans (Consumer) $ 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 $ 16,434,722 $ 7,286,459 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402
Summarizes information relative to impaired loans, by portfolio class	Unpaid Recorded Related Average Interest December 31, 2016 With no related allowance recorded: Single and multifamily residential real estate $ 99,794 $ 99,794 $ — $ 179,235 $ 3,261 Construction and development — — — 109,660 6,130 Commercial real estate — other 782,133 782,133 — 718,589 46,778 Commercial business 231,448 231,448 — 96,283 4,744 Consumer — — — — — With related allowance recorded: Single and multifamily residential real estate 171,071 171,071 93,471 201,000 3,251 Construction and development — — — 98,139 — Commercial real estate — other 195,500 195,500 30,500 524,283 — Commercial business 738,105 738,105 487,490 191,329 46,315 Consumer — — — — — Total: Single and multifamily residential real estate 270,865 270,865 93,471 380,235 6,512 Construction and development — — — 207,799 6,130 Commercial real estate — other 977,633 977,633 30,500 1,242,872 46,778 Commercial business 969,553 969,553 487,490 287,612 51,059 Consumer — — — — — $ 2,218,051 $ 2,218,051 $ 611,461 $ 2,118,518 $ 110,479 Unpaid Recorded Related Average Interest 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
Activity related to allowance for loan losses	Single and Construction Commercial Commercial Consumer Total December 31, 2016 Allowance for loan losses: Balance, beginning of year $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Provision (reversal of provision) for loan losses (30,000 ) (100,000 ) 100,000 440,000 (3,000 ) 407,000 Loan charge-offs — (10,500 ) (209,045 ) — (640 ) (220,185 ) Loan recoveries — — — — 11,825 11,825 Net loans charged-off — (10,500 ) (209,045 ) — 11,185 (208,360 ) Balance, end of year $ 235,797 $ 73,630 $ 330,785 $ 684,679 $ 13,258 $ 1,338,149 Individually reviewed for impairment $ 93,471 $ — $ 30,500 $ 487,490 $ — $ 611,461 Collectively reviewed for impairment 142,326 73,630 300,285 197,189 13,258 726,688 Total allowance for loan losses $ 235,797 $ 73,630 $ 330,785 $ 684,679 $ 13,258 $ 1,338,149 Gross loans, end of period: Individually reviewed for impairment $ 171,071 $ — $ 195,500 $ 738,105 $ — $ 1,104,676 Collectively reviewed for impairment 13,143,059 7,913,783 21,838,090 15,216,001 1,434,449 59,545,382 Total gross loans $ 13,314,130 $ 7,913,783 $ 22,033,590 $ 15,954,106 $ 1,434,449 $ 60,650,058 Single and Construction Commercial Commercial Consumer Total December 31, 2015 Allowance for loan losses: Balance, beginning of year $ 160,797 $ 234,130 $ 363,097 $ 184,679 $ 90,073 $ 1,032,776 Provision (reversal of provision) for loan losses 105,000 (50,000 ) 120,000 60,000 (85,000 ) 150,000 Loan charge-offs — — (43,267 ) — — (43,267 ) Loan recoveries — — — — — — Net loans charged-off — — (43,267 ) — — (43,267 ) Balance, end of year $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Individually reviewed for impairment $ 163,138 $ 10,500 $ 201,793 $ — $ — $ 375,431 Collectively reviewed for impairment 102,659 173,630 238,037 244,679 5,073 764,078 Total allowance for loan losses $ 265,797 $ 184,130 $ 439,830 $ 244,679 $ 5,073 $ 1,139,509 Gross loans, end of period: Individually reviewed for impairment $ 236,938 $ 40,500 $ 2,103,161 $ — $ — $ 2,380,599 Collectively reviewed for impairment 16,197,784 7,245,959 23,456,782 17,027,054 1,369,224 65,296,803 Total gross loans $ 16,434,722 $ 7,286,959 $ 25,559,943 $ 17,027,054 $ 1,369,224 $ 67,677,402

Property, Equipment and Softw33

Property, Equipment and Software (Table)	12 Months Ended
	Dec. 31, 2016
Property, Equipment and Software [Abstract]
Summary of components of property, equipment and software	December 31, 2016 2015 Land and land improvements $ 1,108,064 $ 1,108,064 Building 784,845 784,845 Leasehold improvements 257,159 257,159 Software 24,039 374,039 Furniture and equipment 1,464,847 1,432,378 3,638,954 3,956,485 Accumulated depreciation (1,613,180 ) (1,757,689 ) Total property, equipment and software $ 2,025,774 $ 2,198,796

Other Real Estate Owned and R34

Other Real Estate Owned and Repossessed Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Other Real Estate Owned and Repossessed Assets [Abstract]
Summary of composition of other real estate owned and repossessed assets	December 31, 2016 2015 Residential land lots $ — $ 31,320 Single and multifamily residential real estate — — Commercial office space 1,412,667 1,008,900 Commercial land 810,000 870,000 $ 2,222,667 $ 1,910,220
Summary of changes in other real estate owned and repossessed assets	2016 2015 Balance at beginning of year $ 1,910,220 $ 2,557,457 Repossessed property acquired in settlement of loans 1,257,289 300,000 Proceeds from sales of repossessed property (637,072 ) (582,295 ) Loss on sale and write-downs of repossessed property, net (307,770 ) (364,942 ) Balance at end of year $ 2,222,667 $ 1,910,220

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2016
Deposit Disclosure [Abstract]
Summary of deposits	2016 2015 Non-interest bearing $ 13,723,902 $ 13,010,209 Interest bearing: NOW accounts 8,959,818 8,894,408 Money market accounts 29,620,179 33,164,973 Savings 1,054,314 1,034,438 Time, less than $100,000 5,565,797 5,756,202 Time, $100,000 and over 20,783,638 21,707,095 Total deposits $ 79,707,648 $ 83,567,325
Scheduled maturities of certificates of deposit (including brokered time deposits)	2017 $ 15,097,432 2018 5,217,537 2019 4,468,684 2020 784,291 2021 781,490 $ 26,349,434

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
Summary of components of income tax expense	Year Ended December 31, 2016 2015 Current income tax expense (benefit) $ — $ 5,080 Deferred income tax expense (benefit) (944,814 ) (2,404,737 ) (944,814 ) (2,409,817 ) Change in valuation allowance 944,814 2,404,737 Income tax expense $ — $ 5,080
Summary of the items that caused recorded income taxes computed earlier	Year Ended December 31, 2016 2015 Income tax benefit at federal statutory rate $ (879,926 ) $ (1,629,769 ) Change in valuation allowance 944,814 (2,404,737 ) IRC Section 382 limitation to net operating loss carry-forward — 4,020,027 Other (64,888 ) 19,559 Income tax expense $ — $ 5,080
Summary of components of the net deferred tax liability	December 31, 2016 2015 Deferred tax assets (liabilities): Allowance for loan losses $ 278,511 $ 140,131 Lost interest on nonaccrual loans 19,047 44,348 Real estate acquired in settlement of loans 187,707 250,453 Net operating loss carry-forward 2,757,843 1,987,292 Deferred operational and start-up costs 43,471 56,513 Other-than-temporary impairment on non-marketable equity securities. — — Unrealized loss (gain) on investment securities available for sale (2,978 ) (58,648 ) Internally developed software 3,864,656 3,771,558 Other 229,187 185,313 7,377,444 6,376,960 Valuation allowance (7,377,444 ) (6,376,960 ) Net deferred tax asset $ — $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies [Abstract]
Summary of future minimum lease payments under operating leases	For the year ended December 31, 2017 $ 199,975 2018 138,080 2019 105,105 2020 — Thereafter — $ 443,160

Stock Compensation Plans (Table

Stock Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2016
Stock Compensation Plans [Abstract]
Summary of status of plan and changes for years	2016 2015 Shares Weighted Average Shares Weighted Outstanding at beginning of year 3,089,755 $ 1.11 3,102,255 $ 1.08 Granted — — 115,000 1.59 Exercised — — — — Forfeited or expired — — (127,500 ) 0.80 Outstanding at end of year 3,089,755 1.11 $ 0.00 3,089,755 1.11 Options exercisable at year-end 3,022,255 $ 0.00 3,022,255 Shares available for grant 2,030,935 2,030,935

Regulatory Matters (Tables)

Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 2016
Regulatory Matters [Abstract]
Summarizes capital amounts and ratios of the Bank and the regulatory minimum requirements	For capital To be well capitalized Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Total Capital (to risk weighted assets) $ 9,251,000 13.4 % $ 5,525,000 8.0 % $ 6,906,000 10.0 % Tier 1 Capital (to risk weighted assets) 8,382,000 12.1 2,762,000 4.0 4,144,000 6.0 Tier 1 Capital (to average assets) 8,382,000 9.0 3,724,000 4.0 4,655,000 5.0 Common Equity Tier 1 Capital (to risk weighted assets) 8,382,000 12.1 3,108,000 4.5 3,108,000 4.5 As of December 31, 2015 Total Capital (to risk weighted assets) $ 10,598,000 14.1 % $ 6,029,000 8.0 % $ 7,536,000 10.0 % Tier 1 Capital (to risk weighted assets) 9,653,000 12.8 3,014,000 4.0 4,521,000 6.0 Tier 1 Capital (to average assets) 9,653,000 10.0 3,875,000 4.0 4,844,000 5.0 Common Equity Tier 1 Capital (to risk weighted assets) 9,653,000 12.8 3,391,000 4.5 3,391,000 4.5

Business Segments (Tables)

Business Segments (Tables)	12 Months Ended
	Dec. 31, 2016
Business Segments [Abstract]
Summary of selected financial information for Company's reportable business segments	Parent Company Community Banking Transaction Asset Parent Only Total For the year ended Interest income $ 3,564,828 $ — $ — $ — $ 3,564,828 Interest expense 326,340 — — 326,340 Net interest income 3,238,488 — — — 3,238,488 Provision for loan losses 407,000 — — — 407,000 Noninterest income 840,694 — — — 840,694 Noninterest expense 4,951,094 249,594 146,512 913,000 6,260,200 Loss before income taxes (1,278,912 ) (249,594 ) (146,512 ) (913,000 ) (2,588,018 ) Income taxes — — — — — Net loss $ (1,278,912 ) $ (249,594 ) $ (146,512 ) $ (913,000 ) $ (2,588,018 ) As of December 31, 2016 Community Banking Holding Company (1) Eliminations Total Cash and due from banks $ 4,632,515 $ 1,847,837 $ (1,848,625 ) $ 4,631,727 Interest bearing deposits in other institutions 10,500,000 — — 10,500,000 Federal funds sold 6,143,000 — — 6,143,000 Investment securities 2,499,805 — — 2,499,805 Loans receivable, net 59,144,847 — — 59,144,847 Other real estate owned 2,222,667 — — 2,222,667 Property, equipment, and software, net 2,005,226 20,548 — 2,025,774 Bank owned life insurance 2,542,910 — — 2,542,910 Other assets 731,838 6,489 — 738,328 Total Assets $ 90,422,808 $ 1,874,874 $ (1,848,625 ) $ 90,449,057 Deposits $ 81,556,273 $ — $ (1,848,625 ) $ 79,707,648 Securities sold under agreement to repurchase 113,598 — — 113,598 Accrued and other liabilities 379,100 304,346 — 683,446 Shareholders’ equity 8,373,837 1,570,528 — 9,944,365 Total liabilities and shareholders’ equity $ 90,422,808 $ 1,874,874 $ (1,848,625 ) $ 90,449,057 (1) Excludes investment in wholly-owned Bank subsidiary Parent Community Banking Transaction Asset Parent Only Total For the year ended Interest income $ 3,567,763 $ — $ — $ — $ 3,567,763 Interest expense 316,358 — 14,704 331,062 Net interest income 3,251,405 — — (14,704 ) 3,236,071 Reversal of provision for loan losses 150,000 — — — 150,000 Noninterest income 262,521 383,312 — 21,074 666,907 Noninterest expense 4,271,806 2,214,478 140,782 1,919,981 8,547,047 Income (loss) before income taxes (907,580 ) (1,831,166 ) (140,782 ) (1,913,611 ) (4,793,439 ) Income taxes 5,080 — — — 5,080 Net income (loss) $ (912,960 ) $ (1,831,166 ) $ (140,782 ) $ (1,913,611 ) $ (4,798,519 ) As of December 31, 2015 Community Banking Holding Company (1) Eliminations Total Cash and due from banks $ 5,458,252 $ 2,909,255 $ (2,913,712 ) $ 5,453,795 Interest bearing deposits in other institutions 1,500,000 — — 1,500,000 Federal funds sold 8,446,000 — — 8,446,000 Investment securities 10,687,851 — — 10,687,851 Loans receivable, net 66,402.246 — — 66,402,246 Other real estate owned 1,278,900 631,320 — 1,910,220 Property, equipment, and software, net 2,053,575 145,221 — 2,198,796 Other assets 771,437 96,961 — 868,398 Total Assets $ 96,598,261 $ 3,782,757 $ (2,913,712 ) $ 97,467,306 Deposits $ 86,481,037 $ — $ (2,913,712 ) $ 83,567,325 Securities sold under agreement to repurchase 113,080 — — 113,080 Accrued and other liabilities 236,918 905,824 — 1,142,742 Shareholders’ equity (deficit) 9,767,226 2,876,933 — 12,644,159 Total liabilities and shareholders’ equity $ 96,598,261 $ 3,782,757 $ (2,913,712 ) $ 97,467,306 (1) Excludes investment in wholly-owned Bank subsidiary

Fair Value of Financial Instr41

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value of Financial Instruments [Abstract]
Fair value assets measured on non recurring basis unobservable inputs	Description Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs Other real estate owned and repossessed assets $2,222,667 Appraised value Discounts to reflect current market conditions, abbreviated holding period, and estimated costs to sell Impaired loans $1,606,590 Internal assessment of appraised value Adjustments to estimated value based on recent sales of comparable collateral Description Fair Value at December 31, 2015 Valuation Technique Significant 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 appraised value Adjustments to estimated value based on recent sales of comparable collateral
Estimated fair values of the Company's financial instruments	December 31, 2016 Carrying Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,631,727 $ 4,631,727 $ 4,631,727 $ — $ — Interest bearing deposits in other institutions 10,500,000 10,500,000 — 10,500,000 — Federal funds sold 6,143,000 6,143,000 6,143,000 — — Investment securities available for sale 2,499,805 2,499,805 — 2,499,805 — Non-marketable equity securities 380,050 380,050 — 380,050 — Loans, net 59,144,847 59,084,364 — — 59,084,364 Bank owned life insurance 2,542,910 2,542,910 — 2,542,910 — Financial Liabilities: Deposits 79,707,648 79,598,034 — 79,598,034 — Securities sold under agreements to repurchase 113,598 113,598 — 113,598 — December 31, 2015 Carrying 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 66,602,246 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 —

Parent Company Financial Info42

Parent Company Financial Information (Tables)	12 Months Ended
	Dec. 31, 2016
Parent Company Financial Information [Abstract]
Condensed balance sheet of Independence Bancshares, Inc. (parent company)	December 31, 2016 2015 Cash and cash equivalents $ 1,847,837 $ 2,909,255 Investment in subsidiary 8,373,837 9,767,226 Premises and equipment, net 20,548 145,221 Other real estate owned — 631,320 Other assets 6,489 96,961 $ 10,248,711 $ 13,549,983 Liabilities and Shareholders’ Equity Accrued and other liabilities $ 304,346 $ 905,824 Shareholders’ equity 9,944,365 12,644,159 Total liabilities and shareholders’ equity $ 10,248,711 $ 13,549,983
Condensed statements of operations of Independence Bancshares, Inc. (parent Company)	Year Ended December 31, 2016 2015 Equity in undistributed net loss of subsidiary $ (1,278,912 ) $ (912,960 ) Product research and development — Transaction Services (249,594 ) (2,209,978 ) Forgiveness of debt — 403,245 Loan interest and other income — 1,141 Interest expense on note payable — (14,704 ) Property tax expense (1,139 ) (23,504 ) Consulting and miscellaneous fees (222,056 ) (378,825 ) Real estate owned activity (145,373 ) (117,278 ) General and administrative expenses (529,432 ) (852,012 ) Legal expense (158,811 ) (404,672 ) Stock compensation expense (2,701 ) (288,972 ) Net loss $ (2,588,018 ) $ (4,798,519 )
Condensed statements of cash flows of Independence Bancshares, Inc. (parent company)	Year Ended December 31, 2016 2015 Operating activities Net loss $ (2,588,018 ) $ (4,798,519 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock compensation expense 2,701 288,973 Equity in undistributed net loss of subsidiary 1,278,912 912,960 Net changes in fair value and losses on other real estate owned 18,222 105,603 Depreciation expense 124,107 128,549 Loss on disposal of property, equipment and software 566 — Change in other assets 90,472 153,329 Change in accrued items (601,478 ) (1,633,526 ) Net cash used in operating activities (1,674,516 ) (4,842,631 ) Investing activities Purchase of premises and equipment — (7,408 ) Proceeds from sale of other real estate owned 613,098 455,277 Net cash provided by investing activities 613,098 447,869 Financing activities Issuance of preferred stock, net of closing costs — 7,615,577 (Repayments of) proceeds from note payable from affiliate — (600,000 ) Net cash provided by financing activities — 7,015,577 Net increase (decrease) in cash and cash equivalents (1,061,418 ) 2,620,815 Cash and cash equivalents, beginning of year 2,909,255 288,440 Cash and cash equivalents, end of year $ 1,847,837 $ 2,909,255 Schedule of non-cash transactions Loans transferred to other real estate owned $ — $ —

Summary of Significant Accoun43

Summary of Significant Accounting Policies and Activities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies and Activities (Textual)
Federal reserve bank stock	$ 293,050	$ 303,500
FHLB advances secured by stock	$ 87,000	$ 89,000
Stock Options [Member]
Summary of Significant Accounting Policies and Activities (Textual)
Anti-dilutive securities	3,089,755	3,097,255
Warrants [Member]
Summary of Significant Accounting Policies and Activities (Textual)
Anti-dilutive securities	0	0
Building [Member]
Summary of Significant Accounting Policies and Activities (Textual)
Estimated useful lives	40 years
Software furniture equipment and automobiles [Member]
Summary of Significant Accounting Policies and Activities (Textual)
Estimated useful lives	3 to 15 years
Federal Home Loan Bank of Atlanta [Member]
Summary of Significant Accounting Policies and Activities (Textual)
Restricted cash	$ 2,000	$ 2,000

Investment Securities (Details)

Investment Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale Securities [Abstract]
Amortized cost	$ 2,507,861	$ 10,515,357
Gross Unrealized Gains		234,342
Gross Unrealized Losses	(8,056)	(61,848)
Fair Value	2,499,805	10,687,851
US treasury note [Member]
Available-for-sale Securities [Abstract]
Amortized cost	2,507,861
Gross Unrealized Gains
Gross Unrealized Losses	(8,056)
Fair Value	$ 2,499,805
Government-sponsored mortgage-backed [Member]
Available-for-sale Securities [Abstract]
Amortized cost		4,290,680
Gross Unrealized Gains		66,350
Gross Unrealized Losses		(44,581)
Fair Value		4,312,449
Municipals, tax-exempt [Member]
Available-for-sale Securities [Abstract]
Amortized cost		4,916,379
Gross Unrealized Gains		140,335
Gross Unrealized Losses		(17,267)
Fair Value		5,039,447
Municipals, taxable [Member]
Available-for-sale Securities [Abstract]
Amortized cost		1,308,298
Gross Unrealized Gains		27,657
Gross Unrealized Losses
Fair Value		$ 1,335,955

Investment Securities (Details

Investment Securities (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale Securities [Abstract]
Securities Fair Value Loss Position for Less than 12 Months	$ 2,499,805	$ 951,338
Securities Unrealized losses Loss Position, Less than 12 Months	8,056	11,818
Securities Fair Value Loss Position for More than 12 Months		1,838,902
Securities Unrealized Losses Loss Position, More than 12 Months		50,030
Total Fair Value	2,499,805	2,790,240
Total Unrealized Losses	8,056	61,848
US treasury note [Member]
Available-for-sale Securities [Abstract]
Securities Fair Value Loss Position for Less than 12 Months	2,499,805
Securities Unrealized losses Loss Position, Less than 12 Months	8,056
Securities Fair Value Loss Position for More than 12 Months
Securities Unrealized Losses Loss Position, More than 12 Months
Total Fair Value	2,499,805
Total Unrealized Losses	$ 8,056
Government-sponsored mortgage-backed [Member]
Available-for-sale Securities [Abstract]
Securities Fair Value Loss Position for Less than 12 Months		627,542
Securities Unrealized losses Loss Position, Less than 12 Months		5,569
Securities Fair Value Loss Position for More than 12 Months		764,462
Securities Unrealized Losses Loss Position, More than 12 Months		39,012
Total Fair Value		1,392,004
Total Unrealized Losses		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		1,074,440
Securities Unrealized Losses Loss Position, More than 12 Months		11,018
Total Fair Value		1,398,236
Total Unrealized Losses		$ 17,267

Investment Securities (Detail46

Investment Securities (Details 2) - USD ($)	Dec. 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	2,507,861
Due after five through ten years, Amortized Cost
Due after ten years, Amortized Cost
Total investment securities, Amortized Cost	2,507,861
Due within one year, Fair Value
Due after one through three years, Fair Value
Due after three through five years, Fair Value	2,499,805
Due after five through ten years, Fair Value
Due after ten years, Fair Value
Total investment securities, Fair Value	$ 2,499,805	$ 10,687,851

Investment Securities (Detail47

Investment Securities (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Investment Securities (Textual)
Investment securities, fair value for continuous loss position for less than twelve months	$ 2,499,805	$ 951,338
Investment securities, fair value for more than one year		1,838,902
Investment securities, unrealized loss for more than one year		50,030
Proceeds from sales of securities	15,000,000	4,100,000
Gain and loss on sale of investment securities	296,723	87,995
Securities pledged as collateral for repurchase agreements	$ 2,400,000	$ 2,700,000

Loans (Details)

Loans (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Real estate:
Total real estate loans	$ 43,261,503	$ 49,281,124
Commercial business	15,954,106	17,027,054
Consumer	1,434,449	1,369,224
Deferred origination fees, net	(167,062)	(135,647)
Gross loans, net of deferred fees	60,482,996	67,541,755
Less allowance for loan losses	(1,338,149)	(1,139,509)	$ (1,032,776)
Loans, net	59,144,847	66,402,246
Commercial [Member]
Real estate:
Total real estate loans	22,033,590	25,559,943
Less allowance for loan losses	(330,785)	(439,830)	(363,097)
Construction and development [Member]
Real estate:
Total real estate loans	7,913,783	7,286,459
Less allowance for loan losses	(73,630)	(184,130)	(234,130)
Single and multifamily residential [Member]
Real estate:
Total real estate loans	13,314,130	16,434,722
Less allowance for loan losses	$ (235,797)	$ (265,797)	$ (160,797)

Loans (Details 1)

Loans (Details 1)	Dec. 31, 2016USD ($)
Composition of gross loans before deduction of deferred origination fees by rate type
Variable rate loans	$ 41,077,648
Fixed rate loans	19,572,410
Gross loan before deduction of deferred origination fees	$ 60,650,058

Loans (Details 2)

Loans (Details 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due	$ 1,059,347	$ 75,890
60-89 days past due	409,675	314,080
Nonaccrual	304,451	1,665,190
Total past due and nonaccrual	1,773,473	2,055,160
Current	58,876,585	65,622,242
Total loans	60,650,058	67,677,402
Single and multifamily residential real estate [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due	442,295	75,890
60-89 days past due		63,702
Nonaccrual	108,951	168,879
Total past due and nonaccrual	551,246	308,471
Current	12,762,884	16,126,251
Total loans	13,314,130	16,434,722
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		40,500
Total past due and nonaccrual		290,878
Current	7,913,783	6,995,581
Total loans	7,913,783	7,286,959
Commercial real estate - other [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due
60-89 days past due
Nonaccrual	195,500	1,390,013
Total past due and nonaccrual	195,500	1,390,013
Current	21,838,090	24,169,930
Total loans	22,033,590	25,559,943
Commercial business [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due	617,052
60-89 days past due	409,675
Nonaccrual		65,798
Total past due and nonaccrual		65,798
Current	14,927,379	16,961,256
Total loans	15,954,106	17,027,054
Consumer [Member]
Summary of delinquencies and nonaccruals, by portfolio class
30-59 days past due
60-89 days past due
Nonaccrual
Total past due and nonaccrual
Current	1,434,449	1,369,224
Total loans	$ 1,434,449	$ 1,369,224

Loans (Details 3)

Loans (Details 3) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Summary of management's internal credit risk grades
Total loans	$ 60,650,058	$ 67,677,402
Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	13,314,130	16,434,722
Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	7,913,783	7,286,959
Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	22,033,590	25,559,943
Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	15,954,106	17,027,054
Consumer [Member]
Summary of management's internal credit risk grades
Total loans	1,434,449	1,369,224
Pass Loans (Consumer) [Member]
Summary of management's internal credit risk grades
Total loans	11,143,941	11,060,372
Pass Loans (Consumer) [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	8,246,567	8,340,816
Pass Loans (Consumer) [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	1,462,925	1,350,332
Pass Loans (Consumer) [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans
Pass Loans (Consumer) [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans
Pass Loans (Consumer) [Member] | Consumer [Member]
Summary of management's internal credit risk grades
Total loans	1,434,449	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
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
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	21,762,161	21,076,951
Grade 3 - Acceptable [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	1,919,685	4,479,116
Grade 3 - Acceptable [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	1,108,334	809,004
Grade 3 - Acceptable [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	11,057,550	8,121,125
Grade 3 - Acceptable [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	7,676,592	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	24,690,404	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	2,877,013	3,382,209
Grade 4 - Acceptable w/Care [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	5,273,411	4,759,864
Grade 4 - Acceptable w/Care [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	9,232,019	14,724,468
Grade 4 - Acceptable w/Care [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	7,307,961	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	835,501	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		63,702
Grade 5 - Special Mention [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans	69,113	76,381
Grade 5 - Special Mention [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	766,388	611,189
Grade 5 - Special Mention [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans		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	2,218,051	2,876,775
Grade 6 - Substandard [Member] | Single and multifamily residential real estate [Member]
Summary of management's internal credit risk grades
Total loans	270,865	168,879
Grade 6 - Substandard [Member] | Construction and development [Member]
Summary of management's internal credit risk grades
Total loans		290,878
Grade 6 - Substandard [Member] | Commercial real estate - other [Member]
Summary of management's internal credit risk grades
Total loans	977,633	2,103,161
Grade 6 - Substandard [Member] | Commercial business [Member]
Summary of management's internal credit risk grades
Total loans	969,553	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 4)

Loans (Details 4) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of information relative to impaired loans, by portfolio class
Total, Unpaid principal balance	$ 2,218,051	$ 2,380,599
Total, Recorded investment	2,218,051	2,380,599
Total, Related allowance	611,461	375,431
Total, Average impaired investment	2,118,518	2,399,647
Total, Interest income	110,479	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	99,794
With no related allowance recorded, Recorded investment	99,794
With no related allowance recorded, Related allowance
With no related allowance recorded, Average impaired investment	179,235	411,430
With no related allowance recorded, Interest income	3,261	21,667
With related allowance recorded, Unpaid principal balance	171,071	236,938
With related allowance recorded, Recorded investment	171,071	236,938
With related allowance recorded, Related allowance	93,471	163,138
With related allowance recorded, Average impaired investment	201,000	270,668
With related allowance recorded, Interest income	3,251
Total, Unpaid principal balance	270,865	236,938
Total, Recorded investment	270,865	236,938
Total, Related allowance	93,471	163,138
Total, Average impaired investment	380,235	682,098
Total, Interest income	6,512	21,667
Construction and development [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 recorded, Related allowance
With no related allowance recorded, Average impaired investment	109,660	177,047
With no related allowance recorded, Interest income	6,130
With related allowance recorded, Unpaid principal balance		40,500
With related allowance recorded, Recorded investment		40,500
With related allowance recorded, Related allowance		10,500
With related allowance recorded, Average impaired investment	98,139	239,206
With related allowance recorded, Interest income		727
Total, Unpaid principal balance		40,500
Total, Recorded investment		40,500
Total, Related allowance		10,500
Total, Average impaired investment	207,799	416,253
Total, Interest income	6,130	727
Commercial real estate - other [Member]
Summary of information relative to impaired loans, by portfolio class
With no related allowance recorded, Unpaid principal balance	782,133	905,968
With no related allowance recorded, Recorded investment	782,133	905,968
With no related allowance recorded, Related allowance
With no related allowance recorded, Average impaired investment	718,589	415,488
With no related allowance recorded, Interest income	46,778	29,423
With related allowance recorded, Unpaid principal balance	195,500	1,197,193
With related allowance recorded, Recorded investment	195,500	1,197,193
With related allowance recorded, Related allowance	30,500	201,793
With related allowance recorded, Average impaired investment	524,283	805,654
With related allowance recorded, Interest income		46,761
Total, Unpaid principal balance	977,633	2,103,161
Total, Recorded investment	977,633	2,103,161
Total, Related allowance	30,500	201,793
Total, Average impaired investment	1,242,872	1,221,142
Total, Interest income	46,778	76,184
Commercial business [Member]
Summary of information relative to impaired loans, by portfolio class
With no related allowance recorded, Unpaid principal balance	231,448
With no related allowance recorded, Recorded investment	231,448
With no related allowance recorded, Related allowance
With no related allowance recorded, Average impaired investment	96,283	62,015
With no related allowance recorded, Interest income	4,744
With related allowance recorded, Unpaid principal balance	738,105
With related allowance recorded, Recorded investment	738,105
With related allowance recorded, Related allowance	487,490
With related allowance recorded, Average impaired investment	191,329	18,139
With related allowance recorded, Interest income	46,315	2,119
Total, Unpaid principal balance	969,553
Total, Recorded investment	969,553
Total, Related allowance	487,490
Total, Average impaired investment	287,612	80,154
Total, Interest income	51,059	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 recorded, 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 5)

Loans (Details 5) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Allowance for loan losses:
Balance, beginning of year	$ 1,139,509	$ 1,032,776
Provision (reversal of provision) for loan losses	407,000	150,000
Loan charge-offs	(220,185)	(43,267)
Loan recoveries	11,825
Net loans charged-off	(208,360)	(43,267)
Balance, end of year	1,338,149	1,139,509
Individually reviewed for impairment			$ 611,461	$ 375,431
Collectively reviewed for impairment			726,688	764,078
Total allowance for loan losses	1,139,509	1,032,776	1,338,149	1,139,509
Gross loans, end of period:
Individually reviewed for impairment			1,104,676	2,380,599
Collectively reviewed for impairment			59,545,382	65,296,803
Total gross loans			60,650,058	67,677,402
Single and multifamily residential real estate [Member]
Allowance for loan losses:
Balance, beginning of year	265,797	160,797
Provision (reversal of provision) for loan losses	(30,000)	105,000
Loan charge-offs
Loan recoveries
Net loans charged-off
Balance, end of year	235,797	265,797
Individually reviewed for impairment			93,471	163,138
Collectively reviewed for impairment			142,326	102,659
Total allowance for loan losses	265,797	160,797	235,797	265,797
Gross loans, end of period:
Individually reviewed for impairment			171,071	236,938
Collectively reviewed for impairment			13,143,059	16,197,784
Total gross loans			13,314,130	16,434,722
Construction and development [Member]
Allowance for loan losses:
Balance, beginning of year	184,130	234,130
Provision (reversal of provision) for loan losses	(100,000)	(50,000)
Loan charge-offs	(10,500)
Loan recoveries
Net loans charged-off	(10,500)
Balance, end of year	73,630	184,130
Individually reviewed for impairment				10,500
Collectively reviewed for impairment			73,630	173,630
Total allowance for loan losses	184,130	234,130	73,630	184,130
Gross loans, end of period:
Individually reviewed for impairment				40,500
Collectively reviewed for impairment			7,913,783	7,245,959
Total gross loans			7,913,783	7,286,959
Commercial real estate - other [Member]
Allowance for loan losses:
Balance, beginning of year	439,830	363,097
Provision (reversal of provision) for loan losses	100,000	120,000
Loan charge-offs	(209,045)	(43,267)
Loan recoveries
Net loans charged-off	(209,045)	(43,267)
Balance, end of year	330,785	439,830
Individually reviewed for impairment			30,500	201,793
Collectively reviewed for impairment			300,285	238,037
Total allowance for loan losses	439,830	363,097	330,785	439,830
Gross loans, end of period:
Individually reviewed for impairment			195,500	2,103,161
Collectively reviewed for impairment			21,838,090	23,456,782
Total gross loans			22,033,590	25,559,943
Commercial business [Member]
Allowance for loan losses:
Balance, beginning of year	244,679	184,679
Provision (reversal of provision) for loan losses	440,000	60,000
Loan charge-offs
Loan recoveries
Net loans charged-off
Balance, end of year	684,679	244,679
Individually reviewed for impairment			487,490
Collectively reviewed for impairment			197,189	244,679
Total allowance for loan losses	244,679	184,679	684,679	244,679
Gross loans, end of period:
Individually reviewed for impairment			738,105
Collectively reviewed for impairment			15,216,001	17,027,054
Total gross loans			15,954,106	17,027,054
Consumer [Member]
Allowance for loan losses:
Balance, beginning of year	5,073	90,073
Provision (reversal of provision) for loan losses	(3,000)	(85,000)
Loan charge-offs	(640)
Loan recoveries	11,825
Net loans charged-off	11,185
Balance, end of year	13,258	5,073
Individually reviewed for impairment
Collectively reviewed for impairment			13,258	5,073
Total allowance for loan losses	$ 5,073	$ 90,073	13,258	5,073
Gross loans, end of period:
Individually reviewed for impairment
Collectively reviewed for impairment			1,434,449	1,369,224
Total gross loans			$ 1,434,449	$ 1,369,224

Loans (Details Textual)

Loans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loans (Textual)
Commercial real estate loans	$ 29,900,000
Commercial real estate loan percentage of gross loan	49.40%
Aggregate amount outstanding	$ 1,700,000	$ 2,800,000
Lines of credit	95,000	266,000
Repayments of lines of credit	738,000	557,000
Additional credit to related party		140,000
Mortgage loan pledged with FHLB	34,900,000	39,900,000
Mortgage loan lendable collateral	12,300,000	13,000,000
Commercial loan pledged with FRB	15,500,000
Available credit under FRB collateral	11,400,000
Nonaccrual loans	304,451	1,665,190
Foregone interest income related to nonaccrual loans	$ 60,633	$ 129,066
Maximum number of days for nonaccrual status	90 days	90 days
Percentage of credit grade "pass" for loan portfolio	95.00%	93.00%
Total gross loans	$ 60,650,058	$ 67,677,402
Special Mention [Member]
Loans (Textual)
Total gross loans	835,501	1,597,378
Substandard [Member]
Loans (Textual)
Total gross loans	$ 2,218,051	$ 2,876,775

Property, Equipment and Softw55

Property, Equipment and Software (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, equipment and software, Gross	$ 3,638,954	$ 3,956,485
Accumulated depreciation	(1,613,180)	(1,757,689)
Total property, equipment and software	2,025,774	2,198,796
Land and land improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, equipment and software	1,108,064	1,108,064
Building [Member]
Property, Plant and Equipment [Line Items]
Total property, equipment and software	784,845	784,845
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, equipment and software	257,159	257,159
Software [Member]
Property, Plant and Equipment [Line Items]
Total property, equipment and software	24,039	374,039
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, equipment and software	$ 1,464,847	$ 1,432,378

Property, Equipment and Softw56

Property, Equipment and Software (Details Textual)	12 Months Ended
	Dec. 31, 2016USD ($)Assets	Dec. 31, 2015USD ($)
Property, Equipment and Software (Textual)
Depreciation expense	$ 206,623	$ 215,471
Asset purchases	34,167	$ 30,260
Asset retirement totaling	$ 351,698
Number of disposals totaling | Assets	2

Other Real Estate Owned and R57

Other Real Estate Owned and Repossessed Assets (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Composition of other real estate owned and repossessed assets
Other real estate owned and repossessed assets	$ 2,222,667	$ 1,910,220	$ 2,557,457
Residential land lots [Member]
Composition of other real estate owned and repossessed assets
Other real estate owned and repossessed assets		31,320
Single and multifamily residential real estate [Member]
Composition of other real estate owned and repossessed assets
Other real estate owned and repossessed assets
Commercial office space [Member]
Composition of other real estate owned and repossessed assets
Other real estate owned and repossessed assets	1,412,667	1,008,900
Commercial land [Member]
Composition of other real estate owned and repossessed assets
Other real estate owned and repossessed assets	$ 810,000	$ 870,000

Other Real Estate Owned and R58

Other Real Estate Owned and Repossessed Assets (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of changes in other real estate owned and repossessed assets
Balance at beginning of year	$ 1,910,220	$ 2,557,457
Repossessed property acquired in settlement of loans	1,257,289	300,000
Proceeds from sales of repossessed property	(637,072)	(582,295)
Loss on sale and write-downs of repossessed property, net	(307,770)	(364,942)
Balance at end of year	$ 2,222,667	$ 1,910,220

Other Real Estate Owned and R59

Other Real Estate Owned and Repossessed Assets (Details Textual) - USD ($)	Mar. 07, 2017	Dec. 31, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Other real estate owned increased			$ 1,300,000
Proceeds from sale of land			24,000
Loss from sale			6,000
Write downs on real estate owned purchased from Bank			613,000
Loss on purchase from bank			$ 18,000
Proceeds from owned real estate		$ 284,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Transfer of owned real estate	$ 165,000
Reserve value of real estate	$ 35,000

Deposits (Details)

Deposits (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Summary of Deposits
Non-interest bearing	$ 13,723,903	$ 13,010,209
Interest bearing:
NOW accounts	8,959,818	8,894,408
Money market accounts	29,620,179	33,164,973
Savings	1,054,314	1,034,438
Time, less than $100,000	5,565,797	5,756,202
Time, $100,000 and over	20,783,638	21,707,095
Total deposits	$ 79,707,648	$ 83,567,325

Deposits (Details1)

Deposits (Details1)	Dec. 31, 2016USD ($)
Scheduled maturities of certificates of deposit (including brokered time deposits)
2,017	$ 15,097,432
2,018	5,217,537
2,019	4,468,684
2,020	784,291
2,021	781,490
Total	$ 26,349,434

Deposits (Details Textual)

Deposits (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deposits (Textual)
Interest expense on time deposits greater than $100,000	$ 192,160	$ 182,041
FDIC insurance limit	250,000
Time deposits	9,163,592	$ 7,578,706
Securities were pledged as collateral for public deposits	2,300,000
Securities were pledged as collateral for business deposits	$ 50,000

Securities Sold Under Agreeme63

Securities Sold Under Agreements to Repurchase (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Securities Sold Under Agreements to Repurchase (Textual)
Securities sold under agreement to repurchase	$ 113,598	$ 113,080
Securities under agreements to repurchase with brokers, weighted rate	0.10%	0.10%
Securities under agreements to repurchase with brokers, maturity period	90 days	90 days
Amount of investment securities held as collateral pursuant to securities under agreements	$ 50,000	$ 107,000
Average securities under agreements to repurchase	135,708	98,636
Maximum amount of securities under agreements to repurchase outstanding at any month-end	$ 279,628	$ 354,739
Securities under agreements to repurchase average rate paid	0.10%	0.10%

Federal Home Loan Bank Advanc64

Federal Home Loan Bank Advances (Details) - USD ($)	Feb. 28, 2017	Dec. 31, 2014
Federal Home Loan Bank Advances (Textual)
Federal home loan bank advances		$ 5,000,000
FHLB weighted average rate		0.25%
FHLB advance maturity		2,015
Subsequent Event [Member]
Federal Home Loan Bank Advances (Textual)
Federal home loan bank advances	$ 4,000,000
FHLB weighted average rate	0.89%
FHLB advance maturity	2,017

Note Payable - Related Party (D

Note Payable - Related Party (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

Unused Lines of Credit (Details

Unused Lines of Credit (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2013	Dec. 31, 2010	Dec. 31, 2016	Dec. 31, 2015
Unused Lines of Credit (Textual)
Unused line of credit to purchase federal funds			$ 2	$ 2
Line of credit facility, description			One to fourteen day basis for general corporate purposes of the Bank.
FHLB advances secured by mortgage loans			$ 34.9	39.9
Mortgage loan lendable collateral			12.3	13
FHLB's credit risk rating, description	Increased borrowing availability (total line increased from 15% of total assets to 20% of total assets) and decreased collateral requirements (moved to 115% of borrowings from 125%).	Decreased borrowing availability (total line reduced to 15% of total assets from 20% of total assets) and increased collateral requirements (moved to 125% of borrowings from 115%).
Loan pledged with FRB			15.5
Mortgage loan lendable collateral, FRB			12.3
Available credit under FRB collateral			$ 11.4	$ 10.5

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of components of income tax expense
Current income tax expense (benefit)		$ 5,080
Deferred income tax expense (benefit)	(944,814)	(2,404,737)
Income tax expense, gross	(944,814)	(2,409,817)
Change in valuation allowance	944,814	2,404,737
Income tax expense		$ 5,080

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of the items that caused recorded income taxes to differ from taxes computed using the Company's statutory federal income tax rate
Income tax benefit at federal statutory rate	$ (879,926)	$ (1,629,769)
Change in valuation allowance	944,814	(2,404,737)
IRC Section 382 limitation to net operating loss carry-forward		4,020,027
Other	(64,888)	19,559
Income tax expense		$ 5,080

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets (liabilities):
Allowance for loan losses	$ 278,511	$ 140,131
Lost interest on nonaccrual loans	19,047	44,348
Real estate acquired in settlement of loans	187,707	250,453
Net operating loss carry-forward	2,757,843	1,987,292
Deferred operational and start-up costs	43,471	56,513
Other-than-temporary impairment on non-marketable equity securities.
Unrealized loss (gain) on investment securities available for sale	(2,978)	(58,648)
Internally developed software	3,864,656	3,771,558
Other	229,187	185,313
Deferred tax liability, gross	7,377,444	6,376,960
Valuation allowance	(7,377,444)	(6,376,960)
Net deferred tax asset

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes (Textual)
Statutory federal income tax rate	34.00%
Deferred tax assets valuation allowance	$ 7.4	$ 6.4
Federal operating loss carry-forwards	$ 8
Federal operating loss carry-forwards expiration period	Jan. 1, 2026
State operating loss carry-forwards	$ 1.2
State operating loss carry-forwards expiration period	Jan. 1, 2035

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Jan. 04, 2016	Sep. 03, 2015	Sep. 30, 2014	Jun. 30, 2015
Related Party Transactions (Textual)
Repayments of Debt			$ 600,000
Interest rate on mortgage loans			7.00%
Interest rate on mortgage loans, maturity			8.00%
Additional license fee	$ 275,000
Real Estate Loan [Member]
Related Party Transactions (Textual)
Outstanding loan				$ 149,774
Repayment of loan		$ 149,774

Financial Instruments with of72

Financial Instruments with off Balance Sheet Risk (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Financial Instruments with off Balance Sheet Risk (Textual)
Unfunded commitments to extend credit	$ 8,600,000
Commitments to extend credit at fixed rate	7,900,000
Commitments to extend credit at variable rate	$ 677,000

Commitments and Contingencies73

Commitments and Contingencies (Details)	Dec. 31, 2016USD ($)
Future minimum lease payments under operating leases
2,017	$ 199,975
2,018	138,080
2,019	105,105
2,020
Thereafter
Total	$ 443,160

Commitments and Contingencies74

Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies (Textual)
Operating lease period	2 years
Rent expense	$ 268,988	$ 314,117
Operating lease renewal options, description	Two-year renewal options in September 2012.
Office facility [Member] | October 1, 2012 through September 30, 2014 [Member]
Commitments and Contingencies (Textual)
Monthly rent under lease	$ 10,370
Office facility [Member] | October 1, 2014 through September 30, 2015 [Member]
Commitments and Contingencies (Textual)
Monthly rent under lease	10,789
Office facility [Member] | October 1, 2015 through September 30, 2016 [Member]
Commitments and Contingencies (Textual)
Monthly rent under lease	11,005
Office facility [Member] | October 1, 2016 through September 30, 2017 [Member]
Commitments and Contingencies (Textual)
Monthly rent under lease	$ 11,225
Office facility [Member] | NEW YORK [Member]
Commitments and Contingencies (Textual)
Operating lease period	21 months
Office facility [Member] | NEW YORK [Member] | June 23, 2013 through June 30, 2013 [Member]
Commitments and Contingencies (Textual)
Rent installment amount		2,680
Office facility [Member] | NEW YORK [Member] | July 1, 2013 through February 27, 2015 [Member]
Commitments and Contingencies (Textual)
Rent installment amount		9,450
Branch facility [Member]
Commitments and Contingencies (Textual)
Operating lease period	10 years
Branch facility [Member] | August 1, 2012 through July 31, 2017 [Member]
Commitments and Contingencies (Textual)
Monthly rent under lease	$ 9,229
Main office facility [Member]
Commitments and Contingencies (Textual)
Rent expense		$ 2,189

Stock Compensation Plans (Detai

Stock Compensation Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year, Shares	3,097,255
Outstanding at end of year, Shares	3,089,755	3,097,255
Outstanding at beginning of year, Weighted average exercise price	$ 1.11
Outstanding at end of year, Weighted average exercise price	$ 1.11	$ 1.11
Stock Compensation Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year, Shares	3,089,755	3,102,255
Granted, Shares		115,000
Exercised, Shares
Forfeited or expired, Shares		(127,500)
Outstanding at end of year, Shares	3,089,755	3,089,755
Options exercisable at year-end, Shares	3,022,255	3,022,255
Shares available for grant, Shares	2,030,935	2,030,935
Outstanding at beginning of year, Weighted average exercise price	$ 1.11	$ 1.08
Granted, Weighted average exercise price		1.59
Exercised, Weighted average exercise price
Forfeited or expired, Weighted average exercise price		0.80
Outstanding at end of year, Weighted average exercise price	$ 1.11	$ 1.11
Outstanding at end of year, Average Intrinsic Value	$ 0
Options exercisable at year-end, Average Intrinsic Value	$ 0

Stock Compensation Plans (Det76

Stock Compensation Plans (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2005	Dec. 31, 2016	Dec. 31, 2015	Feb. 28, 2013	Jul. 26, 2005
Stock Compensation Plans (Textual)
Stock options outstanding		3,089,755	3,097,255
Weighted average exercise price		$ 1.11	$ 1.11
Earnings Per Share, Basic and Diluted		$ (0.13)	$ (0.23)
Stock compensation expense		$ 10,126	$ 303,829
Common stock shares purchasable through additional warrants	312,500
Per share price of common stock issued for warrants	$ 10
Warrants vested period, description	Six-months from the date the Bank opened for business, or May 16, 2005.
Warrant exercisable date	May 16, 2015
Employee Stock Option [Member]
Stock Compensation Plans (Textual)
Stock options outstanding		3,097,255
Options vested		3,067,255
Earnings Per Share, Basic and Diluted		$ 0.15
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				2,466,720	260,626
2013 Incentive Plan [Member]
Stock Compensation Plans (Textual)
Number of shares reserved for issuance of stock options				2,466,720

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee Benefit Plan (Textual)
Percentage of employer contribution in profit sharing plan	50.00%
Percentage of maximum annual compensation in profit sharing plan	6.00%
Amount charged to operation for Company's matching contribution	$ 14,043	$ 15,859

Regulatory Matters (Details)

Regulatory Matters (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Summarizes Capital Amounts and Ratios of Bank and Regulatory Minimum Requirements
Total Capital (to risk weighted assets), Actual amount	$ 9,251,000	$ 10,598,000
Total Capital (to risk weighted assets), For capital adequacy purposes, Minimum Amount	5,525,000	6,029,000
Total Capital (to risk weighted assets), To be well capitalized under prompt corrective action provisions, Minimum Amount	6,906,000	7,536,000
Tier 1 Capital (to risk weighted assets), Actual Amount	8,382,000	9,653,000
Tier 1 Capital (to risk weighted assets), For capital adequacy purposes, Minimum Amount	2,762,000	3,014,000
Tier 1 Capital (to risk weighted assets), To be well capitalized under prompt corrective action provisions, Minimum Amount	4,144,000	4,521,000
Tier 1 Capital (to average assets), Actual Amount	8,382,000	9,653,000
Tier 1 Capital (to average assets), For capital adequacy purposes, Minimum Amount	3,724,000	3,875,000
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Minimum Amount	4,655,000	4,844,000
Common Equity Tier 1 Capital (to risk weighted assets), Actual Amount	8,382,000	9,653,000
Common Equity Tier 1 Capital (to risk weighted assets), For capital adequacy purposes, Minimum Amount	3,108,000	3,391,000
Common Equity Tier 1 Capital (to risk weighted assets), To be well capitalized under prompt corrective action provisions, Minimum Amount	$ 3,108,000	$ 3,391,000
Total Capital (to risk weighted assets), Actual ratio	13.40%	14.10%
Total Capital (to risk weighted assets), For capital adequacy purposes, Minimum Ratio	8.00%	8.00%
Total Capital (to risk weighted assets), To be well capitalized under prompt corrective action provisions, Minimum Ratio	10.00%	10.00%
Tier 1 Capital (to risk weighted assets), Actual Ratio	12.10%	12.80%
Tier 1 Capital (to risk weighted assets), For capital adequacy purposes, Minimum ratio	4.00%	4.00%
Tier 1 Capital (to risk weighted assets), To be well capitalized under prompt corrective action provisions, Minimum Ratio	6.00%	6.00%
Tier 1 Capital (to average assets), Actual Ratio	9.00%	10.00%
Tier 1 Capital (to average assets), For capital adequacy purposes, Minimum Ratio	4.00%	4.00%
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Minimum Ratio	5.00%	5.00%
Common Equity Tier 1 Capital (to risk weighted assets), Actual Ratio	12.10%	12.80%
Common Equity Tier 1 Capital (to risk weighted assets), For capital adequacy purposes, Minimum ratio	4.50%	4.50%
Common Equity Tier 1 Capital (to risk weighted assets), To be well capitalized under prompt corrective action provisions, Minimum Ratio	4.50%	4.50%

Regulatory Matters (Details Tex

Regulatory Matters (Details Textual)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Jul. 31, 2013
Regulatory Matters (Textual)
Federal reserve guidelines on exemption for bank holding companies, description	The Federal Reserve guidelines contain an exemption for bank holding companies of less than $1 billion in consolidated assets, subject to certain limitations.
Common equity tier 1 capital to risk-weighted assets	4.50%	4.50%
Tier 1 capital to risk-weighted assets	4.00%	4.00%
Minimum leverage ratio	4.00%	4.00%
FDIC [Member]
Regulatory Matters (Textual)
Common equity tier 1 capital to risk-weighted assets			4.50%
Minimum leverage ratio			4.00%
Common equity Tier 1 capital conservation risk weighted assets			2.50%
FDIC [Member] | Maximum [Member]
Regulatory Matters (Textual)
Tier 1 capital to risk-weighted assets			6.00%
FDIC [Member] | Minimum [Member]
Regulatory Matters (Textual)
Tier 1 capital to risk-weighted assets			4.00%

Business Segments (Details)

Business Segments (Details) - USD ($)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of selected financial information for Company's reportable business segments
Interest income		$ 3,564,828	$ 3,567,763
Interest expense		326,340	331,062
Net interest income		3,238,488	3,236,701
Provision for loan losses		407,000	150,000
Noninterest income		840,694	666,907
Noninterest expense		6,260,000	8,547,047
Loss before income taxes		(2,588,018)	(4,793,439)
Income taxes			5,080
Net loss		(2,588,018)	(4,798,519)
Cash and due from banks		4,631,727	5,453,795
Interest bearing deposits in other institutions		10,500,000	1,500,000
Federal funds sold		6,143,000	8,446,000
Investment securities		2,499,805	10,687,851
Loans receivable, net		59,144,847	66,402,246
Other real estate owned		2,222,667	1,910,220	$ 2,557,457
Property, equipment, and software, net		2,025,774	2,198,796
Bank owned life insurance		2,542,910
Other assets		187,935	243,683
Total Assets		90,449,057	97,467,306
Deposits		79,707,648	83,567,325
Securities sold under agreement to repurchase		113,598	113,080
Accrued and other liabilities		683,446	1,142,742
Shareholders' equity		9,944,365	12,644,159	$ 9,410,580
Total liabilities and shareholders' equity		90,449,057	97,467,306
Community Banking [Member]
Summary of selected financial information for Company's reportable business segments
Interest income		3,564,828	3,567,763
Interest expense		326,340	316,358
Net interest income		3,238,488	3,251,405
Provision for loan losses		407,000	150,000
Noninterest income		840,694	262,521
Noninterest expense		4,951,094	4,271,806
Loss before income taxes		(1,278,912)	(907,580)
Income taxes			5,080
Net loss		(1,278,912)	(912,960)
Cash and due from banks		4,632,515	5,458,252
Interest bearing deposits in other institutions		10,500,000	1,500,000
Federal funds sold		6,143,000	8,446,000
Investment securities		2,499,805	10,687,851
Loans receivable, net		59,144,847	66,402,246
Other real estate owned		2,222,667	1,278,900
Property, equipment, and software, net		2,005,226	2,053,575
Bank owned life insurance		2,542,910
Other assets		731,838	771,437
Total Assets		90,422,808	96,598,261
Deposits		81,556,273	86,481,037
Securities sold under agreement to repurchase		113,598	113,080
Accrued and other liabilities		379,100	236,918
Shareholders' equity		8,373,837	9,767,226
Total liabilities and shareholders' equity		90,422,808	96,598,261
Transaction Services [Member]
Summary of selected financial information for Company's reportable business segments
Interest income
Interest expense
Net interest income
Provision for loan losses
Noninterest income			383,312
Noninterest expense		249,594	2,214,478
Loss before income taxes		(249,594)	(1,831,166)
Income taxes
Net loss		(249,594)	(1,831,166)
Asset Management [Member]
Summary of selected financial information for Company's reportable business segments
Interest income
Interest expense
Net interest income
Provision for loan losses
Noninterest income
Noninterest expense		146,512	140,782
Loss before income taxes		(146,512)	(140,782)
Income taxes
Net loss		(146,512)	(140,782)
Parent Only [Member]
Summary of selected financial information for Company's reportable business segments
Interest income
Interest expense			14,704
Net interest income			(14,704)
Provision for loan losses
Noninterest income			21,074
Noninterest expense		913,000	1,919,981
Loss before income taxes		(913,000)	(1,913,611)
Income taxes
Net loss		(913,000)	(1,913,611)
Holding Company [Member]
Summary of selected financial information for Company's reportable business segments
Cash and due from banks	[1]	1,847,837	2,909,255
Interest bearing deposits in other institutions	[1]
Federal funds sold	[1]
Investment securities	[1]
Loans receivable, net	[1]
Other real estate owned	[1]		631,320
Property, equipment, and software, net	[1]	20,548	145,221
Bank owned life insurance	[1]
Other assets	[1]	6,489	96,961
Total Assets	[1]	1,874,874	3,782,757
Deposits	[1]
Securities sold under agreement to repurchase	[1]
Accrued and other liabilities	[1]	304,346	905,824
Shareholders' equity	[1]	1,570,528	2,876,933
Total liabilities and shareholders' equity	[1]	1,874,874	3,782,757
Eliminations [Member]
Summary of selected financial information for Company's reportable business segments
Cash and due from banks		(1,848,625)	(2,913,712)
Interest bearing deposits in other institutions
Federal funds sold
Investment securities
Loans receivable, net
Other real estate owned
Property, equipment, and software, net
Bank owned life insurance
Other assets
Total Assets		(1,848,625)	(2,913,712)
Deposits		(1,848,625)	(2,913,712)
Securities sold under agreement to repurchase
Accrued and other liabilities
Shareholders' equity
Total liabilities and shareholders' equity		$ (1,848,625)	$ (2,913,712)
[1]	Excludes investment in wholly-owned Bank subsidiary

Business Segments (Details Text

Business Segments (Details Textual)	12 Months Ended
	Dec. 31, 2016USD ($)Segment	Dec. 31, 2015USD ($)
Business Segments (Textual)
Number of business segments | Segment	4
Research and development expense	$ 249,594	$ 2,209,978
Noninterest income		383,000
Forgiveness of debt		$ 21,000

Fair Value of Financial Instr82

Fair Value of Financial Instruments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of assets measured at fair value on a non-recurring basis
Other real estate owned and repossessed assets	$ 2,222,667	$ 1,910,220	$ 2,557,457
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	$ 2,222,667	$ 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	$ 1,606,590	$ 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 of Financial Instr83

Fair Value of Financial Instruments (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Financial Assets:
Cash and due from banks	$ 4,631,727	$ 5,453,795
Interest bearing deposits in other institutions	10,500,000	1,500,000
Federal funds sold	6,143,000	8,446,000
Investment securities available for sale	2,499,805	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net	59,144,847	66,402,246
Bank owned life insurance	2,542,910
Financial Liabilities:
Deposits	79,707,648	83,567,325
Securities sold under agreements to repurchase	113,598	113,080
Carrying Amount [Member]
Financial Assets:
Cash and due from banks	4,631,727	5,453,795
Interest bearing deposits in other institutions	10,500,000	1,500,000
Federal funds sold	6,143,000	8,446,000
Investment securities available for sale	2,499,805	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net	59,144,847	66,602,246
Bank owned life insurance	2,542,910
Financial Liabilities:
Deposits	79,707,648	83,567,325
Securities sold under agreements to repurchase	113,598	113,080
Fair Value [Member]
Financial Assets:
Cash and due from banks	4,631,727	5,453,795
Interest bearing deposits in other institutions	10,500,000	1,500,000
Federal funds sold	6,143,000	8,446,000
Investment securities available for sale	2,499,805	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net	59,084,364	66,873,213
Bank owned life insurance	2,542,910
Financial Liabilities:
Deposits	79,598,034	83,538,827
Securities sold under agreements to repurchase	113,598	113,080
Fair Value [Member] | Level 1 [Member]
Financial Assets:
Cash and due from banks	4,631,727	5,453,795
Interest bearing deposits in other institutions
Federal funds sold	6,143,000	8,446,000
Investment securities available for sale
Non-marketable equity securities
Loans, net
Bank owned life insurance
Financial Liabilities:
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	10,500,000	1,500,000
Federal funds sold
Investment securities available for sale	2,499,805	10,687,851
Non-marketable equity securities	380,050	392,500
Loans, net
Bank owned life insurance	2,542,910
Financial Liabilities:
Deposits	79,598,034	83,538,827
Securities sold under agreements to repurchase	113,598	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	59,084,364	66,873,213
Bank owned life insurance
Financial Liabilities:
Deposits
Securities sold under agreements to repurchase

Fair Value of Financial Instr84

Fair Value of Financial Instruments (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value of Financial Instruments (Textual)
Investment securities available for sale	$ 2,499,805	$ 10,687,851
Net of specific reserves of impaired loans carried at fair value	1,600,000	2,000,000
Other real estate owned and repossessed assets	$ 2,222,667	$ 1,910,220	$ 2,557,457

Bank Owned Life Insurance and85

Bank Owned Life Insurance and Pre-Retirement Benefit Plan (Details)	12 Months Ended
	Dec. 31, 2016USD ($)	Jun. 30, 2016USD ($)InsurancePolicies
Bank Owned Life Insurance and Pre-Retirement Benefit Plan (Textual)
Number of life insurance policies | InsurancePolicies		2
Life insurance policies, aggregate death benefits		$ 2,500,000
Cash surrender value of life insurance	$ 2,542,910
Income recognized under policies	$ 42,910

Parent Company Financial Info86

Parent Company Financial Information (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Financial Assets:
Cash and cash equivalents	$ 10,774,727	$ 13,899,795	$ 10,904,080
Premises and equipment, net	2,025,774	2,198,796
Other real estate owned	2,222,667	1,910,220	2,557,457
Other assets	187,935	243,683
Total assets	90,449,057	97,467,306
Liabilities and Shareholders' Equity
Accrued and other liabilities	683,446	1,142,742
Shareholders' equity	9,944,365	12,644,159	$ 9,410,580
Total liabilities and shareholders' equity	90,449,057	97,467,306
Parent Company [Member]
Financial Assets:
Cash and cash equivalents	1,847,837	2,909,255
Investment in subsidiary	8,373,837	9,767,226
Premises and equipment, net	20,548	145,221
Other real estate owned		631,320
Other assets	6,489	96,961
Total assets	10,248,711	13,549,983
Liabilities and Shareholders' Equity
Accrued and other liabilities	304,346	905,824
Shareholders' equity	9,944,365	12,644,159
Total liabilities and shareholders' equity	$ 10,248,711	$ 13,549,983

Parent Company Financial Info87

Parent Company Financial Information (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Condensed statements of operations of Independence Bancshares, Inc. (parent Company)
Product research and development - Transaction Services	$ 249,594	$ 2,209,978
Forgiveness of debt		(403,245)
Loan interest and other income	3,272,291	3,193,831
Real estate owned activity	(512,407)	(457,173)
Net loss	(2,588,018)	(4,798,519)
Parent Company [Member]
Condensed statements of operations of Independence Bancshares, Inc. (parent Company)
Equity in undistributed net loss of subsidiary	(1,278,912)	(912,960)
Product research and development - Transaction Services	(249,594)	(2,209,978)
Forgiveness of debt		403,245
Loan interest and other income		1,141
Interest expense on note payable		(14,704)
Property tax expense	(1,139)	(23,504)
Consulting and miscellaneous fees	(222,056)	(378,825)
Real estate owned activity	(145,373)	(117,278)
General and administrative expenses	(529,432)	(852,012)
Legal expense	(158,811)	(404,672)
Stock compensation expense	(2,701)	(288,972)
Net loss	$ (2,588,018)	$ (4,798,519)

Parent Company Financial Info88

Parent Company Financial Information (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net loss	$ (2,588,018)	$ (4,798,519)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock compensation expense	10,126	303,829
Loss on disposal of property, equipment and software	(566)
Change in other assets	(117,621)	(170,697)
Net cash used in operating activities	(2,143,971)	(4,983,898)
Investing activities
Purchase of premises and equipment	34,167	30,260
Net cash provided by investing activities	2,878,062	5,311,897
Financing activities
Issuance of preferred stock, net of closing costs		7,615,577
Repayments on note payable		(600,000)
Net cash provided by financing activities	(3,859,159)	2,667,716
Net increase (decrease) in cash and cash equivalents	(3,125,068)	2,995,715
Cash and cash equivalents at beginning of the year	13,899,795	10,904,080
Cash and cash equivalents at end of the year	10,774,727	13,899,795
Parent Company [Member]
Operating activities
Net loss	(2,588,018)	(4,798,519)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock compensation expense	2,701	288,973
Equity in undistributed net loss of subsidiary	1,278,912	912,960
Net changes in fair value and losses on other real estate owned	18,222	105,603
Depreciation expense	124,107	128,549
Loss on disposal of property, equipment and software	566
Change in other assets	90,472	153,329
Change in accrued items	(601,478)	(1,633,526)
Net cash used in operating activities	(1,674,516)	(4,842,631)
Investing activities
Purchase of premises and equipment		7,408
Proceeds from sale of other real estate owned	613,098	455,277
Net cash provided by investing activities	613,098	447,869
Financing activities
Issuance of preferred stock, net of closing costs		7,615,577
Repayments on note payable		(600,000)
Net cash provided by financing activities		7,015,577
Net increase (decrease) in cash and cash equivalents	(1,061,418)	2,620,815
Cash and cash equivalents at beginning of the year	2,909,255
Cash and cash equivalents at end of the year	1,847,837	2,909,255
Schedule of non-cash transactions
Loans transferred to other real estate owned

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Subsequent Events [Textual]
Consumer loan	$ 4.8
Unsecured debt, description	Unsecured loans with terms within 36 to 60 months and have a weighted interest rate of 10.42%. While the Company holds the loans, the servicing is retained by the seller for a 1% monthly fee.
Weighted interest rate	10.42%