Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 14, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WBKC | ||
Entity Registrant Name | WOLVERINE BANCORP, INC. | ||
Entity Central Index Key | 1500836 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 2,215,665 | ||
Entity Public Float | $41,400,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $477 | $791 |
Interest-earning demand deposits | 29,209 | 25,390 |
Cash and cash equivalents | 29,686 | 26,181 |
Held to maturity securities | 123 | |
Loans held for sale | 570 | 1,325 |
Loans, net of allowance for loan losses of $7,976 and $7,597 | 296,477 | 259,381 |
Premises and equipment, net | 1,384 | 1,569 |
Federal Home Loan Bank stock | 2,500 | 3,320 |
Other real estate owned | 335 | 872 |
Accrued interest receivable | 777 | 699 |
Other assets | 4,895 | 4,291 |
Total assets | 336,624 | 297,761 |
Liabilities | ||
Deposits | 223,529 | 172,983 |
Federal Home Loan Bank advances | 50,000 | 61,994 |
Interest payable and other liabilities | 1,557 | 2,459 |
Total liabilities | 275,086 | 237,436 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common Stock, $0.01 par value per share: Authorized - 100,000,000 shares Issued and outstanding - 2,263,848 and 2,297,725 at December 31, 2014 and 2013 | 23 | 23 |
Additional paid-in capital | 18,640 | 18,952 |
Unearned employee stock ownership plan (ESOP) | -1,564 | -1,666 |
Retained earnings | 44,439 | 43,016 |
Total stockholders' equity | 61,538 | 60,325 |
Total liabilities and stockholders' equity | $336,624 | $297,761 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for loan losses | $7,976 | $7,597 |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 2,263,848 | 2,297,725 |
Common Stock, shares outstanding | 2,263,848 | 2,297,725 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest and Dividend Income | ||
Loans | $14,409 | $13,150 |
Investment securities and other | 198 | 252 |
Total interest and dividend income | 14,607 | 13,402 |
Interest Expense | ||
Deposits | 1,106 | 832 |
Borrowings | 2,038 | 2,358 |
Total interest expense | 3,144 | 3,190 |
Net Interest Income | 11,463 | 10,212 |
Provision for Loan Losses | 1,020 | 830 |
Net Interest Income After Provision for Loan Losses | 10,443 | 9,382 |
Noninterest Income | ||
Service charges and fees | 239 | 228 |
Net gains on loan sales | 585 | 1,525 |
Net gain (loss) of other real estate owned | -37 | 3 |
Gain on sale of premises and equipment | 747 | |
Other | 148 | 219 |
Total noninterest income | 1,682 | 1,975 |
Noninterest Expense | ||
Salaries and employee benefits | 4,637 | 5,447 |
Net occupancy and equipment expense | 883 | 876 |
Information technology expense | 238 | 230 |
Federal deposit insurance corporation premiums | 206 | 219 |
Professional and service fees | 491 | 442 |
Other real estate owned expense | 85 | 81 |
Loan legal expenses | 59 | 140 |
Advertising expenses | 173 | 268 |
Michigan business tax | 181 | 186 |
Other | 1,063 | 1,105 |
Total noninterest expense | 8,016 | 8,994 |
Income Before Income Tax | 4,109 | 2,363 |
Provision for Income Taxes | 1,426 | 804 |
Net Income | 2,683 | 1,559 |
Comprehensive Income | $2,683 | $1,559 |
Earnings Per Share: | ||
Basic | $1.28 | $0.69 |
Diluted | $1.27 | $0.69 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Unearned ESOP | Retained Earnings |
In Thousands | |||||
Balances at Dec. 31, 2012 | $62,447 | $24 | $21,850 | ($1,767) | $42,340 |
Net income | 1,559 | 1,559 | |||
Purchase of treasury stock | -3,345 | -1 | -3,344 | ||
Share based compensation | 333 | 333 | |||
ESOP shares earned | 214 | 113 | 101 | ||
Dividends ($.40 and $.60 per share) in 2013 and 2014 respectively | -883 | -883 | |||
Balances at Dec. 31, 2013 | 60,325 | 23 | 18,952 | -1,666 | 43,016 |
Net income | 2,683 | 2,683 | |||
Purchase of treasury stock | -807 | -807 | |||
Exercised options | 46 | 46 | |||
Share based compensation | 307 | 307 | |||
ESOP shares earned | 244 | 142 | 102 | ||
Dividends ($.40 and $.60 per share) in 2013 and 2014 respectively | -1,260 | -1,260 | |||
Balances at Dec. 31, 2014 | $61,538 | $23 | $18,640 | ($1,564) | $44,439 |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Treasury stock, shares purchased | 35,993 | 123,641 |
Dividends, per share | $0.60 | $0.40 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income | $2,683 | $1,559 |
Items not requiring (providing) cash | ||
Depreciation | 252 | 221 |
Provision for Loan Losses | 1,020 | 830 |
Amortization of Federal Home Loan Bank advances | 6 | 68 |
Deferred income taxes | -114 | -294 |
Earned ESOP shares | 244 | 214 |
Loans originated for sale | -17,007 | -51,903 |
Proceeds from loans sold | 18,347 | 54,747 |
Gain on sale of loans | -585 | -1,525 |
Gain on sale of premises and equipment | -747 | |
Share based compensation | 307 | 333 |
Changes in Interest receivable and other assets | -472 | 546 |
Interest payable and other liabilities | -902 | 115 |
Net cash provided by operating activities | 3,032 | 4,911 |
Investing Activities | ||
Proceeds from calls, maturities and pay-downs of held to maturity securities | 123 | 118 |
Net change in loans | -38,483 | -7,112 |
Proceeds from sale of premises and equipment | 752 | |
Proceeds from redemption of FHLB Stock | 820 | 1,071 |
Proceeds from sale of real estate owned | 808 | 714 |
Purchase of premises and equipment | -72 | -264 |
Net cash provided by (used in) investing activities | -36,052 | -5,473 |
Financing Activities | ||
Net change in money market, checking and savings accounts | 15,297 | 5,851 |
Net change in certificates of deposit | 35,249 | 8,568 |
Repayment of Federal Home Loan Bank advances | -12,000 | |
Proceeds from stock options exercised | 46 | |
Repurchase of common stock | -807 | -3,345 |
Dividends paid | -1,260 | -883 |
Net cash provided by financing activities | 36,525 | 10,191 |
Increase in Cash and Cash Equivalents | 3,505 | 9,629 |
Cash and Cash Equivalents, Beginning of Year | 26,181 | 16,552 |
Cash and Cash Equivalents, End of Year | 29,686 | 26,181 |
Supplemental Disclosures of Cash Flows Information | ||
Interest paid | 3,125 | 3,190 |
Income tax paid | 1,660 | 1,270 |
Loans transferred to other real estate | $367 | $739 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Nature of Operations and Summary of Significant Accounting Policies | Note 1: | Nature of Operations and Summary of Significant Accounting Policies |
Nature of Operations | ||
Wolverine Bank (the “Bank”), a wholly owned subsidiary of Wolverine Bancorp, Inc. (the “Company”), is a federally chartered savings bank primarily engaged in providing a full range of banking and financial services to individual and business customers in the Great Lakes Bay Region and beyond. The Company is subject to competition from other financial institutions. The Company is subject to the regulation of the Federal Reserve Board and the Bank is subject to the regulation of the Officer of the Comptroller of the Currency, and both undergo periodic examinations. | ||
The Bank’s additional wholly owned subsidiaries, Wolserv Corporation and Wolverine Commercial Holdings LLC, are included in the consolidated financial statements. | ||
Principles of Consolidation | ||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||
Use of Estimates | ||
The preparation of 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and financial instruments. | ||
Cash Equivalents | ||
We consider all liquid investments with original maturities of three months or less to be cash equivalents. | ||
Securities | ||
Held-to-maturity securities, which include any security for which we have the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. | ||
Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on securities are determined on the specific-identification method. | ||
Loans Held for Sale | ||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. | ||
Loans | ||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, loans are placed on nonaccrual status at ninety days past due and interest is considered a loss, unless the loan is well-secured. Accrued interest for loans placed on nonaccrual status is reversed against interest income. | ||
Allowance for Loan Losses | ||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | ||
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||
The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected loss given default derived from our internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. | ||
A loan is considered impaired when, based on current information and events, it is probable that we 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. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. | ||
Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, we do not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. | ||
Premises and Equipment | ||
Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line and accelerated methods over the estimated useful lives of the assets ranging from 3 to 39 years. | ||
Federal Home Loan Bank Stock | ||
Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost, and evaluated for impairment. | ||
Real Estate Owned | ||
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. | ||
Earnings Per Common Share | ||
Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. | ||
Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Accordingly, the Company is required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by the Company are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. | ||
Unearned ESOP shares, which are not vested and unvested restricted stock awards are excluded from the computation of average shares outstanding. | ||
Income Taxes | ||
We account for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. We determine deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | ||
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | ||
We recognize interest and penalties on income taxes as a component of income tax expense. | ||
We file consolidated income tax returns with our subsidiaries. | ||
Recently Issued Accounting Standards | ||
The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
The FASB issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects,” to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. The company is still evaluating the impact the ASU might have on the Company’s consolidated financial statements. | ||
In August 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going | ||
concern and about related footnote disclosures. | ||
For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. | ||
The amendments in this Update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | ||
In August 2014, FASB, issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The objective of this Update is to reduce diversity in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. | ||
The amendments in this Update are effective for annual reporting periods ending after December 15, 2015 and interim periods beginning after December 15, 2015. An entity should adopt the amendments in this Update using either a prospective transition method or a modified retrospective transition method. For prospective transition, an entity should apply the amendments in this Update to foreclosures that occur after the date of adoption. For the modified retrospective transition, an entity should apply the amendments in the Update by means of a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. However, a reporting entity must apply the same method of transition as elected under ASU No. 2014-04. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted Update 2014-04. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | ||
In June 2014, (FASB) issued (ASU) 2014-12 “Compensation - Stock Compensation”. This update defines the accounting treatment for share-based payments and “resolves the diverse accounting treatment of those awards in practice.” The new requirement mandates that “a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.” Compensation cost will now be recognized in the period in which it becomes likely that the performance target will be met. | ||
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | ||
In June 2014, FASB, issued ASU 2014-11 “Transfers and Servicing”. This update addresses the concerns of stakeholders’ by changing the accounting practices surrounding repurchase agreements. The new guidance changes the “accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements.” | ||
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is prohibited. | ||
The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | ||
In May 2014, FASB, in joint cooperation with IASB, issued ASU 2014-09 “Revenue from Contracts with Customers”. The topic of Revenue Recognition had become broad, with several other regulatory agencies issuing standards which lacked cohesion. The new guidance establishes a “common framework” and “reduces the number of requirements to which an entity must consider in recognizing revenue” and yet provides improved disclosures to assist stakeholders reviewing financial statements. | ||
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | ||
In April 2014, FASB issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ” . This update seeks to better define the groups of assets which qualify for discontinued operations, in order to ease the burden and cost for prepares and stakeholders. This issue changed “the criteria for reporting discontinued operations” and related reporting requirements, including the provision for disclosures about the “disposal of and individually significant component of an entity that does not qualify for discontinued operations presentation.” | ||
The amendments in this Update are effective for fiscal years beginning after December 15, 2014. Early adoption is permitted only for disposals or classifications as held for sale. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | ||
In January 2014, FASB issued ASU 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
In January 2014, the FASB issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects,” to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments | ||
The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. | ||
Recently the FASB and the Internal Accounting Standards Board (IASB) (the Boards) have published for public comment revised Exposure Drafts outlining proposed changes to the accounting for leases. | ||
The proposals aim to improve the quality and comparability of financial reporting by providing greater transparency about leverage, the assets an organization uses in its operations and the risks to which it is exposed from entering into leasing transactions. Under existing accounting standards, a majority of leases are not reported on a lessee’s balance sheet. The amounts involved can be substantial. Additionally, the existing accounting models for leases require lessees and lessors to classify their leases as either capital leases (e.g., a lease of equipment for nearly all of its economic life) or operating leases (e.g., a lease of office space for 10 years) and to account for those leases differently. | ||
For capital leases, a lessee recognizes lease assets and liabilities on the balance sheet. For operating leases, a lessee does not recognize lease assets or liabilities on the balance sheet. The existing standards have been criticized for failing to meet the needs of users of financial statements because they do not always provide a complete representation of leasing transactions. In response to this criticism, in 2006 the Boards initiated a joint project to improve the financial reporting of leasing activities under International Financial Reporting Standards (IFRSs) and U.S. GAAP. The Boards have developed an approach to lease accounting that would require a lessee to recognize assets and liabilities for the rights and obligations created by leases. A lessee would recognize assets and liabilities for leases of more than 12 months. | ||
Stakeholders have informed the Boards that there are a wide variety of lease transactions with different economics. To better reflect those differing economics, the revised Exposure Drafts propose a dual approach to the recognition, measurement, and presentation of expenses and cash flows arising from a lease. For most real estate leases, a lessee would report a straight-line lease expense in its income statement. For most other leases, such as equipment or vehicles, a lessee would report amortization of the asset separately from interest on the lease liability. The Boards are also proposing disclosures that should enable investors and other users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. | ||
The leases project is a converged effort between the Boards. The revised Exposure Drafts for both organizations are nearly identical. The differences between the two proposals are primarily related to existing differences between U.S. GAAP and IFRS and decisions the FASB made related to nonpublic entities. | ||
The Boards are also proposing changes to how equipment and vehicle lessors would account for leases that are off balance sheet. Those changes would provide greater transparency about such lessors’ exposure to credit risk and asset risk. | ||
Comments were due by September 13, 2013. | ||
Restriction_on_Cash_and_Due_Fr
Restriction on Cash and Due From Banks | 12 Months Ended | |
Dec. 31, 2014 | ||
Restriction on Cash and Due From Banks | Note 2: | Restriction on Cash and Due From Banks |
We are required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2014 was $556. | ||
At December 31, 2014, the Company’s cash accounts exceeded federally insured limits by approximately $2,494. Additionally, the Company had approximately $1,622 and $23,146 on deposit with the Federal Home Loan Bank of Indianapolis and Federal Reserve Bank of Chicago, as of December 31, 2014, which are not federally insured. | ||
Securities
Securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Securities | Note 3: | Securities | |||||||||||||||
The amortized cost and approximate fair values of securities are as follows: | |||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Held to Maturity Securities: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Municipals | $ | – | $ | – | $ | – | $ | – | |||||||||
December 31, 2013 | |||||||||||||||||
Municipals | $ | 123 | $ | – | $ | – | $ | 123 | |||||||||
There were no sales of securities during 2014 or 2013. |
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Note 4: | Loans and Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||||||
Categories of loans include: | |||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||||||||||
One-to four-family | $ | 44,316 | $ | 49,726 | |||||||||||||||||||||||||||||||||||||
Home equity | 6,645 | 7,912 | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 153,705 | 126,154 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 61,204 | 62,790 | |||||||||||||||||||||||||||||||||||||||
Land | 10,060 | 9,734 | |||||||||||||||||||||||||||||||||||||||
Construction | 21,673 | 8,669 | |||||||||||||||||||||||||||||||||||||||
Commercial non-mortgage | 14,717 | 7,226 | |||||||||||||||||||||||||||||||||||||||
Consumer | 1,142 | 1,167 | |||||||||||||||||||||||||||||||||||||||
Total loans | 313,462 | 273,378 | |||||||||||||||||||||||||||||||||||||||
Less | |||||||||||||||||||||||||||||||||||||||||
Net deferred loan fees, premiums and discounts | 555 | 467 | |||||||||||||||||||||||||||||||||||||||
Undisbursed portion of loans | 8,454 | 5,933 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | 7,976 | 7,597 | |||||||||||||||||||||||||||||||||||||||
Net loans | $ | 296,477 | $ | 259,381 | |||||||||||||||||||||||||||||||||||||
The risk characteristics of each loan portfolio segment are as follows: | |||||||||||||||||||||||||||||||||||||||||
1-4 Family, Home Equity, and Consumer | |||||||||||||||||||||||||||||||||||||||||
With respect to residential loans that are secured by 1-4 family residences and are primarily owner occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are typically secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. | |||||||||||||||||||||||||||||||||||||||||
Home equity loans secured by second mortgages have greater risk than one- to four-family residential mortgage loans secured by first mortgages. We face the risk that the collateral will be insufficient to compensate us for loan losses and costs of foreclosure. When customers default on their loans, we attempt to foreclose on the property and resell the property as soon as possible to minimize foreclosure and carrying costs. However, the value of the collateral may not be sufficient to compensate us for the amount of the unpaid loan and we may be unsuccessful in recovering the remaining balance from those customers. Particularly with respect to our home equity loans, decreases in real estate values could adversely affect the value of property used as collateral for our loans. | |||||||||||||||||||||||||||||||||||||||||
Consumer and other loans generally have greater risk compared to longer-term loans secured by improved, owner-occupied real estate, particularly consumer loans that are secured by rapidly depreciable assets, such as automobiles. In these cases, any repossessed collateral for a defaulted loan may not provide an adequate source of repayment of the outstanding loan balance. As a result, consumer loan collections are dependent on the borrower’s continuing financial stability and thus are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy. | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate and multi-family | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate and multi-family loans generally have greater credit risk than the owner-occupied one- to four-family residential mortgage loans that we originate for retention in our loan portfolio. Repayment of these loans generally depends, in large part, on sufficient income from the property securing the loan or the borrower’s business to cover operating expenses and debt service. These types of loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our commercial real estate and multi-family have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination. | |||||||||||||||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||||||||||||||
Land loans generally have greater credit risk than the owner-occupied one-to four-family residential mortgage loans that we originate for retention in our portfolio. Repayment of these loans generally depends, in large part, on the sale of the land. The sale of land can either take place when the land is undeveloped, or developed. Generally, other cash flow sources of the borrower are utilized to make additional payments on land loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our land loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination. | |||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||
Construction loans include those for one- to four-family residential properties and commercial properties, including multifamily loans and commercial “mixed-use” buildings and homes built by developers on speculation. Construction loans for one- to four-family residential properties are originated with a maximum loan to value ratio of 70% and are generally “interest-only” loans during the construction period which typically does not exceed nine months. Construction loans for commercial real estate are made in accordance with a schedule reflecting the cost of construction, and are generally limited to a 70% loan-to-completed appraised value ratio. For all construction loans, we generally require that a commitment for permanent financing be in place prior to closing the construction loan. | |||||||||||||||||||||||||||||||||||||||||
Repayment of one-to four-family residential property loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment of commercial property loans and homes built by developers on speculation is normally expected from the property’s eventual rental income, income from the borrower’s operations, the personal resources of the guarantor, or the sale of the subject property. Generally, before making a commitment to fund a construction loan, we require an appraisal of the property by a state-certified or state-licensed appraiser. We review and inspect properties before disbursement of funds during the term of the construction loan. | |||||||||||||||||||||||||||||||||||||||||
Construction financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost is inaccurate, we may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project is inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment of the construction loan upon the sale of the property. Construction loans also expose us to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. | |||||||||||||||||||||||||||||||||||||||||
Commercial non-mortgage | |||||||||||||||||||||||||||||||||||||||||
Commercial non-mortgage loans generally have a greater credit risk than residential mortgage loans. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial non-mortgage loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial non-mortgage loans may be substantially dependent on the success of the business itself. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. | |||||||||||||||||||||||||||||||||||||||||
In determining the appropriate level of allowance for loan loss, we analyze various components of our portfolio. The following components are analyzed: all substandard loans on an individual basis; all loans that are designated special mention or closely monitored; loans not classified according to purpose or collateral type; and overdrawn deposit account balances. We also factor in historical loss experience and qualitative considerations, including trends in charge offs and recoveries; trends in delinquencies and impaired/classified loans; effects of credit concentrations; changes in underwriting standards and loan review system; experience in lending staff; current industry conditions; current market conditions; and change in regional employment conditions. | |||||||||||||||||||||||||||||||||||||||||
In instances where risk and loss exposure is clearly identified with a particular asset, a specific valuation allowance will be established or the asset or a portion of the asset will be charged off. | |||||||||||||||||||||||||||||||||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
Loan Class | 4-Jan | Home | Commercial | Multifamily | Land | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Family | Equity | Real Estate | Non- | ||||||||||||||||||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||||||||||||||||||
Year to date analysis as of December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,354 | $ | 251 | $ | 2,861 | $ | 1,514 | $ | 1,145 | $ | 285 | $ | 157 | $ | 30 | $ | 7,597 | |||||||||||||||||||||||
Provision charged to expense | (475 | ) | (151 | ) | 702 | (123 | ) | (33 | ) | 1,004 | 112 | (16 | ) | 1,020 | |||||||||||||||||||||||||||
Losses charged off | (55 | ) | — | — | — | — | (750 | ) | — | (1 | ) | (806 | ) | ||||||||||||||||||||||||||||
Recoveries | 57 | — | 10 | — | 93 | — | — | 5 | 165 | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 881 | $ | 100 | $ | 3,573 | $ | 1,391 | $ | 1,205 | $ | 539 | $ | 269 | $ | 18 | $ | 7,976 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | — | $ | — | $ | 200 | $ | 100 | $ | 850 | $ | — | $ | — | $ | — | $ | 1,150 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 881 | $ | 100 | $ | 3,373 | $ | 1,291 | $ | 355 | $ | 539 | $ | 269 | $ | 18 | $ | 6,826 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 44,316 | $ | 6,645 | $ | 153,705 | $ | 61,204 | $ | 10,060 | $ | 21,673 | $ | 14,717 | $ | 1,142 | $ | 313,462 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | 1,645 | $ | 63 | $ | 8,956 | $ | 8,192 | $ | 3,224 | $ | 5,349 | $ | 351 | $ | — | $ | 27,780 | |||||||||||||||||||||||
Ending Balance: collectively evaluated for impairment | $ | 42,671 | $ | 6,582 | $ | 144,749 | $ | 53,012 | $ | 6,836 | $ | 16,324 | $ | 14,366 | $ | 1,142 | $ | 285,682 | |||||||||||||||||||||||
Loan Class | 4-Jan | Home | Commercial | Multifamily | Land | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Family | Equity | Real Estate | Non- | ||||||||||||||||||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||||||||||||||||||
Year to date analysis as of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,433 | $ | 266 | $ | 2,663 | $ | 1,497 | $ | 312 | $ | 302 | $ | 166 | $ | 32 | $ | 6,671 | |||||||||||||||||||||||
Provision charged to expense | 116 | (16 | ) | 98 | 17 | 651 | (17 | ) | (14 | ) | (5 | ) | 830 | ||||||||||||||||||||||||||||
Losses charged off | (210 | ) | — | — | — | — | — | — | (2 | ) | (212 | ) | |||||||||||||||||||||||||||||
Recoveries | 15 | 1 | 100 | — | 182 | — | 5 | 5 | 308 | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 1,354 | $ | 251 | $ | 2,861 | $ | 1,514 | $ | 1,145 | $ | 285 | $ | 157 | $ | 30 | $ | 7,597 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | — | $ | — | $ | 345 | $ | 100 | $ | 850 | $ | — | $ | — | $ | — | $ | 1,295 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,354 | $ | 251 | $ | 2,516 | $ | 1,414 | $ | 295 | $ | 285 | $ | 157 | $ | 30 | $ | 6,302 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 49,726 | $ | 7,912 | $ | 126,154 | $ | 62,790 | $ | 9,734 | $ | 8,669 | $ | 7,226 | $ | 1,167 | $ | 273,378 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | 2,494 | $ | — | $ | 11,067 | $ | 8,462 | $ | 4,162 | $ | — | $ | 600 | $ | — | $ | 26, 785 | |||||||||||||||||||||||
Ending Balance: collectively evaluated for impairment | $ | 47,232 | $ | 7,912 | $ | 115,087 | $ | 54,328 | $ | 5,572 | $ | 8,669 | $ | 6,626 | $ | 1,167 | $ | 246,593 | |||||||||||||||||||||||
Consistent with regulatory guidance, charge offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. Our policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. | |||||||||||||||||||||||||||||||||||||||||
For all loan portfolio segments except one-to-four family residential loans and consumer loans, we promptly charge off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. | |||||||||||||||||||||||||||||||||||||||||
We charge off one-to-four family residential and consumer loans, or portions thereof, when we reasonably determine the amount of the loss. We adhere to timeframes established by applicable regulatory guidance which provides for the charge off of one-to-four family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which we can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the credit risk profile of our loan portfolio based on rating category and payment activity as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | Home Equity | Commercial Real Estate | Multifamily | ||||||||||||||||||||||||||||||||||||||
As of December 31 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Pass | $ | 40,253 | $ | 45,735 | $ | 6,645 | $ | 7,806 | $ | 131,833 | $ | 107,825 | $ | 47,308 | $ | 48,808 | |||||||||||||||||||||||||
Pass (Closely Monitored) | 2,446 | 1,827 | — | 106 | 10,446 | 4,081 | 9,244 | 9,170 | |||||||||||||||||||||||||||||||||
Special Mention | 413 | 818 | — | — | 2,383 | 4,992 | — | — | |||||||||||||||||||||||||||||||||
Substandard | 1,204 | 1,346 | — | — | 9,043 | 9,256 | 4,652 | 4,812 | |||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 44,316 | $ | 49,726 | $ | 6,645 | $ | 7,912 | $ | 153,705 | $ | 126,154 | $ | 61,204 | $ | 62,790 | ||||||||||||||||||||||||||
Land | Construction | Commercial Non- | Consumer | Total | |||||||||||||||||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||||||||||||||||||
As of December 31 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Pass | $ | 5,160 | $ | 3,742 | $ | 18,213 | $ | 8,669 | $ | 14,023 | $ | 6,540 | $ | 1,142 | $ | 1,167 | $ | 264,577 | $ | 230,292 | |||||||||||||||||||||
Pass (Closely Monitored) | 2,156 | 1,830 | — | — | 343 | 55 | — | — | 24,635 | 17,069 | |||||||||||||||||||||||||||||||
Special Mention | — | 43 | — | — | 19 | 36 | — | — | 2,815 | 5,889 | |||||||||||||||||||||||||||||||
Substandard | 2,744 | 4,119 | 3,460 | — | 332 | 595 | — | — | 21,435 | 20,128 | |||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
$ | 10,060 | $ | 9,734 | $ | 21,673 | $ | 8,669 | $ | 14,717 | $ | 7,226 | $ | 1,142 | $ | 1,167 | $ | 313,462 | $ | 273,378 | ||||||||||||||||||||||
We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis is performed during the loan approval process and is updated as circumstances warrant. | |||||||||||||||||||||||||||||||||||||||||
The Pass asset quality rating encompasses assets that have performed as expected. These assets generally do not have delinquency or servicing issues. Loans assigned this rating include loans to borrowers possessing solid credit quality with acceptable risk. Borrowers in these grades are differentiated from higher grades on the basis of size (capital and/or revenue), leverage, asset quality, stability of the industry or specific market area and quality/coverage of collateral. These borrowers generally have a history of consistent earnings and reasonable leverage. | |||||||||||||||||||||||||||||||||||||||||
The Closely Monitored asset quality rating encompasses assets that have been brought to the attention of management and may, if not corrected, warrant a more serious quality rating by management. These assets are usually in the first phase of a deficiency situation and may possess similar criteria as Special Mention assets. This grade includes “pass grade” loans to borrowers which require special monitoring because of deteriorating financial results, declining credit ratings, decreasing cash flow, increasing leverage, marginal collateral coverage or industry stress that has resulted or may result in a changing overall risk profile. | |||||||||||||||||||||||||||||||||||||||||
The Special Mention asset quality rating encompasses assets that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. This grade is intended to include loans to borrowers whose credit quality has clearly deteriorated and where risk of further decline is possible unless active measures are taken to correct the situation. Weaknesses are considered potential at this state and are not yet fully defined. | |||||||||||||||||||||||||||||||||||||||||
The Substandard asset quality rating encompasses assets that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; assets having a well-defined weakness(es) based upon objective evidence; assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected; or the possibility that liquidation will not be timely. Loans categorized in this grade possess a well defined credit weakness and the likelihood of repayment from the primary source is uncertain. Significant financial deterioration has occurred and very close attention is warranted to ensure the full repayment without loss. Collateral coverage may be marginal and the accrual of interest has been suspended. | |||||||||||||||||||||||||||||||||||||||||
The Doubtful asset quality rating encompasses assets that have all of the weaknesses of those classified as Substandard. In addition, these weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. | |||||||||||||||||||||||||||||||||||||||||
The Loss asset quality rating encompasses assets that are considered uncollectible and of such little value that their continuance as assets of the bank is not warranted. A loss classification does not mean that an asset has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be realized in the future. | |||||||||||||||||||||||||||||||||||||||||
The following table is a summary of our past due and non-accrual loans as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014: | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Total | Total | |||||||||||||||||||||||||||||||||
Past Due | Past Due | than | Past | Loans | Loans>90 Days | Nonaccrual | |||||||||||||||||||||||||||||||||||
90 Days | Due | Receivable | & Accruing | ||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 334 | $ | 152 | $ | 107 | $ | 593 | $ | 43,723 | $ | 44,316 | $ | — | $ | 107 | |||||||||||||||||||||||||
Home Equity | — | — | — | — | 6,645 | 6,645 | — | — | |||||||||||||||||||||||||||||||||
Commercial Real Estate | 818 | 634 | 649 | 2,101 | 151,604 | 153,705 | — | 1,339 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | 61,204 | 61,204 | — | — | |||||||||||||||||||||||||||||||||
Land | — | — | 2,700 | 2,700 | 7,360 | 10,060 | — | 2,700 | |||||||||||||||||||||||||||||||||
Construction | 3,960 | — | — | 3,960 | 17,713 | 21,673 | — | 3,960 | |||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | 19 | 19 | 14,698 | 14,717 | — | 19 | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | 1,142 | 1,142 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 5,112 | $ | 786 | $ | 3,475 | $ | 9,373 | $ | 304,089 | $ | 313,462 | $ | — | $ | 8,125 | |||||||||||||||||||||||||
As of December 31, 2013: | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Total | Total | |||||||||||||||||||||||||||||||||
Past Due | Past Due | than | Past | Loans | Loans>90 Days | Nonaccrual | |||||||||||||||||||||||||||||||||||
90 Days | Due | Receivable | & Accruing | ||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 217 | $ | — | $ | 254 | $ | 471 | $ | 49,255 | $ | 49,726 | $ | — | $ | 254 | |||||||||||||||||||||||||
Home Equity | — | — | — | — | 7,912 | 7,912 | — | — | |||||||||||||||||||||||||||||||||
Commercial Real Estate | 716 | 667 | 49 | 1,432 | 124,722 | 126,154 | — | 779 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | 1,363 | 1,363 | 61,427 | 62,790 | 1,363 | — | |||||||||||||||||||||||||||||||||
Land | — | — | 4,068 | 4,068 | 5,666 | 9,734 | 27 | 4,041 | |||||||||||||||||||||||||||||||||
Construction | — | — | — | — | 8,669 | 8,669 | — | — | |||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | 36 | 36 | 7,190 | 7,226 | — | 157 | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | 1,167 | 1,167 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 933 | $ | 667 | $ | 5,770 | $ | 7,370 | $ | 266,008 | $ | 273,378 | $ | 1,390 | $ | 5,231 | |||||||||||||||||||||||||
Nonaccrual Loan and Past Due Loans. The accrual of interest is discontinued on all loan classes at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date | |||||||||||||||||||||||||||||||||||||||||
All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. We generally require a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. | |||||||||||||||||||||||||||||||||||||||||
A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable we will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made. | |||||||||||||||||||||||||||||||||||||||||
The following table present impaired loans for the year ended December 31, 2014: | |||||||||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | YTD | YTD | |||||||||||||||||||||||||||||||||||||
Balance | Principal | Allowance | Average | Interest | |||||||||||||||||||||||||||||||||||||
Balance | Balance | Income | |||||||||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 1,467 | $ | 1,643 | $ | — | $ | 1,472 | $ | 77 | |||||||||||||||||||||||||||||||
Home Equity | 63 | 63 | — | 65 | 2 | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 6,029 | 8,309 | — | 6,680 | 323 | ||||||||||||||||||||||||||||||||||||
Multifamily | 6,847 | 7,661 | — | 6,941 | 392 | ||||||||||||||||||||||||||||||||||||
Land | 524 | 805 | — | 504 | 4 | ||||||||||||||||||||||||||||||||||||
Construction | 5,349 | 4,712 | — | 3,664 | 57 | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 19 | 19 | — | 137 | 5 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 178 | $ | 178 | $ | — | $ | 180 | $ | 8 | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 2,927 | 2,927 | 200 | 3,000 | 200 | ||||||||||||||||||||||||||||||||||||
Multifamily | 1,345 | 1,345 | 100 | 1,355 | 83 | ||||||||||||||||||||||||||||||||||||
Land | 2,700 | 4,060 | 850 | 3,044 | 1 | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | 2,674 | 107 | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 332 | 332 | — | 343 | 18 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Totals | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 1,645 | $ | 1,821 | $ | — | $ | 1,652 | $ | 85 | |||||||||||||||||||||||||||||||
Home Equity | 63 | 63 | — | 65 | 2 | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 8,956 | 11,236 | 200 | 9,680 | 523 | ||||||||||||||||||||||||||||||||||||
Multifamily | 8,192 | 9,006 | 100 | 8,296 | 475 | ||||||||||||||||||||||||||||||||||||
Land | 3,224 | 4,865 | 850 | 3,548 | 5 | ||||||||||||||||||||||||||||||||||||
Construction | 5,349 | 4,712 | — | 6,338 | 164 | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 351 | 351 | — | 480 | 23 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 27,780 | $ | 32,054 | $ | 1,150 | $ | 30,059 | $ | 1,277 | |||||||||||||||||||||||||||||||
The following table present impaired loans for the year ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | YTD | YTD | |||||||||||||||||||||||||||||||||||||
Balance | Principal | Allowance | Average | Interest | |||||||||||||||||||||||||||||||||||||
Balance | Balance | Income | |||||||||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 2,494 | $ | 2,712 | $ | — | $ | 2,668 | $ | 225 | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 7,128 | 9,152 | — | 7,630 | 315 | ||||||||||||||||||||||||||||||||||||
Multifamily | 7,099 | 7,914 | — | 7,325 | 409 | ||||||||||||||||||||||||||||||||||||
Land | 742 | 1,672 | — | 913 | 48 | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 600 | 600 | — | 726 | 30 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | 4 | — | ||||||||||||||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 3,939 | 3,939 | 345 | 2,843 | 218 | ||||||||||||||||||||||||||||||||||||
Multifamily | 1,363 | 1,363 | 100 | 1,100 | 33 | ||||||||||||||||||||||||||||||||||||
Land | 3,420 | 4,730 | 850 | 3,641 | — | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Totals | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 2,494 | $ | 2,712 | $ | — | $ | 2,668 | $ | 225 | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 11,067 | 13,091 | 345 | 10,473 | 533 | ||||||||||||||||||||||||||||||||||||
Multifamily | 8,462 | 9,277 | 100 | 8,425 | 442 | ||||||||||||||||||||||||||||||||||||
Land | 4,162 | 6,402 | 850 | 4,554 | 48 | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 600 | 600 | — | 726 | 30 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | 4 | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 26,785 | $ | 32,082 | $ | 1,295 | $ | 26,850 | $ | 1,278 | |||||||||||||||||||||||||||||||
We have entered into transactions with certain executive officers, directors and their affiliates (related parties). In management’s opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features. | |||||||||||||||||||||||||||||||||||||||||
Loans to related parties totaled $7,872 and $5,230 at December 2014 and 2013, respectively. The increase resulted from new debt of $5,061 and a decrease due to $2,419 in payoffs and repayments. | |||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructuring (TDR) | |||||||||||||||||||||||||||||||||||||||||
We may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that we would not otherwise consider resulting in a modified loan which is then identified as a troubled debt restructuring. We may modify loans through rate reductions, short-term extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. | |||||||||||||||||||||||||||||||||||||||||
We identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. | |||||||||||||||||||||||||||||||||||||||||
For one-to-four family residential and home equity lines of credit, a restructure often occurs with past due loans and may be offered as an alternative to foreclosure. There are other situations where borrowers, who are not past due, experience a sudden job loss, become over-extended with credit obligations, or other problems, have indicated that they will be unable to make the required monthly payment and request payment relief. | |||||||||||||||||||||||||||||||||||||||||
When considering a loan restructure, management will determine if: (i) the financial distress is short or long term; (ii) loan concessions are necessary; and (iii) the restructure is a viable solution. | |||||||||||||||||||||||||||||||||||||||||
When a loan is restructured, the new terms often require a reduced monthly debt service payment. No TDRs that were on non-accrual status at the time the concessions were granted have been returned to accrual status. For commercial loans, management completes an analysis of the operating entity’s ability to repay the debt. If the operating entity is capable of servicing the new debt service requirements and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance with the new loan terms. To date, there have been no commercial loans restructured and immediately placed on accrual status after the execution of the TDR. | |||||||||||||||||||||||||||||||||||||||||
For retail loans, an analysis of the individual’s ability to service the new required payments is performed. If the borrower is capable of servicing the newly restructured debt and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance to the new loan terms. The reason for the TDR is also considered, such as paying past due real estate taxes or payments caused by a temporary job loss, when determining whether a retail TDR loan could be returned to accrual status. Retail TDRs remain on nonaccrual status until sufficient payments have been made to bring the past due principal and interest current and/or after six months of performance to the new loan terms at which point the loan could be transferred to accrual status. | |||||||||||||||||||||||||||||||||||||||||
The following tables summarize the loans that have been restructured as TDRs during the twelve months ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Count | Balance | Balance | |||||||||||||||||||||||||||||||||||||||
prior to | after | ||||||||||||||||||||||||||||||||||||||||
TDR | TDR | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Construction | 1 | $ | 4,710 | $ | 4,710 | ||||||||||||||||||||||||||||||||||||
Land | 1 | 614 | 614 | ||||||||||||||||||||||||||||||||||||||
Total | 2 | $ | 5,324 | $ | 5,324 | ||||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Count | Balance | Balance | |||||||||||||||||||||||||||||||||||||||
prior to | after | ||||||||||||||||||||||||||||||||||||||||
TDR | TDR | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 655 | $ | 655 | ||||||||||||||||||||||||||||||||||||
One TDR listed above for the twelve months ended December 31, 2014 resulted in a $750,000 charge off in the fourth quarter of 2014. The TDRs described above for the twelve months ended December 31, 2014 did not have a material impact on the allowance for loan losses or a material charge-off. | |||||||||||||||||||||||||||||||||||||||||
A default on a TDR occurs when a TDR is 90 days or more past due, transferred to nonaccrual status, or transferred to other real estate owned. The Bank did not have any TDR loans default during the past 12 months. The Bank had no TDR loans that defaulted in 2014. | |||||||||||||||||||||||||||||||||||||||||
The following tables summarize the loans that have been restructured as TDRs based on the type of modification or concession granted to the borrower during the twelve months ending December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | Payment Extension | Rate Reduction | Combination | Totals | |||||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||||||
1-4 Family | — | $ | — | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial Real Estate | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Land | — | — | — | — | 1 | 614 | 614 | ||||||||||||||||||||||||||||||||||
Construction | 1 | 4,710 | — | — | — | — | 4,710 | ||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | 1 | $ | 4,710 | — | $ | — | 1 | $ | 614 | $ | 5,324 | ||||||||||||||||||||||||||||||
As of December 31, 2013 | Payment Extension | Rate Reduction | Combination | Totals | |||||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||||||
1-4 Family | — | $ | — | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial Real Estate | — | — | 1 | 655 | — | — | 655 | ||||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Land | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | — | $ | — | 1 | $ | 655 | — | $ | — | $ | 655 | ||||||||||||||||||||||||||||||
Management monitors the TDRs based on the type of modification or concession granted to the borrower. These types of modifications may include rate reductions, payment/term extensions, forgiveness of principal, forbearance, and other applicable actions. During the year ended December 31, 2014, management predominantly utilized rate reductions and lower monthly payments, either from a longer amortization period or interest only repayment schedule, because these concessions provide needed payment relief without risking the loss of principal. Management will also agree to a forbearance agreement when it is deemed appropriate to avoid foreclosure. | |||||||||||||||||||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premises and Equipment | Note 5: | Premises and Equipment | |||||||
Major classifications of premises and equipment, stated at cost, are as follows: | |||||||||
2014 | 2013 | ||||||||
Land | $ | 514 | $ | 514 | |||||
Buildings and improvements | 3,146 | 3,146 | |||||||
Furniture, fixtures and equipment | 3,172 | 3,104 | |||||||
6,832 | 6,764 | ||||||||
Less accumulated depreciation | (5,448 | ) | (5,195 | ) | |||||
Net premises and equipment | $ | 1,384 | $ | 1,569 | |||||
Deposits
Deposits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposits | Note 6: | Deposits | |||||||
Deposits at year-end are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Savings accounts | $ | 13,249 | $ | 11,630 | |||||
Checking accounts | 33,819 | 33,674 | |||||||
Money market accounts | 67,350 | 53,817 | |||||||
Certificates of deposit | 109,111 | 73,862 | |||||||
$ | 223,529 | $ | 172,983 | ||||||
At December 31, 2014, scheduled maturities of certificates of deposit are as follows: | |||||||||
2015 | $ | 49,356 | |||||||
2016 | 14,981 | ||||||||
2017 | 26,531 | ||||||||
2018 | 7,460 | ||||||||
2019 | 10,018 | ||||||||
Thereafter | 765 | ||||||||
$ | 109,111 | ||||||||
Time deposits of $100 or more were $85,833 and $48,076 at December 31, 2014 and 2013. | |||||||||
Federal_Home_Loan_Bank_Advance
Federal Home Loan Bank Advances | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Federal Home Loan Bank Advances | Note 7: | Federal Home Loan Bank Advances | |||
Federal Home Loan Bank advances totaled $50,000 at December 31, 2014 and $62,000 at December 31, 2013. At December 31, 2014, the advances are at fixed rates and bear interest at rates ranging from 1.92% to 5.25% and are secured by loans under a blanket collateral agreement as well as specific deposits at the Federal Home Loan Bank totaling $166,385 Advances are subject to restrictions or penalties in the event of prepayment. | |||||
Aggregate annual maturities of our Federal Home Loan Bank advances at December 31, 2014, are: | |||||
2015 | 13,000 | ||||
2016 | — | ||||
2017 | 10,000 | ||||
2018 | 5,000 | ||||
2019 | — | ||||
Thereafter | 22,000 | ||||
Total | $50,000 | ||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes | Note 8: | Income Taxes | |||||||
The provision for income taxes includes these components: | |||||||||
2014 | 2013 | ||||||||
Taxes currently payable | $ | 1,540 | $ | 1,098 | |||||
Deferred income taxes | (114 | ) | (294 | ) | |||||
Income tax expense | $ | 1,426 | $ | 804 | |||||
A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: | |||||||||
2014 | 2013 | ||||||||
Computed at the statutory rate (34%) | $ | 1,397 | $ | 803 | |||||
Increase (decrease) resulting from | |||||||||
Tax exempt interest | (49 | ) | (45 | ) | |||||
Other | 78 | 46 | |||||||
Actual tax expense | $ | 1,426 | $ | 804 | |||||
The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets | |||||||||
Allowance for loan losses | $ | 2,712 | $ | 2,583 | |||||
Depreciation | 125 | 110 | |||||||
Deferred loan fees | 191 | 165 | |||||||
Deferred compensation | 189 | 249 | |||||||
Real estate owned | 1 | 8 | |||||||
Tax credits | — | 43 | |||||||
Other | 166 | 122 | |||||||
3,384 | 3,280 | ||||||||
Deferred tax liabilities | |||||||||
FHLB stock dividends | 31 | 41 | |||||||
Net deferred tax asset | $ | 3,353 | $ | 3,239 | |||||
Retained earnings at December 31, 2014 include approximately $2,019 for which no deferred federal income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions for tax purposes only. Reduction of amounts so allocated for purposes other than tax bad debt losses or adjustments arising from carryback of net operating losses would create income for tax purposes only, which would be subject to the then-current corporate income tax rate. The deferred income tax liabilities on the preceding amounts that would have been recorded if they were expected to reverse into taxable income in the foreseeable future were approximately $686 at December 31, 2014. | |||||||||
ASC Topic 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not identify any uncertain tax positions that it believes should be recognized in the consolidated financial statements. The open tax years subject to examination by taxing authorities are the years subsequent to 2010. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Regulatory Matters | Note 9: | Regulatory Matters | |||||||||||||||||||||||
We are 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 our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Our 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 us to maintain minimum amounts and ratios (set forth in the table below). Management believes, as of December 31, 2014 and 2013, that we meet all capital adequacy requirements to which we are subject. | |||||||||||||||||||||||||
As of December 31, 2014, the most recent notification from the Office of Comptroller of the Currency categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, we must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed our category. | |||||||||||||||||||||||||
Our actual capital amounts and ratios are also presented in the table. | |||||||||||||||||||||||||
Actual | For Capital | To Be Well | |||||||||||||||||||||||
Adequacy | Capitalized | ||||||||||||||||||||||||
Purposes | Under Prompt | ||||||||||||||||||||||||
Corrective Action | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 62,224 | 22.7 | % | $ | 21,936 | 8 | % | $ | 27,420 | 10 | % | |||||||||||||
Tier I capital (to risk-weighted assets) | 58,763 | 21.4 | 10,968 | 4 | 16,452 | 6 | |||||||||||||||||||
Tier I capital (to adjusted total assets) | 58,763 | 17.6 | 13,396 | 4 | 16,745 | 5 | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 60,935 | 25.9 | % | $ | 18,827 | 8 | % | $ | 23,533 | 10 | % | |||||||||||||
Tier I capital (to risk-weighted assets) | 57,936 | 24.6 | 9,413 | 4 | 14,120 | 6 | |||||||||||||||||||
Tier I capital (to adjusted total assets) | 57,936 | 19.6 | 11,827 | 4 | 14,784 | 5 | |||||||||||||||||||
Dividend Restriction | |||||||||||||||||||||||||
The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2014, approximately $3,669 of retained earnings were available for dividend declaration without prior regulatory approval. | |||||||||||||||||||||||||
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Employee Benefits | Note 10: | Employee Benefits | |||||||
We have a retirement savings 401(k) plan covering substantially all employees. Employees may contribute up to 100% of their compensation with us matching 100% of the employee’s contribution on the first 3% of the employee’s compensation and 50% of the employee’s contributions that exceed 3% but does not exceed 5%. Additionally, we can make discretionary contributions to our 401 (k) plan. Employer contributions charged to expense for the years ended 2014 and 2013 were $73 and $81 respectively. | |||||||||
Employee Stock Ownership Plan (ESOP) | |||||||||
As part of the conversion, we established an ESOP covering substantially all of our employees. The ESOP acquired 200,600 shares of WBKC common stock at $10.00 per share in the conversion with funds provided by a loan from the Company. Accordingly, $2,006 of common stock acquired by the ESOP reduced stockholders’ equity. Shares are released to participants proportionately as the loan is repaid. Compensation expense is recorded equal to the fair market value of the stock when contributions, which are determined annually by our Board of Directors, are made to the ESOP. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares are used to repay the loan. | |||||||||
ESOP expense for the years ended December 31, 2014 and 2013 was $244 and $214, respectively. | |||||||||
The ESOP shares as of December 31 were as follows: | |||||||||
2014 | 2013 | ||||||||
Allocated shares | 41,755 | 33,583 | |||||||
Unearned shares | 156,458 | 166,655 | |||||||
Total ESOP shares | 198,213 | 200,238 | |||||||
Fair value of unearned shares at December 31 | $ | 3,747 | $ | 3,550 | |||||
We are obligated at the option of each beneficiary to repurchase shares of the ESOP upon the beneficiary’s termination or after retirement. At December 31, 2014 and 2013, the fair value of the 41,755 and 33,583 allocated shares held by the ESOP was $1,019 and $715. | |||||||||
Disclosures_About_Fair_Value_o
Disclosures About Fair Value of Assets and Liabilities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosures About Fair Value of Assets and Liabilities | Note 11: | Disclosures About Fair Value of Assets and Liabilities | |||||||||||||||
ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 | 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 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | ||||||||||||||||
Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets under the valuation hierarchy. We have no assets or liabilities measured at fair value on a recurring basis and no liabilities measured at fair value on a nonrecurring basis. | |||||||||||||||||
Impaired Loans (Collateral Dependent) | |||||||||||||||||
The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||
The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results. | |||||||||||||||||
The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted | Significant | Significant | ||||||||||||||
Value | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for Identical | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Collateral-dependent | $ | 3,822 | $ | — | $ | — | $ | 3,822 | |||||||||
Impaired loans | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Collateral-dependent | $ | 7,681 | $ | — | $ | — | $ | 7,681 | |||||||||
Impaired loans | |||||||||||||||||
Unobservable (Level 3) inputs | |||||||||||||||||
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill. | |||||||||||||||||
Fair Value at | Valuation | Unobservable | Range | ||||||||||||||
December 31, | Technique | Inputs | |||||||||||||||
2014 | |||||||||||||||||
December 31, 2014 | $ | 3,822 | Market comparable properties | Marketability discount | 6%-38%(7%) | ||||||||||||
Collateral-dependent impaired loans | |||||||||||||||||
December 31, 2013 | $ | 7,681 | Market comparable properties | Marketability discount | 9%-46%(34%) | ||||||||||||
Collateral-dependent impaired loans | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014. | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted | Significant | Significant | ||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for Identical | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 29,686 | $ | 29,686 | $ | — | $ | — | |||||||||
Loans held for sale | 570 | — | 570 | — | |||||||||||||
Loans, net of allowance for loan losses | 296,477 | — | — | 299,514 | |||||||||||||
Federal Home Loan Bank stock | 2,500 | — | 2,500 | — | |||||||||||||
Interest receivable | 777 | — | 777 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 223,659 | $ | 114,418 | $ | — | $ | 110,560 | |||||||||
Federal Home Loan Bank advances | 50,000 | — | 50,567 | — | |||||||||||||
Interest payable | 157 | — | 157 | — | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices in | Significant | Significant | ||||||||||||||
Amount | Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 26,181 | $ | 26,181 | $ | — | $ | — | |||||||||
Held to maturity securities | 123 | — | 123 | — | |||||||||||||
Loans held for sale | 1,325 | — | 1,330 | — | |||||||||||||
Loans, net of allowance for loan losses | 259,381 | — | — | 264,357 | |||||||||||||
Federal Home Loan Bank stock | 3,320 | — | 3,320 | — | |||||||||||||
Interest receivable | 699 | — | 699 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 172,983 | $ | 99,121 | $ | — | $ | 74,339 | |||||||||
Federal Home Loan Bank advances | 61,994 | — | 60,653 | — | |||||||||||||
Interest payable | 138 | — | 138 | — | |||||||||||||
The following methods and assumptions were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value. | |||||||||||||||||
Cash and Cash Equivalents, Federal Home Loan Bank Stock, Interest Receivable, and Interest Payable | |||||||||||||||||
The carrying amount approximates fair value. | |||||||||||||||||
Held to Maturity Securities | |||||||||||||||||
Fair values equal quoted market prices, if available. If quoted market prices are not available, fair value is estimated based on quoted market prices of similar securities. | |||||||||||||||||
Loans and Loans held for sale | |||||||||||||||||
The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. | |||||||||||||||||
Deposits | |||||||||||||||||
Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||
Federal Home Loan Bank Advances | |||||||||||||||||
Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. | |||||||||||||||||
Commitments to Originate Loans, Letters of Credit and Lines of Credit | |||||||||||||||||
Loan commitments and letters-of-credit generally have short-term, variable rate features and contain clauses which limit the Company’s exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value. | |||||||||||||||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingent Liabilities | Note 12: | Commitments and Contingent Liabilities | |||||||
Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. | |||||||||
At year-end, these financial instruments are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Commitments to extend credit | $ | 17,393 | $ | 8,432 | |||||
Unused portions of lines of credit | 5,790 | 2,683 | |||||||
Standby letters of credit | 1,107 | 275 | |||||||
Commitments to make loans generally expire within thirty to ninety days, while unused lines of credit expire at the maturity date of the individual loans. | |||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share | Note 13: | Earnings Per Share (In thousands except per share amounts) | |||||||
Years ended December 31 | 2014 | 2013 | |||||||
Net income | $ | 2,683 | $ | 1,559 | |||||
Dividends and undistributed earnings allocated participating securities | (52 | ) | (42 | ) | |||||
Income attributable to common shareholders | $ | 2,631 | $ | 1,517 | |||||
Weighted average shares outstanding | 2,276 | 2,427 | |||||||
Less: average unearned ESOP and unvested restricted stock | (220 | ) | (237 | ) | |||||
Average shares | 2,056 | 2,190 | |||||||
Effect of diluted based awards | 14 | 2 | |||||||
Average common and common-equivalent shares for diluted EPS | 2,070 | 2,192 | |||||||
Basic EPS | $ | 1.28 | $ | 0.69 | |||||
Diluted EPS | $ | 1.27 | $ | 0.69 |
Share_Based_Compensation
Share Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share Based Compensation | Note 14: | Share Based Compensation | |||||||||||||||
In May 2012, the Company’s stockholders approved the Wolverine Bancorp, Inc. 2012 Equity Incentive Plan (“Plan”) which provides for awards of stock options and restricted stock to key officers and outside directors. The cost of the Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock awards is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate, and option term. These assumptions are based on management’s judgments regarding future events, are subjective in nature, and contain uncertainties inherent in an estimate. The cost of the awards are being recognized on a straight-line basis over the five-year vesting period during which participants are required to provide services in exchange for the awards. | |||||||||||||||||
Until such time as awards of stock are granted and vest or options are exercised, shares of the Company’s common stock under the Plan are authorized but unissued shares. The maximum number of shares authorized under the Plan is 351,050. Total share-based compensation expense pursuant to the Plan for the years ended December 31, 2014 and 2013 was $307 and $333, respectively. | |||||||||||||||||
Stock Options | |||||||||||||||||
The table below presents the stock option activity for the period shown: | |||||||||||||||||
Options | Weighted | Remaining | Aggregate | ||||||||||||||
average | contractual life | Intrinsic | |||||||||||||||
exercise price | (years) | Value | |||||||||||||||
Options outstanding at January 1, 2014 | 129,080 | $ | 17.3 | 9 | $ | 516 | |||||||||||
Granted | 2,350 | 22.01 | 10 | — | |||||||||||||
Exercised | (5,004 | ) | 17.32 | — | — | ||||||||||||
Forfeited | (4,977 | ) | 17.38 | — | — | ||||||||||||
Expired | — | — | — | — | |||||||||||||
Options outstanding at December 31, 2014 | 121,449 | $ | 17.45 | 8 | $ | 789 | |||||||||||
Exercisable at December 31, 2014 | 46,436 | $ | 17.3 | 8 | $ | 309 | |||||||||||
The fair value of the Company’s stock options granted on May 30, 2014 was determined using the Black-Scholes option pricing formula. The following assumptions were used in the formula: | |||||||||||||||||
Expected volatility | 18.02 | % | |||||||||||||||
Risk-free interest rate | 2.14 | % | |||||||||||||||
Expected dividend yield | 1.9 | % | |||||||||||||||
Expected life (in years) | 7.5 | ||||||||||||||||
Exercise price for the stock options | $ | 22.01 | |||||||||||||||
Grant date fair value | $ | 2.44 | |||||||||||||||
Expected volatility – Based on the historical volatility of share price. | |||||||||||||||||
Risk-free interest rate – Based on the U.S. Treasury yield curve and expected life of the options at the time of grant. | |||||||||||||||||
Expected dividend yield – The Company currently does not pay a dividend; therefore, the expected dividend yield was estimated for the portion of the life of the options that the Company expects to pay a dividend. | |||||||||||||||||
Expected life – Based on an average of the five year vesting period and the ten year contractual term of the stock option plan. | |||||||||||||||||
Exercise price for the stock options – Based on the closing price of the Company’s stock on the date of grant. | |||||||||||||||||
As of December 31, 2014, the Bank had $163 of unrecognized compensation expense related to stock options. The cost is expected to be recognized over a weighted-average period of 2.70 years. The total fair value of options vested in the year ended December 31, 2014 was $1,141. Stock option expense for the years ended December 31, 2014 and 2013 was $60 and $65 respectivelly. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock awards may not be disposed of or transferred during the vesting period. Restricted stock awards carry with them the right to receive dividends. | |||||||||||||||||
The table below presents the restricted stock award activity for the period shown: | |||||||||||||||||
Service- | Weighted | ||||||||||||||||
Based | average | ||||||||||||||||
Restricted | grant date | ||||||||||||||||
stock | fair value | ||||||||||||||||
awards | |||||||||||||||||
Non-vested at January 1, 2014 | 59,723 | $ | 17.33 | ||||||||||||||
Granted | 1,175 | 22.01 | |||||||||||||||
Vested | (14,868 | ) | 17.32 | ||||||||||||||
Forfeited | (2,056 | ) | 17.48 | ||||||||||||||
Non-vested at December 31, 2014 | 43,974 | $ | 17.44 | ||||||||||||||
As of December 31, 2014, the Company had $675 of unrecognized compensation expense related to restricted stock awards. The cost of the restricted stock awards will be amortized in monthly installments over the five-year vesting period. Restricted stock expense for the years ended December 31, 2014 and 2013 were $247 and $268 respectively. | |||||||||||||||||
Condensed_Financial_Informatio
Condensed Financial Information (Parent Company Only) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information (Parent Company Only) | Note 15: | Condensed Financial Information (Parent Company Only) | |||||||
Presented below is condensed financial information as to financial position, results of operations and cash flows of the Company: | |||||||||
Condensed Balance Sheets | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 990 | $ | 370 | |||||
Investment in subsidiary | 60,490 | 60,045 | |||||||
Other assets | 125 | 7 | |||||||
Total assets | $ | 61,605 | $ | 60,422 | |||||
Liabilities – Other | $ | 67 | $ | 97 | |||||
Stockholders’ Equity | 61,538 | 60,325 | |||||||
Total liabilities and stockholders’ equity | $ | 61,605 | $ | 60,422 | |||||
Condensed Statements of Income and Comprehensive Income | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Income - Dividends from subsidiary | $ | 3,000 | $ | — | |||||
Expense | 325 | 297 | |||||||
Income (Loss) Before Income Tax and Equity in Undistributed Income (Distribution in Excess of Income) | 2,675 | (297 | ) | ||||||
Income Tax Benefit | 114 | — | |||||||
Income (Loss) Before Equity in Undistributed Income (Distribution in Excess of Income) | 2,789 | (297 | ) | ||||||
Equity in Undistributed Income (Distribution in Excess of Income) | (106 | ) | 1,856 | ||||||
Net Income and Comprehensive Income | $ | 2,683 | $ | 1,559 | |||||
Condensed Statements of Cash Flows | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Operating Activities | |||||||||
Net income | $ | 2,683 | $ | 1,559 | |||||
Items not requiring (providing) cash: | |||||||||
Equity in (undistributed income) distributions in excess of income of subsidiary | 106 | (1,856 | ) | ||||||
Change in other assets | (72 | ) | 190 | ||||||
Change in other liabilities | (30 | ) | 56 | ||||||
Net cash used in operating activities | 2,687 | (51 | ) | ||||||
Financing Activities | |||||||||
Purchase of treasury stock | (807 | ) | (3,345 | ) | |||||
Dividends paid | (1,260 | ) | (883 | ) | |||||
Net cash used in financing activities | (2,067 | ) | (4,228 | ) | |||||
Net Change in Cash and Cash Equivalents | 620 | (4,279 | ) | ||||||
Cash and Cash Equivalents at Beginning of Year | 370 | 4,649 | |||||||
Cash and Cash Equivalents at End of Year | $ | 990 | $ | 370 | |||||
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Nature of Operations | Nature of Operations |
Wolverine Bank (the “Bank”), a wholly owned subsidiary of Wolverine Bancorp, Inc. (the “Company”), is a federally chartered savings bank primarily engaged in providing a full range of banking and financial services to individual and business customers in the Great Lakes Bay Region and beyond. The Company is subject to competition from other financial institutions. The Company is subject to the regulation of the Federal Reserve Board and the Bank is subject to the regulation of the Officer of the Comptroller of the Currency, and both undergo periodic examinations. | |
The Bank’s additional wholly owned subsidiaries, Wolserv Corporation and Wolverine Commercial Holdings LLC, are included in the consolidated financial statements. | |
Principles of Consolidation | Principles of Consolidation |
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and financial instruments. | |
Cash Equivalents | Cash Equivalents |
We consider all liquid investments with original maturities of three months or less to be cash equivalents. | |
Securities | Securities |
Held-to-maturity securities, which include any security for which we have the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. | |
Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on securities are determined on the specific-identification method. | |
Loans Held for Sale | Loans Held for Sale |
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. | |
Loans | Loans |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, loans are placed on nonaccrual status at ninety days past due and interest is considered a loss, unless the loan is well-secured. Accrued interest for loans placed on nonaccrual status is reversed against interest income. | |
Allowance for Loan Losses | Allowance for Loan Losses |
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |
The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected loss given default derived from our internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. | |
A loan is considered impaired when, based on current information and events, it is probable that we 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. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. | |
Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, we do not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. | |
Premises and Equipment | Premises and Equipment |
Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line and accelerated methods over the estimated useful lives of the assets ranging from 3 to 39 years. | |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock |
Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost, and evaluated for impairment. | |
Real Estate Owned | Real Estate Owned |
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. | |
Earnings Per Common Share | Earnings Per Common Share |
Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. | |
Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Accordingly, the Company is required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by the Company are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. | |
Unearned ESOP shares, which are not vested and unvested restricted stock awards are excluded from the computation of average shares outstanding. | |
Income Taxes | Income Taxes |
We account for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. We determine deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |
We recognize interest and penalties on income taxes as a component of income tax expense. | |
We file consolidated income tax returns with our subsidiaries. | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |
The FASB issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects,” to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. The company is still evaluating the impact the ASU might have on the Company’s consolidated financial statements. | |
In August 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going | |
concern and about related footnote disclosures. | |
For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. | |
The amendments in this Update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In August 2014, FASB, issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The objective of this Update is to reduce diversity in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. | |
The amendments in this Update are effective for annual reporting periods ending after December 15, 2015 and interim periods beginning after December 15, 2015. An entity should adopt the amendments in this Update using either a prospective transition method or a modified retrospective transition method. For prospective transition, an entity should apply the amendments in this Update to foreclosures that occur after the date of adoption. For the modified retrospective transition, an entity should apply the amendments in the Update by means of a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. However, a reporting entity must apply the same method of transition as elected under ASU No. 2014-04. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted Update 2014-04. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In June 2014, (FASB) issued (ASU) 2014-12 “Compensation - Stock Compensation”. This update defines the accounting treatment for share-based payments and “resolves the diverse accounting treatment of those awards in practice.” The new requirement mandates that “a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.” Compensation cost will now be recognized in the period in which it becomes likely that the performance target will be met. | |
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In June 2014, FASB, issued ASU 2014-11 “Transfers and Servicing”. This update addresses the concerns of stakeholders’ by changing the accounting practices surrounding repurchase agreements. The new guidance changes the “accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements.” | |
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is prohibited. | |
The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In May 2014, FASB, in joint cooperation with IASB, issued ASU 2014-09 “Revenue from Contracts with Customers”. The topic of Revenue Recognition had become broad, with several other regulatory agencies issuing standards which lacked cohesion. The new guidance establishes a “common framework” and “reduces the number of requirements to which an entity must consider in recognizing revenue” and yet provides improved disclosures to assist stakeholders reviewing financial statements. | |
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In April 2014, FASB issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ” . This update seeks to better define the groups of assets which qualify for discontinued operations, in order to ease the burden and cost for prepares and stakeholders. This issue changed “the criteria for reporting discontinued operations” and related reporting requirements, including the provision for disclosures about the “disposal of and individually significant component of an entity that does not qualify for discontinued operations presentation.” | |
The amendments in this Update are effective for fiscal years beginning after December 15, 2014. Early adoption is permitted only for disposals or classifications as held for sale. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In January 2014, FASB issued ASU 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects,” to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments | |
The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. | |
Recently the FASB and the Internal Accounting Standards Board (IASB) (the Boards) have published for public comment revised Exposure Drafts outlining proposed changes to the accounting for leases. | |
The proposals aim to improve the quality and comparability of financial reporting by providing greater transparency about leverage, the assets an organization uses in its operations and the risks to which it is exposed from entering into leasing transactions. Under existing accounting standards, a majority of leases are not reported on a lessee’s balance sheet. The amounts involved can be substantial. Additionally, the existing accounting models for leases require lessees and lessors to classify their leases as either capital leases (e.g., a lease of equipment for nearly all of its economic life) or operating leases (e.g., a lease of office space for 10 years) and to account for those leases differently. | |
For capital leases, a lessee recognizes lease assets and liabilities on the balance sheet. For operating leases, a lessee does not recognize lease assets or liabilities on the balance sheet. The existing standards have been criticized for failing to meet the needs of users of financial statements because they do not always provide a complete representation of leasing transactions. In response to this criticism, in 2006 the Boards initiated a joint project to improve the financial reporting of leasing activities under International Financial Reporting Standards (IFRSs) and U.S. GAAP. The Boards have developed an approach to lease accounting that would require a lessee to recognize assets and liabilities for the rights and obligations created by leases. A lessee would recognize assets and liabilities for leases of more than 12 months. | |
Stakeholders have informed the Boards that there are a wide variety of lease transactions with different economics. To better reflect those differing economics, the revised Exposure Drafts propose a dual approach to the recognition, measurement, and presentation of expenses and cash flows arising from a lease. For most real estate leases, a lessee would report a straight-line lease expense in its income statement. For most other leases, such as equipment or vehicles, a lessee would report amortization of the asset separately from interest on the lease liability. The Boards are also proposing disclosures that should enable investors and other users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. | |
The leases project is a converged effort between the Boards. The revised Exposure Drafts for both organizations are nearly identical. The differences between the two proposals are primarily related to existing differences between U.S. GAAP and IFRS and decisions the FASB made related to nonpublic entities. | |
The Boards are also proposing changes to how equipment and vehicle lessors would account for leases that are off balance sheet. Those changes would provide greater transparency about such lessors’ exposure to credit risk and asset risk. | |
Comments were due by September 13, 2013. | |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Amortized Cost and Approximate Fair Values of Held to Maturity Securities | The amortized cost and approximate fair values of securities are as follows: | ||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Held to Maturity Securities: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Municipals | $ | – | $ | – | $ | – | $ | – | |||||||||
December 31, 2013 | |||||||||||||||||
Municipals | $ | 123 | $ | – | $ | – | $ | 123 | |||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Summary of Loans by Categories of Loans Class | Categories of loans include: | ||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||||||||||
One-to four-family | $ | 44,316 | $ | 49,726 | |||||||||||||||||||||||||||||||||||||
Home equity | 6,645 | 7,912 | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 153,705 | 126,154 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 61,204 | 62,790 | |||||||||||||||||||||||||||||||||||||||
Land | 10,060 | 9,734 | |||||||||||||||||||||||||||||||||||||||
Construction | 21,673 | 8,669 | |||||||||||||||||||||||||||||||||||||||
Commercial non-mortgage | 14,717 | 7,226 | |||||||||||||||||||||||||||||||||||||||
Consumer | 1,142 | 1,167 | |||||||||||||||||||||||||||||||||||||||
Total loans | 313,462 | 273,378 | |||||||||||||||||||||||||||||||||||||||
Less | |||||||||||||||||||||||||||||||||||||||||
Net deferred loan fees, premiums and discounts | 555 | 467 | |||||||||||||||||||||||||||||||||||||||
Undisbursed portion of loans | 8,454 | 5,933 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | 7,976 | 7,597 | |||||||||||||||||||||||||||||||||||||||
Net loans | $ | 296,477 | $ | 259,381 | |||||||||||||||||||||||||||||||||||||
Financing Receivables and Allowance for Credit Losses on Financing Receivables | The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||||||
Loan Class | 4-Jan | Home | Commercial | Multifamily | Land | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Family | Equity | Real Estate | Non- | ||||||||||||||||||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||||||||||||||||||
Year to date analysis as of December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,354 | $ | 251 | $ | 2,861 | $ | 1,514 | $ | 1,145 | $ | 285 | $ | 157 | $ | 30 | $ | 7,597 | |||||||||||||||||||||||
Provision charged to expense | (475 | ) | (151 | ) | 702 | (123 | ) | (33 | ) | 1,004 | 112 | (16 | ) | 1,020 | |||||||||||||||||||||||||||
Losses charged off | (55 | ) | — | — | — | — | (750 | ) | — | (1 | ) | (806 | ) | ||||||||||||||||||||||||||||
Recoveries | 57 | — | 10 | — | 93 | — | — | 5 | 165 | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 881 | $ | 100 | $ | 3,573 | $ | 1,391 | $ | 1,205 | $ | 539 | $ | 269 | $ | 18 | $ | 7,976 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | — | $ | — | $ | 200 | $ | 100 | $ | 850 | $ | — | $ | — | $ | — | $ | 1,150 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 881 | $ | 100 | $ | 3,373 | $ | 1,291 | $ | 355 | $ | 539 | $ | 269 | $ | 18 | $ | 6,826 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 44,316 | $ | 6,645 | $ | 153,705 | $ | 61,204 | $ | 10,060 | $ | 21,673 | $ | 14,717 | $ | 1,142 | $ | 313,462 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | 1,645 | $ | 63 | $ | 8,956 | $ | 8,192 | $ | 3,224 | $ | 5,349 | $ | 351 | $ | — | $ | 27,780 | |||||||||||||||||||||||
Ending Balance: collectively evaluated for impairment | $ | 42,671 | $ | 6,582 | $ | 144,749 | $ | 53,012 | $ | 6,836 | $ | 16,324 | $ | 14,366 | $ | 1,142 | $ | 285,682 | |||||||||||||||||||||||
Loan Class | 4-Jan | Home | Commercial | Multifamily | Land | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Family | Equity | Real Estate | Non- | ||||||||||||||||||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||||||||||||||||||
Year to date analysis as of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,433 | $ | 266 | $ | 2,663 | $ | 1,497 | $ | 312 | $ | 302 | $ | 166 | $ | 32 | $ | 6,671 | |||||||||||||||||||||||
Provision charged to expense | 116 | (16 | ) | 98 | 17 | 651 | (17 | ) | (14 | ) | (5 | ) | 830 | ||||||||||||||||||||||||||||
Losses charged off | (210 | ) | — | — | — | — | — | — | (2 | ) | (212 | ) | |||||||||||||||||||||||||||||
Recoveries | 15 | 1 | 100 | — | 182 | — | 5 | 5 | 308 | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 1,354 | $ | 251 | $ | 2,861 | $ | 1,514 | $ | 1,145 | $ | 285 | $ | 157 | $ | 30 | $ | 7,597 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | — | $ | — | $ | 345 | $ | 100 | $ | 850 | $ | — | $ | — | $ | — | $ | 1,295 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,354 | $ | 251 | $ | 2,516 | $ | 1,414 | $ | 295 | $ | 285 | $ | 157 | $ | 30 | $ | 6,302 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 49,726 | $ | 7,912 | $ | 126,154 | $ | 62,790 | $ | 9,734 | $ | 8,669 | $ | 7,226 | $ | 1,167 | $ | 273,378 | |||||||||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | 2,494 | $ | — | $ | 11,067 | $ | 8,462 | $ | 4,162 | $ | — | $ | 600 | $ | — | $ | 26, 785 | |||||||||||||||||||||||
Ending Balance: collectively evaluated for impairment | $ | 47,232 | $ | 7,912 | $ | 115,087 | $ | 54,328 | $ | 5,572 | $ | 8,669 | $ | 6,626 | $ | 1,167 | $ | 246,593 | |||||||||||||||||||||||
Credit Risk Profile of our Loan Portfolio Based on Rating Category and Payment Activity | The following table presents the credit risk profile of our loan portfolio based on rating category and payment activity as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||||||
1-4 Family | Home Equity | Commercial Real Estate | Multifamily | ||||||||||||||||||||||||||||||||||||||
As of December 31 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Pass | $ | 40,253 | $ | 45,735 | $ | 6,645 | $ | 7,806 | $ | 131,833 | $ | 107,825 | $ | 47,308 | $ | 48,808 | |||||||||||||||||||||||||
Pass (Closely Monitored) | 2,446 | 1,827 | — | 106 | 10,446 | 4,081 | 9,244 | 9,170 | |||||||||||||||||||||||||||||||||
Special Mention | 413 | 818 | — | — | 2,383 | 4,992 | — | — | |||||||||||||||||||||||||||||||||
Substandard | 1,204 | 1,346 | — | — | 9,043 | 9,256 | 4,652 | 4,812 | |||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 44,316 | $ | 49,726 | $ | 6,645 | $ | 7,912 | $ | 153,705 | $ | 126,154 | $ | 61,204 | $ | 62,790 | ||||||||||||||||||||||||||
Land | Construction | Commercial Non- | Consumer | Total | |||||||||||||||||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||||||||||||||||||
As of December 31 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Pass | $ | 5,160 | $ | 3,742 | $ | 18,213 | $ | 8,669 | $ | 14,023 | $ | 6,540 | $ | 1,142 | $ | 1,167 | $ | 264,577 | $ | 230,292 | |||||||||||||||||||||
Pass (Closely Monitored) | 2,156 | 1,830 | — | — | 343 | 55 | — | — | 24,635 | 17,069 | |||||||||||||||||||||||||||||||
Special Mention | — | 43 | — | — | 19 | 36 | — | — | 2,815 | 5,889 | |||||||||||||||||||||||||||||||
Substandard | 2,744 | 4,119 | 3,460 | — | 332 | 595 | — | — | 21,435 | 20,128 | |||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
$ | 10,060 | $ | 9,734 | $ | 21,673 | $ | 8,669 | $ | 14,717 | $ | 7,226 | $ | 1,142 | $ | 1,167 | $ | 313,462 | $ | 273,378 | ||||||||||||||||||||||
Summary of Our Past due and Non-Accrual Loans | The following table is a summary of our past due and non-accrual loans as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014: | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Total | Total | |||||||||||||||||||||||||||||||||
Past Due | Past Due | than | Past | Loans | Loans>90 Days | Nonaccrual | |||||||||||||||||||||||||||||||||||
90 Days | Due | Receivable | & Accruing | ||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 334 | $ | 152 | $ | 107 | $ | 593 | $ | 43,723 | $ | 44,316 | $ | — | $ | 107 | |||||||||||||||||||||||||
Home Equity | — | — | — | — | 6,645 | 6,645 | — | — | |||||||||||||||||||||||||||||||||
Commercial Real Estate | 818 | 634 | 649 | 2,101 | 151,604 | 153,705 | — | 1,339 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | 61,204 | 61,204 | — | — | |||||||||||||||||||||||||||||||||
Land | — | — | 2,700 | 2,700 | 7,360 | 10,060 | — | 2,700 | |||||||||||||||||||||||||||||||||
Construction | 3,960 | — | — | 3,960 | 17,713 | 21,673 | — | 3,960 | |||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | 19 | 19 | 14,698 | 14,717 | — | 19 | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | 1,142 | 1,142 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 5,112 | $ | 786 | $ | 3,475 | $ | 9,373 | $ | 304,089 | $ | 313,462 | $ | — | $ | 8,125 | |||||||||||||||||||||||||
As of December 31, 2013: | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Total | Total | |||||||||||||||||||||||||||||||||
Past Due | Past Due | than | Past | Loans | Loans>90 Days | Nonaccrual | |||||||||||||||||||||||||||||||||||
90 Days | Due | Receivable | & Accruing | ||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 217 | $ | — | $ | 254 | $ | 471 | $ | 49,255 | $ | 49,726 | $ | — | $ | 254 | |||||||||||||||||||||||||
Home Equity | — | — | — | — | 7,912 | 7,912 | — | — | |||||||||||||||||||||||||||||||||
Commercial Real Estate | 716 | 667 | 49 | 1,432 | 124,722 | 126,154 | — | 779 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | 1,363 | 1,363 | 61,427 | 62,790 | 1,363 | — | |||||||||||||||||||||||||||||||||
Land | — | — | 4,068 | 4,068 | 5,666 | 9,734 | 27 | 4,041 | |||||||||||||||||||||||||||||||||
Construction | — | — | — | — | 8,669 | 8,669 | — | — | |||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | 36 | 36 | 7,190 | 7,226 | — | 157 | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | 1,167 | 1,167 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 933 | $ | 667 | $ | 5,770 | $ | 7,370 | $ | 266,008 | $ | 273,378 | $ | 1,390 | $ | 5,231 | |||||||||||||||||||||||||
Summary of Impaired Loans by Class | The following table present impaired loans for the year ended December 31, 2014: | ||||||||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | YTD | YTD | |||||||||||||||||||||||||||||||||||||
Balance | Principal | Allowance | Average | Interest | |||||||||||||||||||||||||||||||||||||
Balance | Balance | Income | |||||||||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 1,467 | $ | 1,643 | $ | — | $ | 1,472 | $ | 77 | |||||||||||||||||||||||||||||||
Home Equity | 63 | 63 | — | 65 | 2 | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 6,029 | 8,309 | — | 6,680 | 323 | ||||||||||||||||||||||||||||||||||||
Multifamily | 6,847 | 7,661 | — | 6,941 | 392 | ||||||||||||||||||||||||||||||||||||
Land | 524 | 805 | — | 504 | 4 | ||||||||||||||||||||||||||||||||||||
Construction | 5,349 | 4,712 | — | 3,664 | 57 | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 19 | 19 | — | 137 | 5 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 178 | $ | 178 | $ | — | $ | 180 | $ | 8 | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 2,927 | 2,927 | 200 | 3,000 | 200 | ||||||||||||||||||||||||||||||||||||
Multifamily | 1,345 | 1,345 | 100 | 1,355 | 83 | ||||||||||||||||||||||||||||||||||||
Land | 2,700 | 4,060 | 850 | 3,044 | 1 | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | 2,674 | 107 | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 332 | 332 | — | 343 | 18 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Totals | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 1,645 | $ | 1,821 | $ | — | $ | 1,652 | $ | 85 | |||||||||||||||||||||||||||||||
Home Equity | 63 | 63 | — | 65 | 2 | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 8,956 | 11,236 | 200 | 9,680 | 523 | ||||||||||||||||||||||||||||||||||||
Multifamily | 8,192 | 9,006 | 100 | 8,296 | 475 | ||||||||||||||||||||||||||||||||||||
Land | 3,224 | 4,865 | 850 | 3,548 | 5 | ||||||||||||||||||||||||||||||||||||
Construction | 5,349 | 4,712 | — | 6,338 | 164 | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 351 | 351 | — | 480 | 23 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 27,780 | $ | 32,054 | $ | 1,150 | $ | 30,059 | $ | 1,277 | |||||||||||||||||||||||||||||||
The following table present impaired loans for the year ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | YTD | YTD | |||||||||||||||||||||||||||||||||||||
Balance | Principal | Allowance | Average | Interest | |||||||||||||||||||||||||||||||||||||
Balance | Balance | Income | |||||||||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 2,494 | $ | 2,712 | $ | — | $ | 2,668 | $ | 225 | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 7,128 | 9,152 | — | 7,630 | 315 | ||||||||||||||||||||||||||||||||||||
Multifamily | 7,099 | 7,914 | — | 7,325 | 409 | ||||||||||||||||||||||||||||||||||||
Land | 742 | 1,672 | — | 913 | 48 | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 600 | 600 | — | 726 | 30 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | 4 | — | ||||||||||||||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 3,939 | 3,939 | 345 | 2,843 | 218 | ||||||||||||||||||||||||||||||||||||
Multifamily | 1,363 | 1,363 | 100 | 1,100 | 33 | ||||||||||||||||||||||||||||||||||||
Land | 3,420 | 4,730 | 850 | 3,641 | — | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Totals | |||||||||||||||||||||||||||||||||||||||||
1-4 Family | $ | 2,494 | $ | 2,712 | $ | — | $ | 2,668 | $ | 225 | |||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | 11,067 | 13,091 | 345 | 10,473 | 533 | ||||||||||||||||||||||||||||||||||||
Multifamily | 8,462 | 9,277 | 100 | 8,425 | 442 | ||||||||||||||||||||||||||||||||||||
Land | 4,162 | 6,402 | 850 | 4,554 | 48 | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | 600 | 600 | — | 726 | 30 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | 4 | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 26,785 | $ | 32,082 | $ | 1,295 | $ | 26,850 | $ | 1,278 | |||||||||||||||||||||||||||||||
Summary of Loans Restructured as TDRs | The following tables summarize the loans that have been restructured as TDRs during the twelve months ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Count | Balance | Balance | |||||||||||||||||||||||||||||||||||||||
prior to | after | ||||||||||||||||||||||||||||||||||||||||
TDR | TDR | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Construction | 1 | $ | 4,710 | $ | 4,710 | ||||||||||||||||||||||||||||||||||||
Land | 1 | 614 | 614 | ||||||||||||||||||||||||||||||||||||||
Total | 2 | $ | 5,324 | $ | 5,324 | ||||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Count | Balance | Balance | |||||||||||||||||||||||||||||||||||||||
prior to | after | ||||||||||||||||||||||||||||||||||||||||
TDR | TDR | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 655 | $ | 655 | ||||||||||||||||||||||||||||||||||||
Summary of Loans Restructured as TDRs Based on Type of Modification | The following tables summarize the loans that have been restructured as TDRs based on the type of modification or concession granted to the borrower during the twelve months ending December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | Payment Extension | Rate Reduction | Combination | Totals | |||||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||||||
1-4 Family | — | $ | — | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial Real Estate | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Land | — | — | — | — | 1 | 614 | 614 | ||||||||||||||||||||||||||||||||||
Construction | 1 | 4,710 | — | — | — | — | 4,710 | ||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | 1 | $ | 4,710 | — | $ | — | 1 | $ | 614 | $ | 5,324 | ||||||||||||||||||||||||||||||
As of December 31, 2013 | Payment Extension | Rate Reduction | Combination | Totals | |||||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||||||
1-4 Family | — | $ | — | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial Real Estate | — | — | 1 | 655 | — | — | 655 | ||||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Land | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial Non-Mortgage | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | — | $ | — | 1 | $ | 655 | — | $ | — | $ | 655 | ||||||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Major Classifications of Premises and Equipment | Major classifications of premises and equipment, stated at cost, are as follows: | ||||||||
2014 | 2013 | ||||||||
Land | $ | 514 | $ | 514 | |||||
Buildings and improvements | 3,146 | 3,146 | |||||||
Furniture, fixtures and equipment | 3,172 | 3,104 | |||||||
6,832 | 6,764 | ||||||||
Less accumulated depreciation | (5,448 | ) | (5,195 | ) | |||||
Net premises and equipment | $ | 1,384 | $ | 1,569 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposit at Year End | Deposits at year-end are summarized as follows: | ||||||||
2014 | 2013 | ||||||||
Savings accounts | $ | 13,249 | $ | 11,630 | |||||
Checking accounts | 33,819 | 33,674 | |||||||
Money market accounts | 67,350 | 53,817 | |||||||
Certificates of deposit | 109,111 | 73,862 | |||||||
$ | 223,529 | $ | 172,983 | ||||||
Maturities of Certificates of Deposit | At December 31, 2014, scheduled maturities of certificates of deposit are as follows: | ||||||||
2015 | $ | 49,356 | |||||||
2016 | 14,981 | ||||||||
2017 | 26,531 | ||||||||
2018 | 7,460 | ||||||||
2019 | 10,018 | ||||||||
Thereafter | 765 | ||||||||
$ | 109,111 | ||||||||
Federal_Home_Loan_Bank_Advance1
Federal Home Loan Bank Advances (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Aggregate Annual Maturities of Federal Home Loan Bank Advances | Aggregate annual maturities of our Federal Home Loan Bank advances at December 31, 2014, are: | ||||
2015 | 13,000 | ||||
2016 | — | ||||
2017 | 10,000 | ||||
2018 | 5,000 | ||||
2019 | — | ||||
Thereafter | 22,000 | ||||
Total | $50,000 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Components Included as Provision for Income Taxes | The provision for income taxes includes these components: | ||||||||
2014 | 2013 | ||||||||
Taxes currently payable | $ | 1,540 | $ | 1,098 | |||||
Deferred income taxes | (114 | ) | (294 | ) | |||||
Income tax expense | $ | 1,426 | $ | 804 | |||||
Reconciliation of Income Tax Expense at Statutory Rate to Company's Actual Income Tax Expense | A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: | ||||||||
2014 | 2013 | ||||||||
Computed at the statutory rate (34%) | $ | 1,397 | $ | 803 | |||||
Increase (decrease) resulting from | |||||||||
Tax exempt interest | (49 | ) | (45 | ) | |||||
Other | 78 | 46 | |||||||
Actual tax expense | $ | 1,426 | $ | 804 | |||||
Tax Effects of Temporary Differences Related to Deferred Taxes | The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were: | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets | |||||||||
Allowance for loan losses | $ | 2,712 | $ | 2,583 | |||||
Depreciation | 125 | 110 | |||||||
Deferred loan fees | 191 | 165 | |||||||
Deferred compensation | 189 | 249 | |||||||
Real estate owned | 1 | 8 | |||||||
Tax credits | — | 43 | |||||||
Other | 166 | 122 | |||||||
3,384 | 3,280 | ||||||||
Deferred tax liabilities | |||||||||
FHLB stock dividends | 31 | 41 | |||||||
Net deferred tax asset | $ | 3,353 | $ | 3,239 | |||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Actual Capital Amounts and Ratios of Regulatory Matters | Our actual capital amounts and ratios are also presented in the table. | ||||||||||||||||||||||||
Actual | For Capital | To Be Well | |||||||||||||||||||||||
Adequacy | Capitalized | ||||||||||||||||||||||||
Purposes | Under Prompt | ||||||||||||||||||||||||
Corrective Action | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 62,224 | 22.7 | % | $ | 21,936 | 8 | % | $ | 27,420 | 10 | % | |||||||||||||
Tier I capital (to risk-weighted assets) | 58,763 | 21.4 | 10,968 | 4 | 16,452 | 6 | |||||||||||||||||||
Tier I capital (to adjusted total assets) | 58,763 | 17.6 | 13,396 | 4 | 16,745 | 5 | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 60,935 | 25.9 | % | $ | 18,827 | 8 | % | $ | 23,533 | 10 | % | |||||||||||||
Tier I capital (to risk-weighted assets) | 57,936 | 24.6 | 9,413 | 4 | 14,120 | 6 | |||||||||||||||||||
Tier I capital (to adjusted total assets) | 57,936 | 19.6 | 11,827 | 4 | 14,784 | 5 |
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Employee Stock Ownership Plan Table | The ESOP shares as of December 31 were as follows: | ||||||||
2014 | 2013 | ||||||||
Allocated shares | 41,755 | 33,583 | |||||||
Unearned shares | 156,458 | 166,655 | |||||||
Total ESOP shares | 198,213 | 200,238 | |||||||
Fair value of unearned shares at December 31 | $ | 3,747 | $ | 3,550 | |||||
Disclosures_About_Fair_Value_o1
Disclosures About Fair Value of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Fair Value Measurements of Assets Nonrecurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013: | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted | Significant | Significant | ||||||||||||||
Value | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for Identical | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Collateral-dependent | $ | 3,822 | $ | — | $ | — | $ | 3,822 | |||||||||
Impaired loans | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Collateral-dependent | $ | 7,681 | $ | — | $ | — | $ | 7,681 | |||||||||
Impaired loans | |||||||||||||||||
Summary of quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements Other than Goodwill | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill. | ||||||||||||||||
Fair Value at | Valuation | Unobservable | Range | ||||||||||||||
December 31, | Technique | Inputs | |||||||||||||||
2014 | |||||||||||||||||
December 31, 2014 | $ | 3,822 | Market comparable properties | Marketability discount | 6%-38%(7%) | ||||||||||||
Collateral-dependent impaired loans | |||||||||||||||||
December 31, 2013 | $ | 7,681 | Market comparable properties | Marketability discount | 9%-46%(34%) | ||||||||||||
Collateral-dependent impaired loans | |||||||||||||||||
Summary of Estimated Fair Values of Company's Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014. | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted | Significant | Significant | ||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for Identical | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 29,686 | $ | 29,686 | $ | — | $ | — | |||||||||
Loans held for sale | 570 | — | 570 | — | |||||||||||||
Loans, net of allowance for loan losses | 296,477 | — | — | 299,514 | |||||||||||||
Federal Home Loan Bank stock | 2,500 | — | 2,500 | — | |||||||||||||
Interest receivable | 777 | — | 777 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 223,659 | $ | 114,418 | $ | — | $ | 110,560 | |||||||||
Federal Home Loan Bank advances | 50,000 | — | 50,567 | — | |||||||||||||
Interest payable | 157 | — | 157 | — | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices in | Significant | Significant | ||||||||||||||
Amount | Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 26,181 | $ | 26,181 | $ | — | $ | — | |||||||||
Held to maturity securities | 123 | — | 123 | — | |||||||||||||
Loans held for sale | 1,325 | — | 1,330 | — | |||||||||||||
Loans, net of allowance for loan losses | 259,381 | — | — | 264,357 | |||||||||||||
Federal Home Loan Bank stock | 3,320 | — | 3,320 | — | |||||||||||||
Interest receivable | 699 | — | 699 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 172,983 | $ | 99,121 | $ | — | $ | 74,339 | |||||||||
Federal Home Loan Bank advances | 61,994 | — | 60,653 | — | |||||||||||||
Interest payable | 138 | — | 138 | — |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Financial Instruments | At year-end, these financial instruments are summarized as follows: | ||||||||
2014 | 2013 | ||||||||
Commitments to extend credit | $ | 17,393 | $ | 8,432 | |||||
Unused portions of lines of credit | 5,790 | 2,683 | |||||||
Standby letters of credit | 1,107 | 275 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share | |||||||||
Years ended December 31 | 2014 | 2013 | |||||||
Net income | $ | 2,683 | $ | 1,559 | |||||
Dividends and undistributed earnings allocated participating securities | (52 | ) | (42 | ) | |||||
Income attributable to common shareholders | $ | 2,631 | $ | 1,517 | |||||
Weighted average shares outstanding | 2,276 | 2,427 | |||||||
Less: average unearned ESOP and unvested restricted stock | (220 | ) | (237 | ) | |||||
Average shares | 2,056 | 2,190 | |||||||
Effect of diluted based awards | 14 | 2 | |||||||
Average common and common-equivalent shares for diluted EPS | 2,070 | 2,192 | |||||||
Basic EPS | $ | 1.28 | $ | 0.69 | |||||
Diluted EPS | $ | 1.27 | $ | 0.69 |
Share_Based_Compensation_Table
Share Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Stock Option Activity | The table below presents the stock option activity for the period shown: | ||||||||||||||||
Options | Weighted | Remaining | Aggregate | ||||||||||||||
average | contractual life | Intrinsic | |||||||||||||||
exercise price | (years) | Value | |||||||||||||||
Options outstanding at January 1, 2014 | 129,080 | $ | 17.3 | 9 | $ | 516 | |||||||||||
Granted | 2,350 | 22.01 | 10 | — | |||||||||||||
Exercised | (5,004 | ) | 17.32 | — | — | ||||||||||||
Forfeited | (4,977 | ) | 17.38 | — | — | ||||||||||||
Expired | — | — | — | — | |||||||||||||
Options outstanding at December 31, 2014 | 121,449 | $ | 17.45 | 8 | $ | 789 | |||||||||||
Exercisable at December 31, 2014 | 46,436 | $ | 17.3 | 8 | $ | 309 | |||||||||||
Assumptions Used in Black-Scholes Option Pricing Formula | The following assumptions were used in the formula: | ||||||||||||||||
Expected volatility | 18.02 | % | |||||||||||||||
Risk-free interest rate | 2.14 | % | |||||||||||||||
Expected dividend yield | 1.9 | % | |||||||||||||||
Expected life (in years) | 7.5 | ||||||||||||||||
Exercise price for the stock options | $ | 22.01 | |||||||||||||||
Grant date fair value | $ | 2.44 | |||||||||||||||
Summary of Restricted Stock Award Activity | The table below presents the restricted stock award activity for the period shown: | ||||||||||||||||
Service- | Weighted | ||||||||||||||||
Based | average | ||||||||||||||||
Restricted | grant date | ||||||||||||||||
stock | fair value | ||||||||||||||||
awards | |||||||||||||||||
Non-vested at January 1, 2014 | 59,723 | $ | 17.33 | ||||||||||||||
Granted | 1,175 | 22.01 | |||||||||||||||
Vested | (14,868 | ) | 17.32 | ||||||||||||||
Forfeited | (2,056 | ) | 17.48 | ||||||||||||||
Non-vested at December 31, 2014 | 43,974 | $ | 17.44 | ||||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Balance Sheets | Condensed Balance Sheets | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 990 | $ | 370 | |||||
Investment in subsidiary | 60,490 | 60,045 | |||||||
Other assets | 125 | 7 | |||||||
Total assets | $ | 61,605 | $ | 60,422 | |||||
Liabilities – Other | $ | 67 | $ | 97 | |||||
Stockholders’ Equity | 61,538 | 60,325 | |||||||
Total liabilities and stockholders’ equity | $ | 61,605 | $ | 60,422 | |||||
Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Income - Dividends from subsidiary | $ | 3,000 | $ | — | |||||
Expense | 325 | 297 | |||||||
Income (Loss) Before Income Tax and Equity in Undistributed Income (Distribution in Excess of Income) | 2,675 | (297 | ) | ||||||
Income Tax Benefit | 114 | — | |||||||
Income (Loss) Before Equity in Undistributed Income (Distribution in Excess of Income) | 2,789 | (297 | ) | ||||||
Equity in Undistributed Income (Distribution in Excess of Income) | (106 | ) | 1,856 | ||||||
Net Income and Comprehensive Income | $ | 2,683 | $ | 1,559 | |||||
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Operating Activities | |||||||||
Net income | $ | 2,683 | $ | 1,559 | |||||
Items not requiring (providing) cash: | |||||||||
Equity in (undistributed income) distributions in excess of income of subsidiary | 106 | (1,856 | ) | ||||||
Change in other assets | (72 | ) | 190 | ||||||
Change in other liabilities | (30 | ) | 56 | ||||||
Net cash used in operating activities | 2,687 | (51 | ) | ||||||
Financing Activities | |||||||||
Purchase of treasury stock | (807 | ) | (3,345 | ) | |||||
Dividends paid | (1,260 | ) | (883 | ) | |||||
Net cash used in financing activities | (2,067 | ) | (4,228 | ) | |||||
Net Change in Cash and Cash Equivalents | 620 | (4,279 | ) | ||||||
Cash and Cash Equivalents at Beginning of Year | 370 | 4,649 | |||||||
Cash and Cash Equivalents at End of Year | $ | 990 | $ | 370 | |||||
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Liquid investments with original maturities, maximum | 3 months |
Loans nonaccrual status, number of past due days | 90 years |
Minimum | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 3 years |
Maximum | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 39 years |
Restriction_on_Cash_and_Due_Fr1
Restriction on Cash and Due From Banks - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Accounts and Other Receivables [Line Items] | |
Reserve Funds with Federal Reserve Bank | $556 |
Excess Balance to FDIC limit | 2,494 |
Federal Home Loan Bank of Indianapolis | |
Accounts and Other Receivables [Line Items] | |
Cash deposit | 1,622 |
Federal Reserve Bank Of Chicago | |
Accounts and Other Receivables [Line Items] | |
Cash deposit | $23,146 |
Summary_of_Amortized_Cost_and_
Summary of Amortized Cost and Approximate Fair Values of Held to Maturity Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity Securities, Amortized Cost | $123 | |
Municipal Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity Securities, Amortized Cost | 123 | |
Held to Maturity Securities, Gross Unrealized Gains | 0 | 0 |
Held to Maturity Securities, Gross Unrealized Losses | 0 | 0 |
Held to Maturity Securities, Fair Value | $123 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Sale of securities | $0 | $0 |
Summary_of_Loans_by_Categories
Summary of Loans by Categories of Loans Class (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $313,462 | $273,378 |
Less net deferred loan fees, premiums and discounts | 555 | 467 |
Less undisbursed portion of loans | 8,454 | 5,933 |
Less allowance for loan losses | 7,976 | 7,597 |
Net loans | 296,477 | 259,381 |
Real Estate, One-to four-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 44,316 | 49,726 |
Real Estate, Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,645 | 7,912 |
Commercial mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 153,705 | 126,154 |
Commercial mortgage loans, Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 61,204 | 62,790 |
Commercial mortgage loans, Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,060 | 9,734 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 21,673 | 8,669 |
Commercial Non-mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 14,717 | 7,226 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $1,142 | $1,167 |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans [Line Items] | |||
Percentage of construction loans for commercial real estate of loan-to-completed appraised value ratio | 70.00% | ||
Maximum period for construction loans | 9 months | ||
Charge down to the net realizable value | Other secured loans are 120 days past due | ||
Loans to related parties | $7,872,000 | $7,872,000 | $5,230,000 |
New debt | 5,061,000 | ||
Debt payoffs | 2,419,000 | ||
Troubled Debt Restructuring charge off | 750,000 | ||
Minimum period for realizable of Troubled Debt Restructuring loans into nonaccrual status or default loans | 90 days | ||
Default Balance | $0 | ||
Troubled Debt Restructuring | |||
Loans [Line Items] | |||
Minimum realizable period for new loan into accrual status under performance with new loan terms | 6 months | ||
Minimum | |||
Loans [Line Items] | |||
Period for discontinuation of accrual of interest on all loan classes | 6 months |
Financing_Receivables_and_Allo
Financing Receivables and Allowance for Credit Losses on Financing Receivables (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | $7,597 | $6,671 |
Provision charged to expense | 1,020 | 830 |
Losses charged off | -806 | -212 |
Recoveries | 165 | 308 |
Balance, end of period | 7,976 | 7,597 |
Ending Balance: individually evaluated for impairment | 1,150 | 1,295 |
Ending balance: collectively evaluated for impairment | 6,826 | 6,302 |
Loans: | ||
Ending Balance | 313,462 | 273,378 |
Ending Balance: individually evaluated for impairment | 27,780 | 26,785 |
Ending Balance: collectively evaluated for impairment | 285,682 | 246,593 |
Real Estate, One-to four-family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 1,354 | 1,433 |
Provision charged to expense | -475 | 116 |
Losses charged off | -55 | -210 |
Recoveries | 57 | 15 |
Balance, end of period | 881 | 1,354 |
Ending balance: collectively evaluated for impairment | 881 | 1,354 |
Loans: | ||
Ending Balance | 44,316 | 49,726 |
Ending Balance: individually evaluated for impairment | 1,645 | 2,494 |
Ending Balance: collectively evaluated for impairment | 42,671 | 47,232 |
Real Estate, Home equity | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 251 | 266 |
Provision charged to expense | -151 | -16 |
Recoveries | 1 | |
Balance, end of period | 100 | 251 |
Ending balance: collectively evaluated for impairment | 100 | 251 |
Loans: | ||
Ending Balance | 6,645 | 7,912 |
Ending Balance: individually evaluated for impairment | 63 | |
Ending Balance: collectively evaluated for impairment | 6,582 | 7,912 |
Commercial mortgage loans, Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 2,861 | 2,663 |
Provision charged to expense | 702 | 98 |
Recoveries | 10 | 100 |
Balance, end of period | 3,573 | 2,861 |
Ending Balance: individually evaluated for impairment | 200 | 345 |
Ending balance: collectively evaluated for impairment | 3,373 | 2,516 |
Loans: | ||
Ending Balance | 153,705 | 126,154 |
Ending Balance: individually evaluated for impairment | 8,956 | 11,067 |
Ending Balance: collectively evaluated for impairment | 144,749 | 115,087 |
Commercial mortgage loans, Multifamily | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 1,514 | 1,497 |
Provision charged to expense | -123 | 17 |
Balance, end of period | 1,391 | 1,514 |
Ending Balance: individually evaluated for impairment | 100 | 100 |
Ending balance: collectively evaluated for impairment | 1,291 | 1,414 |
Loans: | ||
Ending Balance | 61,204 | 62,790 |
Ending Balance: individually evaluated for impairment | 8,192 | 8,462 |
Ending Balance: collectively evaluated for impairment | 53,012 | 54,328 |
Commercial mortgage loans, Land | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 1,145 | 312 |
Provision charged to expense | -33 | 651 |
Recoveries | 93 | 182 |
Balance, end of period | 1,205 | 1,145 |
Ending Balance: individually evaluated for impairment | 850 | 850 |
Ending balance: collectively evaluated for impairment | 355 | 295 |
Loans: | ||
Ending Balance | 10,060 | 9,734 |
Ending Balance: individually evaluated for impairment | 3,224 | 4,162 |
Ending Balance: collectively evaluated for impairment | 6,836 | 5,572 |
Construction | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 285 | 302 |
Provision charged to expense | 1,004 | -17 |
Losses charged off | -750 | |
Balance, end of period | 539 | 285 |
Ending balance: collectively evaluated for impairment | 539 | 285 |
Loans: | ||
Ending Balance | 21,673 | 8,669 |
Ending Balance: individually evaluated for impairment | 5,349 | |
Ending Balance: collectively evaluated for impairment | 16,324 | 8,669 |
Commercial Non-mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 157 | 166 |
Provision charged to expense | 112 | -14 |
Recoveries | 5 | |
Balance, end of period | 269 | 157 |
Ending balance: collectively evaluated for impairment | 269 | 157 |
Loans: | ||
Ending Balance | 14,717 | 7,226 |
Ending Balance: individually evaluated for impairment | 351 | 600 |
Ending Balance: collectively evaluated for impairment | 14,366 | 6,626 |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance, beginning of year | 30 | 32 |
Provision charged to expense | -16 | -5 |
Losses charged off | -1 | -2 |
Recoveries | 5 | 5 |
Balance, end of period | 18 | 30 |
Ending balance: collectively evaluated for impairment | 18 | 30 |
Loans: | ||
Ending Balance | 1,142 | 1,167 |
Ending Balance: collectively evaluated for impairment | $1,142 | $1,167 |
Credit_Risk_Profile_of_Our_Loa
Credit Risk Profile of Our Loan Portfolio Based on Rating Category and Payment Activity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $313,462 | $273,378 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 264,577 | 230,292 |
Pass (Closely Monitored) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 24,635 | 17,069 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 2,815 | 5,889 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 21,435 | 20,128 |
Real Estate, One-to four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 44,316 | 49,726 |
Real Estate, One-to four-family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 40,253 | 45,735 |
Real Estate, One-to four-family | Pass (Closely Monitored) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 2,446 | 1,827 |
Real Estate, One-to four-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 413 | 818 |
Real Estate, One-to four-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 1,204 | 1,346 |
Real Estate, Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 6,645 | 7,912 |
Real Estate, Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 6,645 | 7,806 |
Real Estate, Home equity | Pass (Closely Monitored) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 106 | |
Commercial mortgage loans, Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 153,705 | 126,154 |
Commercial mortgage loans, Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 131,833 | 107,825 |
Commercial mortgage loans, Commercial real estate | Pass (Closely Monitored) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 10,446 | 4,081 |
Commercial mortgage loans, Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 2,383 | 4,992 |
Commercial mortgage loans, Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 9,043 | 9,256 |
Commercial mortgage loans, Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 61,204 | 62,790 |
Commercial mortgage loans, Multifamily | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 47,308 | 48,808 |
Commercial mortgage loans, Multifamily | Pass (Closely Monitored) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 9,244 | 9,170 |
Commercial mortgage loans, Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 4,652 | 4,812 |
Commercial mortgage loans, Land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 10,060 | 9,734 |
Commercial mortgage loans, Land | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 5,160 | 3,742 |
Commercial mortgage loans, Land | Pass (Closely Monitored) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 2,156 | 1,830 |
Commercial mortgage loans, Land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 43 | |
Commercial mortgage loans, Land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 2,744 | 4,119 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 21,673 | 8,669 |
Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 18,213 | 8,669 |
Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 3,460 | |
Commercial Non-mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 14,717 | 7,226 |
Commercial Non-mortgage | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 14,023 | 6,540 |
Commercial Non-mortgage | Pass (Closely Monitored) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 343 | 55 |
Commercial Non-mortgage | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 19 | 36 |
Commercial Non-mortgage | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 332 | 595 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 1,142 | 1,167 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $1,142 | $1,167 |
Summary_of_Our_Past_Due_and_No
Summary of Our Past Due and Non-Accrual Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $5,112 | $933 |
60-89 Days Past Due | 786 | 667 |
Greater than 90 Days | 3,475 | 5,770 |
Total Past Due | 9,373 | 7,370 |
Current | 304,089 | 266,008 |
Total Loans Receivable | 313,462 | 273,378 |
Total Loans>90 Days & Accruing | 1,390 | |
Total Nonaccrual | 8,125 | 5,231 |
Real Estate, One-to four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 334 | 217 |
60-89 Days Past Due | 152 | |
Greater than 90 Days | 107 | 254 |
Total Past Due | 593 | 471 |
Current | 43,723 | 49,255 |
Total Loans Receivable | 44,316 | 49,726 |
Total Nonaccrual | 107 | 254 |
Real Estate, Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,645 | 7,912 |
Total Loans Receivable | 6,645 | 7,912 |
Commercial mortgage loans, Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 818 | 716 |
60-89 Days Past Due | 634 | 667 |
Greater than 90 Days | 649 | 49 |
Total Past Due | 2,101 | 1,432 |
Current | 151,604 | 124,722 |
Total Loans Receivable | 153,705 | 126,154 |
Total Nonaccrual | 1,339 | 779 |
Commercial mortgage loans, Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Greater than 90 Days | 1,363 | |
Total Past Due | 1,363 | |
Current | 61,204 | 61,427 |
Total Loans Receivable | 61,204 | 62,790 |
Total Loans>90 Days & Accruing | 1,363 | |
Commercial mortgage loans, Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Greater than 90 Days | 2,700 | 4,068 |
Total Past Due | 2,700 | 4,068 |
Current | 7,360 | 5,666 |
Total Loans Receivable | 10,060 | 9,734 |
Total Loans>90 Days & Accruing | 27 | |
Total Nonaccrual | 2,700 | 4,041 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 3,960 | |
Total Past Due | 3,960 | |
Current | 17,713 | 8,669 |
Total Loans Receivable | 21,673 | 8,669 |
Total Nonaccrual | 3,960 | |
Commercial Non-mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Greater than 90 Days | 19 | 36 |
Total Past Due | 19 | 36 |
Current | 14,698 | 7,190 |
Total Loans Receivable | 14,717 | 7,226 |
Total Nonaccrual | 19 | 157 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,142 | 1,167 |
Total Loans Receivable | $1,142 | $1,167 |
Summary_of_Impaired_Loans_by_C
Summary of Impaired Loans by Class (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Balance | $27,780 | $26,785 |
Unpaid Principal Balance | 32,054 | 32,082 |
Specific Allowance | 1,150 | 1,295 |
YTD Average Balance | 30,059 | 26,850 |
YTD Interest Income | 1,277 | 1,278 |
Real Estate, One-to four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 1,467 | 2,494 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 1,643 | 2,712 |
Loans without a specific valuation allowance, YTD Average Balance | 1,472 | 2,668 |
Loans without a specific valuation allowance, YTD Interest Income | 77 | 225 |
Loans with a specific valuation allowance, Recorded Balance | 178 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 178 | |
Loans with a specific valuation allowance, YTD Average Balance | 180 | |
Loans with a specific valuation allowance, YTD Interest Income | 8 | |
Recorded Balance | 1,645 | 2,494 |
Unpaid Principal Balance | 1,821 | 2,712 |
YTD Average Balance | 1,652 | 2,668 |
YTD Interest Income | 85 | 225 |
Real Estate, Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 63 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 63 | |
Loans without a specific valuation allowance, YTD Average Balance | 65 | |
Loans without a specific valuation allowance, YTD Interest Income | 2 | |
Recorded Balance | 63 | |
Unpaid Principal Balance | 63 | |
YTD Average Balance | 65 | |
YTD Interest Income | 2 | |
Commercial mortgage loans, Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 6,029 | 7,128 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 8,309 | 9,152 |
Loans without a specific valuation allowance, YTD Average Balance | 6,680 | 7,630 |
Loans without a specific valuation allowance, YTD Interest Income | 323 | 315 |
Loans with a specific valuation allowance, Recorded Balance | 2,927 | 3,939 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 2,927 | 3,939 |
Loans with a specific valuation allowance, YTD Average Balance | 3,000 | 2,843 |
Loans with a specific valuation allowance, YTD Interest Income | 200 | 218 |
Recorded Balance | 8,956 | 11,067 |
Unpaid Principal Balance | 11,236 | 13,091 |
Specific Allowance | 200 | 345 |
YTD Average Balance | 9,680 | 10,473 |
YTD Interest Income | 523 | 533 |
Commercial mortgage loans, Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 6,847 | 7,099 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 7,661 | 7,914 |
Loans without a specific valuation allowance, YTD Average Balance | 6,941 | 7,325 |
Loans without a specific valuation allowance, YTD Interest Income | 392 | 409 |
Loans with a specific valuation allowance, Recorded Balance | 1,345 | 1,363 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 1,345 | 1,363 |
Loans with a specific valuation allowance, YTD Average Balance | 1,355 | 1,100 |
Loans with a specific valuation allowance, YTD Interest Income | 83 | 33 |
Recorded Balance | 8,192 | 8,462 |
Unpaid Principal Balance | 9,006 | 9,277 |
Specific Allowance | 100 | 100 |
YTD Average Balance | 8,296 | 8,425 |
YTD Interest Income | 475 | 442 |
Commercial mortgage loans, Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 524 | 742 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 805 | 1,672 |
Loans without a specific valuation allowance, YTD Average Balance | 504 | 913 |
Loans without a specific valuation allowance, YTD Interest Income | 4 | 48 |
Loans with a specific valuation allowance, Recorded Balance | 2,700 | 3,420 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 4,060 | 4,730 |
Loans with a specific valuation allowance, YTD Average Balance | 3,044 | 3,641 |
Loans with a specific valuation allowance, YTD Interest Income | 1 | |
Recorded Balance | 3,224 | 4,162 |
Unpaid Principal Balance | 4,865 | 6,402 |
Specific Allowance | 850 | 850 |
YTD Average Balance | 3,548 | 4,554 |
YTD Interest Income | 5 | 48 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 5,349 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 4,712 | |
Loans without a specific valuation allowance, YTD Average Balance | 3,664 | |
Loans without a specific valuation allowance, YTD Interest Income | 57 | |
Loans with a specific valuation allowance, YTD Average Balance | 2,674 | |
Loans with a specific valuation allowance, YTD Interest Income | 107 | |
Recorded Balance | 5,349 | |
Unpaid Principal Balance | 4,712 | |
YTD Average Balance | 6,338 | |
YTD Interest Income | 164 | |
Commercial Non-mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 19 | 600 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 19 | 600 |
Loans without a specific valuation allowance, YTD Average Balance | 137 | 726 |
Loans without a specific valuation allowance, YTD Interest Income | 5 | 30 |
Loans with a specific valuation allowance, Recorded Balance | 332 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 332 | |
Loans with a specific valuation allowance, YTD Average Balance | 343 | |
Loans with a specific valuation allowance, YTD Interest Income | 18 | |
Recorded Balance | 351 | 600 |
Unpaid Principal Balance | 351 | 600 |
YTD Average Balance | 480 | 726 |
YTD Interest Income | 23 | 30 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans without a specific valuation allowance, YTD Average Balance | 4 | |
YTD Average Balance | $4 |
Summary_of_Loans_Restructured_
Summary of Loans Restructured as TDRs (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ||
Count | 2 | |
Balance prior to TDR | $5,324 | |
Balance after TDR | 5,324 | |
Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Count | 1 | |
Balance prior to TDR | 4,710 | |
Balance after TDR | 4,710 | |
Commercial mortgage loans, Land | ||
Financing Receivable, Modifications [Line Items] | ||
Count | 1 | |
Balance prior to TDR | 614 | |
Balance after TDR | 614 | |
Commercial mortgage loans, Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Count | 1 | |
Balance prior to TDR | 655 | |
Balance after TDR | $655 |
Summary_of_Loans_Restructured_1
Summary of Loans Restructured as TDRs Based on Type of Modification (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number | 2 | |
Amount | $5,324 | $655 |
Commercial mortgage loans, Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 655 | |
Commercial mortgage loans, Land | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 614 | |
Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 4,710 | |
Payment Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 4,710 | |
Payment Extension | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 4,710 | |
Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 655 | |
Rate Reduction | Commercial mortgage loans, Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 655 | |
Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | 614 | |
Combination | Commercial mortgage loans, Land | ||
Financing Receivable, Modifications [Line Items] | ||
Number | 1 | |
Amount | $614 |
Major_Classifications_of_Premi
Major Classifications of Premises and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $6,832 | $6,764 |
Less accumulated depreciation | -5,448 | -5,195 |
Property, plant and equipment, net | 1,384 | 1,569 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 514 | 514 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,146 | 3,146 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $3,172 | $3,104 |
Deposit_at_Year_End_Detail
Deposit at Year End (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits By Type [Line Items] | ||
Savings accounts | $13,249 | $11,630 |
Checking accounts | 33,819 | 33,674 |
Money market accounts | 67,350 | 53,817 |
Certificates of deposit | 109,111 | 73,862 |
Deposits | $223,529 | $172,983 |
Maturities_of_Certificates_of_
Maturities of Certificates of Deposit (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Time Deposits [Line Items] | ||
2015 | $49,356 | |
2016 | 14,981 | |
2017 | 26,531 | |
2018 | 7,460 | |
2019 | 10,018 | |
Thereafter | 765 | |
Total | $109,111 | $73,862 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposit Liabilities [Line Items] | ||
Time deposits | $85,833 | $48,076 |
Federal_Home_Loan_Bank_Advance2
Federal Home Loan Bank Advances - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $50,000 | $61,994 |
Federal home loan bank interest rate range from | 1.92% | |
Federal home loan bank interest rate range to | 5.25% | |
Specific deposit at federal home loan bank | $166,385 |
Aggregate_Annual_Maturities_of
Aggregate Annual Maturities of Federal Home Loan Bank Advances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
2015 | $13,000 | |
2016 | 0 | |
2017 | 10,000 | |
2018 | 5,000 | |
2019 | 0 | |
Thereafter | 22,000 | |
Total | $50,000 | $61,994 |
Components_Included_as_Provisi
Components Included as Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Components Of Income Tax Expense Benefit [Line Items] | ||
Taxes currently payable | $1,540 | $1,098 |
Deferred income taxes | -114 | -294 |
Actual tax expense | $1,426 | $804 |
Reconciliation_of_Income_Tax_E
Reconciliation of Income Tax Expense at Statutory Rate to Company's Actual Income Tax Expense (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation Of Income Taxes [Line Items] | ||
Computed at the statutory rate (34%) | $1,397 | $803 |
Increase (decrease) resulting from Tax exempt interest | -49 | -45 |
Other | 78 | 46 |
Actual tax expense | $1,426 | $804 |
Reconciliation_of_Income_Tax_E1
Reconciliation of Income Tax Expense at Statutory Rate to Company's Actual Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Income Taxes [Line Items] | ||
Statutory rate | 34.00% | 34.00% |
Tax_Effects_of_Temporary_Diffe
Tax Effects of Temporary Differences Related to Deferred Taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Allowance for loan losses | $2,712 | $2,583 |
Depreciation | 125 | 110 |
Deferred loan fees | 191 | 165 |
Deferred compensation | 189 | 249 |
Real estate owned | 1 | 8 |
Tax credits | 43 | |
Other | 166 | 122 |
Deferred tax assets | 3,384 | 3,280 |
Deferred tax liabilities | ||
FHLB stock dividends | 31 | 41 |
Net deferred tax asset | $3,353 | $3,239 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Income Taxes [Line Items] | |
Deferred income tax liability not recognized | $2,019 |
Deferred income tax liabilities reversed into taxable income | $686 |
Quantitative_Measures_Detail
Quantitative Measures (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier I capital to adjusted assets, Actual amount | $58,763 | $57,936 |
Tier I capital to adjusted assets, Actual ratio | 17.60% | 19.60% |
Tier I capital to adjusted assets for capital adequacy purposes, Amount | 13,396 | 11,827 |
Tier I capital to adjusted assets for capital adequacy purposes, Ratio | 4.00% | 4.00% |
Tier I capital, Actual amount | 58,763 | 57,936 |
Tier I capital risk-weighted assets, Actual ratio | 21.40% | 24.60% |
Tier I risk-based capital for capital adequacy purposes, Amount | 10,968 | 9,413 |
Tier I risk-based capital for capital adequacy purposes, Ratio | 4.00% | 4.00% |
Total risk-based capital, Actual amount | 62,224 | 60,935 |
Total risk-weighted assets, Actual ratio | 22.70% | 25.90% |
Total risk-based capital for capital adequacy purposes, Amount | 21,936 | 18,827 |
Total risk-based capital for capital adequacy purposes, Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 16,745 | 14,784 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 16,452 | 14,120 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $27,420 | $23,533 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Regulatory_Matters_Additional_
Regulatory Matters - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Retained earnings, available for dividend declaration | $3,669 |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Benefit Plans [Line Items] | ||
Description of 401(K) retirement savings plan | We have a retirement savings 401(k) plan covering substantially all employees. Employees may contribute up to 100% of their compensation with us matching 100% of the employee's contribution on the first 3% of the employee's compensation and 50% of the employee's contributions that exceed 3% but does not exceed 5%. Additionally, we can make discretionary contributions to our 401 (k) plan. | |
Employee contribution percentage | 50.00% | |
Minimum employee contribution percentage | 3.00% | |
Maximum employee contribution percentage | 5.00% | |
Employer contributions expense | $73 | $81 |
WBKC common stock acquired under ESOP, shares | 200,600 | |
WBKC common stock acquired under ESOP, per share | $10 | |
Common stock acquired by the ESOP shown as a reduction of stockholders' equity | 2,006 | |
ESOP expense | 244 | 214 |
ESOP allocated shares | 41,755 | 33,583 |
Fair value of ESOP shares allocated | $1,019 | $715 |
First Three Percent Of Contributions On Defined Contribution Plan | ||
Employee Benefit Plans [Line Items] | ||
Employee contribution percentage | 100.00% |
Employee_Stock_Ownership_Plan_
Employee Stock Ownership Plan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Allocated shares | 41,755 | 33,583 |
Unearned shares | 156,458 | 166,655 |
Total ESOP shares | 198,213 | 200,238 |
Fair value of unearned shares at December 31 | $1,564 | $1,666 |
Employee Stock Option Plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Fair value of unearned shares at December 31 | $3,747 | $3,550 |
Summary_of_Fair_Value_Measurem
Summary of Fair Value Measurements of Assets Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Collateral-dependent Impaired loans, fair value | $3,822 | $7,681 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Collateral-dependent Impaired loans, fair value | 3,822 | 7,681 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Collateral-dependent Impaired loans, fair value | $3,822 | $7,681 |
Summary_of_Quantitative_Inform
Summary of Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements Other Than Goodwill (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | 30-May-14 | Dec. 31, 2014 | Dec. 31, 2013 |
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 18.02% | ||
Significant Unobservable Inputs (Level 3) | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Collateral-dependent impaired loans | $3,822 | $7,681 | |
Valuation Technique | Market comparable properties | Market comparable properties | |
Unobservable Inputs | Marketability discount | Marketability discount | |
Significant Unobservable Inputs (Level 3) | Minimum | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 6.00% | 9.00% | |
Significant Unobservable Inputs (Level 3) | Maximum | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 38.00% | 46.00% | |
Significant Unobservable Inputs (Level 3) | Weighted Average | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 7.00% | 34.00% |
Summary_of_Estimated_Fair_Valu
Summary of Estimated Fair Values of Company's Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets | ||
Held to maturity securities | $123 | |
Interest receivable | 777 | 699 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | 29,686 | 26,181 |
Held to maturity securities | 123 | |
Loans held for sale | 570 | 1,325 |
Loans, net of allowance for loan losses | 296,477 | 259,381 |
Federal Home Loan Bank stock | 2,500 | 3,320 |
Interest receivable | 777 | 699 |
Financial liabilities | ||
Deposits | 223,659 | 172,983 |
Federal Home Loan Bank advances | 50,000 | 61,994 |
Interest payable | 157 | 138 |
Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and cash equivalents | 29,686 | 26,181 |
Financial liabilities | ||
Deposits | 114,418 | 99,121 |
Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Held to maturity securities | 123 | |
Loans held for sale | 570 | 1,330 |
Federal Home Loan Bank stock | 2,500 | 3,320 |
Interest receivable | 777 | 699 |
Financial liabilities | ||
Federal Home Loan Bank advances | 50,567 | 60,653 |
Interest payable | 157 | 138 |
Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Loans, net of allowance for loan losses | 299,514 | 264,357 |
Financial liabilities | ||
Deposits | $110,560 | $74,339 |
Summary_of_Financial_Instrumen
Summary of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Commitments to extend credit | $17,393 | $8,432 |
Unused portions of lines of credit | 5,790 | 2,683 |
Standby letters of credit | $1,107 | $275 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities - Additional information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Commitments And Contingent Liabilities [Line Items] | |
Expire period of commitments to make loans | 30 days |
Maximum | |
Commitments And Contingent Liabilities [Line Items] | |
Expire period of commitments to make loans | 90 days |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income | $2,683 | $1,559 | $2,683 | $1,559 |
Dividends and undistributed earnings allocated participating securities | -52 | -42 | ||
Income attributable to common shareholders | $2,631 | $1,517 | ||
Weighted average shares outstanding | 2,276 | 2,427 | ||
Less: average unearned ESOP and unvested restricted stock | -220 | -237 | ||
Average shares | 2,056 | 2,190 | ||
Effect of diluted based awards | 14 | 2 | ||
Average common and common-equivalent shares for diluted EPS | 2,070 | 2,192 | ||
Basic EPS | $1.28 | $0.69 | $1.28 | $0.69 |
Diluted EPS | $1.27 | $0.69 | $1.27 | $0.69 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Maximum Number of shares authorized under plan | 351,050 | |
Share based compensation expense | $307 | $333 |
Contractual term of stock option plan | 10 years | |
Unrecognized compensation expense related to stock options | 163 | |
Amortization period of stock options | 2 years 8 months 12 days | |
Total fair value of options vested | 1,141 | |
Stock option expense | 60 | 65 |
Unrecognized compensation expense | 675 | |
Restricted stock expense | $247 | $268 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Option | ||
Options outstanding at January 1, 2014 | 129,080 | |
Granted | 2,350 | |
Exercised | -5,004 | |
Forfeited | -4,977 | |
Expired | 0 | |
Options outstanding at December 31, 2014 | 121,449 | 129,080 |
Exercisable at December 31, 2014 | 46,436 | |
Weighted average exercise price | ||
Options outstanding at January 1, 2014 | $17.30 | |
Granted | $22.01 | |
Exercised | $17.32 | |
Forfeited | $17.38 | |
Expired | $0 | |
Options outstanding at December 31, 2014 | $17.45 | $17.30 |
Exercisable at December 31, 2014 | $17.30 | |
Remaining contractual life (year) | ||
Granted | 10 years | |
Options outstanding | 8 years | 9 years |
Exercisable at December 31, 2014 | 8 years | |
Aggregate Intrinsic Value | ||
Options outstanding | $789 | $516 |
Exercisable at December 31, 2014 | $309 |
Assumption_Used_in_BlackSchole
Assumption Used in Black-Scholes Option Pricing Formula (Detail) (USD $) | 0 Months Ended | |
30-May-14 | 30-May-14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 18.02% | |
Risk-free interest rate | 2.14% | |
Expected dividend yield | 1.90% | |
Expected life (in years) | 7 years 6 months | |
Exercise price for the stock options | $22.01 | |
Grant date fair value | $2.44 |
Summary_of_Restricted_Stock_Aw
Summary of Restricted Stock Award Activity (Detail) (Restricted Stock, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested at January 1, 2014 | 59,723 |
Granted | 1,175 |
Vested | -14,868 |
Forfeited | -2,056 |
Non-vested at December 31, 2014 | 43,974 |
Weighted average grant date fair value, Non-vested at January 1, 2014 | $17.33 |
Weighted average grant date fair value, Granted | $22.01 |
Weighted average grant date fair value, Vested | $17.32 |
Weighted average grant date fair value, Forfeited | $17.48 |
Weighted average grant date fair value, Non-vested at December 30, 2014 | $17.44 |
Condensed_Balance_Sheets_Detai
Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets | |||
Cash and cash equivalents | $29,686 | $26,181 | $16,552 |
Other assets | 4,895 | 4,291 | |
Total assets | 336,624 | 297,761 | |
Stockholders' Equity | 61,538 | 60,325 | 62,447 |
Total liabilities and stockholders' equity | 336,624 | 297,761 | |
Parent | |||
Assets | |||
Cash and cash equivalents | 990 | 370 | 4,649 |
Investment in subsidiary | 60,490 | 60,045 | |
Other assets | 125 | 7 | |
Total assets | 61,605 | 60,422 | |
Liabilities - Other | 67 | 97 | |
Stockholders' Equity | 61,538 | 60,325 | |
Total liabilities and stockholders' equity | $61,605 | $60,422 |
Condensed_Statements_of_Income
Condensed Statements of Income and Comprehensive Income (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Income - Dividends from subsidiary | $14,607 | $13,402 | ||
Expenses | 3,144 | 3,190 | ||
Income Before Income Tax | 4,109 | 2,363 | ||
Income Tax Benefit | -1,426 | -804 | ||
Net Income | 2,683 | 1,559 | 2,683 | 1,559 |
Comprehensive Income | 2,683 | 1,559 | ||
Parent | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Income - Dividends from subsidiary | 3,000 | |||
Expenses | 325 | 297 | ||
Income Before Income Tax | 2,675 | -297 | ||
Income Tax Benefit | 114 | |||
Income (Loss) Before Equity in Undistributed Income (Distribution in Excess of Income) | 2,789 | -297 | ||
Equity in Undistributed Income (Distribution in Excess of Income) | -106 | 1,856 | ||
Net Income | 2,683 | 1,559 | ||
Comprehensive Income | $2,683 | $1,559 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income | $2,683 | $1,559 |
Financing Activities | ||
Purchase of treasury stock | -807 | -3,345 |
Dividends paid | -1,260 | -883 |
Increase in Cash and Cash Equivalents | 3,505 | 9,629 |
Cash and Cash Equivalents, Beginning of Year | 26,181 | 16,552 |
Cash and Cash Equivalents, End of Year | 29,686 | 26,181 |
Parent | ||
Operating Activities | ||
Net income | 2,683 | 1,559 |
Items not requiring (providing) cash: | ||
Equity in (undistributed income) distributions in excess of income of subsidiary | 106 | -1,856 |
Change in other assets | -72 | 190 |
Change in other liabilities | -30 | 56 |
Net cash used in operating activities | 2,687 | -51 |
Financing Activities | ||
Purchase of treasury stock | -807 | -3,345 |
Dividends paid | -1,260 | -883 |
Net cash used in financing activities | -2,067 | -4,228 |
Increase in Cash and Cash Equivalents | 620 | -4,279 |
Cash and Cash Equivalents, Beginning of Year | 370 | 4,649 |
Cash and Cash Equivalents, End of Year | $990 | $370 |