Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 6: Loans Receivable and Allowance for Loan Losses Loans receivable, excluding loans held for sale, consist of the following at December 31, 2016 March 31, 2016: December 31, 2016 March 31, 2016 Legacy (1) Acquired Total Loans % of Total Legacy (1) Acquired Total Loans % of Total Real estate loans: One-to four-family: Residential $ 44,297,741 $ 87,924,992 $ 132,222,733 40 % $ 46,263,709 $ 23,036,569 $ 69,300,278 31 % Residential construction 6,973,282 557,310 7,530,592 2 % 4,304,189 965,440 5,269,629 2 % Investor (2) 9,670,382 22,432,236 32,102,618 10 % 12,076,911 15,783,008 27,859,919 13 % Commercial 94,173,223 15,511,630 109,684,853 33 % 75,225,984 2,889,219 78,115,203 35 % Commercial construction 1,655,899 1,620,552 3,276,451 1 % 1,982,571 1,274,148 3,256,719 2 % Total real estate loans 156,770,527 128,046,720 284,817,247 86 % 139,853,364 43,948,384 183,801,748 83 % Commercial business 19,815,173 2,506,890 22,322,063 7 % 17,773,967 2,621,625 20,395,592 9 % Home equity loans 13,737,121 7,948,303 21,685,424 7 % 12,222,688 2,168,073 14,390,761 6 % Consumer 2,443,559 986,293 3,429,852 1 % 3,072,677 1,106,434 4,179,111 2 % Total Loans 192,766,380 139,488,206 332,254,586 100 % 172,922,696 49,844,516 222,767,212 100 % Net deferred loan origination fees and costs (194,754 ) - (194,754 ) (139,321 ) - (139,321 ) Loan premium (discount) 50,670 (712,233 ) (661,563 ) 77,983 (846,818 ) (768,835 ) $ 192,622,296 $ 138,775,973 $ 331,398,269 $ 172,861,358 $ 48,997,698 $ 221,859,056 (1) As a result of the acquisition of Fraternity Community Bancorp, Inc., the parent company of Fraternity Federal Savings and Loan, in May 2016 September 2015, two (2) "Investor" loans are residential mortgage loans secured by non-owner occupied one four Residential lending is generally considered to involve less risk than other forms of lending, although payment experience on these loans is dependent on economic and market conditions in the Bank's lending area. Construction loan repayments are generally dependent on the related properties or the financial condition of its borrower or guarantor. Accordingly, repayment of such loans can be more susceptible to adverse conditions in the real estate market and the regional economy. A substantial portion of the Bank's loan portfolio is real estate loans secured by residential and commercial real estate properties located in the Baltimore metropolitan area. Loans are extended only after evaluation of a customer's creditworthiness and other relevant factors on a case-by-case basis. The Bank generally does not lend more than 90% 80%. The following table details activity in the allowance for loan losses by portfolio segment for both the nine December 31, 2016 2015 March 31, 2016. Legacy Acquired Provision Provision Nine months ended: Allowance for loan Charge Allowance Allowance for loan Charge Allowance December 31, 2016 3/31/2016 losses offs Recoveries 12/31/2016 3/31/2016 losses offs Recoveries 12/31/2016 Real estate loans: One-to four-family $ 428,027 $ 118,357 $ - $ 2,482 $ 548,866 $ - $ 90,949 $ 97,509 $ 6,560 $ - Commercial 901,768 953,050 621,741 - 1,233,077 - - - - - Commercial construction 42,377 345 - - 42,722 - - - - - Commercial business 228,199 (108,182 ) 1,521 28,827 147,323 - - - - - Home equity loans 82,012 8,209 - - 90,221 - - - - - Consumer 19,982 (21,819 ) 4,073 7,270 1,360 - (903 ) - 903 - $ 1,702,365 $ 949,960 $ 627,335 $ 38,579 $ 2,063,569 $ - $ 90,046 $ 97,509 $ 7,463 $ - Legacy Acquired Provision Provision Nine months ended: Allowance for loan Charge Allowance Allowance for loan Charge Allowance December 31, 2015 3/31/2015 losses offs Recoveries 12/31/2015 3/31/2015 losses offs Recoveries 12/31/2015 Real estate loans: One-to four-family $ 433,570 $ 179,413 $ 168,139 $ 848 $ 445,692 $ - $ 61,517 $ 86,352 $ 24,835 $ - Commercial 585,817 529,516 - - 1,115,333 - - - - - Commercial construction 67,835 (218,589 ) - 236,906 86,152 - - - - - Commercial business 473,127 (353,601 ) 10,533 150,547 259,540 - - - - - Home equity loans 98,983 (9,962 ) 6,000 - 83,021 - - - - - Consumer 727 31,883 7,565 940 25,985 - - - - - Unallocated 30,177 (30,177 ) - - - - - - - - $ 1,690,236 $ 128,483 $ 192,237 $ 389,241 $ 2,015,723 $ - $ 61,517 $ 86,352 $ 24,835 $ - Legacy Acquired Provision Provision Year Ended: Allowance for Loan Charge Allowance Allowance for Loan Charge Allowance March 31, 2016 3/31/2015 Losses offs Recoveries 3/31/2016 3/31/2016 Losses offs Recoveries 3/31/2016 Real estate loans: One-to four-family $ 433,570 $ 164,809 $ 171,200 $ 848 $ 428,027 $ - $ 95,703 $ 120,538 $ 24,835 $ - Commercial 585,817 883,852 567,901 - 901,768 - - - - - Commercial construction 67,835 (262,362 ) - 236,904 42,377 - - - - - Commercial business 473,127 (426,731 ) 10,533 192,336 228,199 - - - - - Home equity loans 98,983 (10,971 ) 6,000 - 82,012 - - - - - Consumer 727 25,877 16,337 9,715 19,982 - - - - - Unallocated 30,177 (30,177 ) - - - - - - - - $ 1,690,236 $ 344,297 $ 771,971 $ 439,803 $ 1,702,365 $ - $ 95,703 $ 120,538 $ 24,835 $ - The following table provides additional information on the allowance for loan losses and loan balances with respect to evaluation for impairment by segment: Legacy Acquired Allowance Loan Balance Allowance Loan Balance Individually Collectively Individually Collectively Individually Collectively Individually Collectively evaluated evaluated evaluated evaluated evaluated evaluated evaluated evaluated for for for for for for for for December 31, 2016 impairment impairment impairment impairment impairment impairment impairment impairment Real estate loans: One-to four-family $ 288,098 $ 260,768 $ 1,787,289 $ 59,154,116 $ - $ - $ 1,269,425 $ 109,645,113 Commercial - 1,233,077 2,036,391 92,136,832 - - 206,463 15,305,167 Commercial construction - 42,722 - 1,655,899 - - - 1,620,552 Commercial business - 147,323 781,623 19,033,550 - - - 2,506,890 Home equity loans - 90,221 13,041 13,724,080 - - 7,924 7,940,379 Consumer - 1,360 - 2,443,559 - - 37,576 948,717 $ 288,098 $ 1,775,471 $ 4,618,344 $ 188,148,036 $ - $ - $ 1,521,388 $ 137,966,818 Legacy Acquired Allowance Loan Balance Allowance Loan Balance Individually Collectively Individually Collectively Individually Collectively Individually Collectively evaluated evaluated evaluated evaluated evaluated evaluated evaluated evaluated for for for for for for for for December 31, 2015 impairment impairment impairment impairment impairment impairment impairment impairment Real estate loans: One-to four-family $ 79,301 $ 366,391 $ 1,959,393 $ 62,421,992 $ - $ - $ 1,663,950 $ 40,033,208 Commercial - 1,115,333 3,329,058 73,131,183 - - - 2,925,586 Commercial construction - 86,152 - 1,886,203 - - - 1,850,747 Commercial business - 259,540 2,353,249 16,220,992 - - 212,809 2,471,138 Home equity loans - 83,021 17,578 12,045,351 - - - 2,212,783 Consumer - 25,985 - 3,367,363 - - 39,384 1,161,421 $ 79,301 $ 1,936,422 $ 7,659,278 $ 169,073,084 $ - $ - $ 1,916,143 $ 50,654,883 Legacy Acquired Allowance Loan Balance Allowance Loan Balance Individually Collectively Individually Collectively Individually Collectively Individually Collectively Evaluated Evaluated Evaluated Evaluated Evaluated Evaluated Evaluated Evaluated for for for for for for for for March 31, 2016 Impairment Impairment Impairment Impairment Impairment Impairment Impairment Impairment Real estate loans: One-to four-family $ 59,571 $ 368,456 $ 1,918,527 $ 60,726,282 $ - $ - $ 1,210,306 $ 38,574,711 Commercial - 901,768 2,717,144 72,508,840 - - 211,239 2,677,980 Commercial construction - 42,377 - 1,982,571 - - - 1,274,148 Commercial business - 228,199 1,279,233 16,494,734 - - - 2,621,625 Home equity loans - 82,012 59,169 12,163,519 - - - 2,168,073 Consumer - 19,982 - 3,072,677 - - 42,488 1,063,946 $ 59,571 $ 1,642,794 $ 5,974,073 $ 166,948,623 $ - $ - $ 1,464,033 $ 48,380,483 Past due loans, segregated by age and class of loans, as of and for the nine December 31, 2016 March 31, 2016, Loans Accruing Nonaccrual Loans Loans 90 or more loans 90 or interest 30-59 days 60-89 days days Total past Current more days Nonaccrual not December 31, 2016 past due past due past due due loans loans Totals loans past due loans accrued Legacy Loans: Real estate loans: One-to four-family $ 825,322 $ 5,713 $ 191,878 $ 1,022,913 $ 59,918,492 $ 60,941,405 $ - $ 517,680 $ 17,229 Commercial - - 2,036,391 2,036,391 92,136,832 94,173,223 - 2,036,391 68,775 Commercial construction - - - - 1,655,899 1,655,899 - - - Commercial business - - - - 19,815,173 19,815,173 - - - Home equity loans - - - - 13,737,121 13,737,121 - 4,163 73 Consumer - - - - 2,443,559 2,443,559 - - - $ 825,322 $ 5,713 $ 2,228,269 $ 3,059,304 $ 189,707,076 $ 192,766,380 $ - $ 2,558,234 $ 86,077 Loans Accruing Nonaccrual Loans Loans 90 or more loans 90 or interest 30-59 days 60-89 days days Total past Current more days Nonaccrual not December 31, 2016 past due past due past due due loans loans Totals loans past due loans accrued Acquired Loans: Real estate loans: One-to four-family $ 1,243,891 $ 332,907 $ 435,342 $ 2,012,140 $ 108,902,398 $ 110,914,538 $ - $ 435,342 $ 56,805 Commercial - 20,338 11,190 31,528 15,480,102 15,511,630 - 31,528 - Commercial construction - - - - 1,620,552 1,620,552 - - - Commercial business - - 18,455 18,455 2,488,435 2,506,890 - 18,455 - Home equity loans - - - - 7,948,303 7,948,303 - 30 - Consumer - 5,139 - 5,139 981,154 986,293 - 1,047 33 $ 1,243,891 $ 358,384 $ 464,987 $ 2,067,262 $ 137,420,944 $ 139,488,206 $ - $ 486,402 $ 56,838 Loans Accruing Nonaccrual Loans Loans 90 or more loans 90 or interest 30-59 days 60-89 days days Total past Current more days Nonaccrual not March 31, 2016 past due past due past due due loans loans Totals loans past due loans accrued Legacy Loans: Real estate loans: One-to four-family $ 468,887 $ 99,360 $ 388,104 $ 956,351 $ 61,688,458 $ 62,644,809 $ 165,701 $ 511,939 $ 18,494 Commercial - - 2,717,144 2,717,144 72,508,840 75,225,984 - 2,717,144 - Commercial construction - - - - 1,982,571 1,982,571 - - - Commercial business - - 121,760 121,760 17,652,207 17,773,967 - 121,760 47,646 Home equity loans 20,753 - 43,073 63,826 12,158,862 12,222,688 - 49,462 1,007 Consumer - - - - 3,072,677 3,072,677 - - - $ 489,640 $ 99,360 $ 3,270,081 $ 3,859,081 $ 169,063,615 $ 172,922,696 $ 165,701 $ 3,400,305 $ 67,147 Loans Accruing Nonaccrual Loans Loans 90 or more loans 90 or interest 30-59 days 60-89 days days Total past Current Totals more days Nonaccrual not March 31, 2016 past due past due past due due loans loans loans past due loans accrued Acquired Loans: Real estate loans: One-to four-family $ 42,800 $ - $ 1,480,508 $ 1,523,308 $ 38,261,709 $ 39,785,017 $ 542,236 $ 938,272 $ 118,381 Commercial - - - - 2,889,219 2,889,219 - - - Commercial construction - - - - 1,274,148 1,274,148 - - - Commercial business - - - - 2,621,625 2,621,625 - - - Home equity loans - - - - 2,168,073 2,168,073 - - - Consumer - - 3,535 3,535 1,102,899 1,106,434 - 3,535 178 $ 42,800 $ - $ 1,484,043 $ 1,526,843 $ 48,317,673 $ 49,844,516 $ 542,236 $ 941,807 $ 118,559 Impaired Loans as of and for the nine December 31, 2016 March 31, 2016, Unpaid Recorded Recorded contractual investment investment Total Average principal with no with recorded Related recorded Interest December 31, 2016 balance allowance allowance investment allowance investment recognized Legacy Loans: Real estate loans: One-to four-family $ 2,048,417 $ 394,759 $ 1,392,530 $ 1,787,289 $ 288,098 $ 1,792,551 $ 46,819 Commercial 3,433,621 2,036,391 - 2,036,391 - 2,610,661 987 Commercial construction - - - - - - - Commercial business 1,216,028 781,623 - 781,623 - 824,690 80,538 Home equity loans 37,916 13,041 - 13,041 - 14,628 188 Consumer - - - - - - - $ 6,735,982 $ 3,225,814 $ 1,392,530 $ 4,618,344 $ 288,098 $ 5,242,530 $ 128,532 Unpaid Recorded Recorded contractual investment investment Total Average principal with no with recorded Related recorded Interest December 31, 2016 balance allowance allowance investment allowance investment recognized Acquired Loans: Real estate loans: One-to four-family $ 1,734,058 $ 1,269,425 $ - $ 1,269,425 $ - $ 1,148,691 $ 40,076 Commercial 256,463 206,463 - 206,463 - 208,859 5,848 Commercial construction - - - - - - - Commercial business - - - - - - - Home equity loans 57,116 7,924 - 7,924 - 7,712 2,663 Consumer 68,230 37,576 - 37,576 - 40,396 4,228 $ 2,115,867 $ 1,521,388 $ - $ 1,521,388 $ - $ 1,405,658 $ 52,815 Unpaid Recorded Recorded contractual investment investment Total Average principal with no with recorded Related recorded Interest March 31, 2016 balance allowance allowance investment allowance investment recognized Legacy Loans: Real estate loans: One-to four-family $ 2,116,820 $ 626,719 $ 1,291,808 $ 1,918,527 $ 59,571 $ 1,865,000 $ 63,498 Commercial 3,433,621 2,717,144 - 2,717,144 - 3,298,855 99,599 Commercial construction - - - - - - - Commercial business 1,884,258 1,279,233 - 1,279,233 - 1,557,871 147,101 Home equity loans 82,740 59,169 - 59,169 - 18,817 331 Consumer - - - - - - - $ 7,517,439 $ 4,682,265 $ 1,291,808 $ 5,974,073 $ 59,571 $ 6,740,543 $ 310,529 Unpaid Recorded Recorded contractual investment investment Total Average principal with no with recorded Related recorded Interest March 31, 2016 balance allowance allowance investment allowance investment recognized Acquired Loans: Real estate loans: One-to four-family $ 2,444,002 $ 1,210,306 $ - $ 1,210,306 $ - $ 1,387,353 $ 86,587 Commercial 261,239 211,239 - 211,239 - 212,806 9,978 Commercial construction - - - - - - - Commercial business - - - - - - - Home equity loans - - - - - - - Consumer 72,358 42,488 - 42,488 - 43,233 7,086 $ 2,777,599 $ 1,464,033 $ - $ 1,464,033 $ - $ 1,643,392 $ 103,651 The following table documents changes in the carrying amount of acquired impaired loans (Purchased Credit Impaired or “PCI”) for the nine December 31, December 31, 2016 December 31, 2015 Recorded investment at beginning of period $ 919,729 $ - Fair value of loans acquired during the year 1,027,518 980,943 Accretion 20,738 - Reductions of payments (501,432 ) (22,608 ) Recorded investment at end of period $ 1,466,553 $ 958,335 Outstanding principal balance at end of period $ 1,907,842 1,324,972 A summary of changes in the accretable yield for PCI loans for the nine December 31, 2016 2015 December 31, 2016 December 31, 2015 Accretable yield at beginning of period $ 32,629 $ - Addition from acquisition 55,046 59,142 Accretion (20,738 ) - Reclassification from nonaccretable difference - - Accretable yield at end of period $ 66,937 $ 59,142 Impaired loans also include certain loans that have been modified in troubled debt restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Bank's loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Generally, nonaccrual loans that are modified and considered TDRs are classified as nonperforming at the time of restructure and may six A summary of TDRs at December 31, 2016 March 31, 2016 Number of December 31, 2016 contracts Performing Nonperforming Total Real estate loans: One-to four-family 12 $ 1,269,267 $ 271,208 $ 1,540,475 Commercial 2 - 2,036,391 2,036,391 Commercial construction - - - - Commercial business 1 612,357 - 612,357 Home equity loans - - - - Consumer - - - - 15 $ 1,881,624 $ 2,307,599 $ 4,189,223 Number of March 31, 2016 contracts Performing Nonperforming Total Real estate loans: One-to four-family 12 $ 1,457,552 $ 101,449 $ 1,559,001 Commercial 2 - 2,717,144 2,717,144 Commercial construction - - - - Commercial business 2 647,654 - 647,654 Home equity loans - - - - Consumer - - - - 16 $ 2,105,206 $ 2,818,593 $ 4,923,799 The following table presents the number of contracts and the dollar amount of TDR’s that were added during the three nine December 31, 2016 2015. Loans Modified as a TDR for the three months ended December 31, 2016 December 31, 2015 Number of Outstanding recorded Number of Outstanding recorded Troubled Debt Restructurings contracts investment contracts investment Real estate loans: One-to four-family 1 52,649 - - Loans Modified as a TDR for the nine months ended December 31, 2016 December 31, 2015 Number of Outstanding recorded Number of Outstanding recorded Troubled Debt Restructurings contracts investment contracts investment Real estate loans: One-to four-family 1 52,649 2 20,816 There were no three December 31, 2016 2015 nine December 31, 2016 2015. 2017, 11 one twelve October 2016 90 Credit quality indicators As part of the ongoing monitoring of the credit quality of the Bank's loan portfolio, management tracks certain credit quality indicators including trends related to the risk grade of loans, the level of classified loans, net charge offs, nonperforming loans, and the general economic conditions in the Bank's market. The Bank utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of loans characterized as watch list or classified is as follows: Pass A pass loan is considered of sufficient quality to preclude a special mention or an adverse rating. Pass assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral. Special Mention A special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may Loans that would primarily fall into this notational category could have been previously classified adversely, but the deficiencies have since been corrected. Management should closely monitor recent payment history of the loan and value of the collateral. Borrowers may may may Substandard A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well defined weakness, or weaknesses, that jeopardize the collection or liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. This will be the measurement for determining if a loan is impaired. Borrowers may Doubtful A doubtful loan has all the weaknesses inherent as a substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. A loan classified as doubtful exhibits loss potential. However, there is still sufficient reason to permit the loan to remain on the books. A doubtful classification could reflect the deterioration of the primary source of repayment and serious doubt exists as to the quality of the secondary Doubtful classifications should be used only when a distinct and known possibility of loss exists. When identified, adequate loss should be recorded for the specific assets. The entire asset should not be classified as doubtful if a partial recovery is expected, such as liquidation of the collateral or the probability of a private mortgage insurance payment is likely. Loss Loans classified as loss are considered uncollectable and of such little value that their continuance as loans is unjustified. A loss classification does not mean a loan has absolutely no value; partial recoveries may The following tables present the December 31, 2016 March 31, 2016, December 31, 2016 March 31, 2016. Legacy Acquired Special Special December 31, 2016 Pass Mention Substandard Total Pass Mention Substandard Total Real estate loans: One-to four-family $ 57,925,687 $ 2,550,162 $ 465,556 $ 60,941,405 $ 105,301,053 $ 4,344,061 $ 1,269,424 $ 110,914,538 Commercial 85,771,988 6,364,843 2,036,391 94,173,222 13,957,708 1,315,931 237,991 15,511,630 Commercial construction 1,655,899 - - 1,655,899 1,620,552 - - 1,620,552 Commercial business 18,954,943 690,965 169,266 19,815,174 2,488,434 18,455 - 2,506,889 Home equity loans 13,724,080 - 13,041 13,737,121 7,804,424 135,956 7,924 7,948,304 Consumer 2,443,559 - - 2,443,559 943,578 5,139 37,576 986,293 $ 180,476,156 $ 9,605,970 $ 2,684,254 $ 192,766,380 $ 132,115,749 $ 5,819,542 $ 1,552,915 $ 139,488,206 Percentage of total loans 93.6 % 5.0 % 1.4 % 100 % 94.7 % 4.2 % 1.1 % 100 % Legacy Acquired Special Special March 31, 2016 Pass Mention Substandard Total Pass Mention Substandard Total Real estate loans: One-to four-family $ 59,969,105 $ 2,272,150 $ 403,554 $ 62,644,809 $ 38,039,563 $ 535,148 $ 1,210,306 $ 39,785,017 Commercial 66,824,956 5,683,884 2,717,144 75,225,984 2,677,980 - 211,239 2,889,219 Commercial construction 1,982,571 - - 1,982,571 1,274,148 - - 1,274,148 Commercial business 13,629,957 3,477,579 666,431 17,773,967 2,621,625 - - 2,621,625 Home equity loans 12,163,519 - 59,169 12,222,688 2,168,073 - - 2,168,073 Consumer 3,072,677 - - 3,072,677 1,063,946 - 42,488 1,106,434 $ 157,642,785 $ 11,433,613 $ 3,846,298 $ 172,922,696 $ 47,845,335 $ 535,148 $ 1,464,033 $ 49,844,516 Percentage of total loans 91.2 % 6.6 % 2.2 % 100 % 96.0 % 1.1 % 2.9 % 100 % In the normal course of business, the Bank has various outstanding commitments and contingent liabilities that are not reflected in the accompanying financial statements. Loan commitments and lines of credit are agreements to lend to a customer as long as there is no violation of any condition to the contract. Mortgage loan commitments generally have fixed interest rates, fixed expiration dates, and may The Bank’s maximum exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the credit commitment. Loan commitments, lines of credit, and letters of credit are made on the same terms, including collateral, as outstanding loans. Management is not aware of any accounting loss to be incurred by funding these loan commitments. The Bank had the following outstanding commitments and unused lines of credit as of December 31, 2016 March 31, 2016: December 31, March 31, 2016 2016 Unused commercial lines of credit $ 11,521,792 $ 9,845,571 Unused home equity lines of credit 23,032,210 16,004,725 Unused consumer lines of credit 36,223 29,656 Residential construction loan commitments 6,864,779 8,166,473 Commercial construction loan commitments 5,308,584 1,384,932 Home equity loan commitments - 536,000 Commercial loan commitments - 411,500 Standby letters of credit 558,189 273,981 |