Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5: Loans Receivable and Allowance for Loan Losses Loans receivable, excluding loans held for sale, consist of the following at December 31, 2018 March 31, 2018: December 31, 2018 March 31, 2018 Legacy (1) Acquired Total Loans % of Total Legacy (1) Acquired Total Loans % of Total Real estate loans: One-to four-family: Residential (2) $ 83,117,881 $ 66,255,260 149,373,141 40 % $ 85,248,184 $ 72,749,066 $ 157,997,250 41 % Residential construction 3,430,203 - 3,430,203 1 % 5,450,827 - 5,450,827 1 % Investor (3) 7,337,281 16,407,266 23,744,547 6 % 9,275,031 17,460,809 26,735,840 7 % Commercial 105,755,786 9,289,784 115,045,570 31 % 100,403,769 11,762,485 112,166,254 29 % Commercial construction 1,543,313 1,059,217 2,602,530 1 % 5,763,784 1,352,019 7,115,803 2 % Total real estate loans 201,184,464 93,011,527 294,195,991 80 % 206,141,595 103,324,379 309,465,974 80 % Commercial business (4) 35,276,493 1,706,509 36,983,002 10 % 38,302,739 1,841,226 40,143,965 10 % Home equity loans 15,077,068 4,941,051 20,018,119 5 % 13,956,327 6,039,462 19,995,789 5 % Consumer (5) 16,329,237 699,371 17,028,608 5 % 18,849,448 766,063 19,615,511 5 % Total Loans 267,867,262 100,358,458 368,225,720 100 % 277,250,109 111,971,130 389,221,239 100 % Net deferred loan origination fees and costs (178,056 ) - (178,056 ) (212,746 ) - (212,746 ) Loan premium (discount) 1,708,908 (299,956 ) 1,408,952 1,922,428 (510,036 ) 1,412,392 $ 269,398,114 $ 100,058,502 $ 369,456,616 $ 278,959,791 $ 111,461,094 $ 390,420,885 ( 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 "Legacy" one four March 31, 2018 $19.2 second 2018. ( 3 "Investor" loans are residential mortgage loans secured by non-owner occupied one four ( 4 "Legacy" commercial business loans at March 31, 2018 $15.5 June 2017 $3.2 second 2018. ( 5 "Legacy" consumer loans at March 31, 2018 $19.9 August December 2017. 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 75% 95% 80%. Commercial business loans are made to provide funds for equipment and general corporate needs. Repayment of a loan primarily uses the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. The Company’s loan portfolio also includes equipment leases, which consists of leases for essential commercial equipment used by small to medium sized businesses. The home equity loans consist of both conforming loans and revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second may The following table details activity in the allowance for loan losses by portfolio segment for the three nine December 31, 2018 2017. not not Three Months Ended December 31, 2018 Residential Real Estate Investor Real Estate Commercial Real Estate Commercial Construction Commercial Business Home Equity Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 665,676 $ 314,571 $ 1,312,441 $ 12,390 $ 532,611 $ 72,831 $ 98,676 $ 21,733 $ 3,030,929 Charge-offs - (32,909 ) - - (133,729 ) - - - (166,638 ) Recoveries 41,059 33,609 - - 10,880 - 1,267 - 86,815 Provision for credit losses (24,321 ) (36,632 ) (31,557 ) (4,090 ) 160,895 1,555 (4,214 ) 18,364 80,000 Ending balance $ 682,414 $ 278,639 $ 1,280,884 $ 8,300 $ 570,657 $ 74,386 $ 95,729 $ 40,097 $ 3,031,106 Nine Months Ended December 31, 2018 Residential Real Estate Investor Real Estate Commercial Real Estate Commercial Construction Commercial Business Home Equity Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 608,723 $ 51,690 $ 1,253,383 $ 33,430 $ 673,982 $ 69,459 $ 131,236 $ - $ 2,821,903 Charge-offs (13,769 ) (41,022 ) (31,320 ) - (208,729 ) - (2,465 ) - (297,305 ) Recoveries 43,301 33,675 31,320 - 10,880 - 4,836 - 124,012 Provision for credit losses 44,159 234,296 27,501 (25,130 ) 94,524 4,927 (37,878 ) 40,097 382,496 Ending balance $ 682,414 $ 278,639 $ 1,280,884 $ 8,300 $ 570,657 $ 74,386 $ 95,729 $ 40,097 $ 3,031,106 Allowance allocated to: Legacy Loans: Individually evaluated for impairment $ 253,811 $ - $ - $ - $ - $ - $ - $ - $ 253,811 Collectively evaluated for impairment 276,937 50,593 1,241,051 7,254 566,217 59,952 95,516 40,097 2,337,617 Acquired Loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 151,666 228,046 39,833 1,046 4,440 14,434 213 - 439,678 Three Months Ended December 31, 2017 Residential Real Estate Investor Real Estate Commercial Real Estate Commercial Construction Commercial Business Home Equity Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 528,288 $ 52,255 $ 1,360,433 $ 12,074 $ 327,130 $ 62,570 $ 128,241 $ - $ 2,470,991 Charge-offs - (111,360 ) (100,236 ) - - - - - (211,596 ) Recoveries 3,937 - - - 171 - 1,034 - 5,142 Provision for credit losses 35,875 103,790 148,707 11,100 45,987 619 (1,078 ) - 345,000 Ending balance $ 568,100 $ 44,685 $ 1,408,904 $ 23,174 $ 373,288 $ 63,189 $ 128,197 $ - $ 2,609,537 Nine Months Ended December 31, 2017 Residential Real Estate Investor Real Estate Commercial Real Estate Commercial Construction Commercial Business Home Equity Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 553,539 $ 35,275 $ 1,375,894 $ 9,031 $ 149,461 $ 70,071 $ 1,544 $ - $ 2,194,815 Charge-offs (8,907 ) (126,482 ) (100,236 ) - - - (486 ) - (236,111 ) Recoveries 3,937 18,129 - - 551 - 3,216 - 25,833 Provision for credit losses 19,531 117,763 133,246 14,143 223,276 (6,882 ) 123,923 - 625,000 Ending balance $ 568,100 $ 44,685 $ 1,408,904 $ 23,174 $ 373,288 $ 63,189 $ 128,197 $ - $ 2,609,537 Allowance allocated to: Legacy Loans: Individually evaluated for impairment $ 272,707 $ - $ - $ - $ - $ - $ - $ - $ 272,707 Collectively evaluated for impairment 295,393 44,685 1,408,904 23,174 373,288 63,189 128,197 - 2,336,830 Acquired Loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment - - - - - - - - - Our recorded investment in loans at December 31, 2018 2017 December 31, 2018 Residential Real Estate Investor Real Estate Commercial Real Estate Commercial Construction Commercial Business Home Equity Consumer Total Legacy Loans: Individually evaluated for impairment $ 1,773,176 $ 31,752 $ 4,139,177 $ - $ 743,160 $ 6,785 $ 91,662 $ 6,785,712 Collectively evaluated for impairment 84,774,908 7,305,529 101,616,609 1,543,313 34,533,333 15,070,283 16,237,575 261,081,550 Ending balance $ 86,548,084 $ 7,337,281 $ 105,755,786 $ 1,543,313 $ 35,276,493 $ 15,077,068 $ 16,329,237 $ 267,867,262 Acquired Loans: Individually evaluated for impairment $ 440,242 $ 261,659 $ - $ - $ - $ 164 $ 55,492 $ 757,557 Collectively evaluated for impairment 65,815,018 16,145,606 9,289,784 1,059,217 1,706,509 4,940,887 643,880 99,600,901 Ending balance $ 66,255,260 $ 16,407,265 $ 9,289,784 $ 1,059,217 $ 1,706,509 $ 4,941,051 $ 699,372 $ 100,358,458 December 31, 2017 Residential Real Estate Investor Real Estate Commercial Real Estate Commercial Construction Commercial Business Home Equity Consumer Total Legacy Loans: Individually evaluated for impairment $ 1,697,585 $ 121,514 $ 4,500,043 $ - $ 905,178 $ 21,579 $ - $ 7,245,899 Collectively evaluated for impairment 85,532,435 7,254,483 96,357,409 3,995,441 38,083,051 13,780,512 20,075,548 265,078,879 Ending balance $ 87,230,020 $ 7,375,997 $ 100,857,452 $ 3,995,441 $ 38,988,229 $ 13,802,091 $ 20,075,548 $ 272,324,778 Acquired Loans: Individually evaluated for impairment $ 1,061,049 $ 579,172 $ 199,920 $ - $ - $ - $ 56,708 $ 1,896,849 Collectively evaluated for impairment 73,640,662 17,629,734 11,960,924 856,970 1,928,232 6,874,136 728,392 113,619,050 Ending balance $ 74,701,711 $ 18,208,906 $ 12,160,844 $ 856,970 $ 1,928,232 $ 6,874,136 $ 785,100 $ 115,515,899 Past due loans, segregated by age and class of loans, as of and for the nine December 31, 2018 March 31, 2018, December 31, 2018 March 31, 2018 Legacy Acquired Total Legacy Acquired Total Current $ 262,125,497 $ 99,620,976 $ 361,746,473 $ 270,807,643 $ 109,972,473 $ 380,780,116 Accruing past due loans: 30-59 days past due: Real estate loans: Residential 71,020 18,488 89,508 63,618 689,364 752,982 Investor - 29,357 29,357 - - - Commercial - - - - - - Commercial construction - - - - - - Commercial business 120,418 - 120,418 135,502 - 135,502 Home equity loans - 68 68 - - - Consumer 23,357 25,753 49,110 148,876 - 148,876 Total 30-59 days past due 214,795 73,666 288,461 347,996 689,364 1,037,360 60-89 days past due: Real estate loans: Residential 72,377 121,223 193,600 70,291 - 70,291 Investor - - - - - - Commercial - - - - - - Commercial construction - - - - - - Commercial business 460,762 - 460,762 134,524 - 134,524 Home equity loans - - - - - - Consumer 5,233 - 5,233 28,300 - 28,300 Total 60-89 days past due 538,372 121,223 659,595 233,115 - 233,115 90 or more days past due: Real estate loans: Residential - - - - - - Investor 222,485 113,029 335,514 734,818 471,423 1,206,241 Commercial - - - - - - Commercial construction - - - - - - Commercial business - - - - - - Home equity loans - - - - - - Consumer - - - - - - Total 90 or more days past due 222,485 113,029 335,514 734,818 471,423 1,206,241 Total accruing past due loans 975,652 307,918 1,283,570 1,315,929 1,160,787 2,476,716 Non-accruing loans: Real estate loans: Residential 365,610 300,530 666,140 526,584 338,060 864,644 Investor 31,752 128,937 160,689 60,949 300,872 361,821 Commercial 4,139,177 - 4,139,177 4,356,264 198,938 4,555,202 Commercial construction - - - - - - Commercial business 143,145 - 143,145 165,285 - 165,285 Home equity loans - 97 97 12,605 - 12,605 Consumer 86,429 - 86,429 4,850 - 4,850 Non-accruing loans: 4,766,113 429,564 5,195,677 5,126,537 837,870 5,964,407 Total Loans $ 267,867,262 $ 100,358,458 $ 368,225,720 $ 277,250,109 $ 111,971,130 $ 389,221,239 Nonaccrual interest not accrued: Real estate loans: Residential $ 2,289 $ 7,237 $ 9,526 $ 8,250 $ 53,120 $ 61,370 Investor 2,066 6,490 8,556 8,513 15,604 24,117 Commercial 252,381 - 252,381 294,619 - 294,619 Commercial construction - - - - - - Commercial business 8,796 - 8,796 12,891 - 12,891 Home equity loans - - - 436 - 436 Consumer 1,459 - 1,459 385 - 385 Total nonaccrual interest not accrued $ 266,991 $ 13,727 $ 280,718 $ 325,094 $ 68,724 $ 393,818 Impaired loans as of and for the three nine December 31, 2018 2017, March 31, 2018, Impaired Loans at December 31, 2018 Three months ended December 31, 2018 Nine months ended December 31, 2018 Unpaid Contractual Average Interest Average Interest Principal Recorded Related Recorded Income Recorded Income Balance Investment Allowance Investment Recognized Investment Recognized Legacy: With no related allowance recorded: Real estate loans: Residential $ 706,098 $ 538,723 $ - $ 558,414 $ 3,719 $ 538,965 $ 7,666 Investor - - - - - - - Commercial 6,375,413 4,139,177 - 4,309,168 - 4,280,325 53,278 Commercial construction Commercial business 1,369,695 743,160 - 863,260 25,781 925,694 70,558 Home equity loans 33,287 6,785 - 7,036 1,910 7,293 2,043 Consumer 91,745 91,662 - 92,474 2,542 92,822 2,542 With an allowance recorded: Real estate loans: Residential $ 1,248,874 $ 1,234,453 $ 253,811 $ 1,237,197 $ 12,337 $ 1,246,235 $ 37,255 Investor 57,831 31,752 - 32,427 1,108 32,291 1,108 Commercial - - - - - - - Commercial construction - - - - - - - Commercial business - - - - - - - Home equity loans - - - - - - - Consumer - - - - - - - Total legacy impaired 9,882,943 6,785,712 253,811 7,099,976 47,397 7,123,625 174,450 Acquired (1): With no related allowance recorded: Real estate loans: Residential 456,272 440,242 - 439,495 5,457 425,256 7,179 Investor 405,538 261,659 - 263,562 4,722 246,751 13,859 Commercial Commercial construction Commercial business Home equity loans 37,858 164 - 238 1,851 79 2,501 Consumer 88,545 55,492 - 56,249 1,401 57,957 3,949 With an allowance recorded: Real estate loans: Residential - - - - - - - Investor - - - - - - - Commercial - - - - - - - Commercial construction - - - - - - - Commercial business - - - - - - - Home equity loans - - - - - - - Consumer - - - - - - - Total acquired impaired 988,213 757,557 - 759,544 13,431 730,043 27,488 Total impaired $ 10,871,156 $ 7,543,269 $ 253,811 $ 7,859,520 $ 60,828 $ 7,853,668 $ 201,938 ( 1 Generally accepted accounting principles require that we record acquired loans at fair value at acquisition, which includes a discount for loans with credit impairment. These purchased credit impaired loans are not not Impaired Loans at December 31, 2017 Three months ended December 31, 2017 Nine months ended December 31, 2017 Unpaid Contractual Average Interest Average Interest Principal Recorded Related Recorded Income Recorded Income Balance Investment Allowance Investment Recognized Investment Recognized Legacy: With no related allowance recorded: Real estate loans: Residential $ 513,736 $ 371,312 $ - $ 376,225 $ 280 $ 387,772 $ 1,451 Investor 127,420 121,514 122,576 - 123,362 3,772 Commercial 6,487,088 4,500,043 - 4,689,502 - 4,703,598 1,077 Commercial construction - - - - - - - Commercial business 1,303,000 905,178 - 937,594 24,038 894,330 75,926 Home equity loans 48,218 21,579 - 22,072 76 23,100 316 Consumer - - - - - - - With an allowance recorded: Real estate loans: Residential 1,354,169 1,326,273 272,707 1,330,015 13,248 1,341,584 39,333 Investor - - - - - - - Commercial - - - - - - - Commercial construction - - - - - - - Commercial business - - - - - - - Home equity loans - - - - - - - Consumer - - - - - - - Total legacy impaired 9,833,631 7,245,899 272,707 7,477,984 37,642 7,473,746 121,875 Acquired (1): With no related allowance recorded: Real estate loans: Residential 1,211,254 1,061,049 - 1,063,445 4,247 1,077,738 26,087 Investor 687,849 579,172 - 663,538 2,893 697,174 34,582 Commercial 249,920 199,920 - 200,589 1,888 202,263 5,700 Commercial construction - - - - - - - Commercial business - - - - - - - Home equity loans 42,583 - - - - - 600 Consumer 99,349 56,708 - 58,084 1,338 62,234 4,464 With an allowance recorded: Real estate loans: Residential - - - - - - - Investor - - - - - - - Commercial - - - - - - - Commercial construction - - - - - - - Commercial business - - - - - - - Home equity loans - - - - - - - Consumer - - - - - - - Total acquired impaired 2,290,955 1,896,849 - 1,985,656 10,366 2,039,409 71,433 Total impaired $ 12,124,586 $ 9,142,748 $ 272,707 $ 9,463,640 $ 48,008 $ 9,513,155 $ 193,308 ( 1 Generally accepted accounting principles require that we record acquired loans at fair value at acquisition, which includes a discount for loans with credit impairment. These purchased credit impaired loans are not not Impaired Loans at March 31, 2018 For the Year Ended March 31, 2018 Unpaid Contractual Average Interest Principal Recorded Related Recorded Income Balance Investment Allowance Investment Recognized Legacy: With no related allowance recorded: Real estate loans: Residential $ 665,051 $ 517,600 $ - $ 548,636 $ 9,257 Investor 126,389 60,949 118,175 3,772 Commercial 6,487,088 4,356,264 - 4,634,504 1,077 Commercial construction - - - - - Commercial business 1,562,756 795,410 - 1,082,773 103,474 Home equity loans 47,650 20,595 - 22,604 392 Consumer 48,115 34,266 - 38,514 1,576 With an allowance recorded: Real estate loans: Residential 1,336,078 1,309,440 266,256 1,328,919 51,928 Investor - - - - - Commercial - - - - - Commercial construction - - - - - Commercial business - - - - - Home equity loans - - - - - Consumer - - - - - Total legacy impaired 10,273,127 7,094,524 266,256 7,774,125 171,476 Acquired (1): With no related allowance recorded: Real estate loans: Residential 1,082,484 922,252 - 945,602 26,437 Investor 682,045 444,254 - 659,246 37,368 Commercial 248,938 198,938 - 201,519 7,336 Commercial construction - - - - - Commercial business - - - - - Home equity loans 40,473 - - - 1,329 Consumer 95,986 60,371 - 64,013 6,062 With an allowance recorded: Real estate loans: Residential - - - - - Investor - - - - - Commercial - - - - - Commercial construction - - - - - Commercial business - - - - - Home equity loans - - - - - Consumer - - - - - Total acquired impaired 2,149,926 1,625,815 - 1,870,380 78,532 Total impaired $ 12,423,053 $ 8,720,339 $ 266,256 $ 9,644,505 $ 250,008 ( 1 Generally accepted accounting principles require that we record acquired loans at fair value at acquisition, which includes a discount for loans with credit impairment. These purchased credit impaired loans are not not The following table documents changes in the carrying amount of acquired impaired loans (Purchased Credit Impaired or “PCI”) for the nine December 31, 2018 2017, December 31, 2018 December 31, 2017 Recorded investment at beginning of period $ 1,021,424 $ 1,341,935 Accretion 2,505 25,964 Reductions for payments (649,168 ) (324,806 ) Recorded investment at end of period $ 374,761 $ 1,043,093 Oustanding principal balance at end of period $ 470,368 $ 1,297,471 A summary of changes in the accretable yield for PCI loans for the nine December 31, 2018 2017 December 31, 2018 December 31, 2017 Accretable yield, beginning of period $ 31,895 $ 59,639 Accretion (2,505 ) (25,964 ) Reclassification from nonaccretable difference - - Accretable yield, end of period $ 29,390 $ 33,675 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, 2018 March 31, 2018 Number of December 31, 2018 contracts Performing Nonperforming Total Real estate loans: Residential 16 $ 1,295,469 $ 226,119 $ 1,521,588 Investor - - - - Commercial 2 - 1,195,421 1,195,421 Commercial construction - - - - Commercial business 1 600,016 - 600,016 Home equity loans - - - - Consumer - - - - 19 $ 1,895,485 $ 1,421,540 $ 3,317,025 Number of March 31, 2018 contracts Performing Nonperforming Total Real estate loans: Residential 15 $ 1,230,166 $ 312,964 $ 1,543,130 Investor - - - - Commercial 2 - 1,195,421 1,195,421 Commercial construction - - - - Commercial business 1 605,488 - 605,488 Home equity loans - - - - Consumer - - - - 18 $ 1,835,654 $ 1,508,385 $ 3,344,039 The following table presents the number of contracts and the dollar amount of TDRs that were added during the three nine December 31, 2018 2017. no three December 31, 2018. no December 31, 2018. Loans Modified as a TDR for the Three Months Ended December 31, 2018 December 31, 2017 Number of Outstanding recorded Number of Outstanding recorded Troubled Debt Restructurings contracts investment contracts investment Real estate loans: Residential - $ - 2 $ 50,432 Loans Modified as a TDR for the nine months ended December 31, 2018 December 31, 2017 Number of Outstanding recorded Number of Outstanding recorded Troubled Debt Restructurings contracts investment contracts investment Real estate loans: One-to four-family 1 $ 20,565 3 $ 52,363 There were no three nine December 31, 2018 2017. 90 In calculating the allowance for loan losses, individual TDRs are evaluated for impairment. TDRs are evaluated for impairment based upon either the present value of cash flows or, if collateral dependent, the lower of cost or fair value of the underlying collateral. If it is determined that the cash flows or underlying collateral is less than the carrying amount of the loan, the difference in value will be charged-off through earnings, unless the TDR is performing, in which case a specific reserve may 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 not not 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 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 source of repayment. 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 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 no may The following tables present the December 31, 2018 March 31, 2018, no December 31, 2018 March 31, 2018. December 31, 2018 March 31, 2018 LEGACY ACQUIRED TOTAL LEGACY ACQUIRED TOTAL Risk Rating: Rating - Pass: Real estate loans: Residential $ 83,743,323 $ 64,856,380 $ 148,599,703 $ 87,863,805 $ 70,901,293 $ 158,765,098 Investor 7,305,529 15,873,106 23,178,635 9,214,082 16,719,346 25,933,428 Commercial 101,616,609 9,289,784 110,906,393 92,955,370 11,563,547 104,518,917 Commercial construction 1,543,313 1,059,217 2,602,530 5,763,784 1,352,019 7,115,803 Commercial Business 34,835,870 1,706,509 36,542,379 37,978,293 1,841,226 39,819,519 Home Equity 15,070,123 4,805,766 19,875,889 13,935,732 5,928,787 19,864,519 Consumer 16,227,625 669,618 16,897,243 18,733,489 733,669 19,467,158 Total Pass 260,342,392 98,260,380 358,602,772 266,444,555 109,039,887 375,484,442 Rating - Special Mention: Real estate loans: Residential 2,327,412 958,638 3,286,050 2,365,652 925,521 3,291,173 Investor - 273,806 273,806 - 297,209 297,209 Commercial - - - 3,092,135 - 3,092,135 Commercial construction - - - - - - Commercial Business 297,478 - 297,478 134,524 - 134,524 Home Equity - 135,121 135,121 - 110,675 110,675 Consumer 9,950 - 9,950 96,474 - 96,474 Total Special Mention 2,634,840 1,367,565 4,002,405 5,688,785 1,333,405 7,022,190 Rating - Substandard: Real estate loans: Residential 477,349 440,242 917,591 469,554 922,252 1,391,806 Investor 31,752 260,354 292,106 60,949 444,254 505,203 Commercial 4,139,177 - 4,139,177 4,356,264 198,938 4,555,202 Commercial construction - - - - - - Commercial Business 143,145 - 143,145 189,922 - 189,922 Home Equity 6,945 164 7,109 20,595 - 20,595 Consumer 91,662 29,753 121,415 19,485 32,394 51,879 Total - Substandard 4,890,030 730,513 5,620,543 5,116,769 1,597,838 6,714,607 Rating - Doubtful - - - - - - Rating - Loss - - - - - - TOTAL LOANS $ 267,867,262 $ 100,358,458 $ 368,225,720 $ 277,250,109 $ 111,971,130 $ 389,221,239 In the normal course of business, the Bank has various outstanding commitments and contingent liabilities that are not no may not 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. The Bank has established an off-balance sheet reserve for potential losses associated with any outstanding commitment or unused line of credit. The off-balance sheet reserve is a percentage of the outstanding commitment or unused line of credit that is based upon a discounted charge-off history associated with each respective loan segment. The reserve at December 31, 2018 March 31, 2018 $57,000 $50,000, December 31, 2018, not The Bank had the following outstanding commitments and unused lines of credit as of December 31, 2018 March 31, 2018: December 31, March 31, Outstanding Commitment and Used Lines of Credit 2018 2018 Unused commercial lines of credit $ 13,004,510 $ 9,187,810 Unused home equity lines of credit 23,263,860 22,560,376 Unused consumer lines of credit 26,770 29,331 Residential construction loan commitments 6,934,369 4,234,076 Commercial construction loan commitments 2,678,900 8,968,416 Home equity loan commitments 200,000 389,600 Commercial loan commitments 3,671,000 5,125,000 Standby letter of credit 766,783 250,224 |