Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 09, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Sunnyside Bancorp, Inc. | |
Entity Central Index Key | 0001571398 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 793,500 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 1,602,137 | $ 1,217,621 |
Securities held to maturity, net; approximate fair value of $639,000 (June 30, 2019) and $623,000 (December 31, 2018) | 626,295 | 628,526 |
Securities available for sale | 34,582,442 | 29,426,745 |
Loans receivable, net | 42,951,998 | 43,101,525 |
Premises and equipment, net | 1,058,143 | 1,108,873 |
Federal Home Loan Bank of New York and other stock, at cost | 287,500 | 330,800 |
Accrued interest receivable | 574,849 | 516,757 |
Cash surrender value of life insurance | 2,350,354 | 2,319,802 |
Deferred income taxes | 672,259 | 822,538 |
Other assets | 204,923 | 227,540 |
Total assets | 84,910,900 | 79,700,727 |
Liabilities: | ||
Deposits | 69,348,771 | 63,658,430 |
Advances from Federal Home Loan Bank of New York | 2,900,000 | 3,750,000 |
Advances from borrowers for taxes and insurance | 425,776 | 536,712 |
Other liabilities | 928,208 | 890,473 |
Total liabilities | 73,602,755 | 68,835,615 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Serial preferred stock; par value $.01, 1,000,000 shares authorized, no shares issued | ||
Common stock; par value $.01, 30,000,000 shares authorized and 793,500 shares issued | 7,935 | 7,935 |
Additional paid-in capital | 7,078,344 | 7,064,299 |
Unallocated common stock held by the Employee Stock Ownership Plan | (411,079) | (422,184) |
Retained earnings | 6,057,316 | 6,204,754 |
Accumulated other comprehensive ( loss) | (1,424,371) | (1,989,692) |
Total stockholders' equity | 11,308,145 | 10,865,112 |
Total liabilities and stockholders' equity | $ 84,910,900 | $ 79,700,727 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 639,364 | $ 623,368 |
Serial preferred stock, par value | $ .01 | $ 0.01 |
Serial preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Serial preferred stock, shares issued | ||
Common stock, par value | $ .01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 793,500 | 793,500 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and dividend income: | ||||
Loans | $ 453,413 | $ 490,043 | $ 922,430 | $ 1,021,566 |
Investment securities | 27,394 | 27,799 | 54,090 | 54,087 |
Mortgage-backed securities | 174,029 | 135,525 | 325,525 | 262,500 |
Federal funds sold and other earning assets | 3,942 | 3,283 | 14,737 | 7,309 |
Total interest and dividend income | 658,778 | 656,650 | 1,316,782 | 1,345,462 |
Interest Expense: | ||||
Deposits | 126,222 | 66,357 | 225,559 | 129,861 |
Borrowings | 11,260 | 1,013 | 23,087 | 1,013 |
Total interest expense | 137,482 | 67,370 | 248,646 | 130,874 |
Net interest income | 521,296 | 589,280 | 1,068,136 | 1,214,588 |
Provision for loan losses | 26,231 | 26,231 | ||
Net interest income after provision for loan losses | 495,065 | 589,280 | 1,041,905 | 1,214,588 |
Non-interest income: | ||||
Fees and service charges | 39,586 | 27,114 | 65,991 | 54,353 |
Income on bank owned life insurance | 15,366 | 15,319 | 30,552 | 30,507 |
Total non-interest income | 54,952 | 42,433 | 96,543 | 84,860 |
Non-interest expense: | ||||
Compensation and benefits | 318,160 | 300,870 | 643,395 | 635,662 |
Occupancy and equipment, net | 57,177 | 68,614 | 119,474 | 137,988 |
Data processing service fees | 72,560 | 75,448 | 146,435 | 149,153 |
Professional fees | 166,656 | 105,863 | 294,686 | 191,797 |
Federal deposit insurance premiums | 4,622 | 5,241 | 9,423 | 11,392 |
Advertising and promotion | 14,418 | 7,780 | 26,347 | 16,483 |
Other | 42,365 | 42,942 | 85,153 | 86,461 |
Total non-interest expense | 675,958 | 606,758 | 1,324,913 | 1,228,936 |
Income (loss) before income taxes (benefit) | (125,941) | 24,955 | (186,465) | 70,512 |
Income tax expense (benefit) | (24,905) | 4,692 | (39,027) | 14,726 |
Net income (loss) | $ (101,036) | $ 20,263 | $ (147,438) | $ 55,786 |
Basic and diluted income (loss) per share | $ (0.13) | $ 0.03 | $ (0.20) | $ 0.07 |
Weighted average shares outstanding, basic and diluted | 751,893 | 749,984 | 751,614 | 749,708 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (101,036) | $ 20,263 | $ (147,438) | $ 55,786 |
Defined benefit pension plans | ||||
Amortization of loss included in net periodic plan cost | 16,851 | 12,102 | 33,702 | 24,204 |
Unrealized gains (losses) on securities available for sale: | ||||
Unrealized holding gains (losses) arising during the period | 349,236 | (115,923) | 681,898 | (514,505) |
Other comprehensive income (loss), before tax | 366,087 | (103,821) | 715,600 | (490,301) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 76,880 | (21,803) | 150,279 | (102,965) |
Other comprehensive income (loss), net of tax | 289,207 | (82,018) | 565,321 | (387,336) |
Comprehensive income (loss) | $ 188,171 | $ (61,755) | $ 417,883 | $ (331,550) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Unallocated Common Stock Held by ESOP [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2017 | $ 7,935 | $ 7,030,530 | $ (444,394) | $ 6,152,648 | $ (1,471,206) | $ 11,275,513 |
Net income (loss) for the period ended | 35,523 | 35,523 | ||||
ESOP shares allocated or committed to be released | 3,638 | 5,552 | 9,190 | |||
Restricted stock awards earned | 5,512 | 5,512 | ||||
Other comprehensive income (loss), net of tax | (305,318) | (305,318) | ||||
Balance at Mar. 31, 2018 | 7,935 | 7,039,680 | (438,842) | 6,188,171 | (1,776,524) | 11,020,420 |
Balance at Dec. 31, 2017 | 7,935 | 7,030,530 | (444,394) | 6,152,648 | (1,471,206) | 11,275,513 |
Net income (loss) for the period ended | 55,786 | |||||
Other comprehensive income (loss), net of tax | (387,336) | |||||
Balance at Jun. 30, 2018 | 7,935 | 7,048,525 | (433,289) | 6,208,434 | (1,858,542) | 10,973,063 |
Balance at Mar. 31, 2018 | 7,935 | 7,039,680 | (438,842) | 6,188,171 | (1,776,524) | 11,020,420 |
Net income (loss) for the period ended | 20,263 | 20,263 | ||||
ESOP shares allocated or committed to be released | 3,332 | 5,553 | 8,885 | |||
Restricted stock awards earned | 5,513 | 5,513 | ||||
Other comprehensive income (loss), net of tax | (82,018) | (82,018) | ||||
Balance at Jun. 30, 2018 | 7,935 | 7,048,525 | (433,289) | 6,208,434 | (1,858,542) | 10,973,063 |
Balance at Dec. 31, 2018 | 7,935 | 7,064,299 | (422,184) | 6,204,754 | (1,989,692) | 10,865,112 |
Net income (loss) for the period ended | (46,402) | (46,402) | ||||
ESOP shares allocated or committed to be released | 1,143 | 5,552 | 6,695 | |||
Restricted stock awards earned | 5,512 | 5,512 | ||||
Other comprehensive income (loss), net of tax | 276,114 | 276,114 | ||||
Balance at Mar. 31, 2019 | 7,935 | 7,070,954 | (416,632) | 6,158,352 | (1,713,578) | 11,107,031 |
Balance at Dec. 31, 2018 | 7,935 | 7,064,299 | (422,184) | 6,204,754 | (1,989,692) | 10,865,112 |
Net income (loss) for the period ended | (147,438) | |||||
Other comprehensive income (loss), net of tax | 565,321 | |||||
Balance at Jun. 30, 2019 | 7,935 | 7,078,344 | (411,079) | 6,057,316 | (1,424,371) | 11,308,145 |
Balance at Mar. 31, 2019 | 7,935 | 7,070,954 | (416,632) | 6,158,352 | (1,713,578) | 11,107,031 |
Net income (loss) for the period ended | (101,036) | (101,036) | ||||
ESOP shares allocated or committed to be released | 1,877 | 7,518 | 9,395 | |||
Restricted stock awards earned | 5,513 | 5,513 | ||||
Other comprehensive income (loss), net of tax | 289,207 | 289,207 | ||||
Purchase of stock for ESOP | (1,965) | (1,965) | ||||
Balance at Jun. 30, 2019 | $ 7,935 | $ 7,078,344 | $ (411,079) | $ 6,057,316 | $ (1,424,371) | $ 11,308,145 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (147,438) | $ 55,786 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation expense | 56,765 | 68,560 |
Amortization of premiums and accretion of discounts, net | 68,623 | 86,834 |
Amortization of deferred loan fees and costs, net | 45,131 | 44,438 |
Provision for loan losses | 26,231 | |
Increase in accrued interest receivable | (58,092) | (38,213) |
Increase in cash surrender value of life insurance | (30,552) | (30,507) |
Amortization of stock compensation plans | 27,115 | 29,100 |
Net decrease (increase) in other assets | 22,617 | (12,673) |
Net decrease in other liabilities | 71,437 | (51,474) |
Net cash provided by operating activities | 81,837 | 151,851 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (6,939,896) | (3,530,153) |
Repayments and maturities of securities held to maturity | 1,637 | 25,503 |
Repayments and maturities of securities available for sale | 2,398,068 | 3,507,012 |
Loans purchased | (1,916,072) | |
Loan originations, net of principal repayments | 1,994,237 | 4,148,409 |
Purchases of bank premises and equipment | (6,035) | (6,892) |
Redemption (purchase) of FHLB stock | 43,300 | (62,700) |
Net cash (used in) provided by investing activities | (4,424,761) | 4,081,179 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 5,690,341 | (5,157,317) |
Net decrease in advances from borrowers for taxes and insurance | (110,936) | (83,079) |
Proceeds from long-term borrowings | 1,900,000 | |
Net (decrease) increase in short term borrowings | (2,750,000) | 1,500,000 |
Purchase of stock for ESOP | (1,965) | |
Net cash provided by (used in) financing activities | 4,727,440 | (3,740,396) |
Net increase in cash and cash equivalents | 384,516 | 492,634 |
Cash and cash equivalents at beginning of period | 1,217,621 | 1,229,036 |
Cash and cash equivalents at end of period | 1,602,137 | 1,721,670 |
Cash paid for: | ||
Interest | 245,332 | 130,677 |
Income taxes (refunds received), net | $ 3,369 | $ 15,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a description of the more significant policies used in the presentation of the accompanying consolidated financial statements of Sunnyside Bancorp, Inc. and Subsidiary, (collectively, the “Company”). Principles of Consolidation The consolidated financial statements are comprised of the accounts of Sunnyside Bancorp. Inc., and its wholly-owned subsidiary, Sunnyside Federal Savings and Loan Association of Irvington (“Sunnyside Federal” or the “Association”). All significant intercompany accounts and transactions have been eliminated in consolidation. Business Sunnyside Federal is a community-oriented savings institution whose primary business is accepting deposits from customers within its market area (Westchester County, New York) and investing those funds in mortgage loans secured by one-to-four family residences and in mortgage-backed and other securities. To a lesser extent, funds are invested in multi-family and commercial mortgage loans, commercial loans, and consumer loans. Customer deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation. As a federally-chartered savings association, Sunnyside Federal’s primary regulator is the Office of the Controller of the Currency (the “OCC”). Basis of Financial Statement Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with instructions for Form 10-Q, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. However, such information presented reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of the Company’s management, necessary for a fair statement of results for the interim period. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ended December 31, 2019, or any other future interim period. The unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K. Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less to be cash equivalents. Investment and Mortgage-Backed Securities Securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Securities classified as available-for-sale securities are reported at fair value, with unrealized holding gains or losses reported in a separate component of retained earnings. As of June 30, 2019 and December 31, 2018, the Company had no securities classified as held for trading. The Company conducts a periodic review and evaluation of the securities portfolio to determine if a decline in the fair value of any security below its cost basis is other-than-temporary. The evaluation of other-than-temporary impairment considers the duration and severity of the impairment, the Company’s intent and ability to hold the securities and assessments of the reason for the decline in value and the likelihood of a near-term recovery. If such a decline is deemed other-than-temporary, the security is written down to a new cost basis and the resulting loss is charged to income as a component of non-interest expense. Investment and Mortgage-Backed Securities (cont’d) Premiums and discounts on securities are amortized by use of the level-yield method, over the life of the individual securities. Gain or loss on sales of securities is based upon the specific identification method. Loans Receivable Loans receivable are stated at unpaid principal balances less the allowance for loan losses and net deferred loan fees. Recognition of interest on the accrual method is generally discontinued when interest or principal payments are ninety days or more in arrears, or when other factors indicate that the collection of such amounts is doubtful. At that time, a loan is placed on a nonaccrual status, and all previously accrued and uncollected interest is reversed against interest income in the current period. Interest on such loans, if appropriate, is recognized as income when payments are received. A loan is returned to an accrual status when factors indicating doubtful collectability no longer exist. Allowance for Loan Losses An allowance for loan losses is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the provision for loan losses considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. The Company utilizes a two tier approach: (1) identification of problem loans and establishment of specific loss allowances on such loans; and (2) establishment of general valuation allowances on the remainder of its loan portfolio. The Company maintains a loan review system which allows for a periodic review of its loan portfolio and the early identification of potential problem loans. Such system takes into consideration, among other things, delinquency status, size of loans, type of collateral and financial condition of the borrowers. Specific loan losses are established for identified loans based on a review of such information and appraisals of the underlying collateral. General loan losses are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions, and management’s judgment. Although management believes that adequate specific and general loan loss allowances are established, actual losses are dependent upon future events and, as such, further additions to the level of specific and general loan loss allowances may be necessary. A loan evaluated for impairment is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. An insignificant payment delay, which is defined as up to ninety days by the Company, will not cause a loan to be classified as impaired. A loan is not impaired during a period of delay in payment if the Company expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. The amount of loan impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. All loans identified as impaired are evaluated independently. The Company does not aggregate such loans for evaluation purposes. Payments received on impaired loans are applied first to accrued interest receivable and then to principal. Federal Home Loan Bank of New York stock As a member of the Federal Home Loan Bank of New York (“FHLB”), the Company is required to acquire and hold shares of FHLB Class B stock. The holding requirement varies based on the Company’s activities, primarily its outstanding borrowings, with the FHLB. The investment in FHLB stock is carried at cost. The Company conducts a periodic review and evaluation of its FHLB stock to determine if any impairment exists. Premises and Equipment Premises and equipment are comprised of land, building, and furniture, fixtures, and equipment, at cost, less accumulated depreciation. Depreciation charges are computed on the straight-line method over the following estimated useful lives: Building and improvements 5 to 40 years Furniture, fixtures and equipment 2 to 10 years Bank-Owned Life Insurance Bank-owned life insurance (“BOLI”) is accounted for in accordance with FASB guidance. The cash surrender value of BOLI is recorded on the statement of financial condition as an asset and the change in the cash surrender value is recorded as non-interest income. The amount by which any death benefits received exceeds a policy’s cash surrender value is recorded in non-interest income at the time of receipt. A liability is also recorded on the statement of financial condition for postretirement death benefits provided by the split-dollar endorsement policy. A corresponding expense is recorded in non-interest expense for the accrual of benefits over the period during which employees provide services to earn the benefits. Income Taxes Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax return differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset which is not likely to be realized. Employee Benefits Defined Benefit Plans: The accounting guidance related to retirement benefits requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize, in comprehensive income, changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. The accounting guidance requires that plan assets and benefit obligations be measured as of the date of the employer’s fiscal year-end statement of financial condition. 401(K) Plan: The Company has a 401(k) plan covering substantially all employees. The Company matches 50% of the first 6% contributed by participants and recognizes expense as its contributions are made. Employee Stock Ownership Plan: The employee stock ownership plan (ESOP) is accounted for in accordance with the provisions of ASC 718-40, “Employers’ Accounting for Employee Stock Ownership Plans.” The funds borrowed by the ESOP from the Company to purchase the Company’s common stock are being repaid from the Association’s contributions over a period of up to 25 years. The Company’s common stock not yet allocated to participants is recorded as a reduction of stockholders’ equity at cost. Compensation expense for the ESOP is based on the market price of the Company’s stock and is recognized as shares are committed to be released to participants. Equity Incentive Plan: On July 17, 2014, the Board of Directors adopted the Sunnyside Bancorp, Inc. 2014 Equity Incentive Plan (the “Stock Incentive Plan”) which was approved by shareholders at the Company’s 2014 Annual Meeting of Shareholders held on September 16, 2014. Stock options and restricted stock may be granted to directors, officers and other employees of the Company. The maximum number of shares which may be issued upon exercise of the options under the plan cannot exceed 79,350 shares. The maximum number of shares of stock that may be issued as restricted stock awards cannot exceed 23,805. The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024. Under FASB ASC Topic 718, the Company will recognize compensation expense in its income statement over the requisite service period or performance period based on the grant date fair value of stock options and other equity-based compensation (such as restricted stock). On June 16, 2015, the Company granted 10,500 shares of restricted stock to certain executive officers, with a grant date fair value of $10.50 per share. Twenty percent of the shares awarded vest annually. Management recognizes expense for the fair value of those awards on a straight line basis over the requisite service period. The Company recognized approximately $5,500 in expense for the three month periods ended June 30, 2019 and 2018 and $11,000 in expense for the six month periods ended June 30, 2019 and 2018 in regard to those restricted stock awards. Expected future expense relating to the non-vested restricted shares at June 30, 2019 is $22,000 over a weighted average period of 1 year. There were no stock options outstanding as of June 30, 2019. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, and the actuarial gains and losses of the pension plan, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Concentration of Credit Risk and Interest-Rate Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Investment securities include securities backed by the U.S. Government and other highly rated instruments. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the State of New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State. The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans secured by real estate in the State of New York. The potential for interest-rate risk exists as a result of the shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. Advertising Costs It is the Company’s policy to expense advertising costs in the period in which they are incurred. Earnings Per Share Basic earnings per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding adjusted for unearned shares of the Employee Stock Ownership Plan (“ESOP”). Diluted earnings per share is computed by adjusting the weighted average number of shares of common stock outstanding to include the effect of outstanding stock options and compensation grants, if dilutive, using the treasury stock method. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20).” This update amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2021, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2020, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 “Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting”. This update expands earlier guidance on stock compensation to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially the same. This update is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2018. Because the Company does not have share-based payments issued to nonemployees, the adoption of this update on January 1, 2019, did not have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument. ASU No. 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). While early adoption is permitted, the Company does not expect to elect that option. The Company has begun its evaluation of the amended guidance including the potential impact on its Consolidated Financial Statements. The extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Upon adoption, any impact to the allowance for credit losses - currently allowance for loan and lease losses - will have an offsetting impact on retained earnings. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of this guidance on January 1, 2019 did not have a material effect on the Company’s consolidated financial statements. Subsequent Events The Company has evaluated all events subsequent to the balance sheet date of June 30, 2019 through the date of this report, and has determined that there are no subsequent events that require disclosure under FASB guidance. |
Mutual to Stock Conversion and
Mutual to Stock Conversion and Liquidation Account | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Mutual to Stock Conversion and Liquidation Account | 2. MUTUAL TO STOCK CONVERSION AND LIQUIDATION ACCOUNT On July 15, 2013, the Association completed its mutual-to-stock conversion, and the Company consummated its initial stock offering. The Company sold 793,500 shares of its common stock, including 55,545 shares purchased by the Association’s ESOP, at a price of $10.00 per share, in a subscription offering, for gross offering proceeds of $7,935,000. The cost of conversion and the stock offering were deferred and deducted from the proceeds of the offering. Conversion costs incurred totaled $845,000 resulting in net proceeds of $6.5 million after also deducting the shares acquired by the ESOP. In accordance with applicable federal conversion regulations, at the time of the completion of our mutual-to-stock conversion, the Company established a liquidation account in the Association in an amount equal to the Association’s total retained earnings as of the latest balance sheet date in the final prospectus used in the Conversion. Each eligible account holder or supplemental account holder is entitled to a proportionate share of this liquidation account in the event of a complete liquidation of the Association, and only in such event. This share will be reduced if the eligible account holder’s or supplemental account holder’s deposit balance falls below the amounts on the date of record as of any December 31 and will cease to exist if the account is closed. The liquidation account will never be increased despite any increase after conversion in the related deposit balance. The Company may not declare, pay a dividend on, or repurchase any of its capital stock, if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | 3. SECURITIES June 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 547,176 $ 11,350 $ - $ 558,526 Mortgage-backed securities 79,119 1,719 - 80,838 $ 626,295 $ 13,069 $ - $ 639,364 Securities available for sale: U.S. government and agency obligations $ 6,806,239 $ 6,145 $ 34,223 $ 6,778,161 Mortgage-backed securities 27,833,786 148,474 177,979 27,804,281 $ 34,640,025 $ 154,619 $ 212,202 $ 34,582,442 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 547,788 $ - $ 6,675 $ 541,113 Mortgage-backed securities 80,738 1,517 - 82,255 $ 628,526 $ 1,517 $ 6,675 $ 623,368 Securities available for sale: U.S. government and agency obligations $ 5,184,174 $ - $ 120,911 $ 5,063,263 Mortgage-backed securities 24,982,052 5,387 623,957 24,363,482 $ 30,166,226 $ 5,387 $ 744,868 $ 29,426,745 Mortgage-backed securities consist of securities guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac with amortized costs of $2.2 million, $15.7 million and $10.0 million, respectively, at June 30, 2019. ($249,000, $15.5 million and $9.3 million, respectively, at December 31, 2018). There were no sales and calls of securities held to maturity or available for sale for the three and six months ended June 30, 2019 and 2018, respectively. The following is a summary of the amortized cost and fair value of securities at June 30, 2019 and December 31, 2018, by remaining period to contractual maturity. Actual maturities may differ from these amounts because certain debt security issuers have the right to call or redeem their obligations prior to contractual maturity. In addition, mortgage backed securities that amortize monthly are listed in the period the security is legally set to pay off in full. June 30, 2019 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,799,140 $ 2,796,053 After one to five years 200,483 200,742 3,023,542 3,020,270 After five to ten years - - 1,717,257 1,707,838 After ten years 425,812 438,622 27,100,086 27,058,281 $ 626,295 $ 639,364 $ 34,640,025 $ 34,582,442 December 31, 2018 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ 201,208 $ 200,316 $ 999,797 $ 988,380 After one to five years - - 3,268,006 3,220,881 After five to ten years - - 1,933,095 1,877,699 After ten years 427,318 423,052 23,965,328 23,339,785 $ 628,526 $ 623,368 $ 30,166,226 $ 29,426,745 The following tables summarize the fair values and unrealized losses of securities with an unrealized loss at June 30, 2019 and December 31, 2018, segregated between securities that have been in an unrealized loss position for less than one year, or one year or longer, at the respective dates. June 30, 2019 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ - $ - $ - $ - Securities available for sale: U.S. government and agency obligations - - 4,472,776 34,223 Mortgage-backed securities 3,657,626 9,614 15,226,136 168,365 3,657,626 9,614 19,698,912 202,588 $ 3,657,626 $ 9,614 $ 19,698,912 $ 202,588 December 31, 2018 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ 340,797 $ 5,783 $ 200,316 $ 892 Securities available for sale: U.S. government and agency obligations - - 5,063,263 120,911 Mortgage-backed securities 2,322,591 13,840 19,182,761 610,117 2,322,591 13,840 24,246,024 731,028 $ 2,663,388 $ 19,623 $ 24,446,340 $ 731,920 The unrealized losses are primarily due to changes in market interest rates subsequent to purchase. A total of 38 and 45 securities were in an unrealized loss position at June 30, 2019 and December 31, 2018, respectively. The Company generally purchases securities issued by Government Sponsored Enterprises (GSE). Accordingly, it is expected that the GSE securities would not be settled at a price less than the Company’s amortized cost basis. The Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019 and December 31, 2018 since the decline in market value is attributable to changes in interest rates and not credit quality and the Company has the intent and ability to hold these investments until there is a full recovery of the unrealized loss, which may be at maturity. Securities available for sale, with a carrying value of approximately $5.3 million at June 30, 2019, have been pledged to secure advances from the Federal Home Loan Bank of New York. |
Loans Receivable, Net
Loans Receivable, Net | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans Receivable, Net | 4. LOANS RECEIVABLE, NET June 30, 2019 December 31, 2018 Mortgage loans: Residential 1-4 family $ 18,441,772 $ 18,239,205 Commercial and multi-family 16,521,767 15,640,233 Home equity lines of credit 10,403 27,725 34,973,942 33,907,163 Other loans: Student 6,938,995 8,024,588 Commercial 1,253,849 1,316,545 8,192,844 9,341,133 Total loans 43,166,786 43,248,296 Less: Deferred loan fees (costs and premiums), net (219,275 ) (261,061 ) Allowance for loan losses 434,063 407,832 214,788 146,771 $ 42,951,998 $ 43,101,525 In the ordinary course of business, the Company makes loans to its directors, executive officers, and their associates (related parties) on the same terms as those prevailing at the time of origination for comparable loans with other borrowers. The unpaid principal balances of related party loans were approximately $137,000 and $142,000 at June 30, 2019 and December 31, 2018, respectively. Activity in the allowance for loan losses is summarized as follows: Three Months Ended June 30, 2019 2018 Balance at beginning of period $ 407,832 $ 507,235 Provision for loan losses 26,231 - Balance at end of period $ 434,063 $ 507,235 Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 407,832 $ 507,235 Provision for loan losses 26,231 - Balance at end of period $ 434,063 $ 507,235 The allowance for loan losses consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For 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. There are no specific allowances as of June 30, 2019 and December 31, 2018. The general component covers pools of loans by loan class not considered impaired, as well as smaller balance homogeneous loans, such as one-to-four family real estate, home equity lines of credit and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions including the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Experience, ability, and depth of lending management and staff and the quality of the Company’s loan review system. 5. Volume and severity of past due, classified and nonaccrual loans. 6. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 7. Effect of external factors, such as competition and legal and regulatory requirements. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of pass, special mention, substandard, doubtful and loss. Loan classifications are defined as follows: ● Pass — These loans are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. ● Special Mention — These loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects. ● Substandard — These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. ● Doubtful — These loans have all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make the full recovery of our principal balance highly questionable and improbable on the basis of currently known facts, conditions, and values. The likelihood of a loss on an asset or portion of an asset classified as doubtful is high. Its classification as Loss is not appropriate, however, because pending events are expected to materially affect the amount of loss. ● Loss — These loans are considered uncollectible and of such little value that a charge-off is warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur. One of the primary methods the Company uses as an indicator of the credit quality of their portfolio is the regulatory classification system. The following table reflects the credit quality indicators by portfolio segment and class, at the dates indicated: June 30, 2019 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 18,201 $ 15,442 $ 10 $ 6,892 $ 1,254 $ 41,799 Special Mention - - - 22 - 22 Substandard 241 1,080 - 25 - 1,346 Total $ 18,442 $ 16,522 $ 10 $ 6,939 $ 1,254 $ 43,167 December 31, 2018 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 17,941 $ 15,640 $ 28 $ 8,000 $ 1,316 $ 42,925 Special Mention 49 - - - - 49 Substandard 249 - - 25 - 274 Total $ 18,239 $ 15,640 $ 28 $ 8,025 $ 1,316 $ 43,248 The following table provides information about loan delinquencies at the dates indicated: June 30, 2019 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ 252 $ - $ 252 $ 18,190 $ 18,442 $ - Commercial real estate and multi-family - 234 - 234 16,288 16,522 - Home equity lines of credit - - 9 9 1 10 9 Student loans 98 9 55 162 6,777 6,939 55 Other loans - - - - 1,254 1,254 - $ 98 $ 495 $ 64 $ 657 $ 42,510 $ 43,167 $ 64 December 31, 2018 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ - $ 49 $ 49 $ 18,190 $ 18,239 $ 49 Commercial real estate and multi-family - - - - 15,640 15,640 - Home equity lines of credit - - - - 28 28 - Student 5 33 - 38 7,987 8,025 - Other loans - - - - 1,316 1,316 - $ 5 $ 33 $ 49 $ 87 $ 43,161 $ 43,248 $ 49 The following is a summary of loans, by loan type, on which the accrual of income has been discontinued and loans that are contractually past due 90 days or more but have not been classified as non-accrual at the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Non-accrual loans: Residential 1-4 family $ 241 $ 249 Commercial real estate and multi-family - - Home equity lines of credit - - Student - - Other loans - - Total 241 249 Accruing loans delinquent 90 days or more: Residential 1-4 family - 49 Home equity lines of credit 9 - Student 55 - Total 64 49 Total non-performing loans $ 305 $ 249 The total amount of interest income on non-accrual loans that would have been recognized if interest on all such loans had been recorded based upon original contract terms amounted to approximately $2,700 and $7,000 for the three months ended June 30, 2019 and 2018, respectively. The total amount of interest income recognized on non-accrual loans amounted to approximately $0 and $4,000 during the three months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, 2019 and 2018, such interest income that would have been recognized on non-accrual loans totaled approximately $5,500 and $14,000, respectively. The total amount of interest income recognized on non-accrual loans amounted to approximately $0 and $7,000 during the six months ended June 30, 2019 and 2018, respectively. A loan is defined as impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due under the contractual terms of the loan agreement. The Company considers one-to four-family mortgage loans and consumer installment loans to be homogeneous and, therefore, does not generally evaluate them for impairment, unless they are considered troubled debt restructurings. All other loans are evaluated on an individual basis. The following table provides information about the Company’s impaired loans at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 Recorded Investment Unpaid Principal Balance Related Specific Allowance Residential 1-4 family $ 241 $ 241 $ - December 31, 2018 Recorded Investment Unpaid Principal Balance Related Specific Allowance Residential 1-4 family $ 249 $ 249 $ - The following tables provide information about the Company’s impaired loans for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Residential 1-4 family $ 243 $ - $ - $ - Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Residential 1-4 family $ 245 $ - $ - $ - The recorded investment in a loan modified in a troubled debt restructuring totaled $241,199 ($248,956 at December 31, 2018), which was current at the reporting dates and complied with the terms of its restructure agreement. Loans that were modified in a troubled debt restructuring represent concessions made to borrowers experiencing financial difficulties. The Company works with these borrowers to modify existing loan terms usually by extending maturities or reducing interest rates. The Company records an impairment loss, if any, based on the present value of expected future cash flows discounted at the original loan’s effective interest rate or the value of the underlying collateral property. Subsequently, these loans are individually evaluated for impairment. During the three and six months ended June 30, 2019 and 2018, there were no new TDR’s that occurred. The following tables present the activity in the allowance for loan losses by loan type for the periods indicated: Three Months Ended June 30, 2019 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 148 $ 1 29 $ 1 $ 118 $ 12 $ $ 408 Provision for loan losses 4 27 (1 ) (4 ) - - $ 26 Ending Balance $ 152 $ 156 $ - $ 114 $ 12 $ - $ 434 Three Months Ended June 30, 2018 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 327 $ 110 $ 4 $ 49 $ 10 $ 7 $ 507 Provision for loan losses (19 ) (2 ) (1 ) 23 3 (4 ) $ - Ending Balance $ 308 $ 108 $ 3 $ 72 $ 13 $ 3 $ 507 Six Months Ended June 30, 2019 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 145 $ 128 $ 1 $ 122 $ 12 $ - $ 408 Provision for loan losses 7 28 (1 ) (8 ) - - $ 26 Ending Balance $ 152 $ 156 $ - $ 114 $ 12 $ - $ 434 Six Months Ended June 30, 2018 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 318 $ 121 $ 4 $ 54 $ 10 $ - $ 507 Provision for loan losses (10 ) (13 ) (1 ) 18 3 3 $ - Ending Balance $ 308 $ 108 $ 3 $ 72 $ 13 $ 3 $ 507 See Note 8 “Contingencies” for an additional discussion on the Company’s student loan portfolio. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 5. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss included in equity are as follows: June 30, 2019 December 31, 2018 Unrealized net loss on pension plan $ (1,745,417 ) $ (1,779,119 ) Unrealized loss on securities available for sale (57,583 ) (739,481 ) Accumulated other comprehensive loss before taxes (1,803,000 ) (2,518,600 ) Tax effect 378,629 528,908 Accumulated other comprehensive loss $ (1,424,371 ) $ (1,989,692 ) |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | 6. REGULATORY CAPITAL The Association is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators, that if undertaken could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines that involve quantitative measures of the Association’s assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Association to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations. As of March 31, 2019 and December 31, 2018, the Association exceeded all capital adequacy requirements to which it was subject (see tables below). On January 1, 2015, the final rules implementing the Basel Committee on Banking Supervision capital guidelines for banking organizations (Basel III) regulatory capital framework and related Dodd-Frank Act changes became effective for the Association. These rules supersede the federal banking agencies’ general risk-based capital rules (Basel I). Full compliance with all of the final rule’s requirements is phased in over a multi-year transition period ending on January 1, 2019. Basel III revised minimum capital requirements and adjusted prompt corrective action thresholds. Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Association. The rules included a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0 percent to 6.0 percent, required a minimum ratio of total capital to risk-weighted assets of 8.0 percent, and required a minimum leverage ratio of 4.0 percent. A new capital conservation buffer, comprised of common equity Tier 1 capital, was also established above the regulatory minimum capital requirements. This conservation buffer was phased in beginning January 1, 2016 at 0.625 percent of risk-weighted assets and increased each subsequent year by an additional 0.625 percent until it reached its final level of 2.5 percent of risk-weighted assets on January 1, 2019. The final rule also revised the definition and calculation of Tier 1 capital, total capital and risk-weighted assets. The following table presents the Association’s actual capital positions and ratios at the dates indicated: To be Well To be Well Capitalized Under Capitalized With Minimum Capital Prompt Corrective Capital Conservation Actual Requirements Action Provisions Buffer Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) June 30, 2019 Tangible Capital $ 11,830 14.34 % $ 1,237 1.50 % N/A N/A N/A N/A Total Risked-based Capital 12,264 26.94 % 4,781 10.500 % 4,553 10.00 % 4,781 10.50 % Common Equity Tier 1 Capital 11,830 25.98 % 3,187 7.000 % 2,960 6.50 % 3,187 7.00 % Tier 1 Risk-based Capital 11,830 25.98 % 3,870 8.500 % 3,642 8.00 % 3,870 8.50 % Tier 1 Leverage Capital 11,830 14.34 % 3,299 4.000 % 4,124 5.00 % N/A N/A December 31, 2018 Tangible Capital 11,912 15.00 % 1,191 1.500 % N/A N/A N/A N/A Total Risked-based Capital 12,320 26.76 % 4,546 9.875 % 4,603 10.00 % 4,603 10.00 % Common Equity Tier 1 Capital 11,912 25.88 % 2,935 6.375 % 2,992 6.50 % 2,992 6.50 % Tier 1 Risk-based Capital 11,912 25.88 % 3,625 7.875 % 3,683 8.00 % 3,683 8.00 % Tier 1 Leverage Capital 11,912 15.00 % 3,177 4.000 % 3,971 5.00 % N/A N/A |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | 7. FAIR VALUE MEASUREMENTS AND DISCLOSURES A. Fair Value Measurements The Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 applies only to fair value measurements already required or permitted by other accounting standards and does not impose requirements for additional fair value measures. ASC Topic 820 was issued to increase consistency and comparability in reporting fair values. The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at June 30, 2019 and December 31, 2018. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as foreclosed real estate owned and certain impaired loans. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses. In accordance with ASC Topic 820, the Company groups its assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: ● Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets. ● Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. ● Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. The Company bases its fair values on the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. ASC Topic 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets that are measured on a recurring basis are limited to the available-for-sale securities portfolio. The available-for-sale portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. Substantially all of the available-for-sale portfolio consists of investment securities issued by government-sponsored enterprises. The fair values for substantially all of these securities are obtained from an independent securities broker. Based on the nature of the securities, the securities broker provides the Company with prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the portfolio. The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018: Fair Value Measurements Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) June 30, 2019: Securities available for sale $ 34,582,442 $ - $ 34,582,442 $ - December 31, 2018: Securities available for sale $ 29,426,745 $ - $ 29,426,745 $ - The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a non-recurring basis at June 30, 2019 and December 31, 2018: Fair Value Measurements Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) June 30, 2019: Impaired residential 1-4 family loan $ 241,199 $ - $ - $ 241,199 December 31, 2018: Impaired residential 1-4 family loan $ 248,956 $ - $ - $ 248,956 The above asset class was valued using estimated cash flows at a discounted interest rate of 6.0%. B. Fair Value Disclosures The following methods and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein. Cash and Cash Equivalents For cash and due from banks and federal funds sold, the carrying amount approximates the fair value (Level 1). Securities The fair value of securities is estimated based on bid quotations received from securities dealers, if available (Level 1). If a quoted market price was not available, fair value was estimated using quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued (Level 2). FHLB Stock The fair value for FHLB stock is its carrying value, since this is the amount for which it could be redeemed. There is no active market for this stock, and the Company is required to maintain a minimum balance based upon the unpaid principal of home mortgage loans (Level 2). Loans Receivable The net loan portfolio at June 30, 2019 has been valued using an exit price approach incorporating discounts for credit and liquidity. This is not comparable with the fair values used for December 31, 2018, which are based on entrance prices. For December 31, 2018, the loan portfolio was valued using a present value discounted cash flow where market prices are not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk (Level 3). Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand (Level 1). The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits with similar remaining maturities (Level 2). Short-Term Borrowings The carrying amounts of federal funds purchased, and other short-term borrowings maturing within 90 days approximate their fair values. Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 1). Long-Term Borrowings The fair value of long-term borrowings is estimated using discounted cash flow analysis based on the current incremental borrowing rates for similar types of borrowing arrangements (Level 2). Off-Balance-Sheet Instruments In the ordinary course of business the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the financial statements when they are funded. Their fair value would approximate fees currently charged to enter into similar agreements. The carrying values and estimated fair values of financial instruments are as follows (in thousands): June 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value (In Thousands) Financial assets: Cash and cash equivalents $ 1,602 $ 1,602 $ 1,218 $ 1,218 Securities held to maturity 626 639 629 623 Securities available for sale 34,582 34,582 29,427 29,427 Loans receivable 42,952 42,441 43,102 41,867 FHLB and other stock, at cost 288 288 331 331 Accrued interest receivable 575 575 517 517 Financial liabilities: Deposits 69,349 69,609 63,658 63,771 FHLB Advances 2,900 2,905 3,750 3,754 The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all of the financial instruments were offered for sale. In addition, the fair value estimates were based on existing on-and-off balance sheet financial instruments without attempting to value the anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment and advances from borrowers for taxes and insurance. In addition, the tax ramifications related to the realization of the unrealized gains and losses have a significant effect on fair value estimates and have not been considered in any of the estimates. Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. The lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 8. CONTINGENCIES The Company has a $6.9 million student loan portfolio of which $3.1 million was insured by ReliaMax Surety Company (“ReliaMax”). The Company has approximately $67,000 in unamortized premiums paid to ReliaMax to insure these student loans. On June 27, 2018, the South Dakota Division of Insurance was granted a petition to place ReliaMax into liquidation. While the Company expects to recover some of these premiums through the liquidation of ReliaMax as well as through a state insurance guarantee fund, we cannot estimate the amount of any loss or recovery at the present time. The Company filed a claim against ReliaMax in 2018 and we expect to have an estimate of our recovery sometime during 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements are comprised of the accounts of Sunnyside Bancorp. Inc., and its wholly-owned subsidiary, Sunnyside Federal Savings and Loan Association of Irvington (“Sunnyside Federal” or the “Association”). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Business | Business Sunnyside Federal is a community-oriented savings institution whose primary business is accepting deposits from customers within its market area (Westchester County, New York) and investing those funds in mortgage loans secured by one-to-four family residences and in mortgage-backed and other securities. To a lesser extent, funds are invested in multi-family and commercial mortgage loans, commercial loans, and consumer loans. Customer deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation. As a federally-chartered savings association, Sunnyside Federal’s primary regulator is the Office of the Controller of the Currency (the “OCC”). |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with instructions for Form 10-Q, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. However, such information presented reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of the Company’s management, necessary for a fair statement of results for the interim period. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ended December 31, 2019, or any other future interim period. The unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less to be cash equivalents. |
Investment and Mortgage-backed Securities | Investment and Mortgage-Backed Securities Securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Securities classified as available-for-sale securities are reported at fair value, with unrealized holding gains or losses reported in a separate component of retained earnings. As of June 30, 2019 and December 31, 2018, the Company had no securities classified as held for trading. The Company conducts a periodic review and evaluation of the securities portfolio to determine if a decline in the fair value of any security below its cost basis is other-than-temporary. The evaluation of other-than-temporary impairment considers the duration and severity of the impairment, the Company’s intent and ability to hold the securities and assessments of the reason for the decline in value and the likelihood of a near-term recovery. If such a decline is deemed other-than-temporary, the security is written down to a new cost basis and the resulting loss is charged to income as a component of non-interest expense. |
Loans Receivable | Loans Receivable Loans receivable are stated at unpaid principal balances less the allowance for loan losses and net deferred loan fees. Recognition of interest on the accrual method is generally discontinued when interest or principal payments are ninety days or more in arrears, or when other factors indicate that the collection of such amounts is doubtful. At that time, a loan is placed on a nonaccrual status, and all previously accrued and uncollected interest is reversed against interest income in the current period. Interest on such loans, if appropriate, is recognized as income when payments are received. A loan is returned to an accrual status when factors indicating doubtful collectability no longer exist. |
Allowance for Loan Losses | Allowance for Loan Losses An allowance for loan losses is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the provision for loan losses considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. The Company utilizes a two tier approach: (1) identification of problem loans and establishment of specific loss allowances on such loans; and (2) establishment of general valuation allowances on the remainder of its loan portfolio. The Company maintains a loan review system which allows for a periodic review of its loan portfolio and the early identification of potential problem loans. Such system takes into consideration, among other things, delinquency status, size of loans, type of collateral and financial condition of the borrowers. Specific loan losses are established for identified loans based on a review of such information and appraisals of the underlying collateral. General loan losses are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions, and management’s judgment. Although management believes that adequate specific and general loan loss allowances are established, actual losses are dependent upon future events and, as such, further additions to the level of specific and general loan loss allowances may be necessary. A loan evaluated for impairment is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. An insignificant payment delay, which is defined as up to ninety days by the Company, will not cause a loan to be classified as impaired. A loan is not impaired during a period of delay in payment if the Company expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. The amount of loan impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. All loans identified as impaired are evaluated independently. The Company does not aggregate such loans for evaluation purposes. Payments received on impaired loans are applied first to accrued interest receivable and then to principal. |
Federal Home Loan Bank of New York Stock | Federal Home Loan Bank of New York stock As a member of the Federal Home Loan Bank of New York (“FHLB”), the Company is required to acquire and hold shares of FHLB Class B stock. The holding requirement varies based on the Company’s activities, primarily its outstanding borrowings, with the FHLB. The investment in FHLB stock is carried at cost. The Company conducts a periodic review and evaluation of its FHLB stock to determine if any impairment exists. |
Premises and Equipment | Premises and Equipment Premises and equipment are comprised of land, building, and furniture, fixtures, and equipment, at cost, less accumulated depreciation. Depreciation charges are computed on the straight-line method over the following estimated useful lives: Building and improvements 5 to 40 years Furniture, fixtures and equipment 2 to 10 years |
Bank-owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance (“BOLI”) is accounted for in accordance with FASB guidance. The cash surrender value of BOLI is recorded on the statement of financial condition as an asset and the change in the cash surrender value is recorded as non-interest income. The amount by which any death benefits received exceeds a policy’s cash surrender value is recorded in non-interest income at the time of receipt. A liability is also recorded on the statement of financial condition for postretirement death benefits provided by the split-dollar endorsement policy. A corresponding expense is recorded in non-interest expense for the accrual of benefits over the period during which employees provide services to earn the benefits. |
Income Taxes | Income Taxes Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax return differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset which is not likely to be realized. |
Employee Benefits | Employee Benefits Defined Benefit Plans: The accounting guidance related to retirement benefits requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize, in comprehensive income, changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. The accounting guidance requires that plan assets and benefit obligations be measured as of the date of the employer’s fiscal year-end statement of financial condition. 401(K) Plan: The Company has a 401(k) plan covering substantially all employees. The Company matches 50% of the first 6% contributed by participants and recognizes expense as its contributions are made. Employee Stock Ownership Plan: The employee stock ownership plan (ESOP) is accounted for in accordance with the provisions of ASC 718-40, “Employers’ Accounting for Employee Stock Ownership Plans.” The funds borrowed by the ESOP from the Company to purchase the Company’s common stock are being repaid from the Association’s contributions over a period of up to 25 years. The Company’s common stock not yet allocated to participants is recorded as a reduction of stockholders’ equity at cost. Compensation expense for the ESOP is based on the market price of the Company’s stock and is recognized as shares are committed to be released to participants. Equity Incentive Plan: On July 17, 2014, the Board of Directors adopted the Sunnyside Bancorp, Inc. 2014 Equity Incentive Plan (the “Stock Incentive Plan”) which was approved by shareholders at the Company’s 2014 Annual Meeting of Shareholders held on September 16, 2014. Stock options and restricted stock may be granted to directors, officers and other employees of the Company. The maximum number of shares which may be issued upon exercise of the options under the plan cannot exceed 79,350 shares. The maximum number of shares of stock that may be issued as restricted stock awards cannot exceed 23,805. The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024. Under FASB ASC Topic 718, the Company will recognize compensation expense in its income statement over the requisite service period or performance period based on the grant date fair value of stock options and other equity-based compensation (such as restricted stock). On June 16, 2015, the Company granted 10,500 shares of restricted stock to certain executive officers, with a grant date fair value of $10.50 per share. Twenty percent of the shares awarded vest annually. Management recognizes expense for the fair value of those awards on a straight line basis over the requisite service period. The Company recognized approximately $5,500 in expense for the three month periods ended June 30, 2019 and 2018 and $11,000 in expense for the six month periods ended June 30, 2019 and 2018 in regard to those restricted stock awards. Expected future expense relating to the non-vested restricted shares at June 30, 2019 is $22,000 over a weighted average period of 1 year. There were no stock options outstanding as of June 30, 2019. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, and the actuarial gains and losses of the pension plan, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. |
Concentration of Credit Risk and Interest-rate Risk | Concentration of Credit Risk and Interest-Rate Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Investment securities include securities backed by the U.S. Government and other highly rated instruments. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the State of New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State. The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans secured by real estate in the State of New York. The potential for interest-rate risk exists as a result of the shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. |
Advertising Costs | Advertising Costs It is the Company’s policy to expense advertising costs in the period in which they are incurred. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding adjusted for unearned shares of the Employee Stock Ownership Plan (“ESOP”). Diluted earnings per share is computed by adjusting the weighted average number of shares of common stock outstanding to include the effect of outstanding stock options and compensation grants, if dilutive, using the treasury stock method. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20).” This update amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2021, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2020, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 “Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting”. This update expands earlier guidance on stock compensation to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially the same. This update is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2018. Because the Company does not have share-based payments issued to nonemployees, the adoption of this update on January 1, 2019, did not have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument. ASU No. 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). While early adoption is permitted, the Company does not expect to elect that option. The Company has begun its evaluation of the amended guidance including the potential impact on its Consolidated Financial Statements. The extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Upon adoption, any impact to the allowance for credit losses - currently allowance for loan and lease losses - will have an offsetting impact on retained earnings. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of this guidance on January 1, 2019 did not have a material effect on the Company’s consolidated financial statements. |
Subsequent Events | Subsequent Events The Company has evaluated all events subsequent to the balance sheet date of June 30, 2019 through the date of this report, and has determined that there are no subsequent events that require disclosure under FASB guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Premises and Equipment Estimated Useful Lives | Depreciation charges are computed on the straight-line method over the following estimated useful lives: Building and improvements 5 to 40 years Furniture, fixtures and equipment 2 to 10 years |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Held to Maturity and Available for Sale Securities | June 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 547,176 $ 11,350 $ - $ 558,526 Mortgage-backed securities 79,119 1,719 - 80,838 $ 626,295 $ 13,069 $ - $ 639,364 Securities available for sale: U.S. government and agency obligations $ 6,806,239 $ 6,145 $ 34,223 $ 6,778,161 Mortgage-backed securities 27,833,786 148,474 177,979 27,804,281 $ 34,640,025 $ 154,619 $ 212,202 $ 34,582,442 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 547,788 $ - $ 6,675 $ 541,113 Mortgage-backed securities 80,738 1,517 - 82,255 $ 628,526 $ 1,517 $ 6,675 $ 623,368 Securities available for sale: U.S. government and agency obligations $ 5,184,174 $ - $ 120,911 $ 5,063,263 Mortgage-backed securities 24,982,052 5,387 623,957 24,363,482 $ 30,166,226 $ 5,387 $ 744,868 $ 29,426,745 |
Schedule of Amortized Cost and Fair Value of Securities by Remaining Period to Contractual Maturity | June 30, 2019 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,799,140 $ 2,796,053 After one to five years 200,483 200,742 3,023,542 3,020,270 After five to ten years - - 1,717,257 1,707,838 After ten years 425,812 438,622 27,100,086 27,058,281 $ 626,295 $ 639,364 $ 34,640,025 $ 34,582,442 December 31, 2018 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ 201,208 $ 200,316 $ 999,797 $ 988,380 After one to five years - - 3,268,006 3,220,881 After five to ten years - - 1,933,095 1,877,699 After ten years 427,318 423,052 23,965,328 23,339,785 $ 628,526 $ 623,368 $ 30,166,226 $ 29,426,745 |
Schedule of Fair Values and Unrealized Losses of Securities in Unrealized Loss Position | June 30, 2019 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ - $ - $ - $ - Securities available for sale: U.S. government and agency obligations - - 4,472,776 34,223 Mortgage-backed securities 3,657,626 9,614 15,226,136 168,365 3,657,626 9,614 19,698,912 202,588 $ 3,657,626 $ 9,614 $ 19,698,912 $ 202,588 December 31, 2018 Under One Year One Year or More Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Securities held to maturity: State, county, and municipal obligations $ 340,797 $ 5,783 $ 200,316 $ 892 Securities available for sale: U.S. government and agency obligations - - 5,063,263 120,911 Mortgage-backed securities 2,322,591 13,840 19,182,761 610,117 2,322,591 13,840 24,246,024 731,028 $ 2,663,388 $ 19,623 $ 24,446,340 $ 731,920 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Loans Receivable, Net | June 30, 2019 December 31, 2018 Mortgage loans: Residential 1-4 family $ 18,441,772 $ 18,239,205 Commercial and multi-family 16,521,767 15,640,233 Home equity lines of credit 10,403 27,725 34,973,942 33,907,163 Other loans: Student 6,938,995 8,024,588 Commercial 1,253,849 1,316,545 8,192,844 9,341,133 Total loans 43,166,786 43,248,296 Less: Deferred loan fees (costs and premiums), net (219,275 ) (261,061 ) Allowance for loan losses 434,063 407,832 214,788 146,771 $ 42,951,998 $ 43,101,525 |
Schedule of Activity in Allowance for Loan Losses | Activity in the allowance for loan losses is summarized as follows: Three Months Ended June 30, 2019 2018 Balance at beginning of period $ 407,832 $ 507,235 Provision for loan losses 26,231 - Balance at end of period $ 434,063 $ 507,235 Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 407,832 $ 507,235 Provision for loan losses 26,231 - Balance at end of period $ 434,063 $ 507,235 |
Schedule of Credit Quality Indicators by Portfolio Segment | The following table reflects the credit quality indicators by portfolio segment and class, at the dates indicated: June 30, 2019 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 18,201 $ 15,442 $ 10 $ 6,892 $ 1,254 $ 41,799 Special Mention - - - 22 - 22 Substandard 241 1,080 - 25 - 1,346 Total $ 18,442 $ 16,522 $ 10 $ 6,939 $ 1,254 $ 43,167 December 31, 2018 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 17,941 $ 15,640 $ 28 $ 8,000 $ 1,316 $ 42,925 Special Mention 49 - - - - 49 Substandard 249 - - 25 - 274 Total $ 18,239 $ 15,640 $ 28 $ 8,025 $ 1,316 $ 43,248 |
Schedule of Information About Loan Delinquencies | The following table provides information about loan delinquencies at the dates indicated: June 30, 2019 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ 252 $ - $ 252 $ 18,190 $ 18,442 $ - Commercial real estate and multi-family - 234 - 234 16,288 16,522 - Home equity lines of credit - - 9 9 1 10 9 Student loans 98 9 55 162 6,777 6,939 55 Other loans - - - - 1,254 1,254 - $ 98 $ 495 $ 64 $ 657 $ 42,510 $ 43,167 $ 64 December 31, 2018 90 Days or More 30-59 60-89 90 Days Past Due Days Days or More Total Current Total and Past Due Past Due Past Due Past Due Loans Loans Accruing (In thousands) Residential 1-4 family $ - $ - $ 49 $ 49 $ 18,190 $ 18,239 $ 49 Commercial real estate and multi-family - - - - 15,640 15,640 - Home equity lines of credit - - - - 28 28 - Student 5 33 - 38 7,987 8,025 - Other loans - - - - 1,316 1,316 - $ 5 $ 33 $ 49 $ 87 $ 43,161 $ 43,248 $ 49 |
Schedule of Loans Accrual of Income has Been Discontinued and Loans Past Due but Not Classified as Non-accrual | The following is a summary of loans, by loan type, on which the accrual of income has been discontinued and loans that are contractually past due 90 days or more but have not been classified as non-accrual at the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Non-accrual loans: Residential 1-4 family $ 241 $ 249 Commercial real estate and multi-family - - Home equity lines of credit - - Student - - Other loans - - Total 241 249 Accruing loans delinquent 90 days or more: Residential 1-4 family - 49 Home equity lines of credit 9 - Student 55 - Total 64 49 Total non-performing loans $ 305 $ 249 |
Schedule of Loans Evaluated for Impairment by Loan Type | The following table provides information about the Company’s impaired loans at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 Recorded Investment Unpaid Principal Balance Related Specific Allowance Residential 1-4 family $ 241 $ 241 $ - December 31, 2018 Recorded Investment Unpaid Principal Balance Related Specific Allowance Residential 1-4 family $ 249 $ 249 $ - The following tables provide information about the Company’s impaired loans for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Residential 1-4 family $ 243 $ - $ - $ - Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Residential 1-4 family $ 245 $ - $ - $ - |
Schedule of Activity in Allowance for Loan Losses by Loan Type | The following tables present the activity in the allowance for loan losses by loan type for the periods indicated: Three Months Ended June 30, 2019 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 148 $ 1 29 $ 1 $ 118 $ 12 $ $ 408 Provision for loan losses 4 27 (1 ) (4 ) - - $ 26 Ending Balance $ 152 $ 156 $ - $ 114 $ 12 $ - $ 434 Three Months Ended June 30, 2018 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 327 $ 110 $ 4 $ 49 $ 10 $ 7 $ 507 Provision for loan losses (19 ) (2 ) (1 ) 23 3 (4 ) $ - Ending Balance $ 308 $ 108 $ 3 $ 72 $ 13 $ 3 $ 507 Six Months Ended June 30, 2019 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 145 $ 128 $ 1 $ 122 $ 12 $ - $ 408 Provision for loan losses 7 28 (1 ) (8 ) - - $ 26 Ending Balance $ 152 $ 156 $ - $ 114 $ 12 $ - $ 434 Six Months Ended June 30, 2018 Mortgage Loans Commercial Residential 1-4 Family and Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 318 $ 121 $ 4 $ 54 $ 10 $ - $ 507 Provision for loan losses (10 ) (13 ) (1 ) 18 3 3 $ - Ending Balance $ 308 $ 108 $ 3 $ 72 $ 13 $ 3 $ 507 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss included in equity are as follows: June 30, 2019 December 31, 2018 Unrealized net loss on pension plan $ (1,745,417 ) $ (1,779,119 ) Unrealized loss on securities available for sale (57,583 ) (739,481 ) Accumulated other comprehensive loss before taxes (1,803,000 ) (2,518,600 ) Tax effect 378,629 528,908 Accumulated other comprehensive loss $ (1,424,371 ) $ (1,989,692 ) |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Actual Capital Positions and Ratios | The following table presents the Association’s actual capital positions and ratios at the dates indicated: To be Well To be Well Capitalized Under Capitalized With Minimum Capital Prompt Corrective Capital Conservation Actual Requirements Action Provisions Buffer Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) June 30, 2019 Tangible Capital $ 11,830 14.34 % $ 1,237 1.50 % N/A N/A N/A N/A Total Risked-based Capital 12,264 26.94 % 4,781 10.500 % 4,553 10.00 % 4,781 10.50 % Common Equity Tier 1 Capital 11,830 25.98 % 3,187 7.000 % 2,960 6.50 % 3,187 7.00 % Tier 1 Risk-based Capital 11,830 25.98 % 3,870 8.500 % 3,642 8.00 % 3,870 8.50 % Tier 1 Leverage Capital 11,830 14.34 % 3,299 4.000 % 4,124 5.00 % N/A N/A December 31, 2018 Tangible Capital 11,912 15.00 % 1,191 1.500 % N/A N/A N/A N/A Total Risked-based Capital 12,320 26.76 % 4,546 9.875 % 4,603 10.00 % 4,603 10.00 % Common Equity Tier 1 Capital 11,912 25.88 % 2,935 6.375 % 2,992 6.50 % 2,992 6.50 % Tier 1 Risk-based Capital 11,912 25.88 % 3,625 7.875 % 3,683 8.00 % 3,683 8.00 % Tier 1 Leverage Capital 11,912 15.00 % 3,177 4.000 % 3,971 5.00 % N/A N/A |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis and Non-Recurring Basis | The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018: Fair Value Measurements Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) June 30, 2019: Securities available for sale $ 34,582,442 $ - $ 34,582,442 $ - December 31, 2018: Securities available for sale $ 29,426,745 $ - $ 29,426,745 $ - The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a non-recurring basis at June 30, 2019 and December 31, 2018: Fair Value Measurements Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) June 30, 2019: Impaired residential 1-4 family loan $ 241,199 $ - $ - $ 241,199 December 31, 2018: Impaired residential 1-4 family loan $ 248,956 $ - $ - $ 248,956 |
Schedule of Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of financial instruments are as follows (in thousands): June 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value (In Thousands) Financial assets: Cash and cash equivalents $ 1,602 $ 1,602 $ 1,218 $ 1,218 Securities held to maturity 626 639 629 623 Securities available for sale 34,582 34,582 29,427 29,427 Loans receivable 42,952 42,441 43,102 41,867 FHLB and other stock, at cost 288 288 331 331 Accrued interest receivable 575 575 517 517 Financial liabilities: Deposits 69,349 69,609 63,658 63,771 FHLB Advances 2,900 2,905 3,750 3,754 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jun. 16, 2015 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 17, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
ESOP repayment period for common stock borrowed from company | 25 years | |||||
Stock incentive plan, description | The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024. | |||||
401(K) Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Employer matching contribution percent of match | 50.00% | |||||
Maximum annual contributions per employee percent | 6.00% | |||||
Stock Option [Member] | 2014 Equity Incentive Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Maximum number of shares which may be issued | 79,350 | |||||
Restricted Stock [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted stock awards expenses | $ 5,500 | $ 5,500 | $ 11,000 | $ 11,000 | ||
Expected future expense relating to non-vested restricted shares | $ 22,000 | |||||
Vesting period of non-vested restricted shares | 1 year | |||||
Restricted Stock [Member] | Executive Officers [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares granted | 10,500 | |||||
Grant date fair value, per share | $ 10.50 | |||||
Vesting percentage | 20.00% | |||||
Restricted Stock [Member] | 2014 Equity Incentive Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Maximum number of shares which may be issued | 23,805 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Premises and Equipment Estimated Useful Lives (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Building and Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Building and Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Mutual to Stock Conversion an_2
Mutual to Stock Conversion and Liquidation Account (Details Narrative) - USD ($) | Jul. 15, 2013 | Jun. 30, 2019 | Dec. 31, 2018 |
Equity [Abstract] | |||
Shares of common stock sold | 793,500 | 793,500 | 793,500 |
Shares purchased by ESOP | 55,545 | ||
ESOP purchase price per share | $ 10 | ||
Gross offering proceeds | $ 7,935,000 | ||
Conversion costs | 845,000 | ||
Net proceeds after deducting shares acquired by ESOP | $ 6,500,000 |
Securities (Details Narrative)
Securities (Details Narrative) | Jun. 30, 2019USD ($)Securities | Dec. 31, 2018USD ($)Securities | Jun. 30, 2018USD ($) |
Securities held to maturity or available for sale | |||
Number of securities in an unrealized loss position | Securities | 38 | 45 | |
Collateral Pledged [Member] | Federal Home Loan Bank [Member] | |||
Available for sale securities pledged | $ 5,300,000 | ||
Guaranteed by Ginnie Mae [Member] | |||
Mortgage-backed securities | 2,200,000 | $ 249,000 | |
Guaranteed by Fannie Mae [Member] | |||
Mortgage-backed securities | 15,700,000 | 15,500,000 | |
Guaranteed by Freddie Mac [Member] | |||
Mortgage-backed securities | $ 10,000,000 | $ 9,300,000 |
Securities - Schedule of Held t
Securities - Schedule of Held to Maturity and Available for Sale Securities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Securities held to maturity: Amortized Cost | $ 626,295 | $ 628,526 |
Securities held to maturity: Gross Unrealized Gains | 13,069 | 1,517 |
Securities held to maturity: Gross Unrealized Losses | 6,675 | |
Securities held to maturity: Fair Value | 639,364 | 623,368 |
Securities available for sale: Amortized Cost | 34,640,025 | 30,166,226 |
Securities available for sale: Gross Unrealized Gains | 154,619 | 5,387 |
Securities available for sale: Gross Unrealized Losses | 212,202 | 744,868 |
Securities available for sale: Fair Value | 34,582,442 | 29,426,745 |
State, County and Municipal Obligations [Member] | ||
Securities held to maturity: Amortized Cost | 547,176 | 547,788 |
Securities held to maturity: Gross Unrealized Gains | 11,350 | |
Securities held to maturity: Gross Unrealized Losses | 6,675 | |
Securities held to maturity: Fair Value | 558,526 | 541,113 |
Mortgage Backed Securities [Member] | ||
Securities held to maturity: Amortized Cost | 79,119 | 80,738 |
Securities held to maturity: Gross Unrealized Gains | 1,719 | 1,517 |
Securities held to maturity: Gross Unrealized Losses | ||
Securities held to maturity: Fair Value | 80,838 | 82,255 |
Securities available for sale: Amortized Cost | 27,833,786 | 24,982,052 |
Securities available for sale: Gross Unrealized Gains | 148,474 | 5,387 |
Securities available for sale: Gross Unrealized Losses | 177,979 | 623,957 |
Securities available for sale: Fair Value | 27,804,281 | 24,363,482 |
U.S. Government and Agency Obligations [Member] | ||
Securities available for sale: Amortized Cost | 6,806,239 | 5,184,174 |
Securities available for sale: Gross Unrealized Gains | 6,145 | |
Securities available for sale: Gross Unrealized Losses | 34,223 | 120,911 |
Securities available for sale: Fair Value | $ 6,778,161 | $ 5,063,263 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Securities by Remaining Period to Contractual Maturity (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Held to Maturity, Within one year, Amortized Cost | $ 201,208 | |
Held to Maturity, After one to five years, Amortized Cost | 200,483 | |
Held to Maturity, After five to ten years, Amortized Cost | ||
Held to Maturity, After ten years, Amortized Cost | 425,812 | 427,318 |
Held to Maturity, Amortized Cost | 626,295 | 628,526 |
Held to maturity, Within one year, Fair Value | 200,316 | |
Held to maturity, After one to five years, Fair Value | 200,742 | |
Held to Maturity, After five to ten years, Fair Value | ||
Held to Maturity, After ten years, Fair Value | 438,622 | 423,052 |
Held to Maturity, Fair Value | 639,364 | 623,368 |
Available for Sale, Within one year, Amortized Cost | 2,799,140 | 999,797 |
Available for Sale, After one to five years, Amortized Cost | 3,023,542 | 3,268,006 |
Available for Sale, After five to ten years, Amortized Cost | 1,717,257 | 1,933,095 |
Available for Sale, After ten years, Amortized Cost | 27,100,086 | 23,965,328 |
Available for Sale, Amortized Cost | 34,640,025 | 30,166,226 |
Available for Sale, Within one year, Fair Value | 2,796,053 | 988,380 |
Available for Sale, After one to five years, Fair Value | 3,020,270 | 3,220,881 |
Available for Sale, After five to ten years, Fair Value | 1,707,838 | 1,877,699 |
Available for Sale, After ten years, Fair Value | 27,058,281 | 23,339,785 |
Available for Sale, Fair Value | $ 34,582,442 | $ 29,426,745 |
Securities - Schedule of Fair V
Securities - Schedule of Fair Values and Unrealized Losses of Securities in Unrealized Loss Position (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available for sale: Under One Year, Fair Value | $ 3,657,626 | $ 2,322,591 |
Securities available for sale: Under One Year, Gross Unrealized Loss | 9,614 | 13,840 |
Securities available for sale: One Year or More, Fair Value | 19,698,912 | 24,246,024 |
Securities available for sale: One Year or More, Gross Unrealized Loss | 202,588 | 731,028 |
Total Securities: Under One Year, Fair Value | 3,657,626 | 2,663,388 |
Total Securities: Under One Year, Gross Unrealized Loss | 9,614 | 19,623 |
Total Securities: One Year or More, Fair Value | 19,698,912 | 24,446,340 |
Total Securities: One Year or More, Gross Unrealized Loss | 202,588 | 731,920 |
State, County and Municipal Obligations [Member] | ||
Securities held to maturity: Under One Year, Fair Value | 340,797 | |
Securities held to maturity: Under One Year, Gross Unrealized Loss | 5,783 | |
Securities held to maturity: One Year or More, Fair Value | 200,316 | |
Securities held to maturity: One Year or More, Gross Unrealized Loss | 892 | |
U.S. Government and Agency Obligations [Member] | ||
Securities available for sale: Under One Year, Fair Value | ||
Securities available for sale: Under One Year, Gross Unrealized Loss | ||
Securities available for sale: One Year or More, Fair Value | 4,472,776 | 5,063,263 |
Securities available for sale: One Year or More, Gross Unrealized Loss | 34,223 | 120,911 |
Mortgage Backed Securities [Member] | ||
Securities available for sale: Under One Year, Fair Value | 3,657,626 | 2,322,591 |
Securities available for sale: Under One Year, Gross Unrealized Loss | 9,614 | 13,840 |
Securities available for sale: One Year or More, Fair Value | 15,226,136 | 19,182,761 |
Securities available for sale: One Year or More, Gross Unrealized Loss | $ 168,365 | $ 610,117 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||||
Unpaid principal balances of related party loans | $ 137,000 | $ 137,000 | $ 142,000 | ||
Specific allowances | |||||
Interest income on non-accrual loans | 2,700 | $ 7,000 | 5,500 | $ 14,000 | |
Amount of interest recognized on non-accrual loans | $ 0 | $ 4,000 | 0 | $ 7,000 | |
Debt restructuring | $ 241,199 | $ 248,956 |
Loans Receivable, Net - Schedul
Loans Receivable, Net - Schedule of Loans Receivable, Net (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 43,166,786 | $ 43,248,296 | ||||
Less: Deferred loan fees (costs) and (premiums), net | (219,275) | (261,061) | ||||
Less: Allowance for loan losses | 434,063 | $ 407,832 | 407,832 | $ 507,235 | $ 507,235 | $ 507,235 |
Total loans after deduction of deferred loan fees (costs) and (premiums), net and allowance for loan losses | 214,788 | 146,771 | ||||
Total loans, net | 42,951,998 | 43,101,525 | ||||
Mortgage Loans Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 34,973,942 | 33,907,163 | ||||
Commercial and Other Loans Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 8,192,844 | 9,341,133 | ||||
Residential 1-4 Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 18,441,772 | 18,239,205 | ||||
Commercial and Multi-Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 16,521,767 | 15,640,233 | ||||
Home Equity Lines of Credit [Member] | Mortgage Loans Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 10,403 | 27,725 | ||||
Student Loans [Member] | Commercial and Other Loans Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 6,938,995 | 8,024,588 | ||||
Commercial Loans [Member] | Commercial and Other Loans Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 1,253,849 | $ 1,316,545 |
Loans Receivable, Net - Sched_2
Loans Receivable, Net - Schedule of Activity in Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Receivables [Abstract] | ||||
Balance at beginning of period | $ 407,832 | $ 507,235 | $ 407,832 | $ 507,235 |
Provision for loan losses | 26,231 | 26,231 | ||
Balance at end of period | $ 434,063 | $ 507,235 | $ 434,063 | $ 507,235 |
Loans Receivable, Net - Sched_3
Loans Receivable, Net - Schedule of Credit Quality Indicators by Portfolio Segment (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 43,166,786 | $ 43,248,296 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 41,999,000 | 42,925,000 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 22,000 | 49,000 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,346,000 | 274,000 |
Student Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,939,000 | 8,025,000 |
Student Loan [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,892,000 | 8,000,000 |
Student Loan [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 22,000 | |
Student Loan [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 25,000 | 25,000 |
Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 34,973,942 | 33,907,163 |
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 18,441,772 | 18,239,205 |
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 18,201,000 | 17,941,000 |
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 49,000 | |
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 241,000 | 249,000 |
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 16,522,000 | 15,640,000 |
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 15,442,000 | 15,640,000 |
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | ||
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,080,000 | |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 10,000 | 28,000 |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 10,000 | 28,000 |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | ||
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | ||
Commercial and Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,254,000 | 1,316,000 |
Commercial and Other [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,254,000 | 1,316,000 |
Commercial and Other [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | ||
Commercial and Other [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | ||
Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 43,167,000 | $ 43,248,000 |
Loans Receivable, Net - Sched_4
Loans Receivable, Net - Schedule of Information About Loan Delinquencies (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 657,000 | $ 87,000 |
Current Loans | 42,510,000 | 43,161,000 |
Total Loans | 43,166,786 | 43,248,296 |
90 Days or More Past Due and Accruing | 64,000 | 49,000 |
Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 34,973,942 | 33,907,163 |
Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current Loans | 1,254,000 | 1,316,000 |
Total Loans | 1,254,000 | 1,316,000 |
90 Days or More Past Due and Accruing | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 98,000 | 5,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 495,000 | 33,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 64,000 | 49,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Residential 1-4 Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 252,000 | 49,000 |
Current Loans | 18,190,000 | 18,190,000 |
Total Loans | 18,441,772 | 18,239,205 |
90 Days or More Past Due and Accruing | 49,000 | |
Residential 1-4 Family Mortgage Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Residential 1-4 Family Mortgage Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 252,000 | |
Residential 1-4 Family Mortgage Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 49,000 | |
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 234,000 | |
Current Loans | 16,288,000 | 15,640,000 |
Total Loans | 16,522,000 | 15,640,000 |
90 Days or More Past Due and Accruing | ||
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 234,000 | |
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Home Equity Line of Credit [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,000 | |
Current Loans | 1,000 | 28,000 |
Total Loans | 10,000 | 28,000 |
90 Days or More Past Due and Accruing | 9,000 | |
Home Equity Line of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Home Equity Line of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Home Equity Line of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,000 | |
Student Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 162,000 | 38,000 |
Current Loans | 6,777,000 | 7,987,000 |
Total Loans | 6,939,000 | 8,025,000 |
90 Days or More Past Due and Accruing | 55,000 | |
Student Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 98,000 | 5,000 |
Student Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,000 | 33,000 |
Student Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 55,000 |
Loans Receivable, Net - Schedu
Loans Receivable, Net - Schedule of Loans Accrual of Income has Been Discontinued and Loans Past Due but Not Classified as Non-accrual (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | $ 241,000 | $ 249,000 |
Accruing loans delinquent 90 days or more | 64,000 | 49,000 |
Total non-performing loans | 305,000 | 249,000 |
Residential 1-4 Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 241,000 | 249,000 |
Accruing loans delinquent 90 days or more | 49,000 | |
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | ||
Accruing loans delinquent 90 days or more | ||
Home Equity Line of Credit [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | ||
Accruing loans delinquent 90 days or more | 9,000 | |
Student Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | ||
Accruing loans delinquent 90 days or more | 55,000 | |
Other Loans [Member] | Mortgage Loans Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans |
Loans Receivable, Net - Sched_5
Loans Receivable, Net - Schedule of Loans Evaluated for Impairment by Loan Type (Details) - 1-4 Residential [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Recorded Investment | $ 241,000 | $ 241,000 | $ 249,000 | ||
Unpaid Principal Balance | 241,000 | 241,000 | 249,000 | ||
Related Specific Allowance | |||||
Average Recorded Investment | 243,000 | 245,000 | |||
Interest Income Received |
Loans Receivable, Net - Sched_6
Loans Receivable, Net - Schedule of Activity in Allowance for Loan Losses by Loan Type (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | $ 408,000 | $ 507,000 | $ 408,000 | $ 507,000 |
Provision for loan losses | 26,231 | 26,231 | ||
Ending Balance | 434,000 | 507,000 | 434,000 | 507,000 |
Student Loan [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 118,000 | 49,000 | 122,000 | 54,000 |
Provision for loan losses | (4,000) | 23,000 | (8,000) | 18,000 |
Ending Balance | 114,000 | 72,000 | 114,000 | 72,000 |
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 148,000 | 327,000 | 145,000 | 318,000 |
Provision for loan losses | 4,000 | (19,000) | 7,000 | (10,000) |
Ending Balance | 152,000 | 308,000 | 152,000 | 308,000 |
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi-Family Mortgage Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 129,000 | 110,000 | 128,000 | 121,000 |
Provision for loan losses | 27,000 | (2,000) | 28,000 | (13,000) |
Ending Balance | 156,000 | 108,000 | 156,000 | 108,000 |
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 1,000 | 4,000 | 1,000 | 4,000 |
Provision for loan losses | (1,000) | (1,000) | (1,000) | (1,000) |
Ending Balance | 3,000 | 3,000 | ||
Other Loans Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 12,000 | 10,000 | 12,000 | 10,000 |
Provision for loan losses | 3,000 | 3,000 | ||
Ending Balance | 12,000 | 13,000 | 12,000 | 13,000 |
Unallocated Financing Receivables [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 7,000 | |||
Provision for loan losses | (4,000) | 3,000 | ||
Ending Balance | $ 3,000 | $ 3,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | $ (1,803,000) | $ (2,518,600) |
Tax effect | 378,629 | 528,908 |
Accumulated other comprehensive loss | (1,424,371) | (1,989,692) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | (1,745,417) | (1,779,119) |
Accumulated Net Unrealized Investment Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | $ (57,583) | $ (739,481) |
Regulatory Capital (Details Nar
Regulatory Capital (Details Narrative) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory capital description | The rules included a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0 percent to 6.0 percent, required a minimum ratio of total capital to risk-weighted assets of 8.0 percent, and required a minimum leverage ratio of 4.0 percent. A new capital conservation buffer, comprised of common equity Tier 1 capital, was also established above the regulatory minimum capital requirements. This conservation buffer was phased in beginning January 1, 2016 at 0.625 percent of risk-weighted assets and increased each subsequent year by an additional 0.625 percent until it reached its final level of 2.5 percent of risk-weighted assets on January 1, 2019. The final rule also revised the definition and calculation of Tier 1 capital, total capital and risk-weighted assets |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of Actual Capital Positions and Ratios (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Tangible Capital, Actual, Amount | $ 11,830 | $ 11,912 |
Tangible Capital, Actual, Ratio | 14.34% | 15.00% |
Tangible Capital, Minimum Capital Requirements, Amount | $ 1,237 | $ 1,191 |
Tangible Capital, Minimum Capital Requirements, Ratio | 1.50% | 1.50% |
Tangible Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | ||
Tangible Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | ||
Tangible Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | ||
Tangible Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio | ||
Total Risk-based Capital, Actual, Amount | $ 12,264 | $ 12,320 |
Total Risk-based Capital, Actual, Ratio | 26.94% | 26.76% |
Total Risk-based Capital, Minimum Capital Requirements, Amount | $ 4,781 | $ 4,546 |
Total Risk-based Capital, Minimum Capital Requirements, Ratio | 10.50% | 9.875% |
Total Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 4,553 | $ 4,603 |
Total Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Total Risk-based Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | $ 4,781 | $ 4,603 |
Total Risk-based Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio | 10.50% | 10.00% |
Common Equity Tier I Capital, Actual, Amount | $ 11,830 | $ 11,912 |
Common Equity Tier I Capital, Actual, Ratio | 25.98% | 25.88% |
Common Equity Tier I Capital, Minimum Capital Requirements, Amount | $ 3,187 | $ 2,935 |
Common Equity Tier I Capital, Minimum Capital Requirements, Ratio | 7.00% | 6.375% |
Common Equity Tier I Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 2,960 | $ 2,992 |
Common Equity Tier I Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Common Equity Tier I Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | $ 3,187 | $ 2,992 |
Common Equity Tier I Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio | 7.00% | 6.50% |
Tier I Risked-based Capital, Actual, Amount | $ 11,830 | $ 11,912 |
Tier I Risked-based Capital, Actual, Ratio | 25.98% | 25.88% |
Tier I Risked-based Capital, Minimum Capital Requirements, Amount | $ 3,870 | $ 3,625 |
Tier I Risked-based Capital, Minimum Capital Requirements, Ratio | 8.50% | 7.875% |
Tier I Risked-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 3,642 | $ 3,683 |
Tier I Risked-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier I Risked-based Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | $ 3,870 | $ 3,683 |
Tier I Risked-based Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio | 8.50% | 8.00% |
Tier 1 Leverage Capital, Actual, Amount | $ 11,830 | $ 11,912 |
Tier 1 Leverage Capital, Actual, Ratio | 14.34% | 15.00% |
Tier 1 Leverage Capital, Minimum Capital Requirements, Amount | $ 3,299 | $ 3,177 |
Tier 1 Leverage Capital, Minimum Capital Requirements, Ratio | 4.00% | 4.00% |
Tier 1 Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 4,124 | $ 3,971 |
Tier 1 Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Tier 1 Leverage Capital, To be Well Capitalized With Capital Conservation Buffer, Amount | ||
Tier 1 Leverage Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures (Details Narrative) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Estimated cash flow at a discounted interest rate | 6.00% | 6.00% |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Schedule of Assets Measured at Fair Value on Recurring Basis and Non-Recurring Basis (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 34,582,442 | $ 29,426,745 |
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 34,582,442 | 29,426,745 |
Fair Value Measurements Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Fair Value Measurements Non-Recurring [Member] | Impaired Residential 1-4 Family Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt restructuring | 241,199 | 248,956 |
Fair Value Measurements Non-Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Impaired Residential 1-4 Family Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt restructuring | ||
Fair Value Measurements Non-Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Impaired Residential 1-4 Family Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt restructuring | ||
Fair Value Measurements Non-Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Residential 1-4 Family Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt restructuring | $ 241,199 | $ 248,956 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Schedule of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Reported Amount Fair Value Disclosure [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | $ 1,602 | $ 1,218 |
Carrying Reported Amount Fair Value Disclosure [Member] | Securities Held-to-maturity [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 626 | 629 |
Carrying Reported Amount Fair Value Disclosure [Member] | Securities Available for Sale [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 34,582 | 29,427 |
Carrying Reported Amount Fair Value Disclosure [Member] | Loans Receivable [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 42,952 | 43,102 |
Carrying Reported Amount Fair Value Disclosure [Member] | FHLB and Other Stock at Cost [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 288 | 331 |
Carrying Reported Amount Fair Value Disclosure [Member] | Accrued Interest Receivable [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 575 | 517 |
Carrying Reported Amount Fair Value Disclosure [Member] | Deposits [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial liabilities | 69,349 | 63,658 |
Carrying Reported Amount Fair Value Disclosure [Member] | FHLB Advances [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial liabilities | 2,900 | 3,750 |
Estimate of Fair Value Fair Value Disclosure [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 1,602 | 1,218 |
Estimate of Fair Value Fair Value Disclosure [Member] | Securities Held-to-maturity [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 639 | 623 |
Estimate of Fair Value Fair Value Disclosure [Member] | Securities Available for Sale [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 34,582 | 29,427 |
Estimate of Fair Value Fair Value Disclosure [Member] | Loans Receivable [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 42,441 | 41,867 |
Estimate of Fair Value Fair Value Disclosure [Member] | FHLB and Other Stock at Cost [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 288 | 331 |
Estimate of Fair Value Fair Value Disclosure [Member] | Accrued Interest Receivable [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial assets | 575 | 517 |
Estimate of Fair Value Fair Value Disclosure [Member] | Deposits [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial liabilities | 69,609 | 63,771 |
Estimate of Fair Value Fair Value Disclosure [Member] | FHLB Advances [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value of Financial liabilities | $ 2,905 | $ 3,754 |
Contingencies (Details Narrativ
Contingencies (Details Narrative) - ReliaMax Surety Company [Member] | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Loan portfolio amount | $ 3,100,000 |
Student Loan [Member] | |
Loan portfolio amount | 6,900,000 |
Loss contingency, unamortized insurance premiums | $ 67,000 |