Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Sunnyside Bancorp, Inc. | |
Entity Central Index Key | 1,571,398 | |
Trading Symbol | snny | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 793,500 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 1,538,430 | $ 2,923,442 |
Securities held to maturity, net; approximate fair value of $1,942,000 (March 31, 2017) and $4,011,000 (December 31, 2016) | 1,893,088 | 3,954,549 |
Securities available for sale | 31,629,438 | 29,331,278 |
Loans receivable, net | 48,634,826 | 48,045,062 |
Premises and equipment, net | 1,303,105 | 1,335,654 |
Federal Home Loan Bank of New York and other stock, at cost | 354,020 | 335,020 |
Accrued interest receivable | 461,178 | 443,062 |
Cash surrender value of life insurance | 2,212,489 | 2,197,348 |
Deferred income taxes | 1,084,254 | 1,270,575 |
Other assets | 443,016 | 438,478 |
Total assets | 89,553,844 | 90,274,468 |
Liabilities: | ||
Deposits | 73,050,485 | 74,287,596 |
Federal Home Loan Bank advances | 3,700,000 | 3,000,000 |
Advances from borrowers for taxes and insurance | 521,656 | 684,468 |
Other liabilities | 794,109 | 1,070,811 |
Total liabilities | 78,066,250 | 79,042,875 |
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 | 7,005,748 | 6,998,363 |
Unallocated common stock held by the Employee Stock Ownership Plan | (461,053) | (466,606) |
Retained earnings | 6,247,355 | 6,237,637 |
Accumulated other comprehensive (loss) | (1,312,391) | (1,545,736) |
Total stockholders' equity | 11,487,594 | 11,231,593 |
Total liabilities and stockholders' equity | $ 89,553,844 | $ 90,274,468 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 1,941,697 | $ 4,011,021 |
Serial preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Serial preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Serial preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 793,500 | 793,500 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest and dividend income: | ||
Loans | $ 525,022 | $ 461,524 |
Investment securities | 24,346 | 70,073 |
Mortgage-backed securities | 126,817 | 130,243 |
Federal funds sold and other earning assets | 11,317 | 1,352 |
Total interest and dividend income | 687,502 | 663,192 |
Interest expense: | ||
Deposits | 55,746 | 85,459 |
Borrowings | 5,433 | 4,213 |
Total interest expense | 61,179 | 89,672 |
Net interest income | 626,323 | 573,520 |
Provision for loan losses | 2,685 | |
Net interest income after provision for loan losses | 623,638 | 573,520 |
Non-interest income: | ||
Fees and service charges | 26,426 | 25,076 |
Net gain on sale of securities | 89,102 | |
Net gain on sale of loans | 27,847 | |
Income on bank owned life insurance | 15,141 | 16,561 |
Total non-interest income | 69,414 | 130,739 |
Non-Interest Expense: | ||
Compensation and benefits | 363,387 | 361,395 |
Occupancy and equipment, net | 81,172 | 89,574 |
Data processing service fees | 75,755 | 70,261 |
Professional fees | 101,850 | 81,139 |
Federal deposit insurance premiums | 6,087 | 15,679 |
Advertising and promotion | 11,725 | 9,631 |
Other | 43,198 | 49,243 |
Total non-interest expense | 683,174 | 676,922 |
Income before income taxes | 9,878 | 27,337 |
Income tax expense | 160 | 4,169 |
Net income | $ 9,718 | $ 23,168 |
Basic and diluted income per share (in dollars per share) | $ 0.01 | $ 0.03 |
Weighted average shares outstanding, basic and diluted (in shares) | 747,209 | 744,988 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net income | $ 9,718 | $ 23,168 |
Defined benefit pension plans: | ||
Amortization of loss included in net periodic plan cost | 12,969 | 20,675 |
Unrealized gains on securities available for sale: | ||
Unrealized holding gains arising during the period | 340,584 | 384,843 |
Reclassification adjustment for gains included in operations | (84,595) | |
Other comprehensive income, before tax | 353,553 | 320,923 |
Income tax expense related to items of other comprehensive income | 120,208 | 127,387 |
Other comprehensive income, net of tax | 233,345 | 193,536 |
Comprehensive income | $ 243,063 | $ 216,704 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2017 - USD ($) | Common Stock | Additional Paid-in Capital | Unallocated Common Stock Held by ESOP | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2016 | $ 7,935 | $ 6,998,363 | $ (466,606) | $ 6,237,637 | $ (1,545,736) | $ 11,231,593 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income for the three months ended March 31, 2017 | 9,718 | 9,718 | ||||
ESOP shares allocated or committed to be released | 1,872 | 5,553 | 7,425 | |||
Restricted stock awards earned | 5,513 | 5,513 | ||||
Other comprehensive income, net of tax | 233,345 | 233,345 | ||||
Balance at Mar. 31, 2017 | $ 7,935 | $ 7,005,748 | $ (461,053) | $ 6,247,355 | $ (1,312,391) | $ 11,487,594 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 9,718 | $ 23,168 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation expense | 34,024 | 37,373 |
Amortization of premiums and accretion of discounts, net | 62,795 | 45,831 |
Amortization of deferred loan fees and costs, net | 7,555 | 14,845 |
Net gain on sales of securities available for sale | (84,595) | |
Net gain on sales of securities held to maturity | (4,507) | |
Net gain on sales of loans | (27,847) | |
Provision for loan losses | 2,685 | |
Increase in accrued interest receivable | (18,116) | (4,545) |
Increase in cash surrender value of life insurance | (15,141) | (16,561) |
Net decrease (increase) in other assets | 61,575 | (48,552) |
Net decrease in other liabilities | (263,733) | (86,066) |
Amortization of stock compensation plans | 12,938 | 12,023 |
Net cash used in operating activities | (133,547) | (111,586) |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (5,497,761) | (10,319,838) |
Repayments and maturities of securities held to maturity | 61,191 | 74,079 |
Repayments and maturities of securities available for sale | 3,477,660 | 1,097,332 |
Proceeds from sales/calls of securities held to maturity | 2,000,000 | 221,569 |
Proceeds from sales/calls of securities available for sale | 11,713,660 | |
Loans purchased | (3,077,172) | |
Proceeds from sales of loans | 453,537 | |
Loan originations, net of principal repayments | 2,051,478 | 326,287 |
Purchases of premises and equipment | (1,475) | (4,573) |
Purchase of Federal Home Loan Bank and other stock | (19,000) | (135,000) |
Net cash (used in) provided by investing activities | (551,542) | 2,973,516 |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (1,237,111) | 469,749 |
Net decrease in advances from borrowers for taxes and insurance | (162,812) | (84,709) |
Net increase in short-term borrowings | 700,000 | 3,000,000 |
Net cash (used in) provided by financing activities | (699,923) | 3,385,040 |
Net (decrease) increase in cash and cash equivalents | (1,385,012) | 6,246,970 |
Cash and cash equivalents at beginning of period | 2,923,442 | 3,326,660 |
Cash and cash equivalents at end of period | 1,538,430 | 9,573,630 |
Cash paid for: | ||
Interest | $ 61,168 | 85,458 |
Income taxes | $ 15,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant 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 significantly 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 months ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ended December 31, 2017, 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, 2016 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 March 31, 2017 and December 31, 2016, 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. 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. 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. For the three months ended March 31, 2017 and March 31, 2016, the Company recognized approximately $5,500 in expense in regard to those restricted stock awards. Expected future expense relating to these non-vested restricted shares at March 31, 2017 is $72,000 over a weighted average period of 3.25 years. There were no stock options outstanding as of March 31, 2017. 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 common share, or EPS, are computed by dividing net income by the weighted-average common shares outstanding during the year. The weighted-average common shares outstanding includes the weighted-average number of shares of common stock outstanding less the weighted average number of unallocated shares held by the ESOP and the unvested shares of restricted stock. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. Potential common shares related to stock options are determined using the treasury stock method. Subsequent Events The Company has evaluated all events subsequent to the balance sheet date of March 31, 2017 through the date of this report, and has determined that there are no subsequent events that require disclosure under FASB guidance. Recent Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within annual periods beginning after December 15, 2016. The adoption of this guidance on January 1, 2017 did not have a material impact on the Company’s financial condition or results of operations. In January, 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities” requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this Update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, this ASU eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 for public entities. The adoption of this guidance on January 1, 2018 is not expected to have a material effect on the operating results or financial position of the Company. 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 is not expected to have a material effect on the operating results or financial position of the Company. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objectives of the ASU are to simplify accounting for the tax consequences of a stock payment and amend the manner in which excess tax benefits and a business’s payments to satisfy the tax obligation for recipients of the shares should be classified. The amendments: (i) allow companies to estimate the number of stock awards they expect to vest, and (ii) revise the withholding requirements for classifying stock awards as equity. The adoption of this guidance on January 1, 2017 did not have a material impact on the Company’s financial condition or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 31, 2019. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which provides guidance on eight specific cash flow issues in order to reduce diversity in the manner in which certain cash receipts and cash payments are presented and classified in the statements of cash flows. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 is not expected to have a material impact on the Company’s financial condition or results of operations. In March 2017, FASB issued ASU 2017-07, “Compensation Retirement Benefits (Topic 715)” which provides more prescriptive guidance around the presentation of net periodic pension and postretirement benefit cost in the income statement. The amendment requires that the service cost component be disaggregated from other components of net periodic benefit cost in the income statement. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017. The adoption of this guidance on January 1, 2018 is not expected to have a material effect on the operating results or financial position of the Company. In March 2017, FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20)”. The update shortens the amortization period for premiums on purchased callable debt securities to the earliest call date. The amendment will apply only to callable debt securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates, apply to all premiums on callable debt securities, regardless of how they were generated, and require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. The ASU does not require an accounting change for securities held at a discount. The discount continues to be amortized to maturity and does not apply when the investor has already incorporated prepayments into the calculation of its effective yield under other GAAP. The amendments in the ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The adoption of this guidance on January 1, 2019 is not expected to have a material effect on the operating results or financial position of the Company. |
MUTUAL TO STOCK CONVERSION AND
MUTUAL TO STOCK CONVERSION AND LIQUIDATION ACCOUNT | 3 Months Ended |
Mar. 31, 2017 | |
Mutual To Stock And Liquidation Account [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 | 3 Months Ended |
Mar. 31, 2017 | |
Securities [Abstract] | |
SECURITIES | 3. SECURITIES March 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 549,929 $ 538 $ 537 $ 549,930 Mortgage-backed securities 1,343,159 48,608 - 1,391,767 $ 1,893,088 $ 49,146 $ 537 $ 1,941,697 Securities available for sale: U.S. government and agency obligations $ 6,497,315 $ - $ 9,141 $ 6,488,174 Mortgage-backed securities 25,564,215 5,740 428,691 25,141,264 $ 32,061,530 $ 5,740 $ 437,832 $ 31,629,438 December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: U.S. government and agency obligations $ 2,000,000 $ 11,698 $ - $ 2,011,698 State, county, and municipal obligations 550,234 - 8,225 542,009 Mortgage-backed securities 1,404,315 52,999 - 1,457,314 $ 3,954,549 $ 64,697 $ 8,225 $ 4,011,021 Securities available for sale: U.S. government and agency obligations $ 3,198,932 $ - $ 6,818 $ 3,192,114 Mortgage-backed securities 26,905,021 5,575 771,432 26,139,164 $ 30,103,953 $ 5,575 $ 778,250 $ 29,331,278 M ortgage-backed securities consist of securities guaranteed by Ginnie Mae, Fannie Mae, Freddie Mac, and the Small Business Administration with amortized costs of $1.6 million, $16.0 million, $6.4 million, and $3.0 million, respectively, at March 31, 2017 ($1.7 million, $16.8 million, $6.7 million, and $3.1 million, respectively, at December 31, 2016). Proceeds from the sales and calls of securities held to maturity amounted to $2,000,000 and $222,000 for the three months ended March 31, 2017 and 2016, respectively. Net gains of $4,500 were recognized on the sales for the three months ended March 31, 2016. The sale of the securities occurred after the Company had already collected a substantial portion (at least 85%) of the principal outstanding due to prepayments on the debt securities. Proceeds from the sales and calls of securities available for sale amounted to $0 and $11,714,000 for the three months ended March 31, 2017 and 2016, respectively. Net gains of $84,600 were recognized on those sales for the three months ended March 31, 2016. The following is a summary of the amortized cost and fair value of securities at March 31, 2017 and December 31, 2016, 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. March 31, 2017 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 3,499,801 $ 3,499,720 After one to five years 203,745 203,208 2,997,514 2,988,454 After five to ten years - - 2,703,442 2,680,440 After ten years 1,689,343 1,738,489 22,860,773 22,460,824 $ 1,893,088 $ 1,941,697 $ 32,061,530 $ 31,629,438 December 31, 2016 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,199,549 $ 2,199,424 After one to five years 204,107 201,678 999,383 992,690 After five to ten years - - 2,905,702 2,836,866 After ten years 3,750,442 3,809,343 23,999,319 23,302,298 $ 3,954,549 $ 4,011,021 $ 30,103,953 $ 29,331,278 The following tables summarize the fair values and unrealized losses of securities with an unrealized loss at March 31, 2017 and December 31, 2016, 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. March 31, 2017 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 $ 203,208 $ 537 $ - $ - Securities available for sale: U.S. government and agency obligations 6,488,174 9,141 - - Mortgage-backed securities 21,821,194 339,068 2,272,631 89,623 28,309,368 348,209 2,272,631 89,623 Total $ 28,512,576 $ 348,746 $ 2,272,631 $ 89,623 December 31, 2016 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 $ 542,009 $ 8,225 $ - $ - Securities available for sale: U.S. government and agency obligations 3,192,114 6,818 - - Mortgage-backed securities 22,915,969 669,270 2,354,733 102,162 26,108,083 676,088 2,354,733 102,162 Total $ 26,650,092 $ 684,313 $ 2,354,733 $ 102,162 The unrealized losses are primarily due to changes in market interest rates subsequent to purchase. At March 31, 2017, a total of 35 securities were in an unrealized loss position (34 at December 31, 2016). 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 March 31, 2017 and December 31, 2016 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. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 3 Months Ended |
Mar. 31, 2017 | |
Loans Receivable, Net [Abstract] | |
LOANS RECEIVABLE, NET | 4. LOANS RECEIVABLE, NET March 31, December 31, 2017 2016 Mortgage loans: Residential 1-4 family $ 23,892,985 $ 24,808,914 Commercial and multi-family 14,443,465 15,790,917 Home equity lines of credit 516,488 524,414 38,852,938 41,124,245 Other loans: Secured by savings accounts 10,344 11,390 Student 8,678,226 5,743,338 Commercial 1,319,919 1,493,323 10,008,489 7,248,051 Total loans 48,861,427 48,372,296 Less: Deferred loan fees (costs) and (premiums), net (242,977 ) (139,659 ) Allowance for loan losses 469,578 466,893 226,601 327,234 $ 48,634,826 $ 48,045,062 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 $158,000 and $160,000 at March 31, 2017 and December 31, 2016, respectively. Activity in the allowance for loan losses is summarized as follows: Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 466,893 $ 463,243 Provision for loan losses 2,685 - Balance at end of period $ 469,578 $ 463,243 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 March 31, 2017 and December 31, 2016. 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: March 31, 2017 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 23,314 $ 14,443 $ 494 $ 8,678 $ 1,331 $ 48,260 Special Mention - - - - - - Substandard 579 - 22 - - 601 Total $ 23,893 $ 14,443 $ 516 $ 8,678 $ 1,331 $ 48,861 December 31, 2016 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 24,249 $ 15,791 $ 503 $ 5,743 $ 1,505 $ 47,791 Special Mention - - - - - - Substandard 560 - 21 - - 581 Total $ 24,809 $ 15,791 $ 524 $ 5,743 $ 1,505 $ 48,372 The following table provides information about loan delinquencies at the dates indicated: March 31, 2017 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 $ - $ - $ 606 $ 606 $ 23,287 23,893 $ - Commercial real estate and multi-family - - - - 14,444 14,444 - Home equity lines of credit - - 22 22 494 516 - Student loans 49 49 - 98 8,580 8,678 Other loans - - - - 1,330 1,330 - $ 49 $ 49 $ 628 $ 726 $ 48,135 $ 48,861 $ - December 31, 2016 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 $ - $ 272 $ 337 $ 609 $ 24,200 $ 24,809 $ - Commercial real estate and multi-family - - - - 15,791 15,791 - Home equity lines of credit - - 21 21 503 524 - Student loans 5 10 - 15 5,728 5,743 Other loans - - - - 1,505 1,505 - $ 5 $ 282 $ 358 $ 645 $ 47,727 $ 48,372 $ - There were no troubled debt restructured loans at March 31, 2017 or December 31, 2016. 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: March 31, December 31, 2017 2016 (In thousands) Residential 1-4 family $ 606 $ 609 Commercial real estate and multi-family - - Home equity lines of credit 22 21 Student loans - - Other loans - - Total non-accrual loans 628 630 Accruing loans delinquent 90 days or more - - Total non-performing loans $ 628 $ 630 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 $8,000 and $11,900 for the three months ended March 31, 2017 and 2016, respectively. The total amount of interest income recognized on non-accrual loans amounted to approximately $5,700 and $0 during the three months ended March 31, 2017 and 2016, respectively. The following tables present the activity in the allowance for loan losses by loan type for the periods indicated: Three Months Ended March 31, 2017 Mortgage Loans Commercial Residential and 1-4 Family Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 297 $ 138 $ 5 $ 20 $ 7 $ - $ 467 Provision for loan losses (4 ) (17 ) (1 ) 22 - 3 3 Ending Balance $ 293 $ 121 $ 4 $ 42 $ 7 $ 3 $ 470 Three Months Ended March 31, 2016 Mortgage Loans Commercial Residential and 1-4 Family Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 315 $ 130 $ 3 $ 15 $ - $ - $ 463 Provision for loan losses (14 ) 3 1 6 2 2 - Ending Balance $ 301 $ 133 $ 4 $ 21 $ 2 $ 2 $ 463 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 5. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss included in equity are as follows: March 31, December 31, 2017 2016 Unrealized net loss on pension plan $ (1,556,379 ) $ (1,569,348 ) Unrealized gain (loss) on securities available for sale (432,092 ) (772,676 ) Accumulated other comprehensive loss before taxes (1,988,471 ) (2,342,024 ) Tax effect 676,080 796,288 Accumulated other comprehensive loss $ (1,312,391 ) $ (1,545,736 ) |
REGULATORY CAPITAL
REGULATORY CAPITAL | 3 Months Ended |
Mar. 31, 2017 | |
Regulatory Capital Requirements [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, 2017 and December 31, 2016, 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 will be phased in beginning January 1, 2016 at 0.625 percent of risk-weighted assets and increase each subsequent year by an additional 0.625 percent until reaching 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: Capitalized Under Minimum Capital Prompt Corrective Actual Requirements Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) March 31, 2017 Total Risked-based Capital $ 12,094 25.85 % $ 4,328 9.250 % $ 4,679 10.00 % Common Equity Tier 1 Capital 11,624 24.84 % 2,690 5.750 % 3,041 6.50 % Tier 1 Risk-based Capital 11,624 24.84 % 3,392 7.250 % 3,743 8.00 % Tier 1 Leverage Capital 11,624 13.08 % 3,556 4.000 % 4,445 5.00 % December 31, 2016 Total Risked-based Capital $ 12,146 26.87 % $ 3,899 8.625 % $ 4,521 10.00 % Common Equity Tier 1 Capital 11,679 25.84 % 2,317 5.125 % 2,938 6.50 % Tier 1 Risk-based Capital 11,679 25.84 % 2,995 6.625 % 3,616 8.00 % Tier 1 Leverage Capital 11,679 12.84 % 3,637 4.000 % 4,547 5.00 % |
FAIR VALUE MEASUREMENTS AND DIS
FAIR VALUE MEASUREMENTS AND DISCLOSURES | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements And 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 March 31, 2017 and December 31, 2016. 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 March 31, 2017 and December 31, 2016: Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) March 31, 2017: Securities available for sale $ 31,629,438 $ - $ 31,629,438 $ - December 31, 2016: Securities available for sale $ 29,331,278 $ - $ 29,331,278 $ - There were no assets measured at fair value on a non-recurring basis at March 31, 2017 and December 31, 2016. 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 Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential mortgage, commercial, and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories (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): March 31, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value (In Thousands) Financial assets: Cash and cash equivalents $ 1,538 $ 1,538 $ 2,923 $ 2,923 Securities held to maturity 1,893 1,942 3,955 4,011 Securities available for sale 31,629 31,629 29,331 29,331 Loans receivable 48,635 48,827 48,045 48,488 FHLB and other stock, at cost 354 354 335 335 Accrued interest receivable 461 461 443 443 Financial liabilities: Deposits 73,050 73,096 74,288 74,308 FHLB Advances 3,700 3,702 3,000 3,001 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. |
SUMMARY OF SIGNIFICANT ACCOUN15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant 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 significantly 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 months ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ended December 31, 2017, 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, 2016 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 March 31, 2017 and December 31, 2016, 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. 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 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. 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. For the three months ended March 31, 2017 and March 31, 2016, the Company recognized approximately $5,500 in expense in regard to those restricted stock awards. Expected future expense relating to these non-vested restricted shares at March 31, 2017 is $72,000 over a weighted average period of 3.25 years. There were no stock options outstanding as of March 31, 2017. |
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 common share, or EPS, are computed by dividing net income by the weighted-average common shares outstanding during the year. The weighted-average common shares outstanding includes the weighted-average number of shares of common stock outstanding less the weighted average number of unallocated shares held by the ESOP and the unvested shares of restricted stock. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. Potential common shares related to stock options are determined using the treasury stock method. |
Subsequent Events | Subsequent Events The Company has evaluated all events subsequent to the balance sheet date of March 31, 2017 through the date of this report, and has determined that there are no subsequent events that require disclosure under FASB guidance. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within annual periods beginning after December 15, 2016. The adoption of this guidance on January 1, 2017 did not have a material impact on the Company’s financial condition or results of operations. In January, 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities” requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this Update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, this ASU eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 for public entities. The adoption of this guidance on January 1, 2018 is not expected to have a material effect on the operating results or financial position of the Company. 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 is not expected to have a material effect on the operating results or financial position of the Company. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objectives of the ASU are to simplify accounting for the tax consequences of a stock payment and amend the manner in which excess tax benefits and a business’s payments to satisfy the tax obligation for recipients of the shares should be classified. The amendments: (i) allow companies to estimate the number of stock awards they expect to vest, and (ii) revise the withholding requirements for classifying stock awards as equity. The adoption of this guidance on January 1, 2017 did not have a material impact on the Company’s financial condition or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 31, 2019. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which provides guidance on eight specific cash flow issues in order to reduce diversity in the manner in which certain cash receipts and cash payments are presented and classified in the statements of cash flows. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 is not expected to have a material impact on the Company’s financial condition or results of operations. In March 2017, FASB issued ASU 2017-07, “Compensation Retirement Benefits (Topic 715)” which provides more prescriptive guidance around the presentation of net periodic pension and postretirement benefit cost in the income statement. The amendment requires that the service cost component be disaggregated from other components of net periodic benefit cost in the income statement. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017. The adoption of this guidance on January 1, 2018 is not expected to have a material effect on the operating results or financial position of the Company. In March 2017, FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities (Subtopic 310-20)”. The update shortens the amortization period for premiums on purchased callable debt securities to the earliest call date. The amendment will apply only to callable debt securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates, apply to all premiums on callable debt securities, regardless of how they were generated, and require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. The ASU does not require an accounting change for securities held at a discount. The discount continues to be amortized to maturity and does not apply when the investor has already incorporated prepayments into the calculation of its effective yield under other GAAP. The amendments in the ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The adoption of this guidance on January 1, 2019 is not expected to have a material effect on the operating results or financial position of the Company. |
SUMMARY OF SIGNIFICANT ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of premises and equipments | Building and improvements 5 to 40 years Furniture, fixtures and equipment 2 to 10 years |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Securities [Abstract] | |
Schedule of held to maturity and available for sale securities | March 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: State, county, and municipal obligations $ 549,929 $ 538 $ 537 $ 549,930 Mortgage-backed securities 1,343,159 48,608 - 1,391,767 $ 1,893,088 $ 49,146 $ 537 $ 1,941,697 Securities available for sale: U.S. government and agency obligations $ 6,497,315 $ - $ 9,141 $ 6,488,174 Mortgage-backed securities 25,564,215 5,740 428,691 25,141,264 $ 32,061,530 $ 5,740 $ 437,832 $ 31,629,438 December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held to maturity: U.S. government and agency obligations $ 2,000,000 $ 11,698 $ - $ 2,011,698 State, county, and municipal obligations 550,234 - 8,225 542,009 Mortgage-backed securities 1,404,315 52,999 - 1,457,314 $ 3,954,549 $ 64,697 $ 8,225 $ 4,011,021 Securities available for sale: U.S. government and agency obligations $ 3,198,932 $ - $ 6,818 $ 3,192,114 Mortgage-backed securities 26,905,021 5,575 771,432 26,139,164 $ 30,103,953 $ 5,575 $ 778,250 $ 29,331,278 |
Schedule of amortized cost and fair value of securities by remaining period to contractual maturity | March 31, 2017 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 3,499,801 $ 3,499,720 After one to five years 203,745 203,208 2,997,514 2,988,454 After five to ten years - - 2,703,442 2,680,440 After ten years 1,689,343 1,738,489 22,860,773 22,460,824 $ 1,893,088 $ 1,941,697 $ 32,061,530 $ 31,629,438 December 31, 2016 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ - $ - $ 2,199,549 $ 2,199,424 After one to five years 204,107 201,678 999,383 992,690 After five to ten years - - 2,905,702 2,836,866 After ten years 3,750,442 3,809,343 23,999,319 23,302,298 $ 3,954,549 $ 4,011,021 $ 30,103,953 $ 29,331,278 |
Schedule of fair values and unrealized losses of securities in an unrealized loss position | March 31, 2017 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 $ 203,208 $ 537 $ - $ - Securities available for sale: U.S. government and agency obligations 6,488,174 9,141 - - Mortgage-backed securities 21,821,194 339,068 2,272,631 89,623 28,309,368 348,209 2,272,631 89,623 Total $ 28,512,576 $ 348,746 $ 2,272,631 $ 89,623 December 31, 2016 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 $ 542,009 $ 8,225 $ - $ - Securities available for sale: U.S. government and agency obligations 3,192,114 6,818 - - Mortgage-backed securities 22,915,969 669,270 2,354,733 102,162 26,108,083 676,088 2,354,733 102,162 Total $ 26,650,092 $ 684,313 $ 2,354,733 $ 102,162 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans Receivable, Net [Abstract] | |
Schedule of loans receivable, net | March 31, December 31, 2017 2016 Mortgage loans: Residential 1-4 family $ 23,892,985 $ 24,808,914 Commercial and multi-family 14,443,465 15,790,917 Home equity lines of credit 516,488 524,414 38,852,938 41,124,245 Other loans: Secured by savings accounts 10,344 11,390 Student 8,678,226 5,743,338 Commercial 1,319,919 1,493,323 10,008,489 7,248,051 Total loans 48,861,427 48,372,296 Less: Deferred loan fees (costs) and (premiums), net (242,977 ) (139,659 ) Allowance for loan losses 469,578 466,893 226,601 327,234 $ 48,634,826 $ 48,045,062 |
Schedule of activity in allowance for loan losses | Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 466,893 $ 463,243 Provision for loan losses 2,685 - Balance at end of period $ 469,578 $ 463,243 |
Schedule of credit quality indicators by portfolio segment | March 31, 2017 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 23,314 $ 14,443 $ 494 $ 8,678 $ 1,331 $ 48,260 Special Mention - - - - - - Substandard 579 - 22 - - 601 Total $ 23,893 $ 14,443 $ 516 $ 8,678 $ 1,331 $ 48,861 December 31, 2016 Mortgage Loans Commercial Commercial Residential Real Estate and and 1-4 Family Multi-Family Home Equity Student Other Total (In thousands) Pass $ 24,249 $ 15,791 $ 503 $ 5,743 $ 1,505 $ 47,791 Special Mention - - - - - - Substandard 560 - 21 - - 581 Total $ 24,809 $ 15,791 $ 524 $ 5,743 $ 1,505 $ 48,372 |
Schedule of information about loan delinquencies | March 31, 2017 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 $ - $ - $ 606 $ 606 $ 23,287 23,893 $ - Commercial real estate and multi-family - - - - 14,444 14,444 - Home equity lines of credit - - 22 22 494 516 - Student loans 49 49 - 98 8,580 8,678 Other loans - - - - 1,330 1,330 - $ 49 $ 49 $ 628 $ 726 $ 48,135 $ 48,861 $ - December 31, 2016 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 $ - $ 272 $ 337 $ 609 $ 24,200 $ 24,809 $ - Commercial real estate and multi-family - - - - 15,791 15,791 - Home equity lines of credit - - 21 21 503 524 - Student loans 5 10 - 15 5,728 5,743 Other loans - - - - 1,505 1,505 - $ 5 $ 282 $ 358 $ 645 $ 47,727 $ 48,372 $ - |
Schedule of summary of loans on which accrual of income has been discontinued and loans past due but not classified as non-accrual | March 31, December 31, 2017 2016 (In thousands) Residential 1-4 family $ 606 $ 609 Commercial real estate and multi-family - - Home equity lines of credit 22 21 Student loans - - Other loans - - Total non-accrual loans 628 630 Accruing loans delinquent 90 days or more - - Total non-performing loans $ 628 $ 630 |
Schedule of activity in the allowance for loan losses by loan type | Three Months Ended March 31, 2017 Mortgage Loans Commercial Residential and 1-4 Family Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 297 $ 138 $ 5 $ 20 $ 7 $ - $ 467 Provision for loan losses (4 ) (17 ) (1 ) 22 - 3 3 Ending Balance $ 293 $ 121 $ 4 $ 42 $ 7 $ 3 $ 470 Three Months Ended March 31, 2016 Mortgage Loans Commercial Residential and 1-4 Family Multi-Family Home Equity Student Other Unallocated Total (In thousands) Beginning balance $ 315 $ 130 $ 3 $ 15 $ - $ - $ 463 Provision for loan losses (14 ) 3 1 6 2 2 - Ending Balance $ 301 $ 133 $ 4 $ 21 $ 2 $ 2 $ 463 |
ACCUMULATED OTHER COMPREHENSI19
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of components of accumulated other comprehensive loss | March 31, December 31, 2017 2016 Unrealized net loss on pension plan $ (1,556,379 ) $ (1,569,348 ) Unrealized gain (loss) on securities available for sale (432,092 ) (772,676 ) Accumulated other comprehensive loss before taxes (1,988,471 ) (2,342,024 ) Tax effect 676,080 796,288 Accumulated other comprehensive loss $ (1,312,391 ) $ (1,545,736 ) |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of summary of actual capital amounts and ratios | Capitalized Under Minimum Capital Prompt Corrective Actual Requirements Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) March 31, 2017 Total Risked-based Capital $ 12,094 25.85 % $ 4,328 9.250 % $ 4,679 10.00 % Common Equity Tier 1 Capital 11,624 24.84 % 2,690 5.750 % 3,041 6.50 % Tier 1 Risk-based Capital 11,624 24.84 % 3,392 7.250 % 3,743 8.00 % Tier 1 Leverage Capital 11,624 13.08 % 3,556 4.000 % 4,445 5.00 % December 31, 2016 Total Risked-based Capital $ 12,146 26.87 % $ 3,899 8.625 % $ 4,521 10.00 % Common Equity Tier 1 Capital 11,679 25.84 % 2,317 5.125 % 2,938 6.50 % Tier 1 Risk-based Capital 11,679 25.84 % 2,995 6.625 % 3,616 8.00 % Tier 1 Leverage Capital 11,679 12.84 % 3,637 4.000 % 4,547 5.00 % |
FAIR VALUE MEASUREMENTS AND D21
FAIR VALUE MEASUREMENTS AND DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements And Disclosures [Abstract] | |
Schedule of assets measured at fair value on recurring basis | Quoted Prices in Active Significant Other Significant Carrying Markets for Identical Observable Inputs Unobservable Inputs Description Value (Level 1) (Level 2) (Level 3) March 31, 2017: Securities available for sale $ 31,629,438 $ - $ 31,629,438 $ - December 31, 2016: Securities available for sale $ 29,331,278 $ - $ 29,331,278 $ - |
Schedule of estimated fair values of financial instruments | March 31, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value (In Thousands) Financial assets: Cash and cash equivalents $ 1,538 $ 1,538 $ 2,923 $ 2,923 Securities held to maturity 1,893 1,942 3,955 4,011 Securities available for sale 31,629 31,629 29,331 29,331 Loans receivable 48,635 48,827 48,045 48,488 FHLB and other stock, at cost 354 354 335 335 Accrued interest receivable 461 461 443 443 Financial liabilities: Deposits 73,050 73,096 74,288 74,308 FHLB Advances 3,700 3,702 3,000 3,001 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of premises and equipment (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Building and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Building and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jun. 16, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Employer matching contribution percent of match | 50.00% | ||
ESOP repayment period for common stock borrowed from company | 25 years | ||
Maximum number of shares which may be issued | 6 | ||
Stock options | 2014 Equity Incentive Plan (the "Stock Incentive Plan") | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Maximum number of shares which may be issued | 79,350 | ||
Restricted stock | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted stock expenses | $ 5,500 | $ 5,500 | |
Expected future expense relating to non-vested restricted shares | $ 72,000 | ||
Weighted average period of restricted shares | 3 years 3 months | ||
Restricted stock | 2014 Equity Incentive Plan (the "Stock Incentive Plan") | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Maximum number of shares which may be issued | 23,805 | ||
Restricted stock | 2014 Equity Incentive Plan (the "Stock Incentive Plan") | Executive officer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of share granted | 10,500 | ||
Grant date fair value (in dollars per share) | $ 10.50 | ||
Vesting percentage of restricted stock | 20.00% |
MUTUAL TO STOCK CONVERSION AN24
MUTUAL TO STOCK CONVERSION AND LIQUIDATION ACCOUNT (Detail Textuals) - USD ($) | Jul. 15, 2013 | Mar. 31, 2017 | Dec. 31, 2016 |
Mutual To Stock And Liquidation Account [Abstract] | |||
Shares of common stock sold | 793,500 | 793,500 | 793,500 |
Shares purchased by ESOP | 55,545 | ||
ESOP purchase price per share (in dollars 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 - Held To Maturity A
SECURITIES - Held To Maturity And Available For Sale Securities (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Securities held to maturity: | ||
Amortized Cost | $ 1,893,088 | $ 3,954,549 |
Gross Unrealized Gains | 49,146 | 64,697 |
Gross Unrealized Losses | 537 | 8,225 |
Fair Value | 1,941,697 | 4,011,021 |
Securities available for sale: | ||
Amortized Cost | 32,061,530 | 30,103,953 |
Gross Unrealized Gains | 5,740 | 5,575 |
Gross Unrealized Losses | 437,832 | 778,250 |
Fair Value | 31,629,438 | 29,331,278 |
U.S. government and agency obligations | ||
Securities held to maturity: | ||
Amortized Cost | 2,000,000 | |
Gross Unrealized Gains | 11,698 | |
Gross Unrealized Losses | ||
Fair Value | 2,011,698 | |
Securities available for sale: | ||
Amortized Cost | 6,497,315 | 3,198,932 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 9,141 | 6,818 |
Fair Value | 6,488,174 | 3,192,114 |
State, county, and municipal obligations | ||
Securities held to maturity: | ||
Amortized Cost | 549,929 | 550,234 |
Gross Unrealized Gains | 538 | |
Gross Unrealized Losses | 537 | 8,225 |
Fair Value | 549,930 | 542,009 |
Mortgage-backed securities | ||
Securities held to maturity: | ||
Amortized Cost | 1,343,159 | 1,404,315 |
Gross Unrealized Gains | 48,608 | 52,999 |
Gross Unrealized Losses | ||
Fair Value | 1,391,767 | 1,457,314 |
Securities available for sale: | ||
Amortized Cost | 25,564,215 | 26,905,021 |
Gross Unrealized Gains | 5,740 | 5,575 |
Gross Unrealized Losses | 428,691 | 771,432 |
Fair Value | $ 25,141,264 | $ 26,139,164 |
SECURITIES - Amortized Cost And
SECURITIES - Amortized Cost And Fair Value Of Securities By Remaining Period To Contractual Maturity (Details 1) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Held to Maturity, Amortized Cost | ||
Held to Maturity, Within one year, Amortized Cost | ||
Held to Maturity, After one to five years, Amortized Cost | 203,745 | 204,107 |
Held to Maturity, After five to ten years, Amortized Cost | ||
Held to Maturity, After ten years, Amortized Cost | 1,689,343 | 3,750,442 |
Amortized Cost | 1,893,088 | 3,954,549 |
Held to Maturity, Fair Value | ||
Held to maturity, Within one year, Fair Value | ||
Held to maturity, After one to five years, Fair Value | 203,208 | 201,678 |
Held to Maturity, After five to ten years, Fair Value | ||
Held to Maturity, After ten years, Fair Value | 1,738,489 | 3,809,343 |
Held to Maturity, Fair Value | 1,941,697 | 4,011,021 |
Available for Sale, Amortized Cost | ||
Available for Sale, Within one year, Amortized Cost | 3,499,801 | 2,199,549 |
Available for Sale, After one to five years, Amortized Cost | 2,997,514 | 999,383 |
Available for Sale, After five to ten years, Amortized Cost | 2,703,442 | 2,905,702 |
Available for Sale, After ten years, Amortized Cost | 22,860,773 | 23,999,319 |
Available for Sale, Amortized Cost | 32,061,530 | 30,103,953 |
Available for Sale, Fair Value | ||
Available for Sale, Within one year, Fair Value | 3,499,720 | 2,199,424 |
Available for Sale, After one to five years, Fair Value | 2,988,454 | 992,690 |
Available for Sale, After five to ten years, Fair Value | 2,680,440 | 2,836,866 |
Available for Sale, After ten years, Fair Value | 22,460,824 | 23,302,298 |
Available for Sale, Fair Value | $ 31,629,438 | $ 29,331,278 |
SECURITIES - Fair Values And Un
SECURITIES - Fair Values And Unrealized Losses Of Securities In Unrealized Loss Position (Details 2) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Securities available for sale: | ||
Under One Year, Fair Value | $ 28,309,368 | $ 26,108,083 |
Under One Year, Gross Unrealized Loss | 348,209 | 676,088 |
One Year or More, Fair Value | 2,272,631 | 2,354,733 |
One Year or More, Gross Unrealized Loss | 89,623 | 102,162 |
Total Securities: | ||
Under One Year, Fair Value | 28,512,576 | 26,650,092 |
Under One Year, Gross Unrealized Loss | 348,746 | 684,313 |
One Year or More, Fair Value | 2,272,631 | 2,354,733 |
One Year or More, Gross Unrealized Loss | 89,623 | 102,162 |
State, county, and municipal obligations | ||
Securities held to maturity: | ||
Under One Year, Fair Value | 203,208 | 542,009 |
Under One Year, Gross Unrealized Loss | 537 | 8,225 |
One Year or More, Fair Value | ||
One Year or More, Gross Unrealized Loss | ||
U.S. government and agency obligations | ||
Securities available for sale: | ||
Under One Year, Fair Value | 6,488,174 | 3,192,114 |
Under One Year, Gross Unrealized Loss | 9,141 | 6,818 |
One Year or More, Fair Value | ||
One Year or More, Gross Unrealized Loss | ||
Mortgage-backed securities | ||
Securities available for sale: | ||
Under One Year, Fair Value | 21,821,194 | 22,915,969 |
Under One Year, Gross Unrealized Loss | 339,068 | 669,270 |
One Year or More, Fair Value | 2,272,631 | 2,354,733 |
One Year or More, Gross Unrealized Loss | $ 89,623 | $ 102,162 |
SECURITIES (Detail Textuals)
SECURITIES (Detail Textuals) | 3 Months Ended | ||
Mar. 31, 2017USD ($)Security | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)Security | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Proceeds from sales/calls of securities held to maturity | $ 2,000,000 | $ 221,569 | |
Net gains recognized on sales of held to maturity securities | 4,507 | ||
Percentage of principal outstanding collected due to prepayments on debt securities | 85.00% | ||
Proceeds from sales of securities available for sale | 11,713,660 | ||
Net gains (loss) recognized on sales of securities available for sale | $ 84,595 | ||
Number of securities in an unrealized loss position | Security | 35 | 34 | |
Guaranteed By Ginnie Mae | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Mortgage-backed securities | $ 1,600,000 | $ 1,700,000 | |
Guaranteed By Fannie Mae | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Mortgage-backed securities | 16,000,000 | 16,800,000 | |
Guaranteed By Freddie Mac | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Mortgage-backed securities | 6,400,000 | 6,700,000 | |
Guaranteed By Small Business Administration | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Mortgage-backed securities | $ 3,000,000 | $ 3,100,000 |
LOANS RECEIVABLE, NET - Loans R
LOANS RECEIVABLE, NET - Loans Receivable, Net (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 48,861,427 | $ 48,372,296 | ||
Less: Deferred loan fees (costs), net | (242,977) | (139,659) | ||
Less: Allowance for loan losses | 469,578 | 466,893 | $ 463,243 | $ 463,243 |
Total loan after deduction of deferred loan fees (costs), net and allowance for loan losses | 226,601 | 327,234 | ||
Total loans, net | 48,634,826 | 48,045,062 | ||
Mortgage loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 38,852,938 | 41,124,245 | ||
Mortgage loans | Residential 1-4 family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 23,892,985 | 24,808,914 | ||
Less: Allowance for loan losses | 293,000 | 297,000 | 301,000 | 315,000 |
Mortgage loans | Commercial and multi-family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 14,443,465 | 15,790,917 | ||
Less: Allowance for loan losses | 121,000 | 138,000 | 133,000 | 130,000 |
Mortgage loans | Home equity lines of credit | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 516,488 | 524,414 | ||
Less: Allowance for loan losses | 4,000 | 5,000 | $ 4,000 | $ 3,000 |
Other loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 10,008,489 | 7,248,051 | ||
Other loans | Secured by savings accounts | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 10,344 | 11,390 | ||
Other loans | Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 1,319,919 | $ 1,493,323 |
LOANS RECEIVABLE, NET - Activit
LOANS RECEIVABLE, NET - Activity In Allowance For Loan Losses (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 466,893 | $ 463,243 |
Provision for loan losses | 2,685 | |
Balance at end of period | $ 469,578 | $ 463,243 |
LOANS RECEIVABLE, NET - Credit
LOANS RECEIVABLE, NET - Credit quality indicators by portfolio segment and class (Details 2) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 48,861,427 | $ 48,372,296 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 48,260,000 | 47,791,000 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 601,000 | 581,000 |
Mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 38,852,938 | 41,124,245 |
Mortgage loans | Residential Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,892,985 | 24,808,914 |
Mortgage loans | Residential Mortgage | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,314,000 | 24,249,000 |
Mortgage loans | Residential Mortgage | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Mortgage loans | Residential Mortgage | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 579,000 | 560,000 |
Mortgage loans | Commercial real estate and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14,443,465 | 15,790,917 |
Mortgage loans | Commercial real estate and multi-family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14,443,000 | 15,791,000 |
Mortgage loans | Commercial real estate and multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Mortgage loans | Commercial real estate and multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Mortgage loans | Home Equity LOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 516,488 | 524,414 |
Mortgage loans | Home Equity LOC | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 494,000 | 503,000 |
Mortgage loans | Home Equity LOC | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Mortgage loans | Home Equity LOC | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 22,000 | 21,000 |
Other loans | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,678,226 | 5,743,338 |
Other loans | Student | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,678,000 | 5,743,000 |
Other loans | Student | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Other loans | Student | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Commercial and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,008,489 | 7,248,051 |
Commercial and other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,331,000 | 1,505,000 |
Commercial and other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Commercial and other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total |
LOANS RECEIVABLE, NET - Summary
LOANS RECEIVABLE, NET - Summary of information about loan delinquencies (Details 3) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 726,000 | $ 645,000 |
Current Loans | 48,135,000 | 47,727,000 |
Total Loans | 48,861,427 | 48,372,296 |
90 Days or More Past Due and Accruing | ||
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49,000 | 5,000 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49,000 | 282,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 628,000 | 358,000 |
Mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 38,852,938 | 41,124,245 |
Mortgage loans | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 606,000 | 609,000 |
Current Loans | 23,287,000 | 24,200,000 |
Total Loans | 23,892,985 | 24,808,914 |
90 Days or More Past Due and Accruing | ||
Mortgage loans | Residential Mortgage [Member] | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage loans | Residential Mortgage [Member] | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 272,000 | |
Mortgage loans | Residential Mortgage [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 606,000 | 337,000 |
Mortgage loans | Commercial and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current Loans | 14,444,000 | 15,791,000 |
Total Loans | 14,443,465 | 15,790,917 |
90 Days or More Past Due and Accruing | ||
Mortgage loans | Commercial and multi-family | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage loans | Commercial and multi-family | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage loans | Commercial and multi-family | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage loans | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,000 | 21,000 |
Current Loans | 494,000 | 503,000 |
Total Loans | 516,488 | 524,414 |
90 Days or More Past Due and Accruing | ||
Mortgage loans | Home equity lines of credit | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage loans | Home equity lines of credit | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Mortgage loans | Home equity lines of credit | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,000 | 21,000 |
Other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current Loans | 1,330,000 | 1,505,000 |
Total Loans | 1,330,000 | 1,505,000 |
90 Days or More Past Due and Accruing | ||
Other loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Other loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Other loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Other loans | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 98,000 | 15,000 |
Current Loans | 8,580,000 | 5,728,000 |
Total Loans | 8,678,000 | 5,743,000 |
90 Days or More Past Due and Accruing | ||
Other loans | Student | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49,000 | 5,000 |
Other loans | Student | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49,000 | 10,000 |
Other loans | Student | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due |
LOANS RECEIVABLE, NET - Summa33
LOANS RECEIVABLE, NET - 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 (Details 4) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ 628 | $ 630 |
Accruing loans delinquent 90 days or more | ||
Total non-performing loans | 628 | 630 |
Mortgage loans | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 606 | 609 |
Accruing loans delinquent 90 days or more | ||
Mortgage loans | Commercial and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | ||
Accruing loans delinquent 90 days or more | ||
Mortgage loans | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 22 | 21 |
Accruing loans delinquent 90 days or more | ||
Other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | ||
Other loans | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans |
LOANS RECEIVABLE, NET - Activ34
LOANS RECEIVABLE, NET - Activity in the allowance for loan losses by loan type (Details 5) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 466,893 | $ 463,243 |
Provision for loan losses | 2,685 | |
Balance at end of period | 469,578 | 463,243 |
Mortgage loans | Residential 1-4 family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 297,000 | 315,000 |
Provision for loan losses | (4,000) | (14,000) |
Balance at end of period | 293,000 | 301,000 |
Mortgage loans | Commercial real estate and multi-family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 138,000 | 130,000 |
Provision for loan losses | (17,000) | 3,000 |
Balance at end of period | 121,000 | 133,000 |
Mortgage loans | Home equity lines of credit | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 5,000 | 3,000 |
Provision for loan losses | (1,000) | 1,000 |
Balance at end of period | 4,000 | 4,000 |
Other loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 7,000 | |
Provision for loan losses | 2,000 | |
Balance at end of period | 7,000 | 2,000 |
Other loans | Student | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 20,000 | 15,000 |
Provision for loan losses | 22,000 | 6,000 |
Balance at end of period | 42,000 | 21,000 |
Unallocated | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | ||
Provision for loan losses | 3,000 | 2,000 |
Balance at end of period | $ 3,000 | $ 2,000 |
LOANS RECEIVABLE, NET (Detail T
LOANS RECEIVABLE, NET (Detail Textuals) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loans Receivable, Net [Abstract] | |||
Unpaid principal balances of related party loans | $ 158,000 | $ 160,000 | |
Interest income on non-accrual loans | 8,000 | $ 11,900 | |
Amount of interest recognized on non-accrual loans | $ 5,700 | $ 0 |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of accumulated other comprehensive loss (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | $ (1,988,471) | $ (2,342,024) |
Tax effect | 676,080 | 796,288 |
Accumulated other comprehensive loss | (1,312,391) | (1,545,736) |
Unrealized net loss on pension plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | (1,556,379) | (1,569,348) |
Unrealized gain (loss) on securities available for sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss before taxes | $ (432,092) | $ (772,676) |
REGULATORY CAPITAL - Associatio
REGULATORY CAPITAL - Association's actual capital amounts and ratios (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Total Risk-based Capital | ||
Total Risk-based Capital, Actual, Amount | $ 12,094 | $ 12,146 |
Total Risk-based Capital, Actual, Ratio | 25.85% | 26.87% |
Total Risk-based Capital, Minimum Capital Requirements, Amount | $ 4,328 | $ 3,899 |
Total Risk-based Capital, Minimum Capital Requirements, Ratio | 9.25% | 8.625% |
Total Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 4,679 | $ 4,521 |
Total Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Common Equity Tier I Capital (Risk Based) | ||
Common Equity Tier I Risk-based Capital, Actual, Amount | $ 11,624 | $ 11,679 |
Common Equity Tier I Risk-based Capital, Actual, Ratio | 24.84% | 25.84% |
Common Equity Tier I Risk-based Capital, Minimum Capital Requirements, Amount | $ 2,690 | $ 2,317 |
Common Equity Tier I Risk-based Capital, Minimum Capital Requirements, Ratio | 5.75% | 5.125% |
Common Equity Tier I Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 3,041 | $ 2,938 |
Common Equity Tier I Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier I Capital (Risk Based) | ||
Tier I Risk-based Capital, Actual, Amount | $ 11,624 | $ 11,679 |
Tier I Risk-based Capital, Actual, Ratio | 24.84% | 25.84% |
Tier I Risk-based Capital, Minimum Capital Requirements, Amount | $ 3,392 | $ 2,995 |
Tier I Risk-based Capital, Minimum Capital Requirements, Ratio | 7.25% | 6.625% |
Tier I Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 3,743 | $ 3,616 |
Tier I Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier 1 Leverage Capital | ||
Tier 1 Leverage Capital, Actual, Amount | $ 11,624 | $ 11,679 |
Tier 1 Leverage Capital, Actual, Ratio | 13.08% | 12.84% |
Tier 1 Leverage Capital, Minimum Capital Requirements, Amount | $ 3,556 | $ 3,637 |
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 | $ 4,445 | $ 4,547 |
Tier 1 Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
FAIR VALUE MEASUREMENTS AND D38
FAIR VALUE MEASUREMENTS AND DISCLOSURES - Assets Measured At Fair Value On Recurring Basis (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets and Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 31,629,438 | $ 29,331,278 |
Recurring basis | Quoted Prices in Active Markets for Identical (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 31,629,438 | 29,331,278 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale |
FAIR VALUE MEASUREMENTS AND D39
FAIR VALUE MEASUREMENTS AND DISCLOSURES - Estimated Fair Values Of Financial Instruments (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying Value | Cash and cash equivalents | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | $ 1,538 | $ 2,923 |
Carrying Value | Securities held to maturity | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 1,893 | 3,955 |
Carrying Value | Securities available for sale | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 31,629 | 29,331 |
Carrying Value | Loans receivable | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 48,635 | 48,045 |
Carrying Value | FHLB and other stock, at cost | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 354 | 335 |
Carrying Value | Accrued interest receivable | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 461 | 443 |
Carrying Value | Deposits | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial liabilities: | 73,050 | 74,288 |
Carrying Value | FHLB Advances | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial liabilities: | 3,700 | 3,000 |
Estimate Fair Value | Cash and cash equivalents | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 1,538 | 2,923 |
Estimate Fair Value | Securities held to maturity | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 1,942 | 4,011 |
Estimate Fair Value | Securities available for sale | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 31,629 | 29,331 |
Estimate Fair Value | Loans receivable | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 48,827 | 48,488 |
Estimate Fair Value | FHLB and other stock, at cost | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 354 | 335 |
Estimate Fair Value | Accrued interest receivable | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial assets: | 461 | 443 |
Estimate Fair Value | Deposits | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial liabilities: | 73,096 | 74,308 |
Estimate Fair Value | FHLB Advances | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial liabilities: | $ 3,702 | $ 3,001 |