Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2017 | Feb. 14, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Equitable Financial Corp. | |
Entity Central Index Key | 1,635,626 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,359,845 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Jun. 30, 2017 |
Assets | ||
Cash and due from financial institutions | $ 4,023,310 | $ 4,881,007 |
Interest-earning deposits | 879,000 | |
Total cash and due from financial institutions and interest-earning deposits | 4,902,310 | 4,881,007 |
Securities available-for-sale | 1,344,367 | 1,410,955 |
Securities held-to-maturity | 718,955 | 735,978 |
Federal Home Loan Bank stock, at cost | 283,300 | 453,400 |
Loans, net of allowance for loan losses of $4,462,000 and $3,555,000, respectively | 250,963,387 | 236,545,125 |
Premises and equipment, net | 5,384,529 | 5,424,855 |
Foreclosed assets, net | 744,786 | 223,200 |
Accrued interest receivable | 1,451,427 | 1,297,908 |
Deferred taxes, net | 830,875 | 862,009 |
Customer list intangible | 1,466,822 | 289,058 |
Other assets | 2,186,652 | 1,718,993 |
Total assets | 270,277,410 | 253,842,488 |
Liabilities: | ||
Noninterest-bearing deposits | 30,059,481 | 29,546,051 |
Interest-bearing deposits | 196,141,018 | 179,512,265 |
Total deposits | 226,200,499 | 209,058,316 |
Federal funds purchased | 150,000 | 399,000 |
Federal Home Loan Bank borrowings | 5,000,000 | 6,745,400 |
Advance payments from borrowers for taxes and insurance | 526,189 | 432,960 |
Accrued interest payable and other liabilities | 1,711,551 | 820,229 |
Total liabilities | 233,588,239 | 217,455,905 |
Common stock in ESOP subject to contingent repurchase obligation | 874,714 | 815,280 |
Stockholders’ equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized 3,361,845 and 3,372,532 shares issued and outstanding at December 31, 2017 and June 30, 2017, respectively | 33,618 | 33,725 |
Additional paid-in capital | 25,683,531 | 25,794,124 |
Retained earnings | 12,695,957 | 12,474,958 |
Unearned ESOP shares | (1,038,496) | (1,107,692) |
Shares reserved for stock compensation | (671,730) | (797,950) |
Accumulated other comprehensive loss net of tax | (13,709) | (10,582) |
Reclassification of ESOP shares | (874,714) | (815,280) |
Total stockholders' equity | 35,814,457 | 35,571,303 |
Total liabilities and stockholders' equity | $ 270,277,410 | $ 253,842,488 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Jun. 30, 2017 |
Condensed Consolidated Statements of Financial Condition | ||
Allowance for loan losses | $ 4,462,000 | $ 3,555,000 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common Stock, shares issued | 3,361,845 | 3,372,532 |
Common Stock, shares outstanding | 3,361,845 | 3,372,532 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | ||||
Loans | $ 2,778,682 | $ 2,241,684 | $ 5,566,136 | $ 4,435,932 |
Securities | 15,914 | 10,353 | 32,827 | 19,083 |
Other | 8,965 | 3,983 | 10,206 | 16,375 |
Total interest income | 2,803,561 | 2,256,020 | 5,609,169 | 4,471,390 |
Interest expense: | ||||
Deposits | 401,904 | 265,795 | 761,438 | 532,180 |
Federal Home Loan Bank borrowings | 23,722 | 49,660 | ||
Other | 833 | 624 | 3,658 | 762 |
Total interest expense | 426,459 | 266,419 | 814,756 | 532,942 |
Net interest income | 2,377,102 | 1,989,601 | 4,794,413 | 3,938,448 |
Provision for loan losses | 662,905 | 169,109 | 867,339 | 321,873 |
Net interest income after provision for loan losses | 1,714,197 | 1,820,492 | 3,927,074 | 3,616,575 |
Noninterest income: | ||||
Service charges on deposit accounts | 165,703 | 150,372 | 326,578 | 317,568 |
Brokerage fee income | 177,226 | 206,790 | 311,508 | 385,237 |
Gain on sale of loans | 169,951 | 255,254 | 303,315 | 491,718 |
Other loan fees | 48,139 | 72,455 | 107,191 | 151,303 |
Other income | 148,442 | 36,431 | 202,320 | 68,301 |
Total noninterest income | 709,461 | 721,302 | 1,250,912 | 1,414,127 |
Noninterest expense: | ||||
Salaries and employee benefits | 1,241,917 | 1,129,214 | 2,548,336 | 2,313,000 |
Director and committee fees | 40,508 | 40,393 | 84,200 | 80,785 |
Data processing fees | 154,802 | 146,043 | 306,713 | 286,693 |
Occupancy and equipment | 239,870 | 224,157 | 500,107 | 482,530 |
Regulatory fees and deposit insurance premium | 63,374 | 29,582 | 113,257 | 83,199 |
Advertising and public relations | 58,553 | 47,281 | 114,245 | 95,172 |
Professional fees | 53,248 | 140,415 | 207,576 | 257,733 |
Supplies, telephone and postage | 75,986 | 71,875 | 138,958 | 132,090 |
Other expenses | 186,281 | 181,651 | 339,612 | 374,797 |
Total noninterest expense | 2,114,539 | 2,010,611 | 4,353,004 | 4,105,999 |
Income before income taxes | 309,119 | 531,183 | 824,982 | 924,703 |
Income tax expense | (416,438) | (221,719) | (603,983) | (350,181) |
Net income (loss) | $ (107,319) | $ 309,464 | $ 220,999 | $ 574,522 |
Basic earnings/(loss) per share (in dollars per share) | $ (0.03) | $ 0.09 | $ 0.07 | $ 0.17 |
Diluted earnings/(loss) per share (in dollars per share) | $ (0.03) | $ 0.09 | $ 0.07 | $ 0.17 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income/(loss) | $ (107,319) | $ 309,464 | $ 220,999 | $ 574,522 |
Other comprehensive loss: | ||||
Unrealized loss on securities available-for-sale, net of tax | (10,544) | (26,089) | (3,127) | (27,247) |
Comprehensive income/(loss) | $ (117,863) | $ 283,375 | $ 217,872 | $ 547,275 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - 6 months ended Dec. 31, 2017 - USD ($) | Common Equity | Additional Paid In Capital | Retained Earnings | Unearned ESOP Shares | Shares Reserved for Stock Compensation | Accumulated Other Comprehensive Income | Amount Reclassified on ESOP Shares | Total |
BALANCE at Jun. 30, 2017 | $ 33,725 | $ 25,794,124 | $ 12,474,958 | $ (1,107,692) | $ (797,950) | $ (10,582) | $ (815,280) | $ 35,571,303 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income | 220,999 | 220,999 | ||||||
Other comprehensive loss | (3,127) | (3,127) | ||||||
Release of 7,931 unearned ESOP shares | 12,956 | 69,196 | 82,152 | |||||
Stock compensation expense | (13,135) | 126,220 | 113,085 | |||||
Stock Buyback | (107) | (110,414) | (110,521) | |||||
Reclassification due to release and changes in fair value of common stock in ESOP subject to contingent repurchase obligation of ESOP shares | (59,434) | (59,434) | ||||||
BALANCE at Dec. 31, 2017 | $ 33,618 | $ 25,683,531 | $ 12,695,957 | $ (1,038,496) | $ (671,730) | $ (13,709) | $ (874,714) | $ 35,814,457 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 6 Months Ended |
Dec. 31, 2017shares | |
Condensed Consolidated Statements of Changes in Stockholders' Equity | |
Release of unearned ESOP shares (in shares) | 7,931 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 220,999 | $ 574,522 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 178,626 | 167,890 |
Federal Home Loan Bank stock dividends | (6,300) | (1,200) |
ESOP expense | 82,152 | 71,335 |
Stock compensation expense | 113,085 | 29,139 |
Amortization of deferred loan origination costs, net | 245,238 | 259,989 |
Amortization of intangibles | 11,118 | 11,118 |
Amortization of premiums and discounts | 1,060 | 6,799 |
Gain on sale of loans | (303,315) | (491,718) |
Loss on disposal of premises and equipment | 1,207 | |
Provision for loan losses | 867,339 | 321,873 |
Deferred taxes | 32,743 | (878) |
Loans originated for sale | (10,986,456) | (19,126,779) |
Proceeds from sale of loans | 10,785,239 | 19,376,441 |
Loss on investment in partnership | 34,832 | |
Changes in: | ||
Accrued interest receivable | (153,519) | (188,494) |
Other assets | (1,550,562) | (241,206) |
Accrued interest payable and other liabilities | 1,131,322 | (141,669) |
Net cash provided by operating activities | 668,769 | 663,201 |
Cash Flows from Investing Activities: | ||
Net change in loans | (15,653,871) | (15,511,942) |
Securities available-for-sale: | ||
Proceeds from calls and principal repayments | 60,851 | 136,838 |
Purchases | (985,400) | |
Securities held-to-maturity: | ||
Proceeds from calls and principal repayments | 16,963 | 27,732 |
Redemption of Federal Home Loan Bank stock | 397,900 | |
Purchases of Federal Home Loan Bank stock | (221,500) | |
Purchase of customer list intangible | (240,000) | |
Purchase of premises and equipment | (138,300) | (383,389) |
Net cash used in investing activities | (15,777,957) | (16,716,161) |
Cash Flows from Financing Activities: | ||
Net change in deposits | 17,142,183 | 1,311,158 |
Net change in federal funds purchased | (249,000) | 3,008,000 |
Proceeds from Federal Home Loan Bank borrowings | 23,000,000 | 2,000,000 |
Repayments of Federal Home Loan Bank borrowings | (24,745,400) | |
Net change in advance payments from borrowers for taxes and insurance | 93,229 | 53,510 |
Stock Buyback | (110,521) | (799,257) |
Net cash provided by financing activities | 15,130,491 | 5,573,411 |
Increase/(Decrease) in cash and cash equivalents | 21,303 | (10,479,549) |
Cash and Cash Equivalents: | ||
Beginning | 4,881,007 | 14,947,296 |
Ending | 4,902,310 | 4,467,747 |
Supplemental Cash Flow Information: | ||
Interest paid on deposits and borrowings | 787,745 | 536,618 |
Income taxes paid | 433,401 | $ 162,879 |
Supplemental Noncash Disclosure: | ||
Transfer of loans to foreclosed assets | 521,585 | |
Deferred payments on purchase of customer list intangible | $ 960,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation | |
Basis of Presentation | Note 1. The accompanying consolidated financial statements of Equitable Financial Corp. (the “Company”) and its wholly owned subsidiary Equitable Bank (the “Bank”) have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with SEC rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended June 30, 2017. The consolidated balance sheet of the Company as of June 30, 2017 has been derived from the audited consolidated balance sheet of the Company as of that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from those estimates. For further information with respect to significant accounting policies followed by the Company in preparation of the financial statements, refer to the Company’s annual report for the year ended June 30, 2017. The Bank is a federally chartered stock savings bank and a member of the Federal Home Loan Bank (“FHLB”) system. The Bank maintains insurance on deposit accounts with the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | Note 2. In May 2014, the Financial Accounting Standards Board (“the FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. This ASU is effective for the Company beginning with the fiscal year ending June 30, 2019. The FASB issued this ASU to clarify the principles for recognizing revenue and to develop a common revenue standard. The Company believes this will have a minimal impact on its financial statements. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, intended to improve financial reporting about leasing transactions. This ASU is effective for the Company with the interim period beginning July 1, 2019. We are currently evaluating the effect of this proposal on our financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The purpose of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity. This ASU replaces the current incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. This ASU is expected to have an impact on the Company’s consolidated financial statements. The Company is currently evaluating the effect this will have on its financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows; Classification of Certain Cash Receipts and Cash Payments. The purpose of this ASU is to address existing diversity in practice related to specific cash flow issues. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. The purpose of this ASU is to improve the accounting for income tax consequences of intra-entity transfers of assets other than inventory. This ASU will be effective for annual reporting periods beginning after December 15, 2017. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other. The purpose of this ASU is to simplify how an entity is required to test goodwill for impairment. This ASU will be effective for annual fiscal years beginning after December 15, 2019. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In February 2017, the FASB issued ASU 2017-05 Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets. The purpose of this ASU is to clarify the scope for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers and add guidance for partial sales of nonfinancing assets. This ASU is effective for the Company beginning with the fiscal year ending June 30, 2019. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-08 Receivables – Nonrefundable Fees and Other Costs. The purpose of this ASU is to shorten the amortization period of certain callable debt securities held at a premium. This ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 Compensation – Stock Compensation. The purpose of this ASU is to provide clarity and reduce both diversity in practice and cost and complexity when applying the guidance in Topic 718, Compensation – Stock Compensation, to a change to the terms or conditions of a share-based payment award. This ASU will be effective for annual periods, and interim periods within those annual periods, beginning December 15, 2017. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In July 2017, the FASB issued ASU 2017-11 Earnings Per Share, Distinguishing Liabilities from Equity, and Derivatives and Hedging. The purpose of this ASU is to address complexity of accounting for certain financial instruments with down round features and the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity. This ASU is effective for fiscal years beginning after December 15, 2019. This Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12 Derivatives and Hedging. The purpose of this ASU is to improve the hedge accounting model to facilitate financial reporting that more closely reflects an entity’s risk management activities. This ASU will be effective for fiscal years beginning after December 15, 2018. This Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. |
Securities
Securities | 6 Months Ended |
Dec. 31, 2017 | |
Securities | |
Securities | Note 3. The fair value of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows: Gross Gross Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value U.S. Government-sponsored agencies securities $ 988,146 $ — $ (20,252) $ 967,894 Residential mortgage-backed securities 376,992 1,085 (1,604) 376,473 $ 1,365,138 $ 1,085 $ (21,856) $ 1,344,367 Gross Gross Amortized Unrealized Unrealized June 30, 2017 Cost Gains Losses Fair Value U.S. Government-sponsored agencies securities $ 986,919 $ — $ (17,974) $ 968,945 Residential mortgage-backed securities 440,070 1,973 (33) 442,010 $ 1,426,989 $ 1,973 $ (18,007) $ 1,410,955 The carrying amount, unrecognized gross gains and losses, and fair value of securities held-to-maturity are as follows: Gross Gross Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value Residential mortgage-backed securities $ 118,955 $ 7,228 $ — $ 126,183 Municipal securities 600,000 — (2,564) 597,436 $ 718,955 $ 7,228 $ (2,564) $ 723,619 Gross Gross Amortized Unrealized Unrealized June 30, 2017 Cost Gains Losses Fair Value Residential mortgage-backed securities $ 135,978 $ 10,279 $ — $ 146,257 Municipal securities 600,000 — (384) 599,616 $ 735,978 $ 10,279 $ (384) $ 745,873 Securities available-for-sale and held-to-maturity consist of investments in bonds securitized by U.S. Government sponsored agencies, local municipal securities and mortgage-backed securities securitized by the Government National Mortgage Association. The contractual maturities of the residential mortgage-backed securities at December 31, 2017 are not disclosed because the securities are not due at a single maturity date. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Approximately $400,000 in municipal securities will mature in the year ending June 30, 2019 with the remaining balance maturing in the year ending June 30, 2020. Approximately $981,000 of U.S. Government sponsored agency bonds will mature in the year ending June 30, 2023. There were no sales of securities for the six months ended December 31, 2017 and 2016. The duration of gross unrealized losses is not disclosed as such amounts are immaterial to the consolidated financial statements. The Company has not recognized other-than-temporary impairment on any securities for the six months ended December 31, 2017 and 2016. |
Loans
Loans | 6 Months Ended |
Dec. 31, 2017 | |
Loans | |
Loans | Note 4. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at their outstanding unpaid principal balances, less an allowance for loan losses, premiums and discounts on loans purchased, and net deferred loan fees/costs. Interest income on loans is recognized over the term of the loan and is calculated using the simple interest method on principal amounts outstanding. Direct loan origination fees and costs are generally being deferred and the net amounts amortized as an adjustment of the related loan's yield. The Company generally amortizes these amounts over the contractual life. Direct loan origination fees and costs related to loans sold to unrelated third parties are recognized as income or expense in the current consolidated statement of income. The Company’s portfolio segments are as follows: · Commercial · Agricultural · Residential real estate · Other The Company’s classes of loans are as follows: · Commercial – operating · Commercial – real estate · Agricultural – operating · Agricultural – real estate · Residential real estate – 1-4 family · Residential real estate – home equity · Other – construction and land · Other – consumer Loans are as follows: December 31, 2017 June 30, 2017 Commercial: Operating $ 20,053,461 $ 20,139,045 Real estate 93,249,454 86,809,938 Agricultural: Operating 29,712,495 26,739,407 Real estate 30,910,292 31,105,790 Residential real estate: 1-4 family 45,995,076 43,060,013 Home equity 12,074,946 11,748,363 Other: Construction and land 19,087,822 16,175,698 Consumer 3,670,362 3,674,674 Total loans 254,753,908 239,452,928 Deferred loan origination costs, net 671,479 647,197 Allowance for loan losses (4,462,000) (3,555,000) (3,790,521) (2,907,803) Loans, net $ 250,963,387 $ 236,545,125 For all portfolio segments, the allowance for loan losses is maintained at the level considered adequate by management of the Company to provide for losses that are probable. The allowance is increased by provisions charged to operating expense and reduced by net charge-offs. Subsequent recoveries, if any, are credited to the allowance. In determining the adequacy of the allowance balance, the Company makes continuous evaluations of the loan portfolio and related off-balance sheet commitments, considers current economic conditions, historical loan loss experience, review of specific problem loans and other factors. Changes in the allowance for loan losses, by portfolio segment are summarized as follows: Residential Commercial Agricultural Real Estate Other Total For the three months ended December 31, 2017 Balance, beginning $ 1,796,000 $ 947,000 $ 689,000 $ 327,000 $ 3,759,000 Provision charged to expense 610,187 33,000 25,707 (5,989) 662,905 Recoveries 39,813 1,293 1,724 42,830 Loans charged off — — — (2,735) (2,735) Balance, ending $ 2,446,000 $ 980,000 $ 716,000 $ 320,000 $ 4,462,000 Residential Commercial Agricultural Real Estate Other Total For the three months ended December 31, 2016 Balance, beginning $ 1,393,510 $ 802,000 $ 617,000 $ 243,000 $ 3,055,510 Provision charged to expense 59,608 46,000 17,252 46,249 169,109 Recoveries 14,882 — 842 238 15,962 Loans charged off — — (94) (2,487) (2,581) Balance, ending $ 1,468,000 $ 848,000 $ 635,000 $ 287,000 $ 3,238,000 Residential Commercial Agricultural Real Estate Other Total For the six months ended December 31, 2017 Balance, beginning $ 1,703,000 $ 918,000 $ 656,000 $ 278,000 $ 3,555,000 Provision charged to expense 702,141 62,000 58,169 45,029 867,339 Recoveries 40,859 — 1,831 1,878 44,568 Loans charged off — — — (4,907) (4,907) Balance, ending $ 2,446,000 980,000 716,000 320,000 $ 4,462,000 Residential Commercial Agricultural Real Estate Other Total For the six months ended December 31, 2016 Balance, beginning $ 1,337,000 $ 738,000 $ 655,000 $ 217,000 $ 2,947,000 Provision charged to expense 156,311 110,000 (20,973) 76,535 321,873 Recoveries 22,556 — 1,067 1,202 24,825 Loans charged off (47,867) — (94) (7,737) (55,698) Balance, ending $ 1,468,000 $ 848,000 $ 635,000 $ 287,000 $ 3,238,000 For commercial loans, agricultural loans, and construction and land loans the allowance for estimated losses on loans consists of specific and general components. The specific component relates to loans that are classified as impaired, as defined below. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. For commercial loans, agricultural loans, and construction and land loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a case-by-case basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The general component consists of quantitative and qualitative factors and covers non-impaired loans. The quantitative factors are based on historical charge-off experience. The qualitative factors are determined based on an assessment of internal and/or external influences on credit quality that are not fully reflected in the historical loss data. The Company’s credit quality indicator for all loans excluding commercial loans is past due or performance status. The Company’s credit quality indicator for commercial loans is internal risk ratings. For residential real estate loans and consumer and other loans, these large groups of smaller balance homogenous loans are collectively evaluated for impairment. In estimating the allowance for loan losses for these loans, the Company applies quantitative and qualitative factors on a portfolio segment basis. Quantitative factors are based on historical charge-off experience and qualitative factors are based on an assessment of internal and/or external influences on credit quality that are not fully reflected in the historical loss data. Accordingly, the Company generally does not separately identify individual residential real estate loans and/or consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Troubled debt restructures are considered impaired loans and are subject to the same allowance methodology as described above for impaired loans by portfolio segment. The allowance for loan losses, by impairment evaluation and portfolio segment is summarized as follows: Residential Commercial Agricultural Real Estate Other Total December 31, 2017 Allowance for loans individually evaluated for impairment $ 676,799 $ 29,730 $ 50,348 $ 1,387 $ 758,264 Allowance for loans collectively evaluated for impairment 1,769,201 950,270 665,652 318,613 3,703,736 $ 2,446,000 $ 980,000 $ 716,000 $ 320,000 $ 4,462,000 Loans individually evaluated for impairment $ 3,310,075 $ 486,057 $ 2,711,366 $ 17,337 $ 6,524,835 Loans collectively evaluated for impairment 109,992,840 60,136,730 55,358,656 22,740,847 248,229,073 $ 113,302,915 $ 60,622,787 $ 58,070,022 $ 22,758,184 $ 254,753,908 Residential Commercial Agricultural Real Estate Other Total June 30, 2017 Allowance for loans individually evaluated for impairment $ 6,487 $ 17,973 $ 29,271 $ 1,949 $ 55,680 Allowance for loans collectively evaluated for impairment 1,696,513 900,027 626,729 276,051 3,499,320 $ 1,703,000 $ 918,000 $ 656,000 $ 278,000 $ 3,555,000 Loans individually evaluated for impairment $ 870,377 $ 864,357 $ 3,142,020 $ 20,408 $ 4,897,162 Loans collectively evaluated for impairment 106,078,606 56,980,840 51,666,356 19,829,964 234,555,766 $ 106,948,983 $ 57,845,197 $ 54,808,376 $ 19,850,372 $ 239,452,928 Generally, for all classes of loans, loans are considered past due when contractual payments are delinquent for 31 days or greater. For all classes of loans, loans will generally be placed on nonaccrual status when the loan has become greater than 90 days past due; or when management believes, after considering collection efforts and other factors, that the borrower’s financial condition is such that collection of interest is doubtful. When a loan is placed on nonaccrual status, payments received will be applied to the principal balance. However, interest may be taken on a cash basis in the event the loan is fully secured and the risk of loss is minimal. Previously recorded but uncollected interest on a loan placed in nonaccrual status is accounted for as follows: if the previously accrued but uncollected interest and the principal amount of the loan is protected by sound collateral value based upon a current, independent qualified appraisal, such interest may remain on the Company’s books. If such interest is not so protected, it is considered a loss with the amount thereof recorded in the current year being reversed against current interest income, and the amount recorded in the prior year being charged against the allowance for possible loan losses. For all classes of loans, nonaccrual loans may be restored to accrual status provided the following criteria are met: · The loan is current, and all principal and interest amounts contractually due have been made · The loan is well secured and in the process of collection · Prospects for future principal and interest payments are not in doubt The aging in terms of unpaid principal balance of the loan portfolio, by classes of loans is summarized as follows: > 90 days 31-60 days 61-90 days Past Due Non accrual Current Past Due Past Due (Nonaccrual) Total Loans December 31, 2017 Classes of loans: Commercial: Operating $ 19,899,428 $ 79,207 $ — $ 74,826 $ 20,053,461 $ 346,184 Real estate 93,249,454 — — — 93,249,454 613,204 Agricultural: Operating 29,712,495 — — — 29,712,495 — Real estate 30,439,235 — — 471,057 30,910,292 486,057 Residential real estate: 1-4 family 45,669,062 13,614 — 312,400 45,995,076 812,504 Home equity 12,074,946 — — — 12,074,946 19,700 Other: Construction and land 19,087,822 — — — 19,087,822 — Consumer 3,636,137 32,203 — 2,022 3,670,362 19,360 $ 253,768,579 $ 125,024 $ — $ 860,305 $ 254,753,908 $ 2,297,009 > 90 days 31-60 days 61-90 days Past Due Non accrual Current Past Due Past Due (Nonaccrual) Total Loans June 30, 2017 Classes of loans: Commercial: Operating $ 20,072,350 $ 33,060 $ 13,240 $ 20,395 $ 20,139,045 $ 154,671 Real estate 86,809,938 — — — 86,809,938 640,881 Agricultural: Operating 26,699,805 32,754 — 6,848 26,739,407 6,848 Real estate 30,263,281 47,900 — 794,609 31,105,790 857,509 Residential real estate: 1-4 family 42,722,767 164,549 — 172,697 43,060,013 675,197 Home equity 11,748,363 — — — 11,748,363 22,649 Other: Construction and land 16,175,698 — — — 16,175,698 — Consumer 3,670,927 — 3,747 — 3,674,674 24,124 $ 238,163,129 $ 278,263 $ 16,987 $ 994,549 $ 239,452,928 $ 2,381,879 For commercial, agriculture, and construction and land loans, the Company utilizes the following internal risk rating scale: Highest Quality (rating 1) -- Loans represent a credit extension of the highest quality. Excellent liquidity, management and character in an industry with favorable conditions. High quality financial information, history of strong cash flows and superior collateral including readily marketable assets, prime real estate, U.S. government securities, U.S. government agencies, highly rated municipal bonds, insured savings accounts, and insured certificates of deposit drawn on high-quality financial institutions. Good Quality (rating 2) -- Loans which have a sound primary and secondary source of repayment. Strong to good liquidity, management and character in an industry with favorable conditions. Good quality financial information and margins of cash flow coverage is consistently good. Loans may be unsecured, secured by quality (but less readily marketable) assets, high quality real estate or traded stocks, lower grade municipal bonds (which must still be investment grade), and uninsured certificates of deposit on other financial institutions may also be included in this grade. Acceptable Quality (rating 3) -- Loans where the borrower is a reasonable credit risk and demonstrates the ability to repay the debt from normal business operations. Good liquidity, management and character in an industry that is more sensitive to external factors. Alternative sources of refinancing may be less available in periods of uncertain economic conditions. Term debt is moderate but cash flow margins fall within bank policy guidelines. Quality of financial information is adequate but is not as detailed and sophisticated as information found on higher-grade loans. Secured by business assets that conform to usual lending parameters for margin and eligibility or real estate that is deemed to be of satisfactory quality in an area that may not be prime but still within viable economic centers. Fair Quality (rating 4) -- Loans where the borrower is a reasonable credit risk but shows a more erratic earnings history (a loss may have been realized in the past four years). Liquidity is limited and primary repayment is susceptible to unfavorable external factors. Industry characteristics are generally stable. Borrower is more highly leveraged with increased levels of term debt. Cash flow margins remain adequate but may not fall within the policy guidelines. Quality of financial information is adequate and interim reporting may be required. Secured by business assets with an adequate collateral margin or real estate that is of fair quality and location. Property may have limited alternative uses and may be considered a "special use" facility. Special Mention (rating 5) -- Loans in this category have the potential for developing weaknesses that deserve extra attention from the account manager and other management personnel. If the developing weakness is not corrected or mitigated, the ability of the borrower to repay the Company's debt in the future may deteriorate. This grade should not be assigned to loans that bear certain peculiar risks normally associated with the type of financing involved, unless circumstances have caused the risk to increase to a level higher than would have been acceptable when the credit was originally approved. If a loan's actual, not potential, weakness or problems are clearly evident and significant it should generally be graded in one of the following grade categories. Substandard (rating 6) -- Loans and other credit extensions are considered to be inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. These loans, even if apparently protected by collateral value, have a well-defined weakness or weaknesses that jeopardize the liquidation of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. Doubtful (rating 7) -- Loans and other credit extensions have all the weaknesses inherent in those graded "6" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include: proposed merger, acquisition, or liquidation actions; capital injection; perfecting liens on collateral and refinancing plans. Loans in this classification should be placed in non-accrual status, with collections applied to principal. Loss (rating 8) -- Loans are considered uncollectible and cannot be justified as a viable asset of the Bank. This classification does not mean the loan has absolutely no recovery value. However, it is not prudent to delay writing off this loan even though partial recovery may be obtained in the future. For commercial, agricultural and construction and land loans or credit relationships with aggregate exposure greater than $250,000, a loan review is required within 12 months of the most recent credit review. The reviews are completed in enough detail to, at a minimum, validate the risk rating. Additionally, the reviews shall determine whether any documentation exceptions exist, appropriate written analysis is included in the loan file, and whether credit policies have been properly adhered to. For each class of loans, the following summarizes the unpaid principal balance by credit quality indicator as of: Other — Commercial — Commercial — Agricultural — Agricultural — Construction Operating Real Estate Operating Real Estate and Land Total December 31, 2017 Internally assigned risk rating: Highest Quality (rating 1) $ — $ — $ 364,038 $ 302,991 $ — $ 667,029 Good Quality (rating 2) 151,182 11,031,355 3,265,475 3,497,478 9,166 17,954,656 Acceptable Quality (rating 3) 6,959,993 43,807,603 10,497,020 7,167,665 10,923,816 79,356,097 Fair Quality (rating 4) 11,613,697 32,006,136 14,379,528 18,058,471 7,596,154 83,653,986 Special Mention (rating 5) 68,268 148,000 987,950 295,000 558,686 2,057,904 Substandard (rating 6) 1,260,321 6,256,360 218,484 1,588,687 — 9,323,852 Doubtful (rating 7) — — — — — — Loss (rating 8) — — — — — — $ 20,053,461 $ 93,249,454 $ 29,712,495 $ 30,910,292 $ 19,087,822 $ 193,013,524 Other — Commercial — Commercial — Agricultural — Agricultural — Construction Operating Real Estate Operating Real Estate and Land Total June 30, 2017 Internally assigned risk rating: Highest Quality (rating 1) $ — $ — $ 324,038 $ 326,045 $ — $ 650,083 Good Quality (rating 2) 177,795 6,638,998 5,185,147 3,541,630 2,868,632 18,412,202 Acceptable Quality (rating 3) 8,470,283 44,240,531 9,271,425 12,354,765 10,426,245 84,763,249 Fair Quality (rating 4) 11,313,276 31,603,455 11,489,750 13,116,352 2,880,821 70,403,654 Special Mention (rating 5) — 1,948,017 403,234 — — 2,351,251 Substandard (rating 6) 177,691 2,378,937 65,813 1,766,998 — 4,389,439 Doubtful (rating 7) — — — — — — Loss (rating 8) — — — — — — $ 20,139,045 $ 86,809,938 $ 26,739,407 $ 31,105,790 $ 16,175,698 $ 180,969,878 Residential RE — Residential RE — Other — 1-4 Family Home Equity Consumer Total December 31, 2017 Delinquency status*: Performing $ 45,188,972 $ 12,055,246 $ 3,618,799 $ 60,863,017 Nonperforming 806,104 19,700 51,563 877,367 $ 45,995,076 $ 12,074,946 $ 3,670,362 $ 61,740,384 Residential RE — Residential RE — Other — 1-4 Family Home Equity Consumer Total June 30, 2017 Delinquency status*: Performing $ 42,220,268 $ 11,725,714 $ 3,650,519 $ 57,596,501 Nonperforming 839,745 22,649 24,155 886,549 $ 43,060,013 $ 11,748,363 $ 3,674,674 $ 58,483,050 * At December 31, 2017 and June 30, 2017, the Company had no loans greater than 90 days past due and still accruing. For commercial, agricultural, and construction and land loans, the Company’s credit quality indicator is internally assigned risk ratings. Each loan is assigned a risk rating upon origination. The risk rating is reviewed every 12 months, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. For residential real estate and consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system. Loans, by classes of loans, considered to be impaired are summarized as follows: Unpaid Recorded Principal Related Investment Balance Allowance December 31, 2017 Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 176,325 $ 171,824 $ — Real estate 1,938,846 1,928,763 — Residential real estate: 1-4 family 1,863,107 1,853,218 — Home equity 6,124 6,112 — 3,984,402 3,959,917 — Impaired loans with specific allowance recorded: Commercial: Operating 1,214,347 1,209,488 676,799 Agricultural: Real estate 538,192 486,057 29,730 Residential real estate: 1-4 family 688,914 668,781 37,656 Home equity 183,530 183,255 12,692 Other: Consumer 17,404 17,337 1,387 2,642,387 2,564,918 758,264 Total impaired loans: Commercial: Operating 1,390,672 1,381,312 676,799 Real estate 1,938,846 1,928,763 — Agricultural: Real estate 538,192 486,057 29,730 Residential real estate: 1-4 family 2,552,021 2,521,999 37,656 Home equity 189,654 189,367 12,692 Other: Consumer 17,404 17,337 1,387 $ 6,626,789 $ 6,524,835 $ 758,264 Unpaid Recorded Principal Related Investment Balance Allowance June 30, 2017 Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 164,823 $ 164,128 $ — Real estate 643,226 640,881 — Agricultural: Operating 7,503 6,848 — Real estate 432,468 371,452 — Residential real estate: 1-4 family 2,448,574 2,439,137 — Home equity 7,880 7,868 — 3,704,474 3,630,314 — Impaired loans with specific allowance recorded: Commercial: Operating 65,701 65,369 6,487 Agricultural: Real estate 525,068 486,056 17,973 Residential real estate: 1-4 family 695,327 679,474 28,857 Home equity 15,553 15,541 414 Other: Consumer 20,433 20,408 1,949 1,322,082 1,266,848 55,680 Total impaired loans: Commercial: Operating 230,524 229,497 6,487 Real estate 643,226 640,881 — Agricultural: Operating 7,503 6,848 — Real estate 957,536 857,508 17,973 Residential real estate: 1-4 family 3,143,901 3,118,611 28,857 Home equity 23,433 23,409 414 Other: Consumer 20,433 20,408 1,949 $ 5,026,556 $ 4,897,162 $ 55,680 Impaired loans, for which no allowance has been provided as of December 31, 2017 and June 30, 2017, have adequate collateral, based on management’s current estimates. For the three months ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 167,811 $ 1,322 $ 190,581 $ 2,611 Real estate 1,284,129 6,811 335,315 2,375 Agricultural: Operating — — 48,507 3,328 Real estate — — 432,437 135 Residential real estate: 1-4 family 1,876,204 23,076 3,103,372 36,162 Home equity 6,193 93 8,936 150 Other: Consumer — — 27,440 270 3,334,337 31,302 4,146,588 45,031 Impaired loans with specific allowance recorded: Commercial: Operating 1,200,206 16,844 59,569 606 Real estate — — 47,765 — Agricultural: Real estate 534,915 265 493,981 — Residential real estate: 1-4 family 690,238 7,037 577,070 3,551 Home equity 99,269 288 17,944 156 Other: Consumer 18,165 206 — — 2,542,793 24,640 1,196,329 4,313 Total impaired loans: Commercial: Operating 1,368,017 18,166 250,150 3,217 Real estate 1,284,129 6,811 383,080 2,375 Agricultural: Operating — — 48,507 3,328 Real estate 534,915 265 926,418 135 Residential real estate: 1-4 family 2,566,442 30,113 3,680,442 39,713 Home equity 105,462 381 26,880 306 Other: Consumer 18,165 206 27,440 270 $ 5,877,130 $ 55,942 $ 5,342,917 $ 49,344 For the six months ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 170,574 $ 2,365 $ 178,100 $ 4,115 Real estate 1,291,036 13,772 335,315 2,375 Agricultural: Operating — — 47,927 3,328 Real estate — — 442,515 363 Residential real estate: 1-4 family 1,889,107 45,581 3,116,634 75,183 Home equity 6,261 189 9,137 309 Other: Consumer — — 27,972 642 3,356,978 61,907 4,157,600 86,315 Impaired loans with specific allowance recorded: Commercial: Operating 1,055,685 30,439 53,373 1,122 Real estate — — 47,489 — Agricultural: Operating — — — — Real estate 531,630 510 490,390 — Residential real estate: 1-4 family 692,121 13,708 576,135 5,759 Home equity 99,542 532 17,923 388 Other: Consumer 18,918 382 — — 2,397,896 45,571 1,185,310 7,269 Total impaired loans: Commercial: Operating 1,226,259 32,804 231,473 5,237 Real estate 1,291,036 13,772 382,804 2,375 Agricultural: Operating — — 47,927 3,328 Real estate 531,630 510 932,905 363 Residential real estate: 1-4 family 2,581,228 59,289 3,692,769 80,942 Home equity 105,803 721 27,060 697 Other: Consumer 18,918 382 27,972 642 $ 5,754,874 $ 107,478 $ 5,342,910 $ 93,584 The Company's troubled debt restructuring as of December 31, 2017 and June 30, 2017 were not material to the consolidated financial statements. |
Borrowings
Borrowings | 6 Months Ended |
Dec. 31, 2017 | |
Borrowings | |
Borrowings | Note 5. Our borrowings consist primarily of advances from FHLB of Topeka. At December 31, 2017, we had access to FHLB advances up to $39.5 million. To the extent such borrowings have different terms to repricing than our deposits, they can change our interest rate risk profile. The following table sets forth information concerning balances and interest rates on our advances at and during the six months ending December 31, 2017 and 2016. At or For the Six Months Ended December 31, 2017 December 31, 2016 Federal Home Loan Bank Advances: Maximum outstanding at any month end $ 16,008,400 $ 2,000,000 Balance at the end of period 5,000,000 2,000,000 Average balance during period 7,912,071 666,000 Weighted average interest rate at the end of period 1.55 % 0.72 % Weighted average interest rate during period 1.42 % 0.72 % |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Dec. 31, 2017 | |
Regulatory Matters | |
Regulatory Matters | Note 6. The Bank is subject to regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. The prompt corrective action regulations provide five classifications, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and plans for capital restoration are required. Management believes, as of December 31, 2017, that the Bank meets all capital adequacy requirements to which it is subject. Actual capital levels and minimum required levels for the Bank were: Minimum Required to Be Well Capitalized Minimum Required for Under Prompt Capital Adequacy Corrective Action Purposes Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Total capital (to risk-weighted assets) $ 30,379 12.2 % $ 19,867 8.0 % $ 24,834 10.0 % Common equity Tier 1 capital (to risk-weighted assets) 27,257 11.0 % 11,175 4.5 % 16,142 6.5 % Tier 1 (core) capital (to risk-weighted assets) 27,257 11.0 % 14,900 6.0 % 19,867 8.0 % Tier 1 (core) capital (to adjusted total assets) 27,257 10.3 % 10,590 4.0 % 13,237 5.0 % June 30, 2017 Total capital (to risk-weighted assets) $ 30,893 13.2 % $ 18,740 8.0 % $ 23,425 10.0 % Common equity Tier 1 capital (to risk-weighted 27,956 11.9 % 10,541 4.5 % 15,226 6.5 % Tier 1 (core) capital (to risk-weighted assets) 27,956 11.9 % 14,055 6.0 % 18,740 8.0 % Tier 1 (core) capital (to adjusted total assets) 27,956 11.4 % 9,806 4.0 % 12,257 5.0 % Federal regulations require the Bank to comply with a Qualified Thrift Lender (“QTL”) test, which requires that 65% of assets be maintained in housing-related finance and other specified assets. If the QTL test is not met, limits are placed on growth, branching, new investment, FHLB advances, and dividends or the institution must convert to a commercial bank charter. Management believes the QTL test has been met. In July 2013, the Federal Reserve Board and the FDIC issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revised minimum capital requirements and adjusted prompt corrective action thresholds. The final rules revised the regulatory capital elements, added a new common equity Tier 1 capital ratio, increased the minimum Tier 1 capital ratio requirement, and implemented a new capital conservation buffer. The rules also permitted certain banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. Management chose the one-time election to retain the existing treatment. The final rules took effect for community banks on January 1, 2015, subject to a transition period for certain parts of the rules. The new minimum capital level requirements applicable to Equitable Bank are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 capital to risk-weighted assets ratio of 6% (increased from 4%); (iii) a total capital to risk-weighted assets ratio of 8% (unchanged from prior rules); and (iv) a Tier 1 leverage ratio of 4%. The rules also establish a “capital conservation buffer” of 2.5% above the new regulatory minimum capital ratios resulting in the following ratios: (i) a common equity Tier 1 capital ratio of 7%; (ii) a Tier 1 capital to risk-weighted assets ratio of 8.5%; (iii) a total capital to risk-weighted assets ratio of 10.5%; and a Tier 1 leverage ratio unchanged at 4%. The phase-in period for the capital conservation buffer requirement started January 1, 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. An institution is subject to further limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses of its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that can be utilized for such actions. The minimum requirements do not include the capital conservation buffer. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plan | |
Employee Benefit Plan | Note 7. Employee Benefit Plan The Company has a 401(k) and profit sharing plan (the “Plans”) covering substantially all employees. Annual contributions to the Plans are made at the discretion of and determined by the Board of Directors. Participant interests are vested over a period from one to five years of service. The Company made contributions of $68,715 and $56,532 during the six months ended December 31, 2017 and 2016, respectively. On November 8, 2005, the Company adopted an employee stock ownership plan (the “ESOP”) for the benefit of substantially all employees. The ESOP borrowed $1,292,620 from the Company and used those funds to acquire 129,262 shares of the Company’s stock at a price of $10.00 per share. On July 8, 2015, the ESOP borrowed $951,912 from the Company and used the funds to acquire 118,989 shares of the Company’s stock at a price of $8.00 per share. Shares purchased by the ESOP with the loan proceeds are held in a suspense account and are allocated to ESOP participants on a pro rata basis as principal and interest payments are made by the ESOP to the Company. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Company’s discretionary contributions to the ESOP and earnings on ESOP assets. Annual principal and interest payments from the note dated November 8, 2005 are approximately $145,000 until maturity at December 31, 2019. Annual principal and interest payments from the note dated July 8, 2015 are approximately $65,000 until maturity at July 8, 2035. As shares are released from collateral, the Company will report compensation expense equal to the current market price of the shares and the shares will become outstanding for earnings-per-share computations. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce accrued interest. Because participants may require the Company to purchase their ESOP shares upon termination of their employment, the fair value of all earned and allocated ESOP shares may become a liability. The ESOP has a plan year-end of December 31. The Company recorded compensation expense of $82,152 and $71,335 for the six months ended December 31, 2017 and 2016, respectively. Shares held by the ESOP were as follows: December 31, 2017 June 30, 2017 Allocated shares 80,249 86,104 Shares allocated to be released 15,856 7,929 Unearned ESOP shares 126,912 134,843 Total ESOP shares 223,017 228,876 Fair value of unearned ESOP shares $ 1,383,341 $ 1,348,430 Fair value of allocated shares subject to repurchase obligation $ 874,714 $ 815,280 The Company approved the Equitable Financial Corp. 2006 Equity Incentive Plan (“2006 Plan”) in November 2006 and the Equitable Financial Corp. 2016 Equity Incentive Plan (“2016 Plan”) in November 2016. Both plans provide for awards of stock options and restricted stock to officers, employees and directors. The cost of the plan is based on the fair value of the awards at the grant date. The fair value of stock is based on the closing price of the Company’s stock on the grant date. The cost of the awards are being recognized over the five-year vesting periods during which participants are required to provide services in exchange for the awards. As of December 31, 2016 the 2006 Plan has terminated. The maximum number of shares authorized under the 2016 Plan is 198,316 stock options and 79,326 shares of restricted stock to employees and directors. As of December 31, 2017, 158,653 stock options and 63,461 stock awards were awarded. These options and awards were all granted in Febuary 2017 at an exercise price of $9.90 per share. The table below represents the stock option activity for the period shown: Weighted Remaining Average Contractual Awards Exercise Price Life (Years) Options outstanding at July 1, 2017 158,653 $ 9.90 9.20 Granted — — — Options outstanding at December 31, 2017 158,653 $ 9.90 9.20 The cost of the stock options will be amortized in monthly installments over the noted five-year vesting period, with the first vesting date on February 21, 2018. Stock option expense for the six months ended December 31, 2017 was $21,101. There was no compensation expense associated with stock options for the six months ended December 31, 2016. Effective July 1, 2017, the Company adopted ASU 2016-09. This ASU did not have a material impact on the Company’s financial statements. Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of the grant. Unvested restricted stock awards may not be disposed of or transferred during the vesting period. Restricted stock awards carry with them the right to receive dividends. As of December 31, 2017, there was $580,254 of total unrecognized compensation costs related to non-vested restricted stock awards. The cost is expected to be recognized over a weighted-average period of 3.9 years. Compensation expense attributable to the restricted stock awards totaled $91,984 and $29,139 for the six months ended December 31, 2017 and 2016, respectively. The table below represents the restricted stock award activity for the period shown: Service-Based Weighted Stock Grant Date Awards Fair Value Non-vested at July 1, 2017 89,125 $ 8.52 Vested 7,294 5.40 Non-vested at December 31, 2017 81,831 $ 8.79 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Dec. 31, 2017 | |
Earnings per Share | |
Earnings per Share | Note 8. Amounts reported in earnings per share reflect earnings available to common stockholders for the period divided by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is calculated by dividing earnings available to common stockholders for the period by the sum of the weighted average common shares outstanding and the weighted average dilutive shares. The following table presents a reconciliation of the components used to compute basic earnings per share for the three and six months ended December 31, 2017 and 2016: For the three months ended For the six months ended December 31, December 31, 2017 2016 2017 2016 Weighted average common shares outstanding 3,146,289 3,284,562 3,150,652 3,286,340 Net income/(loss) available to common stockholders $ (107,319) $ 309,464 $ 220,999 $ 574,522 Basic earnings/(loss) per share $ (0.03) $ 0.09 $ 0.07 $ 0.17 The following table presents a reconciliation of the components used to compute diluted earnings per share for the three and six months ended December 31, 2017 and 2016: For the three months ended For the six months ended December 31, December 31, 2017 2016 2017 2016 Weighted average common shares outstanding 3,146,289 3,284,562 3,150,652 3,286,340 Weighted average of net additional shares from restricted stock awards 18,530 17,552 16,356 16,801 Weighted average number of shares outstanding 3,164,819 3,302,114 3,167,008 3,303,141 Net income/(loss) available to common stockholders $ (107,319) $ 309,464 $ 220,999 $ 574,522 Diluted earnings/(loss) per share $ (0.03) $ 0.09 $ 0.07 $ 0.17 As of December 31, 2017, 158,653 of the outstanding stock options were not included in the computation of diluted earnings per share because the exercise price of the stock options were greater than the average market price of the common shares. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | Note 9. Fair Value Measurements The Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification defines fair value, establishes a framework for measuring fair value and requires disclosure of fair value measurements. The fair value hierarchy set forth in the Topic is as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. There were no transfers between levels during the six months ended December 31, 2017, nor were there any changes in valuation techniques used for assets or liabilities measured at fair value at December 31, 2017. Assets and liabilities recorded at fair value on a recurring basis : A description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below: Securities Available-for-Sale — Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and June 30, 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurement at December 31, 2017 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Total Level 1 Level 2 Level 3 Assets Securities available-for-sale $ 1,344,367 $ — $ 1,344,367 $ — Fair Value Measurement at June 30, 2017 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Total Level 1 Level 2 Level 3 Assets Securities available-for-sale $ 1,410,955 $ — $ 1,410,955 $ — Assets and liabilities recorded at fair value on a nonrecurring basis : A description of the valuation methodologies used for assets and liabilities measured at fair value on a nonrecurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Impaired Loans — From time to time, a loan is considered impaired and an allowance for credit losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the collateral less estimated costs to sell. The fair value of collateral was determined based on appraisals. In some cases, adjustments were made to the appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral. When significant adjustments were based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement. Foreclosed Assets — Foreclosed assets are carried at estimated fair value of the property, less disposal costs. The fair value of the property is determined based upon appraisals. As with impaired loans, if significant adjustments are made to the appraised value, based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement. At December 31, 2017 and June 30, 2017 the fair value of impaired loans and foreclosed assets were immaterial. The Financial Instruments Topic of the FASB Accounting Standards Codification requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Fair value is determined under the framework discussed above. The Topic excludes all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following methods and assumptions used in estimating fair value disclosure for financial instruments are described below: Cash and due from financial institutions — For cash and due from financial institutions, the current carrying amount is a reasonable estimate of fair value. Interest-earning deposits — For interest-earning deposits, the current carrying amount is a reasonable estimate of fair value. Securities — The fair value of securities is determined using quoted prices, when available in an active market. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or a discounted cash flows model. Federal Home Loan Bank stock — For restricted equity securities, the carrying value approximates fair value. Loans, net — The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of variable rate loans approximates carrying value. Mortgage servicing rights and credit enhancement receivable — The fair value is based on a discounted cash flow analysis calculated using a proprietary valuation model from a third party. Deposits — The carrying value of noninterest-bearing deposits approximates fair value. The fair value of fixed rate deposits is estimated by discounting the future cash flows using the current rates for the same remaining maturities. Federal funds purchased — For federal funds purchased, the carrying value approximates fair value. Federal Home Loan Bank borrowings — The estimated fair value of fixed rate advances from the FHLB is determined by discounting the future cash flows of existing advances using rates currently available on advances from the FHLB having similar characteristics. Adjustable rate advances’ carrying value approximates fair value. Accrued interest — The carrying amounts of accrued interest approximate fair value. Off-balance sheet items — The fair value of off-balance-sheet items is based on current fees or cost that would be charged to enter into or terminate such arrangements. There were not considered material and are not presented in the below tables. The estimated fair value of financial instruments is as follows: Fair Value Carrying Estimated December 31, 2017 Hierarchy Level Amount Fair Value Financial assets: Cash and due from financial institutions Level 1 $ 4,023,310 $ 4,023,000 Interest-earning deposits Level 1 879,000 879,000 Securities available-for-sale See previous table 1,344,367 1,344,000 Securities held-to-maturity Level 2 718,955 724,000 Federal Home Loan Bank stock Level 1 283,300 283,000 Loans, net Level 2 250,963,387 247,636,000 Mortgage servicing rights Level 2 865,398 1,199,000 Credit enhancement receivable Level 2 97,001 97,000 Accrued interest receivable Level 1 1,451,427 1,451,000 Financial liabilities: Noninterest-bearing deposits Level 2 30,059,481 30,059,000 Interest-bearing deposits Level 2 196,141,018 196,831,000 Federal funds purchased Level 1 150,000 150,000 Federal Home Loan Bank Borrowings Level 2 5,000,000 5,000,000 Accrued interest payable and other liabilities Level 1 1,711,551 1,712,000 Fair Value Carrying Estimated June 30, 2017 Hierarchy Level Amount Fair Value Financial assets: Cash and due from financial institutions Level 1 $ 4,881,007 $ 4,881,000 Securities available-for-sale See previous table 1,410,955 1,411,000 Securities held-to-maturity Level 2 735,978 746,000 Federal Home Loan Bank stock Level 1 453,400 453,000 Loans, net Level 2 236,545,125 232,931,000 Mortgage servicing rights Level 2 852,715 1,089,000 Accrued interest receivable Level 1 1,297,908 1,298,000 Financial liabilities: Noninterest-bearing deposits Level 2 29,546,051 29,546,000 Interest-bearing deposits Level 2 179,512,265 185,040,000 Federal funds purchased Level 2 399,000 399,000 Federal Home Loan Bank borrowings Level 2 6,745,400 6,745,000 Accrued interest payable and other liabilities Level 1 820,229 820,000 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | Note 10. Accumulated other comprehensive loss components were as follows: December 31, 2017 June 30, 2017 Unrealized holding losses on securities available-for-sale $ (20,772) $ (16,034) Tax expense 7,063 5,452 $ (13,709) $ (10,582) |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Income Taxes | Note 11. The Companies deferred tax position was impacted as a result of the newly enacted Tax Cuts and Jobs Act (the “Act”) which was signed into law on December 22, 2017. The effect reflects the revaluation of our net deferred tax asset based on the new U.S. federal tax rate of 21% whereas the old rate was 34%. We have substantially completed our accounting for the newly enacted tax rates and we have made a reasonable estimate of the effects on our deferred tax balances and believe the actual results will not vary materially from those estimates. The federal tax rate is computed using a blended rate of approximately 28% as a result of part of the fiscal year being calculated at 34% and the other at 21%. Three months ended December 31, 2017 December 31, 2016 Provision computed at the statutory federal tax rate $ (56,097) $ (180,602) State income taxes, net of federal tax (10,589) (15,715) Release of unearned EOSP shares and stock awards 283 2,355 Nondeductible expenses (2,078) (2,066) Effect of Tax Cuts & Jobs Act (347,957) — Other — (25,691) $ (416,438) $ (221,719) Six months ended December 31, 2017 December 31, 2016 Provision computed at the statutory federal tax rate $ (231,490) $ (314,399) State income taxes, net of federal tax (26,990) (27,755) Release of unearned EOSP shares and stock awards 6,464 5,547 Nondeductible expenses (4,010) (3,714) Effect of Tax Cuts & Jobs Act (347,957) — Other — (9,860) $ (603,983) $ (350,181) |
Stock Buyback
Stock Buyback | 6 Months Ended |
Dec. 31, 2017 | |
Stock Buyback | |
Stock Buyback | Note 12. The Company has authorized two stock repurchase programs for an aggregate of 342,303 shares of the Company’s issued common stock. Under the first stock repurchase program, which was approved on October 7, 2016, the Company was authorized to repurchase up to 173,857 shares of the Company’s issued common stock. The first stock repurchase program expired on October 7, 2017. On November 21, 2017, a second repurchase program was approved, which authorized the repurchase up to 168,446 shares of the Company’s issued common stock. Under each repurchase program, repurchases were or will be conducted through open market purchases, which may include purchase under a trading plan adopted pursuant to SEC Rule 10b5-1, or through privately negotiated transactions. Repurchases will be made from time to time, depending on market conditions and other factors. There is no guarantee as to the exact number of shares to be repurchased by the Company. The following table provides information with respect to purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of the Company’s common stock during the six months ended December 31, 2017. Total Number of Shares Purchased Maximum Number of Weighted as Part of Publicly Shares that May Yet Be Total Number of Average Price Announced Plans Purchased Under the Period Shares Purchased Paid Per Share or Programs Plans or Programs 07/01/17 - 07/31/17 1,600 $ 10.20 169,686 4,171 08/01/17 - 08/31/17 2,000 10.15 171,686 2,171 09/01/17 - 09/30/17 — — 171,686 2,171 10/01/17 - 10/31/17 — — 171,686 2,171 11/01/17 - 11/30/17 436 10.40 172,122 168,010 12/01/17 - 12/31/17 6,500 10.35 179,058 161,510 Total 10,536 $ 10.29 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Securities | |
Schedule of securities available-for-sale | Gross Gross Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value U.S. Government-sponsored agencies securities $ 988,146 $ — $ (20,252) $ 967,894 Residential mortgage-backed securities 376,992 1,085 (1,604) 376,473 $ 1,365,138 $ 1,085 $ (21,856) $ 1,344,367 Gross Gross Amortized Unrealized Unrealized June 30, 2017 Cost Gains Losses Fair Value U.S. Government-sponsored agencies securities $ 986,919 $ — $ (17,974) $ 968,945 Residential mortgage-backed securities 440,070 1,973 (33) 442,010 $ 1,426,989 $ 1,973 $ (18,007) $ 1,410,955 |
Schedule of securities held-to-maturity | Gross Gross Amortized Unrealized Unrealized December 31, 2017 Cost Gains Losses Fair Value Residential mortgage-backed securities $ 118,955 $ 7,228 $ — $ 126,183 Municipal securities 600,000 — (2,564) 597,436 $ 718,955 $ 7,228 $ (2,564) $ 723,619 Gross Gross Amortized Unrealized Unrealized June 30, 2017 Cost Gains Losses Fair Value Residential mortgage-backed securities $ 135,978 $ 10,279 $ — $ 146,257 Municipal securities 600,000 — (384) 599,616 $ 735,978 $ 10,279 $ (384) $ 745,873 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Loans | |
Summary of loans | December 31, 2017 June 30, 2017 Commercial: Operating $ 20,053,461 $ 20,139,045 Real estate 93,249,454 86,809,938 Agricultural: Operating 29,712,495 26,739,407 Real estate 30,910,292 31,105,790 Residential real estate: 1-4 family 45,995,076 43,060,013 Home equity 12,074,946 11,748,363 Other: Construction and land 19,087,822 16,175,698 Consumer 3,670,362 3,674,674 Total loans 254,753,908 239,452,928 Deferred loan origination costs, net 671,479 647,197 Allowance for loan losses (4,462,000) (3,555,000) (3,790,521) (2,907,803) Loans, net $ 250,963,387 $ 236,545,125 |
Summary of changes in the allowance for loan losses by portfolio segment | Residential Commercial Agricultural Real Estate Other Total For the three months ended December 31, 2017 Balance, beginning $ 1,796,000 $ 947,000 $ 689,000 $ 327,000 $ 3,759,000 Provision charged to expense 610,187 33,000 25,707 (5,989) 662,905 Recoveries 39,813 1,293 1,724 42,830 Loans charged off — — — (2,735) (2,735) Balance, ending $ 2,446,000 $ 980,000 $ 716,000 $ 320,000 $ 4,462,000 Residential Commercial Agricultural Real Estate Other Total For the three months ended December 31, 2016 Balance, beginning $ 1,393,510 $ 802,000 $ 617,000 $ 243,000 $ 3,055,510 Provision charged to expense 59,608 46,000 17,252 46,249 169,109 Recoveries 14,882 — 842 238 15,962 Loans charged off — — (94) (2,487) (2,581) Balance, ending $ 1,468,000 $ 848,000 $ 635,000 $ 287,000 $ 3,238,000 Residential Commercial Agricultural Real Estate Other Total For the six months ended December 31, 2017 Balance, beginning $ 1,703,000 $ 918,000 $ 656,000 $ 278,000 $ 3,555,000 Provision charged to expense 702,141 62,000 58,169 45,029 867,339 Recoveries 40,859 — 1,831 1,878 44,568 Loans charged off — — — (4,907) (4,907) Balance, ending $ 2,446,000 980,000 716,000 320,000 $ 4,462,000 Residential Commercial Agricultural Real Estate Other Total For the six months ended December 31, 2016 Balance, beginning $ 1,337,000 $ 738,000 $ 655,000 $ 217,000 $ 2,947,000 Provision charged to expense 156,311 110,000 (20,973) 76,535 321,873 Recoveries 22,556 — 1,067 1,202 24,825 Loans charged off (47,867) — (94) (7,737) (55,698) Balance, ending $ 1,468,000 $ 848,000 $ 635,000 $ 287,000 $ 3,238,000 |
Summary of allowance for loan losses by impairment evaluation and portfolio segment | Residential Commercial Agricultural Real Estate Other Total December 31, 2017 Allowance for loans individually evaluated for impairment $ 676,799 $ 29,730 $ 50,348 $ 1,387 $ 758,264 Allowance for loans collectively evaluated for impairment 1,769,201 950,270 665,652 318,613 3,703,736 $ 2,446,000 $ 980,000 $ 716,000 $ 320,000 $ 4,462,000 Loans individually evaluated for impairment $ 3,310,075 $ 486,057 $ 2,711,366 $ 17,337 $ 6,524,835 Loans collectively evaluated for impairment 109,992,840 60,136,730 55,358,656 22,740,847 248,229,073 $ 113,302,915 $ 60,622,787 $ 58,070,022 $ 22,758,184 $ 254,753,908 Residential Commercial Agricultural Real Estate Other Total June 30, 2017 Allowance for loans individually evaluated for impairment $ 6,487 $ 17,973 $ 29,271 $ 1,949 $ 55,680 Allowance for loans collectively evaluated for impairment 1,696,513 900,027 626,729 276,051 3,499,320 $ 1,703,000 $ 918,000 $ 656,000 $ 278,000 $ 3,555,000 Loans individually evaluated for impairment $ 870,377 $ 864,357 $ 3,142,020 $ 20,408 $ 4,897,162 Loans collectively evaluated for impairment 106,078,606 56,980,840 51,666,356 19,829,964 234,555,766 $ 106,948,983 $ 57,845,197 $ 54,808,376 $ 19,850,372 $ 239,452,928 |
Summary of aging in terms of unpaid balance of the loan portfolio by classes of loans | > 90 days 31-60 days 61-90 days Past Due Non accrual Current Past Due Past Due (Nonaccrual) Total Loans December 31, 2017 Classes of loans: Commercial: Operating $ 19,899,428 $ 79,207 $ — $ 74,826 $ 20,053,461 $ 346,184 Real estate 93,249,454 — — — 93,249,454 613,204 Agricultural: Operating 29,712,495 — — — 29,712,495 — Real estate 30,439,235 — — 471,057 30,910,292 486,057 Residential real estate: 1-4 family 45,669,062 13,614 — 312,400 45,995,076 812,504 Home equity 12,074,946 — — — 12,074,946 19,700 Other: Construction and land 19,087,822 — — — 19,087,822 — Consumer 3,636,137 32,203 — 2,022 3,670,362 19,360 $ 253,768,579 $ 125,024 $ — $ 860,305 $ 254,753,908 $ 2,297,009 > 90 days 31-60 days 61-90 days Past Due Non accrual Current Past Due Past Due (Nonaccrual) Total Loans June 30, 2017 Classes of loans: Commercial: Operating $ 20,072,350 $ 33,060 $ 13,240 $ 20,395 $ 20,139,045 $ 154,671 Real estate 86,809,938 — — — 86,809,938 640,881 Agricultural: Operating 26,699,805 32,754 — 6,848 26,739,407 6,848 Real estate 30,263,281 47,900 — 794,609 31,105,790 857,509 Residential real estate: 1-4 family 42,722,767 164,549 — 172,697 43,060,013 675,197 Home equity 11,748,363 — — — 11,748,363 22,649 Other: Construction and land 16,175,698 — — — 16,175,698 — Consumer 3,670,927 — 3,747 — 3,674,674 24,124 $ 238,163,129 $ 278,263 $ 16,987 $ 994,549 $ 239,452,928 $ 2,381,879 |
Summary of unpaid principal balance by credit quality indicator | Other — Commercial — Commercial — Agricultural — Agricultural — Construction Operating Real Estate Operating Real Estate and Land Total December 31, 2017 Internally assigned risk rating: Highest Quality (rating 1) $ — $ — $ 364,038 $ 302,991 $ — $ 667,029 Good Quality (rating 2) 151,182 11,031,355 3,265,475 3,497,478 9,166 17,954,656 Acceptable Quality (rating 3) 6,959,993 43,807,603 10,497,020 7,167,665 10,923,816 79,356,097 Fair Quality (rating 4) 11,613,697 32,006,136 14,379,528 18,058,471 7,596,154 83,653,986 Special Mention (rating 5) 68,268 148,000 987,950 295,000 558,686 2,057,904 Substandard (rating 6) 1,260,321 6,256,360 218,484 1,588,687 — 9,323,852 Doubtful (rating 7) — — — — — — Loss (rating 8) — — — — — — $ 20,053,461 $ 93,249,454 $ 29,712,495 $ 30,910,292 $ 19,087,822 $ 193,013,524 Other — Commercial — Commercial — Agricultural — Agricultural — Construction Operating Real Estate Operating Real Estate and Land Total June 30, 2017 Internally assigned risk rating: Highest Quality (rating 1) $ — $ — $ 324,038 $ 326,045 $ — $ 650,083 Good Quality (rating 2) 177,795 6,638,998 5,185,147 3,541,630 2,868,632 18,412,202 Acceptable Quality (rating 3) 8,470,283 44,240,531 9,271,425 12,354,765 10,426,245 84,763,249 Fair Quality (rating 4) 11,313,276 31,603,455 11,489,750 13,116,352 2,880,821 70,403,654 Special Mention (rating 5) — 1,948,017 403,234 — — 2,351,251 Substandard (rating 6) 177,691 2,378,937 65,813 1,766,998 — 4,389,439 Doubtful (rating 7) — — — — — — Loss (rating 8) — — — — — — $ 20,139,045 $ 86,809,938 $ 26,739,407 $ 31,105,790 $ 16,175,698 $ 180,969,878 Residential RE — Residential RE — Other — 1-4 Family Home Equity Consumer Total December 31, 2017 Delinquency status*: Performing $ 45,188,972 $ 12,055,246 $ 3,618,799 $ 60,863,017 Nonperforming 806,104 19,700 51,563 877,367 $ 45,995,076 $ 12,074,946 $ 3,670,362 $ 61,740,384 Residential RE — Residential RE — Other — 1-4 Family Home Equity Consumer Total June 30, 2017 Delinquency status*: Performing $ 42,220,268 $ 11,725,714 $ 3,650,519 $ 57,596,501 Nonperforming 839,745 22,649 24,155 886,549 $ 43,060,013 $ 11,748,363 $ 3,674,674 $ 58,483,050 |
Summary of loans, by classes of loans, considered to be impaired | Unpaid Recorded Principal Related Investment Balance Allowance December 31, 2017 Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 176,325 $ 171,824 $ — Real estate 1,938,846 1,928,763 — Residential real estate: 1-4 family 1,863,107 1,853,218 — Home equity 6,124 6,112 — 3,984,402 3,959,917 — Impaired loans with specific allowance recorded: Commercial: Operating 1,214,347 1,209,488 676,799 Agricultural: Real estate 538,192 486,057 29,730 Residential real estate: 1-4 family 688,914 668,781 37,656 Home equity 183,530 183,255 12,692 Other: Consumer 17,404 17,337 1,387 2,642,387 2,564,918 758,264 Total impaired loans: Commercial: Operating 1,390,672 1,381,312 676,799 Real estate 1,938,846 1,928,763 — Agricultural: Real estate 538,192 486,057 29,730 Residential real estate: 1-4 family 2,552,021 2,521,999 37,656 Home equity 189,654 189,367 12,692 Other: Consumer 17,404 17,337 1,387 $ 6,626,789 $ 6,524,835 $ 758,264 Unpaid Recorded Principal Related Investment Balance Allowance June 30, 2017 Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 164,823 $ 164,128 $ — Real estate 643,226 640,881 — Agricultural: Operating 7,503 6,848 — Real estate 432,468 371,452 — Residential real estate: 1-4 family 2,448,574 2,439,137 — Home equity 7,880 7,868 — 3,704,474 3,630,314 — Impaired loans with specific allowance recorded: Commercial: Operating 65,701 65,369 6,487 Agricultural: Real estate 525,068 486,056 17,973 Residential real estate: 1-4 family 695,327 679,474 28,857 Home equity 15,553 15,541 414 Other: Consumer 20,433 20,408 1,949 1,322,082 1,266,848 55,680 Total impaired loans: Commercial: Operating 230,524 229,497 6,487 Real estate 643,226 640,881 — Agricultural: Operating 7,503 6,848 — Real estate 957,536 857,508 17,973 Residential real estate: 1-4 family 3,143,901 3,118,611 28,857 Home equity 23,433 23,409 414 Other: Consumer 20,433 20,408 1,949 $ 5,026,556 $ 4,897,162 $ 55,680 Impaired loans, for which no allowance has been provided as of December 31, 2017 and June 30, 2017, have adequate collateral, based on management’s current estimates. For the three months ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 167,811 $ 1,322 $ 190,581 $ 2,611 Real estate 1,284,129 6,811 335,315 2,375 Agricultural: Operating — — 48,507 3,328 Real estate — — 432,437 135 Residential real estate: 1-4 family 1,876,204 23,076 3,103,372 36,162 Home equity 6,193 93 8,936 150 Other: Consumer — — 27,440 270 3,334,337 31,302 4,146,588 45,031 Impaired loans with specific allowance recorded: Commercial: Operating 1,200,206 16,844 59,569 606 Real estate — — 47,765 — Agricultural: Real estate 534,915 265 493,981 — Residential real estate: 1-4 family 690,238 7,037 577,070 3,551 Home equity 99,269 288 17,944 156 Other: Consumer 18,165 206 — — 2,542,793 24,640 1,196,329 4,313 Total impaired loans: Commercial: Operating 1,368,017 18,166 250,150 3,217 Real estate 1,284,129 6,811 383,080 2,375 Agricultural: Operating — — 48,507 3,328 Real estate 534,915 265 926,418 135 Residential real estate: 1-4 family 2,566,442 30,113 3,680,442 39,713 Home equity 105,462 381 26,880 306 Other: Consumer 18,165 206 27,440 270 $ 5,877,130 $ 55,942 $ 5,342,917 $ 49,344 For the six months ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Classes of loans: Impaired loans with no specific allowance recorded: Commercial: Operating $ 170,574 $ 2,365 $ 178,100 $ 4,115 Real estate 1,291,036 13,772 335,315 2,375 Agricultural: Operating — — 47,927 3,328 Real estate — — 442,515 363 Residential real estate: 1-4 family 1,889,107 45,581 3,116,634 75,183 Home equity 6,261 189 9,137 309 Other: Consumer — — 27,972 642 3,356,978 61,907 4,157,600 86,315 Impaired loans with specific allowance recorded: Commercial: Operating 1,055,685 30,439 53,373 1,122 Real estate — — 47,489 — Agricultural: Operating — — — — Real estate 531,630 510 490,390 — Residential real estate: 1-4 family 692,121 13,708 576,135 5,759 Home equity 99,542 532 17,923 388 Other: Consumer 18,918 382 — — 2,397,896 45,571 1,185,310 7,269 Total impaired loans: Commercial: Operating 1,226,259 32,804 231,473 5,237 Real estate 1,291,036 13,772 382,804 2,375 Agricultural: Operating — — 47,927 3,328 Real estate 531,630 510 932,905 363 Residential real estate: 1-4 family 2,581,228 59,289 3,692,769 80,942 Home equity 105,803 721 27,060 697 Other: Consumer 18,918 382 27,972 642 $ 5,754,874 $ 107,478 $ 5,342,910 $ 93,584 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Borrowings | |
Schedule of balances and interest rates of advances | At or For the Six Months Ended December 31, 2017 December 31, 2016 Federal Home Loan Bank Advances: Maximum outstanding at any month end $ 16,008,400 $ 2,000,000 Balance at the end of period 5,000,000 2,000,000 Average balance during period 7,912,071 666,000 Weighted average interest rate at the end of period 1.55 % 0.72 % Weighted average interest rate during period 1.42 % 0.72 % |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Equitable Bank | |
Summary of bank's actual capital levels and minimum required levels | Minimum Required to Be Well Capitalized Minimum Required for Under Prompt Capital Adequacy Corrective Action Purposes Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Total capital (to risk-weighted assets) $ 30,379 12.2 % $ 19,867 8.0 % $ 24,834 10.0 % Common equity Tier 1 capital (to risk-weighted assets) 27,257 11.0 % 11,175 4.5 % 16,142 6.5 % Tier 1 (core) capital (to risk-weighted assets) 27,257 11.0 % 14,900 6.0 % 19,867 8.0 % Tier 1 (core) capital (to adjusted total assets) 27,257 10.3 % 10,590 4.0 % 13,237 5.0 % June 30, 2017 Total capital (to risk-weighted assets) $ 30,893 13.2 % $ 18,740 8.0 % $ 23,425 10.0 % Common equity Tier 1 capital (to risk-weighted 27,956 11.9 % 10,541 4.5 % 15,226 6.5 % Tier 1 (core) capital (to risk-weighted assets) 27,956 11.9 % 14,055 6.0 % 18,740 8.0 % Tier 1 (core) capital (to adjusted total assets) 27,956 11.4 % 9,806 4.0 % 12,257 5.0 % |
Employee Benefit Plan (Tables)
Employee Benefit Plan (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plan | |
Summary of ESOP shares | December 31, 2017 June 30, 2017 Allocated shares 80,249 86,104 Shares allocated to be released 15,856 7,929 Unearned ESOP shares 126,912 134,843 Total ESOP shares 223,017 228,876 Fair value of unearned ESOP shares $ 1,383,341 $ 1,348,430 Fair value of allocated shares subject to repurchase obligation $ 874,714 $ 815,280 |
Schedule of stock option activity | Weighted Remaining Average Contractual Awards Exercise Price Life (Years) Options outstanding at July 1, 2017 158,653 $ 9.90 9.20 Granted — — — Options outstanding at December 31, 2017 158,653 $ 9.90 9.20 |
Schedule of restricted stock award activity | Service-Based Weighted Stock Grant Date Awards Fair Value Non-vested at July 1, 2017 89,125 $ 8.52 Vested 7,294 5.40 Non-vested at December 31, 2017 81,831 $ 8.79 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Earnings per Share | |
Schedule of reconciliation of the components used to compute basic earnings per share | For the three months ended For the six months ended December 31, December 31, 2017 2016 2017 2016 Weighted average common shares outstanding 3,146,289 3,284,562 3,150,652 3,286,340 Net income/(loss) available to common stockholders $ (107,319) $ 309,464 $ 220,999 $ 574,522 Basic earnings/(loss) per share $ (0.03) $ 0.09 $ 0.07 $ 0.17 |
Schedule of reconciliation of the components used to compute diluted earnings per share | For the three months ended For the six months ended December 31, December 31, 2017 2016 2017 2016 Weighted average common shares outstanding 3,146,289 3,284,562 3,150,652 3,286,340 Weighted average of net additional shares from restricted stock awards 18,530 17,552 16,356 16,801 Weighted average number of shares outstanding 3,164,819 3,302,114 3,167,008 3,303,141 Net income/(loss) available to common stockholders $ (107,319) $ 309,464 $ 220,999 $ 574,522 Diluted earnings/(loss) per share $ (0.03) $ 0.09 $ 0.07 $ 0.17 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements | |
Summary of fair value of assets and liabilities measured on a recurring basis | Fair Value Measurement at December 31, 2017 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Total Level 1 Level 2 Level 3 Assets Securities available-for-sale $ 1,344,367 $ — $ 1,344,367 $ — Fair Value Measurement at June 30, 2017 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Total Level 1 Level 2 Level 3 Assets Securities available-for-sale $ 1,410,955 $ — $ 1,410,955 $ — |
Schedule of carrying and estimated fair value of financial instruments | Fair Value Carrying Estimated December 31, 2017 Hierarchy Level Amount Fair Value Financial assets: Cash and due from financial institutions Level 1 $ 4,023,310 $ 4,023,000 Interest-earning deposits Level 1 879,000 879,000 Securities available-for-sale See previous table 1,344,367 1,344,000 Securities held-to-maturity Level 2 718,955 724,000 Federal Home Loan Bank stock Level 1 283,300 283,000 Loans, net Level 2 250,963,387 247,636,000 Mortgage servicing rights Level 2 865,398 1,199,000 Credit enhancement receivable Level 2 97,001 97,000 Accrued interest receivable Level 1 1,451,427 1,451,000 Financial liabilities: Noninterest-bearing deposits Level 2 30,059,481 30,059,000 Interest-bearing deposits Level 2 196,141,018 196,831,000 Federal funds purchased Level 1 150,000 150,000 Federal Home Loan Bank Borrowings Level 2 5,000,000 5,000,000 Accrued interest payable and other liabilities Level 1 1,711,551 1,712,000 Fair Value Carrying Estimated June 30, 2017 Hierarchy Level Amount Fair Value Financial assets: Cash and due from financial institutions Level 1 $ 4,881,007 $ 4,881,000 Securities available-for-sale See previous table 1,410,955 1,411,000 Securities held-to-maturity Level 2 735,978 746,000 Federal Home Loan Bank stock Level 1 453,400 453,000 Loans, net Level 2 236,545,125 232,931,000 Mortgage servicing rights Level 2 852,715 1,089,000 Accrued interest receivable Level 1 1,297,908 1,298,000 Financial liabilities: Noninterest-bearing deposits Level 2 29,546,051 29,546,000 Interest-bearing deposits Level 2 179,512,265 185,040,000 Federal funds purchased Level 2 399,000 399,000 Federal Home Loan Bank borrowings Level 2 6,745,400 6,745,000 Accrued interest payable and other liabilities Level 1 820,229 820,000 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Loss | |
Schedule of components of accumulated other comprehensive loss | December 31, 2017 June 30, 2017 Unrealized holding losses on securities available-for-sale $ (20,772) $ (16,034) Tax expense 7,063 5,452 $ (13,709) $ (10,582) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Schedule of reconciliation of the provision for income taxes | Three months ended December 31, 2017 December 31, 2016 Provision computed at the statutory federal tax rate $ (56,097) $ (180,602) State income taxes, net of federal tax (10,589) (15,715) Release of unearned EOSP shares and stock awards 283 2,355 Nondeductible expenses (2,078) (2,066) Effect of Tax Cuts & Jobs Act (347,957) — Other — (25,691) $ (416,438) $ (221,719) Six months ended December 31, 2017 December 31, 2016 Provision computed at the statutory federal tax rate $ (231,490) $ (314,399) State income taxes, net of federal tax (26,990) (27,755) Release of unearned EOSP shares and stock awards 6,464 5,547 Nondeductible expenses (4,010) (3,714) Effect of Tax Cuts & Jobs Act (347,957) — Other — (9,860) $ (603,983) $ (350,181) |
Stock Buyback (Tables)
Stock Buyback (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Stock Buyback | |
Common stock purchased during the period | Total Number of Shares Purchased Maximum Number of Weighted as Part of Publicly Shares that May Yet Be Total Number of Average Price Announced Plans Purchased Under the Period Shares Purchased Paid Per Share or Programs Plans or Programs 07/01/17 - 07/31/17 1,600 $ 10.20 169,686 4,171 08/01/17 - 08/31/17 2,000 10.15 171,686 2,171 09/01/17 - 09/30/17 — — 171,686 2,171 10/01/17 - 10/31/17 — — 171,686 2,171 11/01/17 - 11/30/17 436 10.40 172,122 168,010 12/01/17 - 12/31/17 6,500 10.35 179,058 161,510 Total 10,536 $ 10.29 |
Securities (Details)
Securities (Details) - USD ($) | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Amortized cost and estimated fair value of investments in debt and equity securities | |||
Investment securities available-for-sale, amortized cost | $ 1,365,138 | $ 1,426,989 | |
Investment securities available-for-sale , gross unrealized gains | 1,085 | 1,973 | |
Investment securities available-for-sale , gross unrealized losses | (21,856) | (18,007) | |
Securities available-for-sale | 1,344,367 | 1,410,955 | |
Investment securities held-to-maturity, amortized cost | 718,955 | 735,978 | |
Investment securities held-to-maturity , gross unrealized gains | 7,228 | 10,279 | |
Investment securities held-to-maturity , gross unrealized losses | (2,564) | (384) | |
Investment securities held-to-maturity, estimated fair value | 723,619 | 745,873 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract] | |||
Securities sold | 0 | $ 0 | |
Residential mortgage-backed securities | |||
Amortized cost and estimated fair value of investments in debt and equity securities | |||
Investment securities available-for-sale, amortized cost | 376,992 | 440,070 | |
Investment securities available-for-sale , gross unrealized gains | 1,085 | 1,973 | |
Investment securities available-for-sale , gross unrealized losses | (1,604) | (33) | |
Securities available-for-sale | 376,473 | 442,010 | |
Investment securities held-to-maturity, amortized cost | 118,955 | 135,978 | |
Investment securities held-to-maturity , gross unrealized gains | 7,228 | 10,279 | |
Investment securities held-to-maturity, estimated fair value | 126,183 | 146,257 | |
Municipal securities | |||
Amortized cost and estimated fair value of investments in debt and equity securities | |||
Investment securities held-to-maturity, amortized cost | 600,000 | 600,000 | |
Investment securities held-to-maturity , gross unrealized losses | (2,564) | (384) | |
Investment securities held-to-maturity, estimated fair value | 597,436 | 599,616 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract] | |||
Held-to-maturity securities maturing June 30, 2019 | 400,000 | ||
U.S. Government-sponsored agencies securities | |||
Amortized cost and estimated fair value of investments in debt and equity securities | |||
Investment securities available-for-sale, amortized cost | 988,146 | 986,919 | |
Investment securities available-for-sale , gross unrealized losses | (20,252) | (17,974) | |
Securities available-for-sale | 967,894 | $ 968,945 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract] | |||
Securities maturing in the year ending June 30, 2023 | $ 981,000 |
Loans (Details)
Loans (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 |
Loans disclosures | ||||||
Total loans | $ 254,753,908 | $ 239,452,928 | ||||
Deferred loan origination costs, net | 671,479 | 647,197 | ||||
Allowance for loan losses | (4,462,000) | $ (3,759,000) | (3,555,000) | $ (3,238,000) | $ (3,055,510) | $ (2,947,000) |
Deferred loan origination costs and allowance | (3,790,521) | (2,907,803) | ||||
Loans, net | 250,963,387 | 236,545,125 | ||||
Commercial | ||||||
Loans disclosures | ||||||
Total loans | 113,302,915 | 106,948,983 | ||||
Allowance for loan losses | (2,446,000) | (1,796,000) | (1,703,000) | (1,468,000) | (1,393,510) | (1,337,000) |
Commercial | Operating | ||||||
Loans disclosures | ||||||
Total loans | 20,053,461 | 20,139,045 | ||||
Commercial | Real Estate | ||||||
Loans disclosures | ||||||
Total loans | 93,249,454 | 86,809,938 | ||||
Agricultural | ||||||
Loans disclosures | ||||||
Total loans | 60,622,787 | 57,845,197 | ||||
Allowance for loan losses | (980,000) | (947,000) | (918,000) | (848,000) | (802,000) | (738,000) |
Agricultural | Operating | ||||||
Loans disclosures | ||||||
Total loans | 29,712,495 | 26,739,407 | ||||
Agricultural | Real Estate | ||||||
Loans disclosures | ||||||
Total loans | 30,910,292 | 31,105,790 | ||||
Residential | ||||||
Loans disclosures | ||||||
Total loans | 58,070,022 | 54,808,376 | ||||
Allowance for loan losses | (716,000) | (689,000) | (656,000) | (635,000) | (617,000) | (655,000) |
Residential | 1 - 4 family | ||||||
Loans disclosures | ||||||
Total loans | 45,995,076 | 43,060,013 | ||||
Residential | Consumer - Home equity and lines of credit | ||||||
Loans disclosures | ||||||
Total loans | 12,074,946 | 11,748,363 | ||||
Other | ||||||
Loans disclosures | ||||||
Total loans | 22,758,184 | 19,850,372 | ||||
Allowance for loan losses | (320,000) | $ (327,000) | (278,000) | $ (287,000) | $ (243,000) | $ (217,000) |
Other | Construction and land | ||||||
Loans disclosures | ||||||
Total loans | 19,087,822 | 16,175,698 | ||||
Other | Consumer - Personal | ||||||
Loans disclosures | ||||||
Total loans | $ 3,670,362 | $ 3,674,674 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for loan losses: | ||||
Balance, beginning | $ 3,759,000 | $ 3,055,510 | $ 3,555,000 | $ 2,947,000 |
Provision charged to expense | 662,905 | 169,109 | 867,339 | 321,873 |
Recoveries | 42,830 | 15,962 | 44,568 | 24,825 |
Loans charged off | (2,735) | (2,581) | (4,907) | (55,698) |
Balance, ending | 4,462,000 | 3,238,000 | 4,462,000 | 3,238,000 |
Commercial | ||||
Allowance for loan losses: | ||||
Balance, beginning | 1,796,000 | 1,393,510 | 1,703,000 | 1,337,000 |
Provision charged to expense | 610,187 | 59,608 | 702,141 | 156,311 |
Recoveries | 39,813 | 14,882 | 40,859 | 22,556 |
Loans charged off | (47,867) | |||
Balance, ending | 2,446,000 | 1,468,000 | 2,446,000 | 1,468,000 |
Agricultural | ||||
Allowance for loan losses: | ||||
Balance, beginning | 947,000 | 802,000 | 918,000 | 738,000 |
Provision charged to expense | 33,000 | 46,000 | 62,000 | 110,000 |
Balance, ending | 980,000 | 848,000 | 980,000 | 848,000 |
Residential | ||||
Allowance for loan losses: | ||||
Balance, beginning | 689,000 | 617,000 | 656,000 | 655,000 |
Provision charged to expense | 25,707 | 17,252 | 58,169 | (20,973) |
Recoveries | 1,293 | 842 | 1,831 | 1,067 |
Loans charged off | (94) | (94) | ||
Balance, ending | 716,000 | 635,000 | 716,000 | 635,000 |
Other | ||||
Allowance for loan losses: | ||||
Balance, beginning | 327,000 | 243,000 | 278,000 | 217,000 |
Provision charged to expense | (5,989) | 46,249 | 45,029 | 76,535 |
Recoveries | 1,724 | 238 | 1,878 | 1,202 |
Loans charged off | (2,735) | (2,487) | (4,907) | (7,737) |
Balance, ending | $ 320,000 | $ 287,000 | $ 320,000 | $ 287,000 |
Loans - Impairment Evaluation (
Loans - Impairment Evaluation (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 |
Allowance for loan losses: | ||||||
Allowance for loans individually evaluated for impairment | $ 758,264 | $ 55,680 | ||||
Allowance for loans collectively evaluated for impairment | 3,703,736 | 3,499,320 | ||||
Total Allowance | 4,462,000 | $ 3,759,000 | 3,555,000 | $ 3,238,000 | $ 3,055,510 | $ 2,947,000 |
Loan balances | ||||||
Loans individually evaluated for impairment | 6,524,835 | 4,897,162 | ||||
Loans collectively evaluated for impairment | 248,229,073 | 234,555,766 | ||||
Total loans | 254,753,908 | 239,452,928 | ||||
Commercial | ||||||
Allowance for loan losses: | ||||||
Allowance for loans individually evaluated for impairment | 676,799 | 6,487 | ||||
Allowance for loans collectively evaluated for impairment | 1,769,201 | 1,696,513 | ||||
Total Allowance | 2,446,000 | 1,796,000 | 1,703,000 | 1,468,000 | 1,393,510 | 1,337,000 |
Loan balances | ||||||
Loans individually evaluated for impairment | 3,310,075 | 870,377 | ||||
Loans collectively evaluated for impairment | 109,992,840 | 106,078,606 | ||||
Total loans | 113,302,915 | 106,948,983 | ||||
Agricultural | ||||||
Allowance for loan losses: | ||||||
Allowance for loans individually evaluated for impairment | 29,730 | 17,973 | ||||
Allowance for loans collectively evaluated for impairment | 950,270 | 900,027 | ||||
Total Allowance | 980,000 | 947,000 | 918,000 | 848,000 | 802,000 | 738,000 |
Loan balances | ||||||
Loans individually evaluated for impairment | 486,057 | 864,357 | ||||
Loans collectively evaluated for impairment | 60,136,730 | 56,980,840 | ||||
Total loans | 60,622,787 | 57,845,197 | ||||
Residential | ||||||
Allowance for loan losses: | ||||||
Allowance for loans individually evaluated for impairment | 50,348 | 29,271 | ||||
Allowance for loans collectively evaluated for impairment | 665,652 | 626,729 | ||||
Total Allowance | 716,000 | 689,000 | 656,000 | 635,000 | 617,000 | 655,000 |
Loan balances | ||||||
Loans individually evaluated for impairment | 2,711,366 | 3,142,020 | ||||
Loans collectively evaluated for impairment | 55,358,656 | 51,666,356 | ||||
Total loans | 58,070,022 | 54,808,376 | ||||
Other | ||||||
Allowance for loan losses: | ||||||
Allowance for loans individually evaluated for impairment | 1,387 | 1,949 | ||||
Allowance for loans collectively evaluated for impairment | 318,613 | 276,051 | ||||
Total Allowance | 320,000 | $ 327,000 | 278,000 | $ 287,000 | $ 243,000 | $ 217,000 |
Loan balances | ||||||
Loans individually evaluated for impairment | 17,337 | 20,408 | ||||
Loans collectively evaluated for impairment | 22,740,847 | 19,829,964 | ||||
Total loans | $ 22,758,184 | $ 19,850,372 |
Loans - Aging Unpaid Principal
Loans - Aging Unpaid Principal (Details) - USD ($) | Dec. 31, 2017 | Jun. 30, 2017 |
Summary of aging in terms of unpaid principal balance | ||
Current | $ 253,768,579 | $ 238,163,129 |
Total loans | 254,753,908 | 239,452,928 |
Nonaccrual Loans | 2,297,009 | 2,381,879 |
31 to 60 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 125,024 | 278,263 |
61 to 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 16,987 | |
Greater than 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 860,305 | 994,549 |
Commercial | ||
Summary of aging in terms of unpaid principal balance | ||
Total loans | 113,302,915 | 106,948,983 |
Commercial | Operating | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 19,899,428 | 20,072,350 |
Total loans | 20,053,461 | 20,139,045 |
Nonaccrual Loans | 346,184 | 154,671 |
Commercial | Operating | 31 to 60 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 79,207 | 33,060 |
Commercial | Operating | 61 to 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 13,240 | |
Commercial | Operating | Greater than 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 74,826 | 20,395 |
Commercial | Real Estate | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 93,249,454 | 86,809,938 |
Total loans | 93,249,454 | 86,809,938 |
Nonaccrual Loans | 613,204 | 640,881 |
Agricultural | ||
Summary of aging in terms of unpaid principal balance | ||
Total loans | 60,622,787 | 57,845,197 |
Agricultural | Operating | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 29,712,495 | 26,699,805 |
Total loans | 29,712,495 | 26,739,407 |
Nonaccrual Loans | 6,848 | |
Agricultural | Operating | 31 to 60 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 32,754 | |
Agricultural | Operating | Greater than 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 6,848 | |
Agricultural | Real Estate | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 30,439,235 | 30,263,281 |
Total loans | 30,910,292 | 31,105,790 |
Nonaccrual Loans | 486,057 | 857,509 |
Agricultural | Real Estate | 31 to 60 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 47,900 | |
Agricultural | Real Estate | Greater than 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 471,057 | 794,609 |
Residential | ||
Summary of aging in terms of unpaid principal balance | ||
Total loans | 58,070,022 | 54,808,376 |
Residential | 1 - 4 family | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 45,669,062 | 42,722,767 |
Total loans | 45,995,076 | 43,060,013 |
Nonaccrual Loans | 812,504 | 675,197 |
Residential | 1 - 4 family | 31 to 60 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 13,614 | 164,549 |
Residential | 1 - 4 family | Greater than 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 312,400 | 172,697 |
Residential | Consumer - Home equity and lines of credit | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 12,074,946 | 11,748,363 |
Total loans | 12,074,946 | 11,748,363 |
Nonaccrual Loans | 19,700 | 22,649 |
Other | ||
Summary of aging in terms of unpaid principal balance | ||
Total loans | 22,758,184 | 19,850,372 |
Other | Construction and land | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 19,087,822 | 16,175,698 |
Total loans | 19,087,822 | 16,175,698 |
Other | Consumer - Personal | ||
Summary of aging in terms of unpaid principal balance | ||
Current | 3,636,137 | 3,670,927 |
Total loans | 3,670,362 | 3,674,674 |
Nonaccrual Loans | 19,360 | 24,124 |
Other | Consumer - Personal | 31 to 60 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | 32,203 | |
Other | Consumer - Personal | 61 to 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | $ 3,747 | |
Other | Consumer - Personal | Greater than 90 Days Past Due | ||
Summary of aging in terms of unpaid principal balance | ||
Financing Receivable Past Due | $ 2,022 |
Loans - Credit Quality (Details
Loans - Credit Quality (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2017 | |
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | $ 254,753,908 | $ 239,452,928 |
Performing Financing Receivable Maximum Days Past Due | 31 days | |
Nonperforming Financing Receivable Minimum Days Past Due | 31 days | |
Maximum aggregate exposure not requiring a loan review within 12 months of most recent credit review | $ 250,000 | |
Loans 90 days past due and still accruing | 0 | 0 |
Commercial, Agricultural, And Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | $ 193,013,524 | 180,969,878 |
Financing Receivable Risk Rating Minimum Review Period | 12 months | |
Commercial | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | $ 113,302,915 | 106,948,983 |
Commercial | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 20,053,461 | 20,139,045 |
Commercial | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 93,249,454 | 86,809,938 |
Agricultural | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 60,622,787 | 57,845,197 |
Agricultural | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 29,712,495 | 26,739,407 |
Agricultural | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 30,910,292 | 31,105,790 |
Residential Real Estate and Other Combined | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 61,740,384 | 58,483,050 |
Residential | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 58,070,022 | 54,808,376 |
Residential | 1 - 4 family | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 45,995,076 | 43,060,013 |
Residential | Consumer - Home equity and lines of credit | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 12,074,946 | 11,748,363 |
Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 22,758,184 | 19,850,372 |
Other | Construction and land | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 19,087,822 | 16,175,698 |
Other | Consumer - Personal | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 3,670,362 | 3,674,674 |
Highest Quality (rating 1) | Commercial, Agricultural, And Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 667,029 | 650,083 |
Highest Quality (rating 1) | Agricultural | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 364,038 | 324,038 |
Highest Quality (rating 1) | Agricultural | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 302,991 | 326,045 |
Good Quality (rating 2) | Commercial, Agricultural, And Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 17,954,656 | 18,412,202 |
Good Quality (rating 2) | Commercial | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 151,182 | 177,795 |
Good Quality (rating 2) | Commercial | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 11,031,355 | 6,638,998 |
Good Quality (rating 2) | Agricultural | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 3,265,475 | 5,185,147 |
Good Quality (rating 2) | Agricultural | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 3,497,478 | 3,541,630 |
Good Quality (rating 2) | Other | Construction and land | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 9,166 | 2,868,632 |
Acceptable Quality (rating 3) | Commercial, Agricultural, And Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 79,356,097 | 84,763,249 |
Acceptable Quality (rating 3) | Commercial | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 6,959,993 | 8,470,283 |
Acceptable Quality (rating 3) | Commercial | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 43,807,603 | 44,240,531 |
Acceptable Quality (rating 3) | Agricultural | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 10,497,020 | 9,271,425 |
Acceptable Quality (rating 3) | Agricultural | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 7,167,665 | 12,354,765 |
Acceptable Quality (rating 3) | Other | Construction and land | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 10,923,816 | 10,426,245 |
Fair Quality (rating 4) | Commercial, Agricultural, And Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 83,653,986 | 70,403,654 |
Fair Quality (rating 4) | Commercial | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 11,613,697 | 11,313,276 |
Fair Quality (rating 4) | Commercial | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 32,006,136 | 31,603,455 |
Fair Quality (rating 4) | Agricultural | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 14,379,528 | 11,489,750 |
Fair Quality (rating 4) | Agricultural | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 18,058,471 | 13,116,352 |
Fair Quality (rating 4) | Other | Construction and land | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 7,596,154 | 2,880,821 |
Special Mention | Commercial, Agricultural, And Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 2,057,904 | 2,351,251 |
Special Mention | Commercial | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 68,268 | |
Special Mention | Commercial | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 148,000 | 1,948,017 |
Special Mention | Agricultural | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 987,950 | 403,234 |
Special Mention | Agricultural | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 295,000 | |
Special Mention | Other | Construction and land | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 558,686 | |
Substandard | Commercial, Agricultural, And Other | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 9,323,852 | 4,389,439 |
Substandard | Commercial | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 1,260,321 | 177,691 |
Substandard | Commercial | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 6,256,360 | 2,378,937 |
Substandard | Agricultural | Operating | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 218,484 | 65,813 |
Substandard | Agricultural | Real Estate | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 1,588,687 | 1,766,998 |
Performing | Residential Real Estate and Other Combined | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 60,863,017 | 57,596,501 |
Performing | Residential | 1 - 4 family | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 45,188,972 | 42,220,268 |
Performing | Residential | Consumer - Home equity and lines of credit | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 12,055,246 | 11,725,714 |
Performing | Other | Consumer - Personal | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 3,618,799 | 3,650,519 |
Nonperforming | Residential Real Estate and Other Combined | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 877,367 | 886,549 |
Nonperforming | Residential | 1 - 4 family | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 806,104 | 839,745 |
Nonperforming | Residential | Consumer - Home equity and lines of credit | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | 19,700 | 22,649 |
Nonperforming | Other | Consumer - Personal | ||
Unpaid principal balance by credit quality indicator | ||
Unpaid principal balance | $ 51,563 | $ 24,155 |
Loans - Impaired (Details)
Loans - Impaired (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Impaired loans with no specific allowance recorded: | |||||
Recorded Investment | $ 3,984,402 | $ 3,984,402 | $ 3,704,474 | ||
Unpaid Principal Balance | 3,959,917 | 3,959,917 | 3,630,314 | ||
Average Recorded Investment | 3,334,337 | $ 4,146,588 | 3,356,978 | $ 4,157,600 | |
Interest Income Recognized | 31,302 | 45,031 | 61,907 | 86,315 | |
Impaired loans with specific allowance recorded: | |||||
Recorded Investment | 2,642,387 | 2,642,387 | 1,322,082 | ||
Unpaid Principal Balance | 2,564,918 | 2,564,918 | 1,266,848 | ||
Related Allowance | 758,264 | 758,264 | 55,680 | ||
Average Recorded Investment | 2,542,793 | 1,196,329 | 2,397,896 | 1,185,310 | |
Interest Income Recognized | 24,640 | 4,313 | 45,571 | 7,269 | |
Total impaired loans: | |||||
Recorded Investment | 6,626,789 | 6,626,789 | 5,026,556 | ||
Unpaid Principal Balance | 6,524,835 | 6,524,835 | 4,897,162 | ||
Related Allowance | 758,264 | 758,264 | 55,680 | ||
Average Recorded Investment | 5,877,130 | 5,342,917 | 5,754,874 | 5,342,910 | |
Interest Income Recognized | 55,942 | 49,344 | 107,478 | 93,584 | |
Commercial | Operating | |||||
Impaired loans with no specific allowance recorded: | |||||
Recorded Investment | 176,325 | 176,325 | 164,823 | ||
Unpaid Principal Balance | 171,824 | 171,824 | 164,128 | ||
Average Recorded Investment | 167,811 | 190,581 | 170,574 | 178,100 | |
Interest Income Recognized | 1,322 | 2,611 | 2,365 | 4,115 | |
Impaired loans with specific allowance recorded: | |||||
Recorded Investment | 1,214,347 | 1,214,347 | 65,701 | ||
Unpaid Principal Balance | 1,209,488 | 1,209,488 | 65,369 | ||
Related Allowance | 676,799 | 676,799 | 6,487 | ||
Average Recorded Investment | 1,200,206 | 59,569 | 1,055,685 | 53,373 | |
Interest Income Recognized | 16,844 | 606 | 30,439 | 1,122 | |
Total impaired loans: | |||||
Recorded Investment | 1,390,672 | 1,390,672 | 230,524 | ||
Unpaid Principal Balance | 1,381,312 | 1,381,312 | 229,497 | ||
Related Allowance | 676,799 | 676,799 | 6,487 | ||
Average Recorded Investment | 1,368,017 | 250,150 | 1,226,259 | 231,473 | |
Interest Income Recognized | 18,166 | 3,217 | 32,804 | 5,237 | |
Commercial | Real Estate | |||||
Impaired loans with no specific allowance recorded: | |||||
Recorded Investment | 1,938,846 | 1,938,846 | 643,226 | ||
Unpaid Principal Balance | 1,928,763 | 1,928,763 | 640,881 | ||
Average Recorded Investment | 1,284,129 | 335,315 | 1,291,036 | 335,315 | |
Interest Income Recognized | 6,811 | 2,375 | 13,772 | 2,375 | |
Impaired loans with specific allowance recorded: | |||||
Average Recorded Investment | 47,765 | 47,489 | |||
Total impaired loans: | |||||
Recorded Investment | 1,938,846 | 1,938,846 | 643,226 | ||
Unpaid Principal Balance | 1,928,763 | 1,928,763 | 640,881 | ||
Average Recorded Investment | 1,284,129 | 383,080 | 1,291,036 | 382,804 | |
Interest Income Recognized | 6,811 | 2,375 | 13,772 | 2,375 | |
Agricultural | Operating | |||||
Impaired loans with no specific allowance recorded: | |||||
Recorded Investment | 7,503 | ||||
Unpaid Principal Balance | 6,848 | ||||
Average Recorded Investment | 48,507 | 47,927 | |||
Interest Income Recognized | 3,328 | 3,328 | |||
Total impaired loans: | |||||
Recorded Investment | 7,503 | ||||
Unpaid Principal Balance | 6,848 | ||||
Average Recorded Investment | 48,507 | 47,927 | |||
Interest Income Recognized | 3,328 | 3,328 | |||
Agricultural | Real Estate | |||||
Impaired loans with no specific allowance recorded: | |||||
Recorded Investment | 432,468 | ||||
Unpaid Principal Balance | 371,452 | ||||
Average Recorded Investment | 432,437 | 442,515 | |||
Interest Income Recognized | 135 | 363 | |||
Impaired loans with specific allowance recorded: | |||||
Recorded Investment | 538,192 | 538,192 | 525,068 | ||
Unpaid Principal Balance | 486,057 | 486,057 | 486,056 | ||
Related Allowance | 29,730 | 29,730 | 17,973 | ||
Average Recorded Investment | 534,915 | 493,981 | 531,630 | 490,390 | |
Interest Income Recognized | 265 | 510 | |||
Total impaired loans: | |||||
Recorded Investment | 538,192 | 538,192 | 957,536 | ||
Unpaid Principal Balance | 486,057 | 486,057 | 857,508 | ||
Related Allowance | 29,730 | 29,730 | 17,973 | ||
Average Recorded Investment | 534,915 | 926,418 | 531,630 | 932,905 | |
Interest Income Recognized | 265 | 135 | 510 | 363 | |
Residential | 1 - 4 family | |||||
Impaired loans with no specific allowance recorded: | |||||
Recorded Investment | 1,863,107 | 1,863,107 | 2,448,574 | ||
Unpaid Principal Balance | 1,853,218 | 1,853,218 | 2,439,137 | ||
Average Recorded Investment | 1,876,204 | 3,103,372 | 1,889,107 | 3,116,634 | |
Interest Income Recognized | 23,076 | 36,162 | 45,581 | 75,183 | |
Impaired loans with specific allowance recorded: | |||||
Recorded Investment | 688,914 | 688,914 | 695,327 | ||
Unpaid Principal Balance | 668,781 | 668,781 | 679,474 | ||
Related Allowance | 37,656 | 37,656 | 28,857 | ||
Average Recorded Investment | 690,238 | 577,070 | 692,121 | 576,135 | |
Interest Income Recognized | 7,037 | 3,551 | 13,708 | 5,759 | |
Total impaired loans: | |||||
Recorded Investment | 2,552,021 | 2,552,021 | 3,143,901 | ||
Unpaid Principal Balance | 2,521,999 | 2,521,999 | 3,118,611 | ||
Related Allowance | 37,656 | 37,656 | 28,857 | ||
Average Recorded Investment | 2,566,442 | 3,680,442 | 2,581,228 | 3,692,769 | |
Interest Income Recognized | 30,113 | 39,713 | 59,289 | 80,942 | |
Residential | Consumer - Home equity and lines of credit | |||||
Impaired loans with no specific allowance recorded: | |||||
Recorded Investment | 6,124 | 6,124 | 7,880 | ||
Unpaid Principal Balance | 6,112 | 6,112 | 7,868 | ||
Average Recorded Investment | 6,193 | 8,936 | 6,261 | 9,137 | |
Interest Income Recognized | 93 | 150 | 189 | 309 | |
Impaired loans with specific allowance recorded: | |||||
Recorded Investment | 183,530 | 183,530 | 15,553 | ||
Unpaid Principal Balance | 183,255 | 183,255 | 15,541 | ||
Related Allowance | 12,692 | 12,692 | 414 | ||
Average Recorded Investment | 99,269 | 17,944 | 99,542 | 17,923 | |
Interest Income Recognized | 288 | 156 | 532 | 388 | |
Total impaired loans: | |||||
Recorded Investment | 189,654 | 189,654 | 23,433 | ||
Unpaid Principal Balance | 189,367 | 189,367 | 23,409 | ||
Related Allowance | 12,692 | 12,692 | 414 | ||
Average Recorded Investment | 105,462 | 26,880 | 105,803 | 27,060 | |
Interest Income Recognized | 381 | 306 | 721 | 697 | |
Other | Consumer - Personal | |||||
Impaired loans with no specific allowance recorded: | |||||
Average Recorded Investment | 27,440 | 27,972 | |||
Interest Income Recognized | 270 | 642 | |||
Impaired loans with specific allowance recorded: | |||||
Recorded Investment | 17,404 | 17,404 | 20,433 | ||
Unpaid Principal Balance | 17,337 | 17,337 | 20,408 | ||
Related Allowance | 1,387 | 1,387 | 1,949 | ||
Average Recorded Investment | 18,165 | 18,918 | |||
Interest Income Recognized | 206 | 382 | |||
Total impaired loans: | |||||
Recorded Investment | 17,404 | 17,404 | 20,433 | ||
Unpaid Principal Balance | 17,337 | 17,337 | 20,408 | ||
Related Allowance | 1,387 | 1,387 | $ 1,949 | ||
Average Recorded Investment | 18,165 | 27,440 | 18,918 | 27,972 | |
Interest Income Recognized | $ 206 | $ 270 | $ 382 | $ 642 |
Borrowings (Details)
Borrowings (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank Borrowings | ||
Advances from Federal Home Loan Banks | $ 5,000,000 | $ 2,000,000 |
Maximum outstanding at any month end | 16,008,400 | 2,000,000 |
Average balance during period | $ 7,912,071 | $ 666,000 |
Weighted average interest rate at the end of period | 1.55% | 0.72% |
Weighted average interest rate during period | 1.42% | 0.72% |
Federal Home Loan Bank of Topeka | ||
Federal Home Loan Bank Borrowings | ||
Amount of available advances | $ 39,500,000 |
Regulatory Matters (Details)
Regulatory Matters (Details) - Equitable Bank - USD ($) | Dec. 31, 2017 | Jun. 30, 2017 |
Compliance with regulatory capital requirements under banking regulations | ||
Total capital (to risk weighted assets), amount | $ 30,379 | $ 30,893 |
Total capital (to risk weighted assets), as a percent | 12.20% | 13.20% |
Tier 1 (core) capital (to risk weighted assets), amount | $ 27,257 | $ 27,956 |
Tier 1 (core) capital (to risk weighted assets), as a percent | 11.00% | 11.90% |
Tier 1 (core) capital (to adjusted total assets), amount | $ 27,257 | $ 27,956 |
Tier 1 (core) capital (to adjusted total assets), as a percent | 10.30% | 11.40% |
Minimum Required for Capital Adequacy Purposes | ||
Total capital (to risk weighted assets), amount | $ 19,867 | $ 18,740 |
Total capital (to risk weighted assets), as a percent | 8.00% | 8.00% |
Tier 1 (core) capital (to risk weighted assets), amount | $ 14,900 | $ 14,055 |
Tier 1 (core) capital (to risk weighted assets), as a percent | 6.00% | 6.00% |
Tier 1 (core) capital (to adjusted total assets), amount | $ 10,590 | $ 9,806 |
Tier 1 (core) capital (to adjusted total assets), as a percent | 4.00% | 4.00% |
Minimum Required to Be Well Capitalized Under Prompt Corrective Action Provisions | ||
Total capital (to risk weighted assets), amount | $ 24,834 | $ 23,425 |
Total capital (to risk weighted assets), as a percent | 10.00% | 10.00% |
Tier 1 (core) capital (to risk weighted assets), amount | $ 19,867 | $ 18,740 |
Tier 1 (core) capital (to risk weighted assets), as a percent | 8.00% | 8.00% |
Tier 1 (core) capital (to adjusted total assets), amount | $ 13,237 | $ 12,257 |
Tier 1 (core) capital (to adjusted total assets), as a percent | 5.00% | 5.00% |
Common Equity | ||
Compliance with regulatory capital requirements under banking regulations | ||
Tier 1 (core) capital (to risk weighted assets), amount | $ 27,257 | $ 27,956 |
Tier 1 (core) capital (to risk weighted assets), as a percent | 11.00% | 11.90% |
Minimum Required for Capital Adequacy Purposes | ||
Tier 1 (core) capital (to risk weighted assets), amount | $ 11,175 | $ 10,541 |
Tier 1 (core) capital (to risk weighted assets), as a percent | 4.50% | 4.50% |
Minimum Required to Be Well Capitalized Under Prompt Corrective Action Provisions | ||
Tier 1 (core) capital (to risk weighted assets), amount | $ 16,142 | $ 15,226 |
Tier 1 (core) capital (to risk weighted assets), as a percent | 6.50% | 6.50% |
Regulatory Matters - Rules (Det
Regulatory Matters - Rules (Details) - Equitable Bank | 6 Months Ended |
Dec. 31, 2017 | |
Compliance with regulatory capital requirements under banking regulations | |
Assets maintained in housing-related finance and other specified assets (as a percent) | 65.00% |
Increase in Tier 1 capital to risk-weighted assets ratio (as a percent) | 4.00% |
Common equity Tier 1 capital conversation buffer ratio | 2.50% |
Common equity Tier 1 capital (to risk-weighted assets) phase in buffer schedule ratio (as a percent) | 7.00% |
Tier 1 capital to (risk-weighted assets) phase in buffer schedule ratio (as a percent) | 8.50% |
Total capital to (risk-weighted assets) phase in buffer schedule ratio (as a percent) | 10.50% |
New capital conservation buffer requirement beginning ratio | 0.625% |
Employee Benefit Plans - 401K (
Employee Benefit Plans - 401K (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefit Plan | ||
401(k) and profit sharing plans, minimum vesting period | 1 year | |
401(k) and profit sharing plans, maximum vesting period | 5 years | |
Company contributions to the 401(k) and profit sharing plans | $ 68,715 | $ 56,532 |
Employee Benefit Plan - ESOP (D
Employee Benefit Plan - ESOP (Details) - USD ($) | Jul. 08, 2015 | Nov. 08, 2005 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 |
Employee stock ownership plan ("ESOP") | |||||
Funds borrowed by the ESOP from the Company | $ 951,912 | $ 1,292,620 | |||
Company stock acquired by the ESOP (in shares) | 118,989 | 129,262 | |||
Price of Company stock acquired by the ESOP (in dollars per share) | $ 8 | $ 10 | |||
Annual principal and interest payments to be made by the ESOP | $ 65,000 | $ 145,000 | |||
Compensation expense | $ 82,152 | $ 71,335 | |||
Shares held by the ESOP | |||||
Allocated shares (in shares) | 80,249 | 86,104 | |||
Shares allocated to be released | 15,856 | 7,929 | |||
Unearned ESOP shares (in shares) | 126,912 | 134,843 | |||
Total ESOP shares (in shares) | 223,017 | 228,876 | |||
Fair value of unearned ESOP shares | $ 1,383,341 | $ 1,348,430 | |||
Fair value of allocated shares subject to repurchase obligation | $ 874,714 | $ 815,280 |
Employee Benefit Plan - Stock O
Employee Benefit Plan - Stock Options (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jun. 30, 2017 | |
Summary of stock option activity | ||
Options outstanding, beginning balance (in shares) | 158,653 | |
Options outstanding, ending balance (in shares) | 158,653 | 158,653 |
Weighted average exercise price | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 9.90 | |
Weighted average exercise price, ending balance (in dollars per share) | $ 9.90 | $ 9.90 |
Remaining contractual life (years) | ||
Remaining contractual life of options outstanding | 9 years 2 months 12 days | 9 years 2 months 12 days |
2016 Equity Incentive Plan | Stock options | ||
Summary of stock option activity | ||
Options outstanding, ending balance (in shares) | 158,653 | |
2016 Equity Incentive Plan | Restricted stock | ||
Summary of stock option activity | ||
Options outstanding, ending balance (in shares) | 63,461 |
Employee Benefit Plan - Shares
Employee Benefit Plan - Shares Awarded (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Share-based compensation | ||||
Award vesting period | 5 years | |||
Number of shares awarded | 158,653 | 158,653 | ||
Stock options | ||||
Share-based compensation | ||||
Compensation expense | $ 0 | $ 21,101 | ||
Restricted stock | ||||
Share-based compensation | ||||
Unrecognized compensation costs | $ 580,254 | |||
Period for recognizing unrecognized compensation | 3 years 10 months 24 days | |||
Compensation expense | $ 91,984 | $ 29,139 | ||
Service-Based Stock Awards | ||||
Non-vested at beginning of the year (in shares) | 89,125 | |||
Vested (in shares) | (7,294) | |||
Non-vested at end of the year (in share) | 81,831 | |||
Weighted Grant Date Fair Value | ||||
Non-vested at beginning of the year (in dollars per share) | $ 8.52 | |||
Vested (in dollars per share) | 5.40 | |||
Non-vested at end of the year (in dollars per share) | $ 8.79 | |||
2016 Equity Incentive Plan | Stock options | ||||
Share-based compensation | ||||
Number of shares authorized | 198,316 | |||
Number of shares awarded | 158,653 | |||
2016 Equity Incentive Plan | Restricted stock | ||||
Share-based compensation | ||||
Number of shares authorized | 79,326 | |||
Number of shares awarded | 63,461 |
Earnings per Share - Basic (Det
Earnings per Share - Basic (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of basic earnings per share: | ||||
Weighted average common shares outstanding | 3,146,289 | 3,284,562 | 3,150,652 | 3,286,340 |
Net income/(loss) available to common stockholders | $ (107,319) | $ 309,464 | $ 220,999 | $ 574,522 |
Basic earnings/(loss) per share (in dollars per share) | $ (0.03) | $ 0.09 | $ 0.07 | $ 0.17 |
Earnings per Share - Diluted (D
Earnings per Share - Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of diluted earnings per share: | ||||
Weighted average common shares outstanding | 3,146,289 | 3,284,562 | 3,150,652 | 3,286,340 |
Weighted average of net additional shares from restricted stock awards | 18,530 | 17,552 | 16,356 | 16,801 |
Weighted average number of shares outstanding | 3,164,819 | 3,302,114 | 3,167,008 | 3,303,141 |
Net income/(loss) available to common stockholders | $ (107,319) | $ 309,464 | $ 220,999 | $ 574,522 |
Diluted earnings/(loss) per share (in dollars per share) | $ (0.03) | $ 0.09 | $ 0.07 | $ 0.17 |
Antidilutive securities excluded | 158,653 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2017 | Jun. 30, 2017 |
Assets and Liabilities Measured on Recurring Basis | ||
Fair value asset transfers from Level 1 to Level 2 | $ 0 | |
Fair value asset transfers from Level 2 to Level 1 | 0 | |
Fair value liability transfers from Level 1 to Level 2 | 0 | |
Fair value liability transfers from Level 2 to Level 1 | 0 | |
Assets: | ||
Securities available-for-sale | 1,344,367 | $ 1,410,955 |
Recurring | ||
Assets: | ||
Securities available-for-sale | 1,344,367 | 1,410,955 |
Recurring | Level 2 | ||
Assets: | ||
Securities available-for-sale | $ 1,344,367 | $ 1,410,955 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) | Dec. 31, 2017 | Jun. 30, 2017 |
Financial assets: | ||
Cash and due from financial institutions | $ 4,023,310 | $ 4,881,007 |
Interest-earning deposits | 879,000 | |
Securities available-for-sale | 1,344,367 | 1,410,955 |
Securities held-to-maturity | 723,619 | 745,873 |
Federal Home Loan Bank stock | 283,300 | 453,400 |
Loans, net | 250,963,387 | 236,545,125 |
Accrued interest receivable | 1,451,427 | 1,297,908 |
Financial liabilities: | ||
Noninterest-bearing deposits | 30,059,481 | 29,546,051 |
Interest-bearing deposits | 196,141,018 | 179,512,265 |
Federal funds purchased | 150,000 | 399,000 |
Federal Home Loan Bank borrowings | 5,000,000 | 6,745,400 |
Accrued interest payable and other liabilities | 1,711,551 | 820,229 |
Carrying Amount | Level 1 | ||
Financial assets: | ||
Cash and due from financial institutions | 4,023,310 | 4,881,007 |
Interest-earning deposits | 879,000 | |
Federal Home Loan Bank stock | 283,300 | 453,400 |
Accrued interest receivable | 1,451,427 | 1,297,908 |
Financial liabilities: | ||
Federal funds purchased | 150,000 | |
Accrued interest payable and other liabilities | 1,711,551 | 820,229 |
Carrying Amount | Level 2 | ||
Financial assets: | ||
Securities available-for-sale | 1,344,367 | 1,410,955 |
Securities held-to-maturity | 718,955 | 735,978 |
Loans, net | 250,963,387 | 236,545,125 |
Mortgage servicing rights | 865,398 | 852,715 |
Credit enhancement receivable | 97,001 | |
Financial liabilities: | ||
Noninterest-bearing deposits | 30,059,481 | 29,546,051 |
Interest-bearing deposits | 196,141,018 | 179,512,265 |
Federal funds purchased | 399,000 | |
Federal Home Loan Bank borrowings | 5,000,000 | 6,745,400 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and due from financial institutions | 4,023,000 | 4,881,000 |
Interest-earning deposits | 879,000 | |
Federal Home Loan Bank stock | 283,000 | 453,000 |
Accrued interest receivable | 1,451,000 | 1,298,000 |
Financial liabilities: | ||
Federal funds purchased | 150,000 | |
Accrued interest payable and other liabilities | 1,712,000 | 820,000 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Securities available-for-sale | 1,344,000 | 1,411,000 |
Securities held-to-maturity | 724,000 | 746,000 |
Loans, net | 247,636,000 | 232,931,000 |
Mortgage servicing rights | 1,199,000 | 1,089,000 |
Credit enhancement receivable | 97,000 | |
Financial liabilities: | ||
Noninterest-bearing deposits | 30,059,000 | 29,546,000 |
Interest-bearing deposits | 196,831,000 | 185,040,000 |
Federal funds purchased | 399,000 | |
Federal Home Loan Bank borrowings | $ 5,000,000 | $ 6,745,000 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss | ||
Unrealized holding losses on securities available-for-sale | $ (20,772) | $ (16,034) |
Tax expense | 7,063 | 5,452 |
Total accumulated other comprehensive loss | $ (13,709) | $ (10,582) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Statutory federal corporate tax rate (as a percent) | 34.00% | ||||
Blended federal tax rate (as a percent) | 28 | ||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Provision computed at the statutory federal tax rate | $ (56,097) | $ (180,602) | $ (231,490) | $ (314,399) | |
State income taxes, net of federal tax | (10,589) | (15,715) | (26,990) | (27,755) | |
Release of unearned EOSP shares and stock awards | 283 | 2,355 | 6,464 | 5,547 | |
Nondeductible expenses | (2,078) | (2,066) | (4,010) | (3,714) | |
Effect of Tax Cuts and Jobs Act | (347,957) | (347,957) | |||
Other | (25,691) | (9,860) | |||
Total income tax expense | $ (416,438) | $ (221,719) | $ (603,983) | $ (350,181) | |
Forecast | |||||
Statutory federal corporate tax rate (as a percent) | 21.00% |
Stock Buyback (Details)
Stock Buyback (Details) | 1 Months Ended | 6 Months Ended | |||||||
Dec. 31, 2017$ / sharesshares | Nov. 30, 2017$ / sharesshares | Oct. 31, 2017shares | Sep. 30, 2017shares | Aug. 31, 2017$ / sharesshares | Jul. 31, 2017$ / sharesshares | Dec. 31, 2017item$ / sharesshares | Nov. 21, 2017shares | Oct. 07, 2016shares | |
Common stock purchased during the period: | |||||||||
Number of stock repurchase programs | item | 2 | ||||||||
Maximum number of shares that can be purchased | 342,303 | 342,303 | |||||||
First Stock Repurchase Program | |||||||||
Common stock purchased during the period: | |||||||||
Maximum number of shares that can be purchased | 173,857 | ||||||||
Second Stock Repurchase Program | |||||||||
Common stock purchased during the period: | |||||||||
Maximum number of shares that can be purchased | 168,446 | ||||||||
Common Stock | |||||||||
Common stock purchased during the period: | |||||||||
Shares purchased | 6,500 | 436 | 2,000 | 1,600 | 10,536 | ||||
Average price paid per share | $ / shares | $ 10.35 | $ 10.40 | $ 10.15 | $ 10.20 | $ 10.29 | ||||
Common Stock | Stock Repurchase Programs | |||||||||
Common stock purchased during the period: | |||||||||
Shares purchased | 179,058 | 172,122 | 171,686 | 171,686 | 171,686 | 169,686 | |||
Maximum number of shares that may yet be purchased | 161,510 | 168,010 | 2,171 | 2,171 | 2,171 | 4,171 | 161,510 |