Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | New Bancorp, Inc. | |
Entity Central Index Key | 1,644,482 | |
Trading Symbol | nwbb | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 696,600 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 1,495 | $ 7,132 |
Interest-earning demand deposits | 1,772 | 1,678 |
Federal funds sold | 8,089 | |
Cash and cash equivalents | 11,356 | 8,810 |
Interest-earning time deposits in banks | 992 | 992 |
Loans, net of allowance, for loan losses of $1,076, and $1,155 at September 30, 2016 and December 31, 2015, respectively | 79,477 | 76,575 |
Premises and equipment | 1,972 | 2,024 |
Federal Home Loan Bank stock | 468 | 468 |
Foreclosed real estate held for sale, net | 25 | 245 |
Accrued interest receivable | 209 | 217 |
Bank owned life insurance | 5,375 | 5,247 |
Mortgage servicing rights | 439 | 317 |
Prepaid expenses and other assets | 207 | 150 |
Total assets | 100,520 | 95,045 |
Liabilities | ||
Demand | 27,969 | 20,435 |
Savings and money market accounts | 17,314 | 18,918 |
Time | 32,798 | 32,913 |
Total deposits | 78,081 | 72,266 |
Advances from the Federal Home Loan Bank | 6,927 | 6,927 |
Accrued nonqualified benefit plans | 129 | 139 |
Other liabilities | 769 | 639 |
Total liabilities | 85,906 | 79,971 |
Commitments and Contingencies | ||
Redeemable common stock held by Employee Stock Ownership Plan (ESOP) | 46 | 44 |
Shareholders' Equity | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued | ||
Common stock, $0.01 par value, 5,000,000 shares authorized, 696,600 shares issued and outstanding | 7 | 7 |
Additional paid-in capital | 5,754 | 5,754 |
Unearned ESOP shares | (523) | (523) |
Retained earnings | 9,376 | 9,836 |
Total shareholders' equity | 14,614 | 15,074 |
Less maximum cash obligation related to ESOP shares | 46 | 44 |
Total shareholders' equity less maximum cash obligation related to ESOP shares | 14,568 | 15,030 |
Total liabilities and equity | $ 100,520 | $ 95,045 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for loan losses | $ 1,076 | $ 1,155 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 696,600 | 696,600 |
Common stock, shares outstanding (in shares) | 696,600 | 696,600 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Income | ||||
Loans | $ 855 | $ 790 | $ 2,488 | $ 2,372 |
Interest-bearing deposits | 19 | 10 | 46 | 31 |
Total interest income | 874 | 800 | 2,534 | 2,403 |
Interest Expense | ||||
Deposits | 153 | 157 | 456 | 444 |
Borrowings | 20 | 33 | 86 | 102 |
Total interest expense | 173 | 190 | 542 | 546 |
Net Interest Income | 701 | 610 | 1,992 | 1,857 |
Provision for Loan Losses | ||||
Net Interest Income After Provision for Loan Losses | 701 | 610 | 1,992 | 1,857 |
Noninterest Income | ||||
Service charges and fees | 72 | 76 | 213 | 231 |
Gain on sale of loans | 135 | 62 | 470 | 341 |
Gain (loss) on sale of foreclosed real estate, net | 7 | (1) | 21 | (1) |
Income from bank owned life insurance | 43 | 42 | 128 | 124 |
Loan servicing fees, net | (4) | 13 | 24 | 17 |
Other operating | 6 | 6 | 23 | 16 |
Total noninterest income | 259 | 198 | 879 | 728 |
Noninterest Expense | ||||
Salaries and employee benefits | 642 | 467 | 1,818 | 1,366 |
Occupancy and equipment | 119 | 94 | 351 | 335 |
Data processing fees | 112 | 107 | 314 | 300 |
FDIC insurance premiums | 18 | 19 | 57 | 56 |
Insurance premiums | 10 | 13 | 34 | 38 |
Professional services | 59 | 24 | 311 | 124 |
Impairment losses and expenses of foreclosed real estate | 113 | 5 | 133 | |
Other | 187 | 91 | 441 | 252 |
Total noninterest expense | 1,147 | 928 | 3,331 | 2,604 |
Net Loss | $ (187) | $ (120) | $ (460) | $ (19) |
Loss per share - basic and diluted (in dollars per share) | $ (0.29) | $ (0.71) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Shares Acquired by Employee Stock Ownership Plan [Member] | Retained Earnings [Member] | Maximum Cash Obligation Related to ESOP Shares [Member] | Total |
Balance at Dec. 31, 2015 | $ 7 | $ 5,754 | $ (523) | $ 9,836 | $ (44) | $ 15,030 |
Maximum cash obligation related to ESOP shares | (2) | (2) | ||||
Net loss | (460) | (460) | ||||
Balance at Sep. 30, 2016 | $ 7 | $ 5,754 | $ (523) | $ 9,376 | $ (46) | $ 14,568 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net loss | $ (460) | $ (19) |
Items not requiring (providing) cash | ||
Depreciation and amortization | 188 | 187 |
Amortization of deferred loan origination fees and costs, net | (3) | 4 |
Gain on sale of loans | (470) | (341) |
Proceeds from sales of loans originated for sale | 10,906 | 8,318 |
Loans originated for sale | (10,607) | (7,852) |
(Gain) loss on sale of foreclosed real estate | (21) | 1 |
Impairment loss on foreclosed real estate | 111 | |
Changes in | ||
Accrued interest receivable | 8 | (2) |
Prepaid expenses and other assets | (57) | (542) |
Cash surrender value of life insurance | (128) | (124) |
Other liabilities | 120 | (2,608) |
Net cash used in operating activities | (524) | (2,867) |
Investing Activities | ||
Proceeds from sales of loans | 2,135 | |
Net change in loans | (2,924) | (3,360) |
Purchase of premises and equipment | (87) | (24) |
Proceeds from redemption of FHLB stock | 210 | |
Proceeds from sale of foreclosed assets | 266 | 166 |
Net cash used in investing activities | (2,745) | (873) |
Financing Activities | ||
Net increase in deposits | 5,815 | 3,424 |
Net change in federal funds purchased | (2,500) | |
Proceeds from stock subscriptions held in escrow | 2,378 | |
Net cash provided by financing activities | 5,815 | 3,302 |
Increase (decrease) in Cash and Cash Equivalents | 2,546 | (438) |
Cash and Cash Equivalents, Beginning of Period | 8,810 | 7,981 |
Cash and Cash Equivalents, End of Period | 11,356 | 7,543 |
Supplemental Disclosure of Cash Flow Information | ||
Interest on deposits and borrowings | 547 | 553 |
Supplemental Disclosure of Noncash Investing Activities | ||
Transfers from loans to loans held for sale | 2,057 | |
Transfers from loans to real estate acquired through foreclosure | $ 25 | $ 338 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1: Basis of Presentation The accompanying condensed consolidated balance sheet of New Bancorp, Inc. (the Company) as of December 31, 2015, which has been derived from audited financial statements, and the unaudited condensed consolidated financial statements of the Company as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015, were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto of the Company for the year ended December 31, 2015 included in the Company’s Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of September 30, 2016 Principles of Consolidation The consolidated financial statements as of and for the periods ended September 30, 2016 and December 31, 2015, include New Bancorp, Inc. and its wholly-owned subsidiary the New Buffalo Savings Bank “the Bank”, together referred to as the “Company.” Intercompany transactions and balances have been eliminated in consolidation. The financial statements as of and for the periods ended September 30, 2015 represent the Bank only, as the conversion to stock form, including the formation of New Bancorp, Inc., was completed on October 19, 2015. References herein to the “Company” for periods prior to the completion of the stock conversion should be deemed to refer to the “Bank.” Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported 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 during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets and fair values of financial instruments. |
Note 2 - Securities
Note 2 - Securities | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2: Securities The Company had no investment securities at September 30, 2016 and December 31, 2015. The Company had no sales of investment securities during the three and nine month periods ended September 30, 2016 and 2015. |
Note 3 - Loans and Allowance fo
Note 3 - Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3: Loans and Allowance for Loan Losses The Company’s loan and allowance for loan losses policies are as follows: Loans Receivable Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses and any unamortized deferred fees or costs on originated loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. 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. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Bank’s internal risk rating process. Other adjustments may be made to Classes of loans at September 30, 2016 and December 31, 2015 include: September 30, December 31, 2016 2015 (Unaudited) (In thousands) Real estate loans Residential $ 43,364 $ 41,972 Commercial 28,931 27,319 Construction and land 7,076 7,196 Commercial business 447 1,354 Consumer and other 805 321 Total loans 80,623 78,162 Less: Net deferred loan fees, premiums and discounts (70 ) (2 ) Undisbursed loans in process - (430 ) Allowance for loan losses (1,076 ) (1,155 ) Net loans $ 79,477 $ 76,575 Residential Real Estate: Commercial Real Estate: Construction and Land: Commercial Business : Consumer: The following tables present by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2016 and 2015 and the recorded investment in loans and impairment method as of September 30, 2016 and December 31, 2015: September 30, 2016 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Three months ended September 30, 2016 Allowance for loan losses: Balance, July 1, 2016 $ 766 $ 331 $ 88 $ 6 $ 5 $ 1,196 Provision (credit) for loan losses (28 ) 40 (6 ) (2 ) (4 ) - Charge-offs (120 ) - - - - (120 ) Recoveries - - - - - - Balance, September 30, 2016 $ 618 $ 371 $ 82 $ 4 $ 1 $ 1,076 Nine months ended September 30, 2016 Allowance for loan losses: Balance, January 1, 2016 $ 648 $ 383 $ 102 $ 19 $ 3 $ 1,155 Provision (credit) for loan losses 90 (12 ) (61 ) (15 ) (2 ) - Charge-offs (120 ) - - - - (120 ) Recoveries - - 41 - - 41 Balance, September 30, 2016 $ 618 $ 371 $ 82 $ 4 $ 1 $ 1,076 September 30, 2016 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance, individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance, collectively evaluated for impairment $ 618 $ 371 $ 82 $ 4 $ 1 $ 1,076 Loans: Ending balance $ 43,364 $ 28,931 $ 7,076 $ 447 $ 805 $ 80,623 Ending balance; individually evaluated for impairment $ 1,575 $ 235 $ 1,532 $ - $ - $ 3,342 Ending balance; collectively evaluated for impairment $ 41,789 $ 28,696 $ 5,544 $ 447 $ 805 $ 77,281 September 30, 2015 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Three months ended September 30, 2015 Allowance for loan losses: Balance, July 1, 2015 $ 599 $ 421 $ 106 $ 23 $ 6 $ 1,155 Provision (credit) for loan losses 40 (31 ) (1 ) (6 ) (2 ) - Charge-offs - - - - - - Recoveries - - - - - - Balance, September 30, 2015 $ 639 $ 390 $ 105 $ 17 $ 4 $ 1,155 Nine months ended September 30, 2015 Allowance for loan losses: Balance, January 1, 2015 $ 575 $ 418 $ 126 $ 23 $ 5 $ 1,147 Provision (credit) for loan losses 56 (28 ) (21 ) (6 ) (1 ) - Charge-offs - - - - - - Recoveries 8 - - - - 8 Balance, September 30, 2015 $ 639 $ 390 $ 105 $ 17 $ 4 $ 1,155 December 31, 2015 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance $ 648 $ 383 $ 102 $ 19 $ 3 $ 1,155 Ending balance, individually evaluated for impairment $ 20 $ - $ - $ - $ - $ 20 Ending balance, collectively evaluated for impairment $ 628 $ 383 $ 102 $ 19 $ 3 $ 1,135 Loans: Ending balance $ 41,972 $ 27,319 $ 7,196 $ 1,354 $ 321 $ 78,162 Ending balance; individually evaluated for impairment $ 1,763 $ 229 $ 1,751 $ - $ - $ 3,743 Ending balance; collectively evaluated for impairment $ 40,209 $ 27,090 $ 5,445 $ 1,354 $ 321 $ 74,419 Internal Risk Categories The Bank has adopted a standard loan grading system for all loans. Loans are selected for a grading review based on certain characteristics, including concentrations of credit and upon delinquency of 90 days or more. Definitions are as follows: Pass : Special Mention/Watch Substandard Doubtful Loss The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of September 30, 2016 and December 31, 2015: September 30, 2016 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 41,877 $ 27,852 $ 7,076 $ 447 $ 789 $ 78,041 Special mention/Watch 527 - - - 16 543 Substandard 960 1,079 - - - 2,039 Doubtful - - - - - - Total $ 43,364 $ 28,931 $ 7,076 $ 447 $ 805 $ 80,623 December 31, 2015 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 39,842 $ 26,178 $ 7,022 $ 1,354 $ 294 $ 74,690 Special mention/Watch 686 529 8 - 27 1,250 Substandard 1,444 612 166 - - 2,222 Doubtful - - - - - - Total $ 41,972 $ 27,319 $ 7,196 $ 1,354 $ 321 $ 78,162 The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the past year. The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2016 and December 31, 2015: September 30, 2016 (Unaudited) Greater Total Loans > 30-59 Days 60-89 Days Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 418 $ 51 $ 263 $ 732 $ 42,632 $ 43,364 $ - Commercial - - 4 4 28,927 28,931 - Construction and land - - - - 7,076 7,076 - Commercial business - - - - 447 447 - Consumer - - - - 805 805 - Total $ 418 $ 51 $ 267 $ 736 $ 79,887 $ 80,623 $ - December 31, 2015 Greater Total Loans > 30-59 Days 60-89 Days Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 455 $ 100 $ 598 $ 1,153 $ 40,819 $ 41,972 $ - Commercial - 7 - 7 27,312 27,319 - Construction and land - - 166 166 7,030 7,196 - Commercial business - - - - 1,354 1,354 - Consumer - - - - 321 321 Total $ 455 $ 107 $ 764 $ 1,326 $ 76,836 $ 78,162 $ - A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming multi-family and commercial loans but also include loans modified in troubled debt restructurings. The following table presents impaired loans as of September 30, 2016 and for the three month periods ended September 30, 2016 and 2015: As of For the Three Months Ended September 30, 2016 September 30, 2016 September 30, 2015 Unpaid Average Balance of Interest Average Balance of Interest Recorded Balance Principal Balance Specific Allowance Impaired Loans Income Recognized Impaired Loans Income Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,575 $ 1,711 $ - $ 1,655 $ 11 $ 1,600 $ 23 Commercial 235 240 - 237 2 247 5 Construction and land 1,532 1,547 - 1,539 22 1,817 23 Commercial business - - - - - Consumer - - - - - - - Loans with a specific valuation allowance: Real estate Residential - - - - - 89 - Commercial - - - - - - - Construction and land - - - - - - - Commercial business - - - - - - - Consumer - - - - - - - Totals $ 3,342 $ 3,498 $ - $ 3,431 $ 35 $ 3,753 $ 51 The following table presents impaired loan information for the nine month periods ended September 30, 2016 and 2015: For the Nine Months Ended September 30, 2016 September 30, 2015 Average Balance of Interest Average Balance of Interest Impaired Loans Income Recognized Impaired Loans Income Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,631 $ 39 $ 1,489 $ 54 Commercial 236 10 241 12 Construction and land 1,639 64 1,833 66 Commercial business - - - - Consumer - - - - Loans with a specific valuation allowance: Real estate Residential - 8 62 - Commercial - - - - Construction and land - - - - Commercial business - - - - Consumer - - - - Totals $ 3,506 $ 121 $ 3,625 $ 132 The following table presents impaired loans as of December 31, 2015: As of December 31, 2015 Recorded Balance Unpaid Principal Balance Specific Allowance (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,607 $ 1,647 $ - Commercial 229 229 - Construction and land 1,751 1,751 - Commercial business - - - Consumer - - - Loans with a specific valuation allowance: Real estate Residential 156 166 20 Commercial - - - Construction and land - - - Commercial business - - - Consumer - - - Totals $ 3,743 $ 3,793 $ 20 The following table presents the Company’s nonaccrual loans at September 30, 2016 and December 31, 2015. The table excludes performing troubled debt restructurings. September 30, December 31, 2016 2015 (Unaudited) (In thousands) Real estate loans Residential $ 885 $ 987 Commercial 4 7 Construction and land - 166 Commercial business - - Consumer and other - - Total nonaccrual $ 889 $ 1,160 At September 30, 2016 (unaudited) and December 31, 2015, the Company had certain loans that were modified in troubled debt restructurings (TDRs) and impaired. The modification of terms of such loans generally included one or a combination of the following: an extension of the maturity date or a reduction of the stated interest rate. During the three and nine months ended September 30, 2016 there were no new loan modifications classified as TDRs. There were no new loan modifications classified as TDRs during the three months ended September 30, 2015. T he following tables present information regarding TDRs by class for the three and nine months ended September 30, 2015. Newly classified TDRs were as follows: For the nine months ended: Number of Contracts Pre-Modification Balance Post-Modification Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 Construction and land 2 42 42 3 $ 92 $ 92 For the three months ended: Number of Contracts Pre-Modification Balance Post-Modification Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 The TDRs described above did not increase the allowance for loan losses or result in a charge-off during the three and nine months ended September 30, 2015. The Company had no TDRs modified in the twelve months ended September 30, 2016 and 2015 that subsequently defaulted. A loan is considered to be in payment default once it is 30 days contractually past due under the loan’s modified terms. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s internal underwriting policy. Foreclosed real estate held for sale consisted of residential real estate at December 31, 2015. There were $385,000 and $423,000 of residential real estate loans in the process of foreclosure at September 30, 2016 and December 31, 2015, respectively. |
Note 4 - Regulatory Matters
Note 4 - Regulatory Matters | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 4: Regulatory Matters The Bank is subject to various 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 Bank’s 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 the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. At September 30, 2016 and December 31, 2015, quantitative measures established by regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios (set forth in the table below), of total capital, Tier 1 capital and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 leverage capital to average total assets. Basel III was effective for the Company on January 1, 2015. Basel III requires the Company and the Bank to maintain minimum amounts and ratios of common equity Tier 1 capital to risk weighted assets, as defined in the regulation. Under the new Basel III rules, in order to avoid limitations on capital distributions, including dividends, the Company must hold a capital conservation buffer above the adequately capitalized common equity Tier 1 capital to risk-weighted assets ratio. The capital conservation buffer is being phased in from zero percent to 2.50 percent by 2019. Under Basel III, the Company and Bank elected to opt-out of including accumulated other comprehensive income in regulatory capital. Management believes, as of September 30, 2016 (unaudited) and December 31, 2015, that the Bank meets all capital adequacy requirements to which it is subject. As of September 30, 2016 (unaudited) and December 31, 2015, the most recent notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are presented in the following table: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of September 30, 2016 (Unaudited) Total Capital (to Risk-Weighted Assets) $ 13,928 18.5 % $ 6,030 8.0 % $ 7,538 10.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 12,984 17.2 % $ 4,523 6.0 % $ 6,030 8.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 12,984 17.2 % $ 3,392 4.5 % $ 4,900 6.5 % Tier I Leverage Capital (to Average Total Assets) $ 12,984 12.7 % $ 4,090 4.0 % $ 5,113 5.0 % As of December 31, 2015 Total Capital (to Risk-Weighted Assets) $ 14,072 21.3 % $ 5,295 8.0 % $ 6,618 10.0 % Tier I Capital (to Risk-Weighted Assets) $ 13,241 20.0 % $ 3,971 6.0 % $ 5,295 8.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 13,241 20.0 % $ 2,978 4.5 % $ 4,302 6.5 % Tier I Capital (to Total Assets) $ 13,241 13.9 % $ 3,801 4.0 % $ 4,752 5.0 % |
Note 5 - Disclosures About Fair
Note 5 - Disclosures About Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 5: Disclosures about Fair Value of Assets and Liabilities Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Level 2 New Bancorp, Inc. Notes to Condensed Consolidated Financial Statements Level 3 Nonrecurring Measurements The following table presents fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which fair value measurements fall at September 30, 2016 and December 31, 2015: Fair Value Measurement Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) September 30, 2016 (Unaudited) Impaired loans, collateral dependent $ 256 $ - $ - $ 256 December 31, 2015 Impaired loans, collateral dependent $ 136 $ - $ - $ 136 Foreclosed assets held for sale 245 - - 245 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-dependent Impaired Loans, Net of ALLL The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Bank considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results. New Bancorp, Inc. Notes to Condensed Consolidated Financial Statements Foreclosed Real Estate Held for Sale Foreclosed real estate held for sale is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of foreclosed real estate is based on appraisals or evaluations. Foreclosed real estate is classified within Level 3 of the fair value hierarchy. Appraisals of foreclosed real estate are obtained when the real estate is acquired and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by the management. Appraisers are selected from the list of approved appraisers maintained by management. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements: Fair Value Valuation Technique Unobservable Inputs Range (In thousands) September 30, 2016 (unaudited) Impaired loans (collateral dependent) $ 256 Marketable comparable properties Marketability discount 17% - 24% December 31, 2015 Impaired loans (collateral dependent) $ 136 Marketable comparable properties Marketability discount 10% - 15% Foreclosed real estate 245 Marketable comparable properties Comparability adjustments 9% New Bancorp, Inc. Notes to Condensed Consolidated Financial Statements Fair Value of Financial Instruments The following table presents the estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2016 and December 31, 2015. Fair Value Measurement Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) September 30, 2016 (Unaudited) Financial assets Cash and due from banks $ 1,495 $ 1,495 $ 1,495 $ - $ - Interest-earning demand deposits 1,772 1,772 1,772 - - Federal funds sold 8,089 8,089 8,089 - - Interest-earning time deposits in banks 992 992 - 992 - Loans, net 79,477 79,992 - - 79,992 Federal Home Loan Bank stock 468 468 - 468 - Accrued interest receivable 209 209 - 209 - Mortgage servicing rights 439 439 - - 439 Financial liabilities Deposits 78,081 78,623 45,283 33,340 - Advances from the Federal Home Loan Bank 6,927 6,927 - 6,927 - Accrued interest payable 6 6 - 6 - December 31, 2015 Financial assets Cash and due from banks $ 7,132 $ 7,132 $ 7,132 $ - $ - Interest-earning demand deposits 1,678 1,678 1,678 - - Interest-earning time deposits in banks 992 992 - 992 - Loans, net 76,575 77,086 - - 77,086 Federal Home Loan Bank stock 468 468 - 468 - Accrued interest receivable 217 217 - 217 - Mortgage servicing rights 317 317 - - 317 Financial liabilities Deposits 72,266 72,708 39,353 33,355 - Advances from the Federal Home Loan Bank 6,927 7,023 - 7,023 - Accrued interest payable 11 11 - 11 - The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value. Cash and Due from Banks, Interest-earning Demand Deposits and Federal Funds Sold The carrying amount approximates fair value. New Bancorp, Inc. Notes to Condensed Consolidated Financial Statements Interest-earning Time Deposits in Banks The carrying amount approximates fair value. Loans Fair value is estimated by discounting the future cash flows using the market rates at which similar notes would be made to borrowers with similar credit ratings and for the same remaining maturities. The market rates used are based on current rates the Bank would impose for similar loans and reflect a market participant assumption about risks associated with nonperformance, illiquidity, and the structure and term of the loans along with local economic and market conditions. Federal Home Loan Bank Stock Fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities. Accrued Interest Receivable and Payable The carrying amount approximates fair value. The carrying amount is determined using the interest rate, balance and last payment date. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed and default rate. Deposits Fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from a knowledgeable independent third party and reviewed by the Bank. The rates were the average of current rates offered by local competitors of the Bank. The estimated fair value of demand, NOW, savings and money market deposits is the book value since rates are regularly adjusted to market rates and amounts are payable on demand at the reporting date. New Bancorp, Inc. Notes to Condensed Consolidated Financial Statements Federal Home Loan Bank Advances Fair value is estimated by discounting the future cash flows using rates of similar advances with similar maturities. These rates were obtained from current rates offered by the Federal Home Loan Bank. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. |
Note 6 - Recent Accounting Pron
Note 6 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 6: Recent Accounting Pronouncements The Company is an emerging growth company and as such will be subject to the effective dates noted for the private companies if they differ from the effective dates noted for public companies. FASB ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In March, 2016 the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016-02-12, “Narrow-Scope Improvements and Practical Expedients” which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. This ASU also provides a practical expedient for contract modifications. The amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods. The Company is currently evaluating the impact of adopting the guidance. New Bancorp, Inc. Notes to Condensed Consolidated Financial Statements FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”. For public business entities, the amendments in this update include the elimination of the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, the requirement to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, the requirement to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, the requirement for separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or accompanying notes to the financial statements, and the amendments clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption of the amendments in this update is not permitted, except that early application by public business entities to financial statements of fiscal years or interim periods that have not yet been issued or, by all other entities, that have not yet been made available for issuance are permitted as of the beginning of the fiscal year of adoption for the following amendment: An entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. An entity should apply the amendments to this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements. FASB ASU 2016-02, Leases In February 2016 the FASB issued ASU 2016-02, “Leases”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: ● A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and ● A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, “Revenue from Contracts with Customers”. New Bancorp, Inc. Notes to Condensed Consolidated Financial Statements The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements. FASB ASU 2016-13, Financial Instruments – Credit Losses In June 2016, FASB issued ASU 2016-13, “Financial Instruments - Credit Losses”. The amendments in this Update replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations. |
Note 7 - Loss Per Share
Note 7 - Loss Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 7: Loss Per Share Basic loss per share (“LPS”) is calculated by dividing net loss applicable to common stock by the weighted-average number of shares of common stock outstanding during the period. Unallocated common shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for basic and diluted LPS calculations until they are committed to be released. Loss per share for the three and nine months ended September 30, 2016 was $0.29 and $0.71, respectively, calculated using 696,600 average shares issued, less 52,353 unallocated average shares held by the ESOP for each period. The Company had no dilutive or potentially dilutive securities at September 30, 2016. Earnings per share disclosures are not applicable to the three and nine-month periods ended September 30, 2015, because the Company did not complete the conversion to stock form until October 19, 2015. |
Note 8 - Employee Stock Ownersh
Note 8 - Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | Note 8: Employee Stock Ownership Plan As part of the Company’s stock conversion, shares were purchased by the ESOP with a loan from New Bancorp. All employees of the Bank meeting certain tenure requirements are entitled to participate in the ESOP. Compensation expense related to the ESOP was $7,000 and $20,000 for the three and nine-month periods ended September 30, 2016, respectively . The stock price at the formation date was $10.00. The aggregate fair value of the 52,353 unallocated shares was $707,000 based on the $13.50 closing price of our common stock on September 30, 2016. |
Note 9 - Change in Corporate Fo
Note 9 - Change in Corporate Form | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Change in Corporate Form [Text Block] | Note 9: Change in Corporate Form On October 19, 2015, the Bank converted into a federal stock savings bank and established a stock holding company, New Bancorp, Inc., as parent of the Bank. The Bank converted to the stock form of ownership, followed by the issuance of all of the Bank’s outstanding stock to New Bancorp, Inc. The Bank became the wholly owned subsidiary of the Company, and the Company issued and sold shares of its capital stock pursuant to an independent valuation appraisal of the Bank and the Company. The stock was priced at $10.00 per share. In addition, the Bank’s board of directors adopted an employee stock ownership plan (ESOP) which subscribed for 8% of the common stock sold in the offering. The Conversion was completed on October 19, 2015 and resulted in the issuance of 696,600 common shares by the Company. The cost of the Conversion and issuing the capital stock totaled $1.2 million and was deducted from the proceeds of the offering. In accordance with OCC regulations, at the time of the Conversion, the Bank substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible holders who continue to maintain their accounts at the Bank after the Conversion. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. In the event of a complete liquidation of the Bank, and only in such event, each eligible account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount. The conver sion was accounted for as a change in corporate form with the historic basis of the Bank’s assets, liabilities and equity unchanged as a result. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements as of and for the periods ended September 30, 2016 and December 31, 2015, include New Bancorp, Inc. and its wholly-owned subsidiary the New Buffalo Savings Bank “the Bank”, together referred to as the “Company.” Intercompany transactions and balances have been eliminated in consolidation. The financial statements as of and for the periods ended September 30, 2015 represent the Bank only, as the conversion to stock form, including the formation of New Bancorp, Inc., was completed on October 19, 2015. References herein to the “Company” for periods prior to the completion of the stock conversion should be deemed to refer to the “Bank.” |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported 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 during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets and fair values of financial instruments. |
New Accounting Pronouncements, Policy [Policy Text Block] | FASB ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In March, 2016 the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016-02-12, “Narrow-Scope Improvements and Practical Expedients” which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. This ASU also provides a practical expedient for contract modifications. The amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods. The Company is currently evaluating the impact of adopting the guidance. FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”. For public business entities, the amendments in this update include the elimination of the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, the requirement to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, the requirement to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, the requirement for separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or accompanying notes to the financial statements, and the amendments clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption of the amendments in this update is not permitted, except that early application by public business entities to financial statements of fiscal years or interim periods that have not yet been issued or, by all other entities, that have not yet been made available for issuance are permitted as of the beginning of the fiscal year of adoption for the following amendment: An entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. An entity should apply the amendments to this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements. FASB ASU 2016-02, Leases In February 2016 the FASB issued ASU 2016-02, “Leases”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: ● A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and ● A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, “Revenue from Contracts with Customers”. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements. FASB ASU 2016-13, Financial Instruments – Credit Losses In June 2016, FASB issued ASU 2016-13, “Financial Instruments - Credit Losses”. The amendments in this Update replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations. |
Note 3 - Loans and Allowance 17
Note 3 - Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, December 31, 2016 2015 (Unaudited) (In thousands) Real estate loans Residential $ 43,364 $ 41,972 Commercial 28,931 27,319 Construction and land 7,076 7,196 Commercial business 447 1,354 Consumer and other 805 321 Total loans 80,623 78,162 Less: Net deferred loan fees, premiums and discounts (70 ) (2 ) Undisbursed loans in process - (430 ) Allowance for loan losses (1,076 ) (1,155 ) Net loans $ 79,477 $ 76,575 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | September 30, 2016 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Three months ended September 30, 2016 Allowance for loan losses: Balance, July 1, 2016 $ 766 $ 331 $ 88 $ 6 $ 5 $ 1,196 Provision (credit) for loan losses (28 ) 40 (6 ) (2 ) (4 ) - Charge-offs (120 ) - - - - (120 ) Recoveries - - - - - - Balance, September 30, 2016 $ 618 $ 371 $ 82 $ 4 $ 1 $ 1,076 Nine months ended September 30, 2016 Allowance for loan losses: Balance, January 1, 2016 $ 648 $ 383 $ 102 $ 19 $ 3 $ 1,155 Provision (credit) for loan losses 90 (12 ) (61 ) (15 ) (2 ) - Charge-offs (120 ) - - - - (120 ) Recoveries - - 41 - - 41 Balance, September 30, 2016 $ 618 $ 371 $ 82 $ 4 $ 1 $ 1,076 September 30, 2016 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance, individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance, collectively evaluated for impairment $ 618 $ 371 $ 82 $ 4 $ 1 $ 1,076 Loans: Ending balance $ 43,364 $ 28,931 $ 7,076 $ 447 $ 805 $ 80,623 Ending balance; individually evaluated for impairment $ 1,575 $ 235 $ 1,532 $ - $ - $ 3,342 Ending balance; collectively evaluated for impairment $ 41,789 $ 28,696 $ 5,544 $ 447 $ 805 $ 77,281 September 30, 2015 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Three months ended September 30, 2015 Allowance for loan losses: Balance, July 1, 2015 $ 599 $ 421 $ 106 $ 23 $ 6 $ 1,155 Provision (credit) for loan losses 40 (31 ) (1 ) (6 ) (2 ) - Charge-offs - - - - - - Recoveries - - - - - - Balance, September 30, 2015 $ 639 $ 390 $ 105 $ 17 $ 4 $ 1,155 Nine months ended September 30, 2015 Allowance for loan losses: Balance, January 1, 2015 $ 575 $ 418 $ 126 $ 23 $ 5 $ 1,147 Provision (credit) for loan losses 56 (28 ) (21 ) (6 ) (1 ) - Charge-offs - - - - - - Recoveries 8 - - - - 8 Balance, September 30, 2015 $ 639 $ 390 $ 105 $ 17 $ 4 $ 1,155 December 31, 2015 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance $ 648 $ 383 $ 102 $ 19 $ 3 $ 1,155 Ending balance, individually evaluated for impairment $ 20 $ - $ - $ - $ - $ 20 Ending balance, collectively evaluated for impairment $ 628 $ 383 $ 102 $ 19 $ 3 $ 1,135 Loans: Ending balance $ 41,972 $ 27,319 $ 7,196 $ 1,354 $ 321 $ 78,162 Ending balance; individually evaluated for impairment $ 1,763 $ 229 $ 1,751 $ - $ - $ 3,743 Ending balance; collectively evaluated for impairment $ 40,209 $ 27,090 $ 5,445 $ 1,354 $ 321 $ 74,419 |
Financing Receivable Credit Quality Indicators [Table Text Block] | September 30, 2016 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 41,877 $ 27,852 $ 7,076 $ 447 $ 789 $ 78,041 Special mention/Watch 527 - - - 16 543 Substandard 960 1,079 - - - 2,039 Doubtful - - - - - - Total $ 43,364 $ 28,931 $ 7,076 $ 447 $ 805 $ 80,623 December 31, 2015 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 39,842 $ 26,178 $ 7,022 $ 1,354 $ 294 $ 74,690 Special mention/Watch 686 529 8 - 27 1,250 Substandard 1,444 612 166 - - 2,222 Doubtful - - - - - - Total $ 41,972 $ 27,319 $ 7,196 $ 1,354 $ 321 $ 78,162 |
Past Due Financing Receivables [Table Text Block] | September 30, 2016 (Unaudited) Greater Total Loans > 30-59 Days 60-89 Days Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 418 $ 51 $ 263 $ 732 $ 42,632 $ 43,364 $ - Commercial - - 4 4 28,927 28,931 - Construction and land - - - - 7,076 7,076 - Commercial business - - - - 447 447 - Consumer - - - - 805 805 - Total $ 418 $ 51 $ 267 $ 736 $ 79,887 $ 80,623 $ - December 31, 2015 Greater Total Loans > 30-59 Days 60-89 Days Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 455 $ 100 $ 598 $ 1,153 $ 40,819 $ 41,972 $ - Commercial - 7 - 7 27,312 27,319 - Construction and land - - 166 166 7,030 7,196 - Commercial business - - - - 1,354 1,354 - Consumer - - - - 321 321 Total $ 455 $ 107 $ 764 $ 1,326 $ 76,836 $ 78,162 $ - |
Impaired Financing Receivables [Table Text Block] | As of For the Three Months Ended September 30, 2016 September 30, 2016 September 30, 2015 Unpaid Average Balance of Interest Average Balance of Interest Recorded Balance Principal Balance Specific Allowance Impaired Loans Income Recognized Impaired Loans Income Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,575 $ 1,711 $ - $ 1,655 $ 11 $ 1,600 $ 23 Commercial 235 240 - 237 2 247 5 Construction and land 1,532 1,547 - 1,539 22 1,817 23 Commercial business - - - - - Consumer - - - - - - - Loans with a specific valuation allowance: Real estate Residential - - - - - 89 - Commercial - - - - - - - Construction and land - - - - - - - Commercial business - - - - - - - Consumer - - - - - - - Totals $ 3,342 $ 3,498 $ - $ 3,431 $ 35 $ 3,753 $ 51 For the Nine Months Ended September 30, 2016 September 30, 2015 Average Balance of Interest Average Balance of Interest Impaired Loans Income Recognized Impaired Loans Income Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,631 $ 39 $ 1,489 $ 54 Commercial 236 10 241 12 Construction and land 1,639 64 1,833 66 Commercial business - - - - Consumer - - - - Loans with a specific valuation allowance: Real estate Residential - 8 62 - Commercial - - - - Construction and land - - - - Commercial business - - - - Consumer - - - - Totals $ 3,506 $ 121 $ 3,625 $ 132 As of December 31, 2015 Recorded Balance Unpaid Principal Balance Specific Allowance (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,607 $ 1,647 $ - Commercial 229 229 - Construction and land 1,751 1,751 - Commercial business - - - Consumer - - - Loans with a specific valuation allowance: Real estate Residential 156 166 20 Commercial - - - Construction and land - - - Commercial business - - - Consumer - - - Totals $ 3,743 $ 3,793 $ 20 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | September 30, December 31, 2016 2015 (Unaudited) (In thousands) Real estate loans Residential $ 885 $ 987 Commercial 4 7 Construction and land - 166 Commercial business - - Consumer and other - - Total nonaccrual $ 889 $ 1,160 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | For the nine months ended: Number of Contracts Pre-Modification Balance Post-Modification Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 Construction and land 2 42 42 3 $ 92 $ 92 For the three months ended: Number of Contracts Pre-Modification Balance Post-Modification Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 |
Note 4 - Regulatory Matters (Ta
Note 4 - Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of September 30, 2016 (Unaudited) Total Capital (to Risk-Weighted Assets) $ 13,928 18.5 % $ 6,030 8.0 % $ 7,538 10.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 12,984 17.2 % $ 4,523 6.0 % $ 6,030 8.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 12,984 17.2 % $ 3,392 4.5 % $ 4,900 6.5 % Tier I Leverage Capital (to Average Total Assets) $ 12,984 12.7 % $ 4,090 4.0 % $ 5,113 5.0 % As of December 31, 2015 Total Capital (to Risk-Weighted Assets) $ 14,072 21.3 % $ 5,295 8.0 % $ 6,618 10.0 % Tier I Capital (to Risk-Weighted Assets) $ 13,241 20.0 % $ 3,971 6.0 % $ 5,295 8.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 13,241 20.0 % $ 2,978 4.5 % $ 4,302 6.5 % Tier I Capital (to Total Assets) $ 13,241 13.9 % $ 3,801 4.0 % $ 4,752 5.0 % |
Note 5 - Disclosures About Fa19
Note 5 - Disclosures About Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value Measurement Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) September 30, 2016 (Unaudited) Impaired loans, collateral dependent $ 256 $ - $ - $ 256 December 31, 2015 Impaired loans, collateral dependent $ 136 $ - $ - $ 136 Foreclosed assets held for sale 245 - - 245 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Fair Value Valuation Technique Unobservable Inputs Range (In thousands) September 30, 2016 (unaudited) Impaired loans (collateral dependent) $ 256 Marketable comparable properties Marketability discount 17% - 24% December 31, 2015 Impaired loans (collateral dependent) $ 136 Marketable comparable properties Marketability discount 10% - 15% Foreclosed real estate 245 Marketable comparable properties Comparability adjustments 9% |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurement Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) September 30, 2016 (Unaudited) Financial assets Cash and due from banks $ 1,495 $ 1,495 $ 1,495 $ - $ - Interest-earning demand deposits 1,772 1,772 1,772 - - Federal funds sold 8,089 8,089 8,089 - - Interest-earning time deposits in banks 992 992 - 992 - Loans, net 79,477 79,992 - - 79,992 Federal Home Loan Bank stock 468 468 - 468 - Accrued interest receivable 209 209 - 209 - Mortgage servicing rights 439 439 - - 439 Financial liabilities Deposits 78,081 78,623 45,283 33,340 - Advances from the Federal Home Loan Bank 6,927 6,927 - 6,927 - Accrued interest payable 6 6 - 6 - December 31, 2015 Financial assets Cash and due from banks $ 7,132 $ 7,132 $ 7,132 $ - $ - Interest-earning demand deposits 1,678 1,678 1,678 - - Interest-earning time deposits in banks 992 992 - 992 - Loans, net 76,575 77,086 - - 77,086 Federal Home Loan Bank stock 468 468 - 468 - Accrued interest receivable 217 217 - 217 - Mortgage servicing rights 317 317 - - 317 Financial liabilities Deposits 72,266 72,708 39,353 33,355 - Advances from the Federal Home Loan Bank 6,927 7,023 - 7,023 - Accrued interest payable 11 11 - 11 - |
Note 2 - Securities (Details Te
Note 2 - Securities (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Available-for-sale Securities | $ 0 | $ 0 | $ 0 | ||
Proceeds from Sale of Available-for-sale Securities | $ 0 | $ 0 | $ 0 | $ 0 |
Note 3 - Loans and Allowance 21
Note 3 - Loans and Allowance for Loan Losses (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 4,700,000 | $ 4,700,000 | $ 4,200,000 | ||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Modifications, Number of Contracts | 1 | 1 | |||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | $ 0 | $ 0 | $ 0 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 3 | 0 |
Allowance for Credit Losses, Change in Method of Calculating Impairment | $ 0 | $ 0 | $ 0 | $ 0 | |
Mortgage Loans in Process of Foreclosure, Amount | $ 385,000 | $ 385,000 | $ 423,000 |
Note 3 - Loans and Allowance 22
Note 3 - Loans and Allowance for Loan Losses - Classes of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Residential Portfolio Segment [Member] | ||||||
Loans receivable, gross | $ 43,364 | $ 41,972 | ||||
Allowance for loan losses | (618) | $ (766) | (648) | $ (639) | $ (599) | $ (575) |
Commercial Real Estate Portfolio Segment [Member] | ||||||
Loans receivable, gross | 28,931 | 27,319 | ||||
Allowance for loan losses | (371) | (331) | (383) | (390) | (421) | (418) |
Construction and Land Real Estate [Member] | ||||||
Loans receivable, gross | 7,076 | 7,196 | ||||
Allowance for loan losses | (82) | (88) | (102) | (105) | (106) | (126) |
Commercial Portfolio Segment [Member] | ||||||
Loans receivable, gross | 447 | 1,354 | ||||
Allowance for loan losses | (4) | (6) | (19) | (17) | (23) | (23) |
Consumer Portfolio Segment [Member] | ||||||
Loans receivable, gross | 805 | 321 | ||||
Allowance for loan losses | (1) | (5) | (3) | (4) | (6) | (5) |
Loans receivable, gross | 80,623 | 78,162 | ||||
Net deferred loan fees, premiums and discounts | (70) | (2) | ||||
Undisbursed loans in process | (430) | |||||
Allowance for loan losses | (1,076) | $ (1,196) | (1,155) | $ (1,155) | $ (1,155) | $ (1,147) |
Net loans | $ 79,477 | $ 76,575 |
Note 3 - Loans and Allowance 23
Note 3 - Loans and Allowance for Loan Losses - Activity in Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Residential Portfolio Segment [Member] | ||||||
Balance | $ 766 | $ 599 | $ 648 | $ 575 | ||
Provision (credit) for loan losses | (28) | 40 | 90 | 56 | ||
Charge-offs | (120) | (120) | ||||
Recoveries | 8 | |||||
Balance | 618 | 639 | 618 | 639 | ||
Ending balance, individually evaluated for impairment | $ 20 | |||||
Ending balance, collectively evaluated for impairment | 618 | 628 | ||||
Ending balance | 43,364 | 41,972 | ||||
Ending balance; individually evaluated for impairment | 1,575 | 1,763 | ||||
Ending balance; collectively evaluated for impairment | 41,789 | 40,209 | ||||
Ending balance | 766 | 599 | 618 | 639 | 618 | 648 |
Commercial Real Estate Portfolio Segment [Member] | ||||||
Balance | 331 | 421 | 383 | 418 | ||
Provision (credit) for loan losses | 40 | (31) | (12) | (28) | ||
Charge-offs | ||||||
Recoveries | ||||||
Balance | 371 | 390 | 371 | 390 | ||
Ending balance, individually evaluated for impairment | ||||||
Ending balance, collectively evaluated for impairment | 371 | 383 | ||||
Ending balance | 28,931 | 27,319 | ||||
Ending balance; individually evaluated for impairment | 235 | 229 | ||||
Ending balance; collectively evaluated for impairment | 28,696 | 27,090 | ||||
Ending balance | 331 | 421 | 371 | 390 | 371 | 383 |
Construction and Land Real Estate [Member] | ||||||
Balance | 88 | 106 | 102 | 126 | ||
Provision (credit) for loan losses | (6) | (1) | (61) | (21) | ||
Charge-offs | ||||||
Recoveries | 41 | |||||
Balance | 82 | 105 | 82 | 105 | ||
Ending balance, individually evaluated for impairment | ||||||
Ending balance, collectively evaluated for impairment | 82 | 102 | ||||
Ending balance | 7,076 | 7,196 | ||||
Ending balance; individually evaluated for impairment | 1,532 | 1,751 | ||||
Ending balance; collectively evaluated for impairment | 5,544 | 5,445 | ||||
Ending balance | 88 | 106 | 82 | 105 | 82 | 102 |
Commercial Portfolio Segment [Member] | ||||||
Balance | 6 | 23 | 19 | 23 | ||
Provision (credit) for loan losses | (2) | (6) | (15) | (6) | ||
Charge-offs | ||||||
Recoveries | ||||||
Balance | 4 | 17 | 4 | 17 | ||
Ending balance, individually evaluated for impairment | ||||||
Ending balance, collectively evaluated for impairment | 4 | 19 | ||||
Ending balance | 447 | 1,354 | ||||
Ending balance; individually evaluated for impairment | ||||||
Ending balance; collectively evaluated for impairment | 447 | 1,354 | ||||
Ending balance | 6 | 23 | 4 | 17 | 4 | 19 |
Consumer Portfolio Segment [Member] | ||||||
Balance | 5 | 6 | 3 | 5 | ||
Provision (credit) for loan losses | (4) | (2) | (2) | (1) | ||
Charge-offs | ||||||
Recoveries | ||||||
Balance | 1 | 4 | 1 | 4 | ||
Ending balance, individually evaluated for impairment | ||||||
Ending balance, collectively evaluated for impairment | 1 | 3 | ||||
Ending balance | 805 | 321 | ||||
Ending balance; individually evaluated for impairment | ||||||
Ending balance; collectively evaluated for impairment | 805 | 321 | ||||
Ending balance | 5 | 6 | 1 | 4 | 1 | 3 |
Balance | 1,196 | 1,155 | 1,155 | 1,147 | ||
Provision (credit) for loan losses | ||||||
Charge-offs | (120) | (120) | ||||
Recoveries | 41 | 8 | ||||
Balance | 1,076 | 1,155 | 1,076 | 1,155 | ||
Ending balance, individually evaluated for impairment | 20 | |||||
Ending balance, collectively evaluated for impairment | 1,076 | 1,135 | ||||
Ending balance | 80,623 | 78,162 | ||||
Ending balance; individually evaluated for impairment | 3,342 | 3,743 | ||||
Ending balance; collectively evaluated for impairment | 77,281 | 74,419 | ||||
Ending balance | $ 1,076 | $ 1,155 | $ 1,076 | $ 1,155 | $ 1,076 | $ 1,155 |
Note 3 - Loans and Allowance 24
Note 3 - Loans and Allowance for Loan Losses - Credit Risk Profile Based on Internal Rating Category (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Pass [Member] | Residential Portfolio Segment [Member] | ||
Loans receivable, gross | $ 41,877 | $ 39,842 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, gross | 27,852 | 26,178 |
Pass [Member] | Construction and Land Real Estate [Member] | ||
Loans receivable, gross | 7,076 | 7,022 |
Pass [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, gross | 447 | 1,354 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, gross | 789 | 294 |
Pass [Member] | ||
Loans receivable, gross | 78,041 | 74,690 |
Special Mention [Member] | Residential Portfolio Segment [Member] | ||
Loans receivable, gross | 527 | 686 |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, gross | 529 | |
Special Mention [Member] | Construction and Land Real Estate [Member] | ||
Loans receivable, gross | 8 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, gross | ||
Special Mention [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, gross | 16 | 27 |
Special Mention [Member] | ||
Loans receivable, gross | 543 | 1,250 |
Substandard [Member] | Residential Portfolio Segment [Member] | ||
Loans receivable, gross | 960 | 1,444 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, gross | 1,079 | 612 |
Substandard [Member] | Construction and Land Real Estate [Member] | ||
Loans receivable, gross | 166 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, gross | ||
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, gross | ||
Substandard [Member] | ||
Loans receivable, gross | 2,039 | 2,222 |
Doubtful [Member] | Residential Portfolio Segment [Member] | ||
Loans receivable, gross | ||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, gross | ||
Doubtful [Member] | Construction and Land Real Estate [Member] | ||
Loans receivable, gross | ||
Doubtful [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, gross | ||
Doubtful [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, gross | ||
Doubtful [Member] | ||
Loans receivable, gross | ||
Residential Portfolio Segment [Member] | ||
Loans receivable, gross | 43,364 | 41,972 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, gross | 28,931 | 27,319 |
Construction and Land Real Estate [Member] | ||
Loans receivable, gross | 7,076 | 7,196 |
Commercial Portfolio Segment [Member] | ||
Loans receivable, gross | 447 | 1,354 |
Consumer Portfolio Segment [Member] | ||
Loans receivable, gross | 805 | 321 |
Loans receivable, gross | $ 80,623 | $ 78,162 |
Note 3 - Loans and Allowance 25
Note 3 - Loans and Allowance for Loan Losses - Aging Analysis of the Recorded Investment in Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | $ 418 | $ 455 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 51 | 100 |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 263 | 598 |
Residential Portfolio Segment [Member] | ||
Loans past due | 732 | 1,153 |
Current | 42,632 | 40,819 |
Loans receivable, gross | 43,364 | 41,972 |
90 days past due and still accruing | ||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | ||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 7 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 4 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans past due | 4 | 7 |
Current | 28,927 | 27,312 |
Loans receivable, gross | 28,931 | 27,319 |
90 days past due and still accruing | ||
Construction and Land Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | ||
Construction and Land Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | ||
Construction and Land Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 166 | |
Construction and Land Real Estate [Member] | ||
Loans past due | 166 | |
Current | 7,076 | 7,030 |
Loans receivable, gross | 7,076 | 7,196 |
90 days past due and still accruing | ||
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | ||
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | ||
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | ||
Commercial Portfolio Segment [Member] | ||
Loans past due | ||
Current | 447 | 1,354 |
Loans receivable, gross | 447 | 1,354 |
90 days past due and still accruing | ||
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | ||
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | ||
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | ||
Consumer Portfolio Segment [Member] | ||
Loans past due | ||
Current | 805 | 321 |
Loans receivable, gross | 805 | 321 |
90 days past due and still accruing | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 418 | 455 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 51 | 107 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 267 | 764 |
Loans past due | 736 | 1,326 |
Current | 79,887 | 76,836 |
Loans receivable, gross | 80,623 | 78,162 |
90 days past due and still accruing |
Note 3 - Loans and Allowance 26
Note 3 - Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Residential Portfolio Segment [Member] | |||||
Recorded balance, with no valuation allowance | $ 1,575 | $ 1,575 | $ 1,607 | ||
Unpaid principal balance, with no valuation allowance | 1,711 | 1,711 | 1,647 | ||
Average balance of Impaired loans, with no valuation allowance | 1,655 | $ 1,600 | 1,631 | $ 1,489 | |
Interest income recognized, with no valuation allowance | 11 | 23 | 39 | 54 | |
Recorded balance, with a valuation allowance | 156 | ||||
Unpaid principal balance, with a valuation allowance | 166 | ||||
Specific allowance | 20 | ||||
Average balance of Impaired loans, with a valuation allowance | 89 | 62 | |||
Interest income recognized, with a valuation allowance | 8 | ||||
Commercial Real Estate Portfolio Segment [Member] | |||||
Recorded balance, with no valuation allowance | 235 | 235 | 229 | ||
Unpaid principal balance, with no valuation allowance | 240 | 240 | 229 | ||
Average balance of Impaired loans, with no valuation allowance | 237 | 247 | 236 | 241 | |
Interest income recognized, with no valuation allowance | 2 | 5 | 10 | 12 | |
Recorded balance, with a valuation allowance | |||||
Unpaid principal balance, with a valuation allowance | |||||
Specific allowance | |||||
Average balance of Impaired loans, with a valuation allowance | |||||
Interest income recognized, with a valuation allowance | |||||
Construction and Land Real Estate [Member] | |||||
Recorded balance, with no valuation allowance | 1,532 | 1,532 | 1,751 | ||
Unpaid principal balance, with no valuation allowance | 1,547 | 1,547 | 1,751 | ||
Average balance of Impaired loans, with no valuation allowance | 1,539 | 1,817 | 1,639 | 1,833 | |
Interest income recognized, with no valuation allowance | 22 | 23 | 64 | 66 | |
Recorded balance, with a valuation allowance | |||||
Unpaid principal balance, with a valuation allowance | |||||
Specific allowance | |||||
Average balance of Impaired loans, with a valuation allowance | |||||
Interest income recognized, with a valuation allowance | |||||
Commercial Portfolio Segment [Member] | |||||
Recorded balance, with no valuation allowance | |||||
Unpaid principal balance, with no valuation allowance | |||||
Average balance of Impaired loans, with no valuation allowance | |||||
Interest income recognized, with no valuation allowance | |||||
Recorded balance, with a valuation allowance | |||||
Unpaid principal balance, with a valuation allowance | |||||
Specific allowance | |||||
Average balance of Impaired loans, with a valuation allowance | |||||
Interest income recognized, with a valuation allowance | |||||
Consumer Portfolio Segment [Member] | |||||
Recorded balance, with no valuation allowance | |||||
Unpaid principal balance, with no valuation allowance | |||||
Average balance of Impaired loans, with no valuation allowance | |||||
Interest income recognized, with no valuation allowance | |||||
Recorded balance, with a valuation allowance | |||||
Unpaid principal balance, with a valuation allowance | |||||
Specific allowance | |||||
Average balance of Impaired loans, with a valuation allowance | |||||
Interest income recognized, with a valuation allowance | |||||
Specific allowance | 20 | ||||
Recorded balance | 3,342 | 3,342 | 3,743 | ||
Unpaid principal balance | 3,498 | 3,498 | $ 3,793 | ||
Average balance of Impaired loans | 3,431 | 3,753 | 3,506 | 3,625 | |
Interest income recognized | $ 35 | $ 51 | $ 121 | $ 132 |
Note 3 - Loans and Allowance 27
Note 3 - Loans and Allowance for Loan Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | ||
Nonaccrual loans | $ 885 | $ 987 |
Commercial Real Estate Portfolio Segment [Member] | ||
Nonaccrual loans | 4 | 7 |
Construction and Land Real Estate [Member] | ||
Nonaccrual loans | 166 | |
Commercial Portfolio Segment [Member] | ||
Nonaccrual loans | ||
Consumer Portfolio Segment [Member] | ||
Nonaccrual loans | ||
Nonaccrual loans | $ 889 | $ 1,160 |
Note 3 - Loans and Allowance 28
Note 3 - Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015USD ($) | Sep. 30, 2016 | Sep. 30, 2015USD ($) | Dec. 31, 2015 | |
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Modifications, Number of Contracts | 1 | 1 | |||
Pre-modification balance | $ 50 | $ 50 | |||
Post-modification balance | $ 50 | $ 50 | |||
Construction and Land Real Estate [Member] | |||||
Financing Receivable, Modifications, Number of Contracts | 2 | ||||
Pre-modification balance | $ 42 | ||||
Post-modification balance | $ 42 | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 3 | 0 |
Pre-modification balance | $ 92 | ||||
Post-modification balance | $ 92 |
Note 4 - Regulatory Matters (De
Note 4 - Regulatory Matters (Details Textual) | Jan. 01, 2019 | Sep. 30, 2016 |
Scenario, Forecast [Member] | ||
Capital Conservation Buffer | 2.50% | |
Capital Conservation Buffer | 0.00% |
Note 4 - Regulatory Matters - A
Note 4 - Regulatory Matters - Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Capital | $ 13,928 | $ 14,072 |
Capital to Risk Weighted Assets | 18.50% | 21.30% |
Capital Required for Capital Adequacy | $ 6,030 | $ 5,295 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 7,538 | $ 6,618 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier 1 Capital | $ 12,984 | $ 13,241 |
Tier 1 Capital to Risk Weighted Assets | 17.20% | 20.00% |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 4,523 | $ 3,971 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Tier 1 Risk Based Capital Required to be Well Capitalized | $ 6,030 | $ 5,295 |
Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Common Equity Tier I Capital | $ 12,984 | $ 13,241 |
Common Equity Tier I Capital to Risk Weighted Assets | 17.20% | 20.00% |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 3,392 | $ 2,978 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized | $ 4,900 | $ 4,302 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 Leverage Capital | $ 12,984 | $ 13,241 |
Tier 1 Leverage Capital to Average Assets | 12.70% | 13.90% |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 4,090 | $ 3,801 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 5,113 | $ 4,752 |
Tier I Leverage Capital Required to be Well Capitalized to Risk Weighted Assets | 5.00% | 5.00% |
Note 5 - Disclosures About Fa31
Note 5 - Disclosures About Fair Value of Assets and Liabilities - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Impaired Loans, Collateral-Dependent [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, fair value, non-recurring basis | ||
Impaired Loans, Collateral-Dependent [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value, non-recurring basis | ||
Impaired Loans, Collateral-Dependent [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, fair value, non-recurring basis | 256 | 136 |
Impaired Loans, Collateral-Dependent [Member] | ||
Assets, fair value, non-recurring basis | $ 256 | 136 |
Foreclosed Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, fair value, non-recurring basis | ||
Foreclosed Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value, non-recurring basis | ||
Foreclosed Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, fair value, non-recurring basis | 245 | |
Foreclosed Real Estate [Member] | ||
Assets, fair value, non-recurring basis | $ 245 |
Note 5 - Disclosures About Fa32
Note 5 - Disclosures About Fair Value of Assets and Liabilities - Quantitative Information About Unobservable Inputs (Details) - Market Approach Valuation Technique [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Impaired Loans, Collateral-Dependent [Member] | Minimum [Member] | ||
Marketability discount | 17.00% | 10.00% |
Impaired Loans, Collateral-Dependent [Member] | Maximum [Member] | ||
Marketability discount | 24.00% | 15.00% |
Impaired Loans, Collateral-Dependent [Member] | ||
Fair value | $ 256 | $ 136 |
Valuation technique | Marketable comparable properties | Marketable comparable properties |
Unobservable input | Marketability discount | Marketability discount |
Foreclosed Real Estate [Member] | ||
Fair value | $ 245 | |
Valuation technique | Marketable comparable properties | |
Unobservable input | Comparability adjustments | |
Comparability adjustments | 9.00% |
Note 5 - Disclosures About Fa33
Note 5 - Disclosures About Fair Value of Assets and Liabilities - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and due from banks, fair value | $ 1,495 | $ 7,132 |
Interest-earning demand deposits, fair value | 1,772 | 1,678 |
Federal funds sold, fair value | 8,089 | |
Interest-earning time deposits in banks, fair value | ||
Loans, net | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable, fair value | ||
Mortgage servicing rights, fair value | ||
Financial liabilities | ||
Deposits, fair value | 45,283 | 39,353 |
Advances from the Federal Home Loan Bank, fair value | ||
Accrued interest payable, fair value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Cash and due from banks, fair value | ||
Interest-earning demand deposits, fair value | ||
Federal funds sold, fair value | ||
Interest-earning time deposits in banks, fair value | 992 | 992 |
Loans, net | ||
Federal Home Loan Bank stock | 468 | 468 |
Accrued interest receivable, fair value | 209 | 217 |
Mortgage servicing rights, fair value | ||
Financial liabilities | ||
Deposits, fair value | 33,340 | 33,355 |
Advances from the Federal Home Loan Bank, fair value | 6,927 | 7,023 |
Accrued interest payable, fair value | 6 | 11 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets | ||
Cash and due from banks, fair value | ||
Interest-earning demand deposits, fair value | ||
Federal funds sold, fair value | ||
Interest-earning time deposits in banks, fair value | ||
Loans, net | 79,992 | 77,086 |
Federal Home Loan Bank stock | ||
Accrued interest receivable, fair value | ||
Mortgage servicing rights, fair value | 439 | 317 |
Financial liabilities | ||
Deposits, fair value | ||
Advances from the Federal Home Loan Bank, fair value | ||
Accrued interest payable, fair value | ||
Cash and due from banks | 1,495 | 7,132 |
Cash and due from banks, fair value | 1,495 | 7,132 |
Interest-earning demand deposits | 1,772 | 1,678 |
Interest-earning demand deposits, fair value | 1,772 | 1,678 |
Federal funds sold | 8,089 | |
Federal funds sold, fair value | 8,089 | |
Interest-earning time deposits in banks | 992 | 992 |
Interest-earning time deposits in banks, fair value | 992 | 992 |
Loans, net | 79,477 | 76,575 |
Loans, net | 79,992 | 77,086 |
Federal Home Loan Bank stock | 468 | 468 |
Accrued interest receivable | 209 | 217 |
Accrued interest receivable, fair value | 209 | 217 |
Mortgage servicing rights | 439 | 317 |
Mortgage servicing rights, fair value | 439 | 317 |
Deposits | 78,081 | 72,266 |
Deposits, fair value | 78,623 | 72,708 |
Advances from the Federal Home Loan Bank | 6,927 | 6,927 |
Advances from the Federal Home Loan Bank, fair value | 6,927 | 7,023 |
Accrued interest payable | 6 | 11 |
Accrued interest payable, fair value | $ 6 | $ 11 |
Note 7 - Loss Per Share (Detail
Note 7 - Loss Per Share (Details Textual) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Oct. 19, 2015 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | |||||
Earnings Per Share, Basic and Diluted | $ (0.29) | $ (0.71) | ||||
Common Stock, Shares, Issued | 696,600 | 696,600 | 696,600 | 696,600 | ||
Shares Held in Employee Stock Option Plan, Committed-to-be-Released | 52,353 | 52,353 |
Note 8 - Employee Stock Owner35
Note 8 - Employee Stock Ownership Plan (Details Textual) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ | $ 7,000 | $ 20,000 |
Share Price at Formation Date | $ / shares | $ 10 | $ 10 |
Shares Held in Employee Stock Option Plan, Committed-to-be-Released | shares | 52,353 | 52,353 |
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value | $ | $ 707,000 | $ 707,000 |
Share Price | $ / shares | $ 13.50 | $ 13.50 |
Note 9 - Change in Corporate 36
Note 9 - Change in Corporate Form (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Oct. 19, 2015 |
Sale of Stock, Price Per Share | $ 10 | ||
Common Stock, Subscriptions, Percentage | 8.00% | ||
Common Stock, Shares, Issued | 696,600 | 696,600 | 696,600 |
Costs of Conversion and to Issue Stock | $ 1.2 |