Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 13, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | New Bancorp, Inc. | |
Entity Central Index Key | 1,644,482 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 696,600 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 704 | $ 5,165 |
Interest-earning demand deposits | 6,839 | 2,816 |
Cash and cash equivalents | 7,543 | 7,981 |
Interest-earning time deposits in banks | 992 | 992 |
Loans held for sale | 272 | 581 |
Loans, net of allowance for loan losses of $1,155 and $1,147 at September 30, 2015 and December 31, 2014, respectively | 73,327 | 72,365 |
Premises and equipment | 2,055 | 2,162 |
Federal Home Loan Bank stock | 468 | 678 |
Foreclosed real estate held for sale, net | 308 | 248 |
Accrued interest receivable | 189 | 187 |
Bank owned life insurance | 5,205 | 5,081 |
Mortgage servicing rights | 318 | 269 |
Prepaid expenses and other assets | 704 | 162 |
Total assets | 91,381 | 90,706 |
Deposits | ||
Demand | 20,355 | 20,161 |
Savings and money market accounts | 18,537 | 21,070 |
Time | 32,400 | 26,637 |
Total deposits | 71,292 | 67,868 |
Federal funds purchased | 2,500 | |
Advances from the Federal Home Loan Bank | 6,927 | 6,927 |
Stock subscription proceeds in escrow | 2,378 | |
Accrued nonqualified benefit plans | 143 | 2,830 |
Other liabilities | 651 | 572 |
Total liabilities | $ 81,391 | $ 80,697 |
Commitments and Contingencies | ||
Equity | ||
Retained earnings | $ 9,990 | $ 10,009 |
Total liabilities and equity | $ 91,381 | $ 90,706 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||||||
Allowance for loan losses | $ 1,155 | $ 1,155 | $ 1,147 | $ 1,047 | $ 1,047 | $ 1,273 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Income | ||||
Loans | $ 790 | $ 730 | $ 2,372 | $ 2,118 |
Investment securities | 2 | 7 | ||
Interest-bearing deposits | 10 | 13 | 31 | 42 |
Total interest income | 800 | 745 | 2,403 | 2,167 |
Interest Expense | ||||
Deposits | 157 | 137 | 444 | 423 |
Borrowings | 33 | 18 | 102 | 32 |
Total interest expense | 190 | 155 | 546 | 455 |
Net Interest Income | 610 | 590 | 1,857 | 1,712 |
Provision (Credit) for Loan Losses | (200) | |||
Net Interest Income After Provision (Credit) for Loan Losses | 610 | 590 | 1,857 | 1,912 |
Noninterest Income | ||||
Service charges and fees | 76 | 71 | 231 | 215 |
Gain on sale of loans | 62 | 3 | 341 | 25 |
Loss on sale of foreclosed real estate, net | (1) | (96) | (1) | (110) |
Income from bank owned life insurance | 42 | 41 | 124 | 121 |
Loan servicing fees, net | 13 | 5 | 17 | 34 |
Other operating | 6 | 2 | 16 | 21 |
Total noninterest income | 198 | 26 | 728 | 306 |
Noninterest Expense | ||||
Salaries and employee benefits | 467 | 520 | 1,366 | 1,537 |
Occupancy and equipment | 94 | 111 | 335 | 332 |
Data processing fees | 107 | 105 | 300 | 295 |
Insurance premiums | 32 | 8 | 94 | 95 |
Professional services | 24 | 165 | 124 | 326 |
Impairment losses and expenses of foreclosed real estate | 113 | 79 | 133 | 203 |
Other | 91 | 83 | 252 | 257 |
Total noninterest expense | 928 | 1,071 | 2,604 | 3,045 |
Loss Before Federal Income Taxes (Credits) | (120) | (455) | (19) | (827) |
Net Loss | $ (120) | $ (455) | $ (19) | $ (827) |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (120) | $ (455) | $ (19) | $ (827) |
Other comprehensive income: | ||||
Unrealized holding gains on securities during the period | 13 | |||
Comprehensive loss | $ (120) | $ (455) | $ (19) | $ (814) |
Condensed Statements of Changes
Condensed Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2013 | $ 12,412 | $ 12,444 | $ (32) |
Net loss | (827) | (827) | |
Other comprehensive income | 13 | 13 | |
Ending Balance at Sep. 30, 2014 | 11,598 | 11,617 | $ (19) |
Beginning Balance at Dec. 31, 2014 | 10,009 | 10,009 | |
Net loss | (19) | (19) | |
Ending Balance at Sep. 30, 2015 | $ 9,990 | $ 9,990 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net loss | $ (19) | $ (827) |
Items not requiring (providing) cash | ||
Depreciation and amortization | 187 | 163 |
Amortization of deferred loan origination fees and costs, net | 4 | (6) |
Provision (Credit) for Loan Losses | (200) | |
Gain on sale of loans | (341) | (25) |
Proceeds from sales of loans originated for sale | 8,318 | 933 |
Loans originated for sale | (7,852) | (915) |
Loss on sale of foreclosed real estate | 1 | 110 |
Impairment loss on foreclosed real estate | 111 | 105 |
Changes in | ||
Accrued interest receivable | (2) | (12) |
Prepaid expenses and other assets | (542) | 7 |
Cash surrender value of life insurance | (124) | (121) |
Other liabilities | (2,608) | (2,573) |
Net cash used in operating activities | (2,867) | (3,361) |
Investing Activities | ||
Net change in interest-earning time deposit in banks | 248 | |
Principal repayments from mortgage-backed securities available-for-sale | 47 | |
Proceeds from sales of loans | 2,135 | |
Net change in loans | (3,360) | (6,307) |
Purchase of premises and equipment | (24) | (138) |
Proceeds from redemption of FHLB stock | 210 | |
Proceeds from sale of foreclosed assets | 166 | 642 |
Net cash used in investing activities | (873) | (5,508) |
Financing Activities | ||
Net increase (decrease) in deposits | 3,424 | (3,067) |
Net change in federal funds purchased | (2,500) | |
Repayment of Federal Home Loan Bank advances | (1,000) | |
Proceeds from stock subscriptions held in escrow | 2,378 | |
Net cash provided by (used in) financing activities | 3,302 | (4,067) |
Decrease in Cash and Cash Equivalents | (438) | (12,936) |
Cash and Cash Equivalents, Beginning of Period | 7,981 | 25,353 |
Cash and Cash Equivalents, End of Period | 7,543 | 12,417 |
Cash paid during the period for: | ||
Interest on deposits and borrowings | 553 | 459 |
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 | $ 338 | $ 82 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation The accompanying condensed balance sheet of New Buffalo Savings Bank (the Bank) as of December 31, 2014, which has been derived from audited financial statements, and the unaudited condensed financial statements of the Bank as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014, 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 financial statements should be read in conjunction with the financial statements and notes thereto of the Bank for the year ended December 31, 2014 included in the Registrant’s Form S-1. Reference is made to the accounting policies of the Bank described in the Notes to the Financial Statements contained in the Form S-1. 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, 2015 and the results of operations for the three and nine months ended September 30, 2015 and 2014, and cash flows for the nine months ended September 30, 2015 and 2014. All interim amounts have not been audited and the results of operations for the three and nine months ended September 30, 2015 herein, are not necessarily indicative of the results of operations to be expected for the entire year. 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. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 2: Securities The Bank had no investment securities at September 30, 2015 and December 31, 2014. The Bank had no sales of investment securities during the three and nine month periods ended September 30, 2015 and 2014. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 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 uncollectibility 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 collectibility 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 the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. Classes of loans at September 30, 2015 and December 31, 2014 include: September 30, December 31, 2015 2014 (Unaudited) (In thousands) Real estate loans Residential $ 40,337 $ 37,481 Commercial 26,356 26,633 Construction and land 6,597 7,854 Commercial business 1,077 1,625 Consumer and other 387 392 Total loans 74,754 73,985 Less: Net deferred loan fees, premiums and discounts (4 ) 2 Undisbursed loans in process (268 ) (475 ) Allowance for loan losses (1,155 ) (1,147 ) Net loans $ 73,327 $ 72,365 The risk characteristics applicable to each segment of the loan portfolio are described below: Residential Real Estate: The residential real estate loans are generally secured by owner-occupied 1-4 family residences. The Bank’s portfolio of home equity loans totaled $3.7 million and $3.4 million at September 30, 2015 and December 31, 2014, respectively, the preponderance of which were secured by first liens, or by second liens on properties where the Bank also holds the first lien. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Bank’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate: Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Bank’s market area. Construction and Land: Construction and land loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Bank until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Bank’s market area. Commercial Business: The commercial business loan portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. Consumer: The consumer loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Bank’s market area) and the creditworthiness of a borrower. The following tables present by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 and the recorded investment in loans and impairment method as of September 30, 2015 and December 31, 2014: 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 Allowance for loan losses: Ending balance, individually evaluated for impairment $ 18 $ — $ — $ — $ — $ 18 Ending balance, collectively evaluated for impairment $ 621 $ 390 $ 105 $ 17 $ 4 $ 1,137 Loans: Ending balance $ 40,337 $ 26,356 $ 6,597 $ 1,077 $ 387 $ 74,754 Ending balance; individually evaluated for impairment $ 1,865 $ 244 $ 1,809 $ — $ — $ 3,918 Ending balance; collectively evaluated for impairment $ 38,472 $ 26,112 $ 4,788 $ 1,077 $ 387 $ 70,836 September 30, 2014 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Three months ended September 30, 2014 Allowance for loan losses: Balance, July 1, 2014 $ 569 $ 333 $ 111 $ 30 $ 4 $ 1,047 Provision (credit) for loan losses 30 (23 ) (6 ) (1 ) — — Charge-offs — — — — — — Recoveries — — — — — — Balance, September 30, 2014 $ 599 $ 310 $ 105 $ 29 $ 4 $ 1,047 Nine months ended September 30, 2014 Allowance for loan losses: Balance, January 1, 2014 $ 596 $ 513 $ 127 $ 34 $ 3 $ 1,273 Provision (credit) for loan losses 29 (203 ) (22 ) (5 ) 1 (200 ) Charge-offs (26 ) — — — — (26 ) Recoveries — — — — — — Balance, September 30, 2014 $ 599 $ 310 $ 105 $ 29 $ 4 $ 1,047 December 31, 2014 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance $ 575 $ 418 $ 126 $ 23 $ 5 $ 1,147 Ending balance, individually evaluated for impairment $ 26 $ — $ — $ — $ — $ 26 Ending balance, collectively evaluated for impairment $ 549 $ 418 $ 126 $ 23 $ 5 $ 1,121 Loans: Ending balance $ 37,481 $ 26,633 $ 7,854 $ 1,625 $ 392 $ 73,985 Ending balance; individually evaluated for impairment $ 2,183 $ 214 $ 1,856 $ — $ — $ 4,253 Ending balance; collectively evaluated for impairment $ 35,298 $ 26,419 $ 5,998 $ 1,625 $ 392 $ 69,732 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: Loans categorized as Pass are higher quality loans that do not fit any of the other categories described below. Special Mention: The loans identified as special mention have an obvious flaw or a potential weakness that deserves special management attention, but which has not yet impacted collectability. These flaws or weaknesses, if left uncorrected, may result in the deterioration of the prospects of repayment or the deterioration of the Bank’s credit position. Substandard: These are loans with a well-defined weakness, where the Bank has a serious concern about the borrower’s ability to make full repayment if the weaknesses are not corrected. The loan may contain a flaw, which could impact the borrower’s ability to repay, or the borrower’s continuance as a “going concern”. When collateral values are not sufficient to secure the loan and other weaknesses are present, the loan may be rated substandard. A loan will also be graded substandard when full repayment is expected, but it must come from the liquidation of collateral. All loans that are past due 90 days or more are classified as substandard. Doubtful: These are loans with major defined weaknesses, where future charge-off of a part of the credit is highly likely. The primary repayment source is no longer viable and the viability of the secondary source of repayment is in doubt. The amount of loss is uncertain due to circumstances within the credit that are not yet fully developed and the loan is rated “Doubtful” until the loss can be accurately estimated. Loss: These are loans that represent near term charge-offs. Loans classified as loss are considered uncollectible and of such little value that it is not desirable to continue carrying them as assets on the Bank’s financial statements, even though partial recovery may be possible at some future time. The following tables present the credit risk profile of the Bank’s loan portfolio based on internal rating category and payment activity as of September 30, 2015 and December 31, 2014: September 30, 2015 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 38,735 $ 24,542 $ 6,421 $ 1,077 $ 387 $ 71,162 Special mention — 544 10 — — 554 Substandard 1,602 1,270 166 — — 3,038 Doubtful — — — — — — Total $ 40,337 $ 26,356 $ 6,597 $ 1,077 $ 387 $ 74,754 December 31, 2014 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 35,820 $ 24,777 $ 7,669 $ 1,625 $ 392 $ 70,283 Special mention — 514 19 — — 533 Substandard 1,096 1,342 — — — 2,438 Doubtful 565 — 166 — — 731 Total $ 37,481 $ 26,633 $ 7,854 $ 1,625 $ 392 $ 73,985 The Bank 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 Bank’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2015 and December 31, 2014: September 30, 2015 (Unaudited) Total Loans > 30-59 Days 60-89 Days Greater Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 377 $ 89 $ 566 $ 1,032 $ 39,305 $ 40,337 $ — Commercial — — — — 26,356 26,356 — Construction and land — — 166 166 6,431 6,597 — Commercial business — — — — 1,077 1,077 — Consumer — — — — 387 387 — Total $ 377 $ 89 $ 732 $ 1,198 $ 73,556 $ 74,754 $ — December 31, 2014 Total Loans > 30-59 Days 60-89 Days Greater Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 298 $ 109 $ 565 $ 972 $ 36,509 $ 37,481 $ — Commercial — — — — 26,633 26,633 — Construction and land — — 166 166 7,688 7,854 — Commercial business — — — — 1,625 1,625 — Consumer 22 — — 22 370 392 — Total $ 320 $ 109 $ 731 $ 1,160 $ 72,825 $ 73,985 $ — 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, 2015 and for the three month periods ended September 30, 2015 and 2014: As of For the Three Months Ended September 30, 2015 September 30, 2015 September 30, 2014 Average Average Unpaid Balance of Interest Balance of Interest Recorded Principal Specific Impaired Income Impaired Income Balance Balance Allowance Loans Recognized Loans Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,714 $ 1,750 $ — $ 1,600 $ 23 $ 1,488 $ 15 Commercial 244 244 — 247 4 219 4 Construction and land 1,809 1,809 — 1,817 23 1,856 27 Commercial business — — — — — — — Consumer — — — — — — — Loans with a specific valuation allowance: Real estate Residential 151 162 18 89 — 248 — Commercial — — — — — — — Construction and land — — — — — — — Commercial business — — — — — — — Consumer — — — — — — — Totals $ 3,918 $ 3,965 $ 18 $ 3,753 $ 50 $ 3,811 $ 46 The following table presents impaired loan information for the nine month periods ended September 30, 2015 and 2014: For the Nine Months Ended September 30, 2015 September 30, 2014 Average Average Balance of Interest Balance of Interest Impaired Income Impaired Income Loans Recognized Loans Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,489 $ 54 $ 2,188 $ 57 Commercial 241 12 241 11 Construction and land 1,833 66 1,755 73 Commercial business — — — — Consumer — — — — Loans with a specific valuation allowance: Real estate Residential 62 — 253 — Commercial — — — — Construction and land — — — — Commercial business — — — — Consumer — — — — Totals $ 3,625 $ 132 $ 4,437 $ 141 The following table presents impaired loans as of December 31, 2014: As of December 31, 2014 Unpaid Recorded Principal Specific Balance Balance Allowance (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,617 $ 1,630 $ — Commercial 214 214 — Construction and land 1,856 1,856 — Commercial business — — — Consumer — — — Loans with a specific valuation allowance: Real estate Residential 566 584 26 Commercial — — — Construction and land — — — Commercial business — — — Consumer — — — Totals $ 4,253 $ 4,284 $ 26 The following table presents the Bank’s nonaccrual loans at September 30, 2015 and December 31, 2014. The table excludes performing troubled debt restructurings. September 30, December 31, 2015 2014 (Unaudited) (In thousands) Real estate loans Residential $ 1,084 $ 1,033 Commercial 7 11 Construction and land 166 166 Commercial business — — Consumer and other — — Total nonaccrual $ 1,257 $ 1,210 At September 30, 2015 (unaudited) and December 31, 2014, the Bank had certain loans that were modified in troubled debt restructurings 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. The following tables present information regarding troubled debt restructurings by class for the three and nine months ended September 30, 2015 and 2014. Newly classified troubled debt restructurings are as follows: Pre- Post- Number of Modification Modification For the nine months ended: Contracts Balance Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 Commercial 2 42 42 3 $ 92 $ 92 September 30, 2014 (Unaudited) Real estate Residential 2 $ 116 $ 116 Construction and land 2 319 319 4 $ 435 $ 435 Pre- Post- Number of Modification Modification For the three months ended: Contracts Balance Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 September 30, 2014 (Unaudited) Real estate Residential 2 $ 116 $ 116 Construction and land 1 23 23 3 $ 139 $ 139 Newly restructured loans by type of modification are as follows for the three and nine months ended September 30, 2015 and 2014. Total For the nine months ended: Interest Only Term Combination Modification September 30, 2015 (Unaudited) (In thousands) Real estate Residential $ — $ 50 $ — $ 50 Commercial — 42 — 42 $ — $ 92 $ — $ 92 September 30, 2014 (Unaudited) Real estate Residential $ — $ — $ 116 $ 116 Construction and land — 296 23 319 $ — $ 296 $ 139 $ 435 Total For the three months ended: Interest Only Term Combination Modification September 30, 2015 (Unaudited) (In thousands) Real estate Residential $ — $ 50 $ — $ 50 September 30, 2014 (Unaudited) — — — — Real estate Residential $ — $ — $ 116 $ 116 Construction and land — — 23 23 $ — $ — $ 139 $ 139 The troubled debt restructurings 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 and 2014. The Bank had no troubled debt restructurings modified in the twelve months ended September 30, 2015 and 2014 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. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2015 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | 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. Quantitative measures established by regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios (set forth in the table below), for periods through December 31, 2014, of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to total assets (as defined). At September 30, 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. Management believes, as of September 30, 2015 (unaudited) and December 31, 2014, that the Bank meets all capital adequacy requirements to which it is subject. As of September 30, 2015 (unaudited) and December 31, 2014, 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: To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of September 30, 2015 Total Capital (to Risk-Weighted Assets) $ 10,810 16.5 % $ 5,226 8.0 % $ 6,533 10.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 9,990 15.3 % $ 3,920 6.0 % $ 5,226 8.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 9,990 15.3 % $ 2,940 4.5 % $ 4,246 6.5 % Tier I Leverage Capital (to Average Total Assets) $ 9,990 10.6 % $ 3,766 4.0 % $ 4,707 5.0 % As of December 31, 2014 Total Capital (to Risk-Weighted Assets) $ 10,817 16.3 % $ 5,316 8.0 % $ 6,645 10.0 % Tier I Capital (to Risk-Weighted Assets) $ 9,982 15.0 % $ 2,658 4.0 % $ 3,987 6.0 % Tier I Capital (to Total Assets) $ 9,982 11.0 % $ 3,627 4.0 % $ 5,441 6.0 % |
Disclosures about Fair Value of
Disclosures about Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Assets and Liabilities | 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 Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. 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, 2015 and December 31, 2014: 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, 2015 (Unaudited) Impaired loans, collateral dependent $ 83 $ — $ — $ 83 Foreclosed assets held for sale 308 — — 308 December 31, 2014 Impaired loans, collateral dependent $ 540 $ — $ — $ 540 Foreclosed assets held for sale 76 — — 76 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. 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, 2015 (unaudited) Impaired loans (collateral dependent) $ 83 Marketable comparable properties Marketability discount 18% Foreclosed real estate 308 Marketable comparable properties Comparability adjustments 9% December 31, 2014 Impaired loans (collateral dependent) $ 540 Marketable comparable properties Marketability discount 10%-15% Foreclosed real estate 76 Marketable comparable properties Comparability adjustments 10% Fair Value of Financial Instruments The following table presents the estimated fair values of the Bank’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, 2015 and December 31, 2014. 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, 2015 (Unaudited) Financial assets Cash and due from banks $ 704 $ 704 $ 704 $ — $ — Interest-earning demand deposits 6,839 6,839 6,839 — — Interest-earning time deposits in banks 992 992 — 992 — Loans held for sale 272 272 — 272 — Loans, net 73,327 73,774 — — 73,774 Federal Home Loan Bank stock 468 468 — 468 — Accrued interest receivable 189 189 — 189 — Mortgage servicing rights 318 318 — — 318 Financial liabilities Deposits 71,292 72,028 38,892 33,136 — Advances from the Federal Home Loan Bank 6,927 7,134 — 7,134 — Stock subscription proceeds in escrow 2,378 2,378 2,378 — — Accrued interest payable 2 2 — 2 — December 31, 2014 Financial assets Cash and due from banks $ 5,165 $ 5,165 $ 5,165 $ — $ — Interest-earning demand deposits 2,816 2,816 2,816 — — Interest-earning time deposits in banks 992 992 — 992 — Loans held for sale 581 592 — 592 — Loans, net 72,365 72,959 — — 72,959 Federal Home Loan Bank stock 678 678 — 678 — Accrued interest receivable 187 187 — 187 — Mortgage servicing rights 269 269 — — 269 Financial liabilities Deposits 67,868 68,507 41,231 27,276 — Federal funds purchased 2,500 2,500 2,500 — — Advances from the Federal Home Loan Bank 6,927 7,049 — 7,049 — Accrued interest payable 9 9 — 9 — 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 and Interest-earning Demand Deposits The carrying amount approximates fair value. Interest-earning Time Deposits in Banks The carrying amount approximates fair value. Loans Held For Sale Fair value is based on prices quoted by the U.S. government sponsored agencies generally used by the Bank in sales transactions. 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. Federal Funds Purchased The carrying amount approximates fair value. 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. Stock Subscription Proceeds in Escrow The carrying amounts of stock subscription proceeds in escrow approximate fair value resulting in a Level 1 classification. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 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. Financial Accounting Standards Board (FASB) ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. The Company will adopt this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results or operations. FASB ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is prohibited. With the issuance of ASU 2015-14 on July 9, 2015, FASB approved the deferral of the effective date of ASU 2014-09 for one year giving companies the option to early adopt using the original effective dates. Management is currently in the process of evaluating the impact of the amended guidance on the Bank’s financial statements. |
Plan of Conversion and Change i
Plan of Conversion and Change in Corporate Form | 9 Months Ended |
Sep. 30, 2015 | |
Plan Of Conversion And Change In Corporate Form [Abstract] | |
Plan of Conversion and Change in Corporate Form | Note 7: Plan of Conversion and Change in Corporate Form On May 28, 2015, the Bank’s Board of Directors adopted a Plan of Conversion (the “Plan”) to convert from a federal mutual savings bank to a federal stock savings bank (the “Conversion”). A new Maryland-chartered corporation, New Bancorp, Inc. (the “Company”), was formed in June 2015, which, upon consummation of the Conversion and offering, became the savings and loan holding company of the Bank. The Plan was subject to approval of the members of the Bank, which approval was received at a Special Meeting of Members on September 15, 2015. Additionally, the Plan was subject to the final approval of the Office of the Comptroller of the Currency (“OCC”) and the formation of the Company as the holding company of the Bank, upon consummation of the Conversion, is subject to the approval of the Board of Governors of the Federal Reserve System (“FRB”). As part of the Conversion and offering, the Company filed a registration statement with the U.S. Securities and Exchange Commission. Upon receipt of the final approval of the OCC and the FRB and the consummation of the Conversion and offering, the Bank became the wholly owned subsidiary of the Company, and the Company issued and sold shares of its capital stock to eligible depositors and borrowers of the Bank and the public pursuant to an independent valuation appraisal of the Bank and the Company on a converted basis that has been conducted by an independent appraisal firm that is experienced in appraising financial institutions in connection with mutual to stock conversions. 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 was deferred and deducted from the proceeds of the offering. Through September 30, 2015, the Bank had incurred approximately $579,000 in conversion costs, which are included in prepaid expenses and other assets on the condensed balance sheet. 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | 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. |
Recent Accounting Pronouncements | 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. Financial Accounting Standards Board (FASB) ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. The Company will adopt this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results or operations. FASB ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is prohibited. With the issuance of ASU 2015-14 on July 9, 2015, FASB approved the deferral of the effective date of ASU 2014-09 for one year giving companies the option to early adopt using the original effective dates. Management is currently in the process of evaluating the impact of the amended guidance on the Bank’s financial statements. |
Loans and Allowance for Loan 16
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Classes of Loans | Classes of loans at September 30, 2015 and December 31, 2014 include: September 30, December 31, 2015 2014 (Unaudited) (In thousands) Real estate loans Residential $ 40,337 $ 37,481 Commercial 26,356 26,633 Construction and land 6,597 7,854 Commercial business 1,077 1,625 Consumer and other 387 392 Total loans 74,754 73,985 Less: Net deferred loan fees, premiums and discounts (4 ) 2 Undisbursed loans in process (268 ) (475 ) Allowance for loan losses (1,155 ) (1,147 ) Net loans $ 73,327 $ 72,365 |
Activity in Allowance for Loan Losses and Recorded Investment and Impairment Method | The following tables present by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 and the recorded investment in loans and impairment method as of September 30, 2015 and December 31, 2014: 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 Allowance for loan losses: Ending balance, individually evaluated for impairment $ 18 $ — $ — $ — $ — $ 18 Ending balance, collectively evaluated for impairment $ 621 $ 390 $ 105 $ 17 $ 4 $ 1,137 Loans: Ending balance $ 40,337 $ 26,356 $ 6,597 $ 1,077 $ 387 $ 74,754 Ending balance; individually evaluated for impairment $ 1,865 $ 244 $ 1,809 $ — $ — $ 3,918 Ending balance; collectively evaluated for impairment $ 38,472 $ 26,112 $ 4,788 $ 1,077 $ 387 $ 70,836 September 30, 2014 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Three months ended September 30, 2014 Allowance for loan losses: Balance, July 1, 2014 $ 569 $ 333 $ 111 $ 30 $ 4 $ 1,047 Provision (credit) for loan losses 30 (23 ) (6 ) (1 ) — — Charge-offs — — — — — — Recoveries — — — — — — Balance, September 30, 2014 $ 599 $ 310 $ 105 $ 29 $ 4 $ 1,047 Nine months ended September 30, 2014 Allowance for loan losses: Balance, January 1, 2014 $ 596 $ 513 $ 127 $ 34 $ 3 $ 1,273 Provision (credit) for loan losses 29 (203 ) (22 ) (5 ) 1 (200 ) Charge-offs (26 ) — — — — (26 ) Recoveries — — — — — — Balance, September 30, 2014 $ 599 $ 310 $ 105 $ 29 $ 4 $ 1,047 December 31, 2014 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance $ 575 $ 418 $ 126 $ 23 $ 5 $ 1,147 Ending balance, individually evaluated for impairment $ 26 $ — $ — $ — $ — $ 26 Ending balance, collectively evaluated for impairment $ 549 $ 418 $ 126 $ 23 $ 5 $ 1,121 Loans: Ending balance $ 37,481 $ 26,633 $ 7,854 $ 1,625 $ 392 $ 73,985 Ending balance; individually evaluated for impairment $ 2,183 $ 214 $ 1,856 $ — $ — $ 4,253 Ending balance; collectively evaluated for impairment $ 35,298 $ 26,419 $ 5,998 $ 1,625 $ 392 $ 69,732 |
Credit Risk Profile of Bank's Loan Portfolio Based on Internal Rating Category and Payment Activity | The following tables present the credit risk profile of the Bank’s loan portfolio based on internal rating category and payment activity as of September 30, 2015 and December 31, 2014: September 30, 2015 (Unaudited) Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 38,735 $ 24,542 $ 6,421 $ 1,077 $ 387 $ 71,162 Special mention — 544 10 — — 554 Substandard 1,602 1,270 166 — — 3,038 Doubtful — — — — — — Total $ 40,337 $ 26,356 $ 6,597 $ 1,077 $ 387 $ 74,754 December 31, 2014 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 35,820 $ 24,777 $ 7,669 $ 1,625 $ 392 $ 70,283 Special mention — 514 19 — — 533 Substandard 1,096 1,342 — — — 2,438 Doubtful 565 — 166 — — 731 Total $ 37,481 $ 26,633 $ 7,854 $ 1,625 $ 392 $ 73,985 |
Bank's Loan Portfolio Aging Analysis of Recorded Investment in Loans | The following tables present the Bank’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2015 and December 31, 2014: September 30, 2015 (Unaudited) Total Loans > 30-59 Days 60-89 Days Greater Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 377 $ 89 $ 566 $ 1,032 $ 39,305 $ 40,337 $ — Commercial — — — — 26,356 26,356 — Construction and land — — 166 166 6,431 6,597 — Commercial business — — — — 1,077 1,077 — Consumer — — — — 387 387 — Total $ 377 $ 89 $ 732 $ 1,198 $ 73,556 $ 74,754 $ — December 31, 2014 Total Loans > 30-59 Days 60-89 Days Greater Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 298 $ 109 $ 565 $ 972 $ 36,509 $ 37,481 $ — Commercial — — — — 26,633 26,633 — Construction and land — — 166 166 7,688 7,854 — Commercial business — — — — 1,625 1,625 — Consumer 22 — — 22 370 392 — Total $ 320 $ 109 $ 731 $ 1,160 $ 72,825 $ 73,985 $ — |
Impaired Loans | The following table presents impaired loans as of September 30, 2015 and for the three month periods ended September 30, 2015 and 2014: As of For the Three Months Ended September 30, 2015 September 30, 2015 September 30, 2014 Average Average Unpaid Balance of Interest Balance of Interest Recorded Principal Specific Impaired Income Impaired Income Balance Balance Allowance Loans Recognized Loans Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,714 $ 1,750 $ — $ 1,600 $ 23 $ 1,488 $ 15 Commercial 244 244 — 247 4 219 4 Construction and land 1,809 1,809 — 1,817 23 1,856 27 Commercial business — — — — — — — Consumer — — — — — — — Loans with a specific valuation allowance: Real estate Residential 151 162 18 89 — 248 — Commercial — — — — — — — Construction and land — — — — — — — Commercial business — — — — — — — Consumer — — — — — — — Totals $ 3,918 $ 3,965 $ 18 $ 3,753 $ 50 $ 3,811 $ 46 The following table presents impaired loan information for the nine month periods ended September 30, 2015 and 2014: For the Nine Months Ended September 30, 2015 September 30, 2014 Average Average Balance of Interest Balance of Interest Impaired Income Impaired Income Loans Recognized Loans Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,489 $ 54 $ 2,188 $ 57 Commercial 241 12 241 11 Construction and land 1,833 66 1,755 73 Commercial business — — — — Consumer — — — — Loans with a specific valuation allowance: Real estate Residential 62 — 253 — Commercial — — — — Construction and land — — — — Commercial business — — — — Consumer — — — — Totals $ 3,625 $ 132 $ 4,437 $ 141 The following table presents impaired loans as of December 31, 2014: As of December 31, 2014 Unpaid Recorded Principal Specific Balance Balance Allowance (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,617 $ 1,630 $ — Commercial 214 214 — Construction and land 1,856 1,856 — Commercial business — — — Consumer — — — Loans with a specific valuation allowance: Real estate Residential 566 584 26 Commercial — — — Construction and land — — — Commercial business — — — Consumer — — — Totals $ 4,253 $ 4,284 $ 26 |
Bank's Nonaccrual Loans, Excludes Performing Troubled Debt Restructurings | The following table presents the Bank’s nonaccrual loans at September 30, 2015 and December 31, 2014. The table excludes performing troubled debt restructurings. September 30, December 31, 2015 2014 (Unaudited) (In thousands) Real estate loans Residential $ 1,084 $ 1,033 Commercial 7 11 Construction and land 166 166 Commercial business — — Consumer and other — — Total nonaccrual $ 1,257 $ 1,210 |
Information Regarding Troubled Debt Restructurings by Class | The following tables present information regarding troubled debt restructurings by class for the three and nine months ended September 30, 2015 and 2014. Newly classified troubled debt restructurings are as follows: Pre- Post- Number of Modification Modification For the nine months ended: Contracts Balance Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 Commercial 2 42 42 3 $ 92 $ 92 September 30, 2014 (Unaudited) Real estate Residential 2 $ 116 $ 116 Construction and land 2 319 319 4 $ 435 $ 435 Pre- Post- Number of Modification Modification For the three months ended: Contracts Balance Balance September 30, 2015 (Unaudited) (In thousands) Real estate Residential 1 $ 50 $ 50 September 30, 2014 (Unaudited) Real estate Residential 2 $ 116 $ 116 Construction and land 1 23 23 3 $ 139 $ 139 Newly restructured loans by type of modification are as follows for the three and nine months ended September 30, 2015 and 2014. Total For the nine months ended: Interest Only Term Combination Modification September 30, 2015 (Unaudited) (In thousands) Real estate Residential $ — $ 50 $ — $ 50 Commercial — 42 — 42 $ — $ 92 $ — $ 92 September 30, 2014 (Unaudited) Real estate Residential $ — $ — $ 116 $ 116 Construction and land — 296 23 319 $ — $ 296 $ 139 $ 435 Total For the three months ended: Interest Only Term Combination Modification September 30, 2015 (Unaudited) (In thousands) Real estate Residential $ — $ 50 $ — $ 50 September 30, 2014 (Unaudited) — — — — Real estate Residential $ — $ — $ 116 $ 116 Construction and land — — 23 23 $ — $ — $ 139 $ 139 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking And Thrift [Abstract] | |
Summary of Bank's Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following table: To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of September 30, 2015 Total Capital (to Risk-Weighted Assets) $ 10,810 16.5 % $ 5,226 8.0 % $ 6,533 10.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 9,990 15.3 % $ 3,920 6.0 % $ 5,226 8.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 9,990 15.3 % $ 2,940 4.5 % $ 4,246 6.5 % Tier I Leverage Capital (to Average Total Assets) $ 9,990 10.6 % $ 3,766 4.0 % $ 4,707 5.0 % As of December 31, 2014 Total Capital (to Risk-Weighted Assets) $ 10,817 16.3 % $ 5,316 8.0 % $ 6,645 10.0 % Tier I Capital (to Risk-Weighted Assets) $ 9,982 15.0 % $ 2,658 4.0 % $ 3,987 6.0 % Tier I Capital (to Total Assets) $ 9,982 11.0 % $ 3,627 4.0 % $ 5,441 6.0 % |
Disclosures about Fair Value 18
Disclosures about Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets Measured at Fair Value on Non-recurring Basis | 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, 2015 and December 31, 2014: 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, 2015 (Unaudited) Impaired loans, collateral dependent $ 83 $ — $ — $ 83 Foreclosed assets held for sale 308 — — 308 December 31, 2014 Impaired loans, collateral dependent $ 540 $ — $ — $ 540 Foreclosed assets held for sale 76 — — 76 |
Quantitative Information about Unobservable Inputs Used in Nonrecurring Level 3 Fair Value Measurements | 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, 2015 (unaudited) Impaired loans (collateral dependent) $ 83 Marketable comparable properties Marketability discount 18% Foreclosed real estate 308 Marketable comparable properties Comparability adjustments 9% December 31, 2014 Impaired loans (collateral dependent) $ 540 Marketable comparable properties Marketability discount 10%-15% Foreclosed real estate 76 Marketable comparable properties Comparability adjustments 10% |
Estimated Fair Values of the Bank's Financial Instruments | The following table presents the estimated fair values of the Bank’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, 2015 and December 31, 2014. 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, 2015 (Unaudited) Financial assets Cash and due from banks $ 704 $ 704 $ 704 $ — $ — Interest-earning demand deposits 6,839 6,839 6,839 — — Interest-earning time deposits in banks 992 992 — 992 — Loans held for sale 272 272 — 272 — Loans, net 73,327 73,774 — — 73,774 Federal Home Loan Bank stock 468 468 — 468 — Accrued interest receivable 189 189 — 189 — Mortgage servicing rights 318 318 — — 318 Financial liabilities Deposits 71,292 72,028 38,892 33,136 — Advances from the Federal Home Loan Bank 6,927 7,134 — 7,134 — Stock subscription proceeds in escrow 2,378 2,378 2,378 — — Accrued interest payable 2 2 — 2 — December 31, 2014 Financial assets Cash and due from banks $ 5,165 $ 5,165 $ 5,165 $ — $ — Interest-earning demand deposits 2,816 2,816 2,816 — — Interest-earning time deposits in banks 992 992 — 992 — Loans held for sale 581 592 — 592 — Loans, net 72,365 72,959 — — 72,959 Federal Home Loan Bank stock 678 678 — 678 — Accrued interest receivable 187 187 — 187 — Mortgage servicing rights 269 269 — — 269 Financial liabilities Deposits 67,868 68,507 41,231 27,276 — Federal funds purchased 2,500 2,500 2,500 — — Advances from the Federal Home Loan Bank 6,927 7,049 — 7,049 — Accrued interest payable 9 9 — 9 — |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | |||||
Investment securities | $ 0 | $ 0 | $ 0 | ||
Sales of investment securities | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan 20
Loans and Allowance for Loan Losses - Classes of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans | $ 74,754 | $ 73,985 | ||||
Net deferred loan fees, premiums and discounts | (4) | 2 | ||||
Undisbursed loans in process | (268) | (475) | ||||
Allowance for loan losses | (1,155) | $ (1,155) | (1,147) | $ (1,047) | $ (1,047) | $ (1,273) |
Net loans | 73,327 | 72,365 | ||||
Residential Real Estate | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans | 40,337 | 37,481 | ||||
Allowance for loan losses | (639) | (599) | (575) | (599) | (569) | (596) |
Commercial Real Estate | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans | 26,356 | 26,633 | ||||
Allowance for loan losses | (390) | (421) | (418) | (310) | (333) | (513) |
Construction and Land Real Estate | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans | 6,597 | 7,854 | ||||
Allowance for loan losses | (105) | (106) | (126) | (105) | (111) | (127) |
Commercial Business | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans | 1,077 | 1,625 | ||||
Allowance for loan losses | (17) | $ (23) | (23) | $ (29) | $ (30) | $ (34) |
Consumer and Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans | $ 387 | $ 392 |
Loans and Allowance for Loan 21
Loans and Allowance for Loan Losses - Additional Information (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015USD ($)Contract | Sep. 30, 2014Contract | Dec. 31, 2014USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||
Number of troubled debt restructuring, subsequently defaulted | 0 | 0 | |
Number of days, past due for loan payment default | 30 days | ||
Residential Real Estate | Home Equity Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Secured loans | $ | $ 3.7 | $ 3.4 |
Loans and Allowance for Loan 22
Loans and Allowance for Loan Losses - Activity in Allowance for Loan Losses and Recorded Investment in Loans and Impairment Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Allowance for loan losses: | |||||
Beginning balance | $ 1,155 | $ 1,047 | $ 1,147 | $ 1,273 | |
Provision (Credit) for Loan Losses | (200) | ||||
Charge-offs | (26) | ||||
Recoveries | 8 | ||||
Ending balance | 1,155 | 1,047 | 1,155 | 1,047 | |
Allowance for loan losses: | |||||
Ending balance, individually evaluated for impairment | 18 | 18 | $ 26 | ||
Ending balance, collectively evaluated for impairment | 1,137 | 1,137 | 1,121 | ||
Loans: | |||||
Total Loans Receivable | 74,754 | 74,754 | 73,985 | ||
Ending balance; individually evaluated for impairment | 3,918 | 3,918 | 4,253 | ||
Ending balance; collectively evaluated for impairment | 70,836 | 70,836 | 69,732 | ||
Residential Real Estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 599 | 569 | 575 | 596 | |
Provision (Credit) for Loan Losses | 40 | 30 | 56 | 29 | |
Charge-offs | (26) | ||||
Recoveries | 8 | ||||
Ending balance | 639 | 599 | 639 | 599 | |
Allowance for loan losses: | |||||
Ending balance, individually evaluated for impairment | 18 | 18 | 26 | ||
Ending balance, collectively evaluated for impairment | 621 | 621 | 549 | ||
Loans: | |||||
Total Loans Receivable | 40,337 | 40,337 | 37,481 | ||
Ending balance; individually evaluated for impairment | 1,865 | 1,865 | 2,183 | ||
Ending balance; collectively evaluated for impairment | 38,472 | 38,472 | 35,298 | ||
Commercial Real Estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 421 | 333 | 418 | 513 | |
Provision (Credit) for Loan Losses | (31) | (23) | (28) | (203) | |
Ending balance | 390 | 310 | 390 | 310 | |
Allowance for loan losses: | |||||
Ending balance, collectively evaluated for impairment | 390 | 390 | 418 | ||
Loans: | |||||
Total Loans Receivable | 26,356 | 26,356 | 26,633 | ||
Ending balance; individually evaluated for impairment | 244 | 244 | 214 | ||
Ending balance; collectively evaluated for impairment | 26,112 | 26,112 | 26,419 | ||
Construction and Land Real Estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 106 | 111 | 126 | 127 | |
Provision (Credit) for Loan Losses | (1) | (6) | (21) | (22) | |
Ending balance | 105 | 105 | 105 | 105 | |
Allowance for loan losses: | |||||
Ending balance, collectively evaluated for impairment | 105 | 105 | 126 | ||
Loans: | |||||
Total Loans Receivable | 6,597 | 6,597 | 7,854 | ||
Ending balance; individually evaluated for impairment | 1,809 | 1,809 | 1,856 | ||
Ending balance; collectively evaluated for impairment | 4,788 | 4,788 | 5,998 | ||
Commercial Business | |||||
Allowance for loan losses: | |||||
Beginning balance | 23 | 30 | 23 | 34 | |
Provision (Credit) for Loan Losses | (6) | (1) | (6) | (5) | |
Ending balance | 17 | 29 | 17 | 29 | |
Allowance for loan losses: | |||||
Ending balance, collectively evaluated for impairment | 17 | 17 | 23 | ||
Loans: | |||||
Total Loans Receivable | 1,077 | 1,077 | 1,625 | ||
Ending balance; collectively evaluated for impairment | 1,077 | 1,077 | 1,625 | ||
Consumer | |||||
Allowance for loan losses: | |||||
Beginning balance | 6 | 4 | 5 | 3 | |
Provision (Credit) for Loan Losses | (2) | (1) | 1 | ||
Ending balance | 4 | $ 4 | 4 | $ 4 | |
Allowance for loan losses: | |||||
Ending balance, collectively evaluated for impairment | 4 | 4 | 5 | ||
Loans: | |||||
Total Loans Receivable | 387 | 387 | 392 | ||
Ending balance; collectively evaluated for impairment | $ 387 | $ 387 | $ 392 |
Loans and Allowance for Loan 23
Loans and Allowance for Loan Losses - Credit Risk Profile of Bank's Loan Portfolio Based on Internal Rating Category and Payment Activity (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 74,754 | $ 73,985 |
Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 40,337 | 37,481 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 26,356 | 26,633 |
Construction and Land Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 6,597 | 7,854 |
Commercial Business | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,077 | 1,625 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 387 | 392 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 71,162 | 70,283 |
Pass | Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 38,735 | 35,820 |
Pass | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 24,542 | 24,777 |
Pass | Construction and Land Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 6,421 | 7,669 |
Pass | Commercial Business | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,077 | 1,625 |
Pass | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 387 | 392 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 554 | 533 |
Special Mention | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 544 | 514 |
Special Mention | Construction and Land Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10 | 19 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,038 | 2,438 |
Substandard | Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,602 | 1,096 |
Substandard | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,270 | 1,342 |
Substandard | Construction and Land Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 166 | |
Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 731 | |
Doubtful | Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 565 | |
Doubtful | Construction and Land Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 166 |
Loans and Allowance for Loan 24
Loans and Allowance for Loan Losses - Bank's Loan Portfolio Aging Analysis of Recorded Investment in Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 1,198 | $ 1,160 |
Current | 73,556 | 72,825 |
Total Loans Receivable | 74,754 | 73,985 |
30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 377 | 320 |
60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 89 | 109 |
Greater Than 90 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 732 | 731 |
Residential Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,032 | 972 |
Current | 39,305 | 36,509 |
Total Loans Receivable | 40,337 | 37,481 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 377 | 298 |
Residential Real Estate | 60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 89 | 109 |
Residential Real Estate | Greater Than 90 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 566 | 565 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 26,356 | 26,633 |
Total Loans Receivable | 26,356 | 26,633 |
Construction and Land Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 166 | 166 |
Current | 6,431 | 7,688 |
Total Loans Receivable | 6,597 | 7,854 |
Construction and Land Real Estate | Greater Than 90 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 166 | 166 |
Commercial Business | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 1,077 | 1,625 |
Total Loans Receivable | 1,077 | 1,625 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 22 | |
Current | 387 | 370 |
Total Loans Receivable | $ 387 | 392 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 22 |
Loans and Allowance for Loan 25
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable Impaired [Line Items] | |||||
Total Recorded Balance | $ 3,918 | $ 3,918 | $ 4,253 | ||
Total Unpaid Principal Balance | 3,965 | 3,965 | 4,284 | ||
Total Specific Allowance | 18 | 18 | 26 | ||
Total Average Balance of Impaired Loans | 3,753 | $ 3,811 | 3,625 | $ 4,437 | |
Total Interest Income Recognized | 50 | 46 | 132 | 141 | |
Residential Real Estate | |||||
Financing Receivable Impaired [Line Items] | |||||
Loan without a specific valuation allowance, Recorded Balance | 1,714 | 1,714 | 1,617 | ||
Loan without a specific valuation allowance, Unpaid Principal Balance | 1,750 | 1,750 | 1,630 | ||
Loan without a specific valuation allowance, Average Balance of Impaired Loans | 1,600 | 1,488 | 1,489 | 2,188 | |
Loan without a specific valuation allowance, Interest Income Recognized | 23 | 15 | 54 | 57 | |
Loans with a specific valuation allowance, Recorded Balance | 151 | 151 | 566 | ||
Loans with a specific valuation allowance, Unpaid Principal Balance | 162 | 162 | 584 | ||
Loans with a specific valuation allowance, Specific Allowance | 18 | 18 | 26 | ||
Loans with a specific valuation allowance, Average Balance Impaired Loans | 89 | 248 | 62 | 253 | |
Commercial Real Estate | |||||
Financing Receivable Impaired [Line Items] | |||||
Loan without a specific valuation allowance, Recorded Balance | 244 | 244 | 214 | ||
Loan without a specific valuation allowance, Unpaid Principal Balance | 244 | 244 | 214 | ||
Loan without a specific valuation allowance, Average Balance of Impaired Loans | 247 | 219 | 241 | 241 | |
Loan without a specific valuation allowance, Interest Income Recognized | 4 | 4 | 12 | 11 | |
Construction and Land Real Estate | |||||
Financing Receivable Impaired [Line Items] | |||||
Loan without a specific valuation allowance, Recorded Balance | 1,809 | 1,809 | 1,856 | ||
Loan without a specific valuation allowance, Unpaid Principal Balance | 1,809 | 1,809 | $ 1,856 | ||
Loan without a specific valuation allowance, Average Balance of Impaired Loans | 1,817 | 1,856 | 1,833 | 1,755 | |
Loan without a specific valuation allowance, Interest Income Recognized | $ 23 | $ 27 | $ 66 | $ 73 |
Loans and Allowance for Loan 26
Loans and Allowance for Loan Losses - Bank's Nonaccrual Loans, Excludes Performing Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual | $ 1,257 | $ 1,210 |
Residential Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual | 1,084 | 1,033 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual | 7 | 11 |
Construction and Land Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual | $ 166 | $ 166 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses - Newly Classified Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Contract | Sep. 30, 2014USD ($)Contract | Sep. 30, 2015USD ($)Contract | Sep. 30, 2014USD ($)Contract | |
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | Contract | 3 | 3 | 4 | |
Pre-Modification Balance | $ 139 | $ 92 | $ 435 | |
Post-Modification Balance | $ 139 | $ 92 | $ 435 | |
Residential Real Estate | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | Contract | 1 | 2 | 1 | 2 |
Pre-Modification Balance | $ 50 | $ 116 | $ 50 | $ 116 |
Post-Modification Balance | $ 50 | $ 116 | $ 50 | $ 116 |
Commercial Real Estate | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | Contract | 2 | |||
Pre-Modification Balance | $ 42 | |||
Post-Modification Balance | $ 42 | |||
Construction and Land Real Estate | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | Contract | 1 | 2 | ||
Pre-Modification Balance | $ 23 | $ 319 | ||
Post-Modification Balance | $ 23 | $ 319 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses - Restructured Loans by Type of Modification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | $ 139 | $ 92 | $ 435 | |
Term | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | 92 | 296 | ||
Combination | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | 139 | 139 | ||
Residential Real Estate | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | $ 50 | 116 | 50 | 116 |
Residential Real Estate | Term | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | $ 50 | 50 | ||
Residential Real Estate | Combination | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | 116 | 116 | ||
Commercial Real Estate | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | 42 | |||
Commercial Real Estate | Term | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | $ 42 | |||
Construction and Land Real Estate | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | 23 | 319 | ||
Construction and Land Real Estate | Term | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | 296 | |||
Construction and Land Real Estate | Combination | ||||
Financing Receivable Modifications [Line Items] | ||||
Post-Modification Balance | $ 23 | $ 23 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Bank's Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Total Capital | ||
Total Capital, Actual Amount | $ 10,810 | $ 10,817 |
Total Capital (to Risk-Weighted Assets), Actual Ratio | 16.50% | 16.30% |
Total Capital, For Capital Adequacy Purposes, Amount | $ 5,226 | $ 5,316 |
Total Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 6,533 | $ 6,645 |
Total Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital | ||
Tier 1 Capital, Actual Amount | $ 9,990 | $ 9,982 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio | 15.30% | 15.00% |
Tier 1 Capital, For Capital Adequacy Purposes, Amount | $ 3,920 | $ 2,658 |
Tier 1 Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 5,226 | $ 3,987 |
Tier 1 Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 6.00% |
Common Equity Tier I Capital | ||
Common Equity Tier I Capital, Actual Amount | $ 9,990 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), Actual Ratio | 15.30% | |
Common Equity Tier I Capital, For Capital Adequacy Purposes, Amount | $ 2,940 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes, Ratio | 4.50% | |
Common Equity Tier 1 Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 4,246 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | |
Tier I Leverage Capital | ||
Tier I Leverage Capital, Actual Amount | $ 9,990 | $ 9,982 |
Tier I Leverage Capital (to Average Total Assets), Actual Ratio | 10.60% | 11.00% |
Tier 1 Leverage Capital, For Capital Adequacy Purposes, Amount | $ 3,766 | $ 3,627 |
Tier I Leverage Capital (to Average Total Assets), For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier I Leverage Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 4,707 | $ 5,441 |
Tier I Leverage Capital (to Average Total Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 6.00% |
Disclosures about Fair Value 30
Disclosures about Fair Value of Assets and Liabilities - Fair Value Measurements of Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Impaired Loans, Collateral Dependent | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 83 | $ 540 |
Foreclosed Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 308 | 76 |
Significant Unobservable Inputs (Level 3) | Impaired Loans, Collateral Dependent | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 83 | 540 |
Significant Unobservable Inputs (Level 3) | Foreclosed Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 308 | $ 76 |
Disclosures about Fair Value 31
Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs Used in Nonrecurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Impaired Loans, Collateral Dependent | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair Value | $ 83 | $ 540 |
Marketability discount, Range | 18.00% | |
Impaired Loans, Collateral Dependent | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Marketability discount, Range | 10.00% | |
Impaired Loans, Collateral Dependent | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Marketability discount, Range | 15.00% | |
Impaired Loans, Collateral Dependent | Fair Value Measurements Nonrecurring | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Valuation Technique | Marketable comparable properties | Marketable comparable properties |
Foreclosed Real Estate | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair Value | $ 308 | $ 76 |
Comparability adjustments, Range | 9.00% | 10.00% |
Foreclosed Real Estate | Fair Value Measurements Nonrecurring | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Valuation Technique | Marketable comparable properties | Marketable comparable properties |
Disclosures about Fair Value 32
Disclosures about Fair Value of Assets and Liabilities - Estimated Fair Values of the Bank's Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets | ||
Cash and due from banks | $ 704 | $ 5,165 |
Interest-earning demand deposits | 6,839 | 2,816 |
Interest-earning time deposits in banks | 992 | 992 |
Loans held for sale | 272 | 581 |
Loans, net | 73,327 | 72,365 |
Federal Home Loan Bank stock | 468 | 678 |
Accrued interest receivable | 189 | 187 |
Mortgage servicing rights | 318 | 269 |
Financial liabilities | ||
Deposits | 71,292 | 67,868 |
Federal funds purchased | 2,500 | |
Advances from the Federal Home Loan Bank | 6,927 | 6,927 |
Stock subscription proceeds in escrow | 2,378 | |
Accrued interest payable | 2 | 9 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial assets | ||
Cash and due from banks | 704 | 5,165 |
Interest-earning demand deposits | 6,839 | 2,816 |
Financial liabilities | ||
Deposits | 38,892 | 41,231 |
Federal funds purchased | 2,500 | |
Stock subscription proceeds in escrow | 2,378 | |
Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Interest-earning time deposits in banks | 992 | 992 |
Loans held for sale | 272 | 592 |
Federal Home Loan Bank stock | 468 | 678 |
Accrued interest receivable | 189 | 187 |
Financial liabilities | ||
Deposits | 33,136 | 27,276 |
Advances from the Federal Home Loan Bank | 7,134 | 7,049 |
Accrued interest payable | 2 | 9 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Loans, net | 73,774 | 72,959 |
Mortgage servicing rights | 318 | 269 |
Fair Value | ||
Financial assets | ||
Cash and due from banks | 704 | 5,165 |
Interest-earning demand deposits | 6,839 | 2,816 |
Interest-earning time deposits in banks | 992 | 992 |
Loans held for sale | 272 | 592 |
Loans, net | 73,774 | 72,959 |
Federal Home Loan Bank stock | 468 | 678 |
Accrued interest receivable | 189 | 187 |
Mortgage servicing rights | 318 | 269 |
Financial liabilities | ||
Deposits | 72,028 | 68,507 |
Federal funds purchased | 2,500 | |
Advances from the Federal Home Loan Bank | 7,134 | 7,049 |
Stock subscription proceeds in escrow | 2,378 | |
Accrued interest payable | $ 2 | $ 9 |
Plan of Conversion and Change33
Plan of Conversion and Change in Corporate Form - Additional Information (Details) - USD ($) | Oct. 19, 2015 | Sep. 30, 2015 |
Plan Of Conversion And Change In Corporate Form [Line Items] | ||
Company formation date | 2015-06 | |
Prepaid Expenses and Other Assets | ||
Plan Of Conversion And Change In Corporate Form [Line Items] | ||
Conversion costs | $ 579,000 | |
Subsequent Event | Common Stock | ||
Plan Of Conversion And Change In Corporate Form [Line Items] | ||
Conversion of Stock, Shares Issued | 696,600 |