Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 12, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FSB Bancorp, Inc. | |
Entity Central Index Key | 1,667,939 | |
Trading Symbol | fsbc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,943,253 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Cash and due from banks | $ 1,648 | $ 1,672 |
Interest earning demand deposits | 4,317 | 8,725 |
Total cash and cash equivalents | 5,965 | 10,397 |
Available-for-sale securities, at fair value | 17,027 | 18,313 |
Held-to-maturity securities, at amortized cost (fair value of $6,265 and $6,588, respectively) | 6,335 | 6,575 |
Investment in restricted stock, at cost | 3,725 | 3,270 |
Loans held for sale | 4,662 | 2,770 |
Loans | 280,551 | 263,972 |
Less: Allowance for loan losses | (1,486) | (1,261) |
Loans receivable, net | 279,065 | 262,711 |
Bank owned life insurance | 3,804 | 3,758 |
Accrued interest receivable | 936 | 824 |
Premises and equipment, net | 2,853 | 3,064 |
Other assets | 2,771 | 2,700 |
Total assets | 327,143 | 314,382 |
Deposits: | ||
Non-interest bearing | 10,657 | 8,385 |
Interest bearing | 208,727 | 208,306 |
Total deposits | 219,384 | 216,691 |
Short-term borrowings | 14,550 | 13,000 |
Long-term borrowings | 59,246 | 51,447 |
Official bank checks | 1,274 | 929 |
Other liabilities | 1,371 | 1,259 |
Total liabilities | 295,825 | 283,326 |
Stockholders' equity: | ||
Preferred stock - par value $0.01; 25,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, par value $0.01; 50,000,000 authorized shares; 1,943,253 and 1,934,853 shares issued and outstanding, respectively | 19 | 19 |
Paid-in capital | 15,702 | 15,441 |
Retained earnings | 16,169 | 16,077 |
Accumulated other comprehensive loss | (282) | (165) |
Unearned ESOP shares, at cost | (290) | (316) |
Total stockholders' equity | 31,318 | 31,056 |
Total liabilities and stockholders' equity | $ 327,143 | $ 314,382 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthenticals) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Fair value securities held to maturity (in dollars) | $ 6,265 | $ 6,588 |
Preferred stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 1,943,253 | 1,934,853 |
Common stock, shares outstanding | 1,943,253 | 1,934,853 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and dividend income: | ||||
Loans, including fees | $ 3,023 | $ 2,621 | $ 8,736 | $ 7,429 |
Securities: | ||||
Taxable | 105 | 80 | 296 | 219 |
Tax-exempt | 26 | 27 | 78 | 84 |
Mortgage-backed securities | 28 | 26 | 103 | 80 |
Other | 14 | 11 | 35 | 35 |
Total interest and dividend income | 3,196 | 2,765 | 9,248 | 7,847 |
Interest expense: | ||||
Interest on deposits | 689 | 482 | 1,855 | 1,282 |
Interest on short-term borrowings | 43 | 23 | 127 | 64 |
Interest on long-term borrowings | 328 | 218 | 841 | 631 |
Total interest expense | 1,060 | 723 | 2,823 | 1,977 |
Net interest income | 2,136 | 2,042 | 6,425 | 5,870 |
Provision for loan losses | 75 | 84 | 225 | 196 |
Net interest income after provision for loan losses | 2,061 | 1,958 | 6,200 | 5,674 |
Other income: | ||||
Increase in cash surrender value of bank owned life insurance | 16 | 16 | 46 | 47 |
Realized gain on sale of loans | 461 | 650 | 1,098 | 1,667 |
Mortgage fee income | 218 | 244 | 588 | 613 |
Other | 47 | 44 | 151 | 134 |
Total other income | 816 | 1,031 | 2,099 | 2,719 |
Other expense: | ||||
Salaries and employee benefits | 1,711 | 1,712 | 4,903 | 4,825 |
Occupancy | 268 | 273 | 822 | 801 |
Data processing costs | 119 | 80 | 323 | 250 |
Advertising | 24 | 28 | 116 | 122 |
Equipment | 129 | 135 | 412 | 418 |
Electronic banking | 26 | 29 | 84 | 64 |
Directors' fees | 46 | 65 | 151 | 195 |
Mortgage fees and taxes | 229 | 78 | 344 | 198 |
FDIC premium expense | 31 | 25 | 81 | 77 |
Audits and tax services | 70 | 44 | 165 | 137 |
Other | 283 | 243 | 782 | 763 |
Total other expenses | 2,936 | 2,712 | 8,183 | 7,850 |
Income (loss) before income taxes | (59) | 277 | 116 | 543 |
Provision (benefit) for income taxes | (9) | 98 | 24 | 145 |
Net income (loss) | $ (50) | $ 179 | $ 92 | $ 398 |
Earnings (loss) per common share - basic and diluted (in dollars per share) | $ (0.03) | $ 0.09 | $ 0.05 | $ 0.21 |
Service fees | ||||
Other income: | ||||
Other income including Service fees and Fee income | $ 38 | $ 43 | $ 107 | $ 121 |
Fee income | ||||
Other income: | ||||
Other income including Service fees and Fee income | $ 36 | $ 34 | $ 109 | $ 137 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income and Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (50) | $ 179 | $ 92 | $ 398 |
Unrealized holding gains (losses) on available-for-sale securities | ||||
Unrealized holding gains (losses) arising during the period | (25) | (8) | (148) | 21 |
Net unrealized gain (loss) on available for sale securities | (25) | (8) | (148) | 21 |
Other comprehensive income (loss), before tax | (25) | (8) | (148) | 21 |
Tax effect | (5) | (3) | (31) | 7 |
Other comprehensive income (loss), net of tax | (20) | (5) | (117) | 14 |
Comprehensive income (loss) | (70) | 174 | (25) | 412 |
Tax Effect Allocated to Each Component of Other Comprehensive Income (Loss) | ||||
Unrealized holding gains (losses) arising during the period | (5) | (3) | (31) | 7 |
Tax effect | $ (5) | $ (3) | $ (31) | $ 7 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Unearned ESOP | Total |
Balance at Dec. 31, 2016 | $ 19 | $ 16,352 | $ 15,839 | $ (85) | $ (350) | $ 31,775 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 398 | 398 | ||||
Other comprehensive income (loss), net of tax | 14 | 14 | ||||
ESOP shares committed to be released | 13 | 26 | 39 | |||
Effect of stock repurchase plan | (1) | (1,051) | (1,052) | |||
Balance at Sep. 30, 2017 | 18 | 15,314 | 16,237 | (71) | (324) | 31,174 |
Balance at Dec. 31, 2017 | 19 | 15,441 | 16,077 | (165) | (316) | 31,056 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 92 | 92 | ||||
Other comprehensive income (loss), net of tax | (117) | (117) | ||||
ESOP shares committed to be released | 30 | 26 | 56 | |||
Stock based compensation | 231 | 231 | ||||
Balance at Sep. 30, 2018 | $ 19 | $ 15,702 | $ 16,169 | $ (282) | $ (290) | $ 31,318 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 92 | $ 398 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Net amortization of premiums and accretion of discounts on investments | 68 | 105 |
Gain on sale of loans | (1,098) | (1,667) |
Proceeds from loans sold | 46,229 | 54,668 |
Loans originated for sale | (47,023) | (55,122) |
Amortization of net deferred loan origination costs | 369 | 339 |
Depreciation and amortization | 338 | 334 |
Provision for loan losses | 225 | 196 |
Expense related to ESOP | 56 | 39 |
Stock based compensation | 231 | |
Deferred income tax benefit | (12) | (98) |
Earnings on investment in bank owned life insurance | (46) | (47) |
Increase in accrued interest receivable | (112) | (146) |
Increase in other assets | (71) | (594) |
Increase (Decrease) in other liabilities | 156 | (214) |
Net cash flows from operating activities | (598) | (1,809) |
INVESTING ACTIVITIES | ||
Purchases of securities available-for-sale | (500) | (7,533) |
Proceeds from maturities and calls of securities available-for-sale | 3,500 | |
Proceeds from principal paydowns on securities available-for-sale | 1,591 | 2,667 |
Purchases of securities held-to-maturity | (415) | (335) |
Proceeds from maturities and calls of securities held-to-maturity | 460 | 715 |
Proceeds from principal paydowns on securities held-to-maturity | 173 | 96 |
Net increase in loans | (16,948) | (27,448) |
Purchase of restricted stock, net | (455) | (612) |
Purchase of premises and equipment | (127) | (331) |
Net cash flows from investing activities | (16,221) | (29,281) |
FINANCING ACTIVITIES | ||
Net increase in deposits | 2,693 | 16,619 |
Proceeds from long-term borrowings | 25,500 | 16,500 |
Repayments on long-term borrowings | (17,701) | (12,290) |
Proceeds on short-term borrowings, net | 1,550 | 8,500 |
Net increase in official bank checks | 345 | 2,357 |
Effect of stock repurchase plan | (1,052) | |
Net cash flows from financing activities | 12,387 | 30,634 |
Change in cash and cash equivalents | (4,432) | (456) |
Cash and cash equivalents at beginning of period | 10,397 | 7,407 |
Cash and cash equivalents at end of period | 5,965 | 6,951 |
CASH PAID DURING THE PERIOD FOR: | ||
Interest | 2,761 | 1,962 |
Income taxes | $ 262 | $ 49 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Basis Of Accounting [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation The accompanying unaudited consolidated financial statements of FSB Bancorp, Inc. (“FSB Bancorp”), Fairport Savings Bank (the “Bank”), and its other wholly owned subsidiary, Fairport Wealth Management (collectively, the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a complete presentation of consolidated financial condition, results of operations and cash flows in conformity with generally accepted accounting principles. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation, have been included. The results are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or for any future period. The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States and follow practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. Certain policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Estimates, assumptions, and judgments are necessary when assets and liabilities are required to be recorded at fair value or when an asset or liability needs to be recorded contingent upon a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. The fair values and information used to record valuation adjustments for certain assets and liabilities are based on quoted market prices or are provided by other third-party sources, when available. When third party information is not available, valuation adjustments are estimated in good faith by management. |
Change in Accounting Estimate
Change in Accounting Estimate | 9 Months Ended |
Sep. 30, 2018 | |
Change in Accounting Estimate [Abstract] | |
Change in Accounting Estimate | Note 2: Change in Accounting Estimate In conjunction with the filing of the 2017 New York State income tax return and based on challenges encountered with respect to the ongoing mortgage recording tax examinations, the Company believes at this time that it is important to record a valuation percentage lower than 0.25% against all mortgage loans eligible for the special additional mortgage recording tax credit and believes that it is appropriate to adjust the outstanding balance of previously recorded special additional mortgage recording tax credits. The Company made this election on September 30, 2018 and its impact was as follows: Income from continuing operations $(159,000) Net Income $(126,000) Net income per share for the three months ended September 30, 2018 $(0.07) Net income per share for the nine months ended September 30, 2018 $(0.06) |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Note 3: New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and subsequent updates. This ASU clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that requires an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the guidance effective January 1, 2018 using the modified retrospective method. The Company’s revenue is the sum of net interest income and non-interest income. The scope of the guidance excludes nearly all net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. The Company completed its review and determined that the majority of non-interest income revenue streams are within the scope of the new standard. Non-interest income streams that are out of scope of the new standard include BOLI, sales of investment securities, mortgage banking activities, and certain items within service charges and other income. Management reviewed contracts related to service charges on deposits, investment advisory commissions and fee income, insurance commission and fee income, and certain items within other service charges and other income. The Company evaluated the impact of this ASU on the Company’s various revenue streams and, upon adoption on January 1, 2018 and going forward, does not anticipate a material impact to the consolidated financial statements. The Company has included applicable disclosures regarding revenue recognition within Note 10 of these consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods with those fiscal years. The adoption had no impact on the consolidated financial statements and only impacted fair value measurement disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This new guidance supersedes the lease requirements in Topic 840, Leases and is based on the principle that a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The accounting applied by a lessor is largely unchanged from that applied under the previous guidance. In addition, the guidance requires an entity to separate the lease components from the nonlease components in a contract. The ASU requires disclosures about the amount, timing, and judgments related to a reporting entity's accounting for leases and related cash flows. The standard is required to be applied to all leases in existence as of the date of adoption using a modified retrospective transition approach. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all companies in any interim or annual period. The Company occupies certain offices and uses certain equipment under non-cancelable operating lease agreements, which currently are not reflected in its consolidated statement of condition. The Company expects to recognize lease liabilities and right of use assets associated with these lease agreements; however, the extent of the impact on the Company's consolidated financial statements is currently under evaluation. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326). This new guidance significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace the "incurred loss" model under existing guidance with an "expected loss" model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This guidance requires adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all companies as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact the guidance will have on the Company's consolidated financial statements, and expects an increase in the allowance for credit losses resulting from the change to expected losses for the estimated life of the financial asset, including an allowance for debt securities. The amount of the increase in the allowance for credit losses resulting from the new guidance will be impacted by the portfolio composition and asset quality at the adoption date, as well as economic conditions and forecasts at the time of adoption. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The amendments provide guidance on the following eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company adopted the amendment in this update during the three months ended March 31, 2018 and noted no material impact to the consolidated financial statements. In March 2017, the FASB issued an Update (ASU 2017-08) to its guidance on “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) related to premium amortization on purchased callable debt securities. The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosure about a change in accounting principle. The adoption of this guidance is not expected to have a material impact on our consolidated results of operations or financial position. In May 2018, the FASB issued ASU No. 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued ASU No. 2018-08, Not for Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842. Leases In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements which amends FASB Accounting Standards Codification (ASC) Topic 842, Leases , to (1) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (2) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. This guidance did not change the Company’s assessment of the impact of ASU No. 2016-02 on the consolidated financial statements as described above. In August 2018, the FASB has issued Accounting Standards Update (ASU) No. 2018-15, Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, a consensus of the FASB Emerging Issues Task Force, which amends the FASB Accounting Standards Codification (ASC) to provide guidance on accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement, which provided guidance to customers concerning whether a cloud computing arrangement (e.g., software, platform, or infrastructure offered as a service) includes a software license. Pursuant to that guidance, (1) if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for in a manner consistent with the acquisition of other software licenses, or (2) if the arrangement does not include a software license, then the arrangement should be accounted for as a service contract, with the fees associated with the hosting element (service) of the arrangement expensed as they are incurred. Following the issuance of ASU No. 2015-05, constituents requested that the FASB provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. Accordingly, because United States generally accepted accounting principles (U.S. GAAP) do not contain explicit guidance on accounting for such costs, and to address the resulting diversity in practice, the FASB has issued ASU No. 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Note that the guidance on accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in ASU No. 2018-15. For Public Business Entities, the amended guidance is effective for fiscal years beginning after December 15, 2019 (i.e., calendar-year 2020), and for interim periods within those fiscal years. In October 2018, the FASB issued Accounting Standards Update (ASU) No. 2018-16 , Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes , which adds the SOFR OIS as a benchmark rate that businesses can use to designate hedges of interest rate risk. This update adds to U.S. GAAP a new interest rate from the market for U.S. Treasury repurchase contracts to the list of accepted benchmark rates for hedge accounting. The SOFR is calculated by the Fed based on the interest rates banks charge one another in the overnight market for loans they make to one another, typically called repurchase agreements. In introducing the new rate, the Fed said that because it is based on transactions in the open market, it is more reflective of market conditions than LIBOR, which relies more on judgment. Adding the SOFR OIS as an acceptable hedge accounting benchmark for U.S. GAAP is considered a critical step in helping it gain more acceptance in the market. FASB ASC 815 provides guidance on the risks associated with financial assets or liabilities that are allowed to be hedged. Among those risks is the risk of changes in fair values or cash flows of existing or forecasted issuances or purchases of fixed-rate financial assets or liabilities attributable to a designated benchmark interest rate. U.S. GAAP considers a benchmark rate as a rate that is widely recognized, commonly referenced, and quoted in an active financial market. FASB ASC 815 lists three rates as benchmarks: the rate on direct Treasury obligations of the U.S. government, the Fed Funds Effective Swap Rate (Overnight Index Swap Rate), and the LIBOR swap rate. In 2017, the FASB added a fourth rate, the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate when it published ASU No. 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which made several other changes to simplify hedge accounting and expand its use. The FASB wants businesses and organizations to adopt the amendments in ASU No. 2018-16 at the same time they adopt the changes in ASU No. 2017-12 . For public companies that have adopted ASU No. 2017-12, the new amendments are effective for fiscal years beginning after December 15 and interim periods within those fiscal years. For other companies and organizations that already have adopted ASU No. 2017-12 , the new amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period as long as the company or organization already has adopted the broader 2017 hedge accounting update. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 4: Earnings per Common Share Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Net income available to common stockholders is net income to FSB Bancorp, Inc. Diluted earnings per share is calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding under the treasury stock method if all potentially dilutive common shares (such as stock options) issued became vested during the period. There is no impact on earnings per share because no stock options have vested as of September 30, 2018. On September 27, 2017, the Board of Directors of the Company approved restricted stock and stock option grants to senior management and the directors of the Company, pursuant to the terms of the 2017 Equity Incentive Plan (the “Plan”). The Plan was approved previously by the Company’s stockholders on August 29, 2017. An aggregate of 20,000 stock options and 8,400 shares of restricted stock were granted to senior management during the nine months ended September 30, 2018. The grants to senior management vest over a five year period in equal annual installments, with the first installment vesting on the first anniversary date of the grant and succeeding installments on each anniversary thereafter, through 2023. The Company did not grant any restricted stock awards or stock options during the nine months ended September 30, 2017. Unallocated common shares held by the ESOP are not included in the weighted average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released. The following tables set forth the calculation of basic and diluted earnings per share. Three months ended September 30, (In thousands, except per share data) 2018 2017 Basic and Diluted Earnings (Loss) Per Common Share Net income (loss) available to common stockholders $ (50 ) $ 179 Weighted average common shares outstanding 1,911 1,889 Earnings (Loss) per common share – basic and diluted $ (0.03 ) $ 0.09 Nine months ended September 30, (In thousands, except per share data) 2018 2017 Basic and Diluted Earnings Per Common Share Net income available to common stockholders $ 92 $ 398 Weighted average common shares outstanding 1,909 1,900 Earnings per common share – basic and diluted $ 0.05 $ 0.21 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 5: Investment Securities The amortized cost and estimated fair value of investment securities are summarized as follows: September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio U.S. Government and agency obligations $ 11,111 $ 7 $ (263 ) $ 10,855 Mortgage-backed securities – residential 6,273 28 (129 ) 6,172 Total available-for-sale $ 17,384 $ 35 $ (392 ) $ 17,027 Held-to-Maturity Portfolio Mortgage-backed securities – residential $ 462 $ 6 $ - $ 468 State and municipal securities 5,873 12 (88 ) 5,797 Total held-to-maturity $ 6,335 $ 18 $ (88 ) $ 6,265 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio U.S. Government and agency obligations $ 10,612 $ - $ (142 ) $ 10,470 Mortgage-backed securities – residential 7,909 19 (85 ) 7,843 Total available-for-sale $ 18,521 $ 19 $ (227 ) $ 18,313 Held-to-Maturity Portfolio Mortgage-backed securities – residential $ 637 $ 9 $ - $ 646 State and municipal securities 5,938 41 (37 ) 5,942 Total held-to-maturity $ 6,575 $ 50 $ (37 ) $ 6,588 The amortized cost and estimated fair value of debt investments at September 30, 2018 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due in one year or less $ - $ - $ 375 $ 375 Due after one year through five years 9,611 9,392 3,941 3,880 Due after five years through ten years 500 497 1,557 1,542 Due after ten years 1,000 966 - - Sub-total $ 11,111 $ 10,855 $ 5,873 $ 5,797 Mortgage-backed securities – residential 6,273 6,172 462 468 Totals $ 17,384 $ 17,027 $ 6,335 $ 6,265 The Company’s investment securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: September 30, 2018 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale U.S. Government and agency obligations 1 $ 3 $ 497 8 $ 260 $ 9,346 9 $ 263 $ 9,843 Mortgage-backed securities - residential - - - 4 129 3,834 4 129 3,834 Totals 1 $ 3 $ 497 12 $ 389 $ 13,180 13 $ 392 $ 13,677 Held-to-Maturity Mortgage-backed securities – residential (1) - $ - $ - 1 $ - $ 166 1 $ - $ 166 State and municipal securities 9 35 2,748 12 53 1,860 21 88 4,608 Totals 9 $ 35 $ 2,748 13 $ 53 $ 2,026 22 $ 88 $ 4,774 December 31, 2017 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale U.S. Government and agency obligations 4 $ 34 $ 4,472 5 $ 108 $ 5,999 9 $ 142 $ 10,471 Mortgage-backed securities - residential 4 23 2,459 4 62 3,435 8 85 5,894 Totals 8 $ 57 $ 6,931 9 $ 170 $ 9,434 17 $ 227 $ 16,365 Held-to-Maturity Mortgage-backed securities – residential (1) - $ - $ - 1 $ - $ 171 1 $ - $ 171 State and municipal securities 10 16 1,574 5 21 1,331 15 37 2,905 Totals 10 $ 16 $ 1,574 6 $ 21 $ 1,502 16 $ 37 $ 3,076 (1) The Company conducts a formal review of investment securities on a quarterly basis for the presence of other-than-temporary impairment (“OTTI”). The Company assesses whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the statement of condition date. Under these circumstances, OTTI is considered to have occurred (1) if we intend to sell the security; (2) if it is “more likely than not” we will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not anticipated to be sufficient to recover the entire amortized cost basis. The guidance requires that credit-related OTTI is recognized in earnings while non-credit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (“OCI”). Non-credit-related OTTI is based on other factors, including illiquidity and changes in the general interest rate environment. Presentation of OTTI is made in the consolidated statement of income on a gross basis, including both the portion recognized in earnings as well as the portion recorded in OCI. The gross OTTI would then be offset by the amount of non-credit-related OTTI, showing the net as the impact on earnings. There were 35 securities in an unrealized loss position at September 30, 2018, of which 25 have been in loss positions for a period greater than twelve months and 10 have been in loss positions for a period less than twelve months. This compares to 33 securities in an unrealized loss position at December 31, 2017, of which 15 had been in loss positions for a period greater than twelve months and 18 had been in loss positions for a period less than twelve months. These issuing entities are currently rated Aaa by Moody’s Investor Services and AA+ by Standard and Poors. Among the 25 securities in loss positions for a period greater than twelve months at September 30, 2018, 13 were either direct issuances of, or mortgage-backed securities or collateralized mortgage obligations issued by, the following entities sponsored and guaranteed by the United States Government: GNMA, FNMA, and FHLMC. The remaining 12 securities that have been in a loss position for a period greater than twelve months were issued by a state or political subdivision, primarily local municipalities. The unrealized losses reflected are primarily attributable to changes in interest rates since the securities were acquired. Among the 10 securities in an unrealized loss position at September 30, 2018 for less than twelve months, one was a direct issuance of FHLB and guaranteed by the United States Government. The remaining nine securities were issued by a state or political subdivision, primarily local municipalities. The unrealized losses reflected are primarily attributable to changes in interest rates since the securities were acquired. The Company does not intend to sell these securities, nor is it more likely than not, that the Company will be required to sell these securities prior to recovery of the amortized cost. The state and municipal securities are general obligation (G.O.) bonds backed by the full faith and credit of local municipalities. There has never been a default of a New York G.O. in the history of the state. Historical performance does not guarantee future performance, but it does indicate that the risk of loss on default of a G.O. municipal bond for the Company is relatively low. All are paying in accordance with their terms with no deferrals of interest or defaults. As such, management does not believe any individual unrealized loss as of September 30, 2018 represents OTTI. There were no realized gains or losses on sales of securities for the three or nine months ended September 30, 2018 and September 30, 2017. As of September 30, 2018 and December 31, 2017, no securities were pledged to secure public deposits or for any other purpose required or permitted by law. Management has reviewed its loan and mortgage-backed securities portfolios and determined that, to the best of its knowledge, little or no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of investing in, or originating, these types of investments or loans. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | Note 6: Loans Major classifications of loans at the indicated dates are as follows: September 30, December 31, (In thousands) 2018 2017 Real estate loans: Secured by one-to-four family residences $ 219,841 $ 206,894 Secured by multi-family residences 10,337 10,650 Construction 6,277 10,750 Commercial real estate 21,650 14,803 Home equity lines of credit 17,012 17,127 Total real estate loans 275,117 260,224 Commercial and industrial loans 5,399 3,679 Other loans 56 70 Total loans 280,572 263,973 Net deferred loan origination fees (21 ) (1 ) Less allowance for loan losses (1,486 ) (1,261 ) Loans receivable, net $ 279,065 $ 262,711 The Company originates residential mortgage, commercial, and consumer loans largely to customers throughout Monroe county and the surrounding western New York counties of Erie, Livingston, Ontario, Orleans, Jefferson, Niagara, and Wayne. Although the Company has a diversified loan portfolio, a substantial portion of its borrowers’ abilities to honor their loan contracts is dependent upon the counties’ employment and economic conditions. As of September 30, 2018 and December 31, 2017, residential mortgage loans with a carrying value of $194.9 million and $190.4 million, respectively, have been pledged by the Company to the Federal Home Loan Bank of New York (“FHLBNY”) under a blanket collateral agreement to secure the Company’s line of credit and term borrowings. The Company retains the servicing on conventional fixed-rate mortgage loans sold to Freddie Mac (“FHLMC”) and receives a fee based on the principal balance outstanding. Loans serviced for others totaled $126.5 million and $132.4 million at September 30, 2018 and December 31, 2017, respectively. Loan servicing rights are recorded at fair value when loans are sold with servicing rights retained. The fair value of the mortgage servicing rights (“MSRs”) is determined using a method which utilizes servicing income, discount rates, and prepayment speeds relative to the Bank’s portfolio for MSRs and are amortized over the life of the loan. MSRs amounted to $848,000 and $892,000 at September 30, 2018 and December 31, 2017, respectively, and are included in other assets on the consolidated balance sheets. Loan Origination / Risk Management The Company’s lending policies and procedures are presented in Note 4 to the consolidated financial statements included in FSB Bancorp’s Amendment No. 1 to the Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on August 13, 2018 and have not changed. To develop and document a systematic methodology for determining the allowance for loan losses, the Company has divided the loan portfolio into two portfolio segments, each with different risk characteristics but with similar methodologies for assessing risk. Each portfolio segment is broken down into loan classes where appropriate. Loan classes contain unique measurement attributes, risk characteristics, and methods for monitoring and assessing risk that are necessary to develop the allowance for loan losses. Unique characteristics such as borrower type, loan type, collateral type, and risk characteristics define each class. The following table illustrates the portfolio segments and classes for the Company’s loan portfolio: Portfolio Segment Class Real Estate Loans Secured by one-to-four family residences Secured by multi-family residences Construction Commercial real estate Home equity lines of credit Other Loans Commercial and industrial Other loans The following tables present the classes of the loan portfolio, not including net deferred loan fees, summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system as of the dates indicated: As of September 30, 2018 Special (In thousands) Pass Mention Substandard Doubtful Total Real estate loans: Secured by one-to-four family residences $ 216,176 $ 500 $ 3,165 $ - $ 219,841 Secured by multi-family residences 10,337 - - - 10,337 Construction 6,277 - - - 6,277 Commercial real estate 20,462 1,188 - - 21,650 Home equity lines of credit 16,808 - 204 - 17,012 Total real estate loans 270,060 1,688 3,369 - 275,117 Commercial & industrial loans 5,354 - 45 - 5,399 Other loans 56 - - - 56 Total loans $ 275,470 $ 1,688 $ 3,414 $ - $ 280,572 As of December 31, 2017 Special (In thousands) Pass Mention Substandard Doubtful Total Real estate loans: Secured by one-to-four family residences $ 203,815 $ 116 $ 2,963 $ - $ 206,894 Secured by multi-family residences 10,650 - - - 10,650 Construction 10,750 - - - 10,750 Commercial real estate 14,803 - - - 14,803 Home equity lines of credit 16,897 - 230 - 17,127 Total real estate loans 256,915 116 3,193 - 260,224 Commercial & industrial loans 3,679 - - - 3,679 Other loans 70 - - - 70 Total loans $ 260,664 $ 116 $ 3,193 $ - $ 263,973 Real estate loans secured by one-to four family residences rated substandard increased $202,000, or 6.8%, to $3.2 million at September 30, 2018 from $3.0 million at December 31, 2017 due to the addition of 10 residential mortgage loans newly categorized as substandard at September 30, 2018, partially offset by the upgrades of six residential mortgage loans now paying as agreed and three mortgage loan payoffs. Real estate loans secured by one-to four family residences rated special mention increased $384,000, or 330.2%, to $500,000 at September 30, 2018 from $116,000 at December 31, 2017 due to the addition of one residential mortgage loan newly categorized as special mention at September 30, 2018, partially offset by one loan now being paid as agreed which was classified as special mention at December 31, 2017. Commercial real estate loans rated special mention increased $1.2 million to $1.2 million from the $0 balance at December 31, 2017 due to the addition of three loans newly categorized as special mention after annual financial statement reviews of these borrowers were performed during the nine months ended September 30, 2018. Commercial and industrial loans rated substandard increased $45,000 to $45,000 from the $0 balance at December 31, 2017 due to the addition of one loan newly categorized as substandard during the nine months ended September 30, 2018. Management has reviewed its loan portfolio and determined that, to the best of its knowledge, no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of originating these types of loans. Nonaccrual and Past Due Loans Loans are placed on nonaccrual when the contractual payment of principal and interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan may be currently performing. Loans are considered past due if the required principal and interest payments have not been received within thirty days of the payment due date. An age analysis of past due loans, segregated by portfolio segment and class of loans, as of September 30, 2018 and December 31, 2017, are detailed in the following tables: As of September 30, 2018 30-59 Days 60-89 Days Past Due Past Due 90 Days Total Total Loans (In thousands) And Accruing And Accruing and Over Past Due Current Receivable Real estate loans: Secured by one-to-four family residences $ 1,150 $ - $ 55 $ 1,205 $ 218,636 $ 219,841 Secured by multi-family residences - - - - 10,337 10,337 Construction - - - - 6,277 6,277 Commercial - - - - 21,650 21,650 Home equity lines of credit 5 - - 5 17,007 17,012 Total real estate loans 1,155 - 55 1,210 273,907 275,117 Commercial & industrial loans - - 45 45 5,354 5,399 Other loans - - - - 56 56 Total loans $ 1,155 $ - $ 100 $ 1,255 $ 279,317 $ 280,572 As of December 31, 2017 30-59 Days 60-89 Days Past Due Past Due 90 Days Total Total Loans (In thousands) And Accruing And Accruing and Over Past Due Current Receivable Real estate loans: Secured by one-to-four family residences $ 699 $ - $ 153 $ 852 $ 206,042 $ 206,894 Secured by multi-family residences - - - - 10,650 10,650 Construction - - - - 10,750 10,750 Commercial - - - - 14,803 14,803 Home equity lines of credit - - - - 17,127 17,127 Total real estate loans 699 - 153 852 259,372 260,224 Commercial & industrial loans - - - - 3,679 3,679 Other loans - - - - 70 70 Total loans $ 699 $ - $ 153 $ 852 $ 263,121 $ 263,973 Real estate loans secured by one-to four family residences 30-59 days past due and accruing increased $451,000, or 64.5%, to $1.2 million at September 30, 2018 from $699,000 at December 31, 2017 due to the delinquency of three additional mortgage loans during the nine months ended September 30, 2018, partially offset by two mortgage loan payoffs. At September 30, 2018, the Company had one nonaccrual residential mortgage loan for $55,000 and one nonaccrual commercial and industrial loan for $45,000. At December 31, 2017, the Company had two nonaccrual residential mortgage loans for $153,000. There were no loans that were past due 90 days or more and still accruing interest at September 30, 2018 and December 31, 2017. At September 30, 2018 and December 31, 2017, there were no loans considered to be impaired and no troubled debt restructurings. |
Allowance for Loan Losses and F
Allowance for Loan Losses and Foreclosed Real Estate | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Loan Losses and Foreclosed Real Estate | Note 7: Allowance for Loan Losses and Foreclosed Real Estate Summarized in the tables below are changes in the allowance for loan losses for the indicated periods and information pertaining to the allocation of the allowance for loan losses, balances of the allowance for loan losses, loans receivable based on individual, and collective impairment evaluation by loan portfolio class. An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class. For the three months ended September 30, 2018 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 803 $ 78 $ 33 $ 211 $ 103 $ 54 $ 129 $ 1,411 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 85 - (2 ) 53 1 19 (81 ) 75 Ending balance $ 888 $ 78 $ 31 $ 264 $ 104 $ 73 $ 48 $ 1,486 For the three months ended September 30, 2017 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 690 $ 47 $ 49 $ 106 $ 109 $ 38 $ 63 $ 1,102 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 93 18 2 21 2 9 (61 ) 84 Ending balance $ 783 $ 65 $ 51 $ 127 $ 111 $ 47 $ 2 $ 1,186 For the nine months ended September 30, 2018 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 816 $ 80 $ 54 $ 148 $ 107 $ 47 $ 9 $ 1,261 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 72 (2 ) (23 ) 116 (3 ) 26 39 225 Ending balance $ 888 $ 78 $ 31 $ 264 $ 104 $ 73 $ 48 $ 1,486 For the nine months ended September 30, 2017 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 584 $ 38 $ 31 $ 84 $ 112 $ 28 $ 113 $ 990 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 199 27 20 43 (1 ) 19 (111 ) 196 Ending balance $ 783 $ 65 $ 51 $ 127 $ 111 $ 47 $ 2 $ 1,186 The Company had no foreclosed real estate at September 30, 2018 or December 31, 2017. At September 30, 2018, the Company had one residential real estate loan for $55,000 in the process of foreclosure and at December 31, 2017, the Company had one residential real estate loan for $37,000 in the process of foreclosure. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8: Fair Value Measurements Accounting guidance related to fair value measurements and disclosures specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy: 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 – Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs, minimize the use of unobservable inputs, to the extent possible, and considers counterparty credit risk in its assessment of fair value. The following tables summarize assets measured at fair value on a recurring basis as of the indicated dates, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value: September 30, 2018 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale portfolio U.S. Government and agency obligations $ - $ 10,855 $ - $ 10,855 Mortgage-backed securities – residential - 6,172 - 6,172 Total available-for-sale securities $ - $ 17,027 $ - $ 17,027 December 31, 2017 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale portfolio U.S. Government and agency obligations $ - $ 10,470 $ - $ 10,470 Mortgage-backed securities – residential - 7,843 - 7,843 Total available-for-sale securities $ - $ 18,313 $ - $ 18,313 There have been no transfers of assets into or out of any fair value measurement level during the nine months ended September 30, 2018. Required disclosures include fair value information of financial instruments, whether or not recognized in the consolidated statement of condition, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The Company has various processes and controls in place to ensure that fair value is reasonably estimated. The Company performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-ends, and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. FASB ASC Topic 820 for Fair Value Measurements and Disclosures, the financial assets and liabilities were valued at a price that represents the Company’s exit price or the price at which these instruments would be sold or transferred. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The Company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions: Cash, Due from Banks, and Interest Earning Demand Deposits The carrying amounts of these assets approximate their fair values. Investment Securities The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather relying on the securities’ relationship to other benchmark quoted prices and is considered to be a Level 2 measurement. Investment in Restricted Stock The carrying value of restricted stock, which consists of Federal Home Loan Bank and Atlantic Community Bankers Bank, approximates its fair value based on the redemption provisions of the restricted stock, resulting in a Level 2 classification. Loans The fair values of loans held in portfolio are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans, resulting in a Level 3 classification. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Loans held for sale in the secondary market are carried at the lower of cost or fair value, resulting in a Level 2 classification. Separate determinations of fair value for residential and commercial loans are made on an aggregate basis. Fair value is determined based solely on the effect of changes in secondary market interest rates and yield requirements from the commitment date to the date of the financial statements. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and payable approximates fair value. Deposits The fair values disclosed for demand deposits (e.g., NOW accounts, non-interest checking, regular savings and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts), resulting in a Level 1 classification. The carrying amounts for variable-rate certificates of deposit approximate their fair values at the reporting date, resulting in a Level 1 classification. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits, resulting in a Level 2 classification. Borrowings The fair values of FHLB long-term borrowings are estimated using discounted cash flow analyses, based on the quoted rates for new FHLB advances with similar credit risk characteristics, terms and remaining maturity, resulting in a Level 2 classification. The carrying amounts and fair values of the Company’s financial instruments as of the indicated dates are presented in the following table: September 30, 2018 December 31, 2017 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and due from banks 1 $ 1,648 $ 1,648 $ 1,672 $ 1,672 Interest earning demand deposits 1 4,317 4,317 8,725 8,725 Securities - available-for-sale 2 17,027 17,027 18,313 18,313 Securities - held-to-maturity 2 6,335 6,265 6,575 6,588 Investment in restricted stock 2 3,725 3,725 3,270 3,270 Loans held for sale 2 4,662 4,662 2,770 2,770 Loans, net 3 279,065 274,943 262,711 261,588 Accrued interest receivable 1 936 936 824 824 Financial liabilities: Demand Deposits, Savings, NOW and MMDA 1 102,730 102,730 103,377 103,377 Time Deposits 2 116,654 116,657 113,314 113,501 Borrowings 2 73,796 74,348 64,447 64,502 Accrued interest payable 1 156 156 94 94 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Comprehensive Income Loss Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 9: Accumulated Other Comprehensive Income (Loss) Changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of tax, for the periods indicated are summarized in the table below. For the three months ended September 30, 2018 (In thousands) Unrealized Losses on Available-for-Sale Securities Total Beginning balance $ (262 ) $ (262 ) Other comprehensive loss (20 ) (20 ) Ending balance $ (282 ) $ (282 ) For the three months ended September 30, 2017 (In thousands) Unrealized Losses on Total Beginning balance $ (66 ) $ (66 ) Other comprehensive loss (5 ) (5 ) Ending balance $ (71 ) $ (71 ) For the nine months ended September 30, 2018 (In thousands) Unrealized Losses on Total Beginning balance $ (165 ) $ (165 ) Other comprehensive loss (117 ) (117 ) Ending balance $ (282 ) $ (282 ) For the nine months ended September 30, 2017 (In thousands) Unrealized Gains and Losses on Total Beginning balance $ (85 ) $ (85 ) Other comprehensive income 14 14 Ending balance $ (71 ) $ (71 ) |
Non-Interest Income
Non-Interest Income | 9 Months Ended |
Sep. 30, 2018 | |
Noninterest Income, Other [Abstract] | |
Non-Interest Income | Note 10: Non-Interest Income The Company has included the following tables regarding the Company’s non-interest income for the periods presented. For the three For the three months ended months ended (In thousands) September 30, 2018 September 30, 2017 Service fees Deposit related fees 18 20 Insufficient funds fee 20 23 Total service fees 38 43 Fee income Securities commission income 9 23 Insurance commission income 27 11 Total insurance and securities commission income 36 34 Card income Debit card interchange fee income 37 36 ATM fees 9 8 Total card income 46 44 Mortgage fee income and realized gain on sales of loans Residential mortgage loan origination fees 94 144 Commercial loan fees 49 21 Loan servicing income 75 79 Realized gain on sales of residential mortgage loans 461 650 Total mortgage fee income and realized gain on sales of loans 679 894 Bank owned life insurance 16 16 Other miscellaneous income 1 - Total non-interest income $ 816 $ 1,031 For the nine For the nine months ended months ended (In thousands) September 30, 2018 September 30, 2017 Service fees Deposit related fees 45 57 Insufficient funds fee 62 64 Total service fees 107 121 Fee income Securities commission income 36 46 Insurance commission income 73 91 Total insurance and securities commission income 109 137 Card income Debit card interchange fee income 108 101 ATM fees 24 23 Total card income 132 124 Mortgage fee income and realized gain on sales of loans Residential mortgage loan origination fees 262 340 Commercial loan fees 81 40 Loan servicing income 245 233 Realized gain on sales of residential mortgage loans 1,051 1,667 Realized gain on sale of SBA loan 47 - Total mortgage fee income and realized gain on sales of loans 1,686 2,280 Bank owned life insurance 46 47 Other miscellaneous income 19 10 Total non-interest income $ 2,099 $ 2,719 The Company recognizes revenue as it is earned and noted no impact to its revenue recognition policies as a result of the adoption of ASU 2014-09. The following is a discussion of key revenues within the scope of the new revenue guidance: · Service fees – · Fee income – · Card income – · Mortgage fee income and realized gain on sales of loans – |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 11: Stock-Based Compensation On January 5, 2018, a total of 6,400 restricted stock awards were granted to four executive officers of the Company. On July 2, 2018, a total of 2,000 restricted stock awards were granted to one executive officer of the Company. The awards will vest ratably over five years (20% per year for each year of the participant’s service with the Company). The Company has a stock-based compensation plan which allows the Company to issue up to 194,168 stock options. On January 5, 2018, the Board of Directors granted a combined total of 15,000 options to three executive officers to buy stock under the plan at an exercise price of $17.52, the fair value of the stock as of January 5, 2018. On July 2, 2018, the Board of Directors granted a total of 5,000 options to one executive officer to buy stock under the plan at an exercise price of $17.75, the fair value of the stock as of July 2, 2018. These options have a 10-year term and are vested over a five year period (20% per year for each year of the participant’s service with the Company). A summary of the Company’s stock option activity and related information for its option plans for the three and nine months ended September 30, 2018 is as follows: For the three months ended For the nine months ended Options Weighted Average Options Weighted Average Outstanding at beginning of period 167,080 $ 16.79 152,080 $ 16.72 Grants 5,000 17.75 20,000 17.58 Exercised - - - - Outstanding at quarter end 172,080 $ 16.82 172,080 $ 16.82 Exercisable at quarter end - $ - - $ - The Company did not grant any stock options for the three and nine months ended September 30, 2017. The grants to senior management and directors vest over a five year period in equal annual installments, with the first installment vesting on the first anniversary date of the grant and succeeding installments on each anniversary thereafter, through 2023. The compensation expense of the awards is based on the fair value of the instruments on the date of grant. The Company recorded compensation expense in the amount of $79,000 for the three months ended September 30, 2018 and $231,000 for the nine months ended September 30, 2018. The Company did not record any compensation expense for the three and nine months ended September 30, 2017. |
Accounting Policy (Policies)
Accounting Policy (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of FSB Bancorp, Inc. (“FSB Bancorp”), Fairport Savings Bank (the “Bank”), and its other wholly owned subsidiary, Fairport Wealth Management (collectively, the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a complete presentation of consolidated financial condition, results of operations and cash flows in conformity with generally accepted accounting principles. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation, have been included. The results are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or for any future period. The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States and follow practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. Certain policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Estimates, assumptions, and judgments are necessary when assets and liabilities are required to be recorded at fair value or when an asset or liability needs to be recorded contingent upon a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. The fair values and information used to record valuation adjustments for certain assets and liabilities are based on quoted market prices or are provided by other third-party sources, when available. When third party information is not available, valuation adjustments are estimated in good faith by management. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and subsequent updates. This ASU clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that requires an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the guidance effective January 1, 2018 using the modified retrospective method. The Company’s revenue is the sum of net interest income and non-interest income. The scope of the guidance excludes nearly all net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. The Company completed its review and determined that the majority of non-interest income revenue streams are within the scope of the new standard. Non-interest income streams that are out of scope of the new standard include BOLI, sales of investment securities, mortgage banking activities, and certain items within service charges and other income. Management reviewed contracts related to service charges on deposits, investment advisory commissions and fee income, insurance commission and fee income, and certain items within other service charges and other income. The Company evaluated the impact of this ASU on the Company’s various revenue streams and, upon adoption on January 1, 2018 and going forward, does not anticipate a material impact to the consolidated financial statements. The Company has included applicable disclosures regarding revenue recognition within Note 10 of these consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods with those fiscal years. The adoption had no impact on the consolidated financial statements and only impacted fair value measurement disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This new guidance supersedes the lease requirements in Topic 840, Leases and is based on the principle that a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The accounting applied by a lessor is largely unchanged from that applied under the previous guidance. In addition, the guidance requires an entity to separate the lease components from the nonlease components in a contract. The ASU requires disclosures about the amount, timing, and judgments related to a reporting entity's accounting for leases and related cash flows. The standard is required to be applied to all leases in existence as of the date of adoption using a modified retrospective transition approach. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all companies in any interim or annual period. The Company occupies certain offices and uses certain equipment under non-cancelable operating lease agreements, which currently are not reflected in its consolidated statement of condition. The Company expects to recognize lease liabilities and right of use assets associated with these lease agreements; however, the extent of the impact on the Company's consolidated financial statements is currently under evaluation. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326). This new guidance significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace the "incurred loss" model under existing guidance with an "expected loss" model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This guidance requires adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all companies as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact the guidance will have on the Company's consolidated financial statements, and expects an increase in the allowance for credit losses resulting from the change to expected losses for the estimated life of the financial asset, including an allowance for debt securities. The amount of the increase in the allowance for credit losses resulting from the new guidance will be impacted by the portfolio composition and asset quality at the adoption date, as well as economic conditions and forecasts at the time of adoption. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The amendments provide guidance on the following eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company adopted the amendment in this update during the three months ended March 31, 2018 and noted no material impact to the consolidated financial statements. In March 2017, the FASB issued an Update (ASU 2017-08) to its guidance on “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) related to premium amortization on purchased callable debt securities. The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosure about a change in accounting principle. The adoption of this guidance is not expected to have a material impact on our consolidated results of operations or financial position. In May 2018, the FASB issued ASU No. 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued ASU No. 2018-08, Not for Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842. Leases In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements which amends FASB Accounting Standards Codification (ASC) Topic 842, Leases , to (1) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (2) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. This guidance did not change the Company’s assessment of the impact of ASU No. 2016-02 on the consolidated financial statements as described above. In August 2018, the FASB has issued Accounting Standards Update (ASU) No. 2018-15, Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, a consensus of the FASB Emerging Issues Task Force, which amends the FASB Accounting Standards Codification (ASC) to provide guidance on accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement, which provided guidance to customers concerning whether a cloud computing arrangement (e.g., software, platform, or infrastructure offered as a service) includes a software license. Pursuant to that guidance, (1) if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for in a manner consistent with the acquisition of other software licenses, or (2) if the arrangement does not include a software license, then the arrangement should be accounted for as a service contract, with the fees associated with the hosting element (service) of the arrangement expensed as they are incurred. Following the issuance of ASU No. 2015-05, constituents requested that the FASB provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. Accordingly, because United States generally accepted accounting principles (U.S. GAAP) do not contain explicit guidance on accounting for such costs, and to address the resulting diversity in practice, the FASB has issued ASU No. 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Note that the guidance on accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in ASU No. 2018-15. For Public Business Entities, the amended guidance is effective for fiscal years beginning after December 15, 2019 (i.e., calendar-year 2020), and for interim periods within those fiscal years. In October 2018, the FASB issued Accounting Standards Update (ASU) No. 2018-16 , Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes , which adds the SOFR OIS as a benchmark rate that businesses can use to designate hedges of interest rate risk. This update adds to U.S. GAAP a new interest rate from the market for U.S. Treasury repurchase contracts to the list of accepted benchmark rates for hedge accounting. The SOFR is calculated by the Fed based on the interest rates banks charge one another in the overnight market for loans they make to one another, typically called repurchase agreements. In introducing the new rate, the Fed said that because it is based on transactions in the open market, it is more reflective of market conditions than LIBOR, which relies more on judgment. Adding the SOFR OIS as an acceptable hedge accounting benchmark for U.S. GAAP is considered a critical step in helping it gain more acceptance in the market. FASB ASC 815 provides guidance on the risks associated with financial assets or liabilities that are allowed to be hedged. Among those risks is the risk of changes in fair values or cash flows of existing or forecasted issuances or purchases of fixed-rate financial assets or liabilities attributable to a designated benchmark interest rate. U.S. GAAP considers a benchmark rate as a rate that is widely recognized, commonly referenced, and quoted in an active financial market. FASB ASC 815 lists three rates as benchmarks: the rate on direct Treasury obligations of the U.S. government, the Fed Funds Effective Swap Rate (Overnight Index Swap Rate), and the LIBOR swap rate. In 2017, the FASB added a fourth rate, the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate when it published ASU No. 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which made several other changes to simplify hedge accounting and expand its use. The FASB wants businesses and organizations to adopt the amendments in ASU No. 2018-16 at the same time they adopt the changes in ASU No. 2017-12 . For public companies that have adopted ASU No. 2017-12, the new amendments are effective for fiscal years beginning after December 15 and interim periods within those fiscal years. For other companies and organizations that already have adopted ASU No. 2017-12 , the new amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period as long as the company or organization already has adopted the broader 2017 hedge accounting update. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic earnings per share | Three months ended September 30, (In thousands, except per share data) 2018 2017 Basic and Diluted Earnings (Loss) Per Common Share Net income (loss) available to common stockholders $ (50 ) $ 179 Weighted average common shares outstanding 1,911 1,889 Earnings (Loss) per common share – basic and diluted $ (0.03 ) $ 0.09 Nine months ended September 30, (In thousands, except per share data) 2018 2017 Basic and Diluted Earnings Per Common Share Net income available to common stockholders $ 92 $ 398 Weighted average common shares outstanding 1,909 1,900 Earnings per common share – basic and diluted $ 0.05 $ 0.21 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of securities | September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio U.S. Government and agency obligations $ 11,111 $ 7 $ (263 ) $ 10,855 Mortgage-backed securities – residential 6,273 28 (129 ) 6,172 Total available-for-sale $ 17,384 $ 35 $ (392 ) $ 17,027 Held-to-Maturity Portfolio Mortgage-backed securities – residential $ 462 $ 6 $ - $ 468 State and municipal securities 5,873 12 (88 ) 5,797 Total held-to-maturity $ 6,335 $ 18 $ (88 ) $ 6,265 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio U.S. Government and agency obligations $ 10,612 $ - $ (142 ) $ 10,470 Mortgage-backed securities – residential 7,909 19 (85 ) 7,843 Total available-for-sale $ 18,521 $ 19 $ (227 ) $ 18,313 Held-to-Maturity Portfolio Mortgage-backed securities – residential $ 637 $ 9 $ - $ 646 State and municipal securities 5,938 41 (37 ) 5,942 Total held-to-maturity $ 6,575 $ 50 $ (37 ) $ 6,588 |
Schedule of amortized cost and estimated fair value by contractual maturity of debt securities | Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due in one year or less $ - $ - $ 375 $ 375 Due after one year through five years 9,611 9,392 3,941 3,880 Due after five years through ten years 500 497 1,557 1,542 Due after ten years 1,000 966 - - Sub-total $ 11,111 $ 10,855 $ 5,873 $ 5,797 Mortgage-backed securities – residential 6,273 6,172 462 468 Totals $ 17,384 $ 17,027 $ 6,335 $ 6,265 |
Schedule of continuous unrealized loss position for investment securities | September 30, 2018 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale U.S. Government and agency obligations 1 $ 3 $ 497 8 $ 260 $ 9,346 9 $ 263 $ 9,843 Mortgage-backed securities - residential - - - 4 129 3,834 4 129 3,834 Totals 1 $ 3 $ 497 12 $ 389 $ 13,180 13 $ 392 $ 13,677 Held-to-Maturity Mortgage-backed securities – residential (1) - $ - $ - 1 $ - $ 166 1 $ - $ 166 State and municipal securities 9 35 2,748 12 53 1,860 21 88 4,608 Totals 9 $ 35 $ 2,748 13 $ 53 $ 2,026 22 $ 88 $ 4,774 December 31, 2017 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale U.S. Government and agency obligations 4 $ 34 $ 4,472 5 $ 108 $ 5,999 9 $ 142 $ 10,471 Mortgage-backed securities - residential 4 23 2,459 4 62 3,435 8 85 5,894 Totals 8 $ 57 $ 6,931 9 $ 170 $ 9,434 17 $ 227 $ 16,365 Held-to-Maturity Mortgage-backed securities – residential (1) - $ - $ - 1 $ - $ 171 1 $ - $ 171 State and municipal securities 10 16 1,574 5 21 1,331 15 37 2,905 Totals 10 $ 16 $ 1,574 6 $ 21 $ 1,502 16 $ 37 $ 3,076 (1) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of net loans | September 30, December 31, (In thousands) 2018 2017 Real estate loans: Secured by one-to-four family residences $ 219,841 $ 206,894 Secured by multi-family residences 10,337 10,650 Construction 6,277 10,750 Commercial real estate 21,650 14,803 Home equity lines of credit 17,012 17,127 Total real estate loans 275,117 260,224 Commercial and industrial loans 5,399 3,679 Other loans 56 70 Total loans 280,572 263,973 Net deferred loan origination fees (21 ) (1 ) Less allowance for loan losses (1,486 ) (1,261 ) Loans receivable, net $ 279,065 $ 262,711 |
Schedule of risk category of loans by class | As of September 30, 2018 Special (In thousands) Pass Mention Substandard Doubtful Total Real estate loans: Secured by one-to-four family residences $ 216,176 $ 500 $ 3,165 $ - $ 219,841 Secured by multi-family residences 10,337 - - - 10,337 Construction 6,277 - - - 6,277 Commercial real estate 20,462 1,188 - - 21,650 Home equity lines of credit 16,808 - 204 - 17,012 Total real estate loans 270,060 1,688 3,369 - 275,117 Commercial & industrial loans 5,354 - 45 - 5,399 Other loans 56 - - - 56 Total loans $ 275,470 $ 1,688 $ 3,414 $ - $ 280,572 As of December 31, 2017 Special (In thousands) Pass Mention Substandard Doubtful Total Real estate loans: Secured by one-to-four family residences $ 203,815 $ 116 $ 2,963 $ - $ 206,894 Secured by multi-family residences 10,650 - - - 10,650 Construction 10,750 - - - 10,750 Commercial real estate 14,803 - - - 14,803 Home equity lines of credit 16,897 - 230 - 17,127 Total real estate loans 256,915 116 3,193 - 260,224 Commercial & industrial loans 3,679 - - - 3,679 Other loans 70 - - - 70 Total loans $ 260,664 $ 116 $ 3,193 $ - $ 263,973 |
Schedule of age of the loan delinquencies by type and by amount past due | As of September 30, 2018 30-59 Days 60-89 Days Past Due Past Due 90 Days Total Total Loans (In thousands) And Accruing And Accruing and Over Past Due Current Receivable Real estate loans: Secured by one-to-four family residences $ 1,150 $ - $ 55 $ 1,205 $ 218,636 $ 219,841 Secured by multi-family residences - - - - 10,337 10,337 Construction - - - - 6,277 6,277 Commercial - - - - 21,650 21,650 Home equity lines of credit 5 - - 5 17,007 17,012 Total real estate loans 1,155 - 55 1,210 273,907 275,117 Commercial & industrial loans - - 45 45 5,354 5,399 Other loans - - - - 56 56 Total loans $ 1,155 $ - $ 100 $ 1,255 $ 279,317 $ 280,572 As of December 31, 2017 30-59 Days 60-89 Days Past Due Past Due 90 Days Total Total Loans (In thousands) And Accruing And Accruing and Over Past Due Current Receivable Real estate loans: Secured by one-to-four family residences $ 699 $ - $ 153 $ 852 $ 206,042 $ 206,894 Secured by multi-family residences - - - - 10,650 10,650 Construction - - - - 10,750 10,750 Commercial - - - - 14,803 14,803 Home equity lines of credit - - - - 17,127 17,127 Total real estate loans 699 - 153 852 259,372 260,224 Commercial & industrial loans - - - - 3,679 3,679 Other loans - - - - 70 70 Total loans $ 699 $ - $ 153 $ 852 $ 263,121 $ 263,973 |
Allowance for Loan Losses and_2
Allowance for Loan Losses and Foreclosed Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of changes in the allowance for loan losses | For the three months ended September 30, 2018 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 803 $ 78 $ 33 $ 211 $ 103 $ 54 $ 129 $ 1,411 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 85 - (2 ) 53 1 19 (81 ) 75 Ending balance $ 888 $ 78 $ 31 $ 264 $ 104 $ 73 $ 48 $ 1,486 For the three months ended September 30, 2017 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 690 $ 47 $ 49 $ 106 $ 109 $ 38 $ 63 $ 1,102 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 93 18 2 21 2 9 (61 ) 84 Ending balance $ 783 $ 65 $ 51 $ 127 $ 111 $ 47 $ 2 $ 1,186 For the nine months ended September 30, 2018 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 816 $ 80 $ 54 $ 148 $ 107 $ 47 $ 9 $ 1,261 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 72 (2 ) (23 ) 116 (3 ) 26 39 225 Ending balance $ 888 $ 78 $ 31 $ 264 $ 104 $ 73 $ 48 $ 1,486 For the nine months ended September 30, 2017 Secured by Secured by one-to-four multi-family Home equity family residences residences Construction Commercial lines of credit Commercial Other/ (In thousands) real estate loans real estate loans real estate loans real estate loans real estate loans & industrial Unallocated Total Allowance for loan losses: Beginning Balance $ 584 $ 38 $ 31 $ 84 $ 112 $ 28 $ 113 $ 990 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions 199 27 20 43 (1 ) 19 (111 ) 196 Ending balance $ 783 $ 65 $ 51 $ 127 $ 111 $ 47 $ 2 $ 1,186 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | September 30, 2018 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale portfolio U.S. Government and agency obligations $ - $ 10,855 $ - $ 10,855 Mortgage-backed securities – residential - 6,172 - 6,172 Total available-for-sale securities $ - $ 17,027 $ - $ 17,027 December 31, 2017 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale portfolio U.S. Government and agency obligations $ - $ 10,470 $ - $ 10,470 Mortgage-backed securities – residential - 7,843 - 7,843 Total available-for-sale securities $ - $ 18,313 $ - $ 18,313 |
Schedule of carrying amounts and estimated fair values of the financial instruments | September 30, 2018 December 31, 2017 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and due from banks 1 $ 1,648 $ 1,648 $ 1,672 $ 1,672 Interest earning demand deposits 1 4,317 4,317 8,725 8,725 Securities - available-for-sale 2 17,027 17,027 18,313 18,313 Securities - held-to-maturity 2 6,335 6,265 6,575 6,588 Investment in restricted stock 2 3,725 3,725 3,270 3,270 Loans held for sale 2 4,662 4,662 2,770 2,770 Loans, net 3 279,065 274,943 262,711 261,588 Accrued interest receivable 1 936 936 824 824 Financial liabilities: Demand Deposits, Savings, NOW and MMDA 1 102,730 102,730 103,377 103,377 Time Deposits 2 116,654 116,657 113,314 113,501 Borrowings 2 73,796 74,348 64,447 64,502 Accrued interest payable 1 156 156 94 94 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Comprehensive Income Loss Note [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | For the three months ended September 30, 2018 (In thousands) Unrealized Losses on Available-for-Sale Securities Total Beginning balance $ (262 ) $ (262 ) Other comprehensive loss (20 ) (20 ) Ending balance $ (282 ) $ (282 ) For the three months ended September 30, 2017 (In thousands) Unrealized Losses on Total Beginning balance $ (66 ) $ (66 ) Other comprehensive loss (5 ) (5 ) Ending balance $ (71 ) $ (71 ) For the nine months ended September 30, 2018 (In thousands) Unrealized Losses on Total Beginning balance $ (165 ) $ (165 ) Other comprehensive loss (117 ) (117 ) Ending balance $ (282 ) $ (282 ) For the nine months ended September 30, 2017 (In thousands) Unrealized Gains and Losses on Total Beginning balance $ (85 ) $ (85 ) Other comprehensive income 14 14 Ending balance $ (71 ) $ (71 ) |
Non-Interest Income (Tables)
Non-Interest Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noninterest Income, Other [Abstract] | |
Schedule of non-interest income | For the three For the three months ended months ended (In thousands) September 30, 2018 September 30, 2017 Service fees Deposit related fees 18 20 Insufficient funds fee 20 23 Total service fees 38 43 Fee income Securities commission income 9 23 Insurance commission income 27 11 Total insurance and securities commission income 36 34 Card income Debit card interchange fee income 37 36 ATM fees 9 8 Total card income 46 44 Mortgage fee income and realized gain on sales of loans Residential mortgage loan origination fees 94 144 Commercial loan fees 49 21 Loan servicing income 75 79 Realized gain on sales of residential mortgage loans 461 650 Total mortgage fee income and realized gain on sales of loans 679 894 Bank owned life insurance 16 16 Other miscellaneous income 1 - Total non-interest income $ 816 $ 1,031 For the nine For the nine months ended months ended (In thousands) September 30, 2018 September 30, 2017 Service fees Deposit related fees 45 57 Insufficient funds fee 62 64 Total service fees 107 121 Fee income Securities commission income 36 46 Insurance commission income 73 91 Total insurance and securities commission income 109 137 Card income Debit card interchange fee income 108 101 ATM fees 24 23 Total card income 132 124 Mortgage fee income and realized gain on sales of loans Residential mortgage loan origination fees 262 340 Commercial loan fees 81 40 Loan servicing income 245 233 Realized gain on sales of residential mortgage loans 1,051 1,667 Realized gain on sale of SBA loan 47 - Total mortgage fee income and realized gain on sales of loans 1,686 2,280 Bank owned life insurance 46 47 Other miscellaneous income 19 10 Total non-interest income $ 2,099 $ 2,719 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | For the three months ended For the nine months ended Options Weighted Average Options Weighted Average Outstanding at beginning of period 167,080 $ 16.79 152,080 $ 16.72 Grants 5,000 17.75 20,000 17.58 Exercised - - - - Outstanding at quarter end 172,080 $ 16.82 172,080 $ 16.82 Exercisable at quarter end - $ - - $ - |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic and Diluted Earnings Per Common Share | ||||
Basic and Diluted Earnings (Loss) Per Common Share | $ (50) | $ 179 | $ 92 | $ 398 |
Weighted average common shares outstanding | 1,911 | 1,889 | 1,909 | 1,900 |
Earnings (loss) per common share - basic and diluted (in dollars per share) | $ (0.03) | $ 0.09 | $ 0.05 | $ 0.21 |
Earnings per Common Share (De_2
Earnings per Common Share (Detail Textuals) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Stock options grants to senior management and directors | 5,000 | 20,000 |
Restricted stock grants to senior management and directors | 8,400 | |
Grant vesting period | 5 years |
Change in Accounting Estimate (
Change in Accounting Estimate (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Change in Accounting Estimate [Line Items] | ||||
Percentage of valuation percentage lower than against all mortgage loans | 0.25% | |||
Income from continuing operations | $ (59) | $ 277 | $ 116 | $ 543 |
Net Income | $ (50) | $ 179 | $ 92 | $ 398 |
Net income per share (in dollars per share) | $ (0.03) | $ 0.09 | $ 0.05 | $ 0.21 |
Change in Accounting Estimate | ||||
Change in Accounting Estimate [Line Items] | ||||
Income from continuing operations | $ 159 | |||
Net Income | $ 126 | |||
Net income per share (in dollars per share) | $ 0.07 | $ 0.06 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 17,384 | $ 18,521 |
Gross Unrealized Gains | 35 | 19 |
Gross unrealized Losses | (392) | (227) |
Fair Value | 17,027 | 18,313 |
U.S. Government and agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,111 | 10,612 |
Gross Unrealized Gains | 7 | 0 |
Gross unrealized Losses | (263) | (142) |
Fair Value | 10,855 | 10,470 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,273 | 7,909 |
Gross Unrealized Gains | 28 | 19 |
Gross unrealized Losses | (129) | (85) |
Fair Value | $ 6,172 | $ 7,843 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 6,335 | $ 6,575 |
Gross Unrealized Gains | 18 | 50 |
Gross unrealized Losses | (88) | (37) |
Fair Value | 6,265 | 6,588 |
Mortgage-backed securities - residential | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 462 | 637 |
Gross Unrealized Gains | 6 | 9 |
Gross unrealized Losses | 0 | 0 |
Fair Value | 468 | 646 |
State and municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5,873 | 5,938 |
Gross Unrealized Gains | 12 | 41 |
Gross unrealized Losses | (88) | (37) |
Fair Value | $ 5,797 | $ 5,942 |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 9,611 | |
Due after five years through ten years | 500 | |
Due after ten years | 1,000 | |
Sub-total | 11,111 | |
Totals | 17,384 | $ 18,521 |
Fair Value Available-for-Sale | ||
Due in one year or less | 0 | |
Due after one year through five years | 9,392 | |
Due after five years through ten years | 497 | |
Due after ten years | 966 | |
Sub-total | 10,855 | |
Totals | 17,027 | 18,313 |
Mortgage-backed securities - residential | ||
Available-for-Sale Amortized Cost | ||
Totals | 6,273 | 7,909 |
Fair Value Available-for-Sale | ||
Totals | $ 6,172 | $ 7,843 |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Held-to-Maturity Amortized Cost | ||
Due in one year or less | $ 375 | |
Due after one year through five years | 3,941 | |
Due after five years through ten years | 1,557 | |
Due after ten years | 0 | |
Sub-total | 5,873 | |
Securities - held-to-maturity | 6,335 | $ 6,575 |
Held-to-Maturity Fair Value | ||
Due in one year or less | 375 | |
Due after one year through five years | 3,880 | |
Due after five years through ten years | 1,542 | |
Due after ten years | 0 | |
Sub-total | 5,797 | |
Fair Value | 6,265 | 6,588 |
Mortgage-backed securities - residential | ||
Held-to-Maturity Amortized Cost | ||
Securities - held-to-maturity | 462 | 637 |
Held-to-Maturity Fair Value | ||
Fair Value | $ 468 | $ 646 |
Investment Securities (Detail_4
Investment Securities (Details 4) $ in Thousands | Sep. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Available-For-Sale Securities [Abstract] | ||
Less than Twelve Months Number of individual securities | Security | 1 | 8 |
Less than Twelve Months, unrealized losses | $ 3 | $ 57 |
Less than Twelve Months, fair value | $ 497 | $ 6,931 |
Twelve Months or More Number of individual securities | Security | 12 | 9 |
Twelve Months or More, unrealized losses | $ 389 | $ 170 |
Twelve Months or More, fair value | $ 13,180 | $ 9,434 |
Total Number of Individual Securities | Security | 13 | 17 |
Total Unrealized Losses | $ 392 | $ 227 |
Total Fair Value | $ 13,677 | $ 16,365 |
U.S. Government and agency obligations | ||
Available-For-Sale Securities [Abstract] | ||
Less than Twelve Months Number of individual securities | Security | 1 | 4 |
Less than Twelve Months, unrealized losses | $ 3 | $ 34 |
Less than Twelve Months, fair value | $ 497 | $ 4,472 |
Twelve Months or More Number of individual securities | Security | 8 | 5 |
Twelve Months or More, unrealized losses | $ 260 | $ 108 |
Twelve Months or More, fair value | $ 9,346 | $ 5,999 |
Total Number of Individual Securities | Security | 9 | 9 |
Total Unrealized Losses | $ 263 | $ 142 |
Total Fair Value | $ 9,843 | $ 10,471 |
Mortgage-backed securities - residential | ||
Available-For-Sale Securities [Abstract] | ||
Less than Twelve Months Number of individual securities | Security | 0 | 4 |
Less than Twelve Months, unrealized losses | $ 0 | $ 23 |
Less than Twelve Months, fair value | $ 0 | $ 2,459 |
Twelve Months or More Number of individual securities | Security | 4 | 4 |
Twelve Months or More, unrealized losses | $ 129 | $ 62 |
Twelve Months or More, fair value | $ 3,834 | $ 3,435 |
Total Number of Individual Securities | Security | 4 | 8 |
Total Unrealized Losses | $ 129 | $ 85 |
Total Fair Value | $ 3,834 | $ 5,894 |
Investment Securities (Detail_5
Investment Securities (Details 5) $ in Thousands | Sep. 30, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities | |
Held-to-maturity Securities [Abstract] | |||
Less than Twelve Months Number of individual securities | Securities | 9 | 10 | |
Less than Twelve Months, Unrealized Losses | $ 35 | $ 16 | |
Less than Twelve Months, Fair Value | $ 2,748 | $ 1,574 | |
Twelve Months or More Number of individual securities | Securities | 13 | 6 | |
Twelve Months or More, Unrealized Losses | $ 53 | $ 21 | |
Twelve Months or More, Fair Value | $ 2,026 | $ 1,502 | |
Total Number of Individual Securities | Securities | 22 | 16 | |
Total Unrealized Losses | $ 88 | $ 37 | |
Fair Value | $ 4,774 | $ 3,076 | |
Mortgage-backed securities - residential | |||
Held-to-maturity Securities [Abstract] | |||
Less than Twelve Months Number of individual securities | Securities | [1] | 0 | 0 |
Less than Twelve Months, Unrealized Losses | [1] | $ 0 | $ 0 |
Less than Twelve Months, Fair Value | [1] | $ 0 | $ 0 |
Twelve Months or More Number of individual securities | Securities | [1] | 1 | 1 |
Twelve Months or More, Unrealized Losses | [1] | $ 0 | $ 0 |
Twelve Months or More, Fair Value | [1] | $ 166 | $ 171 |
Total Number of Individual Securities | Securities | [1] | 1 | 1 |
Total Unrealized Losses | [1] | $ 0 | $ 0 |
Fair Value | [1] | $ 166 | $ 171 |
State and municipal securities | |||
Held-to-maturity Securities [Abstract] | |||
Less than Twelve Months Number of individual securities | Securities | 9 | 10 | |
Less than Twelve Months, Unrealized Losses | $ 35 | $ 16 | |
Less than Twelve Months, Fair Value | $ 2,748 | $ 1,574 | |
Twelve Months or More Number of individual securities | Securities | 12 | 5 | |
Twelve Months or More, Unrealized Losses | $ 53 | $ 21 | |
Twelve Months or More, Fair Value | $ 1,860 | $ 1,331 | |
Total Number of Individual Securities | Securities | 21 | 15 | |
Total Unrealized Losses | $ 88 | $ 37 | |
Fair Value | $ 4,608 | $ 2,905 | |
[1] | Aggregate unrealized loss position of these securities is less than $500. |
Investment Securities (Detail T
Investment Securities (Detail Textuals) $ in Thousands | Sep. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Number of securities in unrealized loss position | 35 | 33 |
Number of securities in unrealized loss position in for greater than twelve months | 25 | 15 |
Number of securities in unrealized loss position in for less than twelve months | 10 | 18 |
Aggregate unrealized loss position of the securities | $ | $ 4,774 | $ 3,076 |
Maximum [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Aggregate unrealized loss position of the securities | $ | $ 500 | 500 |
Mortgage-backed securities - residential | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Number of securities in unrealized loss position in for greater than twelve months | 13 | |
Number of securities in unrealized loss position in for less than twelve months | 1 | |
State and political subdivisions | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Number of securities in unrealized loss position in for greater than twelve months | 12 | |
Number of securities in unrealized loss position in for less than twelve months | 9 | |
Aggregate unrealized loss position of the securities | $ | $ 4,608 | $ 2,905 |
Loans - Major classifications o
Loans - Major classifications of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 280,572 | $ 263,973 | ||||
Net deferred loan origination costs | (21) | (1) | ||||
Less: Allowance for loan losses | (1,486) | $ (1,411) | (1,261) | $ (1,186) | $ (1,102) | $ (990) |
Loans receivable, net | 279,065 | 262,711 | ||||
Real estate loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 275,117 | 260,224 | ||||
Real estate loans | Secured by one-to-four family residences | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 219,841 | 206,894 | ||||
Less: Allowance for loan losses | (888) | (803) | (816) | (783) | (690) | (584) |
Real estate loans | Secured by multi-family residences | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 10,337 | 10,650 | ||||
Less: Allowance for loan losses | (78) | (78) | (80) | (65) | (47) | (38) |
Real estate loans | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 6,277 | 10,750 | ||||
Less: Allowance for loan losses | (31) | (33) | (54) | (51) | (49) | (31) |
Real estate loans | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 21,650 | 14,803 | ||||
Less: Allowance for loan losses | (264) | (211) | (148) | (127) | (106) | (84) |
Real estate loans | Home equity lines of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 17,012 | 17,127 | ||||
Less: Allowance for loan losses | (104) | (103) | (107) | (111) | (109) | (112) |
Other Loans Portfolio Segment | Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 5,399 | 3,679 | ||||
Less: Allowance for loan losses | (73) | (54) | (47) | (47) | (38) | (28) |
Other Loans Portfolio Segment | Other loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 56 | 70 | ||||
Less: Allowance for loan losses | $ (48) | $ (129) | $ (9) | $ (2) | $ (63) | $ (113) |
Loans - Risk category of loans
Loans - Risk category of loans by class (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 280,572 | $ 263,973 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 275,470 | 260,664 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,688 | 116 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,414 | 3,193 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Commercial & industrial loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 275,117 | 260,224 |
Real estate loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 270,060 | 256,915 |
Real estate loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,688 | 116 |
Real estate loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,369 | 3,193 |
Real estate loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Secured by one-to-four family residences | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 219,841 | 206,894 |
Real estate loans | Secured by one-to-four family residences | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 216,176 | 203,815 |
Real estate loans | Secured by one-to-four family residences | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 500 | 116 |
Real estate loans | Secured by one-to-four family residences | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,165 | 2,963 |
Real estate loans | Secured by one-to-four family residences | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Secured by multi-family residences | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,337 | 10,650 |
Real estate loans | Secured by multi-family residences | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,337 | 10,650 |
Real estate loans | Secured by multi-family residences | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Secured by multi-family residences | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Secured by multi-family residences | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,277 | 10,750 |
Real estate loans | Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,277 | 10,750 |
Real estate loans | Construction | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Construction | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Construction | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 21,650 | 14,803 |
Real estate loans | Commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 20,462 | 14,803 |
Real estate loans | Commercial real estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,188 | 0 |
Real estate loans | Commercial real estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Commercial real estate | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 17,012 | 17,127 |
Real estate loans | Home equity lines of credit | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 16,808 | 16,897 |
Real estate loans | Home equity lines of credit | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Real estate loans | Home equity lines of credit | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 204 | 230 |
Real estate loans | Home equity lines of credit | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Other Loans Portfolio Segment | Commercial & industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,399 | 3,679 |
Other Loans Portfolio Segment | Commercial & industrial loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,354 | 3,679 |
Other Loans Portfolio Segment | Commercial & industrial loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Other Loans Portfolio Segment | Commercial & industrial loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 45 | 0 |
Other Loans Portfolio Segment | Commercial & industrial loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Other Loans Portfolio Segment | Other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 56 | 70 |
Other Loans Portfolio Segment | Other loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 56 | 70 |
Other Loans Portfolio Segment | Other loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Other Loans Portfolio Segment | Other loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Other Loans Portfolio Segment | Other loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans - Analysis of the age of
Loans - Analysis of the age of the loan delinquencies by type and by amount past due (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,255 | $ 852 |
Current | 279,317 | 263,121 |
Loans | 280,572 | 263,973 |
30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,155 | 699 |
60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 100 | 153 |
Real estate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,210 | 852 |
Current | 273,907 | 259,372 |
Loans | 275,117 | 260,224 |
Real estate loans | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,155 | 699 |
Real estate loans | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 55 | 153 |
Real estate loans | Secured by one-to-four family residences | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,205 | 852 |
Current | 218,636 | 206,042 |
Loans | 219,841 | 206,894 |
Real estate loans | Secured by one-to-four family residences | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,150 | 699 |
Real estate loans | Secured by one-to-four family residences | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Secured by one-to-four family residences | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 55 | 153 |
Real estate loans | Secured by multi-family residences | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 10,337 | 10,650 |
Loans | 10,337 | 10,650 |
Real estate loans | Secured by multi-family residences | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Secured by multi-family residences | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Secured by multi-family residences | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 6,277 | 10,750 |
Loans | 6,277 | 10,750 |
Real estate loans | Construction | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Construction | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Construction | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 21,650 | 14,803 |
Loans | 21,650 | 14,803 |
Real estate loans | Commercial | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Commercial | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Commercial | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 0 |
Current | 17,007 | 17,127 |
Loans | 17,012 | 17,127 |
Real estate loans | Home equity lines of credit | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 0 |
Real estate loans | Home equity lines of credit | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Home equity lines of credit | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other Loans Portfolio Segment | Commercial & industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 45 | 0 |
Current | 5,354 | 3,679 |
Loans | 5,399 | 3,679 |
Other Loans Portfolio Segment | Commercial & industrial loans | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other Loans Portfolio Segment | Commercial & industrial loans | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other Loans Portfolio Segment | Commercial & industrial loans | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 45 | 0 |
Other Loans Portfolio Segment | Other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 56 | 70 |
Loans | 56 | 70 |
Other Loans Portfolio Segment | Other loans | 30-59 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other Loans Portfolio Segment | Other loans | 60-89 Days Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other Loans Portfolio Segment | Other loans | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans (Detail Textuals)
Loans (Detail Textuals) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)Loans | Dec. 31, 2017USD ($)Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 126,500 | $ 132,400 |
Loans | 280,572 | 263,973 |
Total Past Due | 1,255 | 852 |
30-59 Days Past Due And Accruing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,155 | 699 |
90 Days and Over | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 100 | 153 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,414 | 3,193 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,688 | 116 |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value of loans pledged as collateral | $ 194,900 | $ 190,400 |
Number of nonaccrual loans | Loans | 1 | 2 |
Financing receivable, recorded Investment, nonaccrual status | $ 55 | $ 153 |
Number of loans paying as agreed | Loans | 6 | |
Number of loans payoffs | Loans | 3 | |
Number of loans newly categorized | Loans | 10 | |
Additional number of loans | Loans | 3 | |
Number of Loans partially payoffs offset | Loans | 2 | |
Residential mortgage loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans paying as agreed | Loans | 1 | |
Number of loans newly categorized | Loans | 1 | |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of nonaccrual loans | Loans | 1 | |
Financing receivable, recorded Investment, nonaccrual status | $ 45 | |
Commercial and industrial loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 0 | |
Amount of loan increased | 45 | |
Number of loans newly categorized | Loans | 1 | |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 275,117 | 260,224 |
Total Past Due | 1,210 | 852 |
Real estate loans | 30-59 Days Past Due And Accruing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,155 | 699 |
Real estate loans | 90 Days and Over | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 55 | 153 |
Real estate loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,369 | 3,193 |
Real estate loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,688 | 116 |
Real estate loans | Secured by one-to-four family residences | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 219,841 | 206,894 |
Total Past Due | 1,205 | 852 |
Real estate loans | Secured by one-to-four family residences | 30-59 Days Past Due And Accruing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of loan increased | $ 451 | |
Percentage of loan Increased | 64.50% | |
Total Past Due | $ 1,150 | 699 |
Real estate loans | Secured by one-to-four family residences | 90 Days and Over | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 55 | 153 |
Real estate loans | Secured by one-to-four family residences | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,165 | 2,963 |
Amount of loan increased | $ 202 | |
Percentage of loan Increased | 6.80% | |
Real estate loans | Secured by one-to-four family residences | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 500 | 116 |
Amount of loan increased | $ 384 | |
Percentage of loan Increased | 330.20% | |
Real estate loans | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 21,650 | 14,803 |
Total Past Due | 0 | 0 |
Real estate loans | Commercial | 30-59 Days Past Due And Accruing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Commercial | 90 Days and Over | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate loans | Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,188 | 0 |
Amount of loan increased | 1,200 | |
Number of loans newly categorized | Loans | 3 | |
Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of mortgage servicing rights | $ 848 | $ 892 |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Foreclosed Real Estate - Allowance for loan losses allocated by loan class and the activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | $ 1,411 | $ 1,102 | $ 1,261 | $ 990 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | 75 | 84 | 225 | 196 |
Ending balance | 1,486 | 1,186 | 1,486 | 1,186 |
Real estate loans | Secured by one-to-four family residences | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 803 | 690 | 816 | 584 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | 85 | 93 | 72 | 199 |
Ending balance | 888 | 783 | 888 | 783 |
Real estate loans | Secured by multi-family residences | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 78 | 47 | 80 | 38 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | 0 | 18 | (2) | 27 |
Ending balance | 78 | 65 | 78 | 65 |
Real estate loans | Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 33 | 49 | 54 | 31 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | (2) | 2 | (23) | 20 |
Ending balance | 31 | 51 | 31 | 51 |
Real estate loans | Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 211 | 106 | 148 | 84 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | 53 | 21 | 116 | 43 |
Ending balance | 264 | 127 | 264 | 127 |
Real estate loans | Home equity lines of credit | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 103 | 109 | 107 | 112 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | 1 | 2 | (3) | (1) |
Ending balance | 104 | 111 | 104 | 111 |
Other Loans Portfolio Segment | Commercial & industrial loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 54 | 38 | 47 | 28 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | 19 | 9 | 26 | 19 |
Ending balance | 73 | 47 | 73 | 47 |
Other Loans Portfolio Segment | Other/Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 129 | 63 | 9 | 113 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions | (81) | (61) | 39 | (111) |
Ending balance | $ 48 | $ 2 | $ 48 | $ 2 |
Allowance for Loan Losses and_4
Allowance for Loan Losses and Foreclosed Real Estate (Detail Textuals) - Real estate loans $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)Loans | Dec. 31, 2017USD ($)Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | Loans | 1 | 1 |
Value of loan in process of foreclosure | $ | $ 55,000 | $ 37,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale Portfolio | ||
Securities available for sale | $ 17,027 | $ 18,313 |
Fair Value | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 17,027 | 18,313 |
Fair Value, Measurements, Recurring | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 17,027 | 18,313 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 10,855 | 10,470 |
Fair Value, Measurements, Recurring | Mortgage-backed securities - residential | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 6,172 | 7,843 |
Fair Value, Measurements, Recurring | Level 1 | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Government and agency obligations | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Mortgage-backed securities - residential | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 17,027 | 18,313 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Government and agency obligations | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 10,855 | 10,470 |
Fair Value, Measurements, Recurring | Level 2 | Mortgage-backed securities - residential | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 6,172 | 7,843 |
Fair Value, Measurements, Recurring | Level 3 | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Government and agency obligations | ||
Available-for-Sale Portfolio | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage-backed securities - residential | ||
Available-for-Sale Portfolio | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying amounts and estimated fair values of the financial instruments (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Interest earning demand deposits | $ 4,317 | $ 8,725 |
Securities - available-for-sale | 17,027 | 18,313 |
Securities - held-to-maturity | 6,335 | 6,575 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 1,648 | 1,672 |
Interest earning demand deposits | 4,317 | 8,725 |
Securities - available-for-sale | 17,027 | 18,313 |
Securities - held-to-maturity | 6,335 | 6,575 |
Investment in restricted stock | 3,725 | 3,270 |
Loans held for sale | 4,662 | 2,770 |
Loans, net | 279,065 | 262,711 |
Accrued interest receivable | 936 | 824 |
Financial liabilities: | ||
Demand Deposits, Savings, NOW and MMDA | 102,730 | 103,377 |
Time Deposits | 116,654 | 113,314 |
Borrowings | 73,796 | 64,447 |
Accrued interest payable | 156 | 94 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 1,648 | 1,672 |
Interest earning demand deposits | 4,317 | 8,725 |
Securities - available-for-sale | 17,027 | 18,313 |
Securities - held-to-maturity | 6,265 | 6,588 |
Investment in restricted stock | 3,725 | 3,270 |
Loans held for sale | 4,662 | 2,770 |
Loans, net | 274,943 | 261,588 |
Accrued interest receivable | 936 | 824 |
Financial liabilities: | ||
Demand Deposits, Savings, NOW and MMDA | 102,730 | 103,377 |
Time Deposits | 116,657 | 113,501 |
Borrowings | 74,348 | 64,502 |
Accrued interest payable | $ 156 | $ 94 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Unrealized Gains and Losses on Available-for-Sale Securities, Beginning balance | $ (262) | $ (66) | $ (165) | $ (85) |
Unrealized Gains and Losses on Available-for-Sale Securities, Other comprehensive (loss) income | (20) | (5) | (117) | 14 |
Unrealized Gains and Losses on Available-for-Sale Securities, Ending balance | (282) | (71) | (282) | (71) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | (262) | (66) | (165) | (85) |
Other comprehensive (loss) income | (20) | (5) | (117) | 14 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | $ (282) | $ (71) | $ (282) | $ (71) |
Non-Interest Income (Details)
Non-Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Mortgage fee income and realized gain on sales of loans | ||||
Commercial loan fees | $ 49 | $ 21 | $ 81 | $ 40 |
Loan servicing income | 75 | 79 | 245 | 233 |
Realized gain on sales of residential mortgage loans | 461 | 650 | 1,051 | 1,667 |
Realized gain on sale of SBA loan | 47 | 0 | ||
Total mortgage fee income and realized gain on sales of loans | 679 | 894 | 1,686 | 2,280 |
Bank Owned Life Insurance Income | 16 | 16 | 46 | 47 |
Other miscellaneous income | 1 | 0 | 19 | 10 |
Noninterest Income | 816 | 1,031 | 2,099 | 2,719 |
Service | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 38 | 43 | 107 | 121 |
Financial Service | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 36 | 34 | 109 | 137 |
Deposit related fees | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 18 | 20 | 45 | 57 |
Insufficient funds fee | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 20 | 23 | 62 | 64 |
Service fees | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 38 | 43 | 107 | 121 |
Securities commission income | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 9 | 23 | 36 | 46 |
Insurance commission income | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 27 | 11 | 73 | 91 |
Fee income | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 36 | 34 | 109 | 137 |
Residential mortgage loan origination fees | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 94 | 144 | 262 | 340 |
Card income | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 46 | 44 | 132 | 124 |
Debit card interchange fee income | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | 37 | 36 | 108 | 101 |
ATM fees | ||||
Mortgage fee income and realized gain on sales of loans | ||||
Total insurance and securities commission income | $ 9 | $ 8 | $ 24 | $ 23 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | Sep. 30, 2018$ / sharesshares | |
Options | ||
Outstanding at beginning of year | shares | 167,080 | 152,080 |
Grants | shares | 5,000 | 20,000 |
Exercised | shares | 0 | 0 |
Outstanding at quarter end | shares | 172,080 | 172,080 |
Exercisable at quarter end | shares | 0 | 0 |
Weighted Average Exercise Price Per Share | ||
Outstanding at beginning of year | $ / shares | $ 16.79 | $ 16.72 |
Grants | $ / shares | 17.75 | 17.58 |
Exercised | $ / shares | 0 | 0 |
Outstanding at quarter end | $ / shares | 16.82 | 16.82 |
Exercisable at quarter end | $ / shares | $ 0 | $ 0 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Detail Textuals) | Jul. 02, 2018Executiveofficer$ / sharesshares | Jan. 05, 2018Executiveofficer$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares |
Defined Benefit Plan Disclosure [Line Items] | ||||
Restricted stock grants to senior management and directors | 8,400 | |||
Share based payment award, vesting period | 5 years | |||
Stock options grants to senior management and directors | 5,000 | 20,000 | ||
Stock option exercise price | $ / shares | $ 17.75 | $ 17.58 | ||
Compensation expense | $ | $ 79,000 | $ 231,000 | ||
Restricted stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Restricted stock grants to senior management and directors | 2,000 | 6,400 | ||
Number of executive officer | Executiveofficer | 1 | 4 | ||
Share based payment award, vesting period | 5 years | 5 years | ||
Percentage of share base payment award | 20.00% | 20.00% | ||
Stock option | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of executive officer | Executiveofficer | 1 | 3 | ||
Share based payment award, vesting period | 5 years | 5 years | ||
Percentage of share base payment award | 20.00% | 20.00% | ||
Issuance of stock options | 194,168 | |||
Stock options grants to senior management and directors | 5,000 | 15,000 | ||
Stock option exercise price | $ / shares | $ 17.75 | $ 17.52 | ||
Term of option | 10 years | 10 years | ||
Senior management and directors | Stock option | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Share based payment award, vesting period | 5 years |