Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May 13, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WCF Bancorp, Inc. | |
Entity Central Index Key | 1,667,944 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 9,161,895 | $ 8,866,561 |
Time deposits in other financial institutions | 2,310,000 | 2,950,111 |
Securities available-for-sale, at fair value | 37,010,304 | 36,525,732 |
Loans receivable, net | 58,042,216 | 57,380,062 |
Federal Home Loan Bank (FHLB) stock, at cost | 454,800 | 452,700 |
Bankers' Bank stock, at cost | 147,500 | 147,500 |
Office property and equipment, net | 4,494,804 | 4,570,371 |
Deferred taxes on income | 528,732 | 486,849 |
Income taxes receivable | 32,519 | 0 |
Accrued interest receivable | 439,103 | 407,975 |
Goodwill | 55,148 | 55,148 |
Prepaid expenses and other assets | 1,056,928 | 1,072,915 |
Total assets | 113,733,949 | 112,915,924 |
Liabilities and Stockholders' Equity | ||
Deposits | 89,650,370 | 88,079,831 |
FHLB advances | 8,000,000 | 8,000,000 |
Advance payments by borrowers for taxes and insurance | 229,228 | 431,090 |
Accrued interest payable | 87,787 | 9,008 |
Accrued expenses and other liabilities | 1,664,574 | 1,812,853 |
Total liabilities | $ 99,631,959 | $ 98,332,782 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.10 par value. Authorized 10,000,000 shares; issued none | $ 0 | $ 0 |
Common stock, $0.10 par value. Authorized 20,000,000 shares; 4,334,478 and 3,019,005 issued and outstanding at March 31, 2016 and December 31, 2015 | 433,448 | 433,448 |
Additional paid-in capital | 9,174,169 | 9,633,893 |
Retained earnings, substantially restricted | 16,551,544 | 16,635,039 |
Accumulated other comprehensive income | 155,244 | 93,177 |
Treasury stock, 1,315,473 shares at March 31, 2016 and December 31, 2015, at cost | (12,212,415) | (12,212,415) |
Total stockholders' equity | 14,101,990 | 14,583,142 |
Total liabilities and stockholders' equity | $ 113,733,949 | $ 112,915,924 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.10 | $ 0.1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 4,334,478 | 4,334,478 |
Common stock, shares outstanding | 3,019,005 | 3,019,005 |
Treasury stock, shares | 1,315,473 | 1,315,473 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Loans receivable | $ 720,638 | $ 714,048 |
Investment securities - taxable | 81,486 | 120,351 |
Investment securities - tax exempt | 108,300 | 93,442 |
Other interest earning assets | 14,395 | 15,774 |
Total interest income | 924,819 | 943,615 |
Interest expense: | ||
Deposits | 145,175 | 145,660 |
FHLB advances | 19,224 | 9,124 |
Total interest expense | 164,399 | 154,784 |
Net interest income | 760,420 | 788,831 |
Provision for losses on loans | 0 | 40,000 |
Net interest income after provision for losses on loans | 760,420 | 748,831 |
Noninterest income: | ||
Fees and service charges | 79,353 | 64,834 |
Gains on sale of securities available-for-sale, net | 15,247 | 172,972 |
Total noninterest income | 94,600 | 237,806 |
Noninterest expense: | ||
Compensation, payroll taxes, and employee benefits | 342,157 | 311,811 |
Advertising | 13,687 | 16,536 |
Office property and equipment | 138,005 | 75,071 |
Federal insurance premiums | 17,206 | 16,988 |
Data processing services | 102,369 | 93,668 |
Other real estate expenses, net | 2,712 | 464 |
Dues and subscriptions | 14,905 | 23,528 |
Accounting, regulatory and professional fees | 75,711 | 52,231 |
Debit card expenses | 14,190 | 12,602 |
Other expenses | 95,774 | 66,493 |
Total noninterest expense | 816,716 | 669,392 |
Earnings before taxes on income | 38,304 | 317,245 |
Tax (benefit) expense | (29,152) | 92,248 |
Net income | $ 67,456 | $ 224,997 |
Basic/diluted earnings per common share (in usd per share) | $ 0.02 | $ 0.07 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 67,456 | $ 224,997 |
Other comprehensive income (loss): | ||
Net change in unrealized gain on securities | 112,079 | 36,460 |
Reclassification adjustment for net gain realized in net income | (15,247) | (172,972) |
Tax (expense) benefit | (34,765) | 46,336 |
Other comprehensive income (loss) | 62,067 | (90,176) |
Comprehensive income | $ 129,523 | $ 134,821 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock |
Balance at Dec. 31, 2014 | $ 14,822,478 | $ 433,448 | $ 9,689,603 | $ 16,664,227 | $ 214,517 | $ (12,179,317) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 224,997 | 224,997 | ||||
Other comprehensive (loss) income | (90,176) | (90,176) | ||||
Balance at Mar. 31, 2015 | 14,957,299 | 433,448 | 9,689,603 | 16,889,224 | 124,341 | (12,179,317) |
Balance at Dec. 31, 2015 | 14,583,142 | 433,448 | 9,633,893 | 16,635,039 | 93,177 | (12,212,415) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 67,456 | 67,456 | ||||
Other comprehensive (loss) income | 62,067 | 62,067 | ||||
Stock offering costs | (459,724) | (459,724) | ||||
Dividends paid on common stock, $0.05 per common share | (150,951) | (150,951) | ||||
Balance at Mar. 31, 2016 | $ 14,101,990 | $ 433,448 | $ 9,174,169 | $ 16,551,544 | $ 155,244 | $ (12,212,415) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 67,456 | $ 224,997 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 188,554 | 110,786 |
Provision for losses on loans | 0 | 40,000 |
Deferred taxes on income | (76,761) | 60,168 |
Gain on sales of securities | (15,247) | (172,972) |
Gain on sales of one-to-four family residential loans | (3,062) | (1,833) |
Proceeds from sales of one-to-four family residential loans | 344,637 | 431,082 |
Originations of one-to-four family residential loans | (341,575) | (429,249) |
Change in: | ||
Accrued interest receivable | (31,128) | (1,653) |
Prepaid expenses and other assets | 15,987 | 12,199 |
Advance payments by borrowers for taxes and insurance | (201,862) | (161,754) |
Accrued interest payable | 78,779 | 85,935 |
Accrued expenses and other liabilities | (148,279) | (792,330) |
Income tax receivable | (32,519) | (25,942) |
Net cash used in operating activities | (155,020) | (620,566) |
Cash flows from investing activities: | ||
Proceeds from maturity of time deposits in other financial institutions | 885,111 | 1,440,000 |
Purchase of time deposits in other financial institutions | (245,000) | (4,019,000) |
Proceeds from calls and maturities of investment securities available-for-sale | 1,508,425 | 1,474,401 |
Proceeds from sale of investment securities available-for-sale | 7,141,396 | 9,565,403 |
Purchase of investment securities available-for-sale | (9,122,371) | (8,852,343) |
Net change in loans receivable | (662,154) | (85,403) |
Net change in FHLB stock | (2,100) | 900 |
Purchase of office property and equipment | (12,817) | (389,638) |
Net cash used in investing activities | (509,510) | (865,680) |
Cash flows from financing activities: | ||
Net change in deposits | 1,570,539 | 691,889 |
Dividends paid | (150,951) | 0 |
Stock offering costs | (459,724) | 0 |
Net cash provided by financing activities | 959,864 | 691,889 |
Net increase (decrease) in cash and cash equivalents | 295,334 | (794,357) |
Cash and cash equivalents at beginning of quarter | 8,866,561 | 4,039,704 |
Cash and cash equivalents at end of quarter | 9,161,895 | 3,245,347 |
Supplemental disclosures of cash flow information: | ||
Interest | 85,620 | 68,849 |
Taxes on income | $ 3,367 | $ 118,190 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of Webster City Federal Bancorp (the Company), and its wholly owned subsidiary WCF Financial Bank (the Bank), and Webster City Federal Service Corp, have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with SEC rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended December 31, 2015 . The consolidated balance sheet of the Company as of December 31, 2015 , has been derived from the audited consolidated balance sheet of the company as of the that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from the estimates. For further information with respect to significant accounting policies followed by the Company in preparation of the financial statements, refer to the Company’s annual report for the year ended December 31, 2015 . The Bank is a federally chartered stock savings bank and a member of the Federal Home Loan Bank (“FHLB”) system. The Bank maintains insurance on deposits accounts with the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). Investment Securities Investment securities are classified based on the Company’s intended holding period. Securities that may be sold prior to maturity to meet liquidity needs, to respond to market changes, or to adjust the Company’s asset‑liability position are classified as available‑for‑sale. Currently, all securities are classified as available-for-sale. Securities available‑for‑sale are carried at fair value, with the aggregate unrealized gains or losses, net of the effect of taxes on income, reported as accumulated other comprehensive income or loss. Other‑than‑temporary impairment is recorded in net income. The Company’s net income reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value), if any, on debt securities that the Company intends to sell, or would more likely than not be required to sell, before the expected recovery of the amortized cost basis. For available‑for‑sale debt securities that management has no intent to sell, and believes that it will not more likely than not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in net income, while the rest of the fair value loss is recognized in other comprehensive income. The credit loss component recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected using the Company’s cash flow projections using its base assumptions. A decline in the fair value of any available‑for‑sale security below cost and that is deemed to be other‑than‑temporary results in an impairment to reduce the carrying amount by fair value for the credit portion of the loss. The impairment is charged to net income and a new cost basis for the security is established. To determine whether an impairment is other than temporary, the Company considers whether it has the ability to hold and lack of intent to sell the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year‑end, and the general market conditions. Net realized gains or losses are shown in the consolidated statements of comprehensive income in the noninterest income line using the specific‑identification method. Net realized gains of $15,247 and $172,972 were recorded for the three months ended March 31, 2016 and 2015 , respectively. Loans Receivable, Net Loans receivable are stated at the amount of unpaid principal, reduced by the allowance for loan losses, deferred loan fees and discounts on loans purchased. Loans receivable are charged against the allowance when management believes collectability of principal is unlikely. Interest on loans receivable is accrued and credited to operations based primarily on the principal amount outstanding. Certain loan balances include unearned discounts, which are recorded as income over the term of the loan. Accrued interest receivable on loans receivable that become more than 90 days in arrears is charged to an allowance that is established by a charge to interest income. Interest income is subsequently recognized only to the extent cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is reasonably assured, in which case the loan is returned to accrual status. Under the Company’s credit policies, commercial loans are considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate except, where more practical, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. Allowance for Loan Losses The allowance for loan losses is based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is appropriate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, the composition of the loan portfolio, value of underlying collateral, and management’s estimate of probable credit losses. Taxes on Income Deferred income taxes are provided under the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest and penalties on unrecognized tax benefits are classified as other noninterest expense. Regulatory Environment The Company is subject to regulations of certain state and federal agencies, including periodic examinations by those regulatory agencies. The Company and the Bank are also subject to minimum regulatory capital requirements. At March 31, 2016 and December 31, 2015 , capital levels exceeded minimum capital requirements. Investment in Affiliate The Company records its investment in an affiliate, New Castle Players, LLC, in which it has a 27.17% interest using the equity method of accounting. The affiliate holds an investment in a local hotel in Webster City, Iowa. The Company records the value of its investment at year‑end based on the affiliate’s financial statements on a one-month lag. The investment in affiliate is analyzed annually. If impairment is determined to be other than temporary, the carrying amount is written down to fair value. The investment is included as a component of prepaid expenses and other assets on the consolidated balance sheets, while the equity income earned is included as a component of other noninterest expense on the consolidated statements of income. Summary unaudited financial information of the affiliate as of and for the three months ended March 31, 2016 and 2015 is presented below: March 31, 2016 March 31, 2015 Current assets $ 164,173 $ 81,134 Long-term assets 1,710,228 1,766,545 Current liabilities 75,247 82,476 Long-term liabilities — 27,510 Total equity 1,799,154 1,737,693 Total revenue 170,493 169,199 Net loss (1,508 ) (4,710 ) Earnings per Common Share The calculation of earnings per common share and diluted earnings per common share for the periods ended March 31, 2016 and March 31, 2015 is presented below. March 31, 2016 March 31, 2015 Net income $ 67,456 $ 224,997 Weighted average common shares and diluted common shares outstanding 3,019,005 3,023,360 Basic earnings per common share $ 0.02 $ 0.07 Diluted earnings per common share $ 0.02 $ 0.07 Subsequent Events The Company has evaluated subsequent events through June 23, 2016, which is the date the consolidated financial statements were issued. There are no subsequent events requiring recognition or disclosure in the consolidated financial statements as noted by the Company. Stock Conversion On March 3, 2016, the boards of directors of the MHC, the Company and the Bank adopted a Plan of Conversion. Pursuant to the Plan of Conversion, the MHC will convert from the mutual holding company form of organization to the fully public form. The MHC will be merged into the Company, and the MHC will no longer exist. The Company will then merge into a new Iowa corporation named WCF Bancorp, Inc. As part of the conversion, the MHC’s ownership interest in the Company will be offered for sale in a public offering. The existing publicly held shares of the Company, which represent the remaining ownership interest in the Company, will be exchanged for new shares of common stock of WCF Bancorp, Inc., the new Iowa corporation. The exchange ratio will ensure that immediately after the conversion and public offering, the public shareholders of the Company will own the same aggregate percentage of common stock of the new Iowa corporation that they owned immediately prior to the completion of the conversion and public offering (excluding shares purchased in the stock offering, cash received in lieu of fractional shares and as adjusted to reflect assets held by the MHC). When the conversion and public offering are completed, all of the capital stock of the Bank will be owned by the new Iowa corporation. The Plan of Conversion provides for the establishment, upon the completion of the conversion, of special “liquidation accounts” for the benefit of certain depositors of the Bank in an amount equal to the MHC’s ownership interest in the equity of the Company as of the date of the latest balance sheet contained in the prospectus plus the value of the net assets of the MHC as of the date of the latest statement of financial condition of the MHC prior to the consummation of the conversion (excluding its ownership of the Company). Neither the Company nor the Bank may declare or pay a cash dividend on, or repurchase any of, its capital stock if the effect thereof would cause its equity to be reduced below: (i) the amount required for the Liquidation Account or the Bank Liquidation Account, as applicable; or (ii) the regulatory capital requirements of the Company (to the extent applicable) or the Bank. Direct costs of the conversion and public offering will be deferred and reduce the proceeds from the shares sold in the public offering. Through March 31, 2016 , the Company had incurred approximately $515,434 in total conversion and offering costs, which are included in Stockholders’ Equity in the consolidated balance sheet. Current Accounting Developments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update simplifies the presentation of debt issuance costs by requiring the debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2015, and is to be applied retrospectively. The Company has determined that this guidance will not have a material impact on the Company’s 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 Financial Liabilities. The update enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by updating certain aspects or recognition, measurement, presentation and disclosure of financial instruments. Among other changes, the update includes requiring changes in fair value of equity securities with readily determinable fair value to be recognized in net income and clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with entities other deferred tax assets. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017, and is to be applied on a modified retrospective basis. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit L osses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is in contrast to existing guidance whereby credit losses generally are not recognized until they are incurred. For public companies, this update will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. |
Securities Available-for-Sale
Securities Available-for-Sale | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | Securities Available-for-Sale Securities available-for-sale at March 31, 2016 and December 31, 2015 were as follows: Description Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2016: Mortgage-backed securities $ 18,835,509 $ 13,728 $ 93,399 $ 18,755,838 Municipal bonds 17,375,372 360,409 36,605 17,699,176 Corporate bonds 551,623 3,667 — 555,290 $ 36,762,504 $ 377,804 $ 130,004 $ 37,010,304 December 31, 2015: Mortgage-backed securities $ 17,522,971 $ 12,167 $ 179,583 $ 17,355,555 Municipal bonds 18,300,293 336,817 23,862 18,613,248 Corporate bonds 551,500 5,429 — 556,929 $ 36,374,764 $ 354,413 $ 203,445 $ 36,525,732 The amortized cost and estimated fair value of securities available-for-sale at March 31, 2016 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2016 Amortized cost Fair value Due in one year or less $ 445,122 $ 446,913 Due after one year through five years 3,052,054 3,105,240 Due after five years, but less than ten years 10,594,333 10,884,324 Due after ten years 3,835,486 3,817,989 Mortgage-backed securities 18,835,509 18,755,838 $ 36,762,504 $ 37,010,304 The details of the sales of investment securities for the periods ended March 31, 2016 and 2015 are summarized in the following table. March 31, 2016 March 31, 2015 Proceeds from sales $ 7,141,396 $ 9,565,403 Gross gains on sales 50,200 192,489 Gross losses on sales 34,953 19,517 At March 31, 2016 and December 31, 2015 , accrued interest receivable for securities available-for-sale totaled $219,031 and $189,862 , respectively. The following tables show the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015 . March 31, 2016 Up to 12 months Greater than 12 months Fair value Gross unrealized loss Fair value Gross unrealized loss Mortgage-backed securities $ 10,669,259 $ 70,570 $ 2,297,880 $ 22,829 Municipal bonds 1,511,820 22,954 1,180,108 13,651 Total $ 12,181,079 $ 93,524 $ 3,477,988 $ 36,480 December 31, 2015 Up to 12 months Greater than 12 months Fair value Gross unrealized loss Fair value Gross unrealized loss Mortgage-backed securities $ 13,669,247 $ 157,996 $ 1,390,849 $ 21,587 Municipal bonds 2,549,250 23,862 — — Total $ 16,218,497 $ 181,858 $ 1,390,849 $ 21,587 The Company’s assessment of other‑than‑temporary impairment is based on its reasonable judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers factual information, including expected cash flows, the structure of the security, the credit quality of the underlying assets, and the current and anticipated market conditions. The Company does not intend to sell its available-for-sale investment securities and it is not likely that the Company will be required to sell them before the recovery of its cost. Due to the issuers’ continued satisfactions of their obligations under the securities in accordance with their contractual terms and the expectation that they will continue to do so, and management’s intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in fair value, the Company believes that the investment securities identified in the tables above were temporarily depressed as of March 31, 2016 and December 31, 2015 . |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable At March 31, 2016 and December 31, 2015 , loans receivable consisted of the following segments: March 31, 2016 December 31, 2015 Loans: One-to-four family residential $ 46,410,737 $ 46,510,605 Non-owner occupied one-to-four family residential 4,112,774 4,030,249 Commercial real estate 3,055,097 2,974,668 Consumer 5,126,633 4,542,892 Total loans receivable 58,705,241 58,058,414 Discounts on loans purchased (77,857 ) (84,907 ) Deferred loan costs (fees) (83,603 ) (88,267 ) Allowance for loan losses (501,565 ) (505,178 ) $ 58,042,216 $ 57,380,062 Accrued interest receivable on loans receivable was $214,537 and $218,113 at March 31, 2016 and December 31, 2015 , respectively. The loan portfolio included approximately $43.1 million and $42.9 million of fixed rate loans and approximately $15.6 million and $15.2 million of variable rate loans as of March 31, 2016 and December 31, 2015 , respectively. The Company originates residential, commercial real estate loans and other consumer loans, primarily in its Hamilton County, and Buchanan County, Iowa market areas and their adjacent counties. A substantial portion of its borrowers’ ability to repay their loans is dependent upon economic conditions in the Company’s market area. Allowance for Loan Losses The following tables present the balance in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2016 and December 31, 2015 . March 31, 2016 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 344,708 45,125 35,961 75,771 501,565 Total $ 344,708 $ 45,125 $ 35,961 $ 75,771 $ 501,565 Loans receivable: Individually evaluated for impairment $ — $ — $ 297,538 $ — $ 297,538 Collectively evaluated for impairment 46,410,737 4,112,774 2,757,559 5,126,633 58,407,703 Total $ 46,410,737 $ 4,112,774 $ 3,055,097 $ 5,126,633 $ 58,705,241 December 31, 2015 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 366,858 44,510 32,443 61,367 505,178 Total $ 366,858 $ 44,510 $ 32,443 $ 61,367 $ 505,178 Loans receivable: Individually evaluated for impairment $ — $ — $ 302,412 $ — $ 302,412 Collectively evaluated for impairment 46,510,605 4,030,249 2,672,256 4,542,892 57,756,002 Total $ 46,510,605 $ 4,030,249 $ 2,974,668 $ 4,542,892 $ 58,058,414 Activity in the allowance for loan losses by segment for the periods ended March 31, 2016 and 2015 is summarized in the following tables: Allowance for loan losses activity March 31, 2016 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 366,858 $ — $ — $ (22,150 ) $ 344,708 Non-owner occupied one-to-four family residential 44,510 — — 615 45,125 Commercial real estate 32,443 — — 3,518 35,961 Consumer 61,367 3,613 — 18,017 75,771 Total $ 505,178 $ 3,613 $ — $ — $ 501,565 Allowance for loan losses activity March 31, 2015 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 300,654 $ 25,605 $ — $ 25,037 $ 300,086 Non-owner occupied one-to-four family residential 26,949 — — 1,884 28,833 Commercial real estate 15,192 — — 3,026 18,218 Consumer 17,907 2,132 — 10,053 25,828 Total $ 360,702 $ 27,737 $ — $ 40,000 $ 372,965 (a) Loan Portfolio Segment Risk Characteristics One-to-four family residential : The Company generally retains most residential mortgage loans that are originated for its own portfolio. The market value of real estate securing residential real estate loans can fluctuate as a result of market conditions in the geographic area in which the real estate is located. Adverse developments affecting real estate values in the Company’s market could increase credit risk associated with its loan portfolio. Additionally, real estate lending typically involves large loan principal amounts and the repayment of the loans generally is dependent, in large part, on the borrower’s continuing financial stability, and is therefore more likely to be affected by adverse personal circumstances. Non-owner occupied one-to-four family residential: The Company originates fixed-rate and adjustable-rate loans secured by non-owner occupied one-to-four family properties. These loans may have a term of up to 20 years . Generally the Bank will lend up to 75% of the property’s appraised value. Appraised values are determined by an outside independent appraiser. In deciding to originate a loan secured by a non-owner occupied one-to-four family residential property, management reviews the creditworthiness of the borrower and the expected cash flows from the property securing the loan, the cash flow requirements of the borrower and the value of the property securing the loan. This segment is generally secured by one-to-four family properties. Commercial real estate: On a very limited basis, the Company originates fixed-rate and adjustable-rate commercial real estate and land loans. These loans may have a term of up to 20 years . Generally the Bank will lend up to 75% of the property’s appraised value. Appraised values are determined by an outside independent appraiser. In recent years, the Company has significantly reduced the emphasis on these types of loans and does not intend to emphasize these types of loans in the future. This segment is generally secured by retail, industrial, service or other commercial properties and loans secured by raw land, including timber. Consumer : Consumer loans typically have shorter terms, lower balances, higher yields, and higher rates of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and are therefore more likely to be affected by adverse personal circumstances. This segment consists mainly of loans collateralized by automobiles. The collateral securing these loans, may depreciate over time, may be difficult to recover and may fluctuate in value based on condition. (b) Charge‑off Policy The Company requires a loan to be at least partially charged off as soon as it becomes apparent that some loss will be incurred, or when its collectability is sufficiently questionable that it no longer is considered a bankable asset. The primary considerations when determining if and how much of a loan should be charged off are as follows: (1) the potential for future cash flows; (2) the value of any collateral; and (3) the strength of any co-makers or guarantors. (c) Troubled Debt Restructurings (TDR) All loans deemed troubled debt restructurings, or “TDR”, are considered impaired, and are evaluated for collateral sufficiency. A loan is considered a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Bank would not otherwise consider. There were no new troubled debt restructurings in the first three months of 2016. (d) Loans Measured Individually for Impairment Loans that are deemed to be impaired are reserved for with the necessary allocation. All loans deemed troubled debt restructurings are considered impaired. Generally loans for 1-4 family residential and consumer are collectively evaluated for impairment. (e) Loans Measured Collectively for Impairment All loans not evaluated individually for impairment are grouped together by type and further segmented by risk classification. The Company’s historical loss experiences for each portfolio segment are calculated using the three‑year average loss rate for estimating losses adjusted for qualitative factors. The qualitative factors consider economic and business conditions, changes in nature and volume of the loan portfolio, concentrations, collateral values, level and trends in delinquencies, external factors, lending policies, experience of lending staff, and monitoring of credit quality. The following tables set forth the composition of each class of the Company’s loans by internally assigned credit quality indicators. Pass Special mention/watch Substandard Doubtful Total March 31, 2016: Loans One-to-four family residential $ 44,688,673 $ 1,570,169 $ 151,895 $ — $ 46,410,737 Non-owner occupied one-to-four family residential 4,112,774 — — — 4,112,774 Commercial real estate 2,757,559 — 297,538 — 3,055,097 Consumer 4,992,461 134,172 — — 5,126,633 Total $ 56,551,467 $ 1,704,341 $ 449,433 $ — $ 58,705,241 Pass Special mention/watch Substandard Doubtful Total December 31, 2015: Loans One-to-four family residential $ 44,448,707 $ 1,876,618 $ 185,280 $ — $ 46,510,605 Non-owner occupied one-to-four family residential 4,030,249 — — — 4,030,249 Commercial real estate 2,672,256 — 302,412 — 2,974,668 Consumer 4,416,516 126,376 — — 4,542,892 Total $ 55,567,728 $ 2,002,994 $ 487,692 $ — $ 58,058,414 Special Mention/Watch – Loans classified as special mention/watch are assets that do not warrant adverse classification but possess credit deficiencies or potential weakness deserving close attention. Substandard – Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable, and improbable. The Company had one impaired loan as of March 31, 2016 and December 31, 2015 . No interest income was recorded on impaired loans during 2016 or 2015 . (f) Nonaccrual and Delinquent Loans Loans are placed on nonaccrual status when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more (unless the loan is well secured with marketable collateral). A nonaccrual asset may be restored to an accrual status when all past‑due principal and interest has been paid and the borrower has demonstrated satisfactory payment performance (excluding renewals and modifications that involve the capitalizing of interest). Delinquency status of a loan is determined by the number of days that have elapsed past the loan’s payment due date, using the following classification groupings: 30‑59 days, 60‑89 days, and 90 days or more. Loans shown in the 30‑59 day’s and 60‑89 day’s columns in the table below reflect contractual delinquency status only, and include loans considered nonperforming due to classification as a TDR or being placed on nonaccrual. The following tables set forth the composition of the Company’s past‑due loans at March 31, 2016 and December 31, 2015 . 30-59 days 60-89 days 90 days Total Current Total loans receivable Recorded investment > 90 days and accruing March 31, 2016: Loans One-to-four family residential $ 753,129 $ 391,806 $ 425,234 $ 1,570,169 $ 44,840,568 $ 46,410,737 $ 425,234 Non-owner occupied one-to-four family residential — — — — 4,112,774 4,112,774 — Commercial real estate — — — — 3,055,097 3,055,097 — Consumer 91,868 15,055 27,250 134,173 4,992,460 5,126,633 27,250 Total $ 844,997 $ 406,861 $ 452,484 $ 1,704,342 $ 57,000,899 $ 58,705,241 $ 452,484 December 31, 2015: Loans One-to-four family residential $ 1,148,965 $ 288,087 $ 460,485 $ 1,897,537 $ 44,613,068 $ 46,510,605 $ 275,205 Non-owner occupied one-to-four family residential — — — — 4,030,249 4,030,249 — Commercial real estate — — 302,412 302,412 2,672,256 2,974,668 — Consumer 54,592 44,988 26,796 126,376 4,416,516 4,542,892 26,796 Total $ 1,203,557 $ 333,075 $ 789,693 $ 2,326,325 $ 55,732,089 $ 58,058,414 $ 302,001 The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of March 31, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 Loans One-to-four family residential $ 151,895 $ 185,280 Non-owner occupied one-to-four family residential — — Commercial real estate 297,538 302,412 Consumer — — Total $ 449,433 $ 487,692 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits At March 31, 2016 and December 31, 2015 , deposits are summarized as follows: March 31, 2016 December 31, 2015 Statement savings $ 11,706,203 $ 11,163,443 Money market plus 11,183,953 11,688,644 NOW 19,488,530 18,968,879 Certificates of deposit 47,271,684 46,258,865 $ 89,650,370 $ 88,079,831 Included in the NOW accounts were approximately $4.7 million of non-interest bearing deposits as of March 31, 2016 and December 31, 2015 , respectively. |
Taxes on Income
Taxes on Income | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income Taxes on income comprise the following: March 31, 2016 Federal State Total Current $ 9,889 $ (41 ) $ 9,848 Deferred (40,000 ) 1,000 (39,000 ) $ (30,111 ) $ 959 $ (29,152 ) December 31, 2015 Federal State Total Current $ 77,564 $ 34,941 $ 112,505 Deferred (67,975 ) (15,000 ) (82,975 ) $ 9,589 $ 19,941 $ 29,530 Taxes on income differ from the amounts computed by applying the federal income tax rate of 34% to earnings before taxes on income for the following reasons, expressed in dollars: March 31, 2016 December 31, 2015 Federal tax at statutory rate $ 13,023 $ 143,954 Items affecting federal income tax rate: State taxes on income, net of federal benefit 633 13,161 Tax-exempt income (42,777 ) (144,001 ) Building donation 101 (21,611 ) Valuation allowance (146 ) 49,000 Other 14 (10,973 ) $ (29,152 ) $ 29,530 Federal income tax expense for the periods ended March 31, 2016 and December 31, 2015 was computed using the consolidated effective federal tax rate. The Company also recognized income tax expense pertaining to state franchise taxes payable individually by the Bank. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at March 31, 2016 and December 31, 2015 are presented below: March 31, 2016 December 31, 2015 Deferred tax assets: Deferred directors’ fees $ 353,000 $ 369,000 Allowance for loan losses 187,000 188,000 AMT credit 48,000 62,000 Charitable contribution 62,000 81,000 Other 37,000 34,000 Gross deferred tax assets 687,000 734,000 Valuation allowance (49,000 ) (49,000 ) Net deferred tax assets 638,000 685,000 Deferred tax liabilities: Securities (10,268 ) (57,058 ) Prepaid expenses (18,000 ) (18,000 ) FHLB stock dividends (38,000 ) (38,000 ) Fixed assets (16,000 ) (19,000 ) Intangible assets (27,000 ) (28,000 ) Other — (38,093 ) Gross deferred tax liabilities (109,268 ) (198,151 ) Net deferred tax assets $ 528,732 $ 486,849 Based upon the Company’s level of historical taxable income and anticipated future taxable income over the periods that the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. No valuation allowance was required for deferred tax assets at March 31, 2016 and December 31, 2015 , except for a valuation allowance related to the charitable contribution carryforward. The valuation allowance increased by $49,000 during 2015 due to the charitable contribution carryforward. The charitable contribution expires if not used by 2020 . As of December 31, 2015 , the Company had no material unrecognized tax benefits. The evaluation was performed for those tax years that remain open to audit. The Company files a consolidated tax return for federal purposes and separate tax returns for the State of Iowa purposes. Under previous law, the provisions of the IRS and similar sections of Iowa law permitted the Bank to deduct from taxable income an allowance for bad debts based on 8% of taxable income before such deduction or actual loss experience. Legislation passed in 1996 eliminated the percentage of taxable income method as an option for computing bad debt deductions for 1996 and in future years. Deferred taxes have been provided for the difference between tax bad debt reserves and the loan loss allowances recorded in the financial statements subsequent to December 31, 1987. However, at March 31, 2016 and December 31, 2015 , retained earnings contain certain historical additions to bad debt reserves for income tax purposes of approximately $2,134,000 as of December 31, 1987, for which no deferred taxes have been provided because the Bank does not intend to use these reserves for purposes other than to absorb losses. If these amounts which qualified as bad debt deductions are used for purposes other than to absorb bad debt losses or adjustments arising from the carryback of net operating losses, income taxes may be imposed at the then-existing rates. The approximate amount of unrecognized tax liability associated with these historical additions is $800,000 . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Common Stock Repurchase The Company repurchased no shares during the three months ended March 31, 2016 and 2015 . (b) Regulatory Capital Requirements The Company and WCF Financial Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements (as shown in the following table) can result in certain mandatory and possibly additional discretionary actions by regulators which, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and WCF Financial Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and WCF Financial Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believes the Company and WCF Financial Bank met all capital adequacy requirements to which they were subject as of December 31, 2015 and 2014. The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of March 31, 2016 and December 31, 2015 (dollars in thousands). March 31, 2016 For capital adequacy To be well-capitalized under with capital conservation prompt corrective action Actual buffer purposes provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 13,883 12.3 % $ 4,507 4.00 % N/A N/A WCF Financial Bank 13,112 11.7 4,481 4.00 5,602 5.0 % Common Equity Tier 1: Consolidated 13,883 27.8 2,563 5.125 3,251 6.5 WCF Financial Bank 13,112 26.5 2,535 5.125 3,215 6.5 Risk-based capital: Consolidated 14,385 28.8 4,314 8.625 5,001 10.0 WCF Financial Bank 13,614 27.5 4,266 8.625 4,946 10.0 Tier 1 risk-based capital: Consolidated 13,883 27.8 3,313 6.625 4,001 8.0 WCF Financial Bank 13,112 26.5 3,277 6.625 3,957 8.0 December 31, 2015 To be well-capitalized under For capital adequacy prompt corrective action Actual purposes provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 14,428 13.5 % $ 4,289 4.0 % N/A N/A WCF Financial Bank 13,024 12.3 4,257 4.0 5,321 5.0 % Common Equity Tier 1: Consolidated 14,428 29.3 4,825 4.5 6,970 6.5 WCF Financial Bank 13,024 26.8 4,789 4.5 6,918 6.5 Risk-based capital: Consolidated 14,933 30.3 3,938 8.0 4,923 10.0 WCF Financial Bank 13,529 27.8 3,896 8.0 4,869 10.0 Tier 1 risk-based capital: Consolidated 14,428 29.3 2,954 6.0 3,938 8.0 WCF Financial Bank 13,024 26.8 2,922 6.0 3,896 8.0 In July 2013, the Federal Reserve Board and the OCC issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revised minimum capital requirements and adjusted prompt corrective action thresholds. The final rules revised the regulatory capital elements, added a new common equity Tier 1 capital ratio, increased the minimum Tier 1 capital ratio requirement, and implemented a new capital conservation buffer. The rules also permitted certain banking organizations to retain, through a one-time election, the existing treatment for AOCI. The Company and WCF Financial Bank made the election to retain the existing treatment, which excludes AOCI from regulatory capital amounts. The final rules took effect for the Company and WCF Financial Bank on January 1, 2015, subject to a transition period for certain parts of the rules. Beginning in 2016, an additional capital conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer will be fully phased-in on January 1, 2019 at 2.50 percent. A banking organization with a conservation buffer of less than 2.50 percent (or the required phase-in amount in years prior to 2019) will be subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. As of December 31, 2015 , the ratios for the Company and WCF Financial Bank were sufficient to meet the fully phased-in conservation buffer. (c) Dividends and Restrictions Thereon The Company declared and paid a $.05 dividend in the first quarter of 2016 and did no t pay a dividend in the first quarter of 2015 . Federal regulations impose certain limitations on the payment of dividends and other capital distributions by the Bank. Under the regulations, a savings institution, such as the Bank, that will meet the fully phased‑in capital requirements (as defined by the OCC regulations) subsequent to a capital distribution is generally permitted to make such capital distribution without OCC approval so long as they have not been notified of the need for more than normal supervision by the OCC. The Bank has not been so notified and, therefore, may make capital distributions during the calendar year equal to net income plus 50% of the amount by which the Bank’s capital exceeds the fully phased‑in capital requirement as measured at the beginning of the calendar year. A savings institution with total capital in excess of current minimum capital requirements but not in excess of the fully phased‑in requirements is permitted by the new regulations to make, without OCC approval, capital distributions of between 25% and 75% of its net income for the previous four quarters, less dividends already paid for such period. A savings institution that fails to meet current minimum capital requirements is prohibited from making any capital distributions without prior approval from the OCC. On February 26, 2015, WCF Financial Bank paid a dividend of $1.0 million to Webster City Federal Bancorp, with approval from the OCC. Such approval was not required since the bank meets current minimum capital requirements. The funds were to be used to pay dividends and the future repurchase of stock. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement , defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset of liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. ASC 820 requires the use of valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and liabilities carried at fair value. • Cash and cash equivalents and time deposits in other financial institutions . The carrying amount is a reasonable estimate of fair value. • Securities available-for-sale . Investment securities classified as available‑for‑sale are reported at fair value on a recurring basis. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. • Loans receivable . The Company does not record loans at fair value on a recurring basis. For variable‑rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are determined using estimated future cash flows, discounted at the interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. The Company does record nonrecurring fair value adjustments to loans to reflect (1) partial write‑downs to collateral value or (2) the establishment of specific loan reserves that are based on the observable market price of the loan or the appraised of the collateral. These loans are classified as Level 3. • Bankers’ Bank and Federal Home Loan Bank (FHLB) stock . The value of Bankers’ Bank and FHLB stock is equivalent to its carrying value because the stock is redeemable at par value. • Accrued interest receivable and accrued interest payable . The recorded amount of accrued interest receivable and accrued interest payable approximates fair value as a result of the short‑term nature of the instruments. • Deposits . The fair value of deposits with no stated maturity, such as passbook, money market, noninterest‑bearing checking, and NOW accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low‑cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. • FHLB advances . The fair value of the FHLB advances is based on the discounted value of the cash flows. The discount rate is estimated using the rates currently offered for fixed‑rate advances of similar remaining maturities. The following tables summarize financial assets measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 , segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. The Company has no liabilities measured at fair value in the consolidated balance sheets. March 31, 2016 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value Mortgage-backed securities* $ — $ 18,755,838 $ — $ 18,755,838 Municipal bonds — 17,699,176 — 17,699,176 Corporate bonds 52,757 502,533 — 555,290 Total $ 52,757 $ 36,957,547 $ — $ 37,010,304 December 31, 2015 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value Mortgage-backed securities* $ — $ 17,355,555 $ — $ 17,355,555 Municipal bonds — 18,613,248 — 18,613,248 Corporate bonds 52,139 504,790 — 556,929 Total $ 52,139 $ 36,473,593 $ — $ 36,525,732 *All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans. There have been no changes in valuation methodologies at March 31, 2016 compared to December 31, 2015 and there were no transfers between levels during the periods ended March 31, 2016 and December 31, 2015 . The Company is required to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These adjustments to fair value usually result from application of lower‑of‑cost or fair value accounting or write‑downs of individual assets. As of March 31, 2016 and December 31, 2015 , the Company did not have any material assets measured at fair value on a nonrecurring basis. The estimated fair values of Company’s financial instruments (as described in note 1) at March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 December 31, 2015 Fair value Carrying Approximate Carrying Approximate hierarchy amount fair value amount fair value Financial assets: Cash and cash equivalents Level 1 $ 9,161,895 $ 9,161,895 $ 8,866,561 $ 8,866,561 Time deposits in other Level 1 financial institutions 2,310,000 2,310,000 2,950,111 2,950,111 Securities available for sale See previous table 37,010,304 37,010,304 36,525,732 36,525,732 Loans receivable, net Level 2 58,042,216 59,551,314 57,380,062 58,900,634 FHLB stock Level 1 454,800 454,800 452,700 452,700 Bankers’ Bank stock Level 1 147,500 147,500 147,500 147,500 Accrued interest receivable Level 1 439,103 439,103 407,975 407,975 Financial liabilities: Deposits Level 2 89,650,370 87,063,353 88,079,831 85,208,429 FHLB Level 2 8,000,000 8,003,000 8,000,000 8,003,000 Accrued interest payable Level 1 87,787 87,787 9,008 9,008 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved with various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. The financial instruments include commitments to extend credit of approximately $132,000 and $250,000 as of March 31, 2016 and December 31, 2015 , respectively. These commitments expire one year from origination and are both fixed and adjustable interest rates ranging from 3.89% to 6.00% . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of Webster City Federal Bancorp (the Company), and its wholly owned subsidiary WCF Financial Bank (the Bank), and Webster City Federal Service Corp, have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with SEC rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended December 31, 2015 . The consolidated balance sheet of the Company as of December 31, 2015 , has been derived from the audited consolidated balance sheet of the company as of the that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. |
Use of Estimates | In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from the estimates. |
Investment Securities | Investment securities are classified based on the Company’s intended holding period. Securities that may be sold prior to maturity to meet liquidity needs, to respond to market changes, or to adjust the Company’s asset‑liability position are classified as available‑for‑sale. Currently, all securities are classified as available-for-sale. Securities available‑for‑sale are carried at fair value, with the aggregate unrealized gains or losses, net of the effect of taxes on income, reported as accumulated other comprehensive income or loss. Other‑than‑temporary impairment is recorded in net income. The Company’s net income reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value), if any, on debt securities that the Company intends to sell, or would more likely than not be required to sell, before the expected recovery of the amortized cost basis. For available‑for‑sale debt securities that management has no intent to sell, and believes that it will not more likely than not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in net income, while the rest of the fair value loss is recognized in other comprehensive income. The credit loss component recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected using the Company’s cash flow projections using its base assumptions. A decline in the fair value of any available‑for‑sale security below cost and that is deemed to be other‑than‑temporary results in an impairment to reduce the carrying amount by fair value for the credit portion of the loss. The impairment is charged to net income and a new cost basis for the security is established. To determine whether an impairment is other than temporary, the Company considers whether it has the ability to hold and lack of intent to sell the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year‑end, and the general market conditions. |
Loans Receivable, Net | Loans receivable are stated at the amount of unpaid principal, reduced by the allowance for loan losses, deferred loan fees and discounts on loans purchased. Loans receivable are charged against the allowance when management believes collectability of principal is unlikely. Interest on loans receivable is accrued and credited to operations based primarily on the principal amount outstanding. Certain loan balances include unearned discounts, which are recorded as income over the term of the loan. Accrued interest receivable on loans receivable that become more than 90 days in arrears is charged to an allowance that is established by a charge to interest income. Interest income is subsequently recognized only to the extent cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is reasonably assured, in which case the loan is returned to accrual status. Under the Company’s credit policies, commercial loans are considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate except, where more practical, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. |
Allowance for Loan Losses | The allowance for loan losses is based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is appropriate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, the composition of the loan portfolio, value of underlying collateral, and management’s estimate of probable credit losses. |
Taxes on Income | Deferred income taxes are provided under the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest and penalties on unrecognized tax benefits are classified as other noninterest expense. |
Investment in Affiliate | The Company records its investment in an affiliate, New Castle Players, LLC, in which it has a 27.17% interest using the equity method of accounting. The affiliate holds an investment in a local hotel in Webster City, Iowa. The Company records the value of its investment at year‑end based on the affiliate’s financial statements on a one-month lag. The investment in affiliate is analyzed annually. If impairment is determined to be other than temporary, the carrying amount is written down to fair value. The investment is included as a component of prepaid expenses and other assets on the consolidated balance sheets, while the equity income earned is included as a component of other noninterest expense on the consolidated statements of income. |
Subsequent Events | The Company has evaluated subsequent events through June 23, 2016, which is the date the consolidated financial statements were issued. There are no subsequent events requiring recognition or disclosure in the consolidated financial statements as noted by the Company. |
Current Accounting Developments | In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update simplifies the presentation of debt issuance costs by requiring the debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2015, and is to be applied retrospectively. The Company has determined that this guidance will not have a material impact on the Company’s 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 Financial Liabilities. The update enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by updating certain aspects or recognition, measurement, presentation and disclosure of financial instruments. Among other changes, the update includes requiring changes in fair value of equity securities with readily determinable fair value to be recognized in net income and clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with entities other deferred tax assets. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017, and is to be applied on a modified retrospective basis. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit L osses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is in contrast to existing guidance whereby credit losses generally are not recognized until they are incurred. For public companies, this update will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Equity Method Investments | Summary unaudited financial information of the affiliate as of and for the three months ended March 31, 2016 and 2015 is presented below: March 31, 2016 March 31, 2015 Current assets $ 164,173 $ 81,134 Long-term assets 1,710,228 1,766,545 Current liabilities 75,247 82,476 Long-term liabilities — 27,510 Total equity 1,799,154 1,737,693 Total revenue 170,493 169,199 Net loss (1,508 ) (4,710 ) |
Schedule of Earnings Per Share | The calculation of earnings per common share and diluted earnings per common share for the periods ended March 31, 2016 and March 31, 2015 is presented below. March 31, 2016 March 31, 2015 Net income $ 67,456 $ 224,997 Weighted average common shares and diluted common shares outstanding 3,019,005 3,023,360 Basic earnings per common share $ 0.02 $ 0.07 Diluted earnings per common share $ 0.02 $ 0.07 |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Securities available-for-sale at March 31, 2016 and December 31, 2015 were as follows: Description Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2016: Mortgage-backed securities $ 18,835,509 $ 13,728 $ 93,399 $ 18,755,838 Municipal bonds 17,375,372 360,409 36,605 17,699,176 Corporate bonds 551,623 3,667 — 555,290 $ 36,762,504 $ 377,804 $ 130,004 $ 37,010,304 December 31, 2015: Mortgage-backed securities $ 17,522,971 $ 12,167 $ 179,583 $ 17,355,555 Municipal bonds 18,300,293 336,817 23,862 18,613,248 Corporate bonds 551,500 5,429 — 556,929 $ 36,374,764 $ 354,413 $ 203,445 $ 36,525,732 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities available-for-sale at March 31, 2016 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2016 Amortized cost Fair value Due in one year or less $ 445,122 $ 446,913 Due after one year through five years 3,052,054 3,105,240 Due after five years, but less than ten years 10,594,333 10,884,324 Due after ten years 3,835,486 3,817,989 Mortgage-backed securities 18,835,509 18,755,838 $ 36,762,504 $ 37,010,304 |
Summary of Investment Securities Sales | The details of the sales of investment securities for the periods ended March 31, 2016 and 2015 are summarized in the following table. March 31, 2016 March 31, 2015 Proceeds from sales $ 7,141,396 $ 9,565,403 Gross gains on sales 50,200 192,489 Gross losses on sales 34,953 19,517 |
Schedule of Securities in a Continuous Unrealized Loss Position | The following tables show the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015 . March 31, 2016 Up to 12 months Greater than 12 months Fair value Gross unrealized loss Fair value Gross unrealized loss Mortgage-backed securities $ 10,669,259 $ 70,570 $ 2,297,880 $ 22,829 Municipal bonds 1,511,820 22,954 1,180,108 13,651 Total $ 12,181,079 $ 93,524 $ 3,477,988 $ 36,480 December 31, 2015 Up to 12 months Greater than 12 months Fair value Gross unrealized loss Fair value Gross unrealized loss Mortgage-backed securities $ 13,669,247 $ 157,996 $ 1,390,849 $ 21,587 Municipal bonds 2,549,250 23,862 — — Total $ 16,218,497 $ 181,858 $ 1,390,849 $ 21,587 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | At March 31, 2016 and December 31, 2015 , loans receivable consisted of the following segments: March 31, 2016 December 31, 2015 Loans: One-to-four family residential $ 46,410,737 $ 46,510,605 Non-owner occupied one-to-four family residential 4,112,774 4,030,249 Commercial real estate 3,055,097 2,974,668 Consumer 5,126,633 4,542,892 Total loans receivable 58,705,241 58,058,414 Discounts on loans purchased (77,857 ) (84,907 ) Deferred loan costs (fees) (83,603 ) (88,267 ) Allowance for loan losses (501,565 ) (505,178 ) $ 58,042,216 $ 57,380,062 |
Summary of Allowance for Loan Losses | The following tables present the balance in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2016 and December 31, 2015 . March 31, 2016 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 344,708 45,125 35,961 75,771 501,565 Total $ 344,708 $ 45,125 $ 35,961 $ 75,771 $ 501,565 Loans receivable: Individually evaluated for impairment $ — $ — $ 297,538 $ — $ 297,538 Collectively evaluated for impairment 46,410,737 4,112,774 2,757,559 5,126,633 58,407,703 Total $ 46,410,737 $ 4,112,774 $ 3,055,097 $ 5,126,633 $ 58,705,241 December 31, 2015 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 366,858 44,510 32,443 61,367 505,178 Total $ 366,858 $ 44,510 $ 32,443 $ 61,367 $ 505,178 Loans receivable: Individually evaluated for impairment $ — $ — $ 302,412 $ — $ 302,412 Collectively evaluated for impairment 46,510,605 4,030,249 2,672,256 4,542,892 57,756,002 Total $ 46,510,605 $ 4,030,249 $ 2,974,668 $ 4,542,892 $ 58,058,414 Activity in the allowance for loan losses by segment for the periods ended March 31, 2016 and 2015 is summarized in the following tables: Allowance for loan losses activity March 31, 2016 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 366,858 $ — $ — $ (22,150 ) $ 344,708 Non-owner occupied one-to-four family residential 44,510 — — 615 45,125 Commercial real estate 32,443 — — 3,518 35,961 Consumer 61,367 3,613 — 18,017 75,771 Total $ 505,178 $ 3,613 $ — $ — $ 501,565 Allowance for loan losses activity March 31, 2015 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 300,654 $ 25,605 $ — $ 25,037 $ 300,086 Non-owner occupied one-to-four family residential 26,949 — — 1,884 28,833 Commercial real estate 15,192 — — 3,026 18,218 Consumer 17,907 2,132 — 10,053 25,828 Total $ 360,702 $ 27,737 $ — $ 40,000 $ 372,965 |
Summary of Loans by Credit Quality Indicators | The following tables set forth the composition of each class of the Company’s loans by internally assigned credit quality indicators. Pass Special mention/watch Substandard Doubtful Total March 31, 2016: Loans One-to-four family residential $ 44,688,673 $ 1,570,169 $ 151,895 $ — $ 46,410,737 Non-owner occupied one-to-four family residential 4,112,774 — — — 4,112,774 Commercial real estate 2,757,559 — 297,538 — 3,055,097 Consumer 4,992,461 134,172 — — 5,126,633 Total $ 56,551,467 $ 1,704,341 $ 449,433 $ — $ 58,705,241 Pass Special mention/watch Substandard Doubtful Total December 31, 2015: Loans One-to-four family residential $ 44,448,707 $ 1,876,618 $ 185,280 $ — $ 46,510,605 Non-owner occupied one-to-four family residential 4,030,249 — — — 4,030,249 Commercial real estate 2,672,256 — 302,412 — 2,974,668 Consumer 4,416,516 126,376 — — 4,542,892 Total $ 55,567,728 $ 2,002,994 $ 487,692 $ — $ 58,058,414 |
Summary of Past Due Loans | The following tables set forth the composition of the Company’s past‑due loans at March 31, 2016 and December 31, 2015 . 30-59 days 60-89 days 90 days Total Current Total loans receivable Recorded investment > 90 days and accruing March 31, 2016: Loans One-to-four family residential $ 753,129 $ 391,806 $ 425,234 $ 1,570,169 $ 44,840,568 $ 46,410,737 $ 425,234 Non-owner occupied one-to-four family residential — — — — 4,112,774 4,112,774 — Commercial real estate — — — — 3,055,097 3,055,097 — Consumer 91,868 15,055 27,250 134,173 4,992,460 5,126,633 27,250 Total $ 844,997 $ 406,861 $ 452,484 $ 1,704,342 $ 57,000,899 $ 58,705,241 $ 452,484 December 31, 2015: Loans One-to-four family residential $ 1,148,965 $ 288,087 $ 460,485 $ 1,897,537 $ 44,613,068 $ 46,510,605 $ 275,205 Non-owner occupied one-to-four family residential — — — — 4,030,249 4,030,249 — Commercial real estate — — 302,412 302,412 2,672,256 2,974,668 — Consumer 54,592 44,988 26,796 126,376 4,416,516 4,542,892 26,796 Total $ 1,203,557 $ 333,075 $ 789,693 $ 2,326,325 $ 55,732,089 $ 58,058,414 $ 302,001 |
Schedule of Loans Receivable on a Nonaccrual Status | The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of March 31, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 Loans One-to-four family residential $ 151,895 $ 185,280 Non-owner occupied one-to-four family residential — — Commercial real estate 297,538 302,412 Consumer — — Total $ 449,433 $ 487,692 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Deposits by Type | At March 31, 2016 and December 31, 2015 , deposits are summarized as follows: March 31, 2016 December 31, 2015 Statement savings $ 11,706,203 $ 11,163,443 Money market plus 11,183,953 11,688,644 NOW 19,488,530 18,968,879 Certificates of deposit 47,271,684 46,258,865 $ 89,650,370 $ 88,079,831 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Taxes on income comprise the following: March 31, 2016 Federal State Total Current $ 9,889 $ (41 ) $ 9,848 Deferred (40,000 ) 1,000 (39,000 ) $ (30,111 ) $ 959 $ (29,152 ) December 31, 2015 Federal State Total Current $ 77,564 $ 34,941 $ 112,505 Deferred (67,975 ) (15,000 ) (82,975 ) $ 9,589 $ 19,941 $ 29,530 |
Schedule of Effective Income Tax Rate Reconciliation | Taxes on income differ from the amounts computed by applying the federal income tax rate of 34% to earnings before taxes on income for the following reasons, expressed in dollars: March 31, 2016 December 31, 2015 Federal tax at statutory rate $ 13,023 $ 143,954 Items affecting federal income tax rate: State taxes on income, net of federal benefit 633 13,161 Tax-exempt income (42,777 ) (144,001 ) Building donation 101 (21,611 ) Valuation allowance (146 ) 49,000 Other 14 (10,973 ) $ (29,152 ) $ 29,530 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at March 31, 2016 and December 31, 2015 are presented below: March 31, 2016 December 31, 2015 Deferred tax assets: Deferred directors’ fees $ 353,000 $ 369,000 Allowance for loan losses 187,000 188,000 AMT credit 48,000 62,000 Charitable contribution 62,000 81,000 Other 37,000 34,000 Gross deferred tax assets 687,000 734,000 Valuation allowance (49,000 ) (49,000 ) Net deferred tax assets 638,000 685,000 Deferred tax liabilities: Securities (10,268 ) (57,058 ) Prepaid expenses (18,000 ) (18,000 ) FHLB stock dividends (38,000 ) (38,000 ) Fixed assets (16,000 ) (19,000 ) Intangible assets (27,000 ) (28,000 ) Other — (38,093 ) Gross deferred tax liabilities (109,268 ) (198,151 ) Net deferred tax assets $ 528,732 $ 486,849 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of March 31, 2016 and December 31, 2015 (dollars in thousands). March 31, 2016 For capital adequacy To be well-capitalized under with capital conservation prompt corrective action Actual buffer purposes provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 13,883 12.3 % $ 4,507 4.00 % N/A N/A WCF Financial Bank 13,112 11.7 4,481 4.00 5,602 5.0 % Common Equity Tier 1: Consolidated 13,883 27.8 2,563 5.125 3,251 6.5 WCF Financial Bank 13,112 26.5 2,535 5.125 3,215 6.5 Risk-based capital: Consolidated 14,385 28.8 4,314 8.625 5,001 10.0 WCF Financial Bank 13,614 27.5 4,266 8.625 4,946 10.0 Tier 1 risk-based capital: Consolidated 13,883 27.8 3,313 6.625 4,001 8.0 WCF Financial Bank 13,112 26.5 3,277 6.625 3,957 8.0 December 31, 2015 To be well-capitalized under For capital adequacy prompt corrective action Actual purposes provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 14,428 13.5 % $ 4,289 4.0 % N/A N/A WCF Financial Bank 13,024 12.3 4,257 4.0 5,321 5.0 % Common Equity Tier 1: Consolidated 14,428 29.3 4,825 4.5 6,970 6.5 WCF Financial Bank 13,024 26.8 4,789 4.5 6,918 6.5 Risk-based capital: Consolidated 14,933 30.3 3,938 8.0 4,923 10.0 WCF Financial Bank 13,529 27.8 3,896 8.0 4,869 10.0 Tier 1 risk-based capital: Consolidated 14,428 29.3 2,954 6.0 3,938 8.0 WCF Financial Bank 13,024 26.8 2,922 6.0 3,896 8.0 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a Recurring Basis | The following tables summarize financial assets measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 , segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. The Company has no liabilities measured at fair value in the consolidated balance sheets. March 31, 2016 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value Mortgage-backed securities* $ — $ 18,755,838 $ — $ 18,755,838 Municipal bonds — 17,699,176 — 17,699,176 Corporate bonds 52,757 502,533 — 555,290 Total $ 52,757 $ 36,957,547 $ — $ 37,010,304 December 31, 2015 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value Mortgage-backed securities* $ — $ 17,355,555 $ — $ 17,355,555 Municipal bonds — 18,613,248 — 18,613,248 Corporate bonds 52,139 504,790 — 556,929 Total $ 52,139 $ 36,473,593 $ — $ 36,525,732 *All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans. |
Summary of Estimated Fair Values of Company's Financial Instruments | The estimated fair values of Company’s financial instruments (as described in note 1) at March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 December 31, 2015 Fair value Carrying Approximate Carrying Approximate hierarchy amount fair value amount fair value Financial assets: Cash and cash equivalents Level 1 $ 9,161,895 $ 9,161,895 $ 8,866,561 $ 8,866,561 Time deposits in other Level 1 financial institutions 2,310,000 2,310,000 2,950,111 2,950,111 Securities available for sale See previous table 37,010,304 37,010,304 36,525,732 36,525,732 Loans receivable, net Level 2 58,042,216 59,551,314 57,380,062 58,900,634 FHLB stock Level 1 454,800 454,800 452,700 452,700 Bankers’ Bank stock Level 1 147,500 147,500 147,500 147,500 Accrued interest receivable Level 1 439,103 439,103 407,975 407,975 Financial liabilities: Deposits Level 2 89,650,370 87,063,353 88,079,831 85,208,429 FHLB Level 2 8,000,000 8,003,000 8,000,000 8,003,000 Accrued interest payable Level 1 87,787 87,787 9,008 9,008 |
Basis of Presentation (Investme
Basis of Presentation (Investment Securities Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gains on sale of securities available-for-sale, net | $ 15,247 | $ 172,972 |
Basis of Presentation (Invest26
Basis of Presentation (Investment in Affiliate Narrative) (Details) | Mar. 31, 2016 |
New Castle Players, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 27.17% |
Basis of Presentation (Invest27
Basis of Presentation (Investment in Affiliate) (Details) - New Castle Players, LLC - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 164,173 | $ 81,134 |
Long-term assets | 1,710,228 | 1,766,545 |
Current liabilities | 75,247 | 82,476 |
Long-term liabilities | 0 | 27,510 |
Total equity | 1,799,154 | 1,737,693 |
Total revenue | 170,493 | 169,199 |
Net loss | $ (1,508) | $ (4,710) |
Basis of Presentation (Earnings
Basis of Presentation (Earnings per Common Share) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income | $ 67,456 | $ 224,997 |
Weighted average common shares and diluted common shares outstanding (in shares) | 3,019,005 | 3,023,360 |
Basic earnings per common share (in usd per share) | $ 0.02 | $ 0.07 |
Diluted earnings per common share (in usd per share) | $ 0.02 | $ 0.07 |
Basis of Presentation (Stock Co
Basis of Presentation (Stock Conversion) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Conversion and offering costs incurred to date | $ 459,724 | $ 0 | $ 515,434 |
Securities Available-for-Sale30
Securities Available-for-Sale (Narrative) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Accrued interest receivable | $ 439,103 | $ 407,975 |
Available-for-sale securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Accrued interest receivable | $ 219,031 | $ 189,862 |
Securities Available-for-Sale31
Securities Available-for-Sale (Amortized Cost to Fair Value) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | $ 36,762,504 | $ 36,374,764 |
Gross unrealized gains | 377,804 | 354,413 |
Gross unrealized losses | 130,004 | 203,445 |
Fair value | 37,010,304 | 36,525,732 |
Mortgage-backed securities | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | 18,835,509 | 17,522,971 |
Gross unrealized gains | 13,728 | 12,167 |
Gross unrealized losses | 93,399 | 179,583 |
Fair value | 18,755,838 | 17,355,555 |
Municipal bonds | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | 17,375,372 | 18,300,293 |
Gross unrealized gains | 360,409 | 336,817 |
Gross unrealized losses | 36,605 | 23,862 |
Fair value | 17,699,176 | 18,613,248 |
Corporate bonds | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | 551,623 | 551,500 |
Gross unrealized gains | 3,667 | 5,429 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 555,290 | $ 556,929 |
Securities Available-for-Sale32
Securities Available-for-Sale (Amortized Cost and Fair Value of Securities by Maturity) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Amortized cost | ||
Due in one year or less | $ 445,122 | |
Due after one year through five years | 3,052,054 | |
Due after five years, but less than ten years | 10,594,333 | |
Due after ten years | 3,835,486 | |
Mortgage-backed securities | 18,835,509 | |
Amortized cost | 36,762,504 | $ 36,374,764 |
Fair value | ||
Due in one year or less | 446,913 | |
Due after one year through five years | 3,105,240 | |
Due after five years, but less than ten years | 10,884,324 | |
Due after ten years | 3,817,989 | |
Mortgage-backed securities | 18,755,838 | |
Securities available-for-sale, at fair value | $ 37,010,304 | $ 36,525,732 |
Securities Available-for-Sale33
Securities Available-for-Sale (Sales of Investment Securities) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 7,141,396 | $ 9,565,403 |
Gross gains on sales | 50,200 | 192,489 |
Gross losses on sales | $ 34,953 | $ 19,517 |
Securities Available-for-Sale34
Securities Available-for-Sale (Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair value | ||
Up to 12 months | $ 12,181,079 | $ 16,218,497 |
Greater than 12 months | 3,477,988 | 1,390,849 |
Gross unrealized loss | ||
Up to 12 months | 93,524 | 181,858 |
Greater than 12 months | 36,480 | 21,587 |
Mortgage-backed securities | ||
Fair value | ||
Up to 12 months | 10,669,259 | 13,669,247 |
Greater than 12 months | 2,297,880 | 1,390,849 |
Gross unrealized loss | ||
Up to 12 months | 70,570 | 157,996 |
Greater than 12 months | 22,829 | 21,587 |
Municipal bonds | ||
Fair value | ||
Up to 12 months | 1,511,820 | 2,549,250 |
Greater than 12 months | 1,180,108 | 0 |
Gross unrealized loss | ||
Up to 12 months | 22,954 | 23,862 |
Greater than 12 months | $ 13,651 | $ 0 |
Loans Receivable (Summary of Lo
Loans Receivable (Summary of Loans Receivable) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | $ 58,705,241 | $ 58,058,414 | ||
Discounts on loans purchased | (77,857) | (84,907) | ||
Deferred loan costs (fees) | (83,603) | (88,267) | ||
Allowance for loan losses | (501,565) | (505,178) | $ (372,965) | $ (360,702) |
Loans receivable, net | 58,042,216 | 57,380,062 | ||
One-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 46,410,737 | 46,510,605 | ||
Allowance for loan losses | (344,708) | (366,858) | (300,086) | (300,654) |
Non-owner occupied one-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 4,112,774 | 4,030,249 | ||
Allowance for loan losses | (45,125) | (44,510) | (28,833) | (26,949) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 3,055,097 | 2,974,668 | ||
Allowance for loan losses | (35,961) | (32,443) | (18,218) | (15,192) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 5,126,633 | 4,542,892 | ||
Allowance for loan losses | $ (75,771) | $ (61,367) | $ (25,828) | $ (17,907) |
Loans Receivable (Allowance for
Loans Receivable (Allowance for Loan Losses) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | $ 0 | $ 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 501,565 | 505,178 | ||
Allowance for loan losses, Total | 501,565 | 505,178 | $ 372,965 | $ 360,702 |
Loans receivable, Individually evaluated for impairment | 297,538 | 302,412 | ||
Loans receivable, Collectively evaluated for impairment | 58,407,703 | 57,756,002 | ||
Total loans receivable | 58,705,241 | 58,058,414 | ||
One-to-four family residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 344,708 | 366,858 | ||
Allowance for loan losses, Total | 344,708 | 366,858 | 300,086 | 300,654 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 46,410,737 | 46,510,605 | ||
Total loans receivable | 46,410,737 | 46,510,605 | ||
Non-owner occupied one-to-four family residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 45,125 | 44,510 | ||
Allowance for loan losses, Total | 45,125 | 44,510 | 28,833 | 26,949 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 4,112,774 | 4,030,249 | ||
Total loans receivable | 4,112,774 | 4,030,249 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 35,961 | 32,443 | ||
Allowance for loan losses, Total | 35,961 | 32,443 | 18,218 | 15,192 |
Loans receivable, Individually evaluated for impairment | 297,538 | 302,412 | ||
Loans receivable, Collectively evaluated for impairment | 2,757,559 | 2,672,256 | ||
Total loans receivable | 3,055,097 | 2,974,668 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 75,771 | 61,367 | ||
Allowance for loan losses, Total | 75,771 | 61,367 | $ 25,828 | $ 17,907 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 5,126,633 | 4,542,892 | ||
Total loans receivable | $ 5,126,633 | $ 4,542,892 |
Loans Receivable (Allowance f37
Loans Receivable (Allowance for Loan Losses by Segment) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | $ 505,178 | $ 360,702 |
Charge-offs | 3,613 | 27,737 |
Recoveries | 0 | 0 |
Provisions | 0 | 40,000 |
Ending Balance | 501,565 | 372,965 |
One-to-four family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 366,858 | 300,654 |
Charge-offs | 0 | 25,605 |
Recoveries | 0 | 0 |
Provisions | (22,150) | 25,037 |
Ending Balance | 344,708 | 300,086 |
Non-owner occupied one-to-four family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 44,510 | 26,949 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | 615 | 1,884 |
Ending Balance | 45,125 | 28,833 |
Commercial real estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 32,443 | 15,192 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | 3,518 | 3,026 |
Ending Balance | 35,961 | 18,218 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 61,367 | 17,907 |
Charge-offs | 3,613 | 2,132 |
Recoveries | 0 | 0 |
Provisions | 18,017 | 10,053 |
Ending Balance | $ 75,771 | $ 25,828 |
Loans Receivable (Credit Qualit
Loans Receivable (Credit Quality Indicators by Loan Segment) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 58,705,241 | $ 58,058,414 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 56,551,467 | 55,567,728 |
Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,704,341 | 2,002,994 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 449,433 | 487,692 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 46,410,737 | 46,510,605 |
One-to-four family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 44,688,673 | 44,448,707 |
One-to-four family residential | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,570,169 | 1,876,618 |
One-to-four family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 151,895 | 185,280 |
One-to-four family residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 4,112,774 | 4,030,249 |
Non-owner occupied one-to-four family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 4,112,774 | 4,030,249 |
Non-owner occupied one-to-four family residential | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Non-owner occupied one-to-four family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Non-owner occupied one-to-four family residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 3,055,097 | 2,974,668 |
Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 2,757,559 | 2,672,256 |
Commercial real estate | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 297,538 | 302,412 |
Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 5,126,633 | 4,542,892 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 4,992,461 | 4,416,516 |
Consumer | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 134,172 | 126,376 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 0 | $ 0 |
Loans Receivable (Past Due Loan
Loans Receivable (Past Due Loans) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 1,704,342 | $ 2,326,325 |
Current | 57,000,899 | 55,732,089 |
Total loans receivable | 58,705,241 | 58,058,414 |
Recorded investment, 90 days past due and still accruing | 452,484 | 302,001 |
30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 844,997 | 1,203,557 |
60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 406,861 | 333,075 |
90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 452,484 | 789,693 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,570,169 | 1,897,537 |
Current | 44,840,568 | 44,613,068 |
Total loans receivable | 46,410,737 | 46,510,605 |
Recorded investment, 90 days past due and still accruing | 425,234 | 275,205 |
One-to-four family residential | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 753,129 | 1,148,965 |
One-to-four family residential | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 391,806 | 288,087 |
One-to-four family residential | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 425,234 | 460,485 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Current | 4,112,774 | 4,030,249 |
Total loans receivable | 4,112,774 | 4,030,249 |
Recorded investment, 90 days past due and still accruing | 0 | 0 |
Non-owner occupied one-to-four family residential | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Non-owner occupied one-to-four family residential | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Non-owner occupied one-to-four family residential | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 302,412 |
Current | 3,055,097 | 2,672,256 |
Total loans receivable | 3,055,097 | 2,974,668 |
Recorded investment, 90 days past due and still accruing | 0 | 0 |
Commercial real estate | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 302,412 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 134,173 | 126,376 |
Current | 4,992,460 | 4,416,516 |
Total loans receivable | 5,126,633 | 4,542,892 |
Recorded investment, 90 days past due and still accruing | 27,250 | 26,796 |
Consumer | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 91,868 | 54,592 |
Consumer | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 15,055 | 44,988 |
Consumer | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 27,250 | $ 26,796 |
Loans Receivable (Loans on Nona
Loans Receivable (Loans on Nonaccrual Status) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 449,433 | $ 487,692 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 151,895 | 185,280 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 297,538 | 302,412 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 0 | $ 0 |
Loans Receivable (Narrative) (D
Loans Receivable (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 439,103 | $ 407,975 |
Loans receivable with fixed rates of interest | 43,100,000 | 42,900,000 |
Loans receivable with variable rates of interest | $ 15,600,000 | $ 15,200,000 |
Number of impaired loans | loan | 1 | 1 |
Interest income recorded on impaired loans | $ 0 | $ 0 |
Non-owner occupied one-to-four family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum term on loans | 20 years | |
Loan amount, percentage of appraised value threshold | 75.00% | |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum term on loans | 20 years | |
Loan amount, percentage of appraised value threshold | 75.00% | |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 214,537 | $ 218,113 |
Deposits (Schedule of Deposits)
Deposits (Schedule of Deposits) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Statement savings | $ 11,706,203 | $ 11,163,443 |
Money market plus | 11,183,953 | 11,688,644 |
NOW | 19,488,530 | 18,968,879 |
Certificates of deposit | 47,271,684 | 46,258,865 |
Deposits | $ 89,650,370 | $ 88,079,831 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Non-interest bearing deposits | $ 4.7 | $ 4.7 |
Taxes on Income (Provision_Bene
Taxes on Income (Provision/Benefit) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current federal income tax expense (benefit) | $ 9,889 | $ 77,564 | |
Current state income tax expense (benefit) | (41) | 34,941 | |
Current income tax expense (benefit) | 9,848 | 112,505 | |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Deferred federal income tax expense (benefit) | (40,000) | (67,975) | |
Deferred state income tax expense (benefit) | 1,000 | (15,000) | |
Deferred income tax expense (benefit) | (39,000) | (82,975) | |
Federal income tax expense (benefit) | (30,111) | 9,589 | |
State income tax expense (benefit) | 959 | 19,941 | |
Income tax expense (benefit) | $ (29,152) | $ 92,248 | $ 29,530 |
Taxes on Income (Effective Tax
Taxes on Income (Effective Tax Rate Reconciliation) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory rate | $ 13,023 | $ 143,954 | |
Items affecting federal income tax rate: | |||
State taxes on income, net of federal benefit | 633 | 13,161 | |
Tax-exempt income | (42,777) | (144,001) | |
Building donation | 101 | (21,611) | |
Valuation allowance | (146) | 49,000 | |
Other | 14 | (10,973) | |
Income tax expense (benefit) | $ (29,152) | $ 92,248 | $ 29,530 |
Taxes on Income (Deferred Tax A
Taxes on Income (Deferred Tax Assets and Liabilities) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Deferred directors’ fees | $ 353,000 | $ 369,000 |
Allowance for loan losses | 187,000 | 188,000 |
AMT credit | 48,000 | 62,000 |
Charitable contribution | 62,000 | 81,000 |
Other | 37,000 | 34,000 |
Gross deferred tax assets | 687,000 | 734,000 |
Valuation allowance | (49,000) | (49,000) |
Net deferred tax assets | 638,000 | 685,000 |
Deferred tax liabilities: | ||
Securities | (10,268) | (57,058) |
Prepaid expenses | (18,000) | (18,000) |
FHLB stock dividends | (38,000) | (38,000) |
Fixed assets | (16,000) | (19,000) |
Intangible assets | (27,000) | (28,000) |
Other | 0 | (38,093) |
Gross deferred tax liabilities | (109,268) | (198,151) |
Net deferred tax assets | $ 528,732 | $ 486,849 |
Taxes on Income (Narrative) (De
Taxes on Income (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate (as a percent) | 34.00% | 34.00% |
Valuation allowance increase | $ 49 | |
Retaining earnings on which income taxes have not been provided | $ 2,134 | $ 2,134 |
Increase in unrecognized tax benefits resulting from prior period tax positions | $ 800 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 26, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||
Dividends declared per share of common stock (in usd per share) | $ 0.05 | $ 0 | |
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0 | |
Dividends paid to parent company | $ 1 | ||
Common stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares of common stock repurchased | 0 | 0 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Consolidated | ||
Tangible capital: | ||
Actual, Amount | $ 13,883 | $ 14,428 |
Actual, Percent | 12.30% | 13.50% |
For capital adequacy purposes, Amount | $ 4,507 | $ 4,289 |
For capital adequacy purposes, Percent | 4.00% | 4.00% |
Common Equity Tier 1: | ||
Amount, Actual | $ 13,883 | $ 14,428 |
Actual, Percentage | 27.80% | 29.30% |
For capital adequacy purposes, Amount | $ 2,563 | $ 4,825 |
For capital adequacy purposes, Percent | 5.125% | 4.50% |
To be well-capitalized under prompt correction action provisions, Amount | $ 3,251 | $ 6,970 |
To be well-capitalized under prompt correction action provisions, Percent | 6.50% | 6.50% |
Risk-based capital: | ||
Actual, Amount | $ 14,385 | $ 14,933 |
Actual, Percent | 28.80% | 30.30% |
For capital adequacy purposes, Amount | $ 4,314 | $ 3,938 |
For capital adequacy purposes, Percent | 8.625% | 8.00% |
To be well-capitalized under prompt correction action provisions, Amount | $ 5,001 | $ 4,923 |
To be well-capitalized under prompt correction action provisions, Percent | 10.00% | 10.00% |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 13,883 | $ 14,428 |
Actual, Percent | 27.80% | 29.30% |
For capital adequacy purposes, Amount | $ 3,313 | $ 2,954 |
For capital adequacy purposes, Percent | 6.625% | 6.00% |
To be well-capitalized under prompt correction action provisions, Amount | $ 4,001 | $ 3,938 |
To be well-capitalized under prompt correction action provisions, Percent | 8.00% | 8.00% |
WCF Financial Bank | ||
Tangible capital: | ||
Actual, Amount | $ 13,112 | $ 13,024 |
Actual, Percent | 11.70% | 12.30% |
For capital adequacy purposes, Amount | $ 4,481 | $ 4,257 |
For capital adequacy purposes, Percent | 4.00% | 4.00% |
To be well-capitalized under prompt correction action provisions, Amount | $ 5,602 | $ 5,321 |
To be well-capitalized under prompt correction action provisions, Percent | 5.00% | 5.00% |
Common Equity Tier 1: | ||
Amount, Actual | $ 13,112 | $ 13,024 |
Actual, Percentage | 26.50% | 26.80% |
For capital adequacy purposes, Amount | $ 2,535 | $ 4,789 |
For capital adequacy purposes, Percent | 5.125% | 4.50% |
To be well-capitalized under prompt correction action provisions, Amount | $ 3,215 | $ 6,918 |
To be well-capitalized under prompt correction action provisions, Percent | 6.50% | 6.50% |
Risk-based capital: | ||
Actual, Amount | $ 13,614 | $ 13,529 |
Actual, Percent | 27.50% | 27.80% |
For capital adequacy purposes, Amount | $ 4,266 | $ 3,896 |
For capital adequacy purposes, Percent | 8.625% | 8.00% |
To be well-capitalized under prompt correction action provisions, Amount | $ 4,946 | $ 4,869 |
To be well-capitalized under prompt correction action provisions, Percent | 10.00% | 10.00% |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 13,112 | $ 13,024 |
Actual, Percent | 26.50% | 26.80% |
For capital adequacy purposes, Amount | $ 3,277 | $ 2,922 |
For capital adequacy purposes, Percent | 6.625% | 6.00% |
To be well-capitalized under prompt correction action provisions, Amount | $ 3,957 | $ 3,896 |
To be well-capitalized under prompt correction action provisions, Percent | 8.00% | 8.00% |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | $ 0 | $ 0 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 37,010,304 | $ 36,525,732 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 18,755,838 | 17,355,555 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 17,699,176 | 18,613,248 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 555,290 | 556,929 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 37,010,304 | 36,525,732 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 18,755,838 | 17,355,555 |
Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 17,699,176 | 18,613,248 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 555,290 | 556,929 |
Recurring | Level 1 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 52,757 | 52,139 |
Recurring | Level 1 inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 inputs | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 inputs | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 52,757 | 52,139 |
Recurring | Level 2 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 36,957,547 | 36,473,593 |
Recurring | Level 2 inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 18,755,838 | 17,355,555 |
Recurring | Level 2 inputs | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 17,699,176 | 18,613,248 |
Recurring | Level 2 inputs | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 502,533 | 504,790 |
Recurring | Level 3 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 inputs | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 inputs | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 0 | $ 0 |
Fair Value (Estimated Fair Valu
Fair Value (Estimated Fair Value of Financial Instruments) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Securities available-for-sale, at fair value | $ 37,010,304 | $ 36,525,732 |
Carrying amount | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 37,010,304 | 36,525,732 |
Approximate fair value | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 37,010,304 | 36,525,732 |
Level 1 | Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 9,161,895 | 8,866,561 |
Time deposits in other financial institutions | 2,310,000 | 2,950,111 |
FHLB stock | 454,800 | 452,700 |
Bankers’ Bank stock | 147,500 | 147,500 |
Accrued interest receivable | 439,103 | 407,975 |
Financial liabilities: | ||
Accrued interest payable | 87,787 | 9,008 |
Level 1 | Approximate fair value | ||
Financial assets: | ||
Cash and cash equivalents | 9,161,895 | 8,866,561 |
Time deposits in other financial institutions | 2,310,000 | 2,950,111 |
FHLB stock | 454,800 | 452,700 |
Bankers’ Bank stock | 147,500 | 147,500 |
Accrued interest receivable | 439,103 | 407,975 |
Financial liabilities: | ||
Accrued interest payable | 87,787 | 9,008 |
Level 2 | Carrying amount | ||
Financial assets: | ||
Loans receivable, net | 58,042,216 | 57,380,062 |
Financial liabilities: | ||
Deposits | 89,650,370 | 88,079,831 |
FHLB | 8,000,000 | 8,000,000 |
Level 2 | Approximate fair value | ||
Financial assets: | ||
Loans receivable, net | 59,551,314 | 58,900,634 |
Financial liabilities: | ||
Deposits | 87,063,353 | 85,208,429 |
FHLB | $ 8,003,000 | $ 8,003,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Commitments to extend credit - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheets risks, liability | $ 132 | $ 250 |
Off-balance sheet risks, expiration period, liability | 1 year | 1 year |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, interest rate, liability | 3.89% | 3.89% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, interest rate, liability | 6.00% | 6.00% |