Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 11, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 2,561,542 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 2,970,513 | $ 3,310,400 |
Federal funds sold | 1,334,000 | 2,672,000 |
Cash and cash equivalents | 4,304,513 | 5,982,400 |
Time deposits in other financial institutions | 4,545,580 | 4,545,878 |
Securities available-for-sale, at fair value | 46,043,859 | 43,129,481 |
Loans receivable | 67,285,051 | 68,949,715 |
Allowance for loan losses | (557,027) | (538,319) |
Loans receivable, net | 66,728,024 | 68,411,396 |
Federal Home Loan Bank (FHLB) stock, at cost | 710,000 | 703,400 |
Bankers' Bank stock, at cost | 147,500 | 147,500 |
Office property and equipment, net | 3,723,042 | 3,791,429 |
Deferred taxes on income | 746,514 | 631,080 |
Income taxes receivable | 0 | 40,320 |
Accrued interest receivable | 414,460 | 439,855 |
Goodwill | 55,148 | 55,148 |
Bank-owned life insurance | 3,161,422 | 3,138,112 |
Prepaid expenses and other assets | 1,017,328 | 1,205,146 |
Total assets | 131,597,390 | 132,221,145 |
Liabilities and Stockholders' Equity | ||
Deposits | 87,751,945 | 87,740,194 |
FHLB advances | 14,000,000 | 14,000,000 |
Advance payments by borrowers for taxes and insurance | 281,316 | 527,774 |
Accrued interest payable | 110,856 | 13,983 |
Accrued expenses and other liabilities | 1,413,314 | 1,509,680 |
Total liabilities | 103,557,431 | 103,791,631 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value. Authorized 30,000,000 shares; 2,561,542 issued and outstanding at March 31, 2018 and December 31, 2017 | 25,615 | 25,615 |
Additional paid-in capital | 14,215,017 | 14,215,017 |
Retained earnings, substantially restricted | 15,966,849 | 15,758,825 |
Accumulated other comprehensive loss | (921,638) | (310,367) |
Unearned ESOP Shares | (1,245,884) | (1,259,576) |
Total stockholders' equity | 28,039,959 | 28,429,514 |
Total liabilities and stockholders' equity | $ 131,597,390 | $ 132,221,145 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 2,561,542 | 2,561,542 |
Common stock, shares outstanding (in shares) | 2,561,542 | 2,561,542 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income: | ||
Loans receivable | $ 739,664 | $ 722,826 |
Investment securities - taxable | 160,729 | 152,251 |
Investment securities - tax exempt | 62,793 | 72,505 |
Other interest earning assets | 34,042 | 19,565 |
Total interest income | 997,228 | 967,147 |
Interest expense: | ||
Deposits | 164,381 | 149,373 |
FHLB advances | 77,425 | 14,850 |
Total interest expense | 241,806 | 164,223 |
Net interest income | 755,422 | 802,924 |
Provision for losses on loans | 19,500 | 18,000 |
Net interest income after provision for losses on loans | 735,922 | 784,924 |
Noninterest income: | ||
Fees and service charges | 96,132 | 99,066 |
Loss on sale of securities available-for-sale, net | (14,465) | 0 |
Increase in cash value - bank-owned life insurance | 23,309 | 41,555 |
Gain on sale of land | 435,818 | 0 |
Other (loss) income | (9,923) | 17,700 |
Total noninterest income | 530,871 | 158,321 |
Noninterest expense: | ||
Compensation, payroll taxes, and employee benefits | 368,902 | 368,802 |
Advertising | 17,776 | 18,747 |
Office property and equipment | 107,903 | 123,807 |
Federal insurance premiums | 8,111 | 7,949 |
Data processing services | 123,327 | 108,004 |
Charitable contributions | 1,800 | 905 |
Other real estate expenses, net | 4,923 | 2,214 |
Dues and subscriptions | 10,797 | 8,526 |
Accounting, regulatory and professional fees | 139,137 | 142,943 |
Debit card expenses | 1,123 | 2,197 |
Other expenses | 92,468 | 91,757 |
Total noninterest expense | 876,267 | 875,851 |
Earnings before taxes on income | 390,526 | 67,394 |
Tax expense (benefit) | 106,002 | (10,480) |
Net income | $ 284,524 | $ 77,874 |
Basic earnings per common share (in usd per share) | $ 0.12 | $ 0.03 |
Diluted earnings per common share (in usd per share) | $ 0.12 | $ 0.03 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 284,524 | $ 77,874 |
Other comprehensive (loss) income | ||
Net change in unrealized gains or losses on securities | (734,338) | 32,379 |
Reclassification adjustment for net gain realized in net income | (14,465) | 0 |
Income tax (expense) benefit | 181,203 | (18,125) |
Other comprehensive (loss) income | (567,600) | 14,254 |
Comprehensive (loss) income | $ (283,076) | $ 92,128 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Common stock | Additional paid-in capital | Retained earnings | Unearned ESOP shares | Accumulated other comprehensive income (loss) |
Balance at Dec. 31, 2016 | $ 28,846,980 | $ 25,615 | $ 14,201,795 | $ 16,354,380 | $ (1,314,344) | $ (420,466) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 77,874 | 77,874 | ||||
Other comprehensive (loss) income | 14,254 | 14,254 | ||||
Release of ESOP Shares | 13,692 | 13,692 | ||||
Dividends paid on common stock ($0.05 per common stock) | (119,862) | (119,862) | ||||
Balance at Mar. 31, 2017 | 28,832,938 | 25,615 | 14,201,795 | 16,312,392 | (1,300,652) | (406,212) |
Balance at Dec. 31, 2017 | 28,429,514 | 25,615 | 14,215,017 | 15,758,825 | (1,259,576) | (310,367) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 284,524 | 284,524 | ||||
Other comprehensive (loss) income | (567,600) | (567,600) | ||||
Reclass of stranded tax effects of rate change | 43,671 | (43,671) | ||||
Release of ESOP Shares | 13,692 | 13,692 | ||||
Dividends paid on common stock ($0.05 per common stock) | (120,171) | (120,171) | ||||
Balance at Mar. 31, 2018 | $ 28,039,959 | $ 25,615 | $ 14,215,017 | $ 15,966,849 | $ (1,245,884) | $ (921,638) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0.05 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 284,524 | $ 77,874 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 186,139 | 208,034 |
Provision for losses on loans | 19,500 | 18,000 |
ESOP expenses | 13,692 | 13,692 |
Deferred taxes on income | 65,769 | (9,000) |
Loss on sales of securities | 14,465 | 0 |
Loss (Gain) on sale of other real estate owned | 9,417 | (9,095) |
Increase in cash value of bank-owned life insurance | (23,309) | (41,555) |
Change in: | ||
Accrued interest receivable | 25,395 | 9,343 |
Prepaid expenses and other assets | 257,062 | (97,326) |
Advance payments by borrowers for taxes and insurance | (246,458) | (201,760) |
Accrued interest payable | 96,874 | 82,974 |
Accrued expenses and other liabilities | (96,366) | (129,908) |
Income tax receivable | 40,320 | (1,480) |
Net cash provided by (used in) operating activities | 647,024 | (80,207) |
Cash flows from investing activities: | ||
Proceeds from maturity of time deposits in other financial institutions | 1,719,298 | 1,474,297 |
Purchase of time deposits in other financial institutions | (1,719,000) | (1,474,000) |
Proceeds from calls and maturities of investment securities available-for-sale | 1,455,555 | 1,514,080 |
Proceeds from sale of investment securities available-for-sale | 2,121,241 | 0 |
Purchase of investment securities available-for-sale | (7,372,195) | (2,127,347) |
Net change in loans receivable | 1,585,210 | (452,788) |
Net change in FHLB stock | (6,600) | (8,600) |
Net cash used in investing activities | (2,216,491) | (1,074,358) |
Cash flows from financing activities: | ||
Net change in deposits | 11,751 | 2,443,260 |
Dividends paid | (120,171) | (119,862) |
Net cash (used in) provided by financing activities | (108,420) | 2,323,398 |
Net (decrease) increase in cash and cash equivalents | (1,677,887) | 1,168,833 |
Cash and cash equivalents at beginning of year | 5,982,400 | 3,022,578 |
Cash and cash equivalents at end of quarter | 4,304,513 | 4,191,411 |
Cash paid during the year for: | ||
Interest | 144,932 | 81,249 |
Noncash investing activities: | ||
Transfers to other real estate owned from loans | 104,929 | 5,584 |
Transfers to finance the sale of other real estate owned | $ 26,267 | $ 67,095 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of WCF Bancorp, Inc. (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 Securities and Exchange Commission (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, 2017 . The consolidated balance sheet of the Company as of December 31, 2017 has been derived from the audited consolidated balance sheet of the Company as of that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from 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, 2017 . As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of March 31, 2018 , the Company does not believe there is a significant difference in the comparability of the financial statements as a result of this extended transition period, however, the Company's assessment of its revenue recognition policies under FASB topic 606 is not yet complete (see "Current Accounting Developments"). 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). Organization and Business WCF Bancorp, Inc. (the Company) is an Iowa-chartered corporation organized in 2016 to be the successor to Webster City Federal Bancorp, a federal corporation (Old Bancorp) upon completion of the second-step conversion of WCF Financial M.H.C. from the mutual holding company to the stock holding company form of organization. WCF Financial M.H.C. (the MHC) was the former mutual holding company for Old Bancorp prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of the MHC and Old Bancorp ceased to exist. The second-step conversion was completed on July 16, 2016 at which time the Company sold 2,139,231 shares of its common stock (including 171,138 shares purchased by the Bank's employee stock ownership plan, or ESOP) at $8.00 per share for gross proceeds of approximately $17.1 million . Expenses related to the stock offering totaled $1.7 million and were netted against proceeds. As a part of the second-step conversion, each of the outstanding shares of common stock of Old Bancorp held by persons other than the MHC were converted into 0.8115 shares of Company common stock with cash paid in lieu of fractional shares. As a result, a total of 2,561,542 shares were issues in the second-step conversion. As a result of the second-step conversion, all share and per share information has subsequently been revised to reflect the 0.8115 exchange ratio unless otherwise noted. The Company's principal business is the ownership and operation of the Bank. The Bank is a community bank and its deposits are insured by the FDIC. The primary business of the Bank is accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in real estate loans secured by one-to-four family residences. To a lesser extent, we also originate consumer loans and non owner-occupied one-to-four family residential real estate loans. On a limited basis we have also originated commercial real estate loans, but have deemphasized the origination, and intend to continue to deemphasize the origination, of this type of lending. We also invest in investment securities. Our primary lending area is broader than our primary deposit market area and includes north central and northeastern Iowa. Our revenues are derived principally from interest on loans and securities, and from loan origination and servicing fees. Our primary sources of funds are deposits, principal and interest payments on loans and securities and advances from the FHLB. As a federal savings bank, WCF Financial Bank is subject to comprehensive regulation and examination by the Office of the Comptroller of the Currency (the OCC). As a savings and loan holding company, the Company is subject to comprehensive regulation and examination by the Board of Governors of the Federal Reserve System (the Federal Reserve Board). The primary business of WCF Financial Service Corp (the Service Corp) was the sale of credit life and disability insurance products that were previously disallowed by savings and loan regulations. Currently the Service Corp is inactive. 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 income in the noninterest income line using the specific identification method. There were $14,465 and $0 of net realized losses for the three months ended March 31, 2018 and 2017 , 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 Bank is also subject to minimum regulatory capital requirements. At March 31, 2018 and December 31, 2017 , capital levels exceeded minimum capital requirements (see note 6). 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 most current available financial statements. 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 income on the consolidated statements of income. Earnings per Common Share The calculation of earnings per common share and diluted earnings per common share for the three months ended March 31, 2018 and March 31, 2017 is presented below. Three Months Ended 2018 2017 Net income $ 284,524 $ 77,874 Weighted average common shares outstanding and diluted common shares outstanding 2,410,295 2,404,096 Basic earnings per common share $ 0.12 $ 0.03 Diluted earnings per common share $ 0.12 $ 0.03 Unearned ESOP shares are not considered outstanding and are therefore not taken into account when computing earnings per share. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. ESOP shares that have been committed to be released are considered outstanding and included for the purposes of computing basic and diluted earnings per share. Employee Stock Ownership Plan The Company established the ESOP on July 13, 2016 in connection with its common stock offering. In conjunction with the second-step conversion, the ESOP purchased 171,138 shares at $8.00 per share. To fund the purchase, the ESOP borrowed $1.4 million from the Company at a variable rate equal to the lowest Prime Rate published in The Wall Street Journal, to be repaid on a prorate basis in 25 substantially equal annual installments. The collateral for the loan is the common stock of the Company purchased by the ESOP. The shares of stock purchased by the ESOP are held in a suspense account until they are released for allocation among participants. The shares will be released annually from the suspense account and the released shares will be allocated to the participants on the basis of each participant’s compensation for the year of allocation. As shares are released from collateral, the Company recognizes compensation expense equal to the average market price of the shares during the period and the shares will be outstanding for earnings-per-share purposes. The shares not released are reported as unearned ESOP shares in the stockholders’ equity section on the consolidated balance sheets. At March 31, 2018 there were 13,691 allocated shares and 157,447 unallocated shares. The fair value of unallocated ESOP shares at March 31, 2018 was approximately $1,533,000 . Subsequent Events On April 25, 2018, the board of directors declared a $0.05 per share cash dividend payable on May 25, 2018 to shareholders of record as of May 11, 2018. Current Accounting Developments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606): 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. This update will be effective for interim and annual periods beginning after December 15, 2018. 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 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. This update will be effective for interim and annual periods beginning after December 15, 2018, 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. 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. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendment in this update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, enactment of the reduced federal corporate income tax rate, which is effective in 2018, with early adoption permitted. The amendment can be adopted at the beginning of the period or on a retrospective basis. The Company adopted the amendment in the first quarter of 2018 using the beginning of the period option. |
Securities Available-for-Sale
Securities Available-for-Sale | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | Securities Available-for-Sale Securities available-for-sale at March 31, 2018 and December 31, 2017 were as follows: Description Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2018: U.S. agency securities $ 1,239,623 $ — $ 43,404 $ 1,196,219 Mortgage-backed securities* 31,397,455 — 864,774 30,532,681 Municipal bonds 14,629,911 28,937 343,889 14,314,959 $ 47,266,989 $ 28,937 $ 1,252,067 $ 46,043,859 December 31, 2017: U.S. agency securities $ 1,239,357 $ — $ 5,562 $ 1,233,795 Mortgage-backed securities* 27,331,766 — 547,177 26,784,589 Municipal bonds 15,050,942 107,569 47,414 15,111,097 $ 43,622,065 $ 107,569 $ 600,153 $ 43,129,481 *All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans. The amortized cost and estimated fair value of securities available-for-sale at March 31, 2018 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, 2018 Amortized cost Fair value Due in one year or less $ — $ — Due after one year through five years 1,089,477 1,090,398 Due after five years, but less than ten years 7,200,981 7,072,735 Due after ten years 7,579,076 7,348,045 15,869,534 15,511,178 Mortgage-backed securities 31,397,455 30,532,681 $ 47,266,989 $ 46,043,859 The details of the sales of investment securities for the three months ended March 31, 2018 and 2017 are summarized in the following table. Three Months Ended 2018 2017 Proceeds from sales $ 2,121,241 $ — Gross gains on sales — — Gross losses on sales 14,465 — At March 31, 2018 and December 31, 2017 , accrued interest receivable for securities available-for-sale totaled approximately $235,000 and $221,000 , 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, 2018 and December 31, 2017 . March 31, 2018 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ 957,353 $ 32,447 $ 238,866 $ 10,957 $ 1,196,219 $ 43,404 Mortgage-backed securities 4,683,175 109,394 21,023,017 755,380 25,706,192 864,774 Municipal bonds 9,491,726 255,685 2,160,673 88,204 11,652,399 343,889 Total $ 15,132,254 $ 397,526 $ 23,422,556 $ 854,541 $ 38,554,810 $ 1,252,067 December 31, 2017 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ 989,537 $ 29 $ 244,248 $ 5,533 $ 1,233,785 $ 5,562 Mortgage-backed securities 5,944,732 80,034 20,843,664 467,143 26,788,396 547,177 Municipal bonds 4,913,243 18,791 2,224,660 28,623 7,137,903 47,414 Total $ 11,847,512 $ 98,854 $ 23,312,572 $ 501,299 $ 35,160,084 $ 600,153 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 impaired as of March 31, 2018 and December 31, 2017 . |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable At March 31, 2018 and December 31, 2017 , loans receivable consisted of the following segments: March 31, 2018 December 31, 2017 Loans: One-to-four family residential $ 54,965,103 $ 56,091,358 Non-owner occupied one-to-four family residential 3,080,597 3,116,832 Commercial real estate 3,107,105 3,615,351 Consumer 6,140,573 6,145,488 Total loans receivable 67,293,378 68,969,029 Discounts on loans purchased 17,700 10,650 Deferred loan costs (fees) (26,027 ) (29,964 ) Allowance for loan losses (557,027 ) (538,319 ) $ 66,728,024 $ 68,411,396 Accrued interest receivable on loans receivable was $179,731 and $218,967 at March 31, 2018 and December 31, 2017 , respectively. The loan portfolio included approximately $40.0 million of fixed rate loans as of March 31, 2018 and $40.6 million as of December 31, 2017 . The loan portfolio also included approximately $27.3 million and $28.4 million of variable rate loans as of March 31, 2018 and December 31, 2017 , 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, 2018 and December 31, 2017 . March 31, 2018 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 402,310 26,893 32,255 95,569 557,027 Total $ 402,310 $ 26,893 $ 32,255 $ 95,569 $ 557,027 Loans receivable: Individually evaluated for impairment $ — $ — $ 275,515 $ — $ 275,515 Collectively evaluated for impairment 54,965,103 3,080,597 2,831,590 6,140,573 67,017,863 Total $ 54,965,103 $ 3,080,597 $ 3,107,105 $ 6,140,573 $ 67,293,378 December 31, 2017 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 393,341 25,893 33,204 85,881 538,319 Total $ 393,341 $ 25,893 $ 33,204 $ 85,881 $ 538,319 Loans receivable: Individually evaluated for impairment $ — $ — $ 274,804 $ — $ 274,804 Collectively evaluated for impairment 56,091,358 3,116,832 3,340,547 6,145,488 68,694,225 Total $ 56,091,358 $ 3,116,832 $ 3,615,351 $ 6,145,488 $ 68,969,029 Activity in the allowance for loan losses by segment for the three months ended March 31, 2018 and 2017 is summarized in the following tables: Three months ended March 31, 2018 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 393,341 $ — $ — $ 8,969 $ 402,310 Non-owner occupied one-to-four family residential 25,893 — — 1,000 26,893 Commercial real estate 33,204 — — (949 ) * 32,255 Consumer 85,881 792 — 10,480 95,569 Total $ 538,319 $ 792 $ — $ 19,500 $ 557,027 Three months ended March 31, 2017 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 319,849 $ 4,810 $ — $ 16,697 $ 331,736 Non-owner occupied one-to-four family residential 28,231 — — 465 28,696 Commercial real estate 37,135 — — 3,664 40,799 Consumer 101,899 — 71 (2,826 ) * 99,144 Total $ 487,114 $ 4,810 $ 71 $ 18,000 $ 500,375 * The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. (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 30 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 30 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 2018 . (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 a 12 quarter rolling 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 Total March 31, 2018: Loans One-to-four family residential $ 53,376,724 $ 1,012,128 $ 576,251 $ 54,965,103 Non-owner occupied one-to-four family residential 2,747,677 17,691 315,229 3,080,597 Commercial real estate 2,795,889 35,701 275,515 3,107,105 Consumer 5,873,314 223,150 44,109 6,140,573 Total $ 64,793,604 $ 1,288,670 $ 1,211,104 $ 67,293,378 Pass Special mention/watch Substandard Total December 31, 2017: Loans One-to-four family residential $ 54,042,992 $ 1,412,334 $ 636,032 $ 56,091,358 Non-owner occupied one-to-four family residential 2,782,817 17,861 316,154 3,116,832 Commercial real estate 3,304,369 36,178 274,804 3,615,351 Consumer 5,830,415 252,722 62,351 6,145,488 Total $ 65,960,593 $ 1,719,095 $ 1,289,341 $ 68,969,029 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, 2018 and December 31, 2017 . No interest income was recorded on impaired loans during 2018 or 2017 . (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 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, 2018 and December 31, 2017 . 30-59 days 60-89 days 90 days Total Current Total loans receivable Recorded investment > 90 days and accruing March 31, 2018: Loans One-to-four family residential $ 460,075 $ 259,130 $ 432,381 $ 1,151,586 $ 53,813,517 $ 54,965,103 $ 284,509 Non-owner occupied one-to-four family residential — 17,691 176,858 194,549 2,886,048 3,080,597 — Commercial real estate 35,701 — 275,515 311,216 2,795,889 3,107,105 — Consumer 119,861 61,271 37,574 218,706 5,921,867 6,140,573 39,226 Total $ 615,637 $ 338,092 $ 922,328 $ 1,876,057 $ 65,417,321 $ 67,293,378 $ 323,735 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans receivable Recorded investment > 90 days and accruing December 31, 2017: Loans One-to-four family residential $ 566,234 $ 542,356 $ 491,792 $ 1,600,382 $ 54,490,976 $ 56,091,358 $ 341,167 Non-owner occupied one-to-four family residential 17,861 177,037 — 194,898 2,921,934 3,116,832 — Commercial real estate 36,178 — 274,804 310,982 3,304,369 3,615,351 — Consumer 171,789 76,558 54,568 302,915 5,842,573 6,145,488 57,267 Total $ 792,062 $ 795,951 $ 821,164 $ 2,409,177 $ 66,559,852 $ 68,969,029 $ 398,434 The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of March 31, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 Loans One-to-four family residential $ 147,872 $ 150,625 Commercial real estate 275,515 274,804 Total $ 423,387 $ 425,429 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits At March 31, 2018 and December 31, 2017 , deposits are summarized as follows: March 31, 2018 December 31, 2017 Statement savings $ 15,047,022 $ 14,536,815 Money market plus 11,441,057 11,749,674 NOW 18,999,009 18,749,026 Certificates of deposit 42,264,857 42,704,679 $ 87,751,945 $ 87,740,194 Included in the NOW accounts were approximately $4.9 million and $4.6 million of non-interest bearing deposits as of March 31, 2018 and December 31, 2017 , respectively. |
Taxes on Income
Taxes on Income | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income Taxes on income comprise the following: March 31, 2018 Federal State Total Current $ 25,933 $ 14,300 $ 40,233 Deferred 65,769 — 65,769 $ 91,702 $ 14,300 $ 106,002 March 31, 2017 Federal State Total Current $ (230 ) $ (1,250 ) $ (1,480 ) Deferred (14,000 ) 5,000 (9,000 ) $ (14,230 ) $ 3,750 $ (10,480 ) Taxes on income for the three months ending March 31, 2018, and 2017, differ from the amounts computed by applying the federal income tax rate of 21% and 34% respectively to earnings before taxes on income for the following reasons, expressed in dollars: March 31, 2018 March 31, 2017 Federal tax at statutory rate $ 82,010 $ 22,905 Items affecting federal income tax rate: State taxes on income, net of federal benefit 11,297 2,475 Tax-exempt income (11,840 ) (22,144 ) Bank-owned life insurance (4,895 ) (14,129 ) Valuation allowance 2,000 11,000 Other 27,430 (10,587 ) $ 106,002 $ (10,480 ) Federal income tax expense for the periods ended March 31, 2018 and December 31, 2017 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, 2018 and December 31, 2017 are presented below: March 31, 2018 December 31, 2017 Deferred tax assets: Deferred directors’ fees $ 185,000 $ 195,000 Allowance for loan losses 139,000 134,000 Net operating loss carryforward 98,000 165,000 AMT credit 34,720 34,720 Charitable contribution 59,000 59,000 Professional fees 48,000 49,000 Securities available-for-sale 301,492 121,082 Fixed assets 3,000 — Other 30,302 23,278 Gross deferred tax assets 898,514 781,080 Valuation allowance (98,000 ) (96,000 ) Net deferred tax assets 800,514 685,080 Deferred tax liabilities: Prepaid expenses (14,000 ) (14,000 ) FHLB stock dividends (25,000 ) (25,000 ) Intangible assets (15,000 ) (15,000 ) Gross deferred tax liabilities (54,000 ) (54,000 ) Net deferred tax assets $ 746,514 $ 631,080 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 has reviewed whether it is more likely than not the Company will realize the benefits of these deductible differences. Management has determined that a valuation allowance was required for deferred tax assets at March 31, 2018 and December 31, 2017 , related to the charitable contribution carryforward and Iowa corporate net operating loss carryovers. The charitable contribution expires if not used by 2020 . As of December 31, 2017 , 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, 2018 and December 31, 2017 , 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 $523,000 . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Common Stock Repurchase The Company repurchased no shares during the three months ended March 31, 2018 and 2017 . (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 March 31, 2018 and December 31, 2017 . The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of March 31, 2018 and December 31, 2017 (dollars in thousands). March 31, 2018 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 $ 28,876 23.60 % $ 5,259 4.00 % N/A N/A WCF Financial Bank 19,486 15.70 4,958 4.00 2,753 5.00 % Common equity tier 1: Consolidated 28,876 50.60 3,511 6.38 3,665 6.50 WCF Financial Bank 19,486 35.40 3,571 6.38 3,579 6.50 Risk-based capital: Consolidated 29,433 51.50 5,571 9.88 5,638 10.00 WCF Financial Bank 20,043 36.40 5,441 9.88 5,507 10.00 Tier 1 risk-based capital: Consolidated 28,876 50.60 4,443 7.88 4,511 8.00 WCF Financial Bank 19,486 35.40 4,339 7.88 4,405 8.00 December 31, 2017 To be well-capitalized under For capital adequacy prompt corrective action Actual purposes provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 28,657 23.40 % $ 4,897 4.00 % N/A N/A WCF Financial Bank 19,117 16.50 4,637 4.00 5,796 5.00 % Common equity tier 1: Consolidated 28,657 50.20 3,283 5.75 3,712 6.50 WCF Financial Bank 19,117 34.50 3,191 5.75 3,607 6.50 Risk-based capital: Consolidated 29,195 51.10 5,282 9.25 5,710 10.00 WCF Financial Bank 19,655 35.40 5,133 9.25 5,549 10.00 Tier 1 risk-based capital: Consolidated 28,657 50.20 4,140 7.25 4,568 8.00 WCF Financial Bank 19,117 34.50 4,023 7.25 4,439 8.00 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%. A banking organization with a conservation buffer of less than 2.50% (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 March 31, 2018 , 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 $0.05 dividend in the first quarter ended March 31, 2018 and declared and paid a $0.05 in the first quarter ended March 31, 2017 . 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. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
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 due from banks, federal funds sold, 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. • FHLB and Bankers’ Bank stock . The value of FHLB and Bankers’ Bank 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, 2018 and December 31, 2017 , 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, 2018 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 1,196,219 $ — $ 1,196,219 Mortgage-backed securities* — 30,532,681 — 30,532,681 Municipal bonds — 14,314,959 — 14,314,959 Total $ — $ 46,043,859 $ — $ 46,043,859 December 31, 2017 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 1,233,795 $ — $ 1,233,795 Mortgage-backed securities* — 26,784,589 — 26,784,589 Municipal bonds — 15,111,097 — 15,111,097 Total $ — $ 43,129,481 $ — $ 43,129,481 *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, 2018 compared to December 31, 2017 and there were no transfers between levels during the periods ended March 31, 2018 and December 31, 2017 . 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, 2018 and December 31, 2017 , 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, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 Fair value Carrying Approximate Carrying Approximate hierarchy amount fair value amount fair value Financial assets: Cash and due from banks Level 1 $ 2,970,513 $ 2,970,513 $ 3,310,400 $ 3,310,400 Federal funds sold Level 1 1,334,000 1,334,000 2,672,000 2,672,000 Time deposits in other Level 1 financial institutions 4,545,580 4,545,580 4,545,878 4,545,878 Securities available-for-sale See previous table 46,043,859 46,043,859 43,129,481 43,129,481 Loans receivable, net Level 2 (1) 66,728,024 67,313,024 68,411,395 69,008,986 FHLB stock Level 1 710,000 710,000 703,400 703,400 Bankers’ Bank stock Level 1 147,500 147,500 147,500 147,500 Accrued interest receivable Level 1 414,460 414,460 439,855 439,855 Bank owned life insurance Level 1 3,161,422 3,161,422 3,138,112 3,138,112 Financial liabilities: Deposits Level 2 87,751,945 87,718,945 87,740,194 87,828,194 FHLB advances Level 2 14,000,000 14,053,000 14,000,000 14,052,000 Accrued interest payable Level 1 110,856 110,856 13,982 13,982 (1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
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 $178,000 and $201,000 as of March 31, 2018 and December 31, 2017 , respectively. These commitments expire one year from origination and are both fixed and adjustable interest rates ranging from 2.99% to 5.00% . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) components at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 Unrealized holding losses on securities available-for-sale $ (1,223,130 ) $ (488,791 ) Tax impact 301,492 178,424 $ (921,638 ) $ (310,367 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of WCF Bancorp, Inc. (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 Securities and Exchange Commission (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, 2017 . The consolidated balance sheet of the Company as of December 31, 2017 has been derived from the audited consolidated balance sheet of the Company as of that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. |
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 most current available financial statements. 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 income on the consolidated statements of income. |
Employee Stock Ownership Plan | The shares of stock purchased by the ESOP are held in a suspense account until they are released for allocation among participants. The shares will be released annually from the suspense account and the released shares will be allocated to the participants on the basis of each participant’s compensation for the year of allocation. As shares are released from collateral, the Company recognizes compensation expense equal to the average market price of the shares during the period and the shares will be outstanding for earnings-per-share purposes. The shares not released are reported as unearned ESOP shares in the stockholders’ equity section on the consolidated balance sheets. |
Current Accounting Developments | In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606): 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. This update will be effective for interim and annual periods beginning after December 15, 2018. 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 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. This update will be effective for interim and annual periods beginning after December 15, 2018, 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. 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. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendment in this update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, enactment of the reduced federal corporate income tax rate, which is effective in 2018, with early adoption permitted. The amendment can be adopted at the beginning of the period or on a retrospective basis. The Company adopted the amendment in the first quarter of 2018 using the beginning of the period option. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share | The calculation of earnings per common share and diluted earnings per common share for the three months ended March 31, 2018 and March 31, 2017 is presented below. Three Months Ended 2018 2017 Net income $ 284,524 $ 77,874 Weighted average common shares outstanding and diluted common shares outstanding 2,410,295 2,404,096 Basic earnings per common share $ 0.12 $ 0.03 Diluted earnings per common share $ 0.12 $ 0.03 Unearned ESOP shares are not considered outstanding and are therefore not taken into account when computing earnings per share. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. ESOP shares that have been committed to be released are considered outstanding and included for the purposes of computing basic and diluted earnings per share. |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Securities available-for-sale at March 31, 2018 and December 31, 2017 were as follows: Description Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2018: U.S. agency securities $ 1,239,623 $ — $ 43,404 $ 1,196,219 Mortgage-backed securities* 31,397,455 — 864,774 30,532,681 Municipal bonds 14,629,911 28,937 343,889 14,314,959 $ 47,266,989 $ 28,937 $ 1,252,067 $ 46,043,859 December 31, 2017: U.S. agency securities $ 1,239,357 $ — $ 5,562 $ 1,233,795 Mortgage-backed securities* 27,331,766 — 547,177 26,784,589 Municipal bonds 15,050,942 107,569 47,414 15,111,097 $ 43,622,065 $ 107,569 $ 600,153 $ 43,129,481 *All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans. |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities available-for-sale at March 31, 2018 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, 2018 Amortized cost Fair value Due in one year or less $ — $ — Due after one year through five years 1,089,477 1,090,398 Due after five years, but less than ten years 7,200,981 7,072,735 Due after ten years 7,579,076 7,348,045 15,869,534 15,511,178 Mortgage-backed securities 31,397,455 30,532,681 $ 47,266,989 $ 46,043,859 |
Summary of Investment Securities Sales | The details of the sales of investment securities for the three months ended March 31, 2018 and 2017 are summarized in the following table. Three Months Ended 2018 2017 Proceeds from sales $ 2,121,241 $ — Gross gains on sales — — Gross losses on sales 14,465 — |
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, 2018 and December 31, 2017 . March 31, 2018 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ 957,353 $ 32,447 $ 238,866 $ 10,957 $ 1,196,219 $ 43,404 Mortgage-backed securities 4,683,175 109,394 21,023,017 755,380 25,706,192 864,774 Municipal bonds 9,491,726 255,685 2,160,673 88,204 11,652,399 343,889 Total $ 15,132,254 $ 397,526 $ 23,422,556 $ 854,541 $ 38,554,810 $ 1,252,067 December 31, 2017 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ 989,537 $ 29 $ 244,248 $ 5,533 $ 1,233,785 $ 5,562 Mortgage-backed securities 5,944,732 80,034 20,843,664 467,143 26,788,396 547,177 Municipal bonds 4,913,243 18,791 2,224,660 28,623 7,137,903 47,414 Total $ 11,847,512 $ 98,854 $ 23,312,572 $ 501,299 $ 35,160,084 $ 600,153 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | At March 31, 2018 and December 31, 2017 , loans receivable consisted of the following segments: March 31, 2018 December 31, 2017 Loans: One-to-four family residential $ 54,965,103 $ 56,091,358 Non-owner occupied one-to-four family residential 3,080,597 3,116,832 Commercial real estate 3,107,105 3,615,351 Consumer 6,140,573 6,145,488 Total loans receivable 67,293,378 68,969,029 Discounts on loans purchased 17,700 10,650 Deferred loan costs (fees) (26,027 ) (29,964 ) Allowance for loan losses (557,027 ) (538,319 ) $ 66,728,024 $ 68,411,396 |
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, 2018 and December 31, 2017 . March 31, 2018 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 402,310 26,893 32,255 95,569 557,027 Total $ 402,310 $ 26,893 $ 32,255 $ 95,569 $ 557,027 Loans receivable: Individually evaluated for impairment $ — $ — $ 275,515 $ — $ 275,515 Collectively evaluated for impairment 54,965,103 3,080,597 2,831,590 6,140,573 67,017,863 Total $ 54,965,103 $ 3,080,597 $ 3,107,105 $ 6,140,573 $ 67,293,378 December 31, 2017 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 393,341 25,893 33,204 85,881 538,319 Total $ 393,341 $ 25,893 $ 33,204 $ 85,881 $ 538,319 Loans receivable: Individually evaluated for impairment $ — $ — $ 274,804 $ — $ 274,804 Collectively evaluated for impairment 56,091,358 3,116,832 3,340,547 6,145,488 68,694,225 Total $ 56,091,358 $ 3,116,832 $ 3,615,351 $ 6,145,488 $ 68,969,029 Activity in the allowance for loan losses by segment for the three months ended March 31, 2018 and 2017 is summarized in the following tables: Three months ended March 31, 2018 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 393,341 $ — $ — $ 8,969 $ 402,310 Non-owner occupied one-to-four family residential 25,893 — — 1,000 26,893 Commercial real estate 33,204 — — (949 ) * 32,255 Consumer 85,881 792 — 10,480 95,569 Total $ 538,319 $ 792 $ — $ 19,500 $ 557,027 Three months ended March 31, 2017 Beginning Balance Charge-offs Recoveries Provisions Ending Balance Loans: One-to-four family residential $ 319,849 $ 4,810 $ — $ 16,697 $ 331,736 Non-owner occupied one-to-four family residential 28,231 — — 465 28,696 Commercial real estate 37,135 — — 3,664 40,799 Consumer 101,899 — 71 (2,826 ) * 99,144 Total $ 487,114 $ 4,810 $ 71 $ 18,000 $ 500,375 * The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. |
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 Total March 31, 2018: Loans One-to-four family residential $ 53,376,724 $ 1,012,128 $ 576,251 $ 54,965,103 Non-owner occupied one-to-four family residential 2,747,677 17,691 315,229 3,080,597 Commercial real estate 2,795,889 35,701 275,515 3,107,105 Consumer 5,873,314 223,150 44,109 6,140,573 Total $ 64,793,604 $ 1,288,670 $ 1,211,104 $ 67,293,378 Pass Special mention/watch Substandard Total December 31, 2017: Loans One-to-four family residential $ 54,042,992 $ 1,412,334 $ 636,032 $ 56,091,358 Non-owner occupied one-to-four family residential 2,782,817 17,861 316,154 3,116,832 Commercial real estate 3,304,369 36,178 274,804 3,615,351 Consumer 5,830,415 252,722 62,351 6,145,488 Total $ 65,960,593 $ 1,719,095 $ 1,289,341 $ 68,969,029 |
Summary of Past Due Loans | The following tables set forth the composition of the Company’s past-due loans at March 31, 2018 and December 31, 2017 . 30-59 days 60-89 days 90 days Total Current Total loans receivable Recorded investment > 90 days and accruing March 31, 2018: Loans One-to-four family residential $ 460,075 $ 259,130 $ 432,381 $ 1,151,586 $ 53,813,517 $ 54,965,103 $ 284,509 Non-owner occupied one-to-four family residential — 17,691 176,858 194,549 2,886,048 3,080,597 — Commercial real estate 35,701 — 275,515 311,216 2,795,889 3,107,105 — Consumer 119,861 61,271 37,574 218,706 5,921,867 6,140,573 39,226 Total $ 615,637 $ 338,092 $ 922,328 $ 1,876,057 $ 65,417,321 $ 67,293,378 $ 323,735 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans receivable Recorded investment > 90 days and accruing December 31, 2017: Loans One-to-four family residential $ 566,234 $ 542,356 $ 491,792 $ 1,600,382 $ 54,490,976 $ 56,091,358 $ 341,167 Non-owner occupied one-to-four family residential 17,861 177,037 — 194,898 2,921,934 3,116,832 — Commercial real estate 36,178 — 274,804 310,982 3,304,369 3,615,351 — Consumer 171,789 76,558 54,568 302,915 5,842,573 6,145,488 57,267 Total $ 792,062 $ 795,951 $ 821,164 $ 2,409,177 $ 66,559,852 $ 68,969,029 $ 398,434 |
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, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 Loans One-to-four family residential $ 147,872 $ 150,625 Commercial real estate 275,515 274,804 Total $ 423,387 $ 425,429 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Deposits by Type | At March 31, 2018 and December 31, 2017 , deposits are summarized as follows: March 31, 2018 December 31, 2017 Statement savings $ 15,047,022 $ 14,536,815 Money market plus 11,441,057 11,749,674 NOW 18,999,009 18,749,026 Certificates of deposit 42,264,857 42,704,679 $ 87,751,945 $ 87,740,194 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Taxes on income comprise the following: March 31, 2018 Federal State Total Current $ 25,933 $ 14,300 $ 40,233 Deferred 65,769 — 65,769 $ 91,702 $ 14,300 $ 106,002 March 31, 2017 Federal State Total Current $ (230 ) $ (1,250 ) $ (1,480 ) Deferred (14,000 ) 5,000 (9,000 ) $ (14,230 ) $ 3,750 $ (10,480 ) |
Schedule of Effective Income Tax Rate Reconciliation | Taxes on income for the three months ending March 31, 2018, and 2017, differ from the amounts computed by applying the federal income tax rate of 21% and 34% respectively to earnings before taxes on income for the following reasons, expressed in dollars: March 31, 2018 March 31, 2017 Federal tax at statutory rate $ 82,010 $ 22,905 Items affecting federal income tax rate: State taxes on income, net of federal benefit 11,297 2,475 Tax-exempt income (11,840 ) (22,144 ) Bank-owned life insurance (4,895 ) (14,129 ) Valuation allowance 2,000 11,000 Other 27,430 (10,587 ) $ 106,002 $ (10,480 ) |
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, 2018 and December 31, 2017 are presented below: March 31, 2018 December 31, 2017 Deferred tax assets: Deferred directors’ fees $ 185,000 $ 195,000 Allowance for loan losses 139,000 134,000 Net operating loss carryforward 98,000 165,000 AMT credit 34,720 34,720 Charitable contribution 59,000 59,000 Professional fees 48,000 49,000 Securities available-for-sale 301,492 121,082 Fixed assets 3,000 — Other 30,302 23,278 Gross deferred tax assets 898,514 781,080 Valuation allowance (98,000 ) (96,000 ) Net deferred tax assets 800,514 685,080 Deferred tax liabilities: Prepaid expenses (14,000 ) (14,000 ) FHLB stock dividends (25,000 ) (25,000 ) Intangible assets (15,000 ) (15,000 ) Gross deferred tax liabilities (54,000 ) (54,000 ) Net deferred tax assets $ 746,514 $ 631,080 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 (dollars in thousands). March 31, 2018 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 $ 28,876 23.60 % $ 5,259 4.00 % N/A N/A WCF Financial Bank 19,486 15.70 4,958 4.00 2,753 5.00 % Common equity tier 1: Consolidated 28,876 50.60 3,511 6.38 3,665 6.50 WCF Financial Bank 19,486 35.40 3,571 6.38 3,579 6.50 Risk-based capital: Consolidated 29,433 51.50 5,571 9.88 5,638 10.00 WCF Financial Bank 20,043 36.40 5,441 9.88 5,507 10.00 Tier 1 risk-based capital: Consolidated 28,876 50.60 4,443 7.88 4,511 8.00 WCF Financial Bank 19,486 35.40 4,339 7.88 4,405 8.00 December 31, 2017 To be well-capitalized under For capital adequacy prompt corrective action Actual purposes provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 28,657 23.40 % $ 4,897 4.00 % N/A N/A WCF Financial Bank 19,117 16.50 4,637 4.00 5,796 5.00 % Common equity tier 1: Consolidated 28,657 50.20 3,283 5.75 3,712 6.50 WCF Financial Bank 19,117 34.50 3,191 5.75 3,607 6.50 Risk-based capital: Consolidated 29,195 51.10 5,282 9.25 5,710 10.00 WCF Financial Bank 19,655 35.40 5,133 9.25 5,549 10.00 Tier 1 risk-based capital: Consolidated 28,657 50.20 4,140 7.25 4,568 8.00 WCF Financial Bank 19,117 34.50 4,023 7.25 4,439 8.00 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 , 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, 2018 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 1,196,219 $ — $ 1,196,219 Mortgage-backed securities* — 30,532,681 — 30,532,681 Municipal bonds — 14,314,959 — 14,314,959 Total $ — $ 46,043,859 $ — $ 46,043,859 December 31, 2017 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 1,233,795 $ — $ 1,233,795 Mortgage-backed securities* — 26,784,589 — 26,784,589 Municipal bonds — 15,111,097 — 15,111,097 Total $ — $ 43,129,481 $ — $ 43,129,481 *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, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 Fair value Carrying Approximate Carrying Approximate hierarchy amount fair value amount fair value Financial assets: Cash and due from banks Level 1 $ 2,970,513 $ 2,970,513 $ 3,310,400 $ 3,310,400 Federal funds sold Level 1 1,334,000 1,334,000 2,672,000 2,672,000 Time deposits in other Level 1 financial institutions 4,545,580 4,545,580 4,545,878 4,545,878 Securities available-for-sale See previous table 46,043,859 46,043,859 43,129,481 43,129,481 Loans receivable, net Level 2 (1) 66,728,024 67,313,024 68,411,395 69,008,986 FHLB stock Level 1 710,000 710,000 703,400 703,400 Bankers’ Bank stock Level 1 147,500 147,500 147,500 147,500 Accrued interest receivable Level 1 414,460 414,460 439,855 439,855 Bank owned life insurance Level 1 3,161,422 3,161,422 3,138,112 3,138,112 Financial liabilities: Deposits Level 2 87,751,945 87,718,945 87,740,194 87,828,194 FHLB advances Level 2 14,000,000 14,053,000 14,000,000 14,052,000 Accrued interest payable Level 1 110,856 110,856 13,982 13,982 (1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures. |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) components at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 Unrealized holding losses on securities available-for-sale $ (1,223,130 ) $ (488,791 ) Tax impact 301,492 178,424 $ (921,638 ) $ (310,367 ) |
Basis of Presentation (Stock Co
Basis of Presentation (Stock Conversion) (Details) $ / shares in Units, $ in Millions | Jul. 16, 2016USD ($)$ / sharesshares | Jul. 16, 2016USD ($)$ / sharesshares | Jul. 13, 2016$ / sharesshares |
Class of Stock [Line Items] | |||
Shares sold and held in employee stock ownership plan (in shares) | 171,138 | 171,138 | 171,138 |
Proceeds from the issuance of stock during initial offering | $ | $ 17.1 | ||
Offering costs incurred to date | $ | $ 1.7 | ||
IPO | |||
Class of Stock [Line Items] | |||
Common stock sold in offering (in shares) | 2,139,231 | ||
Price per share (in usd per share) | $ / shares | $ 8 | $ 8 | $ 8 |
Second-step conversion | |||
Class of Stock [Line Items] | |||
Exchange ratio applied to the Conversion | 0.8115 | 0.8115 | |
Common stock issued in the second-step conversion (in shares) | 2,561,542 |
Basis of Presentation (Investme
Basis of Presentation (Investment Securities Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gains (losses) on sale of securities available-for-sale, net | $ (14,465) | $ 0 |
Basis of Presentation (Invest29
Basis of Presentation (Investment in Affiliate Narrative) (Details) | Mar. 31, 2018 |
New Castle Players, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 27.17% |
Basis of Presentation (Earnings
Basis of Presentation (Earnings per Common Share) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income | $ 284,524 | $ 77,874 |
Weighted average common shares outstanding and diluted common shares outstanding (in shares) | 2,410,295 | 2,404,096 |
Basic earnings per common share (in usd per share) | $ 0.12 | $ 0.03 |
Diluted earnings per common share (in usd per share) | $ 0.12 | $ 0.03 |
Basis of Presentation (Employee
Basis of Presentation (Employee Stock Ownership Plan) (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2018USD ($)shares | Jul. 16, 2016$ / sharesshares | Jul. 13, 2016USD ($)Installment$ / sharesshares |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares sold and held in employee stock ownership plan (in shares) | 171,138 | 171,138 | |
Employer loan amount | $ | $ 1,400 | ||
Number of installments for repayment of employer loan | Installment | 25 | ||
Allocated shares (in shares) | 13,691 | ||
Unallocated shares (in shares) | 157,447 | ||
Fair value of unallocated shares | $ | $ 1,533 | ||
IPO | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Price per share (in usd per share) | $ / shares | $ 8 | $ 8 |
Basis of Presentation (Subseque
Basis of Presentation (Subsequent Events) (Details) - $ / shares | Apr. 25, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Subsequent Event [Line Items] | |||
Dividends declared per share of common stock (in usd per share) | $ 0.05 | $ 0.05 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared per share of common stock (in usd per share) | $ 0.05 |
Securities Available-for-Sale33
Securities Available-for-Sale (Amortized Cost to Fair Value) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | $ 47,266,989 | $ 43,622,065 |
Gross unrealized gains | 28,937 | 107,569 |
Gross unrealized losses | 1,252,067 | 600,153 |
Fair value | 46,043,859 | 43,129,481 |
U.S. agency securities | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | 1,239,623 | 1,239,357 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 43,404 | 5,562 |
Fair value | 1,196,219 | 1,233,795 |
Mortgage-backed securities | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | 31,397,455 | 27,331,766 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 864,774 | 547,177 |
Fair value | 30,532,681 | 26,784,589 |
Municipal bonds | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized cost | 14,629,911 | 15,050,942 |
Gross unrealized gains | 28,937 | 107,569 |
Gross unrealized losses | 343,889 | 47,414 |
Fair value | $ 14,314,959 | $ 15,111,097 |
Securities Available-for-Sale34
Securities Available-for-Sale (Amortized Cost and Fair Value of Securities by Maturity) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 1,089,477 | |
Due after five years, but less than ten years | 7,200,981 | |
Due after ten years | 7,579,076 | |
With single maturity date total | 15,869,534 | |
Amortized cost | 47,266,989 | $ 43,622,065 |
Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 1,090,398 | |
Due after five years, but less than ten years | 7,072,735 | |
Due after ten years | 7,348,045 | |
With single maturity date total | 15,511,178 | |
Fair value | 46,043,859 | 43,129,481 |
Mortgage-backed securities | ||
Amortized cost | ||
Without single maturity date | 31,397,455 | |
Amortized cost | 31,397,455 | 27,331,766 |
Fair value | ||
Without single maturity date | 30,532,681 | |
Fair value | $ 30,532,681 | $ 26,784,589 |
Securities Available-for-Sale35
Securities Available-for-Sale (Sales of Investment Securities) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 2,121,241 | $ 0 |
Gross gains on sales | 0 | 0 |
Gross losses on sales | $ 14,465 | $ 0 |
Securities Available-for-Sale36
Securities Available-for-Sale (Narrative) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Accrued interest receivable | $ 414,460 | $ 439,855 |
Available-for-sale securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Accrued interest receivable | $ 235,000 | $ 221,000 |
Securities Available-for-Sale37
Securities Available-for-Sale (Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair value | ||
Up to 12 months | $ 15,132,254 | $ 11,847,512 |
Greater than 12 months | 23,422,556 | 23,312,572 |
Total | 38,554,810 | 35,160,084 |
Gross unrealized loss | ||
Up to 12 months | 397,526 | 98,854 |
Greater than 12 months | 854,541 | 501,299 |
Total | 1,252,067 | 600,153 |
U.S. agency securities | ||
Fair value | ||
Up to 12 months | 957,353 | 989,537 |
Greater than 12 months | 238,866 | 244,248 |
Total | 1,196,219 | 1,233,785 |
Gross unrealized loss | ||
Up to 12 months | 32,447 | 29 |
Greater than 12 months | 10,957 | 5,533 |
Total | 43,404 | 5,562 |
Mortgage-backed securities | ||
Fair value | ||
Up to 12 months | 4,683,175 | 5,944,732 |
Greater than 12 months | 21,023,017 | 20,843,664 |
Total | 25,706,192 | 26,788,396 |
Gross unrealized loss | ||
Up to 12 months | 109,394 | 80,034 |
Greater than 12 months | 755,380 | 467,143 |
Total | 864,774 | 547,177 |
Municipal bonds | ||
Fair value | ||
Up to 12 months | 9,491,726 | 4,913,243 |
Greater than 12 months | 2,160,673 | 2,224,660 |
Total | 11,652,399 | 7,137,903 |
Gross unrealized loss | ||
Up to 12 months | 255,685 | 18,791 |
Greater than 12 months | 88,204 | 28,623 |
Total | $ 343,889 | $ 47,414 |
Loans Receivable (Summary of Lo
Loans Receivable (Summary of Loans Receivable) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | $ 67,293,378 | $ 68,969,029 | ||
Discounts on loans purchased | 17,700 | 10,650 | ||
Deferred loan costs (fees) | (26,027) | (29,964) | ||
Allowance for loan losses | (557,027) | (538,319) | $ (500,375) | $ (487,114) |
Loans receivable, net | 66,728,024 | 68,411,396 | ||
One-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 54,965,103 | 56,091,358 | ||
Allowance for loan losses | (402,310) | (393,341) | (331,736) | (319,849) |
Non-owner occupied one-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 3,080,597 | 3,116,832 | ||
Allowance for loan losses | (26,893) | (25,893) | (28,696) | (28,231) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 3,107,105 | 3,615,351 | ||
Allowance for loan losses | (32,255) | (33,204) | (40,799) | (37,135) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 6,140,573 | 6,145,488 | ||
Allowance for loan losses | $ (95,569) | $ (85,881) | $ (99,144) | $ (101,899) |
Loans Receivable (Narrative) (D
Loans Receivable (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 414,460 | $ 439,855 |
Loans receivable with fixed rates of interest | 40,000,000 | 40,600,000 |
Loans receivable with variable rates of interest | $ 27,300,000 | $ 28,400,000 |
Historical loss experience factor measurement period | 3 years | |
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 | 30 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 | 30 years | |
Loan amount, percentage of appraised value threshold | 75.00% | |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 179,731 | $ 218,967 |
Loans Receivable (Allowance for
Loans Receivable (Allowance for Loan Losses) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 557,027 | 538,319 | ||
Allowance for loan losses, Total | 557,027 | 538,319 | $ 500,375 | $ 487,114 |
Loans receivable, Individually evaluated for impairment | 275,515 | 274,804 | ||
Loans receivable, Collectively evaluated for impairment | 67,017,863 | 68,694,225 | ||
Total loans receivable | 67,293,378 | 68,969,029 | ||
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 | 402,310 | 393,341 | ||
Allowance for loan losses, Total | 402,310 | 393,341 | 331,736 | 319,849 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 54,965,103 | 56,091,358 | ||
Total loans receivable | 54,965,103 | 56,091,358 | ||
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 | 26,893 | 25,893 | ||
Allowance for loan losses, Total | 26,893 | 25,893 | 28,696 | 28,231 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 3,080,597 | 3,116,832 | ||
Total loans receivable | 3,080,597 | 3,116,832 | ||
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 | 32,255 | 33,204 | ||
Allowance for loan losses, Total | 32,255 | 33,204 | 40,799 | 37,135 |
Loans receivable, Individually evaluated for impairment | 275,515 | 274,804 | ||
Loans receivable, Collectively evaluated for impairment | 2,831,590 | 3,340,547 | ||
Total loans receivable | 3,107,105 | 3,615,351 | ||
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 | 95,569 | 85,881 | ||
Allowance for loan losses, Total | 95,569 | 85,881 | $ 99,144 | $ 101,899 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 6,140,573 | 6,145,488 | ||
Total loans receivable | $ 6,140,573 | $ 6,145,488 |
Loans Receivable (Allowance f41
Loans Receivable (Allowance for Loan Losses by Segment) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | $ 538,319 | $ 487,114 |
Charge-offs | 792 | 4,810 |
Recoveries | 0 | 71 |
Provisions | 19,500 | 18,000 |
Ending Balance | 557,027 | 500,375 |
One-to-four family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 393,341 | 319,849 |
Charge-offs | 0 | 4,810 |
Recoveries | 0 | 0 |
Provisions | 8,969 | 16,697 |
Ending Balance | 402,310 | 331,736 |
Non-owner occupied one-to-four family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 25,893 | 28,231 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | 1,000 | 465 |
Ending Balance | 26,893 | 28,696 |
Commercial real estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 33,204 | 37,135 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | (949) | 3,664 |
Ending Balance | 32,255 | 40,799 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 85,881 | 101,899 |
Charge-offs | 792 | 0 |
Recoveries | 0 | 71 |
Provisions | 10,480 | (2,826) |
Ending Balance | $ 95,569 | $ 99,144 |
Loans Receivable (Credit Qualit
Loans Receivable (Credit Quality Indicators by Loan Segment) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 67,293,378 | $ 68,969,029 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 64,793,604 | 65,960,593 |
Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,288,670 | 1,719,095 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,211,104 | 1,289,341 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 54,965,103 | 56,091,358 |
One-to-four family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 53,376,724 | 54,042,992 |
One-to-four family residential | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,012,128 | 1,412,334 |
One-to-four family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 576,251 | 636,032 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 3,080,597 | 3,116,832 |
Non-owner occupied one-to-four family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 2,747,677 | 2,782,817 |
Non-owner occupied one-to-four family residential | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 17,691 | 17,861 |
Non-owner occupied one-to-four family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 315,229 | 316,154 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 3,107,105 | 3,615,351 |
Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 2,795,889 | 3,304,369 |
Commercial real estate | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 35,701 | 36,178 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 275,515 | 274,804 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 6,140,573 | 6,145,488 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 5,873,314 | 5,830,415 |
Consumer | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 223,150 | 252,722 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 44,109 | $ 62,351 |
Loans Receivable (Past Due Loan
Loans Receivable (Past Due Loans) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 1,876,057 | $ 2,409,177 |
Current | 65,417,321 | 66,559,852 |
Total loans receivable | 67,293,378 | 68,969,029 |
Recorded investment, 90 days past due and still accruing | 323,735 | 398,434 |
30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 615,637 | 792,062 |
60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 338,092 | 795,951 |
90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 922,328 | 821,164 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,151,586 | 1,600,382 |
Current | 53,813,517 | 54,490,976 |
Total loans receivable | 54,965,103 | 56,091,358 |
Recorded investment, 90 days past due and still accruing | 284,509 | 341,167 |
One-to-four family residential | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 460,075 | 566,234 |
One-to-four family residential | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 259,130 | 542,356 |
One-to-four family residential | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 432,381 | 491,792 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 194,549 | 194,898 |
Current | 2,886,048 | 2,921,934 |
Total loans receivable | 3,080,597 | 3,116,832 |
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 | 17,861 |
Non-owner occupied one-to-four family residential | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 17,691 | 177,037 |
Non-owner occupied one-to-four family residential | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 176,858 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 311,216 | 310,982 |
Current | 2,795,889 | 3,304,369 |
Total loans receivable | 3,107,105 | 3,615,351 |
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 | 35,701 | 36,178 |
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 | 275,515 | 274,804 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 218,706 | 302,915 |
Current | 5,921,867 | 5,842,573 |
Total loans receivable | 6,140,573 | 6,145,488 |
Recorded investment, 90 days past due and still accruing | 39,226 | 57,267 |
Consumer | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 119,861 | 171,789 |
Consumer | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 61,271 | 76,558 |
Consumer | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 37,574 | $ 54,568 |
Loans Receivable (Loans on Nona
Loans Receivable (Loans on Nonaccrual Status) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 423,387 | $ 425,429 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 147,872 | 150,625 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 275,515 | $ 274,804 |
Deposits (Schedule of Deposits)
Deposits (Schedule of Deposits) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Statement savings | $ 15,047,022 | $ 14,536,815 |
Money market plus | 11,441,057 | 11,749,674 |
NOW | 18,999,009 | 18,749,026 |
Certificates of deposit | 42,264,857 | 42,704,679 |
Deposits | $ 87,751,945 | $ 87,740,194 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Non-interest bearing deposits | $ 4.9 | $ 4.6 |
Taxes on Income (Provision_Bene
Taxes on Income (Provision/Benefit) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Current federal income tax expense (benefit) | $ 25,933 | $ (230) |
Current state income tax expense (benefit) | 14,300 | (1,250) |
Current income tax expense (benefit) | 40,233 | (1,480) |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Deferred federal income tax expense (benefit) | 65,769 | (14,000) |
Deferred state income tax expense (benefit) | 0 | 5,000 |
Deferred income tax expense (benefit) | 65,769 | (9,000) |
Federal income tax expense (benefit) | 91,702 | (14,230) |
State income tax expense (benefit) | 14,300 | 3,750 |
Income tax expense (benefit) | $ 106,002 | $ (10,480) |
Taxes on Income (Narrative) (De
Taxes on Income (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 34.00% | |
Unrecognized tax benefit | $ 0 | ||
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 | $ 523 |
Taxes on Income (Effective Tax
Taxes on Income (Effective Tax Rate Reconciliation) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal tax at statutory rate | $ 82,010 | $ 22,905 |
Items affecting federal income tax rate: | ||
State taxes on income, net of federal benefit | 11,297 | 2,475 |
Tax-exempt income | (11,840) | (22,144) |
Bank-owned life insurance | (4,895) | (14,129) |
Valuation allowance | 2,000 | 11,000 |
Other | 27,430 | (10,587) |
Income tax expense (benefit) | $ 106,002 | $ (10,480) |
Taxes on Income (Deferred Tax A
Taxes on Income (Deferred Tax Assets and Liabilities) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Deferred directors’ fees | $ 185,000 | $ 195,000 |
Allowance for loan losses | 139,000 | 134,000 |
Net operating loss carryforward | 98,000 | 165,000 |
AMT credit | 34,720 | 34,720 |
Charitable contribution | 59,000 | 59,000 |
Professional fees | 48,000 | 49,000 |
Securities available-for-sale | 301,492 | 121,082 |
Fixed assets | 3,000 | 0 |
Other | 30,302 | 23,278 |
Gross deferred tax assets | 898,514 | 781,080 |
Valuation allowance | (98,000) | (96,000) |
Net deferred tax assets | 800,514 | 685,080 |
Deferred tax liabilities: | ||
Prepaid expenses | (14,000) | (14,000) |
FHLB stock dividends | (25,000) | (25,000) |
Intangible assets | (15,000) | (15,000) |
Gross deferred tax liabilities | (54,000) | (54,000) |
Net deferred tax assets | $ 746,514 | $ 631,080 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||
Dividends declared per share of common stock (in usd per share) | $ 0.05 | $ 0.05 |
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0.05 |
Common stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares of common stock repurchased (in shares) | 0 | 0 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Consolidated | ||
Tangible capital: | ||
Actual, Amount | $ 28,876 | $ 28,657 |
Actual, Percent | 23.60% | 23.40% |
For capital adequacy purposes, Amount | $ 5,259 | $ 4,897 |
For capital adequacy purposes, Percent | 4.00% | 4.00% |
Common equity tier 1: | ||
Amount, Actual | $ 28,876 | $ 28,657 |
Actual, Percent | 50.60% | 50.20% |
For capital adequacy purposes, Amount | $ 3,511 | $ 3,283 |
For capital adequacy purposes, Percent | 6.38% | 5.75% |
To be well-capitalized under prompt correction action provisions, Amount | $ 3,665 | $ 3,712 |
To be well-capitalized under prompt correction action provisions, Percent | 6.50% | 6.50% |
Risk-based capital: | ||
Actual, Amount | $ 29,433 | $ 29,195 |
Actual, Percent | 51.50% | 51.10% |
For capital adequacy purposes, Amount | $ 5,571 | $ 5,282 |
For capital adequacy purposes, Percent | 9.88% | 9.25% |
To be well-capitalized under prompt correction action provisions, Amount | $ 5,638 | $ 5,710 |
To be well-capitalized under prompt correction action provisions, Percent | 10.00% | 10.00% |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 28,876 | $ 28,657 |
Actual, Percent | 50.60% | 50.20% |
For capital adequacy purposes, Amount | $ 4,443 | $ 4,140 |
For capital adequacy purposes, Percent | 7.88% | 7.25% |
To be well-capitalized under prompt correction action provisions, Amount | $ 4,511 | $ 4,568 |
To be well-capitalized under prompt correction action provisions, Percent | 8.00% | 8.00% |
WCF Financial Bank | ||
Tangible capital: | ||
Actual, Amount | $ 19,486 | $ 19,117 |
Actual, Percent | 15.70% | 16.50% |
For capital adequacy purposes, Amount | $ 4,958 | $ 4,637 |
For capital adequacy purposes, Percent | 4.00% | 4.00% |
To be well-capitalized under prompt correction action provisions, Amount | $ 2,753 | $ 5,796 |
To be well-capitalized under prompt correction action provisions, Percent | 5.00% | 5.00% |
Common equity tier 1: | ||
Amount, Actual | $ 19,486 | $ 19,117 |
Actual, Percent | 35.40% | 34.50% |
For capital adequacy purposes, Amount | $ 3,571 | $ 3,191 |
For capital adequacy purposes, Percent | 6.38% | 5.75% |
To be well-capitalized under prompt correction action provisions, Amount | $ 3,579 | $ 3,607 |
To be well-capitalized under prompt correction action provisions, Percent | 6.50% | 6.50% |
Risk-based capital: | ||
Actual, Amount | $ 20,043 | $ 19,655 |
Actual, Percent | 36.40% | 35.40% |
For capital adequacy purposes, Amount | $ 5,441 | $ 5,133 |
For capital adequacy purposes, Percent | 9.88% | 9.25% |
To be well-capitalized under prompt correction action provisions, Amount | $ 5,507 | $ 5,549 |
To be well-capitalized under prompt correction action provisions, Percent | 10.00% | 10.00% |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 19,486 | $ 19,117 |
Actual, Percent | 35.40% | 34.50% |
For capital adequacy purposes, Amount | $ 4,339 | $ 4,023 |
For capital adequacy purposes, Percent | 7.88% | 7.25% |
To be well-capitalized under prompt correction action provisions, Amount | $ 4,405 | $ 4,439 |
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, 2018 | Dec. 31, 2017 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | $ 0 | $ 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 46,043,859 | $ 43,129,481 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 1,196,219 | 1,233,795 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 30,532,681 | 26,784,589 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 14,314,959 | 15,111,097 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 46,043,859 | 43,129,481 |
Recurring | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 1,196,219 | 1,233,795 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 30,532,681 | 26,784,589 |
Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 14,314,959 | 15,111,097 |
Recurring | Level 1 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 1 inputs | U.S. agency 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 | 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 2 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 46,043,859 | 43,129,481 |
Recurring | Level 2 inputs | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 1,196,219 | 1,233,795 |
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 | 30,532,681 | 26,784,589 |
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 | 14,314,959 | 15,111,097 |
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 | U.S. agency 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 | 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 |
Fair Value (Estimated Fair Valu
Fair Value (Estimated Fair Value of Financial Instruments) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Securities available-for-sale, at fair value | $ 46,043,859 | $ 43,129,481 |
Carrying amount | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 46,043,859 | 43,129,481 |
Approximate fair value | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 46,043,859 | 43,129,481 |
Level 1 | Carrying amount | ||
Financial assets: | ||
Cash and due from banks | 2,970,513 | 3,310,400 |
Federal funds sold | 1,334,000 | 2,672,000 |
Time deposits in other financial institutions | 4,545,580 | 4,545,878 |
FHLB stock | 710,000 | 703,400 |
Bankers’ Bank stock | 147,500 | 147,500 |
Accrued interest receivable | 414,460 | 439,855 |
Bank owned life insurance | 3,161,422 | 3,138,112 |
Financial liabilities: | ||
Accrued interest payable | 110,856 | 13,982 |
Level 1 | Approximate fair value | ||
Financial assets: | ||
Cash and due from banks | 2,970,513 | 3,310,400 |
Federal funds sold | 1,334,000 | 2,672,000 |
Time deposits in other financial institutions | 4,545,580 | 4,545,878 |
FHLB stock | 710,000 | 703,400 |
Bankers’ Bank stock | 147,500 | 147,500 |
Accrued interest receivable | 414,460 | 439,855 |
Bank owned life insurance | 3,161,422 | 3,138,112 |
Financial liabilities: | ||
Accrued interest payable | 110,856 | 13,982 |
Level 2 | Carrying amount | ||
Financial assets: | ||
Loans receivable, net | 66,728,024 | 68,411,395 |
Financial liabilities: | ||
Deposits | 87,751,945 | 87,740,194 |
FHLB advances | 14,000,000 | 14,000,000 |
Level 2 | Approximate fair value | ||
Financial assets: | ||
Loans receivable, net | 67,313,024 | 69,008,986 |
Financial liabilities: | ||
Deposits | 87,718,945 | 87,828,194 |
FHLB advances | $ 14,053,000 | $ 14,052,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Commitments to extend credit - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheets risks, liability | $ 178 | $ 201 |
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 | 2.99% | 2.99% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, interest rate, liability | 5.00% | 5.00% |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Unrealized holding losses on securities available-for-sale | $ (1,223,130) | $ (488,791) |
Tax impact | 301,492 | 178,424 |
Accumulated other comprehensive income (loss) | $ (921,638) | $ (310,367) |