Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 11, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | Ottawa Bancorp Inc | |
Entity Central Index Key | 1,675,192 | |
Trading Symbol | ottw | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 3,456,111 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets ( C
Consolidated Balance Sheets ( Current Period Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 3,158,533 | $ 2,096,966 |
Interest bearing deposits | 1,310,474 | 5,038,753 |
Total cash and cash equivalents | 4,469,007 | 7,135,719 |
Time deposits | 250,000 | 250,000 |
Federal funds sold | 54,351,000 | 1,604,000 |
Securities available for sale | 44,149,539 | 46,984,907 |
Non-marketable equity securities | 753,321 | 1,358,121 |
Loans, net of allowance for loan losses of $2,308,154 and $2,224,006 at September 30, 2016 and December 31, 2015, respectively | 154,943,940 | 140,110,201 |
Loans held for sale | 710,700 | |
Premises and equipment, net | 6,896,257 | 7,058,047 |
Accrued interest receivable | 800,249 | 775,641 |
Foreclosed real estate | 33,000 | 313,368 |
Deferred tax assets | 2,097,344 | 2,725,354 |
Cash value of life insurance | 2,232,711 | 2,195,424 |
Goodwill | 649,869 | 649,869 |
Core deposit intangible | 382,000 | 451,000 |
Other assets | 3,367,879 | 1,951,700 |
Total assets | 276,086,816 | 213,563,351 |
Deposits: | ||
Non-interest bearing | 10,285,561 | 10,325,832 |
Interest bearing | 221,601,449 | 166,409,076 |
Total deposits | 231,887,010 | 176,734,908 |
FHLB advances | 8,630,697 | 2,139,117 |
Accrued interest payable | 1,697 | 394 |
Other liabilities | 3,150,259 | 3,600,655 |
Total liabilities | 243,669,663 | 182,475,074 |
Commitments and contingencies | ||
Redeemable common stock held by ESOP plan | 561,449 | 376,543 |
Stockholders' Equity | ||
Common stock, $.01 par value, 12,000,000 shares authorized; 3,001,055 shares issued | 30,010 | 30,010 |
Additional paid-in-capital | 15,855,813 | 15,845,341 |
Retained earnings | 17,247,858 | 16,194,374 |
Unallocated ESOP shares | (165,347) | (203,504) |
Unearned management recognition plan shares | (447) | (3,751) |
Accumulated other comprehensive income | 661,384 | 437,925 |
33,629,271 | 32,300,395 | |
Treasury stock, at cost; 106,932 shares | (1,212,118) | (1,212,118) |
Maximum cash obligation related to ESOP shares | (561,449) | (376,543) |
Total stockholders' equity | 31,855,704 | 30,711,734 |
Total liabilities and stockholders' equity | $ 276,086,816 | $ 213,563,351 |
Consolidated Balance Sheets ( 3
Consolidated Balance Sheets ( Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for loan losses | $ 2,308,154 | $ 2,224,006 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 12,000,000 | 12,000,000 |
Common stock, shares issued (in shares) | 3,001,055 | 3,001,055 |
Treasury stock, shares (in shares) | 106,932 | 106,932 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 1,857,478 | $ 1,672,084 | $ 5,432,531 | $ 5,140,205 |
Securities: | ||||
Residential mortgage-backed and related securities | 122,919 | 159,046 | 423,463 | 473,026 |
State and municipal securities | 133,429 | 142,296 | 404,133 | 425,199 |
Dividends on non-marketable equity securities | 1,058 | 1,680 | 5,218 | 4,958 |
Interest-bearing deposits | 11,903 | 3,545 | 22,301 | 11,415 |
Total interest and dividend income | 2,126,787 | 1,978,651 | 6,287,646 | 6,054,803 |
Interest expense: | ||||
Deposits | 205,843 | 215,036 | 611,533 | 658,202 |
Borrowings | 15,181 | 15,847 | 26,921 | 47,379 |
Total interest expense | 221,024 | 230,883 | 638,454 | 705,581 |
Net interest income | 1,905,763 | 1,747,768 | 5,649,192 | 5,349,222 |
Provision for loan losses | 25,000 | 302,500 | 220,000 | |
Net interest income after provision for loan losses | 1,880,763 | 1,747,768 | 5,346,692 | 5,129,222 |
Other income: | ||||
Gain on sale of securities | 8,418 | 21,630 | ||
Gain on sale of loans | 142,646 | 57,812 | 330,316 | 138,817 |
Gain on sale of OREO | 76,759 | 168,974 | 188,207 | 215,907 |
Gain on sale of repossessed assets | 7,237 | 1,680 | 9,572 | |
Loan origination and servicing income | 102,652 | 100,472 | 239,186 | 244,751 |
Origination of mortgage servicing rights, net of amortization | 14,879 | (3,434) | 42,433 | 7,402 |
Customer service fees | 118,761 | 122,735 | 318,688 | 328,293 |
Income on bank owned life insurance | 12,560 | 11,549 | 37,287 | 35,805 |
Other | 29,269 | 26,965 | 77,885 | 79,737 |
Total other income | 497,526 | 492,310 | 1,244,100 | 1,091,318 |
Other expenses: | ||||
Salaries and employee benefits | 840,038 | 739,607 | 2,504,956 | 2,151,162 |
Directors fees | 40,800 | 37,800 | 122,400 | 113,400 |
Occupancy | 171,425 | 168,137 | 477,615 | 498,748 |
Deposit insurance premium | 37,122 | 45,673 | 127,114 | 134,778 |
Legal and professional services | 83,012 | 82,528 | 257,957 | 267,931 |
Data processing | 130,864 | 124,221 | 386,597 | 1,296,387 |
Loss on sale of securities | 3,261 | 2,039 | ||
Loan expense | 124,851 | 102,321 | 284,672 | 258,007 |
Valuation adjustments and expenses on foreclosed real estate | 31,703 | 44,865 | 100,639 | 154,768 |
Loss on sale of OREO | 4,716 | 4,716 | ||
Loss on sale of repossessed assets | 11,971 | |||
Other | 269,245 | 227,380 | 747,318 | 702,685 |
Total other expenses | 1,733,776 | 1,572,532 | 5,017,245 | 5,591,876 |
Income before income tax expense | 644,513 | 667,546 | 1,573,547 | 628,664 |
Income tax expense | 223,251 | 210,564 | 520,063 | 104,995 |
Net income | $ 421,262 | $ 456,982 | $ 1,053,484 | $ 523,669 |
Basic earnings per share (in dollars per share) | $ 0.15 | $ 0.16 | $ 0.37 | $ 0.18 |
Diluted earnings per share (in dollars per share) | $ 0.15 | $ 0.16 | $ 0.36 | $ 0.18 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 421,262 | $ 456,982 | $ 1,053,484 | $ 523,669 |
Other comprehensive income, before tax: | ||||
Unrealized holding (losses) gains arising during the period | (80,126) | 129,597 | 372,176 | 128,052 |
Reclassification adjustment for (gains) included in net income | (5,157) | (19,591) | ||
Other comprehensive (loss) income, before tax | (80,126) | 129,597 | 367,019 | 108,461 |
Income tax (benefit) expense related to items of other comprehensive (loss) income | (31,341) | 50,307 | 143,560 | 42,103 |
Other comprehensive (loss) income, net of tax | (48,785) | 79,290 | 223,459 | 66,358 |
Comprehensive income | $ 372,477 | $ 536,272 | $ 1,276,943 | $ 590,027 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Paid to Depositors [Member] | ||
Supplemental Disclosures of Cash Flow Information | ||
Interest paid to depositors | $ 610,230 | $ 655,777 |
Interest Paid on Borrowings [Member] | ||
Supplemental Disclosures of Cash Flow Information | ||
Interest paid to depositors | 26,921 | 47,379 |
Net income | 1,053,484 | 523,669 |
Depreciation | 178,279 | 165,740 |
Provision for loan losses | 302,500 | 220,000 |
Provision for deferred income taxes | 484,450 | 115,195 |
Net amortization of premiums and discounts on securities | 493,126 | 535,220 |
Gain on sale of securities, net | (5,157) | (19,591) |
Origination of mortgage loans held for sale | (12,746,064) | (5,075,975) |
Proceeds from sale of mortgage loans held for sale | 12,365,680 | 5,112,792 |
Gain on sale of loans, net | (330,316) | (138,817) |
Origination and purchase of mortgage servicing rights, net of amortization | (42,433) | (7,402) |
Gain on sale of foreclosed real estate, net | (183,491) | (215,907) |
Write down of foreclosed real estate | 28,551 | 75,490 |
(Gain) loss on sale of repossessed assets, net | (1,680) | 2,399 |
ESOP compensation expense | 44,258 | 41,981 |
MRP compensation expense | 3,304 | 6,413 |
Compensation expense on RRP options granted | 4,371 | 7,727 |
Amortization of core deposit intangible | 69,000 | 87,000 |
Loans | 90,729 | 115,835 |
Certificates of deposit | (53,000) | (82,000) |
Federal Home Loan Bank Advances | 2,777 | |
Increase in cash surrender value of life insurance | (37,287) | (35,805) |
(Increase) decrease in accrued interest receivable | (24,608) | 57,546 |
(Increase) decrease in other assets | (1,296,435) | 402,798 |
Decrease in accrued interest payable and other liabilities | (449,093) | (801,265) |
Net cash (used in) provided by operating activities | (49,055) | 1,093,043 |
Purchases | (3,806,910) | (9,481,877) |
Sales, calls, maturities and paydowns | 6,521,328 | 11,206,110 |
Sale of non-marketable equity securities | 604,800 | 422,553 |
Net decrease in time deposits | 205,861 | |
Net (increase) decrease in loans | (15,380,158) | 1,844,187 |
Net decrease (increase) in federal funds sold | (52,747,000) | (4,006,000) |
Proceeds from sale of foreclosed real estate | 490,062 | 1,218,318 |
Proceeds from sale of repossessed assets | 22,805 | 102,629 |
Purchase of premises and equipment | (16,489) | (192,894) |
Net cash (used in) provided by investing activities | (64,311,562) | 1,318,887 |
Net increase (decrease) in deposits | 55,205,102 | (390,208) |
Proceeds from Federal Home Loan Bank advances | 10,000,000 | |
Principal reduction of Federal Home Loan Bank advances | (3,511,197) | (2,811,033) |
Proceeds from federal funds purchased | ||
Net cash provided by (used in) financing activities | 61,693,905 | (3,201,241) |
Net (decrease) in cash and cash equivalents | (2,666,712) | (789,311) |
Beginning of period | 7,135,719 | 5,193,235 |
End of period | 4,469,007 | 4,403,924 |
Income taxes paid, net of refunds received | (48,000) | |
Supplemental Schedule of Noncash Investing and Financing Activities | ||
Real estate acquired through or in lieu of foreclosure | 235,190 | 991,679 |
Other assets acquired in settlement of loans | 46,000 | 73,100 |
Sale of foreclosed real estate through loan origination | 128,000 | |
Increase in ESOP put option liability | $ 184,906 | $ 38,160 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | NOTE 1 – NATURE OF BUSINESS Ottawa Bancorp, Inc. (the “Company”) is a Maryland corporation that was incorporated in May 2016 to be the successor to Ottawa Savings Bancorp, Inc. (“Ottawa Savings Bancorp”) upon completion of the second-step conversion of Ottawa Savings Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. Ottawa Savings Bancorp MHC was the former mutual holding company for Ottawa Savings Bancorp prior to completion of the second-step conversion. In conjunction with the second-step conversion, Ottawa Savings Bancorp MHC merged into Ottawa Savings Bancorp (and ceased to exist), and Ottawa Savings Bancorp merged into the Company, with the Company as the surviving entity. The second-step conversion was completed on October 11, 2016, at which time the Company sold, for gross proceeds of $23.8 million, a total of 2,383,950 shares of common stock at $10.00 per share, including 190,716 shares purchased by the Bank’s employee stock ownership plan. As part of the second-step conversion, each of the existing outstanding shares of Ottawa Savings Bancorp common stock owned by persons other than Ottawa Savings Bancorp MHC was converted into 1.1921 of a share of Company common stock. Because the second-step conversion and offering were not completed until October 11, 2016, the financial and other information included in this Quarterly Report on Form 10-Q as of September 30, 2016 relates to Ottawa Savings Bancorp, the predecessor company of the Company. The Company is a publicly traded savings and loan company with assets of $276.1 million at September 30, 2016 and is headquartered in Ottawa, Illinois. The Bank’s business is to attract deposits from the general public and use those funds to originate and purchase one-to-four family, multi-family and non-residential real estate, construction, commercial and consumer loans, which the Bank primarily holds for investment. The Bank has continually diversified its products to meet the needs of the communities it serves. On December 31, 2014, Ottawa Savings Bancorp acquired Twin Oaks Savings Bank (“Twin Oaks”) and merged Twin Oaks with and into the Bank, with the Bank being the surviving entity in the merger (the “Merger”). As a result of the Merger, the Company increased its market share in the LaSalle County market and expanded into Grundy County. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | NOTE 2 – BASIS OF PRESENTATION The consolidated financial statements presented in this quarterly report include the accounts of the Company and the Bank. The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and predominant practices followed by the financial services industry, and are unaudited. In the opinion of the Company’s management, all adjustments, consisting of normal recurring adjustments, which the Company considers necessary to fairly state the Company’s financial position and the results of operations and cash flows have been recorded. The interim financial statements should be read in conjunction with the audited financial statements and accompanying notes of the Company for the year ended December 31, 2015. Certain amounts in the accompanying financial statements and footnotes for 2015 have been reclassified with no effect on net income or stockholders’ equity to be consistent with the 2016 classifications. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. |
Note 3 - Use of Estimates
Note 3 - Use of Estimates | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Use of Estimates [Text Block] | NOTE 3 – USE OF ESTIMATES The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Changes in these estimates and assumptions are considered reasonably possible and may have a material impact on the consolidated financial statements and, thus, actual results could differ from the amounts reported and disclosed herein. At September 30, 2016, there were no material changes in the Company’s significant accounting policies from those disclosed in the Form 10-K filed by Ottawa Savings Bancorp with the Securities and Exchange Commission on March 30, 2016. |
Note 4 - Critical Accounting Po
Note 4 - Critical Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 4 – CRITICAL ACCOUNTING POLICIES We consider accounting policies involving significant judgments and assumptions by management that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies. We consider the allowance for loan losses to be our critical accounting policy. Allowance for Loan Losses A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. |
Note 5 - Earnings Per Share
Note 5 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 5 – EARNINGS PER SHARE Basic earnings per share is based on net income divided by the weighted average number of shares outstanding during the period, including allocated and committed-to-be-released Employee Stock Ownership Plan (“ESOP”) shares and vested Management Recognition Plan (“MRP”) shares. Diluted earnings per share show the dilutive effect, if any, of additional common shares issuable under stock options and awards. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income (loss) available to common stockholders $ 421,262 $ 456,982 $ 1,053,484 $ 523,669 Basic potential common shares: Weighted average shares outstanding 2,894,123 2,894,123 2,894,123 2,894,123 Weighted average unallocated ESOP shares (17,374 ) (22,461 ) (18,638 ) (23,720 ) Weighted average unvested MRP shares (1,047 ) (2,795 ) (1,047 ) (2,795 ) Basic weighted average shares outstanding 2,875,702 2,868,867 2,874,438 2,867,608 Dilutive potential common shares: Weighted average unrecognized compensation on MRP shares 890 2,409 913 2,373 Weighted average RRP options outstanding 21,017 9,413 14,963 11,112 Dilutive weighted average shares outstanding 2,897,609 2,880,689 2,890,314 2,881,093 Basic earnings (loss) per share $ 0.15 $ 0.16 $ 0.37 $ 0.18 Diluted earnings (loss) per share $ 0.15 $ 0.16 $ 0.36 $ 0.18 |
Note 6 - Employee Stock Ownersh
Note 6 - Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 6 – EMPLOYEE STOCK OWNERSHIP PLAN On July 11, 2005, the Bank adopted an ESOP for the benefit of substantially all employees. Upon adoption of the ESOP, the ESOP borrowed $763,140 from the Ottawa Savings Bancorp and used those funds to acquire 76,314 shares of the Ottawa Savings Bancorp's stock in the initial public offering at a price of $10.00 per share. In addition, on October 11, 2016, the ESOP borrowed $1.9 million from the Company and used those funds to acquire 190,716 shares of the Company’s common stock at a price of $10.00 per share in the Company’s second-step conversion offering. Shares purchased by the ESOP with the loan proceeds are held in a suspense account and are allocated to ESOP participants on a pro rata basis as principal and interest payments are made by the ESOP to the Company. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Company’s discretionary contributions to the ESOP and earnings on the ESOP assets. Annual principal and interest payments of approximately $77,000 are to be made by the ESOP. As shares are released from collateral, the Company will report compensation expense equal to the current market price of the shares, and the shares will become outstanding for earnings-per-share (“EPS”) computations. Dividends on allocated ESOP shares reduce retained earnings, and dividends on unallocated ESOP shares reduce accrued interest. A terminated participant or the beneficiary of a deceased participant who received a distribution of employer stock from the ESOP has the right to require the Company to purchase such shares at their fair market value any time within 60 days of the distribution date. If this right is not exercised, an additional 60-day exercise period is available in the year following the year in which the distribution is made and begins after a new valuation of the stock has been determined and communicated to the participant or beneficiary. At September 30, 2016, 41,283 shares at a fair value of $13.60 have been classified as mezzanine capital. The following table reflects the status of the shares held by the ESOP: September 30, December 31, 2016 2015 Shares allocated 59,780 55,964 Shares withdrawn from the plan (18,497 ) (18,497 ) Unallocated shares 16,534 20,350 Total ESOP shares 57,817 57,817 Fair value of unallocated shares $ 224,876 $ 204,518 |
Note 7 - Investment Securities
Note 7 - Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 7 – INVESTMENT SECURITIES The amortized cost and fair values of securities, with gross unrealized gains and losses, follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2016: Available for Sale State and municipal securities $ 18,299,408 $ 714,188 $ - $ 19,013,596 Residential mortgage-backed securities 24,763,845 459,902 87,804 25,135,943 $ 43,063,253 $ 1,174,090 $ 87,804 $ 44,149,539 December 31, 2015: Available for Sale State and municipal securities $ 18,733,573 $ 525,089 $ 21,454 $ 19,237,208 Residential mortgage-backed securities 27,532,067 365,558 149,926 27,747,699 $ 46,265,640 $ 890,647 $ 171,380 $ 46,984,907 The amortized cost and fair value at September 30, 2016, by contractual maturity, are shown below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be called or prepaid without penalties. Therefore, stated maturities of residential mortgage-backed securities are not disclosed. Securities Available for Sale Amortized Fair Cost Value Due in three months or less $ - $ - Due after three months through one year 336,717 341,164 Due after one year through five years 3,537,316 3,652,423 Due after five years through ten years 5,514,468 5,740,590 Due after ten years 8,910,907 9,279,419 Residential mortgage-backed securities 24,763,845 25,135,943 $ 43,063,253 $ 44,149,539 The following table reflects securities with gross unrealized losses for less than 12 months and for 12 months or more at September 30, 2016 and December 31, 2015: Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2016 Securities Available for Sale State and municipal securities $ - $ - $ - $ - $ - $ - Residential mortgage-backed securities 1,837,258 7,778 5,758,660 80,026 7,595,918 87,804 $ 1,837,258 $ 7,778 $ 5,758,660 $ 80,026 $ 7,595,918 $ 87,804 December 31, 2015 Securities Available for Sale State and municipal securities $ 169,601 $ 101 $ 436,067 $ 21,353 $ 605,668 $ 21,454 Residential mortgage-backed securities 10,468,746 120,218 1,247,527 29,708 11,716,273 149,926 $ 10,638,347 $ 120,319 $ 1,683,594 $ 51,061 $ 12,321,941 $ 171,380 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability to retain and whether it is not more likely than not the Company will be required to sell its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. At September 30, 2016, 12 securities had unrealized losses with an aggregate depreciation of 1.14% from the Company’s amortized cost basis. The Company does not consider these investments to be other than temporarily impaired at September 30, 2016 due to the following: ● Decline in value is attributable to interest rates. ● The value did not decline due to credit quality. ● The Company does not intend to sell these securities. ● The Company has adequate liquidity such that it will not more likely than not have to sell these securities before recovery of the amortized cost basis, which may be at maturity. There were no sales of securities during the three months ended September 30, 2016 and 2015. There were proceeds of $1.7 million from the sales of securities for the nine months ended September 30, 2016 and proceeds of $5.6 million for the nine months ended September 30, 2015. The sales during the nine months ended September 30, 2016 resulted in gross realized gains of $8,418 and gross realized losses of $3,261, for net realized gains of $5,157. The sales during the nine months ended September 30, 2015 resulted in gross realized gains of $21,630 and gross realized losses of $2,039, for net realized gains of $19,591. The tax provision applicable to the realized gains amounted to $2,002 and $7,605, respectively, for the nine months ended September 30, 2016 and 2015. |
Note 8 - Loans and Allowance fo
Note 8 - Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 8 – LOANS AND ALLOWANCE FOR CREDIT LOSSES The components of loans, net of deferred loan costs (fees), are as follows: September 30, December 31, 2016 2015 Mortgage loans: One-to-four family residential loans $ 102,562,294 $ 99,254,737 Multi-family residential loans 4,259,956 3,969,207 Total mortgage loans 106,822,250 103,223,944 Other loans: Non-residential real estate loans 22,727,775 20,177,322 Commercial loans 13,058,919 12,069,815 Consumer direct 2,691,540 1,651,371 Purchased auto 11,951,610 5,211,755 Total other loans 50,429,844 39,110,263 Gross loans 157,252,094 142,334,207 Less: Allowance for loan losses (2,308,154 ) (2,224,006 ) Loans, net $ 154,943,940 $ 140,110,201 The following table reflects the carrying amount of loans acquired in the Twin Oaks merger, which are included in the loan categories above as of the dates indicated. September 30, December 31, 2016 2015 Mortgage loans: One-to-four family residential loans $ 18,792,141 $ 20,752,355 Multi-family residential loans 274,018 294,020 Total mortgage loans 19,066,159 21,046,375 Other loans: Non-residential real estate loans 2,580,186 2,685,987 Commercial loans 840,174 852,077 Consumer direct 241,921 541,174 Total other loans 3,662,281 4,079,238 Gross loans 22,728,440 25,125,613 Less: Allowance for loan losses (100,000 ) (85,000 ) Loans, net $ 22,628,440 $ 25,040,613 Purchases of loans receivable, segregated by class of loans, for the periods indicated were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Purchased auto loans $ 1,010,717 $ - $ 9,351,997 $ - Net (charge-offs) / recoveries, segregated by class of loans, for the periods indicated were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 One-to-four family $ 17,802 $ (157,703 ) $ (173,225 ) $ (73,744 ) Multi-family 3,972 4,472 11,915 (21,477 ) Non-residential - (18,307 ) - (18,307 ) Commercial - - - - Consumer direct 1,551 (11,906 ) 5,005 (55,577 ) Purchased auto (28,212 ) (20,185 ) (62,047 ) (40,915 ) Net (charge-offs)/recoveries $ (4,887 ) $ (203,629 ) $ (218,352 ) $ (210,020 ) The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2016 and 2015: September 30, 2016 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,574,598 $ 167,485 $ 275,347 $ 53,256 $ 60,491 $ 156,864 $ 2,288,041 Provision charged to income (28,679 ) (132,076 ) 98,221 21,914 22,610 43,010 25,000 Loans charged off (2,698 ) - - - - (29,718 ) (32,416 ) Recoveries of loans previously charged off 20,500 3,972 - - 1,551 1,506 27,529 Balance at end of period $ 1,563,721 $ 39,381 $ 373,568 $ 75,170 $ 84,652 $ 171,662 $ 2,308,154 September 30, 2015 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,986,275 $ 143,970 $ 243,010 $ 32,650 $ 29,199 $ 93,112 $ 2,528,216 Provision charged to income (122,360 ) 18,729 67,433 12,777 18,628 4,793 - Loans charged off (158,302 ) - (18,307 ) - (13,647 ) (21,772 ) (212,028 ) Recoveries of loans previously charged off 599 4,472 - - 1,741 1,587 8,399 Balance at end of period $ 1,706,212 $ 167,171 $ 292,136 $ 45,427 $ 35,921 $ 77,720 $ 2,324,587 The following table presents the activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2016 and 2015: September 30, 2016 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,727,582 $ 142,237 $ 198,340 $ 51,306 $ 37,187 $ 67,354 $ 2,224,006 Provision charged to income 9,364 (114,771 ) 175,228 23,864 42,460 166,355 302,500 Loans charged off (233,264 ) - - - - (68,011 ) (301,275 ) Recoveries of loans previously charged off 60,039 11,915 - - 5,005 5,964 82,923 Balance at end of period $ 1,563,721 $ 39,381 $ 373,568 $ 75,170 $ 84,652 $ 171,662 $ 2,308,154 September 30, 2015 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,812,448 $ 121,918 $ 245,098 $ 35,947 $ 10,804 $ 88,392 $ 2,314,607 Provision charged to income (32,492 ) 66,730 65,345 9,480 80,694 30,243 220,000 Loans charged off (168,359 ) (33,892 ) (18,307 ) - (60,055 ) (46,062 ) (326,675 ) Recoveries of loans previously charged off 94,615 12,415 - - 4,478 5,147 116,655 Balance at end of period $ 1,706,212 $ 167,171 $ 292,136 $ 45,427 $ 35,921 $ 77,720 $ 2,324,587 The following table presents the recorded investment in loans and the related allowances allocated by portfolio segment and based on impairment method as of September 30, 2016 and December 31, 2015: September 30, 2016 One-to-four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Loans individually evaluated for impairment $ 1,739,851 $ - $ 1,880,189 $ - $ - $ 12,569 $ 3,632,609 Loans acquired with deteriorated credit quality 479,835 - - - - - 479,835 Loans collectively evaluated for impairment 100,342,608 4,259,956 20,847,586 13,058,919 2,691,540 11,939,041 153,139,650 Ending Balance $ 102,562,294 $ 4,259,956 $ 22,727,775 $ 13,058,919 $ 2,691,540 $ 11,951,610 $ 157,252,094 Period-end amount allocated to: Loans individually evaluated for impairment $ 211,410 $ - $ 252,352 $ - $ - $ 6,285 $ 470,047 Loans acquired with deteriorated credit quality 35,368 - - - - - 35,368 Loans collectively evaluated for impairment 1,316,943 39,381 121,216 75,170 84,652 165,377 1,802,739 Balance at end of period $ 1,563,721 $ 39,381 $ 373,568 $ 75,170 $ 84,652 $ 171,662 $ 2,308,154 December 31, 2015 One-to-four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Loans individually evaluated for impairment $ 2,311,855 $ - $ 2,069,922 $ - $ - $ 3,069 $ 4,384,846 Loans acquired with deteriorated credit quality 575,605 - - - - - 575,605 Loans collectively evaluated for impairment 96,367,277 3,969,207 18,107,400 12,069,815 1,651,371 5,208,686 137,373,756 Ending Balance $ 99,254,737 $ 3,969,207 $ 20,177,322 $ 12,069,815 $ 1,651,371 $ 5,211,755 $ 142,334,207 Period-end amount allocated to: Loans individually evaluated for impairment $ 295,770 $ - $ 75,086 $ - $ - $ - $ 370,856 Loans acquired with deteriorated credit quality 15,828 - - - - - 15,828 Loans collectively evaluated for impairment 1,415,984 142,237 123,254 51,306 37,187 67,354 1,837,322 Balance at end of period $ 1,727,582 $ 142,237 $ 198,340 $ 51,306 $ 37,187 $ 67,354 $ 2,224,006 The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. The following table presents loans individually evaluated for impairment and loans acquired with deteriorated credit quality, by class of loans, as of September 30, 2016 and December 31, 2015: September 30, 2016 Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment One-to-four family $ 2,303,698 $ 1,022,446 $ 1,197,240 $ 2,219,686 $ 246,778 $ 2,715,325 Multi-family - - - - - - Non-residential 1,880,189 - 1,880,189 1,880,189 252,352 1,956,910 Commercial - - - - - - Consumer direct - - - - - - Purchased auto 12,569 - 12,569 12,569 6,285 6,826 $ 4,196,456 $ 1,022,446 $ 3,089,998 $ 4,112,444 $ 505,415 $ 4,679,061 December 31, 2015 Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment One-to-four family $ 3,014,703 $ 1,902,819 $ 984,641 $ 2,887,460 $ 311,598 $ 3,596,800 Multi-family - - - - - - Non-residential 2,069,922 389,961 1,679,961 2,069,922 75,086 2,114,684 Commercial - - - - - 21,789 Consumer direct - - - - - 3,464 Purchased auto 3,069 3,069 - 3,069 - 6,574 $ 5,087,694 $ 2,295,849 $ 2,664,602 $ 4,960,451 $ 386,684 $ 5,743,311 For the three and nine months ended September 30, 2016, the Company recognized approximately $3,000 in cash basis interest income on impaired loans. For the three and nine months ended September 30, 2015, the Company recognized no accrued or cash basis interest income on impaired loans. At September 30, 2016, there were 35 impaired loans, including loans acquired with deteriorated credit quality, totaling approximately $4.1 million, compared to 34 impaired loans totaling approximately $5.0 million at December 31, 2015. The change in impaired loans was a result of writing down and moving two impaired loans totaling approximately $0.1 million to OREO, the pay-off or charge-off of six impaired loans totaling approximately $0.5 million, upgrading and returning seven loans totaling approximately $0.8 million to accrual status, and payments of approximately $0.3 million, offset by the addition of 14 loans totaling approximately $0.9 million to the impaired loan list. Our loan portfolio also includes certain loans that have been modified in a troubled debt restructuring (“TDR”), where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forbearance or other actions. TDRs are classified as non-performing at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or use the current fair value of the collateral, less estimated selling costs, for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. Impaired loans at September 30, 2016 included $2.4 million of loans whose terms have been modified in troubled debt restructurings, compared to $2.6 million at December 31, 2015. The amount of TDR loans included in impaired loans decreased approximately $0.2 million as a result of principal payments and decreased approximately $0.1 million as a result of moving one TDR to OREO, off-set by an increase due to the restructure of two impaired loans totaling approximately $0.1 million. The remaining restructured loans are being monitored by management and remain on nonaccrual status as they have not, per accounting guidelines, performed in accordance with their restructured terms for the requisite period of time (generally at least six consecutive months) to be returned to accrual status. There were no new loans classified as TDRs during the three months ended September 30, 2016 and 2015. Loans classified as TDRs during the nine months ended September 30, 2016 and 2015, segregated by class, are shown in the tables below. Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Number of Modifications Recorded Investment Increase in Allowance Number of Modifications Recorded Investment Increase in Allowance (as of period end) (as of period end) One-to-four family 2 $ 80,814 $ - - $ - $ - Multi-family - - - - - - Non-residential - - - - - - Commercial - - - - - - Consumer direct - - - - - - Purchased auto - - - - - - 2 $ 80,814 $ - - $ - $ - There were no TDR loans that were restructured during the twelve months prior to September 30, 2016 and 2015 that had payment defaults (i.e., 60 days or more past due following a modification), during the three or nine months ended September 30, 2016 and 2015. All TDRs are evaluated for possible impairment and any impairment identified is recognized through the allowance. Additionally, the qualitative factors are updated quarterly for trends in economic and non-performing factors, including collateral securing TDRs. The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual status, by class of loans, as September 30, 2016 and December 31, 2015: September 30, 2016 Nonaccrual Loans Past Due Over 90 Days Still Accruing One-to-four family $ 2,310,070 $ - Multi-family - - Non-residential 1,880,189 - Commercial - - Consumer direct - - Purchased auto 12,569 - $ 4,202,828 $ - December 31, 2015 Nonaccrual Loans Past Due Over 90 Days Still Acc ruing One-to-four family $ 2,982,386 $ - Multi-family - - Non-residential 2,069,922 - Commercial - - Consumer direct - - Purchased auto 3,069 - $ 5,055,377 $ - The following table presents the aging of the recorded investment in loans, by class of loans, as of September 30, 2016 and December 31, 2015: September 30, 2016 Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans One-to-four family $ 1,757,833 $ 149,293 $ 691,864 $ 2,598,990 $ 99,963,304 $ 102,562,294 Multi-family - - - - 4,259,956 4,259,956 Non-residential 604,620 272,228 - 876,848 21,850,927 22,727,775 Commercial 828 - - 828 13,058,091 13,058,919 Consumer direct - - - - 2,691,540 2,691,540 Purchased auto 17,935 - 12,569 30,504 11,921,106 11,951,610 $ 2,381,216 $ 421,521 $ 704,433 $ 3,507,170 $ 153,744,924 $ 157,252,094 December 31, 2015 Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans One-to-four family $ 1,251,155 $ 753,597 $ 737,042 $ 2,741,794 $ 96,512,943 $ 99,254,737 Multi-family 31,274 - - 31,274 3,937,933 3,969,207 Non-residential 847,216 112,739 18,127 978,082 19,199,240 20,177,322 Commercial 9,086 - - 9,086 12,060,729 12,069,815 Consumer direct 4,814 - - 4,814 1,646,557 1,651,371 Purchased auto 2,391 - 3,069 5,460 5,206,295 5,211,755 $ 2,145,936 $ 866,336 $ 758,238 $ 3,770,510 $ 138,563,697 $ 142,334,207 Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. For commercial and non-residential real estate loans, the Company’s credit quality indicator is internally assigned risk ratings. Each commercial and non-residential real estate loan is assigned a risk rating upon origination. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. For residential real estate loans, multi-family, consumer direct and purchased auto loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated regularly by the Company’s loan system for real estate loans, multi-family and consumer direct loans. The Company receives monthly reports on the delinquency status of the purchased auto loan portfolio from the servicing company. Generally, when residential real estate loans, multi-family and consumer direct loans become over 90 days past due, they are classified as substandard. Periodically, based on subsequent performance over 6-12 months, these loans could be upgraded to special mention. The Company uses the following definitions for risk ratings: ● Pass – loans classified as pass are of a higher quality and do not fit any of the other “rated” categories below (e.g., special mention, substandard or doubtful). The likelihood of loss is considered remote. ● Special Mention – loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. ● Substandard – loans classified as substandard 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 as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. ● Not Rated – loans in this bucket are not evaluated on an individual basis. As of September 30, 2016, and December 31, 2015, the risk category of loans by class is as follows: September 30, 2016 Pass Special Mention Substandard Doubtful Not Rated One-to-four family $ - $ 838,707 $ 2,219,686 $ - $ 99,503,901 Multi-family - 127,330 - - 4,132,626 Non-residential 20,652,597 194,989 1,880,189 - - Commercial 13,058,919 - - - - Consumer direct - - - - 2,691,540 Purchased auto - - 12,569 - 11,939,041 Total $ 33,711,516 $ 1,161,026 $ 4,112,444 $ - $ 118,267,108 December 31, 2015 Pass Special Mention Substandard Doubtful Not Rated One-to-four family $ - $ 692,601 $ 2,887,460 $ - $ 95,674,676 Multi-family - - - - 3,969,207 Non-residential 18,083,194 24,206 2,069,922 - - Commercial 12,069,815 - - - - Consumer direct - - - - 1,651,371 Purchased auto - - 3,069 - 5,208,686 Total $ 30,153,009 $ 716,807 $ 4,960,451 $ - $ 106,503,940 At September 30, 2016, the Company held approximately $33,000 of foreclosed residential real estate property, compared to approximately $313,000 at December 31, 2015. In addition, the Company also held approximately $86,000 and $234,000, in consumer mortgage loans collateralized by residential real estate properties that were in the process of foreclosure at September 30, 2016 and December 31, 2015, respectively. |
Note 9 - Stock Compensation
Note 9 - Stock Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 9 – STOCK COMPENSATION Total stock-based compensation expense was approximately $8,000 and $14,000 for the nine month periods ended September 30, 2016 and 2015, respectively. In accordance with FASB ASC 718, Compensation-Stock Compensation, |
Note 10 - Recent Accounting Dev
Note 10 - Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 10 – RECENT ACCOUNTING DEVELOPMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective on January 1, 2018 and is not expected to have a significant impact on the Company’s financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Note 11 - Fair Value Measuremen
Note 11 - Fair Value Measurement and Disclosure | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | NOTE 11 – FAIR VALUE MEASUREMENT AND DISCLOSURE FASB ASC Topic 820, Fair Value Measurements and Disclosures, clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and is not adjusted for transaction costs. This guidance also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement inputs) and the lowest priority to unobservable inputs (Level 3 measurement inputs). The three levels of the fair value hierarchy under FASB ASC 820 are described below: Basis of Fair Value Measurement: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets. • Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets, or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset. • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities Available for Sale Securities classified as available for sale are recorded at fair value on a recurring basis using pricing obtained from an independent pricing service. Where quoted market prices are available in an active market, securities are classified within Level 1. The Company has no securities classified within Level 1. If quoted market prices are not available, the pricing service estimates the fair values by using pricing models or quoted prices of securities with similar characteristics. For these securities, the inputs used by the pricing service to determine fair value 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 bonds’ terms and conditions, among other things resulting in classification within Level 2. Level 2 securities include state and municipal securities, and residential mortgage-backed securities. In cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3. The Company has no securities classified within Level 3. Foreclosed Assets Foreclosed assets, consisting of foreclosed real estate and repossessed assets, are adjusted to fair value less estimated costs to sell upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as non-recurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as non-recurring Level 3. Impaired Loans Impaired loans are evaluated and adjusted to the lower of carrying value or fair value less estimated costs to sell at the time the loan is identified as impaired. Impaired loans are carried at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as non-recurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as non-recurring Level 3. The Company did not have any transfers of assets or liabilities between Levels 1 and 2 of the fair value hierarchy during the nine months ended September 30, 2016 and the year ended December 31, 2015. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfers between levels. The tables below present the recorded amounts of assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015. Total September 30, 2016 Level 1 Level 2 Level 3 Fair Value State and municipal securities available for sale $ - $ 19,013,596 $ - $ 19,013,596 Residential mortgage-backed securities available for sale - 25,135,943 - 25,135,943 $ - $ 44,149,539 $ - $ 44,149,539 Total December 31, 2015 Level 1 Level 2 Level 3 Fair Value State and municipal securities available for sale $ - $ 19,237,208 $ - $ 19,237,208 Residential mortgage-backed securities available for sale - 27,747,699 - 27,747,699 $ - $ 46,984,907 $ - $ 46,984,907 The tables below present the recorded amounts of assets measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015. Total September 30, 2016 Level 1 Level 2 Level 3 Fair Value Foreclosed assets $ - $ - $ 74,753 $ 74,753 Impaired loans, net - - 2,584,583 2,584,583 Total December 31, 2015 Level 1 Level 2 Level 3 Fair Value Foreclosed assets $ - $ - $ 330,245 $ 330,245 Impaired loans, net - - 2,277,918 2,277,918 The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value. Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable Estimate Techniques Input Range September 30, 2016 Foreclosed assets $ 74,753 Appraisal of collateral Appraisal adjustments -23% to -50% Impaired loans, net $ 2,271,952 Appraisal of collateral Appraisal adjustments -29.9 to -74.5% Impaired loans, net $ 312,631 Discounted Future Cash Flows Payment Stream N/A Discount Rate 10% December 31, 2015 Foreclosed assets $ 330,245 Appraisal of collateral Appraisal adjustments -6.7% to -63.6% Impaired loans, net $ 2,170,027 Appraisal of collateral Appraisal adjustments -10% to -70% Impaired loans, net $ 107,891 Discounted Future Cash Flows Payment Stream N/A Discount Rate 10% In accordance with accounting pronouncements, the carrying value and estimated fair value of the Company’s financial instruments as of September 30, 2016 and December 31, 2015 are as follows: Fair Value Measurements at Carrying September 30, 2016 using: Amount Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 4,469,007 $ 4,469,007 $ - $ - $ 4,469,007 Time deposits 250,000 250,000 - - 250,000 Federal funds sold 54,351,000 54,351,000 - - 54,351,000 Securities 44,902,860 - 44,149,539 753,321 44,902,860 Accrued interest receivable 800,249 800,249 - - 800,249 Net loans 154,943,940 - - 156,571,000 156,571,000 Loans held for sale 710,700 710,700 - - 710,700 Mortgage servicing rights 328,360 - - 328,360 328,360 Financial Liabilities: Non-interest bearing deposits 10,285,561 10,285,561 - - 10,285,561 Interest bearing deposits 221,601,449 - - 213,131,439 213,131,439 Accrued interest payable 1,697 1,697 - - 1,697 FHLB advances 8,630,697 - 8,630,697 - 8,630,697 Carrying December 31, 2015 using: Amount Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 7,135,719 $ 7,135,719 $ - $ - $ 7,135,719 Time deposits 250,000 250,000 - - 250,000 Federal funds sold 1,604,000 1,604,000 - - 1,604,000 Securities 48,343,028 - 46,984,907 1,358,121 48,343,028 Accrued interest receivable 775,641 775,641 - - 775,641 Net loans 140,110,201 - - 141,665,000 141,665,000 Loans held for sale - - - - - Mortgage servicing rights 285,927 - - 285,927 285,927 Financial Liabilities: Non-interest bearing deposits 10,325,832 10,325,832 - - 10,325,832 Interest bearing deposits 166,409,076 - - 161,173,168 161,173,168 Accrued interest payable 394 394 - - 394 FHLB advances 2,139,117 - 2,139,117 - 2,139,117 The following methods and assumptions were used by the Bank in estimating the fair value of financial instruments: Cash and c ash e quivalents: Time deposits : Federal f unds s old: Securities: Loans: Loans held for sale : Accrued i nterest r eceivable and p ayable: Mortgage s ervicing r ights: Deposits: FHLB a dvances: Federal f unds purchased : Loan c ommitments: In addition, other assets and liabilities of the Bank that are not defined as financial instruments, such as property and equipment, are not included in the above disclosures. Also, non-financial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earnings power of core deposit accounts, the trained work force, customer goodwill and similar items. |
Note 12 - Acquisition
Note 12 - Acquisition | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 1 2 – ACQUISITION On December 31, 2014, Ottawa Savings Bancorp completed its acquisition of Twin Oaks. Pursuant to the terms and conditions of the Agreement and Plan of Merger, dated as of June 30, 2014, Twin Oaks merged with and into the Bank, effective December 31, 2014. As part of the transaction, Ottawa Savings Bancorp issued 776,144 shares of its common stock to Ottawa Savings Bancorp MHC, based on a $9.18 per share stock valuation of Ottawa Savings Bancorp’s stock, as determined by an independent appraisal based primarily on the price to book value valuation method and to a lesser extent the price to earnings valuation method, and a market value determined by an independent appraiser of Twin Oaks of $7.125 million. As a result of the issuance of 776,144 shares in connection with the merger, Ottawa Savings Bancorp MHC’s ownership interest in Ottawa Savings Bancorp increased from 57.8% to 69.1%. The Merger was accounted for using the acquisition method of accounting, and accordingly, the assets acquired and liabilities assumed were recognized at fair value on the date the transaction was completed. Under this method of accounting, the Bank and Twin Oaks are treated as one company from the acquisition date forward, and we have recorded the fair value of Twin Oaks’ assets (including intangible assets which arise from either contractual or other legal rights) and liabilities in our consolidated financial statements. Total merger related costs included in other noninterest expenses in the consolidated statement of operations for the nine months ended September 30, 2015 were approximately $850,000. The merger related costs are primarily related to the merger of the core processing systems. Based on the merger date fair values of the assets acquired and the fair values of the assumed liabilities, the Company recorded goodwill of $649,869, none of which is expected to be tax deductible. The goodwill resulting from the merger primarily consists of the economies of scale expected from combining operations. Total loans acquired in the merger were recorded at a fair value of $29,795,910 and had a contractual amount due of $31,831,910 as of the acquisition date, which was December 31, 2014. FASB ASC 310-20, Nonrefundable Fees and Other Costs, Loans acquired with deteriorated credit quality and accounted for under FASB ASC Topic 310-30 as of the merger date had a contractual balance due of approximately $3,194,000 and an estimated fair value of approximately $1,324,000. The estimate of the contractual cash flows not expected to be collected due to credit quality was approximately $1,870,000 which consists of an accretable discount of $(362,000) and a non-accretable discount of $(1,508,000). The following table reflects activity for the loans acquired with deteriorated credit quality for the three and nine months ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance, beginning of period $ 498,912 $ 1,201,159 $ 575,605 $ 1,323,648 Payment activity (42,422 ) (147,664 ) (134,325 ) (309,968 ) Charge-offs - - - (19,810 ) Recoveries - - - - Transfer to OREO - (266,225 ) (44,417 ) (266,225 ) Accretion to income 23,345 28,883 82,972 88,508 $ 479,835 $ 816,153 $ 479,835 $ 816,153 The contractual amount outstanding for the loans acquired with deteriorated credit quality totaled $1,116,000 and $1,208,000 as of September 30, 2016 and December 31, 2015, respectively. The following table reflects activity in the accretable yield for the loans acquired with deteriorated credit quality for the three and nine months ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance, beginning of period $ 124,583 $ 302,375 $ 175,342 $ 362,000 Net reclassification from non-accretable yield - 4,186 8,868 4,186 Accretion into interest income (23,345 ) (28,883 ) (82,972 ) (88,508 ) Disposals - (64,521 ) - (64,521 ) $ 101,238 $ 213,157 $ 101,238 $ 213,157 |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 13 — SUBSEQUENT EVENTS As previously disclosed, the Company is a Maryland corporation that was incorporated in May 2016 to be the successor to Ottawa Savings Bancorp upon completion of the second-step conversion of the Bank from the two-tier mutual holding company structure to the stock holding company structure. Ottawa Savings Bancorp MHC was the former mutual holding company for Ottawa Savings Bancorp prior to completion of the second-step conversion. The second-step conversion was completed on October 11, 2016 and, in connection with the completion of the conversion, on that date Ottawa Savings Bancorp MHC merged into Ottawa Savings Bancorp (and ceased to exist), and Ottawa Savings Bancorp merged into the Company, with the Company as the surviving entity. As part of the second-step conversion, the Company conducted a subscription and community offering for shares of Company common stock to depositors and certain borrowers of the Bank, as well as other members of the general public. Upon completion of the conversion and offering, the Company sold, for gross proceeds of $23.8 million, a total of 2,383,950 shares of common stock at $10.00 per share, including 190,716 shares purchased by the Bank’s employee stock ownership plan. The conversion offering was oversubscribed by the community and, as a result, the Company was required to return the excess subscription funds it held at September 30, 2016 to members of the community whose orders were not fulfilled in full following the October 11, 2016 closing date. The subscription funds held by the Company at September 30, 2016 contributed significantly to the $62.5 million increase in assets and $55.2 million increase in total deposits, respectively, as compared to December 31, 2015. Subscription funds held by the Company at September 30, 2016, was also the primary reason for the increase in federal funds sold to $54.3 million at September 30, 2016 as compared to December 31, 2015. The return of subscription funds to certain members of the community following the completion of the second-step conversion reduced total assets and total deposits by $29.5 million in October 2016. For more information on the impact of the subscription funds received in connection with the second-step conversion and offering on the Company’s financial position at September 30, 2016, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” As part of the second-step conversion, each of the existing outstanding shares of Ottawa Savings Bancorp common stock owned by persons other than Ottawa Savings Bancorp MHC was converted into 1.1921 of a share of Company common stock. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. |
Note 5 - Earnings Per Share (Ta
Note 5 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income (loss) available to common stockholders $ 421,262 $ 456,982 $ 1,053,484 $ 523,669 Basic potential common shares: Weighted average shares outstanding 2,894,123 2,894,123 2,894,123 2,894,123 Weighted average unallocated ESOP shares (17,374 ) (22,461 ) (18,638 ) (23,720 ) Weighted average unvested MRP shares (1,047 ) (2,795 ) (1,047 ) (2,795 ) Basic weighted average shares outstanding 2,875,702 2,868,867 2,874,438 2,867,608 Dilutive potential common shares: Weighted average unrecognized compensation on MRP shares 890 2,409 913 2,373 Weighted average RRP options outstanding 21,017 9,413 14,963 11,112 Dilutive weighted average shares outstanding 2,897,609 2,880,689 2,890,314 2,881,093 Basic earnings (loss) per share $ 0.15 $ 0.16 $ 0.37 $ 0.18 Diluted earnings (loss) per share $ 0.15 $ 0.16 $ 0.36 $ 0.18 |
Note 6 - Employee Stock Owner22
Note 6 - Employee Stock Ownership Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block] | September 30, December 31, 2016 2015 Shares allocated 59,780 55,964 Shares withdrawn from the plan (18,497 ) (18,497 ) Unallocated shares 16,534 20,350 Total ESOP shares 57,817 57,817 Fair value of unallocated shares $ 224,876 $ 204,518 |
Note 7 - Investment Securities
Note 7 - Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Summary of Investment Holdings, Schedule of Investments [Table Text Block] | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2016: Available for Sale State and municipal securities $ 18,299,408 $ 714,188 $ - $ 19,013,596 Residential mortgage-backed securities 24,763,845 459,902 87,804 25,135,943 $ 43,063,253 $ 1,174,090 $ 87,804 $ 44,149,539 December 31, 2015: Available for Sale State and municipal securities $ 18,733,573 $ 525,089 $ 21,454 $ 19,237,208 Residential mortgage-backed securities 27,532,067 365,558 149,926 27,747,699 $ 46,265,640 $ 890,647 $ 171,380 $ 46,984,907 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Securities Available for Sale Amortized Fair Cost Value Due in three months or less $ - $ - Due after three months through one year 336,717 341,164 Due after one year through five years 3,537,316 3,652,423 Due after five years through ten years 5,514,468 5,740,590 Due after ten years 8,910,907 9,279,419 Residential mortgage-backed securities 24,763,845 25,135,943 $ 43,063,253 $ 44,149,539 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2016 Securities Available for Sale State and municipal securities $ - $ - $ - $ - $ - $ - Residential mortgage-backed securities 1,837,258 7,778 5,758,660 80,026 7,595,918 87,804 $ 1,837,258 $ 7,778 $ 5,758,660 $ 80,026 $ 7,595,918 $ 87,804 December 31, 2015 Securities Available for Sale State and municipal securities $ 169,601 $ 101 $ 436,067 $ 21,353 $ 605,668 $ 21,454 Residential mortgage-backed securities 10,468,746 120,218 1,247,527 29,708 11,716,273 149,926 $ 10,638,347 $ 120,319 $ 1,683,594 $ 51,061 $ 12,321,941 $ 171,380 |
Note 8 - Loans and Allowance 24
Note 8 - Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, December 31, 2016 2015 Mortgage loans: One-to-four family residential loans $ 102,562,294 $ 99,254,737 Multi-family residential loans 4,259,956 3,969,207 Total mortgage loans 106,822,250 103,223,944 Other loans: Non-residential real estate loans 22,727,775 20,177,322 Commercial loans 13,058,919 12,069,815 Consumer direct 2,691,540 1,651,371 Purchased auto 11,951,610 5,211,755 Total other loans 50,429,844 39,110,263 Gross loans 157,252,094 142,334,207 Less: Allowance for loan losses (2,308,154 ) (2,224,006 ) Loans, net $ 154,943,940 $ 140,110,201 |
Schedule of Loans Acquired in Merger [Table Text Block] | September 30, December 31, 2016 2015 Mortgage loans: One-to-four family residential loans $ 18,792,141 $ 20,752,355 Multi-family residential loans 274,018 294,020 Total mortgage loans 19,066,159 21,046,375 Other loans: Non-residential real estate loans 2,580,186 2,685,987 Commercial loans 840,174 852,077 Consumer direct 241,921 541,174 Total other loans 3,662,281 4,079,238 Gross loans 22,728,440 25,125,613 Less: Allowance for loan losses (100,000 ) (85,000 ) Loans, net $ 22,628,440 $ 25,040,613 |
Schedule Of Loans Purchased [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Purchased auto loans $ 1,010,717 $ - $ 9,351,997 $ - |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 One-to-four family $ 17,802 $ (157,703 ) $ (173,225 ) $ (73,744 ) Multi-family 3,972 4,472 11,915 (21,477 ) Non-residential - (18,307 ) - (18,307 ) Commercial - - - - Consumer direct 1,551 (11,906 ) 5,005 (55,577 ) Purchased auto (28,212 ) (20,185 ) (62,047 ) (40,915 ) Net (charge-offs)/recoveries $ (4,887 ) $ (203,629 ) $ (218,352 ) $ (210,020 ) |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block] | September 30, 2016 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,574,598 $ 167,485 $ 275,347 $ 53,256 $ 60,491 $ 156,864 $ 2,288,041 Provision charged to income (28,679 ) (132,076 ) 98,221 21,914 22,610 43,010 25,000 Loans charged off (2,698 ) - - - - (29,718 ) (32,416 ) Recoveries of loans previously charged off 20,500 3,972 - - 1,551 1,506 27,529 Balance at end of period $ 1,563,721 $ 39,381 $ 373,568 $ 75,170 $ 84,652 $ 171,662 $ 2,308,154 September 30, 2015 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,986,275 $ 143,970 $ 243,010 $ 32,650 $ 29,199 $ 93,112 $ 2,528,216 Provision charged to income (122,360 ) 18,729 67,433 12,777 18,628 4,793 - Loans charged off (158,302 ) - (18,307 ) - (13,647 ) (21,772 ) (212,028 ) Recoveries of loans previously charged off 599 4,472 - - 1,741 1,587 8,399 Balance at end of period $ 1,706,212 $ 167,171 $ 292,136 $ 45,427 $ 35,921 $ 77,720 $ 2,324,587 September 30, 2016 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,727,582 $ 142,237 $ 198,340 $ 51,306 $ 37,187 $ 67,354 $ 2,224,006 Provision charged to income 9,364 (114,771 ) 175,228 23,864 42,460 166,355 302,500 Loans charged off (233,264 ) - - - - (68,011 ) (301,275 ) Recoveries of loans previously charged off 60,039 11,915 - - 5,005 5,964 82,923 Balance at end of period $ 1,563,721 $ 39,381 $ 373,568 $ 75,170 $ 84,652 $ 171,662 $ 2,308,154 September 30, 2015 One-to-Four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Balance at beginning of period $ 1,812,448 $ 121,918 $ 245,098 $ 35,947 $ 10,804 $ 88,392 $ 2,314,607 Provision charged to income (32,492 ) 66,730 65,345 9,480 80,694 30,243 220,000 Loans charged off (168,359 ) (33,892 ) (18,307 ) - (60,055 ) (46,062 ) (326,675 ) Recoveries of loans previously charged off 94,615 12,415 - - 4,478 5,147 116,655 Balance at end of period $ 1,706,212 $ 167,171 $ 292,136 $ 45,427 $ 35,921 $ 77,720 $ 2,324,587 September 30, 2016 One-to-four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Loans individually evaluated for impairment $ 1,739,851 $ - $ 1,880,189 $ - $ - $ 12,569 $ 3,632,609 Loans acquired with deteriorated credit quality 479,835 - - - - - 479,835 Loans collectively evaluated for impairment 100,342,608 4,259,956 20,847,586 13,058,919 2,691,540 11,939,041 153,139,650 Ending Balance $ 102,562,294 $ 4,259,956 $ 22,727,775 $ 13,058,919 $ 2,691,540 $ 11,951,610 $ 157,252,094 Period-end amount allocated to: Loans individually evaluated for impairment $ 211,410 $ - $ 252,352 $ - $ - $ 6,285 $ 470,047 Loans acquired with deteriorated credit quality 35,368 - - - - - 35,368 Loans collectively evaluated for impairment 1,316,943 39,381 121,216 75,170 84,652 165,377 1,802,739 Balance at end of period $ 1,563,721 $ 39,381 $ 373,568 $ 75,170 $ 84,652 $ 171,662 $ 2,308,154 December 31, 2015 One-to-four Family Multi-family Non- residential Commercial Consumer Direct Purchased Auto Total Loans individually evaluated for impairment $ 2,311,855 $ - $ 2,069,922 $ - $ - $ 3,069 $ 4,384,846 Loans acquired with deteriorated credit quality 575,605 - - - - - 575,605 Loans collectively evaluated for impairment 96,367,277 3,969,207 18,107,400 12,069,815 1,651,371 5,208,686 137,373,756 Ending Balance $ 99,254,737 $ 3,969,207 $ 20,177,322 $ 12,069,815 $ 1,651,371 $ 5,211,755 $ 142,334,207 Period-end amount allocated to: Loans individually evaluated for impairment $ 295,770 $ - $ 75,086 $ - $ - $ - $ 370,856 Loans acquired with deteriorated credit quality 15,828 - - - - - 15,828 Loans collectively evaluated for impairment 1,415,984 142,237 123,254 51,306 37,187 67,354 1,837,322 Balance at end of period $ 1,727,582 $ 142,237 $ 198,340 $ 51,306 $ 37,187 $ 67,354 $ 2,224,006 |
Impaired Financing Receivables [Table Text Block] | September 30, 2016 Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment One-to-four family $ 2,303,698 $ 1,022,446 $ 1,197,240 $ 2,219,686 $ 246,778 $ 2,715,325 Multi-family - - - - - - Non-residential 1,880,189 - 1,880,189 1,880,189 252,352 1,956,910 Commercial - - - - - - Consumer direct - - - - - - Purchased auto 12,569 - 12,569 12,569 6,285 6,826 $ 4,196,456 $ 1,022,446 $ 3,089,998 $ 4,112,444 $ 505,415 $ 4,679,061 December 31, 2015 Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment One-to-four family $ 3,014,703 $ 1,902,819 $ 984,641 $ 2,887,460 $ 311,598 $ 3,596,800 Multi-family - - - - - - Non-residential 2,069,922 389,961 1,679,961 2,069,922 75,086 2,114,684 Commercial - - - - - 21,789 Consumer direct - - - - - 3,464 Purchased auto 3,069 3,069 - 3,069 - 6,574 $ 5,087,694 $ 2,295,849 $ 2,664,602 $ 4,960,451 $ 386,684 $ 5,743,311 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Number of Modifications Recorded Investment Increase in Allowance Number of Modifications Recorded Investment Increase in Allowance (as of period end) (as of period end) One-to-four family 2 $ 80,814 $ - - $ - $ - Multi-family - - - - - - Non-residential - - - - - - Commercial - - - - - - Consumer direct - - - - - - Purchased auto - - - - - - 2 $ 80,814 $ - - $ - $ - |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | September 30, 2016 Nonaccrual Loans Past Due Over 90 Days Still Accruing One-to-four family $ 2,310,070 $ - Multi-family - - Non-residential 1,880,189 - Commercial - - Consumer direct - - Purchased auto 12,569 - $ 4,202,828 $ - December 31, 2015 Nonaccrual Loans Past Due Over 90 Days Still Acc ruing One-to-four family $ 2,982,386 $ - Multi-family - - Non-residential 2,069,922 - Commercial - - Consumer direct - - Purchased auto 3,069 - $ 5,055,377 $ - |
Past Due Financing Receivables [Table Text Block] | September 30, 2016 Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans One-to-four family $ 1,757,833 $ 149,293 $ 691,864 $ 2,598,990 $ 99,963,304 $ 102,562,294 Multi-family - - - - 4,259,956 4,259,956 Non-residential 604,620 272,228 - 876,848 21,850,927 22,727,775 Commercial 828 - - 828 13,058,091 13,058,919 Consumer direct - - - - 2,691,540 2,691,540 Purchased auto 17,935 - 12,569 30,504 11,921,106 11,951,610 $ 2,381,216 $ 421,521 $ 704,433 $ 3,507,170 $ 153,744,924 $ 157,252,094 December 31, 2015 Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans One-to-four family $ 1,251,155 $ 753,597 $ 737,042 $ 2,741,794 $ 96,512,943 $ 99,254,737 Multi-family 31,274 - - 31,274 3,937,933 3,969,207 Non-residential 847,216 112,739 18,127 978,082 19,199,240 20,177,322 Commercial 9,086 - - 9,086 12,060,729 12,069,815 Consumer direct 4,814 - - 4,814 1,646,557 1,651,371 Purchased auto 2,391 - 3,069 5,460 5,206,295 5,211,755 $ 2,145,936 $ 866,336 $ 758,238 $ 3,770,510 $ 138,563,697 $ 142,334,207 |
Financing Receivable Credit Quality Indicators [Table Text Block] | September 30, 2016 Pass Special Mention Substandard Doubtful Not Rated One-to-four family $ - $ 838,707 $ 2,219,686 $ - $ 99,503,901 Multi-family - 127,330 - - 4,132,626 Non-residential 20,652,597 194,989 1,880,189 - - Commercial 13,058,919 - - - - Consumer direct - - - - 2,691,540 Purchased auto - - 12,569 - 11,939,041 Total $ 33,711,516 $ 1,161,026 $ 4,112,444 $ - $ 118,267,108 December 31, 2015 Pass Special Mention Substandard Doubtful Not Rated One-to-four family $ - $ 692,601 $ 2,887,460 $ - $ 95,674,676 Multi-family - - - - 3,969,207 Non-residential 18,083,194 24,206 2,069,922 - - Commercial 12,069,815 - - - - Consumer direct - - - - 1,651,371 Purchased auto - - 3,069 - 5,208,686 Total $ 30,153,009 $ 716,807 $ 4,960,451 $ - $ 106,503,940 |
Note 11 - Fair Value Measurem25
Note 11 - Fair Value Measurement and Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Total September 30, 2016 Level 1 Level 2 Level 3 Fair Value State and municipal securities available for sale $ - $ 19,013,596 $ - $ 19,013,596 Residential mortgage-backed securities available for sale - 25,135,943 - 25,135,943 $ - $ 44,149,539 $ - $ 44,149,539 Total December 31, 2015 Level 1 Level 2 Level 3 Fair Value State and municipal securities available for sale $ - $ 19,237,208 $ - $ 19,237,208 Residential mortgage-backed securities available for sale - 27,747,699 - 27,747,699 $ - $ 46,984,907 $ - $ 46,984,907 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Total September 30, 2016 Level 1 Level 2 Level 3 Fair Value Foreclosed assets $ - $ - $ 74,753 $ 74,753 Impaired loans, net - - 2,584,583 2,584,583 Total December 31, 2015 Level 1 Level 2 Level 3 Fair Value Foreclosed assets $ - $ - $ 330,245 $ 330,245 Impaired loans, net - - 2,277,918 2,277,918 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable Estimate Techniques Input Range September 30, 2016 Foreclosed assets $ 74,753 Appraisal of collateral Appraisal adjustments -23% to -50% Impaired loans, net $ 2,271,952 Appraisal of collateral Appraisal adjustments -29.9 to -74.5% Impaired loans, net $ 312,631 Discounted Future Cash Flows Payment Stream N/A Discount Rate 10% December 31, 2015 Foreclosed assets $ 330,245 Appraisal of collateral Appraisal adjustments -6.7% to -63.6% Impaired loans, net $ 2,170,027 Appraisal of collateral Appraisal adjustments -10% to -70% Impaired loans, net $ 107,891 Discounted Future Cash Flows Payment Stream N/A Discount Rate 10% |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements at Carrying September 30, 2016 using: Amount Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 4,469,007 $ 4,469,007 $ - $ - $ 4,469,007 Time deposits 250,000 250,000 - - 250,000 Federal funds sold 54,351,000 54,351,000 - - 54,351,000 Securities 44,902,860 - 44,149,539 753,321 44,902,860 Accrued interest receivable 800,249 800,249 - - 800,249 Net loans 154,943,940 - - 156,571,000 156,571,000 Loans held for sale 710,700 710,700 - - 710,700 Mortgage servicing rights 328,360 - - 328,360 328,360 Financial Liabilities: Non-interest bearing deposits 10,285,561 10,285,561 - - 10,285,561 Interest bearing deposits 221,601,449 - - 213,131,439 213,131,439 Accrued interest payable 1,697 1,697 - - 1,697 FHLB advances 8,630,697 - 8,630,697 - 8,630,697 Carrying December 31, 2015 using: Amount Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 7,135,719 $ 7,135,719 $ - $ - $ 7,135,719 Time deposits 250,000 250,000 - - 250,000 Federal funds sold 1,604,000 1,604,000 - - 1,604,000 Securities 48,343,028 - 46,984,907 1,358,121 48,343,028 Accrued interest receivable 775,641 775,641 - - 775,641 Net loans 140,110,201 - - 141,665,000 141,665,000 Loans held for sale - - - - - Mortgage servicing rights 285,927 - - 285,927 285,927 Financial Liabilities: Non-interest bearing deposits 10,325,832 10,325,832 - - 10,325,832 Interest bearing deposits 166,409,076 - - 161,173,168 161,173,168 Accrued interest payable 394 394 - - 394 FHLB advances 2,139,117 - 2,139,117 - 2,139,117 |
Note 12 - Acquisition (Tables)
Note 12 - Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance, beginning of period $ 498,912 $ 1,201,159 $ 575,605 $ 1,323,648 Payment activity (42,422 ) (147,664 ) (134,325 ) (309,968 ) Charge-offs - - - (19,810 ) Recoveries - - - - Transfer to OREO - (266,225 ) (44,417 ) (266,225 ) Accretion to income 23,345 28,883 82,972 88,508 $ 479,835 $ 816,153 $ 479,835 $ 816,153 |
Certain Loans Acquired in Transfer Accretable Yield [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance, beginning of period $ 124,583 $ 302,375 $ 175,342 $ 362,000 Net reclassification from non-accretable yield - 4,186 8,868 4,186 Accretion into interest income (23,345 ) (28,883 ) (82,972 ) (88,508 ) Disposals - (64,521 ) - (64,521 ) $ 101,238 $ 213,157 $ 101,238 $ 213,157 |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) | Oct. 11, 2016USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 11, 2005$ / shares |
Subsequent Event [Member] | Bank [Member] | ||||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | shares | 190,716 | |||
Subsequent Event [Member] | Ottawa Savings Bancorp, Inc. Merger [Member] | ||||
Business Combination, Ratio for Conversion of Acquiree's Outstanding Common Shares into Acquirer's Common Shares | 1.1921 | |||
Subsequent Event [Member] | ||||
Proceeds from Issuance of Common Stock | $ | $ 23,800,000 | |||
Stock Issued During Period, Shares, New Issues | shares | 2,383,950 | |||
Share Price | $ / shares | $ 10 | |||
Share Price | $ / shares | $ 10 | |||
Assets | $ | $ 276,086,816 | $ 213,563,351 |
Note 5 - Earnings Per Share - E
Note 5 - Earnings Per Share - Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Management Recognition Plan [Member] | ||||
Dilutive potential common shares: | ||||
Dilutive weighted average shares outstanding (in shares) | 890 | 2,409 | 913 | 2,373 |
Recognition and Retention Plan [Member] | ||||
Dilutive potential common shares: | ||||
Dilutive weighted average shares outstanding (in shares) | 21,017 | 9,413 | 14,963 | 11,112 |
Net income (loss) available to common stockholders | $ 421,262 | $ 456,982 | $ 1,053,484 | $ 523,669 |
Weighted average shares outstanding (in shares) | 2,894,123 | 2,894,123 | 2,894,123 | 2,894,123 |
Weighted average unallocated ESOP shares (in shares) | (17,374) | (22,461) | (18,638) | (23,720) |
Weighted average unvested MRP shares (in shares) | (1,047) | (2,795) | (1,047) | (2,795) |
Basic weighted average shares outstanding (in shares) | 2,875,702 | 2,868,867 | 2,874,438 | 2,867,608 |
Dilutive weighted average shares outstanding (in shares) | 2,897,609 | 2,880,689 | 2,890,314 | 2,881,093 |
Basic earnings (loss) per share (in dollars per share) | $ 0.15 | $ 0.16 | $ 0.37 | $ 0.18 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.15 | $ 0.16 | $ 0.36 | $ 0.18 |
Note 6 - Employee Stock Owner29
Note 6 - Employee Stock Ownership Plan (Details Textual) - USD ($) | Oct. 11, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Jul. 11, 2005 |
Subsequent Event [Member] | Bank [Member] | ||||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 190,716 | |||
Subsequent Event [Member] | ||||
Loan To Employee Stock Ownership Plan | $ 1,900,000 | |||
Share Price | $ 10 | |||
Mezzanine Capital [Member] | ||||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 41,283 | |||
Fair Value Per Share | $ 13.60 | |||
Loan To Employee Stock Ownership Plan | $ 763,140 | |||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 57,817 | 57,817 | 76,314 | |
Share Price | $ 10 | |||
Employee Stock Ownership Plan E S O P Interest And Principal Payments From E S O P | $ 77,000 | |||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 59,780 | 55,964 |
Note 6 - Employee Stock Owner30
Note 6 - Employee Stock Ownership Plan - Employee Stock Ownership Plan (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Jul. 11, 2005 |
Shares allocated (in shares) | 59,780 | 55,964 | |
Shares withdrawn from the plan (in shares) | (18,497) | (18,497) | |
Unallocated shares | $ 16,534 | $ 20,350 | |
Total ESOP shares (in shares) | 57,817 | 57,817 | 76,314 |
Fair value of unallocated shares | $ 224,876 | $ 204,518 |
Note 7 - Investment Securitie31
Note 7 - Investment Securities (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other than Temporary Impairment Losses, Investments | $ 0 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 12 | 12 | ||
Aggregate Percentage Loss On Securities With Unrealized Loss Position | 1.14% | 1.14% | ||
Proceeds from Sale of Available-for-sale Securities | $ 0 | $ 0 | $ 1,700,000 | $ 5,600,000 |
Available-for-sale Securities, Gross Realized Gains | 8,418 | 21,630 | ||
Available-for-sale Securities, Gross Realized Losses | 3,261 | 2,039 | ||
Available-for-sale Securities, Gross Realized Gain (Loss) | 5,157 | 19,591 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 2,002 | $ 7,605 |
Note 7 - Investment Securitie32
Note 7 - Investment Securities - The Amortized Cost and Fair Values of Securities (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale, amortized cost | $ 18,299,408 | $ 18,733,573 |
Securities available for sale, gross unrealized gains | 714,188 | 525,089 |
Securities available for sale, gross unrealized losses | 21,454 | |
Securities available for sale | 19,013,596 | 19,237,208 |
Residential Mortgage Backed Securities [Member] | ||
Securities available for sale, amortized cost | 24,763,845 | 27,532,067 |
Securities available for sale, gross unrealized gains | 459,902 | 365,558 |
Securities available for sale, gross unrealized losses | 87,804 | 149,926 |
Securities available for sale | 25,135,943 | 27,747,699 |
Securities available for sale, amortized cost | 43,063,253 | 46,265,640 |
Securities available for sale, gross unrealized gains | 1,174,090 | 890,647 |
Securities available for sale, gross unrealized losses | 87,804 | 171,380 |
Securities available for sale | $ 44,149,539 | $ 46,984,907 |
Note 7 - Investment Securitie33
Note 7 - Investment Securities - The Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Due in three months or less | $ 0 | |
Due in three months or less | 0 | |
Due after three months through one year | 336,717 | |
Due after three months through one year | 341,164 | |
Due after one year through five years | 3,537,316 | |
Due after one year through five years | 3,652,423 | |
Due after five years through ten years | 5,514,468 | |
Due after five years through ten years | 5,740,590 | |
Due after ten years | 8,910,907 | |
Due after ten years | 9,279,419 | |
Residential mortgage-backed securities | 24,763,845 | |
Residential mortgage-backed securities | 25,135,943 | |
Securities available for sale, amortized cost | 43,063,253 | |
Securities available for sale | $ 44,149,539 | $ 46,984,907 |
Note 7 - Investment Securitie34
Note 7 - Investment Securities - Securities with Gross Unrealized Losses (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 Months Fair Value | $ 169,601 | |
Less than 12 Months Unrealized Losses | 101 | |
12 Months or More Fair Value | 0 | 436,067 |
12 Months or More Unrealized Losses | 0 | 21,353 |
Total Fair Value | 605,668 | |
Total Unrealized Losses | 21,454 | |
Residential Mortgage Backed Securities [Member] | ||
Less than 12 Months Fair Value | 1,837,258 | 10,468,746 |
Less than 12 Months Unrealized Losses | 7,778 | 120,218 |
12 Months or More Fair Value | 5,758,660 | 1,247,527 |
12 Months or More Unrealized Losses | 80,026 | 29,708 |
Total Fair Value | 7,595,918 | 11,716,273 |
Total Unrealized Losses | 87,804 | 149,926 |
Less than 12 Months Fair Value | 1,837,258 | 10,638,347 |
Less than 12 Months Unrealized Losses | 7,778 | 120,319 |
12 Months or More Fair Value | 5,758,660 | 1,683,594 |
12 Months or More Unrealized Losses | 80,026 | 51,061 |
Total Fair Value | 7,595,918 | 12,321,941 |
Total Unrealized Losses | $ 87,804 | $ 171,380 |
Note 8 - Loans and Allowance 35
Note 8 - Loans and Allowance for Credit Losses (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015 | Dec. 31, 2015USD ($) | |
Written Down and Moved to OREO [Member] | |||||||
Number of Impaired Loans | 2 | 2 | 2 | ||||
Real Estate Owned, Transfer to Real Estate Owned | $ 100,000 | ||||||
Paid Off or Charged Off [Member] | |||||||
Number of Impaired Loans | 6 | 6 | 6 | ||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 500,000 | ||||||
Returned To Accrual Status [Member] | |||||||
Number of Impaired Loans | 7 | 7 | 7 | ||||
Impaired Financing Receivable, Recorded Investment | $ 800,000 | $ 800,000 | $ 800,000 | ||||
Impaired Loan [Member] | |||||||
Payments for (Proceeds from) Loans Receivable | 300,000 | ||||||
Troubled Debt Restructurings [Member] | |||||||
Impaired Financing Receivable, Recorded Investment | 2,400,000 | 2,400,000 | 2,400,000 | $ 2,600,000 | |||
Real Estate Owned, Transfer to Real Estate Owned | 100,000 | ||||||
Proceeds from Impaired Loans, Principal Payment | $ 200,000 | ||||||
Reclassify from TDR to OREO [Member] | |||||||
Financing Receivable, Modifications, Number of Contracts | 1 | ||||||
Increase Due to Restructure [Member] | |||||||
Financing Receivable, Modifications, Number of Contracts | 2 | ||||||
Financing Receivable, Modifications, Recorded Investment | 100,000 | $ 100,000 | 100,000 | ||||
Residential Portfolio Segment [Member] | |||||||
Real Estate Acquired Through Foreclosure | 33,000 | 33,000 | $ 33,000 | $ 313,000 | |||
Impaired Financing Receivable, Interest Income, Cash Basis Method | $ 3,000 | $ 0 | $ 3,000 | $ 0 | |||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 | $ 0 | |||||
Number of Impaired Loans | 35 | 35 | 35 | 34 | |||
Impaired Financing Receivable, Recorded Investment | $ 4,112,444 | $ 4,112,444 | $ 4,112,444 | $ 4,960,451 | |||
Impaired Loans, Additions, Number | 14 | ||||||
Impaired Loans, Additions, Value | $ 900,000 | ||||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 2 | ||||
Financing Receivable, Modifications, Recorded Investment | $ 80,814 | $ 80,814 | 80,814 | ||||
Real Estate Acquired Through Foreclosure | 33,000 | 33,000 | 33,000 | 313,368 | |||
Mortgage Loans in Process of Foreclosure, Amount | $ 86,000 | $ 86,000 | $ 86,000 | $ 234,000 | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 |
Note 8 - Loans and Allowance 36
Note 8 - Loans and Allowance for Credit Losses - Components of Loans, Net of Deferred Loan Costs (Fees) (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||||||
Gross loans | $ 102,562,294 | $ 99,254,737 | ||||
Less: Allowance for loan losses | (1,563,721) | $ (1,574,598) | (1,727,582) | $ (1,706,212) | $ (1,986,275) | $ (1,812,448) |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||||||
Gross loans | 4,259,956 | 3,969,207 | ||||
Less: Allowance for loan losses | (39,381) | (167,485) | (142,237) | (167,171) | (143,970) | (121,918) |
Residential Portfolio Segment [Member] | ||||||
Gross loans | 106,822,250 | 103,223,944 | ||||
Nonresidential Real Estate Portfolio Segment [Member] | ||||||
Gross loans | 22,727,775 | 20,177,322 | ||||
Less: Allowance for loan losses | (373,568) | (275,347) | (198,340) | (292,136) | (243,010) | (245,098) |
Commercial Portfolio Segment [Member] | ||||||
Gross loans | 13,058,919 | 12,069,815 | ||||
Less: Allowance for loan losses | (75,170) | (53,256) | (51,306) | (45,427) | (32,650) | (35,947) |
Consumer Portfolio Segment [Member] | ||||||
Gross loans | 2,691,540 | 1,651,371 | ||||
Less: Allowance for loan losses | (84,652) | (60,491) | (37,187) | (35,921) | (29,199) | (10,804) |
Purchased Auto Loans [Member] | ||||||
Gross loans | 11,951,610 | 5,211,755 | ||||
Less: Allowance for loan losses | (171,662) | (156,864) | (67,354) | (77,720) | (93,112) | (88,392) |
Non-mortgage Loans [Member] | ||||||
Gross loans | 50,429,844 | 39,110,263 | ||||
Gross loans | 157,252,094 | 142,334,207 | ||||
Less: Allowance for loan losses | (2,308,154) | $ (2,288,041) | (2,224,006) | $ (2,324,587) | $ (2,528,216) | $ (2,314,607) |
Loans, net | $ 154,943,940 | $ 140,110,201 |
Note 8 - Loans and Allowance 37
Note 8 - Loans and Allowance for Credit Losses - Carrying Amount of Loans Acquired in Twin Oaks Merger (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Twin Oaks [Member] | ||||||
Gross loans | $ 18,792,141 | $ 20,752,355 | ||||
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||||||
Gross loans | 102,562,294 | 99,254,737 | ||||
Less: Allowance for loan losses | (1,563,721) | $ (1,574,598) | (1,727,582) | $ (1,706,212) | $ (1,986,275) | $ (1,812,448) |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Twin Oaks [Member] | ||||||
Gross loans | 274,018 | 294,020 | ||||
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||||||
Gross loans | 4,259,956 | 3,969,207 | ||||
Less: Allowance for loan losses | (39,381) | (167,485) | (142,237) | (167,171) | (143,970) | (121,918) |
Residential Portfolio Segment [Member] | Twin Oaks [Member] | ||||||
Gross loans | 19,066,159 | 21,046,375 | ||||
Residential Portfolio Segment [Member] | ||||||
Gross loans | 106,822,250 | 103,223,944 | ||||
Nonresidential Real Estate Portfolio Segment [Member] | Twin Oaks [Member] | ||||||
Gross loans | 2,580,186 | 2,685,987 | ||||
Nonresidential Real Estate Portfolio Segment [Member] | ||||||
Gross loans | 22,727,775 | 20,177,322 | ||||
Less: Allowance for loan losses | (373,568) | (275,347) | (198,340) | (292,136) | (243,010) | (245,098) |
Commercial Portfolio Segment [Member] | Twin Oaks [Member] | ||||||
Gross loans | 840,174 | 852,077 | ||||
Commercial Portfolio Segment [Member] | ||||||
Gross loans | 13,058,919 | 12,069,815 | ||||
Less: Allowance for loan losses | (75,170) | (53,256) | (51,306) | (45,427) | (32,650) | (35,947) |
Consumer Portfolio Segment [Member] | Twin Oaks [Member] | ||||||
Gross loans | 241,921 | 541,174 | ||||
Consumer Portfolio Segment [Member] | ||||||
Gross loans | 2,691,540 | 1,651,371 | ||||
Less: Allowance for loan losses | (84,652) | (60,491) | (37,187) | (35,921) | (29,199) | (10,804) |
Non-mortgage Loans [Member] | Twin Oaks [Member] | ||||||
Gross loans | 3,662,281 | 4,079,238 | ||||
Non-mortgage Loans [Member] | ||||||
Gross loans | 50,429,844 | 39,110,263 | ||||
Twin Oaks [Member] | ||||||
Gross loans | 22,728,440 | 25,125,613 | ||||
Less: Allowance for loan losses | (100,000) | (85,000) | ||||
Loans, net | 22,628,440 | 25,040,613 | ||||
Gross loans | 157,252,094 | 142,334,207 | ||||
Less: Allowance for loan losses | (2,308,154) | $ (2,288,041) | (2,224,006) | $ (2,324,587) | $ (2,528,216) | $ (2,314,607) |
Loans, net | $ 154,943,940 | $ 140,110,201 |
Note 8 - Loans and Allowance 38
Note 8 - Loans and Allowance for Credit Losses - Purchases of Loans Receivable (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Purchased Auto Loans [Member] | ||||
Purchased auto loans | $ 1,010,717 | $ 9,351,997 |
Note 8 - Loans and Allowance 39
Note 8 - Loans and Allowance for Credit Losses - Net (Charge-offs) / Recoveries (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||||
Net (charge-offs)/recoveries | $ 17,802 | $ (157,703) | $ (173,225) | $ (73,744) |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||||
Net (charge-offs)/recoveries | 3,972 | 4,472 | 11,915 | (21,477) |
Nonresidential Real Estate Portfolio Segment [Member] | ||||
Net (charge-offs)/recoveries | (18,307) | (18,307) | ||
Commercial Portfolio Segment [Member] | ||||
Net (charge-offs)/recoveries | ||||
Consumer Portfolio Segment [Member] | ||||
Net (charge-offs)/recoveries | 1,551 | (11,906) | 5,005 | (55,577) |
Purchased Auto Loans [Member] | ||||
Net (charge-offs)/recoveries | (28,212) | (20,185) | (62,047) | (40,915) |
Net (charge-offs)/recoveries | $ (4,887) | $ (203,629) | $ (218,352) | $ (210,020) |
Note 8 - Loans and Allowance 40
Note 8 - Loans and Allowance for Credit Losses - Recorded Investment in Loans and the Related Allowances (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Balance at beginning of period | $ 15,828 | |||||
Balance at end of period | $ 35,368 | 35,368 | ||||
Gross loans | $ 479,835 | $ 575,605 | ||||
Allowance for loan losses | 35,368 | 35,368 | 35,368 | 15,828 | ||
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||||||
Balance at beginning of period | 1,574,598 | $ 1,986,275 | 1,727,582 | $ 1,812,448 | ||
Provision for loan losses | (28,679) | (122,360) | 9,364 | (32,492) | ||
Loans charged off | (2,698) | (158,302) | (233,264) | (168,359) | ||
Recoveries of loans previously charged off | 20,500 | 599 | 60,039 | 94,615 | ||
Balance at end of period | 1,563,721 | 1,706,212 | 1,563,721 | 1,706,212 | ||
Loans individually evaluated for impairment | 1,739,851 | 2,311,855 | ||||
Gross loans | 102,562,294 | 99,254,737 | ||||
Loans collectively evaluated for impairment | 100,342,608 | 96,367,277 | ||||
Loans individually evaluated for impairment | 211,410 | 295,770 | ||||
Allowance for loan losses | 1,574,598 | 1,986,275 | 1,563,721 | 1,706,212 | 1,563,721 | 1,727,582 |
Loans collectively evaluated for impairment | 1,316,943 | 1,415,984 | ||||
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Balance at beginning of period | 0 | |||||
Balance at end of period | 0 | 0 | ||||
Gross loans | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | ||
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||||||
Balance at beginning of period | 167,485 | 143,970 | 142,237 | 121,918 | ||
Provision for loan losses | (132,076) | 18,729 | (114,771) | 66,730 | ||
Loans charged off | 0 | 0 | 0 | (33,892) | ||
Recoveries of loans previously charged off | 3,972 | 4,472 | 11,915 | 12,415 | ||
Balance at end of period | 39,381 | 167,171 | 39,381 | 167,171 | ||
Loans individually evaluated for impairment | 0 | 0 | ||||
Gross loans | 4,259,956 | 3,969,207 | ||||
Loans collectively evaluated for impairment | 4,259,956 | 3,969,207 | ||||
Loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses | 167,485 | 143,970 | 39,381 | 167,171 | 39,381 | 142,237 |
Loans collectively evaluated for impairment | 39,381 | 142,237 | ||||
Residential Portfolio Segment [Member] | ||||||
Gross loans | 106,822,250 | 103,223,944 | ||||
Nonresidential Real Estate Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Balance at beginning of period | 0 | |||||
Balance at end of period | 0 | 0 | ||||
Gross loans | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | ||
Nonresidential Real Estate Portfolio Segment [Member] | ||||||
Balance at beginning of period | 275,347 | 243,010 | 198,340 | 245,098 | ||
Provision for loan losses | 98,221 | 67,433 | 175,228 | 65,345 | ||
Loans charged off | 0 | (18,307) | 0 | (18,307) | ||
Recoveries of loans previously charged off | 0 | 0 | 0 | 0 | ||
Balance at end of period | 373,568 | 292,136 | 373,568 | 292,136 | ||
Loans individually evaluated for impairment | 1,880,189 | 2,069,922 | ||||
Gross loans | 22,727,775 | 20,177,322 | ||||
Loans collectively evaluated for impairment | 20,847,586 | 18,107,400 | ||||
Loans individually evaluated for impairment | 252,352 | 75,086 | ||||
Allowance for loan losses | 275,347 | 243,010 | 373,568 | 292,136 | 373,568 | 198,340 |
Loans collectively evaluated for impairment | 121,216 | 123,254 | ||||
Commercial Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Balance at beginning of period | 0 | |||||
Balance at end of period | 0 | 0 | ||||
Gross loans | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | ||
Commercial Portfolio Segment [Member] | ||||||
Balance at beginning of period | 53,256 | 32,650 | 51,306 | 35,947 | ||
Provision for loan losses | 21,914 | 12,777 | 23,864 | 9,480 | ||
Loans charged off | 0 | 0 | 0 | 0 | ||
Recoveries of loans previously charged off | 0 | 0 | 0 | 0 | ||
Balance at end of period | 75,170 | 45,427 | 75,170 | 45,427 | ||
Loans individually evaluated for impairment | 0 | 0 | ||||
Gross loans | 13,058,919 | 12,069,815 | ||||
Loans collectively evaluated for impairment | 13,058,919 | 12,069,815 | ||||
Loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses | 53,256 | 32,650 | 75,170 | 45,427 | 75,170 | 51,306 |
Loans collectively evaluated for impairment | 75,170 | 51,306 | ||||
Consumer Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Balance at beginning of period | 0 | |||||
Balance at end of period | 0 | 0 | ||||
Gross loans | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | ||
Consumer Portfolio Segment [Member] | ||||||
Balance at beginning of period | 60,491 | 29,199 | 37,187 | 10,804 | ||
Provision for loan losses | 22,610 | 18,628 | 42,460 | 80,694 | ||
Loans charged off | 0 | (13,647) | 0 | (60,055) | ||
Recoveries of loans previously charged off | 1,551 | 1,741 | 5,005 | 4,478 | ||
Balance at end of period | 84,652 | 35,921 | 84,652 | 35,921 | ||
Loans individually evaluated for impairment | 0 | 0 | ||||
Gross loans | 2,691,540 | 1,651,371 | ||||
Loans collectively evaluated for impairment | 2,691,540 | 1,651,371 | ||||
Loans individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses | 60,491 | 29,199 | 84,652 | 35,921 | 84,652 | 37,187 |
Loans collectively evaluated for impairment | 84,652 | 37,187 | ||||
Purchased Auto Loans [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Balance at beginning of period | 0 | |||||
Balance at end of period | 0 | 0 | ||||
Gross loans | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | ||
Purchased Auto Loans [Member] | ||||||
Balance at beginning of period | 156,864 | 93,112 | 67,354 | 88,392 | ||
Provision for loan losses | 43,010 | 4,793 | 166,355 | 30,243 | ||
Loans charged off | (29,718) | (21,772) | (68,011) | (46,062) | ||
Recoveries of loans previously charged off | 1,506 | 1,587 | 5,964 | 5,147 | ||
Balance at end of period | 171,662 | 77,720 | 171,662 | 77,720 | ||
Loans individually evaluated for impairment | 12,569 | 3,069 | ||||
Gross loans | 11,951,610 | 5,211,755 | ||||
Loans collectively evaluated for impairment | 11,939,041 | 5,208,686 | ||||
Loans individually evaluated for impairment | 6,285 | 0 | ||||
Allowance for loan losses | 156,864 | 93,112 | 171,662 | 77,720 | 171,662 | 67,354 |
Loans collectively evaluated for impairment | 165,377 | 67,354 | ||||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Balance at beginning of period | 15,828 | |||||
Balance at end of period | 35,368 | 35,368 | ||||
Gross loans | 479,835 | 575,605 | ||||
Allowance for loan losses | 35,368 | 35,368 | 35,368 | 15,828 | ||
Balance at beginning of period | 2,288,041 | 2,528,216 | 2,224,006 | 2,314,607 | ||
Provision for loan losses | 25,000 | 0 | 302,500 | 220,000 | ||
Loans charged off | (32,416) | (212,028) | (301,275) | (326,675) | ||
Recoveries of loans previously charged off | 27,529 | 8,399 | 82,923 | 116,655 | ||
Balance at end of period | 2,308,154 | 2,324,587 | 2,308,154 | 2,324,587 | ||
Loans individually evaluated for impairment | 3,632,609 | 4,384,846 | ||||
Gross loans | 157,252,094 | 142,334,207 | ||||
Loans collectively evaluated for impairment | 153,139,650 | 137,373,756 | ||||
Loans individually evaluated for impairment | 470,047 | 370,856 | ||||
Allowance for loan losses | $ 2,308,154 | $ 2,528,216 | $ 2,308,154 | $ 2,324,587 | 2,308,154 | 2,224,006 |
Loans collectively evaluated for impairment | $ 1,802,739 | $ 1,837,322 |
Note 8 - Loans and Allowance 41
Note 8 - Loans and Allowance for Credit Losses - Loans Individually Evaluated for Impairment (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||
Unpaid Contractual Principal Balance | $ 2,303,698 | $ 3,014,703 |
Recorded Investment With No Allowance | 1,022,446 | 1,902,819 |
Recorded Investment With Allowance | 1,197,240 | 984,641 |
Total Recorded Investment | 2,219,686 | 2,887,460 |
Related Allowance | 246,778 | 311,598 |
Average Recorded Investment | 2,715,325 | 3,596,800 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Nonresidential Real Estate Portfolio Segment [Member] | ||
Unpaid Contractual Principal Balance | 1,880,189 | 2,069,922 |
Recorded Investment With No Allowance | 0 | 389,961 |
Recorded Investment With Allowance | 1,880,189 | 1,679,961 |
Total Recorded Investment | 1,880,189 | 2,069,922 |
Related Allowance | 252,352 | 75,086 |
Average Recorded Investment | 1,956,910 | 2,114,684 |
Commercial Portfolio Segment [Member] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 21,789 |
Consumer Portfolio Segment [Member] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 3,464 |
Purchased Auto Loans [Member] | ||
Unpaid Contractual Principal Balance | 12,569 | 3,069 |
Recorded Investment With No Allowance | 0 | 3,069 |
Recorded Investment With Allowance | 12,569 | 0 |
Total Recorded Investment | 12,569 | 3,069 |
Related Allowance | 6,285 | 0 |
Average Recorded Investment | 6,826 | 6,574 |
Unpaid Contractual Principal Balance | 4,196,456 | 5,087,694 |
Recorded Investment With No Allowance | 1,022,446 | 2,295,849 |
Recorded Investment With Allowance | 3,089,998 | 2,664,602 |
Total Recorded Investment | 4,112,444 | 4,960,451 |
Related Allowance | 505,415 | 386,684 |
Average Recorded Investment | $ 4,679,061 | $ 5,743,311 |
Note 8 - Loans and Allowance 42
Note 8 - Loans and Allowance for Credit Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2015 | Sep. 30, 2016USD ($) | |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | |||
Number of Modifications | 2 | ||
Recorded Investment | $ 80,814 | $ 80,814 | |
Number of Modifications | 0 | 0 | 2 |
Recorded Investment | $ 80,814 | $ 80,814 |
Note 8 - Loans and Allowance 43
Note 8 - Loans and Allowance for Credit Losses - Nonaccrual Loans and Loans Past Due Over 90 Days (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||
Nonaccrual Loans | $ 2,310,070 | $ 2,982,386 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||
Nonaccrual Loans | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Nonresidential Real Estate Portfolio Segment [Member] | ||
Nonaccrual Loans | 1,880,189 | 2,069,922 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Nonaccrual Loans | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Nonaccrual Loans | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Purchased Auto Loans [Member] | ||
Nonaccrual Loans | 12,569 | 3,069 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Nonaccrual Loans | 4,202,828 | 5,055,377 |
Loans Past Due Over 90 Days Still Accruing | $ 0 | $ 0 |
Note 8 - Loans and Allowance 44
Note 8 - Loans and Allowance for Credit Losses - Aging of the Recorded Investment in Loans (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | $ 1,757,833 | $ 1,251,155 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 149,293 | 753,597 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 691,864 | 737,042 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||
Loans past due | 2,598,990 | 2,741,794 |
Loans, current | 99,963,304 | 96,512,943 |
Total loans | 102,562,294 | 99,254,737 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 0 | 31,274 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 0 | 0 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 0 | 0 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||
Loans past due | 0 | 31,274 |
Loans, current | 4,259,956 | 3,937,933 |
Total loans | 4,259,956 | 3,969,207 |
Residential Portfolio Segment [Member] | ||
Total loans | 106,822,250 | 103,223,944 |
Nonresidential Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 604,620 | 847,216 |
Nonresidential Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 272,228 | 112,739 |
Nonresidential Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 0 | 18,127 |
Nonresidential Real Estate Portfolio Segment [Member] | ||
Loans past due | 876,848 | 978,082 |
Loans, current | 21,850,927 | 19,199,240 |
Total loans | 22,727,775 | 20,177,322 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 828 | 9,086 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Loans past due | 828 | 9,086 |
Loans, current | 13,058,091 | 12,060,729 |
Total loans | 13,058,919 | 12,069,815 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 0 | 4,814 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 0 | 0 |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Loans past due | 0 | 4,814 |
Loans, current | 2,691,540 | 1,646,557 |
Total loans | 2,691,540 | 1,651,371 |
Purchased Auto Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 17,935 | 2,391 |
Purchased Auto Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 0 | 0 |
Purchased Auto Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 12,569 | 3,069 |
Purchased Auto Loans [Member] | ||
Loans past due | 30,504 | 5,460 |
Loans, current | 11,921,106 | 5,206,295 |
Total loans | 11,951,610 | 5,211,755 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 2,381,216 | 2,145,936 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 421,521 | 866,336 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 704,433 | 758,238 |
Loans past due | 3,507,170 | 3,770,510 |
Loans, current | 153,744,924 | 138,563,697 |
Total loans | $ 157,252,094 | $ 142,334,207 |
Note 8 - Loans and Allowance 45
Note 8 - Loans and Allowance for Credit Losses - Loans by Risk Category (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Pass [Member] | ||
Gross loans | $ 0 | $ 0 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Special Mention [Member] | ||
Gross loans | 838,707 | 692,601 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Substandard [Member] | ||
Gross loans | 2,219,686 | 2,887,460 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Doubtful [Member] | ||
Gross loans | 0 | 0 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | Not Rated [Member] | ||
Gross loans | 99,503,901 | 95,674,676 |
Residential Portfolio Segment [Member] | One- to Four-family Loan [Member] | ||
Gross loans | 102,562,294 | 99,254,737 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Pass [Member] | ||
Gross loans | 0 | 0 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Special Mention [Member] | ||
Gross loans | 127,330 | 0 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Substandard [Member] | ||
Gross loans | 0 | 0 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Doubtful [Member] | ||
Gross loans | 0 | 0 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | Not Rated [Member] | ||
Gross loans | 4,132,626 | 3,969,207 |
Residential Portfolio Segment [Member] | Multi-family Loans [Member] | ||
Gross loans | 4,259,956 | 3,969,207 |
Residential Portfolio Segment [Member] | ||
Gross loans | 106,822,250 | 103,223,944 |
Nonresidential Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Gross loans | 20,652,597 | 18,083,194 |
Nonresidential Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Gross loans | 194,989 | 24,206 |
Nonresidential Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Gross loans | 1,880,189 | 2,069,922 |
Nonresidential Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Gross loans | 0 | 0 |
Nonresidential Real Estate Portfolio Segment [Member] | Not Rated [Member] | ||
Gross loans | 0 | 0 |
Nonresidential Real Estate Portfolio Segment [Member] | ||
Gross loans | 22,727,775 | 20,177,322 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Gross loans | 13,058,919 | 12,069,815 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Gross loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Gross loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Gross loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Not Rated [Member] | ||
Gross loans | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Gross loans | 13,058,919 | 12,069,815 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Gross loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Gross loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Gross loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Gross loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Not Rated [Member] | ||
Gross loans | 2,691,540 | 1,651,371 |
Consumer Portfolio Segment [Member] | ||
Gross loans | 2,691,540 | 1,651,371 |
Purchased Auto Loans [Member] | Pass [Member] | ||
Gross loans | 0 | 0 |
Purchased Auto Loans [Member] | Special Mention [Member] | ||
Gross loans | 0 | 0 |
Purchased Auto Loans [Member] | Substandard [Member] | ||
Gross loans | 12,569 | 3,069 |
Purchased Auto Loans [Member] | Doubtful [Member] | ||
Gross loans | 0 | 0 |
Purchased Auto Loans [Member] | Not Rated [Member] | ||
Gross loans | 11,939,041 | 5,208,686 |
Purchased Auto Loans [Member] | ||
Gross loans | 11,951,610 | 5,211,755 |
Pass [Member] | ||
Gross loans | 33,711,516 | 30,153,009 |
Special Mention [Member] | ||
Gross loans | 1,161,026 | 716,807 |
Substandard [Member] | ||
Gross loans | 4,112,444 | 4,960,451 |
Doubtful [Member] | ||
Gross loans | 0 | 0 |
Not Rated [Member] | ||
Gross loans | 118,267,108 | 106,503,940 |
Gross loans | $ 157,252,094 | $ 142,334,207 |
Note 9 - Stock Compensation (De
Note 9 - Stock Compensation (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Management Recognition Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Allocated Share-based Compensation Expense | $ 8,000 | $ 14,000 |
Note 11 - Fair Value Measurem47
Note 11 - Fair Value Measurement and Disclosure (Details Textual) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale Securities | $ 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale Securities | 0 | |
Available-for-sale Securities | $ 44,149,539 | $ 46,984,907 |
Note 11 - Fair Value Measurem48
Note 11 - Fair Value Measurement and Disclosure - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | $ 0 | $ 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 19,013,596 | 19,237,208 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 19,013,596 | 19,237,208 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale | 19,013,596 | 19,237,208 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 25,135,943 | 27,747,699 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 25,135,943 | 27,747,699 |
Residential Mortgage Backed Securities [Member] | ||
Securities available for sale | 25,135,943 | 27,747,699 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 44,149,539 | 46,984,907 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale | 0 | |
Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale | 44,149,539 | 46,984,907 |
Securities available for sale | $ 44,149,539 | $ 46,984,907 |
Note 11 - Fair Value Measurem49
Note 11 - Fair Value Measurement and Disclosure - Assets Measured at Fair Value On a Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Foreclosed assets | $ 0 | $ 0 |
Impaired loans, net | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Foreclosed assets | 0 | 0 |
Impaired loans, net | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Foreclosed assets | 74,753 | 330,245 |
Impaired loans, net | 2,584,583 | 2,277,918 |
Foreclosed assets | 74,753 | 330,245 |
Impaired loans, net | $ 2,584,583 | $ 2,277,918 |
Note 11 - Fair Value Measurem50
Note 11 - Fair Value Measurement and Disclosure - Quantitative Information About Assets Measured at Fair Value (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Market Approach Valuation Technique [Member] | Foreclosed Assets [Member] | Minimum [Member] | ||
Appraisal adjustments | 23.00% | 6.70% |
Market Approach Valuation Technique [Member] | Foreclosed Assets [Member] | Maximum [Member] | ||
Appraisal adjustments | 50.00% | 63.60% |
Market Approach Valuation Technique [Member] | Foreclosed Assets [Member] | ||
Assets, fair value disclosure, noncrecurring | $ 74,753 | $ 330,245 |
Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Minimum [Member] | ||
Appraisal adjustments | 29.90% | 10.00% |
Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Maximum [Member] | ||
Appraisal adjustments | 74.50% | 70.00% |
Market Approach Valuation Technique [Member] | Impaired Loans [Member] | ||
Assets, fair value disclosure, noncrecurring | $ 2,271,952 | $ 2,170,027 |
Income Approach Valuation Technique [Member] | Impaired Loans [Member] | ||
Assets, fair value disclosure, noncrecurring | $ 312,631 | $ 107,891 |
Discount Rate | 10.00% | 10.00% |
Note 11 - Fair Value Measurem51
Note 11 - Fair Value Measurement and Disclosure - Estimated Fair Values of Financial Instruments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Reported Value Measurement [Member] | Non-Interest Bearing Deposits [Member] | ||
Deposits | $ 10,285,561 | $ 10,325,832 |
Reported Value Measurement [Member] | Interest Bearing Deposits, Liabilities [Member] | ||
Deposits | 221,601,449 | 166,409,076 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | 4,469,007 | 7,135,719 |
Time deposits | 250,000 | 250,000 |
Federal funds sold | 54,351,000 | 1,604,000 |
Securities | 44,902,860 | 48,343,028 |
Accrued interest receivable | 800,249 | 775,641 |
Net loans | 154,943,940 | 140,110,201 |
Loans held for sale | 710,700 | |
Mortgage servicing rights | 328,360 | 285,927 |
Accrued interest payable | 1,697 | 394 |
FHLB advances | 8,630,697 | 2,139,117 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Non-Interest Bearing Deposits [Member] | ||
Deposits | 10,285,561 | 10,325,832 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Bearing Deposits, Liabilities [Member] | ||
Deposits | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 4,469,007 | 7,135,719 |
Time deposits | 250,000 | 250,000 |
Federal funds sold | 54,351,000 | 1,604,000 |
Securities | ||
Accrued interest receivable | 800,249 | 775,641 |
Net loans | ||
Loans held for sale | 710,700 | |
Mortgage servicing rights | ||
Accrued interest payable | 1,697 | 394 |
FHLB advances | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Non-Interest Bearing Deposits [Member] | ||
Deposits | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Bearing Deposits, Liabilities [Member] | ||
Deposits | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | ||
Time deposits | ||
Federal funds sold | ||
Securities | 44,149,539 | 46,984,907 |
Accrued interest receivable | ||
Net loans | ||
Loans held for sale | ||
Mortgage servicing rights | ||
Accrued interest payable | ||
FHLB advances | 8,630,697 | 2,139,117 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Non-Interest Bearing Deposits [Member] | ||
Deposits | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Bearing Deposits, Liabilities [Member] | ||
Deposits | 213,131,439 | 161,173,168 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | ||
Time deposits | ||
Federal funds sold | ||
Securities | 753,321 | 1,358,121 |
Accrued interest receivable | ||
Net loans | 156,571,000 | 141,665,000 |
Loans held for sale | ||
Mortgage servicing rights | 328,360 | 285,927 |
Accrued interest payable | ||
FHLB advances | ||
Estimate of Fair Value Measurement [Member] | Non-Interest Bearing Deposits [Member] | ||
Deposits | 10,285,561 | 10,325,832 |
Estimate of Fair Value Measurement [Member] | Interest Bearing Deposits, Liabilities [Member] | ||
Deposits | 213,131,439 | 161,173,168 |
Estimate of Fair Value Measurement [Member] | ||
Cash and cash equivalents | 4,469,007 | 7,135,719 |
Time deposits | 250,000 | 250,000 |
Federal funds sold | 54,351,000 | 1,604,000 |
Securities | 44,902,860 | 48,343,028 |
Accrued interest receivable | 800,249 | 775,641 |
Net loans | 156,571,000 | 141,665,000 |
Loans held for sale | 710,700 | |
Mortgage servicing rights | 328,360 | 285,927 |
Accrued interest payable | 1,697 | 394 |
FHLB advances | $ 8,630,697 | $ 2,139,117 |
Note 12 - Acquisition (Details
Note 12 - Acquisition (Details Textual) - USD ($) | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 30, 2014 |
Twin Oaks [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 776,144 | ||||||
Business Acquisition, Share Price | $ 9.18 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 7,125,000 | ||||||
Ottawa Savings Bancorp MHC [Member] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 69.10% | 57.80% | |||||
Twin Oaks [Member] | Loans Receivable [Member] | Estimate of Fair Value Measurement [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets | $ 29,795,910 | ||||||
Twin Oaks [Member] | Loans Receivable [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets | 31,831,910 | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 407,000 | ||||||
Certain Loans Acquired in Transfer, Accretable Yield | 573,000 | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 166,000 | ||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition | 3,194,000 | ||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Acquired During Period, Cash Flows Expected to be Collected at Acquisition | 1,324,000 | ||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Carrying Amount, Net | 1,870,000 | ||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield | 362,000 | ||||||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 1,508,000 | ||||||
Twin Oaks [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 1,116,000 | $ 1,208,000 | |||||
Twin Oaks [Member] | |||||||
Business Combination, Acquisition Related Costs | $ 850,000 | ||||||
Goodwill, Acquired During Period | 649,869 | ||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 28,638,000 | ||||||
Business Combination, Acquired Receivables, Fair Value | 28,472,000 | ||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield | $ 362,000 | $ 213,157 | $ 101,238 | $ 124,583 | $ 175,342 | $ 302,375 |
Note 12 - Acquisition - Loans A
Note 12 - Acquisition - Loans Acquired With Deteriorated Credit Quality (Details) - Twin Oaks [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Balance, beginning of period | $ 498,912 | $ 1,201,159 | $ 575,605 | $ 1,323,648 |
Payment activity | (42,422) | (147,664) | (134,325) | (309,968) |
Charge-offs | (19,810) | |||
Transfer to OREO | (266,225) | (44,417) | (266,225) | |
Accretion to income | 23,345 | 28,883 | 82,972 | 88,508 |
Balance, end of year | $ 479,835 | $ 816,153 | $ 479,835 | $ 816,153 |
Note 12 - Acquisition - Accreta
Note 12 - Acquisition - Accretable Yield of Loans Acquired With Deteriorated Credit Quality (Details) - Twin Oaks [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Balance, beginning of period | $ 124,583 | $ 302,375 | $ 175,342 | $ 362,000 |
Net reclassification from non-accretable yield | 4,186 | 8,868 | 4,186 | |
Accretion into interest income | (23,345) | (28,883) | (82,972) | (88,508) |
Disposals | (64,521) | (64,521) | ||
Balance, end of year | $ 101,238 | $ 213,157 | $ 101,238 | $ 213,157 |
Note 13 - Subsequent Events (De
Note 13 - Subsequent Events (Details Textual) $ / shares in Units, $ in Millions | Oct. 11, 2016USD ($)$ / sharesshares | Oct. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jul. 11, 2005$ / shares |
Subsequent Event [Member] | Bank [Member] | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | shares | 190,716 | |||
Subsequent Event [Member] | Ottawa Savings Bancorp, Inc. Merger [Member] | ||||
Business Combination, Ratio for Conversion of Acquiree's Outstanding Common Shares into Acquirer's Common Shares | 1.1921 | |||
Subsequent Event [Member] | ||||
Increase (Decrease) in Deposits from Subscriptions Held | $ (29.5) | |||
Proceeds from Issuance of Common Stock | $ 23.8 | |||
Stock Issued During Period, Shares, New Issues | shares | 2,383,950 | |||
Share Price | $ / shares | $ 10 | |||
Increase (Decrease) in Assets from Subscriptions Held | $ (29.5) | |||
Increase (Decrease) in Deposits from Subscriptions Held | $ 55.2 | |||
Share Price | $ / shares | $ 10 | |||
Increase (Decrease) in Assets from Subscriptions Held | 62.5 | |||
Increase (Decrease) in Federal Funds Sold from Subscriptions Held | $ 54.3 |