Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CBMB | |
Entity Registrant Name | CBM BANCORP, INC. | |
Entity Central Index Key | 1,742,089 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,232,000 | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 881,939 | $ 671,038 |
Interest-bearing deposits in other banks | 49,812,245 | 11,359,234 |
Cash and cash equivalents | 50,694,184 | 12,030,272 |
Time deposits in other banks | 3,968,000 | 4,960,000 |
Securities available for sale, at fair value | 6,784,630 | 6,923,668 |
Securities held to maturity, at amortized cost | 2,846,292 | 3,323,446 |
Federal Home Loan Bank stock, at cost | 245,200 | 242,100 |
Loans held for sale | 423,143 | 1,218,350 |
Loans, net of unearned fees | 144,458,724 | 140,085,471 |
Allowance for loan losses | (1,191,267) | (1,038,405) |
Net loans | 143,267,457 | 139,047,066 |
Accrued interest receivable | 583,923 | 526,811 |
Bank-owned life insurance | 4,590,377 | 5,367,468 |
Premises and equipment, net | 1,917,018 | 1,926,938 |
Foreclosed real estate | 865,000 | 865,000 |
Deferred income taxes | 885,207 | 1,081,801 |
Prepaid expenses and other assets | 416,799 | 389,617 |
Total assets | 217,487,230 | 177,902,537 |
Liabilities | ||
Noninterest-bearing deposits | 18,440,675 | 16,465,761 |
Interest-bearing deposits | 137,236,250 | 138,320,643 |
Total deposits | 155,676,925 | 154,786,404 |
Advances by borrowers for taxes and insurance | 654,937 | 566,276 |
Accounts payable and other liabilities | 935,609 | 946,527 |
Total liabilities | 157,267,471 | 156,299,207 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $.01 par value; authorized 1,000,000 shares; none issued | ||
Common stock, $.01 par value; authorized 24,000,000 shares; issued and outstanding 4,232,000 shares at September 30, 2018 | 42,320 | |
Additional paid in capital | 41,220,201 | |
Retained earnings | 22,459,840 | 21,653,191 |
Unearned ESOP shares | (3,370,600) | |
Accumulated other comprehensive loss | (132,002) | (49,861) |
Total stockholders' equity | 60,219,759 | 21,603,330 |
Total liabilities and stockholders' equity | $ 217,487,230 | $ 177,902,537 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) | Sep. 30, 2018$ / sharesshares |
Preferred stock, par value | $ / shares | $ 0.01 |
Preferred stock, authorized | 1,000,000 |
Preferred stock, issued | 0 |
Common stock, par value | $ / shares | $ 0.01 |
Common stock, authorized | 24,000,000 |
Common stock, issued | 4,232,000 |
Common stock, outstanding | 4,232,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 1,703,567 | $ 1,648,653 | $ 4,996,564 | $ 4,790,407 |
Interest and dividends on investments | 226,982 | 116,430 | 521,303 | 337,763 |
Total interest income | 1,930,549 | 1,765,083 | 5,517,867 | 5,128,170 |
Interest expense | ||||
Interest on deposits | 253,311 | 202,163 | 696,724 | 578,584 |
Interest on borrowings | 14,722 | 17,251 | ||
Total interest expense | 253,311 | 216,885 | 696,724 | 595,835 |
Net interest income | 1,677,238 | 1,548,198 | 4,821,143 | 4,532,335 |
Provision for loan losses | 75,000 | 525,000 | 225,000 | 900,000 |
Net interest income after provision for loan losses | 1,602,238 | 1,023,198 | 4,596,143 | 3,632,335 |
Non-interest income | ||||
Service fees on deposit accounts | 33,635 | 37,210 | 101,171 | 112,268 |
Income from bank-owned life insurance | 67,746 | 190,495 | 108,681 | 253,683 |
Gain on sale of loans held for sale | 44,467 | 28,148 | 168,324 | 126,899 |
Gain on sale of foreclosed real estate | 36,288 | 22,548 | ||
Other non-interest income | 31,537 | 33,777 | 95,730 | 103,250 |
Total non-interest income | 177,385 | 325,918 | 473,906 | 618,648 |
Non-interest expense | ||||
Salaries, director fees and employee benefits | 810,946 | 723,071 | 2,389,235 | 2,195,936 |
Premises and equipment | 116,583 | 101,992 | 336,116 | 318,018 |
Data processing | 134,743 | 129,671 | 404,873 | 382,473 |
Professional fees | 65,943 | 69,543 | 224,455 | 190,857 |
FDIC premiums and regulatory assessments | 31,529 | 42,494 | 94,158 | 107,720 |
Marketing | 23,623 | 34,323 | 97,779 | 93,234 |
Other operating expenses | 166,131 | 160,873 | 467,153 | 467,473 |
Total non-interest expense | 1,349,498 | 1,261,967 | 4,013,769 | 3,755,711 |
Income before income taxes | 430,125 | 87,149 | 1,056,280 | 495,272 |
Income tax expense | 105,913 | 259,452 | 142,851 | |
Net income | $ 324,212 | $ 87,149 | $ 796,828 | $ 352,421 |
Earnings per common share | ||||
Basic | $ 0.33 | $ 0.27 | ||
Diluted | $ 0.33 | $ 0.27 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 324,212 | $ 87,149 | $ 796,828 | $ 352,421 |
Other comprehensive income (loss) | ||||
Unrealized gain (loss) on investment securities available for sale | (19,583) | 2,254 | (99,776) | 70,287 |
Income tax benefit (expense) relating to investment securities available for sale | 5,389 | (918) | 27,456 | (27,728) |
Other comprehensive income (loss) | (14,194) | 1,336 | (72,320) | 42,559 |
Total comprehensive income | $ 310,018 | $ 88,485 | $ 724,508 | $ 394,980 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2016 | $ 21,602,543 | $ 21,652,205 | $ (49,662) | |||
Net income | 352,421 | 352,421 | ||||
Other comprehensive income (loss) | 42,559 | 42,559 | ||||
Ending balance at Sep. 30, 2017 | 21,997,523 | 22,004,626 | (7,103) | |||
Beginning balance at Dec. 31, 2017 | 21,603,330 | 21,653,191 | (49,861) | |||
Net income | 796,828 | 796,828 | ||||
Other comprehensive income (loss) | (72,320) | (72,320) | ||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from accumulated other comprehensive loss | 9,821 | (9,821) | ||||
Issuance of common stock | 41,262,521 | $ 42,320 | $ 41,220,201 | |||
Stock purchased by the ESOP | (3,385,600) | $ (3,385,600) | ||||
ESOP shares committed to be released | 15,000 | 15,000 | ||||
Ending balance at Sep. 30, 2018 | $ 60,219,759 | $ 42,320 | $ 41,220,201 | $ 22,459,840 | $ (3,370,600) | $ (132,002) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 796,828 | $ 352,421 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and accretion of securities | (5,634) | (5,058) |
Gain on sale of loans held for sale | (168,324) | (126,899) |
Originations of loans held for sale | (6,543,907) | (4,640,831) |
Proceeds from sales of loans held for sale | 7,507,438 | 5,067,171 |
Amortization of deferred loan origination costs, net of fees | (54,423) | (90,609) |
Provision for loan losses | 225,000 | 900,000 |
Increase in accrued interest receivable | (57,112) | (63,131) |
Increase in cash surrender value of life insurance | (105,187) | (182,231) |
Depreciation and amortization | 122,031 | 117,922 |
Gain on sales of foreclosed real estate | (22,548) | |
ESOP compensation expense | 15,000 | |
Deferred income tax | 224,050 | 142,851 |
Increase in prepaid expenses and other assets | (27,182) | (31,677) |
Increase (decrease) in accounts payable and other liabilities | (10,918) | 47,509 |
Net cash provided by operating activities | 1,917,660 | 1,464,890 |
Cash flows from investing activities: | ||
Net maturities of time deposits in other banks | 992,000 | 1,988,000 |
Proceeds from maturities, payments and calls of held to maturity securities | 480,094 | 797,267 |
Purchases of available for sale securities | (958,044) | (3,006,918) |
Proceeds from maturities of available for sale securities | 1,000,000 | |
Purchases of Federal Home Loan Bank stock | (3,100) | (258,800) |
Net increase in loans | (4,390,968) | (18,145,819) |
Proceeds from redemption of bank owned life insurance | 882,278 | 1,724,056 |
Purchases of premises and equipment | (112,111) | (143,747) |
Proceeds from sale of foreclosed real estate | 0 | 382,148 |
Net cash used in investing activities | (2,109,851) | (16,663,813) |
Cash flows from financing activities: | ||
Net increase in deposits | 890,521 | 2,528,260 |
Net increase in advances by borrowers | 88,661 | 167,479 |
Net proceeds from borrowings | 4,000,000 | |
Proceeds from issuance of common stock | 41,262,521 | |
Purchase of ESOP shares | (3,385,600) | |
Net cash provided by financing activities | 38,856,103 | 6,695,739 |
Net increase (decrease) in cash and cash equivalents | 38,663,912 | (8,503,184) |
Cash and cash equivalents, beginning balance | 12,030,272 | 21,443,369 |
Cash and cash equivalents, ending balance | 50,694,184 | 12,940,185 |
Supplemental disclosure of cash flows information: | ||
Cash paid for interest | 696,976 | 595,950 |
Cash paid for income taxes | 0 | 0 |
Supplemental disclosure of noncash investing and financing activities: | ||
Foreclosed real estate acquired in settlement of loans | $ 0 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Significant Accounting Policies | Note 1. Significant Accounting Policies Basis of Presentation Pursuant to the terms and conditions of a plan of conversion and reorganization, adopted by its Board of Directors and approved by its members, Banks of the Chesapeake, M.H.C. converted from the mutual holding company corporate structure to the public stock holding company structure as follows: CBM Bancorp, Inc. (“CBM Bancorp” or “Company”) was incorporated on May 22, 2018 to serve as the successor holding company for Chesapeake Bank of Maryland (“Bank”), which was at that time the wholly owned subsidiary of Banks of the Chesapeake, M.H.C. On September 27, 2018, in accordance with the plan of conversion and reorganization, CBM Bancorp became the parent holding company for the Bank and Banks of the Chesapeake, M.H.C. merged with and into CBM Bancorp, with the Company as the surviving corporation. Upon consummation of the merger, Banks of the Chesapeake, M.H.C. ceased to exist. The conversion and reorganization was accomplished through the sale and issuance of 4,232,000 shares of common stock at a price of $10.00 per share, through which the Company received proceeds of approximately $41.3 million, net of offering expenses, year to date, of approximately $1.1 million. Approximately 50% of the net proceeds of the offering, or $20.5 million was contributed by the Company to the Bank in return for 100% of the issued and outstanding shares of common stock of the Bank. In connection with the conversion and reorganization, the Bank’s Board of Directors adopted an employee stock ownership plan (the “ESOP”) which subscribed for 8% of the sum of the number of shares, or 338,560 shares of common stock sold in the offering. The plan of conversion and reorganization provided for the establishment of a liquidation account by CBM Bancorp for the benefit of eligible account holders in an amount equal to the value of the net assets of Banks of the Chesapeake, M.H.C. as of the date of the latest statement of financial condition of Banks of the Chesapeake, M.H.C. prior to the consummation of the conversion and reorganization. The plan of conversion and reorganization also provided for the establishment of a parallel liquidation account in the Bank to support the CBM Bancorp liquidation account in the event CBM Bancorp does not have sufficient assets to fund its obligations under the CBM Bancorp liquidation account. In the unlikely event that the Bank were to liquidate after the conversion and reorganization, all claims of creditors, including those of depositors, would be paid first. However, except with respect to the liquidation account to be established in CBM Bancorp, depositors’ claims would be solely for the principal amount of their deposit accounts plus accrued interest. Depositors generally would not have an interest in the value of the assets of the Bank or CBM Bancorp above that amount. Pursuant to the plan of conversion and reorganization, after two years from the date of conversion and reorganization, and upon the written request of the Federal Reserve Board, CBM Bancorp will transfer, or upon the prior written approval of the Federal Reserve Board, CBM Bancorp may transfer, the liquidation account and the depositors’ interests in such account to the Bank, and the liquidation account shall thereupon be subsumed into the liquidation account of the Bank. Following the completion of the conversion and reorganization, the Company may not pay a dividend on, or repurchase any of, it capital stock, if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements. In addition, the Company will be subject to certain other regulations restricting the payment of dividends on, and the repurchase of, its capital stock. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q S-X Nature of Operations CBM Bancorp, Inc.’s primary business is the ownership and operation of the Bank, a community-oriented federal stock savings bank regulated by the Office of the Comptroller of the Currency. The Bank’s primary business activity is the acceptance of deposits from the general public and using the proceeds for loan originations and investments. The Bank is subject to competition from other financial institutions. The Bank is subject to the regulations of certain federal agencies and undergoes periodic examinations by the regulatory authorities. Principles of Consolidation The consolidated financial statements include the accounts of CBM Bancorp, Inc. and the Bank, its wholly owned subsidiary. Material intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and the valuation of deferred tax assets. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, interest-bearing deposits in other banks and federal funds sold. Generally federal funds are sold as overnight investments. Time Deposits in Other Banks The Bank uses financial instruments to supplement the investment securities portfolio. Interest income is recognized as earned. Purchase premiums and discounts are recognized as part of interest income using the interest method over the terms of the investments. Realized gains and losses on the sale of time deposits in other banks are included in earnings based on the trade date and are determined using the specific identification method. Time deposits in other banks are not marked to market. Investment Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates Securities classified as available for sale are carried at fair value and are those securities that the Bank intends to hold for an indefinite period of time but not necessarily to maturity. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Realized gains and losses, determined on the basis of the cost of the specific securities sold, are included in earnings on a trade date basis. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the terms of the securities. Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary, if any, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (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 of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value Federal Home Loan Bank Stock Federal Home Loan Bank of Atlanta (“FHLB”) stock is an equity interest in the FHLB, which does not have a readily determinable fair value for purposes of Generally Accepted Accounting Standards related to Accounting for Certain Investments in Debt and Equity Securities, Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value. Fair value is derived from secondary market quotations for similar instruments. Gains and losses on loan sales are recorded in non-interest non-interest The Bank enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. The period of time between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 90 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the investor commits to purchase a loan at a price representing a premium on the day the borrower commits to an interest rate with the intent that they buyer/investor has assumed the interest rate risk on the loan. As a result, the Bank is not generally exposed to losses on loans sold utilizing best efforts, nor will it realize gains related to rate lock commitments due to changes in interest rates. Loans held for sale that are not ultimately sold, but instead are placed into the Bank’s portfolio, are reclassified as loans held for investment and recorded at fair value. Loans Loans are generally carried at the amount of unpaid principal, less the allowance for loan losses and adjusted for deferred loan origination fees and costs, which are recognized over the term of the loan as an adjustment to yield using a method that approximates the interest method. Interest on loans is accrued based on the principal amounts outstanding. It is the Bank’s policy to discontinue the accrual of interest when the principal or interest is delinquent for 90 days or more, or if collection of principal and interest in full is in doubt. A loan is considered impaired when, based on current information and events, it is probable that the Bank 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. Impairment is measured on a loan by loan basis 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. The carrying value of impaired loans is based on the present value of the loan’s expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. Impaired loans also include certain loans that have been modified in a troubled debt restructuring (“TDR”) to make concessions to help a borrower remain current on the loan and/or to avoid foreclosure. These concessions typically result from the Bank’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Generally nonaccrual loans that are modified and are considered TDRs are classified as nonperforming at the time of the restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to earnings. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The Bank maintains the allowance at a level believed, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. The evaluation process by portfolio segment includes, among other things, an analysis of delinquency trends, non-performing The establishment of the allowance for loan losses is significantly affected by management’s judgment and uncertainties, and there is likelihood that different amounts would be reported under different conditions or assumptions. The Office of the Comptroller of the Currency as an integral part of its examination process periodically reviews the allowance for loan losses and may require the Bank to make additional provisions for estimated loan losses based upon judgments different from those of management. The Bank’s policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets (or portions of assets) classified as loss, are those considered uncollectible and of such little value that their recognition as assets is not justified. Assets that do not expose us to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve close attention, are required to be designated as special mention. While the Bank utilizes available information to recognize losses on loans, future additions to the allowances for loan losses may be necessary based on changes in economic conditions, particularly in its’ market area primarily in the state of Maryland. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Actual loan losses may be significantly more than the allowance for loan and lease losses the Bank has established, which could have a material negative effect on our consolidated financial statements. Bank-Owned Life Insurance (“BOLI”) The Bank maintains life insurance policies on certain present and former directors. These policies are split-dollar or director insurance policies. Under the split-dollar insurance policies, the Bank pays the premiums and upon the death of the insured, the Bank will receive an amount equal to the premiums paid on the policy from the policy date to the date of death. Any remaining proceeds will be paid to the beneficiary. If the policy is surrendered before the date of death, the Bank will receive the lesser of the cash surrender value or the sum of the premiums paid on the policy from the policy date to the date of surrender. Under the director insurance policies, the Bank receives the cash surrender value if the policy is surrendered, or receives all benefits payable upon the death of the insured. As of September 30, 2018 and December 31, 2017, $133,097 and $162,946, respectively, was included in other liabilities related to the split-dollar insurance policies. Premises and Equipment Land is carried at cost. Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over estimated useful lives of assets. Amortization of leasehold improvements is recognized on a straight-line basis over the term of the lease or the life of the improvement, whichever is shorter. The cost of maintenance and repairs is charged to expense as incurred whereas improvements are capitalized. The range of estimated useful lives for premises and equipment are as follows: Buildings and land improvements 5 - 50 years Leasehold improvements 10 - 15 years Furniture, fixtures and equipment 3 – 10 years Automobile 5 years Foreclosed Real Estate Real estate acquired through foreclosure or other means is recorded at the fair value of the related real estate collateral at the transfer date less estimated selling costs. Losses incurred at the time of the acquisition of the property are charged to the allowance for loan losses. Subsequent reductions in the estimated fair value of the property are included in noninterest expense. Costs to maintain foreclosed real estate are expensed as incurred. Income Taxes The provision for income taxes includes taxes payable for the current year and deferred income taxes. Deferred income taxes are provided for the temporary differences between financial and taxable income. Deferred income taxes and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted through earnings for the effects of changes in tax laws and rates on the date of enactment. Earnings per Common Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Weighted average shares exclude unallocated ESOP shares. Diluted earnings per share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Off-Balance In the ordinary course of business, the Bank has entered into off-balance The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amount of these instruments. The Bank uses the same credit policies for these instruments as it does for the on-balance Deferred Compensation Arrangements The Bank has deferred compensation agreements with former directors and officers. Under the agreements, participants will be paid deferred compensation funded in part by the proceeds in excess of the cash surrender value of life insurance policies. The Bank’s index retirement benefit plan was converted to a supplemental retirement plan which pays equal annual installments to the plan participants upon retirement. Participants are entitled to receive their retirement benefits commencing thirty days following their normal retirement date. The Bank has a compensation deferral plan whereby directors are able to elect to defer fees and compensation covered by the plan. Participants are eligible to receive the balance of their pre-retirement Supplemental Executive Retirement Plan The Bank has a Supplemental Executive Retirement Plan (“SERP”), which provides supplemental retirement benefits to the Chief Executive Officer of the Bank. The SERP provides for annual payments of $30,000 for ten years upon reaching retirement age of 65. Concentrations of Credit Risk The Bank had approximately $1,047,000 and approximately $137,000 in deposits in other financial institutions in excess of amounts insured by the FDIC, as of September 30, 2018 and December 31, 2017, respectively. The Bank’s management considers this a normal business risk. The Bank also maintains accounts with brokerage firms containing securities. These balances are insured up to $500,000 by the Securities Investor Protection Corporation. Recent Accounting Pronouncements ASU - Revenue from Contracts with Customers (Topic ). ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) ASU No. 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Liabilities. No. 2016-01 ASU 2016-02, ASU 2016-13, off-balance ASU 2016-15 Statement of Cash Flows (Topic 230). 2016-15 ASU 2017-08, 310-20) non-pooled ASU 2017-08 ASU 2017-08 ASU 2017-08 ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): No. 2018-02 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Securities | Note 2. Securities The amortized cost and estimated fair value of securities classified as available for sale and held to maturity at September 30, 2018 and December 31, 2017, are as follows: September 30, 2018 Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Government and Federal Agency obligations $ 5,460,450 $ — $ 135,365 $ 5,325,085 Municipal securities 1,506,296 — 46,751 1,459,545 $ 6,966,746 $ — $ 182,116 $ 6,784,630 Securities Held to Maturity Residential mortgage-backed securities $ 2,846,292 $ 78,940 $ 1,300 $ 2,923,932 December 31, 2017 Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Government and Federal Agency obligations $ 5,498,783 $ — $ 74,790 $ 5,423,993 Municipal securities 1,507,225 12 7,562 1,499,675 $ 7,006,008 $ 12 $ 82,352 $ 6,923,668 Securities Held to Maturity Residential mortgage-backed securities $ 3,323,446 $ 183,124 $ — $ 3,506,570 The amortized cost and estimated fair value of securities as of September 30, 2018 and December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 Securities Available for Sale Securities Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 1,000,000 $ 985,604 $ — $ — Due after one year through five years 5,463,616 5,311,386 — — Due five years to ten years 503,130 487,640 — — Due after ten years — — — — Mortgage-backed, in monthly installments — — 2,846,292 2,923,932 $ 6,966,746 $ 6,784,630 $ 2,846,292 $ 2,923,932 December 31, 2017 Securities Available for Sale Securities Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 1,000,000 $ 995,925 $ — $ — Due after one year through five years 5,502,565 5,424,288 — — Due five years to ten years 503,443 503,455 — — Due after ten years — — — — Mortgage-backed, in monthly installments — — 3,323,446 3,506,570 $ 7,006,008 $ 6,923,668 $ 3,323,446 $ 3,506,570 Securities with gross unrealized losses at September 30, 2018 and December 31, 2017 aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: September 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Securities Available for Sale U.S. Government and Federal Agency obligations $ 954,363 $ 7,100 $ 4,370,722 $ 128,265 $ 5,325,085 $ 135,365 Municipal obligations 1,459,545 46,751 — — 1,459,545 46,751 $ 2,413,908 $ 53,851 $ 4,370,722 $ 128,265 $ 6,784,630 $ 182,116 Securities Held to Maturity Residential mortgage-backed securities $ 449,754 $ 1,300 $ — $ — $ 449,754 $ 1,300 December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Securities Available for Sale U.S. Government and Federal Agency obligations $ 1,485,930 $ 12,853 $ 3,938,063 $ 61,937 $ 5,423,993 $ 74,790 Municipal obligations 996,220 7,562 — — 996,220 7,562 $ 2,482,150 $ 20,415 $ 3,938,063 $ 61,937 $ 6,420,213 $ 82,352 Securities Held to Maturity Residential mortgage-backed securities $ — $ — $ — $ — $ — $ — The unrealized losses that existed were a result of market changes in interest rates since the original purchase. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) duration and magnitude of the decline in value, (2) the financial condition of the issuer or issuers and (3) structure of the security. At September 30, 2018, the Bank held eleven investments with gross unrealized losses totaling $183,416. At December 31, 2017, the Bank held eight investments with gross unrealized losses totaling $82,352. An impairment loss is recognized in earnings if any of the following are true: (1) the Bank intends to sell the debt security; (2) it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis; or (3) the Bank does not expect to recover the entire amortized cost basis of the security. In situations where the Bank intends to sell or when it is more likely than not that the Bank will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in equity as a component of other comprehensive income, net of deferred tax. There were no securities pledged as of September 30, 2018 and December 31, 2017. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Loans | Note 3. Loans The Bank makes loans to customers primarily in the Baltimore Metropolitan Area and its surrounding counties. The principal loan portfolio segment balances at September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2018 2017 Real estate loans One-to $ 69,301,180 $ 67,192,415 Home equity loans and lines of credit 8,072,429 9,539,606 Construction and land development 9,990,514 9,333,394 Nonresidential 51,438,876 48,968,708 Total real estate loans 138,802,999 135,034,123 Other loans Commercial 5,296,630 4,604,087 Consumer 528,669 577,006 Total other loans 5,825,299 5,181,093 Total loans 144,628,298 140,215,216 Net deferred loan origination fees and costs (169,574 ) (129,745 ) Allowance for loan losses (1,191,267 ) (1,038,405 ) Total loans, net $ 143,267,457 $ 139,047,066 Overdraft deposits are reclassified as consumer loans and are included in the total loans on the balance sheet. Overdrafts were $6,793 and $9,683 at September 30, 2018 and December 31, 2017, respectively. Portfolio segments The Bank currently manages its credit products and respective exposure to credit losses by the following specific portfolio segments (classes) which are levels at which the Bank develops and documents its systematic methodology to determine the allowance for loan losses attributable to each respective portfolio segment. The segments are: • One-to debt-to-income non-conforming. • Home equity loans and lines of credit one-to • Construction and land development • Nonresidential real estate loans – non-owner Non-owner • Commercial loans • Consumer loans |
Credit Quality of Loans and the
Credit Quality of Loans and the Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Credit Quality of Loans and the Allowance for Loan Losses | Note 4. Credit Quality of Loans and the Allowance for Loan Losses The allowance for loan losses is maintained at a level to provide for losses that are probable and can be reasonably estimated. Management’s periodic evaluation of the adequacy of the allowance is based on the Bank’s past loan loss experience, known and inherent losses in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as impaired. The general component covers non-impaired A loan is considered past due or delinquent when a contractual payment is not paid on the day it is due. A loan in considered impaired when, based on current information and events, it is probable that the Bank 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 Loans are automatically placed on non-accrual non-accrual non-accrual charge-off The following tables summarize the activity in the allowance for losses for the three and nine months ended September 30, 2018 and 2017 and for the year ended December 31, 2017 and the distribution of the allowance for loan losses and loans receivable by loan portfolio class and impairment method as of September 30, 2018, September 30, 2017 and December 31, 2017. As of September 30, 2018 One –to Four-Family Home Equity of Credit Construction and Land Nonresidential Commercial Consumer Unallocated Total Allowance for loans losses: Beginning Balance - July 1, 2018 $ 202,457 $ 70,328 $ 171,304 $ 591,189 $ 30,137 $ 16,801 $ 34,051 $ 1,116,267 Charge-offs — — — — — — — — Recoveries — — — — — — — — Provision 37,553 (22,155 ) 37,955 4,724 (1,006 ) (79 ) 18,008 75,000 Ending Balance - September 30, 2018 $ 240,010 $ 48,173 $ 209,259 $ 595,913 $ 29,131 $ 16,722 $ 52,059 $ 1,191,267 Beginning Balance - January 1, 2018 $ 238,148 $ 83,129 $ 173,167 $ 446,576 $ 44,199 $ 15,933 $ 37,253 $ 1,038,405 Charge-offs (88,000 ) — — — — — — (88,000 ) Recoveries 7,563 — 8,299 — — — — 15,862 Provision 82,299 (34,956 ) 27,793 149,337 (15,068 ) 789 14,806 225,000 Ending Balance - September 30, 2018 $ 240,010 $ 48,173 $ 209,259 $ 595,913 $ 29,131 $ 16,722 $ 52,059 $ 1,191,267 Ending balance: individually evaluated for impairment $ — $ 1,178 $ 7,267 $ — $ — $ 5,901 $ — $ 14,346 Ending balance: collectively evaluated for impairment $ 240,010 $ 46,995 $ 201,992 $ 595,913 $ 29,131 $ 10,821 $ 52,059 $ 1,176,921 Loans: Ending balance $ 69,301,180 $ 8,072,429 $ 9,990,514 $ 51,438,876 $ 5,296,630 $ 528,669 $ 144,628,298 Ending balance: individually evaluated for impairment $ 726,891 $ 142,847 $ 210,815 $ — $ — $ 5,901 $ 1,086,454 Ending balance: collectively evaluated for impairment $ 68,574,289 $ 7,929,582 $ 9,779,699 $ 51,438,876 $ 5,296,630 $ 522,768 $ 143,541,844 As of September 30, 2017 One –to Four-Family Home Equity Construction and Land Nonresidential Commercial Consumer Unallocated Total Allowance for loans losses: Beginning Balance - July 1, 2017 $ 126,856 $ 77,641 $ 536,051 $ 226,273 $ 73,006 $ 13,990 $ 2,201 $ 1,056,018 Charge-offs (19,471 ) — (651,039 ) — — (1,697 ) — (672,207 ) Recoveries — — — — — 150 — 150 Provision 119,071 (7,542 ) 317,977 59,022 (13,320 ) 5,559 44,233 525,000 Ending Balance - September 30, 2017 $ 226,456 $ 70,099 $ 202,989 $ 285,295 $ 59,686 $ 18,002 $ 46,434 $ 908,961 Beginning Balance - January 1, 2017 $ 74,483 $ 90,868 $ 308,507 $ 100,112 $ 55,066 $ 12,955 $ 39,375 $ 681,366 Charge-offs (19,471 ) — (651,039 ) — — (2,195 ) — (672,705 ) Recoveries — — — — — 300 — 300 Provision 171,444 (20,769 ) 545,521 185,183 4,620 6,942 7,059 900,000 Ending Balance - September 30, 2017 $ 226,456 $ 70,099 $ 202,989 $ 285,295 $ 59,686 $ 18,002 $ 46,434 $ 908,961 Ending balance: individually evaluated for impairment $ 66,533 $ 2,134 $ — $ — $ — $ 6,438 $ — $ 75,105 Ending balance: collectively evaluated for impairment $ 159,923 $ 67,965 $ 202,989 $ 285,295 $ 59,686 $ 11,564 $ 46,434 $ 833,856 Loans: Ending balance $ 69,026,545 $ 9,841,296 $ 10,730,305 $ 48,187,130 $ 4,521,640 $ 587,520 $ 142,894,436 Ending balance: individually evaluated for impairment $ 758,714 $ 67,241 $ 1,233,338 $ — $ — $ 6,438 $ 2,065,731 Ending balance: collectively evaluated for impairment $ 68,267,831 $ 9,774,055 $ 9,496,967 $ 48,187,130 $ 4,521,640 $ 581,082 $ 140,828,705 As of December 31, 2017 One –to Four-Family Home Equity Construction and Land Nonresidential Commercial Consumer Unallocated Total Beginning Balance $ 74,483 $ 90,868 $ 308,507 $ 100,112 $ 55,066 $ 12,955 $ 39,375 $ 681,366 Charge-offs (19,471 ) — (656,403 ) — — (2,195 ) — (678,069 ) Recoveries 6,508 — — — — 3,600 — 10,108 Provision 176,628 (7,739 ) 521,063 346,464 (10,867 ) 1,573 (2,122 ) 1,025,000 Ending Balance $ 238,148 $ 83,129 $ 173,167 $ 446,576 $ 44,199 $ 15,933 $ 37,253 $ 1,038,405 Ending balance: individually evaluated for impairment $ 58,542 $ 21,899 $ — $ — $ — $ 6,277 $ — $ 86,718 Ending balance: collectively evaluated for impairment $ 179,606 $ 61,230 $ 173,167 $ 446,576 $ 44,199 $ 9,656 $ 37,253 $ 951,687 Loans: Ending balance $ 67,192,415 $ 9,539,606 $ 9,333,394 $ 48,968,708 $ 4,604,087 $ 577,006 $ 140,215,216 Ending balance: individually evaluated for impairment $ 705,255 $ 69,334 $ 123,338 $ — $ — $ 6,277 $ 904,204 Ending balance: collectively evaluated for impairment $ 66,487,160 $ 9,470,272 $ 9,210,056 $ 48,968,708 $ 4,604,087 $ 570,729 $ 139,311,012 As part of the ongoing monitoring of the credit quality of the Bank’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grade of classified loans, net chargeoffs, nonperforming loans, credit scores, and the general economic conditions in the Bank’s market area. The Bank utilizes an internal rating system to monitor the credit quality of the overall loan portfolio. A description of the general characteristics is as follows: • Pass • Special mention • Substandard • Doubtful non-accrual • Loss charged-off When assets are classified as impaired, the Bank allocates a portion of the related general loss allowances to such assets as the Bank deems prudent. Determinations as to the classification of assets and the amount of loss allowances are subject to review by our principal federal regulator, the Office of the Comptroller of the Currency, which can require that we establish additional loss allowances. The Bank regularly reviews its asset portfolio to determine whether any assets require classification in accordance with applicable regulations. The following table is a summary of the loan portfolio quality indicators by loan class recorded investment as of September 30, 2018 and December 31, 2017: September 30, 2018 One-to Four-Family Home Equity Loans and Lines of Credit Construction Nonresidential Grade: Pass $ 68,574,289 $ 7,915,576 $ 8,963,824 $ 49,786,551 Special Mention — 59,875 815,875 1,652,325 Substandard 726,891 96,978 210,815 — Doubtful — — — — $ 69,301,180 $ 8,072,429 $ 9,990,514 $ 51,438,876 Commercial Consumer Totals Grade: Pass $ 5,296,630 $ 522,768 $ 141,059,638 Special Mention — — 2,528,075 Substandard — 5,901 1,040,585 Doubtful — — — $ 5,296,630 $ 528,669 $ 144,628,298 December 31, 2017 One-to Four-Family Home Equity Loans and Lines of Credit Construction Nonresidential Grade: Pass $ 66,478,078 $ 9,354,616 $ 8,329,593 $ 48,467,012 Special Mention 9,082 82,656 880,463 — Substandard 705,255 102,334 123,338 501,696 Doubtful — — — — $ 67,192,415 $ 9,539,606 $ 9,333,394 $ 48,968,708 Commercial Consumer Totals Grade: Pass $ 4,604,087 $ 569,667 $ 137,803,053 Special Mention — — 972,201 Substandard — 7,339 1,439,962 Doubtful — — — $ 4,604,087 $ 577,006 $ 140,215,216 The following table sets forth certain information with respect to our loan portfolio delinquencies by loan class and amount as of September 30, 2018 and December 31, 2017: September 30, 2018 Loans 30-59 Loans 60-89 Days Loans 90 or More Days Past Due Total Past Current Loans Total Loans Recorded Nonaccrual Real estate loans: One-to $ 204,234 $ — $ 454,435 $ 658,669 $ 68,642,511 $ 69,301,180 $ — $ 726,891 Home equity loans and lines of credit — — 96,978 96,978 7,975,451 8,072,429 — 96,978 Construction and land development — — 210,815 210,815 9,779,699 9,990,514 — 210,815 Nonresidential 822,130 — — 822,130 50,616,746 51,438,876 — — Other loans: Commercial 209,907 — — 209,907 5,086,723 5,296,630 — — Consumer — 6,295 — 6,295 522,374 528,669 — — Total loans $ 1,236,271 $ 6,295 $ 762,228 $ 2,004,794 $ 142,623,504 $ 144,628,298 $ — $ 1,034,684 December 31, 2017 Loans 30-59 Loans 60-89 Days Loans 90 or More Days Past Due Total Past Current Loans Total Loans Recorded Nonaccrual Real estate loans: One-to $ 9,082 $ — $ 705,255 $ 714,337 $ 66,478,078 $ 67,192,415 $ — $ 705,255 Home equity loans and lines of credit 12,517 104,439 — 116,956 9,422,650 9,539,606 — 49,088 Construction and land development — — 123,338 123,338 9,210,056 9,333,394 — 123,338 Nonresidential 1,022,670 — — 1,022,670 47,946,038 48,968,708 — — Other loans: Commercial — — — — 4,604,087 4,604,087 — — Consumer 1,062 — — 1,062 575,944 577,006 — — Total loans $ 1,045,331 $ 104,439 $ 828,593 $ 1,978,363 $ 138,236,853 $ 140,215,216 $ — $ 877,681 At September 30, 2018 and December 31, 2017 there were no loans 90 days past due and still accruing interest. At September 30, 2018, the Bank had thirteen loans on non-accrual non-accrual The Bank accounts for impaired loans under generally accepted accounting principles. An impaired loan generally is one for which it is probable, based on current information, that the lender will not collect all the amounts due under the contractual terms of the loan. Loans are individually evaluated for impairment. When the Bank classifies a problem asset as impaired, it provides a specific reserve for that portion of the asset that is deemed uncollectible based on the present value of expected future cash flows discounted at the loan’s original effective interest rate, or based on the loan’s observable market price or fair value of the collateral if the loan is collateral dependent. The following table is a summary of impaired loans for the three and nine months ended September 30, 2018 and 2017 and the year ended and December 31, 2017: Impaired Loans at September 30, 2018 Three Months Ended Nine Months Ended Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: One-to $ 726,891 $ 785,890 $ — $ 758,508 $ 4,212 $ 794,549 $ 24,943 Home equity loans and lines of credit 96,978 96,978 — 97,098 258 99,646 2,582 Construction and land development 123,338 123,338 — 123,338 — 123,338 — With an allowance recorded: Home equity loans and lines of credit $ 45,869 $ 45,869 $ 1,178 $ 46,823 $ 493 $ 47,479 $ 2,182 Construction and land development 87,477 87,477 7,267 87,551 356 87,916 2,145 Consumer 5,901 5,901 5,901 5,952 82 6,089 280 Total One-to $ 726,891 $ 785,890 $ — $ 758,508 $ 4,212 $ 794,549 $ 24,943 Home equity loans and lines of credit 142,847 142,847 1,178 143,921 751 147,125 4,764 Construction and land development 210,815 210,815 7,267 210,889 356 211,254 2,145 Consumer 5,901 5,901 5,901 5,952 82 6,089 280 Impaired Loans at September 30, 2017 Three Months Ended Nine Months Ended Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: One-to $ 422,607 $ 422,607 $ — $ 423,220 $ 1,039 $ 424,711 $ 8,789 Home equity loans and lines of credit 16,790 16,790 — 17,060 293 17,563 953 Construction and land development 1,223,338 1,884,377 — 1,552,095 — 1,714,854 23,117 With an allowance recorded: One-to $ 336,107 $ 336,107 $ 66,533 $ 336,901 $ 3,231 $ 338,462 $ 9,744 Home equity loans and lines of credit 50,451 50,451 2,134 51,806 941 53,493 2,728 Consumer 6,438 6,438 6,438 6,493 82 6,697 403 Total One-to $ 758,714 $ 758,714 $ 66,533 $ 760,121 $ 4,270 $ 763,173 18,533 Home equity loans and lines of credit 67,241 67,241 2,134 68,866 1,234 71,056 3,681 Construction and land development 1,233,338 1,884,377 — 1,552,095 — 1,714,854 23,117 Consumer 6,438 6,438 6,438 6,493 82 6,697 403 December 31, 2017 Recorded Unpaid Related Average Interest With no related allowance recorded: One-to $ 524,625 $ 524,625 $ — $ 530,533 $ 14,018 Construction and land development 123,338 123,338 — 116,714 2,503 With an allowance recorded: One-to $ 180,630 $ 180,630 $ 58,542 $ 182,471 $ 5,153 Home equity loans and lines of credit 69,334 69,334 21,899 73,734 4,742 Consumer 6,277 6,277 6,277 6,646 484 Total One-to $ 705,255 $ 705,255 $ 58,542 $ 713,004 $ 19,171 Home equity loans and lines of credit 69,334 69,334 21,899 73,734 4,742 Construction and land development 123,338 123,338 — 116,714 2,503 Consumer 6,277 6,277 6,277 6,646 484 Impaired loans also include certain loans that have been modified in a troubled debt restructuring (a “TDR”) to make concessions to help a borrower remain current on the loan and/or to avoid foreclosure. These concessions typically result from the Bank’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Generally nonaccrual loans that are modified and are considered TDRs are classified as nonperforming at the time of the restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. A summary of TDRs at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Number of Performing Nonperforming Total One-to 1 $ — $ 120,380 $ 120,380 Home equity loans and lines of credit 1 45,869 — 45,869 Construction and land development — — — — Nonresidential — — — — Commercial — — — — Consumer — — — — 2 $ 45,869 $ 120,380 $ 166,249 December 31, 2017 Number of Performing Nonperforming Total One-to 1 $ — $ 180,630 $ 180,630 Home equity loans and lines of credit 1 — 49,088 49,088 Construction and land development — — — — Nonresidential — — — — Commercial — — — — Consumer — — — — 2 $ — $ 229,718 $ 229,718 The Bank had two TDRs at September 30, 2018 totaling $166,249 and two TDRs at December 31, 2017 totaling $229,718. For the nine months ended September 30, 2018, one TDR was written down by $58,000 to the current fair market value of the underlying collateral. For the year ended December 31, 2017, two restructured loans paid in full and the Bank identified an additional loan as a TDR. This loan was restructured with both an extension of the original term by five years and a rate modification to reduce the interest rate on the remaining balance of the loan. There were no principal reductions or forgiveness of principal for the loans that were restructured. The Bank has no commitments to loan additional funds to borrowers whose loans have been modified. There were no nonperforming TDRs reclassified to nonperforming loans during the nine months ended September 30, 2018 and September 30, 2017. During 2017, a previously performing one-to If loans modified in a TDR subsequently default, the Bank evaluates the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. |
Foreclosed Real Estate
Foreclosed Real Estate | 9 Months Ended |
Sep. 30, 2018 | |
Foreclosed Real Estate | Note 5. Foreclosed Real Estate At both September 30, 2018 and December 31, 2017, the Bank had $865,000 in foreclosed real estate. The Bank did not dispose of any foreclosed real estate during the nine months ended September 30, 2018. The Bank disposed of foreclosed real estate during the nine months ended September 30, 2017 and the twelve months ended December 31, 2017 in the amount of $382,148 and recorded a gain on the transactions of $22,548. The following table summarizes changes in foreclosed real estate for the nine months ended September 30, 2018 and 2017 and for the year ended December 31, 2017, which are measured on a nonrecurring basis using significant unobservable, Level 3, inputs: September 30, December 31, 2018 2017 2017 Balance, beginning of period $ 865,000 $ 1,439,600 $ 1,439,600 Transfer to foreclosed real estate — — — Proceeds from sale of foreclosed real estate — (382,148 ) (382,148 ) Gain (loss) on sale of foreclosed real estate — 22,548 22,548 Write-down of foreclosed real estate — — (215,000 ) Balance, end of period $ 865,000 $ 1,080,000 $ 865,000 At September 30, 2018 there were two residential real estate loans totaling $185,262 in the process of foreclosure. At December 31, 2017 there were three residential first lien loans totaling $271,482 and one construction and land development lien in the amount of $123,338 in the process of foreclosure. At September 30, 2018 and December 31, 2017, there were no residential real estate properties included in foreclosed real estate. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Deposits | Note 6. Deposits Deposits are summarized as follows: September 30, December 31, 2018 2017 Noninterest-bearing demand $ 18,440,675 $ 16,465,761 Interest-bearing demand 23,602,914 25,178,229 Money market 12,030,817 13,500,742 Savings 24,662,111 24,605,557 Certificates of deposit 76,940,408 75,036,115 Total deposits $ 155,676,925 $ 154,786,404 Deposit accounts in the Bank are federally insured up to $250,000 per depositor. The aggregate amount of time deposits with balances of $250,000 or more totaled $11,915,760 and $9,639,403 at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018 and December 31, 2017, certificates of deposit and their remaining maturities were as follows: September 30, 2019 $ 31,354,483 2020 16,108,011 2021 14,008,759 2022 7,101,711 2023 8,367,444 $ 76,940,408 December 31, 2018 $ 29,502,622 2019 20,665,546 2020 10,756,925 2021 7,574,830 2022 6,536,192 $ 75,036,115 Deposit balances of officers and directors totaled $531,523 and $788,500 at September 30, 2018 and December 31, 2017, respectively. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Borrowings | Note 7. Borrowings The Bank has an agreement with the Federal Home Loan Bank of Atlanta (“FHLB”) that allows it to obtain advances secured by assets owned by the Bank. Total advances are limited to 25% of the Bank’s total assets. As of September 30, 2018 and December 31, 2017, the Bank had availability of $46,000,000 and $45,400,000, respectively, with FHLB. As of September 30, 2018 and December 31, 2017, the Bank pledged a portion of its one-to The Bank also has a $2,000,000 secured federal funds line of credit available with another financial institution, for which no amounts were outstanding as of September 30, 2018 and December 31, 2017. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2018 | |
Employee Stock Ownership Plan | Note 8. Employee Stock Ownership Plan In connection with the Bank’s mutual to stock conversion in September 2018, the Bank established the Chesapeake Bank of Maryland Employee Stock Ownership Plan (“ESOP”) for all eligible employees. The ESOP purchased 338,560 shares of Company common stock in the Company’s initial public offering at $10.00 per share with the proceeds of a ten (10) year loan from the Company. The Bank expects to make annual contributions to the ESOP equal to the principal and interest, due on the loan. However, the Bank may prepay the principal of the note, partially or in full and without penalty or premium at any time and from time to time without prior notice to the holder. Any dividends declared on Company common stock held by the ESOP and not allocated to the account of a participant can be used to repay the loan. As the ESOP loan is repaid, shares of Company common stock pledged as collateral for the loan are released from the loan suspense account for allocation to Plan participants on the basis of each active participant’s proportional share of compensation. Participants vest 100% in their ESOP allocations after three years of service. In connection with the implementation of the ESOP, participants were given credit for past service with the Bank for vesting purposes. Participants will become fully vested upon age 65, death or disability, a change in control, or termination of the ESOP. Generally, participants will receive distributions from the ESOP upon separation from service. The plan reallocates any unvested shares of common stock forfeited upon termination of employment among the remaining participants in the plan. The ESOP compensation expense for the three and nine months ended September 30, 2018 and 2017 was $15,000 and $0, respectively. This amount represents the average fair market value of the shares of Company common stock allocated or committed to be released as of that date. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Common Share | Note 9. Earnings Per Common Share Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Net income available to common stockholders is net income to the Company. Unallocated common shares held by the ESOP are not included in the weighted average number of common shares outstanding for purposes of calculating earnings per share until they are committed to be released. The Company has no dilutive potential common shares for the three and nine months ended September 30, 2018. Because the mutual to stock conversion was not completed until September 2018, the earnings per share data are not presented for the three and nine months ended September 30, 2017. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Net income $ 324,212 $ 796,828 Weighted average common shares outstanding 3,893,440 3,893,440 Earnings per common share, basic and diluted $ 0.33 $ 0.27 |
Regulatory Capital Requirements
Regulatory Capital Requirements | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Capital Requirements | Note 10. Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by Federal banking agenices. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s consolidated financial statements. These capital requirements were modified in 2013 with the Basel III capital rules, which establish a new comprehensive capital framework for U.S. banking organizations. The Bank became subject to the new rules on January 1, 2015, with a phase-in off-balance Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of Common Equity Tier 1 Capital, Tier 1 Capital, and Total Capital to Risk Weighted Assets and of Tier 1 Capital to Average Assets. Management believes, as of September 30, 2018 and December 31, 2017, all applicable capital adequacy requirements have been met. The most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based capital, Tier 1 capital to risk-weighted assets, and Tier 1 capital to adjusted total assets, ratios. There have been no conditions or events since that notification that management believes have changed the Bank’s category. The actual and required capital amounts and ratios of the Bank as of September 30, 2018 and December 31, 2017 were as follows (dollars in thousands): Actual Minimum Regulatory To Be Well Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2018: Common equity tier 1 capital (to risk-weighted assets) $ 39,545 30.02 % $ 8,396 >6.375 % $ 8,561 > 6.5 % Total risk-based capital (to risk-weighted assets) 40,771 30.96 % 13,006 >9.875 % 13,171 >10.0 % Tier 1 capital (to risk-weighted assets) 39,545 30.02 % 10,372 >7.875 % 10,537 >8.0 % Tier 1 capital (to average assets) 39,545 20.20 % 7,831 >4.000 % 9,789 >5.0 % As of December 31, 2017: Common equity tier 1 capital (to risk-weighted assets) $ 21,348 16.64 % $ 7,376 >5.750 % $ 8,338 >6.5 % Total risk-based capital (to risk-weighted assets) 22,421 17.48 % 11,866 >9.250 % 12,828 >10.0 % Tier 1 capital (to risk-weighted assets) 21,348 16.64 % 9,300 >7.250 % 10,263 >8.0 % Tier 1 capital (to average assets) 21,348 11.94 % 7,150 >4.000 % 8,937 >5.0 % |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | Note 11. Fair Value Measurements ASC Topic 820 provides a framework for measuring and disclosing fair value under GAAP. ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Bank utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available-for-sale ASC Topic 820 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy is as follows: Level 1 Level 2 Level 3 The following is a description of the valuation methods used for instruments measured at fair value as the general classification of such instruments pursuant to the applicable valuation method. Fair value measurements on a recurring basis Securities available for sale Level 1 Level 2 Level 3 Total September 30, 2018 Securities available for sale: U.S. Government Agency and Federal Obligations $ — $ 5,325,085 $ — $ 5,325,085 Municipal Securities — 1,459,545 — 1,459,545 December 31, 2017 Securities available for sale: U.S. Government Agency and Federal Obligations $ — $ 5,423,993 $ — $ 5,423,993 Municipal Securities — 1,499,675 — 1,499,675 Fair value measurements on a nonrecurring basis Loans held for sale Impaired loans Foreclosed real estate Level 1 Level 2 Level 3 Total September 30, 2018 Impaired loans — — $ 1,072,108 $ 1,072,108 Foreclosed real estate — — 865,000 865,000 December 31, 2017 Impaired loans — — $ 817,486 $ 817,486 Foreclosed real estate — — 865,000 865,000 The following table presents quantitative information about Level 3 fair value measurements for selected financial instruments measured at fair value on a non-recurring Fair Value Value Technique(s) Unobservable Inputs Range or Rate September 30, 2018 Impaired loans $ 1,072,108 Appraised value Discount to reflect current market conditions 0.00%-8.31 % Discounted cash flows Discount rates 2.57 % Foreclosed real estate $ 865,000 Appraised value Discount to reflect current market conditions 27.92 % December 31, 2017 Impaired loans $ 817,486 Appraised value Discount to reflect current market conditions 0.00%-32.41 % Discounted cash flows Discount rates 3.37 % Foreclosed real estate 865,000 Appraised value Discount to reflect current market conditions 27.92 % The remaining financial assets and liabilities are not reported on the balance sheet at fair value on a recurring basis. The calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values. The estimated fair values of the Bank’s financial instruments, whether carried at cost or fair value are as follows: Fair Value Measurements at September 30, 2018 Using Carrying Value Quoted (Level 1) Significant (Level 2) Significant (Level 3) Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents $ 50,694 $ 50,694 $ — $ — $ 50,694 Time deposits in other banks 3,968 — 3,916 — 3,916 Securities available for sale 6,785 — 6,785 — 6,785 Securities held to maturity 2,846 — 2,924 — 2,924 Federal Home Loan Bank stock 245 — 245 — 245 Loans held for sale 423 — 423 — 423 Loans, net (1) 143,268 — — 139,976 139,976 Foreclosed real estate 865 — — 865 865 Accrued interest receivable 584 — 584 — 584 Financial liabilities: Deposits 155,677 — 137,524 — 137,524 Off-Balance — — — — — (1) Carrying amount is net of unearned income and the allowance for loan losses. In accordance with the prospective adoption of ASU No. 2016-01, Fair Value Measurements at December 31, 2017 Using Carrying Value Quoted (Level 1) Significant (Level 2) Significant (Level 3) Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents $ 12,030 $ 12,030 $ — $ — $ 12,030 Time deposits in other banks 4,960 — 4,927 — 4,927 Securities available for sale 6,924 — 6,924 — 6,924 Securities held to maturity 3,323 — 3,507 — 3,507 Federal Home Loan Bank stock 242 — 242 — 242 Loans held for sale 1,218 — 1,218 — 1,218 Loans, net (1) 139,047 — — 143,470 143,470 Foreclosed real estate 865 — — 865 865 Accrued interest receivable 527 — 527 — 527 Financial liabilities: Deposits 154,787 — 140,251 — 140,251 Off-Balance — — — — — (1) Carrying amount is net of unearned income and the allowance for loan losses. The fair value of loans was measured using an entry price notion. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation | Basis of Presentation Pursuant to the terms and conditions of a plan of conversion and reorganization, adopted by its Board of Directors and approved by its members, Banks of the Chesapeake, M.H.C. converted from the mutual holding company corporate structure to the public stock holding company structure as follows: CBM Bancorp, Inc. (“CBM Bancorp” or “Company”) was incorporated on May 22, 2018 to serve as the successor holding company for Chesapeake Bank of Maryland (“Bank”), which was at that time the wholly owned subsidiary of Banks of the Chesapeake, M.H.C. On September 27, 2018, in accordance with the plan of conversion and reorganization, CBM Bancorp became the parent holding company for the Bank and Banks of the Chesapeake, M.H.C. merged with and into CBM Bancorp, with the Company as the surviving corporation. Upon consummation of the merger, Banks of the Chesapeake, M.H.C. ceased to exist. The conversion and reorganization was accomplished through the sale and issuance of 4,232,000 shares of common stock at a price of $10.00 per share, through which the Company received proceeds of approximately $41.3 million, net of offering expenses, year to date, of approximately $1.1 million. Approximately 50% of the net proceeds of the offering, or $20.5 million was contributed by the Company to the Bank in return for 100% of the issued and outstanding shares of common stock of the Bank. In connection with the conversion and reorganization, the Bank’s Board of Directors adopted an employee stock ownership plan (the “ESOP”) which subscribed for 8% of the sum of the number of shares, or 338,560 shares of common stock sold in the offering. The plan of conversion and reorganization provided for the establishment of a liquidation account by CBM Bancorp for the benefit of eligible account holders in an amount equal to the value of the net assets of Banks of the Chesapeake, M.H.C. as of the date of the latest statement of financial condition of Banks of the Chesapeake, M.H.C. prior to the consummation of the conversion and reorganization. The plan of conversion and reorganization also provided for the establishment of a parallel liquidation account in the Bank to support the CBM Bancorp liquidation account in the event CBM Bancorp does not have sufficient assets to fund its obligations under the CBM Bancorp liquidation account. In the unlikely event that the Bank were to liquidate after the conversion and reorganization, all claims of creditors, including those of depositors, would be paid first. However, except with respect to the liquidation account to be established in CBM Bancorp, depositors’ claims would be solely for the principal amount of their deposit accounts plus accrued interest. Depositors generally would not have an interest in the value of the assets of the Bank or CBM Bancorp above that amount. Pursuant to the plan of conversion and reorganization, after two years from the date of conversion and reorganization, and upon the written request of the Federal Reserve Board, CBM Bancorp will transfer, or upon the prior written approval of the Federal Reserve Board, CBM Bancorp may transfer, the liquidation account and the depositors’ interests in such account to the Bank, and the liquidation account shall thereupon be subsumed into the liquidation account of the Bank. Following the completion of the conversion and reorganization, the Company may not pay a dividend on, or repurchase any of, it capital stock, if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements. In addition, the Company will be subject to certain other regulations restricting the payment of dividends on, and the repurchase of, its capital stock. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q S-X |
Nature of Operations | Nature of Operations CBM Bancorp, Inc.’s primary business is the ownership and operation of the Bank, a community-oriented federal stock savings bank regulated by the Office of the Comptroller of the Currency. The Bank’s primary business activity is the acceptance of deposits from the general public and using the proceeds for loan originations and investments. The Bank is subject to competition from other financial institutions. The Bank is subject to the regulations of certain federal agencies and undergoes periodic examinations by the regulatory authorities. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of CBM Bancorp, Inc. and the Bank, its wholly owned subsidiary. Material intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and the valuation of deferred tax assets. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, interest-bearing deposits in other banks and federal funds sold. Generally federal funds are sold as overnight investments. |
Time Deposits in Other Banks | Time Deposits in Other Banks The Bank uses financial instruments to supplement the investment securities portfolio. Interest income is recognized as earned. Purchase premiums and discounts are recognized as part of interest income using the interest method over the terms of the investments. Realized gains and losses on the sale of time deposits in other banks are included in earnings based on the trade date and are determined using the specific identification method. Time deposits in other banks are not marked to market. |
Investment Securities | Investment Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates Securities classified as available for sale are carried at fair value and are those securities that the Bank intends to hold for an indefinite period of time but not necessarily to maturity. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Realized gains and losses, determined on the basis of the cost of the specific securities sold, are included in earnings on a trade date basis. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the terms of the securities. Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary, if any, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (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 of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank of Atlanta (“FHLB”) stock is an equity interest in the FHLB, which does not have a readily determinable fair value for purposes of Generally Accepted Accounting Standards related to Accounting for Certain Investments in Debt and Equity Securities, |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value. Fair value is derived from secondary market quotations for similar instruments. Gains and losses on loan sales are recorded in non-interest non-interest The Bank enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. The period of time between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 90 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the investor commits to purchase a loan at a price representing a premium on the day the borrower commits to an interest rate with the intent that they buyer/investor has assumed the interest rate risk on the loan. As a result, the Bank is not generally exposed to losses on loans sold utilizing best efforts, nor will it realize gains related to rate lock commitments due to changes in interest rates. Loans held for sale that are not ultimately sold, but instead are placed into the Bank’s portfolio, are reclassified as loans held for investment and recorded at fair value. |
Loans | Loans Loans are generally carried at the amount of unpaid principal, less the allowance for loan losses and adjusted for deferred loan origination fees and costs, which are recognized over the term of the loan as an adjustment to yield using a method that approximates the interest method. Interest on loans is accrued based on the principal amounts outstanding. It is the Bank’s policy to discontinue the accrual of interest when the principal or interest is delinquent for 90 days or more, or if collection of principal and interest in full is in doubt. A loan is considered impaired when, based on current information and events, it is probable that the Bank 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. Impairment is measured on a loan by loan basis 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. The carrying value of impaired loans is based on the present value of the loan’s expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. Impaired loans also include certain loans that have been modified in a troubled debt restructuring (“TDR”) to make concessions to help a borrower remain current on the loan and/or to avoid foreclosure. These concessions typically result from the Bank’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Generally nonaccrual loans that are modified and are considered TDRs are classified as nonperforming at the time of the restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to earnings. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The Bank maintains the allowance at a level believed, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. The evaluation process by portfolio segment includes, among other things, an analysis of delinquency trends, non-performing The establishment of the allowance for loan losses is significantly affected by management’s judgment and uncertainties, and there is likelihood that different amounts would be reported under different conditions or assumptions. The Office of the Comptroller of the Currency as an integral part of its examination process periodically reviews the allowance for loan losses and may require the Bank to make additional provisions for estimated loan losses based upon judgments different from those of management. The Bank’s policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets (or portions of assets) classified as loss, are those considered uncollectible and of such little value that their recognition as assets is not justified. Assets that do not expose us to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve close attention, are required to be designated as special mention. While the Bank utilizes available information to recognize losses on loans, future additions to the allowances for loan losses may be necessary based on changes in economic conditions, particularly in its’ market area primarily in the state of Maryland. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Actual loan losses may be significantly more than the allowance for loan and lease losses the Bank has established, which could have a material negative effect on our consolidated financial statements. |
Bank-Owned Life Insurance ("BOLI") | Bank-Owned Life Insurance (“BOLI”) The Bank maintains life insurance policies on certain present and former directors. These policies are split-dollar or director insurance policies. Under the split-dollar insurance policies, the Bank pays the premiums and upon the death of the insured, the Bank will receive an amount equal to the premiums paid on the policy from the policy date to the date of death. Any remaining proceeds will be paid to the beneficiary. If the policy is surrendered before the date of death, the Bank will receive the lesser of the cash surrender value or the sum of the premiums paid on the policy from the policy date to the date of surrender. Under the director insurance policies, the Bank receives the cash surrender value if the policy is surrendered, or receives all benefits payable upon the death of the insured. As of September 30, 2018 and December 31, 2017, $133,097 and $162,946, respectively, was included in other liabilities related to the split-dollar insurance policies. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over estimated useful lives of assets. Amortization of leasehold improvements is recognized on a straight-line basis over the term of the lease or the life of the improvement, whichever is shorter. The cost of maintenance and repairs is charged to expense as incurred whereas improvements are capitalized. The range of estimated useful lives for premises and equipment are as follows: Buildings and land improvements 5 - 50 years Leasehold improvements 10 - 15 years Furniture, fixtures and equipment 3 – 10 years Automobile 5 years |
Foreclosed Real Estate | Foreclosed Real Estate Real estate acquired through foreclosure or other means is recorded at the fair value of the related real estate collateral at the transfer date less estimated selling costs. Losses incurred at the time of the acquisition of the property are charged to the allowance for loan losses. Subsequent reductions in the estimated fair value of the property are included in noninterest expense. Costs to maintain foreclosed real estate are expensed as incurred. |
Income Taxes | Income Taxes The provision for income taxes includes taxes payable for the current year and deferred income taxes. Deferred income taxes are provided for the temporary differences between financial and taxable income. Deferred income taxes and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted through earnings for the effects of changes in tax laws and rates on the date of enactment. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Weighted average shares exclude unallocated ESOP shares. Diluted earnings per share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. |
Off-Balance Sheet Financial Instruments | Off-Balance In the ordinary course of business, the Bank has entered into off-balance The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amount of these instruments. The Bank uses the same credit policies for these instruments as it does for the on-balance |
Deferred Compensation Arrangements | Deferred Compensation Arrangements The Bank has deferred compensation agreements with former directors and officers. Under the agreements, participants will be paid deferred compensation funded in part by the proceeds in excess of the cash surrender value of life insurance policies. The Bank’s index retirement benefit plan was converted to a supplemental retirement plan which pays equal annual installments to the plan participants upon retirement. Participants are entitled to receive their retirement benefits commencing thirty days following their normal retirement date. The Bank has a compensation deferral plan whereby directors are able to elect to defer fees and compensation covered by the plan. Participants are eligible to receive the balance of their pre-retirement |
Supplemental Executive Retirement Plan | Supplemental Executive Retirement Plan The Bank has a Supplemental Executive Retirement Plan (“SERP”), which provides supplemental retirement benefits to the Chief Executive Officer of the Bank. The SERP provides for annual payments of $30,000 for ten years upon reaching retirement age of 65. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Bank had approximately $1,047,000 and approximately $137,000 in deposits in other financial institutions in excess of amounts insured by the FDIC, as of September 30, 2018 and December 31, 2017, respectively. The Bank’s management considers this a normal business risk. The Bank also maintains accounts with brokerage firms containing securities. These balances are insured up to $500,000 by the Securities Investor Protection Corporation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU - Revenue from Contracts with Customers (Topic ). ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) ASU No. 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Liabilities. No. 2016-01 ASU 2016-02, ASU 2016-13, off-balance ASU 2016-15 Statement of Cash Flows (Topic 230). 2016-15 ASU 2017-08, 310-20) non-pooled ASU 2017-08 ASU 2017-08 ASU 2017-08 ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): No. 2018-02 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Range of Estimated Useful Lives for Premises and Equipment | charged to expense as incurred whereas improvements are capitalized. The range of estimated useful lives for premises and equipment are as follows: Buildings and land improvements 5 - 50 years Leasehold improvements 10 - 15 years Furniture, fixtures and equipment 3 – 10 years Automobile 5 years |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Amortized Cost and Estimated Fair Value of Securities Classified as Available for Sale and Held to Maturity | The amortized cost and estimated fair value of securities classified as available for sale and held to maturity at September 30, 2018 and December 31, 2017, are as follows: September 30, 2018 Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Government and Federal Agency obligations $ 5,460,450 $ — $ 135,365 $ 5,325,085 Municipal securities 1,506,296 — 46,751 1,459,545 $ 6,966,746 $ — $ 182,116 $ 6,784,630 Securities Held to Maturity Residential mortgage-backed securities $ 2,846,292 $ 78,940 $ 1,300 $ 2,923,932 December 31, 2017 Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Government and Federal Agency obligations $ 5,498,783 $ — $ 74,790 $ 5,423,993 Municipal securities 1,507,225 12 7,562 1,499,675 $ 7,006,008 $ 12 $ 82,352 $ 6,923,668 Securities Held to Maturity Residential mortgage-backed securities $ 3,323,446 $ 183,124 $ — $ 3,506,570 |
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | The amortized cost and estimated fair value of securities as of September 30, 2018 and December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 Securities Available for Sale Securities Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 1,000,000 $ 985,604 $ — $ — Due after one year through five years 5,463,616 5,311,386 — — Due five years to ten years 503,130 487,640 — — Due after ten years — — — — Mortgage-backed, in monthly installments — — 2,846,292 2,923,932 $ 6,966,746 $ 6,784,630 $ 2,846,292 $ 2,923,932 December 31, 2017 Securities Available for Sale Securities Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 1,000,000 $ 995,925 $ — $ — Due after one year through five years 5,502,565 5,424,288 — — Due five years to ten years 503,443 503,455 — — Due after ten years — — — — Mortgage-backed, in monthly installments — — 3,323,446 3,506,570 $ 7,006,008 $ 6,923,668 $ 3,323,446 $ 3,506,570 |
Securities with Gross Unrealized Losses | Securities with gross unrealized losses at September 30, 2018 and December 31, 2017 aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: September 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Securities Available for Sale U.S. Government and Federal Agency obligations $ 954,363 $ 7,100 $ 4,370,722 $ 128,265 $ 5,325,085 $ 135,365 Municipal obligations 1,459,545 46,751 — — 1,459,545 46,751 $ 2,413,908 $ 53,851 $ 4,370,722 $ 128,265 $ 6,784,630 $ 182,116 Securities Held to Maturity Residential mortgage-backed securities $ 449,754 $ 1,300 $ — $ — $ 449,754 $ 1,300 December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Securities Available for Sale U.S. Government and Federal Agency obligations $ 1,485,930 $ 12,853 $ 3,938,063 $ 61,937 $ 5,423,993 $ 74,790 Municipal obligations 996,220 7,562 — — 996,220 7,562 $ 2,482,150 $ 20,415 $ 3,938,063 $ 61,937 $ 6,420,213 $ 82,352 Securities Held to Maturity Residential mortgage-backed securities $ — $ — $ — $ — $ — $ — |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Principal Loan Portfolio Segment | The principal loan portfolio segment balances at September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2018 2017 Real estate loans One-to $ 69,301,180 $ 67,192,415 Home equity loans and lines of credit 8,072,429 9,539,606 Construction and land development 9,990,514 9,333,394 Nonresidential 51,438,876 48,968,708 Total real estate loans 138,802,999 135,034,123 Other loans Commercial 5,296,630 4,604,087 Consumer 528,669 577,006 Total other loans 5,825,299 5,181,093 Total loans 144,628,298 140,215,216 Net deferred loan origination fees and costs (169,574 ) (129,745 ) Allowance for loan losses (1,191,267 ) (1,038,405 ) Total loans, net $ 143,267,457 $ 139,047,066 |
Credit Quality of Loans and t_2
Credit Quality of Loans and the Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Allowance for Loan Losses and Loans Receivable by Loan Portfolio Class and Impairment Method | The following tables summarize the activity in the allowance for losses for the three and nine months ended September 30, 2018 and 2017 and for the year ended December 31, 2017 and the distribution of the allowance for loan losses and loans receivable by loan portfolio class and impairment method as of September 30, 2018, September 30, 2017 and December 31, 2017. As of September 30, 2018 One –to Four-Family Home Equity of Credit Construction and Land Nonresidential Commercial Consumer Unallocated Total Allowance for loans losses: Beginning Balance - July 1, 2018 $ 202,457 $ 70,328 $ 171,304 $ 591,189 $ 30,137 $ 16,801 $ 34,051 $ 1,116,267 Charge-offs — — — — — — — — Recoveries — — — — — — — — Provision 37,553 (22,155 ) 37,955 4,724 (1,006 ) (79 ) 18,008 75,000 Ending Balance - September 30, 2018 $ 240,010 $ 48,173 $ 209,259 $ 595,913 $ 29,131 $ 16,722 $ 52,059 $ 1,191,267 Beginning Balance - January 1, 2018 $ 238,148 $ 83,129 $ 173,167 $ 446,576 $ 44,199 $ 15,933 $ 37,253 $ 1,038,405 Charge-offs (88,000 ) — — — — — — (88,000 ) Recoveries 7,563 — 8,299 — — — — 15,862 Provision 82,299 (34,956 ) 27,793 149,337 (15,068 ) 789 14,806 225,000 Ending Balance - September 30, 2018 $ 240,010 $ 48,173 $ 209,259 $ 595,913 $ 29,131 $ 16,722 $ 52,059 $ 1,191,267 Ending balance: individually evaluated for impairment $ — $ 1,178 $ 7,267 $ — $ — $ 5,901 $ — $ 14,346 Ending balance: collectively evaluated for impairment $ 240,010 $ 46,995 $ 201,992 $ 595,913 $ 29,131 $ 10,821 $ 52,059 $ 1,176,921 Loans: Ending balance $ 69,301,180 $ 8,072,429 $ 9,990,514 $ 51,438,876 $ 5,296,630 $ 528,669 $ 144,628,298 Ending balance: individually evaluated for impairment $ 726,891 $ 142,847 $ 210,815 $ — $ — $ 5,901 $ 1,086,454 Ending balance: collectively evaluated for impairment $ 68,574,289 $ 7,929,582 $ 9,779,699 $ 51,438,876 $ 5,296,630 $ 522,768 $ 143,541,844 As of September 30, 2017 One –to Four-Family Home Equity Construction and Land Nonresidential Commercial Consumer Unallocated Total Allowance for loans losses: Beginning Balance - July 1, 2017 $ 126,856 $ 77,641 $ 536,051 $ 226,273 $ 73,006 $ 13,990 $ 2,201 $ 1,056,018 Charge-offs (19,471 ) — (651,039 ) — — (1,697 ) — (672,207 ) Recoveries — — — — — 150 — 150 Provision 119,071 (7,542 ) 317,977 59,022 (13,320 ) 5,559 44,233 525,000 Ending Balance - September 30, 2017 $ 226,456 $ 70,099 $ 202,989 $ 285,295 $ 59,686 $ 18,002 $ 46,434 $ 908,961 Beginning Balance - January 1, 2017 $ 74,483 $ 90,868 $ 308,507 $ 100,112 $ 55,066 $ 12,955 $ 39,375 $ 681,366 Charge-offs (19,471 ) — (651,039 ) — — (2,195 ) — (672,705 ) Recoveries — — — — — 300 — 300 Provision 171,444 (20,769 ) 545,521 185,183 4,620 6,942 7,059 900,000 Ending Balance - September 30, 2017 $ 226,456 $ 70,099 $ 202,989 $ 285,295 $ 59,686 $ 18,002 $ 46,434 $ 908,961 Ending balance: individually evaluated for impairment $ 66,533 $ 2,134 $ — $ — $ — $ 6,438 $ — $ 75,105 Ending balance: collectively evaluated for impairment $ 159,923 $ 67,965 $ 202,989 $ 285,295 $ 59,686 $ 11,564 $ 46,434 $ 833,856 Loans: Ending balance $ 69,026,545 $ 9,841,296 $ 10,730,305 $ 48,187,130 $ 4,521,640 $ 587,520 $ 142,894,436 Ending balance: individually evaluated for impairment $ 758,714 $ 67,241 $ 1,233,338 $ — $ — $ 6,438 $ 2,065,731 Ending balance: collectively evaluated for impairment $ 68,267,831 $ 9,774,055 $ 9,496,967 $ 48,187,130 $ 4,521,640 $ 581,082 $ 140,828,705 As of December 31, 2017 One –to Four-Family Home Equity Construction and Land Nonresidential Commercial Consumer Unallocated Total Beginning Balance $ 74,483 $ 90,868 $ 308,507 $ 100,112 $ 55,066 $ 12,955 $ 39,375 $ 681,366 Charge-offs (19,471 ) — (656,403 ) — — (2,195 ) — (678,069 ) Recoveries 6,508 — — — — 3,600 — 10,108 Provision 176,628 (7,739 ) 521,063 346,464 (10,867 ) 1,573 (2,122 ) 1,025,000 Ending Balance $ 238,148 $ 83,129 $ 173,167 $ 446,576 $ 44,199 $ 15,933 $ 37,253 $ 1,038,405 Ending balance: individually evaluated for impairment $ 58,542 $ 21,899 $ — $ — $ — $ 6,277 $ — $ 86,718 Ending balance: collectively evaluated for impairment $ 179,606 $ 61,230 $ 173,167 $ 446,576 $ 44,199 $ 9,656 $ 37,253 $ 951,687 Loans: Ending balance $ 67,192,415 $ 9,539,606 $ 9,333,394 $ 48,968,708 $ 4,604,087 $ 577,006 $ 140,215,216 Ending balance: individually evaluated for impairment $ 705,255 $ 69,334 $ 123,338 $ — $ — $ 6,277 $ 904,204 Ending balance: collectively evaluated for impairment $ 66,487,160 $ 9,470,272 $ 9,210,056 $ 48,968,708 $ 4,604,087 $ 570,729 $ 139,311,012 |
Summary of Loan Portfolio Quality Indicators by Loan Class Recorded Investment | The following table is a summary of the loan portfolio quality indicators by loan class recorded investment as of September 30, 2018 and December 31, 2017: September 30, 2018 One-to Four-Family Home Equity Loans and Lines of Credit Construction Nonresidential Grade: Pass $ 68,574,289 $ 7,915,576 $ 8,963,824 $ 49,786,551 Special Mention — 59,875 815,875 1,652,325 Substandard 726,891 96,978 210,815 — Doubtful — — — — $ 69,301,180 $ 8,072,429 $ 9,990,514 $ 51,438,876 Commercial Consumer Totals Grade: Pass $ 5,296,630 $ 522,768 $ 141,059,638 Special Mention — — 2,528,075 Substandard — 5,901 1,040,585 Doubtful — — — $ 5,296,630 $ 528,669 $ 144,628,298 December 31, 2017 One-to Four-Family Home Equity Loans and Lines of Credit Construction Nonresidential Grade: Pass $ 66,478,078 $ 9,354,616 $ 8,329,593 $ 48,467,012 Special Mention 9,082 82,656 880,463 — Substandard 705,255 102,334 123,338 501,696 Doubtful — — — — $ 67,192,415 $ 9,539,606 $ 9,333,394 $ 48,968,708 Commercial Consumer Totals Grade: Pass $ 4,604,087 $ 569,667 $ 137,803,053 Special Mention — — 972,201 Substandard — 7,339 1,439,962 Doubtful — — — $ 4,604,087 $ 577,006 $ 140,215,216 |
Summary of Loan Portfolio Delinquencies | The following table sets forth certain information with respect to our loan portfolio delinquencies by loan class and amount as of September 30, 2018 and December 31, 2017: September 30, 2018 Loans 30-59 Loans 60-89 Days Loans 90 or More Days Past Due Total Past Current Loans Total Loans Recorded Nonaccrual Real estate loans: One-to $ 204,234 $ — $ 454,435 $ 658,669 $ 68,642,511 $ 69,301,180 $ — $ 726,891 Home equity loans and lines of credit — — 96,978 96,978 7,975,451 8,072,429 — 96,978 Construction and land development — — 210,815 210,815 9,779,699 9,990,514 — 210,815 Nonresidential 822,130 — — 822,130 50,616,746 51,438,876 — — Other loans: Commercial 209,907 — — 209,907 5,086,723 5,296,630 — — Consumer — 6,295 — 6,295 522,374 528,669 — — Total loans $ 1,236,271 $ 6,295 $ 762,228 $ 2,004,794 $ 142,623,504 $ 144,628,298 $ — $ 1,034,684 December 31, 2017 Loans 30-59 Loans 60-89 Days Loans 90 or More Days Past Due Total Past Current Loans Total Loans Recorded Nonaccrual Real estate loans: One-to $ 9,082 $ — $ 705,255 $ 714,337 $ 66,478,078 $ 67,192,415 $ — $ 705,255 Home equity loans and lines of credit 12,517 104,439 — 116,956 9,422,650 9,539,606 — 49,088 Construction and land development — — 123,338 123,338 9,210,056 9,333,394 — 123,338 Nonresidential 1,022,670 — — 1,022,670 47,946,038 48,968,708 — — Other loans: Commercial — — — — 4,604,087 4,604,087 — — Consumer 1,062 — — 1,062 575,944 577,006 — — Total loans $ 1,045,331 $ 104,439 $ 828,593 $ 1,978,363 $ 138,236,853 $ 140,215,216 $ — $ 877,681 |
Summary of Impaired Loans | The following table is a summary of impaired loans for the three and nine months ended September 30, 2018 and 2017 and the year ended and December 31, 2017: Impaired Loans at September 30, 2018 Three Months Ended Nine Months Ended Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: One-to $ 726,891 $ 785,890 $ — $ 758,508 $ 4,212 $ 794,549 $ 24,943 Home equity loans and lines of credit 96,978 96,978 — 97,098 258 99,646 2,582 Construction and land development 123,338 123,338 — 123,338 — 123,338 — With an allowance recorded: Home equity loans and lines of credit $ 45,869 $ 45,869 $ 1,178 $ 46,823 $ 493 $ 47,479 $ 2,182 Construction and land development 87,477 87,477 7,267 87,551 356 87,916 2,145 Consumer 5,901 5,901 5,901 5,952 82 6,089 280 Total One-to $ 726,891 $ 785,890 $ — $ 758,508 $ 4,212 $ 794,549 $ 24,943 Home equity loans and lines of credit 142,847 142,847 1,178 143,921 751 147,125 4,764 Construction and land development 210,815 210,815 7,267 210,889 356 211,254 2,145 Consumer 5,901 5,901 5,901 5,952 82 6,089 280 Impaired Loans at September 30, 2017 Three Months Ended Nine Months Ended Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: One-to $ 422,607 $ 422,607 $ — $ 423,220 $ 1,039 $ 424,711 $ 8,789 Home equity loans and lines of credit 16,790 16,790 — 17,060 293 17,563 953 Construction and land development 1,223,338 1,884,377 — 1,552,095 — 1,714,854 23,117 With an allowance recorded: One-to $ 336,107 $ 336,107 $ 66,533 $ 336,901 $ 3,231 $ 338,462 $ 9,744 Home equity loans and lines of credit 50,451 50,451 2,134 51,806 941 53,493 2,728 Consumer 6,438 6,438 6,438 6,493 82 6,697 403 Total One-to $ 758,714 $ 758,714 $ 66,533 $ 760,121 $ 4,270 $ 763,173 18,533 Home equity loans and lines of credit 67,241 67,241 2,134 68,866 1,234 71,056 3,681 Construction and land development 1,233,338 1,884,377 — 1,552,095 — 1,714,854 23,117 Consumer 6,438 6,438 6,438 6,493 82 6,697 403 December 31, 2017 Recorded Unpaid Related Average Interest With no related allowance recorded: One-to $ 524,625 $ 524,625 $ — $ 530,533 $ 14,018 Construction and land development 123,338 123,338 — 116,714 2,503 With an allowance recorded: One-to $ 180,630 $ 180,630 $ 58,542 $ 182,471 $ 5,153 Home equity loans and lines of credit 69,334 69,334 21,899 73,734 4,742 Consumer 6,277 6,277 6,277 6,646 484 Total One-to $ 705,255 $ 705,255 $ 58,542 $ 713,004 $ 19,171 Home equity loans and lines of credit 69,334 69,334 21,899 73,734 4,742 Construction and land development 123,338 123,338 — 116,714 2,503 Consumer 6,277 6,277 6,277 6,646 484 |
Summary of Troubled Debt Restructuring | A summary of TDRs at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Number of Performing Nonperforming Total One-to 1 $ — $ 120,380 $ 120,380 Home equity loans and lines of credit 1 45,869 — 45,869 Construction and land development — — — — Nonresidential — — — — Commercial — — — — Consumer — — — — 2 $ 45,869 $ 120,380 $ 166,249 December 31, 2017 Number of Performing Nonperforming Total One-to 1 $ — $ 180,630 $ 180,630 Home equity loans and lines of credit 1 — 49,088 49,088 Construction and land development — — — — Nonresidential — — — — Commercial — — — — Consumer — — — — 2 $ — $ 229,718 $ 229,718 |
Foreclosed Real Estate (Tables)
Foreclosed Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Changes in Foreclosed Real Estate | The following table summarizes changes in foreclosed real estate for the nine months ended September 30, 2018 and 2017 and for the year ended December 31, 2017, which are measured on a nonrecurring basis using significant unobservable, Level 3, inputs: September 30, December 31, 2018 2017 2017 Balance, beginning of period $ 865,000 $ 1,439,600 $ 1,439,600 Transfer to foreclosed real estate — — — Proceeds from sale of foreclosed real estate — (382,148 ) (382,148 ) Gain (loss) on sale of foreclosed real estate — 22,548 22,548 Write-down of foreclosed real estate — — (215,000 ) Balance, end of period $ 865,000 $ 1,080,000 $ 865,000 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Deposits | Deposits are summarized as follows: September 30, December 31, 2018 2017 Noninterest-bearing demand $ 18,440,675 $ 16,465,761 Interest-bearing demand 23,602,914 25,178,229 Money market 12,030,817 13,500,742 Savings 24,662,111 24,605,557 Certificates of deposit 76,940,408 75,036,115 Total deposits $ 155,676,925 $ 154,786,404 |
Schedule of Certificates of Deposit and Remaining Maturities | At September 30, 2018 and December 31, 2017, certificates of deposit and their remaining maturities were as follows: September 30, 2019 $ 31,354,483 2020 16,108,011 2021 14,008,759 2022 7,101,711 2023 8,367,444 $ 76,940,408 December 31, 2018 $ 29,502,622 2019 20,665,546 2020 10,756,925 2021 7,574,830 2022 6,536,192 $ 75,036,115 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Earnings Per Share | Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Net income $ 324,212 $ 796,828 Weighted average common shares outstanding 3,893,440 3,893,440 Earnings per common share, basic and diluted $ 0.33 $ 0.27 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Actual and Required Capital Amounts and Ratios of the Bank | The actual and required capital amounts and ratios of the Bank as of September 30, 2018 and December 31, 2017 were as follows (dollars in thousands): Actual Minimum Regulatory To Be Well Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2018: Common equity tier 1 capital (to risk-weighted assets) $ 39,545 30.02 % $ 8,396 >6.375 % $ 8,561 > 6.5 % Total risk-based capital (to risk-weighted assets) 40,771 30.96 % 13,006 >9.875 % 13,171 >10.0 % Tier 1 capital (to risk-weighted assets) 39,545 30.02 % 10,372 >7.875 % 10,537 >8.0 % Tier 1 capital (to average assets) 39,545 20.20 % 7,831 >4.000 % 9,789 >5.0 % As of December 31, 2017: Common equity tier 1 capital (to risk-weighted assets) $ 21,348 16.64 % $ 7,376 >5.750 % $ 8,338 >6.5 % Total risk-based capital (to risk-weighted assets) 22,421 17.48 % 11,866 >9.250 % 12,828 >10.0 % Tier 1 capital (to risk-weighted assets) 21,348 16.64 % 9,300 >7.250 % 10,263 >8.0 % Tier 1 capital (to average assets) 21,348 11.94 % 7,150 >4.000 % 8,937 >5.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Investment Securities Available for Sale | Fair value measurements on a recurring basis Securities available for sale Level 1 Level 2 Level 3 Total September 30, 2018 Securities available for sale: U.S. Government Agency and Federal Obligations $ — $ 5,325,085 $ — $ 5,325,085 Municipal Securities — 1,459,545 — 1,459,545 December 31, 2017 Securities available for sale: U.S. Government Agency and Federal Obligations $ — $ 5,423,993 $ — $ 5,423,993 Municipal Securities — 1,499,675 — 1,499,675 |
Schedule of Foreclosed Real Estate | The Bank has categorized its foreclosed real estate as Level 3. Level 1 Level 2 Level 3 Total September 30, 2018 Impaired loans — — $ 1,072,108 $ 1,072,108 Foreclosed real estate — — 865,000 865,000 December 31, 2017 Impaired loans — — $ 817,486 $ 817,486 Foreclosed real estate — — 865,000 865,000 |
Schedule of Financial Instruments Measured at Fair Value on Non-Recurring Basis | The following table presents quantitative information about Level 3 fair value measurements for selected financial instruments measured at fair value on a non-recurring Fair Value Value Technique(s) Unobservable Inputs Range or Rate September 30, 2018 Impaired loans $ 1,072,108 Appraised value Discount to reflect current market conditions 0.00%-8.31 % Discounted cash flows Discount rates 2.57 % Foreclosed real estate $ 865,000 Appraised value Discount to reflect current market conditions 27.92 % December 31, 2017 Impaired loans $ 817,486 Appraised value Discount to reflect current market conditions 0.00%-32.41 % Discounted cash flows Discount rates 3.37 % Foreclosed real estate 865,000 Appraised value Discount to reflect current market conditions 27.92 % |
Schedule of Estimated Fair Values of the Bank's Financial Instruments | The estimated fair values of the Bank’s financial instruments, whether carried at cost or fair value are as follows: Fair Value Measurements at September 30, 2018 Using Carrying Value Quoted (Level 1) Significant (Level 2) Significant (Level 3) Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents $ 50,694 $ 50,694 $ — $ — $ 50,694 Time deposits in other banks 3,968 — 3,916 — 3,916 Securities available for sale 6,785 — 6,785 — 6,785 Securities held to maturity 2,846 — 2,924 — 2,924 Federal Home Loan Bank stock 245 — 245 — 245 Loans held for sale 423 — 423 — 423 Loans, net (1) 143,268 — — 139,976 139,976 Foreclosed real estate 865 — — 865 865 Accrued interest receivable 584 — 584 — 584 Financial liabilities: Deposits 155,677 — 137,524 — 137,524 Off-Balance — — — — — (1) Carrying amount is net of unearned income and the allowance for loan losses. In accordance with the prospective adoption of ASU No. 2016-01, Fair Value Measurements at December 31, 2017 Using Carrying Value Quoted (Level 1) Significant (Level 2) Significant (Level 3) Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents $ 12,030 $ 12,030 $ — $ — $ 12,030 Time deposits in other banks 4,960 — 4,927 — 4,927 Securities available for sale 6,924 — 6,924 — 6,924 Securities held to maturity 3,323 — 3,507 — 3,507 Federal Home Loan Bank stock 242 — 242 — 242 Loans held for sale 1,218 — 1,218 — 1,218 Loans, net (1) 139,047 — — 143,470 143,470 Foreclosed real estate 865 — — 865 865 Accrued interest receivable 527 — 527 — 527 Financial liabilities: Deposits 154,787 — 140,251 — 140,251 Off-Balance — — — — — (1) Carrying amount is net of unearned income and the allowance for loan losses. The fair value of loans was measured using an entry price notion. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | Sep. 27, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($)Age$ / shares | Dec. 31, 2017USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Proceeds from sale and issuance of common stock | $ 41,262,521 | |||
Repurchase par value of common stock, per share | $ / shares | $ 100 | |||
Federal Home Loan Bank stock, at cost | $ 245,200 | $ 242,100 | ||
Loans, number of days in delinquency for interest accrual to discontinue | 90 days | |||
Retirement benefit plan, benefit commencement period following normal retirement date | 30 days | |||
Compensation deferral plan, payment period | 5 years | |||
Deposits in other financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation ("FDIC") | $ 1,047,000 | 137,000 | ||
Balances in brokerage firms, insured | 500,000 | |||
Retained Earnings | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from accumulated other comprehensive loss | $ 9,821 | 9,821 | ||
Accumulated Other Comprehensive Loss | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from accumulated other comprehensive loss | $ 9,821 | (9,821) | ||
Chief Executive Officer | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Supplemental executive retirement plan, annual payments | $ 30,000 | |||
Supplemental executive retirement plan, payment period | 10 years | |||
Supplemental executive retirement plan, retirement age | Age | 65 | |||
Fixed Rate Residential Mortgage [Member] | Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Loan, time period between issuance of loan commitment and closing and sale of the loan | 30 days | |||
Fixed Rate Residential Mortgage [Member] | Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Loan, time period between issuance of loan commitment and closing and sale of the loan | 90 days | |||
CBM Bancorp, Inc. [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Sale and issuance of common stock | shares | 4,232,000 | |||
Sale and issuance of common stock, per share | $ / shares | $ 10 | |||
Proceeds from sale and issuance of common stock | $ 41,300,000 | |||
Offering expenses | 1,100,000 | |||
Proceeds from offerings | $ 20,500,000 | |||
Proceeds from offerings, Percent | 50.00% | |||
Percent of issued and outstanding common stock | 100.00% | |||
Number of shares sold under ESOP | shares | 338,560 | |||
Number of shares sold under ESOP, as percentage | 8.00% | |||
Other Liabilities | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Bank owned life insurance ("BOLI") | $ 133,097 | $ 162,946 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Range of Estimated Useful Lives for Premises and Equipment (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
Buildings and land improvements [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment | 5 years |
Buildings and land improvements [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment | 50 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment | 10 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment | 15 years |
Furniture, fixtures and equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment | 3 years |
Furniture, fixtures and equipment [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment | 10 years |
Automobiles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment | 5 years |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities Classified as Available for Sale and Held to Maturity (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | $ 6,966,746 | $ 7,006,008 |
Securities Available for Sale, Gross Unrealized Gains | 12 | |
Securities Available for Sale, Gross Unrealized Losses | 182,116 | 82,352 |
Securities Available for Sale, Fair Value | 6,784,630 | 6,923,668 |
Securities Held to Maturity, Amortized Cost | 2,846,292 | 3,323,446 |
Securities Held to Maturity, Fair Value | 2,923,932 | 3,506,570 |
U.S. Government Agency and Federal Obligations | ||
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 5,460,450 | 5,498,783 |
Securities Available for Sale, Gross Unrealized Losses | 135,365 | 74,790 |
Securities Available for Sale, Fair Value | 5,325,085 | 5,423,993 |
Municipal Securities | ||
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 1,506,296 | 1,507,225 |
Securities Available for Sale, Gross Unrealized Gains | 12 | |
Securities Available for Sale, Gross Unrealized Losses | 46,751 | 7,562 |
Securities Available for Sale, Fair Value | 1,459,545 | 1,499,675 |
Residential mortgage-backed securities | ||
Marketable Securities [Line Items] | ||
Securities Held to Maturity, Amortized Cost | 2,846,292 | 3,323,446 |
Securities Held to Maturity, Gross Unrealized Gains | 78,940 | 183,124 |
Securities Held to Maturity, Gross Unrealized Losses | 1,300 | |
Securities Held to Maturity, Fair Value | $ 2,923,932 | $ 3,506,570 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 1,000,000 | $ 1,000,000 |
Due after one year through five years, Amortized Cost | 5,463,616 | 5,502,565 |
Due five years to ten years, Amortized Cost | 503,130 | 503,443 |
Due after ten years, Amortized Cost | 0 | 0 |
Securities Available for Sale, Amortized Cost | 6,966,746 | 7,006,008 |
Due in one year or less, Fair Value | 985,604 | 995,925 |
Due after one year through five years, Fair Value | 5,311,386 | 5,424,288 |
Due five years to ten years, Fair Value | 487,640 | 503,455 |
Due after ten years, Fair Value | 0 | 0 |
Securities Available for Sale, Fair Value | 6,784,630 | 6,923,668 |
Due in one year or less, Amortized Cost | 0 | 0 |
Due after one year through five years, Amortized Cost | 0 | 0 |
Due five years to ten years, Amortized Cost | 0 | 0 |
Due after ten years, Amortized Cost | 0 | 0 |
Securities Held to Maturity, Amortized Cost | 2,846,292 | 3,323,446 |
Due in one year or less, Fair Value | 0 | 0 |
Due after one year through five years, Fair Value | 0 | 0 |
Due five years to ten years, Fair Value | 0 | 0 |
Due after ten years, Fair Value | 0 | 0 |
Securities Held to Maturity, Fair Value | 2,923,932 | 3,506,570 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Held to Maturity, Amortized Cost | 2,846,292 | 3,323,446 |
Securities Held to Maturity, Fair Value | $ 2,923,932 | $ 3,506,570 |
Securities - Securities with Gr
Securities - Securities with Gross Unrealized Losses (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 2,413,908 | $ 2,482,150 |
Gross Unrealized Losses, Less than 12 Months | 53,851 | 20,415 |
Fair Value, 12 Months or Greater | 4,370,722 | 3,938,063 |
Gross Unrealized Losses, 12 Months or Greater | 128,265 | 61,937 |
Securities Available for Sale, Fair Value | 6,784,630 | 6,420,213 |
Securities Available for Sale, Gross Unrealized Losses | 182,116 | 82,352 |
U.S. Government and Federal Agency obligations | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 954,363 | 1,485,930 |
Gross Unrealized Losses, Less than 12 Months | 7,100 | 12,853 |
Fair Value, 12 Months or Greater | 4,370,722 | 3,938,063 |
Gross Unrealized Losses, 12 Months or Greater | 128,265 | 61,937 |
Securities Available for Sale, Fair Value | 5,325,085 | 5,423,993 |
Securities Available for Sale, Gross Unrealized Losses | 135,365 | 74,790 |
Municipal Securities | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 1,459,545 | 996,220 |
Gross Unrealized Losses, Less than 12 Months | 46,751 | 7,562 |
Securities Available for Sale, Fair Value | 1,459,545 | 996,220 |
Securities Available for Sale, Gross Unrealized Losses | 46,751 | 7,562 |
Residential mortgage-backed securities | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 449,754 | |
Gross Unrealized Losses, Less than 12 Months | 1,300 | |
Fair Value, 12 Months or Greater | 0 | 0 |
Gross Unrealized Losses, 12 Months or Greater | 0 | $ 0 |
Securities Held to Maturity, Fair Value | 449,754 | |
Securities Held to Maturity, Gross Unrealized Losses | $ 1,300 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Marketable Securities [Line Items] | ||
Gross unrealized losses | $ (183,416) | $ (82,352) |
Securities pledged | $ 0 | $ 0 |
Loans - Summary of Principal Lo
Loans - Summary of Principal Loan Portfolio Segment (Detail) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Lease and Investment Commitments [Line Items] | ||||||
Total loans | $ 144,628,298 | $ 140,215,216 | $ 142,894,436 | |||
Net deferred loan origination fees and costs | (169,574) | (129,745) | ||||
Allowance for loan losses | (1,191,267) | $ (1,116,267) | (1,038,405) | $ (908,961) | $ (1,056,018) | $ (681,366) |
Net loans | 143,267,457 | 139,047,066 | ||||
Real Estate Loan [Member] | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | 138,802,999 | 135,034,123 | ||||
Real Estate Loan [Member] | Residential One to Four Family | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | 69,301,180 | 67,192,415 | ||||
Real Estate Loan [Member] | Home Equity Loans and Lines of Credit | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | 8,072,429 | 9,539,606 | ||||
Real Estate Loan [Member] | Construction and Land Development | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | 9,990,514 | 9,333,394 | ||||
Real Estate Loan [Member] | Nonresidential | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | 51,438,876 | 48,968,708 | ||||
Other Loans | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | 5,825,299 | 5,181,093 | ||||
Other Loans | Commercial | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | 5,296,630 | 4,604,087 | ||||
Other Loans | Consumer | ||||||
Lease and Investment Commitments [Line Items] | ||||||
Total loans | $ 528,669 | $ 577,006 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Lease and Investment Commitments [Line Items] | |||
Total loans | $ 144,628,298 | $ 140,215,216 | $ 142,894,436 |
Overdraft Consumer Loan | |||
Lease and Investment Commitments [Line Items] | |||
Total loans | $ 6,793 | $ 9,683 |
Credit Quality of Loans and t_3
Credit Quality of Loans and the Allowance for Loan Losses - Summary of Allowance for Loan Losses and Loans Receivable by Loan Portfolio Class and Impairment Method (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | $ 1,116,267 | $ 1,056,018 | $ 1,038,405 | $ 681,366 | $ 681,366 |
Charge-offs | (672,207) | (88,000) | (672,705) | (678,069) | |
Recoveries | 150 | 15,862 | 300 | 10,108 | |
Provision | 75,000 | 525,000 | 225,000 | 900,000 | 1,025,000 |
Ending Balance | 1,191,267 | 908,961 | 1,191,267 | 908,961 | 1,038,405 |
Ending balance: individually evaluated for impairment | 14,346 | 75,105 | 14,346 | 75,105 | 86,718 |
Ending balance: collectively evaluated for impairment | 1,176,921 | 833,856 | 1,176,921 | 833,856 | 951,687 |
Ending balance | 144,628,298 | 142,894,436 | 144,628,298 | 142,894,436 | 140,215,216 |
Ending balance: individually evaluated for impairment | 1,086,454 | 2,065,731 | 1,086,454 | 2,065,731 | 904,204 |
Ending balance: collectively evaluated for impairment | 143,541,844 | 140,828,705 | 143,541,844 | 140,828,705 | 139,311,012 |
One-to-Four-Family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 202,457 | 126,856 | 238,148 | 74,483 | 74,483 |
Charge-offs | (19,471) | (88,000) | (19,471) | (19,471) | |
Recoveries | 7,563 | 6,508 | |||
Provision | 37,553 | 119,071 | 82,299 | 171,444 | 176,628 |
Ending Balance | 240,010 | 226,456 | 240,010 | 226,456 | 238,148 |
Ending balance: individually evaluated for impairment | 66,533 | 66,533 | 58,542 | ||
Ending balance: collectively evaluated for impairment | 240,010 | 159,923 | 240,010 | 159,923 | 179,606 |
Ending balance | 69,301,180 | 69,026,545 | 69,301,180 | 69,026,545 | 67,192,415 |
Ending balance: individually evaluated for impairment | 726,891 | 758,714 | 726,891 | 758,714 | 705,255 |
Ending balance: collectively evaluated for impairment | 68,574,289 | 68,267,831 | 68,574,289 | 68,267,831 | 66,487,160 |
Home Equity Loans and Lines of Credit | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 70,328 | 77,641 | 83,129 | 90,868 | 90,868 |
Provision | (22,155) | (7,542) | (34,956) | (20,769) | (7,739) |
Ending Balance | 48,173 | 70,099 | 48,173 | 70,099 | 83,129 |
Ending balance: individually evaluated for impairment | 1,178 | 2,134 | 1,178 | 2,134 | 21,899 |
Ending balance: collectively evaluated for impairment | 46,995 | 67,965 | 46,995 | 67,965 | 61,230 |
Ending balance | 8,072,429 | 9,841,296 | 8,072,429 | 9,841,296 | 9,539,606 |
Ending balance: individually evaluated for impairment | 142,847 | 67,241 | 142,847 | 67,241 | 69,334 |
Ending balance: collectively evaluated for impairment | 7,929,582 | 9,774,055 | 7,929,582 | 9,774,055 | 9,470,272 |
Construction and Land Development | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 171,304 | 536,051 | 173,167 | 308,507 | 308,507 |
Charge-offs | (651,039) | (651,039) | (656,403) | ||
Recoveries | 8,299 | ||||
Provision | 37,955 | 317,977 | 27,793 | 545,521 | 521,063 |
Ending Balance | 209,259 | 202,989 | 209,259 | 202,989 | 173,167 |
Ending balance: individually evaluated for impairment | 7,267 | 7,267 | |||
Ending balance: collectively evaluated for impairment | 201,992 | 202,989 | 201,992 | 202,989 | 173,167 |
Ending balance | 9,990,514 | 10,730,305 | 9,990,514 | 10,730,305 | 9,333,394 |
Ending balance: individually evaluated for impairment | 210,815 | 1,233,338 | 210,815 | 1,233,338 | 123,338 |
Ending balance: collectively evaluated for impairment | 9,779,699 | 9,496,967 | 9,779,699 | 9,496,967 | 9,210,056 |
Nonresidential | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 591,189 | 226,273 | 446,576 | 100,112 | 100,112 |
Provision | 4,724 | 59,022 | 149,337 | 185,183 | 346,464 |
Ending Balance | 595,913 | 285,295 | 595,913 | 285,295 | 446,576 |
Ending balance: collectively evaluated for impairment | 595,913 | 285,295 | 595,913 | 285,295 | 446,576 |
Ending balance | 51,438,876 | 48,187,130 | 51,438,876 | 48,187,130 | 48,968,708 |
Ending balance: collectively evaluated for impairment | 51,438,876 | 48,187,130 | 51,438,876 | 48,187,130 | 48,968,708 |
Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 30,137 | 73,006 | 44,199 | 55,066 | 55,066 |
Provision | (1,006) | (13,320) | (15,068) | 4,620 | (10,867) |
Ending Balance | 29,131 | 59,686 | 29,131 | 59,686 | 44,199 |
Ending balance: collectively evaluated for impairment | 29,131 | 59,686 | 29,131 | 59,686 | 44,199 |
Ending balance | 5,296,630 | 4,521,640 | 5,296,630 | 4,521,640 | 4,604,087 |
Ending balance: collectively evaluated for impairment | 5,296,630 | 4,521,640 | 5,296,630 | 4,521,640 | 4,604,087 |
Consumer | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 16,801 | 13,990 | 15,933 | 12,955 | 12,955 |
Charge-offs | (1,697) | (2,195) | (2,195) | ||
Recoveries | 150 | 300 | 3,600 | ||
Provision | (79) | 5,559 | 789 | 6,942 | 1,573 |
Ending Balance | 16,722 | 18,002 | 16,722 | 18,002 | 15,933 |
Ending balance: individually evaluated for impairment | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Ending balance: collectively evaluated for impairment | 10,821 | 11,564 | 10,821 | 11,564 | 9,656 |
Ending balance | 528,669 | 587,520 | 528,669 | 587,520 | 577,006 |
Ending balance: individually evaluated for impairment | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Ending balance: collectively evaluated for impairment | 522,768 | 581,082 | 522,768 | 581,082 | 570,729 |
Unallocated | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 34,051 | 2,201 | 37,253 | 39,375 | 39,375 |
Provision | 18,008 | 44,233 | 14,806 | 7,059 | (2,122) |
Ending Balance | 52,059 | 46,434 | 52,059 | 46,434 | 37,253 |
Ending balance: collectively evaluated for impairment | $ 52,059 | $ 46,434 | $ 52,059 | $ 46,434 | $ 37,253 |
Credit Quality of Loans and t_4
Credit Quality of Loans and the Allowance for Loan Losses - Summary of Loan Portfolio Quality Indicators by Loan Class Recorded Investment (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 144,628,298 | $ 140,215,216 | $ 142,894,436 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 141,059,638 | 137,803,053 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,528,075 | 972,201 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,040,585 | 1,439,962 | |
One-to-Four-Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 69,301,180 | 67,192,415 | 69,026,545 |
One-to-Four-Family | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 68,574,289 | 66,478,078 | |
One-to-Four-Family | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 9,082 | ||
One-to-Four-Family | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 726,891 | 705,255 | |
Home Equity Loans and Lines of Credit | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 8,072,429 | 9,539,606 | 9,841,296 |
Home Equity Loans and Lines of Credit | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 7,915,576 | 9,354,616 | |
Home Equity Loans and Lines of Credit | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 59,875 | 82,656 | |
Home Equity Loans and Lines of Credit | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 96,978 | 102,334 | |
Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 9,990,514 | 9,333,394 | 10,730,305 |
Construction and Land Development | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 8,963,824 | 8,329,593 | |
Construction and Land Development | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 815,875 | 880,463 | |
Construction and Land Development | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 210,815 | 123,338 | |
Nonresidential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 51,438,876 | 48,968,708 | 48,187,130 |
Nonresidential | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 49,786,551 | 48,467,012 | |
Nonresidential | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,652,325 | ||
Nonresidential | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 501,696 | ||
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,296,630 | 4,604,087 | 4,521,640 |
Commercial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,296,630 | 4,604,087 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 528,669 | 577,006 | $ 587,520 |
Consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 522,768 | 569,667 | |
Consumer | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 5,901 | $ 7,339 |
Credit Quality of Loans and t_5
Credit Quality of Loans and the Allowance for Loan Losses - Summary of Loan Portfolio Delinquencies (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | $ 2,004,794 | $ 1,978,363 |
Current Loans | 142,623,504 | 138,236,853 |
Total Loans | 144,628,298 | 140,215,216 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Nonaccrual Loans | 1,034,684 | 877,681 |
One-to-Four-Family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 658,669 | 714,337 |
Current Loans | 68,642,511 | 66,478,078 |
Total Loans | 69,301,180 | 67,192,415 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Nonaccrual Loans | 726,891 | 705,255 |
Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 96,978 | 116,956 |
Current Loans | 7,975,451 | 9,422,650 |
Total Loans | 8,072,429 | 9,539,606 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Nonaccrual Loans | 96,978 | 49,088 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 210,815 | 123,338 |
Current Loans | 9,779,699 | 9,210,056 |
Total Loans | 9,990,514 | 9,333,394 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Nonaccrual Loans | 210,815 | 123,338 |
Nonresidential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 822,130 | 1,022,670 |
Current Loans | 50,616,746 | 47,946,038 |
Total Loans | 51,438,876 | 48,968,708 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 209,907 | |
Current Loans | 5,086,723 | 4,604,087 |
Total Loans | 5,296,630 | 4,604,087 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 6,295 | 1,062 |
Current Loans | 522,374 | 575,944 |
Total Loans | 528,669 | 577,006 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Loans 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 1,236,271 | 1,045,331 |
Loans 30-59 Days Past Due | One-to-Four-Family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 204,234 | 9,082 |
Loans 30-59 Days Past Due | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 12,517 | |
Loans 30-59 Days Past Due | Nonresidential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 822,130 | 1,022,670 |
Loans 30-59 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 209,907 | |
Loans 30-59 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 1,062 | |
Loans 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 6,295 | 104,439 |
Loans 60-89 Days Past Due | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 104,439 | |
Loans 60-89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 6,295 | |
Loans 90 or More Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 762,228 | 828,593 |
Loans 90 or More Days Past Due | One-to-Four-Family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 454,435 | 705,255 |
Loans 90 or More Days Past Due | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 96,978 | |
Loans 90 or More Days Past Due | Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | $ 210,815 | $ 123,338 |
Credit Quality of Loans and t_6
Credit Quality of Loans and the Allowance for Loan Losses - Additional Information (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)LoansTDR | Dec. 31, 2017USD ($)LoansTDR | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans past due and still accruing interest period | 90 days | 90 days |
Number of loans on non accrual of interest status | Loans | 13 | 8 |
Financing receivable recorded investment non accrual status, forgone interest | $ 33,850 | $ 23,069 |
Recorded investment 90 days and accruing interest | Loans | 0 | 0 |
Number of TDR | TDR | 2 | 2 |
Financing receivable modifications recorded investment | $ 166,249 | $ 229,718 |
Financing receivables impaired troubled debt restructuring write down | 58,000 | |
Financing receivable modification extended maturity period | 5 years | |
Nonperforming loan | $ 120,380 | $ 229,718 |
One-to-Four-Family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of TDR | TDR | 1 | 1 |
Financing receivable modifications recorded investment | $ 120,380 | $ 180,630 |
Nonperforming loan | $ 120,380 | $ 180,630 |
Credit Quality of Loans and t_7
Credit Quality of Loans and the Allowance for Loan Losses - Summary Of Impaired Loans (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Home Equity Loans and Lines of Credit | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | $ 96,978 | $ 16,790 | $ 96,978 | $ 16,790 | |
Unpaid Principal Balance | 96,978 | 16,790 | 96,978 | 16,790 | |
Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 97,098 | 17,060 | 99,646 | 17,563 | |
Interest Income Recognized | 258 | 293 | 2,582 | 953 | |
Recorded Investment | 45,869 | 50,451 | 45,869 | 50,451 | $ 69,334 |
Unpaid Principal Balance | 45,869 | 50,451 | 45,869 | 50,451 | 69,334 |
Related Allowance | 1,178 | 2,134 | 1,178 | 2,134 | 21,899 |
Average Recorded Investment | 46,823 | 51,806 | 47,479 | 53,493 | 73,734 |
Interest Income Recognized | 493 | 941 | 2,182 | 2,728 | 4,742 |
Recorded Investment | 142,847 | 67,241 | 142,847 | 67,241 | 69,334 |
Unpaid Principal Balance | 142,847 | 67,241 | 142,847 | 67,241 | 69,334 |
Related Allowance | 1,178 | 2,134 | 1,178 | 2,134 | 21,899 |
Average Recorded Investment | 143,921 | 68,866 | 147,125 | 71,056 | 73,734 |
Interest Income Recognized | 751 | 1,234 | 4,764 | 3,681 | 4,742 |
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Unpaid Principal Balance | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Related Allowance | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Average Recorded Investment | 5,952 | 6,493 | 6,089 | 6,697 | 6,646 |
Interest Income Recognized | 82 | 82 | 280 | 403 | 484 |
Recorded Investment | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Unpaid Principal Balance | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Related Allowance | 5,901 | 6,438 | 5,901 | 6,438 | 6,277 |
Average Recorded Investment | 5,952 | 6,493 | 6,089 | 6,697 | 6,646 |
Interest Income Recognized | 82 | 82 | 280 | 403 | 484 |
One-to-Four-Family | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | 726,891 | 422,607 | 726,891 | 422,607 | 524,625 |
Unpaid Principal Balance | 785,890 | 422,607 | 785,890 | 422,607 | 524,625 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 758,508 | 423,220 | 794,549 | 424,711 | 530,533 |
Interest Income Recognized | 4,212 | 1,039 | 24,943 | 8,789 | 14,018 |
Recorded Investment | 336,107 | 336,107 | 180,630 | ||
Unpaid Principal Balance | 336,107 | 336,107 | 180,630 | ||
Related Allowance | 66,533 | 66,533 | 58,542 | ||
Average Recorded Investment | 336,901 | 338,462 | 182,471 | ||
Interest Income Recognized | 3,231 | 9,744 | 5,153 | ||
Recorded Investment | 726,891 | 758,714 | 726,891 | 758,714 | 705,255 |
Unpaid Principal Balance | 785,890 | 758,714 | 785,890 | 758,714 | 705,255 |
Related Allowance | 66,533 | 66,533 | 58,542 | ||
Average Recorded Investment | 758,508 | 760,121 | 794,549 | 763,173 | 713,004 |
Interest Income Recognized | 4,212 | 4,270 | 24,943 | 18,533 | 19,171 |
Construction and Land Development | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | 123,338 | 1,223,338 | 123,338 | 1,223,338 | 123,338 |
Unpaid Principal Balance | 123,338 | 1,884,377 | 123,338 | 1,884,377 | 123,338 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 123,338 | 1,552,095 | 123,338 | 1,714,854 | 116,714 |
Interest Income Recognized | 23,117 | 2,503 | |||
Recorded Investment | 87,477 | 87,477 | |||
Unpaid Principal Balance | 87,477 | 87,477 | |||
Related Allowance | 7,267 | 7,267 | |||
Average Recorded Investment | 87,551 | 87,916 | |||
Interest Income Recognized | 356 | 2,145 | |||
Recorded Investment | 210,815 | 1,233,338 | 210,815 | 1,233,338 | 123,338 |
Unpaid Principal Balance | 210,815 | 1,884,377 | 210,815 | 1,884,377 | 123,338 |
Related Allowance | 7,267 | 7,267 | |||
Average Recorded Investment | 210,889 | $ 1,552,095 | 211,254 | 1,714,854 | 116,714 |
Interest Income Recognized | $ 356 | $ 2,145 | $ 23,117 | $ 2,503 |
Credit Quality of Loans and t_8
Credit Quality of Loans and the Allowance for Loan Losses - Summary Of Troubled Debt Restructuring (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)TDR | Dec. 31, 2017USD ($)TDR | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | TDR | 2 | 2 |
Performing | $ 45,869 | |
Nonperforming | 120,380 | $ 229,718 |
Total | $ 166,249 | $ 229,718 |
One-to-Four-Family | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | TDR | 1 | 1 |
Nonperforming | $ 120,380 | $ 180,630 |
Total | $ 120,380 | $ 180,630 |
Home Equity Loans and Lines of Credit | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | TDR | 1 | 1 |
Performing | $ 45,869 | |
Nonperforming | $ 49,088 | |
Total | $ 45,869 | $ 49,088 |
Foreclosed Real Estate - Additi
Foreclosed Real Estate - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Loans | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Loans | Dec. 31, 2016USD ($) | |
Real Estate [Line Items] | |||||
Foreclosed real estate amount | $ 1,080,000 | $ 865,000 | $ 1,080,000 | $ 865,000 | $ 1,439,600 |
Proceeds from disposal of foreclosed real estate | 0 | 382,148 | 382,148 | ||
Gain (loss) on disposal of foreclosed real estate | $ 36,288 | $ 22,548 | $ 22,548 | ||
Loan in process of foreclosure | 185,262 | ||||
Residential Real Estate | |||||
Real Estate [Line Items] | |||||
Loan in process of foreclosure | $ 0 | ||||
Number of loans in the process of foreclosure | Loans | 2 | ||||
Number of properties included in foreclosed real estate | Loans | 0 | 0 | |||
Residential First Mortgage | |||||
Real Estate [Line Items] | |||||
Loan in process of foreclosure | $ 271,482 | ||||
Number of loans in the process of foreclosure | Loans | 3 | ||||
Construction and Land Development | |||||
Real Estate [Line Items] | |||||
Loan in process of foreclosure | $ 123,338 | ||||
Number of loans in the process of foreclosure | Loans | 1 |
Foreclosed Real Estate - Schedu
Foreclosed Real Estate - Schedule of Changes in Foreclosed Real Estate (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Real Estate [Line Items] | ||||
Balance, beginning of period | $ 865,000 | $ 1,439,600 | $ 1,439,600 | |
Transfer to foreclosed real estate | 0 | 0 | 0 | |
Proceeds from sale of foreclosed real estate | 0 | (382,148) | (382,148) | |
Gain (loss) on sale of foreclosed real estate | $ 36,288 | 22,548 | 22,548 | |
Write-down of foreclosed real estate | (215,000) | |||
Balance, end of period | $ 1,080,000 | $ 865,000 | $ 1,080,000 | $ 865,000 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Deposits [Line Items] | ||
Noninterest-bearing demand | $ 18,440,675 | $ 16,465,761 |
Interest-bearing demand | 23,602,914 | 25,178,229 |
Money market | 12,030,817 | 13,500,742 |
Savings | 24,662,111 | 24,605,557 |
Certificates of deposit | 76,940,408 | 75,036,115 |
Total deposits | $ 155,676,925 | $ 154,786,404 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Deposit accounts, federally insured | $ 250,000 | |
Time deposits with balances of $250,000 or more | 11,915,760 | $ 9,639,403 |
Deposit balances | 155,676,925 | 154,786,404 |
Officers and Directors | ||
Deposit balances | $ 531,523 | $ 788,500 |
Deposits - Schedule of Certific
Deposits - Schedule of Certificates of Deposit and Remaining Maturities (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Maturities of Time Deposits [Line Items] | ||
Certificate of deposit, maturities in year 1 | $ 31,354,483 | $ 29,502,622 |
Certificate of deposit, maturities in year 2 | 16,108,011 | 20,665,546 |
Certificate of deposit, maturities in year 3 | 14,008,759 | 10,756,925 |
Certificate of deposit, maturities in year 4 | 7,101,711 | 7,574,830 |
Certificate of deposit, maturities in year 5 | 8,367,444 | 6,536,192 |
Certificate of deposit | $ 76,940,408 | $ 75,036,115 |
Borrowings - Additional informa
Borrowings - Additional information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances limit as percentage of total assets | 25.00% | |
Federal Home Loan Bank, available amount | $ 46,000,000 | $ 45,400,000 |
Federal home loan bank advances eligible amount to pledge as collateral | 50,150,000 | 49,760,000 |
Federal Home Loan Bank, advances outstanding | 0 | 0 |
Line of credit facility, maximum borrowing capacity | 2,000,000 | 0 |
Line of credit outstanding | $ 0 | $ 0 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Common stock per share | $ 0.01 | $ 0.01 | ||
ESOP compensation expense | $ 15,000 | |||
ESOP | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Stock issued during period purchased shares, ESOP | 338,560 | |||
Common stock per share | $ 10 | $ 10 | ||
Employee stock ownership plan, loan period description | The Company's initial public offering at $10.00 per share with the proceeds of a ten (10) year loan from the Company. | |||
Employee stock ownership plan, vesting period | 3 years | |||
Employee stock ownership plan, vesting percentage | 100.00% | |||
ESOP compensation expense | $ 15,000 | $ 0 | $ 15,000 | $ 0 |
Employee stock ownership plan (ESOP), number of suspense shares | 338,560 | 338,560 | ||
Employee stock ownership plan (ESOP), number of suspense value | $ 4,300,000 | $ 4,300,000 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Dilutive potential common shares | 0 | 0 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Share (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income | $ 324,212 | $ 87,149 | $ 796,828 | $ 352,421 |
Weighted average common shares outstanding | 3,893,440 | 3,893,440 | ||
Earnings per common share, basic and diluted | $ 0.33 | $ 0.27 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios of the Bank (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier 1 capital (to risk-weighted assets), actual amount | $ 39,545 | $ 21,348 |
Total risk-based capital (to risk-weighted assets), actual amount | 40,771 | 22,421 |
Tier 1 capital (to risk-weighted assets), actual amount | 39,545 | 21,348 |
Tier 1 capital (to average assets), actual amount | $ 39,545 | $ 21,348 |
Common equity tier 1 capital (to risk-weighted assets), actual ratio | 30.02% | 16.64% |
Total risk-based capital (to risk-weighted assets), actual ratio | 30.96% | 17.48% |
Tier 1 capital (to risk-weighted assets), actual ratio | 30.02% | 16.64% |
Tier 1 capital (to average assets), actual ratio | 20.20% | 11.94% |
Common equity tier 1 capital (to risk-weighted assets), minimum regulatory capital ratios under Basel III amount | $ 8,396 | $ 7,376 |
Total risk-based capital (to risk-weighted assets), minimum regulatory capital ratios under Basel III amount | 13,006 | 11,866 |
Tier 1 capital (to risk-weighted assets), minimum regulatory capital ratios under Basel III amount | 10,372 | 9,300 |
Tier 1 capital (to average assets), minimum regulatory capital ratios under Basel III amount | $ 7,831 | $ 7,150 |
Common equity tier 1 capital (to risk-weighted assets), minimum regulatory capital ratios under Basel III ratio | 6.375% | 5.75% |
Total risk-based capital (to risk-weighted assets), minimum regulatory capital ratios under Basel III ratio | 9.875% | 9.25% |
Tier 1 capital (to risk-weighted assets), minimum regulatory capital ratios under Basel III ratio | 7.875% | 7.25% |
Tier 1 capital (to average assets), minimum regulatory capital ratios under Basel III ratio | 4.00% | 4.00% |
Common equity tier 1 capital (to risk-weighted assets), to be well capitalized under Basel III | $ 8,561 | $ 8,338 |
Total risk-based capital (to risk-weighted assets), to be well capitalized under Basel III | 13,171 | 12,828 |
Tier 1 capital (to risk-weighted assets), to be well capitalized under Basel III | 10,537 | 10,263 |
Tier 1 capital (to average assets), to be well capitalized under Basel III | $ 9,789 | $ 8,937 |
Common equity tier 1 capital (to risk-weighted assets), to be well capitalized under Basel III ratio | 6.50% | 6.50% |
Total risk-based capital (to risk-weighted assets), to be well capitalized under Basel III ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), to be well capitalized under Basel III ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), to be well capitalized under Basel III ratio | 5.00% | 5.00% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios of the Bank (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer phase-in ratio | 1.875% | 1.875% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Investment Securities Available for Sale (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 6,784,630 | $ 6,923,668 |
U.S. Government Agency and Federal Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,325,085 | 5,423,993 |
Fair Value Measurements on Recurring Basis | U.S. Government Agency and Federal Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,325,085 | 5,423,993 |
Fair Value Measurements on Recurring Basis | Municipal Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,459,545 | 1,499,675 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,785,000 | 6,924,000 |
Level 2 | Fair Value Measurements on Recurring Basis | U.S. Government Agency and Federal Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,325,085 | 5,423,993 |
Level 2 | Fair Value Measurements on Recurring Basis | Municipal Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,459,545 | $ 1,499,675 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair value of loan balance | $ 1,086,454 | $ 904,204 | $ 2,065,731 | |
Written down value of loan balance | 14,346 | 86,718 | 75,105 | |
Foreclosed real estate | $ 865,000 | $ 865,000 | $ 1,080,000 | $ 1,439,600 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Foreclosed Real Estate (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreclosed real estate | $ 865,000 | $ 865,000 | $ 1,080,000 | $ 1,439,600 |
Fair Value Measurements on Non-Recurring Basis | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 1,072,108 | 817,486 | ||
Foreclosed real estate | 865,000 | 865,000 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreclosed real estate | 865,000 | 865,000 | ||
Level 3 | Fair Value Measurements on Non-Recurring Basis | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 1,072,108 | 817,486 | ||
Foreclosed real estate | $ 865,000 | $ 865,000 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Non-Recurring Basis (Detail) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreclosed real estate | $ 865,000 | $ 865,000 | $ 1,080,000 | $ 1,439,600 |
Fair Value Measurements on Non-Recurring Basis | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 1,072,108 | 817,486 | ||
Foreclosed real estate | $ 865,000 | $ 865,000 | ||
Fair Value Measurements on Non-Recurring Basis | Measurement Input, Discount Rate | Appraised Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rates | 0.2792 | 0.2792 | ||
Fair Value Measurements on Non-Recurring Basis | Measurement Input, Discount Rate | Discounted Cash Flows | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rates | 0.0257 | 0.0337 | ||
Fair Value Measurements on Non-Recurring Basis | Minimum | Measurement Input, Discount Rate | Appraised Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rates | 0 | 0 | ||
Fair Value Measurements on Non-Recurring Basis | Maximum | Measurement Input, Discount Rate | Appraised Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rates | 0.0831 | 0.3241 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Estimated Fair Values of the Bank's Financial Instruments (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | ||
Financial assets: | ||||||
Cash and cash equivalents | $ 50,694,184 | $ 12,030,272 | $ 12,940,185 | $ 21,443,369 | ||
Time deposits in other banks | 3,968,000 | 4,960,000 | ||||
Securities available for sale | 6,784,630 | 6,923,668 | ||||
Securities held to maturity | 2,846,292 | 3,323,446 | ||||
Federal Home Loan Bank stock | 245,200 | 242,100 | ||||
Loans held for sale | 423,143 | 1,218,350 | ||||
Loans, net | 143,267,457 | 139,047,066 | ||||
Foreclosed real estate | 865,000 | 865,000 | $ 1,080,000 | $ 1,439,600 | ||
Accrued interest receivable | 583,923 | 526,811 | ||||
Financial liabilities: | ||||||
Deposits | 155,676,925 | 154,786,404 | ||||
Level 1 | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 50,694,000 | 12,030,000 | ||||
Level 2 | ||||||
Financial assets: | ||||||
Time deposits in other banks | 3,916,000 | 4,927,000 | ||||
Securities available for sale | 6,785,000 | 6,924,000 | ||||
Securities held to maturity | 2,924,000 | 3,507,000 | ||||
Federal Home Loan Bank stock | 245,000 | 242,000 | ||||
Loans held for sale | 423,000 | 1,218,000 | ||||
Accrued interest receivable | 584,000 | 527,000 | ||||
Financial liabilities: | ||||||
Deposits | 137,524,000 | 140,251,000 | ||||
Level 3 | ||||||
Financial assets: | ||||||
Loans, net | 139,976,000 | [1] | 143,470,000 | [2] | ||
Foreclosed real estate | 865,000 | 865,000 | ||||
Carrying Value | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 50,694,000 | 12,030,000 | ||||
Time deposits in other banks | 3,968,000 | 4,960,000 | ||||
Securities available for sale | 6,785,000 | 6,924,000 | ||||
Securities held to maturity | 2,846,000 | 3,323,000 | ||||
Federal Home Loan Bank stock | 245,000 | 242,000 | ||||
Loans held for sale | 423,000 | 1,218,000 | ||||
Loans, net | 143,268,000 | [1] | 139,047,000 | [2] | ||
Foreclosed real estate | 865,000 | 865,000 | ||||
Accrued interest receivable | 584,000 | 527,000 | ||||
Financial liabilities: | ||||||
Deposits | 155,677,000 | 154,787,000 | ||||
Fair Value | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 50,694,000 | 12,030,000 | ||||
Time deposits in other banks | 3,916,000 | 4,927,000 | ||||
Securities available for sale | 6,785,000 | 6,924,000 | ||||
Securities held to maturity | 2,924,000 | 3,507,000 | ||||
Federal Home Loan Bank stock | 245,000 | 242,000 | ||||
Loans held for sale | 423,000 | 1,218,000 | ||||
Loans, net | 139,976,000 | [1] | 143,470,000 | [2] | ||
Foreclosed real estate | 865,000 | 865,000 | ||||
Accrued interest receivable | 584,000 | 527,000 | ||||
Financial liabilities: | ||||||
Deposits | $ 137,524,000 | $ 140,251,000 | ||||
[1] | Carrying amount is net of unearned income and the allowance for loan losses. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans was measured using an exit price notion. | |||||
[2] | Carrying amount is net of unearned income and the allowance for loan losses. The fair value of loans was measured using an entry price notion. |