Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 30, 2020 | Jan. 09, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BCOW | ||
Entity Registrant Name | 1895 Bancorp of Wisconsin, Inc. | ||
Entity Central Index Key | 0001751692 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Address, State or Province | WI | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common stock | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 4,876,677 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 21.1 | ||
Entity File Number | 001-38778 | ||
Entity Tax Identification Number | 83-3078306 | ||
Entity Address, Address Line One | 7001 West Edgerton Avenue | ||
Entity Address, City or Town | Greenfield | ||
Entity Address, Postal Zip Code | 53220 | ||
City Area Code | (414) | ||
Local Phone Number | 421-8200 | ||
Entity Incorporation, State or Country Code | X1 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: (1) Proxy Statement for the 2020 Annual Meeting of Stockholders of the Registrant (Part III). |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 11,507 | $ 7,782 |
Fed funds sold | 200 | 141 |
Cash and cash equivalents | 11,707 | 7,923 |
Available for sale securities, stated at fair value | 71,375 | 65,731 |
Loans held for sale | 685 | 771 |
Loans, net of allowance for loan and lease losses of $2,000 and $3,262, respectively | 310,674 | 369,830 |
Premises and equipment, net | 6,681 | 8,163 |
Mortgage servicing rights, net | 2,172 | 2,103 |
Federal Home Loan Bank (FHLB) stock, at cost | 913 | 1,261 |
Accrued interest receivable | 963 | 1,106 |
Cash value of life insurance | 13,085 | 13,400 |
Other assets | 9,754 | 10,811 |
TOTAL ASSETS | 428,009 | 481,099 |
Liabilities and Stockholders' Equity | ||
Deposits | 344,596 | 406,137 |
Advance payments by borrowers for taxes and insurance | 1,681 | 1,240 |
FHLB advances | 17,623 | 30,010 |
Accrued interest payable | 385 | 372 |
Other liabilities | 5,059 | 5,159 |
Total liabilities | 369,344 | 442,918 |
Common stock, $0.01 par value, 90,000,000 shares authorized 4,876,677 issued and outstanding as of December 31, 2019 | 49 | |
Additional Paid in Capital | 19,981 | |
Unallocated common stock of Employee Stock Ownership Plan (ESOP), 168,507 shares as of December 31, 2019 | (1,685) | |
Retained earnings | 40,213 | 39,764 |
Accumulated other comprehensive income (loss), net of income taxes | 107 | (1,583) |
Total stockholders' equity | 58,665 | 38,181 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 428,009 | $ 481,099 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) shares in Thousands, $ in Thousands | Dec. 31, 2019USD ($)$ / sharesshares |
Statement Of Financial Position [Abstract] | |
Allowance for loan and lease losses | $ | $ 2,000 |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 |
Common Stock, Shares Authorized | 90,000,000 |
Common Stock, Shares, Issued | 4,876,677 |
Common Stock, Shares, Outstanding | 4,876,677 |
Unallocated common stock of Employee Stock Ownership Plan | 168,507 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income: | ||
Loans, including fees | $ 15,305 | $ 14,997 |
Securities, taxable | 1,588 | 1,711 |
Other | 342 | 45 |
Total interest and dividend income | 17,235 | 16,753 |
Interest expense: | ||
Interest-bearing deposits | 4,642 | 3,691 |
Borrowed funds | 291 | 542 |
Total interest expense | 4,933 | 4,233 |
Net interest income | 12,302 | 12,520 |
Provision (credit) for loan losses | (1,032) | |
Net interest income after provision for loan losses | 13,334 | 12,520 |
Noninterest income: | ||
Service charges and other fees | 856 | 875 |
Loan servicing | 948 | 707 |
Net gain on sale of loans | 715 | 707 |
Net gain on sale of securities | 67 | |
Increase in cash value of insurance | 399 | 404 |
Death benefit gain | 158 | 120 |
Net gain on sale of foreclosed assets | 84 | |
Other | 68 | 59 |
Total noninterest income | 3,228 | 2,939 |
Noninterest expense: | ||
Salaries and employee benefits | 9,571 | 9,505 |
Advertising and promotions | 199 | 121 |
Data processing | 795 | 744 |
Occupancy and equipment | 1,726 | 1,646 |
FDIC assessment | 84 | 388 |
Other | 3,747 | 3,251 |
Total noninterest expense | 16,122 | 15,655 |
Income (loss) before income taxes | 440 | (196) |
Credit for income taxes | (9) | (177) |
Net income (loss) | $ 449 | $ (19) |
Earnings per share: | ||
Basic | $ 0.10 | |
Diluted | $ 0.10 | |
Average common shares outstanding: | ||
Basic | 4,703,782 | |
Diluted | 4,703,782 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 449 | $ (19) |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) gains arising during the period | 2,315 | (1,022) |
Reclassification adjustment for gains realized in net income | (67) | |
Other comprehensive income (loss), before tax effect | 2,315 | (1,089) |
Tax effect of other comprehensive income (loss) items | 625 | (295) |
Other comprehensive income (loss), net of tax | 1,690 | (794) |
Comprehensive income (loss) | $ 2,139 | $ (813) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Unallocated Common Stock ESOP | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2017 | $ 38,994 | $ 39,783 | $ (789) | |||
Net income (loss) | (19) | (19) | ||||
Other comprehensive income (loss) | (794) | (794) | ||||
Balance at Dec. 31, 2018 | 38,181 | 39,764 | (1,583) | |||
Net income (loss) | 449 | 449 | ||||
Other comprehensive income (loss) | 1,690 | 1,690 | ||||
Net proceeds of offering | 20,029 | $ 49 | $ 19,980 | |||
Purchase of ESOP Shares | (1,755) | $ (1,755) | ||||
ESOP shares committed to be released (7,021 shares) | 71 | 1 | 70 | |||
Balance at Dec. 31, 2019 | $ 58,665 | $ 49 | $ 19,981 | $ (1,685) | $ 40,213 | $ 107 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) shares in Thousands | Dec. 31, 2019shares |
Statement Of Stockholders Equity [Abstract] | |
ESOP shares committed to be released | 7,021 |
Consolidated Statements of Cash
Consolidated Statements of Cash flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 449 | $ (19) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Credit for loan losses | (1,032) | |
Depreciation | 695 | 663 |
Net amortization of investment securities | 264 | 331 |
Net (gain) loss on disposal of premises and equipment | (96) | 22 |
Write-down on premises and equipment | 90 | |
Deferred income taxes | 20 | 220 |
Net gain on sale and of foreclosed assets | (103) | |
Net gain on sale of available for sale securities | (67) | |
Originations of mortgage loans held for sale | (112,070) | (55,882) |
Proceeds from sales of mortgage loans held for sale | 112,872 | 56,035 |
Net gain on sale of mortgage loans held for sale | (716) | (707) |
ESOP compensation | 71 | |
Net change in cash value of life insurance | (399) | (404) |
Gain on death benefit | (158) | (120) |
Changes in operating assets and liabilities: | ||
Mortgage servicing rights | (69) | 167 |
Accrued interest receivable and other assets | 1,215 | (1,455) |
Accrued interest payable and other liabilities | (87) | 533 |
Net cash provided by (used in) operating activities | 946 | (683) |
Cash flows from investing activities | ||
Proceeds from sales of available for sale securities | 14,392 | |
Maturities, prepayments and calls of available for sale securities | 10,308 | 7,479 |
Purchase of available for sale securities | (13,901) | |
Net decrease (increase) in loans | 60,054 | (38,624) |
Net proceeds from sales of premises and equipment | 801 | |
Capital expenditures for premises and equipment | (668) | (1,187) |
Proceeds from life insurance policies | 872 | 856 |
Net decrease in FHLB stock | 348 | 175 |
Proceeds from sales of foreclosed assets | 237 | |
Net cash provided by (used in) investing activities | 58,051 | (16,909) |
Cash flows from financing activities | ||
Net (decrease) increase in deposits | (61,541) | 16,846 |
Net increase in advance payments by borrowers for taxes and insurance | 441 | 855 |
Proceeds from stock offering | 20,029 | |
Purchase of ESOP shares | (1,755) | |
Proceeds from the issuance of FHLB advances | 10,000 | |
Principal payments on FHLB advances | (22,387) | (4,683) |
Net cash (used in) provided by financing activities | (55,213) | 13,018 |
Net increase (decrease) in cash and cash equivalents | 3,784 | (4,574) |
Cash and cash equivalents at beginning of year | 7,923 | 12,497 |
Cash and cash equivalents at end of year | 11,707 | 7,923 |
Supplemental cash flow information: | ||
Cash paid during the year for interest | 4,920 | $ 4,021 |
Cash paid (received) during the year for income taxes | (209) | |
Loans transferred to loans held for sale | 29,360 | |
Loans transferred to foreclosed assets | 134 | |
Bank premises transferred to other assets | $ 660 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 — Summary of Significant Accounting Policies Organization 1895 Bancorp of Wisconsin, Inc. (the “Company”) was formed in January 2019 to serve as the mid-tier stock holding company for PyraMax Bank, FSB (the “Bank”) upon the reorganization of the Bank into the two-tier mutual holding company structure. The reorganization was completed on January 8, 2019. Prior to January 8, 2019, the Company had no assets or liabilities and had not conducted any business activities other than organizational activities. Accordingly, the audited consolidated financial statements and other financial information contained in these consolidated financial statements relate solely to the Bank for periods prior to January 8, 2019. On January 8, 2019, PyraMax Bank, FSB (the “Bank”) converted to a stock savings bank and is now organized in the mutual holding company structure. The Bank issued all of its outstanding stock to the Company, which sold 2,145,738 shares of common stock to the public at $10.00 per share, including 175,528 shares purchased by the Bank’s employee stock ownership plan (“ESOP”). In connection with the reorganization, the Company also issued 48,767 shares of common stock to 1895 Bancorp of Wisconsin Community Foundation, Inc. and 2,682,172 shares of common stock to 1895 Bancorp of Wisconsin, MHC, the federally-chartered mutual holding company. The cost of the reorganization and the issuing of the common stock totaling $1,816 were deferred and deducted from the sales proceeds of the offering. The Bank operates as a full-service financial institution, providing a full range of financial services, including the granting of commercial, residential, and consumer loans and acceptance of deposits from individual customers and small businesses in the metropolitan Milwaukee, Wisconsin, area. The Bank is subject to competition from other financial and nonfinancial institutions providing financial products. In addition, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies. Jumpstart Our Business Startups Act The Jumpstart Our Business Startups Act (the JOBS Act), which was signed into law on April 5, 2012, has made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.0 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as an “emerging growth company” and believes that it will continue to qualify as an “emerging growth company” until five years from the completion of the stock offering. As an “emerging growth company,” the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and 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 in the near term relate to the determination of the allowance for loan losses, the fair values of securities, the fair values of financial instruments, mortgage servicing rights, and the valuation of deferred income tax assets. Revenue Recognition Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (Topic 606), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. NOTE 1 — Summary of Significant Accounting Policies – (continued) The Company completed its overall assessment of revenue streams and related contracts affected by the Topic 606 guidance. The majority of the Company’s revenue-generating transactions are not subject to Topic 606, including all interest and dividend income generated from financial instruments. Certain noninterest income items, including loan servicing income, gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated to not fall within the scope of Topic 606. Elements of noninterest income that is within the scope Topic 606 are as follows: Fee income on deposit accounts – Revenue from fees charged on deposit accounts is earned through deposit-related services; as well as account maintenance and management, overdraft, non-sufficient funds and other deposit-related fees. Revenue is recognized either over time, corresponding with the deposit accounts’ monthly cycle, or at a point in time when transactional based fees and services occur. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the new revenue standards. Recognition of revenue under Topic 606 did not materially change the timing or magnitude of revenue recognition Sale of foreclosed assets – Revenue from the sale of foreclosed assets is recognized at a point in time when control of the promised asset transfers to the buyer. The Company uses the following indicators to determine when control of a promised asset has been transferred: the seller has a present right to payment for the asset; the buyer has legal title of the asset; the seller has transferred physical possession of the asset; the buyer has the significant risks and rewards of ownership of the asset; or the buyer has accepted the asset. Recognition of revenue under Topic 606 did not materially change the timing or magnitude of revenue recognition Merchant card arrangement fees – Customers use a Bank-issued debit or credit card to purchase goods and services, and the Company earns interchange fees on these transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. There are no contingent debit or credit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Recognition of revenue under Topic 606 did not materially change the timing or magnitude of revenue recognition Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, interest-bearing and non-interest-bearing accounts in other financial institutions, and federal funds sold, all of which have original maturities of three months or less. Securities Debt securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital requirements, and other similar factors. Securities classified as available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. Interest and dividends on available securities are recognized as income when earned. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated lives of the securities. Mutual fund investments are held as trading securities until January 1, 2019 upon adoption of ASU 2016-01, and carried at fair value, with changes in fair value reported in net income. These mutual fund investments were reclassified as marketable equity securities as of January 1, 2019 upon adoption of ASU 2016-01 and included in other assets on the balance sheet. Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient enough to allow for any anticipated recovery in fair value. NOTE 1 — Summary of Significant Accounting Policies – (continued) 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 in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan sold. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for deferred loan fees and costs, charge-offs, and an allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. When loans are placed on non-accrual status or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable as of the balance sheet date. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. In determining the adequacy of the allowance balance, the Company makes evaluations of the loan portfolio and related off-balance sheet commitments, considers current economic conditions and historical loss experience, and reviews specific problem loans and other factors. When establishing the allowance for loan losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and their relevant risk characteristics are as follows: Commercial real estate : These loans are dependent on the industries tied to these loans. Commercial real estate loans are secured primarily by office and industrial buildings, warehouses, small retail shopping facilities, and various special-purpose properties, including hotels and restaurants. Financial information is obtained from borrowers and/or the individual project to evaluate cash flow sufficiency to service debt and is periodically updated during the life of the loan. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market, such as geographic location and/or property type, Land development: These loans are secured by vacant land and/or property that are in the process of improvement, including (a) land development preparatory to erecting vertical improvements or (b) the on-site construction of industrial, commercial, residential, or farm buildings. Repayment of these loans can be dependent on the sale of the property to third parties or the successful completion of the improvements by the builder for the end user. In the event a loan is made on property that is not yet improved for the planned development, there is the risk that necessary approvals will not be granted or will be delayed. Construction loans also run the risk that improvements will not be completed on time or in accordance with specifications and projected costs. Commercial Other: This loan category is comprised of commercial and industrial loans. Commercial and industrial loans are extended primarily to small and middle market customers. Such credits typically comprise working capital loans, asset acquisition loans, and loans for other business purposes. Loans to closely held businesses are generally guaranteed in full by the owners of the business. Commercial and industrial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for commercial and industrial loans. Residential real estate: These loans are generally to individuals and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations, the underlying collateral, and the loan to collateral value. Underwriting standards for residential real estate owner-occupied loans are heavily influenced by statutory requirements, which include, but are not limited to, loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. Consumer: These loans may take the form of installment loans, demand loans, or single payment loans, and are extended to individuals for household, family, and other personal expenditures. These loans generally include direct consumer automobile loans and credit card loans. Also included in this category are junior liens on 1-4 family residential properties. These loans are generally smaller in size and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations. NOTE 1 — Summary of Significant Accounting Policies – (continued) Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the loan portfolio, composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. A loan is impaired when, based on current information, it is probable that the Company will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability based on information available to them at the time of their examination. Troubled Debt Restructurings Loans are accounted for as troubled debt restructurings when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. Troubled debt restructurings are considered impaired loans. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Provisions for depreciation are computed on straight-line method over the estimated useful lives of the assets. Mortgage Servicing Rights Mortgage servicing rights are recognized as separate assets when rights are acquired through sale of mortgage loans. Mortgage servicing rights acquired through sale of loans are recognized as a component of loan servicing income and are recorded at fair value. The fair value of mortgage servicing rights is estimated using a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, the custodial earnings rate, ancillary income, default rates and losses, and prepayment speeds. The fair value of mortgage servicing rights may change because of changes in the discount rates, prepayment expectations, default rates, and other factors. Mortgage servicing rights are amortized into income in proportion to and over the period of the estimated future net servicing income of the underlying loans. Mortgage servicing rights are evaluated for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation includes stratifying the mortgage servicing rights by predominant characteristics such as interest rates and terms and estimating fair value of each stratum. Impairment is recognized through a valuation allowance for an individual stratum to the extent that fair value is less than the carrying amount for the stratum. Federal Home Loan Bank Stock The Company’s investment in Federal Home Loan Bank (“FHLB”) stock is carried at cost. The Company is required to hold the stock as a member of the FHLB, and transfer of the stock is substantially restricted. The stock is pledged as collateral for outstanding FHLB advances. The stock is evaluated for impairment on an annual basis. Foreclosed Assets Assets acquired through or in lieu of loan foreclosure are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net foreclosed asset expense. There were no foreclosed assets as of December 31, 2019 and 2018, respectively. There were approximately $240 and $161 of residential real estate loans in process of foreclosure at December 31, 2019 and 2018, respectively. NOTE 1 — Summary of Significant Accounting Policies – (continued) Cash value of life insurance The Company purchased bank owned life insurance on the lives of certain employees. The Company is the beneficiary of the life insurance policies. The cash surrender value of life insurance is reported at the amount that would be received in cash if the policies were surrendered. Increases in the cash value of the policies and proceeds of death benefits received are recorded in noninterest income. The increase in cash value of life insurance is not subject to income taxes, as long as the Company has the intent and ability to hold the policies until the death benefits are received. Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to the allowances for loan losses, deferred compensation, depreciation, FHLB stock dividends and non-accrual interest. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The tax effects from an uncertain tax position can be recognized in the consolidated financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its consolidated financial statements. The Company’s policy is to recognize interest and penalties related to income tax issues as components of income tax expense. During the periods shown, the Company did not recognize any interest or penalties related to income tax expense in its statements of operations. Employee Benefit Plans The Company has employee benefit plans for qualified employees. The Company’s policy is to fund contributions as accrued. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments including commitments to extend credit, unfunded commitments under lines of credit, and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they become payable. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Rate Lock Commitments The Company enters into commitments to originate loans, whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in other assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements and for fixed-rate commitments also considers the difference between current levels of interest rates and the committed rates. Advertising Advertising costs are expensed as incurred. Other Comprehensive Income (Loss) Other comprehensive income (loss) is shown on the statements of comprehensive income (loss). The Company’s accumulated other comprehensive loss is composed of the unrealized loss on securities available for sale, net of tax and is shown on the statements of changes in equity. Reclassification adjustments out of other comprehensive loss for gains realized on sales of securities available for sale comprise the entire balance of “net gain on sale of securities” on the statements of operations. As part of this reclassification, income tax expense of approximately $0 and $18 was recognized for the years ended December 31, 2019 and 2018, respectively, in “provision (credit) for income taxes” on the statements of operations. NOTE 1 — Summary of Significant Accounting Policies – (continued) Reclassifications Certain reclassifications have been made to the 2018 consolidated financial statements to conform to the 2019 classifications. Recent Accounting Pronouncements The Company recently adopted the following Accounting Standards Updates (ASU) issued by the Financial Accounting Standards Board (FASB): ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. This ASU applies to all entities that hold financial assets or owe financial liabilities, and is intended to provide more useful information on the recognition, measurement, presentation and disclosure of financial instruments. Among other things, this ASU 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminates the requirement to disclose the fair values of financial instruments measured at amortized cost for entities that are not public business entities; 4) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the consolidated financial statements; and 5) clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This amendment supersedes and replaces nearly all existing revenue recognition guidance. Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company adopted this accounting standard January 1, 2019, with no material impact on the Company’s consolidated financial statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU amends previous guidance over eight specific cash flow classification issues with the objective of reducing the existing diversity in practice. Management adopted this new accounting standard on January 1, 2019, with no material impact on the Company’s consolidated financial statements. The following ASUs have been issued by the FASB and may impact the Company’s consolidated financial statements in future reporting periods. ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. On November 15, 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, amending the effective date for this standard. ASU 2016-13 will be effective for reporting periods beginning after December 15, 2022. Management has elected to defer adoption to the new effective date and is currently evaluating the impact of adopting ASU 2016-13 on the Company’s consolidated financial statements. ASU 2016-02, Leases (Topic 842). This ASU affects any entity that enters into a lease, and is intended to increase the transparency and comparability of financial reporting. The ASU requires, among other changes, a lessee to recognize on its balance sheet a lease asset and a lease liability for those leases previously classified as operating leases. The lease asset will represent the right to use the underlying asset for the lease term, and the lease liability will represent the discounted value of the required lease payments to the lessor. The ASU will also require entities to disclose key information about leasing arrangements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. On November 15, 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, amending the effective date for this standard. ASU 2016-02 will be effective for reporting periods beginning after December 15, 2021. Management has elected to defer adoption to the new effective date and is currently evaluating the impact of adopting ASU 2016-02 on the Company’s consolidated financial statements . |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Cash and Due from Banks | NOTE 2 — Cash and Due from Banks Under Regulation D, savings institutions are generally required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based upon a percentage of deposits. The Company was required to maintain reserve balances with the Federal Reserve Bank of $0 as of both December 31, 2019 and 2018. In the normal course of business, the Company maintains cash and due from bank balances with correspondent banks. Balances in these accounts may exceed the Federal Deposit Insurance Corporation’s insured limit of $250. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal. |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Available for Sale Securities | NOTE 3— Available for Sale Securities Amortized costs and fair values of available for sale securities are summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated December 31, 2019 Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 9,779 $ 67 $ (20) $9,826 Government-sponsored mortgage-backed securities 56,975 416 (357) 57,034 Corporate collateralized mortgage obligations 284 5 - 289 Asset-backed securities 2,484 - (19) 2,465 Certificates of deposit 1,707 54 - 1,761 Total available for sale securities $ 71,229 $ 542 $ (396) $71,375 Gross Gross Amortized Unrealized Unrealized Estimated December 31, 2018 Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 11,348 $ 25 $ (204) $11,169 Government-sponsored mortgage-backed securities 52,363 4 (1,992) 50,375 Corporate collateralized mortgage obligations 410 1 (1) 410 Asset-backed securities 3,530 2 (1) 3,531 Certificates of deposit 249 - (3) 246 Total available for sale securities $ 67,900 $ 32 $ (2,201) $65,731 Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in estimated fair value. The Company’s mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by one of the following government enterprises: Fannie Mae, Freddie Mac or Ginnie Mae. At December 31, 2019, $2,956 of the Company’s mortgage related securities were pledged as collateral to secure customer deposit accounts. At December 31, 2018, $9,301 of the Company’s mortgage related securities were pledged as collateral to secure customer deposit accounts. NOTE 3 — Available for Sale Securities – (continued) The following table presents the portion of the Company’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Loss Value Loss Value Loss Obligations of states and political subdivisions $ 2,052 $ (14) $ 667 $ (6) $ 2,719 (20) Government-sponsored mortgage-backed securities 15,830 (106) 16,747 (251) 32,577 (357) Asset-backed securities 2,394 (18) 71 (1) 2,465 (19) Total $ 20,276 $ (138) $ 17,485 $ (258) $ 37,761 $ (396) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Loss Value Loss Value Loss Obligations of states and political subdivisions $ 1,567 $ (5) $ 6,909 $ (199) $ 8,476 $ (204) Government-sponsored mortgage-backed securities 29 - 49,549 (1,992) 49,578 (1,992) Corporate collateralized mortgage obligations 204 - 147 (1) 351 (1) Asset-backed securities 813 (1) - - 813 (1) Certificates of deposit - - 246 (3) 246 (3) Total $ 2,613 $ (6) $ 56,851 $ (2,195) $ 59,464 $ (2,201) At December 31, 2019, the Company had 30 debt securities with unrealized losses with aggregate depreciation of 1.0% from the Company’s amortized cost basis. At December 31, 2018, the bank had 59 debt securities with unrealized losses with aggregate depreciation of 3.6% from the Bank’s amortized cost basis. These unrealized losses relate principally to the changes in interest rates and are not caused by changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts' reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability to hold debt securities for the foreseeable future, no declines are deemed to be other than temporary. NOTE 3 — Available for Sale Securities – (continued) The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below: December 31, 2019 Amortized Fair Cost Value Due in one year or less $ 578 $ 578 Due after one through 5 years 6,417 6,482 Due after 5 through 10 years 3,161 3,209 Due after 10 years 1,330 1,318 Subtotal 11,486 11,587 Mortgage-related securities 57,259 57,323 Asset-backed securities 2,484 2,465 Total $ 71,229 $ 71,375 The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for each of the periods listed below: Years ended December 31, 2019 2018 Proceeds from sales of available for sale securities $ - $ 14,392 Gross gains - 137 Gross losses - (70) |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | NOTE 4 — Loans Major classifications of loans are as follows: As of December 31, 2019 2018 Commercial: Real estate $ 178,882 $ 191,645 Land development 1,623 2,187 Other 34,072 30,508 Residential real estate: First mortgage 65,450 108,084 Construction 2,041 2,097 Consumer: Home equity and lines of credit 29,691 36,154 Other 611 1,914 Subtotal 312,370 372,589 Net deferred loan fees 304 503 Allowance for loan losses (2,000) (3,262) Net loans $ 310,674 $ 369,830 Deposit accounts in an overdrawn position and reclassified as loans totaled $114 and $133 at December 31, 2019 and 2018, respectively. NOTE 4— Loans – (continued) Significant loan concentrations are considered to exist when there are amounts loaned to one borrower, or to multiple borrowers engaged in similar activities, that would cause them to be similarly impacted by economic or other conditions. While credit risks tend to be geographically concentrated in the Company’s metropolitan Milwaukee market area, and while a significant portion of the Company’s loan portfolio is secured by commercial and residential real estate, there are no significant concentrations whose primary sources of repayment are reliant upon an individual or group of related borrowers. A summary of the activity in the allowance for loan losses by portfolio segment is as follows: December 31, 2019 Commercial Residential Consumer Total Beginning balance $ 1,448 $ 1,250 $ 564 $ 3,262 Provision (credit) for loan losses (222) (599) (211) (1,032) Loans charged off (214) (83) (269) (566) Recoveries of loans previously charged off 223 5 108 336 Total ending allowance balance $ 1,235 $ 573 $ 192 $ 2,000 December 31, 2018 Commercial Residential Consumer Total Beginning balance $ 1,369 $ 1,246 $ 478 $ 3,093 Provision for loan losses - - - - Loans charged off (1) - (123) (124) Recoveries of loans previously charged off 80 4 209 293 Total ending allowance balance $ 1,448 $ 1,250 $ 564 $ 3,262 Information about how loans were evaluated for impairment and the related allowance for loan losses follows: December 31, 2019 Commercial Residential Consumer Total Loans: Individually evaluated for impairment $ 6,931 $ 1,078 $ 32 $ 8,041 Collectively evaluated for impairment 207,646 66,413 30,270 304,329 Total loans $ 214,577 $ 67,491 $ 30,302 $ 312,370 Allowance for loan losses: Individually evaluated for impairment $ - $ 62 $ 5 $ 67 Collectively evaluated for impairment 1,235 511 187 1,933 Total allowance for loan losses $ 1,235 $ 573 $ 192 $ 2,000 December 31, 2018 Commercial Residential Consumer Total Loans: Individually evaluated for impairment $ 1,165 $ 1,176 $ 36 $ 2,377 Collectively evaluated for impairment 223,175 109,005 38,032 370,212 Total loans $ 224,340 $ 110,181 $ 38,068 $ 372,589 Allowance for loan losses: Individually evaluated for impairment $ - $ 6 $ 6 $ 12 Collectively evaluated for impairment 1,448 1,244 558 3,250 Total allowance for loan losses $ 1,448 $ 1,250 $ 564 $ 3,262 NOTE 4— Loans – (continued) Information regarding impaired loans follows: Recorded Investment Principal Balance Related Allowance Average Investment Interest Recognized December 31, 2019 Loans with no related allowance for loan losses: Commercial: Real estate $ 5,840 $ 5,840 NA $ 1,824 $ 87 Land development - - NA 126 - Other 1,091 1,091 NA 488 23 Residential real estate and consumer: First mortgage 1,016 1,350 NA 1,056 18 Home equity and lines of credit 27 56 NA 29 - Total loans with no related allowance for loan losses 7,974 8,337 NA 3,523 128 Loans with related allowance for loan losses: Residential real estate and consumer: First mortgage 62 62 62 43 - Home equity and lines of credit 5 6 5 16 - Total loans with related allowance for loan losses 67 68 67 59 - Grand totals $ 8,041 $ 8,405 $ 67 $ 3,582 $ 128 December 31, 2018 Loans with no related allowance for loan losses: Commercial: Real estate $ 701 $ 701 NA $ 658 $ 40 Land development 303 303 NA 303 - Other 161 161 NA 46 2 Residential real estate and consumer: First mortgage 1,085 1,375 NA 1,235 25 Home equity and lines of credit 30 56 NA 32 - Total loans with no related allowance for loan losses 2,280 2,596 NA 2,274 67 Loans with related allowance for loan losses: Residential real estate and consumer: First mortgage 91 91 6 154 3 Home equity and lines of credit 6 6 6 124 - Total loans with related allowance for loan losses 97 97 12 278 3 Grand totals $ 2,377 $ 2,693 $ 12 $ 2,552 $ 70 NOTE 4 — Loans – (continued) There were no additional funds committed to impaired loans as of December 31, 2019 and 2018, respectively. The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for loan losses. The credit quality indicators monitored differ depending on the class of loan. “Pass” ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable. “Watch / Special mention” ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable. “Substandard” ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable. “Doubtful” ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely. Information regarding the credit quality indicators most closely monitored for commercial loans by class follows: December 31, 2019 Pass Watch and Special Mention Substandard Total Real estate $ 168,834 $ 4,418 $ 5,630 $ 178,882 Land development - 1,623 - 1,623 Other 27,522 5,517 1,033 34,072 Total $ 196,356 $ 11,558 $ 6,663 $ 214,577 December 31, 2018 Pass Watch and Special Mention Substandard Total Real estate $ 186,303 $ 4,403 $ 939 $ 191,645 Land development 158 1,726 303 2,187 Other 25,939 4,408 161 30,508 Total $ 212,400 $ 10,537 $ 1,403 $ 224,340 There were no loans rated as doubtful at December 31, 2019 and December 31, 2018. NOTE 4 — Loans – (continued) Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan. Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows: December 31, 2019 Performing Non Performing Total Residential real estate: First mortgages $ 63,760 $ 1,690 $ 65,450 Construction 2,041 - 2,041 Consumer: Home equity and lines of credit 29,548 143 29,691 Other 611 - 611 Total $ 95,960 $ 1,833 $ 97,793 December 31, 2018 Performing Non Performing Total Residential real estate: First mortgages $ 107,018 $ 1,066 $ 108,084 Construction 2,097 - 2,097 Consumer: Home equity and lines of credit 35,984 170 36,154 Other 1,914 - 1,914 Total $ 147,013 $ 1,236 $ 148,249 NOTE 4 — Loans – (continued) Loan aging and non-accrual information follows: December 31, 2019 Current Loans 30-89 Days Loans 90+ Days Total Non-accrual Loans Commercial: Real estate $ 178,702 $ - $ 180 $ 178,882 $ 180 Land development 1,623 - - 1,623 - Other 33,924 148 - 34,072 - Residential real estate: First mortgage 63,854 1,059 537 65,450 1,690 Construction 2,041 - - 2,041 - Consumer: Home equity and lines of credit 29,678 13 - 29,691 143 Other 611 - - 611 - Total $ 310,433 $ 1,220 $ 717 $ 312,370 $ 2,013 Total non-accrual loans to total loans 0.64% Total non-accrual loans to total assets 0.47% December 31, 2018 Current Loans 30-89 Days Loans 90+ Days Total Non-accrual Loans Commercial: Real estate $ 191,645 $ - $ - $ 191,645 $ - Land development 1,884 - 303 2,187 303 Other 30,508 - - 30,508 16 Residential real estate: First mortgage 106,523 1,470 91 108,084 1,066 Construction 2,097 - - 2,097 - Consumer: Home equity and lines of credit 35,926 215 13 36,154 170 Other 1,912 2 - 1,914 - Total $ 370,495 $ 1,687 $ 407 $ 372,589 $ 1,555 Total non-accrual loans to total loans 0.42% Total non-accrual loans to total assets 0.32% There are no loans 90 or more days past due and accruing interest as of December 31, 2019 or 2018. NOTE 4 — Loans – (continued) Non-performing loans are as follows: Years ended December 31, 2019 2018 Non-accrual loans, other than troubled debt restructurings $ 1,416 $ 906 Non-accrual loans, troubled debt restructurings 597 649 Total non-performing loans (NPLs) $ 2,013 $ 1,555 Restructured loans, accruing $ 446 $ 459 There were no new TDRs during the years ended December 31, 2019 and 2018. The Company considers a troubled debt restructuring in default if it becomes past due more than 90 days. No troubled debt restructurings defaulted within 12 months of their modification date during the years ended December 31, 2019 and 2018. |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Foreclosed Assets [Abstract] | |
Foreclosed Assets | NOTE 5 — Foreclosed Assets There were no foreclosed assets held as of December 31, 2019 and December 31, 2018. A summary of the Company’s foreclosed asset activity is presented below. Years ended December 31, 2019 2018 Foreclosed assets, beginning of period $ - $ - Loans receivable transferred 134 - Gain on sales 103 - Proceeds from sales (237) Write downs - - Other - - Foreclosed assets, end of period $ - $ - |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 6 — Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and are summarized as follows: As of December 31, 2019 2018 Land $ 863 $ 1,408 Buildings 7,829 10,044 Leasehold improvements 633 661 Furniture and equipment 6,343 6,029 Totals 15,668 18,142 Less: Accumulated depreciation 8,987 9,979 Premises and equipment, net $ 6,681 $ 8,163 Depreciation of premises and equipment totaled $695 and $663 for the years ended December 31, 2019 and 2018, respectively. The Company had impairment on premises and equipment of $90 during the year ended December 31, 2019. The impairment loss was taken on a building held for sale, which was transferred to other assets on the balance sheet at December 31, 2019. There was no impairment of premises and equipment during the year ended December 31, 2018. The Company leases premises from nonrelated entities. Rent expense under these non-cancelable leases totaled $223 and $218 for the years ended December 31, 2019 and 2018, respectively. Minimum rental commitments under non-cancelable leases, before considering available renewal options, are as follows as of December 31, 2019: 2020 $ 93 2021 20 Total $ 113 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Mortgage Servicing Rights | NOTE 7 — Mortgage Servicing Rights Loans serviced for others are not included in the balance sheets. The unpaid principal balance of mortgage loans serviced for others totaled $336,722 at December 31, 2019, and $332,515 at December 31, 2018. The following is a summary of changes in the balance of mortgage servicing rights for the periods indicated below: As of December 31, 2019 2018 Beginning balance $ 2,103 $ 2,270 Additions 527 168 Amortization (458) (335) Ending balances $ 2,172 $ 2,103 Fair value at beginning of period $ 3,371 $ 3,158 Fair value at end of period $ 2,404 $ 3,371 There was no valuation allowance as of December 31, 2019 and 2018. The Company did not sell any mortgage servicing rights during the years ended December 31, 2019 and 2018. The estimated fair value of mortgage servicing rights was determined using a valuation model that calculates the present value of expected future servicing and ancillary income, net of expected servicing costs. The model incorporates various assumptions such as discount rates, prepayment speeds, and ancillary income and servicing costs. As of December 31, 2019, the model used discount rates ranging from 10% to 14% and prepayment speeds ranging from 7% to 45%, respectively, both of which were based on market data from independent organizations. As of December 31, 2018, the model used discount rates of 10% to 14% and prepayment speeds ranging from 7% to 43%. The following table shows the estimated future amortization of mortgage servicing rights for the next five years. The projections of amortization expense are based on existing asset balances as of as of December 31, 2019. The actual amortization expense the Company recognizes in any given period may be significantly different depending on changes in interest rates, market conditions, and regulatory requirements. For the period ending December 31, 2020 $ 459 2021 431 2022 401 2023 373 2024 342 Thereafter 166 Total $ 2,172 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Deposits | NOTE 8— Deposits The composition of deposits is as follows: As of December 31, 2019 2018 Non-interest bearing checking $ 62,768 $ 85,988 Interest bearing checking 25,432 25,556 Money market 65,999 59,071 Statement savings accounts 47,981 53,245 Certificates of deposit 142,416 182,277 Total $ 344,596 $ 406,137 Certificates of deposit that met or exceeded the FDIC insurance limit of $250 totaled $16,260 and $12,787 at December 31, 2019 and 2018, respectively. Interest expense on deposits is summarized as follows: Years ended December 31, 2019 2018 Interest bearing checking $ 59 $ 52 Money market 715 424 Statement savings accounts 66 74 Certificates of deposit 3,802 3,141 Total $ 4,642 $ 3,691 The scheduled maturities of certificates of deposit are as follows: 2020 $ 122,772 2021 15,456 2022 2,895 2023 585 2024 708 Total $ 142,416 |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
FHLB Advances and Other Borrowings | NOTE 9 — FHLB Advances and Other Borrowings A summary of FHLB advances follows: As of December 31, 2019 2018 Rate Amount Rate Amount (dollars in thousands) Open line of credit 1.77% $ - 2.61% $ 5,350 Fixed rate, fixed term advances 1.41% 7,000 1.13% - 1.50% 24,000 Putable advance, maturing Oct 2029 1.03% 10,000 N/A - Advance structured note, payments due 7.47% 623 7.47% 660 Total $ 17,623 $ 30,010 A summary of the scheduled maturities of FHLB advances follows: December 31, 2019 Weighted Average Rate Amount 2020 7.47% $ 39 2021 1.45% 7,042 2022 7.47% 46 2023 7.47% 49 2024 7.47% 53 Thereafter 1.27% 10,394 Total $ 17,623 Actual maturities may differ from the scheduled principal maturities due to call options on the various advances. The Company has a master contract agreement with the FHLB that provides for borrowing up to the lesser of 22.22 times the FHLB stock owned, a determined percentage of the book value of the Company’s qualifying real estate loans, or a determined percentage of the Company’s assets. The FHLB provides both fixed and floating rate advances. Floating rates are tied to short-term market rates of interest such as London InterBank Offered Rate (LIBOR), federal funds, or Treasury bill rates. FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. The Company had pledged approximately $125,483 at December 31, 2019, and $151,708 at December 31, 2018 of qualifying loans. FHLB advances were also secured by $913 at December 31, 2019 and $1,261 at December 31, 2018 of FHLB stock owned by the Company. At December 31, 2019 and 2018, the Company’s available and unused portion of this borrowing agreement totaled $107,019 and $121,086, respectively. Additionally, at December 31, 2019 we had a $10.0 million federal funds rate line of credit with the BMO Harris Bank, none of which was drawn at December 31, 2019, as well as a line of credit at the Federal Reserve. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 10 — Employee Benefit Plan The Company sponsors a 401(k)-profit sharing plan covering substantially all employees certain age and minimum service requirements. The Company may then match a discretionary percentage of each eligible participant’s contribution. Matching contributions were $356 and $338 for the years ended December 31, 2019 and 2018, respectively . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 — Income Taxes The provision for income taxes included in the accompanying consolidated financial statements consists of the following components: Years ended December 31, 2019 2018 Current taxes: Federal $ (26) $ (397) State (3) - Total current taxes (29) (397) Deferred taxes: Federal 19 263 State 1 (43) Total deferred taxes 20 220 Credit for income taxes $ (9) $ (177) Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax asset in the accompanying balance sheet includes the following amounts of deferred tax assets and liabilities: As of December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 542 $ 884 Deferred compensation 692 658 Accrued employee benefits 136 229 Loss carryforwards 4,743 4,080 Unrealized (gain) loss on available for sale securities (39) 586 Premises and equipment 11 262 Other 14 91 Total deferred tax assets 6,099 6,790 Deferred tax liabilities: Loan fees $ 82 $ 136 Premises and equipment - - Mortgage servicing rights 589 570 FHLB stock dividends 28 38 Total deferred tax liabilities 699 744 Net deferred tax asset 5,400 6,046 NOTE 11 — Income Taxes – (continued) The Company has federal loss carryforwards of approximately $14,308 as of December 31, 2019. These losses begin to expire in 2029. Under the Tax Cuts and Jobs Act, for federal losses originating in tax years after January 1, 2018, the Company is allowed an indefinite carryforward period limited to 80% of each subsequent year’s net income. The Company has state net operating loss carryforwards totaling approximately $24,455 that may be applied against future state taxable income and begin to expire in 2024 as of December 31, 2019. Deferred tax assets are deferred tax consequences attributable to deductible temporary differences and carryforwards. After the deferred tax asset has been measured using the applicable enacted tax rate and provisions of the enacted tax law, it is then necessary to assess the need for a valuation allowance. A valuation allowance is needed when, based on the weight of the available evidence, it is more likely than not that some portion of the deferred asset will not be realized. As required by generally accepted accounting principles, available evidence is weighted heavily on cumulative losses, with less weight placed on future projected profitability. Realization of the deferred tax asset is dependent on whether there will be sufficient future taxable income of the appropriate character in the period during which deductible temporary differences reverse or within the carryforward periods available under tax law. A summary of the sources of differences between income taxes at the federal statutory rate and the provision (credit) for income taxes follows: Years ended December 31, 2019 2018 Amount % of Pretax Income Amount % of Pretax Income Reconciliation of statutory to effective rates: Federal income taxes at statutory rate $ 92 21.00% $ (41) 21.00% Adjustments for: State income taxes, net of federal income tax benefit - 0.00% (34) 17.34% Increase in cash value of life insurance (117) -26.70% (142) 72.73% Change in valuation allowance - 0.00% - 0.00% Other 16 3.65% 40 -20.41% Provision (credit) for income taxes $ ( 9) -2.05% $ (177) 90.66% With few exceptions, the Company is no longer subject to federal or state examinations by taxing authorities for years before 2016 for Federal and 2015 for State. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 — Commitments and Contingencies In the normal course of business, the Company may be involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the Company’s consolidated financial statements. No legal proceedings existed at December 31, 2019. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These instruments include commitments to extend credit and commitments to sell loans. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance- sheet instruments. Since some of the commitments are expected to expire without being drawn upon, and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements of the Company. The contract amounts of credit-related financial instruments at December 31, 2019 and 2018 are summarized below: December 31, 2019 Fixed Rate Variable Rate Total Commitments to extend credit $ 21,745 $ 36,108 $ 57,853 Standby letters of credit, variable - - - Credit enhancement under the FHLB of Chicago 841 - 841 Commitments to sell loans 10,917 - 10,917 Overdraft protection program commitments 4,129 - 4,129 December 31, 2018 Fixed Rate Variable Rate Total Commitments to extend credit $ 19,255 $ 37,258 $ 56,513 Standby letters of credit, variable - 33 33 Credit enhancement under the FHLB of Chicago 612 - 612 Commitments to sell loans 6,617 - 6,617 Overdraft protection program commitments 3,894 - 3,894 Commitments to extend credit are agreements to lend to a customer at fixed or variable rates as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable; inventory; property, plant, and equipment; real estate; and stocks and bonds. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit issued have expiration dates within one year. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments. Standby letters of credit are not reflected in the consolidated financial statements, since recording the fair value of these guarantees would not have a significant impact on the consolidated financial statements. The Company participates in the FHLB Mortgage Partnership Finance Program (the “Program”). In addition to entering into forward commitments to sell mortgage loans to a secondary market agency, the Company enters into firm commitments to deliver loans to the FHLB through the Program. Under the Program, loans are funded by the FHLB, and the Company receives an agency fee reported as a component of gain on sale of loans. The Company had $7,590 of commitments to deliver loans through the Program as of December 31, 2019. Once delivered to the Program, the Company provides a contractually agreed-upon credit enhancement and performs servicing of the loans. Under the credit enhancement, the Company is liable for losses on loans delivered to the Program after application of any mortgage insurance and a contractually agreed-upon credit enhancement provided by the Program subject to an agreed-upon maximum. The Company receives a fee for this credit enhancement. The Company records a liability for expected losses in excess of anticipated credit enhancement fees. As of December 31, 2019, and 2018, the Company had no liability outstanding. Unfunded commitments under overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties Abstract | |
Concentration of Credit Risk | NOTE 13 — Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents, investments, and loans. The Company’s cash and cash equivalents are held in demand accounts with various institutions. The Company’s investments are held in a variety of interest-bearing investments including obligations from the U.S. government and government sponsored agencies and certificates of deposit. Such deposits are generally in excess of insured limits. The Company has not experienced any historical losses on its deposits of cash and cash equivalents. Practically all of the Company’s loans and commitments have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the ability of their debtors to honor their contracts is dependent on the economic conditions of the counties surrounding the Company. The concentration of credit by type of loan is set forth in Note 4. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Ownership Plan | NOTE 14 — Employee Stock Ownership Plan The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the Reorganization, effective January 1, 2019. Eligible employees become 20% vested in their accounts after 1 year of service, 40% vested after 2 years of service, 60% vested after 3 years of service, 80% vested after 4 years of service, and 100% vested after 5 or more years of service, or earlier, upon death, disability or attainment of normal retirement age. The ESOP purchased 175,528 shares of the Company’s common stock, which was funded by a loan from the Company. Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as contra-equity account in the stockholders’ equity of the Company. Shares are to be released as debt payments are made by the ESOP to the loan. The ESOP’s sources of repayment of the loan can included dividends, if any, on the unallocated stock held by the ESOP, and discretionary contributions from the Company to the ESOP and earnings thereon. Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheet. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to stockholders’ equity. The Company recognized $71 in compensation expense for the year ended December 31, 2019. The following table provides the allocated and unallocated shares of common stock associated with the ESOP. Year ended December 31, 2019 (dollars in thousands) Shares committed to be released $ 7,021 Total unallocated shares 168,507 Total ESOP shares 175,528 Fair value of unallocated shares (based on $10.78 share price as of December 31, 2019) $ 1,817 The fair value of the unallocated shares is based on a per share price of $10.78 on December 31, 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 15 — Related-Party Transactions A summary of loans to directors, executive officers, and their affiliates follows: Years ended December 31, 2019 2018 Beginning balance $ 1,289 $ 1,477 New loans 378 62 Repayments (495) (250) Ending balance $ 1,172 $ 1,289 Deposits from directors, executive officers, and their affiliates totaled $1,686 and $938 at December 31, 2019 and 2018, respectively. The Company utilizes the services of law firms in which certain of the Company’s directors are partners. Fees paid to the firms were $43 and $47 during the years ended December 31, 2019 and 2018, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 16— Fair Value Accounting standards describe three levels of inputs that may be used to measure fair value (the fair value hierarchy). The level of an asset or liability within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement of that asset or liability. Following is a brief description of each level of the fair value hierarchy: Level 1 — Fair value measurement is based on quoted prices for identical assets or liabilities in active markets. Level 2 — Fair value measurement is based on: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; or (3) valuation models and methodologies for which all significant assumptions are or can be corroborated Level 3 — Fair value measurement is based on valuation models and methodologies that incorporate at least one significant assumption that cannot be corroborated by observable market data. Level 3 measurements reflect the Company’s estimates about assumptions market participants would use in measuring fair value of the asset or liability. Some assets and liabilities, such as securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as impaired loans, may be measured at fair value on a nonrecurring basis. Following is a description of the Company’s valuation methodology and significant inputs used for each asset and liability measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy. Securities — Marketable equity securities and available for sale securities may be classified as Level 1 or Level 2 measurements within the fair value hierarchy. Level 1 securities include equity securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, corporate debt securities, and mortgage related securities. The fair value measurement of a Level 2 security is obtained from an independent pricing service and is based on recent sales of similar securities and other observable market data. Loans — Loans are not measured at fair value on a recurring basis. However, loans considered to be impaired may be measured at fair value on a nonrecurring basis. The fair value measurement of an impaired loan that is collateral dependent is based on the fair value of the underlying collateral. Independent appraisals are obtained that utilize one or more valuation methodologies-typically they will incorporate a comparable sales approach and an income approach. Management routinely evaluates the fair value measurements of independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recent appraised value. Such adjustments are usually significant, which results in a Level 3 classification. All other impaired loan measurements are based on the present value of expected future cash flows discounted at the applicable effective interest rate and, thus, are not fair value measurements. NOTE 16 — Fair Value – (continued) Assets measured at fair value on a recurring basis are summarized below: Recurring Fair Value Measurements Using December 31, 2019 Level 1 Level 2 Level 3 Total Marketable equity securities $ 2,553 $ - $ - $ 2,553 Available for sale securities: Obligations of states and political subdivisions $ - $ 9,826 $ - $ 9,826 Government-sponsored mortgage-backed securities - 57,034 - 57,034 Corporate collateralized mortgage obligations - 289 - 289 Asset-backed securities - 2,465 - 2,465 Certificates of deposit - 1,761 - 1,761 Total $ 2,553 $ 71,375 $ - $ 73,928 Recurring Fair Value Measurements Using December 31, 2018 Level 1 Level 2 Level 3 Total Trading securities $ 2,429 $ - $ - $ 2,429 Available for sale securities: Obligations of states and political subdivisions $ - $ 11,169 $ - $ 11,169 Government-sponsored mortgage-backed securities - 50,375 - 50,375 Corporate collateralized mortgage obligations - 410 - 410 Asset-backed securities - 3,531 - 3,531 Certificates of deposit - 246 - 246 Total $ 2,429 $ 65,731 $ - $ 68,160 Information regarding the fair value of assets measured at fair value on a nonrecurring basis follows: Recurring Fair Value Measurements Using Level 1 Level 2 Level 3 Total December 31, 2019 Loans $ - $ - $ - $ - December 31, 2018 Loans $ - $ - $ 85 $ 85 Loans with a carrying amount of $67 were considered impaired and were written down to their estimated fair value of $0 as of December 31, 2019. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $67 as of December 31, 2019. Loans with a carrying amount of $97 were considered impaired and were written down to their estimated fair value of $85 as of December 31, 2018. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $12. Quantitative information about nonrecurring Level 3 fair value measurements follows: Fair Value Valuation Technique Significant Unobservable Input(s) Range/Weighted Average December 31, 2019 Impaired loans $ - Market and/or income approach Management discount to appraised values 10-20% December 31, 2018 Impaired loans $ 85 Market and/or income approach Management discount to appraised values 10-20% NOTE 16 — Fair Value – (continued) The Company estimates fair value of all financial instruments regardless of whether such instruments are measured at fair value. The following methods and assumptions were used by the Company to estimate fair value of financial instruments not previously discussed. Cash and cash equivalents — Fair value approximates the carrying value. Loans held for sale — Fair value is based on commitments on hand from investors or prevailing market prices. Loans — Fair value of variable rate loans that reprice frequently is based on carrying values. Fair value of other loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings. Fair value of impaired and other non-performing loans is estimated using discounted expected future cash flows or the fair value of the underlying collateral, if applicable. FHLB stock — Fair value is the redeemable (carrying) value based on the redemption provisions of the Federal Home Loan Bank. Accrued interest receivable and payable — Fair value approximates the carrying value. Cash value of life insurance — Fair value is based on reported values of the assets. Deposits and advance payments by borrowers for taxes and insurance — Fair value of deposits with no stated maturity, such as demand deposits, savings, and money market accounts, including advance payments by borrowers for taxes and insurance, by definition, is the amount payable on demand on the reporting date. Fair value of fixed rate time deposits is estimated using discounted cash flows applying interest rates currently being offered on similar time deposits. FHLB Advances — Fair value of fixed rate, fixed term borrowings is estimated by discounting future cash flows using the current rates at which similar borrowings would be made. Fair value of borrowings with variable rates or maturing within 90 days approximates the carrying value of those borrowings. The carrying value and estimated fair value of financial instruments follow: December 31, 2019 Carrying Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 11,707 $ 11,707 $ - $ - Available for sale securities 71,375 - 71,375 - Loans held for sale 685 - 685 - Loans 310,674 - - 310,993 Accrued interest receivable 963 963 - - Cash value of life insurance 13,085 - - 13,085 FHLB stock 913 - - 913 Marketable securities 2,553 2,553 - - Financial liabilities: Deposits 344,596 202,180 - 142,708 Advance payments by borrowers for taxes and insurance 1,681 1,681 - - FHLB advances 17,623 - - 17,976 Accrued interest payable 385 385 - - NOTE 16 — Fair Value – (continued) December 31, 2018 Carrying Value Level 1 Level 2 Level 3 Financial assets: (in thousands) Cash and cash equivalents $ 7,923 $ 7,923 $ - $ - Available for sale securities 65,731 - 65,731 - Loans held for sale 771 - 771 - Loans 369,830 - - 362,233 Accrued interest receivable 1,106 1,106 - - Cash value of life insurance 13,400 - - 13,400 FHLB stock 1,261 - - 1,261 Trading securities 2,429 2,429 - - Financial liabilities: Deposits 406,137 223,860 - 180,703 Advance payments by borrowers for taxes and insurance 1,240 1,240 - - FHLB advances 30,010 - - 29,499 Accrued interest payable 372 372 - - Limitations — The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based on quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts, nor is it recorded as an intangible asset on the balance sheets. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Equity and Regulatory Matters
Equity and Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Equity and Regulatory Matters | NOTE 17 — Equity and Regulatory Matters The Bank is subject to various regulatory capital requirements administered by federal and state banking agencies. 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 Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1, and Total capital to risk-weighted assets and of Tier 1 capital to average assets. It is management’s opinion, as of December 31, 2019, that the Bank met all applicable capital adequacy requirements. As of December 31, 2019, the Bank is categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table. There are no conditions or events since December 31, 2019 that management believes have changed the category. NOTE 17 — Equity and Regulatory Matters – (continued) The Bank’s actual capital amounts and ratios are presented in the following tables: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 PyraMax Bank Leverage (Tier 1) $ 46,316 10.7% $ 17,392 4.0% $ 21,740 5.0% Risk-based: Common Tier 1 46,316 13.5% 15,391 4.5% 22,232 6.5% Tier 1 46,316 13.5% 20,522 6.0% 27,362 8.0% Total 48,316 14.1% 27,362 8.0% 34,203 10.0% December 31, 2018 PyraMax Bank Leverage (Tier 1) $ 35,955 7.5% $ 19,110 4.0% $ 23,887 5.0% Risk-based: Common Tier 1 35,955 10.0% 16,153 4.5% 23,333 6.5% Tier 1 35,955 10.0% 21,538 6.0% 28,717 8.0% Total 39,217 10.9% 28,717 8.0% 35,897 10.0% |
Deferred Compensation
Deferred Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Disclosure of Deferred Compensation | NOTE 18 — Deferred Compensation The Company has obligations to certain retired and active employees and directors under deferred compensation plans. A liability is recorded for the value of the deferred compensation obligations amounting to $2,553 and $2,429 at December 31, 2019 and 2018, respectively. The Company holds marketable equity securities (trading securities as of December 31, 2018) consisting of mutual fund investments and common stock deferred under the plans, which are held in a Rabbi Trust. The Company may sell these securities on a periodic basis in order to pay retirement benefits to plan retires. There are no gain or losses recognized from the sales of marketable equity securities. Benefits paid total $111 and $92 for the years ended December 31, 2019 and 2018, respectively. The Company has entered into various salary continuation agreements with key officers. The agreements provide for the payment of specified amounts upon each employee’s retirement or death. The liability outstanding under the agreements was $362 and $438 at December 31, 2019 and 2018, respectively. The amount charged to operations was $37 and $48 for the years ended December 31, 2019 and 2018, respectively. The Company is the beneficiary of insurance policies on the lives of certain key employees. These policies had a cash value of $13,085 at and $13,400 at December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, the Company received proceeds from life insurance of $872, and recorded a gain on life insurance benefit received in the amount of $158. During the year ended December 31, 2018, the Company received proceeds from life insurance of $856, and recorded a gain on life insurance benefit received in the amount of $120. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | NOTE 19 — Earnings Per Share (EPS) Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for weighted average unallocated ESOP shares, during the applicable period. Diluted earnings per share is computed using the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Antidilutive options are disregarded in earnings per share calculations. Earnings per common share for the year ended December 31, 2019 is presented in the following table. Earnings per common share for the year ended December 31, 2018 is not presented as the Company’s initial stock offering was completed on January 8, 2019. Year ended December 31, 2019 (dollars in thousands) Net income $ 449 Weighted average shares outstanding for basic EPS Weighted average shares outstanding 4,876,677 Less: Weighted average unallocated ESOP shares 172,895 Subtotal 4,703,782 Additional dilutive shares - Weighted average shares outstanding for basic and dilutive EPS 4,703,782 Basic and diluted income (loss) per share $ 0.10 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 20 — Subsequent Event On January 31, 2020, the Board of Directors of the Company adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 109,725 shares of its common stock, or approximately 5% of the current outstanding shares (excluding shares held by 1895 Bancorp of Wisconsin, MHC). Repurchases will be made no sooner than the termination of the Company’s regular quarterly trading blackout after the Company publicly releases its results of operations for the period ended December 31, 2019, and consistent with the Company’s trading policies. The Company is not obligated to repurchase any particular number of shares or any shares in any specific time period. Shares may be repurchased in open market or private transactions, through block trades, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. The repurchase program has no expiration date. On March 27, 2020, shareholders voted to approve and the Board of Directors has adopted, the 1895 Bancorp of Wisconsin, Inc. 2020 Equity Incentive Plan to provide officers, employees and directors of 1895 Bancorp of Wisconsin, Inc. and PyraMax Bank, FSB with additional incentives to promote the growth and performance of 1895 Bancorp of Wisconsin, Inc. and PyraMax Bank, FSB. The current Coronavirus pandemic has had an economic impact on the United States and the international community. While the Company has not experienced a material adverse impact as of the date of these financial statements, the future impact, if any, cannot be determined. Management has reviewed the Company’s operations for potential disclosure or financial statement impacts related to events occurring after December 31, 2019, but prior to the release of these consolidated financial statements. Based on the results of this review, no other subsequent event disclosures or financial statement impacts to these consolidated financial statements are required. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization 1895 Bancorp of Wisconsin, Inc. (the “Company”) was formed in January 2019 to serve as the mid-tier stock holding company for PyraMax Bank, FSB (the “Bank”) upon the reorganization of the Bank into the two-tier mutual holding company structure. The reorganization was completed on January 8, 2019. Prior to January 8, 2019, the Company had no assets or liabilities and had not conducted any business activities other than organizational activities. Accordingly, the audited consolidated financial statements and other financial information contained in these consolidated financial statements relate solely to the Bank for periods prior to January 8, 2019. On January 8, 2019, PyraMax Bank, FSB (the “Bank”) converted to a stock savings bank and is now organized in the mutual holding company structure. The Bank issued all of its outstanding stock to the Company, which sold 2,145,738 shares of common stock to the public at $10.00 per share, including 175,528 shares purchased by the Bank’s employee stock ownership plan (“ESOP”). In connection with the reorganization, the Company also issued 48,767 shares of common stock to 1895 Bancorp of Wisconsin Community Foundation, Inc. and 2,682,172 shares of common stock to 1895 Bancorp of Wisconsin, MHC, the federally-chartered mutual holding company. The cost of the reorganization and the issuing of the common stock totaling $1,816 were deferred and deducted from the sales proceeds of the offering. The Bank operates as a full-service financial institution, providing a full range of financial services, including the granting of commercial, residential, and consumer loans and acceptance of deposits from individual customers and small businesses in the metropolitan Milwaukee, Wisconsin, area. The Bank is subject to competition from other financial and nonfinancial institutions providing financial products. In addition, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies. Jumpstart Our Business Startups Act The Jumpstart Our Business Startups Act (the JOBS Act), which was signed into law on April 5, 2012, has made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.0 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as an “emerging growth company” and believes that it will continue to qualify as an “emerging growth company” until five years from the completion of the stock offering. As an “emerging growth company,” the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and 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 in the near term relate to the determination of the allowance for loan losses, the fair values of securities, the fair values of financial instruments, mortgage servicing rights, and the valuation of deferred income tax assets. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (Topic 606), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. NOTE 1 — Summary of Significant Accounting Policies – (continued) The Company completed its overall assessment of revenue streams and related contracts affected by the Topic 606 guidance. The majority of the Company’s revenue-generating transactions are not subject to Topic 606, including all interest and dividend income generated from financial instruments. Certain noninterest income items, including loan servicing income, gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated to not fall within the scope of Topic 606. Elements of noninterest income that is within the scope Topic 606 are as follows: Fee income on deposit accounts – Revenue from fees charged on deposit accounts is earned through deposit-related services; as well as account maintenance and management, overdraft, non-sufficient funds and other deposit-related fees. Revenue is recognized either over time, corresponding with the deposit accounts’ monthly cycle, or at a point in time when transactional based fees and services occur. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the new revenue standards. Recognition of revenue under Topic 606 did not materially change the timing or magnitude of revenue recognition Sale of foreclosed assets – Revenue from the sale of foreclosed assets is recognized at a point in time when control of the promised asset transfers to the buyer. The Company uses the following indicators to determine when control of a promised asset has been transferred: the seller has a present right to payment for the asset; the buyer has legal title of the asset; the seller has transferred physical possession of the asset; the buyer has the significant risks and rewards of ownership of the asset; or the buyer has accepted the asset. Recognition of revenue under Topic 606 did not materially change the timing or magnitude of revenue recognition Merchant card arrangement fees – Customers use a Bank-issued debit or credit card to purchase goods and services, and the Company earns interchange fees on these transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. There are no contingent debit or credit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Recognition of revenue under Topic 606 did not materially change the timing or magnitude of revenue recognition |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, interest-bearing and non-interest-bearing accounts in other financial institutions, and federal funds sold, all of which have original maturities of three months or less. |
Securities | Securities Debt securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital requirements, and other similar factors. Securities classified as available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. Interest and dividends on available securities are recognized as income when earned. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated lives of the securities. Mutual fund investments are held as trading securities until January 1, 2019 upon adoption of ASU 2016-01, and carried at fair value, with changes in fair value reported in net income. These mutual fund investments were reclassified as marketable equity securities as of January 1, 2019 upon adoption of ASU 2016-01 and included in other assets on the balance sheet. Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient enough to allow for any anticipated recovery in fair value. |
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 in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan sold. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for deferred loan fees and costs, charge-offs, and an allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. When loans are placed on non-accrual status or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable as of the balance sheet date. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. In determining the adequacy of the allowance balance, the Company makes evaluations of the loan portfolio and related off-balance sheet commitments, considers current economic conditions and historical loss experience, and reviews specific problem loans and other factors. When establishing the allowance for loan losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and their relevant risk characteristics are as follows: Commercial real estate : These loans are dependent on the industries tied to these loans. Commercial real estate loans are secured primarily by office and industrial buildings, warehouses, small retail shopping facilities, and various special-purpose properties, including hotels and restaurants. Financial information is obtained from borrowers and/or the individual project to evaluate cash flow sufficiency to service debt and is periodically updated during the life of the loan. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market, such as geographic location and/or property type, Land development: These loans are secured by vacant land and/or property that are in the process of improvement, including (a) land development preparatory to erecting vertical improvements or (b) the on-site construction of industrial, commercial, residential, or farm buildings. Repayment of these loans can be dependent on the sale of the property to third parties or the successful completion of the improvements by the builder for the end user. In the event a loan is made on property that is not yet improved for the planned development, there is the risk that necessary approvals will not be granted or will be delayed. Construction loans also run the risk that improvements will not be completed on time or in accordance with specifications and projected costs. Commercial Other: This loan category is comprised of commercial and industrial loans. Commercial and industrial loans are extended primarily to small and middle market customers. Such credits typically comprise working capital loans, asset acquisition loans, and loans for other business purposes. Loans to closely held businesses are generally guaranteed in full by the owners of the business. Commercial and industrial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for commercial and industrial loans. Residential real estate: These loans are generally to individuals and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations, the underlying collateral, and the loan to collateral value. Underwriting standards for residential real estate owner-occupied loans are heavily influenced by statutory requirements, which include, but are not limited to, loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. Consumer: These loans may take the form of installment loans, demand loans, or single payment loans, and are extended to individuals for household, family, and other personal expenditures. These loans generally include direct consumer automobile loans and credit card loans. Also included in this category are junior liens on 1-4 family residential properties. These loans are generally smaller in size and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations. NOTE 1 — Summary of Significant Accounting Policies – (continued) Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the loan portfolio, composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. A loan is impaired when, based on current information, it is probable that the Company will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability based on information available to them at the time of their examination. |
Troubled Debt Restructurings | Troubled Debt Restructurings Loans are accounted for as troubled debt restructurings when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. Troubled debt restructurings are considered impaired loans. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Provisions for depreciation are computed on straight-line method over the estimated useful lives of the assets. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing rights are recognized as separate assets when rights are acquired through sale of mortgage loans. Mortgage servicing rights acquired through sale of loans are recognized as a component of loan servicing income and are recorded at fair value. The fair value of mortgage servicing rights is estimated using a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, the custodial earnings rate, ancillary income, default rates and losses, and prepayment speeds. The fair value of mortgage servicing rights may change because of changes in the discount rates, prepayment expectations, default rates, and other factors. Mortgage servicing rights are amortized into income in proportion to and over the period of the estimated future net servicing income of the underlying loans. Mortgage servicing rights are evaluated for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation includes stratifying the mortgage servicing rights by predominant characteristics such as interest rates and terms and estimating fair value of each stratum. Impairment is recognized through a valuation allowance for an individual stratum to the extent that fair value is less than the carrying amount for the stratum. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Company’s investment in Federal Home Loan Bank (“FHLB”) stock is carried at cost. The Company is required to hold the stock as a member of the FHLB, and transfer of the stock is substantially restricted. The stock is pledged as collateral for outstanding FHLB advances. The stock is evaluated for impairment on an annual basis. |
Foreclosed Assets | Foreclosed Assets Assets acquired through or in lieu of loan foreclosure are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net foreclosed asset expense. There were no foreclosed assets as of December 31, 2019 and 2018, respectively. There were approximately $240 and $161 of residential real estate loans in process of foreclosure at December 31, 2019 and 2018, respectively. |
Cash value of life insurance | Cash value of life insurance The Company purchased bank owned life insurance on the lives of certain employees. The Company is the beneficiary of the life insurance policies. The cash surrender value of life insurance is reported at the amount that would be received in cash if the policies were surrendered. Increases in the cash value of the policies and proceeds of death benefits received are recorded in noninterest income. The increase in cash value of life insurance is not subject to income taxes, as long as the Company has the intent and ability to hold the policies until the death benefits are received. |
Income Taxes | Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to the allowances for loan losses, deferred compensation, depreciation, FHLB stock dividends and non-accrual interest. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The tax effects from an uncertain tax position can be recognized in the consolidated financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its consolidated financial statements. The Company’s policy is to recognize interest and penalties related to income tax issues as components of income tax expense. During the periods shown, the Company did not recognize any interest or penalties related to income tax expense in its statements of operations. |
Employee Benefit Plans | Employee Benefit Plans The Company has employee benefit plans for qualified employees. The Company’s policy is to fund contributions as accrued. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments including commitments to extend credit, unfunded commitments under lines of credit, and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they become payable. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Rate Lock Commitments | Rate Lock Commitments The Company enters into commitments to originate loans, whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in other assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements and for fixed-rate commitments also considers the difference between current levels of interest rates and the committed rates. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) is shown on the statements of comprehensive income (loss). The Company’s accumulated other comprehensive loss is composed of the unrealized loss on securities available for sale, net of tax and is shown on the statements of changes in equity. Reclassification adjustments out of other comprehensive loss for gains realized on sales of securities available for sale comprise the entire balance of “net gain on sale of securities” on the statements of operations. As part of this reclassification, income tax expense of approximately $0 and $18 was recognized for the years ended December 31, 2019 and 2018, respectively, in “provision (credit) for income taxes” on the statements of operations. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2018 consolidated financial statements to conform to the 2019 classifications. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company recently adopted the following Accounting Standards Updates (ASU) issued by the Financial Accounting Standards Board (FASB): ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. This ASU applies to all entities that hold financial assets or owe financial liabilities, and is intended to provide more useful information on the recognition, measurement, presentation and disclosure of financial instruments. Among other things, this ASU 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminates the requirement to disclose the fair values of financial instruments measured at amortized cost for entities that are not public business entities; 4) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the consolidated financial statements; and 5) clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This amendment supersedes and replaces nearly all existing revenue recognition guidance. Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company adopted this accounting standard January 1, 2019, with no material impact on the Company’s consolidated financial statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU amends previous guidance over eight specific cash flow classification issues with the objective of reducing the existing diversity in practice. Management adopted this new accounting standard on January 1, 2019, with no material impact on the Company’s consolidated financial statements. The following ASUs have been issued by the FASB and may impact the Company’s consolidated financial statements in future reporting periods. ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. On November 15, 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, amending the effective date for this standard. ASU 2016-13 will be effective for reporting periods beginning after December 15, 2022. Management has elected to defer adoption to the new effective date and is currently evaluating the impact of adopting ASU 2016-13 on the Company’s consolidated financial statements. ASU 2016-02, Leases (Topic 842). This ASU affects any entity that enters into a lease, and is intended to increase the transparency and comparability of financial reporting. The ASU requires, among other changes, a lessee to recognize on its balance sheet a lease asset and a lease liability for those leases previously classified as operating leases. The lease asset will represent the right to use the underlying asset for the lease term, and the lease liability will represent the discounted value of the required lease payments to the lessor. The ASU will also require entities to disclose key information about leasing arrangements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. On November 15, 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, amending the effective date for this standard. ASU 2016-02 will be effective for reporting periods beginning after December 15, 2021. Management has elected to defer adoption to the new effective date and is currently evaluating the impact of adopting ASU 2016-02 on the Company’s consolidated financial statements . |
Available for Sale Securities (
Available for Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Costs and Fair Value of Securities Available for Sale | Amortized costs and fair values of available for sale securities are summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated December 31, 2019 Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 9,779 $ 67 $ (20) $9,826 Government-sponsored mortgage-backed securities 56,975 416 (357) 57,034 Corporate collateralized mortgage obligations 284 5 - 289 Asset-backed securities 2,484 - (19) 2,465 Certificates of deposit 1,707 54 - 1,761 Total available for sale securities $ 71,229 $ 542 $ (396) $71,375 Gross Gross Amortized Unrealized Unrealized Estimated December 31, 2018 Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 11,348 $ 25 $ (204) $11,169 Government-sponsored mortgage-backed securities 52,363 4 (1,992) 50,375 Corporate collateralized mortgage obligations 410 1 (1) 410 Asset-backed securities 3,530 2 (1) 3,531 Certificates of deposit 249 - (3) 246 Total available for sale securities $ 67,900 $ 32 $ (2,201) $65,731 |
Summary of Gross Unrealized Losses on Securities Available-for-sale and Fair Values | The following table presents the portion of the Company’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Loss Value Loss Value Loss Obligations of states and political subdivisions $ 2,052 $ (14) $ 667 $ (6) $ 2,719 (20) Government-sponsored mortgage-backed securities 15,830 (106) 16,747 (251) 32,577 (357) Asset-backed securities 2,394 (18) 71 (1) 2,465 (19) Total $ 20,276 $ (138) $ 17,485 $ (258) $ 37,761 $ (396) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Loss Value Loss Value Loss Obligations of states and political subdivisions $ 1,567 $ (5) $ 6,909 $ (199) $ 8,476 $ (204) Government-sponsored mortgage-backed securities 29 - 49,549 (1,992) 49,578 (1,992) Corporate collateralized mortgage obligations 204 - 147 (1) 351 (1) Asset-backed securities 813 (1) - - 813 (1) Certificates of deposit - - 246 (3) 246 (3) Total $ 2,613 $ (6) $ 56,851 $ (2,195) $ 59,464 $ (2,201) |
Summary of Amortized Costs and Fair Values of Securities Available-for-sale, by Contractual Maturity | The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below: December 31, 2019 Amortized Fair Cost Value Due in one year or less $ 578 $ 578 Due after one through 5 years 6,417 6,482 Due after 5 through 10 years 3,161 3,209 Due after 10 years 1,330 1,318 Subtotal 11,486 11,587 Mortgage-related securities 57,259 57,323 Asset-backed securities 2,484 2,465 Total $ 71,229 $ 71,375 |
Summary of Proceeds from Sales of Securities Available-for-sale, as well as Gross Gains and Losses | The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for each of the periods listed below: Years ended December 31, 2019 2018 Proceeds from sales of available for sale securities $ - $ 14,392 Gross gains - 137 Gross losses - (70) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Major Classifications of Loans | Major classifications of loans are as follows: As of December 31, 2019 2018 Commercial: Real estate $ 178,882 $ 191,645 Land development 1,623 2,187 Other 34,072 30,508 Residential real estate: First mortgage 65,450 108,084 Construction 2,041 2,097 Consumer: Home equity and lines of credit 29,691 36,154 Other 611 1,914 Subtotal 312,370 372,589 Net deferred loan fees 304 503 Allowance for loan losses (2,000) (3,262) Net loans $ 310,674 $ 369,830 |
Summary of Activity in Allowance for Loan and Lease Losses | A summary of the activity in the allowance for loan losses by portfolio segment is as follows: December 31, 2019 Commercial Residential Consumer Total Beginning balance $ 1,448 $ 1,250 $ 564 $ 3,262 Provision (credit) for loan losses (222) (599) (211) (1,032) Loans charged off (214) (83) (269) (566) Recoveries of loans previously charged off 223 5 108 336 Total ending allowance balance $ 1,235 $ 573 $ 192 $ 2,000 December 31, 2018 Commercial Residential Consumer Total Beginning balance $ 1,369 $ 1,246 $ 478 $ 3,093 Provision for loan losses - - - - Loans charged off (1) - (123) (124) Recoveries of loans previously charged off 80 4 209 293 Total ending allowance balance $ 1,448 $ 1,250 $ 564 $ 3,262 |
Summary of Allowance for Loan and Lease Losses for Loans Evaluated Individually and Collectively for Impairment | Information about how loans were evaluated for impairment and the related allowance for loan losses follows: December 31, 2019 Commercial Residential Consumer Total Loans: Individually evaluated for impairment $ 6,931 $ 1,078 $ 32 $ 8,041 Collectively evaluated for impairment 207,646 66,413 30,270 304,329 Total loans $ 214,577 $ 67,491 $ 30,302 $ 312,370 Allowance for loan losses: Individually evaluated for impairment $ - $ 62 $ 5 $ 67 Collectively evaluated for impairment 1,235 511 187 1,933 Total allowance for loan losses $ 1,235 $ 573 $ 192 $ 2,000 December 31, 2018 Commercial Residential Consumer Total Loans: Individually evaluated for impairment $ 1,165 $ 1,176 $ 36 $ 2,377 Collectively evaluated for impairment 223,175 109,005 38,032 370,212 Total loans $ 224,340 $ 110,181 $ 38,068 $ 372,589 Allowance for loan losses: Individually evaluated for impairment $ - $ 6 $ 6 $ 12 Collectively evaluated for impairment 1,448 1,244 558 3,250 Total allowance for loan losses $ 1,448 $ 1,250 $ 564 $ 3,262 |
Summary of Information Regarding Impaired Loans | Information regarding impaired loans follows: Recorded Investment Principal Balance Related Allowance Average Investment Interest Recognized December 31, 2019 Loans with no related allowance for loan losses: Commercial: Real estate $ 5,840 $ 5,840 NA $ 1,824 $ 87 Land development - - NA 126 - Other 1,091 1,091 NA 488 23 Residential real estate and consumer: First mortgage 1,016 1,350 NA 1,056 18 Home equity and lines of credit 27 56 NA 29 - Total loans with no related allowance for loan losses 7,974 8,337 NA 3,523 128 Loans with related allowance for loan losses: Residential real estate and consumer: First mortgage 62 62 62 43 - Home equity and lines of credit 5 6 5 16 - Total loans with related allowance for loan losses 67 68 67 59 - Grand totals $ 8,041 $ 8,405 $ 67 $ 3,582 $ 128 December 31, 2018 Loans with no related allowance for loan losses: Commercial: Real estate $ 701 $ 701 NA $ 658 $ 40 Land development 303 303 NA 303 - Other 161 161 NA 46 2 Residential real estate and consumer: First mortgage 1,085 1,375 NA 1,235 25 Home equity and lines of credit 30 56 NA 32 - Total loans with no related allowance for loan losses 2,280 2,596 NA 2,274 67 Loans with related allowance for loan losses: Residential real estate and consumer: First mortgage 91 91 6 154 3 Home equity and lines of credit 6 6 6 124 - Total loans with related allowance for loan losses 97 97 12 278 3 Grand totals $ 2,377 $ 2,693 $ 12 $ 2,552 $ 70 |
Summary of Internal Risk Ratings of Loans | Information regarding the credit quality indicators most closely monitored for commercial loans by class follows: December 31, 2019 Pass Watch and Special Mention Substandard Total Real estate $ 168,834 $ 4,418 $ 5,630 $ 178,882 Land development - 1,623 - 1,623 Other 27,522 5,517 1,033 34,072 Total $ 196,356 $ 11,558 $ 6,663 $ 214,577 December 31, 2018 Pass Watch and Special Mention Substandard Total Real estate $ 186,303 $ 4,403 $ 939 $ 191,645 Land development 158 1,726 303 2,187 Other 25,939 4,408 161 30,508 Total $ 212,400 $ 10,537 $ 1,403 $ 224,340 |
Summary of Information Regarding the Credit Quality Indicators for Residential Real Estate and Consumer Loans | Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows: December 31, 2019 Performing Non Performing Total Residential real estate: First mortgages $ 63,760 $ 1,690 $ 65,450 Construction 2,041 - 2,041 Consumer: Home equity and lines of credit 29,548 143 29,691 Other 611 - 611 Total $ 95,960 $ 1,833 $ 97,793 December 31, 2018 Performing Non Performing Total Residential real estate: First mortgages $ 107,018 $ 1,066 $ 108,084 Construction 2,097 - 2,097 Consumer: Home equity and lines of credit 35,984 170 36,154 Other 1,914 - 1,914 Total $ 147,013 $ 1,236 $ 148,249 |
Schedule of Analysis of Past due Loans | Loan aging and non-accrual information follows: December 31, 2019 Current Loans 30-89 Days Loans 90+ Days Total Non-accrual Loans Commercial: Real estate $ 178,702 $ - $ 180 $ 178,882 $ 180 Land development 1,623 - - 1,623 - Other 33,924 148 - 34,072 - Residential real estate: First mortgage 63,854 1,059 537 65,450 1,690 Construction 2,041 - - 2,041 - Consumer: Home equity and lines of credit 29,678 13 - 29,691 143 Other 611 - - 611 - Total $ 310,433 $ 1,220 $ 717 $ 312,370 $ 2,013 Total non-accrual loans to total loans 0.64% Total non-accrual loans to total assets 0.47% December 31, 2018 Current Loans 30-89 Days Loans 90+ Days Total Non-accrual Loans Commercial: Real estate $ 191,645 $ - $ - $ 191,645 $ - Land development 1,884 - 303 2,187 303 Other 30,508 - - 30,508 16 Residential real estate: First mortgage 106,523 1,470 91 108,084 1,066 Construction 2,097 - - 2,097 - Consumer: Home equity and lines of credit 35,926 215 13 36,154 170 Other 1,912 2 - 1,914 - Total $ 370,495 $ 1,687 $ 407 $ 372,589 $ 1,555 Total non-accrual loans to total loans 0.42% Total non-accrual loans to total assets 0.32% |
Summary of Information Regarding Non-accrual Loans | Non-performing loans are as follows: Years ended December 31, 2019 2018 Non-accrual loans, other than troubled debt restructurings $ 1,416 $ 906 Non-accrual loans, troubled debt restructurings 597 649 Total non-performing loans (NPLs) $ 2,013 $ 1,555 Restructured loans, accruing $ 446 $ 459 |
Foreclosed Assets (Tables)
Foreclosed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Foreclosed Assets [Abstract] | |
Schedule of No Valuation Allowance Foreclosed Assets | A summary of the Company’s foreclosed asset activity is presented below. Years ended December 31, 2019 2018 Foreclosed assets, beginning of period $ - $ - Loans receivable transferred 134 - Gain on sales 103 - Proceeds from sales (237) Write downs - - Other - - Foreclosed assets, end of period $ - $ - |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment are stated at cost less accumulated depreciation and are summarized as follows: As of December 31, 2019 2018 Land $ 863 $ 1,408 Buildings 7,829 10,044 Leasehold improvements 633 661 Furniture and equipment 6,343 6,029 Totals 15,668 18,142 Less: Accumulated depreciation 8,987 9,979 Premises and equipment, net $ 6,681 $ 8,163 |
Schedule of Future Minimum Rental Commitments Under Non-cancelable Leases | Minimum rental commitments under non-cancelable leases, before considering available renewal options, are as follows as of December 31, 2019: 2020 $ 93 2021 20 Total $ 113 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Summary of Activity in Mortgage Servicing Rights | The following is a summary of changes in the balance of mortgage servicing rights for the periods indicated below: As of December 31, 2019 2018 Beginning balance $ 2,103 $ 2,270 Additions 527 168 Amortization (458) (335) Ending balances $ 2,172 $ 2,103 Fair value at beginning of period $ 3,371 $ 3,158 Fair value at end of period $ 2,404 $ 3,371 |
Summary of Estimated Future Amortization Expense for Mortgage Servicing Rights | The following table shows the estimated future amortization of mortgage servicing rights for the next five years. The projections of amortization expense are based on existing asset balances as of as of December 31, 2019. The actual amortization expense the Company recognizes in any given period may be significantly different depending on changes in interest rates, market conditions, and regulatory requirements. For the period ending December 31, 2020 $ 459 2021 431 2022 401 2023 373 2024 342 Thereafter 166 Total $ 2,172 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Composition of Deposits | The composition of deposits is as follows: As of December 31, 2019 2018 Non-interest bearing checking $ 62,768 $ 85,988 Interest bearing checking 25,432 25,556 Money market 65,999 59,071 Statement savings accounts 47,981 53,245 Certificates of deposit 142,416 182,277 Total $ 344,596 $ 406,137 |
Interest Expense on Deposits | Interest expense on deposits is summarized as follows: Years ended December 31, 2019 2018 Interest bearing checking $ 59 $ 52 Money market 715 424 Statement savings accounts 66 74 Certificates of deposit 3,802 3,141 Total $ 4,642 $ 3,691 |
Scheduled Maturities of Certificates of Deposit | The scheduled maturities of certificates of deposit are as follows: 2020 $ 122,772 2021 15,456 2022 2,895 2023 585 2024 708 Total $ 142,416 |
FHLB Advances and Other Borro_2
FHLB Advances and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Summary of FHLB Advances | A summary of FHLB advances follows: As of December 31, 2019 2018 Rate Amount Rate Amount (dollars in thousands) Open line of credit 1.77% $ - 2.61% $ 5,350 Fixed rate, fixed term advances 1.41% 7,000 1.13% - 1.50% 24,000 Putable advance, maturing Oct 2029 1.03% 10,000 N/A - Advance structured note, payments due 7.47% 623 7.47% 660 Total $ 17,623 $ 30,010 |
Schedule of Maturities of FHLB Advances | A summary of the scheduled maturities of FHLB advances follows: December 31, 2019 Weighted Average Rate Amount 2020 7.47% $ 39 2021 1.45% 7,042 2022 7.47% 46 2023 7.47% 49 2024 7.47% 53 Thereafter 1.27% 10,394 Total $ 17,623 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes included in the accompanying consolidated financial statements consists of the following components: Years ended December 31, 2019 2018 Current taxes: Federal $ (26) $ (397) State (3) - Total current taxes (29) (397) Deferred taxes: Federal 19 263 State 1 (43) Total deferred taxes 20 220 Credit for income taxes $ (9) $ (177) |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax asset in the accompanying balance sheet includes the following amounts of deferred tax assets and liabilities: As of December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 542 $ 884 Deferred compensation 692 658 Accrued employee benefits 136 229 Loss carryforwards 4,743 4,080 Unrealized (gain) loss on available for sale securities (39) 586 Premises and equipment 11 262 Other 14 91 Total deferred tax assets 6,099 6,790 Deferred tax liabilities: Loan fees $ 82 $ 136 Premises and equipment - - Mortgage servicing rights 589 570 FHLB stock dividends 28 38 Total deferred tax liabilities 699 744 Net deferred tax asset 5,400 6,046 |
Schedule of Effective Income Tax Rate Reconciliation | A summary of the sources of differences between income taxes at the federal statutory rate and the provision (credit) for income taxes follows: Years ended December 31, 2019 2018 Amount % of Pretax Income Amount % of Pretax Income Reconciliation of statutory to effective rates: Federal income taxes at statutory rate $ 92 21.00% $ (41) 21.00% Adjustments for: State income taxes, net of federal income tax benefit - 0.00% (34) 17.34% Increase in cash value of life insurance (117) -26.70% (142) 72.73% Change in valuation allowance - 0.00% - 0.00% Other 16 3.65% 40 -20.41% Provision (credit) for income taxes $ ( 9) -2.05% $ (177) 90.66% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Contract Amounts of Credit-related Financial Instruments | The contract amounts of credit-related financial instruments at December 31, 2019 and 2018 are summarized below: December 31, 2019 Fixed Rate Variable Rate Total Commitments to extend credit $ 21,745 $ 36,108 $ 57,853 Standby letters of credit, variable - - - Credit enhancement under the FHLB of Chicago 841 - 841 Commitments to sell loans 10,917 - 10,917 Overdraft protection program commitments 4,129 - 4,129 December 31, 2018 Fixed Rate Variable Rate Total Commitments to extend credit $ 19,255 $ 37,258 $ 56,513 Standby letters of credit, variable - 33 33 Credit enhancement under the FHLB of Chicago 612 - 612 Commitments to sell loans 6,617 - 6,617 Overdraft protection program commitments 3,894 - 3,894 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Ownership Plan (ESOP) Disclosures | The following table provides the allocated and unallocated shares of common stock associated with the ESOP. Year ended December 31, 2019 (dollars in thousands) Shares committed to be released $ 7,021 Total unallocated shares 168,507 Total ESOP shares 175,528 Fair value of unallocated shares (based on $10.78 share price as of December 31, 2019) $ 1,817 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Loans to Directors, Executive Officers and Affiliates | A summary of loans to directors, executive officers, and their affiliates follows: Years ended December 31, 2019 2018 Beginning balance $ 1,289 $ 1,477 New loans 378 62 Repayments (495) (250) Ending balance $ 1,172 $ 1,289 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: Recurring Fair Value Measurements Using December 31, 2019 Level 1 Level 2 Level 3 Total Marketable equity securities $ 2,553 $ - $ - $ 2,553 Available for sale securities: Obligations of states and political subdivisions $ - $ 9,826 $ - $ 9,826 Government-sponsored mortgage-backed securities - 57,034 - 57,034 Corporate collateralized mortgage obligations - 289 - 289 Asset-backed securities - 2,465 - 2,465 Certificates of deposit - 1,761 - 1,761 Total $ 2,553 $ 71,375 $ - $ 73,928 Recurring Fair Value Measurements Using December 31, 2018 Level 1 Level 2 Level 3 Total Trading securities $ 2,429 $ - $ - $ 2,429 Available for sale securities: Obligations of states and political subdivisions $ - $ 11,169 $ - $ 11,169 Government-sponsored mortgage-backed securities - 50,375 - 50,375 Corporate collateralized mortgage obligations - 410 - 410 Asset-backed securities - 3,531 - 3,531 Certificates of deposit - 246 - 246 Total $ 2,429 $ 65,731 $ - $ 68,160 |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | Information regarding the fair value of assets measured at fair value on a nonrecurring basis follows: Recurring Fair Value Measurements Using Level 1 Level 2 Level 3 Total December 31, 2019 Loans $ - $ - $ - $ - December 31, 2018 Loans $ - $ - $ 85 $ 85 |
Schedule of Quantitative Information about Nonrecurring Level 3 Fair Value Measurements | Quantitative information about nonrecurring Level 3 fair value measurements follows: Fair Value Valuation Technique Significant Unobservable Input(s) Range/Weighted Average December 31, 2019 Impaired loans $ - Market and/or income approach Management discount to appraised values 10-20% December 31, 2018 Impaired loans $ 85 Market and/or income approach Management discount to appraised values 10-20% |
Summary of Carrying Values and Estimated Fair Values of Financial Instruments | The carrying value and estimated fair value of financial instruments follow: December 31, 2019 Carrying Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 11,707 $ 11,707 $ - $ - Available for sale securities 71,375 - 71,375 - Loans held for sale 685 - 685 - Loans 310,674 - - 310,993 Accrued interest receivable 963 963 - - Cash value of life insurance 13,085 - - 13,085 FHLB stock 913 - - 913 Marketable securities 2,553 2,553 - - Financial liabilities: Deposits 344,596 202,180 - 142,708 Advance payments by borrowers for taxes and insurance 1,681 1,681 - - FHLB advances 17,623 - - 17,976 Accrued interest payable 385 385 - - December 31, 2018 Carrying Value Level 1 Level 2 Level 3 Financial assets: (in thousands) Cash and cash equivalents $ 7,923 $ 7,923 $ - $ - Available for sale securities 65,731 - 65,731 - Loans held for sale 771 - 771 - Loans 369,830 - - 362,233 Accrued interest receivable 1,106 1,106 - - Cash value of life insurance 13,400 - - 13,400 FHLB stock 1,261 - - 1,261 Trading securities 2,429 2,429 - - Financial liabilities: Deposits 406,137 223,860 - 180,703 Advance payments by borrowers for taxes and insurance 1,240 1,240 - - FHLB advances 30,010 - - 29,499 Accrued interest payable 372 372 - - |
Equity and Regulatory Matters (
Equity and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Banks Actual and Required Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following tables: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 PyraMax Bank Leverage (Tier 1) $ 46,316 10.7% $ 17,392 4.0% $ 21,740 5.0% Risk-based: Common Tier 1 46,316 13.5% 15,391 4.5% 22,232 6.5% Tier 1 46,316 13.5% 20,522 6.0% 27,362 8.0% Total 48,316 14.1% 27,362 8.0% 34,203 10.0% December 31, 2018 PyraMax Bank Leverage (Tier 1) $ 35,955 7.5% $ 19,110 4.0% $ 23,887 5.0% Risk-based: Common Tier 1 35,955 10.0% 16,153 4.5% 23,333 6.5% Tier 1 35,955 10.0% 21,538 6.0% 28,717 8.0% Total 39,217 10.9% 28,717 8.0% 35,897 10.0% |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Earnings per common share for the year ended December 31, 2019 is presented in the following table. Earnings per common share for the year ended December 31, 2018 is not presented as the Company’s initial stock offering was completed on January 8, 2019. Year ended December 31, 2019 (dollars in thousands) Net income $ 449 Weighted average shares outstanding for basic EPS Weighted average shares outstanding 4,876,677 Less: Weighted average unallocated ESOP shares 172,895 Subtotal 4,703,782 Additional dilutive shares - Weighted average shares outstanding for basic and dilutive EPS 4,703,782 Basic and diluted income (loss) per share $ 0.10 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 08, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of shares sold | 4,876,677,000 | 2,145,738,000 | |
Per share of common stock | $ 0.01 | $ 10 | |
Number of shares contributed | 2,682,172,000 | ||
Reorganization Cost And Issuing Of Common Stock Deferred | $ 1,816,000 | ||
Foreclosed assets | 0 | $ 0 | |
Other comprehensive income (loss) tax | 0 | 18,000 | |
Residential Real Estate [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Loans in process of foreclosure | 240,000 | $ 161,000 | |
Maximum [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Annual gross revenue benchmark to qualify as emerging growth company | $ 1,000,000,000 | ||
Period for company qualifies as emerging growth company from completion of stock offering | 5 years | ||
Common Stock [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Bank's employee stock issued | 175,528,000 | ||
Charitable Foundation [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of shares contributed | 48,767,000 |
Cash and Due from Banks - Addit
Cash and Due from Banks - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash And Due From Banks [Line Items] | ||
Certificates of deposit federally insured | $ 250 | |
Federal Reserve Bank Advances [Member] | ||
Cash And Due From Banks [Line Items] | ||
Cash reserve balance required to maintain | $ 0 | $ 0 |
Available for Sale Securities -
Available for Sale Securities - Summary of Amortized Costs and Fair Value of Securities Available-for-sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | $ 71,229 | $ 67,900 |
Securities Available for Sale, Gross Unrealized Gains | 542 | 32 |
Securities Available for Sale, Gross Unrealized Losses | (396) | (2,201) |
Securities Available for Sale, Fair Value | 71,375 | 65,731 |
Obligations of States and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 9,779 | 11,348 |
Securities Available for Sale, Gross Unrealized Gains | 67 | 25 |
Securities Available for Sale, Gross Unrealized Losses | (20) | (204) |
Securities Available for Sale, Fair Value | 9,826 | 11,169 |
Government-sponsored Mortgage-backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 56,975 | 52,363 |
Securities Available for Sale, Gross Unrealized Gains | 416 | 4 |
Securities Available for Sale, Gross Unrealized Losses | (357) | (1,992) |
Securities Available for Sale, Fair Value | 57,034 | 50,375 |
Corporate Collateralized Mortgage Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 284 | 410 |
Securities Available for Sale, Gross Unrealized Gains | 5 | 1 |
Securities Available for Sale, Gross Unrealized Losses | (1) | |
Securities Available for Sale, Fair Value | 289 | 410 |
Asset-backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 2,484 | 3,530 |
Securities Available for Sale, Gross Unrealized Gains | 2 | |
Securities Available for Sale, Gross Unrealized Losses | (19) | (1) |
Securities Available for Sale, Fair Value | 2,465 | 3,531 |
Certificates of Deposit [Member] | ||
Marketable Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 1,707 | 249 |
Securities Available for Sale, Gross Unrealized Gains | 54 | |
Securities Available for Sale, Gross Unrealized Losses | (3) | |
Securities Available for Sale, Fair Value | $ 1,761 | $ 246 |
Available for Sale Securities_2
Available for Sale Securities - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)DebtInstrument | Dec. 31, 2018USD ($)DebtInstrument | |
Investments Debt And Equity Securities [Abstract] | ||
Collateral to secure customer deposit accounts | $ | $ 2,956 | $ 9,301 |
Number of debt securities with unrealized losses | DebtInstrument | 30 | 59 |
Percentage of depreciation from amortized cost bases | 1.00% | 3.60% |
Available for Sale Securities_3
Available for Sale Securities - Summary of Gross Unrealized Losses on Securities Available-for-sale and Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 20,276 | $ 2,613 |
Unrealized Loss | (138) | (6) |
Fair Value | 17,485 | 56,851 |
Unrealized Loss | (258) | (2,195) |
Fair Value | 37,761 | 59,464 |
Unrealized Loss | (396) | (2,201) |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2,052 | 1,567 |
Unrealized Loss | (14) | (5) |
Fair Value | 667 | 6,909 |
Unrealized Loss | (6) | (199) |
Fair Value | 2,719 | 8,476 |
Unrealized Loss | (20) | (204) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 15,830 | 29 |
Unrealized Loss | (106) | |
Fair Value | 16,747 | 49,549 |
Unrealized Loss | (251) | (1,992) |
Fair Value | 32,577 | 49,578 |
Unrealized Loss | (357) | (1,992) |
Collateralized Mortgage Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 204 | |
Fair Value | 147 | |
Unrealized Loss | (1) | |
Fair Value | 351 | |
Unrealized Loss | (1) | |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2,394 | 813 |
Unrealized Loss | (18) | (1) |
Fair Value | 71 | |
Unrealized Loss | (1) | |
Fair Value | 2,465 | 813 |
Unrealized Loss | $ (19) | (1) |
Certificates of Deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 246 | |
Unrealized Loss | (3) | |
Fair Value | 246 | |
Unrealized Loss | $ (3) |
Available for Sale Securities_4
Available for Sale Securities - Summary of Amortized Costs and Fair Values of Securities Available-for-sale, by Contractual Maturity (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Due in one year or less | $ 578 |
Due after one through 5 years | 6,417 |
Due after 5 through 10 years | 3,161 |
Due after 10 years | 1,330 |
Amortized Cost | 11,486 |
Total | 71,229 |
Due in one year or less | 578 |
Due after one through 5 years | 6,482 |
Due after 5 through 10 years | 3,209 |
Due after 10 years | 1,318 |
Fair Value | 11,587 |
Total | 71,375 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 57,259 |
Fair Value | 57,323 |
Asset-backed Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 2,484 |
Fair Value | $ 2,465 |
Available for Sale Securities_5
Available for Sale Securities - Summary of Proceeds from Sales of Securities Available-for-sale, as well as Gross Gains and Losses (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Proceeds from sales of available for sale securities | $ 14,392 |
Gross gains | 137 |
Gross losses | $ (70) |
Loans - Summary of Major Classi
Loans - Summary of Major Classifications of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 312,370 | $ 372,589 | |
Net deferred loan fees | 304 | 503 | |
Allowance for loan losses | (2,000) | (3,262) | $ (3,093) |
Net loans | 310,674 | 369,830 | |
Commercial [Member] | Real Estate [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 178,882 | 191,645 | |
Commercial [Member] | Land [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 1,623 | 2,187 | |
Commercial [Member] | Other Commercial Loan [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 34,072 | 30,508 | |
Residential Real Estate [Member] | First Mortgage [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 65,450 | 108,084 | |
Residential Real Estate [Member] | Construction Loans [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,041 | 2,097 | |
Consumer [Member] | Other Consumer Loan [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 611 | 1,914 | |
Consumer [Member] | Home Equity Lines Of Credit [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 29,691 | $ 36,154 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Overdrawn deposit account reclassified as loan | $ 114,000 | $ 133,000 |
Additional committed impaired loans | 0 | 0 |
Internal risk ratings of loans | 312,370,000 | 372,589,000 |
Loans 90 days or more past due and accruing interest | 0 | 0 |
Loans modified as troubled debt restructurings | 0 | 0 |
Doubtful [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Internal risk ratings of loans | 0 | 0 |
Troubled debt restructurings within past twelve months for which there was a default | $ 0 | $ 0 |
Loans - Summary of Activity in
Loans - Summary of Activity in Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Beginning balance | $ 3,262 | $ 3,093 |
Provision (credit) for loan losses | (1,032) | |
Loans charged off | (566) | (124) |
Recoveries of loans previously charged off | 336 | 293 |
Total ending allowance balance | 2,000 | 3,262 |
Commercial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Beginning balance | 1,448 | 1,369 |
Provision (credit) for loan losses | (222) | |
Loans charged off | (214) | (1) |
Recoveries of loans previously charged off | 223 | 80 |
Total ending allowance balance | 1,235 | 1,448 |
Residential [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Beginning balance | 1,250 | 1,246 |
Provision (credit) for loan losses | (599) | |
Loans charged off | (83) | |
Recoveries of loans previously charged off | 5 | 4 |
Total ending allowance balance | 573 | 1,250 |
Consumer [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Beginning balance | 564 | 478 |
Provision (credit) for loan losses | (211) | |
Loans charged off | (269) | (123) |
Recoveries of loans previously charged off | 108 | 209 |
Total ending allowance balance | $ 192 | $ 564 |
Loans - Summary of Allowance fo
Loans - Summary of Allowance for Loan and Lease Losses for Loans Evaluated Individually and Collectively for Impairment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment | $ 8,041 | $ 2,377 | |
Collectively evaluated for impairment | 304,329 | 370,212 | |
Total loans | 312,370 | 372,589 | |
Individually evaluated for impairment | 67 | 12 | |
Collectively evaluated for impairment | 1,933 | 3,250 | |
Total allowance for loan losses | 2,000 | 3,262 | $ 3,093 |
Commercial [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment | 6,931 | 1,165 | |
Collectively evaluated for impairment | 207,646 | 223,175 | |
Total loans | 214,577 | 224,340 | |
Collectively evaluated for impairment | 1,235 | 1,448 | |
Total allowance for loan losses | 1,235 | 1,448 | 1,369 |
Residential [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment | 1,078 | 1,176 | |
Collectively evaluated for impairment | 66,413 | 109,005 | |
Total loans | 67,491 | 110,181 | |
Individually evaluated for impairment | 62 | 6 | |
Collectively evaluated for impairment | 511 | 1,244 | |
Total allowance for loan losses | 573 | 1,250 | 1,246 |
Consumer [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment | 32 | 36 | |
Collectively evaluated for impairment | 30,270 | 38,032 | |
Total loans | 30,302 | 38,068 | |
Individually evaluated for impairment | 5 | 6 | |
Collectively evaluated for impairment | 187 | 558 | |
Total allowance for loan losses | $ 192 | $ 564 | $ 478 |
Loans - Summary of Information
Loans - Summary of Information Regarding Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 7,974 | $ 2,280 |
Principal Balance | 8,337 | 2,596 |
Average Investment | 3,523 | 2,274 |
Interest Recognized | 128 | 67 |
Recorded Investment | 67 | 97 |
Principal Balance | 68 | 97 |
Related Allowance | 67 | 12 |
Average Investment | 59 | 278 |
Interest Recognized | 3 | |
Recorded Investment | 8,041 | 2,377 |
Principal Balance | 8,405 | 2,693 |
Average Investment | 3,582 | 2,552 |
Interest Recognized | 128 | 70 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 5,840 | 701 |
Principal Balance | 5,840 | 701 |
Average Investment | 1,824 | 658 |
Interest Recognized | 87 | 40 |
Commercial Land Development [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 303 | |
Principal Balance | 303 | |
Average Investment | 126 | 303 |
Commercial Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,091 | 161 |
Principal Balance | 1,091 | 161 |
Average Investment | 488 | 46 |
Interest Recognized | 23 | 2 |
Residential real estate and consumer First mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,016 | 1,085 |
Principal Balance | 1,350 | 1,375 |
Average Investment | 1,056 | 1,235 |
Interest Recognized | 18 | 25 |
Recorded Investment | 62 | 91 |
Principal Balance | 62 | 91 |
Related Allowance | 62 | 6 |
Average Investment | 43 | 154 |
Interest Recognized | 3 | |
Consumer Home Equity and Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 27 | 30 |
Principal Balance | 56 | 56 |
Average Investment | 29 | 32 |
Recorded Investment | 5 | 6 |
Principal Balance | 6 | 6 |
Related Allowance | 5 | 6 |
Average Investment | $ 16 | $ 124 |
Loans - Summary of Internal Ris
Loans - Summary of Internal Risk Ratings of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | $ 312,370 | $ 372,589 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 178,882 | 191,645 |
Commercial Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 1,623 | 2,187 |
Commercial Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 34,072 | 30,508 |
Internal Credit Risk Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 214,577 | 224,340 |
Internal Credit Risk Rating [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 178,882 | 191,645 |
Internal Credit Risk Rating [Member] | Commercial Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 1,623 | 2,187 |
Internal Credit Risk Rating [Member] | Commercial Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 34,072 | 30,508 |
Internal Credit Risk Rating [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 196,356 | 212,400 |
Internal Credit Risk Rating [Member] | Pass [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 168,834 | 186,303 |
Internal Credit Risk Rating [Member] | Pass [Member] | Commercial Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 158 | |
Internal Credit Risk Rating [Member] | Pass [Member] | Commercial Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 27,522 | 25,939 |
Internal Credit Risk Rating [Member] | Watch and Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 11,558 | 10,537 |
Internal Credit Risk Rating [Member] | Watch and Special Mention [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 4,418 | 4,403 |
Internal Credit Risk Rating [Member] | Watch and Special Mention [Member] | Commercial Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 1,623 | 1,726 |
Internal Credit Risk Rating [Member] | Watch and Special Mention [Member] | Commercial Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 5,517 | 4,408 |
Internal Credit Risk Rating [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 6,663 | 1,403 |
Internal Credit Risk Rating [Member] | Substandard [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 5,630 | 939 |
Internal Credit Risk Rating [Member] | Substandard [Member] | Commercial Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 303 | |
Internal Credit Risk Rating [Member] | Substandard [Member] | Commercial Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | $ 1,033 | $ 161 |
Loans - Summary of Informatio_2
Loans - Summary of Information Regarding the Credit Quality Indicators for Residential Real Estate and Consumer Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | $ 312,370 | $ 372,589 |
Credit Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 97,793 | 148,249 |
Credit Quality [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 95,960 | 147,013 |
Credit Quality [Member] | Non Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 1,833 | 1,236 |
Credit Quality [Member] | Residential First Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 65,450 | 108,084 |
Credit Quality [Member] | Residential First Mortgages [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 63,760 | 107,018 |
Credit Quality [Member] | Residential First Mortgages [Member] | Non Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 1,690 | 1,066 |
Credit Quality [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 2,041 | 2,097 |
Credit Quality [Member] | Residential Construction [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 2,041 | 2,097 |
Credit Quality [Member] | Consumer Home Equity and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 29,691 | 36,154 |
Credit Quality [Member] | Consumer Home Equity and Lines of Credit [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 29,548 | 35,984 |
Credit Quality [Member] | Consumer Home Equity and Lines of Credit [Member] | Non Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 143 | 170 |
Credit Quality [Member] | Consumer Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | 611 | 1,914 |
Credit Quality [Member] | Consumer Other [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable gross carrying amount | $ 611 | $ 1,914 |
Loans - Schedule of Analysis of
Loans - Schedule of Analysis of Past due Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | $ 310,433 | $ 370,495 |
Total Loans | 312,370 | 372,589 |
Non-accrual Loans | $ 2,013 | $ 1,555 |
Total non-accrual loans to total loans | 0.64% | 0.42% |
Total non-accrual loans to total assets | 0.47% | 0.32% |
Loans Past Due 30-89 Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | $ 1,220 | $ 1,687 |
Loans Past Due 90+ Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 717 | 407 |
Commercial Real Estate [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | 178,702 | 191,645 |
Total Loans | 178,882 | 191,645 |
Non-accrual Loans | 180 | |
Commercial Real Estate [Member] | Loans Past Due 90+ Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 180 | |
Commercial Land Development [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | 1,623 | 1,884 |
Total Loans | 1,623 | 2,187 |
Non-accrual Loans | 303 | |
Commercial Land Development [Member] | Loans Past Due 90+ Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 303 | |
Commercial Other [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | 33,924 | 30,508 |
Total Loans | 34,072 | 30,508 |
Non-accrual Loans | 16 | |
Commercial Other [Member] | Loans Past Due 30-89 Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 148 | |
Residential Real Estate First Mortgages | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | 63,854 | 106,523 |
Total Loans | 65,450 | 108,084 |
Non-accrual Loans | 1,690 | 1,066 |
Residential Real Estate First Mortgages | Loans Past Due 30-89 Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 1,059 | 1,470 |
Residential Real Estate First Mortgages | Loans Past Due 90+ Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 537 | 91 |
Residential Real Estate Construction | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | 2,041 | 2,097 |
Total Loans | 2,041 | 2,097 |
Consumer Home Equity and Lines of Credit [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | 29,678 | 35,926 |
Total Loans | 29,691 | 36,154 |
Non-accrual Loans | 143 | 170 |
Consumer Home Equity and Lines of Credit [Member] | Loans Past Due 30-89 Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 13 | 215 |
Consumer Home Equity and Lines of Credit [Member] | Loans Past Due 90+ Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | 13 | |
Consumer And Other | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Current Loans | 611 | 1,912 |
Total Loans | $ 611 | 1,914 |
Consumer And Other | Loans Past Due 30-89 Days [Member] | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Past Due | $ 2 |
Loans - Summary of Nonperformin
Loans - Summary of Nonperforming Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Modifications [Line Items] | ||
Non-accrual loans, other than troubled debt restructurings | $ 1,416 | $ 906 |
Total non-performing loans (NPLs) | 2,013 | 1,555 |
Non Accruing Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured loans | 597 | 649 |
Accruing Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured loans | $ 446 | $ 459 |
Foreclosed Assets - Additional
Foreclosed Assets - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Foreclosed Assets [Abstract] | ||
Foreclosed assets | $ 0 | $ 0 |
Foreclosed Assets - Schedule of
Foreclosed Assets - Schedule of no valuation allowance foreclosed assets (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Foreclosed Assets [Abstract] | |
Foreclosed assets, beginning of period | $ 0 |
Loans receivable transferred | 134,000 |
Gain on sales | 103,000 |
Proceeds from sales | (237,000) |
Foreclosed assets, end of period | $ 0 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 15,668 | $ 18,142 |
Less: Accumulated depreciation | 8,987 | 9,979 |
Premises and equipment, net | 6,681 | 8,163 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 863 | 1,408 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 7,829 | 10,044 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 633 | 661 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 6,343 | $ 6,029 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation of Premises and Equipment | $ 695 | $ 663 |
Rent Expense under these Non-Cancelable Leases | 223 | 218 |
Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation of Premises and Equipment | 695 | 663 |
Impairment | $ 90 | $ 0 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Future Minimum Rental Commitments Under Non-cancelable Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Property Plant And Equipment [Abstract] | |
2020 | $ 93 |
2021 | 20 |
Total | $ 113 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Unpaid principal balance of mortgage loans serviced for others | $ 336,722,000 | $ 332,515,000 |
Mortgage servicing rights, valuation allowance | $ 0 | $ 0 |
Minimum [Member] | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Discount rates used in valuation model | 10.00% | 10.00% |
Prepayment speeds used in valuation model | 7.00% | 7.00% |
Maximum [Member] | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Discount rates used in valuation model | 14.00% | 14.00% |
Prepayment speeds used in valuation model | 45.00% | 43.00% |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Activity in Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Asset At Amortized Value Balance Roll Forward | ||
Mortgage servicing rights beginning balance | $ 2,103 | $ 2,270 |
Additions | 527 | 168 |
Amortization | (458) | (335) |
Mortgage servicing rights ending balance | 2,172 | 2,103 |
Fair value at beginning of period | 3,371 | 3,158 |
Fair value at end of period | $ 2,404 | $ 3,371 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Summary of Estimated Future Amortization Expense for Mortgage Servicing Rights (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2020 | $ 459 |
2021 | 431 |
2022 | 401 |
2023 | 373 |
2024 | 342 |
Thereafter | 166 |
Total | $ 2,172 |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking And Thrift [Abstract] | ||
Non-interest bearing checking | $ 62,768 | $ 85,988 |
Interest bearing checking | 25,432 | 25,556 |
Money market | 65,999 | 59,071 |
Statement savings accounts | 47,981 | 53,245 |
Certificates of deposit | 142,416 | 182,277 |
Total | $ 344,596 | $ 406,137 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking And Thrift [Abstract] | ||
Certificates of deposit federally insured | $ 250 | |
Certificates of deposit with balances of $250 or more | $ 16,260 | $ 12,787 |
Deposits - Interest Expense On
Deposits - Interest Expense On Deposits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Banking And Thrift [Abstract] | ||
Interest bearing checking | $ 59 | $ 52 |
Money market | 715 | 424 |
Statement savings accounts | 66 | 74 |
Certificates of deposit | 3,802 | 3,141 |
Total | $ 4,642 | $ 3,691 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Certificates of Deposit (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Time Deposits By Maturity [Abstract] | |
2020 | $ 122,772 |
2021 | 15,456 |
2022 | 2,895 |
2023 | 585 |
2024 | 708 |
Total | $ 142,416 |
FHLB Advances and Other Borro_3
FHLB Advances and Other Borrowings - Summary of FHLB Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB Advances, total | $ 17,623 | $ 30,010 |
Open Line of Credit [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.77% | 2.61% |
FHLB Advances, total | $ 5,350 | |
Fixed Rate Fixed Term Advances [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.41% | |
FHLB Advances, total | $ 7,000 | $ 24,000 |
Putable Advance [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.03% | |
FHLB Advances, total | $ 10,000 | |
Advance Structured Note [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 7.47% | 7.47% |
FHLB Advances, total | $ 623 | $ 660 |
Minimum [Member] | Fixed Rate Fixed Term Advances [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.13% | |
Maximum [Member] | Fixed Rate Fixed Term Advances [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.50% |
FHLB Advances and Other Borro_4
FHLB Advances and Other Borrowings - Schedule of Maturities of FHLB Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank Advances Maturity Rolling Year Par Value [Abstract] | ||
2020 | 7.47% | |
2021 | 1.45% | |
2022 | 7.47% | |
2023 | 7.47% | |
2024 | 7.47% | |
Thereafter | 1.27% | |
2020 | $ 39 | |
2021 | 7,042 | |
2022 | 46 | |
2023 | 49 | |
2024 | 53 | |
Thereafter | 10,394 | |
Total | $ 17,623 | $ 30,010 |
FHLB Advances and Other Borro_5
FHLB Advances and Other Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank stock to maximum borrowing capacity | The Company has a master contract agreement with the FHLB that provides for borrowing up to the lesser of 22.22 times the FHLB stock owned, a determined percentage of the book value of the Company’s qualifying real estate loans, or a determined percentage of the Company’s assets. | |
Qualifying loans pledged as collateral | $ 125,483,000 | $ 151,708,000 |
Federal Home Loan Bank stock held | 913,000 | 1,261,000 |
Available and unused funds under borrowing agreement | 107,019,000 | $ 121,086,000 |
Federal Fund Rate [Member] | BMO Harris Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal funds rate line of credit | $ 10,000,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Matching contributions | $ 356 | $ 338 |
Income Taxes - Provision For In
Income Taxes - Provision For Income taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current taxes: | ||
Federal | $ (26) | $ (397) |
State | (3) | |
Total current taxes | (29) | (397) |
Deferred taxes: | ||
Federal | 19 | 263 |
State | 1 | (43) |
Total deferred taxes | 20 | 220 |
Credit for income taxes | $ (9) | $ (177) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Asset and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 542 | $ 884 |
Deferred compensation | 692 | 658 |
Accrued employee benefits | 136 | 229 |
Loss carryforwards | 4,743 | 4,080 |
Unrealized (gain) loss on available for sale securities | (39) | 586 |
Premises and equipment | 11 | 262 |
Other | 14 | 91 |
Total deferred tax assets | 6,099 | 6,790 |
Deferred tax liabilities: | ||
Loan fees | 82 | 136 |
Mortgage servicing rights | 589 | 570 |
FHLB stock dividends | 28 | 38 |
Total deferred tax liabilities | 699 | 744 |
Net deferred tax asset | $ 5,400 | $ 6,046 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Percentage of operating loss carryforward period limited to net income | 80.00% |
Domestic Tax Authority [Member] | |
Federal Loss Carryforwards | $ 14,308 |
Expiration Period | 2029 |
State and Local Jurisdiction [Member] | |
Federal Loss Carryforwards | $ 24,455 |
Expiration Period | 2024 |
Income Taxes - Summary of the S
Income Taxes - Summary of the Sources of Differences Between Income Taxes At the Federal Statutory Rate and the Provision (Credit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Federal income taxes at statutory rate, Amount | $ 92 | $ (41) |
State income taxes, net of federal income tax benefit, Amount | (34) | |
Increase in cash value of life insurance, Amount | (117) | (142) |
Other, Amount | 16 | 40 |
Credit for income taxes | $ (9) | $ (177) |
Reconciliation of statutory to effective rates: Percentage | ||
Federal income taxes at statutory rate, Percentage | 21.00% | 21.00% |
State income taxes, net of federal income tax benefit, Percentage | 0.00% | 17.34% |
Increase in cash value of life insurance, Percentage | (26.70%) | 72.73% |
Change in valuation allowance, Percentage | 0.00% | 0.00% |
Other, Percentage | 3.65% | (20.41%) |
Provision (credit) for income taxes, Percentage | (2.05%) | 90.66% |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Contract Amounts of Credit-related Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 57,853 | $ 56,513 |
Credit Enhancement Under FHLB of Chicago Mortgage Partnership Finance Program [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 841 | 612 |
Commitments to Sell Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 10,917 | 6,617 |
Overdraft Protection Program Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 4,129 | 3,894 |
Standby Letters of Credit, Variable [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 33 | |
Fixed Rate [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 21,745 | 19,255 |
Fixed Rate [Member] | Credit Enhancement Under FHLB of Chicago Mortgage Partnership Finance Program [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 841 | 612 |
Fixed Rate [Member] | Commitments to Sell Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 10,917 | 6,617 |
Fixed Rate [Member] | Overdraft Protection Program Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 4,129 | 3,894 |
Variable Rate [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 36,108 | 37,258 |
Variable Rate [Member] | Standby Letters of Credit, Variable [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 33 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - Mortgage Partnership Finance Program [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Commitments | $ 7,590,000 | |
Other commitments | $ 0 | $ 0 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
ESOP Purchased | shares | 175,528 |
Compensation Expense | $ | $ 71 |
Fair Value of Unallocated Shares Of ESOP Share Price | $ / shares | $ 10.78 |
Share-based Compensation Award, Tranche One [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested Percentage | 20.00% |
Vested Years Of Service | 1 year |
Share-based Compensation Award, Tranche Two [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested Percentage | 40.00% |
Vested Years Of Service | 2 years |
Share-based Compensation Award, Tranche Three [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested Percentage | 60.00% |
Vested Years Of Service | 3 years |
Share-based Compensation Award Tranche Four [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested Percentage | 80.00% |
Vested Years Of Service | 4 years |
Share-based Compensation Award Tranche Five [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested Percentage | 100.00% |
Vested Years Of Service | 5 years |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan - Employee Stock Ownership Plan (ESOP) Disclosures (Detail) shares in Thousands, $ in Thousands | Dec. 31, 2019USD ($)shares |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares committed to be released | 7,021 |
Total unallocated shares | 168,507 |
Total ESOP shares | 175,528 |
Fair value of unallocated shares | $ | $ 1,817 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan - Employee Stock Ownership Plan (ESOP) Disclosures (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Value of Unallocated Shares Of ESOP Share Price | $ 10.78 |
Related Party Transactions - Su
Related Party Transactions - Summary of Loans to Directors, Executive Officers and Affiliates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 1,289 | $ 1,477 |
New loans | 378 | 62 |
Repayments | (495) | (250) |
Ending balance | $ 1,172 | $ 1,289 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Fees paid to law firms | $ 43 | $ 47 |
Directors, Executive Officers and Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Deposits from directors, executive officers and affiliates | $ 1,686 | $ 938 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | $ 2,553 | |
Securities available-for-sale | 71,375 | |
Total | 73,928 | $ 68,160 |
Trading securities | 2,429 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 9,826 | 11,169 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 57,034 | 50,375 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 289 | 410 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,465 | 3,531 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 1,761 | 246 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 2,553 | |
Trading securities | 2,429 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 2,553 | |
Total | 2,553 | 2,429 |
Trading securities | 2,429 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 71,375 | 65,731 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 9,826 | 11,169 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 57,034 | 50,375 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 289 | 410 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,465 | 3,531 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 1,761 | $ 246 |
Fair Value - Summary of Asset_2
Fair Value - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans | $ 85 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans | $ 85 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Impaired loans | $ 67 | $ 97 |
Recognition of valuation allowance against impaired loans | 0 | 85 |
Valuation allowance against impaired loans | $ 67 | $ 12 |
Fair Value - Schedule of Quanti
Fair Value - Schedule of Quantitative Information about Nonrecurring Level 3 Fair Value Measurements (Detail) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 85 | |
Appraisals [Member] | Measurement Input, Discount Rate [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rates | 10 | 10 |
Appraisals [Member] | Measurement Input, Discount Rate [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rates | 20 | 20 |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying Values and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Available for sale securities | $ 71,375 | $ 65,731 |
Loans | 310,674 | 369,830 |
Accrued interest receivable | 963 | 1,106 |
Cash value of life insurance | 13,085 | 13,400 |
FHLB stock | 913 | 1,261 |
Marketable equity securities | 2,553 | |
Trading securities | 2,429 | |
Financial liabilities: | ||
Deposits | 344,596 | 406,137 |
Advance payments by borrowers for taxes and insurance | 1,681 | 1,240 |
FHLB advances | 17,623 | 30,010 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 11,707 | 7,923 |
Accrued interest receivable | 963 | 1,106 |
Marketable equity securities | 2,553 | |
Trading securities | 2,429 | |
Financial liabilities: | ||
Deposits | 202,180 | 223,860 |
Advance payments by borrowers for taxes and insurance | 1,681 | 1,240 |
Accrued interest payable | 385 | 372 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Available for sale securities | 71,375 | 65,731 |
Loans held for sale | 685 | 771 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Loans | 310,993 | 362,233 |
Cash value of life insurance | 13,085 | 13,400 |
FHLB stock | 913 | 1,261 |
Financial liabilities: | ||
Deposits | 142,708 | 180,703 |
FHLB advances | 17,976 | 29,499 |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 11,707 | 7,923 |
Available for sale securities | 71,375 | 65,731 |
Loans held for sale | 685 | 771 |
Loans | 310,674 | 369,830 |
Accrued interest receivable | 963 | 1,106 |
Cash value of life insurance | 13,085 | 13,400 |
FHLB stock | 913 | 1,261 |
Marketable equity securities | 2,553 | |
Trading securities | 2,429 | |
Financial liabilities: | ||
Deposits | 344,596 | 406,137 |
Advance payments by borrowers for taxes and insurance | 1,681 | 1,240 |
FHLB advances | 17,623 | 30,010 |
Accrued interest payable | $ 385 | $ 372 |
Equity and Regulatory Matters -
Equity and Regulatory Matters - Schedule of Banks Actual and Required Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking And Thrift [Abstract] | ||
Leverage tier 1 capital actual amount | $ 46,316 | $ 35,955 |
Common Tier 1 risk based capital actual amount | 46,316 | 35,955 |
Tier 1 risk based capital actual amount | 46,316 | 35,955 |
Total risk based capital actual amount | $ 48,316 | $ 39,217 |
Leverage tier 1 capital actual ratio | 10.70% | 7.50% |
Common Tier 1 risk based capital actual ratio | 13.50% | 10.00% |
Tier 1 risk based capital actual ratio | 13.50% | 10.00% |
Total risk based capital actual ratio | 14.10% | 10.90% |
Leverage tier 1 capital for capital adequacy purposes amount | $ 17,392 | $ 19,110 |
Common tier 1 risk based capital for capital adequacy purposes amount | 15,391 | 16,153 |
Tier 1 risk based capital for capital adequacy purposes amount | 20,522 | 21,538 |
Total risk based capital for capital adequacy purposes amount | $ 27,362 | $ 28,717 |
Leverage tier 1 capital for capital adequacy purposes ratio | 4.00% | 4.00% |
Common tier 1 risk based capital for capital adequacy purposes ratio | 4.50% | 4.50% |
Tier 1 risk based capital for capital adequacy purposes ratio | 6.00% | 6.00% |
Total risk based capital for capital adequacy purposes ratio | 8.00% | 8.00% |
Leverage tier 1 capital to be well capitalized under prompt corrective action provisions amount | $ 21,740 | $ 23,887 |
Common tier 1 risk based capital to be well capitalized under prompt corrective action provisions amount | 22,232 | 23,333 |
Tier 1 risk based capital to be well capitalized under prompt corrective action provisions amount | 27,362 | 28,717 |
Total risk based capital to be well capitalized under prompt corrective action provisions amount | $ 34,203 | $ 35,897 |
Leverage tier 1 capital to be well capitalized under prompt corrective action provisions ratio | 5.00% | 5.00% |
Common tier 1 risk based capital to be well capitalized under prompt corrective action provisions ratio | 6.50% | 6.50% |
Tier 1 risk based capital to be well capitalized under prompt corrective action provisions ratio | 8.00% | 8.00% |
Total risk based capital to be well capitalized under prompt corrective action provisions ratio | 10.00% | 10.00% |
Deferred Compensation - Additio
Deferred Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Obligations | $ 2,553,000 | $ 2,429,000 |
Benefits paid | 111,000 | 92,000 |
Liability outstanding | 362,000 | 438,000 |
Charges to operations | 37,000 | 48,000 |
cash value | 13,085,000 | 13,400,000 |
Proceeds from life insurance | 872,000 | 856,000 |
Gain on life insurance benefit | 158,000 | 120,000 |
Rabbi Trust Accounts [Member] | Equity Securities [Member] | ||
Gain (losses) recognized from sales of marketable equity securities | $ 0 | $ 0 |
Earnings Per Share - Earnings p
Earnings Per Share - Earnings per common share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 449 | $ (19) |
Weighted average shares outstanding for basic EPS | ||
Weighted average shares outstanding | 4,876,677 | |
Less: Weighted average unallocated ESOP shares | 172,895 | |
Subtotal | 4,703,782 | |
Weighted average shares outstanding for basic and dilutive EPS | 4,703,782 | |
Basic and diluted income (loss) per share | $ 0.10 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Common Stock [Member] - Subsequent Event [Member] | 1 Months Ended |
Jan. 31, 2020shares | |
Subsequent Event [Line Items] | |
Percentage of current outstanding shares under stock repurchase program | 5.00% |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Number of shares repurchased under stock repurchase program | 109,725,000 |