Document and Entity Information
Document and Entity Information - $ / shares | Nov. 14, 2020 | Sep. 30, 2020 |
Details | ||
Registrant CIK | 0001767837 | |
Fiscal Year End | --12-31 | |
Registrant Name | RICHMOND MUTUAL BANCORPORATION, INC. | |
SEC Form | 10-Q | |
Period End date | Sep. 30, 2020 | |
Trading Symbol | RMBI | |
Trading Exchange | NASDAQ | |
Tax Identification Number (TIN) | 36-4926041 | |
Number of common stock shares outstanding | 13,299,380 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | true | |
Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38956 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 31 North 9th Street | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47374 | |
City Area Code | 765 | |
Local Phone Number | 962-2581 | |
Title of 12(b) Security | Common Stock | |
Entity Listing, Par Value Per Share | $ 0.01 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Cash and due from banks | $ 11,675,692 | $ 9,088,398 |
Interest-bearing demand deposits | 5,022,239 | 31,508,479 |
Cash and cash equivalents | 16,697,931 | 40,596,877 |
Investment securities - available for sale | 231,849,589 | 201,783,851 |
Investment securities - held to maturity | 12,314,909 | 15,917,394 |
Loans Receivable | 750,646,193 | 687,258,190 |
Premises and equipment, net | 14,757,618 | 14,087,169 |
Federal Home Loan Bank stock | 9,169,600 | 7,600,400 |
Interest receivable | 4,830,417 | 3,052,380 |
Mortgage Servicing Rights | 1,504,675 | 1,033,217 |
Cash surrender value of life insurance | 3,930,151 | 3,839,911 |
Other assets | 9,188,440 | 10,872,682 |
Total assets | 1,054,889,523 | 986,042,071 |
Liabilities | ||
Non-interest bearing deposits | 88,714,105 | 60,297,443 |
Interest bearing deposits | 574,342,883 | 556,921,370 |
Total deposits | 663,056,988 | 617,218,813 |
Federal Home Loan Bank advances | 176,000,000 | 154,000,000 |
Advances by borrowers for taxes and insurance | 561,540 | 545,498 |
Interest payable | 241,872 | 296,774 |
Multi-employer pension plan liability | 17,454,709 | 17,454,709 |
Other liabilities | 5,899,989 | 8,738,831 |
Total liabilities | 863,215,098 | 798,254,625 |
Commitments and Contingent Liabilities | 0 | 0 |
Stockholders' Equity | ||
Common stock, $.01 par value Authorized - 90,000,000 shares Issued and outstanding - 12,944,546 shares and 13,526,625 shares, respectively | 129,445 | 135,266 |
Additional paid-in capital | 125,920,717 | 132,601,876 |
Retained earnings | 76,372,877 | 70,111,434 |
Unearned employee stock ownership plan (ESOP) | (13,848,900) | (14,400,386) |
Accumulated other comprehensive income (loss) | 3,100,286 | (660,744) |
Total stockholders' equity | 191,674,425 | 187,787,446 |
Total liabilities and stockholders' equity | $ 1,054,889,523 | $ 986,042,071 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - Parenthetical - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Allowance for Loan and Lease Losses Write-offs, Net | $ 9,809,000 | $ 7,089,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 90,000,000 | 90,000,000 |
Common Stock, Shares, Issued | 12,944,546 | 12,944,546 |
Common Stock, Shares, Outstanding | 13,526,625 | 13,526,625 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest Income | ||||
Investment securities | $ 1,017,201 | $ 862,331 | $ 3,458,621 | $ 2,760,808 |
Other | 9,376 | 626,705 | 145,853 | 954,274 |
Total interest income | 10,582,774 | 10,807,090 | 31,532,733 | 30,962,488 |
Interest Expense | ||||
Deposits | 1,545,183 | 2,033,000 | 5,074,191 | 6,027,160 |
Borrowings | 763,055 | 864,957 | 2,272,700 | 2,423,784 |
Total interest expense | 2,308,238 | 2,897,957 | 7,346,891 | 8,450,944 |
Net Interest Income | 8,274,536 | 7,909,133 | 24,185,842 | 22,511,544 |
Provision for losses on loans and leases | 1,300,000 | 705,000 | 2,830,000 | 1,715,000 |
Net Interest Income After Provision for Losses on Loans and Leases | 6,974,536 | 7,204,133 | 21,355,842 | 20,796,544 |
Non-Interest Income | ||||
Service Charges on Deposit Accounts | 150,653 | 295,703 | 510,922 | 779,147 |
Card fee income | 218,482 | 189,583 | 599,837 | 542,072 |
Loan and lease servicing fees | (41,657) | 68,079 | 193,881 | 280,282 |
Net gains on securities (includes $117,304, $21,827, $196,317 and $83,059, respectively, related to accumulated other comprehensive loss reclassifications) | 117,304 | 21,827 | 196,317 | 83,059 |
Net gains on loan and lease sales | 1,327,639 | 231,534 | 2,586,515 | 442,332 |
Other loan fees | 173,803 | 211,249 | 501,379 | 454,283 |
Other income | 209,503 | 129,121 | 602,581 | 370,281 |
Total non-interest income | 2,155,727 | 1,147,096 | 5,191,432 | 2,951,456 |
Non-Interest Expenses | ||||
Salaries and employee benefits | 3,647,479 | 3,840,806 | 10,281,475 | 12,632,760 |
Loans and leases | 9,556,197 | 9,318,054 | 27,928,259 | 27,247,406 |
Net occupancy expenses | 307,925 | 275,535 | 882,915 | 825,480 |
Equipment expenses | 308,146 | 250,173 | 844,849 | 725,818 |
Data processing fees | 446,543 | 442,082 | 1,395,417 | 1,280,248 |
Deposit insurance expense | 80,000 | 23,983 | 196,000 | 316,983 |
Printing and office supplies | 32,440 | 45,099 | 91,080 | 114,119 |
Legal and professional fees | 271,137 | 310,561 | 839,318 | 816,315 |
Advertising expense | 71,090 | 197,799 | 260,903 | 494,475 |
Bank Service Charges | 40,278 | 29,383 | 106,098 | 93,652 |
Real estate owned expense | 350 | 7,481 | 3,516 | 44,874 |
Loss on sale of real estate owned | 0 | 5,287 | 0 | 11,780 |
Donation to establish First Bank Richmond Charitable Foundation | 0 | 6,250,000 | 0 | 6,250,000 |
Loan Tax and Insurance Expense | 779,791 | 821,575 | 2,254,922 | 2,302,257 |
Loan Tax and Insurance Expense | 5,985,179 | 12,499,764 | 17,156,493 | 25,908,761 |
Income Before Income Tax Expense (Benefit) | 3,145,084 | (4,148,535) | 9,390,781 | (2,160,761) |
Net Income (Loss) | $ 2,531,553 | $ (3,250,335) | $ 7,489,876 | $ (1,542,961) |
Basic | $ 0.21 | $ (0.26) | $ 0.60 | $ (0.26) |
Diluted | $ 0.21 | $ (0.26) | $ 0.60 | $ (0.26) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Loss) - Parenthetical - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Accumulated other comprehensive loss reclassifications | $ 117,304 | $ 21,827 | $ 196,317 | $ 83,059 |
Provision for income tax expense from reclassification of items | $ 24,634 | $ 5,661 | $ 41,226 | $ 21,544 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Net Income (Loss) | $ 2,531,553 | $ (3,250,335) | $ 7,489,876 | $ (1,542,961) |
Other Comprehensive Income | ||||
Unrealized gain on available-for-sale securities, net of tax expense of $45,101, $175,173, $1,040,994 and $1,400,357, respectively. | 169,667 | 500,236 | 3,916,120 | 3,998,774 |
Reclassification Adjustment for Realized Gains Included in Net Income | 92,670 | 16,166 | 155,090 | 61,516 |
Other Comprehensive Income, Other, Net of Tax | 76,997 | 484,070 | 3,761,030 | 3,937,258 |
Comprehensive Income (Loss) | $ 2,608,550 | $ (2,766,265) | $ 11,250,906 | $ 2,394,297 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - Parenthetical - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Available for sale securities income tax expense (benefit) | $ 45,101 | $ 175,173 | $ 1,040,994 | $ 1,400,357 |
Reclassification Adjustment Income Tax Expense (Benefit) | $ 24,634 | $ 5,661 | $ 41,226 | $ 21,544 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | AOCI Attributable to Parent | Total |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2018 | $ 1 | $ 12,750,999 | $ 77,480,318 | $ 0 | $ (4,378,286) | $ 85,853,032 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 100 | |||||
Net Income (Loss) | (1,542,961) | |||||
Other comprehensive income | $ 0 | 0 | 0 | 0 | 3,937,258 | 3,937,258 |
ESOP shares earned | 0 | (751) | 0 | 122,100 | 0 | 121,349 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2019 | $ 135,266 | 132,590,923 | 82,652,959 | (14,584,215) | (441,028) | 200,353,905 |
Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 13,526,625 | |||||
Repurchase of common stock | 0 | |||||
Issuance of common stock, net of offering costs | $ 130,266 | 127,596,674 | 0 | (14,706,315) | 0 | 113,020,625 |
Stock contributed to charitable foundation | $ 5,000 | 4,995,000 | 0 | 0 | 0 | 5,000,000 |
Shares contributed to charitable foundation | 500,000 | |||||
Reorganization of Richmond Mutual Bancorporation | $ (1) | (12,750,999) | (6,715,602) | 0 | 0 | (6,035,398) |
Reorganization of Richmond Mutual Bancorporation Shares | (100) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jun. 30, 2019 | $ 1 | 12,750,999 | 79,187,692 | 0 | (925,098) | 91,013,594 |
Shares, Outstanding, Beginning Balance at Jun. 30, 2019 | 100 | |||||
Net Income (Loss) | (3,250,335) | |||||
Other comprehensive income | $ 0 | 0 | 0 | 0 | 484,070 | 484,070 |
ESOP shares earned | 0 | (751) | 0 | 122,100 | 0 | 121,349 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2019 | $ 135,266 | 132,590,923 | 82,652,959 | (14,584,215) | (441,028) | 200,353,905 |
Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 13,526,625 | |||||
Issuance of common stock, net of offering costs | $ 130,266 | 127,596,674 | 0 | (14,706,315) | 0 | 113,020,625 |
Stock contributed to charitable foundation | $ 5,000 | 4,995,000 | 0 | 0 | 0 | 5,000,000 |
Shares contributed to charitable foundation | 500,000 | |||||
Reorganization of Richmond Mutual Bancorporation | $ (1) | (12,750,999) | 6,715,602 | 0 | 0 | $ (6,035,398) |
Reorganization of Richmond Mutual Bancorporation Shares | (100) | |||||
Common stock shares issued net of offering costs | 13,026,625 | |||||
Common stock shares issued net of offering costs | 12,944,546 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2019 | $ 135,266 | 132,601,876 | 70,111,434 | (14,400,386) | (660,744) | $ 187,787,446 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 13,526,625 | |||||
Net Income (Loss) | $ 0 | 0 | 7,489,876 | 0 | 0 | 7,489,876 |
Other comprehensive income | 0 | 0 | 0 | 0 | 3,761,030 | 3,761,030 |
ESOP shares earned | 0 | (70,487) | 0 | 551,486 | 0 | 480,999 |
Common stock dividends ($0.05 per share) | $ 0 | 0 | (1,228,433) | 0 | 0 | (1,228,433) |
Repurchase of common stock | 582,079 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2020 | $ 129,445 | 125,920,717 | 76,372,877 | (13,848,900) | 3,100,286 | 191,674,425 |
Shares, Outstanding, Ending Balance at Sep. 30, 2020 | 12,944,546 | |||||
Repurchase of common stock | $ (5,821) | (6,610,672) | 0 | 0 | 0 | (6,616,493) |
Repurchase of common stock | (582,079) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jun. 30, 2020 | $ 135,266 | 132,563,670 | 74,446,405 | (14,032,728) | 3,023,289 | 196,135,902 |
Shares, Outstanding, Beginning Balance at Jun. 30, 2020 | 13,526,625 | |||||
Net Income (Loss) | $ 0 | 0 | 2,531,553 | 0 | 0 | 2,531,553 |
Other comprehensive income | 0 | 0 | 0 | 0 | 76,997 | 76,997 |
ESOP shares earned | 0 | (32,281) | 0 | 183,828 | 0 | 151,547 |
Common stock dividends ($0.05 per share) | 0 | 0 | (605,081) | 0 | 0 | (605,081) |
Repurchase of common stock | $ (5,821) | (6,610,672) | 0 | 0 | 0 | (6,616,493) |
Repurchase of common stock | (582,079) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2020 | $ 129,445 | $ 125,920,717 | $ 76,372,877 | $ (13,848,900) | $ 3,100,286 | $ 191,674,425 |
Shares, Outstanding, Ending Balance at Sep. 30, 2020 | 12,944,546 | |||||
Repurchase of common stock | 582,079 | |||||
Common stock shares issued net of offering costs | 12,944,546 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net income | $ 7,489,876 | $ (1,542,961) |
Items not requiring (providing) cash | ||
Provision for loan losses | 2,830,000 | 1,715,000 |
Depreciation and amortization | 740,482 | 681,666 |
Deferred income tax | (679,933) | (792,858) |
Investment securities (accretion) amortization, net | 1,848,533 | 678,412 |
Investment securities gains | (196,317) | (83,059) |
Gain on sale of loans and leases held for sale | (2,586,515) | (442,332) |
Loss on sale of real estate owned | 0 | 11,780 |
Accretion of loan origination fees | (849,503) | (141,547) |
Amortization of mortgage-servicing rights | 355,146 | 144,522 |
ESOP shares expense | 480,999 | 121,349 |
Increase in cash surrender value of life insurance | (90,240) | (91,306) |
Loans originated for sale | (79,876,240) | (17,573,565) |
Proceeds on loans sold | 81,621,903 | 18,314,415 |
Net change in | ||
Interest receivable | (1,778,037) | (114,032) |
Other assets | 1,152,716 | (173,475) |
Other liabilities | (2,838,842) | 1,203,832 |
Interest payable | (54,902) | 3,529 |
Net cash provided by operating activities | 7,569,126 | 6,919,370 |
Investing Activities | ||
Purchases of securities available for sale | (129,901,076) | (109,895,626) |
Proceeds from maturities and paydowns of securities available for sale | 68,279,489 | 11,047,791 |
Proceeds from sales of securities available for sale | 34,737,656 | 57,703,608 |
Proceeds from maturities and paydowns of securities held to maturity | 3,585,017 | 4,314,977 |
Net change in loans | (65,198,318) | (42,036,916) |
Purchases of premises and equipment | (1,410,931) | (670,429) |
Purchase of FHLB stock | (1,569,200) | (1,039,800) |
Net cash used in investing activities | (91,477,363) | (80,480,751) |
Financing Activities | ||
Demand and savings deposits | 71,899,362 | 8,739,009 |
Certificates of deposit | (26,061,187) | (21,567,752) |
Advances by borrowers for taxes and insurance | 16,042 | 82,831 |
Proceeds from FHLB advances | 64,000,000 | 71,000,000 |
Repayment of FHLB advances | (42,000,000) | (66,100,000) |
Repayment of other borrowings | 0 | (5,207,256) |
Proceeds from stock conversion | 0 | 113,020,625 |
Repurchase of common stock | (6,616,493) | 0 |
Net cash provided by financing activities | 60,009,291 | 99,967,457 |
Net Change in Cash and Cash Equivalents | (23,898,946) | 26,406,076 |
Cash and Cash Equivalents, Beginning of Period | 40,596,877 | 14,971,170 |
Cash and Cash Equivalents, End of Period | 16,697,931 | 41,377,246 |
Additional Cash Flows and Supplementary Information | ||
Interest paid | 7,401,793 | 8,447,415 |
Transfers from loans to other real estate owned | $ 31,548 | $ 5,400 |
Note 1_ Nature of Operations an
Note 1: Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 1: Nature of Operations and Summary of Significant Accounting Policies | Note 1: Basis of Presentation On July 1, 2019, Richmond Mutual Bancorporation, Inc., a Delaware corporation (“RMB-Delaware”), completed its reorganization from a mutual holding company form of organization to a stock form of organization (“corporate reorganization”). RMB-Delaware, which owned 100% of First Bank Richmond (the “Bank”), was succeeded by Richmond Mutual Bancorporation, Inc., a new Maryland corporation (“RMB-Maryland”). As part of the corporate reorganization, First Mutual of Richmond, Inc.’s (“MHC”) ownership interest in RMB-Delaware was sold in a public offering. Gross proceeds from the offering were $130.3 million. In conjunction with the corporate reorganization, RMB-Maryland contributed 500,000 shares and $1.25 million of cash to a newly formed charitable foundation, First Bank Richmond, Inc. Community Foundation (the “Foundation”). Additionally, a “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to MHC’s ownership interest in the retained earnings of RMB-Delaware as of December 31, 2017 and March 31, 2019. In certain circumstances, where appropriate, the terms “Company”, “we”, “us” and “our” refer collectively to (i) RMB-Delaware and First Bank Richmond with respect to discussions in this document involving matters occurring prior to completion of the corporate reorganization and (ii) RMB-Maryland and First Bank Richmond with respect to discussions in this document involving matters occurring post-corporate reorganization, in each case unless the context indicates another meaning. The costs of the corporate reorganization and the issuance of the common stock have been deducted from the sales proceeds of the offering. The accompanying unaudited condensed consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include information or note disclosures necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. Accordingly, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) on March 30, 2020 (SEC File No. 001-38956). However, in the opinion of management, all adjustments which are necessary for a fair presentation of the consolidated financial statements have been included. Those adjustments consist only of normal recurring adjustments. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. Loans For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The Company charges off residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance, which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value, less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 90 days past due, and charge down to the net realizable value when other secured loans are 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. |
Note 2_ Accounting Pronouncemen
Note 2: Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 2: Accounting Pronouncements | Note 2: Accounting Pronouncements On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which provides relief from certain accounting and financial reporting requirements under U.S. GAAP. Section 4013 of the CARES Act provides temporary relief from the accounting and reporting requirements for troubled debt restructurings (TDRs) under ASC 310-40 for loan modifications related to the novel coronavirus disease of 2019 (“COVID-19”) pandemic. In addition, on April 7, 2020, a group of banking agencies issued an interagency statement (“Interagency Statement”) for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. The Interagency Statement was originally issued on March 22, 2020, but the banking agencies revised it to address the relationship between their TDR accounting and disclosure guidance and the TDR guidance in Section 4013 of the CARES Act. Section 4013 of the CARES Act permits the suspension of ASC 310-40 for loan modifications that are made by financial institutions in response to the COVID-19 pandemic if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan. The Interagency Statement indicates that a lender can conclude that a borrower is not experiencing financial difficulty if either (1) short-term (e.g., six months) modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented, or (2) the modification or deferral program is mandated by the federal government or a state government. Accordingly, any loan modification made in response to the COVID-19 pandemic that meets either of these practical expedients would not be considered a TDR. The Company adopted this guidance effective March 27, 2020. In October 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-08, “Receivables – Nonrefundable Fees and Other Costs” (“ASU 2020-08”). ASU 2020-08 clarifies that the Company should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company does not expect the adoption of ASU 2020-08 to have a material impact on its consolidated financial statements. The JOBS Act, which was enacted in April 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 $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as and has elected to be an emerging growth company under the JOBS Act. An emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company. The Company has elected to comply with new or amended accounting pronouncements in the same manner as a private company. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326). The ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief” (ASU 2019-05). This ASU provides transition relief for entities adopting the FASB’s credit losses standard, ASU 2016-13 and allows companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for certain financial instruments. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (ASU 2019-04). This ASU clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. In October 2019, the FASB voted to extend the implementation of ASU No. 2016-13 for certain financial institutions including smaller reporting companies. As a result, ASU 2016-13 will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company is evaluating its current expected loss methodology on the loan and investment portfolios to identify the necessary modifications in accordance with this standard. The Company has not quantified the impact of these ASUs. The Company is in the early stages of evaluating its historical data available for use in adoption of the new credit loss standards. Additionally, we are forming an implementation team that will meet on a regular basis to coordinate efforts of our accounting, credit and operations areas. We will continue to evaluate methodologies available to us under the new standard. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of reference Rate Reform on Financial Reporting. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In February 2016, the FASB has issued ASU No. 2016-02, Leases Leases |
Note 3_ Investment Securities
Note 3: Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 3: Investment Securities | Note 3: Investment Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows: September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available for sale U.S. treasury securities $ 4,999 $ - $ - $ 4,999 SBA Pools 14,907 97 100 14,904 Federal agencies 7,998 14 5 8,007 State and municipal obligations 74,798 1,898 263 76,433 Mortgage-backed securities - government-sponsored enterprises (GSE) residential 125,210 2,370 86 127,494 Equity securities 13 - - 13 227,925 4,379 454 231,850 Held to maturity State and municipal obligations 12,315 329 - 12,644 12,315 329 - 12,644 $ 240,240 $ 4,708 $ 454 $ 244,494 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available for sale U.S. Treasury securities $ 2,997 $ - $ 6 $ 2,991 SBA Pools 14,497 - 114 14,383 Federal agencies 21,765 - 119 21,646 State and municipal obligations 45,635 357 152 45,840 Mortgage-backed securities - government-sponsored enterprises (GSE) residential 117,769 111 969 116,911 Equity securities 13 - - 13 202,676 468 1,360 201,784 Held to maturity State and municipal obligations 15,917 244 5 16,156 15,917 - 5 16,156 $ 218,593 $ 712 $ 1,365 $ 217,940 The amortized cost and fair value of securities at September 30, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ 5,933 $ 5,940 $ 2,442 $ 2,455 One to five years 5,875 6,081 6,785 6,969 Five to ten years 26,270 26,715 2,028 2,141 After ten years 64,624 65,607 1,060 1,079 102,702 104,343 12,315 12,644 Mortgage-backed securities - GSE residential 125,210 127,494 - - Equity securities 13 13 - - Totals $ 227,925 $ 231,850 $ 12,315 $ 12,644 Securities with a carrying value of $99,128,000 and $114,907,000 were pledged at September 30, 2020 and December 31, 2019, respectively, to secure certain deposits and for other purposes as permitted or required by law. Proceeds from sales of securities available for sale for the three and nine months ended September 30, 2020 were $12,560,000 and $34,738,000, respectively. For the three and nine months ended September 30, 2019, proceeds from sales of securities were $35,247,000 and $57,704,000 respectively. Gross gains were recognized on the sale of securities available-for-sale for the three and nine months ended September 30, 2020 and 2019 of $120,000, $255,000, $104,000 and $170,000, respectively. Gross losses were recognized on the sale of securities available for sale for the three and nine months ended September 30, 2020 of $3,000 and $59,000, respectively. Gross losses were recognized on the sale of securities available for sale for the three and nine months ended September 30, 2019 of $82,000 and $87,000, respectively. Certain investments in debt securities, as reflected in the table below, are reported in the condensed consolidated financial statements and notes at an amount less than their historical cost. Total fair value of these investments at September 30, 2020 and December 31, 2019 was $42,956,000 and $138,391,000, respectively, which is approximately 18% and 63% of the Company’s aggregated available-for-sale and held-to-maturity investment portfolio at those dates, respectively. These declines primarily resulted from changes in market interest rates since their purchase. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any other securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables show the Company’s investments by gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019: September 30, 2020 Less Than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses Available-for-sale SBA Pools $ 6,618 $ 53 $ 4,742 $ 47 $ 11,360 $ 100 Federal agencies 995 5 - - 995 5 State and municipal obligations 14,278 263 - - 14,278 263 Mortgage-backed securities - GSE residential 15,449 84 874 2 16,323 86 Total available-for-sale 37,340 405 5,616 49 42,956 454 Total temporarily impaired securities $ 37,340 $ 405 $ 5,616 $ 49 $ 42,956 $ 454 December 31, 2019 Less Than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses Available-for-sale U.S. Treasury securities $ 2,991 $ 6 $ - $ - $ 2,991 $ 6 SBA Pools 14,262 114 - - 14,262 114 Federal agencies 9,657 109 2,990 10 12,647 119 State and municipal obligations 12,606 130 2,948 22 15,554 152 Mortgage-backed securities - GSE residential 57,928 464 34,344 505 92,272 969 Total available-for-sale 97,444 823 40,282 537 137,726 1,360 Held-to-maturity State and municipal obligations 665 5 - - 665 5 Total temporarily impaired securities $ 98,109 $ 828 $ 40,282 $ 537 $ 138,391 $ 1,365 Federal Agencies. Mortgage-Backed Securities – GSE Residential and SBA Pools. State and Municipal Obligations. |
Note 4_ Loans, Leases and Allow
Note 4: Loans, Leases and Allowance | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 4: Loans, Leases and Allowance | Note 4: Loans, Leases and Allowance The following table shows the composition of the loan and lease portfolio at September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Commercial mortgage $ 245,651 $ 229,410 Commercial and industrial 141,142 84,549 Construction and development 55,694 53,426 Multi-family 63,237 66,002 Residential mortgage 122,456 131,294 Home equity 6,211 6,996 Direct financing leases 115,108 109,592 Consumer 13,101 13,534 762,600 694,803 Less Allowance for loan and lease losses 9,809 7,089 Deferred loan fees 2,145 456 $ 750,646 $ 687,258 The following tables present the activity in the allowance for loan and lease losses for the three and nine months ended September 30, 2020 and 2019. Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Three Months Ended September 30, 2020: Balance, beginning of period $ 5,517 $ 1,710 $ 308 $ 838 $ 148 $ 8,521 Provision (credit) for losses 1,509 (353 ) 10 93 41 1,300 Charge-offs - - - (110 ) (26 ) (136 ) Recoveries 4 30 17 70 3 124 Balance, end of period $ 7,030 $ 1,387 $ 335 $ 891 $ 166 $ 9,809 Nine Months Ended September 30, 2020: Balance, beginning of period $ 4,564 $ 1,852 $ 109 $ 426 $ 138 $ 7,089 Provision (credit) for losses 2,426 (535 ) 220 662 57 2,830 Charge-offs - - (35 ) (300 ) (47 ) (382 ) Recoveries 40 70 41 103 18 272 Balance, end of period $ 7,030 $ 1,387 $ 335 $ 891 $ 166 $ 9,809 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Three Months Ended September 30, 2019: Balance, beginning of period $ 3,892 $ 1,768 $ 122 $ 385 $ 114 $ 6,281 Provision (credit) for losses 586 11 (34 ) 71 71 705 Charge-offs (14 ) - (6 ) (107 ) (51 ) (178 ) Recoveries 4 2 22 54 6 88 Balance, end of period $ 4,468 $ 1,781 $ 104 $ 403 $ 140 $ 6,896 Nine Months Ended September 30, 2019: Balance, beginning of period $ 3,147 $ 1,817 $ 139 $ 389 $ 108 $ 5,600 Provision (credit) for losses 1,321 206 (41 ) 121 108 1,715 Charge-offs (14 ) (250 ) (42 ) (284 ) (100 ) (690 ) Recoveries 14 8 48 177 24 271 Balance, end of period $ 4,468 $ 1,781 $ 104 $ 403 $ 140 $ 6,896 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on portfolio segment and impairment method as of September 30, 2020 and December 31, 2019: September 30, 2020 Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Allowance for loan and lease losses: Individually evaluated for impairment $ 150 $ 52 $ - $ - $ - $ 202 Collectively evaluated for impairment 6,880 1,335 335 891 166 9,607 Balance, September 30 $ 7,030 $ 1,387 $ 335 $ 891 $ 166 $ 9,809 Loans and leases: Individually evaluated for impairment $ 835 $ 507 $ 314 $ - $ - $ 1,656 Collectively evaluated for impairment 398,576 127,617 102,727 115,108 16,916 760,944 Ending balance:September 30 $ 399,411 $ 128,124 $ 103,041 $ 115,108 $ 16,916 $ 762,600 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. December 31, 2019 Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Allowance for loan and lease losses: Individually evaluated for impairment $ - $ 202 $ - $ - $ - $ 202 Collectively evaluated for impairment 4,564 1,650 109 426 138 6,887 Balance, December 31 $ 4,564 $ 1,852 $ 109 $ 426 $ 138 $ 7,089 Loans and leases: Individually evaluated for impairment $ 803 $ 694 $ 347 $ - $ - $ 1,844 Collectively evaluated for impairment 377,494 73,920 114,061 109,592 17,892 692,959 Ending balance:December 31 $ 378,297 $ 74,614 $ 114,408 $ 109,592 $ 17,892 $ 694,803 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. The Company rates all loans and leases by credit quality using the following designations: Grade 1 – Exceptional Exceptional loans and leases are top-quality loans to individuals whose financial credentials are well known to the Company. These loans and leases have excellent sources of repayment, are well documented and/or virtually free of risk (i.e., CD secured loans). Grade 2 – Quality Loans and Leases These loans and leases have excellent sources of repayment with no identifiable risk of collection, and they conform in all respects to Company policy and Indiana Department of Financial Institutions (“IDFI”) and Federal Deposit Insurance Corporation (“FDIC”) regulations. Documentation exceptions are minimal or are in the process of being corrected and are not of a type that could subsequently expose the Company to risk of loss. Grade 3 – Acceptable Loans This category is for “average” quality loans and leases. These loans and leases have adequate sources of repayment with little identifiable risk of collection and they conform to Company policy and IDFI/FDIC regulations. Grade 4 – Acceptable but Monitored Loans and leases in this category may have a greater than average risk due to financial weakness or uncertainty but do not appear to require classification as special mention or substandard loans. Loans and leases rated “4” need to be monitored on a regular basis to ascertain that the reasons for placing them in this category do not advance or worsen. Grade 5 – Special Mention Loans and leases in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company’s credit position at some future date. Special Mention loans and leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. This special mention rating is designed to identify a specific level of risk and concern about an asset’s quality. Although a special mention loan or leases has a higher probability of default than a pass rated loan or lease, its default is not imminent. Grade 6 – Substandard Loans and leases in this category are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Substandard loans and leases have a high probability of payment default, or they have other well-defined weaknesses. Such loans and leases have a distinct potential for loss; however, an individual loan’s or lease’s potential for loss does not have to be distinct for the loan or lease to be rated substandard. The following are examples of situations that might cause a loan or lease to be graded a “6”: · · · · Grade 7 – Doubtful A loan or lease classified as doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. A doubtful loan or lease has a high probability of total or substantial loss. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Because of high probability of loss, nonaccrual accounting treatment will be required for doubtful loans and leases. Grade 8 – Loss Loans and leases classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan or lease even though partial recovery may be effected in the future. The risk characteristics of each loan and lease portfolio segment are as follows: Commercial and Industrial Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Mortgage including Construction Loans in this segment include commercial loans, commercial construction loans, and multi-family loans. This segment also includes loans secured by 1-4 family residences which were made for investment purposes. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Residential, Brokered and Consumer Residential, brokered and consumer loans consist of three segments – residential mortgage loans, brokered mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Brokered mortgages are purchased residential mortgage loans meeting the Company’s criteria established for originating residential mortgage loans. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Leases Lease financing consists of direct financing leases and are used by commercial customers to finance capital purchases of equipment. The credit decisions for these transactions are based upon an assessment of the overall financial capacity of the applicant. A determination is made as to the applicant’s financial condition and ability to repay in accordance with the proposed terms as well as an overall assessment of the risks involved. The following tables present the credit risk profile of the Company’s loan and lease portfolio based on rating category and payment activity as of September 30, 2020 and December 31, 2019: September 30, 2020 Commercial Construction Commercial and and Multi- Residential Home Mortgage Industrial Development Family Mortgage Equity Leases Consumer Total 1-4 $ 236,663 $ 134,410 $ 55,694 $ 63,237 $ 119,342 $ 6,066 $ 115,024 $ 13,093 $ 743,529 5 Special Mention 7,416 3,912 - - 167 61 - - 11,556 6 Substandard 1,572 2,820 - - 2,947 84 18 8 7,449 7 Doubtful - - - - - - 66 - 66 8 Loss - - - - - - - - - $ 245,651 $ 141,142 $ 55,694 $ 63,237 $ 122,456 $ 6,211 $ 115,108 $ 13,101 $ 762,600 December 31, 2019 Commercial Construction Commercial and and Multi- Residential Home Mortgage Industrial Development Family Mortgage Equity Leases Consumer Total 1-4 Pass $ 220,240 $ 75,814 $ 53,426 $ 66,002 $ 127,888 $ 6,871 $ 109,424 $ 13,519 $ 673,184 5 Special Mention 7,489 5,731 - - 189 64 - - 13,473 6 Substandard 1,681 3,004 - - 3,217 61 94 15 8,072 7 Doubtful - - - - - - 74 - 74 8 Loss - - - - - - - - - $ 229,410 $ 84,549 $ 53,426 $ 66,002 $ 131,294 $ 6,996 $ 109,592 $ 13,534 $ 694,803 The following tables present the Company’s loan and lease portfolio aging analysis of the recorded investment in loans and leases as of September 30, 2020 and December 31, 2019: September 30, 2020 Delinquent Loans Total Portfolio Total Loans and Leases 30-59 Days 60-89 Days 90 Days and Total Past Loans and > 90 Days Past Due Past Due Over Due Current Leases Accruing Commercial mortgage $ - $ - $ 76 $ 76 $ 245,575 $ 245,651 $ - Commercial and industrial 65 303 452 820 140,322 141,142 - Construction and development - - - - 55,694 55,694 - Multi-family - - - - 63,237 63,237 - Residential mortgage 972 604 2,447 4,023 118,433 122,456 2,320 Home equity 69 - 41 110 6,101 6,211 41 Leases 59 30 44 133 114,975 115,108 - Consumer 101 14 8 123 12,978 13,101 8 Totals $ 1,266 $ 951 $ 3,068 $ 5,285 $ 757,315 $ 762,600 $ 2,369 December 31, 2019 Delinquent Loans Total Portfolio Total Loans and Leases 30-59 Days 60-89 Days 90 Days and Total Past Loans and > 90 Days Past Due Past Due Over Due Current Leases Accruing Commercial mortgage $ 217 $ - $ 184 $ 401 $ 229,009 $ 229,410 $ - Commercial and industrial 220 1,092 438 1,750 82,799 84,549 3 Construction and development - 257 249 506 52,920 53,426 249 Multi-family - - - - 66,002 66,002 - Residential mortgage 762 240 2,452 3,454 127,840 131,294 2,256 Home equity 189 36 15 240 6,756 6,996 15 Leases 108 29 79 216 109,376 109,592 49 Consumer 271 35 15 321 13,213 13,534 15 Totals $ 1,767 $ 1,689 $ 3,432 $ 6,888 $ 687,915 $ 694,803 $ 2,587 The following tables present the Company’s impaired loans and specific valuation allowance at September 30, 2020 and December 31, 2019: September 30, 2020 Unpaid Recorded Principal Specific Balance Balance Allowance Impaired loans without a specific valuation allowance Commercial mortgage $ 210 $ 255 $ - Commercial and industrial 452 781 - Residential mortgage 259 499 - $ 921 $ 1,535 $ - Impaired loans with a specific valuation allowance Commercial mortgage $ 625 $ 625 $ 150 Commercial and industrial 55 65 52 Residential mortgage 55 55 - $ 735 $ 745 $ 202 Total impaired loans Commercial mortgage $ 835 $ 880 $ 150 Commercial and industrial 507 846 52 Residential mortgage 314 554 - Total impaired loans $ 1,656 $ 2,280 $ 202 December 31, 2019 Unpaid Recorded Principal Specific Balance Balance Allowance Impaired loans without a specific valuation allowance Commercial mortgage $ 803 $ 1,256 $ - Commercial and industrial 435 3,220 - Residential mortgage 347 614 - $ 1,585 $ 5,090 $ - Impaired loans with a specific valuation allowance Commercial and industrial $ 259 $ 266 $ 202 $ 259 $ 266 $ 202 Total impaired loans Commercial mortgage $ 803 $ 1,256 $ - Commercial and industrial 694 3,486 202 Residential mortgage 347 614 - Total impaired loans $ 1,844 $ 5,356 $ 202 The following tables present the Company’s average investment in impaired loans and interest income recognized for the three and nine months ended September 30, 2020 and 2019. Average Investment in Interest Impaired Income Loans Recognized Three Months Ended September 30, 2020: Total impaired loans Commercial mortgage $ 841 $ 12 Commercial and industrial 488 5 Residential mortgage 269 6 Total impaired loans $ 1,598 $ 23 Average Investment in Interest Impaired Income Loans Recognized Nine Months Ended September 30, 2020: Total impaired loans Commercial mortgage $ 819 $ 30 Commercial and industrial 586 33 Residential mortgage 298 12 Total impaired loans $ 1,703 $ 75 Average Investment in Interest Impaired Income Loans Recognized Three Months Ended September 30, 2019: Total impaired loans Commercial mortgage $ 684 $ 10 Commercial and industrial 858 11 Residential mortgage 363 6 Total impaired loans $ 1,905 $ 27 Average Investment in Interest Impaired Income Loans Recognized Nine Months Ended September 30, 2019: Total impaired loans Commercial mortgage $ 706 $ 32 Commercial and industrial 950 51 Residential mortgage 375 14 Total impaired loans $ 2,031 $ 97 The following table presents the Company’s nonaccrual loans and leases at September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Commercial mortgage $ 211 $ 342 Commercial and industrial 507 494 Residential mortgage 219 315 Leases 66 74 $ 1,003 $ 1,225 During the three and nine months ended September 30, 2020 and 2019, there were no newly classified troubled debt restructured loans or leases (“TDRs”). For the three and nine months ended September 30, 2020 and 2019, the Company recorded no charge-offs related to TDRs. As of both September 30, 2020 and December 31, 2019, TDRs had a related allowance of $52,000. During the three and nine months ended September 30, 2020, there were no TDRs for which there was a payment default within the first 12 months of the modification. The Coronavirus Aid, Relief, and Economic Security Act of 2020 ("CARES Act") provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined under the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. In March 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. As of September 30, 2020, the Company had 70 loan and lease modifications outstanding related to the COVID-19 pandemic with an outstanding loan balance totaling $35.3 million in accordance with the CARES Act. Accordingly, the Company does not account for such loan modifications as TDRs. Loan modifications in accordance with the CARES Act and related regulatory guidance are still subject to an evaluation in regard to determining whether or not a loan is deemed to be impaired. At September 30, 2020 and December 31, 2019, the balance of real estate owned includes $32,000 and $0, respectively, of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At September 30, 2020 and December 31, 2019, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process was $283,000 and $190,000, respectively. The following lists the components of the net investment in direct financing leases: September 30, December 31, 2020 2019 $ 126,853 $ 120,570 6,027 5,720 132,880 126,290 (17,772 ) (16,698 ) $ 115,108 $ 109,592 Leases serviced by First Bank Richmond for the benefit of others totaled approximately $189,000 and $715,000 at September 30, 2020 and December 31, 2019, respectively. Additionally, certain leases have been sold with partial recourse. First Bank Richmond estimates and records its obligation based upon historical loss percentages. At September 30, 2020 and December 31, 2019, First Bank Richmond has recorded a recourse obligation on leases sold with recourse of $0, and has a maximum exposure of $411,000 for these leases. The following table summarizes the future minimum lease payments receivable subsequent to September 30, 2020: 2020 $ 13,643 2021 45,969 2022 32,333 2023 20,299 2024 11,089 Thereafter 3,520 $ 126,853 |
Note 5_ Fair Values of Financia
Note 5: Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 5: Fair Values of Financial Instruments | Note 5: Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 Recurring Measurements The following tables present the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Available-for-sale securities U.S. Treasury securities $ 4,999 $ - $ 4,999 $ - SBA Pools 14,904 - 14,904 - Federal agencies 8,007 - 8,007 - State and municipal obligations 76,433 - 76,433 - Mortgage-backed securities - GSE residential 127,494 - 127,494 - Equity securities 13 13 - - $ 231,850 $ 13 $ 231,837 $ - Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2019 Available-for-sale securities U.S. Treasury securities $ 2,991 $ - $ 2,991 $ - SBA Pools 14,383 - 14,383 - Federal agencies 21,646 - 21,646 - State and municipal obligations 45,840 - 45,840 - Mortgage-backed securities - GSE residential 116,911 - 116,911 - Equity securities 13 13 - - $ 201,784 $ 13 $ 201,771 $ - Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the nine months ended September 30, 2020. Available-for-Sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy, which includes equity securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include agency securities, obligations of state and political subdivisions, and mortgage-backed securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Nonrecurring Measurements The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Impaired loans, collateral dependent $ 533 $ - $ - $ 533 Mortgage-servicing rights 1,505 - - 1,505 December 31, 2019 Impaired loans, collateral dependent $ 57 $ - $ - $ 57 Mortgage-servicing rights 1,033 - - 1,033 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Impaired Loans, Net of ALLL The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Mortgage-Servicing Rights Mortgage-servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed and default rate. Due to the nature of the valuation inputs, mortgage-servicing rights are classified within Level 3 of the hierarchy. Mortgage-servicing rights are tested for impairment on a quarterly basis based on an independent valuation. The valuation is reviewed by management for accuracy and for potential impairment. Unobservable (Level 3) Inputs The following tables present the fair value measurement of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019: Fair Value at September 30, Valuation Unobservable 2020 Technique Inputs Range Collateral-dependent $ 533 Appraisal Marketability 0% - 12% impaired loans discount $ 1,505 Discounted Discount rate 10% cash flow Fair Value at December 31, Valuation Unobservable 2019 Technique Inputs Range Collateral-dependent $ 57 Appraisal Marketability 0% - 75% impaired loans discount Mortgage-servicing rights $ 1,033 Discounted Discount rate 10% cash flow Fair Value of Financial Instruments The following tables present estimated fair values of the Company’s financial instruments at September 30, 2020 and December 31, 2019. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Financial assets $ 16,698 $ 16,698 $ - $ - 231,850 13 231,837 - 12,315 - 12,644 - 750,646 - - 773,331 9,170 - 9,170 - 4,830 - 4,830 - Financial liabilities 663,057 - 665,623 - 176,000 - 183,716 - 242 - 242 - Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2019 Financial assets $ 40,597 $ 40,597 $ - $ - 201,784 13 201,771 - 15,917 - 16,156 - 687,258 - - 687,789 7,600 - 7,600 - 3,052 - 3,052 - Financial liabilities 617,219 - 619,635 - 154,000 - 155,304 - 297 - 297 - |
Note 6_ Earnings per Share
Note 6: Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 6: Earnings per Share | Note 6: Earnings per Share Basic EPS is computed by dividing net income allocated to common stock by the weighted average number of common shares outstanding during the period which excludes the participating securities. Diluted EPS includes the dilutive effect of additional potential common shares from stock compensation awards, but excludes awards considered participating securities. ESOP shares are not considered outstanding for EPS until they are earned. The following table presents the computation of basic and diluted EPS for the periods indicated: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Net income $ 2,531,553 $ 7,489,876 Shares outstanding for Basic EPS: Average shares outstanding 13,313,399 13,455,031 Less: average unearned ESOP Shares 1,032,367 1,045,788 Shares outstanding for Basic EPS 12,281,032 12,409,243 Additional Dilutive Shares - - Shares outstanding for Diluted EPS 12,281,032 12,409,243 Basic Earnings Per Share $ 0.21 $ 0.60 Diluted Earnings Per Share $ 0.21 $ 0.60 For the Period July 2, 2019 to July 2, 2019 to September 30, 2019 September 30, 2019 Net income (loss) $ (3,250,335 ) Shares outstanding for Basic EPS: Average shares outstanding 13,526,625 Less: average unearned ESOP Shares 1,052,804 Shares outstanding for Basic EPS 12,473,821 Additional Dilutive Shares - Shares outstanding for Diluted EPS 12,473,821 Basic Earnings (loss) Per Share $ (0.26 ) Diluted Earnings (loss) Per Share $ (0.26 ) |
Note 7_ Employee Stock Ownershi
Note 7: Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 7: Employee Stock Ownership Plan | Note 7: Employee Stock Ownership Plan As part of the corporate reorganization and related stock offering, the Company established an Employee Stock Ownership Plan (ESOP) covering substantially all employees. The ESOP acquired 1,082,130 shares of Company common stock at an average of $13.59 per share on the open market with funds provided by a loan from the Company. Accordingly, $14,706,000 of common stock acquired by the ESOP was shown as a reduction of stockholders’ equity. Shares are released to participants proportionately as the loan is repaid. ESOP expense for the three months ended September 30, 2020 and 2019 was $151,548 and $121,000, respectively. ESOP expense for the nine months ended September 30, 2020 was $481,000 and $121,000, respectively. September 30, 2020 September 30, 2019 Earned ESOP shares 63,125 9,018 Unearned ESOP shares 1,019,005 1,073,112 Total ESOP shares 1,082,130 1,082,130 Quoted per share price $ 10.58 $ 13.99 Fair value of earned shares $ 667,863 $ 126,162 Fair value of unearned shares $ 10,781,073 $ 15,012,837 |
Note 8_ Benefit Plans
Note 8: Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 8: Benefit Plans | Note 8: Benefit Plans The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (the “DB Plan”), an industry-wide, tax-qualified defined-benefit pension plan. As previously disclosed, the Company has frozen and intends to terminate the Bank’s participation in the DB Plan, which will require it to pay an amount based on the underfunded status of the plan. As of September 30, 2020, the Company has accrued $17.5 million for this expense. The actual termination expense of the DB Plan may be higher or lower than the amount currently accrued for by the Company depending on a number of factors, including but not limited to the interest rate environment and the valuation of plan assets. Due to the current low interest rate environment, terminating the DB Plan at this time would require the Company to incur a substantial additional expense, in the range of approximately $8.0 million to $10.0 million, over and above the amount presently accrued. As a result, the Company’s Board of Directors will continue to monitor and evaluate the timing of, and costs associated with, termination of the DB Plan. Any additional expenses associated with the termination of the DB Plan will negatively impact our results of operations in the future. |
Note 9_ Subsequent Event
Note 9: Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
Note 9: Subsequent Event | Note 9: Subsequent Event Subsequent to September 30, 2020, the Company completed its previously announced stock repurchase program, repurchasing the remaining 94,232 shares at an average price of $11.07 per share. On October 21, 2020, the Board of Directors of the Company authorized a second stock repurchase program for up to 664,969 shares, or approximately 5%, of its outstanding shares. |
Note 3_ Investment Securities_
Note 3: Investment Securities: Marketable Securities, Policy (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Marketable Securities, Policy | Securities with a carrying value of $99,128,000 and $114,907,000 were pledged at September 30, 2020 and December 31, 2019, respectively, to secure certain deposits and for other purposes as permitted or required by law. Proceeds from sales of securities available for sale for the three and nine months ended September 30, 2020 were $12,560,000 and $34,738,000, respectively. For the three and nine months ended September 30, 2019, proceeds from sales of securities were $35,247,000 and $57,704,000 respectively. Gross gains were recognized on the sale of securities available-for-sale for the three and nine months ended September 30, 2020 and 2019 of $120,000, $255,000, $104,000 and $170,000, respectively. Gross losses were recognized on the sale of securities available for sale for the three and nine months ended September 30, 2020 of $3,000 and $59,000, respectively. Gross losses were recognized on the sale of securities available for sale for the three and nine months ended September 30, 2019 of $82,000 and $87,000, respectively. Certain investments in debt securities, as reflected in the table below, are reported in the condensed consolidated financial statements and notes at an amount less than their historical cost. Total fair value of these investments at September 30, 2020 and December 31, 2019 was $42,956,000 and $138,391,000, respectively, which is approximately 18% and 63% of the Company’s aggregated available-for-sale and held-to-maturity investment portfolio at those dates, respectively. These declines primarily resulted from changes in market interest rates since their purchase. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any other securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. |
Note 3_ Investment Securities_2
Note 3: Investment Securities: Federal Agencies and U.S. Treasury Securities Policy (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Federal Agencies and U.S. Treasury Securities Policy | Federal Agencies. |
Note 3_ Investment Securities_3
Note 3: Investment Securities: Mortgage-Backed Securities - GSE Residential and SBA Pools (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Mortgage-Backed Securities - GSE Residential and SBA Pools | Mortgage-Backed Securities – GSE Residential and SBA Pools. |
Note 3_ Investment Securities_4
Note 3: Investment Securities: State and Municipal Obligations Policy (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
State and Municipal Obligations Policy | State and Municipal Obligations. |
Note 4_ Loans, Leases and All_2
Note 4: Loans, Leases and Allowance: Credit Quality Indicators and Characteristics Policy (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Credit Quality Indicators and Characteristics Policy | The Company rates all loans and leases by credit quality using the following designations: Grade 1 – Exceptional Exceptional loans and leases are top-quality loans to individuals whose financial credentials are well known to the Company. These loans and leases have excellent sources of repayment, are well documented and/or virtually free of risk (i.e., CD secured loans). Grade 2 – Quality Loans and Leases These loans and leases have excellent sources of repayment with no identifiable risk of collection, and they conform in all respects to Company policy and Indiana Department of Financial Institutions (“IDFI”) and Federal Deposit Insurance Corporation (“FDIC”) regulations. Documentation exceptions are minimal or are in the process of being corrected and are not of a type that could subsequently expose the Company to risk of loss. Grade 3 – Acceptable Loans This category is for “average” quality loans and leases. These loans and leases have adequate sources of repayment with little identifiable risk of collection and they conform to Company policy and IDFI/FDIC regulations. Grade 4 – Acceptable but Monitored Loans and leases in this category may have a greater than average risk due to financial weakness or uncertainty but do not appear to require classification as special mention or substandard loans. Loans and leases rated “4” need to be monitored on a regular basis to ascertain that the reasons for placing them in this category do not advance or worsen. Grade 5 – Special Mention Loans and leases in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company’s credit position at some future date. Special Mention loans and leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. This special mention rating is designed to identify a specific level of risk and concern about an asset’s quality. Although a special mention loan or leases has a higher probability of default than a pass rated loan or lease, its default is not imminent. Grade 6 – Substandard Loans and leases in this category are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Substandard loans and leases have a high probability of payment default, or they have other well-defined weaknesses. Such loans and leases have a distinct potential for loss; however, an individual loan’s or lease’s potential for loss does not have to be distinct for the loan or lease to be rated substandard. The following are examples of situations that might cause a loan or lease to be graded a “6”: · · · · Grade 7 – Doubtful A loan or lease classified as doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. A doubtful loan or lease has a high probability of total or substantial loss. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Because of high probability of loss, nonaccrual accounting treatment will be required for doubtful loans and leases. Grade 8 – Loss Loans and leases classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan or lease even though partial recovery may be effected in the future. |
Note 4_ Loans, Leases and All_3
Note 4: Loans, Leases and Allowance: Risk Characteristics of Commercial and Industrial Loans (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Risk Characteristics of Commercial and Industrial Loans | Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. |
Note 4_ Loans, Leases and All_4
Note 4: Loans, Leases and Allowance: Risk Characteristics of Commercial Mortgage including Construction Loans (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Risk Characteristics of Commercial Mortgage including Construction Loans | Loans in this segment include commercial loans, commercial construction loans, and multi-family loans. This segment also includes loans secured by 1-4 family residences which were made for investment purposes. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. |
Note 4_ Loans, Leases and All_5
Note 4: Loans, Leases and Allowance: Risk Characteristics of Residential, Brokered and Consumer Loans (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Risk Characteristics of Residential, Brokered and Consumer Loans | Residential, brokered and consumer loans consist of three segments – residential mortgage loans, brokered mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Brokered mortgages are purchased residential mortgage loans meeting the Company’s criteria established for originating residential mortgage loans. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. |
Note 4_ Loans, Leases and All_6
Note 4: Loans, Leases and Allowance: Risk Characteristics of Leases (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Risk Characteristics of Leases | Lease financing consists of direct financing leases and are used by commercial customers to finance capital purchases of equipment. The credit decisions for these transactions are based upon an assessment of the overall financial capacity of the applicant. A determination is made as to the applicant’s financial condition and ability to repay in accordance with the proposed terms as well as an overall assessment of the risks involved. |
Note 4_ Loans, Leases and All_7
Note 4: Loans, Leases and Allowance: Troubled Debt Restructuring (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Troubled Debt Restructuring | During the three and nine months ended September 30, 2020 and 2019, there were no newly classified troubled debt restructured loans or leases (“TDRs”). For the three and nine months ended September 30, 2020 and 2019, the Company recorded no charge-offs related to TDRs. As of both September 30, 2020 and December 31, 2019, TDRs had a related allowance of $52,000. During the three and nine months ended September 30, 2020, there were no TDRs for which there was a payment default within the first 12 months of the modification. |
Note 4_ Loans, Leases and All_8
Note 4: Loans, Leases and Allowance: Real Estate Owned and Foreclosed Real Estate Policy (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Real Estate Owned and Foreclosed Real Estate Policy | At September 30, 2020 and December 31, 2019, the balance of real estate owned includes $32,000 and $0, respectively, of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At September 30, 2020 and December 31, 2019, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process was $283,000 and $190,000, respectively. |
Note 3_ Investment Securities_5
Note 3: Investment Securities: Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Marketable Securities | September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available for sale U.S. treasury securities $ 4,999 $ - $ - $ 4,999 SBA Pools 14,907 97 100 14,904 Federal agencies 7,998 14 5 8,007 State and municipal obligations 74,798 1,898 263 76,433 Mortgage-backed securities - government-sponsored enterprises (GSE) residential 125,210 2,370 86 127,494 Equity securities 13 - - 13 227,925 4,379 454 231,850 Held to maturity State and municipal obligations 12,315 329 - 12,644 12,315 329 - 12,644 $ 240,240 $ 4,708 $ 454 $ 244,494 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available for sale U.S. Treasury securities $ 2,997 $ - $ 6 $ 2,991 SBA Pools 14,497 - 114 14,383 Federal agencies 21,765 - 119 21,646 State and municipal obligations 45,635 357 152 45,840 Mortgage-backed securities - government-sponsored enterprises (GSE) residential 117,769 111 969 116,911 Equity securities 13 - - 13 202,676 468 1,360 201,784 Held to maturity State and municipal obligations 15,917 244 5 16,156 15,917 - 5 16,156 $ 218,593 $ 712 $ 1,365 $ 217,940 |
Note 3_ Investment Securities_6
Note 3: Investment Securities: Investments Classified by Contractual Maturity Date (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Investments Classified by Contractual Maturity Date | Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ 5,933 $ 5,940 $ 2,442 $ 2,455 One to five years 5,875 6,081 6,785 6,969 Five to ten years 26,270 26,715 2,028 2,141 After ten years 64,624 65,607 1,060 1,079 102,702 104,343 12,315 12,644 Mortgage-backed securities - GSE residential 125,210 127,494 - - Equity securities 13 13 - - Totals $ 227,925 $ 231,850 $ 12,315 $ 12,644 |
Note 3_ Investment Securities_7
Note 3: Investment Securities: Unrealized Gain (Loss) on Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Unrealized Gain (Loss) on Investments | September 30, 2020 Less Than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses Available-for-sale SBA Pools $ 6,618 $ 53 $ 4,742 $ 47 $ 11,360 $ 100 Federal agencies 995 5 - - 995 5 State and municipal obligations 14,278 263 - - 14,278 263 Mortgage-backed securities - GSE residential 15,449 84 874 2 16,323 86 Total available-for-sale 37,340 405 5,616 49 42,956 454 Total temporarily impaired securities $ 37,340 $ 405 $ 5,616 $ 49 $ 42,956 $ 454 December 31, 2019 Less Than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses Available-for-sale U.S. Treasury securities $ 2,991 $ 6 $ - $ - $ 2,991 $ 6 SBA Pools 14,262 114 - - 14,262 114 Federal agencies 9,657 109 2,990 10 12,647 119 State and municipal obligations 12,606 130 2,948 22 15,554 152 Mortgage-backed securities - GSE residential 57,928 464 34,344 505 92,272 969 Total available-for-sale 97,444 823 40,282 537 137,726 1,360 Held-to-maturity State and municipal obligations 665 5 - - 665 5 Total temporarily impaired securities $ 98,109 $ 828 $ 40,282 $ 537 $ 138,391 $ 1,365 |
Note 4_ Loans, Leases and All_9
Note 4: Loans, Leases and Allowance: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Accounts, Notes, Loans and Financing Receivable | September 30, December 31, 2020 2019 Commercial mortgage $ 245,651 $ 229,410 Commercial and industrial 141,142 84,549 Construction and development 55,694 53,426 Multi-family 63,237 66,002 Residential mortgage 122,456 131,294 Home equity 6,211 6,996 Direct financing leases 115,108 109,592 Consumer 13,101 13,534 762,600 694,803 Less Allowance for loan and lease losses 9,809 7,089 Deferred loan fees 2,145 456 $ 750,646 $ 687,258 |
Note 4_ Loans, Leases and Al_10
Note 4: Loans, Leases and Allowance: Financing Receivable, Allowance for Credit Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Financing Receivable, Allowance for Credit Loss | Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Three Months Ended September 30, 2020: Balance, beginning of period $ 5,517 $ 1,710 $ 308 $ 838 $ 148 $ 8,521 Provision (credit) for losses 1,509 (353 ) 10 93 41 1,300 Charge-offs - - - (110 ) (26 ) (136 ) Recoveries 4 30 17 70 3 124 Balance, end of period $ 7,030 $ 1,387 $ 335 $ 891 $ 166 $ 9,809 Nine Months Ended September 30, 2020: Balance, beginning of period $ 4,564 $ 1,852 $ 109 $ 426 $ 138 $ 7,089 Provision (credit) for losses 2,426 (535 ) 220 662 57 2,830 Charge-offs - - (35 ) (300 ) (47 ) (382 ) Recoveries 40 70 41 103 18 272 Balance, end of period $ 7,030 $ 1,387 $ 335 $ 891 $ 166 $ 9,809 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Three Months Ended September 30, 2019: Balance, beginning of period $ 3,892 $ 1,768 $ 122 $ 385 $ 114 $ 6,281 Provision (credit) for losses 586 11 (34 ) 71 71 705 Charge-offs (14 ) - (6 ) (107 ) (51 ) (178 ) Recoveries 4 2 22 54 6 88 Balance, end of period $ 4,468 $ 1,781 $ 104 $ 403 $ 140 $ 6,896 Nine Months Ended September 30, 2019: Balance, beginning of period $ 3,147 $ 1,817 $ 139 $ 389 $ 108 $ 5,600 Provision (credit) for losses 1,321 206 (41 ) 121 108 1,715 Charge-offs (14 ) (250 ) (42 ) (284 ) (100 ) (690 ) Recoveries 14 8 48 177 24 271 Balance, end of period $ 4,468 $ 1,781 $ 104 $ 403 $ 140 $ 6,896 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on portfolio segment and impairment method as of September 30, 2020 and December 31, 2019: September 30, 2020 Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Allowance for loan and lease losses: Individually evaluated for impairment $ 150 $ 52 $ - $ - $ - $ 202 Collectively evaluated for impairment 6,880 1,335 335 891 166 9,607 Balance, September 30 $ 7,030 $ 1,387 $ 335 $ 891 $ 166 $ 9,809 Loans and leases: Individually evaluated for impairment $ 835 $ 507 $ 314 $ - $ - $ 1,656 Collectively evaluated for impairment 398,576 127,617 102,727 115,108 16,916 760,944 Ending balance:September 30 $ 399,411 $ 128,124 $ 103,041 $ 115,108 $ 16,916 $ 762,600 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. December 31, 2019 Commercial Commercial and Residential Mortgage (1) Industrial Mortgage (2) Leases Consumer Total Allowance for loan and lease losses: Individually evaluated for impairment $ - $ 202 $ - $ - $ - $ 202 Collectively evaluated for impairment 4,564 1,650 109 426 138 6,887 Balance, December 31 $ 4,564 $ 1,852 $ 109 $ 426 $ 138 $ 7,089 Loans and leases: Individually evaluated for impairment $ 803 $ 694 $ 347 $ - $ - $ 1,844 Collectively evaluated for impairment 377,494 73,920 114,061 109,592 17,892 692,959 Ending balance:December 31 $ 378,297 $ 74,614 $ 114,408 $ 109,592 $ 17,892 $ 694,803 (1) Commercial mortgage includes commercial and multifamily real estate loans. (2) Residential mortgage includes one- to four-family and home equity loans. |
Note 4_ Loans, Leases and Al_11
Note 4: Loans, Leases and Allowance: Financing Receivable Credit Quality Indicators (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Financing Receivable Credit Quality Indicators | September 30, 2020 Commercial Construction Commercial and and Multi- Residential Home Mortgage Industrial Development Family Mortgage Equity Leases Consumer Total 1-4 $ 236,663 $ 134,410 $ 55,694 $ 63,237 $ 119,342 $ 6,066 $ 115,024 $ 13,093 $ 743,529 5 Special Mention 7,416 3,912 - - 167 61 - - 11,556 6 Substandard 1,572 2,820 - - 2,947 84 18 8 7,449 7 Doubtful - - - - - - 66 - 66 8 Loss - - - - - - - - - $ 245,651 $ 141,142 $ 55,694 $ 63,237 $ 122,456 $ 6,211 $ 115,108 $ 13,101 $ 762,600 December 31, 2019 Commercial Construction Commercial and and Multi- Residential Home Mortgage Industrial Development Family Mortgage Equity Leases Consumer Total 1-4 Pass $ 220,240 $ 75,814 $ 53,426 $ 66,002 $ 127,888 $ 6,871 $ 109,424 $ 13,519 $ 673,184 5 Special Mention 7,489 5,731 - - 189 64 - - 13,473 6 Substandard 1,681 3,004 - - 3,217 61 94 15 8,072 7 Doubtful - - - - - - 74 - 74 8 Loss - - - - - - - - - $ 229,410 $ 84,549 $ 53,426 $ 66,002 $ 131,294 $ 6,996 $ 109,592 $ 13,534 $ 694,803 |
Note 4_ Loans, Leases and Al_12
Note 4: Loans, Leases and Allowance: Schedule of Loans Classified by Aging Analysis (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Loans Classified by Aging Analysis | September 30, 2020 Delinquent Loans Total Portfolio Total Loans and Leases 30-59 Days 60-89 Days 90 Days and Total Past Loans and > 90 Days Past Due Past Due Over Due Current Leases Accruing Commercial mortgage $ - $ - $ 76 $ 76 $ 245,575 $ 245,651 $ - Commercial and industrial 65 303 452 820 140,322 141,142 - Construction and development - - - - 55,694 55,694 - Multi-family - - - - 63,237 63,237 - Residential mortgage 972 604 2,447 4,023 118,433 122,456 2,320 Home equity 69 - 41 110 6,101 6,211 41 Leases 59 30 44 133 114,975 115,108 - Consumer 101 14 8 123 12,978 13,101 8 Totals $ 1,266 $ 951 $ 3,068 $ 5,285 $ 757,315 $ 762,600 $ 2,369 December 31, 2019 Delinquent Loans Total Portfolio Total Loans and Leases 30-59 Days 60-89 Days 90 Days and Total Past Loans and > 90 Days Past Due Past Due Over Due Current Leases Accruing Commercial mortgage $ 217 $ - $ 184 $ 401 $ 229,009 $ 229,410 $ - Commercial and industrial 220 1,092 438 1,750 82,799 84,549 3 Construction and development - 257 249 506 52,920 53,426 249 Multi-family - - - - 66,002 66,002 - Residential mortgage 762 240 2,452 3,454 127,840 131,294 2,256 Home equity 189 36 15 240 6,756 6,996 15 Leases 108 29 79 216 109,376 109,592 49 Consumer 271 35 15 321 13,213 13,534 15 Totals $ 1,767 $ 1,689 $ 3,432 $ 6,888 $ 687,915 $ 694,803 $ 2,587 |
Note 4_ Loans, Leases and Al_13
Note 4: Loans, Leases and Allowance: Impaired Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Impaired Financing Receivables | September 30, 2020 Unpaid Recorded Principal Specific Balance Balance Allowance Impaired loans without a specific valuation allowance Commercial mortgage $ 210 $ 255 $ - Commercial and industrial 452 781 - Residential mortgage 259 499 - $ 921 $ 1,535 $ - Impaired loans with a specific valuation allowance Commercial mortgage $ 625 $ 625 $ 150 Commercial and industrial 55 65 52 Residential mortgage 55 55 - $ 735 $ 745 $ 202 Total impaired loans Commercial mortgage $ 835 $ 880 $ 150 Commercial and industrial 507 846 52 Residential mortgage 314 554 - Total impaired loans $ 1,656 $ 2,280 $ 202 December 31, 2019 Unpaid Recorded Principal Specific Balance Balance Allowance Impaired loans without a specific valuation allowance Commercial mortgage $ 803 $ 1,256 $ - Commercial and industrial 435 3,220 - Residential mortgage 347 614 - $ 1,585 $ 5,090 $ - Impaired loans with a specific valuation allowance Commercial and industrial $ 259 $ 266 $ 202 $ 259 $ 266 $ 202 Total impaired loans Commercial mortgage $ 803 $ 1,256 $ - Commercial and industrial 694 3,486 202 Residential mortgage 347 614 - Total impaired loans $ 1,844 $ 5,356 $ 202 The following tables present the Company’s average investment in impaired loans and interest income recognized for the three and nine months ended September 30, 2020 and 2019. Average Investment in Interest Impaired Income Loans Recognized Three Months Ended September 30, 2020: Total impaired loans Commercial mortgage $ 841 $ 12 Commercial and industrial 488 5 Residential mortgage 269 6 Total impaired loans $ 1,598 $ 23 Average Investment in Interest Impaired Income Loans Recognized Nine Months Ended September 30, 2020: Total impaired loans Commercial mortgage $ 819 $ 30 Commercial and industrial 586 33 Residential mortgage 298 12 Total impaired loans $ 1,703 $ 75 Average Investment in Interest Impaired Income Loans Recognized Three Months Ended September 30, 2019: Total impaired loans Commercial mortgage $ 684 $ 10 Commercial and industrial 858 11 Residential mortgage 363 6 Total impaired loans $ 1,905 $ 27 Average Investment in Interest Impaired Income Loans Recognized Nine Months Ended September 30, 2019: Total impaired loans Commercial mortgage $ 706 $ 32 Commercial and industrial 950 51 Residential mortgage 375 14 Total impaired loans $ 2,031 $ 97 |
Note 4_ Loans, Leases and Al_14
Note 4: Loans, Leases and Allowance: Financing Receivable, Nonaccrual (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Financing Receivable, Nonaccrual | September 30, December 31, 2020 2019 Commercial mortgage $ 211 $ 342 Commercial and industrial 507 494 Residential mortgage 219 315 Leases 66 74 $ 1,003 $ 1,225 |
Note 4_ Loans, Leases and Al_15
Note 4: Loans, Leases and Allowance: Direct Financing Lease, Lease Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Direct Financing Lease, Lease Income | September 30, December 31, 2020 2019 $ 126,853 $ 120,570 6,027 5,720 132,880 126,290 (17,772 ) (16,698 ) $ 115,108 $ 109,592 |
Note 4_ Loans, Leases and Al_16
Note 4: Loans, Leases and Allowance: Schedule of Future Minimum Lease Payments for Capital Leases (Tables) | Sep. 30, 2020 |
Tables/Schedules | |
Schedule of Future Minimum Lease Payments for Capital Leases | 2020 $ 13,643 2021 45,969 2022 32,333 2023 20,299 2024 11,089 Thereafter 3,520 $ 126,853 |
Note 5_ Fair Values of Financ_2
Note 5: Fair Values of Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Available-for-sale securities U.S. Treasury securities $ 4,999 $ - $ 4,999 $ - SBA Pools 14,904 - 14,904 - Federal agencies 8,007 - 8,007 - State and municipal obligations 76,433 - 76,433 - Mortgage-backed securities - GSE residential 127,494 - 127,494 - Equity securities 13 13 - - $ 231,850 $ 13 $ 231,837 $ - Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2019 Available-for-sale securities U.S. Treasury securities $ 2,991 $ - $ 2,991 $ - SBA Pools 14,383 - 14,383 - Federal agencies 21,646 - 21,646 - State and municipal obligations 45,840 - 45,840 - Mortgage-backed securities - GSE residential 116,911 - 116,911 - Equity securities 13 13 - - $ 201,784 $ 13 $ 201,771 $ - |
Note 5_ Fair Values of Financ_3
Note 5: Fair Values of Financial Instruments: Fair Value Measurements, Nonrecurring (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Fair Value Measurements, Nonrecurring | Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Impaired loans, collateral dependent $ 533 $ - $ - $ 533 Mortgage-servicing rights 1,505 - - 1,505 December 31, 2019 Impaired loans, collateral dependent $ 57 $ - $ - $ 57 Mortgage-servicing rights 1,033 - - 1,033 |
Note 5_ Fair Values of Financ_4
Note 5: Fair Values of Financial Instruments: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Fair Value at September 30, Valuation Unobservable 2020 Technique Inputs Range Collateral-dependent $ 533 Appraisal Marketability 0% - 12% impaired loans discount $ 1,505 Discounted Discount rate 10% cash flow Fair Value at December 31, Valuation Unobservable 2019 Technique Inputs Range Collateral-dependent $ 57 Appraisal Marketability 0% - 75% impaired loans discount Mortgage-servicing rights $ 1,033 Discounted Discount rate 10% cash flow |
Note 5_ Fair Values of Financ_5
Note 5: Fair Values of Financial Instruments: Schedule of Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Fair Value of Financial Instruments | Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Financial assets $ 16,698 $ 16,698 $ - $ - 231,850 13 231,837 - 12,315 - 12,644 - 750,646 - - 773,331 9,170 - 9,170 - 4,830 - 4,830 - Financial liabilities 663,057 - 665,623 - 176,000 - 183,716 - 242 - 242 - Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2019 Financial assets $ 40,597 $ 40,597 $ - $ - 201,784 13 201,771 - 15,917 - 16,156 - 687,258 - - 687,789 7,600 - 7,600 - 3,052 - 3,052 - Financial liabilities 617,219 - 619,635 - 154,000 - 155,304 - 297 - 297 - |
Note 6_ Earnings per Share_ Sch
Note 6: Earnings per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Net income $ 2,531,553 $ 7,489,876 Shares outstanding for Basic EPS: Average shares outstanding 13,313,399 13,455,031 Less: average unearned ESOP Shares 1,032,367 1,045,788 Shares outstanding for Basic EPS 12,281,032 12,409,243 Additional Dilutive Shares - - Shares outstanding for Diluted EPS 12,281,032 12,409,243 Basic Earnings Per Share $ 0.21 $ 0.60 Diluted Earnings Per Share $ 0.21 $ 0.60 For the Period July 2, 2019 to July 2, 2019 to September 30, 2019 September 30, 2019 Net income (loss) $ (3,250,335 ) Shares outstanding for Basic EPS: Average shares outstanding 13,526,625 Less: average unearned ESOP Shares 1,052,804 Shares outstanding for Basic EPS 12,473,821 Additional Dilutive Shares - Shares outstanding for Diluted EPS 12,473,821 Basic Earnings (loss) Per Share $ (0.26 ) Diluted Earnings (loss) Per Share $ (0.26 ) |
Note 7_ Employee Stock Owners_2
Note 7: Employee Stock Ownership Plan: Employee Stock Ownership Plan (ESOP) Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Employee Stock Ownership Plan (ESOP) Disclosures | September 30, 2020 September 30, 2019 Earned ESOP shares 63,125 9,018 Unearned ESOP shares 1,019,005 1,073,112 Total ESOP shares 1,082,130 1,082,130 Quoted per share price $ 10.58 $ 13.99 Fair value of earned shares $ 667,863 $ 126,162 Fair value of unearned shares $ 10,781,073 $ 15,012,837 |
Note 1_ Nature of Operations _2
Note 1: Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands | Jul. 01, 2019USD ($)shares |
Details | |
Proceeds from Issuance Initial Public Offering | $ 130,300 |
Shares contributed to charitable foundation | shares | 500,000 |
RMB-Maryland contribution to charitable foundation | $ 1,250 |
Note 3_ Investment Securities_8
Note 3: Investment Securities: Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities Investment | ||
Investment Securities Amortized Cost | $ 240,240 | $ 218,593 |
Investment Securities Gross Unrealized Gains | 4,708 | 712 |
Investment Securities Gross Unrealized Losses | 454 | 1,365 |
Investment Securities Fair Value | 244,494 | 217,940 |
Available-for-sale Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 227,925 | 202,676 |
Available-for-sale Securities, Gross Unrealized Gain | 4,379 | 468 |
Available-for-sale Securities, Gross Unrealized Loss | 454 | 1,360 |
Available for Sale Securities, Fair Value | 231,850 | 201,784 |
Held-to-maturity Securities | ||
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment | 12,315 | 15,917 |
Held to Maturity Securities Gross Unrealized Gains | 329 | 0 |
Held to Maturity Securities Gross Unrealized Losses | 0 | 5 |
Debt Securities, Held-to-maturity, Fair Value | 12,644 | 16,156 |
Equity Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 13 | 13 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Available for Sale Securities, Fair Value | 13 | 13 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Amortized Cost Basis | 125,210 | 117,769 |
Available-for-sale Securities, Gross Unrealized Gain | 2,370 | 111 |
Available-for-sale Securities, Gross Unrealized Loss | 86 | 969 |
Available for Sale Securities, Fair Value | 127,494 | 116,911 |
US Treasury Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 4,999 | 2,997 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 6 |
Available for Sale Securities, Fair Value | 4,999 | 2,991 |
Small Business Administration Pools | ||
Available-for-sale Securities, Amortized Cost Basis | 14,907 | 14,497 |
Available-for-sale Securities, Gross Unrealized Gain | 97 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 100 | 114 |
Available for Sale Securities, Fair Value | 14,904 | 14,383 |
US Government Corporations and Agencies Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 7,998 | 21,765 |
Available-for-sale Securities, Gross Unrealized Gain | 14 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 5 | 119 |
Available for Sale Securities, Fair Value | 8,007 | 21,646 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 74,798 | 45,635 |
Available-for-sale Securities, Gross Unrealized Gain | 1,898 | 357 |
Available-for-sale Securities, Gross Unrealized Loss | 263 | 152 |
Available for Sale Securities, Fair Value | 76,433 | 45,840 |
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment | 12,315 | 15,917 |
Held to Maturity Securities Gross Unrealized Gains | 329 | 244 |
Held to Maturity Securities Gross Unrealized Losses | 0 | 5 |
Debt Securities, Held-to-maturity, Fair Value | $ 12,644 | $ 16,156 |
Note 3_ Investment Securities_9
Note 3: Investment Securities: Investments Classified by Contractual Maturity Date (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One | $ 5,933 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, Year One | 5,940 |
Held to Maturity Securities Debt Maturities Within One Year Amortized Cost | 2,442 |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, Year One | 2,455 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 5,875 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 6,081 |
Held to Maturity Securities Debt Maturities Within After one to Five Years Amortized Cost | 6,785 |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 6,969 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 | 26,270 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 | 26,715 |
Held to Maturity Securities Debt Maturities Within After Five to Ten Years Amortized Cost | 2,028 |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 | 2,141 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 10 | 64,624 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10 | 65,607 |
Held to Maturity Securities Debt Maturities Within After Ten Years Amortized Cost | 1,060 |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10 | 1,079 |
Available for Sale Securities Contractual Maturity Amortized Cost | 102,702 |
Available for Sale Securities Contractual Maturity Fair Value | 104,343 |
Held to Maturity Securities Contractual Maturity Amortized Cost | 12,315 |
Held to Maturity Securities Contractual Maturity Fair Value | 12,644 |
Available-for-sale Securities | |
Available for Sale Securities Contractual Maturity Amortized Cost | 227,925 |
Available for Sale Securities Contractual Maturity Fair Value | 231,850 |
Held-to-maturity Securities | |
Held to Maturity Securities Contractual Maturity Amortized Cost | 12,315 |
Held to Maturity Securities Contractual Maturity Fair Value | 12,644 |
Equity Securities | |
Available for Sale Securities Contractual Maturity Amortized Cost | 13 |
Available for Sale Securities Contractual Maturity Fair Value | 13 |
Held to Maturity Securities Contractual Maturity Amortized Cost | 0 |
Held to Maturity Securities Contractual Maturity Fair Value | 0 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | |
Available for Sale Securities Contractual Maturity Amortized Cost | 125,210 |
Available for Sale Securities Contractual Maturity Fair Value | 127,494 |
Held to Maturity Securities Contractual Maturity Amortized Cost | 0 |
Held to Maturity Securities Contractual Maturity Fair Value | $ 0 |
Note 3_ Investment Securitie_10
Note 3: Investment Securities: Marketable Securities, Policy (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Details | |||||||
Securities Pledged as Security, Carrying Value | $ 99,128,000 | $ 114,907,000 | $ 99,128,000 | $ 99,128,000 | $ 114,907,000 | ||
Proceeds from sales of securities available for sale | 12,560,000 | $ 35,247,000 | 34,737,656 | $ 57,703,608 | |||
Available-for-sale Securities, Gross Realized Gains | 120,000 | 104,000 | 255,000 | 170,000 | |||
Available-for-sale Securities, Gross Realized Losses | $ 3,000 | $ 82,000 | $ 59,000 | $ 87,000 | |||
Investments Reported at Less Than Historical Cost, Fair Value | $ 42,956,000 | $ 138,391,000 | |||||
Investments Reported at Less Than Historical Cost as Percentage of Total Securities | 18.00% | 63.00% |
Note 3_ Investment Securitie_11
Note 3: Investment Securities: Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Temporarily Impaired Securities Less Than Twelve Months Fair Value | $ 37,340 | $ 98,109 |
Temporarily Impaired Securities Less than 12 Months Unrealized Losses | 405 | 828 |
Temporarily Impaired Securities Twelve Months or More Fair Value | 5,616 | 40,282 |
Temporarily Impaired Securities 12 Months or More Unrealized Losses | 49 | 537 |
Temporarily Impaired Securities Fair Value | 42,956 | 138,391 |
Temporarily Impaired Securities Unrealized Losses | 454 | 1,365 |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 37,340 | 97,444 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 405 | 823 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 5,616 | 40,282 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 49 | 537 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 42,956 | 137,726 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 454 | 1,360 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 15,449 | 57,928 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 84 | 464 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 874 | 34,344 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2 | 505 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16,323 | 92,272 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 86 | 969 |
Small Business Administration Pools | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 6,618 | 14,262 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 53 | 114 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 4,742 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 47 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11,360 | 14,262 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 100 | 114 |
US Government Corporations and Agencies Securities | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 995 | 9,657 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 5 | 109 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 2,990 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 995 | 12,647 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 5 | 119 |
US States and Political Subdivisions Debt Securities | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 14,278 | 12,606 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 263 | 130 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 2,948 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 22 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 14,278 | 15,554 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 263 | 152 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 665 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 5 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 665 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 5 | |
US Treasury Securities | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 2,991 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,991 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 6 |
Note 4_ Loans, Leases and Al_17
Note 4: Loans, Leases and Allowance: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss | ||
Loans Receivable | $ 9,809 | $ 7,089 |
Loans Receivable, Gross | ||
Loans Receivable | 762,600 | 694,803 |
Loans Receivable | ||
Loans Receivable | 750,646 | 687,258 |
Home Equity Loan | ||
Loans Receivable | 6,211 | 6,996 |
Multifamily | ||
Loans Receivable | 63,237 | 66,002 |
Construction | ||
Loans Receivable | 55,694 | 53,426 |
Commercial Loan | ||
Loans Receivable | 141,142 | 84,549 |
Direct financing leases | ||
Loans Receivable | 115,108 | 109,592 |
Consumer Loan | ||
Loans Receivable | 13,101 | 13,534 |
Deferred loan fees | ||
Loans Receivable | 2,145 | 456 |
Commercial Real Estate | ||
Loans Receivable | 245,651 | 229,410 |
Residential Real Estate | ||
Loans Receivable | $ 122,456 | $ 131,294 |
Note 4_ Loans, Leases and Al_18
Note 4: Loans, Leases and Allowance: Financing Receivable, Allowance for Credit Loss (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Loans Receivable, Gross | ||||||
Provision (credit) for losses | $ 1,300 | $ 705 | $ 2,830 | $ 1,715 | ||
Charge-offs | (136) | (178) | (382) | (690) | ||
Recoveries | 124 | 88 | 272 | 271 | ||
Individually evaluated for impairment | 202 | 202 | $ 202 | |||
Collectively evaluated for impairment | 9,607 | 9,607 | 6,887 | |||
Individually evaluated for impairment | 1,656 | 1,656 | 1,844 | |||
Collectively evaluated for impairment | 760,944 | 760,944 | 692,959 | |||
Financing Receivable Individuall and Collectively Evaluated for Impairment | 762,600 | 762,600 | 694,803 | |||
Loans Receivable, Gross | Beginning of period | ||||||
Allowance for Credit Losses on Financing Receivables | 8,521 | 6,281 | 7,089 | 5,600 | ||
Loans Receivable, Gross | End of period | ||||||
Allowance for Credit Losses on Financing Receivables | 9,809 | 6,896 | 9,809 | 6,896 | ||
Financing Receivable Allowance for Credit Losses Individuall and Collectively Evaluated for Impairment | 9,809 | 9,809 | 7,089 | |||
Commercial Loan | ||||||
Provision (credit) for losses | (353) | 11 | (535) | 206 | ||
Charge-offs | 0 | 0 | 0 | (250) | ||
Recoveries | 30 | 2 | 70 | 8 | ||
Individually evaluated for impairment | 52 | 52 | 202 | |||
Collectively evaluated for impairment | 1,335 | 1,335 | 1,650 | |||
Individually evaluated for impairment | 507 | 507 | 694 | |||
Collectively evaluated for impairment | 127,617 | 127,617 | 73,920 | |||
Financing Receivable Individuall and Collectively Evaluated for Impairment | 128,124 | 128,124 | 74,614 | |||
Commercial Loan | Beginning of period | ||||||
Allowance for Credit Losses on Financing Receivables | 1,710 | 1,768 | 1,852 | 1,817 | ||
Commercial Loan | End of period | ||||||
Allowance for Credit Losses on Financing Receivables | 1,387 | 1,781 | 1,387 | 1,781 | ||
Financing Receivable Allowance for Credit Losses Individuall and Collectively Evaluated for Impairment | 1,387 | 1,387 | 1,852 | |||
Direct financing leases | ||||||
Provision (credit) for losses | 93 | 71 | 662 | 121 | ||
Charge-offs | (110) | (107) | (300) | (284) | ||
Recoveries | 70 | 54 | 103 | 177 | ||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 891 | 891 | 426 | |||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 115,108 | 115,108 | 109,592 | |||
Financing Receivable Individuall and Collectively Evaluated for Impairment | 115,108 | 115,108 | 109,592 | |||
Direct financing leases | Beginning of period | ||||||
Allowance for Credit Losses on Financing Receivables | 838 | 385 | 426 | 389 | ||
Direct financing leases | End of period | ||||||
Allowance for Credit Losses on Financing Receivables | 891 | 403 | 891 | 403 | ||
Financing Receivable Allowance for Credit Losses Individuall and Collectively Evaluated for Impairment | 891 | 891 | 426 | |||
Consumer Loan | ||||||
Provision (credit) for losses | 41 | 71 | 57 | 108 | ||
Charge-offs | (26) | (51) | (47) | (100) | ||
Recoveries | 3 | 6 | 18 | 24 | ||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 166 | 166 | 138 | |||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 16,916 | 16,916 | 17,892 | |||
Financing Receivable Individuall and Collectively Evaluated for Impairment | 16,916 | 16,916 | 17,892 | |||
Consumer Loan | Beginning of period | ||||||
Allowance for Credit Losses on Financing Receivables | 148 | 114 | 138 | 108 | ||
Consumer Loan | End of period | ||||||
Allowance for Credit Losses on Financing Receivables | 166 | 140 | 166 | 140 | ||
Financing Receivable Allowance for Credit Losses Individuall and Collectively Evaluated for Impairment | 166 | 166 | 138 | |||
Commercial Real Estate | ||||||
Provision (credit) for losses | [1] | 1,509 | 586 | 2,426 | 1,321 | |
Charge-offs | [1] | 0 | (14) | 0 | (14) | |
Recoveries | [1] | 4 | 4 | 40 | 14 | |
Individually evaluated for impairment | [1] | 150 | 150 | 0 | ||
Collectively evaluated for impairment | [1] | 6,880 | 6,880 | 4,564 | ||
Individually evaluated for impairment | [1] | 835 | 835 | 803 | ||
Collectively evaluated for impairment | [1] | 398,576 | 398,576 | 377,494 | ||
Financing Receivable Individuall and Collectively Evaluated for Impairment | [1] | 399,411 | 399,411 | 378,297 | ||
Commercial Real Estate | Beginning of period | ||||||
Allowance for Credit Losses on Financing Receivables | [1] | 5,517 | 3,892 | 4,564 | 3,147 | |
Commercial Real Estate | End of period | ||||||
Allowance for Credit Losses on Financing Receivables | [1] | 7,030 | 4,468 | 7,030 | 4,468 | |
Financing Receivable Allowance for Credit Losses Individuall and Collectively Evaluated for Impairment | [1] | 7,030 | 7,030 | 4,564 | ||
Residential Real Estate | ||||||
Provision (credit) for losses | [2] | 10 | (34) | 220 | (41) | |
Charge-offs | [2] | 0 | (6) | (35) | (42) | |
Recoveries | [2] | 17 | 22 | 41 | 48 | |
Individually evaluated for impairment | [2] | 0 | 0 | 0 | ||
Collectively evaluated for impairment | [2] | 335 | 335 | 109 | ||
Individually evaluated for impairment | [2] | 314 | 314 | 347 | ||
Collectively evaluated for impairment | [2] | 102,727 | 102,727 | 114,061 | ||
Financing Receivable Individuall and Collectively Evaluated for Impairment | [2] | 103,041 | 103,041 | 114,408 | ||
Residential Real Estate | Beginning of period | ||||||
Allowance for Credit Losses on Financing Receivables | [2] | 308 | 122 | 109 | 139 | |
Residential Real Estate | End of period | ||||||
Allowance for Credit Losses on Financing Receivables | [2] | 335 | $ 104 | 335 | $ 104 | |
Financing Receivable Allowance for Credit Losses Individuall and Collectively Evaluated for Impairment | [2] | $ 335 | $ 335 | $ 109 | ||
[1] | Commercial mortgage includes commercial and multifamily real estate loans. | |||||
[2] | Residential mortgage includes one- to four-family and home equity loans. |
Note 4_ Loans, Leases and Al_19
Note 4: Loans, Leases and Allowance: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans Receivable | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | $ 743,529 | $ 673,184 |
Loans Receivable | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 11,556 | 13,473 |
Loans Receivable | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 7,449 | 8,072 |
Loans Receivable | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 66 | 74 |
Loans Receivable | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Loans Receivable | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 762,600 | 694,803 |
Home Equity Loan | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 6,066 | 6,871 |
Home Equity Loan | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 61 | 64 |
Home Equity Loan | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 84 | 61 |
Home Equity Loan | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Home Equity Loan | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Home Equity Loan | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 6,211 | 6,996 |
Multifamily | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 63,237 | 66,002 |
Multifamily | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Multifamily | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Multifamily | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Multifamily | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Multifamily | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 63,237 | 66,002 |
Construction | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 55,694 | 53,426 |
Construction | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Construction | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Construction | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Construction | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Construction | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 55,694 | 53,426 |
Commercial Loan | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 134,410 | 75,814 |
Commercial Loan | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 3,912 | 5,731 |
Commercial Loan | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 2,820 | 3,004 |
Commercial Loan | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Commercial Loan | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Commercial Loan | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 141,142 | 84,549 |
Direct financing leases | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 115,024 | 109,424 |
Direct financing leases | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Direct financing leases | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 18 | 94 |
Direct financing leases | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 66 | 74 |
Direct financing leases | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Direct financing leases | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 115,108 | 109,592 |
Consumer Loan | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 13,093 | 13,519 |
Consumer Loan | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Consumer Loan | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 8 | 15 |
Consumer Loan | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Consumer Loan | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Consumer Loan | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 13,101 | 13,534 |
Commercial Real Estate | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 236,663 | 220,240 |
Commercial Real Estate | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 7,416 | 7,489 |
Commercial Real Estate | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 1,572 | 1,681 |
Commercial Real Estate | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Commercial Real Estate | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Commercial Real Estate | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 245,651 | 229,410 |
Residential Real Estate | Pass | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 119,342 | 127,888 |
Residential Real Estate | Special Mention | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 167 | 189 |
Residential Real Estate | Substandard | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 2,947 | 3,217 |
Residential Real Estate | Doubtful | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Residential Real Estate | Unlikely to be Collected Financing Receivable | ||
Loan Portfolio Amount Subject to Internal Grading System Category | 0 | 0 |
Residential Real Estate | Credit Risk by Loan Portfolio Category | ||
Loan Portfolio Amount Subject to Internal Grading System Category | $ 122,456 | $ 131,294 |
Note 4_ Loans, Leases and Al_20
Note 4: Loans, Leases and Allowance: Schedule of Loans Classified by Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Asset, 30 to 59 Days Past Due | Loans Receivable | ||
Financing Receivables Past Due By Aging Analysis | $ 1,266 | $ 1,767 |
Financial Asset, 30 to 59 Days Past Due | Home Equity Loan | ||
Financing Receivables Past Due By Aging Analysis | 69 | 189 |
Financial Asset, 30 to 59 Days Past Due | Multifamily | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due | Construction | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due | Commercial Loan | ||
Financing Receivables Past Due By Aging Analysis | 65 | 220 |
Financial Asset, 30 to 59 Days Past Due | Direct financing leases | ||
Financing Receivables Past Due By Aging Analysis | 59 | 108 |
Financial Asset, 30 to 59 Days Past Due | Consumer Loan | ||
Financing Receivables Past Due By Aging Analysis | 101 | 271 |
Financial Asset, 30 to 59 Days Past Due | Commercial Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 0 | 217 |
Financial Asset, 30 to 59 Days Past Due | Residential Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 972 | 762 |
Financial Asset, 60 to 89 Days Past Due | Loans Receivable | ||
Financing Receivables Past Due By Aging Analysis | 951 | 1,689 |
Financial Asset, 60 to 89 Days Past Due | Home Equity Loan | ||
Financing Receivables Past Due By Aging Analysis | 0 | 36 |
Financial Asset, 60 to 89 Days Past Due | Multifamily | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due | Construction | ||
Financing Receivables Past Due By Aging Analysis | 0 | 257 |
Financial Asset, 60 to 89 Days Past Due | Commercial Loan | ||
Financing Receivables Past Due By Aging Analysis | 303 | 1,092 |
Financial Asset, 60 to 89 Days Past Due | Direct financing leases | ||
Financing Receivables Past Due By Aging Analysis | 30 | 29 |
Financial Asset, 60 to 89 Days Past Due | Consumer Loan | ||
Financing Receivables Past Due By Aging Analysis | 14 | 35 |
Financial Asset, 60 to 89 Days Past Due | Commercial Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due | Residential Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 604 | 240 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Loans Receivable | ||
Financing Receivables Past Due By Aging Analysis | 3,068 | 3,432 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Home Equity Loan | ||
Financing Receivables Past Due By Aging Analysis | 41 | 15 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Multifamily | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Construction | ||
Financing Receivables Past Due By Aging Analysis | 0 | 249 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial Loan | ||
Financing Receivables Past Due By Aging Analysis | 452 | 438 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Direct financing leases | ||
Financing Receivables Past Due By Aging Analysis | 44 | 79 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer Loan | ||
Financing Receivables Past Due By Aging Analysis | 8 | 15 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 76 | 184 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Residential Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 2,447 | 2,452 |
Financing Receivables Past Due | Loans Receivable | ||
Financing Receivables Past Due By Aging Analysis | 5,285 | 6,888 |
Financing Receivables Past Due | Home Equity Loan | ||
Financing Receivables Past Due By Aging Analysis | 110 | 240 |
Financing Receivables Past Due | Multifamily | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financing Receivables Past Due | Construction | ||
Financing Receivables Past Due By Aging Analysis | 0 | 506 |
Financing Receivables Past Due | Commercial Loan | ||
Financing Receivables Past Due By Aging Analysis | 820 | 1,750 |
Financing Receivables Past Due | Direct financing leases | ||
Financing Receivables Past Due By Aging Analysis | 133 | 216 |
Financing Receivables Past Due | Consumer Loan | ||
Financing Receivables Past Due By Aging Analysis | 123 | 321 |
Financing Receivables Past Due | Commercial Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 76 | 401 |
Financing Receivables Past Due | Residential Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 4,023 | 3,454 |
Financing Receivables Current | Loans Receivable | ||
Financing Receivables Past Due By Aging Analysis | 757,315 | 687,915 |
Financing Receivables Current | Home Equity Loan | ||
Financing Receivables Past Due By Aging Analysis | 6,101 | 6,756 |
Financing Receivables Current | Multifamily | ||
Financing Receivables Past Due By Aging Analysis | 63,237 | 66,002 |
Financing Receivables Current | Construction | ||
Financing Receivables Past Due By Aging Analysis | 55,694 | 52,920 |
Financing Receivables Current | Commercial Loan | ||
Financing Receivables Past Due By Aging Analysis | 140,322 | 82,799 |
Financing Receivables Current | Direct financing leases | ||
Financing Receivables Past Due By Aging Analysis | 114,975 | 109,376 |
Financing Receivables Current | Consumer Loan | ||
Financing Receivables Past Due By Aging Analysis | 12,978 | 13,213 |
Financing Receivables Current | Commercial Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 245,575 | 229,009 |
Financing Receivables Current | Residential Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 118,433 | 127,840 |
Financing Receivables Portfolio Loans and Leases | Loans Receivable | ||
Financing Receivables Past Due By Aging Analysis | 762,600 | 694,803 |
Financing Receivables Portfolio Loans and Leases | Home Equity Loan | ||
Financing Receivables Past Due By Aging Analysis | 6,211 | 6,996 |
Financing Receivables Portfolio Loans and Leases | Multifamily | ||
Financing Receivables Past Due By Aging Analysis | 63,237 | 66,002 |
Financing Receivables Portfolio Loans and Leases | Construction | ||
Financing Receivables Past Due By Aging Analysis | 55,694 | 53,426 |
Financing Receivables Portfolio Loans and Leases | Commercial Loan | ||
Financing Receivables Past Due By Aging Analysis | 141,142 | 84,549 |
Financing Receivables Portfolio Loans and Leases | Direct financing leases | ||
Financing Receivables Past Due By Aging Analysis | 115,108 | 109,592 |
Financing Receivables Portfolio Loans and Leases | Consumer Loan | ||
Financing Receivables Past Due By Aging Analysis | 13,101 | 13,534 |
Financing Receivables Portfolio Loans and Leases | Commercial Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 245,651 | 229,410 |
Financing Receivables Portfolio Loans and Leases | Residential Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 122,456 | 131,294 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Loans Receivable | ||
Financing Receivables Past Due By Aging Analysis | 2,369 | 2,587 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Home Equity Loan | ||
Financing Receivables Past Due By Aging Analysis | 41 | 15 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Multifamily | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Construction | ||
Financing Receivables Past Due By Aging Analysis | 0 | 249 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Loan | ||
Financing Receivables Past Due By Aging Analysis | 0 | 3 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Direct financing leases | ||
Financing Receivables Past Due By Aging Analysis | 0 | 49 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Consumer Loan | ||
Financing Receivables Past Due By Aging Analysis | 8 | 15 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Real Estate | ||
Financing Receivables Past Due By Aging Analysis | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Residential Real Estate | ||
Financing Receivables Past Due By Aging Analysis | $ 2,320 | $ 2,256 |
Note 4_ Loans, Leases and Al_21
Note 4: Loans, Leases and Allowance: Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Financing Receivables Without a Specific Valuation Allowance | |||||
Impaired Financing Receivable, Recorded Investment | $ 921 | $ 921 | $ 1,585 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,535 | 1,535 | 5,090 | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Financing Receivables Without a Specific Valuation Allowance | Commercial Loan | |||||
Impaired Financing Receivable, Recorded Investment | 452 | 452 | 435 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 781 | 781 | 3,220 | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Financing Receivables Without a Specific Valuation Allowance | Commercial Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 210 | 210 | 803 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 255 | 255 | 1,256 | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Financing Receivables Without a Specific Valuation Allowance | Residential Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 259 | 259 | 347 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 499 | 499 | 614 | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Financing Receivables With a Specific Valuation Allowance | |||||
Impaired Financing Receivable, Recorded Investment | 735 | 735 | 259 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 745 | 745 | 266 | ||
Impaired Financing Receivable, Related Allowance | 202 | 202 | 202 | ||
Financing Receivables With a Specific Valuation Allowance | Commercial Loan | |||||
Impaired Financing Receivable, Recorded Investment | 55 | 55 | 259 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 65 | 65 | 266 | ||
Impaired Financing Receivable, Related Allowance | 52 | 52 | 202 | ||
Financing Receivables With a Specific Valuation Allowance | Commercial Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 625 | 625 | |||
Impaired Financing Receivable, Unpaid Principal Balance | 625 | 625 | |||
Impaired Financing Receivable, Related Allowance | 150 | 150 | |||
Financing Receivables With a Specific Valuation Allowance | Residential Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 55 | 55 | |||
Impaired Financing Receivable, Unpaid Principal Balance | 55 | 55 | |||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Impaired Financing Receivables | |||||
Impaired Financing Receivable, Recorded Investment | 1,656 | 1,656 | 1,844 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 2,280 | 2,280 | 5,356 | ||
Impaired Financing Receivable, Related Allowance | 202 | 202 | 202 | ||
Impaired Financing Receivable, Average Recorded Investment | $ 1,905 | 1,703 | $ 2,031 | ||
Impaired Financing Receivable Interest Income Recognized | 27 | 75 | 97 | ||
Impaired Financing Receivables | Commercial Loan | |||||
Impaired Financing Receivable, Recorded Investment | 507 | 507 | 694 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 846 | 846 | 3,486 | ||
Impaired Financing Receivable, Related Allowance | 52 | 52 | 202 | ||
Impaired Financing Receivable, Average Recorded Investment | 841 | 858 | 586 | 950 | |
Impaired Financing Receivable Interest Income Recognized | 12 | 11 | 33 | 51 | |
Impaired Financing Receivables | Commercial Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 835 | 835 | 803 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 880 | 880 | 1,256 | ||
Impaired Financing Receivable, Related Allowance | 150 | 150 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment | 684 | 819 | 706 | ||
Impaired Financing Receivable Interest Income Recognized | 10 | 30 | 32 | ||
Impaired Financing Receivables | Residential Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 314 | 314 | 347 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 554 | 554 | 614 | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | $ 0 | ||
Impaired Financing Receivable, Average Recorded Investment | 488 | 363 | 298 | 375 | |
Impaired Financing Receivable Interest Income Recognized | $ 5 | $ 6 | $ 12 | $ 14 |
Note 4_ Loans, Leases and Al_22
Note 4: Loans, Leases and Allowance: Financing Receivable, Nonaccrual (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivables Nonaccrual | ||
Financing Receivable, Nonaccrual | $ 1,003 | $ 1,225 |
Commercial Loan | ||
Financing Receivable, Nonaccrual | 507 | 494 |
Direct financing leases | ||
Financing Receivable, Nonaccrual | 66 | 74 |
Commercial Real Estate | ||
Financing Receivable, Nonaccrual | 211 | 342 |
Residential Real Estate | ||
Financing Receivable, Nonaccrual | $ 219 | $ 315 |
Note 4_ Loans, Leases and Al_23
Note 4: Loans, Leases and Allowance: Troubled Debt Restructuring (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Details | |||||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | 0 | 0 | 0 | 0 | |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | $ 0 | $ 0 | $ 0 | |
Troubled Debt Restructurings Related Allowance | $ 52 | $ 52 | $ 52 |
Note 4_ Loans, Leases and Al_24
Note 4: Loans, Leases and Allowance: Real Estate Owned and Foreclosed Real Estate Policy (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Details | ||
Foreclosed Residential Real Estate With Physical Possession | $ 32 | $ 0 |
Consumer Mortgage Loans Secured by Residential Real Estate Properties in Process of Foreclosure | $ 283 | $ 190 |
Note 4_ Loans, Leases and Al_25
Note 4: Loans, Leases and Allowance: Direct Financing Lease, Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Details | ||
Total minimum lease payments to be received | $ 126,853 | $ 120,570 |
Initial direct costs | 6,027 | 5,720 |
Direct Financing Lease, Gross Investment in Lease | 132,880 | 126,290 |
Direct Financing Leases Unearned Income | (17,772) | (16,698) |
Net investment in direct finance leases | $ 115,108 | $ 109,592 |
Note 4_ Loans, Leases and Al_26
Note 4: Loans, Leases and Allowance: Leases Serviced for the Benefit of Others (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Leases Serviced for the Benefit of Others | $ 189,000 | $ 715,000 |
Recorded Recourse Obligation on Leases Sold With Recourse | $ 0 | 0 |
Maximum Exposure of Recorded Recourse Obligation on Leases Sold With Recourse | $ 411,000 |
Note 4_ Loans, Leases and Al_27
Note 4: Loans, Leases and Allowance: Schedule of Future Minimum Lease Payments for Capital Leases (Details) | Sep. 30, 2020USD ($) |
Details | |
2020 | $ 13,643 |
Capital Leases, Future Minimum Payments Receivable | $ 126,853 |
Note 5_ Fair Values of Financ_6
Note 5: Fair Values of Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Equity Securities | ||
Recurring Assets, Fair Value Disclosure | $ 13 | $ 13 |
Assets Measured on Recurring Basis Fair Value | ||
Recurring Assets, Fair Value Disclosure | 231,850 | 201,784 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | 127,494 | 116,911 |
US Treasury Securities | ||
Recurring Assets, Fair Value Disclosure | 4,999 | 2,991 |
Small Business Administration Pools | ||
Recurring Assets, Fair Value Disclosure | 14,904 | 14,383 |
US Government Corporations and Agencies Securities | ||
Recurring Assets, Fair Value Disclosure | 8,007 | 21,646 |
US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | 76,433 | 45,840 |
Fair Value, Inputs, Level 1 | Equity Securities | ||
Recurring Assets, Fair Value Disclosure | 13 | 13 |
Fair Value, Inputs, Level 1 | Assets Measured on Recurring Basis Fair Value | ||
Recurring Assets, Fair Value Disclosure | 13 | 13 |
Fair Value, Inputs, Level 1 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | US Treasury Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Small Business Administration Pools | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | US Government Corporations and Agencies Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Equity Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Assets Measured on Recurring Basis Fair Value | ||
Recurring Assets, Fair Value Disclosure | 231,837 | 201,771 |
Fair Value, Inputs, Level 2 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | 127,494 | 116,911 |
Fair Value, Inputs, Level 2 | US Treasury Securities | ||
Recurring Assets, Fair Value Disclosure | 4,999 | 2,991 |
Fair Value, Inputs, Level 2 | Small Business Administration Pools | ||
Recurring Assets, Fair Value Disclosure | 14,904 | 14,383 |
Fair Value, Inputs, Level 2 | US Government Corporations and Agencies Securities | ||
Recurring Assets, Fair Value Disclosure | 8,007 | 21,646 |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | 76,433 | 45,840 |
Fair Value, Inputs, Level 3 | Equity Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Assets Measured on Recurring Basis Fair Value | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | US Treasury Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Small Business Administration Pools | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | US Government Corporations and Agencies Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | $ 0 | $ 0 |
Note 5_ Fair Values of Financ_7
Note 5: Fair Values of Financial Instruments: Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Mortgage-servicing rights | ||
Non-recurring Assets, Fair Value Disclosure | $ 1,505 | $ 1,033 |
Impaired loans collateral dependent | ||
Non-recurring Assets, Fair Value Disclosure | 533 | 57 |
Fair Value, Inputs, Level 1 | Mortgage-servicing rights | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Impaired loans collateral dependent | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Mortgage-servicing rights | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Impaired loans collateral dependent | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Mortgage-servicing rights | ||
Non-recurring Assets, Fair Value Disclosure | 1,505 | 1,033 |
Fair Value, Inputs, Level 3 | Impaired loans collateral dependent | ||
Non-recurring Assets, Fair Value Disclosure | $ 533 | $ 57 |
Note 5_ Fair Values of Financ_8
Note 5: Fair Values of Financial Instruments: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Mortgage-servicing rights | ||
Assets Measured at Fair Value on a Nonrecurring Basis (Level 3) | $ 1,505 | $ 1,033 |
Valuation Technique of Fair Value Assets Measured on a Nonrecurring Basis | Discounted | Discounted |
Unobservable Inputs of Fair Value Assets Measured on a Nonrecurring Basis | Discount rate | Discount rate |
Fair Value Measurements Nonrecurring Range | 10.00% | 10.00% |
Impaired loans collateral dependent | ||
Assets Measured at Fair Value on a Nonrecurring Basis (Level 3) | $ 533 | $ 57 |
Valuation Technique of Fair Value Assets Measured on a Nonrecurring Basis | Appraisal | Appraisal |
Unobservable Inputs of Fair Value Assets Measured on a Nonrecurring Basis | Marketability | Marketability |
Minimum | Impaired loans collateral dependent | ||
Fair Value Measurements Nonrecurring Range | 0.00% | 0.00% |
Maximum | Impaired loans collateral dependent | ||
Fair Value Measurements Nonrecurring Range | 12.00% | 75.00% |
Note 5_ Fair Values of Financ_9
Note 5: Fair Values of Financial Instruments: Schedule of Fair Value of Financial Instruments (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
FHLB advances | $ 176,000,000 | $ 154,000,000 |
Fair Value, Inputs, Level 1 | Financial Assets | ||
Cash and cash equivalents | 16,698,000 | 40,597,000 |
Available for Sale Securities, Fair Value | 13,000 | 13,000 |
Held-to-maturity securities | 0 | 0 |
Loans and leases receivable, net | 0 | 0 |
Federal Reserve and FHLB Stock, Carrying Value | 0 | 0 |
Interest receivable | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial Liabilities | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Interest payable | 0 | 0 |
Fair Value, Inputs, Level 2 | Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Available for Sale Securities, Fair Value | 231,837,000 | 201,771,000 |
Held-to-maturity securities | 12,644,000 | 16,156,000 |
Loans and leases receivable, net | 0 | 0 |
Federal Reserve and FHLB Stock, Carrying Value | 9,170,000 | 7,600,000 |
Interest receivable | 4,830,000 | 3,052,000 |
Fair Value, Inputs, Level 2 | Financial Liabilities | ||
Deposits | 665,623,000 | 619,635,000 |
FHLB advances | 183,716,000 | 155,304,000 |
Interest payable | 242,000 | 297,000 |
Fair Value, Inputs, Level 3 | Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Available for Sale Securities, Fair Value | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
Loans and leases receivable, net | 773,331,000 | 687,789,000 |
Federal Reserve and FHLB Stock, Carrying Value | 0 | 0 |
Interest receivable | 0 | 0 |
Fair Value, Inputs, Level 3 | Financial Liabilities | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Value | Financial Assets | ||
Cash and cash equivalents | 16,698,000 | 40,597,000 |
Available for Sale Securities, Fair Value | 231,850,000 | 201,784,000 |
Held-to-maturity securities | 12,315,000 | 15,917,000 |
Loans and leases receivable, net | 750,646,000 | 687,258,000 |
Federal Reserve and FHLB Stock, Carrying Value | 9,170,000 | 7,600,000 |
Interest receivable | 4,830,000 | 3,052,000 |
Carrying Value | Financial Liabilities | ||
Deposits | 663,057,000 | 617,219,000 |
FHLB advances | 176,000,000 | 154,000,000 |
Interest payable | $ 242,000 | $ 297,000 |
Note 6_ Earnings per Share_ S_2
Note 6: Earnings per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||||
Net income (loss) | $ 2,531,553 | $ (3,250,335) | $ 7,489,876 | |||
Average shares outstanding | 13,313,399 | 13,526,625 | 13,455,031 | |||
Average Unearned ESOP Shares Value | $ 1,032,367 | $ 1,052,804 | $ 1,045,788 | |||
Shares outstanding for Basic EPS | 12,281,032 | 12,473,821 | 12,409,243 | |||
Additional Dilutive Shares | 0 | 0 | 0 | |||
Shares outstanding for Diluted EPS | 12,281,032 | 12,473,821 | 12,409,243 | |||
Basic Earnings Per Share | $ 0.21 | $ (0.26) | $ 0.60 | $ 0.60 | $ (0.26) | |
Diluted Earnings Per Share | $ 0.21 | $ (0.26) | $ 0.60 | $ 0.60 | $ (0.26) | |
Basic Earnings (loss) Per Share | $ (0.26) | |||||
Diluted Earnings (loss) Per Share | $ (0.26) |
Note 7_ Employee Stock Owners_3
Note 7: Employee Stock Ownership Plan: Employee Stock Ownership Plan (ESOP) Disclosures (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||
Earned ESOP shares | 63,125 | 9,018 |
Average unearned ESOP shares | 1,019,005 | 1,073,112 |
Total ESOP shares | 1,082,130 | 1,082,130 |
Quoted per share price | $ 10.58 | $ 13.99 |
Employee Stock Ownership Plan ESOP Allocated Shares | $ 667,863 | $ 126,162 |
Fair value of unearned shares | $ 10,781,073 | $ 15,012,837 |