Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 25, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Eureka Homestead Bancorp, Inc. | ||
Entity Central Index Key | 0001769725 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Title of 12(g) Security | Common Stock, par value $0.01 per share | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 12.3 | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,188,402 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and Cash Equivalents | $ 3,952,000 | $ 11,875,000 |
Interest-Bearing Deposits in Banks | 9,488,000 | 1,740,000 |
Investment Securities | 6,050,000 | 5,320,000 |
Loans Receivable, Net | 69,892,000 | 78,785,000 |
Loans Held-for-Sale | 3,610,000 | 1,637,000 |
Accrued Interest Receivable | 436,000 | 321,000 |
Federal Home Loan Bank Stock | 1,440,000 | 1,418,000 |
Premises and Equipment, Net | 661,000 | 704,000 |
Cash Surrender Value of Life Insurance | 4,137,000 | 4,044,000 |
Deferred Tax Asset | 5,000 | |
Prepaid Expenses and Other Assets | 230,000 | 155,000 |
Total Assets | 99,896,000 | 106,004,000 |
Liabilities: | ||
Deposits | 56,428,000 | 58,045,000 |
Advances from Federal Home Loan Bank | 19,443,000 | 21,581,000 |
Advance Payments by Borrowers for Taxes and Insurance | 1,309,000 | 1,425,000 |
Deferred Tax Liability | 12,000 | |
Accrued Expenses and Other Liabilities | 764,000 | 669,000 |
Total Liabilities | 77,956,000 | 81,720,000 |
Commitments and Contingencies (Note 15) | ||
Stockholders' Equity: | ||
Preferred Stock, $0.01 Par Value, 1,000,000 Shares Authorized, No Shares Issued | ||
Common Stock, $0.01 Par Value, 9,000,000 Shares Authorized, 1,210,902 and 1,429,676 Shares Issued and Outstanding on December 31, 2020 and December 31, 2019 | 12,000 | 14,000 |
Additional Paid-in Capital | 10,765,000 | 13,112,000 |
Unallocated Common Stock Held by: Employee Stock Ownership Plan (ESOP) | (1,052,000) | (1,098,000) |
Retained Earnings | 12,171,000 | 12,274,000 |
Accumulated Other Comprehensive Income (Loss) | 44,000 | (18,000) |
Total Stockholders' Equity | 21,940,000 | 24,284,000 |
Total Liabilities and Stockholders' Equity | $ 99,896,000 | $ 106,004,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 9,000,000 | 9,000,000 |
Common Stock, Shares Issued | 1,210,902 | 1,429,676 |
Common Stock, Shares Outstanding | 1,210,902 | 1,429,676 |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Income: | ||
Loans Receivable | $ 2,827 | $ 3,484 |
Investment Securities | 78 | 155 |
Interest-Bearing Deposits in Banks | 82 | 161 |
Total Interest Income | 2,987 | 3,800 |
Interest Expense: | ||
Deposits | 1,011 | 1,261 |
Advances from Federal Home Loan Bank | 585 | 682 |
Total Interest Expense | 1,596 | 1,943 |
Net Interest Income | 1,391 | 1,857 |
Provision (Credit) for Loan Losses | (2) | (9) |
Net Interest Income After Provision (Credit) for Loan Losses | 1,393 | 1,866 |
Non-Interest Income: | ||
Service Charges and Other Income | 84 | 100 |
Fees on Loans Sold | 799 | 541 |
Gain on Sales of Investment Securities | 6 | |
Income from Life Insurance | 92 | 94 |
Total Non-Interest Income | 975 | 741 |
Non-Interest Expenses: | ||
Salaries and Employee Benefits | 1,557 | 1,507 |
Occupancy Expense | 209 | 256 |
FDIC Deposit Insurance Premium and Examination Fees | 66 | 54 |
Data Processing | 113 | 120 |
Accounting and Consulting | 197 | 158 |
Insurance | 82 | 78 |
Legal fees | 67 | 20 |
Other | 242 | 221 |
Total Non-Interest Expenses | 2,533 | 2,414 |
(Loss) Income Before Income Tax (Benefit) Expense | (165) | 193 |
Income Tax (Benefit) Expense | (62) | 254 |
Net Loss | $ (103) | $ (61) |
(Loss) Per Share: Basic | $ (0.08) | $ (0.05) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ||
Net Loss | $ (103) | $ (61) |
Other Comprehensive Income: | ||
Unrealized Gains on Investment Securities | 79 | 105 |
Reclassification Adjustment for (Gains) Realized | (6) | |
Other Comprehensive Income Before Income Taxes | 79 | 99 |
Income Tax Effect | (17) | (21) |
Other Comprehensive Income, Net of Income Taxes | 62 | 78 |
Comprehensive (Loss) Income | $ (41) | $ 17 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unallocated ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total |
Balance at Beginning of Year at Dec. 31, 2018 | $ 12,335 | $ (96) | $ 12,239 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from Issuance of Common Stock | $ 14 | $ 13,102 | $ (1,144) | 11,972 | ||
ESOP shares earned | 10 | 46 | 56 | |||
Net Loss | (61) | (61) | ||||
Other Comprehensive Income | 78 | 78 | ||||
Balance at End of Year at Dec. 31, 2019 | 14 | 13,112 | (1,098) | 12,274 | (18) | 24,284 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ESOP shares earned | 46 | 46 | ||||
Stock Shares Repurchased | (2) | (2,347) | (2,349) | |||
Net Loss | (103) | (103) | ||||
Other Comprehensive Income | 62 | 62 | ||||
Balance at End of Year at Dec. 31, 2020 | $ 12 | $ 10,765 | $ (1,052) | $ 12,171 | $ 44 | $ 21,940 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net Loss | $ (103) | $ (61) |
Adjustments to Reconcile Net Loss to Net Cash (Used in) Operating Activities: | ||
Provision (Credit) for Loan Losses | (2) | (9) |
Depreciation Expense | 58 | 84 |
Amortization of FHLB Advance Prepayment Penalty | 59 | 71 |
Provision for Deferred Income Taxes | 254 | |
Net Amortization of Premium/Discount on Mortgage-Backed Securities | (21) | 25 |
(Gain) on Sale of Investment Securities | (6) | |
Stock Dividend on Federal Home Loan Bank Stock | (22) | (42) |
Non-cash Compensation for ESOP | 46 | 56 |
Net Decrease in Loans Held-for-Sale | (1,973) | (1,104) |
Changes in Assets and Liabilities: | ||
(Increase) Decrease in Accrued Interest Receivable | (115) | 16 |
(Increase) in CSV of Life Insurance | (92) | (94) |
(Increase) in Prepaid Expenses and Other Assets | (76) | (21) |
Increase (Decrease) in Accrued Expenses and Other Liabilities | 95 | (1,502) |
Net Cash (Used in) Operating Activities | (2,146) | (2,333) |
Cash Flows from Investing Activities: | ||
Net Decrease in Loans | 8,893 | 2,287 |
Proceeds from Maturities of Interest-Bearing Deposits in Banks | 20,962 | 2,247 |
Purchases of Interest-Bearing Deposits in Banks | (28,710) | (3,237) |
Purchases of Investment Securities | (1,919) | (1,991) |
Proceeds from Sales, Calls and Principal Repayments of Investment Securities | 1,291 | 2,541 |
Purchases of Premises and Equipment | (15) | (21) |
Net Cash Provided by Investing Activities | 502 | 1,826 |
Cash Flows from Financing Activities: | ||
Net (Decrease) Increase in Deposits | (1,617) | 1,862 |
Proceeds from Stock Offering | 13,116 | |
Shares Repurchased | (2,349) | |
Loan to ESOP for Purchase of Stock | (1,144) | |
Advances from Federal Home Loan Bank | 4,000 | 5,000 |
Payments on Advances from Federal Home Loan Bank | (6,197) | (9,520) |
Net (Decrease) in Advance Payments by Borrowers for Taxes and Insurance | (116) | (22) |
Net Cash (Used in) Provided by Financing Activities | (6,279) | 9,292 |
Net (Decrease) Increase in Cash and Cash Equivalents | (7,923) | 8,785 |
Cash and Cash Equivalents at Beginning of Period | 11,875 | 3,090 |
Cash and Cash Equivalents at End of Period | 3,952 | 11,875 |
Cash Paid for: | ||
Interest | 1,665 | 1,942 |
Income Taxes | (38) | (10) |
Supplemental Schedule for Noncash Investing and Financing Activities: | ||
Change in the Unrealized Gain/Loss on Investment Securities | $ 79 | $ 99 |
Nature of Operations, Principle
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies | |
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies | Note 1 - Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies - Nature of Operations Eureka Homestead Bancorp, Inc. (the “Company”) (OTC Pink Marketplace – ERKH) was formed to serve as the stock holding company for Eureka Homestead (the “Bank”) upon completion of its mutual-to-stock conversion. The conversion was effective July 9, 2019. In connection with the conversion, the Company sold 1,429,676 shares of its common stock, including 114,374 shares purchased by the Bank’s employee stock ownership plan, at a price of $10.00 per share. Unless otherwise indicated or the context otherwise requires, references in these financial statements to “we, “us”, “our”, “Company” and “Bank” refer collectively to Eureka Homestead Bancorp, Inc. and Eureka Homestead on a consolidated basis or to any of those entities, depending on the context. The Bank is a federal stock savings association subject to regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The Company conducts lending and deposit-taking activities from two locations in the New Orleans, Louisiana area. The Company provides service to customers in the New Orleans and surrounding areas. The accounting and reporting policies of the Company are in accordance with generally accepted accounting principles in the United States of America and conform to general practices within the industry. The Company’s loan portfolio consists mainly of loans to homeowners; however, the Company's loan portfolio does include loans secured by non-residential real estate. The majority of loans are secured by first mortgages on area real estate and are expected to be repaid from the cash flow of the borrower. Some of the activities upon which the economy of the New Orleans area is dependent include the petrochemical industry, the port of New Orleans and economic activity along that region of the Mississippi River, healthcare and tourism. Significant declines in these activities and the general economic conditions in the Company's market areas could affect the borrower’s ability to repay loans and cause a decline in value of the assets securing the loan portfolio. The Company’s operations are subject to customary business risks associated with activities of a financial institution. Some of those risks include competition from other institutions and changes in local or national economic conditions, interest rates and regulatory requirements. Principles of Consolidation The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the Company and the Bank, together referred to as the Company. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for losses on loans, the valuation of other real estate acquired, the valuation of deferred tax assets, other than temporary impairments of securities and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may have judgments different than management’s and we may determine to adjust our allowance as a result of these regulatory reviews. Because of these factors, it is reasonably possible that the estimated losses on loans may change in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Investment Securities Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 320, Investments, requires the classification of securities as trading, available-for-sale, or held-to-maturity. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically. Securities classified as available-for-sale are equity securities with readily determinable fair values and those debt securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movement in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. These securities are carried at estimated fair value based on information provided by a third party pricing service with any unrealized gains or losses excluded from net income and reported in accumulated other comprehensive income (loss), which is reported as a separate component of equity, net of the related deferred tax effect. Investment securities and mortgage-backed securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Investment securities and mortgage-backed securities that are bought and held by the Company primarily for the purpose of selling them in the near future are classified as trading securities and reported at fair value. Unrealized gains and losses are included in earnings. The Company did not have any trading or held-to-maturity securities at December 2020 or 2019. Premiums and discounts are amortized or accreted over the life of the related security, adjusted for anticipated prepayments, as an adjustment to yield using the effective interest method. Mortgage-backed securities are subject to prepayment and, accordingly, actual maturities could differ from contractual maturities. Interest income is recognized when earned. Gains and losses from the sale of securities are included in earnings when realized and are determined using the specific identification method for determining the cost of securities sold. Declines in the fair value of individual investment securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. The written down amount then becomes the security’s new cost basis. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Loans Receivable The Company grants real estate mortgage and consumer loans to customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses, and any unamortized deferred fees or costs on originated loans, and premiums or discounts on purchased loans. When principal or interest is delinquent for 90 days or more, the Company evaluates the loan for nonaccrual status. Uncollectible interest on loans that are contractually past due is charged-off, or an allowance is established based on management's periodic evaluation. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. The allowance is established by a charge to interest income equal to all interest previously accrued, and income is subsequently recognized only to the extent that cash payments are received until, in management's judgment, the borrower has the ability to make timely periodic interest and principal payments, in which case the loan is returned to accrual status. Loan fees and certain direct loan origination costs are deferred and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans, adjusted for actual prepayments. Amortization of net deferred fees or costs is discontinued for the loans that are deemed to be non-performing. Additionally, the unamortized net fees or costs are recognized in income when loans are paid-off. Loans Held-for-Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. For these loans, gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. Impaired Loans A loan is considered impaired, in accordance with the impairment accounting guidance of FASB ASC 310-10-35-16, Receivables , when based on current information and events it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of delay, the reasons for the delay, the borrower's prior payment record, and the amount of shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price of the fair value of the collateral if the loan is collateral dependent. The portion of increase in present value of the expected future cash flows of impaired loans that is attributable to the passage of time is reported as interest income. A change in the present value of the expected future cash flows related to impaired loans is reported as an increase or decrease in provision for loan losses. Allowance for Loan Losses The allowance for loan losses is maintained at a level which is considered to be adequate to reflect estimated credit losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio at the balance sheet date. The allowance for loan losses is determined based on consideration and assessment of the various credit risk characteristics of the loans that comprise the loan portfolio in accordance with FASB ASC 450, Contingencies, for pools of loans and FASB ASC 310, Receivables, for individually impaired loans. Management evaluates the allowance for loan losses to assess the risk of loss in the loan portfolio and to determine the adequacy of the allowance for loan losses. For purposes of this evaluation, loans are aggregated into pools based on various characteristics. Some of those characteristics include payment status, concentrations, and loan to collateral value and the financial status of borrowers. The allowance allocated to each of these pools is based on historical charge-off rates, adjusted for changes in the credit risk characteristics within these pools, as determined from current information and analyses. In determining the appropriate level of the allowance, management also ensures that the overall allowance appropriately reflects current macroeconomic conditions, industry exposure and a margin for the imprecision inherent in most estimates of expected credit losses. In addition to these factors, management also considers the following for each segment of the loan portfolio when determining the allowance: • Residential mortgages - This category consists of loans secured by first and junior liens on residential real estate. The performance of these loans may be adversely affected by unemployment rates, local residential real estate market conditions and the interest rate environment. • Commercial real estate - This category consists of loans primarily secured by office buildings, and retail shopping facilities. The performance of commercial real estate loans may be adversely affected by conditions specific to the relevant industry, the real estate market for the property type and geographic region where the property or borrower is located. • Construction and land - This category consists of loans to finance the ground-up construction and/or improvement of construction of residential and commercial properties and loans secured by land. The performance of construction and land loans is generally dependent upon the successful completion of improvements and/or land development for the end user, the sale of the property to a third party, or a secondary source of cash flow from the owners. The successful completion of planned improvements and development maybe adversely affected by changes in the estimated property value upon completion of construction, projected costs and other conditions leading to project delays. • Multi-family residential - This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. The performance of multi-family loans is generally dependent on the receipt of rental income from the tenants who occupy the subject property. The occupancy rate of the subject property and the ability of the tenants to pay rent may be adversely affected by the location of the subject property and local economic conditions. • Consumer - This category consists of loans to individuals for household, family and other personal use. The performance of these loans may be adversely affected by national and local economic conditions, unemployment rates and other factors affecting the borrower's income available to service the debt. All of our consumer loans are secured by our customers’ savings accounts and/or certificates of deposit. As a result of the uncertainties inherent in the estimation process, management’s estimate of loan losses and the related allowance could change in the near term. Based on management’s periodic evaluation of the allowance for loan losses, a provision for loan losses is charged to operations if additions to the allowance are required. Actual loan charge-offs are deducted from the allowance and subsequent recoveries of previously charged-off loans are added to the allowance. Other Real Estate Real estate properties acquired through, or in lieu of, foreclosure are held for sale and are initially recorded at fair value on the date of acquisition. Any write-downs at the time of acquisition are charged to the allowance for loan losses. Costs relating to development and improvement of property are capitalized, whereas costs relating to holding property are expensed. Other real estate was $0 and $0 at December 31, 2020 and 2019, respectively, and is included in prepaid expenses and other assets. Subsequent to acquisition, valuations are periodically performed by management to report these assets at the lower of fair value less costs to sell or cost. Any adjustments resulting from these periodic re-evaluations of property are reflected in a valuation allowance and charged to income. Premises and Equipment Land is carried at cost. Buildings, leasehold improvements and furniture, fixtures and equipment are carried at cost, less accumulated depreciation and amortization, respectively. Depreciation and amortization are calculated on the straight-line basis and accelerated methods over the estimated useful lives of the assets which range from 3 to 39 years. Expenditures for improvements, which extend the life of an asset, are capitalized and depreciated over the asset’s remaining useful life. Gains or losses realized on the disposition of properties and equipment are reflected in the statements of (loss) income. Expenditures for repairs and maintenance are charged to operating expenses as incurred. Life Insurance The Company purchased life insurance on certain employees and directors of the Company. Appreciation in value of the insurance policies is included in noninterest income. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense was approximately $17,000 and $27,000 for the years ended December 31, 2020 and 2019, respectively, and is included in other non-interest expenses. Income Taxes The Company accounts for income taxes in accordance with income tax guidance of FASB ASC 740, Income Taxes , and has adopted the recent accounting guidance related to accounting for uncertainty in income taxes, which sets forth a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of enacted tax law to the taxable income or excess deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the difference between the book and tax bases of assets and liabilities. Enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company evaluates all significant tax positions as required by accounting principles generally accepted in the United States of America. As of December 31, 2020 and 2019, the Company does not believe that it has taken any positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next year. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2015. Any interest and penalties assessed by income taxing authorities are not significant and are included in non-interest expense in these financial statements. Comprehensive Income The Company reports comprehensive income in accordance with the accounting guidance related to FASB ASC 220, Comprehensive Income . FASB ASC 220 establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes net unrealized gains (losses) on securities and is presented, net of tax, in the statements of comprehensive (loss) income. Statement of Cash Flows For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, due from banks and deposits with the FHLB. The Company considers all highly liquid debt instruments with original maturities of three months or less (excluding interest-bearing deposits in banks) to be cash equivalents. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when, or as, the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest, dividends and fees earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are fixed. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. Reclassifications Certain reclassifications may have been made to the 2019 financial statements to conform with the 2020 financial statement presentation. Such reclassifications had no effect on net income or retained earnings as previously reported. Recent Accounting Pronouncements Emerging Growth Company Status The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as the Company is an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies. An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, but must make such election when the company is first required to file a registration statement. The Company has elected to use the extended transition period described above and intends to maintain its emerging growth company status as allowed under the JOBS Act. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Conforming Amendments Related to Leases . This ASU amends the codification regarding leases in order to increase transparency and comparability. The ASU requires companies to recognize lease assets and liabilities on the statement of condition and disclose key information about leasing arrangements. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the leased asset for the lease term. For an emerging growth company, the amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The amendments introduce an impairment model that is based on expected credit losses (“ECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (eg. loans and held to maturity securities), including certain off-balance sheet financial instruments (eg. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating the ECL. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. For an emerging growth company, the amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within fiscal years beginning after December 15, 2023. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently planning for the implementation of this accounting standard. It is too early to assess the impact this ASU will have on the Company’s Consolidated Financial Statements. In June 2018, FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment . The amendments in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. For an emerging growth company, the amendments in this update were effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendment did not have a material impact on the Company’s Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU are effective for fiscal years, and interim periods with those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently assessing the impact of the adoption of this standard on the Company’s Consolidated Financial Statements. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | Note 2 – Earnings (Loss) Per Share Basic earnings per share (“EPS”) represents income available or loss attributable to common shareholders divided by the weighted average number of common shares outstanding; no dilution for any potentially convertible shares is included in the calculation. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The potential common shares that may be issued by the Company relate to outstanding stock options. Earnings per common share were computed based on the following: Year Ended Year Ended December 31, December 31, (in thousands, except per share data) 2020 2019 Numerator: Net (loss) available to common shareholders $ (103) $ (61) Denominator: Weighted average common shares outstanding 1,386 1,420 Less: Average unallocated ESOP shares 108 109 Weighted average shares 1,278 1,311 Basic (loss) per common share $ (0.08) $ (0.05) |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investment Securities | |
Investment Securities | Note 3 - Investment Securities - The amortized cost and fair values of investment securities available-for-sale were as follows: Gross Gross December 31, 2020: Amortized Unrealized Unrealized Fair (in thousands) Cost Gains (Losses) Value Mortgage-Backed Securities: FHLMC $ 2,811 $ 63 $ — $ 2,874 SBA 7a Pools 3,183 — (7) 3,176 Total Investment Securities Available-for-Sale $ 5,994 $ 63 $ (7) $ 6,050 Gross Gross December 31, 2019: Amortized Unrealized Unrealized Fair (in thousands) Cost Gains (Losses) Value Mortgage-Backed Securities: FHLMC $ 2,664 $ — $ (19) $ 2,645 SBA 7a Pools 2,678 5 (8) 2,675 Total Investment Securities Available-for-Sale $ 5,342 $ 5 $ (27) $ 5,320 All investment securities held on December 31, 2020 and 2019, were government-sponsored mortgage-backed or SBA pool securities. The amortized cost and fair values of the investment securities available-for-sale at December 31, 2020, by contractual maturity, are shown below. For mortgage-backed securities and SBA 7a pools, expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale December 31, 2020 Amortized Fair (in thousands) Cost Value Amounts Maturing: After One Year through Five Years $ — $ — After Five Years through Ten Years 3,266 3,257 After Ten Years 2,728 2,793 $ 5,994 $ 6,050 No investment securities were pledged to secure advances from the FHLB as of December 31, 2020 and 2019. There were no sales or calls of available-for-sale investment securities for the year ended December 31, 2020. Proceeds from sales and calls of available-for-sale investment securities were approximately $ 683,000 for the year ended December 31, 2019, resulting in approximately $6,000 realized gains for the year ended December 31, 2019. Gross unrealized losses in investment securities at December 31, 2020 and 2019, existing for continuous periods of less than 12 months and for continuous periods of 12 months or more, were as follows: December 31, 2020 (in thousands) Less Than 12 Months 12 Months or More Totals Security Unrealized Unrealized Unrealized Description Fair Value (Losses) Fair Value (Losses) Fair Value (Losses) Mortgage-Backed FHLMC $ — $ — $ — $ — $ — $ — SBA 7a Pools 873 (8) 1,349 (1) 2,222 (9) $ 873 $ (8) $ 1,349 $ (1) $ 2,222 $ (9) December 31, 2019 (in thousands) Less Than 12 Months 12 Months or More Totals Security Unrealized Unrealized Unrealized Description Fair Value (Losses) Fair Value (Losses) Fair Value (Losses) Mortgage-Backed FHLMC $ 655 $ (4) $ 1,990 $ (15) $ 2,645 $ (19) SBA 7a Pools — — 1,692 (8) 1,692 (8) $ 655 $ (4) $ 3,682 $ (23) $ 4,337 $ (27) Management evaluates securities for other-than temporary impairment on a periodic and regular basis, as well as when economic or market concerns warrant such evaluation as described in Note 1 to these financial statements. No declines at December 31, 2020 and 2019, were deemed to be other-than-temporary. In analyzing an issuer’s financial condition, management considers whether the federal government or its agencies issued the securities, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial statements. |
Investment in FHLB Stock
Investment in FHLB Stock | 12 Months Ended |
Dec. 31, 2020 | |
Investment in FHLB Stock | |
Investment in FHLB Stock | Note 4 - Investment in FHLB Stock - The Company maintains an investment in the membership stock of the Federal Home Loan Bank of Dallas. The carrying amount of this investment is stated at cost which was $1,440,000 and $1,418,000 at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the Company meets the required level of FHLB stock. The stock is pledged as collateral against the advances from the FHLB. |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2020 | |
Loans Receivable and the Allowance for Loan Losses | |
Loans Receivable and the Allowance for Loan Losses | Note 5 - Loans Receivable and the Allowance for Loan Losses - Loans receivable at December 31, 2020 and December 31, 2019 are summarized as follows: December 31, December 31, (in thousands) 2020 2019 Mortgage Loans 1-4 Family $ 66,148 $ 73,591 Multifamily 2,877 3,567 Commercial real estate 364 1,117 Consumer Loans 214 209 69,603 78,484 Plus (Less): Unamortized Loan Fees/Costs 1,139 1,151 Allowance for Loan Losses (850) (850) Net Loans Receivable $ 69,892 $ 78,785 The performing mortgage loans are pledged, under a blanket lien, as collateral securing advances from the FHLB at December 31, 2020 and 2019. Management segregates the loan portfolio into portfolio segments which is defined as the level at which the Company develops and documents a systematic method for determining its allowance for loan losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. The following tables set forth, as of December 31, 2020 and 2019, the balance of the allowance for loan losses by portfolio segment, disaggregated by impairment methodology, which is then further segregated by amounts evaluated for impairment collectively and individually. The allowance for loan losses allocated to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments. Allowance for Loan Losses and Recorded Investment in Loans Receivable For the Year Ended December 31, 2020 (in thousands) Mortgage- Mortgage- Mortgage- Commercial 1-4 Family Multifamily Real Estate Consumer Total Allowance for Loan Losses: Beginning Balance $ 812 $ 27 $ 11 $ — $ 850 Charge-Offs — — — — — Recoveries 2 — — — 2 Provision 10 (5) (7) — (2) Ending Balance $ 824 $ 22 $ 4 $ — $ 850 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 824 $ 22 $ 4 $ — $ 850 Loans Receivable: Ending Balance $ 66,148 $ 2,877 $ 364 $ 214 $ 69,603 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 66,148 $ 2,877 $ 364 $ 214 $ 69,603 The allowance for loan losses for Mortgage 1-4 Family Loans of $824,000 includes an unallocated portion of $495,000 as of December 31, 2020. Allowance for Loan Losses and Recorded Investment in Loans Receivable For the Year Ended December 31, 2019 (in thousands) Mortgage- Mortgage- Mortgage- Commercial 1-4 Family Multifamily Real Estate Consumer Total Allowance for Loan Losses: Beginning Balance $ 807 $ 31 $ 12 $ — $ 850 Charge-Offs — — — — — Recoveries 9 — — — 9 Provision (4) (4) (1) — (9) Ending Balance $ 812 $ 27 $ 11 $ — $ 850 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 812 $ 27 $ 11 $ — $ 850 Loans Receivable: Ending Balance $ 73,591 $ 3,567 $ 1,117 $ 209 $ 78,484 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 73,591 $ 3,567 $ 1,117 $ 209 $ 78,484 The allowance for loan losses for Mortgage 1-4 Family Loans of $812,000 includes an unallocated portion of $437,000 as of December 31, 2019. Management further disaggregates the loan portfolio segments into classes of loans, which are based on the initial measurement of the loan, risk characteristics of the loan and the method for monitoring and assessing the credit risk of the loan. Loan Grades / Classification The primary purpose of grading loans is to assess credit quality and assist in identifying potential problem loans. Every loan in the portfolio is assigned a loan grade based on quality and level of risk. Loan grades are updated as events occur that bear on the collectability of the loan, such as change in payment flow or status of the obligor or collateral. Changes in loan grades are reported to the Board Loan Committee. Each credit reviewed is assigned a loan grade based on the following system: Loan Grade 1 Loans with no identified problems and do not require more than normal attention. The repayment source is well defined and the borrower/guarantor exhibits no inability of repaying the loan as agreed. The financial information is acceptable and the loan meets credit and policy requirements and exhibits no unusual elements of risk. The collateral is acceptable and adequate. Loan Grade 2 These are performing owner-occupied loans that exhibit diminished borrower capacity, such as sufficiently-aged Troubled Debt Restructurings or loans that are frequently delinquent more than 30 days but less than 60 days. Also included are performing investor loans with a good payment record but lack updated financial information but are judged from alternate sources to have satisfactory cash flows and a sufficiently strong guarantor. Loan Grade 3 Owner-occupied loans that are well-secured but are occasionally delinquent more than 60 days but less than 90. Also included are performing investor loans lacking required current financial information or that demonstrate diminished guarantor capacity and an estimated stressed debt service coverage ratio of less than 1.20. Loan Grade 4 Investment loans that have potential or identified weaknesses that deserve management’s close attention. If left uncorrected, these may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. These loans are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification. Default is not imminent. Adverse Classifications Loan Grade 5 A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledge, if any. Assets 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. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. Loan Grade 6 A loan that has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Credit Quality Indicators - Credit Risk Profile Based on Loan Grades at December 31, 2020 (in thousands) Special Pass Watch Mention Substandard Doubtful Total Mortgage Loans: 1 to 4 Family $ 65,504 $ 30 $ 55 $ 559 $ — $ 66,148 Multifamily 2,877 — — — — 2,877 Commercial real estate 364 — — — — 364 Non-Mortgage Loans: Consumer 214 — — — — 214 Total $ 68,959 $ 30 $ 55 $ 559 $ — $ 69,603 Credit Quality Indicators - Credit Risk Profile Based on Loan Grades at December 31, 2019 (in thousands) Special Pass Watch Mention Substandard Doubtful Total Mortgage Loans: 1 to 4 Family $ 72,937 $ 87 $ — $ 567 $ — $ 73,591 Multifamily 3,567 — — — — 3,567 Commercial real estate 1,117 — — — — 1,117 Non-Mortgage Loans: Consumer 209 — — — — 209 Total $ 77,830 $ 87 $ — $ 567 $ — $ 78,484 At December 31, 2020 and 2019 , loan balances outstanding on non-accrual status amounted to $0 and $0, respectively. The Company considers loans more than 90 days past due and on nonaccrual as nonperforming loans. At December 31, 2020 and 2019, the credit quality indicators (performing and nonperforming loans), disaggregated by class of loan, are as follows: Credit Quality Indicators - Credit Risk Profile Based on Payment Activity at December 31, 2020 (in thousands) Non- Performing Performing Total Mortgage Loans: 1 to 4 Family $ 66,148 $ — $ 66,148 Multifamily 2,877 — 2,877 Commercial real estate 364 — 364 Non-Mortgage Loans: Consumer 214 — 214 Total $ 69,603 $ — $ 69,603 Credit Quality Indicators - Credit Risk Profile Based on Payment Activity at December 31, 2019 (in thousands) Non- Performing Performing Total Mortgage Loans: 1 to 4 Family $ 73,591 $ — $ 73,591 Multifamily 3,567 — 3,567 Commercial real estate 1,117 — 1,117 Non-Mortgage Loans: Consumer 209 — 209 Total $ 78,484 $ — $ 78,484 The following tables reflect certain information with respect to the loan portfolio delinquencies by loan class and amount as of December 31, 2020 and 2019. There were no loans over 90 days past due and still accruing as of December 31, 2020 and 2019. Aged Analysis of Past Due Loans Receivable at December 31 , 2020 (in thousands) 30-59 60-89 90 Days or Total Days Days Greater Total Loans Past Due Past Due Past Due Past Due Current Receivable Mortgage Loans: 1 to 4 Family $ — $ — $ — $ — $ 66,148 $ 66,148 Multifamily — — — — 2,877 2,877 Commercial real estate — — — — 364 364 Non-Mortgage Loans: Consumer — — — — 214 214 Total $ — $ — $ — $ — $ 69,603 $ 69,603 Aged Analysis of Past Due Loans Receivable at December 31, 2019 (in thousands) 30-59 60-89 90 Days or Total Days Days Greater Total Loans Past Due Past Due Past Due Past Due Current Receivable Mortgage Loans: 1 to 4 Family $ — $ 89 $ — $ 89 $ 73,502 $ 73,591 Multifamily — — — — 3,567 3,567 Commercial real estate — — — — 1,117 1,117 Non-Mortgage Loans: Consumer — — — — 209 209 Total $ — $ 89 $ — $ 89 $ 78,395 $ 78,484 Loans Receivable on Nonaccrual Status at December 31 (in thousands) 2020 2019 Mortgage Loans $ — $ — The following is a summary of information pertaining to impaired loans as of December 31, 2020 and December 31, 2019. Impaired Loans For the Year Ended December 31, 2020 (in thousands) Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Mortgage Loans $ — $ — $ — $ — $ — Non-Mortgage Loans $ — $ — $ — $ — $ — Impaired Loans For the Year Ended December 31, 2019 (in thousands) Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Mortgage Loans $ — $ — $ — $ — $ — Non-Mortgage Loans $ — $ — $ — $ — $ — The Company seeks to assist customers that are experiencing financial difficulty by renegotiating loans within lending regulations and guidelines. For the years ended December 31, 2020 and 2019, the concessions granted to certain borrowers included extending the payment due dates. Once modified in a trouble debt restructuring, a loan is generally considered impaired until its contractual maturity. At the time of the restructuring, the loan is evaluated for an asset-specific allowance for credit losses. The Company continues to specifically reevaluate the loan in subsequent periods, regardless of the borrower’s performance under the modified terms. If a borrower subsequently defaults on the loan after it is restructured, the Company provides an allowance for credit losses for the amount of the loan that exceeds the value of the related collateral. The following tables summarize information relative to the loan modifications determined to be TDRs during the period: Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Modifications as of December 31, 2020 (dollars in thousands) Troubled Debt Restructurings: Mortgage Loans 1-4 Family — $ — $ — Total Loans — $ — $ — Modifications as of December 31, 2019 (dollars in thousands) Troubled Debt Restructurings: Mortgage Loans 1-4 Family — $ — $ — Total Loans — $ — $ — The Company had no troubled debt restructurings that defaulted subsequent to the restructuring through the date the financial statements were issued. During the year ended December 31, 2020, the Company modified 73 mortgage loans, with an aggregate balance of $15.6 million, in each case related to a hardship caused by the COVID-19 pandemic and responses thereto. The Company worked with borrowers and provided modifications in the form of principal, interest and escrow deferral, in each case, for initial periods of up to 90 days. The deferred payments will be collected at the original maturity date or at the time the loan is ultimately paid off. As necessary, the Company made available a second 90 day principal, interest and escrow deferral bringing the total potential deferral period to six months. Modifications were structured in a manner to best address each individual customer's current situation. These modifications are excluded from TDR classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. Modified loans are considered current and will continue to accrue interest during the deferral period. Detail of remaining COVID-19 modifications on the Company’s loan portfolio as of December 31, 2020 follows. Remaining Remaining Number of Total Remaining Total Contracts Balance Percent Balance Modified Modified Modified Remaining Modifications as of December 31, 2020 (dollars in thousands) Mortgage Loans 1-4 Family $ 66,148 56 $ 11,191 Multifamily 2,877 4 1,285 Commercial Real Estate 364 — — Total Loans $ 69,389 60 $ 12,476 As of December 31, 2020, all of the loans modified by us have either resumed normal monthly payments (60), been paid off (12) or paid the entire deferred amounts (1). The Company has received no requests for additional deferrals. The Company is closely monitoring all loans that received deferrals. As additional information becomes available, management will continue to evaluate these loans to ensure appropriate risk classification. |
Accrued Interest Receivable
Accrued Interest Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Interest Receivable | |
Accrued Interest Receivable | Note 6 - Accrued Interest Receivable - Accrued interest receivable at December 31 is summarized as follows: (in thousands) 2020 2019 Loans Receivable $ 427 $ 310 Mortgage-Backed Securities 7 10 Interest-Bearing Deposits 2 1 $ 436 $ 321 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Premises and Equipment | |
Premises and Equipment | Note 7 - Premises and Equipment – Major classes of premises and equipment at December 31 are summarized as follows: (in thousands) 2020 2019 Land $ 166 $ 166 Buildings 970 970 Furniture, Fixtures and Equipment 540 525 Automobiles 93 93 1,769 1,754 Less Accumulated Depreciation and Amortization (1,108) (1,050) $ 661 $ 704 Depreciation and amortization of premises and equipment amounted to $58,000 and $84,000 in 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes. | |
Income Taxes | Note 8 - Income Taxes - Income tax (benefit) expense for the years ended December 31 is summarized as follows: (in thousands) 2020 2019 Income Taxes from Continuing Operations: Current $ — $ — Deferred (62) 254 Income Tax (Benefit) Expense $ (62) $ 254 The following is a reconciliation between income tax expense based on federal statutory tax rates and income taxes reported in the statements of loss: 2020 2019 (in thousands) Amount % Amount % Expected Income Tax Expense at Statutory Rate $ (35) 21 % $ 41 % Tax Exempt Income (19) 12 % (20) (10) % Valuation Allowance for Deferred Tax Asset (Net Operating Loss) — — % 222 87 % Other Adjustments - Net (8) 5 % 11 % $ (62) 38 % $ 254 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and (liabilities) were computed using currently enacted corporate tax rates of 21% at December 31, 2020 and 2019. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019, were as follows: (in thousands) 2020 2019 Deferred Loan Fees (Costs) $ (239) $ (241) Allowance for Loan Losses 134 124 Federal Home Loan Bank Stock (83) (78) Deferred Retirement Agreements 66 63 Tax Carryforward of Loss on Sale of Investment Securities — 227 Tax Carryforwards of Net Operating Losses 217 324 All Other Temporary Differences 122 30 217 449 Valuation Allowance for Deferred Tax Asset (Loss on Sale of Investment Securities) — (227) Valuation Allowance for Deferred Tax Asset (Net Operating Losses) (217) (222) — — Unrealized (Gains) Losses on Securities Available-for-Sale (12) 5 Net Deferred Tax (Liability) Asset $ (12) $ 5 At December 31, 2019 we had a federal income tax Capital Loss carryforward of $1.1 million which expired unused in 2020. We believed that it was more likely than not that the benefit from the Capital Loss carryforward would not be realized. In recognition of this risk, we provided a valuation adjustment of $227,000 on the deferred tax asset related to this Capital Loss carryforward. If recognized, the tax benefits related to any reversal of the valuation allowance on the deferred tax asset would have been accounted for as a reduction of income tax expense and an increase in equity. Prior to 2020, a corporation could carry forward net operating losses generated in tax years beginning after December 31, 2017 indefinitely and could offset up to 80% of taxable income. To provide financial assistance and liquidity to taxpayers during the COVID-19 pandemic, the CARES Act amended the federal income tax rules with regard to the usage of net operating losses (“NOLs”) for corporate taxpayers. The CARES Act allows for the carryback of losses arising in a taxable year beginning after December 31, 2017, and before January 1, 2021, to be carried back to each of the five taxable years preceding the taxable year of the loss. The CARES Act also temporarily repeals the 80% limitation for NOLs arising in tax years beginning after December 31, 2017 and beginning before January 1, 2021 and carried to another tax year. These NOLs are now permitted to fully offset the loss corporation’s pre-2021 taxable income. For the years ended December 31, 2020 and 2019, Eureka Homestead Bancorp and Subsidiary generated a $267,000 and a $1.3 million federal net operating loss, respectively, which were available to carry back to previous tax years generating a refund of $62,000 recorded in 2020, and the remaining amounts totaling $1.4 million are available for future use. Although these net operating loss carryforwards have no expiration date, we believe that it is more likely than not that the benefit from a portion of the net operating loss carryforwards will not be realized within a reasonable time period. In recognition of this risk, we have provided a valuation adjustment of $217,000 on the deferred tax asset related to these net operating loss carryforwards. If or when recognized, the tax benefits related to any reversal of the valuation allowance on the deferred tax asset will be accounted for as a reduction of income tax expense and an increase in equity. Neither Eureka Homestead nor Eureka Homestead Bancorp generated any net operating loss carryforwards for Louisiana. Retained earnings at December 31, 2020 and 2019, include approximately $3,986,000 for which no deferred income tax liability has been recognized. These amounts represent an allocation of income to bad debt deductions for tax purposes only. Reduction of amounts so allocated for purposes other than tax bad debt losses or adjustments arising from carry back of net operating losses would create income for tax purposes only, which would be subject to the then current corporate income tax rate. The unrecorded deferred income tax liability on the above amount was approximately $837,000 at December 31, 2020 and 2019. The Small Business Protection Act of 1996 repealed Internal Revenue Code Section 593, which had allowed thrifts to use the percentage of income method as an alternative for computing their tax bad debt deductions. This act required small thrifts to change their method of computing reserves for bad debts to the experience method in accordance with the provisions of Internal Revenue Code Section 585. The repeal was effective for taxable years beginning after December 31, 1995. The Company implemented this change for the year ended December 31, 1996. As a result of the change, the Company is required to recapture the excess of the thrift’s qualifying and non-qualifying bad debt reserves as of December 31, 1995 over its contracted base year reserves. The Company had no excess amounts subject to recapture. In management’s opinion, the reversal of temporary differences and the results of the future operations will generate sufficient earnings to realize the deferred tax assets at December 31, 2019 after taking into account the valuation reserves. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits | |
Deposits | Note 9 - Deposits - Deposits at December 31 are summarized below (in thousands): 2020 2019 Amount % Amount % Passbook Savings $ 2,705 4.8 $ 2,691 4.6 Money Market Accounts 146 0.3 106 0.2 Certificates of Deposit 53,577 94.9 55,248 95.2 $ 56,428 100.0 $ 58,045 100.0 The weighted average interest rate on deposits at December 31, 2020 and 2019, was 1.50% and 1.91%, respectively. Scheduled maturities and average interest rates of certificates of deposit at December 31, 2020 are summarized as follows (in thousands): Average Interest Amount Rate % 2021 $ 18,352 1.529 % 2022 11,572 1.804 % 2023 4,660 1.785 % 2024 6,525 1.958 % 2025 10,475 0.845 % Thereafter 1,993 2.467 % $ 53,577 1.564 % The aggregate amount of time deposits with a denomination of greater than $250,000 was approximately $2,589,000 and $2,088,000 at December 31, 2020 and 2019 , respectively. Generally, deposits in excess of $250,000 are not federally insured. Interest expense on deposits for the years ended December 31 is summarized as follows: (in thousands) 2020 2019 Passbook Savings $ 7 $ 6 Money Market Accounts — — Certificates of Deposit 1,004 1,255 $ 1,011 $ 1,261 |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank (FHLB) | 12 Months Ended |
Dec. 31, 2020 | |
Advances from Federal Home Loan Bank (FHLB) | |
Advances from Federal Home Loan Bank (FHLB) | Note 10 - Advances from Federal Home Loan Bank (FHLB) - The FHLB advances consist of the following obligations at December 31, 2020 and 2019 (in thousands): Effective Interest Rate 2020 2019 Less than 1.00% $ 4,000 $ — 1.00% to 1.99% 2,250 3,500 2.00% to 2.99% 5,000 8,000 3.00% to 3.99% 8,193 8,134 4.00% to 4.99% — — 5.00% to 5.99% — 1,947 $ 19,443 $ 21,581 The scheduled maturities of FHLB advances at December 31, 2020, are summarized as follows: Due In Amount (in thousands) 2021 $ 3,250 2022 — 2023 500 2024 11,693 Thereafter 4,000 $ 19,443 These advances are collateralized by a blanket lien on all of the Company’s mortgage loans and the investment in FHLB stock. The Company has unused advances available with the FHLB with an additional borrowing capacity at December 31, 2020, of approximately $17.1 million. The Company also has an unsecured federal funds agreement with FNBB for $6.6 million at a rate to be determined by FNBB when borrowed. At December 31, 2020 and 2019, there were no federal funds purchased. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 11 - Employee Benefit Plans - 401(k) Plan The Company sponsors a 401(k) profit sharing plan. Substantially all employees 21 years of age or older who have at least six months of service and have worked 1,000 hours during the year may participate in the plan through salary deferral contributions subject to the plan provisions. The Company makes matching contributions based on a percentage of each participant’s contribution and may also make discretionary contributions to the plan. The Company matched 100% of the participant’s salary deferral contribution up to 3% and 50% of the participant’s salary deferral contribution of the next 2% of the participant’s annual compensation for 2020 and 2019. The Company’s contributions to the plan were approximately $49,000 and $44,000 for 2020 and 2019, respectively. Pension Plan The Company sponsors a defined contribution pension plan. Substantially all employees 21 years of age or older who have at least one year of service and are employed on the last day of the year may participate in the plan. The Company contributed 5.4% of the participant’s annual compensation to the plan for 2020 and 2019. The Company’s contributions to the plan were approximately $83,000 and $67,000 for 2020 and 2019, respectively. The employees vest in the employer’s contributions 20% a year after the first year in the plans and are fully vested at the completion of six years of service. The maximum combined employer contribution to both the 401(k) plan and the pension plan is 25% of the total annual compensation paid to each participant. Employee Stock Ownership Plan As part of the Company's stock conversion in 2019, an employee stock ownership plan ("ESOP") for eligible employees was established. The leveraged ESOP is accounted for in accordance with the requirements of ASC 718, Compensation - Stock Compensation. All employees of the Bank meeting certain tenure requirements are entitled to participate in the ESOP. Shares were purchased by the ESOP with a loan from Eureka Homestead Bancorp, Inc. The ESOP acquired 114,374 shares of the Company's common stock in the conversion. During each of the years ended December 31, 2020 and 2019, 4,575 shares were allocated to ESOP plan participants, leaving 105,224 unallocated shares in the ESOP at December 31, 2020. Compensation expense related to the ESOP was $48,000 for the year ended December 31, 2020 and $56,000 for the year ended December 31, 2019. The stock price at the formation date was $10.00. The aggregate fair value of the 105,224 unallocated shares was $1,347,000 based on the $12.80 closing price of the common stock on December 31, 2020. Under ASC 718, unearned ESOP shares are not considered outstanding and are shown as a reduction of stockholders' equity as unearned compensation. Dividends on unallocated ESOP shares are considered to be compensation expense. The Company recognizes compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company's ESOP shares differ from the cost of such shares, the differential is credited to stockholders' equity. The Company receives a tax deduction equal to the cost of the shares released. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a Company liability. The compensation expense resulting from the release of the common stock from the suspense account and allocation to plan participants results in a corresponding reduction in the earnings of Eureka Homestead Bancorp. Other Retirement Agreements The Company has entered into retirement agreements with certain directors and several key management employees, all of whom are officers. Under the director agreements, after ten years in the plan and attaining the age of 75, the Company is to provide to each director the sum of $120,000 payable over a period of 10 years. (This benefit would be paid to the director’s beneficiaries in a lump sum upon the director’s death.) Under the employee agreements, the Company was to provide to each covered employee annual benefits for life beginning at age 65 ranging from $66,000 to $85,000. The employee agreements were terminated on June 30, 2018. In accordance with the terms of the agreements, the employees received the accrued balance at the termination date, paid one year from the termination date. The total accrued balance of this benefit was approximately $1.5 million at December 31, 2018 and was paid to the employees in July of 2019. The estimated present value of future benefits to be paid is being accrued over the period from the effective date of the agreements until the dates payments are expected to expire. The expense incurred for this plan for the years ended December 31, 2020 and 2019, amounted to approximately $35,000 and $34,000, respectively. The accrued liability at December 31, 2020 and 2019, amounted to approximately $312,000 and $301,000, respectively. The Company is the beneficiary of life insurance policies, with death benefits totaling approximately $7,192,000 and $7,174,000 at December 31, 2020 and 2019, respectively that have been purchased as a method of financing benefits under the agreements. Split Dollar Life Insurance The Company entered into a split dollar life insurance agreement on March 1, 2019 with each of Messrs. Haskins and Heintzen to recognize the valuable services of the executives and to encourage them to continue in service with the Company. The split-dollar agreements divide the death proceeds of certain life insurance policies owned by the Company on the lives of the executives with their designated beneficiaries. The Company paid the life insurance premiums on the policies from its general assets. Under the agreements, Messrs. Haskins and Heintzen or their assignees have the right to designate the beneficiary an amount of death proceeds. Upon either executive’s death, his beneficiary will be entitled to a benefit equal to the lesser of $700,000 or the net death proceeds from the policies. The net death proceeds portion is the total death proceeds paid under the policy less the greater of the policy’s cash surrender value or the aggregate premiums paid by the Company on the policy. Each executive’s interest in the split-dollar agreement terminates under certain circumstances, including the executive’s cessation of all service with the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 12 - Accumulated Other Comprehensive Income (Loss) - The following is a summary of the changes in the balances of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2020 and 2019: (in thousands) 2020 2019 Unrealized Gains (Losses) on Securities Available-for-Sale: Balance at Beginning of Year $ (18) $ (96) Other Comprehensive Income (Loss) Before Reclassifications - Net of Tax 62 (79) Reclassification Adjustments for Losses Realized - Net of Tax — 157 Balance at End of Year $ 44 $ (18) |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters | |
Regulatory Matters | Note 13 - Regulatory Matters - The Bank is subject to various regulatory capital requirements administered by its primary Federal regulator, the Office of the Comptroller of the Currency (OCC). Failure to meet the minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank and the financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory reporting requirements. The Bank’s capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as of January 1, 2015, of total capital, tier 1 capital, and common equity tier 1 capital to risk-weighted assets (as defined in the regulations), and leverage capital, which is tier 1 capital to adjusted average total assets (as defined). Management believes, as of December 31, 2020 and 2019, that the Bank meets all the capital adequacy requirements to which it is subject. As of December 31, 2020 and 2019, the most recent notifications from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank will have to maintain minimum total capital, common equity tier 1 capital, tier 1 capital, and leveraged capital ratios as disclosed in the table below. There are no conditions or events since the most recent notification that management believes have changed the Bank’s category. The Bank’s actual and required capital amounts and ratios are as follows: To be Well Capitalized Under For Capital Prompt Corrective December 31, 2020: Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 19,658 43.41 % $ 3,623 8.00 % $ 4,529 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 19,089 42.15 % $ 2,717 6.00 % $ 3,623 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 19,089 42.15 % $ 2,038 4.50 % $ 2,944 6.50 % Tier 1 Leverage Capital (to Adjusted Total Assets) $ 19,089 18.94 % $ 4,030 4.00 % $ 5,038 5.00 % To be Well Capitalized Under For Capital Prompt Corrective December 31, 2019: Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 19,568 38.94 % $ 4,020 8.00 % $ 5,026 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 18,938 37.68 % $ 3,015 6.00 % $ 4,020 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 18,938 37.68 % $ 2,262 4.50 % $ 3,267 6.50 % Tier 1 Leverage Capital (to Adjusted Total Assets) $ 18,938 17.47 % $ 4,336 4.00 % $ 5,420 5.00 % A reconciliation of the Bank’s capital determined under GAAP to Total Capital, Tier 1 Capital, Common Equity Tier 1 Capital and Tier 1 Leverage Capital for December 31, 2020 and 2019, was as follows: December 31, December 31, (in thousands) 2020 2019 Total Equity (Bank Only) $ 19,133 $ 18,920 Unrealized (Gains) Losses on Securities Available-for-Sale, Net (44) 18 Tangible, Tier 1 Capital and Common Equity Tier 1 19,089 18,938 Allowance for Loan Losses Included in Capital 569 630 Total Capital $ 19,658 $ 19,568 The specific reserves included in the Allowance for Loan Losses were not significant as of December 31, 2020 and 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Related Party Transactions | Note 14 - Related Party Transactions – In the ordinary course of business, the Company has granted loans to directors, officers and employees. Such loans were made on substantially the same terms as those prevailing at the time for comparable transactions with other persons. Activity in loans to directors, officers and employees is as follows: (in thousands) 2020 2019 Balance at Beginning of Year $ 307 $ 382 Add: New Loans or Advances — — Less: Payments (19) (75) Balance at End of Year $ 288 $ 307 The Company also has accepted deposits from directors, officers and employees. Such deposits were accepted on substantially the same terms as those of other depositors and amounted to approximately $637,000 and $686,000 at December 31, 2020 and 2019 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies – In the ordinary course of business, the Company has various outstanding commitments that are not reflected in the accompanying financial statements. The principal commitments of the Company are as follows: Lease Commitments In 2009, the Company entered into an operating lease pertaining to property used for a loan production office. The lease had an original term of three years, beginning April 15, 2009 and expiring March 31, 2012, with the option to extend the lease for six additional three-year periods. The Company exercised this option through March 31, 2024. Total rental expense was approximately $48,000 and $48,000 for the years ended December 31, 2020 and 2019, respectively. The future minimum rental commitments under the operating lease at December 31, 2020 relating to the loan production office are as follows: Year Ended December 31, Amount (in thousands) 2021 $ 51 2022 53 2023 53 2024 13 Total Minimum Payments Required $ 170 |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments with Off-Balance-Sheet Risk | |
Financial Instruments with Off-Balance-Sheet Risk | Note 16 - Financial Instruments with Off-Balance-Sheet Risk - In the normal course of business, the Company has outstanding commitments, such as commitments to extend credit, which are not included in the accompanying financial statements. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the Balance Sheets. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. At December 31, 2020 and December 31, 2019, the Company had $1,983,000 and $524,000 of outstanding commitments to originate loans, respectively, all of which represent the balance of remaining funds to be disbursed on construction loans in process. In recent years we have sold loans on an industry-standard, servicing-released basis. At December 31, 2020, there were mortgage loans sold to investors with limited recourse for certain periods after the date of sale totaling $7.8 million at the sale date. Recourse would apply if the borrower(s) default on any payment within the first four months of the mortgage loan and it remains in default for a period of 90 days, or if the mortgage loan prepays in full within 180 days of the sale date. Should an early payment default occur, the Company shall, at its sole discretion, repurchase such mortgage loan from the purchaser at its current amortized balance plus the service release premium received or indemnify the purchaser by paying the service release premium received plus $5,000. Should a mortgage loan prepay in full within 180 days of the sale date, the Company shall refund to the purchaser the servicing release premium paid. There have been no mortgage loans sold that had an early payment default or that prepaid in full during the recourse period. In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management and counsel, the disposition or ultimate resolution of such proceedings would not have a material adverse effect on the Company's financial statements. |
Significant Concentration of Cr
Significant Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Significant Concentration of Credit Risk | |
Significant Concentration of Credit Risk | Note 17 - Significant Concentration of Credit Risk – The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage under defined limits. The Company maintains cash balances at various financial institutions which may periodically exceed the federally insured amount. Most of the Company’s lending activity is represented by loans receivable secured principally by first mortgages on real estate located within Louisiana. Additionally, the substantial portion of the real estate upon which the Company has extended credit is on residential properties; however, the Company has extended credit on non-residential properties. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Values of Financial Instruments | |
Fair Values of Financial Instruments | Note 18 - Fair Values of Financial Instruments - Fair Value Disclosures The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with FASB ASC 820, Fair Value Measurements , the fair value of a financial instrument 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 is best determined based on quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, fair value estimates may not be realized in an immediate settlement of the instrument. The fair value accounting guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under this guidance are described below. Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following: a. Quoted prices for similar assets or liabilities in active markets; b. Quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers (for example, some brokered markets), or in which little information is released publicly (for example, a principal-to principal market); c. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates); and d. Inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Therefore, unobservable inputs shall reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include the reporting entity's own data. However, the reporting entity's own data used to develop unobservable inputs shall be adjusted if information is reasonably available without undue cost and effort that indicates that market participants would use different assumptions. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Recurring Basis Fair values of investment securities and mortgage-backed securities were primarily measured using information from a third-party pricing service. This pricing service provides information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data from market research publications. The following tables present the balances of assets measured on a recurring basis as of December 31, 2020 and 2019. The Company did not record any liabilities at fair value for which measurement of the fair value was made on a recurring basis. Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2020: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Mortgage-Backed Securities FHLMC $ 2,874 $ — $ 2,874 $ — SBA 7a Pools 3,176 — 3,176 — Total Investment Securities $ 6,050 $ — $ 6,050 $ — Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2019: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Mortgage-Backed Securities FHLMC $ 2,645 $ — $ 2,645 $ — SBA 7a Pools 2,675 — 2,675 — Total Investment Securities $ 5,320 $ — $ 5,320 $ — Non-recurring Basis The Company has segregated all financial assets and liabilities that are measured at fair value on a non-recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. The Company did not record any liabilities at fair value for which measurement of the fair value was made on a non-recurring basis. The fair value of the impaired loans is measured at the fair value of the collateral for collateral-dependent loans. Impaired loans are Level 2 assets measured using appraisals from external parties of the collateral less any prior liens. Repossessed assets are initially recorded at fair value less estimated costs to sell. The fair value of repossessed assets is based on property appraisals and an analysis of similar properties available. As such, the Company records repossessed assets as Level 2. Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2020: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Assets: Impaired Loans $ — $ — $ — $ — Other Real Estate — — — — Total $ — $ — $ — $ — Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2019: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Assets: Impaired Loans $ — $ — $ — $ — Other Real Estate — — — — Total $ — $ — $ — $ — FASB ASC 825, Financial Instruments , requires disclosure of fair value information about financial instruments for which it is practicable to estimate fair value, whether or not recognized in the balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The derived fair value estimates cannot be substantiated through comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. FASB ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Further, the disclosures do not include estimated fair values for items which are not financial instruments but which represent significant value to the Company, including core deposit intangibles and other fee-generating operations of the business. Reasonable comparability of fair value estimates between financial institutions may not be possible due to the wide range of permitted valuation techniques and numerous assumptions involved. The aggregate fair value amounts presented do not, and are not intended to, represent an aggregate measure of the underlying fair value of the Company. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents - For those short-term instruments, the carrying amount is a reasonable estimate of fair value. Interest-Bearing Deposits - The carrying amount is a reasonable estimate of fair value. Investment Securities (including mortgage-backed securities) - For investment securities, including mortgage-backed securities, fair value equals quoted market price, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Loans - The fair value of loans is estimated using discounted cash flow analyses, using the interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans Held-for-Sale - The loans held-for sale are recorded at the lower of aggregate cost or market value which is a reasonable estimate of fair value. FHLB Stock - The carrying amount is a reasonable estimate of fair value. Cash Surrender Value of Life Insurance - The carrying amount is a reasonable estimate of fair value. Accrued Interest Receivable and Accrued Interest Payable - The carrying amounts of accrued interest receivable and accrued interest payable approximate the fair values. Deposits - The fair value of savings accounts and certain money market deposits is the amount payable on demand at the reporting date (carrying value). The fair value of fixed maturity certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities. Advances from the FHLB - The fair values of the Advances from the FHLB are estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Loan Commitments - For commitments to extend credit, fair value considers the difference between current levels of interest rates and the committed rates. The estimated fair values of the Company’s financial instruments were as follows as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Financial Assets: Cash and Cash Equivalents $ 3,952 $ 3,952 $ 11,875 $ 11,875 Interest-Bearing Deposits in Banks 9,488 9,488 1,740 1,740 Investment Securities 6,050 6,050 5,320 5,320 Loans - Net 69,892 71,829 78,785 82,300 Loans Held-for-Sale 3,610 3,610 1,637 1,637 Accrued Interest Receivable 436 436 321 321 FHLB Stock 1,440 1,440 1,418 1,418 Cash Surrender Value of Life Insurance 4,137 4,137 4,044 4,044 Financial Liabilities: Deposits 56,428 57,931 58,045 59,053 Advances from FHLB 19,443 20,469 21,581 22,007 Accrued Interest Payable 69 69 137 137 The carrying amounts in the preceding table are included in the balance sheet under the applicable captions; accrued interest payable is included in accrued expenses and other liabilities in the balance sheet. The contract or notional amounts of the Company’s financial instruments with off balance sheet risk are disclosed in Note 16. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | Note 19 - Subsequent Events - Management has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through March 25, 2021, the date the financial statements were issued. The outbreak of Coronavirus Disease 2019 (“COVID-19”) has adversely impacted a broad range of industries in which the Company’s customers operate and potentially impaired their ability to fulfill their obligations to the Company. The World Health Organization has declared COVID-19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused disruptions in the U.S. economy and is highly likely to disrupt banking and other financial activity in the areas in which the Company operates and could potentially create widespread business continuity issues for the Company. The full impact on our lending and other business activities as a result of new government and regulatory policies, programs and guidelines, as well as regulators’ reaction to such activities, remains uncertain. In January and February 2021, the Company repurchased an additional 22,500 of its common shares for $281,000. |
Change in Corporate Form
Change in Corporate Form | 12 Months Ended |
Dec. 31, 2020 | |
Change in Corporate Form | |
Change in Corporate Form | Note 20 – Change in Corporate Form - On July 9, 2019, Eureka Homestead (the “Bank”) converted to a federal stock savings and loan association and established a stock holding company, Eureka Homestead Bancorp, Inc. (the “Company”), as parent of the Bank. In connection with the conversion, the Bank issued of all of its common stock to the Company, becoming the wholly owned subsidiary of the Company, and the Company issued and sold shares of its capital stock pursuant to an independent valuation appraisal of the Bank and the Company. The stock was priced at $10.00 per share. In addition, the Bank’s board of directors adopted an employee stock ownership plan (ESOP) which subscribed for 8% of the common stock sold in the offering. The Conversion was completed on July 9, 2019 and resulted in the issuance of 1,429,676 common shares by the Company. The cost of the Conversion and issuing the capital stock totaled $1.2 million and was deducted from the proceeds of the offering. In accordance with OCC regulations, at the time of the Conversion, the Bank substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders who continue to maintain their accounts at the Bank after the Conversion. The liquidation account will be reduced annually to the extent that eligible holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. In the event of a complete liquidation by the Bank, and only in such event, each eligible account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount. The Conversion was accounted for as a change in corporate form with the historic basis of the Bank’s assets, liabilities and equity unchanged as a result. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information (Parent Company Only) | |
Condensed Financial Information (Parent Company Only) | Note 21 - Condensed Financial Information (Parent Company Only) - Presented below is condensed financial information as to the financial position, results of operations and cash flows of the Parent Company: CONDENSED BALANCE SHEETS DECEMBER 31, 2020 AND 2019 (in thousands) 2020 2019 ASSETS Cash in Bank $ 2,831 $ 5,392 Due from Subsidiary — 4 Investment in Subsidiary 19,146 18,920 Total Assets $ 21,977 $ 24,316 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities $ 37 $ 32 Stockholders' Equity 21,940 24,284 Total Liabilities and Stockholders' Equity $ 21,977 $ 24,316 CONDENSED STATEMENTS OF LOSS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2021 (in thousands) 2020 2019 Income: Equity in Net Income (Loss) of Subsidiary $ 151 $ (22) Other Income — 27 Total Income 151 5 Expenses: Professional Fees 172 85 Other Expense 95 48 Total Expenses 267 133 Loss Before Income Tax (Benefit) (116) (128) Income Tax (Benefit) (13) — Net Loss $ (103) $ (128) CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (in thousands) 2020 2019 Cash Flows from Operating Activities: Net Loss $ (103) $ (128) Adjustments to Reconcile Net Loss to Net Cash (Used in) Operating Activities: Cash (Used in) Operating Activities: (Increase) in Due from Subsidiary (9) (4) Non-cash Compensation for ESOP 48 56 (Increase) Decrease in Equity in Net Income of Subsidiary (151) 22 Increase in Liabilities 5 32 Net Cash (Used in) Operating Activities (210) (22) Cash Flows from Investing Activities: Investment in Subsidiary — (6,558) Net Cash (Used in) Investing Activities — (6,558) Cash Flows from Financing Activities: Proceeds from Stock Offering — 11,972 Shares Repurchased (2,351) — Net Cash (Used in) Provided by Financing Activities (2,351) 11,972 Net (Decrease) Increase in Cash and Cash Equivalents (2,561) 5,392 Cash and Cash Equivalents at Beginning of Period 5,392 — Cash and Cash Equivalents at End of Period $ 2,831 $ 5,392 |
Nature of Operations, Princip_2
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies | |
Nature of Operations | Nature of Operations Eureka Homestead Bancorp, Inc. (the “Company”) (OTC Pink Marketplace – ERKH) was formed to serve as the stock holding company for Eureka Homestead (the “Bank”) upon completion of its mutual-to-stock conversion. The conversion was effective July 9, 2019. In connection with the conversion, the Company sold 1,429,676 shares of its common stock, including 114,374 shares purchased by the Bank’s employee stock ownership plan, at a price of $10.00 per share. Unless otherwise indicated or the context otherwise requires, references in these financial statements to “we, “us”, “our”, “Company” and “Bank” refer collectively to Eureka Homestead Bancorp, Inc. and Eureka Homestead on a consolidated basis or to any of those entities, depending on the context. The Bank is a federal stock savings association subject to regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The Company conducts lending and deposit-taking activities from two locations in the New Orleans, Louisiana area. The Company provides service to customers in the New Orleans and surrounding areas. The accounting and reporting policies of the Company are in accordance with generally accepted accounting principles in the United States of America and conform to general practices within the industry. The Company’s loan portfolio consists mainly of loans to homeowners; however, the Company's loan portfolio does include loans secured by non-residential real estate. The majority of loans are secured by first mortgages on area real estate and are expected to be repaid from the cash flow of the borrower. Some of the activities upon which the economy of the New Orleans area is dependent include the petrochemical industry, the port of New Orleans and economic activity along that region of the Mississippi River, healthcare and tourism. Significant declines in these activities and the general economic conditions in the Company's market areas could affect the borrower’s ability to repay loans and cause a decline in value of the assets securing the loan portfolio. The Company’s operations are subject to customary business risks associated with activities of a financial institution. Some of those risks include competition from other institutions and changes in local or national economic conditions, interest rates and regulatory requirements. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the Company and the Bank, together referred to as the Company. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for losses on loans, the valuation of other real estate acquired, the valuation of deferred tax assets, other than temporary impairments of securities and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may have judgments different than management’s and we may determine to adjust our allowance as a result of these regulatory reviews. Because of these factors, it is reasonably possible that the estimated losses on loans may change in the near term. However, the amount of the change that is reasonably possible cannot be estimated. |
Investment Securities | Investment Securities Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 320, Investments, requires the classification of securities as trading, available-for-sale, or held-to-maturity. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically. Securities classified as available-for-sale are equity securities with readily determinable fair values and those debt securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movement in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. These securities are carried at estimated fair value based on information provided by a third party pricing service with any unrealized gains or losses excluded from net income and reported in accumulated other comprehensive income (loss), which is reported as a separate component of equity, net of the related deferred tax effect. Investment securities and mortgage-backed securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Investment securities and mortgage-backed securities that are bought and held by the Company primarily for the purpose of selling them in the near future are classified as trading securities and reported at fair value. Unrealized gains and losses are included in earnings. The Company did not have any trading or held-to-maturity securities at December 2020 or 2019. Premiums and discounts are amortized or accreted over the life of the related security, adjusted for anticipated prepayments, as an adjustment to yield using the effective interest method. Mortgage-backed securities are subject to prepayment and, accordingly, actual maturities could differ from contractual maturities. Interest income is recognized when earned. Gains and losses from the sale of securities are included in earnings when realized and are determined using the specific identification method for determining the cost of securities sold. Declines in the fair value of individual investment securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. The written down amount then becomes the security’s new cost basis. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. |
Loans Receivable | Loans Receivable The Company grants real estate mortgage and consumer loans to customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses, and any unamortized deferred fees or costs on originated loans, and premiums or discounts on purchased loans. When principal or interest is delinquent for 90 days or more, the Company evaluates the loan for nonaccrual status. Uncollectible interest on loans that are contractually past due is charged-off, or an allowance is established based on management's periodic evaluation. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. The allowance is established by a charge to interest income equal to all interest previously accrued, and income is subsequently recognized only to the extent that cash payments are received until, in management's judgment, the borrower has the ability to make timely periodic interest and principal payments, in which case the loan is returned to accrual status. Loan fees and certain direct loan origination costs are deferred and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans, adjusted for actual prepayments. Amortization of net deferred fees or costs is discontinued for the loans that are deemed to be non-performing. Additionally, the unamortized net fees or costs are recognized in income when loans are paid-off. |
Loans Held-for-Sale | Loans Held-for-Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. For these loans, gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. |
Impaired Loans | Impaired Loans A loan is considered impaired, in accordance with the impairment accounting guidance of FASB ASC 310-10-35-16, Receivables , when based on current information and events it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of delay, the reasons for the delay, the borrower's prior payment record, and the amount of shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price of the fair value of the collateral if the loan is collateral dependent. The portion of increase in present value of the expected future cash flows of impaired loans that is attributable to the passage of time is reported as interest income. A change in the present value of the expected future cash flows related to impaired loans is reported as an increase or decrease in provision for loan losses. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level which is considered to be adequate to reflect estimated credit losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio at the balance sheet date. The allowance for loan losses is determined based on consideration and assessment of the various credit risk characteristics of the loans that comprise the loan portfolio in accordance with FASB ASC 450, Contingencies, for pools of loans and FASB ASC 310, Receivables, for individually impaired loans. Management evaluates the allowance for loan losses to assess the risk of loss in the loan portfolio and to determine the adequacy of the allowance for loan losses. For purposes of this evaluation, loans are aggregated into pools based on various characteristics. Some of those characteristics include payment status, concentrations, and loan to collateral value and the financial status of borrowers. The allowance allocated to each of these pools is based on historical charge-off rates, adjusted for changes in the credit risk characteristics within these pools, as determined from current information and analyses. In determining the appropriate level of the allowance, management also ensures that the overall allowance appropriately reflects current macroeconomic conditions, industry exposure and a margin for the imprecision inherent in most estimates of expected credit losses. In addition to these factors, management also considers the following for each segment of the loan portfolio when determining the allowance: • Residential mortgages - This category consists of loans secured by first and junior liens on residential real estate. The performance of these loans may be adversely affected by unemployment rates, local residential real estate market conditions and the interest rate environment. • Commercial real estate - This category consists of loans primarily secured by office buildings, and retail shopping facilities. The performance of commercial real estate loans may be adversely affected by conditions specific to the relevant industry, the real estate market for the property type and geographic region where the property or borrower is located. • Construction and land - This category consists of loans to finance the ground-up construction and/or improvement of construction of residential and commercial properties and loans secured by land. The performance of construction and land loans is generally dependent upon the successful completion of improvements and/or land development for the end user, the sale of the property to a third party, or a secondary source of cash flow from the owners. The successful completion of planned improvements and development maybe adversely affected by changes in the estimated property value upon completion of construction, projected costs and other conditions leading to project delays. • Multi-family residential - This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. The performance of multi-family loans is generally dependent on the receipt of rental income from the tenants who occupy the subject property. The occupancy rate of the subject property and the ability of the tenants to pay rent may be adversely affected by the location of the subject property and local economic conditions. • Consumer - This category consists of loans to individuals for household, family and other personal use. The performance of these loans may be adversely affected by national and local economic conditions, unemployment rates and other factors affecting the borrower's income available to service the debt. All of our consumer loans are secured by our customers’ savings accounts and/or certificates of deposit. As a result of the uncertainties inherent in the estimation process, management’s estimate of loan losses and the related allowance could change in the near term. Based on management’s periodic evaluation of the allowance for loan losses, a provision for loan losses is charged to operations if additions to the allowance are required. Actual loan charge-offs are deducted from the allowance and subsequent recoveries of previously charged-off loans are added to the allowance. |
Other Real Estate | Other Real Estate Real estate properties acquired through, or in lieu of, foreclosure are held for sale and are initially recorded at fair value on the date of acquisition. Any write-downs at the time of acquisition are charged to the allowance for loan losses. Costs relating to development and improvement of property are capitalized, whereas costs relating to holding property are expensed. Other real estate was $0 and $0 at December 31, 2020 and 2019, respectively, and is included in prepaid expenses and other assets. Subsequent to acquisition, valuations are periodically performed by management to report these assets at the lower of fair value less costs to sell or cost. Any adjustments resulting from these periodic re-evaluations of property are reflected in a valuation allowance and charged to income. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Buildings, leasehold improvements and furniture, fixtures and equipment are carried at cost, less accumulated depreciation and amortization, respectively. Depreciation and amortization are calculated on the straight-line basis and accelerated methods over the estimated useful lives of the assets which range from 3 to 39 years. Expenditures for improvements, which extend the life of an asset, are capitalized and depreciated over the asset’s remaining useful life. Gains or losses realized on the disposition of properties and equipment are reflected in the statements of (loss) income. Expenditures for repairs and maintenance are charged to operating expenses as incurred. |
Life Insurance | Life Insurance The Company purchased life insurance on certain employees and directors of the Company. Appreciation in value of the insurance policies is included in noninterest income. |
Advertising | Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense was approximately $17,000 and $27,000 for the years ended December 31, 2020 and 2019, respectively, and is included in other non-interest expenses. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax guidance of FASB ASC 740, Income Taxes , and has adopted the recent accounting guidance related to accounting for uncertainty in income taxes, which sets forth a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of enacted tax law to the taxable income or excess deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the difference between the book and tax bases of assets and liabilities. Enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company evaluates all significant tax positions as required by accounting principles generally accepted in the United States of America. As of December 31, 2020 and 2019, the Company does not believe that it has taken any positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next year. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2015. Any interest and penalties assessed by income taxing authorities are not significant and are included in non-interest expense in these financial statements. |
Comprehensive Income | Comprehensive Income The Company reports comprehensive income in accordance with the accounting guidance related to FASB ASC 220, Comprehensive Income . FASB ASC 220 establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes net unrealized gains (losses) on securities and is presented, net of tax, in the statements of comprehensive (loss) income. |
Statement of Cash Flows | Statement of Cash Flows For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, due from banks and deposits with the FHLB. The Company considers all highly liquid debt instruments with original maturities of three months or less (excluding interest-bearing deposits in banks) to be cash equivalents. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when, or as, the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest, dividends and fees earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are fixed. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. |
Reclassifications | Reclassifications Certain reclassifications may have been made to the 2019 financial statements to conform with the 2020 financial statement presentation. Such reclassifications had no effect on net income or retained earnings as previously reported. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Emerging Growth Company Status The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as the Company is an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies. An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, but must make such election when the company is first required to file a registration statement. The Company has elected to use the extended transition period described above and intends to maintain its emerging growth company status as allowed under the JOBS Act. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Conforming Amendments Related to Leases . This ASU amends the codification regarding leases in order to increase transparency and comparability. The ASU requires companies to recognize lease assets and liabilities on the statement of condition and disclose key information about leasing arrangements. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the leased asset for the lease term. For an emerging growth company, the amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The amendments introduce an impairment model that is based on expected credit losses (“ECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (eg. loans and held to maturity securities), including certain off-balance sheet financial instruments (eg. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating the ECL. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. For an emerging growth company, the amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within fiscal years beginning after December 15, 2023. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently planning for the implementation of this accounting standard. It is too early to assess the impact this ASU will have on the Company’s Consolidated Financial Statements. In June 2018, FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment . The amendments in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. For an emerging growth company, the amendments in this update were effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendment did not have a material impact on the Company’s Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU are effective for fiscal years, and interim periods with those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently assessing the impact of the adoption of this standard on the Company’s Consolidated Financial Statements. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings (Loss) Per Share | |
Schedule of earnings (loss) per common share | Year Ended Year Ended December 31, December 31, (in thousands, except per share data) 2020 2019 Numerator: Net (loss) available to common shareholders $ (103) $ (61) Denominator: Weighted average common shares outstanding 1,386 1,420 Less: Average unallocated ESOP shares 108 109 Weighted average shares 1,278 1,311 Basic (loss) per common share $ (0.08) $ (0.05) |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment Securities | |
Summary of amortized cost and fair values of investment securities available-for-sale | Gross Gross December 31, 2020: Amortized Unrealized Unrealized Fair (in thousands) Cost Gains (Losses) Value Mortgage-Backed Securities: FHLMC $ 2,811 $ 63 $ — $ 2,874 SBA 7a Pools 3,183 — (7) 3,176 Total Investment Securities Available-for-Sale $ 5,994 $ 63 $ (7) $ 6,050 Gross Gross December 31, 2019: Amortized Unrealized Unrealized Fair (in thousands) Cost Gains (Losses) Value Mortgage-Backed Securities: FHLMC $ 2,664 $ — $ (19) $ 2,645 SBA 7a Pools 2,678 5 (8) 2,675 Total Investment Securities Available-for-Sale $ 5,342 $ 5 $ (27) $ 5,320 |
Summary of amortized cost and fair values of the investment securities available-for-sale by contractual maturity | Available-for-Sale December 31, 2020 Amortized Fair (in thousands) Cost Value Amounts Maturing: After One Year through Five Years $ — $ — After Five Years through Ten Years 3,266 3,257 After Ten Years 2,728 2,793 $ 5,994 $ 6,050 |
Summary of gross unrealized losses in investment securities | December 31, 2020 (in thousands) Less Than 12 Months 12 Months or More Totals Security Unrealized Unrealized Unrealized Description Fair Value (Losses) Fair Value (Losses) Fair Value (Losses) Mortgage-Backed FHLMC $ — $ — $ — $ — $ — $ — SBA 7a Pools 873 (8) 1,349 (1) 2,222 (9) $ 873 $ (8) $ 1,349 $ (1) $ 2,222 $ (9) December 31, 2019 (in thousands) Less Than 12 Months 12 Months or More Totals Security Unrealized Unrealized Unrealized Description Fair Value (Losses) Fair Value (Losses) Fair Value (Losses) Mortgage-Backed FHLMC $ 655 $ (4) $ 1,990 $ (15) $ 2,645 $ (19) SBA 7a Pools — — 1,692 (8) 1,692 (8) $ 655 $ (4) $ 3,682 $ (23) $ 4,337 $ (27) |
Loans Receivable and the Allo_2
Loans Receivable and the Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Summary of loans receivable | December 31, December 31, (in thousands) 2020 2019 Mortgage Loans 1-4 Family $ 66,148 $ 73,591 Multifamily 2,877 3,567 Commercial real estate 364 1,117 Consumer Loans 214 209 69,603 78,484 Plus (Less): Unamortized Loan Fees/Costs 1,139 1,151 Allowance for Loan Losses (850) (850) Net Loans Receivable $ 69,892 $ 78,785 |
Summary of allowance for loan losses and recorded investment in loans receivable | Allowance for Loan Losses and Recorded Investment in Loans Receivable For the Year Ended December 31, 2020 (in thousands) Mortgage- Mortgage- Mortgage- Commercial 1-4 Family Multifamily Real Estate Consumer Total Allowance for Loan Losses: Beginning Balance $ 812 $ 27 $ 11 $ — $ 850 Charge-Offs — — — — — Recoveries 2 — — — 2 Provision 10 (5) (7) — (2) Ending Balance $ 824 $ 22 $ 4 $ — $ 850 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 824 $ 22 $ 4 $ — $ 850 Loans Receivable: Ending Balance $ 66,148 $ 2,877 $ 364 $ 214 $ 69,603 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 66,148 $ 2,877 $ 364 $ 214 $ 69,603 The allowance for loan losses for Mortgage 1-4 Family Loans of $824,000 includes an unallocated portion of $495,000 as of December 31, 2020. Allowance for Loan Losses and Recorded Investment in Loans Receivable For the Year Ended December 31, 2019 (in thousands) Mortgage- Mortgage- Mortgage- Commercial 1-4 Family Multifamily Real Estate Consumer Total Allowance for Loan Losses: Beginning Balance $ 807 $ 31 $ 12 $ — $ 850 Charge-Offs — — — — — Recoveries 9 — — — 9 Provision (4) (4) (1) — (9) Ending Balance $ 812 $ 27 $ 11 $ — $ 850 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 812 $ 27 $ 11 $ — $ 850 Loans Receivable: Ending Balance $ 73,591 $ 3,567 $ 1,117 $ 209 $ 78,484 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — Collectively Evaluated for Impairment $ 73,591 $ 3,567 $ 1,117 $ 209 $ 78,484 |
Summary of credit quality indicators | Credit Quality Indicators - Credit Risk Profile Based on Payment Activity at December 31, 2020 (in thousands) Non- Performing Performing Total Mortgage Loans: 1 to 4 Family $ 66,148 $ — $ 66,148 Multifamily 2,877 — 2,877 Commercial real estate 364 — 364 Non-Mortgage Loans: Consumer 214 — 214 Total $ 69,603 $ — $ 69,603 Credit Quality Indicators - Credit Risk Profile Based on Payment Activity at December 31, 2019 (in thousands) Non- Performing Performing Total Mortgage Loans: 1 to 4 Family $ 73,591 $ — $ 73,591 Multifamily 3,567 — 3,567 Commercial real estate 1,117 — 1,117 Non-Mortgage Loans: Consumer 209 — 209 Total $ 78,484 $ — $ 78,484 |
Summary of aged analysis of past due loans receivable | Aged Analysis of Past Due Loans Receivable at December 31 , 2020 (in thousands) 30-59 60-89 90 Days or Total Days Days Greater Total Loans Past Due Past Due Past Due Past Due Current Receivable Mortgage Loans: 1 to 4 Family $ — $ — $ — $ — $ 66,148 $ 66,148 Multifamily — — — — 2,877 2,877 Commercial real estate — — — — 364 364 Non-Mortgage Loans: Consumer — — — — 214 214 Total $ — $ — $ — $ — $ 69,603 $ 69,603 Aged Analysis of Past Due Loans Receivable at December 31, 2019 (in thousands) 30-59 60-89 90 Days or Total Days Days Greater Total Loans Past Due Past Due Past Due Past Due Current Receivable Mortgage Loans: 1 to 4 Family $ — $ 89 $ — $ 89 $ 73,502 $ 73,591 Multifamily — — — — 3,567 3,567 Commercial real estate — — — — 1,117 1,117 Non-Mortgage Loans: Consumer — — — — 209 209 Total $ — $ 89 $ — $ 89 $ 78,395 $ 78,484 |
Summary of loans receivable on nonaccrual status | Loans Receivable on Nonaccrual Status at December 31 (in thousands) 2020 2019 Mortgage Loans $ — $ — |
Summary of information pertaining to impaired loans | Impaired Loans For the Year Ended December 31, 2020 (in thousands) Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Mortgage Loans $ — $ — $ — $ — $ — Non-Mortgage Loans $ — $ — $ — $ — $ — Impaired Loans For the Year Ended December 31, 2019 (in thousands) Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Mortgage Loans $ — $ — $ — $ — $ — Non-Mortgage Loans $ — $ — $ — $ — $ — |
Summary of loan modifications determined to be TDRs | Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Modifications as of December 31, 2020 (dollars in thousands) Troubled Debt Restructurings: Mortgage Loans 1-4 Family — $ — $ — Total Loans — $ — $ — Modifications as of December 31, 2019 (dollars in thousands) Troubled Debt Restructurings: Mortgage Loans 1-4 Family — $ — $ — Total Loans — $ — $ — |
Based on Loan Grades | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Summary of credit quality indicators | Credit Quality Indicators - Credit Risk Profile Based on Loan Grades at December 31, 2020 (in thousands) Special Pass Watch Mention Substandard Doubtful Total Mortgage Loans: 1 to 4 Family $ 65,504 $ 30 $ 55 $ 559 $ — $ 66,148 Multifamily 2,877 — — — — 2,877 Commercial real estate 364 — — — — 364 Non-Mortgage Loans: Consumer 214 — — — — 214 Total $ 68,959 $ 30 $ 55 $ 559 $ — $ 69,603 Credit Quality Indicators - Credit Risk Profile Based on Loan Grades at December 31, 2019 (in thousands) Special Pass Watch Mention Substandard Doubtful Total Mortgage Loans: 1 to 4 Family $ 72,937 $ 87 $ — $ 567 $ — $ 73,591 Multifamily 3,567 — — — — 3,567 Commercial real estate 1,117 — — — — 1,117 Non-Mortgage Loans: Consumer 209 — — — — 209 Total $ 77,830 $ 87 $ — $ 567 $ — $ 78,484 |
COVID-19 Loan Modification | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Schedule of remaining loan modifications due to Covid 19, not treated as TDRs | Remaining Remaining Number of Total Remaining Total Contracts Balance Percent Balance Modified Modified Modified Remaining Modifications as of December 31, 2020 (dollars in thousands) Mortgage Loans 1-4 Family $ 66,148 56 $ 11,191 Multifamily 2,877 4 1,285 Commercial Real Estate 364 — — Total Loans $ 69,389 60 $ 12,476 |
Accrued Interest Receivable (Ta
Accrued Interest Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Interest Receivable | |
Schedule of accrued interest receivable | (in thousands) 2020 2019 Loans Receivable $ 427 $ 310 Mortgage-Backed Securities 7 10 Interest-Bearing Deposits 2 1 $ 436 $ 321 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Premises and Equipment | |
Schedule of major classes of premises and equipment | (in thousands) 2020 2019 Land $ 166 $ 166 Buildings 970 970 Furniture, Fixtures and Equipment 540 525 Automobiles 93 93 1,769 1,754 Less Accumulated Depreciation and Amortization (1,108) (1,050) $ 661 $ 704 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes. | |
Schedule of income tax (benefit) expense from continuing operations | (in thousands) 2020 2019 Income Taxes from Continuing Operations: Current $ — $ — Deferred (62) 254 Income Tax (Benefit) Expense $ (62) $ 254 |
Schedule of reconciliation of federal statutory rates and incomes tax rate and amount of income tax expense (benefit) | 2020 2019 (in thousands) Amount % Amount % Expected Income Tax Expense at Statutory Rate $ (35) 21 % $ 41 % Tax Exempt Income (19) 12 % (20) (10) % Valuation Allowance for Deferred Tax Asset (Net Operating Loss) — — % 222 87 % Other Adjustments - Net (8) 5 % 11 % $ (62) 38 % $ 254 % |
Schedule of components of deferred tax assets and liabilities | (in thousands) 2020 2019 Deferred Loan Fees (Costs) $ (239) $ (241) Allowance for Loan Losses 134 124 Federal Home Loan Bank Stock (83) (78) Deferred Retirement Agreements 66 63 Tax Carryforward of Loss on Sale of Investment Securities — 227 Tax Carryforwards of Net Operating Losses 217 324 All Other Temporary Differences 122 30 217 449 Valuation Allowance for Deferred Tax Asset (Loss on Sale of Investment Securities) — (227) Valuation Allowance for Deferred Tax Asset (Net Operating Losses) (217) (222) — — Unrealized (Gains) Losses on Securities Available-for-Sale (12) 5 Net Deferred Tax (Liability) Asset $ (12) $ 5 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits | |
Schedule of deposits | Deposits at December 31 are summarized below (in thousands): 2020 2019 Amount % Amount % Passbook Savings $ 2,705 4.8 $ 2,691 4.6 Money Market Accounts 146 0.3 106 0.2 Certificates of Deposit 53,577 94.9 55,248 95.2 $ 56,428 100.0 $ 58,045 100.0 |
Schedule of maturities and average interest rate of certificates of deposits | Scheduled maturities and average interest rates of certificates of deposit at December 31, 2020 are summarized as follows (in thousands): Average Interest Amount Rate % 2021 $ 18,352 1.529 % 2022 11,572 1.804 % 2023 4,660 1.785 % 2024 6,525 1.958 % 2025 10,475 0.845 % Thereafter 1,993 2.467 % $ 53,577 1.564 % |
Schedule of interest expense on deposits | (in thousands) 2020 2019 Passbook Savings $ 7 $ 6 Money Market Accounts — — Certificates of Deposit 1,004 1,255 $ 1,011 $ 1,261 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (FHLB) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Advances from Federal Home Loan Bank (FHLB) | |
Schedule of FHLB advances | The FHLB advances consist of the following obligations at December 31, 2020 and 2019 (in thousands): Effective Interest Rate 2020 2019 Less than 1.00% $ 4,000 $ — 1.00% to 1.99% 2,250 3,500 2.00% to 2.99% 5,000 8,000 3.00% to 3.99% 8,193 8,134 4.00% to 4.99% — — 5.00% to 5.99% — 1,947 $ 19,443 $ 21,581 |
Schedule of maturities of FHLB advances | Due In Amount (in thousands) 2021 $ 3,250 2022 — 2023 500 2024 11,693 Thereafter 4,000 $ 19,443 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Summary of the changes in the balances of each component of accumulated other comprehensive income (loss) | (in thousands) 2020 2019 Unrealized Gains (Losses) on Securities Available-for-Sale: Balance at Beginning of Year $ (18) $ (96) Other Comprehensive Income (Loss) Before Reclassifications - Net of Tax 62 (79) Reclassification Adjustments for Losses Realized - Net of Tax — 157 Balance at End of Year $ 44 $ (18) |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters | |
Schedule of actual and required capital amounts and ratios | To be Well Capitalized Under For Capital Prompt Corrective December 31, 2020: Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 19,658 43.41 % $ 3,623 8.00 % $ 4,529 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 19,089 42.15 % $ 2,717 6.00 % $ 3,623 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 19,089 42.15 % $ 2,038 4.50 % $ 2,944 6.50 % Tier 1 Leverage Capital (to Adjusted Total Assets) $ 19,089 18.94 % $ 4,030 4.00 % $ 5,038 5.00 % To be Well Capitalized Under For Capital Prompt Corrective December 31, 2019: Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 19,568 38.94 % $ 4,020 8.00 % $ 5,026 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 18,938 37.68 % $ 3,015 6.00 % $ 4,020 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 18,938 37.68 % $ 2,262 4.50 % $ 3,267 6.50 % Tier 1 Leverage Capital (to Adjusted Total Assets) $ 18,938 17.47 % $ 4,336 4.00 % $ 5,420 5.00 % |
Schedule of reconciliation of capital | December 31, December 31, (in thousands) 2020 2019 Total Equity (Bank Only) $ 19,133 $ 18,920 Unrealized (Gains) Losses on Securities Available-for-Sale, Net (44) 18 Tangible, Tier 1 Capital and Common Equity Tier 1 19,089 18,938 Allowance for Loan Losses Included in Capital 569 630 Total Capital $ 19,658 $ 19,568 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Schedule of activity in loans to directors, officers and employees | (in thousands) 2020 2019 Balance at Beginning of Year $ 307 $ 382 Add: New Loans or Advances — — Less: Payments (19) (75) Balance at End of Year $ 288 $ 307 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Schedule of future minimum rental commitments under the operating lease | Year Ended December 31, Amount (in thousands) 2021 $ 51 2022 53 2023 53 2024 13 Total Minimum Payments Required $ 170 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Values of Financial Instruments | |
Summary of assets measured on a recurring basis | Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2020: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Mortgage-Backed Securities FHLMC $ 2,874 $ — $ 2,874 $ — SBA 7a Pools 3,176 — 3,176 — Total Investment Securities $ 6,050 $ — $ 6,050 $ — Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2019: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Mortgage-Backed Securities FHLMC $ 2,645 $ — $ 2,645 $ — SBA 7a Pools 2,675 — 2,675 — Total Investment Securities $ 5,320 $ — $ 5,320 $ — |
Summary of financial assets and liabilities that are measured at fair value on a non-recurring basis | Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2020: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Assets: Impaired Loans $ — $ — $ — $ — Other Real Estate — — — — Total $ — $ — $ — $ — Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets Other Significant for Identical Observable Unobservable December 31, 2019: Fair Assets Inputs Inputs (in thousands) Value (Level 1) (Level 2) (Level 3) Assets: Impaired Loans $ — $ — $ — $ — Other Real Estate — — — — Total $ — $ — $ — $ — |
Summary of estimated fair values of the Homestead’s financial instruments | December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Financial Assets: Cash and Cash Equivalents $ 3,952 $ 3,952 $ 11,875 $ 11,875 Interest-Bearing Deposits in Banks 9,488 9,488 1,740 1,740 Investment Securities 6,050 6,050 5,320 5,320 Loans - Net 69,892 71,829 78,785 82,300 Loans Held-for-Sale 3,610 3,610 1,637 1,637 Accrued Interest Receivable 436 436 321 321 FHLB Stock 1,440 1,440 1,418 1,418 Cash Surrender Value of Life Insurance 4,137 4,137 4,044 4,044 Financial Liabilities: Deposits 56,428 57,931 58,045 59,053 Advances from FHLB 19,443 20,469 21,581 22,007 Accrued Interest Payable 69 69 137 137 |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information (Parent Company Only) | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEETS DECEMBER 31, 2020 AND 2019 (in thousands) 2020 2019 ASSETS Cash in Bank $ 2,831 $ 5,392 Due from Subsidiary — 4 Investment in Subsidiary 19,146 18,920 Total Assets $ 21,977 $ 24,316 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities $ 37 $ 32 Stockholders' Equity 21,940 24,284 Total Liabilities and Stockholders' Equity $ 21,977 $ 24,316 |
Schedule of Condensed Statements of Loss | CONDENSED STATEMENTS OF LOSS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2021 (in thousands) 2020 2019 Income: Equity in Net Income (Loss) of Subsidiary $ 151 $ (22) Other Income — 27 Total Income 151 5 Expenses: Professional Fees 172 85 Other Expense 95 48 Total Expenses 267 133 Loss Before Income Tax (Benefit) (116) (128) Income Tax (Benefit) (13) — Net Loss $ (103) $ (128) |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (in thousands) 2020 2019 Cash Flows from Operating Activities: Net Loss $ (103) $ (128) Adjustments to Reconcile Net Loss to Net Cash (Used in) Operating Activities: Cash (Used in) Operating Activities: (Increase) in Due from Subsidiary (9) (4) Non-cash Compensation for ESOP 48 56 (Increase) Decrease in Equity in Net Income of Subsidiary (151) 22 Increase in Liabilities 5 32 Net Cash (Used in) Operating Activities (210) (22) Cash Flows from Investing Activities: Investment in Subsidiary — (6,558) Net Cash (Used in) Investing Activities — (6,558) Cash Flows from Financing Activities: Proceeds from Stock Offering — 11,972 Shares Repurchased (2,351) — Net Cash (Used in) Provided by Financing Activities (2,351) 11,972 Net (Decrease) Increase in Cash and Cash Equivalents (2,561) 5,392 Cash and Cash Equivalents at Beginning of Period 5,392 — Cash and Cash Equivalents at End of Period $ 2,831 $ 5,392 |
Nature of Operations, Princip_3
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies - Nature of Operations (Details) | Jul. 09, 2019$ / sharesshares | Dec. 31, 2020location$ / sharesshares |
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies | ||
Common stock offering, shares issued | 1,429,676 | |
ESOP, number of shares | 114,374 | 114,374 |
Stock price when issued | $ / shares | $ 10 | $ 10 |
Number of locations | location | 2 |
Nature of Operations, Princip_4
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies - Investment Securities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Securities | ||
Trading securities | $ 0 | $ 0 |
Held-to-maturity securities | $ 0 | $ 0 |
Nature of Operations, Princip_5
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies - Other Real Estate (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Real Estate | ||
Other Real Estate | $ 0 | $ 0 |
Nature of Operations, Princip_6
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies - Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Premises and Equipment | |
Estimated useful lives | 3 years |
Maximum | |
Premises and Equipment | |
Estimated useful lives | 39 years |
Nature of Operations, Princip_7
Nature of Operations, Principles of Consolidation, Use of Estimates and Summary of Significant Accounting Policies - Expenses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Marketing and Advertising Expense [Abstract] | ||
Advertising expense | $ 17,000 | $ 27,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||
Net (loss) available to common shareholders | $ (103) | $ (61) |
Denominator | ||
Weighted average common shares outstanding | 1,386 | 1,420 |
Less: Average unallocated ESOP shares | 108 | 109 |
Weighted average shares | 1,278 | 1,311 |
Basic (loss) per common share | $ (0.08) | $ (0.05) |
Investment Securities - Amortiz
Investment Securities - Amortized cost and fair values (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 5,994 | $ 5,342 |
Gross Unrealized Gains | 63 | 5 |
Gross Unrealized (Losses) | (7) | (27) |
Fair Value | 6,050 | 5,320 |
SBA 7a Pools | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 3,183 | 2,678 |
Gross Unrealized Gains | 5 | |
Gross Unrealized (Losses) | (7) | (8) |
Fair Value | 3,176 | 2,675 |
FHLMC | Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 2,811 | 2,664 |
Gross Unrealized Gains | 63 | |
Gross Unrealized (Losses) | (19) | |
Fair Value | $ 2,874 | $ 2,645 |
Investment Securities - Contrac
Investment Securities - Contractual maturity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amortized Cost | ||
After Five Years through Ten Years | $ 3,266,000 | |
After Ten Years | 2,728,000 | |
Amortized Cost | 5,994,000 | |
Fair Value | ||
After Five Years through Ten Years | 3,257,000 | |
After Ten Years | 2,793,000 | |
Fair value | 6,050,000 | |
Securities pledged to secure advances from the FHLB | 0 | $ 0 |
Proceeds from sales and calls of available-for-sale investment securities | $ 0 | 683,000 |
Realized gains | $ 6,000 |
Investment Securities - Gross u
Investment Securities - Gross unrealized losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value | ||
Less Than 12 Months | $ 873,000 | $ 655,000 |
12 Months or More | 1,349,000 | 3,682,000 |
Total fair value | 2,222,000 | 4,337,000 |
Unrealized (Losses) | ||
Less Than 12 Months | (8,000) | (4,000) |
12 Months or More | (1,000) | (23,000) |
Total unrealized (losses) | (9,000) | (27,000) |
Declines deemed to be other-than-temporary | 0 | 0 |
SBA 7a Pools | ||
Fair Value | ||
Less Than 12 Months | 873,000 | |
12 Months or More | 1,349,000 | 1,692,000 |
Total fair value | 2,222,000 | 1,692,000 |
Unrealized (Losses) | ||
Less Than 12 Months | (8,000) | |
12 Months or More | (1,000) | (8,000) |
Total unrealized (losses) | $ (9,000) | (8,000) |
FHLMC | Mortgage-Backed Securities | ||
Fair Value | ||
Less Than 12 Months | 655,000 | |
12 Months or More | 1,990,000 | |
Total fair value | 2,645,000 | |
Unrealized (Losses) | ||
Less Than 12 Months | (4,000) | |
12 Months or More | (15,000) | |
Total unrealized (losses) | $ (19,000) |
Investment in FHLB Stock (Detai
Investment in FHLB Stock (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investment in FHLB Stock | ||
Carrying amount of investment stated at cost | $ 1,440,000 | $ 1,418,000 |
Loans Receivable and the Allo_3
Loans Receivable and the Allowance for Loan Losses - Loans receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 69,603 | $ 78,484 |
Unamortized Loan Fees/Costs | 1,139 | 1,151 |
Allowance for Loan Losses | (850) | (850) |
Net Loans Receivable | 69,892 | 78,785 |
Mortgage - 1-4 Family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 66,148 | 73,591 |
Mortgage - Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 2,877 | 3,567 |
Mortgage - Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 364 | 1,117 |
Consumer Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 214 | $ 209 |
Loans Receivable and the Allo_4
Loans Receivable and the Allowance for Loan Losses - Allowance (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Allowance for Loan Losses: | ||||
Beginning Balance | $ 850,000 | $ 850,000 | ||
Recoveries | 2,000 | 9,000 | ||
Provision | (2,000) | (9,000) | ||
Ending Balance | 850,000 | 850,000 | ||
Ending Balance: Collectively Evaluated for Impairment | $ 850,000 | $ 850,000 | ||
Loans Receivable: Ending Balance | 69,603,000 | 78,484,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 69,603,000 | 78,484,000 | ||
Allowance for loan losses, unallocated portion | 850,000 | 850,000 | 850,000 | 850,000 |
Loan balances outstanding on non-accrual status | 0 | 0 | ||
Mortgage - 1-4 Family | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 812,000 | 807,000 | ||
Recoveries | 2,000 | 9,000 | ||
Provision | 10,000 | (4,000) | ||
Ending Balance | 824,000 | 812,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 824,000 | 812,000 | ||
Loans Receivable: Ending Balance | 66,148,000 | 73,591,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 66,148,000 | 73,591,000 | ||
Allowance for loan losses, unallocated portion | 824,000 | 812,000 | 824,000 | 812,000 |
Mortgage - Multifamily | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 27,000 | 31,000 | ||
Provision | (5,000) | (4,000) | ||
Ending Balance | 22,000 | 27,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 22,000 | 27,000 | ||
Loans Receivable: Ending Balance | 2,877,000 | 3,567,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 2,877,000 | 3,567,000 | ||
Allowance for loan losses, unallocated portion | 22,000 | 27,000 | 22,000 | 27,000 |
Mortgage - Commercial real estate | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 11,000 | 12,000 | ||
Provision | (7,000) | (1,000) | ||
Ending Balance | 4,000 | 11,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 4,000 | 11,000 | ||
Loans Receivable: Ending Balance | 364,000 | 1,117,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 364,000 | 1,117,000 | ||
Allowance for loan losses, unallocated portion | 4,000 | 11,000 | 4,000 | 11,000 |
Consumer Loans | ||||
Allowance for Loan Losses: | ||||
Loans Receivable: Ending Balance | 214,000 | 209,000 | ||
Ending Balance: Collectively Evaluated for Impairment | 214,000 | 209,000 | ||
Unallocated finance receivable | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 437,000 | |||
Ending Balance | 495,000 | 437,000 | ||
Allowance for loan losses, unallocated portion | $ 495,000 | $ 437,000 | $ 495,000 | $ 437,000 |
Maximum | ||||
Allowance for Loan Losses: | ||||
Stressed debt service coverage ratio | 1.20 |
Loans Receivable and the Allo_5
Loans Receivable and the Allowance for Loan Losses - Aged analysis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 69,603,000 | $ 78,484,000 |
Loans over 90 days past due and still accruing | 0 | 0 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 69,603,000 | 78,484,000 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 68,959,000 | 77,830,000 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 30,000 | 87,000 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 55,000 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 559,000 | 567,000 |
Mortgage - 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 66,148,000 | 73,591,000 |
Mortgage - 1-4 Family | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 66,148,000 | 73,591,000 |
Mortgage - 1-4 Family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 65,504,000 | 72,937,000 |
Mortgage - 1-4 Family | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 30,000 | 87,000 |
Mortgage - 1-4 Family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 55,000 | |
Mortgage - 1-4 Family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 559,000 | 567,000 |
Mortgage - Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 2,877,000 | 3,567,000 |
Mortgage - Multifamily | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 2,877,000 | 3,567,000 |
Mortgage - Multifamily | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 2,877,000 | 3,567,000 |
Mortgage - Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 364,000 | 1,117,000 |
Mortgage - Commercial real estate | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 364,000 | 1,117,000 |
Mortgage - Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 364,000 | 1,117,000 |
Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 214,000 | 209,000 |
Consumer Loans | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 214,000 | 209,000 |
Consumer Loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 214,000 | $ 209,000 |
Loans Receivable and the Allo_6
Loans Receivable and the Allowance for Loan Losses - Nonaccrual status (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | $ 89,000 | |
Current | $ 69,603,000 | 78,395,000 |
Total Loans Receivable | 69,603,000 | 78,484,000 |
Loan balances outstanding on non-accrual status | 0 | 0 |
Mortgage - 1-4 Family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 89,000 | |
Current | 66,148,000 | 73,502,000 |
Total Loans Receivable | 66,148,000 | 73,591,000 |
Mortgage - Multifamily | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 2,877,000 | 3,567,000 |
Total Loans Receivable | 2,877,000 | 3,567,000 |
Mortgage - Commercial real estate | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 364,000 | 1,117,000 |
Total Loans Receivable | 364,000 | 1,117,000 |
Consumer Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 214,000 | 209,000 |
Total Loans Receivable | $ 214,000 | 209,000 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 89,000 | |
60-89 Days Past Due | Mortgage - 1-4 Family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | $ 89,000 |
Loans Receivable and the Allo_7
Loans Receivable and the Allowance for Loan Losses - TDRs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Debt restructurings defaulted subsequent to the restructuring | $ 0 | $ 0 |
Loans Receivable and the Allo_8
Loans Receivable and the Allowance for Loan Losses - Remaining Covid 19 Loan modifications (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | $ 69,603 | $ 78,484 |
Resumed normal monthly payments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Remaining Number of Contracts Modified | contract | 60 | |
Paid Off | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Remaining Number of Contracts Modified | contract | 12 | |
Paid entire deferred amounts | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Remaining Number of Contracts Modified | contract | 1 | |
COVID-19 Loan Modification | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | $ 69,389 | |
Remaining Number of Contracts Modified | contract | 60 | |
Remaining Total Balance Modified | $ 12,476 | |
Remaining Percent Modified | 18.00% | |
COVID-19 Loan Modification | CARES Act | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Remaining Number of Contracts Modified | contract | 73 | |
Remaining Total Balance Modified | $ 15,600 | |
Mortgage - 1-4 Family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | 66,148 | 73,591 |
Mortgage - 1-4 Family | COVID-19 Loan Modification | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | $ 66,148 | |
Remaining Number of Contracts Modified | contract | 56 | |
Remaining Total Balance Modified | $ 11,191 | |
Remaining Percent Modified | 16.90% | |
Mortgage - Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | $ 2,877 | 3,567 |
Mortgage - Multifamily | COVID-19 Loan Modification | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | $ 2,877 | |
Remaining Number of Contracts Modified | contract | 4 | |
Remaining Total Balance Modified | $ 1,285 | |
Remaining Percent Modified | 44.70% | |
Mortgage - Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | $ 364 | $ 1,117 |
Mortgage - Commercial real estate | COVID-19 Loan Modification | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Balance | $ 364 | |
Remaining Percent Modified | 0.00% |
Accrued Interest Receivable (De
Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Interest Receivable | ||
Accrued Interest Receivable | $ 436 | $ 321 |
Loans Receivable | ||
Accrued Interest Receivable | ||
Accrued Interest Receivable | 427 | 310 |
Mortgage-Backed Securities. | ||
Accrued Interest Receivable | ||
Accrued Interest Receivable | 7 | 10 |
Interest-Bearing Deposits | ||
Accrued Interest Receivable | ||
Accrued Interest Receivable | $ 2 | $ 1 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Premises and Equipment | ||
Premises and equipment, gross | $ 1,769,000 | $ 1,754,000 |
Less Accumulated Depreciation and Amortization | (1,108,000) | (1,050,000) |
Premises and equipment, net | 661,000 | 704,000 |
Depreciation and amortization | 58,000 | 84,000 |
Land | ||
Premises and Equipment | ||
Premises and equipment, gross | 166,000 | 166,000 |
Buildings | ||
Premises and Equipment | ||
Premises and equipment, gross | 970,000 | 970,000 |
Furniture, Fixtures and Equipment | ||
Premises and Equipment | ||
Premises and equipment, gross | 540,000 | 525,000 |
Automobiles | ||
Premises and Equipment | ||
Premises and equipment, gross | $ 93,000 | $ 93,000 |
Income Taxes - Income tax (bene
Income Taxes - Income tax (benefit) expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes from Continuing Operations: | ||
Deferred | $ (62) | $ 254 |
Income Tax (Benefit) Expense | $ (62) | $ 254 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Reconciliation of income tax expense based on statutory rates and effective income tax rate | |||
Expected Income Tax Expense at Statutory Rate | $ (35) | $ 41 | |
Tax Exempt Income | (19) | (20) | |
Valuation Allowance for Deferred Tax Asset (Net Operating Loss) | 222 | ||
Other Adjustments - Net | (8) | 11 | |
Income Tax (Benefit) Expense | $ (62) | $ 254 | |
Reconciliation of income tax expense rate to federal statutory rates | |||
Expected Income Tax Expense at Statutory Rate | 21.00% | 21.00% | 21.00% |
Tax Exempt Income | 12.00% | (10.00%) | |
Valuation Allowance for Deferred Tax Asset (Net Operating Loss) | 87.00% | ||
Other Adjustments - Net | 5.00% | 6.00% | |
Income Tax Expense | 38.00% | 104.00% |
Income Taxes - Components of de
Income Taxes - Components of deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Components of deferred tax assets and liabilities | ||
Deferred Loan Fees (Costs) | $ (239,000) | $ (241,000) |
Allowance for Loan Losses | 134,000 | 124,000 |
Federal Home Loan Bank Stock | (83,000) | (78,000) |
Deferred Retirement Agreements | 66,000 | 63,000 |
Tax Carryforward of Loss on Sale of Investment Securities | 227,000 | |
Tax Carryforwards of Net Operating Losses | 217,000 | 324,000 |
All Other Temporary Differences | 122,000 | 30,000 |
Deferred Tax Assets | 217,000 | 449,000 |
Valuation Allowance for Deferred Tax Asset (Loss on Sale of Investment Securities) | (227,000) | |
Valuation Allowance for Deferred Tax Asset (Net Operating Losses) | (217,000) | (222,000) |
Deferred Tax Asset Net of Valuation Allowance | ||
Unrealized (Gains) Losses on Securities Available-for-Sale | (12,000) | 5,000 |
Net Deferred Tax Asset | 5,000 | |
Net Deferred Tax (Liability) | (12,000) | |
Amount of bad debts deductions for which no deferred tax liability recognized | 3,986,000 | 3,986,000 |
Deferred income tax liability | 0 | 0 |
Unrecorded deferred income tax liability on bad debts reserve | $ 837,000 | $ 837,000 |
Income Taxes - (Details)
Income Taxes - (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||
Valuation adjustment | $ 217,000 | |
Capital Loss carryforward | ||
Tax Credit Carryforward [Line Items] | ||
Income tax loss carryforward which expired unused in 2020 | $ 1,100,000 | |
Valuation adjustment | 227,000 | |
Federal | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | 267,000 | $ 1,300,000 |
Income taxes receivable, net operating loss, CARES act | 62,000 | |
Operating loss carryforwards, without expiry | $ 1,400,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits | ||
Passbook Savings | $ 2,705 | $ 2,691 |
Money Market Accounts | 146 | 106 |
Certificates of Deposit | 53,577 | 55,248 |
Deposits | $ 56,428 | $ 58,045 |
Percentage of deposits | ||
Passbook Savings (percentage) | 4.80% | 4.60% |
Money Market Accounts (percentage) | 0.30% | 0.20% |
Certificates of Deposit (percentage) | 94.90% | 95.20% |
Deposits (percentage) | 100.00% | 100.00% |
Weighted average interest rate on deposits | 1.50% | 1.91% |
Deposits - Maturities and avera
Deposits - Maturities and average interest rates of COD (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of maturities of certificates of deposits | ||
2021 | $ 18,352,000 | |
2022 | 11,572,000 | |
2023 | 4,660,000 | |
2024 | 6,525,000 | |
2025 | 10,475,000 | |
Thereafter | 1,993,000 | |
Certificates of Deposit | $ 53,577,000 | $ 55,248,000 |
Schedule of average interest rate of Certificates of deposits | ||
2021 | 1.529% | |
2022 | 1.804% | |
2023 | 1.785% | |
2024 | 1.958% | |
2025 | 0.845% | |
Thereafter | 2.467% | |
Weighted average interest rate of certificates of deposit | 1.564% | |
Aggregate amount of time deposits with a denomination greater than $250,000 | $ 2,589,000 | $ 2,088,000 |
Deposits - Interest expense on
Deposits - Interest expense on deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest expense on deposits | ||
Passbook Savings | $ 7 | $ 6 |
Certificates of Deposit | 1,004 | 1,255 |
Interest expense on deposits | $ 1,011 | $ 1,261 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank (FHLB) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Advances from Federal Home Loan Bank (FHLB) | ||
FHLB advances | $ 19,443 | $ 21,581 |
Less than 1.00% | ||
Advances from Federal Home Loan Bank (FHLB) | ||
FHLB advances | 4,000 | |
1.00% to 1.99% | ||
Advances from Federal Home Loan Bank (FHLB) | ||
FHLB advances | 2,250 | 3,500 |
2.00% to 2.99% | ||
Advances from Federal Home Loan Bank (FHLB) | ||
FHLB advances | 5,000 | 8,000 |
3.00% to 3.99% | ||
Advances from Federal Home Loan Bank (FHLB) | ||
FHLB advances | $ 8,193 | 8,134 |
5.00% to 5.99% | ||
Advances from Federal Home Loan Bank (FHLB) | ||
FHLB advances | $ 1,947 |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank (FHLB) - Maturities of FHLB (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Scheduled maturities of FHLB | ||
2021 | $ 3,250,000 | |
2023 | 500,000 | |
2024 | 11,693,000 | |
Thereafter | 4,000,000 | |
FHLB advances | 19,443,000 | $ 21,581,000 |
Unused advances available with FHLB | 17,100,000 | |
Unsecured federal funds agreement with FNBB | 6,600,000 | |
Federal funds purchased | $ 0 | $ 0 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Plan and Pension Plan (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
401(k) Plan | ||
401(k) Plan | ||
Threshold age, employees eligible for plan | 21 years | |
Threshold period of service, employees eligible for plan | 6 months | |
Threshold hours of service, employees eligible for plan | 1,000 | |
Employer's contributions to the plan | $ 49,000 | $ 44,000 |
401(k) Plan | First 3% of employees' salary deferral contribution | ||
401(k) Plan | ||
Employer's matching contribution percentage | 100.00% | 100.00% |
Percentage of employee's gross pay for which employer contributes matching contribution | 3.00% | 3.00% |
401(k) Plan | Next 2% of annual compensation | ||
401(k) Plan | ||
Employer's matching contribution percentage | 50.00% | 50.00% |
Percentage of employee's gross pay for which employer contributes matching contribution | 2.00% | 2.00% |
Pension Plan | ||
401(k) Plan | ||
Percentage of employee's gross pay for which employer contributes matching contribution | 25.00% | |
Threshold age, employees eligible for plan | 21 years | |
Threshold period of service, employees eligible for plan | 1 year | |
Employer's contributions to the plan | $ 83,000 | $ 67,000 |
Employer’s annual contributions to the plan | 5.40% | 5.40% |
Employer’s contributions, percentage per year after first year in the plan | 20.00% | |
Employer’s contributions, vesting period | 6 years |
Employee Benefit - Employee Sto
Employee Benefit - Employee Stock Ownership Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jul. 09, 2019 | |
Employee Benefit Plans | |||
ESOP, number of shares | 114,374 | 114,374 | |
ESOP, number of shares allocated | 4,575 | 4,575 | |
ESOP, number of shares unallocated | 105,224 | ||
ESOP, compensation expense | $ 48,000 | $ 56,000 | |
Stock price when issued | $ 10 | $ 10 | |
ESOP, Aggregate fair value of unallocated shares | $ 1,347,000 | ||
Closing price | $ 12.80 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Retirement Agreements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2019 | |
Other Retirement Agreements | |||
Employee Benefit Plans | |||
Threshold period of service of employee to be eligible for plan | 10 years | ||
Threshold age of employees eligible for plan | 75 years | ||
Payments to be made to each director | $ 120,000 | ||
Payments deferred (in years) | 10 years | ||
Age at which the retirement benefits would begin | 65 years | ||
Period in which the accrued balance at the termination date will be paid | 1 year | ||
Total accrued balance of benefit | $ 1,500,000 | ||
Expense incurred under the plan | $ 35,000 | $ 34,000 | |
Accrued liability | 312,000 | 301,000 | |
Other Retirement Agreements | Minimum | |||
Employee Benefit Plans | |||
Employee annual benefits for life | 66,000 | ||
Other Retirement Agreements | Maximum | |||
Employee Benefit Plans | |||
Employee annual benefits for life | 85,000 | ||
Life insurance policies | |||
Employee Benefit Plans | |||
Employee annual benefits for life | $ 7,192,000 | $ 7,174,000 |
Employee Benefit Plans - Deferr
Employee Benefit Plans - Deferred Compensation Agreement (Details) | Mar. 01, 2019USD ($) |
Split Dollar Life Insurance | |
Employee Benefit Plans | |
Beneficiary amount of death proceeds | $ 700,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at Beginning of Year | $ 24,284 | $ 12,239 |
Balance at End of Year | 21,940 | 24,284 |
Unrealized Gains (Losses) on Securities Available-for-Sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at Beginning of Year | (18) | (96) |
Other Comprehensive Income (Loss) Before Reclassification - Net of Tax | 62 | (79) |
Reclassification Adjustments for Losses Realized - Net of Tax | 157 | |
Balance at End of Year | $ 44 | $ (18) |
Regulatory Matters - Capital am
Regulatory Matters - Capital amounts and ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total risk-based capital to risk-weighted assets | ||
Actual amount | $ 19,658 | $ 19,568 |
Actual ratio | 43.41 | 38.94 |
Capital Adequacy Purposes, amount | $ 3,623 | $ 4,020 |
Capital Adequacy Purposes, ratio | 8 | 8 |
To be Well Capitalized Under Prompt Corrective Action Provisions, amount | $ 4,529 | $ 5,026 |
To be Well Capitalized Under Prompt Corrective Action Provisions, ratio | 10 | 10 |
Tier I capital to risk- weighted assets | ||
Actual amount | $ 19,089 | $ 18,938 |
Actual ratio | 42.15 | 37.68 |
Capital Adequacy Purposes, amount | $ 2,717 | $ 3,015 |
Capital Adequacy Purposes, ratio | 6 | 6 |
To be Well Capitalized Under Prompt Corrective Action Provisions, amount | $ 3,623 | $ 4,020 |
To be Well Capitalized Under Prompt Corrective Action Provisions, ratio | 8 | 8 |
Common equity Tier 1 capital to risk-weighted assets | ||
Actual amount | $ 19,089 | $ 18,938 |
Actual ratio | 42.15% | 37.68% |
Capital Adequacy Purposes, amount | $ 2,038 | $ 2,262 |
Capital Adequacy Purposes, ratio | 4.50% | 4.50% |
To be Well Capitalized Under Prompt Corrective Action Provisions, amount | $ 2,944 | $ 3,267 |
To be Well Capitalized Under Prompt Corrective Action Provisions, ratio | 6.50% | 6.50% |
Tier I Leverage capital to adjusted total assets | ||
Actual amount | $ 19,089 | $ 18,938 |
Actual ratio | 18.94 | 17.47 |
Capital Adequacy Purposes, amount | $ 4,030 | $ 4,336 |
Capital Adequacy Purposes, ratio | 4 | 4 |
To be Well Capitalized Under Prompt Corrective Action Provisions, amount | $ 5,038 | $ 5,420 |
To be Well Capitalized Under Prompt Corrective Action Provisions, ratio | 5 | 5 |
Regulatory Matters - Reconcilia
Regulatory Matters - Reconciliation of capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Regulatory Matters | ||
Total Equity (Bank Only) | $ 19,133 | $ 18,920 |
Unrealized (Gains) Losses On Securities Available-for-Sale, Net | (44) | 18 |
Tangible, Tier 1 Capital and Common Equity Tier 1 | 19,089 | 18,938 |
Allowance for Loan Losses Included in Capital | 569 | 630 |
Total Capital | $ 19,658 | $ 19,568 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loans to directors, officers and employees | ||
Balance at Beginning of Year | $ 307,000 | $ 382,000 |
Less : Payments | (19,000) | (75,000) |
Balance at End of Year | 288,000 | 307,000 |
Related parties deposits | $ 637,000 | $ 686,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Commitments (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)lease | Dec. 31, 2019USD ($) | |
Lease Commitments | ||
Operating lease, term of lease | 3 years | |
Operating lease, number of options to extend | lease | 6 | |
Operating lease, renewal term | 3 years | |
Rental expense | $ 48,000 | $ 48,000 |
Operating lease | ||
2021 | 51,000 | |
2022 | 53,000 | |
2023 | 53,000 | |
2024 | 13,000 | |
Total Minimum Payments Required | $ 170,000 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Instruments with Off-Balance-Sheet Risk | ||
Loans sold to investors | $ 7,800,000 | |
Mortgage loan sold, recourse period from date of sale | 4 months | |
Mortgage loan sold, continuous default period | 90 days | |
Mortgage loan sold, prepayment period | 180 days | |
Indemnification amount in addition to service lease premium | $ 5,000 | |
Recourse for number of days after date of sale | 180 days | |
Loan origination commitments | ||
Financial Instruments with Off-Balance-Sheet Risk | ||
Off-balance-sheet risk, amount, liability | $ 1,983,000 | $ 524,000 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Recurring (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets measured on a recurring basis | ||
Total Investment Securities | $ 6,050 | $ 5,320 |
Mortgage-Backed Securities | FHLMC | ||
Assets measured on a recurring basis | ||
Total Investment Securities | 2,874 | 2,645 |
SBA 7a Pools | ||
Assets measured on a recurring basis | ||
Total Investment Securities | 3,176 | 2,675 |
Level 2 | ||
Assets measured on a recurring basis | ||
Total Investment Securities | 6,050 | 5,320 |
Level 2 | Mortgage-Backed Securities | FHLMC | ||
Assets measured on a recurring basis | ||
Total Investment Securities | 2,874 | 2,645 |
Level 2 | SBA 7a Pools | ||
Assets measured on a recurring basis | ||
Total Investment Securities | $ 3,176 | $ 2,675 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Estimated fair values (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Financial Assets: | ||
Cash and Cash Equivalents | $ 3,952 | $ 11,875 |
Interest-Bearing Deposits in Banks | 9,488 | 1,740 |
Investment Securities | 6,050 | 5,320 |
Loans - Net | 69,892 | 78,785 |
Loans Held-for-Sale | 3,610 | 1,637 |
Accrued Interest Receivable | 436 | 321 |
FHLB Stock | 1,440 | 1,418 |
Cash Surrender Value of Life Insurance | 4,137 | 4,044 |
Financial Liabilities: | ||
Deposits | 56,428 | 58,045 |
Advances from FHLB | 19,443 | 21,581 |
Accrued Interest Payable | 69 | 137 |
Fair Value | ||
Financial Assets: | ||
Cash and Cash Equivalents | 3,952 | 11,875 |
Interest-Bearing Deposits in Banks | 9,488 | 1,740 |
Investment Securities | 6,050 | 5,320 |
Loans - Net | 71,829 | 82,300 |
Loans Held-for-Sale | 3,610 | 1,637 |
Accrued Interest Receivable | 436 | 321 |
FHLB Stock | 1,440 | 1,418 |
Cash Surrender Value of Life Insurance | 4,137 | 4,044 |
Financial Liabilities: | ||
Deposits | 57,931 | 59,053 |
Advances from FHLB | 20,469 | 22,007 |
Accrued Interest Payable | $ 69 | $ 137 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 2 Months Ended | 12 Months Ended |
Feb. 28, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||
Stock Shares Repurchased | $ 2,349,000 | |
Common Stock | ||
Subsequent Event [Line Items] | ||
Stock Shares Repurchased | $ 2,000 | |
Subsequent Event | Common Stock | ||
Subsequent Event [Line Items] | ||
Stock Shares Repurchased (in Shares) | 22,500 | |
Stock Shares Repurchased | $ 281,000 |
Change in Corporate Form (Detai
Change in Corporate Form (Details) $ / shares in Units, $ in Millions | Jul. 09, 2019USD ($)$ / sharesshares |
Change in Corporate Form | |
Share price | $ / shares | $ 10 |
Percentage of common shares | 8.00% |
Common stock offering, shares issued | shares | 1,429,676 |
Common stock offering | $ | $ 1.2 |
Condensed Financial Informati_3
Condensed Financial Information - CONDENSED BALANCE SHEETS (Parent Company Only) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||
Total Assets | $ 99,896 | $ 106,004 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Liabilities | 77,956 | 81,720 | |
Stockholders' Equity | 21,940 | 24,284 | $ 12,239 |
Total Liabilities and Stockholders' Equity | 99,896 | 106,004 | |
Parent Company | |||
ASSETS | |||
Cash in Bank | 2,831 | 5,392 | |
Due from Subsidiary | 4 | ||
Investment in Subsidiary | 19,146 | 18,920 | |
Total Assets | 21,977 | 24,316 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Liabilities | 37 | 32 | |
Stockholders' Equity | 21,940 | 24,284 | |
Total Liabilities and Stockholders' Equity | $ 21,977 | $ 24,316 |
Condensed Financial Informati_4
Condensed Financial Information - CONDENSED STATEMENTS OF LOSS (Parent Company Only) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income: | ||
Total Interest Income | $ 2,987 | $ 3,800 |
Expenses: | ||
Professional Fees | 197 | 158 |
Other Expense | 242 | 221 |
(Loss) Income Before Income Tax (Benefit) Expense | (165) | 193 |
Income Tax (Benefit) | (62) | 254 |
Net Loss | (103) | (61) |
Parent Company | ||
Income: | ||
Equity In Net Income (Loss) Of Subsidiary | 151 | (22) |
Other Income | 27 | |
Total Interest Income | 151 | 5 |
Expenses: | ||
Professional Fees | 172 | 85 |
Other Expense | 95 | 48 |
Total Expenses | 267 | 133 |
(Loss) Income Before Income Tax (Benefit) Expense | (116) | (128) |
Income Tax (Benefit) | (13) | |
Net Loss | $ (103) | $ (128) |
Condensed Financial Informati_5
Condensed Financial Information - CONDENSED STATEMENTS OF CASH FLOWS (Parent Company Only) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net Loss | $ (103) | $ (61) |
Adjustments to Reconcile Net Loss to Net Cash (Used in) Operating Activities: | ||
(Benefit) for Deferred Income Taxes | 254 | |
Net Cash (Used in) Operating Activities | (2,146) | (2,333) |
Cash Flows from Investing Activities: | ||
Net Cash (Used in) Investing Activities | 502 | 1,826 |
Cash Flows from Financing Activities: | ||
Proceeds from Stock Offering | 13,116 | |
Shares Repurchased | (2,349) | |
Net Cash (Used in) Provided by Financing Activities | (6,279) | 9,292 |
Net (Decrease) Increase in Cash and Cash Equivalents | (7,923) | 8,785 |
Cash and Cash Equivalents at Beginning of Period | 11,875 | 3,090 |
Cash and Cash Equivalents at End of Period | 3,952 | 11,875 |
Parent Company | ||
Cash Flows from Operating Activities: | ||
Net Loss | (103) | (128) |
Adjustments to Reconcile Net Loss to Net Cash (Used in) Operating Activities: | ||
(Increase) in Due from Subsidiary | (9) | (4) |
Non-cash Compensation for ESOP | 48 | 56 |
(Increase) Decrease in Equity in Net Income of Subsidiary | (151) | 22 |
Increase in Liabilities | 5 | 32 |
Net Cash (Used in) Operating Activities | (210) | (22) |
Cash Flows from Investing Activities: | ||
Investment in Subsidiary | (6,558) | |
Net Cash (Used in) Investing Activities | (6,558) | |
Cash Flows from Financing Activities: | ||
Proceeds from Stock Offering | 11,972 | |
Shares Repurchased | (2,351) | |
Net Cash (Used in) Provided by Financing Activities | (2,351) | 11,972 |
Net (Decrease) Increase in Cash and Cash Equivalents | (2,561) | 5,392 |
Cash and Cash Equivalents at Beginning of Period | 5,392 | |
Cash and Cash Equivalents at End of Period | $ 2,831 | $ 5,392 |