Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 25, 2020 | Jan. 17, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | FFBW, Inc. /MD/ | ||
Entity Central Index Key | 0001787384 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Amendment Flag | false | ||
Entity Public Float | $ 82.8 | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 7,704,875 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 4,101 | $ 1,746 |
Fed funds sold | 35,276 | 2,742 |
Cash and cash equivalents | 39,377 | 4,488 |
Available for sale securities, stated at fair value | 48,179 | 43,751 |
Loans held for sale | 200 | 679 |
Loans, net of allowance for loan and lease losses of $2,264 and $2,118, respectively | 189,291 | 198,694 |
Premises and equipment, net | 4,807 | 5,057 |
Foreclosed assets | 84 | 69 |
Other equity investments | 780 | 739 |
Accrued interest receivable | 725 | 768 |
Cash value of life insurance | 7,068 | 7,007 |
Other assets | 1,707 | 1,474 |
TOTAL ASSETS | 292,218 | 262,726 |
Liabilities and Equity | ||
Deposits | 217,252 | 183,205 |
Advance payments by borrowers for taxes and insurance | 46 | 55 |
FHLB advances | 11,500 | 17,750 |
Accrued interest payable | 51 | 70 |
Other liabilities | 1,499 | 1,284 |
Total liabilities | 230,348 | 202,364 |
Preferred stock ($0.01 par value, 1,000,000 authorized, no shares issued or outstanding as of December 31, 2019 and 2018, respectively) | ||
Common stock ($0.01 par value, 19,000,000 shares authorized, 6,706,742 and 6,696,742 shares issued, 6,566,478 and 6,696,742 shares outstanding as of December 31, 2019 and 2018, respectively) | 67 | 67 |
Additional paid in capital | 28,672 | 28,326 |
Unallocated common stock of Employee Stock Ownership Plan ("ESOP") (230,343 and 243,303 shares at December 31, 2019 and 2018, respectively) | (2,303) | (2,433) |
Retained earnings | 36,551 | 34,995 |
Accumulated other comprehensive income (loss), net of income taxes | 344 | (593) |
Less treasury stock, 140,264 and 0 shares at cost, at December 31, 2019 and 2018, respectively | (1,461) | |
Total equity | 61,870 | 60,362 |
TOTAL LIABILITIES AND EQUITY | $ 292,218 | $ 262,726 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for loan and lease losses | $ 2,264 | $ 2,118 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 19,000,000 | 19,000,000 |
Common stock, issued (in shares) | 6,706,742 | 6,696,742 |
Common stock, outstanding (in shares) | 6,566,478 | 6,696,742 |
Unallocated common stock of Employee Stock Ownership Plan, shares (in shares) | (230,343) | 243,303 |
Treasury stock, at cost (in shares) | 140,264 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income: | ||
Loans, including fees | $ 9,957 | $ 9,192 |
Securities | ||
Taxable | 1,144 | 1,290 |
Tax-exempt | 22 | 49 |
Other | 108 | 78 |
Total interest and dividend income | 11,231 | 10,609 |
Interest Expense: | ||
Interest-bearing deposits | 2,445 | 1,677 |
Borrowed funds | 343 | 432 |
Total interest expense | 2,788 | 2,109 |
Net interest income | 8,443 | 8,500 |
Provision for loan losses | 201 | 513 |
Net interest income after provision for loan losses | 8,242 | 7,987 |
Noninterest income: | ||
Service charges and other fees | 350 | 371 |
Net gain on sale of loans | 389 | 244 |
Net loss on sale of securities | (4) | (204) |
Increase in cash surrender value of insurance | 218 | 194 |
Other noninterest income | 95 | 95 |
Total noninterest income | 1,048 | 700 |
Noninterest expense: | ||
Salaries and employee benefits | 4,268 | 4,248 |
Occupancy and equipment | 1,043 | 1,002 |
Data processing | 598 | 546 |
Technology | 314 | 243 |
Foreclosed assets, net | 5 | 36 |
Professional fees | 385 | 438 |
Other noninterest expense | 619 | 798 |
Total noninterest expense | 7,232 | 7,311 |
Income before income taxes | 2,058 | 1,376 |
Provision for income taxes | 502 | 318 |
Net income | $ 1,556 | $ 1,058 |
Basic earnings per share (in dollars per share) | $ 0.24 | $ 0.17 |
Diluted earnings per share (in dollars per share) | $ 0.24 | $ 0.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 1,556 | $ 1,058 |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) arising during the period | 1,279 | (637) |
Reclassification adjustment for losses realized in net income | 4 | 204 |
Other comprehensive income (loss) before tax effect | 1,283 | (433) |
Tax effect of other comprehensive income (loss) items | (346) | 87 |
Other comprehensive income (loss), net of tax | 937 | (346) |
Comprehensive income | $ 2,493 | $ 712 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Unallocated Common Stock of ESOP [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 66 | $ 28,296 | $ (2,563) | $ 33,937 | $ (247) | $ 59,489 | |
Balance (in shares) at Dec. 31, 2017 | 6,612,500 | ||||||
Net income | 1,058 | 1,058 | |||||
ESOP shares committed to be released | 13 | 130 | 143 | ||||
Stock based compensation expense | $ 1 | 17 | 18 | ||||
Stock based compensation expense (in shares) | 84,242 | ||||||
Other comprehensive loss | (346) | (346) | |||||
Balance at Dec. 31, 2018 | $ 67 | 28,326 | (2,433) | 34,995 | (593) | 60,362 | |
Balance (in shares) at Dec. 31, 2018 | 6,696,742 | ||||||
Net income | 1,556 | 1,556 | |||||
ESOP shares committed to be released | 8 | 130 | 138 | ||||
Stock based compensation expense | 338 | 338 | |||||
Stock based compensation expense (in shares) | 10,000 | ||||||
Other comprehensive loss | 937 | 937 | |||||
Repurchase of common stock | $ (1,461) | (1,461) | |||||
Repurchase of common stock (in shares) | (140,264) | ||||||
Balance at Dec. 31, 2019 | $ 67 | $ 28,672 | $ (2,303) | $ 36,551 | $ 344 | $ (1,461) | $ 61,870 |
Balance (in shares) at Dec. 31, 2019 | 6,566,478 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||
ESOP shares committed to be released (in shares) | 12,960 | 12,960 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,556 | $ 1,058 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 201 | 513 |
Depreciation | 346 | 342 |
Net accretion of loan portfolio discount and deposit premium | (113) | (144) |
Net amortization on securities available for sale | 357 | 526 |
(Gain) loss on sales and impairments of foreclosed assets | (7) | 17 |
Loss on sale of available for sale securities | 4 | 204 |
Increase in cash surrender value of life insurance | (218) | (194) |
ESOP compensation | 138 | 143 |
Stock based compensation | 338 | 18 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | 43 | 14 |
Loans held for sale | 479 | (570) |
Other assets | (579) | 42 |
Accrued interest payable | (19) | 33 |
Other liabilities | 215 | 28 |
Net cash provided by operating activities | 2,741 | 2,030 |
Cash flows from investing activities: | ||
Proceeds from sales of available for sale securities | 4,836 | 12,874 |
Maturities, calls, paydowns on available for sale securities | 7,327 | 8,091 |
Purchases of available for sale securities | (15,669) | (7,867) |
Net (increase) decrease in loans | 9,231 | (27,967) |
Purchases of premises and equipment | (96) | (109) |
Proceeds from redemption of FHLB stock | 165 | |
Purchase of FHLB stock | (225) | |
Purchase of Bankers' Bank stock | (206) | |
Proceeds from redemption of life insurance | 161 | |
Purchase of life insurance | (4) | (255) |
Proceeds from sale of foreclosed assets | 76 | 792 |
Net cash provided by (used in) investing activities | 5,821 | (14,666) |
Cash flows from financing activities: | ||
Net increase in deposits | 34,047 | 292 |
Net (decrease) increase in escrow | (9) | 19 |
Repayments of FHLB advances | (7,750) | (2,000) |
Proceeds from FHLB advances | 1,500 | 7,000 |
Repurchase of common stock | (1,461) | |
Net cash provided by financing activities | 26,327 | 5,311 |
Net increase (decrease) in cash and cash equivalents | 34,889 | (7,325) |
Cash and cash equivalents at beginning | 4,488 | 11,813 |
Cash and cash equivalents at end | 39,377 | 4,488 |
Supplemental Cash Flow Disclosures: | ||
Cash paid for interest | 2,807 | 2,076 |
Cash paid for income taxes | 415 | 120 |
Loans transferred to foreclosed assets | $ 84 | 238 |
Financed sales of foreclosed assets | $ 21 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTE 1 - Summary of Significan Organization From October 2017 until January 2020, as discussed below, we operated in a two-tier mutual holding company structure. FFBW, Inc. (the “ Company ” ) was a federal corporation that was the publicly traded stock holding company of First Federal Bank of Wisconsin (the “ Bank ” ). At December 31, 2019, the Company had 6,566,478 shares of common stock outstanding, of which 2,929,603 shares, or 44.6%, were owned by the public, including 25,000 shares owned by FFBW Community Foundation, and the remaining 3,636,875 shares were held by FFBW, MHC (the “ MHC ” ), a federally chartered mutual holding company and former parent company of the Company. At December 31, 2019, the significant assets of the Company consisted of the capital stock of the Bank. The liabilities of the Company were insignificant. The Company was subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended. The Company was subject to regulation and examination by the Board of Governors of the Federal Reserve System ( “ the Federal Reserve Board ” ). First Federal Bank of Wisconsin is a community bank headquartered in Waukesha, Wisconsin that provides financial services to individuals and businesses from our offices in Waukesha, Brookfield, and the Bay View neighborhood of Milwaukee. FFBW, Inc. (“New FFBW”), a Maryland corporation that was organized in September 2019, is a savings and loan holding headquartered in Waukesha, Wisconsin. New FFBW was formed to be the successor to the Company upon completion of the second step mutual-to-stock conversion (the “Conversion”) of the MHC. Prior to completion of the Conversion, approximately 55.4% of the shares of common stock of the Company were owned by the MHC. In conjunction with the Conversion, the MHC and the Company merged into New FFBW. The Conversion was completed on January 16, 2020. In the Conversion, New FFBW sold 4,268,570 shares of common stock at $10.00 per share, for net proceeds of approximately $41.5 million, and issued 3,436,430 shares of common stock in exchange for the shares of common stock of Old FFBW owned by stockholders of Old FFBW, other than FFBW, MHC, as of the effective date of the conversion. As a result of the conversion, FFBW, MHC and Old FFBW have ceased to exist. The Conversion was conducted pursuant to the MHC’s Plan of Conversion. The Plan of Conversion provided for the establishment, upon the completion of the Conversion, of special “liquidation accounts” for the benefit of certain depositors of the Bank in an amount equal to the MHC’s ownership interest in the stockholders’ equity of the Company as of the date of the latest balance sheet contained in the prospectus plus the MHC’s net assets (excluding its ownership of the Company). Following the completion of the Conversion, the Company and the Bank will not be permitted to pay dividends on their capital stock if the shareholders' equity of New FFBW, or the shareholder's equity of the Bank, would be reduced below the amount of the liquidation accounts. The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder's interest in the liquidation accounts. Direct costs of the conversion and public offering will be deferred and reduce the proceeds from the shares sold in the public offering. Costs of $603 have been incurred related to the conversion as of December 31, 2019. Jumpstart Our Business Startups Act The Jumpstart Our Business Startups Act (the JOBS Act), which was signed into law on April 5, 2012, has made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as an “emerging growth company” and believes that it will continue to qualify as an “emerging growth company” until five years from the completion of the stock offering. As an “emerging growth company,” the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the fair values of securities, fair value of financial instruments, the valuation of other real estate owned and the valuation of deferred income tax assets. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company's revenue-generating transactions are not subject to ASC 606, including revenue all interest and dividend income generated from financial instruments. Certain noninterest income items, including loan servicing income, gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated to not fall with the scope of ASC 606. Elements of noninterest income that is within the scope of ASC 606, are as follows: Service charges and other fees - The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Company or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Company's monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the new revenue standards. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition. Interchange fees - Customers use a Bank-issued debit card to purchase goods and services, and the Company earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. These fees are included in “service charges and other fees” on the Consolidated Statements of Operations. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and balances due from banks, non-maturity deposits in the Federal Home Loan Bank of Chicago (FHLB), and fed funds sold. The Company has not experienced any losses in such accounts. Available for Sale Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital requirements, and other similar factors. Securities classified as available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient enough to allow for any anticipated recovery in fair value. Loans Acquired in a Transfer The Company acquires loans (including debt securities) individually and in groups or portfolios. These loans are initially measured at fair value with no allowance for loan losses. The Company’s allowance for loan losses on all acquired loans reflect only those losses incurred subsequent to acquisition. Certain acquired loans may have experienced deterioration of credit quality between origination and the Company’s acquisition of the loans. At acquisition, the Company reviews each loan to determine whether there is evidence of deterioration of credit quality since origination and if it is probable that the Company will be unable to collect all amounts due according to the loan’s contractual terms. If both conditions exist, the Company determines whether each such loan is to be accounted for individually or whether such loans will be assembled into pools of loans based on common risk characteristics (for example, credit score, loan type, and date of origination). The Company considers expected prepayments and estimates the amount and timing of undiscounted principal, interest, and other cash flows expected at acquisition for each loan and aggregated pool of loans. The excess of the loan’s or pool’s scheduled contractual principal and interest payments over all cash flows expected at acquisition is calculated as the nonaccretable difference. The excess of cash flows expected to be collected over the fair value of each loan or pool (accretable yield) is accreted into interest income over the remaining life of the loan or pool. At each reporting date, the Company continues to estimate cash flows expected to be collected for each loan or pool. If expected cash flows have decreased from the acquisition date estimate, the Company recognizes an allowance for loan losses. If expected cash flows have increased from the acquisition date estimate, the Company increases the amount of accretable yield to be recognized as interest income over the remaining life of the loan or pool. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released by the Company. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan sold. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for deferred loan fees and costs, charge-offs, and an allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. When loans are placed on nonaccrual status or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable as of the balance sheet date. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. In determining the adequacy of the allowance balance, the Company makes evaluations of the loan portfolio and related off-balance sheet commitments, considers current economic conditions and historical loss experience, and reviews specific problem loans and other factors. When establishing the allowance for loan losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and their relevant risk characteristics are as follows: Commercial development: These loans are secured by vacant land and/or property that are in the process of improvement. Repayment of these loans can be dependent on the sale of the property to third parties or the successful completion of the improvements by the builder for the end user. Construction loans include not only construction of new structures, but loans originated to finance additions to or alterations of existing structures. Until a permanent loan originates, or payoff occurs, all commercial construction loans secured by real estate are reported in this loan pool. Development loans also have the risk that improvements will not be completed on time, or in accordance with specifications and projected costs. Commercial real estate: These loans are primarily secured by office and industrial buildings, warehouses, small retail shopping facilities, and various special purpose properties, including restaurants. These loans are subject to underwriting standards and processes similar to commercial and industrial loans. Loans to closely held businesses are generally guaranteed in full by the owners of the business. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to the general economic factors or conditions specific to the real estate market, such as geographic location and/or purpose type. Commercial and industrial: Commercial and industrial loans are extended primarily to small and middle market customers. Such credits typically comprise working capital loans, asset acquisition loans, and loans for other business purposes. Loans to closely held businesses are generally guaranteed in full by the owners of the business. Commercial and industrial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for commercial and industrial loans. One-to-four family owner-occupied: These loans are generally to individuals and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations, the underlying collateral, and the loan to collateral value. Also included in this category are junior liens on one-to-four family residential properties. Underwriting standards for one-to-four family owner-occupied loans are heavily influenced by statutory requirements, which include, but are not limited to, loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. One-to-four family investor-owned: These loans may be to individuals or businesses and are subject to underwriting standards and processes similar to commercial and industrial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property(ies). The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to the general economic factors or conditions specific to the real estate market, such as geographic location and/or purpose type. Multifamily real estate: These loans include loans to finance non-farm properties with five or more units in structures primarily to accommodate households. Such credits are typically originated to finance the acquisition or refinancing of an apartment building. These loans are subject to underwriting standards and processes similar to commercial and industrial loans. Loans to closely held businesses are generally guaranteed in full by the owners of the business. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the subject multifamily property, with assumptions made for vacancy rates. Cash flows of the borrowers rely on the receipt of rental income from the tenants of the property who are themselves subject to fluctuations in national and local economic conditions and unemployment trends. Consumer: These loans may take the form of installment loans, demand loans, or single payment loans, and are extended to individuals for household, family, and other personal expenditures. These loans generally include direct consumer automobile loans and credit card loans. These loans are generally smaller in size and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations. Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the loan portfolio, composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. A loan is impaired when, based on current information, it is probable that the Company will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability based on information available to them at the time of their examination. Troubled Debt Restructurings Loans are accounted for as troubled debt restructurings when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. Troubled debt restructurings are considered impaired loans. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Provisions for depreciation are computed on straight-line and accelerated methods over the estimated useful lives of the assets. Other Equity Investments Other Equity Investments consist of Federal Home Loan Bank (“FHLB”) stock and Bankers’ Bank stock. The Company's investment in the FHLB stock is carried at cost, which approximates fair value. The Company is required to hold the stock as a member of the FHLB, and transfer of the stock is substantially restricted. The stock is evaluated for impairment on an annual basis. The Company is required to adjust its reported value of Bankers’ Bank stock, which is considered an equity security without a readily determinable market value, if a comparable transaction is observed. Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to the allowances for loan losses, deferred compensation, depreciation, FHLB stock dividends and non-accrual interest. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s policy is to recognize interest and penalties related to income tax issues as components of income tax expense. During the periods shown, the Company did not recognize any interest or penalties related to income tax expense in its statements of operations. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Advertising Advertising costs are expensed as incurred. Other Comprehensive Income (Loss) Other comprehensive income (loss) is shown on the statements of comprehensive income. The Company’s accumulated other comprehensive income (loss) is composed of the unrealized gains (losses) on securities available for sale, net of tax and is shown on the statements of changes in equity. Reclassification adjustments out of other comprehensive income (loss) for losses realized on sales of securities available for sale comprise the entire balance of “net loss on sale of securities” on the statements of operations. As part of this reclassification, income tax credit of approximately $1 was recognized for the year ended December 31, 2019 and income tax expense of approximately $56 was recognized for the year ended December 31, 2018 in “provision for income taxes” on the statements of operations. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, unfunded commitments under lines of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. Life Insurance The Company has purchased life insurance policies on certain key executives. Life insurance is measured at the amount that could be realized under the insurance contract as of the balance sheet date, which is generally the cash surrender value of the policy. Subsequent Events Subsequent events have been evaluated through March 25, 2020, which is the date the financial statements are available to be issued. The outbreak of Coronavirus Disease 2019 (“COVID-19”) could adversely impact a broad range of industries in which the Company’s customers operate and impair 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 will likely cause 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 Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID-19 escalates or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. Reclassifications Certain reclassifications have been made to the 2018 consolidated financial statements to conform to the 2019 classifications. Recent Accounting Pronouncements 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. The Company recently adopted the following Accounting Standards Updates (ASU) issued by the Financial Accounting Standards Board (FASB). ASU No. 2014-09, "Revenue from Contracts with Customers." The objective of this new standard is to provide a common revenue standard for all entities that enter into contracts with customers to transfer goods, services, or nonfinancial assets. The Company adopted this new accounting standard for the effective January 1, 2019, using the modified retrospective approach. The Company did not identify any changes in the timing of revenue recognition when considering the amended accounting guidance, however, the Company has included additional disclosures as required by the guidance. ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)” ASU No. 2016-01 is a wide-ranging standard with several elements that will impact most financial institutions. The standard introduces new guidance that applies to most equity investments. Under the standard, equity securities can no longer be classified as available-for-sale securities. Instead, market value fluctuations on equity securities will have to be recognized directly through net income. An entity may elect to value equity investments without a readily determinable fair value at its cost minus impairment (if any) plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer, with any changes recognized through net income. The standard also eliminates certain disclosure requirements related to financial instruments. Non-public business entities will no longer have to disclose the fair value of financial instruments measured at amortized cost in the financial statements. Public business entities (“PBEs”) will still need to make this disclosure but will no longer be required to disclose the methods and significant assumptions used to determine the fair value of financial instruments measured at amortized cost. ASU 2016-01 is effective for non-PBEs for years beginning after December 15, 2018, and was effective for PBEs with fiscal years beginning after December 15, 2017. ASU 2016-01 will require the Company to adjust its reported value of Bankers’ Bank stock, which is considered an equity security without a readily determinable market value, if a comparable transaction is observed. The following ASUs have been issued by the FASB and may impact the Company's financial statements in future reporting periods: ASU No. 2016-13, “Credit Losses (Topic 326).” ASU No. 2019-04, “Codification Improvements to Topic 326.” ASU No. 2019-05, “Financial Instruments-Credit Losses.” ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on his |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Earnings Per Share | NOTE 2 – Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for weighted average unallocated ESOP shares, during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company’s common stock. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Antidilutive options are disregarded in earnings per share calculations. The following table presents the earnings per share calculations for the years ended December 31: 2019 2018 Net income $ 1,556 $ 1,058 Basic potential common shares Weighted average shares outstanding 6,620,922 6,617,507 Weighted average unallocated Employee Stock Ownership Plan Shares (236,823) (249,783) Basic weighted average shares outstanding 6,384,099 6,367,724 Dilutive potential common shares 222,089 — Dilutive weighted average shares outstanding 6,606,188 6,367,724 Basic earnings per share $ 0.24 $ 0.17 Diluted earnings per share $ 0.24 $ 0.17 |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Due from Banks | |
Cash and Due from Banks | NOTE 3 - Cash and Due from Banks Under Regulation D, savings institutions are generally required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based upon a percentage of deposits. The Company was required to maintain reserve balances on deposit with the Federal Reserve Bank of $0 as of both December 31, 2019 and 2018. In the normal course of business, the Company maintains cash and due from bank balances with correspondent banks. Balances in these accounts may exceed the Federal Deposit Insurance Corporation’s insured limit of $250. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal. |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Dec. 31, 2019 | |
Available for Sale Securities | |
Available for Sale Securities | NOTE 4 – Available for Sale Securities Amortized costs and fair values of available for sale securities are summarized as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2019 Obligations of the US government and US government sponsored agencies $ 944 $ 14 $ — $ 958 Obligations of states and political subdivisions 8,590 36 (21) 8,605 Mortgage-backed securities 35,095 486 (99) 35,482 Certificates of deposit 1,000 17 — 1,017 Corporate debt securities 2,080 37 — 2,117 Total available for sale securities $ 47,709 $ 590 $ (120) $ 48,179 December 31, 2018 Obligations of the US government and US government sponsored agencies $ 1,299 $ 8 $ — $ 1,307 Obligations of states and political subdivisions 8,381 17 (103) 8,295 Mortgage-backed securities 29,164 24 (652) 28,536 Certificates of deposit 1,500 1 (55) 1,446 Corporate debt securities 4,220 2 (55) 4,167 Total available for sale securities $ 44,564 $ 52 $ (865) $ 43,751 Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in estimated fair value. The following table presents the portion of the Company’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2019 Obligations of states and political subdivisions $ 2,569 $ (17) $ 1,059 $ (4) $ 3,628 $ (21) Mortgage-backed securities 7,604 (57) 4,372 (42) 11,976 (99) Total $ 10,173 $ (74) $ 5,431 $ (46) $ 15,604 $ (120) December 31, 2018 Obligations of the US government and US government sponsored agencies $ 175 $ — $ 113 $ — $ 288 $ — Obligations of states and political subdivisions — — 6,142 (103) 6,142 (103) Mortgage-backed securities 1,171 (24) 24,725 (628) 25,896 (652) Certificates of deposit — — 1,195 (55) 1,195 (55) Corporate debt securities 384 (2) 3,128 (53) 3,512 (55) Total $ 1,730 $ (26) $ 35,303 $ (839) $ 37,033 $ (865) At December 31, 2019, the investment portfolio included 14 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 18 securities available for sale, which had been in an unrealized loss position for less than twelve months. At December 31, 2018, the investment portfolio included 79 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 6 securities available for sale, which had been in an unrealized loss position for less than twelve months. Because these securities have a fixed interest rate, their fair value is sensitive to movements in market interest rates. These unrealized losses are considered temporary because the Company does not currently have the intent to sell the securities before recovery of the losses; therefore we expect to collect all contractually due amounts from these securities. Accordingly, these investments were reduced to their fair values through accumulated other comprehensive income, not through earnings. We regularly assess our securities portfolio for OTTI. These assessments are based on the nature of the securities, the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent related to the individual securities, and the likelihood that we will have to sell securities prior to expected recovery. We did not have any impairment losses recognized in earnings for the years ended December 31, 2019 or December 31, 2018. The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below: December 31, 2019 Amortized Cost Fair Value Due in one year or less $ 1,297 $ 1,306 Due after one year through 5 years 2,843 2,890 Due after 5 years through 10 years 4,395 4,418 Due after 10 years 4,079 4,083 Subtotal $ 12,614 $ 12,697 Mortgage-backed securities 35,095 35,482 Total $ 47,709 $ 48,179 The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses: Years ended December 31, 2019 2018 Proceeds from sale of securities $ 4,836 $ 12,874 Gross gains 21 35 Gross losses (25) (239) Available for sale securities with a carrying value of $999 and $960 were pledged at December 31, 2019 and 2018, respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Loans | |
Loans | NOTE 5 - Loans Major classifications of loans are as follows: December 31, December 31, 2019 2018 Commercial Development $ 18,222 $ 7,801 Real estate 68,621 69,425 Commercial and industrial 13,681 13,142 Residential real estate and consumer One-to-four family owner-occupied 29,380 41,018 One-to-four family investor-owned 28,077 32,312 Multifamily 29,531 34,467 Consumer 4,230 2,733 Subtotal $ 191,742 $ 200,898 Deferred loan fees (187) (86) Allowance for loan losses (2,264) (2,118) Net loans $ 189,291 $ 198,694 Deposit accounts in an overdraft position and reclassified as loans approximated $6 and $7 at December 31, 2019 and 2018, respectively. A summary of the activity in the allowance for loan losses by portfolio segment is as follows: Residential real estate Year Ended Commercial and consumer Total December 31, 2019 Beginning balance $ 940 $ 1,178 $ 2,118 Provision for loan losses 311 (110) 201 Loans charged off — (58) (58) Recoveries of loans previously charged off — 3 3 Total ending allowance balance $ 1,251 $ 1,013 $ 2,264 December 31, 2018 Beginning balance $ 660 $ 1,140 $ 1,800 Provision for loan losses 304 209 513 Loans charged off (24) (172) (196) Recoveries of loans previously charged off — 1 1 Total ending allowance balance $ 940 $ 1,178 $ 2,118 Information about how loans were evaluated for impairment and the related allowance for loan losses follows: Residential real estate and December 31, 2019 Commercial consumer Total Loans: Individually evaluated for impairment $ 798 $ 1,457 $ 2,255 Collectively evaluated for impairment 99,726 89,761 189,487 Total loans $ 100,524 $ 91,218 $ 191,742 Allowance for loan losses: Individually evaluated for impairment $ 158 $ 77 $ 235 Collectively evaluated for impairment 1,093 936 2,029 Total allowance for loan losses $ 1,251 $ 1,013 $ 2,264 Residential real estate and December 31, 2018 Commercial consumer Total Loans: Individually evaluated for impairment $ 87 $ 1,469 $ 1,556 Collectively evaluated for impairment 90,281 109,061 199,342 Total loans $ 90,368 $ 110,530 $ 200,898 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 940 1,178 2,118 Total allowance for loan losses $ 940 $ 1,178 $ 2,118 Information regarding impaired loans follows: Principal Recorded Related Average Interest As of December 31, 2019 Balance Investment Allowance Investment Recognized Loans with related allowance for loan losses: Commercial Commercial and industrial $ 729 $ 729 $ 158 $ 740 $ 19 Residential real estate and consumer One-to-four family investor-owned 415 403 77 412 — Total loans with related allowance for loan losses 1,144 1,132 235 1,152 19 Loans with no related allowance for loan losses: Commercial Commercial and industrial 73 69 — 77 5 Residential real estate and consumer One-to-four family owner-occupied 795 744 — 754 5 One-to-four family investor-owned 243 221 — 231 — Consumer 114 89 — 98 — Total loans with no related allowance for loan losses 1,225 1,123 — 1,160 10 Total impaired loans $ 2,369 $ 2,255 $ 235 $ 2,312 $ 29 Principal Recorded Related Average Interest As of December 31, 2018 Balance Investment Allowance Investment Recognized Loans with no related allowance for loan losses: Commercial Commercial and industrial $ 89 $ 87 $ — $ 93 $ 5 Residential real estate and consumer One-to-four family owner-occupied 1,142 1,120 — 1,137 26 One-to-four family investor-owned 248 241 — 246 — Consumer 114 108 — 114 — Total impaired loans $ 1,593 $ 1,556 $ — $ 1,590 $ 31 There were no additional funds committed to impaired loans as of December 31, 2019 and 2018. The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for loan losses. The credit quality indicators monitored differ depending on the class of loan. Commercial loans and one-to-four family investor-owned and multifamily loans are generally evaluated using the following internally prepared ratings: “Pass” ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable. “Special mention” ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable. “Substandard” ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable. “Doubtful” ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely. Information regarding the credit quality indicators most closely monitored for commercial loans by class follows: Special Pass Mention Substandard Doubtful Totals December 31, 2019 Development $ 18,222 $ — $ — $ — $ 18,222 Real estate 68,036 585 — — 68,621 Commercial and industrial 10,888 2,779 14 — 13,681 One-to-four family investor-owned 27,453 — 624 — 28,077 Multifamily 29,531 — — — 29,531 Totals $ 154,130 $ 3,364 $ 638 $ — $ 158,132 December 31, 2018 Development $ 7,801 $ — $ — $ — $ 7,801 Real estate 69,425 — — — 69,425 Commercial and industrial 13,122 — 20 — 13,142 One-to-four family investor-owned 30,558 1,353 401 — 32,312 Multifamily 34,467 — — — 34,467 Totals $ 155,373 $ 1,353 $ 421 $ — $ 157,147 Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan. Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows: Performing Non-performing Totals December 31, 2019 One-to-four family owner-occupied $ 28,636 $ 744 $ 29,380 Consumer 4,141 89 4,230 $ 32,777 $ 833 $ 33,610 December 31, 2018 One-to-four family owner-occupied $ 39,919 $ 1,099 $ 41,018 Consumer 2,625 108 2,733 $ 42,544 $ 1,207 $ 43,751 Loan aging information follows: Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2019 Commercial Development $ 18,222 $ — $ — $ 18,222 $ — Real estate 68,621 — — 68,621 — Commercial and industrial 13,681 — — 13,681 14 Residential real estate and consumer One-to-four family owner-occupied 29,034 — 346 29,380 346 One-to-four family investor-owned 28,077 — — 28,077 624 Multifamily 29,531 — — 29,531 — Consumer 4,230 — — 4,230 86 Total $ 191,396 $ — $ 346 $ 191,742 $ 1,070 Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2018 Commercial Development $ 7,801 $ — $ — $ 7,801 $ — Real estate 69,425 — — 69,425 — Commercial and industrial 13,076 66 — 13,142 20 Residential real estate and consumer One-to-four family owner-occupied 41,013 5 — 41,018 365 One-to-four family investor-owned 32,069 243 — 32,312 241 Multifamily 34,467 — — 34,467 — Consumer 2,733 — — 2,733 94 Total $ 200,584 $ 314 $ — $ 200,898 $ 720 There are no loans 90 or more days past due and accruing interest as of December 31, 2019 or 2018. Management regularly monitors impaired loan relationships. In the event facts and circumstances change, an additional provision for loan losses may be necessary. Nonaccrual loans are as follows: As of December 31 2019 2018 Nonaccrual loans, other than troubled debt restructurings $ 416 $ 20 Nonaccrual loans, troubled debt restructurings 654 700 Total nonaccrual loans 1,070 720 Restructured loans, accruing $ 1,185 $ 501 When, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession to the borrower that the Company would not otherwise consider, the modified loan is classified as a troubled debt-restructuring. Loan modifications may consist of forgiveness of interest and/or principal, a reduction of the interest rate, allowing interest-only payments for a period of time, and/or extending amortization terms. The following presents information regarding new modifications of loans classified as troubled debt restructurings during the years ended December 31, 2019 and 2018. All troubled debt restructurings are classified as impaired loans. The recorded investment presented in the following tables does not include specific reserves for loan losses recognized for these loans, which totaled $158 at December 31, 2019 and December 31, 2018. Post- Number of Pre-Modification Modification Modifications Investment Investment December 31, 2019 Commercial Commercial and industrial 2 $ 729 $ 729 Residential real estate and consumer: One-to-four family owner-occupied 3 285 285 Total loan modifications 5 $ 1,014 $ 1,014 December 31, 2018 Residential real estate and consumer: One-to-four family owner-occupied 2 $ 302 $ 302 One-to-four family investor-owned 1 250 250 Consumer 1 20 20 Total loan modifications 4 $ 572 $ 572 No troubled debt restructurings defaulted within 12 months of their modification date during the year ended December 31, 2019 and 2018. The Company considers a troubled debt restructuring in default if it becomes past due more than 90 days. The Company continues to evaluate purchased loans for impairment. The purchased loans were considered impaired at the acquisition date if there was evidence of deterioration since origination and if it was probable that not all contractually required principal and interest payments would be collected under the loans. The following table reflects the carrying value of all purchased loans: Contractually Required Payments Receivable Carrying Value Non-Credit of As of December 31, 2019 Credit Impaired Impaired Purchased Loans Commercial Real estate $ — $ — $ — Residential real estate and consumer One-to-four family owner-occupied — 4,580 4,548 One-to-four family investor-owned — 6,580 6,535 Multifamily — — — Consumer — — — Totals $ — $ 11,160 $ 11,083 Contractually Required Payments Receivable Carrying Value Non-Credit of As of December 31, 2018 Credit Impaired Impaired Purchased Loans Commercial Real estate $ — $ 7,687 $ 7,673 Residential real estate and consumer One-to-four family owner-occupied — 5,075 5,014 One-to-four family investor-owned — 9,269 9,164 Multifamily — 3,953 3,943 Consumer — — — Totals $ — $ 25,984 $ 25,794 As of December 31, 2019, the estimated contractually-required payments receivable on purchased credit impaired and purchased non-credit impaired loans was $0 and $11,160, respectively. The cash flows expected to be collected related to principal as of December 31, 2019 on all purchased loans is $11,083. As a result, there was approximately $77 of remaining discount on the purchased loans. These amounts are based upon the estimate of the underlying collateral or discounted cash flows as of December 31, 2019. Any excess of cash flows expected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan as the purchased loans pay down, mature, renew or pay off. As of December 31, 2018, the estimated contractually-required payments receivable on purchased credit impaired and purchased non-credit impaired loans was $0 and $25,984, respectively. The cash flows expected to be collected related to principal as of December 31, 2018 on all purchased loans is $25,794. As a result, there was approximately $190 of remaining discount on the purchased loans. These amounts are based upon the estimate of the underlying collateral or discounted cash flows as of December 31, 2018. Any excess of cash flows expected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan as the purchased loans pay down, mature, renew or pay off. The change in carrying amount of accretable yield for purchased loans was as follows: For years ended December 31, 2019 2018 Beginning Balance $ 190 $ 334 Additions — — Accretion (113) (144) Ending Balance $ 77 $ 190 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment | |
Premises and Equipment | NOTE 6 - Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and are summarized as follows: December 31, 2019 2018 Land $ 479 $ 479 Buildings 4,929 4,929 Leasehold improvements 162 153 Furniture and equipment 1,383 1,332 Totals 6,953 6,893 Less: Accumulated depreciation 2,146 1,836 Premises and equipment, net $ 4,807 $ 5,057 Depreciation expense was $346 and $342 for the years ended December 31, 2019 and 2018, respectively. During 2017, the Company sold and leased back two of its office buildings. In conjunction with the sales, the Company entered into ten-year leases, with options to renew for two additional five-year terms. Rent expense for all operating leases was $167 and $165 in 2019 and 2018, respectively. Rent commitments, before considering renewal options that are present, are as follows as of December 31, 2019: 2020 $ 153 2021 144 2022 146 2023 148 2024 150 Thereafter 437 Total $ 1,178 The Company also entered into a lease with a tenant for a portion of the Brookfield branch, commencing June 1, 2018 through May 31, 2024. As of December 31, 2019, minimum future rents receivable are as follows: 2020 $ 99 2021 101 2022 103 2023 106 2024 44 Total $ 453 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits | |
Deposits | NOTE 7 - Deposits The composition of deposits are as follows: December 31, December 31, 2019 2018 Non-interest bearing checking $ 20,733 $ 22,763 Interest bearing checking 6,941 5,424 Money market 46,673 41,910 Statement savings accounts 12,359 13,773 Health savings accounts 10,670 11,197 Deposits held in escrow for stock subscriptions 52,648 — Certificates of deposit 67,228 88,138 Total $ 217,252 $ 183,205 Certificates of deposit that meet or exceed the FDIC insurance limit of $250 totaled $21,569 and $30,590 at December 31, 2019 and 2018, respectively. The scheduled maturities of certificates of deposit are as follows as of December 31, 2019: 2020 $ 44,462 2021 17,354 2022 2,374 2023 2,046 2024 992 Total $ 67,228 |
FHLB Advances
FHLB Advances | 12 Months Ended |
Dec. 31, 2019 | |
FHLB Advances | |
FHLB Advances | NOTE 8 – FHLB Advances FHLB advances consist of the following as of December 31: 2019 2018 Rates Amount Rates Amount Fixed rate, fixed term advances 1.62% - 2.70% $ 7,500 1.42% - 2.70% $ 11,750 Fixed term advances with floating spread 1.69% - 2.09% 4,000 1.54% - 2.05% 6,000 $ 11,500 $ 17,750 The following is a summary of scheduled maturities of fixed term FHLB advances as of December 31, 2019: Fixed Rate Advances Adjustable Rate Advances Weighted Weighted Total Average Rate Amount Average Rate Amount Amount 2020 2.34 % $ 6,000 1.69 % $ 2,000 $ 8,000 2021 — % — 2.09 % 2,000 2,000 2022 1.71 % 1,500 — % — 1,500 Total 2.21 % $ 7,500 1.89 % $ 4,000 $ 11,500 Actual maturities may differ from the scheduled principal maturities due to call options on the various advances. The Company has a master contract agreement with the FHLB that provides for a borrowing up to the lesser of a determined multiple of FHLB stock owned or a determined percentage of the book value of the Company’s qualifying one-to-four family, multifamily, and commercial real estate loans. The Company pledged approximately $147,039 and $158,923 of one-to-four family, multifamily, and commercial real estate loans to secure FHLB advances at December 31, 2019 and 2018, respectively. FHLB provides both fixed and floating rate advances. Floating rates are tied to short-term market rates of interest, such as LIBOR, Federal funds or Treasury Bill rates. Fixed rate advances are priced in reference to market rates of interest at the time of the advance, namely the rates that FHLB pays to borrowers at various maturities. FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. FHLB advances are also secured by $574 and $739 of FHLB stock owned by the Company at December 31, 2019 and 2018, respectively. At December 31, 2019, the Company’s available and unused portion of this borrowing agreement based on the amount of FHLB stock was $3,194. In addition, the Company has a $7,000 federal funds line of credit through Bankers’ Bank of Wisconsin, which was not drawn on as of December 31, 2019. The Company also has the authority to borrow through the Federal Reserve’s Discount Window. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2019 | |
401(K) Plan | |
401(K) Plan | NOTE 9 – 401(k) Plan The Company sponsors a 401(k) profit sharing plan that covers substantially all employees. To be eligible to participate, an employee must have completed 1,000 hours of service and be 21 years of age or older. The Company matches 100% of employee contributions up to 4% of their annual compensation. The Company may also make nonelective contributions to the plan at the discretion of the Board of Directors. Expense charged to operations for this plan was $170 and $154 for the years ended December 31, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | NOTE 10 - Income Taxes The provision for income taxes included in the accompanying financial statements consists of the following components: Years ended December 31, 2019 2018 Current Taxes (Benefit) Federal $ 389 $ 114 State 155 83 Total Current Taxes 544 197 Deferred Income Taxes (Benefit) Federal (38) 107 State (4) 14 Total Deferred Income Taxes (42) 121 Total Provision for Income Taxes $ 502 $ 318 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax asset in the accompanying balance sheet includes the following amounts of deferred tax assets and liabilities: As of December 31, 2019 2018 Deferred Tax Assets Allowance for loan losses $ 617 $ 577 Deferred compensation 121 121 Non-accrual interest 5 18 Purchase accounting 7 18 Equity compensation 23 4 Unrealized loss on available for sale securities — 219 Charitable contribution carryforward 132 191 Other 46 10 Deferred Tax Assets $ 951 $ 1,158 Deferred Tax Liabilities Depreciation and amortization (50) (73) FHLB stock (23) (30) Unrealized gain on available for sale securities (127) — Deferred Tax Liabilities $ (200) $ (103) Net Deferred Tax Asset $ 751 $ 1,055 A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes follows: Years ended December 31, 2019 2018 % of Pretax % of Pretax Amount Income Amount Income Reconciliation of statutory to effective rates Federal income taxes at statutory rate $ 432 21.0 % $ 289 21.0 % Adjustments for Tax exempt interest on municipal obligations (5) (0.2) % (10) (0.7) % State income taxes, net of federal income tax benefit 122 5.9 % 75 5.5 % Increase in CSV of life insurance (46) (2.2) % (41) (3.0) % Other (1) (0.1) % 5 0.3 % Provision for income taxes $ 502 24.4 % $ 318 23.1 % With few exceptions, the Company is no longer subject to federal or state examinations by taxing authorities for years before 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 11 - Commitments and Contingencies In the normal course of business, the Company may be involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the Company’s financial statements. No legal proceedings existed at December 31, 2019. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. Since some of the commitments are expected to expire without being drawn upon, and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements of the Company. The contract amounts of credit-related financial instruments at December 31, 2019 and 2018 are summarized below: Notional Amount 2019 2018 Unused lines of credit Fixed 14,902 7,467 Variable 3,770 11,307 Undisbursed portion of loan proceeds 2,194 5,890 Standby letters of credit, variable 993 1,277 Unused commitments under lines of credit are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date. The undisbursed portion of loan proceeds represents undrawn amounts under construction loans. These loans are generally secured by real estate and generally have a specific maturity date. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit issued have expiration dates within one year. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments. Standby letters of credit are not reflected in the financial statements, since recording the fair value of these guarantees would not have a significant impact on the financial statements. The Company sells loans to investors and does not retain servicing responsibilities. Upon sale, the risk of credit loss is passed to the investor, unless the loan is sold with recourse. For loans sold without recourse, the Company does not retain the risk of loss should a loan, previously sold, go into default, unless it is determined that such loan was not within the agreed-upon underwriting guidelines due to negligence on the part of the Company or fraud on the part of the borrower. Such risk retention is standard within the mortgage banking industry. The Company’s exposure relating to the fair value of the representations and warranties and other recourse obligations is not material. The Company is contingently liable in the amount of $7,679 relating to loans sold with recourse at December 31, 2019 and $5,370 as of December 31, 2018. All recourse provisions expire within four months from when the loan is sold. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Notes To Financial Statements [Abstract] | |
Concentration of Credit Risk | NOTE 12 - Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents, investments, and loans. The Company’s cash and cash equivalents are held in demand accounts with various institutions. The Company’s investments are held in a variety of interest bearing investments including obligations from the U.S. government and government sponsored agencies and certificates of deposit. Such deposits are generally in excess of insured limits. The Company has not experienced any historical losses on its deposits of cash and cash equivalents. Practically all of the Company’s loans and commitments have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the ability of their debtors to honor their contracts is dependent on the economic conditions of the counties surrounding the Company. The concentration of credit by type of loan is set forth in Note 5. |
Related-party Transactions
Related-party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related-party Transactions | |
Related-party Transactions | NOTE 13 – Related-Party Transactions A summary of loans to directors, executive officers, and their affiliates follows: Years ended December 31, 2019 2018 Beginning balance $ 6,825 $ 6,697 Adjustments for changes in directors and executive officers — — New loans 1,641 2,121 Less: Participations sold (4,779) (310) Repayments (72) (1,683) Ending balance $ 3,615 $ 6,825 Deposits from directors, executive officers, and their affiliates totaled $1,546 and $3,467 at December 31, 2019 and 2018, respectively. The Company utilizes the services of a law firm in which one of the Company’s directors is a partner. Fees paid to the firm were $6 and $11 during the years ended 2019 and 2018, respectively. The Company also has an operating lease with the law firm for office space through 2020. Rent paid in 2019 and 2018 pertaining to this lease was $28 and $28, respectively. |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Foreclosed Assets Disclosure [Abstract] | |
Foreclosed Assets | NOTE 14 – Foreclosed Assets Foreclosed assets consists of one owner-occupied one-to-four family property as of December 31, 2019 totaling $84 and one foreclosed owner-occupied one-to-four family property totaling $69 at December 31, 2018. Residential real estate loans that are in the process of foreclosure totaled $347 and $0 at December 31, 2019 and 2018, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value | |
Fair Value | NOTE 15 – Fair Value Accounting standards describe three levels of inputs that may be used to measure fair value (the fair value hierarchy). The level of an asset or liability within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement of that asset or liability. Following is a brief description of each level of the fair value hierarchy: Level 1 - Fair value measurement is based on quoted prices for identical assets or liabilities in active markets. Level 2 - Fair value measurement is based on: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; or (3) valuation models and methodologies for which all significant assumptions are or can be corroborated by observable market data. Level 3 - Fair value measurement is based on valuation models and methodologies that incorporate at least one significant assumption that cannot be corroborated by observable market data. Level 3 measurements reflect the Company’s estimates about assumptions market participants would use in measuring fair value of the asset or liability. Some assets and liabilities, such as securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as impaired loans, may be measured at fair value on a nonrecurring basis. Following is a description of the Company’s valuation methodology and significant inputs used for each asset and liability measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy. Available for sale securities - Available for sale securities may be classified as Level 1 or Level 2 measurements within the fair value hierarchy. Level 1 securities include equity securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, corporate debt securities, and mortgage related securities. The fair value measurement of a Level 2 security is obtained from an independent pricing service and is based on recent sales of similar securities and other observable market data. Loans - Loans are not measured at fair value on a recurring basis. However, loans considered to be impaired may be measured at fair value on a nonrecurring basis. The fair value measurement of an impaired loan that is collateral dependent is based on the fair value of the underlying collateral. Independent appraisals are obtained that utilize one or more valuation methodologies - typically they will incorporate a comparable sales approach and an income approach. Management routinely evaluates the fair value measurements of independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recent appraised value. Such adjustments are usually significant, which results in a Level 3 classification. All other impaired loan measurements are based on the present value of expected future cash flows discounted at the applicable effective interest rate and, thus, are not fair value measurements. Foreclosed assets - Real estate acquired through or in lieu of loan foreclosure are not measured at fair value on a recurring basis. However, foreclosed assets are initially measured at fair value (less estimated costs to sell) when they are acquired and may also be measured at fair value (less estimated costs to sell) if they become subsequently impaired. The fair value measurement for each asset may be obtained from an independent appraiser or prepared internally. Fair value measurements obtained from independent appraisers generally utilize a market approach based on sales of comparable assets and/or an income approach. Such measurements are usually considered Level 2 measurements. However, management routinely evaluates fair value measurements of independent appraisers by comparing actual selling prices to the most recent appraisals. If management determines significant adjustments should be made to the independent appraisals based on these evaluations, these measurements are considered Level 3 measurements. Fair value measurements prepared internally are based on management’s comparisons to sales of comparable assets, but include significant unobservable data and are therefore considered Level 3 measurements. Assets measured at fair value on a recurring basis are summarized below: Recurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of December 31, 2019 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 958 $ — $ 958 Obligations of states and political subdivisions — 8,605 — 8,605 Mortgage-backed securities — 35,482 — 35,482 Certificates of deposit — 1,017 — 1,017 Corporate debt securities — 2,117 — 2,117 Total $ — $ 48,179 $ — $ 48,179 As of December 31, 2018 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 1,307 $ — $ 1,307 Obligations of states and political subdivisions — 8,295 — 8,295 Mortgage-backed securities — 28,536 — 28,536 Certificates of deposit — 1,446 — 1,446 Corporate debt securities — 4,167 — 4,167 Total $ — $ 43,751 $ — $ 43,751 Information regarding the fair value of assets measured at fair value on a nonrecurring basis follows: Nonrecurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Assets Identical Observable Unobservable Measured at Instruments Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) As of December 31, 2019 Assets: Loans $ 897 $ — $ — $ 897 Foreclosed assets 84 — — 84 As of December 31, 2018 Assets: Foreclosed assets $ 69 $ — $ — $ 69 Loans with a carrying amount of $1,132 were considered impaired and were written down to their estimated fair value of $897 as of December 31, 2019. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $235 as of December 31, 2019. There were no loans recognized at fair value as of December 31, 2018. Foreclosed assets with a carrying amount of $84 and $69 were determined to be at their fair value as of December 31, 2019 and December 31, 2018, respectively. The following presents quantitative information about nonrecurring Level 3 fair value measurements: Range/Weighted Fair Value Valuation Technique Unobservable Input(s) Average As of December 31, 2019 Loans $ Market and/or income approach Management discount on appraised values 10 % - 20 % Foreclosed assets $ 84 Market and/or income approach Management discount on appraised values 10 % - 20 % As of December 31, 2018 Foreclosed assets $ 69 Market and/or income approach Management discount on appraised values 10 % - 20 % The carrying value and estimated fair value of financial instruments as of December 31, 2019 and 2018 follow: December 31, 2019 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,377 $ 39,377 $ — $ — Available for sale securities 48,179 — 48,179 — Loans held for sale 200 — 200 — Loans 189,291 — — 190,561 Accrued interest receivable 725 725 — — Cash value of life insurance 7,068 — — 7,068 Other equity investments 780 — — 780 Financial liabilities: Deposits 217,252 150,024 — 67,391 Advance payments by borrowers for taxes and insurance 46 46 — — FHLB advances 11,500 — — 11,509 Accrued interest payable 51 51 — — December 31, 2018 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 4,488 $ 4,488 $ — $ — Available for sale securities 43,751 — 43,751 — Loans held for sale 679 — 679 — Loans 198,694 — — 199,048 Accrued interest receivable 768 768 — — Cash value of life insurance 7,007 — — 7,007 Other equity investments 739 — — 739 Financial liabilities: Deposits 183,205 95,067 — 87,531 Advance payments by borrowers for taxes and insurance 55 55 — — FHLB advances 17,750 — — 17,505 Accrued interest payable 70 70 — — Limitations - The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based on quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts, nor is it recorded as an intangible asset on the consolidated balance sheets. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Equity and Regulatory Matters
Equity and Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Equity and Regulatory Matters | |
Equity and Regulatory Matters | NOTE 16 – Equity and Regulatory Matters The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1, and Total capital to risk-weighted assets and of Tier 1 capital to average assets. It is management’s opinion, as of December 31, 2019, that the Bank meet all applicable capital adequacy requirements. As of December 31, 2019, the Bank is categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table. There are no conditions or events since December 31, 2019 that management believes have changed the category. The Bank’s actual capital amounts and ratios are presented in the following tables: For Capital Adequacy To Be Well Capitalized Actual Purposes Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2019: First Federal Bank of Wisconsin Leverage (Tier 1) $ 50,446 19.4 % $ 10,400 4.0 % $ 13,000 5.0 % Risk Based: Common Tier 1 50,446 23.7 9,591 4.5 13,854 6.5 Tier 1 50,446 23.7 12,788 6.0 17,051 8.0 Total 52,710 24.7 17,051 8.0 21,313 10.0 December 31, 2018: First Federal Bank of Wisconsin Leverage (Tier 1) $ 48,502 18.4 % $ 10,542 4.0 % $ 13,178 5.0 % Risk Based: Common Tier 1 48,502 23.7 9,209 4.5 13,302 6.5 Tier 1 48,502 23.7 12,279 6.0 16,372 8.0 Total 50,620 24.7 16,372 8.0 20,465 10.0 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets | |
Intangible Assets | NOTE 17 – Intangible Assets The core deposit premium intangible asset had a gross carrying amount of $161 and accumulated amortization of $90 at December 31, 2019. The core deposit premium intangible asset had a gross carrying amount of $161 and accumulated amortization of $74 at December 31, 2018. Aggregate amortization expense for the years ended December 31, 2019 and 2018 was $16 and $16. The following table shows the estimated future amortization of the core deposit premium intangible asset for the next five years. The projections of amortization expense are based on existing asset balances: As of December 31, 2019 2020 16 2021 16 2022 16 2023 16 2024 7 |
Deferred Compensation
Deferred Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Compensation | |
Deferred Compensation | NOTE 18 – Deferred Compensation The Company has entered into various deferred compensation agreements with key officers. The liability outstanding under the agreements was $446 at December 31, 2019 and $443 at December 31, 2018. The amount charged to operations was $53 and $52 for the twelve months ended December 31, 2019 and 2018, respectively. In addition, the Company is party to a life insurance agreement with an executive officer pursuant to which the Company has purchased a life insurance policy on the executive officer’s life. Under the agreement, the beneficiary is entitled to a death benefit paid by the insurer from the policy proceeds equal to $85. At December 31, 2019, the cash surrender value of this policy was $259. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2019 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | NOTE 19 – Employee Stock Ownership Plan The Company maintains a leveraged employee stock ownership plan (“ESOP”) that covers substantially all employees. The ESOP was established in conjunction with the Company’s stock offering completed in October 2017 and operates on a plan year ending December 31. The loan to fund the acquisition of stock by the ESOP was made by the Company. The Bank makes annual contributions to the ESOP equal to the ESOP’s debt service. The ESOP shares initially were pledged as collateral for this debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. Because the debt is intercompany, it is eliminated in consolidation for presentation in these financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet. As shares are committed to be released from collateral and allocated to active participants, the Company reports compensation expense equal to the current market price of the shares and the shares will become outstanding for earnings-per-shares (EPS) computations. During the years ended December 31, 2019 and 2018, 12,960 shares were committed to be released. During the year ended December 31, 2019 the average fair value per share of stock was $10.62 resulting in total ESOP compensation expense of $138 for the year ended December 31, 2019. During the year ended December 31, 2018 the average fair value per share of stock was $11.03 resulting in total ESOP compensation expense of $143 for the year ended December 31, 2018. The ESOP shares as of December 31 were as follows: 2019 2018 Shares allocated to active participants 15,907 2,947 Shares committed to be released and allocated to participants 12,960 12,960 Total unallocated shares 230,343 243,303 Total ESOP shares 259,210 259,210 Fair value of unallocated shares (based on $11.55 and $10.03 share price at December 31, 2019 and 2018, respectively) $ 2,660 $ 2,440 |
Share-based Compensation Plans
Share-based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Plans | |
Share-based Compensation Plans | NOTE 20 - Share-based Compensation Plans ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such awards. The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the period shown: Year Ended Year Ended December 31, December 31, 2019 2018 Total cost of stock grant plan during the year $ 196 $ 11 Total cost of stock option plan during the year 142 7 Total cost of share-based payment plans during the year $ 338 $ 18 Amount of related income tax benefit recognized in income $ 91 $ 5 The Company adopted the FFBW, Inc. 2018 Equity Incentive Plan (the “2018 Equity Incentive Plan”) in 2018. In November 2018, the Company’s stockholders approved the 2018 Equity Incentive Plan which authorized the issuance of up to 129,605 restricted stock awards and up to 324,012 stock options. As of December 31, 2019 there were 35,363 restricted stock awards and 101,923 options available for future grants. Shares granted under the 2018 Equity Incentive Plan may be authorized but unissued, currently held or, to the extent permitted by applicable law, subsequently acquired by the Company as treasury shares, including shares purchased in the open market or in private transactions. Forfeited or canceled shares shall not be deemed to have been delivered for purposes of determining the maximum number of shares of stock available for delivery under the Plan. Options are granted with an exercise price equal to no less than the market price of the Company’s shares at the date of grant: those option awards generally vest pro-rata over five years of service and have 10‑year contractual terms. Restricted shares typically vest pro-rata over a five year period, 20% per year beginning one year from the issuance date. The following table summarizes stock options activity for the years ended December 31, 2019 and 2018: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term (in Value (in Options Price years) thousands) Options outstanding as of December 31, 2018 192,089 $ 10.81 Granted 30,000 10.64 Exercised — — Expired or canceled — — Forfeited — — Options outstanding as of December 31, 2019 222,089 $ 10.79 9.01 $ 169,446 Options exercisable as of December 31, 2019 38,414 $ 10.81 8.95 $ 28,426 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term (in Value (in Options Price years) thousands) Options outstanding as of December 31, 2017 — $ — Granted 192,089 10.81 Exercised — — Expired or canceled — — Forfeited — — Options outstanding as of December 31, 2018 192,089 $ 10.81 9.95 $ — Options exercisable as of December 31, 2018 — $ — — $ — The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions. Since the Company does not have sufficient historical fair value estimates of its stock, the Company calculates expected volatility using the historical volatility of the Dow Jones U.S. Financial Services Index. The risk-free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options is estimated based on the assumption that options will be exercised evenly throughout their life after vesting and represents the period of time that options granted are expected to remain outstanding. Weighted Average Number of Grant Date Fair Options Value Nonvested options outstanding as of December 31, 2018 192,089 $ 3.40 Granted 30,000 2.90 Vested (38,414) 3.40 Forfeited — — Options outstanding as of December 31, 2019 183,675 $ 3.32 Weighted Average Number of Grant Date Fair Options Value Nonvested options outstanding as of December 31, 2017 — $ — Granted 192,089 3.40 Exercised — — Forfeited — — Options outstanding as of December 31, 2018 192,089 $ 3.40 The following assumptions were used for options granted during the year ended December 31, 2019: For the Year Ended December 31, 2019 Risk-free interest rate 2.30 % Expected volatility 18.38 % Expected dividend yield 0 % Expected life of options (years) 7.5 Weighted average fair value per option of options granted during the year $ 2.90 The following is a summary of changes in restricted shares for the year ended December 31, 2019 and 2018: Weighted Average Number of Grant Date Fair Shares Value Nonvested shares outstanding as of December 31, 2018 84,242 $ 10.82 Granted 10,000 10.64 Vested (16,842) 10.82 Forfeited — — Shares outstanding as of December 31, 2019 77,400 $ 10.79 Weighted Average Number of Grant Date Fair Shares Value Nonvested shares outstanding as of December 31, 2017 — $ — Granted 84,242 10.82 Exercised — — Forfeited — — Shares outstanding as of December 31, 2018 84,242 $ 10.82 As of December 31, 2019, there was $1.4 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements (including share option and non-vested share awards) granted under the 2018 Equity Incentive Plan. At December 31, 2019, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 2.5 years. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent Events | NOTE 21 – Subsequent Events FFBW, Inc. (“New FFBW”), a Maryland corporation that was organized in September 2019, is a savings and loan holding headquartered in Waukesha, Wisconsin. New FFBW was formed to be the successor to the Company upon completion of the second step mutual-to-stock conversion (the “Conversion”) of the MHC. Prior to completion of the Conversion, approximately 55.4% of the shares of common stock of the Company were owned by the MHC. In conjunction with the Conversion, the MHC and the Company merged into New FFBW. The Conversion was completed on January 16, 2020. In the Conversion, New FFBW sold 4,268,570 shares of common stock at $10.00 per share, for net proceeds of approximately $41.5 million, and issued 3,436,430 shares of common stock in exchange for the shares of common stock of Old FFBW owned by stockholders of Old FFBW, other than FFBW, MHC, as of the effective date of the conversion. As a result of the conversion, FFBW, MHC and Old FFBW have ceased to exist. The outbreak of Coronavirus Disease 2019 (“COVID-19”) could adversely impact a broad range of industries in which the Company’s customers operate and impair 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 will likely cause 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 Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID-19 escalates or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. Other than as set forth above, no subsequent event disclosure or financial statement impacts to these financial statements are required as of March 25, 2020 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Organization | Organization From October 2017 until January 2020, as discussed below, we operated in a two-tier mutual holding company structure. FFBW, Inc. (the “ Company ” ) was a federal corporation that was the publicly traded stock holding company of First Federal Bank of Wisconsin (the “ Bank ” ). At December 31, 2019, the Company had 6,566,478 shares of common stock outstanding, of which 2,929,603 shares, or 44.6%, were owned by the public, including 25,000 shares owned by FFBW Community Foundation, and the remaining 3,636,875 shares were held by FFBW, MHC (the “ MHC ” ), a federally chartered mutual holding company and former parent company of the Company. At December 31, 2019, the significant assets of the Company consisted of the capital stock of the Bank. The liabilities of the Company were insignificant. The Company was subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended. The Company was subject to regulation and examination by the Board of Governors of the Federal Reserve System ( “ the Federal Reserve Board ” ). First Federal Bank of Wisconsin is a community bank headquartered in Waukesha, Wisconsin that provides financial services to individuals and businesses from our offices in Waukesha, Brookfield, and the Bay View neighborhood of Milwaukee. FFBW, Inc. (“New FFBW”), a Maryland corporation that was organized in September 2019, is a savings and loan holding headquartered in Waukesha, Wisconsin. New FFBW was formed to be the successor to the Company upon completion of the second step mutual-to-stock conversion (the “Conversion”) of the MHC. Prior to completion of the Conversion, approximately 55.4% of the shares of common stock of the Company were owned by the MHC. In conjunction with the Conversion, the MHC and the Company merged into New FFBW. The Conversion was completed on January 16, 2020. In the Conversion, New FFBW sold 4,268,570 shares of common stock at $10.00 per share, for net proceeds of approximately $41.5 million, and issued 3,436,430 shares of common stock in exchange for the shares of common stock of Old FFBW owned by stockholders of Old FFBW, other than FFBW, MHC, as of the effective date of the conversion. As a result of the conversion, FFBW, MHC and Old FFBW have ceased to exist. The Conversion was conducted pursuant to the MHC’s Plan of Conversion. The Plan of Conversion provided for the establishment, upon the completion of the Conversion, of special “liquidation accounts” for the benefit of certain depositors of the Bank in an amount equal to the MHC’s ownership interest in the stockholders’ equity of the Company as of the date of the latest balance sheet contained in the prospectus plus the MHC’s net assets (excluding its ownership of the Company). Following the completion of the Conversion, the Company and the Bank will not be permitted to pay dividends on their capital stock if the shareholders' equity of New FFBW, or the shareholder's equity of the Bank, would be reduced below the amount of the liquidation accounts. The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder's interest in the liquidation accounts. Direct costs of the conversion and public offering will be deferred and reduce the proceeds from the shares sold in the public offering. Costs of $603 have been incurred related to the conversion as of December 31, 2019. |
Jumpstart Our Business Startups Act | Jumpstart Our Business Startups Act The Jumpstart Our Business Startups Act (the JOBS Act), which was signed into law on April 5, 2012, has made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as an “emerging growth company” and believes that it will continue to qualify as an “emerging growth company” until five years from the completion of the stock offering. As an “emerging growth company,” the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the fair values of securities, fair value of financial instruments, the valuation of other real estate owned and the valuation of deferred income tax assets. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company's revenue-generating transactions are not subject to ASC 606, including revenue all interest and dividend income generated from financial instruments. Certain noninterest income items, including loan servicing income, gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated to not fall with the scope of ASC 606. Elements of noninterest income that is within the scope of ASC 606, are as follows: Service charges and other fees - The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Company or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Company's monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the new revenue standards. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition. Interchange fees - Customers use a Bank-issued debit card to purchase goods and services, and the Company earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. These fees are included in “service charges and other fees” on the Consolidated Statements of Operations. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and balances due from banks, non-maturity deposits in the Federal Home Loan Bank of Chicago (FHLB), and fed funds sold. The Company has not experienced any losses in such accounts. |
Available for Sale Securities | Available for Sale Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital requirements, and other similar factors. Securities classified as available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Gains and losses on the sale of securities are recorded on the trade date and determined using the specific-identification method. Declines in fair value of securities that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient enough to allow for any anticipated recovery in fair value. |
Loans Acquired in a Transfer | Loans Acquired in a Transfer The Company acquires loans (including debt securities) individually and in groups or portfolios. These loans are initially measured at fair value with no allowance for loan losses. The Company’s allowance for loan losses on all acquired loans reflect only those losses incurred subsequent to acquisition. Certain acquired loans may have experienced deterioration of credit quality between origination and the Company’s acquisition of the loans. At acquisition, the Company reviews each loan to determine whether there is evidence of deterioration of credit quality since origination and if it is probable that the Company will be unable to collect all amounts due according to the loan’s contractual terms. If both conditions exist, the Company determines whether each such loan is to be accounted for individually or whether such loans will be assembled into pools of loans based on common risk characteristics (for example, credit score, loan type, and date of origination). The Company considers expected prepayments and estimates the amount and timing of undiscounted principal, interest, and other cash flows expected at acquisition for each loan and aggregated pool of loans. The excess of the loan’s or pool’s scheduled contractual principal and interest payments over all cash flows expected at acquisition is calculated as the nonaccretable difference. The excess of cash flows expected to be collected over the fair value of each loan or pool (accretable yield) is accreted into interest income over the remaining life of the loan or pool. At each reporting date, the Company continues to estimate cash flows expected to be collected for each loan or pool. If expected cash flows have decreased from the acquisition date estimate, the Company recognizes an allowance for loan losses. If expected cash flows have increased from the acquisition date estimate, the Company increases the amount of accretable yield to be recognized as interest income over the remaining life of the loan or pool. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released by the Company. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan sold. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for deferred loan fees and costs, charge-offs, and an allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. When loans are placed on nonaccrual status or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable as of the balance sheet date. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. In determining the adequacy of the allowance balance, the Company makes evaluations of the loan portfolio and related off-balance sheet commitments, considers current economic conditions and historical loss experience, and reviews specific problem loans and other factors. When establishing the allowance for loan losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and their relevant risk characteristics are as follows: Commercial development: These loans are secured by vacant land and/or property that are in the process of improvement. Repayment of these loans can be dependent on the sale of the property to third parties or the successful completion of the improvements by the builder for the end user. Construction loans include not only construction of new structures, but loans originated to finance additions to or alterations of existing structures. Until a permanent loan originates, or payoff occurs, all commercial construction loans secured by real estate are reported in this loan pool. Development loans also have the risk that improvements will not be completed on time, or in accordance with specifications and projected costs. Commercial real estate: These loans are primarily secured by office and industrial buildings, warehouses, small retail shopping facilities, and various special purpose properties, including restaurants. These loans are subject to underwriting standards and processes similar to commercial and industrial loans. Loans to closely held businesses are generally guaranteed in full by the owners of the business. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to the general economic factors or conditions specific to the real estate market, such as geographic location and/or purpose type. Commercial and industrial: Commercial and industrial loans are extended primarily to small and middle market customers. Such credits typically comprise working capital loans, asset acquisition loans, and loans for other business purposes. Loans to closely held businesses are generally guaranteed in full by the owners of the business. Commercial and industrial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for commercial and industrial loans. One-to-four family owner-occupied: These loans are generally to individuals and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations, the underlying collateral, and the loan to collateral value. Also included in this category are junior liens on one-to-four family residential properties. Underwriting standards for one-to-four family owner-occupied loans are heavily influenced by statutory requirements, which include, but are not limited to, loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. One-to-four family investor-owned: These loans may be to individuals or businesses and are subject to underwriting standards and processes similar to commercial and industrial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property(ies). The cash flows of the borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to the general economic factors or conditions specific to the real estate market, such as geographic location and/or purpose type. Multifamily real estate: These loans include loans to finance non-farm properties with five or more units in structures primarily to accommodate households. Such credits are typically originated to finance the acquisition or refinancing of an apartment building. These loans are subject to underwriting standards and processes similar to commercial and industrial loans. Loans to closely held businesses are generally guaranteed in full by the owners of the business. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the subject multifamily property, with assumptions made for vacancy rates. Cash flows of the borrowers rely on the receipt of rental income from the tenants of the property who are themselves subject to fluctuations in national and local economic conditions and unemployment trends. Consumer: These loans may take the form of installment loans, demand loans, or single payment loans, and are extended to individuals for household, family, and other personal expenditures. These loans generally include direct consumer automobile loans and credit card loans. These loans are generally smaller in size and are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations. Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the loan portfolio, composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. A loan is impaired when, based on current information, it is probable that the Company will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability based on information available to them at the time of their examination. |
Troubled Debt Restructurings | Troubled Debt Restructurings Loans are accounted for as troubled debt restructurings when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. Troubled debt restructurings are considered impaired loans. |
Foreclosed Assets | Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Provisions for depreciation are computed on straight-line and accelerated methods over the estimated useful lives of the assets. |
Other Equity Investments | Other Equity Investments Other Equity Investments consist of Federal Home Loan Bank (“FHLB”) stock and Bankers’ Bank stock. The Company's investment in the FHLB stock is carried at cost, which approximates fair value. The Company is required to hold the stock as a member of the FHLB, and transfer of the stock is substantially restricted. The stock is evaluated for impairment on an annual basis. The Company is required to adjust its reported value of Bankers’ Bank stock, which is considered an equity security without a readily determinable market value, if a comparable transaction is observed. |
Income Taxes | Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to the allowances for loan losses, deferred compensation, depreciation, FHLB stock dividends and non-accrual interest. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s policy is to recognize interest and penalties related to income tax issues as components of income tax expense. During the periods shown, the Company did not recognize any interest or penalties related to income tax expense in its statements of operations. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) is shown on the statements of comprehensive income. The Company’s accumulated other comprehensive income (loss) is composed of the unrealized gains (losses) on securities available for sale, net of tax and is shown on the statements of changes in equity. Reclassification adjustments out of other comprehensive income (loss) for losses realized on sales of securities available for sale comprise the entire balance of “net loss on sale of securities” on the statements of operations. As part of this reclassification, income tax credit of approximately $1 was recognized for the year ended December 31, 2019 and income tax expense of approximately $56 was recognized for the year ended December 31, 2018 in “provision for income taxes” on the statements of operations. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, unfunded commitments under lines of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. |
Life Insurance | Life Insurance The Company has purchased life insurance policies on certain key executives. Life insurance is measured at the amount that could be realized under the insurance contract as of the balance sheet date, which is generally the cash surrender value of the policy. |
Subsequent Events | Subsequent Events Subsequent events have been evaluated through March 25, 2020, which is the date the financial statements are available to be issued. The outbreak of Coronavirus Disease 2019 (“COVID-19”) could adversely impact a broad range of industries in which the Company’s customers operate and impair 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 will likely cause 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 Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID-19 escalates or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2018 consolidated financial statements to conform to the 2019 classifications. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company 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. The Company recently adopted the following Accounting Standards Updates (ASU) issued by the Financial Accounting Standards Board (FASB). ASU No. 2014-09, "Revenue from Contracts with Customers." The objective of this new standard is to provide a common revenue standard for all entities that enter into contracts with customers to transfer goods, services, or nonfinancial assets. The Company adopted this new accounting standard for the effective January 1, 2019, using the modified retrospective approach. The Company did not identify any changes in the timing of revenue recognition when considering the amended accounting guidance, however, the Company has included additional disclosures as required by the guidance. ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)” ASU No. 2016-01 is a wide-ranging standard with several elements that will impact most financial institutions. The standard introduces new guidance that applies to most equity investments. Under the standard, equity securities can no longer be classified as available-for-sale securities. Instead, market value fluctuations on equity securities will have to be recognized directly through net income. An entity may elect to value equity investments without a readily determinable fair value at its cost minus impairment (if any) plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer, with any changes recognized through net income. The standard also eliminates certain disclosure requirements related to financial instruments. Non-public business entities will no longer have to disclose the fair value of financial instruments measured at amortized cost in the financial statements. Public business entities (“PBEs”) will still need to make this disclosure but will no longer be required to disclose the methods and significant assumptions used to determine the fair value of financial instruments measured at amortized cost. ASU 2016-01 is effective for non-PBEs for years beginning after December 15, 2018, and was effective for PBEs with fiscal years beginning after December 15, 2017. ASU 2016-01 will require the Company to adjust its reported value of Bankers’ Bank stock, which is considered an equity security without a readily determinable market value, if a comparable transaction is observed. The following ASUs have been issued by the FASB and may impact the Company's financial statements in future reporting periods: ASU No. 2016-13, “Credit Losses (Topic 326).” ASU No. 2019-04, “Codification Improvements to Topic 326.” ASU No. 2019-05, “Financial Instruments-Credit Losses.” ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently assessing the impact of adopting ASU 2016-13 on its financial statements. ASU No. 2016-02, “Leases (Topic 842): Amendments to the Leases Analysis.” ASU No. 2018-10, "Codification Improvements to Topic 842." ASU No. 2018-11, "Targeted Improvements" For lessees, Topic 842 requires leases to be recognized on the balance sheet, along with disclosure of key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, 2018-10 and 2018-11. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification expense recognition in the income statement. For lessors, Topic 842 requires lessors to classify leases as sales-type, direct financing or operating leases. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard is effective for the Company on January 1, 2021, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) the new standard's effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company expects to adopt the new standard on January 1, 2021 using the effective date as its date of initial application. The Company is evaluating what impact this standard will have on its consolidated financial statements. ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” This ASU modifies the disclosure requirements on fair value measurements in Topic 820, including the removal, modification to, and addition of certain disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The majority of the disclosure changes are to be applied on a prospective basis. The Company is currently in the process of reviewing this ASU to determine whether the modifications within will be adopted prior to the effective date. Although this ASU has a significant impact to the Company’s fair value disclosures, no additional impact to the financial statements is expected. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the earnings per share calculations for the years ended December 31: 2019 2018 Net income $ 1,556 $ 1,058 Basic potential common shares Weighted average shares outstanding 6,620,922 6,617,507 Weighted average unallocated Employee Stock Ownership Plan Shares (236,823) (249,783) Basic weighted average shares outstanding 6,384,099 6,367,724 Dilutive potential common shares 222,089 — Dilutive weighted average shares outstanding 6,606,188 6,367,724 Basic earnings per share $ 0.24 $ 0.17 Diluted earnings per share $ 0.24 $ 0.17 |
Available for Sale Securities (
Available for Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Available for Sale Securities | |
Schedule of Amortized Costs and Fair Values of Available for Sale Securities | Amortized costs and fair values of available for sale securities are summarized as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2019 Obligations of the US government and US government sponsored agencies $ 944 $ 14 $ — $ 958 Obligations of states and political subdivisions 8,590 36 (21) 8,605 Mortgage-backed securities 35,095 486 (99) 35,482 Certificates of deposit 1,000 17 — 1,017 Corporate debt securities 2,080 37 — 2,117 Total available for sale securities $ 47,709 $ 590 $ (120) $ 48,179 December 31, 2018 Obligations of the US government and US government sponsored agencies $ 1,299 $ 8 $ — $ 1,307 Obligations of states and political subdivisions 8,381 17 (103) 8,295 Mortgage-backed securities 29,164 24 (652) 28,536 Certificates of deposit 1,500 1 (55) 1,446 Corporate debt securities 4,220 2 (55) 4,167 Total available for sale securities $ 44,564 $ 52 $ (865) $ 43,751 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents the portion of the Company’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2019 Obligations of states and political subdivisions $ 2,569 $ (17) $ 1,059 $ (4) $ 3,628 $ (21) Mortgage-backed securities 7,604 (57) 4,372 (42) 11,976 (99) Total $ 10,173 $ (74) $ 5,431 $ (46) $ 15,604 $ (120) December 31, 2018 Obligations of the US government and US government sponsored agencies $ 175 $ — $ 113 $ — $ 288 $ — Obligations of states and political subdivisions — — 6,142 (103) 6,142 (103) Mortgage-backed securities 1,171 (24) 24,725 (628) 25,896 (652) Certificates of deposit — — 1,195 (55) 1,195 (55) Corporate debt securities 384 (2) 3,128 (53) 3,512 (55) Total $ 1,730 $ (26) $ 35,303 $ (839) $ 37,033 $ (865) |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below: December 31, 2019 Amortized Cost Fair Value Due in one year or less $ 1,297 $ 1,306 Due after one year through 5 years 2,843 2,890 Due after 5 years through 10 years 4,395 4,418 Due after 10 years 4,079 4,083 Subtotal $ 12,614 $ 12,697 Mortgage-backed securities 35,095 35,482 Total $ 47,709 $ 48,179 |
Summary of the Proceeds from Sales of Securities | The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses: Years ended December 31, 2019 2018 Proceeds from sale of securities $ 4,836 $ 12,874 Gross gains 21 35 Gross losses (25) (239) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans | |
Major Classifications of Loans | Major classifications of loans are as follows: December 31, December 31, 2019 2018 Commercial Development $ 18,222 $ 7,801 Real estate 68,621 69,425 Commercial and industrial 13,681 13,142 Residential real estate and consumer One-to-four family owner-occupied 29,380 41,018 One-to-four family investor-owned 28,077 32,312 Multifamily 29,531 34,467 Consumer 4,230 2,733 Subtotal $ 191,742 $ 200,898 Deferred loan fees (187) (86) Allowance for loan losses (2,264) (2,118) Net loans $ 189,291 $ 198,694 |
Summary of the Activity in the Allowance for Loan Losses | A summary of the activity in the allowance for loan losses by portfolio segment is as follows: Residential real estate Year Ended Commercial and consumer Total December 31, 2019 Beginning balance $ 940 $ 1,178 $ 2,118 Provision for loan losses 311 (110) 201 Loans charged off — (58) (58) Recoveries of loans previously charged off — 3 3 Total ending allowance balance $ 1,251 $ 1,013 $ 2,264 December 31, 2018 Beginning balance $ 660 $ 1,140 $ 1,800 Provision for loan losses 304 209 513 Loans charged off (24) (172) (196) Recoveries of loans previously charged off — 1 1 Total ending allowance balance $ 940 $ 1,178 $ 2,118 Information about how loans were evaluated for impairment and the related allowance for loan losses follows: Residential real estate and December 31, 2019 Commercial consumer Total Loans: Individually evaluated for impairment $ 798 $ 1,457 $ 2,255 Collectively evaluated for impairment 99,726 89,761 189,487 Total loans $ 100,524 $ 91,218 $ 191,742 Allowance for loan losses: Individually evaluated for impairment $ 158 $ 77 $ 235 Collectively evaluated for impairment 1,093 936 2,029 Total allowance for loan losses $ 1,251 $ 1,013 $ 2,264 Residential real estate and December 31, 2018 Commercial consumer Total Loans: Individually evaluated for impairment $ 87 $ 1,469 $ 1,556 Collectively evaluated for impairment 90,281 109,061 199,342 Total loans $ 90,368 $ 110,530 $ 200,898 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 940 1,178 2,118 Total allowance for loan losses $ 940 $ 1,178 $ 2,118 |
Impairment and the Related Allowance for Loan Losses | Information regarding impaired loans follows: Principal Recorded Related Average Interest As of December 31, 2019 Balance Investment Allowance Investment Recognized Loans with related allowance for loan losses: Commercial Commercial and industrial $ 729 $ 729 $ 158 $ 740 $ 19 Residential real estate and consumer One-to-four family investor-owned 415 403 77 412 — Total loans with related allowance for loan losses 1,144 1,132 235 1,152 19 Loans with no related allowance for loan losses: Commercial Commercial and industrial 73 69 — 77 5 Residential real estate and consumer One-to-four family owner-occupied 795 744 — 754 5 One-to-four family investor-owned 243 221 — 231 — Consumer 114 89 — 98 — Total loans with no related allowance for loan losses 1,225 1,123 — 1,160 10 Total impaired loans $ 2,369 $ 2,255 $ 235 $ 2,312 $ 29 Principal Recorded Related Average Interest As of December 31, 2018 Balance Investment Allowance Investment Recognized Loans with no related allowance for loan losses: Commercial Commercial and industrial $ 89 $ 87 $ — $ 93 $ 5 Residential real estate and consumer One-to-four family owner-occupied 1,142 1,120 — 1,137 26 One-to-four family investor-owned 248 241 — 246 — Consumer 114 108 — 114 — Total impaired loans $ 1,593 $ 1,556 $ — $ 1,590 $ 31 |
Information Regarding the Credit Quality Indicators | Information regarding the credit quality indicators most closely monitored for commercial loans by class follows: Special Pass Mention Substandard Doubtful Totals December 31, 2019 Development $ 18,222 $ — $ — $ — $ 18,222 Real estate 68,036 585 — — 68,621 Commercial and industrial 10,888 2,779 14 — 13,681 One-to-four family investor-owned 27,453 — 624 — 28,077 Multifamily 29,531 — — — 29,531 Totals $ 154,130 $ 3,364 $ 638 $ — $ 158,132 December 31, 2018 Development $ 7,801 $ — $ — $ — $ 7,801 Real estate 69,425 — — — 69,425 Commercial and industrial 13,122 — 20 — 13,142 One-to-four family investor-owned 30,558 1,353 401 — 32,312 Multifamily 34,467 — — — 34,467 Totals $ 155,373 $ 1,353 $ 421 $ — $ 157,147 Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows: Performing Non-performing Totals December 31, 2019 One-to-four family owner-occupied $ 28,636 $ 744 $ 29,380 Consumer 4,141 89 4,230 $ 32,777 $ 833 $ 33,610 December 31, 2018 One-to-four family owner-occupied $ 39,919 $ 1,099 $ 41,018 Consumer 2,625 108 2,733 $ 42,544 $ 1,207 $ 43,751 |
Loan Aging Information | Loan aging information follows: Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2019 Commercial Development $ 18,222 $ — $ — $ 18,222 $ — Real estate 68,621 — — 68,621 — Commercial and industrial 13,681 — — 13,681 14 Residential real estate and consumer One-to-four family owner-occupied 29,034 — 346 29,380 346 One-to-four family investor-owned 28,077 — — 28,077 624 Multifamily 29,531 — — 29,531 — Consumer 4,230 — — 4,230 86 Total $ 191,396 $ — $ 346 $ 191,742 $ 1,070 Loans Past Due Loans Past Due Nonaccrual Current Loans 30-89 Days 90+ Days Total Loans Loans December 31, 2018 Commercial Development $ 7,801 $ — $ — $ 7,801 $ — Real estate 69,425 — — 69,425 — Commercial and industrial 13,076 66 — 13,142 20 Residential real estate and consumer One-to-four family owner-occupied 41,013 5 — 41,018 365 One-to-four family investor-owned 32,069 243 — 32,312 241 Multifamily 34,467 — — 34,467 — Consumer 2,733 — — 2,733 94 Total $ 200,584 $ 314 $ — $ 200,898 $ 720 |
Schedule of Non-Accrual Loans | Nonaccrual loans are as follows: As of December 31 2019 2018 Nonaccrual loans, other than troubled debt restructurings $ 416 $ 20 Nonaccrual loans, troubled debt restructurings 654 700 Total nonaccrual loans 1,070 720 Restructured loans, accruing $ 1,185 $ 501 |
Information Regarding Troubled Debt Restructurings | The following presents information regarding new modifications of loans classified as troubled debt restructurings during the years ended December 31, 2019 and 2018. All troubled debt restructurings are classified as impaired loans. The recorded investment presented in the following tables does not include specific reserves for loan losses recognized for these loans, which totaled $158 at December 31, 2019 and December 31, 2018. Post- Number of Pre-Modification Modification Modifications Investment Investment December 31, 2019 Commercial Commercial and industrial 2 $ 729 $ 729 Residential real estate and consumer: One-to-four family owner-occupied 3 285 285 Total loan modifications 5 $ 1,014 $ 1,014 December 31, 2018 Residential real estate and consumer: One-to-four family owner-occupied 2 $ 302 $ 302 One-to-four family investor-owned 1 250 250 Consumer 1 20 20 Total loan modifications 4 $ 572 $ 572 |
Schedule of Carrying Value of all Purchased Loans | The following table reflects the carrying value of all purchased loans: Contractually Required Payments Receivable Carrying Value Non-Credit of As of December 31, 2019 Credit Impaired Impaired Purchased Loans Commercial Real estate $ — $ — $ — Residential real estate and consumer One-to-four family owner-occupied — 4,580 4,548 One-to-four family investor-owned — 6,580 6,535 Multifamily — — — Consumer — — — Totals $ — $ 11,160 $ 11,083 Contractually Required Payments Receivable Carrying Value Non-Credit of As of December 31, 2018 Credit Impaired Impaired Purchased Loans Commercial Real estate $ — $ 7,687 $ 7,673 Residential real estate and consumer One-to-four family owner-occupied — 5,075 5,014 One-to-four family investor-owned — 9,269 9,164 Multifamily — 3,953 3,943 Consumer — — — Totals $ — $ 25,984 $ 25,794 |
Carrying Amount of Accretable Yield for Purchased Loans | The change in carrying amount of accretable yield for purchased loans was as follows: For years ended December 31, 2019 2018 Beginning Balance $ 190 $ 334 Additions — — Accretion (113) (144) Ending Balance $ 77 $ 190 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment | |
Summary of Premises and Equipment | Premises and equipment are stated at cost less accumulated depreciation and are summarized as follows: December 31, 2019 2018 Land $ 479 $ 479 Buildings 4,929 4,929 Leasehold improvements 162 153 Furniture and equipment 1,383 1,332 Totals 6,953 6,893 Less: Accumulated depreciation 2,146 1,836 Premises and equipment, net $ 4,807 $ 5,057 |
Schedule of Future Minimum Rental Payments for Operating Leases | Rent commitments, before considering renewal options that are present, are as follows as of December 31, 2019: 2020 $ 153 2021 144 2022 146 2023 148 2024 150 Thereafter 437 Total $ 1,178 |
Schedule of Future Minimum Rental Payments Receivable | The Company also entered into a lease with a tenant for a portion of the Brookfield branch, commencing June 1, 2018 through May 31, 2024. As of December 31, 2019, minimum future rents receivable are as follows: 2020 $ 99 2021 101 2022 103 2023 106 2024 44 Total $ 453 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits | |
Composition of deposits | The composition of deposits are as follows: December 31, December 31, 2019 2018 Non-interest bearing checking $ 20,733 $ 22,763 Interest bearing checking 6,941 5,424 Money market 46,673 41,910 Statement savings accounts 12,359 13,773 Health savings accounts 10,670 11,197 Deposits held in escrow for stock subscriptions 52,648 — Certificates of deposit 67,228 88,138 Total $ 217,252 $ 183,205 |
Scheduled Maturities of Certificates of Deposit | The scheduled maturities of certificates of deposit are as follows as of December 31, 2019: 2020 $ 44,462 2021 17,354 2022 2,374 2023 2,046 2024 992 Total $ 67,228 |
FHLB Advances (Tables)
FHLB Advances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FHLB Advances | |
Schedule of Federal Home Loan Bank, Advances | FHLB advances consist of the following as of December 31: 2019 2018 Rates Amount Rates Amount Fixed rate, fixed term advances 1.62% - 2.70% $ 7,500 1.42% - 2.70% $ 11,750 Fixed term advances with floating spread 1.69% - 2.09% 4,000 1.54% - 2.05% 6,000 $ 11,500 $ 17,750 |
Maturities of Federal Home Loan Bank Advances | The following is a summary of scheduled maturities of fixed term FHLB advances as of December 31, 2019: Fixed Rate Advances Adjustable Rate Advances Weighted Weighted Total Average Rate Amount Average Rate Amount Amount 2020 2.34 % $ 6,000 1.69 % $ 2,000 $ 8,000 2021 — % — 2.09 % 2,000 2,000 2022 1.71 % 1,500 — % — 1,500 Total 2.21 % $ 7,500 1.89 % $ 4,000 $ 11,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes included in the accompanying financial statements consists of the following components: Years ended December 31, 2019 2018 Current Taxes (Benefit) Federal $ 389 $ 114 State 155 83 Total Current Taxes 544 197 Deferred Income Taxes (Benefit) Federal (38) 107 State (4) 14 Total Deferred Income Taxes (42) 121 Total Provision for Income Taxes $ 502 $ 318 |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax asset in the accompanying balance sheet includes the following amounts of deferred tax assets and liabilities: As of December 31, 2019 2018 Deferred Tax Assets Allowance for loan losses $ 617 $ 577 Deferred compensation 121 121 Non-accrual interest 5 18 Purchase accounting 7 18 Equity compensation 23 4 Unrealized loss on available for sale securities — 219 Charitable contribution carryforward 132 191 Other 46 10 Deferred Tax Assets $ 951 $ 1,158 Deferred Tax Liabilities Depreciation and amortization (50) (73) FHLB stock (23) (30) Unrealized gain on available for sale securities (127) — Deferred Tax Liabilities $ (200) $ (103) Net Deferred Tax Asset $ 751 $ 1,055 |
Schedule of Effective Income Tax Rate Reconciliation | A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes follows: Years ended December 31, 2019 2018 % of Pretax % of Pretax Amount Income Amount Income Reconciliation of statutory to effective rates Federal income taxes at statutory rate $ 432 21.0 % $ 289 21.0 % Adjustments for Tax exempt interest on municipal obligations (5) (0.2) % (10) (0.7) % State income taxes, net of federal income tax benefit 122 5.9 % 75 5.5 % Increase in CSV of life insurance (46) (2.2) % (41) (3.0) % Other (1) (0.1) % 5 0.3 % Provision for income taxes $ 502 24.4 % $ 318 23.1 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Schedule of Loss Contingencies by Contingency | The contract amounts of credit-related financial instruments at December 31, 2019 and 2018 are summarized below: Notional Amount 2019 2018 Unused lines of credit Fixed 14,902 7,467 Variable 3,770 11,307 Undisbursed portion of loan proceeds 2,194 5,890 Standby letters of credit, variable 993 1,277 |
Related-party Transactions (Tab
Related-party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related-party Transactions | |
Schedule of Related Party Transactions | A summary of loans to directors, executive officers, and their affiliates follows: Years ended December 31, 2019 2018 Beginning balance $ 6,825 $ 6,697 Adjustments for changes in directors and executive officers — — New loans 1,641 2,121 Less: Participations sold (4,779) (310) Repayments (72) (1,683) Ending balance $ 3,615 $ 6,825 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value | |
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: Recurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of December 31, 2019 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 958 $ — $ 958 Obligations of states and political subdivisions — 8,605 — 8,605 Mortgage-backed securities — 35,482 — 35,482 Certificates of deposit — 1,017 — 1,017 Corporate debt securities — 2,117 — 2,117 Total $ — $ 48,179 $ — $ 48,179 As of December 31, 2018 Assets: Available for sale securities: Obligations of the US government and US government sponsored agencies $ — $ 1,307 $ — $ 1,307 Obligations of states and political subdivisions — 8,295 — 8,295 Mortgage-backed securities — 28,536 — 28,536 Certificates of deposit — 1,446 — 1,446 Corporate debt securities — 4,167 — 4,167 Total $ — $ 43,751 $ — $ 43,751 |
Assets Measured at Fair Value on Nonrecurring Basis | Information regarding the fair value of assets measured at fair value on a nonrecurring basis follows: Nonrecurring Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Assets Identical Observable Unobservable Measured at Instruments Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) As of December 31, 2019 Assets: Loans $ 897 $ — $ — $ 897 Foreclosed assets 84 — — 84 As of December 31, 2018 Assets: Foreclosed assets $ 69 $ — $ — $ 69 |
Fair Value Measurement Inputs and Valuation Techniques | The following presents quantitative information about nonrecurring Level 3 fair value measurements: Range/Weighted Fair Value Valuation Technique Unobservable Input(s) Average As of December 31, 2019 Loans $ Market and/or income approach Management discount on appraised values 10 % - 20 % Foreclosed assets $ 84 Market and/or income approach Management discount on appraised values 10 % - 20 % As of December 31, 2018 Foreclosed assets $ 69 Market and/or income approach Management discount on appraised values 10 % - 20 % |
Carrying Value and Estimated Fair Value of Financial Instruments | The carrying value and estimated fair value of financial instruments as of December 31, 2019 and 2018 follow: December 31, 2019 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,377 $ 39,377 $ — $ — Available for sale securities 48,179 — 48,179 — Loans held for sale 200 — 200 — Loans 189,291 — — 190,561 Accrued interest receivable 725 725 — — Cash value of life insurance 7,068 — — 7,068 Other equity investments 780 — — 780 Financial liabilities: Deposits 217,252 150,024 — 67,391 Advance payments by borrowers for taxes and insurance 46 46 — — FHLB advances 11,500 — — 11,509 Accrued interest payable 51 51 — — December 31, 2018 Carrying Fair Value Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 4,488 $ 4,488 $ — $ — Available for sale securities 43,751 — 43,751 — Loans held for sale 679 — 679 — Loans 198,694 — — 199,048 Accrued interest receivable 768 768 — — Cash value of life insurance 7,007 — — 7,007 Other equity investments 739 — — 739 Financial liabilities: Deposits 183,205 95,067 — 87,531 Advance payments by borrowers for taxes and insurance 55 55 — — FHLB advances 17,750 — — 17,505 Accrued interest payable 70 70 — — |
Equity and Regulatory Matters (
Equity and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity and Regulatory Matters | |
Bank’s Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following tables: For Capital Adequacy To Be Well Capitalized Actual Purposes Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2019: First Federal Bank of Wisconsin Leverage (Tier 1) $ 50,446 19.4 % $ 10,400 4.0 % $ 13,000 5.0 % Risk Based: Common Tier 1 50,446 23.7 9,591 4.5 13,854 6.5 Tier 1 50,446 23.7 12,788 6.0 17,051 8.0 Total 52,710 24.7 17,051 8.0 21,313 10.0 December 31, 2018: First Federal Bank of Wisconsin Leverage (Tier 1) $ 48,502 18.4 % $ 10,542 4.0 % $ 13,178 5.0 % Risk Based: Common Tier 1 48,502 23.7 9,209 4.5 13,302 6.5 Tier 1 48,502 23.7 12,279 6.0 16,372 8.0 Total 50,620 24.7 16,372 8.0 20,465 10.0 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets | |
Projections of Amortization Expense of Intangible Assets | The following table shows the estimated future amortization of the core deposit premium intangible asset for the next five years. The projections of amortization expense are based on existing asset balances: As of December 31, 2019 2020 16 2021 16 2022 16 2023 16 2024 7 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan (ESOP) Disclosures | 2019 2018 Shares allocated to active participants 15,907 2,947 Shares committed to be released and allocated to participants 12,960 12,960 Total unallocated shares 230,343 243,303 Total ESOP shares 259,210 259,210 Fair value of unallocated shares (based on $11.55 and $10.03 share price at December 31, 2019 and 2018, respectively) $ 2,660 $ 2,440 |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Plans | |
Impact of the Company’s Share-Based Payment Plans in the Financial Statements | The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the period shown: Year Ended Year Ended December 31, December 31, 2019 2018 Total cost of stock grant plan during the year $ 196 $ 11 Total cost of stock option plan during the year 142 7 Total cost of share-based payment plans during the year $ 338 $ 18 Amount of related income tax benefit recognized in income $ 91 $ 5 |
Summary Stock Options Activity | The following table summarizes stock options activity for the years ended December 31, 2019 and 2018: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term (in Value (in Options Price years) thousands) Options outstanding as of December 31, 2018 192,089 $ 10.81 Granted 30,000 10.64 Exercised — — Expired or canceled — — Forfeited — — Options outstanding as of December 31, 2019 222,089 $ 10.79 9.01 $ 169,446 Options exercisable as of December 31, 2019 38,414 $ 10.81 8.95 $ 28,426 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term (in Value (in Options Price years) thousands) Options outstanding as of December 31, 2017 — $ — Granted 192,089 10.81 Exercised — — Expired or canceled — — Forfeited — — Options outstanding as of December 31, 2018 192,089 $ 10.81 9.95 $ — Options exercisable as of December 31, 2018 — $ — — $ — |
Schedule of Nonvested Options Activity | Weighted Average Number of Grant Date Fair Options Value Nonvested options outstanding as of December 31, 2018 192,089 $ 3.40 Granted 30,000 2.90 Vested (38,414) 3.40 Forfeited — — Options outstanding as of December 31, 2019 183,675 $ 3.32 Weighted Average Number of Grant Date Fair Options Value Nonvested options outstanding as of December 31, 2017 — $ — Granted 192,089 3.40 Exercised — — Forfeited — — Options outstanding as of December 31, 2018 192,089 $ 3.40 |
Valuation Assumptions were Used for Options Granted | The following assumptions were used for options granted during the year ended December 31, 2019: For the Year Ended December 31, 2019 Risk-free interest rate 2.30 % Expected volatility 18.38 % Expected dividend yield 0 % Expected life of options (years) 7.5 Weighted average fair value per option of options granted during the year $ 2.90 |
Summary of Changes in Restricted Shares | The following is a summary of changes in restricted shares for the year ended December 31, 2019 and 2018: Weighted Average Number of Grant Date Fair Shares Value Nonvested shares outstanding as of December 31, 2018 84,242 $ 10.82 Granted 10,000 10.64 Vested (16,842) 10.82 Forfeited — — Shares outstanding as of December 31, 2019 77,400 $ 10.79 Weighted Average Number of Grant Date Fair Shares Value Nonvested shares outstanding as of December 31, 2017 — $ — Granted 84,242 10.82 Exercised — — Forfeited — — Shares outstanding as of December 31, 2018 84,242 $ 10.82 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | Jan. 16, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Common stock, outstanding (in shares) | 6,566,478 | 6,696,742 | |
Public offering costs | $ 603,000 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 0 | ||
Income tax expense (benefit), Total | $ 502,000 | $ 318,000 | |
Owned by Public [Member] | |||
Common stock, outstanding (in shares) | 2,929,603 | ||
Percentage of common stock outstanding to eligible Members | 44.60% | ||
Subsequent Event [Member] | |||
Stock issued during period, shares | 4,268,570 | ||
Issuance of common stock, net of issuance costs | $ 41,500,000 | ||
Sale of stock, price per share | $ 10 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Gain on Sale of Securities [Member] | |||
Income tax expense (benefit), Total | $ 1,000 | $ 56,000 | |
FFBW Community Foundation [Member] | |||
Common stock, outstanding (in shares) | 25,000 | ||
FFBW, MHC [Member] | |||
Common stock, outstanding (in shares) | 3,636,875 | ||
Percentage of shares held by Mutual Holding Company | $ 55.4 | ||
FFBW, MHC [Member] | Subsequent Event [Member] | |||
Stock issued during period, shares | 3,436,430 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share | ||
Net income | $ 1,556 | $ 1,058 |
Weighted average shares outstanding (in shares) | 6,620,922 | 6,617,507 |
Weighted average unallocated Employee Stock Ownership Plan Shares (in shares) | (236,823) | (249,783) |
Basic weighted average shares outstanding (in shares) | 6,384,099 | 6,367,724 |
Dilutive potential common shares (in shares) | 222,089 | |
Diluted weighted average shares outstanding (in shares) | 6,606,188 | 6,367,724 |
Basic earnings per share (in dollars per share) | $ 0.24 | $ 0.17 |
Diluted earnings per share (in dollars per share) | $ 0.24 | $ 0.17 |
Cash and Due from Banks (Narrat
Cash and Due from Banks (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Due from Banks | ||
Amount of required reserve balance with Federal Reserve Bank | $ 0 | $ 0 |
Available for Sale Securities_2
Available for Sale Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Available for Sale Securities | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 14 | 79 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 18 | 6 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | $ | $ 0 | $ 0 |
Security Owned and Pledged as Collateral, Fair Value, Total | $ | $ 999 | $ 960 |
Available for Sale Securities_3
Available for Sale Securities (Amortized Cost and Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 47,709 | $ 44,564 |
Gross unrealized gains | 590 | 52 |
Gross unrealized losses | (120) | (865) |
Estimated fair value | 48,179 | 43,751 |
US Government Corporations and Agencies Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 944 | 1,299 |
Gross unrealized gains | 14 | 8 |
Estimated fair value | 958 | 1,307 |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 8,590 | 8,381 |
Gross unrealized gains | 36 | 17 |
Gross unrealized losses | (21) | (103) |
Estimated fair value | 8,605 | 8,295 |
Collateralized Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 35,095 | 29,164 |
Gross unrealized gains | 486 | 24 |
Gross unrealized losses | (99) | (652) |
Estimated fair value | 35,482 | 28,536 |
Certificates of Deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 1,000 | 1,500 |
Gross unrealized gains | 17 | 1 |
Gross unrealized losses | (55) | |
Estimated fair value | 1,017 | 1,446 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 2,080 | 4,220 |
Gross unrealized gains | 37 | 2 |
Gross unrealized losses | (55) | |
Estimated fair value | $ 2,117 | $ 4,167 |
Available for Sale Securities_4
Available for Sale Securities (Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 10,173 | $ 1,730 |
Less Than 12 Months Unrealized Losses | (74) | (26) |
12 Months or More Fair Value | 5,431 | 35,303 |
12 Months or More Unrealized Losses | (46) | (839) |
Total Fair Value | 15,604 | 37,033 |
Total Unrealized Losses | (120) | (865) |
US Government Corporations and Agencies Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 175 | |
12 Months or More Fair Value | 113 | |
Total Fair Value | 288 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 2,569 | |
Less Than 12 Months Unrealized Losses | (17) | |
12 Months or More Fair Value | 1,059 | 6,142 |
12 Months or More Unrealized Losses | (4) | (103) |
Total Fair Value | 3,628 | 6,142 |
Total Unrealized Losses | (21) | (103) |
Collateralized Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 7,604 | 1,171 |
Less Than 12 Months Unrealized Losses | (57) | (24) |
12 Months or More Fair Value | 4,372 | 24,725 |
12 Months or More Unrealized Losses | (42) | (628) |
Total Fair Value | 11,976 | 25,896 |
Total Unrealized Losses | $ (99) | (652) |
Certificates of Deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
12 Months or More Fair Value | 1,195 | |
12 Months or More Unrealized Losses | (55) | |
Total Fair Value | 1,195 | |
Total Unrealized Losses | (55) | |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 384 | |
Less Than 12 Months Unrealized Losses | (2) | |
12 Months or More Fair Value | 3,128 | |
12 Months or More Unrealized Losses | (53) | |
Total Fair Value | 3,512 | |
Total Unrealized Losses | $ (55) |
Available for Sale Securities_5
Available for Sale Securities (Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, amortized cost | $ 1,297 | |
Due in one year or less, fair value | 1,306 | |
Due after one year through 5 years, amortized cost | 2,843 | |
Due after one year through 5 years, fair value | 2,890 | |
Due after 5 years through 10 years, amortized cost | 4,395 | |
Due after 5 years through 10 years, fair value | 4,418 | |
Due after 10 years, amortized cost | 4,079 | |
Due after 10 years, fair value | 4,083 | |
Subtotal, amortized cost | 12,614 | |
Subtotal, fair value | 12,697 | |
Amortized cost | 47,709 | $ 44,564 |
Estimated fair value | 48,179 | 43,751 |
Collateralized Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 35,095 | 29,164 |
Estimated fair value | $ 35,482 | $ 28,536 |
Available for Sale Securities_6
Available for Sale Securities (Gain (Loss) From Securities Available for Sale) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available for Sale Securities | ||
Proceeds from sale of securities | $ 4,836 | $ 12,874 |
Gross gains | 21 | 35 |
Gross losses | $ (25) | $ (239) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Deposit Liabilities Reclassified as Loans Receivable | $ 6 | $ 7 | |
Loans and Leases Receivable, Commitments to Purchase or Sell | 0 | 0 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | |
Financing Receivable Modifications Specific Reserves | $ 158 | $ 158 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | item | 0 | 0 | |
Loans and Leases Receivable, Allowance, Ending Balance | $ 2,264 | $ 2,118 | $ 1,800 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 11,083 | 25,794 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 77 | 190 | |
Credit Impaired [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance, Total | 0 | 0 | |
Non-Credit Impaired [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance, Total | 11,160 | 25,984 | |
Residential Real Estate and Consumer [Member] | |||
Loans and Leases Receivable, Allowance, Ending Balance | 1,013 | 1,178 | $ 1,140 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 6,535 | 9,164 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Non-Credit Impaired [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance, Total | $ 6,580 | $ 9,269 |
Loans (Major Classifications of
Loans (Major Classifications of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subtotal loans | $ 191,742 | $ 200,898 | |
Deferred loan fees | (187) | (86) | |
Allowance for loan losses | (2,264) | (2,118) | $ (1,800) |
Net loans | 189,291 | 198,694 | |
Commercial Portfolio Segment [Member] | |||
Subtotal loans | 100,524 | 90,368 | |
Allowance for loan losses | (1,251) | (940) | (660) |
Commercial Portfolio Segment [Member] | Development [Member] | |||
Subtotal loans | 18,222 | 7,801 | |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | |||
Subtotal loans | 68,621 | 69,425 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Subtotal loans | 13,681 | 13,142 | |
Residential Real Estate and Consumer [Member] | |||
Subtotal loans | 91,218 | 110,530 | |
Allowance for loan losses | (1,013) | (1,178) | $ (1,140) |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | |||
Subtotal loans | 29,380 | 41,018 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | |||
Subtotal loans | 28,077 | 32,312 | |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | |||
Subtotal loans | 29,531 | 34,467 | |
Residential Real Estate and Consumer [Member] | Consumer [Member] | |||
Subtotal loans | $ 4,230 | $ 2,733 |
Loans (Allowance for Loan Losse
Loans (Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning balance | $ 2,118 | $ 1,800 | ||
Provision for loan losses | 201 | 513 | ||
Loans charged off | (58) | (196) | ||
Recoveries of loans previously charged off | 3 | 1 | ||
Total ending allowance balance | 2,264 | 2,118 | ||
Loans, individually evaluated for impairment | $ 2,255 | $ 1,556 | ||
Loans, collectively evaluated for impairment | 189,487 | 199,342 | ||
Total loans | 191,742 | 200,898 | ||
Allowance for loan losses, individually evaluated for impairment | 235 | |||
Allowance for loan losses, collectively evaluated for impairment | 2,029 | 2,118 | ||
Total allowance for loan losses | 2,264 | 2,118 | 2,264 | 2,118 |
Commercial Portfolio Segment [Member] | ||||
Beginning balance | 940 | 660 | ||
Provision for loan losses | 311 | 304 | ||
Loans charged off | (24) | |||
Recoveries of loans previously charged off | ||||
Total ending allowance balance | 1,251 | 940 | ||
Loans, individually evaluated for impairment | 798 | 87 | ||
Loans, collectively evaluated for impairment | 99,726 | 90,281 | ||
Total loans | 100,524 | 90,368 | ||
Allowance for loan losses, individually evaluated for impairment | 158 | |||
Allowance for loan losses, collectively evaluated for impairment | 1,093 | 940 | ||
Total allowance for loan losses | 1,251 | 940 | 1,251 | 940 |
Residential Real Estate and Consumer [Member] | ||||
Beginning balance | 1,178 | 1,140 | ||
Provision for loan losses | (110) | 209 | ||
Loans charged off | (58) | (172) | ||
Recoveries of loans previously charged off | 3 | 1 | ||
Total ending allowance balance | 1,013 | 1,178 | ||
Loans, individually evaluated for impairment | 1,457 | 1,469 | ||
Loans, collectively evaluated for impairment | 89,761 | 109,061 | ||
Total loans | 91,218 | 110,530 | ||
Allowance for loan losses, individually evaluated for impairment | 77 | |||
Allowance for loan losses, collectively evaluated for impairment | 936 | 1,178 | ||
Total allowance for loan losses | $ 1,013 | $ 1,178 | $ 1,013 | $ 1,178 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Principal balance with related allowance | $ 1,144 | |
Recorded investment with related allowance | 1,132 | |
Related allowance | 235 | |
Average investment with related allowance | 1,152 | |
Interest recognized with related allowance | 19 | |
Principal balance with no related allowance | 1,225 | $ 1,593 |
Recorded investment with no related allowance | 1,123 | 1,556 |
Average investment with no related allowance | 1,160 | 1,590 |
Interest recognized with no related allowance | 10 | 31 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 2,369 | |
Impaired Financing Receivable, Recorded Investment, Total | 2,255 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 2,312 | |
Impaired Financing Receivable, Interest Income, Accrual Method, Total | 29 | |
Commercial and Industrial [Member] | Commercial Portfolio Segment [Member] | ||
Principal balance with related allowance | 729 | |
Recorded investment with related allowance | 729 | |
Related allowance | 158 | |
Average investment with related allowance | 740 | |
Interest recognized with related allowance | 19 | |
Principal balance with no related allowance | 73 | 89 |
Recorded investment with no related allowance | 69 | 87 |
Average investment with no related allowance | 77 | 93 |
Interest recognized with no related allowance | 5 | 5 |
One-to-Four Family Owner-occupied [Member] | Residential Real Estate and Consumer [Member] | ||
Principal balance with no related allowance | 795 | 1,142 |
Recorded investment with no related allowance | 744 | 1,120 |
Average investment with no related allowance | 754 | 1,137 |
Interest recognized with no related allowance | 5 | 26 |
One-to-Four Family Investor-owned [Member] | Residential Real Estate and Consumer [Member] | ||
Principal balance with related allowance | 415 | |
Recorded investment with related allowance | 403 | |
Related allowance | 77 | |
Average investment with related allowance | 412 | |
Principal balance with no related allowance | 243 | 248 |
Recorded investment with no related allowance | 221 | 241 |
Average investment with no related allowance | 231 | 246 |
Consumer [Member] | Residential Real Estate and Consumer [Member] | ||
Principal balance with no related allowance | 114 | 114 |
Recorded investment with no related allowance | 89 | 108 |
Average investment with no related allowance | $ 98 | $ 114 |
Loans (Credit Quality Indicator
Loans (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total loans for credit quality indicators | $ 158,132 | $ 157,147 |
Pass [Member] | ||
Total loans for credit quality indicators | 154,130 | 155,373 |
Special Mention [Member] | ||
Total loans for credit quality indicators | 3,364 | 1,353 |
Substandard [Member] | ||
Total loans for credit quality indicators | 638 | 421 |
Commercial Portfolio Segment [Member] | Development [Member] | ||
Total loans for credit quality indicators | 18,222 | 7,801 |
Commercial Portfolio Segment [Member] | Development [Member] | Pass [Member] | ||
Total loans for credit quality indicators | 18,222 | 7,801 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Total loans for credit quality indicators | 68,621 | 69,425 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Pass [Member] | ||
Total loans for credit quality indicators | 68,036 | 69,425 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators | 585 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Total loans for credit quality indicators | 13,681 | 13,142 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Total loans for credit quality indicators | 10,888 | 13,122 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators | 2,779 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Total loans for credit quality indicators | 14 | 20 |
Residential Real Estate and Consumer [Member] | ||
Total loans for credit quality indicators | 33,610 | 43,751 |
Residential Real Estate and Consumer [Member] | Performing Financial Instruments [Member] | ||
Total loans for credit quality indicators | 32,777 | 42,544 |
Residential Real Estate and Consumer [Member] | Nonperforming Financial Instruments [Member] | ||
Total loans for credit quality indicators | 833 | 1,207 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Total loans for credit quality indicators | 29,380 | 41,018 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Performing Financial Instruments [Member] | ||
Total loans for credit quality indicators | 28,636 | 39,919 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Nonperforming Financial Instruments [Member] | ||
Total loans for credit quality indicators | 744 | 1,099 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | ||
Total loans for credit quality indicators | 4,230 | 2,733 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Performing Financial Instruments [Member] | ||
Total loans for credit quality indicators | 4,141 | 2,625 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | Nonperforming Financial Instruments [Member] | ||
Total loans for credit quality indicators | 89 | 108 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Total loans for credit quality indicators | 28,077 | 32,312 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Pass [Member] | ||
Total loans for credit quality indicators | 27,453 | 30,558 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Special Mention [Member] | ||
Total loans for credit quality indicators | 1,353 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Substandard [Member] | ||
Total loans for credit quality indicators | 624 | 401 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | ||
Total loans for credit quality indicators | 29,531 | 34,467 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Pass [Member] | ||
Total loans for credit quality indicators | $ 29,531 | $ 34,467 |
Loans (Loans Aging Information)
Loans (Loans Aging Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current loans | $ 191,396 | $ 200,584 |
Total loans | 191,742 | 200,898 |
Nonaccrual loans | 1,070 | 720 |
Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Loans past due | 314 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 346 | |
Commercial Portfolio Segment [Member] | ||
Total loans | 100,524 | 90,368 |
Commercial Portfolio Segment [Member] | Development [Member] | ||
Current loans | 18,222 | 7,801 |
Total loans | 18,222 | 7,801 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Current loans | 68,621 | 69,425 |
Total loans | 68,621 | 69,425 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Current loans | 13,681 | 13,076 |
Total loans | 13,681 | 13,142 |
Nonaccrual loans | 14 | 20 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Loans past due | 66 | |
Residential Real Estate and Consumer [Member] | ||
Total loans | 91,218 | 110,530 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Current loans | 29,034 | 41,013 |
Total loans | 29,380 | 41,018 |
Nonaccrual loans | 346 | 365 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Loans past due | 5 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 346 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Current loans | 28,077 | 32,069 |
Total loans | 28,077 | 32,312 |
Nonaccrual loans | 624 | 241 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Loans past due | 243 | |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | ||
Current loans | 29,531 | 34,467 |
Total loans | 29,531 | 34,467 |
Residential Real Estate and Consumer [Member] | Consumer [Member] | ||
Current loans | 4,230 | 2,733 |
Total loans | 4,230 | 2,733 |
Nonaccrual loans | $ 86 | $ 94 |
Loans (Nonaccrual Loans) (Detai
Loans (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total nonaccrual loans | $ 1,070 | $ 720 |
Nonaccrual loans, Other Than Troubled Debt Restructurings [Member] | ||
Total nonaccrual loans | 416 | 20 |
Nonaccrual Loans, Troubled Debt Restructurings [Member] | ||
Total nonaccrual loans | 654 | 700 |
Accruing Loans, Troubled Debt Restructurings [Member] | ||
Restructured loans, accruing | $ 1,185 | $ 501 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructuring) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Number of Modifications | 5 | 4 |
Pre-Modification Investment | $ 1,014 | $ 572 |
Post- Modification Investment | $ 1,014 | $ 572 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Number of Modifications | 3 | 2 |
Pre-Modification Investment | $ 285 | $ 302 |
Post- Modification Investment | $ 285 | $ 302 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Number of Modifications | 1 | |
Pre-Modification Investment | $ 250 | |
Post- Modification Investment | $ 250 | |
Residential Real Estate and Consumer [Member] | Consumer [Member] | ||
Number of Modifications | 1 | |
Pre-Modification Investment | $ 20 | |
Post- Modification Investment | $ 20 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Number of Modifications | 2 | |
Pre-Modification Investment | $ 729 | |
Post- Modification Investment | $ 729 |
Loans (Purchased Loans) (Detail
Loans (Purchased Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value of Purchased Loans | $ 11,083 | $ 25,794 |
Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 0 | 0 |
Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 11,160 | 25,984 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Carrying Value of Purchased Loans | 7,673 | |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 7,687 | |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | ||
Carrying Value of Purchased Loans | 4,548 | 5,014 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Owner-occupied [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | 4,580 | 5,075 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Carrying Value of Purchased Loans | 6,535 | 9,164 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | $ 6,580 | 9,269 |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | ||
Carrying Value of Purchased Loans | 3,943 | |
Residential Real Estate and Consumer [Member] | Multifamily Loan [Member] | Non-Credit Impaired [Member] | ||
Contractually Required Payments Receivable | $ 3,953 |
Loans (Accretable Yield for Pur
Loans (Accretable Yield for Purchased Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans | ||
Beginning Balance | $ 190 | $ 334 |
Additions | ||
Accretion | (113) | (144) |
Ending Balance | $ 77 | $ 190 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017item | |
Premises and Equipment | |||
Depreciation | $ 346 | $ 342 | |
Number of buildings sold and leased back | item | 2 | ||
Sale lease back transaction, lease term of contract | 10 years | ||
Sale lease back transaction, lease renewal term | 5 years | ||
Sale leaseback transaction, rent expense | $ 167 | $ 165 |
Premises and Equipment (Premise
Premises and Equipment (Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Premises and equipment, gross | $ 6,953 | $ 6,893 |
Less: Accumulated depreciation | 2,146 | 1,836 |
Premises and equipment, net | 4,807 | 5,057 |
Land [Member] | ||
Premises and equipment, gross | 479 | 479 |
Building [Member] | ||
Premises and equipment, gross | 4,929 | 4,929 |
Leasehold Improvements [Member] | ||
Premises and equipment, gross | 162 | 153 |
Furniture and Fixtures [Member] | ||
Premises and equipment, gross | $ 1,383 | $ 1,332 |
Premises and Equipment (Rent Co
Premises and Equipment (Rent Commitments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Premises and Equipment | |
2020 | $ 153 |
2021 | 144 |
2022 | 146 |
2023 | 148 |
2024 | 150 |
Thereafter | 437 |
Total | $ 1,178 |
Premises and Equipment (Minimum
Premises and Equipment (Minimum Future Rents Receivable) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Premises and Equipment | |
2020 | $ 99 |
2021 | 101 |
2022 | 103 |
2023 | 106 |
2024 | 44 |
Total | $ 453 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
Time deposits, at or above FDIC insurance limit | $ 21,569 | $ 30,590 |
Deposits (Composition of Deposi
Deposits (Composition of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
Non-interest bearing checking | $ 20,733 | $ 22,763 |
Interest bearing checking | 6,941 | 5,424 |
Money market | 46,673 | 41,910 |
Statement savings accounts | 12,359 | 13,773 |
Health savings accounts | 10,670 | 11,197 |
Deposits held in escrow for stock subscriptions | 52,648 | |
Certificates of deposit | 67,228 | 88,138 |
Total | $ 217,252 | $ 183,205 |
Deposits (Maturities of Certifi
Deposits (Maturities of Certificates of Deposit) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits | |
2020 | $ 44,462 |
2021 | 17,354 |
2022 | 2,374 |
2023 | 2,046 |
2024 | 992 |
Total | $ 67,228 |
FHLB Advances (Narrative) (Deta
FHLB Advances (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
FHLB Advances | ||
FHLB advances, general debt obligations, Disclosures, Collateral Pledged | $ 147,039 | $ 158,923 |
Amount secured by FHLB stock | 574 | $ 739 |
FHLB advances, general debt obligations, amount of available unused funds | 3,194 | |
Federal funds line of credit not withdrawn | $ 7,000 |
FHLB Advances (FHLB Advances) (
FHLB Advances (FHLB Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed rate, fixed term advances, amount | $ 7,500 | $ 11,750 |
Fixed term advances with floating spread, amount | 4,000 | 6,000 |
Total FHLB advances | $ 11,500 | $ 17,750 |
Minimum [Member] | ||
Fixed rate advances, weighted average rate | 1.62% | 1.42% |
Fixed term advances with floating spread | 1.69% | 1.54% |
Maximum [Member] | ||
Fixed rate advances, weighted average rate | 2.70% | 2.70% |
Fixed term advances with floating spread | 2.09% | 2.05% |
FHLB Advances (Summary of Sched
FHLB Advances (Summary of Scheduled Maturities of Fixed Term FHLB Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed rate advances, amount, 2020 | $ 6,000 | |
Adjustable rate advances, amount, 2020 | 2,000 | |
2020 | 8,000 | |
Adjustable rate advances, amount, 2021 | 2,000 | |
2021 | 2,000 | |
Fixed rate advances, amount, 2022 | 1,500 | |
2022 | 1,500 | |
Federal Home Loan Bank, Advances, Maturities Summary, Fixed Rate, Total | 7,500 | $ 11,750 |
Federal Home Loan Bank, Advances, Maturities Summary, Floating Rate, Total | 4,000 | 6,000 |
Total FHLB advances | $ 11,500 | $ 17,750 |
Weighted Average [Member] | ||
Fixed rate advances, weighted average rate, 2020 | 2.34% | |
Adjustable rate advances, weighted average rate, 2020 | 1.69% | |
Adjustable rate advances, weighted average rate, 2021 | 2.09% | |
Fixed rate advances, weighted average rate, 2022 | 1.71% | |
Fixed rate advances, weighted average rate | 2.21% | |
Adjustable rate advances, weighted average rate, Total | 1.89% |
401(k) Plan (Narrative) (Detail
401(k) Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
401(K) Plan | ||
Defined contribution plan, employer matching contribution percentage | 100.00% | |
Defined contribution plan, maximum annual contributions per employee, percent | 4.00% | |
Defined contribution plan, cost | $ 170 | $ 154 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | ||
Federal | $ 389 | $ 114 |
State | 155 | 83 |
Total Current Taxes | 544 | 197 |
Federal | (38) | 107 |
State | (4) | 14 |
Total Deferred Income Taxes | (42) | 121 |
Total Provision for Income Taxes | $ 502 | $ 318 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes | ||
Allowance for loan losses | $ 617 | $ 577 |
Deferred compensation | 121 | 121 |
Non-accrual interest | 5 | 18 |
Purchase accounting | 7 | 18 |
Equity compensation | 23 | 4 |
Unrealized loss on available for sale securities | 219 | |
Charitable contribution carryforward | 132 | 191 |
Other | 46 | 10 |
Deferred Tax Assets | 951 | 1,158 |
Depreciation and amortization | (50) | (73) |
FHLB stock | (23) | (30) |
Other | (127) | |
Deferred Tax Liabilities | (200) | (103) |
Net Deferred Tax Asset | $ 751 | $ 1,055 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory to Effective Rates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | ||
Federal income taxes at statutory rate, amount | $ 432 | $ 289 |
Federal income taxes at statutory rate, percentage | 21.00% | 21.00% |
Tax exempt interest on municipal obligations, amount | $ (5) | $ (10) |
Tax exempt interest on municipal obligations, percentage | (0.20%) | (0.70%) |
State income taxes, net of federal income tax benefit, amount | $ 122 | $ 75 |
State income taxes, net of federal income tax benefit, percentage | 5.90% | 5.50% |
Increase in CSV of life insurance, amount | $ (46) | $ (41) |
Increase in CSV of life insurance, percentage | (2.20%) | (3.00%) |
Other, amount | $ (1) | $ 5 |
Other, percentage | (0.10%) | 0.30% |
Total Provision for Income Taxes | $ 502 | $ 318 |
Provision for income taxes, percentage | 24.40% | 23.10% |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies | ||
Contingent liability related to loans sold | $ 7,679 | $ 5,370 |
Contingent liability recourse provisions expiry period | 4 months | 4 months |
Commitments and Contingencies_3
Commitments and Contingencies (Contract Amounts of Credit-related Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Unused Lines of Credit, Fixed [Member] | ||
Contract amounts of credit-related financial instruments | $ 14,902 | $ 7,467 |
Unused Lines of Credit, Variable [Member] | ||
Contract amounts of credit-related financial instruments | 3,770 | 11,307 |
Undisbursed Portion of Loan Proceeds, Fixed [Member] | ||
Contract amounts of credit-related financial instruments | 2,194 | 5,890 |
Standby Letters of Credit, Variable [Member] | ||
Contract amounts of credit-related financial instruments | $ 993 | $ 1,277 |
Related-party Transactions (Nar
Related-party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related party deposit liabilities | $ 1,546 | $ 3,467 |
Lease for Office Space with Related Party [Member] | ||
Payments for rent | 28 | 28 |
Law Firm, Directors [Member] | Services of Law Firm [Member] | ||
Related party transaction, amounts of transaction | $ 6 | $ 11 |
Related-party Transactions (Sum
Related-party Transactions (Summary of Loans to Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related-party Transactions | ||
Beginning balance | $ 6,825 | $ 6,697 |
New loans | 1,641 | 2,121 |
Less: Participations sold | (4,779) | (310) |
Repayments | (72) | (1,683) |
Ending balance | $ 3,615 | $ 6,825 |
Foreclosed Assets (Narrative) (
Foreclosed Assets (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Foreclosed Assets Disclosure [Abstract] | ||
Repossessed assets, total | $ 84 | $ 69 |
Mortgage loans in process of foreclosure, amount | $ 347 | $ 0 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Impaired financing receivable, with related allowance, recorded investment | $ 1,132 | |
Impaired financing receivable, related allowance | 235 | |
Foreclosed asset, fair value | 84 | $ 69 |
Residential Real Estate and Consumer [Member] | One-to-Four Family Investor-owned [Member] | ||
Impaired financing receivable, with related allowance, recorded investment | 403 | |
Loans, fair value | 897 | |
Impaired financing receivable, related allowance | $ 77 |
Fair Value (Fair Value of Asset
Fair Value (Fair Value of Assets on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale securities | $ 48,179 | $ 43,751 |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities | 48,179 | 43,751 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 48,179 | 43,751 |
Fair Value, Measurements, Recurring [Member] | US Government Corporations and Agencies Securities [Member] | ||
Available for sale securities | 958 | 1,307 |
Fair Value, Measurements, Recurring [Member] | US Government Corporations and Agencies Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 958 | 1,307 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Available for sale securities | 8,605 | 8,295 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 8,605 | 8,295 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Available for sale securities | 35,482 | 28,536 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 35,482 | 28,536 |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||
Available for sale securities | 1,017 | 1,446 |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 1,017 | 1,446 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | 2,117 | 4,167 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | $ 2,117 | $ 4,167 |
Fair Value (Fair Value of Ass_2
Fair Value (Fair Value of Assets on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Foreclosed asset, fair value | $ 84 | $ 69 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Loans, fair value | 897 | |
Foreclosed asset, fair value | 84 | 69 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Foreclosed asset, fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Foreclosed asset, fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans, fair value | 897 | |
Foreclosed asset, fair value | $ 84 | $ 69 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Foreclosed assets | $ 84 | $ 69 |
Measurement Input, Discount Rate [Member] | Valuation, Market and Income Approach [Member] | ||
Impaired loans | 897 | |
Foreclosed assets | $ 84 | $ 69 |
Measurement Input, Discount Rate [Member] | Valuation, Market and Income Approach [Member] | Minimum [Member] | ||
Impaired loans, measurement input | 10 | |
Foreclosed assets, measurement input | 10 | 10 |
Measurement Input, Discount Rate [Member] | Valuation, Market and Income Approach [Member] | Maximum [Member] | ||
Impaired loans, measurement input | 20 | |
Foreclosed assets, measurement input | 20 | 20 |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated fair value | $ 48,179 | $ 43,751 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | 39,377 | 4,488 |
Estimated fair value | 48,179 | 43,751 |
Loans held for sale | 200 | 679 |
Loans | 189,291 | 198,694 |
Accrued interest receivable | 725 | 768 |
Cash value of life insurance | 7,068 | 7,007 |
Other equity investments | 780 | 739 |
Deposits | 217,252 | 183,205 |
Advance payments by borrowers for taxes and insurance | 46 | 55 |
FHLB advances | 11,500 | 17,750 |
Accrued interest payable | 51 | 70 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 39,377 | 4,488 |
Accrued interest receivable | 725 | 768 |
Deposits | 150,024 | 95,067 |
Advance payments by borrowers for taxes and insurance | 46 | 55 |
Accrued interest payable | 51 | 70 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Estimated fair value | 48,179 | 43,751 |
Loans held for sale | 200 | 679 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans | 190,561 | 199,048 |
Cash value of life insurance | 7,068 | 7,007 |
Other equity investments | 780 | 739 |
Deposits | 67,391 | 87,531 |
FHLB advances | $ 11,509 | $ 17,505 |
Equity and Regulatory Matters_2
Equity and Regulatory Matters (Narrative) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Equity and Regulatory Matters | ||
Common Equity, Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Asset | 6.50% | 6.50% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Equity and Regulatory Matters_3
Equity and Regulatory Matters (Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Equity and Regulatory Matters | ||
Tier 1 capital (to average assets) | $ 50,446 | $ 48,502 |
Tier 1 capital (to average assets), ratio | 19.40% | 18.40% |
Tier 1 capital (to average assets), for capital adequacy | $ 10,400 | $ 10,542 |
Tier 1 capital (to average assets), for capital adequacy, ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), to be capitalized | $ 13,000 | $ 13,178 |
Tier 1 capital (to average assets), to be capitalized, ratio | 5.00% | 5.00% |
Common Equity Tier 1 capital (to risk-weighted assets) | $ 50,446 | $ 48,502 |
Common Equity Tier 1 capital (to risk-weighted assets), ratio | 23.70% | 23.70% |
Common Equity Tier 1 capital (to risk-weighted assets), for capital adequacy | $ 9,591 | $ 9,209 |
Common Equity Tier 1 capital (to risk-weighted assets), for capital adequacy, ratio | 4.50% | 4.50% |
Common Equity Tier 1 capital (to risk-weighted assets), to be capitalized | $ 13,854 | $ 13,302 |
Common Equity Tier 1 capital (to risk-weighted assets), to be capitalized, ratio | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets) | $ 50,446 | $ 48,502 |
Tier 1 capital (to risk-weighted assets), ratio | 23.70% | 23.70% |
Tier 1 capital (to risk-weighted assets), for capital adequacy | $ 12,788 | $ 12,279 |
Tier 1 capital (to risk-weighted assets), for capital adequacy, ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets), to be capitalized | $ 17,051 | $ 16,372 |
Tier 1 capital (to risk-weighted assets), to be capitalized, ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets) | $ 52,710 | $ 50,620 |
Total capital (to risk-weighted assets), ratio | 24.70% | 24.70% |
Total capital (to risk-weighted assets), for capital adequacy | $ 17,051 | $ 16,372 |
Total capital (to risk-weighted assets), for capital adequacy, ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), to be capitalized | $ 21,313 | $ 20,465 |
Total capital (to risk-weighted assets), to be capitalized, ratio | 10.00% | 10.00% |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets | ||
Core deposit premium intangible assets, gross carrying amount | $ 161 | $ 161 |
Core deposit premium intangible assets, accumulated amortization | 90 | 74 |
Amortization of intangible assets | $ 16 | $ 16 |
Intangible Assets (Projections
Intangible Assets (Projections of Amortization Expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Intangible Assets | |
2020 | $ 16 |
2021 | 16 |
2022 | 16 |
2023 | 16 |
2024 | $ 7 |
Deferred Compensation (Narrativ
Deferred Compensation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred compensation liability | $ 446 | $ 443 |
Deferred compensation arrangement with individual, compensation expense | 53 | 52 |
Cash surrender value of life insurance | 7,068 | $ 7,007 |
Executive Officer [Member] | ||
Bank owned life insurance | 85 | |
Cash surrender value of life insurance | $ 259 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Ownership Plan | ||
Employee Stock Ownership Plan (ESOP), number of committed-to-be-released shares | 12,960 | 12,960 |
Average fair value of per share | $ 10.62 | $ 11.03 |
Employee Stock Ownership Plan (ESOP), Compensation expense | $ 138 | $ 143 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan (Summary of ESOP Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Employee Stock Ownership Plan | ||
Shares allocated to active participants (in shares) | 15,907 | 2,947 |
Shares committed to be released and allocated to participants (in shares) | 12,960 | 12,960 |
Total unallocated shares (in shares) | 230,343 | 243,303 |
Total ESOP shares (in shares) | 259,210 | 259,210 |
Fair value of unallocated shares (based on $11.55 and $10.03 share price at December 31, 2019 and 2018, respectively) | $ 2,660 | $ 2,440 |
Share price (in dollars per share) | $ 11.55 | $ 10.03 |
Share-based Compensation Plan_2
Share-based Compensation Plans (Narrative) (Details) - The 2018 Equity Incentive Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Nov. 30, 2018 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1.4 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 129,605 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 35,363 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Restricted Stock [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 324,012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 101,923 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Share-based Compensation Plan_3
Share-based Compensation Plans (Impact of Share-based Payment Plans in Financial Statements) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of share-based payment plans | $ 338,000 | $ 18,000 |
Amount of related income tax benefit recognized in income | 91,000 | 5,000 |
Restricted Stock [Member] | ||
Cost of share-based payment plans | 196,000 | 11,000 |
Employee Stock Option [Member] | ||
Cost of share-based payment plans | $ 142,000 | $ 7,000 |
Share-based Compensation Plan_4
Share-based Compensation Plans (Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Plans | ||
Options outstanding, number of options (in shares) | 192,089 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 10.81 | |
Granted, number of options (in shares) | 30,000 | 192,089 |
Granted, weighted average exercise price (in dollars per share) | $ 10.64 | $ 10.81 |
Exercised, number of options (in shares) | ||
Exercised, weighted average exercise price (in dollars per share) | ||
Expired or canceled, number of options (in shares) | ||
Expired or canceled, weighted average exercise price (in dollars per share) | ||
Forfeited, number of options (in shares) | ||
Forfeited, weighted average exercise price (in dollars per share) | ||
Options outstanding, number of options (in shares) | 222,089 | 192,089 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 10.79 | $ 10.81 |
Options outstanding, weighted average remaining contractual term (Year) | 9 years 4 days | 9 years 11 months 12 days |
Options outstanding, Aggregate intrinsic value | $ 169,446 | |
Options exercisable, number of options (in shares) | 38,414 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 10.81 | |
Options outstanding, weighted average remaining contractual term, exercisable (Year) | 8 years 11 months 12 days | |
Options outstanding, aggregate intrinsic value, exercisable | $ 28,426 |
Share-based Compensation Plan_5
Share-based Compensation Plans (Schedule of Nonvested Options Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||
Nonvested options outstanding | 192,089 | |
Granted | 30,000 | 192,089 |
Vested | (38,414) | |
Forfeited | ||
Nonvested options outstanding | 183,675 | 192,089 |
Weighted Average Grant Date Fair Value | ||
Nonvested options outstanding | $ 3.40 | |
Granted | 2.90 | 3.40 |
Vested | 3.40 | |
Forfeited | ||
Nonvested options outstanding | $ 3.32 | $ 3.40 |
Share-based Compensation Plan_6
Share-based Compensation Plans (Valuation Assumptions were Used for Options Granted) (Details) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Share-based Compensation Plans | |
Risk-free interest rate | 2.30% |
Expected volatility | 18.38% |
Expected dividend yield | 0.00% |
Expected life of options (years) (Year) | 7 years 6 months |
Weighted average fair value per option of options granted during the year (in dollars per share) | $ 2.90 |
Share-based Compensation Plan_7
Share-based Compensation Plans (Summary of Changes in Restricted Shares) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Shares outstanding, number of shares (in shares) | 84,242 | |
Shares outstanding, weighted average grant date fair value (in dollars per share) | $ 10.82 | |
Granted, number of shares (in shares) | 10,000 | 84,242 |
Granted, weighted average grant date fair value (in dollars per share) | $ 10.64 | $ 10.82 |
Vested, number of shares (in shares) | (16,842) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 10.82 | |
Forfeited, number of shares (in shares) | ||
Forfeited, weighted average grant date fair value (in dollars per share) | ||
Shares outstanding, number of shares (in shares) | 77,400 | 84,242 |
Shares outstanding, weighted average grant date fair value (in dollars per share) | $ 10.79 | $ 10.82 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | Jan. 16, 2020 | Dec. 31, 2019 |
FFBW, MHC [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of shares held by Mutual Holding Company | $ 55.4 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Stock issued during period, shares | 4,268,570 | |
Issuance of common stock, net of issuance costs | $ 41,500,000 | |
Sale of stock, price per share | $ 10 | |
Subsequent Event [Member] | FFBW, MHC [Member] | ||
Subsequent Event [Line Items] | ||
Stock issued during period, shares | 3,436,430 |