Cover
Cover | 12 Months Ended |
Dec. 31, 2019 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | Affinity Bancshares, Inc. |
Entity Central Index Key | 0001823406 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 2,708,958 | $ 4,440,684 |
Interest-bearing deposits in banks | 23,321,793 | 3,413,154 |
Federal funds sold | 11,589,000 | 9,187,000 |
Securities available for sale | 16,354,872 | 17,393,729 |
Restricted equity securities, at cost | 1,892,300 | 2,080,600 |
Loans, net of unearned income | 260,853,419 | 239,058,580 |
Less allowance for loan losses | 2,816,182 | 2,849,182 |
Loans, net | 258,037,237 | 236,209,398 |
Premises and equipment, net | 1,089,825 | 830,733 |
Cash surrender value of life insurance | 7,451,381 | 7,250,234 |
Foreclosed assets | 800,300 | 1,626,500 |
Deferred tax assets, net | 2,556,795 | 3,282,664 |
Other assets | 1,834,145 | 1,084,348 |
Total assets | 327,636,606 | 286,799,044 |
Deposits: | ||
Noninterest-bearing | 67,171,224 | 67,777,110 |
Interest-bearing | 185,887,843 | 141,758,238 |
Deposits | 253,059,067 | 209,535,348 |
Securities sold under repurchase agreements | 6,241,864 | 6,013,744 |
Other borrowings | 33,000,000 | 38,000,000 |
Subordinated debentures | 1,657,000 | 1,657,000 |
Other liabilities | 1,658,184 | 1,878,052 |
Total liabilities | 295,616,115 | 257,084,144 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Series A Preferred stock, no par value; 7,500 shares authorized, 5,891 issued and outstanding | 5,891,000 | 5,891,000 |
Common stock, no par value; 30,000,000 shares authorized, 5,024,374 issued | 33,974,579 | 33,974,579 |
Accumulated deficit | (7,962,661) | (9,812,761) |
Accumulated other comprehensive income (loss) | 167,567 | (287,924) |
Less cost of treasury stock (3,571 shares) | (49,994) | (49,994) |
Total stockholders' equity | 32,020,491 | 29,714,900 |
Total liabilities and stockholders' equity | $ 327,636,606 | $ 286,799,044 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Series A Preferred stock, par value | $ 0 | $ 0 |
Series A Preferred stock, shares authorized | 7,500 | 7,500 |
Series A Preferred stock, shares issued | 5,891 | 5,891 |
Series A Preferred stock, shares outstanding | 5,891 | 5,891 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 5,024,374 | 5,024,374 |
Treasury stock shares | 3,571 | 3,571 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | ||
Loans, including fees | $ 12,218,572 | $ 10,553,260 |
Taxable securities | 689,570 | 543,728 |
Federal funds sold | 402,161 | 334,702 |
Interest-bearing deposits in banks | 330,710 | 149,900 |
Total interest income | 13,641,013 | 11,581,590 |
Interest expense: | ||
Deposits | 3,161,127 | 1,728,403 |
Securities sold under repurchase agreements, other borrowings, and subordinated debentures | 980,244 | 822,083 |
Total interest expense | 4,141,371 | 2,550,486 |
Net interest income | 9,499,642 | 9,031,104 |
Provision for loan losses | 82,500 | |
Net interest income after provision for loan losses | 9,417,142 | 9,031,104 |
Other income: | ||
Service charges on deposit accounts | 67,640 | 69,163 |
Gain on sale of securities available for sale | 0 | 558,750 |
Other operating income | 665,170 | 341,104 |
Total other income | 732,810 | 969,017 |
Other expenses: | ||
Salaries and employee benefits | 3,964,976 | 3,890,113 |
Occupancy and equipment expenses | 731,697 | 720,625 |
Foreclosed assets, net | 392,760 | 111,383 |
Other operating expenses | 2,640,959 | 2,048,579 |
Total other expenses | 7,730,392 | 6,770,700 |
Income before tax expense | 2,419,560 | 3,229,421 |
Income tax expense | 569,460 | 823,285 |
Net income | $ 1,850,100 | $ 2,406,136 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,850,100 | $ 2,406,136 |
Other comprehensive income (loss): | ||
Net unrealized holding gains on securities available for sale arising during period, net of tax of $154,269 and $70,974, respectively | 455,491 | 209,557 |
Reclassification adjustment for gains on sale of securities realized in net income, net of tax of $0 and $141,149, respectively | (417,601) | |
Other comprehensive income (loss) | 455,491 | (208,044) |
Comprehensive income | $ 2,305,591 | $ 2,198,092 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized gain on available for sale securities, tax | $ 154,269 | $ 70,974 |
Reclassification adjustment from AOCI for sale of securities, tax expense | $ 0 | $ 141,149 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) | Total | Series A Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2017 | $ 27,474,226 | $ 5,891,000 | $ 33,931,997 | $ (12,218,897) | $ (79,880) | $ (49,994) |
Beginning Balance, shares at Dec. 31, 2017 | 5,891 | 5,024,374 | 3,571 | |||
Stock compensation expense | 42,582 | $ 42,582 | ||||
Net income | 2,406,136 | 2,406,136 | ||||
Other comprehensive income | (208,044) | (208,044) | ||||
Ending Balance at Dec. 31, 2018 | 29,714,900 | $ 5,891,000 | $ 33,974,579 | (9,812,761) | (287,924) | $ (49,994) |
Ending Balance, shares at Dec. 31, 2018 | 5,891 | 5,024,374 | 3,571 | |||
Net income | 1,850,100 | 1,850,100 | ||||
Other comprehensive income | 455,491 | 455,491 | ||||
Ending Balance at Dec. 31, 2019 | $ 32,020,491 | $ 5,891,000 | $ 33,974,579 | $ (7,962,661) | $ 167,567 | $ (49,994) |
Ending Balance, shares at Dec. 31, 2019 | 5,891 | 5,024,374 | 3,571 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,850,100 | $ 2,406,136 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loan loss provision | 82,500 | |
Depreciation | 185,674 | 142,538 |
Net amortization (accretion) on investments | (7,641) | 46,184 |
Gain on sale of securities available for sale | 0 | (558,750) |
(Gain) loss on sale of foreclosed assets | 264,774 | (8,655) |
Write-down of foreclosed assets | 125,900 | 112,600 |
Gain on sale of premises and equipment | (2,728) | |
Stock based compensation expense | 42,582 | |
Increase in interest receivable | (6,763) | (82,648) |
Increase in interest payable | 84,919 | 277,265 |
Deferred taxes | 569,460 | 823,285 |
Increase in cash surrender value of life insurance | (201,147) | (169,602) |
Net other operating activities | (98,731) | 877,744 |
Net cash provided by operating activities | 2,846,317 | 3,908,679 |
INVESTING ACTIVITIES | ||
Net (increase) decrease in interest-bearing deposits in banks | (19,908,639) | 11,681,537 |
Net (increase) decrease in federal funds sold | (2,402,000) | 3,568,000 |
Purchases of securities available for sale | (1,287,500) | (9,386,086) |
Proceeds from sale of securities available for sale | 1,128,750 | |
Proceeds from maturities of securities available for sale | 2,943,758 | 1,926,286 |
Purchase of restricted equity securities | (650,900) | |
Redemption of restricted equity securities | 188,300 | |
Proceeds from sale of foreclosed assets | 435,526 | 95,056 |
Net increase in loans | (21,910,339) | (33,207,503) |
Purchase of bank owned life insurance | (1,000,000) | |
Purchase of annuity contracts | (946,950) | |
Purchases of premises and equipment | (456,233) | (660,982) |
Proceeds from sale of premises and equipment | 14,195 | |
Net cash used in investing activities | (43,329,882) | (26,505,842) |
FINANCING ACTIVITIES | ||
Net increase in deposits | 43,523,719 | 7,292,495 |
Net increase in securities sold under repurchase agreements | 228,120 | 1,394,174 |
Repayment of other borrowings | (28,000,000) | (5,000,000) |
Proceeds from advances on other borrowings | 23,000,000 | 20,000,000 |
Net cash provided by financing activities | 38,751,839 | 23,686,669 |
Net increase (decrease) in cash and due from banks | (1,731,726) | 1,089,506 |
Cash and due from banks at beginning of year | 4,440,684 | 3,351,178 |
Cash and due from banks at end of year | 2,708,958 | 4,440,684 |
SUPPLEMENTAL DISCLOSURE | ||
Interest | $ 4,056,452 | $ 2,273,221 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations ABB Financial Group, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned commercial bank subsidiary, Affinity Bank (the “Bank”). The Bank is located in Atlanta, Cobb County, Georgia. The Bank provides a full range of banking services to individual and corporate customers in its primary market area of Cobb, Fulton and surrounding counties. On August 19, 2019, the shareholders of the Company approved a plan of merger and acquisition whereby Community First Bancshares, Inc. (CFB) would acquire the Company for cash. The acquisition was officially closed on January 10, 2020, and the Company was merged into CFB. Concurrent with the transaction, Affinity Bank was merged into Newton Federal Bank, a subsidiary of CFB. The balances presented in the consolidated balance sheets and related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows was well as in the notes to the consolidated financial statements are reported prior to any purchase accounting adjustments as a result of the merger transaction. Accounting principles require that assets acquired and liabilities assumed in such a transaction be measured at their fair values as of the acquisition date. No adjustment to the fair values of assets and liabilities existing as of December 31, 2019 have been reflected in these consolidated financial statements and the accompanying notes to the consolidated financial statements. Basis of Presentation and Accounting Estimates The consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany transactions and balances have been eliminated in consolidation. 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 balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed assets and deferred taxes, other-than-temporary impairments of securities, and the fair value of financial instruments. The Company has evaluated all transactions, events, and circumstances for consideration or disclosure through June 17, 2020, the date these financial statements were available to be issued, and has reflected or disclosed those items within the consolidated financial statements and related footnotes as deemed appropriate. As a result of the spread of the COVID-19 COVID-19’s COVID-19 Cash, Due From Banks, and Cash Flows For purposes of reporting cash flows, cash and due from banks includes cash on hand, cash items in process of collection, and amounts due from banks. Cash flows from loans, federal funds sold, interest-bearing deposits in banks, deposits, and securities sold under repurchase agreements are reported net. The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based on a percentage of deposits. The total of those reserve balances was approximately $2,091,000 and $2,160,000 at December 31, 2019 and 2018, respectively. The Bank has restricted cash of approximately $50,000 and $300,000 on deposit with the Federal Home Loan Bank at December 31, 2019 and 2018, respectively. Securities Securities are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from operations and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates investment securities for other-than-temporary impairment using relevant accounting guidance specifying that (a) if an entity does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income (loss). Securities purchased under resale agreements and securities sold under repurchase agreements are generally accounted for as collateralized financial transactions. They are recorded at the amount at which the securities were acquired or sold plus accrued interest. It is the Company’s policy to take possession of securities purchased under resale agreements, which are primarily U.S. Government and Government agency securities. The market value of these securities is monitored, and additional securities are obtained when deemed appropriate to ensure such transactions are adequately collateralized. The Company also monitors its exposure with respect to securities sold under repurchase agreements, and a request for the return of excess securities held by the counterparty is made when deemed appropriate. Restricted Equity Securities The Company is required to maintain an investment in capital stock of various entities. Based on redemption provisions of these entities, the stocks have no quoted market value and are carried at cost. At their discretion, these entities may declare dividends on the stocks. Management reviews for impairment based on the ultimate recoverability of the cost basis in these stocks. Restricted equity securities at December 31, 2019 and 2018 consist of Federal Home Loan Bank stock of $1,660,300 and $1,848,600, respectively, and UCB Financial Capital Trust I common shares of $232,000. Loans Loans are reported at their outstanding principal balances less net deferred fees and costs on originated loans and the allowance for loan losses. Interest income is accrued based on the outstanding principal balance. Loan origination fees, net of certain direct loan origination costs, are deferred and recognized as an adjustment of the related loan yield over the life of the loan using a method which approximates a level yield. The accrual of interest on loans is discontinued when the loan becomes ninety days past due, unless the loan is well-secured and in process of collection. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management believes that the accrued interest is recoverable through the liquidation of collateral. Interest income on nonaccrual loans is recognized on the cash-basis or cost-recovery method, until the loans are returned 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. A loan is considered impaired when it is probable, based on current information and events, the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impaired loans are measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any, and any subsequent changes are included in the allowance for loan losses. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the un-collectability The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, concentrations and current economic conditions that may affect the borrower’s ability to pay. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. In support of collateral values, the Company obtains updated valuations on non-performing Management considers the current level of allowance for loan losses adequate to absorb losses inherent in the loan portfolio. Management’s determination of the adequacy for loan losses, which is based on the factors and identification procedures described above, requires the use of judgments and estimations that may change in the future. Changes in the factors used by management to determine the adequacy of the allowance or the availability of new information could cause the allowance for loan losses to be adjusted in future periods. Restructurings When the Company grants a concession to a borrower as part of a restructured loan, the transaction may be classified as a troubled debt restructuring (“TDR”), and must be accounted for accordingly. All transactions that may be classified as a TDR must be approved by the Chief Credit Officer or the appropriate loan committee based on size of the loan and/or relationship. A troubled debt restructuring is a type of restructuring where the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession (either imposed by court order, law or agreement between the borrower and the Company) to the borrower that it would not otherwise consider. The Company is attempting to maximize its recovery of the balances of the loans through these various concessionary restructurings. Even though the borrower is experiencing financial difficulties, a debt restructuring may not be required to be recognized as a TDR if any of the following criteria are met: (1) the fair value of cash, other assets, or an equity position accepted from the borrower in full satisfaction of a debt at least equals the Company’s recorded investment in the receivable or the borrower’s carrying amount of the payable, (2) the Company reduces the effective interest rate on the debt primarily to reflect a decrease in interest rates or a change in risk to maintain a relationship with a borrower that can readily obtain funds from other sources at the current interest rate; and/or (3) the borrower refinances the old debt with new debt having an effective interest rate approximately equal to that of similar debt currently issued by non-troubled The Company may return a non-performing The modified loan terms are to be economically rational for both the borrower and the Company. The means of the repayment terms are to be reasonable and substantive. A loan to be considered for reinstatement to performing status must show all abilities to repay principal and interest for the life of the loan based on current financial condition. In addition, the loan must have a sufficient period of performance to evaluate future performance before being moved back to accrual status. This is typically six months for loans on monthly installments or twelve months for loans on quarterly or semi-annually installments. There must also be no doubt of the ultimate collectability of the restructured loan, or otherwise returning the loan to accrual status is not appropriate. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current 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—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (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 or the ability to unilaterally cause the holder to return specific assets. Foreclosed Assets Foreclosed assets acquired through or in lieu of loan foreclosure are held for sale and are initially recorded at fair value. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Costs of improvements are capitalized, whereas costs relating to holding foreclosed assets and subsequent adjustments to the value are expensed. As of December 31, 2019 and 2018, no amounts of foreclosed assets were one to four family residential properties. Advertising Costs Advertising costs are expensed as incurred and totaled $97,964 and $4,226 for the years ended December 31, 2019 and 2018, respectively. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not more-likely-than-not The income tax returns of the Company for 2016, 2017, and 2018 are subject to examination by the IRS, generally for three years after being filed. Stock Compensation Plans Stock compensation accounting guidance requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards and stock grants. Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the sum of the weighted-average number of shares of common stock outstanding and potential common shares. Potential dilutive common shares consist of Series A preferred stock and stock options and are determined using the treasury stock method. Presented below is a summary of the components used to calculate basic and diluted earnings per share: Years Ended December 31, 2019 2018 Net income $ 1,850,100 $ 2,406,136 Less cumulative preferred stock dividends (597,282 ) (597,282 ) Net income available to common stockholders $ 1,252,818 $ 1,808,854 Weighted average number of common shares outstanding 5,020,803 5,020,803 Effect of dilutive options 316,043 254,375 Weighted average number of common shares outstanding used to calculate dilutive earnings per share 5,336,846 5,275,178 Basic earnings per common share $ 0.25 $ 0.36 Diluted earnings per common share $ 0.23 $ 0.34 Series A Preferred Stock The series A preferred stock is a 10% fixed rate cumulative convertible perpetual preferred stock with a $1,000 per share stated value. The preferred stock ranks senior to all classes of junior stock but does not have voting rights except for limited circumstances. Dividends on the Series A preferred stock are being accrued by management as an off-balance Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Fair Value of Financial Instruments Fair values of financial instruments are estimates using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. Adoption of New Accounting Standard On January 1, 2019, the Company adopted ASU 2014-09 The Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under ASC 606 while prior period amounts continue to be reported in accordance with legacy GAAP. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope Service charges on deposit accounts: Revenue from service charges on deposit accounts is earned through cash management, wire transfer, overdraft, non-sufficient Other operating income: Other operating income includes ATM fees, which are recognized concurrently with the delivery of service on a daily basis as transactions occur, and interchange fees, which are derived from rates set by the credit card associations and are based on purchase volumes and other factors. Interchange fees and merchant discounts are recognized concurrently with the delivery of service on a daily basis as transactions occur. Payment is typically received immediately or in the following month. |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE | NOTE 2. SECURITIES AVAILABLE FOR SALE The amortized cost and fair value of securities available for sale with gross unrealized gains and losses are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019: U.S. Government agencies $ 998,826 $ — $ (10,233 ) $ 988,593 Mortgage-backed securities GSE residential 12,387,396 255,334 — 12,642,730 Corporate securities 2,744,330 12,790 (33,571 ) 2,723,549 $ 16,130,552 $ 268,124 $ (43,804 ) $ 16,354,872 December 31, 2018: U.S. Government agencies $ 998,726 $ — $ (78,074 ) $ 920,652 Mortgage-backed securities GSE residential 15,318,322 8,373 (233,618 ) 15,093,077 Corporate securities 1,462,121 — (82,121 ) 1,380,000 $ 17,779,169 $ 8,373 $ (393,813 ) $ 17,393,729 The amortized cost and fair value of securities available for sale as of December 31, 2019, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due from five to ten years $ 2,244,330 $ 2,223,549 Due after ten years 1,498,826 1,488,593 Mortgage-backed securities 12,387,396 12,642,730 $ 16,130,552 $ 16,354,872 Securities with a carrying value of $8,981,372 and $16,013,729 at December 31, 2019 and 2018, respectively, were pledged to secure securities sold under repurchase agreements. There were no sales of securities during the year ended December 31, 2019. Gross gains and losses on sales of securities were $558,750 and $0, respectively, during the year ended December 31, 2018. The following table shows the gross unrealized losses and fair value of securities, aggregated by category and length of time that securities have been in a continuous unrealized loss position. Less Than Twelve Months Over Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value December 31, 2019: U.S. Government agencies $ — $ — $ (10,233 ) $ 988,593 Corporate securities — — (33,571 ) 932,500 Total temporarily impaired securities $ — $ — $ (43,804 ) $ 1,921,093 December 31, 2018: U.S. Government agencies $ — $ — $ (78,074 ) $ 920,652 Mortgage-backed securities GSE residential (56,101 ) 7,844,419 (177,517 ) 6,271,177 Corporate securities — — (82,121 ) 880,000 Total temporarily impaired securities $ (56,101 ) $ 7,844,419 $ (337,712 ) $ 8,071,829 U.S. Government agencies Corporate securities Other-Than-Temporary Impairment Upon acquisition of a security, the Company decides whether it is within the scope of the accounting guidance to be evaluated for impairment. Management routinely conducts periodic reviews to identify and evaluate each investment security to determine whether an other-than-temporary impairment has occurred. While all securities are considered, the securities primarily impacted by other-than-temporary impairment testing have been investments in trust preferred securities which are included in the corporate bond category. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS | NOTE 3. LOANS The composition of loans is summarized as follows: December 31, 2019 2018 Professional: Dental $ 171,475,379 $ 156,486,239 Medical 14,154,935 15,161,671 Veterinary 3,075,746 1,729,354 Service 8,088,423 7,284,367 Non-profit: Church 15,696,335 14,446,601 Other 2,771,661 2,857,270 Real estate: Construction and development 14,898,990 13,940,135 Non-owner 14,873,244 14,051,173 Other 16,107,191 13,395,533 261,141,904 239,352,343 Net deferred loan fees and costs (288,485 ) (293,763 ) Allowance for loan losses (2,816,182 ) (2,849,182 ) Loans, net $ 258,037,237 $ 236,209,398 The loan portfolio was disaggregated into segments and then further disaggregated into classes for certain disclosures. A portfolio segment is defined as the level at which the Company develops and documents a systematic method for determining its allowance for credit losses. The Company has identified four loan portfolio segments: professional, non-profit, non-profit non-owner The following describe risk characteristics relevant to each of the portfolio segments: Professional Segment - This portfolio segment includes loans to business professionals and/or service companies. Such loans share commonality in the fact that these companies provide services rather than products in which a great amount of time is invested in training and knowledge. Such service companies include dental practices, medical practices, and veterinary practices. Additionally, such companies as exterminators, consultants, automotive repair, etc. have also been included. These loans are secured by collateral ranging from furniture, fixtures, and equipment to real estate or are entirely unsecured. Loans within this portfolio are repaid based on business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower. Non-Profit non-profit Real Estate Segment - This portfolio segment is comprised of loans collateralized by real estate that are held for development and investment purposes. The segment has been further stratified into construction and development loans and non-owner Non-owner Other Segment - This portfolio segment represents the residual loans that are not contained within the professional, non-profit, The Credit Risk Management department and the management team as a whole are both involved in the credit risk management process and assess the accuracy of risk ratings, the quality of the portfolio and the estimation of inherent credit losses in the loan portfolio. This comprehensive process also assists in the prompt identification of problem credits. The Company has taken a number of measures to manage the portfolios and reduce risk. The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Loan Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored. Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. All aggregate credit extensions to borrowers over $1,000,000 on a secured basis and $250,000 unsecured are approved by the Director’s Loan Committee. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur each quarter to assess the larger adversely rated credits for proper risk rating and accrual status and, if necessary, to ensure such individual credits are transferred to the Special Assets Division. Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports by product, collateral, accrual status, etc. are reviewed by the Chief Credit Officer and the Directors Loan Committee. The following presents credit quality indicators for the loan portfolio segments and classes as of December 31, 2019 and 2018. These categories are utilized to evaluate the associated allowance for loan losses using historical losses adjusted for current economic conditions and other qualitative factors and are defined as follows: • Pass - includes obligations where the probability of default is considered low. • Special Mention - includes obligations that are currently protected but have a high potential to become weak credits. These loans constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of “Substandard”. These loans have weaknesses which may, if not checked or corrected, threaten the integrity of the assets or inadequately protect the Company’s credit position at some future date. This classification would include loans where an adverse trend in the borrower’s operations or an unbalanced position in the balance sheet exists but which has not reached a point where the repayment of the loan is jeopardized. This classification covers those situations in which credit risk itself may be relatively minor yet involve an unsound commitment in light of the circumstances surrounding a specific loan. Loans in this category may involve collateral in poor condition or over which the Company lacks control; a loan agreement inadequate to protect the Company; failure to obtain proper documentation; or other deviations from prudent lending practices. • Substandard - includes obligations that are characterized by deterioration in quality exhibited by any number of well defined weaknesses requiring corrective action. The weaknesses may include, but are not limited to: high debt to worth ratios, declining or negative earnings or cash flow trends, declining or inadequate liquidity, improper loan structure, questionable repayment sources, lack of well-defined secondary repayment source, and unfavorable competitive comparisons. Such loans are no longer considered to be adequately protected due to the borrower’s declining net worth, lack of earnings capacity, declining collateral margins and/or unperfected collateral positions. Loss potential does not have to exist in individual loans classified substandard. The repayment ability of the borrower is marginal or weak and the loan may have exhibited excessive overdue status or extensions and/or renewals. • Doubtful - includes obligations that exhibit the same weaknesses found in the substandard loan category; however, the weaknesses are more pronounced. Such loans are static and collection in full is improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Among these events are: acquisition by, or merger with, a stronger entity, injection of capital, alternative financing, liquidation of assets, or the pledging of additional collateral. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual The following tables summarize by risk category the Company’s loan portfolio based upon the most recent analysis performed as of December 31, 2019 and 2018: Pass Special Substandard Doubtful Total December 31, 2019: Professional: Dental $ 171,423,715 $ — $ 51,664 $ — $ 171,475,379 Medical 14,154,935 — — — 14,154,935 Veterinary 3,075,746 — — — 3,075,746 Service 8,088,423 — — — 8,088,423 Non-profit: Church 15,696,335 — — — 15,696,335 Other 2,771,661 — — — 2,771,661 Real estate: Construction and development 14,898,990 — — — 14,898,990 Non-owner 14,873,244 — — — 14,873,244 Other 16,107,016 — 175 — 16,107,191 Total $ 261,090,065 $ — $ 51,839 $ — $ 261,141,904 December 31, 2018: Professional: Dental $ 156,406,739 $ — $ 79,500 $ — $ 156,486,239 Medical 15,161,671 — — — 15,161,671 Veterinary 1,729,354 — — — 1,729,354 Service 7,104,378 179,989 — — 7,284,367 Non-profit: Church 14,446,601 — — — 14,446,601 Other 2,857,270 — — — 2,857,270 Real estate: Construction and development 13,940,135 — — — 13,940,135 Non-owner 14,051,173 — — — 14,051,173 Other 13,332,377 — 63,156 — 13,395,533 Total $ 239,029,698 $ 179,989 $ 142,656 $ — $ 239,352,343 The following tables include an aging analysis of days past due for each portfolio class as of December 31, 2019 and 2018: Past Due Status (Accruing Loans) Current 30-89 Days 90+ Days Total Past Non- Accrual Total December 31, 2019: Professional: Dental $ 171,423,715 $ — $ — $ — $ 51,664 $ 171,475,379 Medical 14,154,935 — — — — 14,154,935 Veterinary 3,075,746 — — — — 3,075,746 Service 8,088,423 — — — — 8,088,423 Non-profit: Church 15,696,335 — — — — 15,696,335 Other 2,771,661 — — — — 2,771,661 Real estate: Construction and development 14,898,990 — — — — 14,898,990 Non-owner commercial 14,873,244 — — — — 14,873,244 Other 16,107,016 — — — 175 16,107,191 Total $ 261,090,065 $ — $ — $ — $ 51,839 $ 261,141,904 December 31, 2018: Professional: Dental $ 156,406,739 $ — $ — $ — $ 79,500 $ 156,486,239 Medical 15,161,671 — — — — 15,161,671 Veterinary 1,729,354 — — — — 1,729,354 Service 7,104,378 — 179,989 179,989 — 7,284,367 Non-profit: Church 14,446,601 — — — — 14,446,601 Other 2,857,270 — — — — 2,857,270 Real estate: Construction and development 13,940,135 — — — — 13,940,135 Non-owner commercial 14,051,173 — — — — 14,051,173 Other 13,332,377 — — — 63,156 13,395,533 Total $ 239,029,698 $ — $ 179,989 $ 179,989 $ 142,656 $ 239,352,343 The allowance for loan losses is a valuation reserve established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off The allowance for loan losses related to specific loans is based on management’s estimate of potential losses on impaired loans as determined by: (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent; or (3) the loan’s observable market price. The Company’s homogeneous loan pools include professional (dental, medical, veterinary and service), non-profit non-owner The following tables detail the change in the allowance for the years ended December 31, 2019 and 2018 by portfolio segment. Professional Non-Profit Real Estate Other Unallocated Total December 31, 2019: Allowance for loan losses: Balance, beginning of year $ 876,467 $ 70,962 $ 104,950 $ 110,833 $ 1,685,970 $ 2,849,182 Charge-offs (130,235 ) — — — — (130,235 ) Recoveries 14,735 — — — — 14,735 Provision (reallocation) 231,274 (4,383 ) 6,660 (53,610 ) (97,441 ) 82,500 Ending balance $ 992,241 $ 66,579 $ 111,610 $ 57,223 $ 1,588,529 $ 2,816,182 Ending balance: individually evaluated for impairment $ 51,664 $ — $ — $ 175 $ — $ 51,839 Ending balance: collectively evaluated for impairment $ 940,577 $ 66,579 $ 111,610 $ 57,048 $ 1,588,529 $ 2,764,343 Loans: Ending balance $ 196,794,483 $ 18,467,996 $ 29,772,234 $ 16,107,191 $ 261,141,904 Ending balance: individually evaluated for impairment $ 51,664 $ — $ — $ 175 $ 51,839 Ending balance: collectively evaluated for impairment $ 196,742,819 $ 18,467,996 $ 29,772,234 $ 16,107,016 $ 261,090,065 December 31, 2018: Allowance for loan losses: Balance, beginning of year $ 788,684 $ 75,490 $ 185,964 $ 172,035 $ 1,611,421 $ 2,833,594 Charge-offs — — — — — — Recoveries 15,588 — — — — 15,588 Provision (reallocation) 72,195 (4,528 ) (81,014 ) (61,202 ) 74,549 — Ending balance $ 876,467 $ 70,962 $ 104,950 $ 110,833 $ 1,685,970 $ 2,849,182 Ending balance: individually evaluated for impairment $ 79,500 $ — $ — $ 63,156 $ — $ 142,656 Ending balance: collectively evaluated for impairment $ 796,967 $ 70,962 $ 104,950 $ 47,677 $ 1,685,970 $ 2,706,526 Loans: Ending balance $ 180,661,631 $ 17,303,871 $ 27,991,308 $ 13,395,533 $ 239,352,343 Ending balance: individually evaluated for impairment $ 79,500 $ — $ — $ 63,156 $ 142,656 Ending balance: collectively evaluated for impairment $ 180,582,131 $ 17,303,871 $ 27,991,308 $ 13,332,377 $ 239,209,687 The following tables present details related to the Company’s impaired loans as of December 31, 2019 and 2018. A loan is considered impaired, in accordance with the impairment accounting guidance (FASB ASC 310-10-35-16), Recorded Unpaid Related Average Interest December 31, 2019: With allowance recorded: Professional: Dental $ 51,664 $ 141,837 $ 51,664 $ 65,582 $ — Other 175 128,359 175 31,666 — Total with allowance recorded 51,839 270,196 51,839 97,248 — Total impaired loans $ 51,839 $ 270,196 $ 51,839 $ 97,248 $ — December 31, 2018: With allowance recorded: Professional: Dental $ 79,500 $ 157,441 $ 79,500 $ 93,418 $ — Other 63,156 203,770 63,156 100,372 — Total with allowance recorded 142,656 361,211 142,656 193,790 — Total impaired loans $ 142,656 $ 361,211 $ 142,656 $ 193,790 $ — At December 31, 2019 and 2018, impaired loans included loans that were classified as Troubled Debt Restructurings “TDRs”. The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the borrower is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the borrower has declared or is in the process of declaring bankruptcy; and (iv) the borrower’s projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification. The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the borrower’s ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt, (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (iii) a temporary period of interest-only payments, and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan. A loan is placed back on accrual status when both principal and interest are current and it is probable that the Company will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. There were no loans modified as a TDR during the years ended December 31, 2019 and 2018. There were no loans modified as a TDR within one year of restructure that subsequently defaulted (i.e., 90 days or more past due following a modification) during the years ended December 31, 2019 and 2018. The following tables provide a summary of loans that continue to accrue interest under the terms of the restructuring (“performing restructurings”) and restructured loans that have been placed in nonaccrual status (“nonperforming restructurings”) as of December 31, 2019 and 2018: Performing Nonperforming Recorded # of Recorded # of December 31, 2019: Professional: Dental $ — — $ 51,664 1 Other — — 175 1 Total $ — — $ 51,839 2 December 31, 2018: Professional: Dental $ — — $ 79,500 1 Other — — 63,156 1 Total $ — — $ 142,656 2 Nonperforming restructurings are included in the nonaccrual loan disclosures. All troubled debt restructurings (TDRs) are considered impaired. The allowance for loan losses attributable to these TDRs total $51,839 and $142,656 at December 31, 2019 and 2018, respectively. In the ordinary course of business, the Company has granted loans to certain directors, executive officers and their related affiliates. The interest rates on these loans were substantially the same as rates prevailing at the time of the transaction and repayment terms are customary for the type of loan. Changes in related party loans for the years ended December 31, 2019 and 2018, are as follows: Years Ended December 31, 2019 2018 Balance, beginning of year $ 746,997 $ 1,205,798 Advances 128,023 203,350 Repayments (384,587 ) (662,151 ) Change in related parties 1,043,885 — Balance, end of year $ 1,534,318 $ 746,997 |
FORECLOSED ASSETS
FORECLOSED ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
FORECLOSED ASSETS | NOTE 4. FORECLOSED ASSETS A summary of foreclosed assets is presented as follows: Years Ended December 31, 2019 2018 Balance, beginning of year $ 1,626,500 $ 1,825,501 Proceeds from sales (435,526 ) (95,056 ) Net gain (loss) on sale (264,774 ) 8,655 Write-downs (125,900 ) (112,600 ) Balance, end of year $ 800,300 $ 1,626,500 Expenses related to foreclosed assets include the following: Years Ended December 31, 2019 2018 Net loss on sales and writedowns of real estate $ 390,674 $ 103,945 Expenses, net of rental income 2,086 7,438 $ 392,760 $ 111,383 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 5. PREMISES AND EQUIPMENT Premises and equipment are summarized as follows: December 31, 2019 2018 Leasehold improvements $ 646,280 $ 646,280 Furniture and equipment 1,317,634 1,071,457 1,963,914 1,717,737 Accumulated depreciation (874,089 ) (887,004 ) $ 1,089,825 $ 830,733 Leases During 2019 and 2018, the Company leased its main office banking facility under a noncancelable operating lease agreement. Rental expense amounted to $303,851 and $293,825 for the years ended December 31, 2019 and 2018, respectively. At the end of 2017, the Company relocated its main office banking facility. The lease agreement for the old facility was terminated effective December 31, 2017. The lease for the new facility commenced January 1, 2018 and has a term of seventy months. Future minimum lease commitments on noncancelable operating leases, excluding any renewal options, are summarized as follows: 2020 $ 344,370 2021 345,253 2022 338,448 2023 289,796 $ 1,317,867 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
DEPOSITS | NOTE 6. DEPOSITS The major classifications of deposits are as follows: December 31, 2019 2018 Noninterest-bearing demand $ 67,171,224 $ 67,777,110 Interest-bearing demand 80,001,030 75,432,476 Savings 49,939,128 1,228,519 Certificates of deposit of $250,000 or more 11,833,279 11,891,660 Other certificates of deposit 44,114,406 53,205,583 $ 253,059,067 $ 209,535,348 The scheduled maturities of time deposits at December 31, 2019 are as follows: 2020 $ 43,662,094 2021 7,639,181 2022 3,391,251 2023 1,103,159 2024 152,000 $ 55,947,685 The Company had no brokered deposits at December 31, 2019 and 2018. Overdraft demand deposits reclassified to loans at December 31, 2019 and 2018 totaled $48,107 and $23,733, respectively. |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | NOTE 7. OTHER BORROWINGS Other borrowings consist of the following: December 31, 2019 2018 Federal Home Loan Bank advances with interest and principal payments due at various maturity dates through 2029 at fixed interest rates ranging from 2.10% to 2.91% at December 31, 2019 (weighted average interest rate is 2.54% at December 31, 2019). $ 33,000,000 $ 38,000,000 $ 33,000,000 $ 38,000,000 The advances from the Federal Home Loan Bank are secured by certain qualifying loans of approximately $79,674,000 and cash pledged to the Federal Home Loan Bank of $50,000. Contractual maturities of other borrowings as of December 31, 2019 are as follows: 2020 $ — 2021 10,000,000 2022 — 2023 — 2024 5,000,000 Thereafter 18,000,000 $ 33,000,000 The Company has available unused lines of credit with other financial institutions totaling $9,000,000 at December 31, 2019 and 2018. |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
SUBORDINATED DEBENTURES | NOTE 8. SUBORDINATED DEBENTURES In 2007, the Company formed a wholly-owned grantor trust to issue cumulative trust preferred securities. The grantor trust has invested the proceeds of the trust preferred securities in subordinated debentures of the Company. The sole assets of the guarantor trust are the subordinated debentures of the Company (the “Debentures”). The preferred securities are subject to redemption, in whole or in part, upon repayment of the subordinated debentures at maturity of July 30, 2037 or their earlier redemption. The Company has the right to redeem the debentures, in whole or in part, from time to time, on or after July 30, 2012, at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest. The Company has guaranteed the payment of all distributions the Trust is obligated to make, but only to the extent the Trust has sufficient funds to satisfy those payments. The trust preferred securities and the related debentures were issued on May 15, 2007. Both financial instruments bear an identical fixed rate of interest. At December 31, 2019, this rate was ten percent. The aggregate principal amount of subordinated debentures outstanding at December 31, 2019 and 2018 was $1,657,000. The subordinated debentures were acquired by the Company’s preferred shareholder. All previously accrued and unpaid interest was settled as part of the transaction. As of December 31, 2019, the Company has $684,000 accrued but unpaid interest related to the subordinated debentures recorded in other liabilities. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 9. EMPLOYEE BENEFIT PLANS Stock-Based Compensation The Company has a Stock Incentive Plan (the “Plan”) authorizing the issuance of up to 803,142 shares of the Company’s common stock. This Plan is administered by a committee of the Board of Directors and provides for the granting of options to purchase shares of the common stock to officers and key employees of the Company. The exercise price of each option granted under the Plan may not be less than the fair market value of the shares of common stock subject to the option on the date of grant as determined by the Board of Directors. Options are exercisable in whole or in part upon such terms as may be determined by the committee and expire ten years after the date of grant. Other pertinent information related to the options is as follows: Years Ended December 31, 2019 2018 Shares Weighted- Average Exercise Price Shares Weighted- Outstanding at beginning of year 457,000 $ 1.77 465,500 $ 2.08 Granted — — — — Exercised — — — — Forfeited — — (8,500 ) (18.47 ) Expired (10,000 ) (14.00 ) — — Outstanding at end of year 447,000 $ 1.50 457,000 $ 1.77 Options exercisable at year end 447,000 $ 1.50 457,000 $ 1.77 Information pertaining to options outstanding at December 31, 2019 is as follows: Options Outstanding Options Exercisable Number Outstanding Weighted- Average Remaining Contractual Life Exercise Price Number Exercisable Exercise Price 447,000 5.45 $1.50 447,000 $1.50 447,000 447,000 At December 31, 2019, there was no remaining unrecognized compensation cost related to stock-based payments. Bank Owned Life Insurance The Company is the owner of life insurance policies on various officers. The balance of the various officer policy surrender values at December 31, 2019 and 2018 amounted to $7,451,381 and $7,250,234, respectively. Income recognized for the increase in policy surrender values amounted to $201,147 and $169,602 for the years ended December 31, 2019 and 2018, employees respectively. Profit Sharing Plan The Company has a 401(k) profit sharing plan covering substantially all of its employees, subject to minimum age and service requirements. Contributions to the plan charged to expense for the years ended December 31, 2019 and 2018 amounted to $113,404 and $99,847, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10. INCOME TAXES The components of income tax expense are as follows: Years Ended December 31, 2019 2018 Current $ — $ — Deferred 569,460 823,285 $ 569,460 $ 823,285 The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows: Years Ended December 31, 2019 2018 Income tax expense at statutory federal rate $ 508,108 $ 678,178 State tax expense 96,118 139,989 Other items (34,766 ) (19,189 ) Adjustment due to change in tax rates — 24,307 Income tax expense $ 569,460 $ 823,285 The components of deferred income taxes are as follows: December 31, 2019 2018 Deferred tax assets: Loan loss reserves $ 128,032 $ 107,163 Deferred compensation 45,896 43,319 Foreclosed assets 39,650 97,047 Net operating losses 2,375,742 2,907,200 Depreciation 22,068 30,419 Other 2,160 — Securities available for sale — 97,516 2,613,548 3,282,664 Deferred tax liabilities: Securities available for sale 56,753 — 56,753 — Net deferred tax assets $ 2,556,795 $ 3,282,664 The Company had unused income tax carryforwards of $9,142,338 for federal income tax purposes and $10,612,266 for state income tax purposes as of December 31, 2019. If unused, carryforwards will expire beginning in 2031. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11. COMMITMENTS AND CONTINGENCIES Loan Commitments The Company is a party to financial instruments with off-balance The Company’s exposure to credit loss is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance December 31, 2019 2018 Commitments to extend credit $ 27,469,366 $ 20,673,434 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. 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 effect on the Company’s financial statements. |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | NOTE 12. CONCENTRATIONS OF CREDIT RISK The Company originates primarily commercial and residential construction loans to customers in Fulton County and surrounding counties. The ability of the majority of the Company’s customers to honor their contractual loan obligations is dependent on the economy in the metropolitan Atlanta area. Forty-four percent of the Company’s loan portfolio is concentrated in loans secured by real estate, of which a substantial portion is secured by real estate located in the Company’s primary market area. Accordingly, the ultimate collectibility of the loan portfolio is susceptible to changes in market conditions in the Company’s primary market area. The other significant concentrations of credit by type of loan are set forth in Note 3. The Company, as a matter of policy, does not generally extend credit to any single borrower or group of related borrowers in excess of 25% of statutory capital, as defined, or approximately $8,599,000. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
REGULATORY MATTERS | NOTE 13. REGULATORY MATTERS The Bank is subject to certain restrictions on the amount of dividends that may be declared without prior regulatory approval. At December 31, 2019, no dividends could be declared without regulatory approval. The Bank is subject to various regulatory capital requirements administered by the 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total capital, Tier 1 capital, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. In addition, the Bank is subject to an institution-specific capital buffer which must exceed 2.50% to avoid limitations on distributions and discretionary bonus payments. The Bank’s capital conservation buffer at December 31, 2019 was 3.7504%. Management believes, as of December 31, 2019 and 2018, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2019, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are presented in the following table. To Be Well For Capital Capitalized Under Adequacy Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) December 31, 2019: Total Capital to Risk Weighted Assets $ 34,396 11.75 % $ 23,418 8.00 % $ 29,272 10.00 % Tier 1 Capital to Risk Weighted Assets $ 31,580 10.79 % $ 17,563 6.00 % $ 23,418 8.00 % Common Equity Tier 1 Capital to Risk Weighted Assets $ 31,580 10.79 % $ 13,172 4.50 % $ 19,027 6.50 % Tier 1 Capital to Average Assets $ 31,580 9.43 % $ 13,399 4.00 % $ 16,748 5.00 % December 31, 2018: Total Capital to Risk Weighted Assets $ 31,762 12.10 % $ 20,999 8.00 % $ 26,249 10.00 % Tier 1 Capital to Risk Weighted Assets $ 28,913 11.02 % $ 15,749 6.00 % $ 20,999 8.00 % Common Equity Tier 1 Capital to Risk Weighted Assets $ 28,913 11.02 % $ 11,812 4.50 % $ 17,062 6.50 % Tier 1 Capital to Average Assets $ 28,913 10.10 % $ 11,445 4.00 % $ 14,306 5.00 % |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | NOTE 14. FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and, in certain cases, to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. From time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and foreclosed assets. Fair Value Hierarchy In accordance with fair value measurement guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1—Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2—Valuation is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3—Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value for assets and liabilities measured at fair value on either a recurring or nonrecurring basis: Securities available for sale Impaired loans Foreclosed assets Assets Measured at Fair Value on a Recurring Basis Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements at December 31, 2019 Using Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Total Identical Assets Inputs Inputs Carrying (Level 1) (Level 2) (Level 3) Value Available for sale securities $ — $ 15,854,872 $ 500,000 $ 16,354,872 Fair Value Measurements at December 31, 2018 Using Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Total Identical Assets Inputs Inputs Carrying (Level 1) (Level 2) (Level 3) Value Available for sale securities $ — $ 16,893,729 $ 500,000 $ 17,393,729 Securities with fair values that are determined by reliance on significant unobservable inputs are included in Level 3 above. There were no changes to Level 3 securities for the year ended December 31, 2019. Assets Measured at Fair Value on a Nonrecurring Basis Under certain circumstances management makes adjustments to fair value for assets although they are not measured at fair value on an ongoing basis. The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy at December 31, 2019 and 2018, for which a nonrecurring change in fair value has been recorded: Fair Value Measurements at December 31, 2019 Using Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Total Impaired loans $ — $ — $ — $ (90,817 ) Foreclosed assets $ — $ — $ 131,600 $ (4,700 ) Total $ — $ — $ 131,600 $ (95,517 ) Fair Value Measurements at December 31, 2018 Using Quoted Prices in Significant Significant Total Losses Impaired loans $ — $ — $ — $ (102,268 ) Foreclosed assets $ — $ — $ 681,500 $ (112,600 ) Total $ — $ — $ 681,500 $ (214,868 ) At December 31, 2019 and 2018, impaired loans with a nonrecurring change in fair value as noted in the tables above have been fully reserved for and therefore had no recorded value. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 15. PARENT COMPANY FINANCIAL INFORMATION The following information presents the condensed balance sheets as of December 31, 2019 and 2018 and statements of income and cash flows of ABB Financial Group, Inc. for the years ended December 31, 2019 and 2018. CONDENSED BALANCE SHEETS 2019 2018 Assets Cash $ 6,275 $ 211,524 Investment in subsidiary 33,799,155 31,283,748 Restricted equity securities, at cost 232,000 232,000 Other assets 324,061 253,016 Total assets $ 34,361,491 $ 31,980,288 Liabilities Subordinated debentures $ 1,657,000 $ 1,657,000 Other liabilities 684,000 608,388 Total liabilities 2,341,000 2,265,388 Stockholders’ equity 32,020,491 29,714,900 Total liabilities and stockholders’ equity $ 34,361,491 $ 31,980,288 CONDENSED STATEMENTS OF INCOME 2019 2018 Expenses: Interest expense $ 144,479 $ 144,083 Other operating expense 136,382 220,333 Total expense 280,861 364,416 Loss before income tax benefit and equity in undistributed income of subsidiary (280,861 ) (364,416 ) Income tax benefit 71,045 91,061 Loss before equity in undistributed income of subsidiary (209,816 ) (273,355 ) Equity in undistributed income of subsidiary 2,059,916 2,679,491 Net income $ 1,850,100 $ 2,406,136 CONDENSED STATEMENTS OF CASH FLOWS 2019 2018 OPERATING ACTIVITIES Net income $ 1,850,100 $ 2,406,136 Adjustments to reconcile net income to net cash used in operating activities: Undistributed income of subsidiary (2,059,916 ) (2,679,491 ) Net other operating activities 4,567 121,889 Net cash used in operating activities (205,249 ) (151,466 ) Net decrease in cash (205,249 ) (151,466 ) Cash at beginning of year 211,524 362,990 Cash at end of year $ 6,275 $ 211,524 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations ABB Financial Group, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned commercial bank subsidiary, Affinity Bank (the “Bank”). The Bank is located in Atlanta, Cobb County, Georgia. The Bank provides a full range of banking services to individual and corporate customers in its primary market area of Cobb, Fulton and surrounding counties. On August 19, 2019, the shareholders of the Company approved a plan of merger and acquisition whereby Community First Bancshares, Inc. (CFB) would acquire the Company for cash. The acquisition was officially closed on January 10, 2020, and the Company was merged into CFB. Concurrent with the transaction, Affinity Bank was merged into Newton Federal Bank, a subsidiary of CFB. The balances presented in the consolidated balance sheets and related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows was well as in the notes to the consolidated financial statements are reported prior to any purchase accounting adjustments as a result of the merger transaction. Accounting principles require that assets acquired and liabilities assumed in such a transaction be measured at their fair values as of the acquisition date. No adjustment to the fair values of assets and liabilities existing as of December 31, 2019 have been reflected in these consolidated financial statements and the accompanying notes to the consolidated financial statements. |
Basis of Presentation and Accounting Estimates | Basis of Presentation and Accounting Estimates The consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany transactions and balances have been eliminated in consolidation. 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 balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed assets and deferred taxes, other-than-temporary impairments of securities, and the fair value of financial instruments. The Company has evaluated all transactions, events, and circumstances for consideration or disclosure through June 17, 2020, the date these financial statements were available to be issued, and has reflected or disclosed those items within the consolidated financial statements and related footnotes as deemed appropriate. As a result of the spread of the COVID-19 COVID-19’s COVID-19 |
Cash, Due From Banks, and Cash Flows | Cash, Due From Banks, and Cash Flows For purposes of reporting cash flows, cash and due from banks includes cash on hand, cash items in process of collection, and amounts due from banks. Cash flows from loans, federal funds sold, interest-bearing deposits in banks, deposits, and securities sold under repurchase agreements are reported net. The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based on a percentage of deposits. The total of those reserve balances was approximately $2,091,000 and $2,160,000 at December 31, 2019 and 2018, respectively. The Bank has restricted cash of approximately $50,000 and $300,000 on deposit with the Federal Home Loan Bank at December 31, 2019 and 2018, respectively. |
Securities | Securities Securities are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from operations and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates investment securities for other-than-temporary impairment using relevant accounting guidance specifying that (a) if an entity does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income (loss). Securities purchased under resale agreements and securities sold under repurchase agreements are generally accounted for as collateralized financial transactions. They are recorded at the amount at which the securities were acquired or sold plus accrued interest. It is the Company’s policy to take possession of securities purchased under resale agreements, which are primarily U.S. Government and Government agency securities. The market value of these securities is monitored, and additional securities are obtained when deemed appropriate to ensure such transactions are adequately collateralized. The Company also monitors its exposure with respect to securities sold under repurchase agreements, and a request for the return of excess securities held by the counterparty is made when deemed appropriate. |
Restricted Equity Securities | Restricted Equity Securities The Company is required to maintain an investment in capital stock of various entities. Based on redemption provisions of these entities, the stocks have no quoted market value and are carried at cost. At their discretion, these entities may declare dividends on the stocks. Management reviews for impairment based on the ultimate recoverability of the cost basis in these stocks. Restricted equity securities at December 31, 2019 and 2018 consist of Federal Home Loan Bank stock of $1,660,300 and $1,848,600, respectively, and UCB Financial Capital Trust I common shares of $232,000. |
Loans | Loans Loans are reported at their outstanding principal balances less net deferred fees and costs on originated loans and the allowance for loan losses. Interest income is accrued based on the outstanding principal balance. Loan origination fees, net of certain direct loan origination costs, are deferred and recognized as an adjustment of the related loan yield over the life of the loan using a method which approximates a level yield. The accrual of interest on loans is discontinued when the loan becomes ninety days past due, unless the loan is well-secured and in process of collection. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management believes that the accrued interest is recoverable through the liquidation of collateral. Interest income on nonaccrual loans is recognized on the cash-basis or cost-recovery method, until the loans are returned 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. A loan is considered impaired when it is probable, based on current information and events, the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impaired loans are measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any, and any subsequent changes are included in the allowance for loan losses. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the un-collectability The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, concentrations and current economic conditions that may affect the borrower’s ability to pay. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. In support of collateral values, the Company obtains updated valuations on non-performing Management considers the current level of allowance for loan losses adequate to absorb losses inherent in the loan portfolio. Management’s determination of the adequacy for loan losses, which is based on the factors and identification procedures described above, requires the use of judgments and estimations that may change in the future. Changes in the factors used by management to determine the adequacy of the allowance or the availability of new information could cause the allowance for loan losses to be adjusted in future periods. |
Restructurings | Restructurings When the Company grants a concession to a borrower as part of a restructured loan, the transaction may be classified as a troubled debt restructuring (“TDR”), and must be accounted for accordingly. All transactions that may be classified as a TDR must be approved by the Chief Credit Officer or the appropriate loan committee based on size of the loan and/or relationship. A troubled debt restructuring is a type of restructuring where the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession (either imposed by court order, law or agreement between the borrower and the Company) to the borrower that it would not otherwise consider. The Company is attempting to maximize its recovery of the balances of the loans through these various concessionary restructurings. Even though the borrower is experiencing financial difficulties, a debt restructuring may not be required to be recognized as a TDR if any of the following criteria are met: (1) the fair value of cash, other assets, or an equity position accepted from the borrower in full satisfaction of a debt at least equals the Company’s recorded investment in the receivable or the borrower’s carrying amount of the payable, (2) the Company reduces the effective interest rate on the debt primarily to reflect a decrease in interest rates or a change in risk to maintain a relationship with a borrower that can readily obtain funds from other sources at the current interest rate; and/or (3) the borrower refinances the old debt with new debt having an effective interest rate approximately equal to that of similar debt currently issued by non-troubled The Company may return a non-performing The modified loan terms are to be economically rational for both the borrower and the Company. The means of the repayment terms are to be reasonable and substantive. A loan to be considered for reinstatement to performing status must show all abilities to repay principal and interest for the life of the loan based on current financial condition. In addition, the loan must have a sufficient period of performance to evaluate future performance before being moved back to accrual status. This is typically six months for loans on monthly installments or twelve months for loans on quarterly or semi-annually installments. There must also be no doubt of the ultimate collectability of the restructured loan, or otherwise returning the loan to accrual status is not appropriate. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current 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—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (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 or the ability to unilaterally cause the holder to return specific assets. |
Foreclosed Assets | Foreclosed Assets Foreclosed assets acquired through or in lieu of loan foreclosure are held for sale and are initially recorded at fair value. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Costs of improvements are capitalized, whereas costs relating to holding foreclosed assets and subsequent adjustments to the value are expensed. As of December 31, 2019 and 2018, no amounts of foreclosed assets were one to four family residential properties. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and totaled $97,964 and $4,226 for the years ended December 31, 2019 and 2018, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not more-likely-than-not The income tax returns of the Company for 2016, 2017, and 2018 are subject to examination by the IRS, generally for three years after being filed. |
Stock Compensation Plans | Stock Compensation Plans Stock compensation accounting guidance requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards and stock grants. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the sum of the weighted-average number of shares of common stock outstanding and potential common shares. Potential dilutive common shares consist of Series A preferred stock and stock options and are determined using the treasury stock method. Presented below is a summary of the components used to calculate basic and diluted earnings per share: Years Ended December 31, 2019 2018 Net income $ 1,850,100 $ 2,406,136 Less cumulative preferred stock dividends (597,282 ) (597,282 ) Net income available to common stockholders $ 1,252,818 $ 1,808,854 Weighted average number of common shares outstanding 5,020,803 5,020,803 Effect of dilutive options 316,043 254,375 Weighted average number of common shares outstanding used to calculate dilutive earnings per share 5,336,846 5,275,178 Basic earnings per common share $ 0.25 $ 0.36 Diluted earnings per common share $ 0.23 $ 0.34 |
Series A Preferred Stock | Series A Preferred Stock The series A preferred stock is a 10% fixed rate cumulative convertible perpetual preferred stock with a $1,000 per share stated value. The preferred stock ranks senior to all classes of junior stock but does not have voting rights except for limited circumstances. Dividends on the Series A preferred stock are being accrued by management as an off-balance |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimates using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
Adoption of New Accounting Standard | Adoption of New Accounting Standard On January 1, 2019, the Company adopted ASU 2014-09 The Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under ASC 606 while prior period amounts continue to be reported in accordance with legacy GAAP. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope Service charges on deposit accounts: Revenue from service charges on deposit accounts is earned through cash management, wire transfer, overdraft, non-sufficient Other operating income: Other operating income includes ATM fees, which are recognized concurrently with the delivery of service on a daily basis as transactions occur, and interchange fees, which are derived from rates set by the credit card associations and are based on purchase volumes and other factors. Interchange fees and merchant discounts are recognized concurrently with the delivery of service on a daily basis as transactions occur. Payment is typically received immediately or in the following month. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule Of Earnings Per Share Basic And Diluted | Presented below is a summary of the components used to calculate basic and diluted earnings per share: Years Ended December 31, 2019 2018 Net income $ 1,850,100 $ 2,406,136 Less cumulative preferred stock dividends (597,282 ) (597,282 ) Net income available to common stockholders $ 1,252,818 $ 1,808,854 Weighted average number of common shares outstanding 5,020,803 5,020,803 Effect of dilutive options 316,043 254,375 Weighted average number of common shares outstanding used to calculate dilutive earnings per share 5,336,846 5,275,178 Basic earnings per common share $ 0.25 $ 0.36 Diluted earnings per common share $ 0.23 $ 0.34 |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities Available for Sale | The amortized cost and fair value of securities available for sale with gross unrealized gains and losses are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019: U.S. Government agencies $ 998,826 $ — $ (10,233 ) $ 988,593 Mortgage-backed securities GSE residential 12,387,396 255,334 — 12,642,730 Corporate securities 2,744,330 12,790 (33,571 ) 2,723,549 $ 16,130,552 $ 268,124 $ (43,804 ) $ 16,354,872 December 31, 2018: U.S. Government agencies $ 998,726 $ — $ (78,074 ) $ 920,652 Mortgage-backed securities GSE residential 15,318,322 8,373 (233,618 ) 15,093,077 Corporate securities 1,462,121 — (82,121 ) 1,380,000 $ 17,779,169 $ 8,373 $ (393,813 ) $ 17,393,729 |
Schedule of Contractual Maturities of Amortized Cost and Fair Value of Securities Available for Sale | The amortized cost and fair value of securities available for sale as of December 31, 2019, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due from five to ten years $ 2,244,330 $ 2,223,549 Due after ten years 1,498,826 1,488,593 Mortgage-backed securities 12,387,396 12,642,730 $ 16,130,552 $ 16,354,872 |
Schedule of Gross Unrealized Losses and Fair Value of Securities | The following table shows the gross unrealized losses and fair value of securities, aggregated by category and length of time that securities have been in a continuous unrealized loss position. Less Than Twelve Months Over Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value December 31, 2019: U.S. Government agencies $ — $ — $ (10,233 ) $ 988,593 Corporate securities — — (33,571 ) 932,500 Total temporarily impaired securities $ — $ — $ (43,804 ) $ 1,921,093 December 31, 2018: U.S. Government agencies $ — $ — $ (78,074 ) $ 920,652 Mortgage-backed securities GSE residential (56,101 ) 7,844,419 (177,517 ) 6,271,177 Corporate securities — — (82,121 ) 880,000 Total temporarily impaired securities $ (56,101 ) $ 7,844,419 $ (337,712 ) $ 8,071,829 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Composition of Loans | The composition of loans is summarized as follows: December 31, 2019 2018 Professional: Dental $ 171,475,379 $ 156,486,239 Medical 14,154,935 15,161,671 Veterinary 3,075,746 1,729,354 Service 8,088,423 7,284,367 Non-profit: Church 15,696,335 14,446,601 Other 2,771,661 2,857,270 Real estate: Construction and development 14,898,990 13,940,135 Non-owner 14,873,244 14,051,173 Other 16,107,191 13,395,533 261,141,904 239,352,343 Net deferred loan fees and costs (288,485 ) (293,763 ) Allowance for loan losses (2,816,182 ) (2,849,182 ) Loans, net $ 258,037,237 $ 236,209,398 |
Summary of Risk Category of Loans by Class of Loans | The following tables summarize by risk category the Company’s loan portfolio based upon the most recent analysis performed as of December 31, 2019 and 2018: Pass Special Substandard Doubtful Total December 31, 2019: Professional: Dental $ 171,423,715 $ — $ 51,664 $ — $ 171,475,379 Medical 14,154,935 — — — 14,154,935 Veterinary 3,075,746 — — — 3,075,746 Service 8,088,423 — — — 8,088,423 Non-profit: Church 15,696,335 — — — 15,696,335 Other 2,771,661 — — — 2,771,661 Real estate: Construction and development 14,898,990 — — — 14,898,990 Non-owner 14,873,244 — — — 14,873,244 Other 16,107,016 — 175 — 16,107,191 Total $ 261,090,065 $ — $ 51,839 $ — $ 261,141,904 December 31, 2018: Professional: Dental $ 156,406,739 $ — $ 79,500 $ — $ 156,486,239 Medical 15,161,671 — — — 15,161,671 Veterinary 1,729,354 — — — 1,729,354 Service 7,104,378 179,989 — — 7,284,367 Non-profit: Church 14,446,601 — — — 14,446,601 Other 2,857,270 — — — 2,857,270 Real estate: Construction and development 13,940,135 — — — 13,940,135 Non-owner 14,051,173 — — — 14,051,173 Other 13,332,377 — 63,156 — 13,395,533 Total $ 239,029,698 $ 179,989 $ 142,656 $ — $ 239,352,343 |
Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans | The following tables include an aging analysis of days past due for each portfolio class as of December 31, 2019 and 2018: Past Due Status (Accruing Loans) Current 30-89 Days 90+ Days Total Past Non- Accrual Total December 31, 2019: Professional: Dental $ 171,423,715 $ — $ — $ — $ 51,664 $ 171,475,379 Medical 14,154,935 — — — — 14,154,935 Veterinary 3,075,746 — — — — 3,075,746 Service 8,088,423 — — — — 8,088,423 Non-profit: Church 15,696,335 — — — — 15,696,335 Other 2,771,661 — — — — 2,771,661 Real estate: Construction and development 14,898,990 — — — — 14,898,990 Non-owner commercial 14,873,244 — — — — 14,873,244 Other 16,107,016 — — — 175 16,107,191 Total $ 261,090,065 $ — $ — $ — $ 51,839 $ 261,141,904 December 31, 2018: Professional: Dental $ 156,406,739 $ — $ — $ — $ 79,500 $ 156,486,239 Medical 15,161,671 — — — — 15,161,671 Veterinary 1,729,354 — — — — 1,729,354 Service 7,104,378 — 179,989 179,989 — 7,284,367 Non-profit: Church 14,446,601 — — — — 14,446,601 Other 2,857,270 — — — — 2,857,270 Real estate: Construction and development 13,940,135 — — — — 13,940,135 Non-owner commercial 14,051,173 — — — — 14,051,173 Other 13,332,377 — — — 63,156 13,395,533 Total $ 239,029,698 $ — $ 179,989 $ 179,989 $ 142,656 $ 239,352,343 |
Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following tables detail the change in the allowance for the years ended December 31, 2019 and 2018 by portfolio segment. Professional Non-Profit Real Estate Other Unallocated Total December 31, 2019: Allowance for loan losses: Balance, beginning of year $ 876,467 $ 70,962 $ 104,950 $ 110,833 $ 1,685,970 $ 2,849,182 Charge-offs (130,235 ) — — — — (130,235 ) Recoveries 14,735 — — — — 14,735 Provision (reallocation) 231,274 (4,383 ) 6,660 (53,610 ) (97,441 ) 82,500 Ending balance $ 992,241 $ 66,579 $ 111,610 $ 57,223 $ 1,588,529 $ 2,816,182 Ending balance: individually evaluated for impairment $ 51,664 $ — $ — $ 175 $ — $ 51,839 Ending balance: collectively evaluated for impairment $ 940,577 $ 66,579 $ 111,610 $ 57,048 $ 1,588,529 $ 2,764,343 Loans: Ending balance $ 196,794,483 $ 18,467,996 $ 29,772,234 $ 16,107,191 $ 261,141,904 Ending balance: individually evaluated for impairment $ 51,664 $ — $ — $ 175 $ 51,839 Ending balance: collectively evaluated for impairment $ 196,742,819 $ 18,467,996 $ 29,772,234 $ 16,107,016 $ 261,090,065 December 31, 2018: Allowance for loan losses: Balance, beginning of year $ 788,684 $ 75,490 $ 185,964 $ 172,035 $ 1,611,421 $ 2,833,594 Charge-offs — — — — — — Recoveries 15,588 — — — — 15,588 Provision (reallocation) 72,195 (4,528 ) (81,014 ) (61,202 ) 74,549 — Ending balance $ 876,467 $ 70,962 $ 104,950 $ 110,833 $ 1,685,970 $ 2,849,182 Ending balance: individually evaluated for impairment $ 79,500 $ — $ — $ 63,156 $ — $ 142,656 Ending balance: collectively evaluated for impairment $ 796,967 $ 70,962 $ 104,950 $ 47,677 $ 1,685,970 $ 2,706,526 Loans: Ending balance $ 180,661,631 $ 17,303,871 $ 27,991,308 $ 13,395,533 $ 239,352,343 Ending balance: individually evaluated for impairment $ 79,500 $ — $ — $ 63,156 $ 142,656 Ending balance: collectively evaluated for impairment $ 180,582,131 $ 17,303,871 $ 27,991,308 $ 13,332,377 $ 239,209,687 |
Summary of Impaired Loans | The following tables present details related to the Company’s impaired loans as of December 31, 2019 and 2018. Recorded Unpaid Related Average Interest December 31, 2019: With allowance recorded: Professional: Dental $ 51,664 $ 141,837 $ 51,664 $ 65,582 $ — Other 175 128,359 175 31,666 — Total with allowance recorded 51,839 270,196 51,839 97,248 — Total impaired loans $ 51,839 $ 270,196 $ 51,839 $ 97,248 $ — December 31, 2018: With allowance recorded: Professional: Dental $ 79,500 $ 157,441 $ 79,500 $ 93,418 $ — Other 63,156 203,770 63,156 100,372 — Total with allowance recorded 142,656 361,211 142,656 193,790 — Total impaired loans $ 142,656 $ 361,211 $ 142,656 $ 193,790 $ — |
Summary of Performing Restructurings Loans and Nonperforming Restructurings Loans | The following tables provide a summary of loans that continue to accrue interest under the terms of the restructuring (“performing restructurings”) and restructured loans that have been placed in nonaccrual status (“nonperforming restructurings”) as of December 31, 2019 and 2018: Performing Nonperforming Recorded # of Recorded # of December 31, 2019: Professional: Dental $ — — $ 51,664 1 Other — — 175 1 Total $ — — $ 51,839 2 December 31, 2018: Professional: Dental $ — — $ 79,500 1 Other — — 63,156 1 Total $ — — $ 142,656 2 |
Schedule of Changes in Related Party Loans | Changes in related party loans for the years ended December 31, 2019 and 2018, are as follows: Years Ended December 31, 2019 2018 Balance, beginning of year $ 746,997 $ 1,205,798 Advances 128,023 203,350 Repayments (384,587 ) (662,151 ) Change in related parties 1,043,885 — Balance, end of year $ 1,534,318 $ 746,997 |
FORECLOSED ASSETS (Tables)
FORECLOSED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Schedule of Foreclosed Assets | A summary of foreclosed assets is presented as follows: Years Ended December 31, 2019 2018 Balance, beginning of year $ 1,626,500 $ 1,825,501 Proceeds from sales (435,526 ) (95,056 ) Net gain (loss) on sale (264,774 ) 8,655 Write-downs (125,900 ) (112,600 ) Balance, end of year $ 800,300 $ 1,626,500 |
Schedule of Expenses Related to Foreclosed Assets | Expenses related to foreclosed assets include the following: Years Ended December 31, 2019 2018 Net loss on sales and writedowns of real estate $ 390,674 $ 103,945 Expenses, net of rental income 2,086 7,438 $ 392,760 $ 111,383 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment are summarized as follows: December 31, 2019 2018 Leasehold improvements $ 646,280 $ 646,280 Furniture and equipment 1,317,634 1,071,457 1,963,914 1,717,737 Accumulated depreciation (874,089 ) (887,004 ) $ 1,089,825 $ 830,733 |
Schedule of Future Minimum Lease Commitments on Noncancelable Operating Leases | Future minimum lease commitments on noncancelable operating leases, excluding any renewal options, are summarized as follows: 2020 $ 344,370 2021 345,253 2022 338,448 2023 289,796 $ 1,317,867 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Schedule of Major Classification of Deposits | The major classifications of deposits are as follows: December 31, 2019 2018 Noninterest-bearing demand $ 67,171,224 $ 67,777,110 Interest-bearing demand 80,001,030 75,432,476 Savings 49,939,128 1,228,519 Certificates of deposit of $250,000 or more 11,833,279 11,891,660 Other certificates of deposit 44,114,406 53,205,583 $ 253,059,067 $ 209,535,348 |
Summary of Contractual Maturities of Certificate of Deposits | The scheduled maturities of time deposits at December 31, 2019 are as follows: 2020 $ 43,662,094 2021 7,639,181 2022 3,391,251 2023 1,103,159 2024 152,000 $ 55,947,685 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank Advances | Other borrowings consist of the following: December 31, 2019 2018 Federal Home Loan Bank advances with interest and principal payments due at various maturity dates through 2029 at fixed interest rates ranging from 2.10% to 2.91% at December 31, 2019 (weighted average interest rate is 2.54% at December 31, 2019). $ 33,000,000 $ 38,000,000 $ 33,000,000 $ 38,000,000 |
Schedule of Contractual Maturities of Other Borrowings | Contractual maturities of other borrowings as of December 31, 2019 are as follows: 2020 $ — 2021 10,000,000 2022 — 2023 — 2024 5,000,000 Thereafter 18,000,000 $ 33,000,000 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Share Based Compensation Stock Options Activity | Other pertinent information related to the options is as follows: Years Ended December 31, 2019 2018 Shares Weighted- Average Exercise Price Shares Weighted- Outstanding at beginning of year 457,000 $ 1.77 465,500 $ 2.08 Granted — — — — Exercised — — — — Forfeited — — (8,500 ) (18.47 ) Expired (10,000 ) (14.00 ) — — Outstanding at end of year 447,000 $ 1.50 457,000 $ 1.77 Options exercisable at year end 447,000 $ 1.50 457,000 $ 1.77 Information pertaining to options outstanding at December 31, 2019 is as follows: Options Outstanding Options Exercisable Number Outstanding Weighted- Average Remaining Contractual Life Exercise Price Number Exercisable Exercise Price 447,000 5.45 $1.50 447,000 $1.50 447,000 447,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Tax Expense | The components of income tax expense are as follows: Years Ended December 31, 2019 2018 Current $ — $ — Deferred 569,460 823,285 $ 569,460 $ 823,285 |
Schedule of Income Tax Expense and Amount Computed by Applying Statutory Federal Income Taxes Rate to Income Before Taxes | The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows: Years Ended December 31, 2019 2018 Income tax expense at statutory federal rate $ 508,108 $ 678,178 State tax expense 96,118 139,989 Other items (34,766 ) (19,189 ) Adjustment due to change in tax rates — 24,307 Income tax expense $ 569,460 $ 823,285 |
Schedule of Net Deferred Taxes | The components of deferred income taxes are as follows: December 31, 2019 2018 Deferred tax assets: Loan loss reserves $ 128,032 $ 107,163 Deferred compensation 45,896 43,319 Foreclosed assets 39,650 97,047 Net operating losses 2,375,742 2,907,200 Depreciation 22,068 30,419 Other 2,160 — Securities available for sale — 97,516 2,613,548 3,282,664 Deferred tax liabilities: Securities available for sale 56,753 — 56,753 — Net deferred tax assets $ 2,556,795 $ 3,282,664 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Contract Amounts Represent Credit Risk | A summary of the Company’s commitments is as follows: December 31, 2019 2018 Commitments to extend credit $ 27,469,366 $ 20,673,434 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Schedule of Bank's Actual Capital Amounts And Ratios | The Bank’s actual capital amounts and ratios are presented in the following table. To Be Well For Capital Capitalized Under Adequacy Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) December 31, 2019: Total Capital to Risk Weighted Assets $ 34,396 11.75 % $ 23,418 8.00 % $ 29,272 10.00 % Tier 1 Capital to Risk Weighted Assets $ 31,580 10.79 % $ 17,563 6.00 % $ 23,418 8.00 % Common Equity Tier 1 Capital to Risk Weighted Assets $ 31,580 10.79 % $ 13,172 4.50 % $ 19,027 6.50 % Tier 1 Capital to Average Assets $ 31,580 9.43 % $ 13,399 4.00 % $ 16,748 5.00 % December 31, 2018: Total Capital to Risk Weighted Assets $ 31,762 12.10 % $ 20,999 8.00 % $ 26,249 10.00 % Tier 1 Capital to Risk Weighted Assets $ 28,913 11.02 % $ 15,749 6.00 % $ 20,999 8.00 % Common Equity Tier 1 Capital to Risk Weighted Assets $ 28,913 11.02 % $ 11,812 4.50 % $ 17,062 6.50 % Tier 1 Capital to Average Assets $ 28,913 10.10 % $ 11,445 4.00 % $ 14,306 5.00 % |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | Assets Measured at Fair Value on a Recurring Basis Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements at December 31, 2019 Using Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Total Identical Assets Inputs Inputs Carrying (Level 1) (Level 2) (Level 3) Value Available for sale securities $ — $ 15,854,872 $ 500,000 $ 16,354,872 Fair Value Measurements at December 31, 2018 Using Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Total Identical Assets Inputs Inputs Carrying (Level 1) (Level 2) (Level 3) Value Available for sale securities $ — $ 16,893,729 $ 500,000 $ 17,393,729 |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy at December 31, 2019 and 2018, for which a nonrecurring change in fair value has been recorded: Fair Value Measurements at December 31, 2019 Using Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Total Impaired loans $ — $ — $ — $ (90,817 ) Foreclosed assets $ — $ — $ 131,600 $ (4,700 ) Total $ — $ — $ 131,600 $ (95,517 ) Fair Value Measurements at December 31, 2018 Using Quoted Prices in Significant Significant Total Losses Impaired loans $ — $ — $ — $ (102,268 ) Foreclosed assets $ — $ — $ 681,500 $ (112,600 ) Total $ — $ — $ 681,500 $ (214,868 ) |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEETS 2019 2018 Assets Cash $ 6,275 $ 211,524 Investment in subsidiary 33,799,155 31,283,748 Restricted equity securities, at cost 232,000 232,000 Other assets 324,061 253,016 Total assets $ 34,361,491 $ 31,980,288 Liabilities Subordinated debentures $ 1,657,000 $ 1,657,000 Other liabilities 684,000 608,388 Total liabilities 2,341,000 2,265,388 Stockholders’ equity 32,020,491 29,714,900 Total liabilities and stockholders’ equity $ 34,361,491 $ 31,980,288 |
Schedule of Condensed Statements of Income | CONDENSED STATEMENTS OF INCOME 2019 2018 Expenses: Interest expense $ 144,479 $ 144,083 Other operating expense 136,382 220,333 Total expense 280,861 364,416 Loss before income tax benefit and equity in undistributed income of subsidiary (280,861 ) (364,416 ) Income tax benefit 71,045 91,061 Loss before equity in undistributed income of subsidiary (209,816 ) (273,355 ) Equity in undistributed income of subsidiary 2,059,916 2,679,491 Net income $ 1,850,100 $ 2,406,136 |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS 2019 2018 OPERATING ACTIVITIES Net income $ 1,850,100 $ 2,406,136 Adjustments to reconcile net income to net cash used in operating activities: Undistributed income of subsidiary (2,059,916 ) (2,679,491 ) Net other operating activities 4,567 121,889 Net cash used in operating activities (205,249 ) (151,466 ) Net decrease in cash (205,249 ) (151,466 ) Cash at beginning of year 211,524 362,990 Cash at end of year $ 6,275 $ 211,524 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve balances in cash or on deposit | $ 2,708,958 | $ 4,440,684 |
Federal Home Loan Bank stock | 1,660,300 | 1,848,600 |
Advertising Expense | $ 97,964 | 4,226 |
Series A Preferred Stock | ||
Preferred Stock, Dividend Rate, Percentage | 10.00% | |
Preferred Stock,Per Share Stated Value | $ 1,000 | |
Preferred Stock, Amount of Preferred Dividends in Arrears | 2,827,680 | 2,230,398 |
One To Four Family Residential Properties | ||
Amounts of foreclosed assets | 0 | 0 |
UCB Financial Capital Trust I | Common Stock | ||
Restricted equity securities | 232,000 | |
Federal Reserve Bank Advances | ||
Reserve balances in cash or on deposit | 2,091,000 | 2,160,000 |
Federal Home Loan Bank Advances | ||
Restricted cash | $ 50,000 | $ 300,000 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies - Schedule Of Earnings Per Share Basic And Diluted (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Net income | $ 1,850,100 | $ 2,406,136 |
Less cumulative preferred stock dividends | (597,282) | (597,282) |
Net income available to common stockholders | $ 1,252,818 | $ 1,808,854 |
Weighted average number of common shares outstanding | 5,020,803 | 5,020,803 |
Effect of dilutive options | 316,043 | 254,375 |
Weighted average number of common shares outstanding used to calculate dilutive earnings per share | 5,336,846 | 5,275,178 |
Basic earnings per common share | $ 0.25 | $ 0.36 |
Diluted earnings per common share | $ 0.23 | $ 0.34 |
Securities Available for Sale -
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 16,130,552 | $ 17,779,169 |
Gross Unrealized Gains | 268,124 | 8,373 |
Gross Unrealized Losses | (43,804) | (393,813) |
Fair Value | 16,354,872 | 17,393,729 |
U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 998,826 | 998,726 |
Gross Unrealized Losses | (10,233) | (78,074) |
Fair Value | 988,593 | 920,652 |
Mortgage-backed Securities GSE Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 12,387,396 | 15,318,322 |
Gross Unrealized Gains | 255,334 | 8,373 |
Gross Unrealized Losses | (233,618) | |
Fair Value | 12,642,730 | 15,093,077 |
Corporate Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,744,330 | 1,462,121 |
Gross Unrealized Gains | 12,790 | |
Gross Unrealized Losses | (33,571) | (82,121) |
Fair Value | $ 2,723,549 | $ 1,380,000 |
Securities Available for Sale_2
Securities Available for Sale - Schedule of Contractual Maturities of Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Due from five to ten years | $ 2,244,330 | |
Due after ten years | 1,498,826 | |
Mortgage-backed securities | 12,387,396 | |
Amortized Cost | 16,130,552 | $ 17,779,169 |
Due from five to ten years | 2,223,549 | |
Due after ten years | 1,488,593 | |
Mortgage-backed securities | 12,642,730 | |
Total Fair value | $ 16,354,872 | $ 17,393,729 |
Securities Available for Sale_3
Securities Available for Sale - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Sale Securities, Gross Gain and Loss | $ 0 | $ 558,750 |
Repurchase Agreements | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities, at Carrying Value | $ 8,981,372 | $ 16,013,729 |
Securities Available for Sale_4
Securities Available for Sale - Schedule of Gross Unrealized Losses and Fair Value of Securities (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Gross Unrealized Losses | $ (43,804) | $ (393,813) |
Fair Value | 16,354,872 | 17,393,729 |
U.S. Government Agencies | ||
Gross Unrealized Losses | (10,233) | (78,074) |
Fair Value | 988,593 | 920,652 |
Corporate Securities | ||
Gross Unrealized Losses | (33,571) | (82,121) |
Fair Value | 2,723,549 | 1,380,000 |
Mortgage-backed Securities GSE Residential | ||
Gross Unrealized Losses | (233,618) | |
Fair Value | 12,642,730 | 15,093,077 |
Less Than Twelve Months | ||
Gross Unrealized Losses | (56,101) | |
Fair Value | 7,844,419 | |
Less Than Twelve Months | Mortgage-backed Securities GSE Residential | ||
Gross Unrealized Losses | (56,101) | |
Fair Value | 7,844,419 | |
Over Twelve Months | ||
Gross Unrealized Losses | (43,804) | (337,712) |
Fair Value | 1,921,093 | 8,071,829 |
Over Twelve Months | U.S. Government Agencies | ||
Gross Unrealized Losses | (10,233) | (78,074) |
Fair Value | 988,593 | 920,652 |
Over Twelve Months | Corporate Securities | ||
Gross Unrealized Losses | (33,571) | (82,121) |
Fair Value | $ 932,500 | 880,000 |
Over Twelve Months | Mortgage-backed Securities GSE Residential | ||
Gross Unrealized Losses | (177,517) | |
Fair Value | $ 6,271,177 |
Loans - Summary of Composition
Loans - Summary of Composition of Loans (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 261,141,904 | $ 239,352,343 | |
Net deferred loan fees and costs | (288,485) | (293,763) | |
Allowance for loan losses | (2,816,182) | (2,849,182) | $ (2,833,594) |
Loans, net | 258,037,237 | 236,209,398 | |
Professional | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 196,794,483 | 180,661,631 | |
Allowance for loan losses | (992,241) | (876,467) | (788,684) |
Professional | Dental | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 171,475,379 | 156,486,239 | |
Professional | Medical | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 14,154,935 | 15,161,671 | |
Professional | Veterinary | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 3,075,746 | 1,729,354 | |
Professional | Service | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 8,088,423 | 7,284,367 | |
Non-Profit | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 18,467,996 | 17,303,871 | |
Allowance for loan losses | (66,579) | (70,962) | (75,490) |
Non-Profit | Church | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 15,696,335 | 14,446,601 | |
Non-Profit | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,771,661 | 2,857,270 | |
Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 29,772,234 | 27,991,308 | |
Allowance for loan losses | (111,610) | (104,950) | $ (185,964) |
Real Estate | Construction And Development | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 14,898,990 | 13,940,135 | |
Real Estate | Non-owner Occupied Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 14,873,244 | 14,051,173 | |
Real Estate | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 16,107,191 | $ 13,395,533 |
Loans - Additional Information
Loans - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable, description | Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. All aggregate credit extensions to borrowers over $1,000,000 on a secured basis and $250,000 unsecured are approved by the Director's Loan Committee. | |
Total loans | $ 261,141,904 | $ 239,352,343 |
Troubled Debt Restructurings that have Subsequently Defaulted, Number of Contracts | Contract | 0 | 0 |
loans modified as TDR within one year of restructure subsequently defaulted | $ 0 | $ 0 |
Allowance for loan losses attributable to troubled debt restructurings | 51,839 | 142,656 |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans - Summary of Risk Categor
Loans - Summary of Risk Category of Loans by Class of Loans (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Composition of Loan Portfolio [Line Items] | ||
Total | $ 261,141,904 | $ 239,352,343 |
Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 261,090,065 | 239,029,698 |
Special Mention | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 179,989 | |
Substandard | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 51,839 | 142,656 |
Doubtful | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 0 | 0 |
Professional | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 196,794,483 | 180,661,631 |
Professional | Dental | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 171,475,379 | 156,486,239 |
Professional | Dental | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 171,423,715 | 156,406,739 |
Professional | Dental | Substandard | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 51,664 | 79,500 |
Professional | Medical | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 14,154,935 | 15,161,671 |
Professional | Medical | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 14,154,935 | 15,161,671 |
Professional | Veterinary | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 3,075,746 | 1,729,354 |
Professional | Veterinary | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 3,075,746 | 1,729,354 |
Professional | Service | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 8,088,423 | 7,284,367 |
Professional | Service | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 8,088,423 | 7,104,378 |
Professional | Service | Special Mention | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 179,989 | |
Non-Profit | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 18,467,996 | 17,303,871 |
Non-Profit | Church | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 15,696,335 | 14,446,601 |
Non-Profit | Church | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 15,696,335 | 14,446,601 |
Non-Profit | Other | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 2,771,661 | 2,857,270 |
Non-Profit | Other | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 2,771,661 | 2,857,270 |
Real Estate | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 29,772,234 | 27,991,308 |
Real Estate | Other | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 16,107,191 | 13,395,533 |
Real Estate | Other | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 16,107,016 | 13,332,377 |
Real Estate | Other | Substandard | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 175 | 63,156 |
Real Estate | Construction And Development | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 14,898,990 | 13,940,135 |
Real Estate | Construction And Development | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 14,898,990 | 13,940,135 |
Real Estate | Non-owner Occupied Commercial | ||
Composition of Loan Portfolio [Line Items] | ||
Total | 14,873,244 | 14,051,173 |
Real Estate | Non-owner Occupied Commercial | Pass | ||
Composition of Loan Portfolio [Line Items] | ||
Total | $ 14,873,244 | $ 14,051,173 |
Loans - Summary of Recorded Inv
Loans - Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | $ 261,090,065 | $ 239,029,698 |
Total Past Due | 179,989 | |
Nonaccrual | 51,839 | 142,656 |
Total loans | 261,141,904 | 239,352,343 |
30 -89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 0 | |
90 Days or Greater Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 179,989 | |
Professional | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 196,794,483 | 180,661,631 |
Professional | Dental | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 171,423,715 | 156,406,739 |
Nonaccrual | 51,664 | 79,500 |
Total loans | 171,475,379 | 156,486,239 |
Professional | Medical | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 14,154,935 | 15,161,671 |
Total loans | 14,154,935 | 15,161,671 |
Professional | Veterinary | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 3,075,746 | 1,729,354 |
Total loans | 3,075,746 | 1,729,354 |
Professional | Service | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 8,088,423 | 7,104,378 |
Total Past Due | 179,989 | |
Total loans | 8,088,423 | 7,284,367 |
Professional | Service | 90 Days or Greater Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 179,989 | |
Non-Profit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 18,467,996 | 17,303,871 |
Non-Profit | Church | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 15,696,335 | 14,446,601 |
Total loans | 15,696,335 | 14,446,601 |
Non-Profit | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 2,771,661 | 2,857,270 |
Total loans | 2,771,661 | 2,857,270 |
Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 29,772,234 | 27,991,308 |
Real Estate | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 16,107,016 | 13,332,377 |
Nonaccrual | 175 | 63,156 |
Total loans | 16,107,191 | 13,395,533 |
Real Estate | Construction And Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 14,898,990 | 13,940,135 |
Total loans | 14,898,990 | 13,940,135 |
Real Estate | Non-owner Occupied Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 14,873,244 | 14,051,173 |
Total loans | $ 14,873,244 | $ 14,051,173 |
Loans - Summary of Allowance fo
Loans - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses: | ||
Balance, beginning of year | $ 2,849,182 | $ 2,833,594 |
Charge-offs | (130,235) | |
Recoveries | 14,735 | 15,588 |
Provision (reallocation) | 82,500 | |
Ending balance | 2,816,182 | 2,849,182 |
Ending balance: individually evaluated for impairment | 51,839 | 142,656 |
Ending balance: collectively evaluated for impairment | 2,764,343 | 2,706,526 |
Loans: | ||
Ending balance | 261,141,904 | 239,352,343 |
Ending balance: individually evaluated for impairment | 51,839 | 142,656 |
Ending balance: collectively evaluated for impairment | 261,090,065 | 239,209,687 |
Professional | ||
Allowance for loan losses: | ||
Balance, beginning of year | 876,467 | 788,684 |
Charge-offs | (130,235) | |
Recoveries | 14,735 | 15,588 |
Provision (reallocation) | 231,274 | 72,195 |
Ending balance | 992,241 | 876,467 |
Ending balance: individually evaluated for impairment | 51,664 | 79,500 |
Ending balance: collectively evaluated for impairment | 940,577 | 796,967 |
Loans: | ||
Ending balance | 196,794,483 | 180,661,631 |
Ending balance: individually evaluated for impairment | 51,664 | 79,500 |
Ending balance: collectively evaluated for impairment | 196,742,819 | 180,582,131 |
Non-Profit | ||
Allowance for loan losses: | ||
Balance, beginning of year | 70,962 | 75,490 |
Provision (reallocation) | (4,383) | (4,528) |
Ending balance | 66,579 | 70,962 |
Ending balance: collectively evaluated for impairment | 66,579 | 70,962 |
Loans: | ||
Ending balance | 18,467,996 | 17,303,871 |
Ending balance: collectively evaluated for impairment | 18,467,996 | 17,303,871 |
Real Estate | ||
Allowance for loan losses: | ||
Balance, beginning of year | 104,950 | 185,964 |
Provision (reallocation) | 6,660 | (81,014) |
Ending balance | 111,610 | 104,950 |
Ending balance: collectively evaluated for impairment | 111,610 | 104,950 |
Loans: | ||
Ending balance | 29,772,234 | 27,991,308 |
Ending balance: collectively evaluated for impairment | 29,772,234 | 27,991,308 |
Other | ||
Allowance for loan losses: | ||
Balance, beginning of year | 110,833 | 172,035 |
Provision (reallocation) | (53,610) | (61,202) |
Ending balance | 57,223 | 110,833 |
Ending balance: individually evaluated for impairment | 175 | 63,156 |
Ending balance: collectively evaluated for impairment | 57,048 | 47,677 |
Loans: | ||
Ending balance | 16,107,191 | 13,395,533 |
Ending balance: individually evaluated for impairment | 175 | 63,156 |
Ending balance: collectively evaluated for impairment | 16,107,016 | 13,332,377 |
Unallocated | ||
Allowance for loan losses: | ||
Balance, beginning of year | 1,685,970 | 1,611,421 |
Provision (reallocation) | (97,441) | 74,549 |
Ending balance | 1,588,529 | 1,685,970 |
Ending balance: collectively evaluated for impairment | $ 1,588,529 | $ 1,685,970 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With an allowance recorded | $ 51,839 | $ 142,656 |
Unpaid Principal Balance, With an allowance recorded | 270,196 | 361,211 |
Allocated Related Allowance, With an allowance recorded | 51,839 | 142,656 |
Average Recorded Investment, With an allowance recorded | 97,248 | 193,790 |
Interest Income Recognized, With an allowance recorded | 0 | 0 |
Total impaired loans, Recorded Investment | 51,839 | 142,656 |
Total impaired loans, Unpaid Principal Balance | 270,196 | 361,211 |
Total impaired loans, Allocated Related Allowance | 51,839 | 142,656 |
Total impaired loans, Average Recorded Investment | 97,248 | 193,790 |
Total impaired loans, Interest Income Recognized | 0 | 0 |
Professional | Dental | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With an allowance recorded | 51,664 | 79,500 |
Unpaid Principal Balance, With an allowance recorded | 141,837 | 157,441 |
Allocated Related Allowance, With an allowance recorded | 51,664 | 79,500 |
Average Recorded Investment, With an allowance recorded | 65,582 | 93,418 |
Interest Income Recognized, With an allowance recorded | 0 | 0 |
Professional | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With an allowance recorded | 175 | 63,156 |
Unpaid Principal Balance, With an allowance recorded | 128,359 | 203,770 |
Allocated Related Allowance, With an allowance recorded | 175 | 63,156 |
Average Recorded Investment, With an allowance recorded | 31,666 | 100,372 |
Interest Income Recognized, With an allowance recorded | $ 0 | $ 0 |
Loans - Summary of Performing R
Loans - Summary of Performing Restructurings Loans and Nonperforming Restructurings Loans (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 51,839 | $ 142,656 |
Nonperforming | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 51,839 | $ 142,656 |
# of Loans | Loan | 2 | 2 |
Professional | Dental | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 51,664 | $ 79,500 |
Professional | Dental | Nonperforming | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 51,664 | $ 79,500 |
# of Loans | Loan | 1 | 1 |
Professional | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 175 | $ 63,156 |
Professional | Other | Nonperforming | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 175 | $ 63,156 |
# of Loans | Loan | 1 | 1 |
Loans - Summary of Changes in R
Loans - Summary of Changes in Related Party Loans (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of year | $ 746,997 | $ 1,205,798 |
Advances | 128,023 | 203,350 |
Repayments | (384,587) | (662,151) |
Change in related parties | 1,043,885 | |
Balance, end of year | $ 1,534,318 | $ 746,997 |
Foreclosed Assets - Schedule of
Foreclosed Assets - Schedule of Foreclosed Assets (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate Investments, Net [Abstract] | ||
Balance, beginning of year | $ 1,626,500 | $ 1,825,501 |
Proceeds from sales | (435,526) | (95,056) |
Net gain (loss) on sale | (264,774) | 8,655 |
Write-downs | (125,900) | (112,600) |
Balance, end of year | $ 800,300 | $ 1,626,500 |
Foreclosed Assets - Expenses Re
Foreclosed Assets - Expenses Related to Foreclosed Assets (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate Investments, Net [Abstract] | ||
Net loss on sales and writedowns of real estate | $ 390,674 | $ 103,945 |
Expenses, net of rental income | 2,086 | 7,438 |
Foreclosed assets, net | $ 392,760 | $ 111,383 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 1,963,914 | $ 1,717,737 |
Accumulated depreciation | (874,089) | (887,004) |
Premises and equipment,net | 1,089,825 | 830,733 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 646,280 | 646,280 |
Equipment and Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 1,317,634 | $ 1,071,457 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Rent expense | $ 303,851 | $ 293,825 |
Lease expiration effective date | Dec. 31, 2017 | |
Lease commencement date | Dec. 1, 2018 | |
Lease term | 70 months |
Premises and Equipment - Sche_2
Premises and Equipment - Schedule of Future Minimum Lease Commitments on Noncancelable Operating Leases (Detail) | Dec. 31, 2019USD ($) |
Property, Plant and Equipment [Abstract] | |
2020 | $ 344,370 |
2021 | 345,253 |
2022 | 338,448 |
2023 | 289,796 |
Total | $ 1,317,867 |
Deposits - Schedule of Major Cl
Deposits - Schedule of Major Classifications of Deposits (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 67,171,224 | $ 67,777,110 |
Interest-bearing demand | 80,001,030 | 75,432,476 |
Savings | 49,939,128 | 1,228,519 |
Certificates of deposit of $250,000 or more | 11,833,279 | 11,891,660 |
Other certificates of deposit | 44,114,406 | 53,205,583 |
Deposits | $ 253,059,067 | $ 209,535,348 |
Deposits - Summary of Contractu
Deposits - Summary of Contractual Maturities of Certificate of Deposits (Detail) | Dec. 31, 2019USD ($) |
Deposits [Abstract] | |
2020 | $ 43,662,094 |
2021 | 7,639,181 |
2022 | 3,391,251 |
2023 | 1,103,159 |
2024 | 152,000 |
Time Deposits, Total | $ 55,947,685 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Brokered deposits | $ 0 | $ 0 |
Overdraft demand deposits reclassified to loans | $ 48,107 | $ 23,733 |
Other Borrowings - Schedule of
Other Borrowings - Schedule of Federal Home Loan Bank Advances (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank advances | $ 33,000,000 | $ 38,000,000 |
Other borrowings | $ 33,000,000 | $ 38,000,000 |
Other Borrowings - Schedule o_2
Other Borrowings - Schedule of Federal Home Loan Bank Advances (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Bank, Advances [Line Items] | |
Federal home loan bank maturity year | 2029 |
Federal home loan bank advances weighted fixed interest rate | 2.54% |
Minimum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Federal home loan bank advances fixed interest rate | 2.10% |
Maximum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Federal home loan bank advances fixed interest rate | 2.91% |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances [Line Items] | ||
Advances from FHLB collateralized by certain loans | $ 79,674,000 | |
Cash | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Cash pledge to Federal Home Loan Bank | 50,000 | |
Unused lines of Credit | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of credit | $ 9,000,000 | $ 9,000,000 |
Other Borrowings - Schedule o_3
Other Borrowings - Schedule of Contractual Maturities of Other Borrowings (Detail) | Dec. 31, 2019USD ($) |
Federal Home Loan Bank, Advances, Rolling Maturity [Abstract] | |
2020 | $ 0 |
2021 | 10,000,000 |
2022 | 0 |
2023 | 0 |
2024 | 5,000,000 |
Thereafter | 18,000,000 |
Federal Home Loan Bank advances | $ 33,000,000 |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Subordinated Debentures [Abstract] | ||
Repayment of the subordinated debentures maturity date | Jul. 30, 2037 | |
Debt instrument, redemption price, percentage | 100.00% | |
Debt Instrument, Call Feature | The Company has the right to redeem the debentures, in whole or in part, from time to time, on or after July 30, 2012, at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest. | |
Debt Instrument, Interest Rate Terms | 10.00% | |
Subordinated debentures | $ 1,657,000 | $ 1,657,000 |
Accured and upaid intrest | $ 684,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 0 | |
Policy surrender value | 7,451,381 | $ 7,250,234 |
Income recognized for the increase in policy surrender values | $ 201,147 | 169,602 |
Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares approved under the plan | 803,142 | |
Expiration period | 10 years | |
401(k) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Matching contributions to the plan | $ 113,404 | $ 99,847 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Option Activity (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Outstanding at beginning of year | 457,000 | 465,500 | ||
Granted | 0 | 0 | ||
Exercised | 0 | 0 | ||
Forfeited | (8,500) | |||
Expired | (10,000) | |||
Outstanding at end of year | 447,000 | 457,000 | ||
Options exercisable at year end | 447,000 | 457,000 | ||
Weighted-Average Exercise Price, Outstanding at beginning of year | $ 1.77 | $ 2.08 | ||
Weighted-Average Exercise Price, Granted | 0 | 0 | ||
Weighted-Average Exercise Price, Exercised | 0 | 0 | ||
Weighted-Average Exercise Price, Forfeited | (18.47) | |||
Weighted-Average Exercise Price, Expired | (14) | |||
Weighted-Average Exercise Price, Outstanding at end of year | 1.50 | 1.77 | ||
Weighted-Average Exercise Price, Options exercisable at year end | $ 1.50 | $ 2.08 | $ 1.50 | $ 1.77 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Option Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 447,000 | 457,000 | 465,500 |
Options Outstanding, Exercise Price | $ 1.50 | $ 1.77 | $ 2.08 |
Options Exercisable, Number Exercisable | 447,000 | 457,000 | |
Exercise Price Range 1.50 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 447,000 | ||
Options Outstanding,Weighted- Average Remaining Contractual Life | 5 years 5 months 12 days | ||
Options Outstanding, Exercise Price | $ 1.50 | ||
Options Exercisable, Number Exercisable | 447,000 | ||
Options Exercisable, Exercise Price | $ 1.50 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 0 | $ 0 |
Deferred | 569,460 | 823,285 |
Income tax expense | $ 569,460 | $ 823,285 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference Between Income Tax Expense (Benefit) and Amount Computed by Applying Statutory Federal Income Taxes Rate to Income Before Taxes (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense at statutory federal rate | $ 508,108 | $ 678,178 |
State tax expense | 96,118 | 139,989 |
Other items | (34,766) | (19,189) |
Adjustment due to change in tax rates | 24,307 | |
Income tax expense | $ 569,460 | $ 823,285 |
Income Tax - Schedule of Net De
Income Tax - Schedule of Net Deferred Taxes (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Loan loss reserves | $ 128,032 | $ 107,163 |
Deferred compensation | 45,896 | 43,319 |
Foreclosed assets | 39,650 | 97,047 |
Net operating losses | 2,375,742 | 2,907,200 |
Depreciation | 22,068 | 30,419 |
Other | 2,160 | |
Securities available for sale | 97,516 | |
Total deferred income tax assets | 2,613,548 | 3,282,664 |
Deferred tax liabilities: | ||
Securities available for sale | 56,753 | |
Total deferred income tax liabilities | 56,753 | |
Net deferred tax assets | $ 2,556,795 | $ 3,282,664 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Domestic Tax Authority [Member] | |
Income tax carryforwards | $ 9,142,338 |
Tax credit carryforward expiration description | If unused, carryforwards will expire beginning in 2031. |
State and Local Jurisdiction [Member] | |
Income tax carryforwards | $ 10,612,266 |
Commitments And Contingencies -
Commitments And Contingencies - Schedule of Financial Instruments Contract Amounts Represent Credit Risk (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Appropriate Contract Amount | $ 27,469,366 | $ 20,673,434 |
Concentration Risk - Additional
Concentration Risk - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Real Estate | |
Percentage of loan portfolio | 44.00% |
Maximum [Member] | |
Commitments to extend credit, Interest rate range | 25.00% |
Commitments to extend credit, Amount | $ 8,599,000 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Dec. 31, 2019 |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Minimum percentage of institution-specific capital buffer | 0.0250 |
Percentage of capital conservation buffer | 0.037504 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Bank's Actual Capital Amounts And Ratios (Detail) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Regulatory Assets and Liabilities Disclosure [Abstract] | ||
Total Capital to Risk Weighted Assets, Actual Amount | $ 34,396 | $ 31,762 |
Tier 1 Capital to Risk Weighted Assets, Actual Amount | 31,580 | 28,913 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual Amount | 31,580 | 28,913 |
Tier 1 Capital to Average Assets, Actual Amount | $ 31,580 | $ 28,913 |
Total Capital to Risk Weighted Assets, Actual Ratio | 0.1175 | 0.1210 |
Tier 1 Capital to Risk Weighted Assets, Actual Ratio | 0.1079 | 0.1102 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual Ratio | 0.1079 | 0.1102 |
Tier 1 Capital to Average Assets, Actual Ratio | 0.0943 | 0.1010 |
Total Capital to Risk Weighted Assets, Capital Adequacy Amount | $ 23,418 | $ 20,999 |
Tier 1 Capital to Risk Weighted Assets, Capital Adequacy Amount | 17,563 | 15,749 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Capital Adequacy Amount | 13,172 | 11,812 |
Tier 1 Capital to Average Assets, Capital Adequacy Amount | $ 13,399 | $ 11,445 |
Total Capital to Risk Weighted Assets, Capital Adequacy Ratio | 0.0800 | 0.0800 |
Tier 1 Capital to Risk Weighted Assets, Capital Adequacy Ratio | 0.0600 | 0.0600 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Capital Adequacy Ratio | 0.0450 | 0.0450 |
Tier 1 Capital to Average Assets, Capital Adequacy Ratio | 0.0400 | 0.0400 |
Total Capital to Risk Weighted Assets, To Be Well Capitalized Amount | $ 29,272 | $ 26,249 |
Tier 1 Capital to Risk Weighted Assets, To Be Well Capitalized Amount | 23,418 | 20,999 |
Common Equity Tier 1 Capital to Risk Weighted Assets, To Be Well Capitalized Amount | 19,027 | 17,062 |
Tier 1 Capital to Average Assets, To Be Well Capitalized Amount | $ 16,748 | $ 14,306 |
Total Capital to Risk Weighted Assets, To Be Well Capitalized Ratio | 0.1000 | 0.1000 |
Tier 1 Capital to Risk Weighted Assets, To Be Well Capitalized Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital to Risk Weighted Assets, To Be Well Capitalized Ratio | 0.0650 | 0.0650 |
Tier 1 Capital to Average Assets, To Be Well Capitalized Ratio | 0.0500 | 0.0500 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Schedule of Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 16,354,872 | $ 17,393,729 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 16,354,872 | 17,393,729 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 15,854,872 | 16,893,729 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 500,000 | $ 500,000 |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 51,839 | $ 142,656 |
Impaired loans, Total Losses | 82,500 | |
Fair Value Measurements Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, Total Losses | (90,817) | (102,268) |
Foreclosed assets, Total Losses | (4,700) | (112,600) |
Total Losses | (95,517) | (214,868) |
Fair Value Measurements Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value Measurements Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value Measurements Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Foreclosed assets | 131,600 | 681,500 |
Total | $ 131,600 | $ 681,500 |
Parent Company Financial Info_3
Parent Company Financial Information - Summary of Condensed Balance Sheets (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Cash | $ 2,708,958 | $ 4,440,684 | |
Other assets | 1,834,145 | 1,084,348 | |
Total assets | 327,636,606 | 286,799,044 | |
Liabilities | |||
Subordinated debentures | 1,657,000 | 1,657,000 | |
Other liabilities | 1,658,184 | 1,878,052 | |
Total liabilities | 295,616,115 | 257,084,144 | |
Stockholders' equity: | |||
Stockholders' equity | 32,020,491 | 29,714,900 | $ 27,474,226 |
Total liabilities and stockholders' equity | 327,636,606 | 286,799,044 | |
Parent | |||
Assets | |||
Cash | 6,275 | 211,524 | |
Investment in subsidiary | 33,799,155 | 31,283,748 | |
Restricted equity securities, at cost | 232,000 | 232,000 | |
Other assets | 324,061 | 253,016 | |
Total assets | 34,361,491 | 31,980,288 | |
Liabilities | |||
Subordinated debentures | 1,657,000 | 1,657,000 | |
Other liabilities | 684,000 | 608,388 | |
Total liabilities | 2,341,000 | 2,265,388 | |
Stockholders' equity: | |||
Stockholders' equity | 32,020,491 | 29,714,900 | |
Total liabilities and stockholders' equity | $ 34,361,491 | $ 31,980,288 |
Parent Company Financial Info_4
Parent Company Financial Information - Summary of Condensed Statements of Income (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses: | ||
Interest expense | $ 4,141,371 | $ 2,550,486 |
Income tax benefit | (569,460) | (823,285) |
Net income | 1,850,100 | 2,406,136 |
Parent | ||
Expenses: | ||
Interest expense | 144,479 | 144,083 |
Other operating expense | 136,382 | 220,333 |
Total expense | 280,861 | 364,416 |
Loss before income tax benefit and equity in undistributed income of subsidiary | (280,861) | (364,416) |
Income tax benefit | 71,045 | 91,061 |
Loss before equity in undistributed income of subsidiary | (209,816) | (273,355) |
Equity in undistributed income of subsidiary | 2,059,916 | 2,679,491 |
Net income | $ 1,850,100 | $ 2,406,136 |
Parent Company Financial Info_5
Parent Company Financial Information - Summary of Condensed Statements of Cash Flows (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,850,100 | $ 2,406,136 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Net cash provided by operating activities | 2,846,317 | 3,908,679 |
Parent | ||
Cash flows from operating activities: | ||
Net income | 1,850,100 | 2,406,136 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Undistributed income of subsidiary | (2,059,916) | (2,679,491) |
Net other operating activities | 4,567 | 121,889 |
Net cash provided by operating activities | (205,249) | (151,466) |
Net decrease in cash | (205,249) | (151,466) |
Cash at beginning of year | 211,524 | 362,990 |
Cash at end of year | $ 6,275 | $ 211,524 |